The Link Between Confucianism And Economic Growth Essay

The Link Between Confucianism And Economic Growth Essay

Length: 727 words (2.1 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Positive School While a number of explanations focused on East Asia’s historical context, government intervention strategies, or changes to global manufacturing practices (Lin, 2012). Wiarda (2013) states that in nearly every discussion the debate is centered on two factors- institutions and culture. That is, between market economic development or technological innovation and “getting prices right”, and the Asian Values thesis that emphasises the link between Confucianism and economic growth.
The latter or the ‘positive school’ follows recent attempts to revive Confucianism and argues that Confucian principles such as education, filial piety, hard work, and strong authority are the primary reasons for Asia’s impressive growth (Macfarquhar, 1980; Hofstede & Bond, 1988; Tu, 1996).
To demonstrate the connection between Confucianism and economics, scholars such as Chen Huan-Chang (2015) set out a historical analysis on Confucian scriptures and show that all Confucian principles can be interpreted through economics. So, for example, following the Confucian principle of tien meaning ‘nature’ or ‘Heaven’ Chen states that human beings are subject to natural selection. “When the good principle does not prevail over the world, men of small power are submissive to those of great” (p. 171). Applying Chen’s analysis, Peng (2006) states that to prevent uncontrolled competition (or Laissez-faire policies) from leading to inequality, government intervention in East Asia could in that case be interpreted as a Confucian way of using state regulation to control distribution.
On the whole, the conclusion follows that Confucianism can be understood as developing a system of life that administrates wealth according to principles of justice, and impr...


... middle of paper ...


...a theoretical perspective Richter (2002) and Lam (2003) describe how in a Confucian system, the individual is placed into a setting of human relationships (guanxi) and must exist by knowing how to interact with people of different statuses. The rectification of names and the five cardinal relationships provides guidance and moral justification for hierarchy and reciprocity, while conduct within these relationships leads to order (Story, 2003).
Using the example of Korea’s chaebol companies which are based on the Confucian idea of self-discipline and loyalty to superiors, Hartfield (1989) also takes a moderate approach by stating that without attributing Confucianism as a monocausal explanation for economic growth, Confucian ideas of loyalty, trust, and compassion bind people together and could create incentives for economic activity in ruthless market competition.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Economic Growth And Economic Development Essay

- When thinking about a solution to poverty the general public seems to reason that economic development is the answer. When considering economic development one would need to know the meaning of it. Economic Development is the sustaining of concerted actions of policy makers and communities that promote the standard of living and economic health of a categorical area or community. Economic development can withal be referred to as the quantitative and qualitative transmutations in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, convivial inclusion, health, safety, liter...   [tags: Economics, Unemployment, Economic growth]

Better Essays
982 words (2.8 pages)

Economic Growth As A Measure Of Economics Growth Essay

- Economic growth is defined as an increase in the output that an economy produces over a period of time, the minimum being two consecutive quarters. It is an increase in what an economy can produce if it is using all its scarce resources and at its full potential. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF). It is conventionally measured as the percent rate of increase in real gross domestic product (GDP) ....   [tags: Economic growth, Gross domestic product]

Better Essays
1072 words (3.1 pages)

The Link Between Economic Growth And Human Development Essays

- The link between economic growth and human development has been a subject of rigorous empirical econometric work since the 1970s. Foreign Direct Investment (FDI), which is an important component of human development especially in modern regional and global economies, has been found to explain varying levels of return and economic growth. Foreign Direct Investment is a major source of capital for most developed and developing countries. It is usually difficult for countries to generate capital through domestic savings and based on their domestic strengths and capacities alone....   [tags: Economics, Economy, Investment, Macroeconomics]

Better Essays
1324 words (3.8 pages)

The Augmentation Of Economic Growth Essay

- The augmentation of economic growth can be attributed to many factors including the alteration of public and government expenditures, possible labor opportunities, the reclamation and enhancement of infrastructure, anticipated amelioration of technology, and more. These modifications in the form of government policy have direct influence of economic output, or gross domestic product (GDP), which is the most widely accepted measure for a country’s standard of living. Therefore, the accession of an economic state in any country is the derivative of its standard of living....   [tags: Economics, Investment, Economic growth]

Better Essays
759 words (2.2 pages)

Factors That Affect Economic Growth Essay

- Growth in an economy can be attributed to many things. Some economists believe these variables may be exogenous and others say they are endogenous. Yet other economist believe growth comes from a combination of both of these types of variables. There are many theories that attempt to explain economic growth. Exogenous variable are the things that are taken as given in economic theories and models given and are not explained, while endogenous variables are the ones that can be explained by and are affected by changes in the exogenous variables....   [tags: Economics, Economic growth]

Better Essays
1085 words (3.1 pages)

The Mystery Of Economic Growth Essay

- “In 2010, the prestigious Nemmers Prize in Economics, awarded biennially to recognize work of lasting significance, was given to Helpman for fundamental contributions to the understanding of modern international economics and the effects of political institutions on trade policy and economic growth” (Clement, 2012). “The Mystery of Economic Growth” that was written by Elhanan Helpman provides a non-technical description of growth economics over the last half of a century. This paper will connect theory to data of four major countries United States, French, Australia, and Japan....   [tags: Economic growth, Economics, Capital accumulation]

Better Essays
711 words (2 pages)

Gdp Capita And Measure Economic Growth Essay

- 1. Economists use real GDP per capita to measure economic growth: A) because it ignores the effect of price changes. B) because poor nations have a large population and the population of richer nations is declining. C) because it is the inflation-adjusted value of a country 's production of goods and services corrected for the change in a country 's population. D) even though nominal GNP per capita is a far superior measure of economic growth. Use the following to answer questions 2-5: Scenario: Growth Rates Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year....   [tags: Economic growth, Economics]

Better Essays
1152 words (3.3 pages)

Essay on Economic Growth And Development Of Australia

- Economic growth is an increase in capacity of an economy to produce goods and services, compared to from one period of time to another. The Gross Domestic Product (GDP) found within in an economy is formally used as a measuring point for how an economy is growing or performing within its framework of economic components. Gross domestic product itself is the total market value of all final goods and services produced in an economy over a period of time. By utilizing the data presented from ones economic growth, individuals can determine the trends, precise statistics and the events to come within a country’s future in order to develop forecasts and decisions based on an economy’s current cour...   [tags: Economic growth, Economics, Gross domestic product]

Better Essays
1227 words (3.5 pages)

Gdp Is The Highest Priority Upon The Pursuit Of Economic Growth? Essay

- What is GDP. Should society continue to place the highest priority upon the pursuit of economic growth. This essay will define what the Gross Domestic Product (GDP) or Gross National Product (GNP) is and how the circular flow chart is dependent on an equal flow in and out of the economy. The thesis for the essay is that society should not place the highest priority upon the pursuit of economic growth; this will be supported with evidence. It will also briefly argue the opponents side on why GDP should be the highest priority....   [tags: Gross domestic product, Economics, Economic growth]

Better Essays
1011 words (2.9 pages)

Essay about Government Policies And Economic Growth Rate

- Government Policies and Economic Growth Rate Governments around the world are chartered with the goal of making their country’s economies grow and prosper. In doing so, governments rely on economists to help make decisions regarding policies that affect their economic productivity and standard of living. Productivity is defined by Mankiw, 2015 as “the quantity of goods and services produced from each unit of labor input” (p.239). Countries like the United States have a large economy with strong capital, such as physical, human, natural resources, and technological knowledge which allow a great output of goods and services or productivity (Mankiw, 2015, p....   [tags: Government, Economics, Policy, Economic growth]

Better Essays
1342 words (3.8 pages)