THEORETICAL AND EMPIRICAL ANALYSIS OF ECONOMIC LEADERSHIP AND INVESTMENT POTENTIAL OF THE “ASIAN TIGERS”

Abstract

This paper presents a theoretical and empirical analysis of the economic leadership and investment potential of the "Asian Tigers," specifically Hong Kong, Singapore, South Korea, and Taiwan. Based on an examination of the economic development history of the "Asian Tigers," it is established that, in the mid-20th century, these countries were classified as "third world countries." However, through the effective utilization of Foreign Direct Investment (FDI), they were able to undergo rapid economic transformations. It is found that FDI became the principal instrument of structural changes, facilitating the integration of national economies into global markets and contributing to significant economic growth. The study highlights the importance of institutional quality and the capacity of these countries to optimally utilize FDI for ensuring sustainable growth. The research further confirms that the effectiveness of FDI in these countries is attributed to an optimal combination of foreign and domestic investments, active governmental support initiatives, and a stable political environment, which together create a favorable investment climate. Additionally, the importance of a highly skilled workforce, advanced technological infrastructure, and innovation capacity is discussed, as these factors enable the countries to maintain competitiveness at the international level. The results of the study indicate that the investment strategies employed by the "Asian Tigers" have contributed to their resilience amid global economic fluctuations, such as financial crises. The overall trend in FDI inflows to the "Asian Tigers" from 1990 to 2024 reveals a positive trajectory, reflecting the successful investment strategies of these countries, particularly in high-tech sectors. Although economic crises, including the 2008 financial crisis, temporarily reduced investment volumes, the countries were able to rapidly recover their positions due to stable institutions and openness to international investment. Based on the analysis of FDI dynamics in these countries, it can be concluded that Hong Kong and Singapore continue to demonstrate sustained growth, affirming their roles as major financial hubs, while South Korea and Taiwan, despite facing challenges, have also been able to restore their investment flows.