Flying geese paradigm

Akamatsu's theory emphasizes the differentiation of the world economy, which leads to the rapid diffusion of new techniques to rising industrial nations, which starts with the import of new commodities by these nations. In time, techniques and capital goods are imported as well, and homogenous industries are being established. The uniformization of both industry and agriculture gave rise to the fierce and conflictive competition between Europe, the United States and Japan in the last quarter of the 19th Century. When innovation occurs in some industries in an advanced nation, investment is concentrated there, causing a rise in the trade cycle. Innovation leads to an increase in exports, and the nation's prosperity creates and increases the import of raw materials and foodstuffs.{{Cite book|title=Great divergence and great convergence: a global perspective|first=V.A.|last=Korotaev |date=2015|publisher=Springer|isbn=9783319363660|oclc=911206248}} Akamatsu sees a counter-movement in other parts of the world, centered on the rising production of gold, which, according to him, leads to an increase in effective demand and further stimulates exports of the innovating nation. In that way, world production and trade expand, prices increase and a worldwide rise in the long-term trade cycle results.

Akamatsu's theory emphasizes the differentiation of the world economy, which leads to the rapid diffusion of new techniques to rising industrial nations, which starts with the import of new commodities by these nations. In time, techniques and capital goods are imported as well, and homogenous industries are being established. The uniformization of both industry and agriculture gave rise to the fierce and conflictive competition between Europe, the United States and Japan in the last quarter of the 19th Century. When innovation occurs in some industries in an advanced nation, investment is concentrated there, causing a rise in the trade cycle. Innovation leads to an increase in exports, and the nation's prosperity creates and increases the import of raw materials and foodstuffs.{{Cite book|title=Great divergence and great convergence: a global perspective|first=V.A.|last=Korotaev |date=2015|publisher=Springer|isbn=9783319363660|oclc=911206248}} Akamatsu sees a counter-movement in other parts of the world, centered on the rising production of gold, which, according to him, leads to an increase in effective demand and further stimulates exports of the innovating nation. In that way, world production and trade expand, prices increase and a worldwide rise in the long-term trade cycle results.

However, innovations spread from the innovating nations to other nations, leading to the development of industries in those countries, with the result of a conflictive relationship with the industries of the innovating nation. Exports of the innovating nation become stagnant, and on the world level, there is a tendency towards [[overproduction]], prices turn downwards, and the rates of growth of production and trade fall. The first, rising [[A-phase]] of the [[Kondratiev cycle]] will be according to Akamatsu a period of differentiation in the world economic structure, while the "falling period" or [[B-phase]] of the [[Kondratiev cycle]] will, Akamatsu argues, coincide with a process of uniformization in world economic structure.

However, innovations spread from the innovating nations to other nations, leading to the development of industries in those countries, with the result of a conflictive relationship with the industries of the innovating nation. Exports of the innovating nation become stagnant, and on the world level, there is a tendency towards [[overproduction]], prices turn downwards, and the rates of growth of production and trade fall. The first, rising A-phase of the [[Kondratiev cycle]] will be according to Akamatsu a period of differentiation in the world economic structure, while the "falling period" or B-phase of the Kondratiev cycle will, Akamatsu argues, coincide with a process of uniformization in world economic structure.

For Akamatsu, the characteristic structure of the Center-Periphery relationship is characterized by the fact that the underdeveloped nation will export primary products and will import industrial goods for consumption. Later on, an underdeveloped nation will attempt to produce goods that were hitherto imported, first in the field of consumer goods, and later on in the area of capital goods. As the fourth stage of the process, the underdeveloped nation will attempt to export capital goods. There will be a tendency of "advanced" differentiation in the world economy, however, because the capital goods industries in advanced nations will still advance further, giving rise to "extreme differences of comparative costs". The wild-geese flying pattern will include three sub-patterns: the first is the sequence of imports – domestic production – exports. The second will be the sequence from consumer goods to capital goods and from crude and simple articles to complex and refined articles. The third will be the alignment from the advanced nations to backward nations according to their stages of growth.

For Akamatsu, the characteristic structure of the Center-Periphery relationship is characterized by the fact that the underdeveloped nation will export primary products and will import industrial goods for consumption. Later on, an underdeveloped nation will attempt to produce goods that were hitherto imported, first in the field of consumer goods, and later on in the area of capital goods. As the fourth stage of the process, the underdeveloped nation will attempt to export capital goods. There will be a tendency of "advanced" differentiation in the world economy, however, because the capital goods industries in advanced nations will still advance further, giving rise to "extreme differences of comparative costs". The wild-geese flying pattern will include three sub-patterns: the first is the sequence of imports – domestic production – exports. The second will be the sequence from consumer goods to capital goods and from crude and simple articles to complex and refined articles. The third will be the alignment from the advanced nations to backward nations according to their stages of growth.