American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Confucianism and the East Asian Miracle
American Economic Journal: Macroeconomics
vol. 2,
no. 3, July 2010
(pp. 206–34)
Abstract
We examine two behavioral traits essential to Confucianism, and put forward hypotheses as to whether these behavioral traits impede or are conducive to "leading" or "follower" mode growth. A dynamic leader-follower general equilibrium model with appropriately specified "Confucian" parameters is shown to generate results that correspond to some of the main features of East Asian economies: their miracle growths, subsequent slowdowns, trade surpluses, and persistent accumulations of foreign exchange reserves. We calibrate the model to assess the quantitative importance of these cultural effects and examine their implications for future evolution of these economies. (JEL E23, O17, O41, O47, P24, Z12, Z13)Citation
Liang, Ming-Yih. 2010. "Confucianism and the East Asian Miracle." American Economic Journal: Macroeconomics 2 (3): 206–34. DOI: 10.1257/mac.2.3.206Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O41 One, Two, and Multisector Growth Models
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- P24 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure; Money; Inflation
- Z12 Cultural Economics: Religion
- Z13 Economic Sociology; Economic Anthropology; Social and Economic Stratification