Seminar Series: Abstract

2.00pm
September 22 2009
Seminar Room B (Arndt Room)

Endogenous Growth Accounting and the Asian Growth Miracle
Jakob Madsen, Monash University

The growth accounting exercise has played a major role in explaining growth in the Asian miracle economies. Using data for six Asian miracle economies over the period from 1953 to 2006, this paper extends the conventional growth accounting exercise by allowing for endogeneity of capital deepening, demographic transition and changes in hours worked. It is shown that growth has been predominantly driven by TFP growth, which is in turn driven by R&D, knowledge spillovers through the channel of imports, the interaction between distance to the frontier and research intensity, and human capital. The results indicate that R&D has played a leading role for growth in the miracle economies, thereby providing some insight into their growth prospects.