Testing Endogenous Growth in South Korea and Taiwan

Robert Feenstra, Dorsati Madani, Tzu-Han Yang and Chi-Yuan Liang

No 6028, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We evaluate the endogenous growth hypothesis using sectoral data for South Korea and Taiwan. Our empirical work relies on a direct measure of the variety of products from each sector which can serve as intermediate inputs or as final goods. We test whether changes in the variety of these inputs, for Taiwan relative to Korea, are correlated with the growth in total factor productivity (TFP) in each sector, again measured in Taiwan relative to Korea. We find that changes in relative product variety (entered as either a lag or a lead) have a positive and significant effect on TFP in eight of the sixteen sectors. Seven out of these eight sectors are what we classify as secondary industries, in that they rely on differentiated manufactured inputs, and therefore seem to fit the idea of endogenous growth. Among the primary industries that rely more heavily on natural resources, we find more mixed evidence.

JEL-codes: F14 O47 (search for similar items in EconPapers)
Date: 1997-05
Note: ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published as Journal of Development Economics, Vol. 60, no. 2 (December 1999): 317-341.

Downloads: (external link)
http://www.nber.org/papers/w6028.pdf (application/pdf)

Related works:
Working Paper: TESTING ENDOGENOUS GROWTH IN SOUTH KOREA AND TAIWAN (2003)
Journal Article: Testing endogenous growth in South Korea and Taiwan (1999)
Working Paper: TESTING ENDOGENOUS GROWTH IN SOUTH KOREA AND TAIWAN
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:6028

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6028

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().