ICT and Human Capital Spillover Effects in Achieving Sustainable East Asian Knowledge-Based Economies

This study assesses the impact of information and communications technology (ICT) and human capital spillover effects on productivity on selected five countries of Association of Southeast Asian Nations, (ASEAN5), Malaysia, Indonesia, Philippines, Singapore, and Thailand, plus three East Asian Countries (China, Japan, and South Korea). The factors identified as inducing productivity of ASEAN-5 + 3 are the single contributions of physical capital, labor, ICT, human capital, and the instantaneous contribution of the quality of these factors. That is articulated as the total factor productivity (TFP). The study contributes to the knowledge by using three variations of extensive and intensive growth theories (such as output model, labor productivity, and capital productivity). In this respect, the results show that the productivity growth of ASEAN 5 is an input driven; however, China has overtaken the second largest economy position in the world and emerged as productivity-driven nation that attracted multination company investment. Meanwhile, Japan and South Korean model has constructed global companies that help them to join the Organization for Economic Cooperation and Development (OECD).