## Sources of Economic Growth in East Asia: A Nonparametric Assessment

_IMF Working Papers, January 1, 2002_

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## Bibliographic details
- Authors: Mohsin S. Khan, Shigeru Iwata, Hiroshi Murao
- Published: January 1, 2002
- Series: IMF Working Papers

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### 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

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/sources-of-economic-growth-in-east-asia-a-nonparametric-assessment-15585_