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What Explains the Industrial Revolution in East Asia? Evidence From the Factor Markets

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Author Info
Chang-Tai Hsieh
Abstract

This paper presents dual estimates of total factor productivity growth (TFPG) for East Asian countries. While the dual estimates of TFPG for Korea and Hong Kong are similar to the primal estimates, they exceed the primal estimates by 1 percent a year for Taiwan and by more than 2 percent for Singapore. The reason for the large discrepancy for Singapore is because the return to capital has remained constant, despite the high rate of capital accumulation indicated by Singapore's national accounts. This discrepancy is not explained by financial market controls, capital income taxes, risk premium changes, and public investment subsidies. (JEL O11, O16, O47, O53)

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File URL: http://hdl.handle.net/10.1257/00028280260136372
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 3 (June)
Pages: 502-526
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Handle: RePEc:aea:aecrev:v:92:y:2002:i:3:p:502-526

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  1. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1996-2), pages 135-204. [Downloadable!]
  2. Ermisch, J. F. & Huff, W. G., 1999. "Hypergrowth in an East Asian NIC: Public policy and capital accumulation in Singapore," World Development, Elsevier, vol. 27(1), pages 21-38, January. [Downloadable!] (restricted)
  3. Susan M. Collins & Won-Am Park, 1989. "External Debt and Macroeconomic Performance in South Korea," NBER Chapters, in: Developing Country Debt and the World Economy, pages 121-140 National Bureau of Economic Research, Inc. [Downloadable!]
  4. Susan M. Collins & Won-Am Park, 1989. "External Debt and Macroeconomic Performance in South Korea," NBER Chapters, in: Developing Country Debt and Economic Performance, Volume 3: Country Studies - Indonesia, Korea, Philippines, Turkey, pages 151-152 National Bureau of Economic Research, Inc. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Aekapol Chongvilaivan, 2008. "Learning by Exporting and High-tech Capital Deepening in Singapore Manufacturing Industries, 1974-2006," SCAPE Policy Research Working Paper Series 0804, National University of Singapore, Department of Economics, SCAPE. [Downloadable!]
  2. Giannetti, Mariassunta, 2003. "On the Causes of Overlending: Are Guarantees on Deposits the Culprit?," CEPR Discussion Papers 4055, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. John Fernald & Brent Neiman, 2003. "Measuring productivity growth in Asia: do market imperfections matter?," Working Paper Series WP-03-15, Federal Reserve Bank of Chicago. [Downloadable!]
  4. Veloso, Fernando A. & Ferreira, Pedro Cavalcanti Gomes & Pessoa, Samuel de Abreu, 2004. "On The Tyranny of Numbers: East Asian Miracles in World Perspective," Economics Working Papers (Ensaios Economicos da EPGE) 569, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
    Other versions:
  5. Hiau Looi Kee, 2002. "Productivity in endowments : sectoral evidence for Hong Kong's aggregate growth," Policy Research Working Paper Series 2892, The World Bank. [Downloadable!]
  6. Francisco Arizala & Eduardo Cavallo & Arturo Galindo, 2009. "Financial Development and TFP Growth: Cross-Country and Industry-Level Evidence," RES Working Papers 4630, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Holger G”rg & Frederic Warzynski, 2003. "Price cost margins and exporting behaviour: Evidence from firm level data," LICOS Discussion Papers 13303, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  8. John Fernald & Brent Neiman, 2006. "Measuring the miracle: market imperfections and Asia's growth experience," Working Paper Series 2006-17, Federal Reserve Bank of San Francisco. [Downloadable!]
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  9. W A Razzak, 2004. "Towards Building A New Consensus About New Zealand’s Productivity," GE, Growth, Math methods 0405002, EconWPA. [Downloadable!]
  10. Kong Weng Ho & Hian Teck Hoon, 2006. "Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore," Economic Growth centre Working Paper Series 0606, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre. [Downloadable!]
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  11. Jozef Konings & Patrick Van Cayseele & Frederic Warzynski, 2003. "The Effects Of Privatization And International Competitive Pressure On Firms’ Price-Cost Margins: Micro Evidence From Emerging Economies1," William Davidson Institute Working Papers Series 2003-603, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  12. Robert C. Feenstra & Marshall B. Reinsdorf, 2007. "Should Exact Index Numbers Have Standard Errors? Theory and Application to Asian Growth," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 483-513 National Bureau of Economic Research, Inc. [Downloadable!]
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  13. Konings, Jozef & Van Cayseele, Patrick & Warzynski, Frederic, 2003. "The Effect of Privatization and Competitive Pressure on Firms' Price-Cost Margins: Micro Evidence from Emerging Economies," CEPR Discussion Papers 3703, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Aekapol Chongvilaivan, 2008. "Learning by Exporting and High-tech Capital Deepening in Singapore Manufacturing Industries, 1974-2006," Microeconomics Working Papers 2008.2, East Asian Bureau of Economic Research. [Downloadable!]
  15. Wei-Kang Wong, 2007. "Economic Growth: A Channel Decomposition Exercise," The B.E. Journal of Macroeconomics, Berkeley Electronic Press, vol. 7(1). [Downloadable!]
  16. Hian Teck Hoon, 2006. "Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore," Development Economics Working Papers 2006.13, East Asian Bureau of Economic Research. [Downloadable!]
  17. Robert M. Townsend & Hyeok Jeong, 2004. "Discovering the Sources of TFP Growth: Occupation Choice, Capital Heterogeneity, and Financial Deepening," Econometric Society 2004 North American Summer Meetings 405, Econometric Society. [Downloadable!]
  18. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Peterson Institute Working Paper Series WP03-8, Peterson Institute for International Economics. [Downloadable!]
  19. Diego A. Comin & Bart Hobijn, 2008. "An Exploration of Technology Diffusion," Harvard Business School Working Papers 08-093, Harvard Business School. [Downloadable!]
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  20. Ciccone, Antonio & Peri, Giovanni, 2003. "Skills' Substitutability and Technological Progress: U.S. States 1950-1990," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  21. Jakob B. Madsen, 2009. "Growth And Capital Deepening Since 1870: Is It All Technological Progress?," Monash Economics Working Papers 10/09, Monash University, Department of Economics. [Downloadable!]
  22. Francisco Alvarez-Cuadrado, 2006. "Growth Outside The Stable Path: Lessons From The European Reconstruction," Departmental Working Papers 2006-02, McGill University, Department of Economics. [Downloadable!]
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  23. Andrea Finicelli & Patrizio Pagano & Massimo Sbracia, 2009. "Trade-Revealed TFP," Temi di discussione (Economic working papers) 729, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
    • Finicelli, Andrea & Pagano, Patrizio & Sbracia, Massimo, 2009. "Trade-revealed TFP," MPRA Paper 16951, University Library of Munich, Germany. [Downloadable!]
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