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Industrial Convergence in East Asia

Author

Listed:
  • Akira Kohsaka

    (Osaka School of International Public Policy, Osaka University)

  • Jun-ichi Shinkai

    (Faculty of Business Administration Kinki University)

Abstract

Despite generally solid growth in East Asia since the 1980s, there remain large differences in productivity across the economies. Focusing on convergence in industrial productivities, this paper examines their convergence processes. We decompose industrial productivity growth into intra-industry productivity growth and inter-industry reallocation of resources. We find that, as contrasting to ANIEs (Hong Kong, Korea, Singapore and Taiwan), ASEAN4 (Indonesia, Malaysia, Philippines and Thailand) have not shown persistent industrial productivity convergence nor persistent structural transformation toward industrialization, while China’s productivity growth shows some magnified version of those of Korea and Taiwan. In other words, we argue that ANIEs and ASEAN4 make two distinct groups in terms of aggregate and sectoral productivity convergence.

Suggested Citation

  • Akira Kohsaka & Jun-ichi Shinkai, 2018. "Industrial Convergence in East Asia," OSIPP Discussion Paper 18E009, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:18e009
    as

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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2018/DP2018E009.pdf
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    References listed on IDEAS

    as
    1. Akira Kohsaka & Jun-ichi Shinkai, 2013. "It's Not Structural Change, but Domestic Demand: Productivity Growth in Japan," OSIPP Discussion Paper 13E005, Osaka School of International Public Policy, Osaka University.
    2. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    3. Debraj Ray, 2010. "Uneven Growth: A Framework for Research in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 45-60, Summer.
    4. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    East Asia; productivity growth; structural transformation; sectoral productivity growth; inter-industry reallocation; productivity convergence.;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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