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East Asian growth experience revisited from the perspective of a neoclassical model

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  • Shu-Shiuan Lu

    (National Tsing Hua University)

Abstract

The business cycle accounting "wedge" methodology is used to identify the mechanisms driving the rapid growth of Hong Kong, Singapore, South Korea, and Taiwan since 1966. Analysis with a neoclassical growth model reveals that growth in these economies has been sustained by different mechanisms at different stages of development. Factor accumulation, which arises primarily from increases in capital wedges, accounts for most of the rapid growth in the earlier stages. However, in the later stages, total factor productivity growth becomes the primary driver. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2012.04.002
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 15 (2012)
Issue (Month): 3 (July)
Pages: 359-376

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Handle: RePEc:red:issued:09-1

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Keywords: Neoclassical; Sources of Growth; Productivity; East Asia;

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References

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Cited by:
  1. Chakraborty, Suparna & Otsu, Keisuke, 2012. "Deconstructing Growth - A Business Cycle Accounting Approach with application to BRICs," MPRA Paper 41076, University Library of Munich, Germany.
  2. Lu, Shu-Shiuan, 2013. "The role of capital market efficiency in long-term growth: A quantitative exploration," Journal of Macroeconomics, Elsevier, vol. 36(C), pages 161-174.

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