Is anything left of the debate about the sources of growth in East Asia thirty years later?

The year 2023 commemorates the 30th anniversary of the publication of the influential, yet controversial, study The East Asian Miracle report by the World Bank (1993). An important part of the report’s analysis was concerned with the sources of growth in East Asia. This was based on the neoclassical...

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Main Authors: Felipe, Jesus, McCombie, John
Format: text
Published: Animo Repository 2023
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Online Access:https://animorepository.dlsu.edu.ph/res_aki/1
https://animorepository.dlsu.edu.ph/context/res_aki/article/1000/viewcontent/dlsu_aki_working_paper_series_no._2023_02_086.pdf
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spelling oai:animorepository.dlsu.edu.ph:res_aki-10002023-03-31T06:06:52Z Is anything left of the debate about the sources of growth in East Asia thirty years later? Felipe, Jesus McCombie, John The year 2023 commemorates the 30th anniversary of the publication of the influential, yet controversial, study The East Asian Miracle report by the World Bank (1993). An important part of the report’s analysis was concerned with the sources of growth in East Asia. This was based on the neoclassical decomposition of growth into productivity and factor accumulation. At about the same time, the publication of Alwyn Young’s (1992, 1995) and J-I Kim and Lawrence Lau’s (1994) studies, and Paul Krugman’s (1994) popularization of the “zero total factor productivity growth” thesis, led to a very important debate within the profession, on the sources of growth in East Asia. The emerging literature on China’s growth during the 1990s also used the neoclassical growth model to decompose overall growth into total factor productivity growth and factor accumulation. This survey reviews what the profession has learned during the last 30 years about East Asia’s growth using growth accounting exercises and estimations of production functions. It demystifies this literature by pointing out the significant methodological problems inherent in the neoclassical growth accounting approach. We conclude that the analysis of growth within the framework of the neoclassical model should be seriously questioned. Instead, we propose that researchers look at other approaches, for example, the balance-of-paymentsconstrained growth rate approach of Thirlwall (1979) or the product space of Hidalgo et al. (2007), together with the notion of complexity of Hidalgo and Hausmann (2009). 2023-02-10T08:00:00Z text application/pdf https://animorepository.dlsu.edu.ph/res_aki/1 https://animorepository.dlsu.edu.ph/context/res_aki/article/1000/viewcontent/dlsu_aki_working_paper_series_no._2023_02_086.pdf Angelo King Institute for Economic and Business Studies Animo Repository Accounting Identity Biased Technological Progress China East Asia Growth Accounting Dual TFP Primal TFP Accounting Technology and Innovation
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
topic Accounting Identity
Biased Technological Progress
China
East Asia
Growth Accounting
Dual TFP
Primal TFP
Accounting
Technology and Innovation
spellingShingle Accounting Identity
Biased Technological Progress
China
East Asia
Growth Accounting
Dual TFP
Primal TFP
Accounting
Technology and Innovation
Felipe, Jesus
McCombie, John
Is anything left of the debate about the sources of growth in East Asia thirty years later?
description The year 2023 commemorates the 30th anniversary of the publication of the influential, yet controversial, study The East Asian Miracle report by the World Bank (1993). An important part of the report’s analysis was concerned with the sources of growth in East Asia. This was based on the neoclassical decomposition of growth into productivity and factor accumulation. At about the same time, the publication of Alwyn Young’s (1992, 1995) and J-I Kim and Lawrence Lau’s (1994) studies, and Paul Krugman’s (1994) popularization of the “zero total factor productivity growth” thesis, led to a very important debate within the profession, on the sources of growth in East Asia. The emerging literature on China’s growth during the 1990s also used the neoclassical growth model to decompose overall growth into total factor productivity growth and factor accumulation. This survey reviews what the profession has learned during the last 30 years about East Asia’s growth using growth accounting exercises and estimations of production functions. It demystifies this literature by pointing out the significant methodological problems inherent in the neoclassical growth accounting approach. We conclude that the analysis of growth within the framework of the neoclassical model should be seriously questioned. Instead, we propose that researchers look at other approaches, for example, the balance-of-paymentsconstrained growth rate approach of Thirlwall (1979) or the product space of Hidalgo et al. (2007), together with the notion of complexity of Hidalgo and Hausmann (2009).
format text
author Felipe, Jesus
McCombie, John
author_facet Felipe, Jesus
McCombie, John
author_sort Felipe, Jesus
title Is anything left of the debate about the sources of growth in East Asia thirty years later?
title_short Is anything left of the debate about the sources of growth in East Asia thirty years later?
title_full Is anything left of the debate about the sources of growth in East Asia thirty years later?
title_fullStr Is anything left of the debate about the sources of growth in East Asia thirty years later?
title_full_unstemmed Is anything left of the debate about the sources of growth in East Asia thirty years later?
title_sort is anything left of the debate about the sources of growth in east asia thirty years later?
publisher Animo Repository
publishDate 2023
url https://animorepository.dlsu.edu.ph/res_aki/1
https://animorepository.dlsu.edu.ph/context/res_aki/article/1000/viewcontent/dlsu_aki_working_paper_series_no._2023_02_086.pdf
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