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Impacts of sectoral labour productivity growth of emerging countries in East Asia

Author

Listed:
  • Hidekatsu Asada

    (Saitama University, Japan)

Abstract

This paper aims to examine the impact of sector-specific labour productivity growth on the overall labour productivity growth of emerging countries in East Asia to investigate which effect of labour productivity growth played a decisive role in the overall productivity growth; and what the contributions of sectors to the overall productivity gains were. The shift-share analysis of the labour productivity was applied to the time-series data of the APO Productivity Database 2019 Version 1 and decomposed overall labour productivity growth into the growth of the sectoral labour productivity within the sector and the effects brought by inter-sectoral labour reallocation. The result of the shift-share analysis revealed that the services sector had made a substantial contribution to the overall labour productivity growth of emerging countries in East Asia both in terms of labour productivity growth within the sector and labour reallocation to the services sector. Based on the result of the analysis, this paper includes discussion on possible policy options for boosting labour productivity of these countries to sustain their medium- and long-term economic growth.

Suggested Citation

  • Hidekatsu Asada, 2020. "Impacts of sectoral labour productivity growth of emerging countries in East Asia," Economics Bulletin, AccessEcon, vol. 40(2), pages 906-919.
    • Handle: RePEc:ebl:ecbull:eb-20-00052
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I2-P78.pdf
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    References listed on IDEAS

    as
    1. Stiglitz, Joseph E, 1996. "Some Lessons from the East Asian Miracle," The World Bank Research Observer, World Bank, vol. 11(2), pages 151-177, August.
    2. Lee, Jong-Wha & McKibbin, Warwick J., 2018. "Service sector productivity and economic growth in Asia," Economic Modelling, Elsevier, vol. 74(C), pages 247-263.
    3. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    4. Ghani, Ejaz & Kharas, Homi, 2010. "The Service Revolution," World Bank - Economic Premise, The World Bank, issue 14, pages 1-5, May.
    5. Margit Molnar & Thomas Chalaux, 2015. "Recent trends in productivity in China: shift-share analysis of labour productivity growth and the evolution of the productivity gap," OECD Economics Department Working Papers 1221, OECD Publishing.
    6. Marcel P. Timmer, 2000. "The Dynamics of Asian Manufacturing," Books, Edward Elgar Publishing, number 1927.
    7. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hidekatsu Asada, 2020. "Effects of Foreign Direct Investment and Trade on Labor Productivity Growth in Vietnam," JRFM, MDPI, vol. 13(9), pages 1-11, September.

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    More about this item

    Keywords

    Labour productivity; Labour reallocation; Shift-share analysis; Services sector development; Human capital development;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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