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A Panel Data Approach to the Contribution of Trade to the Growth of Selected East Asian Countries

Author

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  • Rao, B. Bhaskara
  • Singh, Rup

Abstract

Panel data methods are used to estimate the contribution of openness of trade to the long term or the steady state rate of growth of output (SSGR) of selected East Asia countries viz., Singapore, Malaysia, Thailand, Hong Kong, Korea and the Philippines. Since SSGR is unobservable, its estimates are derived by estimating modified production functions and by imposing the equilibrium conditions of the Solow (1956) growth model. Panel cointegration tests showed that there is a well defined long run relation between output, trade ratio and capital. Growth accounting exercise showed that factor accumulation is the dominant contributor to the SSGR of this region. Openness of trade, however, has made a significant contribution to SSGR by 1999-2003.

Suggested Citation

  • Rao, B. Bhaskara & Singh, Rup, 2008. "A Panel Data Approach to the Contribution of Trade to the Growth of Selected East Asian Countries," MPRA Paper 10663, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10663
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    File URL: https://mpra.ub.uni-muenchen.de/10663/1/MPRA_paper_10663.pdf
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    References listed on IDEAS

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    Cited by:

    1. Rup Singh, 2015. "Forces of economic growth in China, India, and other Asian countries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 62-81, May.

    More about this item

    Keywords

    Panel unit root and cointegration tests; Trade Openness; Total Factor Productivity and East Asian Countries;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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