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Are East Asian Economies Dynamically Efficient?


  • Kookshin Ahn

    () (Department of Economics, Chung-Ang University)


This paper investigates dynamic efficiency of major East Asian economies based on the criterion of Abel, Mankiw, Summers and Zeckhauser(1989). It shows that both Korea and Taiwan are not necessarily dynamically efficient since they do not satisfy the sufficient condition of dynamic efficiency. It also shows that, contrary to the claim by Abel, Mankiw, Summers and Zeckhauser(1989), Japan also does not satisfy the sufficient condition of dynamic efficiency. Possible causes and implications of these empirical results are briefly reviewed.

Suggested Citation

  • Kookshin Ahn, 2003. "Are East Asian Economies Dynamically Efficient?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 101-110, June.
  • Handle: RePEc:jed:journl:v:28:y:2003:i:1:p:101-110

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    Cited by:

    1. Creina Day & Garth Day, 2007. "Fiscal Reform, Growth and Current Account Dynamics," ANU Working Papers in Economics and Econometrics 2007-485, Australian National University, College of Business and Economics, School of Economics.
    2. Knolle, Julia & Lehmann, Kai, 2016. "An Empirical Assessment of Global Capital Productivity," Hannover Economic Papers (HEP) dp-574, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Kevin Luo & Tomoko Kinugasa & Kai Kajitani, 2018. "Dynamic efficiency in world economy," Discussion Papers 1801, Graduate School of Economics, Kobe University.

    More about this item


    Dynamic Efficiency; East Asian Economies; Proprietor¡¯s Income;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries


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