AN ASSESSMENT OF TOTAL FACTOR PRODUCTIVITY
The high performing East Asian development model sparked controversies in the academia: its success was ascribed alternatively to nation-states, markets, and sociocultural factors. This paper undertakes a comparative assessment of the last two generations of submodels, i.e. ASEAN-4 and China, by qua...
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| Format: | Article |
| Language: | English |
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Romanian National Institute of Statistics
2011-10-01
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| Series: | Revista Română de Statistică |
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| Online Access: | http://www.revistadestatistica.ro/Articole/2011/art4_en_rrs%209_2011.pdf |
| Summary: | The high performing East Asian development model sparked controversies in the academia: its success was ascribed alternatively to nation-states, markets, and sociocultural factors. This paper undertakes a comparative assessment of the last two generations of submodels, i.e. ASEAN-4 and China, by quantifying and interpreting their total factor productivity (TFP) using the Solow Model. Results show that capital accumulation was their major growth driver before the beginning of the millennium. Subsequently growth is led by technical change in ASEAN-32, and capital inputs respectively in late industrialising economies, i.e., China and the Philippines. The main differences between the two submodels consist in levels in growth rates and technical progress contributions, which are strongly sped up in China by transition and integration in global production networks. For ASEAN-4 average null or negligible TFP values in the 1990s point to structural vulnerabilities that surface during the Asian financial crisis. ASEAN-3’s recovery is led by technical change though. |
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| ISSN: | 1018-046X 1844-7694 |