Theories and models based on national competitiveness, national development strategies have been propounded by scholars in the past. The elements chosen in the kite model may have been discussed in previous researches. What is difference is the metaphorical representation of kite in the national development of a country. With changing patterns of trade, economic activities and development, there have been modifications to earlier models.
The attempt here is to make a difference from other earlier models.
The flying geese theory estimates the next lead goose in the “V” formation. This formation helps the geese to save their energy and ride with the wind. The flying geese theory was discusses on the development process of a country. In the flying geese theory, the flying goose has flown up and the order of formation is in place, how the flight took place that was not discussed. The kite allows a country to directly soar up; it faces the wind and is more aggressive than the flying model. The “Kite Model” aims to act as a tool in the development and growth of a country’s economy. The “Kite Model” discusses on providing the guideline for a nation to fly up and does not take into consideration the order of who is leading or lagging behind in the formation.
The “Kite Model” absorbs Porter’s diamond into the body of the kite. It is applicable in a dynamic environment and shows how an economy can rise from its existing scenario. In variation from Porter’s diamond, the “Kite Model” focuses not only on domestic endowments but incorporates the international elements as well. The model captures the competitive and complementary determinants of a country that integrates and extends them with the four interrelated components of Porter’s diamond’s this is then applied with the concept of flying geese theory in the background.
In this research, the kite is compared with a developing country. A kite needs a frame,
64
wings, tail, body and string to fly it and requires the wind to carry it. Now metaphorically, the kite is compared to a country in a state of economic development. For a country to soar it needs something to take it up just like a kite requires its wings to fly. Without the basic necessities or conditions, the kite cannot fly. Hence the frame of infrastructure and human factors, a country deficient in infrastructure and human capital will find the task to soar tenuous and difficult. Whereby, the dynamics of the model can be illustrated and the conditions that an organization is required to possess are analyzed and strategies and actions that it needs to implement and execute can be discussed upon. It is to be remembered that countries differ from each others, these characteristics contribute to its uniqueness. However, there are also certain similarities between countries and countries or between regions. While the model only serves to be a guideline and blueprint for the governments in the planning and implementation of their national economic development policies and strategies, it is not a one-size-fits-all solution and based on the specific unique circumstances and conditions of respective countries, further adaptations may be required. The “Kite Model” created serves to explain the current economic trend and how the integrations of various factors when applied to a country or region can help boost the economic development and growth of that country or region.
In the case of India, it can be seen that the priorities of India is to attract FDI, it will allow the kite to have a better foundation and find the correct angle of elevation. For a robust frame, a strong tangible and intangible frame India is required to be built for the Indian kite.
The flow of funds can also help in the betterment of a robust infrastructure and provide employment for the millions of people in India. The two wings of the Indian kite have to be balanced well balance for a steady flight. With the correct angle, with a robust body and well balanced wings, the kite is constantly fine tuned by the string to face the correct wind and fly towards a stable and sustained economic development and growth.
65
This article can enable proactive governments to better understand the world economic development pattern and catch available opportunities to boost the country’s economy. The
“Kite Model” may contribute significantly by assisting governments in the planning and implementation of national economic development policies and strategies, it can be further applied in empirical studies related to a country’s national competitiveness or economic performance. In the future research, the Kite model can be referred to and further elaborated and applied to the case of profit and nonprofit organizations.
66
References
Allen, F. and Giovannetti, G. (2011). The effects of the financial crisis on Sub-Saharan Africa.
Review of Development Finance, 1, 1-27.
Alessandrini, M., Fattouh, B., Ferrarini, B. and Scaramozzino P. (2011). Tariff liberalization and trade specialization in India. Journal of Comparative Economics, 39(4), 499-513.
Behbudi, D., Mamipour, S. and Karami, A. (2010). Natural resource abundance, human capital and economic growth in the petroleum exporting countries. Journal of Economic Development, 35(3), 81-102.
Bernard, M. and Ravenhill J. (1995). Beyond product cycles and flying geese: regionalization, hierarchy, and the industrialization of East Asia. World Politics, 47(2), 171-209.
