Growth of Real GDP and Total Factor Productivity in Asia with an Emphasis on Malaysian Growth

Autor:	Mukti P. Upadhyay, Sibabrata Das
Rok vydání:	2019
Předmět:	050208 finance Slowdown 05 social sciences Human capital Real gross domestic product 0502 economics and business Asian country Openness to experience Economics Demographic economics 050207 economics Time series General Economics Econometrics and Finance Total factor productivity Public finance
Zdroj:	Atlantic Economic Journal. 47:391-413
ISSN:	1573-9678 0197-4254
DOI:	10.1007/s11293-019-09642-5
Popis:	This paper estimates growth models for a panel of 15 Asian countries during 40-plus years from the early 1970s to 2014. The focus then shifts to Malaysia for which an annual time-series model is also estimated for the same time period. Both types of models indicate significant influence of human capital either directly on output growth or on growth through total factor productivity. We find that the lower the development level of a country (i.e., a greater income gap), the greater the total factor productivity growth which therefore permits faster income convergence. There is some evidence of interaction between human capital and the income gap as well which leads to an even bigger impact of human capital on total factor productivity growth. The interaction between human capital and openness produces a greater effect on growth in Malaysia based on the time-series model than its effect based on the panel model. Our results suggest that, barring large external shocks, a continued focus on human capital development should help to prevent growth slowdown in Malaysia over the next 15 years.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::1b11c03fec0a9ae1be6669f48b1f38c8 https://doi.org/10.1007/s11293-019-09642-5 Zobrazit plný text záznamu Plný text ve formátu PDF