Semester 2 – 2015 Page 1 of 4 CC1730
SEAT NUMBER: ______________________________
LAST NAME: ______________________________
FIRST NAME: ______________________________
SID: ______________________________
CONFIDENTIAL EXAM PAPER
This paper is not to be removed from the examination room.
ECOS 2025
EAST ASIAN ECONOMIES
End of Semester Examination
Semester 2 – 2015
A Sample Paper taken from 2015 Final Exam.
No answer will be posted.
The exam this year may be different in format and contents.
See the final exam information posted.
Total Duration: 2 hours and 10 minutes
Writing Time: 2 hours
Reading Time: 10 minutes
INSTRUCTIONS TO CANDIDATES
1. This is a closed book exam. Electronic devices, apart from a simple calculator, are not permitted.
2. This exam contains THREE sections.
3. Section A is worth 40 marks, and comprises 20 multiple choice questions, worth 2 marks each.
Section B comprises analytical and short answer questions. Section C has one discussion
question. Sections B and C are worth 30 marks, respectively. Marks total 100.
4. Write your response to questions in the answer booklets provided. Use a separate answer
booklet for Sections B and C, respectively.
5. A simple non-programmable calculator is permitted.
6. This question paper must be returned with the answer booklets or materials
7. Take care to write legibly. Write your final answers in ink, not pencil.
Semester 2 – 2015 Page 2 of 4 CC1730

Section A

Answer all 20 multiple choice questions on the computer scoring sheet.
This section is worth 40 marks in total.

1. There are many features of East Asian growth experiences. But, one of the following is not a
well-documented feature of their growth experiences. Which is it?
a. Governments directed resources to realize growth potential.
b. Governments used policies of import substitution to protect domestic industries.
c. Governments often relied on foreign investments and technologies.
d. Government focus was on savings and capital accumulation rather than consumption.
e. None of the above.

2. Suppose that the PPP based per capita income of Japan is about 4 times that of China. The Chinese
government wants to catch up with the per capita income of Japan in 20 years. At what rate should
China continue to grow to achieve this, if Japan stops growing for the next 20 years?
a. 5% pa approximately
b. 7% pa approximately
c. 10% pa approximately
d. 12% pa approximately
e. 20% pa approximately

3. The asset price bubble in Japan prior to 1990 was largely due to
a. large depreciation of yen
b. large fiscal surpluses
c. prolonged monetary expansion
d. high growth rates in total factor productivity
e. all of the above

4. Which of the following pairs of leader and country is not associated with strong growth?
a. Park Cung Hee and South Korea
b. Lee Kuan Yew and Singapore
c. Mahathir Mohamad and Malaysia
d. Mao Zedong and China
e. All of the above

5. During the Asian financial crisis, the international monetary fund (IMF) prescribed policies of
a. stimulating domestic demand using monetary policy
b. fiscal expansions to prevent a prolonged recession
c. high interest rates and fiscal austerity
d. capital control to stabilize exchange rates
e. None of the above.

6. Which of the following is not what happened during the Maoist era?
a. Resources were re-directed to heavy industry from agriculture.
b. Urban-rural income gap was significantly narrowed.
c. Discretionary consumption goods were taxed highly.
d. Basic health and education were supported.
e. Service sector was largely neglected.

No further MC questions are available.
Semester 2 – 2015 Page 3 of 4 CC1730

Section B

There are two short-answer questions worth equal marks in this section.
Answer only ONE question.

This section is worth 30 marks.


Either


Question 1

This question has two part of equal mark. Answer all two parts.

(a) Explain to what extent the neoclassical growth theory (e.g. Solow Swan model) that
emphasize capital accumulation and total factor productivity can explain the East Asian
growth ‘miracles’ with particular references to the growth experiences of Korea and
Singapore. Illustrate your answer with the aid of an appropriate model diagram(s).

(b) Explain using a model of exchange rate determination how speculative attacks occur and
trigger a currency crisis and then illustrate using the interest parity condition why high
interest rates were required to defend the value of local currency in the Asian financial
crisis.


Or


Question 2

This question has four parts of equal mark. Answer all parts below.
Your answer must be clear and succinct.

(a) What is the Chiang Mai Initiative (CMI)? Also, outline its role in the post crisis period.
(b) Outline the Abenomics and the possible limitations associated with the policy
(c) Outline the domestic and external factors associated with the Asian financial crisis.
(d) China has shown persistently high investment and low consumption (as a share of GDP).
Why would this be a matter for concern?










Semester 2 – 2015 Page 4 of 4 CC1730



Section C


Answer the following question in this section (worth 30 marks in total)
Use a new booklet to answer this question.


In this course, you studied growth experiences across a number of East Asian economies (mainly
three North East Asian countries: Japan, Korea and China, and three South East Asian countries:
Singapore, Malaysia and Indonesia).

Compare and contrast their growth strategies and policies outlining similarities and differences.
And then critically evaluate ‘the Asian Model’ with reference to their historical growth experiences
as well as where they currently stand (both successes and failures). Discuss how non-economic
(such as political and cultural) institutions may help us better understand East Asian economies.
Your essay should be logically developed and coherent.