Abstract

The spectacular growth of many economies in East Asia over the past 30years has impressed the economics profession, which often refers to thesuccess of the so-called Four Tigers of the region (Hong Kong, Korea, Singapore, and Taiwan Province of China) as "miraculous." This papercritically reviews the reasons alleged for this extraordinary growth.It weighs arguments in the debate over factor accumulation versustechnical progress, the role of public policy, the contribution ofinvestments and exports, and the influence of initial conditions onsubsequent growth.

References

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  • Solow, Robert M., “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, No. 70 (1956), pp. 6594.

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    • Export Citation
  • Young, Alwyn, “Lessons From the East Asian NICs: A Contrarian View,” European Economic Review, No. 38 (April, 1994a), pp. 96473.

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Michael Sarel is an economist in Southeast Asia and Pacific Department of the International Monetary Fund. He graduated from the Hebrew University of Jerusalem and received a Ph.D from Harvard University.

What We Can and What We Cannot infer
  • Carroll, Christopher D., and David N. Weil, “Saving and Growth: A Reinterpretation,” Carnegie-Rochester Conference Series on Public Policy, Vol. 40 (1994), pp. 13392.

    • Search Google Scholar
    • Export Citation
  • De Long, J. Bradford, and Lawrence H. Summers, “Equipment Investment and Economic Growth,” Quarterly Journal of Economics, No. 106 (May 1991), pp. 445502.

    • Search Google Scholar
    • Export Citation
  • Kim, Jong-Il, and Lawrence J. Lau, “The Sources of Economic Growth of the East Asian Newly Industrialized Countries,” Journal of the Japanese and International Economies, Vol. 8 (1994), pp. 23571.

    • Search Google Scholar
    • Export Citation
  • Krugman, Paul, “The Myth of Asia’s Miracle,” Foreign Affairs, Vol. 73 (November–December, 1994), pp. 6278.

  • Lucas, Robert E., Jr., “On the Mechanics of Economic Development,” Journal of Monetary Economics, No. 22 (July, 1988), pp. 342.

  • Rodrik, Dani, “King Kong Meets Godzilla: The World Bank and the East Asian Miracle,” Chapter 1 in Miracle or Design? Lessons From the East Experience, ed. by Albert Fishlow and others (Washington: Overseas Development Council, 1994).

    • Search Google Scholar
    • Export Citation
  • Solow, Robert M., “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, No. 70 (1956), pp. 6594.

  • World Bank, The East Asian Miracle: Economic Growth and Public Policy, Summary (New York: Oxford University Press, 1993).

  • Young, Alwyn, “Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore,” NBER Economics Annual, (1992) pp. 1354.

    • Search Google Scholar
    • Export Citation
  • Young, Alwyn, “Lessons From the East Asian NICs: A Contrarian View,” European Economic Review, No. 38 (April, 1994a), pp. 96473.

  • Young, Alwyn, “Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience,” NBER Working Paper, No. 4680 (March, 1994b).

    • Search Google Scholar
    • Export Citation