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Efficiency and Productivity Gains in Knowledge-Based Production: The Case of East Asian Economies

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  • Wong Mei Foong
  • Tan Hui Boon
  • Lee Yoong Hon

Abstract

This study examines the technical change and efficiency in knowledge-based production of the selected East-Asia Countries using a panel stochastic frontier analysis. The empirical results indicate that Japan, Singapore, Korea, Malaysia and China appear to be the most efficient countries in the region in term of high-tech production. Indonesia and Philippines, on the other hand, appear to be the least efficient ones. In regard to the issue of catch-up and convergence, the results show that Malaysia and Korea are catching up with their developed counterpart, Japan; while the others are still not on the right path of catching up. In general, all the ASEAN-five-plus-three countries have exhibited good technical progress and have achieved a positive total factor productivity (TFP) growth in the period of 1992-2005. The overall increase in technical change indicates evidence of innovation in these countries.

Suggested Citation

  • Wong Mei Foong & Tan Hui Boon & Lee Yoong Hon, 2014. "Efficiency and Productivity Gains in Knowledge-Based Production: The Case of East Asian Economies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 122-143.
    • Handle: RePEc:bas:econst:y:2014:i:2:p:122-143
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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