IDEAS home Printed from https://ideas.repec.org/p/ags/umedbu/12968.html
   My bibliography  Save this paper

Growth Theory And Accounting For Growth Of The Taiwanese Economy

Author

Listed:
  • Lin, Pei-Chien
  • Roe, Terry L.

Abstract

A growth accounting and an econometric exercise are used to provide insights into the evolution of the Taiwanese economy over the period 1966-96. The approach links the GDP function of a multiple sector neoclassical growth model to growth accounting and, subsequently to the estimation of the parameters of this function. The growth accounting results show that the contribution of total factor productivity (TFP) to growth in GDP averaged about 32 percent over the period, and this contribution increased as the economy approached its long-run equilibrium during the decade of the 1980s, with evidence of some departure during 1991-96. Growth in TFP increased output growth in industry and services while growth in skilled labor benefited all sectors. Growth in capital stock increased the growth of the industrial sector the most, followed by services, but the effect on agricultural output growth was negative. Growth in TFP and capital stock appear to have increased the capacity of the industrial and service sectors to pull resources from agriculture.

Suggested Citation

  • Lin, Pei-Chien & Roe, Terry L., 1999. "Growth Theory And Accounting For Growth Of The Taiwanese Economy," Bulletins 12968, University of Minnesota, Economic Development Center.
  • Handle: RePEc:ags:umedbu:12968
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/12968
    Download Restriction: no

    References listed on IDEAS

    as
    1. Govindan, Kumaresan & Gopinath, Munisamy & Roe, Terry L., 1996. "Growth accounting, supply response and factor returns in general equilibrium: The case of Indonesia," Journal of Asian Economics, Elsevier, vol. 7(1), pages 77-95.
    2. Diewart, W Erwin & Morrison, Catherine J, 1986. "Adjusting Output and Productivity Indexes for Changes in the Terms of Trade," Economic Journal, Royal Economic Society, vol. 96(383), pages 659-679, September.
    3. 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.
    4. Diewert, W E & Wales, T J, 1992. "Quadratic Spline Models for Producer's Supply and Demand Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 705-722, August.
    5. 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.
    6. Kohli, Ulrich, 1997. "Accounting for Recent Economic Growth in Southeast Asia," Review of Development Economics, Wiley Blackwell, vol. 1(3), pages 245-256, October.
    7. Robertson, P.E., 1998. "Growth Accounting, Growth Theory and the East Asian Miracle," Papers 98/11, New South Wales - School of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    economic growth; productivity; technological change; International Development; Productivity Analysis; O3; O4; O5;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:umedbu:12968. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/dcumnus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.