IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpge/0306003.html
   My bibliography  Save this paper

Accounting for Economic Growth in Taiwan and Mainland China: A Comparative Analysis

Author

Listed:
  • Gregory C. Chow

    (Princeton University)

Abstract

This paper provides a statistical summary of aggregate economic growth in Taiwan and mainland China using the standard national income accounting framework by decomposing aggregate growth into components due to growths in capital, labor and total factor productivity. For Taiwan, new series of capital stock and of human capital are constructed. The major findings include (a) the stability of input coefficients (under the assumption of constant returns) and of the rate of increase in TFP for the entire period 1951-1999, (b) a labor exponent of about 0.7 and a rate of annual increase in TFP of about 0.03, and (c) a slower exponential rate of growth of real gdp since 1987 to about 0.065 from the 1951-1999 average of 0.081 mainly as a result of the large reduction in the growth rate of labor input to half. For mainland China, a capital stock series of Chow (1993) was extended to 1998. The major findings include (a) the stability of the relative input coefficients for the entire period 1952-1998 but TFP did not increase until 1979, (b) a labor exponent of about 0.35 and a rate of increase in TFP of about 0.027 after 1979, and (c) the absence of equally large reduction in the rate of increase in labor input as in Taiwan and the smaller exponent of labor leading to a prospect of only a moderate reduction in future growth rate.

Suggested Citation

  • Gregory C. Chow, 2003. "Accounting for Economic Growth in Taiwan and Mainland China: A Comparative Analysis," GE, Growth, Math methods 0306003, EconWPA.
  • Handle: RePEc:wpa:wuwpge:0306003
    Note: 26 pages.
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/ge/papers/0306/0306003.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. Gregory C. Chow, 1993. "Capital Formation and Economic Growth in China," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 809-842.
    3. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. WHALLEY, John & XIN, Xian, 2010. "China's FDI and non-FDI economies and the sustainability of future high Chinese growth," China Economic Review, Elsevier, vol. 21(1), pages 123-135, March.

    More about this item

    Keywords

    Growth;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wpa:wuwpge:0306003. 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: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    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.