Growth Triangles

(1990s up to today)
 Definition:
• Development model/economic concept involving linking adjacent areas of
separate countries with different endowments of factors of production
(land, labor, capital) and different sources of comparative advantage to
form a sub-region of economic growth.
• Growth triangles are also called sub-regional economic zones, natural
economic territories or extended metropolitan regions.
 Goal of Growth Triangles
•Increase trade, tourism and investment through cross-border cooperation.
o6 Priority Areas of Cross Border Economic Integration:
1. Infrastructure Development 4. Tourism
2. Agriculture and Fisheries 5. Human Resource Development
3. Trade 6. Professional Services
•Increasing exports to the rest of the world by enhancing competitiveness for exports and investments.
•Free movement of people, goods and services, making the best use of common infrastructure and natural
resources.
•Two sectors:
1.Private sector - lead role, mobilizes trade and investments
2.Public sector - provides infrastructure development, fiscal incentives and a favorable administrative framework
 Key Factors for Success
• Economic Complementarity
• Geographical Proximity
• Political Commitment
• Infrastructure Development
 Major Growth Triangles
•Southeast Asia
1. BIMP-EAGA
(Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area)
2. IMS-GT
(Indonesia-Malaysia-Singapore Growth Triangle)
- SIJORI Growth Triangle in 1989
- Johor (Malaysia)
- Riau Islands (Province of Indonesia)
3. IMT-GT
(Indonesia-Malaysia-Thailand Growth Triangle)
• 6 Priority Areas of Cross Border Economic Integration:
1. Infrastructure Development 4. Tourism
2. Agriculture and Fisheries 5. Human Resource Development
3. Trade 6. Professional Services
• Asia Pacific
1. TIA-GT
(Timor-Leste-Indonesia-Australia Growth Triangle)