THE RISE AND FALL OF THE WEALTH OF NATIONS Factor-Price Equalization Theorem Revisited

My generation was born into an era when the world was divided into haves and have-nots, the former taking for granted their continuing and increasing prosperity, and the latter not entertaining much hope of catching up. In the last few years we have experienced a basic shake-up in our beliefs and analyses. The economic supremacy of the West is being challenged not only by Japan but also by the ASEAN NICs South Korea, Taiwan, Hong Kong, Singapore, Thailand and Malaysia. If the dynamism of China continues at the rate it has been during the past decade, it will be a majör contender by the beginning of the 21st century. The optimism has become contagious. Many countries like Indonesia, Mexico, Brazil, Chile and Turkey are also feeling more confıdent that they have a good chance of cathing up with the West.