Imperfect Competition, Economic Miracle, and Manufacturing Productivity Growth: Empirical Evidence from Taiwan
Several recent studies on total factor productivity (TFP) concluded that the East Asian economies benefited little from TFP growth. This study claims that the failure by previous studies to consider the effect of net indirect taxes and market imperfections resulted in the underestimation of the share of the contribution of labor input to factor income, which consequently led to the overestimation of capital share and understatement of TFP growth. Therefore, this study has modified the conventional approach of calculating factor shares by taking account of net indirect taxes and market imperfections and used the modified approach to estimate TFP growth in 16 Taiwanese manufacturing industries during the period 1979–1999. The conclusion drawn by the study is that TFP growth was the driving force behind the success of Taiwan's manufacturing industries, although many of these industries experienced a sharp decline in TFP during the 1990s. Copyright IAES 2006
Volume (Year): 34 (2006)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Suite 650, International Tower, 229 Peachtree Street, N.E., Atlanta, GA 30303
Phone: (404) 965-1555
Fax: (404) 965-1556
Web page: http://www.iaes.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/11293/PS2|
References listed on IDEAS
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.:
- Kim Jong-Il & Lau Lawrence J., 1994. "The Sources of Economic Growth of the East Asian Newly Industrialized Countries," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 235-271, September.
- Barro, Robert J, 1999.
"Notes on Growth Accounting,"
Journal of Economic Growth,
Springer, vol. 4(2), pages 119-137, June.
- Robert J. Barro, 1998. "Notes on Growth Accounting," NBER Working Papers 6654, National Bureau of Economic Research, Inc.
- Chen, Tain-Jy & Tang, De-piao, 1990. "Export Performance and Productivity Growth: The Case of Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 575-585, April.
- Plutarchos Sakellaris & Daniel J. Wilson, 2004. "Quantifying Embodied Technological Change," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 1-26, January.
- Plutarchos Sakellaris & Daniel J. Wilson, 2001. "Quantifying embodied technological change," Working Paper Series 2001-16, Federal Reserve Bank of San Francisco.
- Sakellaris, Plutarchos & Wilson, Daniel J., 2002. "Quantifying embodied technological change," Working Paper Series 0158, European Central Bank.
- Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
- Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.
- Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
- Jonathan Temple, 1997. "St Adam and the Dragons: Neo-classical economics and the East Asian miracle," Oxford Development Studies, Taylor & Francis Journals, vol. 25(3), pages 279-300.
- Aw, Bee Yan & Chen, Xiaomin & Roberts, Mark J., 2001. "Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing," Journal of Development Economics, Elsevier, vol. 66(1), pages 51-86, October.
- Alwyn Young, 1992. "A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore," NBER Chapters, in: NBER Macroeconomics Annual 1992, Volume 7, pages 13-64 National Bureau of Economic Research, Inc.
- M. Ishaq Nadiri & Seongjun Kim, 1996. "R&D, Production Structure and Productivity Growth: A Comparison of the US, Japanese and Korean Manufacturing Sectors," NBER Working Papers 5506, National Bureau of Economic Research, Inc.
- Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc.
- Michael Sarel, 1995. "Growth in East Asia; What We Can and What We Cannot Infer From it," IMF Working Papers 95/98, .
- 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(2), pages 135-204.
- Okuda, Satoru, 1994. "Taiwan's trade and FDI policies and their effect on productivity growth," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 32(4), pages 423-443, December.
- Aw, Bee-Yan, 1993. "Price discrimination and markups in export markets," Journal of Development Economics, Elsevier, vol. 42(2), pages 315-336, December. Full references (including those not matched with items on IDEAS)