Productivity and Economic Growth in East Asia: Innovation, Efficiency and Accumulation
UCSC, Economics Working Paper No. 502
31 Pages Posted: 7 Nov 2001
Abstract
Sources of growth in East Asia have been a controversial subject in the literature. This necessitates more empirical studies to see whether there is more convergence to a particular view of the sources of growth. This study provides a comprehensive examination of sources of growth that allows one to decompose total factor productivity growth, separating out technical efficiency changes from technological progress. This paper applies a varying coefficients frontier production function model to data from 20 manufacturing sectors at the 3-digit SIC level to examine the sources of growth in four East Asian economies. The economies are Hong Kong, Singapore, Japan and South Korea, and the period covered is 1987-93. We find that while there is ample evidence of the importance of increasing inputs in growth, and there is some support for technical efficiency change, or catching up to the frontier over this period, there is weak or even negative evidence for the role of technological progress, measured as a shift in the estimated production frontier.
Keywords: TFPG, technical efficiency change, sources of growth
JEL Classification: C21, O30, O47
Suggested Citation: Suggested Citation
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