Brouthers, K. D. and Brouthers, L. E. (1997). Explaining national competitive advantage for a small European country: A test of three competing models. International Business Review, 6(1), 53-70.
Carolan, T., Singh, N., and Talati, C. (1998). The composition of U.S.-East Asia trade and changing comparative advantage. Journal of Development Economics, 57(2), 361-389.
Cheng, Y.-J. and Chung, H.-F. (2012). Kite model for national development strategy. Journal of Contemporary Management Research, Special Issue 2012, 1-12.
Cho, D.-S., Moon, H.-C. and Kim, M.-Y. (2008). Characterizing international competitiveness in international business research: A MASI approach to national competitiveness. Research in International Business and Finance, 22(2), 175-192.
Coxhead, I. (2007). A new resource curse? Impacts of China’s boom on comparative advantage and resource dependence in Southeast Asia. World Development, 35(7), 1099-1119.
Cumings, B. (1984). The origins and development of the northeast Asian political economy:
Industrial sectors, product cycles, and political consequences. International Organization, 38(1), 1-40.
Cutler, H., Berri, D. J., and Ozawa, T. (2003). Market recycling in labor-intensive goods, flying-geese style: An empirical analysis of East Asian exports to the U.S. Journal of Asian Economics, 14(1), 35-50.
Department of Telecommunications, Ministry of Communications and Information Technology, Government of India, Annual Report 2011.
67
Doner, R. F. (1991). Approaches to the politics of economic growth in Southeast Asia.
Journal of Asian Studies, 50(4), 818-849.
Dowling, M. and Cheang, C. T. (2000). Shifting comparative advantage in Asia: New tests of the “flying geese” model. Journal of Asian Economics, 11(4), 443-463.
Felipe, J., Lavina, E., and Fan, E. X. (2008). The diverging patterns of profitability, investment and growth of China and India during 1980–2003. World Development, 36(5), 741–774.
Hopenhayn, H. A. and Muniagurria, M. E. (1996). Policy variability and economic growth.
The Review of Economic Studies, 63(4), 611-625.
Iley, R. A. and Lewis, M. K. (2011). Has the global financial crisis produced a New World Order? Accounting Forum, 35(2), 90-103.
International Monetary Fund, (2011). World Economic Outlook.
Ito, T. and Weinstein, D. E. (1996). Japan and the Asian economies: A "miracle" in transition.
Brookings Papers on Economic Activity, 2, 205-272.
Kalotay, K. (2004). The European flying geese: New FDI patterns for the old continent?
Research in International Business and Finance, 18(1), 27-49.
Kaname, A. (1956). Wagakuni sangyoo hatten no gankoo keitai: kikai kigu koogyoo ni tsuite.
The flying geese pattern of industrial development of our country: The case of the machine and tool-making industries, The Hitotsubashi Ronso. 36, 514-526.
Kaname, A. (1962). Historical pattern of economic growth in developing countries. The Developing Economies, 1(1), 3–25.
Kaufmann, D. (2004). Corruption, governance and security: Challenges for the rich countries and the world. World Bank Institute, MPRA Paper, 8207.
Ketels, C. H. M. (2003). The Development of the Cluster Concept : Present Experiences and Recent Developments, Ministry of Economics, Germany.
68
Ketels, C. H. M. (2004). European Clusters, in Structural Change in Europe 3 – Innovative City and Business Regions. Hagbarth Publications, Germany.
Kim, W.-B. (2012). The rise of coastal China and inter-regional relations among core economic regions of East Asia. Annals of Regional Science. 48(1), 283-299.
Kojima, K. (1973). Reorganization of North - South trade: Japan’s foreign economic policy for the 1970s. Hitotsubashi Journal of Economics,13(2). 1-28.
Kojima, K. (2000). The “flying geese” model of Asian economic development: Origin, theoretical extensions, and regional policy implications. Journal of Asian Economics, 11(4), 375-401.
Kojima, K. (2005). A reversal of "competitive advantage" pattern: Heterogenization versus homogenization. Journal of Asian Economics, 16(3), 443-463.
