Asia Rising: A Sectoral Perspective
IMF Working Papers, June 1, 2007
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- Asia Rising: A Sectoral Perspective
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Bibliographic details
- Authors: Florence Jaumotte, Nikola Spatafora
- Published: June 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451866940.001
Summary
- This paper undertakes a cross-country analysis of productivity growth at both the aggregate and sectoral level.
- It finds that Asia's remarkable output growth over the past 40 years reflected both high investment, and rapid productivity increases.
- These factors were in turn supported by the region's relatively strong institutional and policy environment, which encouraged resource shifts from low- to high-productivity sectors.
- Looking ahead, sustaining rapid growth requires meeting a number of key challenges:
- (i) implementing reforms to boost productivity in the increasingly important, but currently lagging, service sectors;
- (ii) providing policy support for continuing the shift of resources from agriculture to industry and services;
- (iii) strengthening policy frameworks in late-developing countries.
Key findings
- Asia’s output growth over the past 40 years resulted from the combination of:
- high investment; and
- rapid productivity increases.
- A relatively strong institutional and policy environment facilitated resource shifts from low- to high-productivity sectors.
- Sectoral productivity performance varies, with services identified as increasingly important but currently lagging.
Policy recommendations / Challenges
- Implement reforms to boost productivity in service sectors.
- Provide policy support to continue the shift of resources from agriculture to industry and services.
- Strengthen policy frameworks in late-developing countries to sustain rapid growth.