A New Paradigm for a Nation's Competitiveness: The Case of Asian Economic Crisis

Abstract

Countries under the IMF reform prescriptions often do not agree with its bailout plans. Scholars have different perspectives on the purported IMF mission and policies. Despite continuing debates. an appropriate paradigm for effective prescriptions has not yet been found. This paper introduces a diamond model that is useful to solve the recent economic crisis in Asia. In this paradigm - first introduced by Porter (1990) and extended by Moon, Rugman, and Verbeke (1995, 1998) - important parameters of a nations competitiveness are analyzed and policy implications are suggested.