Market Imperfection and Productivity Growth—Alternative Estimates for Taiwan
This study first explores why the shares of factor inputs have not been measured correctly and concludes that the earlier findings are biased due to the miscalculation of factor shares which have produced low estimated total factor productivity (TFP) growth in the East Asian countries. Second, three approaches are proposed to empirically illustrate the impact of capital and labor shares on the estimates of TFP growth. It is suggested that TFP growth in the East Asian economies will be understated if net indirect taxes and imperfect competition profit are ignored. Finally, by taking the net indirect taxes and imperfect competition profits into account, the result of this paper indicates that Taiwan's economy has enjoyed an average annual TFP growth rate of 3.6% over the period 1980–1999. Copyright Kluwer Academic Publishers 2004
Volume (Year): 22 (2004)
Issue (Month): 1 (July)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/microeconomics/journal/11123/PS2|
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.:
- 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.
- Young, Alwyn, 1994. "Lessons from the East Asian NICS: A contrarian view," European Economic Review, Elsevier, vol. 38(3-4), pages 964-973, April.
- Chang, Ching-Cheng & Luh, Yir-Hueih, 1999. "Efficiency change and growth in productivity: the Asian growth experience," Journal of Asian Economics, Elsevier, vol. 10(4), pages 551-570.
- Fischer, Stanley, 1993.
"The role of macroeconomic factors in growth,"
Journal of Monetary Economics,
Elsevier, vol. 32(3), pages 485-512, December.
- Stanley Fischer, 1993. "The Role of Macroeconomic Factors in Growth," NBER Working Papers 4565, National Bureau of Economic Research, Inc.
- Fuess, Scott Jr. & Van den Berg, Hendrik, 1996. "Transactional activities and total factor productivity growth in Taiwan," Journal of Asian Economics, Elsevier, vol. 7(4), pages 635-650.
- Jesus Felipe, 1999. "Total factor productivity growth in East Asia: A critical survey," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 1-41.
- Felipe, J., 1997. "Total Factor Productivity Growth in East Asia: A Critical Survey," Papers 65, Asian Development Bank.
- Chang-Tai Hsieh, 1999. "Productivity Growth and Factor Prices in East Asia," American Economic Review, American Economic Association, vol. 89(2), pages 133-138, May.
- Catherine J. Morrison, 1990. "Market Power, Economic Profitability and Productivity Growth Measurement: An Integrated Structural Approach," NBER Working Papers 3355, National Bureau of Economic Research, Inc.
- 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)
When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:22:y:2004:i:1:p:5-27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.