"Yellen Addresses China's Overcapacity Myth and Export Game"
Originally Published 1 year ago — by Asia Times
The East Asian export model, despite its arduous nature, has been successful due to the diligence and self-sacrifice of the Japanese people and the managerial expertise of organizations like Japan's Ministry of International Trade and Industry. The Lucas paradox, where capital does not flow from rich countries to poor as predicted by classical economics, has been a challenge for developing economies. However, with China's rise as the world's largest economy, its "overcapacity" is crucial for the development of the Global South, as it allows for the flow of capital and goods to developing economies, resolving the Lucas paradox.