Sectoral Engines of Growth in Developing Asia: Stylized Facts and Implications

Publication | November 2007

This paper analyzes the role that the different sectors of the economy have played as engines of growth in developing Asia. Both industry and services have propelled growth in the region.

This paper provides an analysis of developing Asia's growth experience from the point of view of its structural transformation during the last 3 decades. The most salient feature of this transformation has been the significant decrease in the share of agriculture and the parallel increase in the share of services. The analysis uses Kaldor's framework to discuss whether industry plays the role of engine of growth in developing Asia. The empirical results show first, that both industry and services play such a role; and second, there is evidence of endogenous, growth-induced technological progress. Likewise, the technology gap approach supports the view that technological spillovers have fostered growth in developing Asia.

Contents 

  • Abstract
  • Introduction
  • Structural Transformation in Developing Asia
  • Structural Change, Industrialization, and Kaldor's Laws
  • An Examination of Kaldor's Laws
  • Production Structure Similarities, Technology Diffusion, and Catch Up
  • Conclusions
  • References

Additional Details

Authors
Type
Series
Subjects
  • Economics
SKU
  • 010308
ISSN
  • 1655-5252 (Print)

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