Comments on Books

Multinational Enterprises in Asian Development (Edward Elgar, 2006)

“Cross-border investment is a key driver of the globalisation process and multinational enterprises a key driver of productivity growth. This new book offers a comprehensive and informed evaluation of the role of multinationals in the world's fastest growing region. The book will not only be of interest to researchers and students, but also to analysts in the policy making community.”

David Greenaway, University of Nottingham, UK

“This volume offers a wealth of information and insights into the role of multinational enterprises in shaping recent economic developments in East and South Asia. These direct investments, which are now the dominant source of finance for the developing regions globally, are generally welcomed today, though this was untrue earlier. However, cases in this volume draw out ways and context in which the greatest advantage may be sought from these capital inflows”

Robert E.B. Lucas, Boston University, US

"Foreign direct investment by MNCs, once considered the bane of developing countries, is today a leading indicator of their relative success. The reality is more complicated, however, as this fresh assessment of the role of MNCs in Asia explains clearly and persuasively. This study is a major contribution to literature on the role of MNCs in developing countries, drawing heavily on the author's own original research on foreign direct investment in several Asian countries. What is the role of MCNs in developing countries and how has it changed over the past two decades? What are the cost and benefits to host developing countries of MNCs direct investment? What measures should developing countries take to attract MNCs? This book provides clear and convincing answers to these questions based on the kind of rigorous empirical analysis for which the author is renowned."

James Riedel, The Johns Hopkins University School of Advanced International Studies, US

Saving, Investment and Growth in India (Oxford University Press, 2002)

This short book is a well-documented and interesting account of the trends and determinants of saving, investment and growth in India between 1955 and 1996. [T]he authors of this book have investigated an important area of research which merit attention from the teachers and students of economic growth and development. It should also be useful to policy makers in India and other developing countries.

Subrta Bhatak, Kingston University 

[This book] is a distinct and overdue contributions to the literature on development economics comparable to that of Bhagwati and Desai (1970), Little, Scitovsly, and Scott (1970), Bhagwati and Srinivasan (1975), Krueger (1992), and Bhagwati (1993). This book, I hope, will apply closer to the sterile debate, raised in India between the structuralist critics who pinned their faith on the visible power of the state and the neoclassical-neoliberal supporters of the reforms, who espoused market discipline as a lever to enhance efficiency of investment. Until now this debate has been a clash of ideologies, with a smattering of analytical insights and facts thrown in. Athukorala and Sen have shown brilliantly where the true lies, by constructing an analytical model based on ingenious marshalling of the database, well informed by theory, and the comparative perspectives.

Deena Khathate, Chevy Chase, Maryland

The Economic Development of South Asia (Edward Elgar, 3 Volumes, 2002)

Professor Athukorala is one of the world’s leading experts on the economies of South Asia. He has gathered together in these volumes a remarkable collection of nearly 100 essays covering such topics as agriculture, industrialisation, population, poverty and income distribution, import substitution, liberalisation, financial development, trade and investment. The list of contributors reads like a Who’s Who in economics. Anyone wanting to understand the economic development of South Asia would be wise to use these volumes as their first port of call.

Tony Thirlwall, University of Kent

Developing Countries in the World Trading System (Edward Elgar, 2002)

Developing countries are again, as in the early years of UNCTAD, becoming a major focus in the discussion of world trade reforms. Their sense that the Uruguay Round and the WTO system failed to address their concerns is a major factor behind the current problems in mounting a new multilateral round. This book addresses the key concerns of developing countries and suggests a number of reforms that will enable them to become equal partners in the world trading system

Peter J. Lloyd, University of Melbourne.

Crisis and Recovery in Malaysia: The Role of Capital Controls

(Edward Elgar, 2001)

Dr. Athukorala tells a fascinating story of one of the most successful economies in the world economy in the last decades, from the inception of its liberalisation policy to its radical decision to pursue an independent recovery path after the 1997 Asian financial crisis. This is case-study economics at its best. The book is superbly organised, meticulously researched and clearly written; a treat for professional economists and policy makers alike

Tony Thirlwall, University of Kent

Malaysia is one of the great success stories of the last quarter of the twentieth century. From 1988 it had one of the highest growth rates in the world, and it managed to maintain ethnic peace in an undoubtedly difficult environment. Recently it has provided a major laboratory experiment of the use of capital controls at a time of crisis when a country is highly integrated in the world capital market. This excellent book presents the first careful analysis of the nature and effects of these controls, as well as providing a thorough background of how the Asian crisis played out in Malaysia.

W.Max Corden, Johns Hopkins University

Prema-chandra Athukorala has written an admirably clear, objective and balanced analysis of the reasons for the economic crisis in Malaysia and the role of capital controls in its recovery. He shows how Malaysia generated its own vulnerability to the contagion from the Thai collapse, but also makes excellent use of disaggregated data to demonstrate that the Government's adoption of capital controls worked. Adjustment was achieved at lower social cost than without capital controls. As far as crisis management is concerned the orthodox critics were confounded. But Athukorala has his reservations that some of the rescue operations may have sustained inefficient and weakly financial institutions and may represent a hazard for long term prosperity.