Korhonen, P. (1994). The theory of the flying geese pattern of development and its interpretations. Journal of Peace Research, 31(1), 93-108.
Lin, J. Y., Liu, M., Pan, S., and Zhang, P. (2006). Development strategy, viability, and economic institutions: The case of China. World Institute for Development Economics Research, Research Paper No. 2006/48.
Lloyd, P. J. (1996). The role of foreign investment in the success of Asian industrialization.
Journal of Asian Economics, 7(3), 407-433.
Ministry of External Affairs, Government of India, (2012). Annual Report 2011-2012.
Ministry of Finance, Government of India, (2012). Union Budget of India 2012-2013.
Ministry of Finance, Government of India, (2012). Indian Economic Survey 2011-2012.
Ministry of Power, Government of India, Central Electricity Authority, (2012). Power at a Glance.
Moon, H. C., Rugman, A. M., and Verbeke, A. (1998). A generalized double diamond approach to the global competitiveness of Korea and Singapore. International Business Review, 7(2), 135-150.
Nelson, R. M., Belkin, P., and Mix, D. E. (2011). Greece’s debt crisis: Overview, policy responses, and implications. Congressional Research Service, R41167, 1-19.
Nowotny, E. (2005). EU Accession: Financial Sector Opportunities and Challenges for Southeast Europe. Springer Berlin Heidelberg, New York.
Ozawa, T. (2001). The "hidden" side of the "flying-geese" catch-up model: Japan's dirigiste
69
institutional setup and a deepening financial morass. Journal of Asian Economics, 12(4), 471-491.
Oz, O. (2002). Assessing Porter’s framework for national advantage: The case of Turkey.
Journal of Business Research, 55(6), 509-515.
Padmore, T. and Gibson, H. (1998). Modelling systems of innovation: II. A framework for industrial cluster analysis in regions. Research Policy, 26(6), 625-641.
Peng, D. (2002). Invisible linkages: A regional perspective of East Asian political economy.
International Studies Quarterly, 46(3), 423-447.
Petri, P. A. (2006). Is East Asia becoming more interdependent? Journal of Asian Economics, 17(3), 381-394.
Philippe, G. and Brunner, S. (2007). FDI effects on national competitiveness: A cluster approach. International Advances in Economic Research, 13(3), 268-284.
Pitelis, C. N. (2009). The sustainable competitive advantage and catching-up of nations: FDI, clusters and the liability (asset) of smallness. Management International Review, 49(1), 95-120.
Planning Commission, Government of India, (2012). Databook for DCH
Porter, M. E. (1986). Competition in Global Industries, Harvard Business School Press, Boston.
Porter, M. E. (1990). The Competitive Advantage of Nations, Free Press, New York.
Porter, M. E. (1998). On Competition, Harvard Business School, Boston.
Registrar General and Census Commisioner, India, (2012). Provisional Population Totals Paper 1 of 2011 India Series 1.
Schrank, A. (2003). Foreign investors, "Flying Geese," and the limits to export-led industrialization in the Dominican Republic. Theory and Society, 32(4), 415-443.
United Nations Conference on Trade and Development, Trade and development Report. 2011.
Vokić, N. P. and Vidović, M. (2008). HRM as a significant factor for achieving competitiveness through people: The Croatian case. International Advances in Economic Research, 14(3), 303-315.
Williamson, C. R. and Mathers, R. L. (2011), Economic freedom, culture, and growth. Public Choice, 148(3), 313-335.
70
Yamamoto. T. and Talvitie, A. (2011). Transport infrastructure and services: An Asia and developing world. Transportation, 38(5), 715-717.
Zhang, Y., Zheng, X., Liang, C., Yue, F., and Wang, H. (2011). The development strategy for industrial clusters in Qingdao. Energy Procedia, 5, 1355-1359.
Zhao, W., Watanabe, C., and Griffy-Brown, C. (2009). Competitive advantage in an industry cluster: The case of Dalian Software Park in China. Technology in Society, 31(2), 139-149.
