In this article I’m going to try to explain the differences between emerging and developing markets according to OECD and IMF definitions,the I’m going to talk about relationships between unemployment,GDP and industrial production.Then I’m going to look at the effects on emerging and developing markets and try to find an answer the effects is significant or not.
There are significant 2 market types in the world that over the years debates about differences,advantages,disadvantages are held on.Before we look at the differences between emerging markets and developing markets,let’s look up what is emerging market what is developing market? Emerging market concept was originally found by the World Bank economist Antoine van Agtmael by the 1980’s.Emerging markets are nations with social or business activity in the process of rapid growth and industrialization.According to Chuan Li from The University of Iowa, ‘’ ‘Emerging markets are countries that are restructuring their economies along market-oriented lines and offer a wealth of opportunities in trade, technology transfers, and foreign direct investment’.There are 28 countries that considered as emerging markets but some of the leaders are China, India, Indonesia, Brazil and Russia. If we start to look at the differences between emerging markets and developed markets,from the emerging markets stand point, they are regional economic powerhouses with large populations, large resource bases, and large markets.However if there is any kind of an economic crise,they can bring down their partners also with them.Also they adopt open door policies to replace their traditional state interventionist policies that failed to produce sustainable economic growth. According to the IMF, every developing country that is committed to gaining the confidence of the international financial markets must dedicate itself to good governance. Good governance fosters a path for strong and stable economic development. Poor governance...
Please join StudyMode to read the full document