American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
What Explains the Industrial Revolution in East Asia? Evidence From the Factor Markets
American Economic Review
vol. 92,
no. 3, June 2002
(pp. 502–526)
Abstract
This paper presents dual estimates of total factor productivity growth (TFPG) for East Asian countries. While the dual estimates of TFPG for Korea and Hong Kong are similar to the primal estimates, they exceed the primal estimates by 1 percent a year for Taiwan and by more than 2 percent for Singapore. The reason for the large discrepancy for Singapore is because the return to capital has remained constant, despite the high rate of capital accumulation indicated by Singapore's national accounts. This discrepancy is not explained by financial market controls, capital income taxes, risk premium changes, and public investment subsidies. (JEL O11, O16, O47, O53)Citation
Hsieh, Chang-Tai. 2002. "What Explains the Industrial Revolution in East Asia? Evidence From the Factor Markets ." American Economic Review, 92 (3): 502–526. DOI: 10.1257/00028280260136372JEL Classification
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology