What Explains the Industrial Revolution in East Asia? Evidence From the Factor Markets

Hsieh, Chang-Tai

doi:10.1257/00028280260136372

Cited by 243 publications

(230 citation statements)

References 8 publications

(5 reference statements)

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“…3. This decomposition, for example, has been instrumental for the analysis of the information and communication technology (ICT) revolution (Jorgenson & Stiroh, 2000;Oliner & Sichel, 2000), the rapid growth of East Asian economies (Hsieh, 2002;Young, 1995), and the productivity gap between Europe and the United States (van Ark, O'Mahony, & Timmer, 2008 Acemoglu and Dell (2010) and Gennaioli et al (2013), this should not have a major impact on the analysis. 8.…”

Section: Discussionmentioning

confidence: 99%

Regional economic development in Europe: the role of total factor productivity

2017

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Regional economic development in Europe: the role of total factor productivity. Regional Studies. This paper documents the fact that the large and persistent differences in economic development across subnational regions in European Union countries can largely be attributed to differences in total factor productivity (TFP). Applying the technique of development accounting, the paper decomposes differences in output per worker across 257 European Union regions into a component due to the local availability of production factors and a component due to TFP. As the analysis reveals, TFP differences are large even within countries, and are strongly related to economic geography and historical development paths. This suggests limited interregional diffusion of technology and of efficient production practices. L'aménagement du territoire en Europe: le rôle de la productivité globale des facteurs. Regional Studies. Cet article démontre que les importants écarts de développement économique qui persistent à travers les régions infranationales situées dans les pays-membres de l'Union européenne s'expliquent dans une large mesure par les écarts de productivité globales des facteurs (PGF). En appliquant la méthode de la comptabilité de développement (development accounting), on décompose les écarts de rendement par travailleur selon 257 régions de l'Union européenne en une composante relative à la disponibilité locale des facteurs de production et une deuxième composante qui s'explique par la PGF. Comme laisse voir l'analyse, les écarts de PGF s'avèrent importants même au sein des pays, et se rapportent étroitement à la géographie économique et aux sentiers de développement historiques. Cela laisse supposer une diffusion interrégionale limitée de la technologie et des procédés de production efficaces. MOTS-CLÉSaménagement du territoire; productivité globale des facteurs; comptabilité de développement; régions européennes

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Section: Discussionmentioning

confidence: 99%

Regional economic development in Europe: the role of total factor productivity

2017

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“…Young (1995) seems to downplay the role of pure technological progress in the rapid growth of newly industrialized East Asian countries in the Nineties, finding that the "growth miracle" of those years was almost entirely due to increasing labour force participation and improved labour quality. On the other hand, Hsieh (2002), examining the same episodes, finds a larger role for technological progress by considering factor returns instead of quantities in growth accounting. Similar exercises have been performed for the analysis of US exceptional growth rates in the mid-Nineties (Oliner and Sichel 2000, Jorgenson and Stiroh 2000, Whelan 2000, but were mainly targeted to the identification of which part of technological progress played the largest role in enhancing growth.…”

Section: Insert Figure 1 About Herementioning

confidence: 98%

Productivity and per capita GDP growth: The role of the forgotten factors

Marattin

Salotti

2011

Economic Modelling

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Average hourly productivity has often been used to draw conclusions on long run per capita GDP growth, based on the assumption of full utilization of labour resources. In this paper, we argue that a failure to recognize the potentially significant wedges among the two variables -even in the long run -can be misleading. By applying both time series and panel cointegration techniques on data on 19 OECD countries, we fail to reject the hypothesis of absence of a long run common stochastic trend among the two variables in the period 1980-2005. Furthermore, we apply a simple decomposition of GDP growth into five variables, included some related to the supply-side and demographics, so to verify the single contributions to income growth and variance over our period of interest. We conclude that variables that have been so far absent in the growth literature have indeed a non-negligible role in explaining the dynamics of long run per capita GDP growth. In particular, these "forgotten factors" (that we identify with the employment and the activity rates and a demographic ratio) matter more in better performing economies, where we also highlight that productivity has been less important in determining GDP growth than in relatively bad performers.

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“…The limited gap in TFP growth is con…rmed by subsequent studies -e.g. Hsieh (2002) -and suggests that growth in East Asia has been fundamentally driven by the rise in factor inputs. The overwhelming growth observed in output and manufacturing exports thus appears tangled to the pace of capital accumulation, rather than explained by technology spillovers.…”

Section: Total Factor Productivity Growthmentioning

confidence: 99%

“…The …rst, emphasized by Hsieh (2002), is that, during the crucial period 1970-90, the return to capital in Singapore has remained remarkably constant, despite the high rate of capital accumulation indicated by national accounts. We relate this stylized fact to the plausibility of the AK production function assumed in this paper.…”

Section: Calibrated Transitional Dynamicsmentioning

confidence: 99%

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International Status Seeking, Trade, and Growth Leadership

Valente

2007

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may October 26, 2007Abstract This paper formalizes international status seeking in a two-country model of endogenous growth: utility of agents in developing countries is a¤ected by consumption gaps with advanced economies. By distorting intertemporal choices, envy tends to revert growth di¤erentials in favor of the developing country when traded goods are substitutes. Notably, asymmetric preferences with endogenous status desire generate (i) convergence in growth rates in the presence of structural gaps, and (ii) convergence in income levels, if productivity di¤erences are absorbed by technology di¤usion. This process is driven by declining terms of trade and faster capital accumulation of the status seeker. A calibration exercise shows that the model predictions are consistent with the stylized facts that characterized the growth performance of East Asian economies.JEL Codes O33, F12, D91.

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What Explains the Industrial Revolution in East Asia? Evidence From the Factor Markets

Cited by 243 publications

References 8 publications

Regional economic development in Europe: the role of total factor productivity

Regional economic development in Europe: the role of total factor productivity

Productivity and per capita GDP growth: The role of the forgotten factors

International Status Seeking, Trade, and Growth Leadership

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