The Economic Rise of Developing Countries

Abstract

Back in 1990 the Report of the South Commission – perhaps in a nod to I. Wallerstein’s ‘The Modern World – System’, qualified developing countries (also called the South) as ‘largely bypassed by the benefits of prosperity and progress’, ‘unfavorably placed in the world economic system’ and ‘existing on the periphery of the developed countries of the North’. Who would have imagined that after nearly 25 years – a short period from an historical perspective, the global economic landscape would be profoundly changed, with developing countries having a prominent role in the world economy and their dependency substituted by significant shares in world trade and FDI flows. Based on extensive empirical evidence, the paper examines the economic rise of developing countries and outlines the key circumstances behind this vast economic transformation.

Keywords: Developing Countries, Developed Countries, GDP, International Trade, FDI

JEL Classification: A10, F10, F21, F63, O10