ECONOMETRIC MODEL OF MANUFACTURING, INVESTMENT AND DEVELOPMENT IN 30 COUNTRIES OF ASIA-PACIFIC

We analyse the evolution of economic development of countries of Asia and Pacific for the period 2000-2010, and present the estimation of a cross-section model of 30 countries in year 2010, in order to relate economic development with manufacturing and investment. We compare the results of Asia-Pacific with the estimation of similar equations with a World sample of 132 countries in the same year. The results are very alike and show the great importance of international cooperation to increase investment per head in low income countries in order to foster the degree of industrialization necessary for sustained development. Both domestic investment and foreign investment show positive impact on industrial production and industry shows a significant and positive impact on non industrial sectors.