Sectoral engines of growth in developing Asia: stylised facts and implications

This paper provides an analysis of developing Asia\u27s growth exc erience from the point of view of its structural transformation during the last three 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. Using Kaldor\u27s framework, the paper discusses 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 roleand second, that 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