THE DYNAMICS OF THE “MATURE” PRODUCT CYCLE AND MARKET REYCLING, FLYING‐GEESE STYLE: AN EMPIRICAL EXAMINATION AND POLICY IMPLICATIONS

Abstract

The product cycle (PC) model of trade has led to an extensive theoretical literature examining the relations between the innovating Northand the imitating South countries. Closely related is the flying‐geese (FG) theory, which emphasizes the transfer of production from a higher developing South country to a lower developing country in search of lower production costs.This article explores empirically the time series pattern of TV exports from 10 Asian economies to the United States and examines policy implications. The observed pattern is consistent with both the PC and FG models in a combined form.

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