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Productivity growth of East Asia economies' manufacturing: A decomposition analysis


  • Hailin Liao
  • Mark Holmes
  • Tom Weyman-Jones
  • David Llewellyn


Applying a stochastic production frontier to sector-level data within manufacturing, this paper examines total factor productivity (TFP) growth for seven East Asian economies during 1963-98, using both single country and cross-country regressions. The analysis focuses on the trend in technological progress (TP) and technical efficiency change (TEC), and the role of productivity change in economic growth. The empirical results reveal that although input factor accumulation is still the main source for East Asian economies' growth, TFP growth is accounting for an increasing and important proportion of output growth, among which the improved TEC plays a crucial role in productivity growth.

Suggested Citation

  • Hailin Liao & Mark Holmes & Tom Weyman-Jones & David Llewellyn, 2007. "Productivity growth of East Asia economies' manufacturing: A decomposition analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 43(4), pages 649-674.
  • Handle: RePEc:taf:jdevst:v:43:y:2007:i:4:p:649-674
    DOI: 10.1080/00220380701259723

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    References listed on IDEAS

    1. Eggers, Jorg & Laschewski, Lutz & Schleyer, Christian, 2004. "Agri-Environmental Policy in Germany: Understanding the Role of Regional Administration," Institutional Change in Agriculture and Natural Resources Discussion Papers 18832, Humboldt University Berlin, Department of Agricultural Economics.
    2. Brent Swallow & Daniel Bromley, 1995. "Institutions, governance and incentives in common property regimes for African rangelands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(2), pages 99-118, September.
    3. N/A, 1996. "Note:," Foreign Trade Review, , vol. 31(1-2), pages 1-1, January.
    4. Gebremedhin, Berhanu & Pender, John & Tesfay, Girmay, 2003. "Community natural resource management: the case of woodlots in Northern Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 8(01), pages 129-148, February.
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    Cited by:

    1. Adetutu, Morakinyo O. & Glass, Anthony J. & Weyman-Jones, Thomas G., 2016. "Decomposing energy demand across BRIIC countries," Energy Economics, Elsevier, vol. 54(C), pages 396-404.
    2. Simanti Bandyopadhyay, 2010. "Effect of regulation on efficiency: evidence from Indian cement industry," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 153-170, June.
    3. Kumar, Surender & Managi, Shunsuke, 2012. "Productivity and convergence in India: A state-level analysis," Journal of Asian Economics, Elsevier, vol. 23(5), pages 548-559.
    4. Erol Taymaz & Ebru Voyvoda & Kamil Yilmaz, 2010. "Global Links and Local Bonds: The Role of Ownership and Size in Productivity Growth," Koç University-TUSIAD Economic Research Forum Working Papers 1020, Koc University-TUSIAD Economic Research Forum.
    5. Erol Taymaz & Ebru Voyvoda & Kamil Yilmaz, 2008. "Turkiye Imalat Sanayiinde Yapisal Dönüsüm ve Teknolojik Degisme Dinamikleri," ERC Working Papers 0804, ERC - Economic Research Center, Middle East Technical University, revised Jun 2008.
    6. Ghebremichael, Asghedom & Potter-Witter, Karen, 2009. "Effects of tax incentives on long-run capital formation and total factor productivity growth in the Canadian sawmilling industry," Forest Policy and Economics, Elsevier, vol. 11(2), pages 85-94, March.

    More about this item


    JEL Classification: D24; L60; O30; O53; O47;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence


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