Medium Enterprises as New Source of Economic Growth of ASEAN Countries : Cross-Country Comparison

Abstract

After Asia economic crisis 1997 hit hard ASEAN country economy, there is a growing interest to reexamined the past industrialization strategy as vehicle for achieving a high economic growth. While small size industries are received more attention in South East economic at both national and international organizations, the medium size industries, is widely recognized but research and debates are practically not go anywhere and definition of MEs itself are remain diverse. The problem is that very few experts and economists pay attention to the strategic role of MEs in the industrial productivity, growth and export. The objective of this paper is two fold: (1) to analyze the overall/role of MEs in ASEAN countries, and (2) to compare condition of MEs and its implication for future business development in ASEAN countries. There are three major findings for the role of Mes: (1) there is a significant contribution of MEs in the economic growth for each counties being analyzed, (2) tend to labor intensive firms and (3) mostly MEs have capability to use "market niche" product development. Some constraints of MEs development in ASEAN countries are: (1) most MEs are local resource based industries and this is the reason why may have play an important role in the "industrial safetynet" during economic crisis, (2) ASEAN don't have a MEs strong business network such as business association, cooperative, and also market information network, and (3) definitions of MEs among member are so diverse and therefore it is quiet difficult to "reconcile" program for the promoting scheme among ASEAN members. Key words: small and medium enterprises, SMEs, industry, industrialization, vertical immobility, structure industry.