Economic growth in Asia: Determinants and prospects

Jong-Wha Lee, Kiseok Hong

Research output: Contribution to journalArticle

33 Citations (Scopus)

Abstract

Using a growth accounting framework, we find that developing Asia grew rapidly over the past three decades mainly due to robust growth in capital accumulation. The contributions of education and total factor productivity in the region's past economic growth remain relatively limited. We also make long-run growth projections for developing Asia by combining the growth accounting framework with growth regression approach. Our baseline projections based on the model of conditional convergence show that the gross domestic product (GDP) growth rates of the 12 developing Asian economies covered by this paper will be consistently lower for the next two decades than their historical performance. However, policy reforms in education, property rights, and research and development can substantially raise GDP growth in the region and partly offset the slowdown in growth caused by the convergence phenomenon. Even under the baseline scenario, the region's share in the world economy will increase from the current 34 percent in 2009 to close to a half in 2030.

Original languageEnglish
Pages (from-to)101-113
Number of pages13
JournalJapan and the World Economy
Volume24
Issue number2
DOIs
Publication statusPublished - 2012 Mar 1

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economic growth
determinants
gross domestic product
projection
capital accumulation
reform policy
world economy
Asia
Economic growth
right of ownership
research and development
education
productivity
scenario
Gross domestic product
Education
Growth accounting
regression
economy
performance

Keywords

  • Capital accumulation
  • Economic growth
  • Growth accounting
  • Human capital
  • Total factor productivity

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Political Science and International Relations

Cite this

Economic growth in Asia : Determinants and prospects. / Lee, Jong-Wha; Hong, Kiseok.

In: Japan and the World Economy, Vol. 24, No. 2, 01.03.2012, p. 101-113.

Research output: Contribution to journalArticle

Lee, Jong-Wha ; Hong, Kiseok. / Economic growth in Asia : Determinants and prospects. In: Japan and the World Economy. 2012 ; Vol. 24, No. 2. pp. 101-113.
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