IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v25y2006i3p243-255.html
   My bibliography  Save this article

Accumulation, Technical Progress, and Increasing Returns in the Economic Growth of East Asia

Author

Listed:
  • Jungsoo Park
  • Hang Ryu

Abstract

Adopting homothetic variable returns to scale functional specifications, this study identifies the returns to scale in the aggregate production functions of four East Asian newly industrialized economies–Hong Kong, Korea, Singapore, and Taiwan–and the Group of Five economies based on a maximum likelihood estimation. The study finds evidence of increasing returns in the early developmental stage of the East Asian economies. Separating out the scale contribution from the non-scale factor contributions, the decomposition of the sources of East Asian economic growth differs significantly from the conventional constant returns to scale results, indicating that the role of technical progress is overestimated when constant returns to scale is assumed. Copyright Springer Science+Business Media, LLC 2006

Suggested Citation

  • Jungsoo Park & Hang Ryu, 2006. "Accumulation, Technical Progress, and Increasing Returns in the Economic Growth of East Asia," Journal of Productivity Analysis, Springer, vol. 25(3), pages 243-255, June.
    • Handle: RePEc:kap:jproda:v:25:y:2006:i:3:p:243-255
    DOI: 10.1007/s11123-006-7642-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11123-006-7642-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11123-006-7642-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mr. Michael Sarel, 1997. "Growth and Productivity in Asean Countries," IMF Working Papers 1997/097, International Monetary Fund.
    2. Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4, McMaster University Archive for the History of Economic Thought.
    3. Michael J. Boskin & Lawrence J. Lau, 2000. "Generalized Solow-Neutral Technical Progress and Postwar Economic Growth," NBER Working Papers 8023, National Bureau of Economic Research, Inc.
    4. Peter Diamond (ed.), 1990. "Growth / Productivity / Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041103, April.
    5. Shigeru Iwata & Mohsin S. Khan & Hiroshi Murao, 2003. "Sources of Economic Growth in East Asia: A Nonparametric Assessment," IMF Staff Papers, Palgrave Macmillan, vol. 50(2), pages 1-1.
    6. Mr. Abdelhak S Senhadji, 1999. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Working Papers 1999/077, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ryu, Hang Keun, 2011. "Subjective model selection rules versus passive model selection rules," Economic Modelling, Elsevier, vol. 28(1-2), pages 459-472, January.
    2. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.
    3. Elias Sanidas & Hyeri Park, 2011. "Korean Augmented Production Function: The Role Of Services And Other Factors In Korea¡¯S Economic Growth Of Industries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(1), pages 59-85, March.
    4. Hsieh, Wen-jen, 2011. "The Global Economic Recession and Industrial Structure: Evidence from Four Asian Dragons," ADBI Working Papers 315, Asian Development Bank Institute.
    5. Ryu, Hang Keun, 2011. "Subjective model selection rules versus passive model selection rules," Economic Modelling, Elsevier, vol. 28(1), pages 459-472.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Park, Jungsoo, 2012. "Total factor productivity growth for 12 Asian economies: The past and the future," Japan and the World Economy, Elsevier, vol. 24(2), pages 114-127.
    2. Sadia Bader, 2006. "Determining Import Intensity of Exports for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 363-381..
    3. Khan, Safdar Ullah Khan, 2005. "Macro Determinants of Total Factor Productivity in Pakistan," MPRA Paper 8693, University Library of Munich, Germany, revised 10 Sep 2005.
    4. José De Gregorio & Jong-Wha Lee, 1999. "Economic Growth in Latin America: Sources and Prospects," Documentos de Trabajo 66, Centro de Economía Aplicada, Universidad de Chile.
    5. Eteri Kvintradze, 2010. "Russia's Output Collapse and Recovery: Evidence from the Post-Soviet Transition," IMF Working Papers 2010/089, International Monetary Fund.
    6. Matthias Cinyabuguma & Mr. Bernardin Akitoby, 2004. "Sources of Growth in the Democratic Republic of the Congo: A Cointegration Approach," IMF Working Papers 2004/114, International Monetary Fund.
    7. Ahmad, Mahyudin & Marwan, Nur Fakhzan, 2012. "Economic growth and institutions in developing countries: Panel evidence," MPRA Paper 42293, University Library of Munich, Germany.
    8. Ahmad, Mahyudin & Hall, Stephen G., 2012. "Do institutions matter for growth? Evidence from East Asian countries," MPRA Paper 42158, University Library of Munich, Germany.
    9. Safdar Ullah Khan, 2006. "Macro Determeinants of Total Factor Productivity in Pakistan," SBP Working Paper Series 10, State Bank of Pakistan, Research Department.
    10. Mr. Kevin C Cheng, 2003. "Growth and Recovery in Mongolia During Transition," IMF Working Papers 2003/217, International Monetary Fund.
    11. Graham Bird, 2004. "Growth, poverty and the IMF," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 621-636.
    12. Ballot, Gerard, 2002. "Modeling the labor market as an evolving institution: model ARTEMIS," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 51-77, September.
    13. Gordon Cordina, 2004. "Economic Vulnerability And Economic Growth: Some Results From A Neo-Classical Growth Modelling Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(2), pages 21-39, December.
    14. Dmitriy Stolyarov & Boyan Jovanovic, 2000. "Optimal Adoption of Complementary Technologies," American Economic Review, American Economic Association, vol. 90(1), pages 15-29, March.
    15. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    16. Mayumi Ojima & Junnosuke Shino & Kozo Ueda, 2018. "Retailer Market Concentration, Buyer-Size Discounts and Inflation Dynamics," The Japanese Economic Review, Springer, vol. 69(1), pages 101-127, March.
    17. Renaud Crassous & Jean Charles Hourcade & Olivier Sassi, 2006. "Endogenous structural change and climate targets," Post-Print halshs-00009335, HAL.
    18. Jean-Pierre Danthine & John B. Donaldson, 2001. "Macroeconomic Frictions: What Have We Learned from the Real Business Cycle Research Programme?," International Economic Association Series, in: Jacques Drèze (ed.), Advances in Macroeconomic Theory, chapter 4, pages 56-75, Palgrave Macmillan.
    19. Hunt, Jennifer & Garant, Jean-Philippe & Herman, Hannah & Munroe, David J., 2012. "Why Don't Women Patent?," IZA Discussion Papers 6886, Institute of Labor Economics (IZA).
    20. John Rand, 2017. "Comparing estimated and self-reported markups for formal and informal firms in an emerging market context," WIDER Working Paper Series 160, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    East Asia; Economic growth; Homothetic production function; Increasing returns; Returns to scale; Total factor productivity; O47; D24; F43;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:25:y:2006:i:3:p:243-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.