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Economic Growth in Asia: Determinants and Prospects

Author

Listed:
  • Lee, Jong-Wha

    (Asian Development Bank)

  • Hong, Kiseok

    (Asian Development Bank)

Abstract

Using a growth accounting framework, we find that developing Asia grew rapidly over the past 3 decades mainly due to robust growth in capital accumulation. The contributions of education and total factor productivity in the region’s past economic growth remain relatively limited. Our baseline projections based on the model of conditional convergence show that the gross domestic product (GDP) growth rates of the 12 developing Asian economies covered by this paper will be consistently lower for the next 2 decades than their historical performance. However, policy reforms in education, property rights, and research and development can substantially raise GDP growth in the region and partly offset the slowdown in growth caused by the convergence phenomenon. By expanding at robust rates, developing Asia will account for close to two thirds of the world economy in 2030, almost doubling the current 34% share of the region in 2009.

Suggested Citation

  • Lee, Jong-Wha & Hong, Kiseok, 2010. "Economic Growth in Asia: Determinants and Prospects," ADB Economics Working Paper Series 220, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0220
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; growth accounting; capital accumulation; human capital; total factor productivity;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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