Economic Growth in Asia: Determinants and Prospects

Jong-Wha Lee and Kiseok Hong

No 220, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Using a growth accounting framework, we find that developing Asia grew rapidly over the past 3 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. 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 2 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. By expanding at robust rates, developing Asia will account for close to two thirds of the world economy in 2030, almost doubling the current 34% share of the region in 2009.

Keywords: economic growth; growth accounting; capital accumulation; human capital; total factor productivity (search for similar items in EconPapers)
JEL-codes: O11 O15 O32 O47 O53 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-09
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Citations: View citations in EconPapers (59)

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Journal Article: Economic growth in Asia: Determinants and prospects (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0220

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