Alasdair Macbean, Lancaster University

Liberalization and Industrial Transformation: Sri Lanka in International Perspective (Oxford University Press, 2000

Prema-chandra Athukorala and Sarath Rajapatirana have written an excellent analytic account of the progress of Sri Lanka’s economic development during the period before and after the major reforms of 1977 and 1990….Particular claims convincingly made by Athukorala and Rajapatirana include:

· the entry of transnational corporations is, for a latecomer (unlike the case of Korea and Taiwan(, virtually essential for export success

· a prior phase of import substitution is not necessary for export success

· diversification into manufactured exports is a sure-fire way of avoiding (pace Singer) the Singer-Prebisch threat of ever worsening terms of trade.

I believe that there could be many more Sri Lankas in all the continents. I, therefore, hope that this book will be widely read.

I.M.D. Little, Nuffield College, Oxford

This is a very scholarly and original piece of work on a crucial aspect of the recent economic history of Sri Lanka. But it is of broader interest as a case study of a successful economic transformation through export-led industrialization.

W. Max Corden, The Johns Hopkins University

A careful and thorough analysis of the impact of transforming an almost completely closed economy into one of the developing-world's most open. It demonstrates that being a latecomer should not deny a country the benefits of moving to a regime of neutral policies and integrating into the world. An important contribution to the literature of industrial policies and liberalization.

Michael Michaely, Hebrew University of Jerusalem

This book is one of the first generation of what will surely become a new wave of books analyzing the success of the latest group of latecomers to industrialisation: countries like Bangladesh, Mauritius, and Sri Lanka. It is a challenge to those economists still inclined to disparage the economic value of industrialization based on using unskilled labour to produce consumer goods.

John Williamson , World Bank

The book under review provides an excellent analytical account of the progress of Sri Lank’s economic development during the period before and after the major reforms of 1997 and 1990. It is a case study of successful economic transformation of recent vintage through export-led industrialization. … The book needs to be widely read by decision makers and students of development economics and industrialization and of trade and development

R.N. Pradhan, Delhi School of Economics

Growth, Employment and Migration in Southeast Asia: Structural Change in the Greater Mekong Region (Edward Elgar, 2000)

This book examines economic change, labour market dynamics and cross-border migration in countries in the Greater Mekong Region …with skill and technical competent in a manner that provides a plethora of useful data throughout the text. … This is useful and informative book for anyone interested in the economies of the greater Mekong region.

Thomas R. DeGregori, University of Houston

Compared with the dynamic economies of East Asia (the ‘tiger’ economies) those in the mainland of Southeast Asia have received relatively little attention. This book is therefore a welcome addition to the literature. [I]t covers basic information on an increasingly relevant topic in a complex region and will have to be consulted by those seeking an understanding of changing labour markets and their impact on population movement.

Ronald Skeldon, University of Sussex

Structural Change and International Labour Migration in East Asia: Adjusting to Labour Scarcity (Oxford University Press, 1999)

This is a carefully researched and well-written book about an important topic- the process of international labour migration in East Asia. Anyone wanting to understand the dynamics of migration in this important part of the world economy will find this book an extremely useful staring point.

Anne Booth, University of London

The circumstances and policies contributing to the economic transformation and internationalization of the East Asian ‘tiger’ economies have been the subject of much analysis and writing. This book is premised on what Authokorala and Manning see as a neglected but important component of the study-the role of international labour migration (ILM). …. In a convenient structure, each discussion of the individual countries (or pairs) commences with an overview of their developmental ‘staring-points’. A detailed exposition of labour market and industrial development is provided using the framework of the Lewis model, with particular attention to the historical timing of ILM, the use of alternative adjustment mechanisms (capital deepening, FDI) and government policy with respect to foreign workers and related aspects of the labour market. … [T]he book is an important reference to anyone seeking or purporting to have a comprehensive picture of the post-war development of these economies.

Michael Dockery, Curtin University of Technology

Trade Policy Issues in Asian Development (Routledge 1998)

Controversy over the type of trade policy, the precise role it plays, and its relative importance in promoting economic development continues. Athukorala’s book, based on his own essays written over the last few years is a useful contribution to the literature. It summatises the debate in an objective manner and provides a number of case studies that tests many of the views expressed about relationship among policies towards foreign trade, foreign investment and development. But is goes beyond reviewing and testing to add several ideas of his own. …..Overall, Athukorala has produced a stimulating and valuable contribution to the literature on trade policies and development.

Alasdair Macbean, Lancaster University

This book is an excellent example of careful and solid econometric work in the area of trade and development in Asia and is likely to prove a valuable reference for research scholars and student.

Ramakishen S. Rajan, University of Adelaide