Sources of Economic Growth in East Asia: A Nonparametric Assessment

IMF Working Papers, January 1, 2002

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Sources of Economic Growth in East Asia: A Nonparametric Assessment

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Bibliographic details

• Authors: Mohsin S. Khan, Shigeru Iwata, Hiroshi Murao
• Published: January 1, 2002
• Series: IMF Working Papers

Summary

• The conventional growth-accounting approach requires unrealistically strong assumptions about:
  • competitiveness of factor markets, and
  • the form of the underlying aggregate production function.
• This paper outlines a new approach utilizing nonparametric derivative estimation techniques that does not require imposing these restrictive assumptions.
• Results for East Asian countries indicate:
  • output elasticities of capital and labor are different from the income shares of these factors, and
  • the growth of total factor productivity over the period 1960-95 has been an important factor in the overall growth performance of these countries.

Methodology

• Approach: nonparametric derivative estimation techniques.
• Contrast: avoids the restrictive assumptions inherent in conventional growth-accounting and aggregate production function approaches.
• Technical elements mentioned:
  • nonparametric derivative estimate
  • nonparametric derivative estimation method
  • nonparametric derivative estimation technique
  • nonparametric estimate
  • nonparametric estimation approach
  • nonparametric estimation method
  • nonparametric regression
  • second-order Taylor approximation

Key Findings

• Output elasticities of capital and labor differ from the income shares of these factors.
• Total factor productivity (TFP) growth from 1960-95 was an important contributor to East Asia’s overall growth performance.

Subject Areas and Keywords

• Subject: Econometric analysis, Estimation techniques, Income, Labor, Labor share, National accounts, Production, Total factor productivity
• Keywords include: aggregate production function approach, East Asia, Estimation techniques, growth accounting estimate, Income, income share, income share estimate, Labor share, nonparametric derivative estimate, nonparametric regression, output elasticity, second-order Taylor approximation, TFP growth, Total factor productivity, WP

Content in this bundle

• Sources of Economic Growth in East Asia: A Nonparametric Assessment - WP/02/13
  • Sources of Economic Growth in East Asia: A Nonparametric Assessment - WP/02/13 (Markdown version)
  • Sources of Economic Growth in East Asia: A Nonparametric Assessment - WP/02/13 (PDF)