Flying geese paradigm

[1] Akamatsu's third flying geese paradigm (FGP) is a model for the international division of labor in East Asia based on dynamic comparative advantage.

"[2] The lead goose in this pattern is Japan itself, the second-tier of nations consists of the newly industrializing economies (South Korea, Singapore, Taiwan, and Hong Kong).

He does however suggest that the demonstration effect of international trade plays an important part as well as the "animal spirit of the entrepreneurs" in developing countries.

This idea is most likely connected to the memories of the Japanese development in the early 20th century when it catapulted itself from a technological backwater to a mature industrial powerhouse.

The uniformization of both industry and agriculture gave rise to the fierce and conflictive competition between Europe, the United States and Japan in the last quarter of the 19th Century.

[9] Akamatsu sees a counter-movement in other parts of the world, centered on the rising production of gold, which, according to him, leads to an increase in effective demand and further stimulates exports of the innovating nation.

Exports of the innovating nation become stagnant, and on the world level, there is a tendency towards overproduction, prices turn downwards, and the rates of growth of production and trade fall.

For Akamatsu, the characteristic structure of the Center-Periphery relationship is characterized by the fact that the underdeveloped nation will export primary products and will import industrial goods for consumption.