The theme of this study is that seven major East Asian less developed countries (LDCs) have experienced "dependent development," and that some internal and external intervening factors mattered in that process. Utilizing a framework of "dependent development," the data analysis deals with the political economy of development in these countries. This analysis supports the fundamental arguments of the dependent development perspective, which emphasize positive effects of foreign capital dependence in domestic capital formation and industrialization in East Asian LDCs. This perspective assumes the active role of the state, and it is found here to be crucial in capital accumulation and in economic growth. This cross-national time-series analysis also shows that the effects of external dependence and military spending on capital accumulation and economic growth can be considered as a regional phenomenon. The dependent development perspective offers a useful way to understand economic dynamism of East Asian LDCs for the past two decades.

The 1990s were characterized by severe turbulence in the global economy. Economic and financial crises occurred in Latin America, Middle and Eastern Europe and Asia. This analysis distinguishes between the two socioeconomic criteria "transitional" and "emerging" region. Transitional countries are former centrally planned socialist economies and emerging countries former agricultural-oriented classical developing economies with mostly a history of military or some other kind of autocratic dictatorship. The resources for the analysis are data sets regarding investment, exchange rate behavior, government finance, international liabilities of monetary authorities and inflation. The study reveals macroeconomic patterns associated with economic development in each socioeconomic region. It is shown that similar patterns are responsible for successful and non-successful performance in each region. A comparison of different regions shows many parallels between emerging economies, but only little similarity between transitional economies.