71
Websites
BBC News, India’s enduring problem with malnutrition: (http://www.bbc.co.uk/news/world-
asia-india-19190437) (2012/08/11)
BBC News, India food law: The hungry republic: (http://www.bbc.co.uk/news/world-asia
-india-16291300) (2011/12/21)
Bloomberg News, China’s Cotton Planting Drops 10% as Labor Costs Increase: (http://www.
bloomberg.com/news/2012-05-25/china-cotton-planting-may-fall-by-10-on-increasing-l abor-costs.html) (2012/05/25) Export Import Data Bank, Department of commerce, Government of India:(http://commerce.
nic.in/eidb/iecnttopn.asp) (2012/09/18) India clears policy to build new industrial zones: (http://www.reuters.com/arti cle/2011/10/25/us-india-industry-idUSTRE79O2IF20111025 (2011/10/25) Ministry of Road Transport and Highways, Government of India, Roads and Highways - An overview: (http://morth.nic.in/writereaddata/sublinkimages/overview_NH3244795788.h
tm) (2012/ 9 / 2 1 )
Merriam Webster Dictionary: (http://www.merriam-webster.com/dictionary/culture) . (2012/05/18) Merriam Webster Dictionary: (http://www.merriam-webster.com/dictionary/dirigiste) .
(2012/05/20) Merriam Webster Dictionary (http://www.merriam-webster.com/dictionary/policy) .
(2012/05/20) NDirect, what is government policy (http://www.nidirect.gov.uk/what-is-government-policy) (2012/06/18) New York Times, Chinese Labor, Cheap No More: (http://www.nytimes.com/2012/02/18/
opinion/ chinese-labor-cheap-no-more.html?_r=0) (2012/02/18) Special Economic Zones in India, Facilities and Incentives, Ministry of Commerce &
Industry, (http://www.sezindia.nic.in/about-fi.asp) (2012/09/24) The Economist, The End of cheap China: (http://www.economist.com/node/21549956) . (2012 /03/10) Oxford Dictionaries: http://oxforddictionaries.com/definition/infrastructure) (2012/06/18)
72
UNICEF, India Nutrition: (http://www.unicef.org/india/children_2356.htm) (2012/09/21) UNICEF, India Health: (http://www.unicef.org/india/children_2355.htm) (2012/09/21) United Nations Economic and Social commission for Asia and Pacific (UNESCAP):
http://www.unescap.org/pdd/prs/ProjectActivities/Ongoing/gg/governance.asp) (2012/06/18) World Bank, Feature Story, Government-Sponsored Health Insurance in India: Are You Covered?: (http://www.worldbank.org/en/news/2012/10/11/government-sponsored- healt
h-insurance-in-india-are-you-covered) (2012/09/21)
World Bank, India: Delivering on the Promise of Education for All: (http://go.worldbank.org/
PIQ7WOOXK0) (2012/09/21)
World Bank, India Electrification: (http://go.worldbank.org/Z4IH0L4HF0) (2012/09/21) World Bank, News & Views, India Country Strategy (CAS) 2009-2012: (http://www.
worldbank.org/en/news/2010/04/06/india-country-strategy) (2012/09/21) World Bank, India Overview: (http://www.worldbank.org/en/country/india/overview) .
(2012/09/21)
World Bank, India Power Sector: (http://www.worldbank.org/en/news/2010/04/19/india
-power-sector) (2012/09/10)
World Bank, Result Profiles on India: (http://go.worldbank.org/B4N5A3C611) (2012/09/21) World Bank, India: Reducing Poverty, Maximizing Growth: (http://go.worldbank.org/9YSDR
HJXA0) (2012/09/21)
World Bank, Government Sponsored Health Insurance In India-Are You-Covered: (http://ww w.worldbank.org/en/news/2012/10/11/government-sponsored-health-insurance-in-india-are-you-covered (2012/09/21) World Population Prospects, the 2010 Revision, United Nations Department of Economic and Social Affairs: (http://esa.un.org/unpd/wpp/index.htm) (2012/09/21)