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Industrial Convergence in East Asia


  • Akira Kohsaka

    (Osaka School of International Public Policy, Osaka University)

  • Jun-ichi Shinkai

    (Faculty of Business Administration Kinki University)


Despite generally solid growth in East Asia since the 1980s, there remain large differences in productivity across the economies. Focusing on convergence in industrial productivities, this paper examines their convergence processes. We decompose industrial productivity growth into intra-industry productivity growth and inter-industry reallocation of resources. We find that, as contrasting to ANIEs (Hong Kong, Korea, Singapore and Taiwan), ASEAN4 (Indonesia, Malaysia, Philippines and Thailand) have not shown persistent industrial productivity convergence nor persistent structural transformation toward industrialization, while China’s productivity growth shows some magnified version of those of Korea and Taiwan. In other words, we argue that ANIEs and ASEAN4 make two distinct groups in terms of aggregate and sectoral productivity convergence.

Suggested Citation

  • Akira Kohsaka & Jun-ichi Shinkai, 2018. "Industrial Convergence in East Asia," OSIPP Discussion Paper 18E009, Osaka School of International Public Policy, Osaka University.
  • Handle: RePEc:osp:wpaper:18e009

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    References listed on IDEAS

    1. Akira Kohsaka & Jun-ichi Shinkai, 2013. "It's Not Structural Change, but Domestic Demand: Productivity Growth in Japan," OSIPP Discussion Paper 13E005, Osaka School of International Public Policy, Osaka University.
    2. Debraj Ray, 2010. "Uneven Growth: A Framework for Research in Development Economics," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 45-60, Summer.
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    More about this item


    East Asia; productivity growth; structural transformation; sectoral productivity growth; inter-industry reallocation; productivity convergence.;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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