What are the main weaknesses of the east asian economies, International Economics

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Q. Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?

Answer: The limitation is little productivity increases most of the growth because of capital and labour inputs increase eventually leading to diminishing returns. The other weakness or limitation is the poor state of banking regulation in most of the Asian economies. The last reason is insufficient legal framework for dealing with companies in trouble.

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