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The Tyranny of Numbers or the Tyranny of Methodology: Explaining the East Asian Growth Experience

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  • James Riedel

    (Johns Hopkins University-SAIS
    China Economics and Management Academy, CUFE)

Abstract

This paper applies the theory and insights of Maurice Scott¡¯s New View of Economic Growth (1989) to challenge the analysis and conclusions of Alwyn Young¡¯s widely acclaimed paper, ¡±The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience¡± (1995), which purports to show that growth in the East Asian NICs was mainly due to factor accumulation, with little technical change or total factor productivity growth. It is argued that Young¡¯s empirical findings result from the inappropriate, albeit widely adopted, practice of subtracting depreciation from gross investment in measuring the contribution of investment to growth.

Suggested Citation

  • James Riedel, 2007. "The Tyranny of Numbers or the Tyranny of Methodology: Explaining the East Asian Growth Experience," Annals of Economics and Finance, Society for AEF, vol. 8(2), pages 385-396, November.
    • Handle: RePEc:cuf:journl:y:2007:v:8:i:1:p:385-396
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    References listed on IDEAS

    as
    1. Dan Usher, 1973. "The Measurement of Economic Growth," Working Paper 145, Economics Department, Queen's University.
    2. Scott, Maurice, 1992. "A New Theory of Endogenous Economic Growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 8(4), pages 29-42, Winter.
    3. Simon Kuznets & Elizabeth Jenks, 1961. "Appendices and Index, "Capital in the American Economy: Its Formation and Financing"," NBER Chapters, in: Capital in the American Economy: Its Formation and Financing, pages 465-664, National Bureau of Economic Research, Inc.
    4. Simon Kuznets & Elizabeth Jenks, 1961. "Summary of Findings," NBER Chapters, in: Capital in the American Economy: Its Formation and Financing, pages 389-428, National Bureau of Economic Research, Inc.
    5. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague, December.
    6. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 641-680.
    7. Simon Kuznets & Elizabeth Jenks, 1961. "Introduction to "Capital in the American Economy: Its Formation and Financing"," NBER Chapters, in: Capital in the American Economy: Its Formation and Financing, pages 3-14, National Bureau of Economic Research, Inc.
    8. Alwyn Young, 2003. "Gold into Base Metals: Productivity Growth in the People's Republic of China during the Reform Period," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1220-1261, December.
    9. Nicholas Kaldor, 1961. "Capital Accumulation and Economic Growth," International Economic Association Series, in: D. C. Hague (ed.), The Theory of Capital, chapter 0, pages 177-222, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.

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    More about this item

    Keywords

    Tyranny of Numbers; Tyranny of Methodology; East Asian Growth;
    All these keywords.

    JEL classification:

    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

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