Are Dragons and Tigers Catching Up?
The Asian “Dragon” economies have grown at a rate fast approaching the United States, while the Asian “Tiger” economies have shown less success.
We study the catching-up process in per capita income of the so-called Asian Dragons and Tigers. First, we test the catching-up hypothesis using the longest time span ever considered, from 1870 to 2014. Second, we document the experiences of these two groups of economies and provide potential explanations for them. Third, by using the Kejriwal and Perron (2010) algorithm, we endogenously estimate multiple structural breaks in the level and the trend of the series without prior knowledge of their integration level. Fourth, we examine how the Asian financial crisis affected the catching-up process among the Dragon and Tiger economies.