What Asian Country Has The Biggest Potential For Development? (Research Paper Sample)

What Asian Country Has The Biggest Potential For Development?
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What Asian Country Has The Biggest Potential For Development?
The People’s Republic of China (PRC) has the biggest potential for development in Asia. The potential for development for the Chinese economy is defined by three metrics, namely the growth domestic product (GDP), investments in the industrial sector, and export competitiveness (Lu, Shen, Li, & Zhang, 2020). The current rates of GDP growth and investments in manufacturing confirm that India and other nations in the Association of Southeast Asian Nations (ASEAN) cannot match China’s potential for development over the long term. (Leung, 2019). The specific factors that catalyze GDP growth and consumer expenditure are discussed in the next section.
China has the largest economy compared to other countries in Asia (Leung, 2019). The rate of GDP growth averages 6% despite changes in consumer expenditure, a slowdown in the economy, and the credit crisis (Leung, 2019). The annual change in the consumption-driven GDP growth is equivalent to Australia’s entire GDP. The focus on investment and manufacturing has contributed to positive GDP growth because China has a competitive advantage in the pricing of exports in the global market. The GDP growth rates show that the national economic policy is adaptable and responsive to market demands. The present changes in economic growth have helped China maintain its position as the country with the highest potential for growth in Asia.
Consumer expenditure in China has contributed to the potential for growth. Lu et al. (2020) note there has been a consistent growth in domestic consumption of goods produced by state-owned enterprises and private companies since 1992. The observation is supported by economic forecasts, which suggest that domestic consumption would grow by $6 trillion between 2019 and 2030. The growing consumer expenditure is linked to the real per capita disposable income, which has been on the rise due to the creation of employment opportunities (Lu et al., 2020). The projected growth in Chinese consumer spending is equivalent to the cumulative consumer expenditure in the US, ASEAN region, and Western Europe (Leung, 2019). The projected rate of consumer expenditure validates the claim that China has the biggest potential for development.
China has managed to maintain positive growth through industrial investment policy reforms such as the "Made in China 2025," which purposes to increase the volume of manufactured products (Holz, 2018). The focus on exports has contributed to higher investments in manufacturing, which accounted for 32% of the share of investments in 2015 (Holz, 2018). The higher investments in manufacturing have enhanced the export competitiveness of products manufactured in China. However, economic data illustrates that there is an underinvestment in the mining economic sector even though China has coal, oil, and gas and ore deposits (Holz, 2018). The under-investment in agriculture and mining illustrates the limitations of the biased focus on export-oriented production and