NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

TFPG Controversies, Institutions, and Economic Performance in East Asia

Dani Rodrik

NBER Working Paper No. 5914
Issued in February 1997
NBER Program(s):   EFG   ITI

The controversy over the appropriate partitioning of East Asian growth into accumulation versus technical change has overlooked a fundamental indeterminacy in measurement. As a result, we cannot rule out the possibility that East Asia has in fact experienced a tremendous amount of technological progress of the labor-saving kind. Second, an index of institutional quality (drawn from work by Knack and Keefer [1995] and Easterly and Levine [1996]) does exceptionally well in rank-ordering East Asian countries according to their growth performance. A parsimonious specification containing only initial income, initial education, and institutional quality accounts for virtually all of the variation in the growth performance in the region, even when institutional quality is instrumented. Finally, the experience of Hong Kong, which has had a flat investment ratio since the 1960s, is consistent with the idea that making the transition from a low-investment economy to a high-investment economy requires a hands-on government.

download in pdf format
   (1385 K)

email paper

An NBER digest for this paper is available.

A non-technical summary of this paper is available in the NBER Bulletin on Aging and Health. You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (1385 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5914

Published: The Institutional Foundations of East Asian Economic Development, Hayami, Y. and M. Aoki, eds., London: MacMillan, 1998.

Users who downloaded this paper also downloaded these:
Rodrik w6141 What Drives Public Employment?
Page The East Asian Miracle: Four Lessons for Development Policy
Rodrik, Subramanian, and Trebbi w9305 Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development
Fogel w14967 The Impact of the Asian Miracle on the Theory of Economic Growth
Young A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us