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Productivity Trends in Asia Since 1980

Listed author(s):
  • Noriyoshi Oguchi


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    Asia has become the economic powerhouse of the world. This article provides a detailed discussion of trends in output, labour and capital inputs, and labour, capital and total factor productivity (TFP) in Asian countries since 1980. The author finds that TFP growth has been quite rapid in most Asian countries since 1980 and has made a substantial contriubtion to output growth. This is in contrast to the widely cited observation made by Paul Krugman that Asian growth before the mid 1990s was largely unsustainable since it had been due more to growth in factor inputs than in productivity. However, once the author adjusts for labour quality, capital quality and shifts in employment and capital to high-productivity sectors, TFP gains are less impressive. However, TFP growth has made an important contribution to output growth in a small number of Asian countries even after adjustment for improvements in labour quality.

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    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 10 (2005)
    Issue (Month): (Spring)
    Pages: 69-78

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    Handle: RePEc:sls:ipmsls:v:10:y:2005:5
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