East Asian economies and their philosophy behind success: Manifestation of social constructs in economic policies

Abstract

The study contributes to broader conceptualization of East Asian economies by elaboration of sociocultural and institutional approaches, explaining differences between Western and East Asian geography of thinking and focusing on the manifestations of Confucian values and their social constructs into organizational patterns of economic policies and business culture within East Asian economies. The analysis demonstrates that these factors has strongly impacted successful industrialization processes in East Asian countries and served as a strategic comparative advantage in their economic developmental endeavor. The paper is claiming that economic policies of the region would never be so effective if they would not be integrated into social organizational models of these countries. The ability of East Asian leaders to understand weaknesses and strengths of their societies in terms of market forces and to tap on their potential through economic policies was a kind of philosophy behind their success.