کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5087290 | 1478256 | 2015 | 16 صفحه PDF | دانلود رایگان |

- Countries that grow faster do so based on capital accumulation in the long-run.
- Factor accumulation plays a fundamental role in explaining the extraordinary postwar growth of the NICs of East Asia.
- Long-run effects of capital accumulation are more significant than the corresponding short-term effects, in explaining output-per-worker growth.
- Static OLS estimates consistently underestimate the effect of capital accumulation on output growth compared to dynamic ECM estimations.
This paper studies the relationship between trade openness and output growth for a sample of twenty-three Asian countries using both a static OLS and a dynamic ECM estimation models. At the country specific level, the findings of this study provide robust empirical evidence indicating that higher revealed trade openness is not the main engine explaining the Asian economic-growth miracle. In particular, the authors find that physical capital accumulation is at the core of the observed long-run output per worker growth. At the regional level, the authors observe a marked difference between the pre and post 1997-1998 financial crisis, whereas, in the post period, trade openness has a positive and significant effect on output growth. In general, the results from the dynamic estimations prove that the conventional OLS static estimates underestimate the effect of investment on output growth. In addition, the dynamic model allows for a separation of gains from trade between short term and long term. The paper results also provide evidence in support of the idea that, countries with a growing degree of trade openness may experience faster per-capita output growth through gains in productivity associated to capital accumulation, rather than the assumed technological spillover effects from the trading sector. Again, at the regional level in the post financial crisis period both short term and long term gains from trade are relevant to growth. Why more trade does not necessarily imply faster growth at all levels of revealed trade openness growth, remains a conundrum.
Journal: Journal of Asian Economics - Volume 36, February 2015, Pages 110-125