Does East Asia grow differently?

The East Asian region has experienced higher growth in recent decades than any other developing area. Regression results often include a significantly positive East Asian intercept term, indicating the models do not explain all the regional differences. This dissertation intends to examine if certain explanatory variables have the same effect on growth in East Asian countries as elsewhere, and in the process attempt to explain away this region-specific intercept. Regression analysis indicates that variables do not actually impact differently in East Asian regions compared to the general sample. There are however implications such as that government expenditure and having an unhealthy workforce, is more harmful in Latin America, while investment is less effective in Sub-Saharan Africa. These differences place other developing regions at a disadvantage, and helps to explain away some of the regional differences which are left unexplained by traditional growth regressions.UnpublishedAoki, M., Kim, H., Okuno-Fujiwara. M., (1996) The role of government in East Asian economic development, Oxford University Press, Oxford. Alexander, R.J., (1994), The government sector, the export sector and growth, De Economist, 142, 211-220. Alexander, R.J., (1990), Growth: some combined cross-sectional and time-series evidence from OECD countries, Applied Economics, 1197-1204. Amsden, A.H., (1994) Why isn't the whole world experimenting with the East Asian model to develop? : review of the East Asian miracle, World Development, 22, 627-635. Balassa, B., (1978), Exports and economic growth: further evidence, Journal of Development Economics, 5, 181-189. Barro, R.J., (1997) Determinants of economic growth: a cross country empirical study, MIT Press, Cambridge. Barro, R.J., (1991) Economic growth in a cross section of countries, Quarterly Journal of Economics, 106, 407-43. Barro, R.J., Sala-i-Martin, X., (1995) Economic growth, McGraw-Hill, New York. Belsley, D.A., Kuh, E., and Welsch, R.E., (1980) Regression diagnostics: identifying influential data and sources of collinearity, John Wiley, New York. Block, S., (2000) Does Africa grow differently?, Journal of Development Economics, 65, 443-467. Collier, P., Gunning, J.W., (1999) Explaining African economic performance, Journal of Economic Literature, 33, 88-126. Dielman, T.E., (1996) Applied regression analysis for business and economics, Wadsworth Publishing Company, California. Easterly, W., (2000) The joys and sorrows of openness: a review essay, in Oosterbaan, M.S., de Ruyter van Steveninck, T., van de Windt, N., (2000), The determinants of economic growth, Kluwer Academic Publishers, Boston. Easterly, W., Levine, R., (1997) Africa's growth tragedy: policies and ethnic divisions, Quartely Journal of Economics, 112, 1203-1251. Edwards, S., (1993) Openness, trade liberalisation and growth in developing countries, Journal of Economic Literature, 31, 1358-94. Emery, R., (1967), The relation of exports and economic growth, Kyklos, 20,470-486. Fry, M.J., (1997) Foreign direct investment in East Asia, in Leipziger, D.M., (ed) (1997) Lessons from East Asia, University of Michigan Press, Michigan. Garces, A., (2002) Determinants of economic growth: the East Asian "miracle" revisited and further evidence from time series and panel data, PhD Theses, Otago University. Gujarati, D.N., (1995), Basic econometrics 3 rd ed, McGraw-Hill, New York. Ito, T., Krueger, A., (eds), (1995), Growth theories in light of the East Asian experience, University of Chicago Press, Chicago. Kennedy, A., (1992), A guide to econometrics 3rd edition, Blackwell, Oxford. Knowles, S., (2001) Are the Penn World Tables data on government ccnsumption and investment being misused?, Economics Letters, 71, 293-298. Knowles, S., (2001) Inequality and economic growth: The empirical relationship reconsidered in the light of comparable data, University of Otago Discussion Paper No. 0105, University of Otago, Dunedin. Knowles, S., Garces A., (2003) Measuring government intervention and estimation its effects on output: with reference to the high performing Asian economies, Economic Development and Cultural Change (forthcoming). Kwon J., (1994),The East Asian challenge to neoclassical orthodoxy, World Development, 22, 635-645. Leipziger, D.M., (ed) (1997) Lessons from East Asia, University of Michigan Press, Michigan. Lian, B., O'Neal, J.R., (1997) Cultural diversity and economic development: a crossnational study of 98 countries, 1960-1986, Economic Development and Cultural Change, 46, 61-78. Lim, D., (1996) Explaining economic growth: a new analytical framework, Edward Elgar, Cheltenham. Mauro, P., (1995) Corruption and growth, Quarterly Journal of Economics, 110, 681- 712. Mankiw, N.G., Romer, D., Weil, D.N., (1992) A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 107, 407-437 OECD (2001), Learning, economic growth and social inclusion: a correlation analysis,Cities and regions in the new learning economy, OECD. Oosterbaan, M.S., de Ruyter van Steveninck, T., van de Windt, N., (2000), The determinants of economic growth, Kluwer Academic Publishers, Boston. Page, J.M., (1994) The East Asian miracle: an introduction, World Development, 22, 615-627. Perkins D.H., (1994), There are at least three models of East Asian development, World Developmenl, 22, 655-663. Rodrik, D., Rodriguez, F., (2000) Trade policy and economic growth: A sceptics guide to the cross-national evidence, Forthcoming in NBER Macroeconomic Annual, cited in Garces, A., (2002) Determinants of economic growth: The East Asian "miracle" revisited and further evidence from time series and panel data, PhD Theses, Otago University. Sala-i-Martin, X., (1997) I just ran two million regressions, American Economic Review Papers and Proceedings, 87, 178-183. Sengupta, J., (1993) Growth in NICs in Asia: some tests of new growth theory, Journal of Development Studies, 29, 342-58. Serletis, A., (1992), Export growth and Canadian economic development, Journal of Development Economics, 38, 133-145. Syrquin, M., (2000), The joys and sorrows of openness: discussion, in Oosterbaan, M.S., de Ruyter van Steveninck, T., van de Windt, N., (2000), The determinants of economic growth, Kluwer Academic Publishers, Boston. Todaro, M.P., (2000) Economic development 7th edition, Addison Wesley, Masssachusetts Thomas V., Wang, Y., (1997) Government policies and productivity growth: is East Asia an exception? in Leipziger, D.M., (ed) (1997) Lessons from East Asia, University of Michigan Press, Michigan. Yangihara, T. (1994) Anything new in the miracle report? Yes and no, World Development , 22,663-670. Young, A., (1994) Lessons from the East Asian NIC's: A contrarian view, European Economic Review, 36, 964-74 White, K.J., (1993) Shazam user's reference manual version7.0, McGraw-Hill, New York. WOBmann, L., (2002), Cross-country evidence on human capital and the level of economic development: The role of measurement issues in education, Kiel Institute for World Economics, Kiel. Wamann, L., (2001), Specifying Human Capital: A review and some extensions, Kiel Institute for World Economics, Kiel. World Bank, (1993), The East Asian miracle: economic growth and public policy, Oxford University Press, New York. http://www.prsgroup.com Political Risk Services. http://devdata.worldbank.org/hnpstats World Ban