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Two-polar growth strategy in Myanmar : seeking "high" and "balanced" development

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  • Kudo, Toshihiro
  • Kumagai, Satoru

Abstract

The Thein Sein government of Myanmar seeks higher and balanced economic growth. This is a challenge for the government since some economic literature identifies a trade-off between higher economic growth and better regional equality, especially for countries in the early stages of development. In this paper, we propose a two-polar growth strategy as one that includes both "high" and "balanced" growth. The first growth pole is Yangon, and the second is Mandalay. Nay Pyi Taw, the national capital, will develop as an administrative centre, not as an economic or commercial one. We also propose border development with enhanced connectivity with richer neighboring countries as a complementary strategy to the two growth poles. Effects of the two-polar growth strategy with border development are tested using a Geographical Simulation Model (GSM).

Suggested Citation

  • Kudo, Toshihiro & Kumagai, Satoru, 2012. "Two-polar growth strategy in Myanmar : seeking "high" and "balanced" development," IDE Discussion Papers 371, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper371
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    File URL: https://ir.ide.go.jp/record/37803/files/IDP000371_001.pdf
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    References listed on IDEAS

    as
    1. Kumagai, Satoru & Hayakawa, Kazunobu & Isono, Ikumo & Keola, Souknilanh & Tsubota, Kenmei, 2013. "Geographical simulation analysis for logistics enhancement in Asia," Economic Modelling, Elsevier, vol. 34(C), pages 145-153.
    2. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
    3. Toshihiro KUDO, 2009. "Border Area Development in the GMS: Turning the Periphery into the Center of Growth," Working Papers d018, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
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    Cited by:

    1. Isono, Ikumo & Kumagai, Satoru, 2017. "Geographical simulation analysis of the development of Thilawa and Myanmar," IDE Discussion Papers 639, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Kudo, Toshihiro & Kumagai, Satoru & Umezaki, So, 2013. "Five growth strategies for Myanmar : re-engagement with the global economy," IDE Discussion Papers 427, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Myanmar; Economic policy; Economic growth; Economic geography; Yangon; Mandalay; Agglomeration; Regional inequality; Border development; Population; Poverty alleviation; Connectivity; Myanmar (Burma);
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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