A Neoclassical Analysis of the ASEAN and East Asian Growth Experience

This study examines the growth experience of the ASEAN and East Asian countries from a neoclassical perspective. Using data from 1960–94 for Indonesia, Malaysia, the Philippines, Thailand, Hong Kong, South Korea, Singapore, Taiwan and Japan, the neoclassical proposition of conditional convergence wa...

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Bibliographic Details
Published in:ASEAN economic bulletin 1999-08, Vol.16 (2), p.149-165, Article AE16-2A
Main Authors: Heng, Toh Mun, Siang, Tiew Chee
Format: Article
Language:English
Subjects:
ASEAN
Capital stock
Consumption
Convergence
Economic conditions
Economic development
Economic growth
Economic growth rate
Economic hardship
Economic investment
Endowment
GDP
Gross Domestic Product
Human capital
Industrialized nations
International economics
Investments
Neoclassical economics
Per capita
Per capita income
Population growth
Productivity growth
Savings
Steady state economies
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Summary:This study examines the growth experience of the ASEAN and East Asian countries from a neoclassical perspective. Using data from 1960–94 for Indonesia, Malaysia, the Philippines, Thailand, Hong Kong, South Korea, Singapore, Taiwan and Japan, the neoclassical proposition of conditional convergence was evaluated. The speed of convergence of ASEAN and East Asian countries to their respective steady state levels of per capita GDP, conditional on the initial endowment of the physical and human capital, is estimated at 4.8 per cent per year. This result indicates that, were the poor countries of the ASEAN community to attain levels of physical and human capital investment, rates of savings, productivity growth, and population growth similar to those of the rich countries, per capita incomes in the former would grow significantly faster than those in the latter.
ISSN:0217-4472
2339-5095
2339-5206
DOI:10.1355/AE16-2A