Rao, B. Bhaskara and Singh, Rup (2008): A Panel Data Approach to the Contribution of Trade to the Growth of Selected East Asian Countries.
Download (79kB) | Preview
Panel data methods are used to estimate the contribution of openness of trade to the long term or the steady state rate of growth of output (SSGR) of selected East Asia countries viz., Singapore, Malaysia, Thailand, Hong Kong, Korea and the Philippines. Since SSGR is unobservable, its estimates are derived by estimating modified production functions and by imposing the equilibrium conditions of the Solow (1956) growth model. Panel cointegration tests showed that there is a well defined long run relation between output, trade ratio and capital. Growth accounting exercise showed that factor accumulation is the dominant contributor to the SSGR of this region. Openness of trade, however, has made a significant contribution to SSGR by 1999-2003.
|Item Type:||MPRA Paper|
|Original Title:||A Panel Data Approach to the Contribution of Trade to the Growth of Selected East Asian Countries|
|Keywords:||Panel unit root and cointegration tests, Trade Openness, Total Factor Productivity and East Asian Countries|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
N - Economic History > N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations > N15 - Asia including Middle East
|Depositing User:||B. Bhaskara Rao|
|Date Deposited:||21. Sep 2008 12:07|
|Last Modified:||20. Feb 2013 13:42|
Amsden, A. (1989) Asia’s Next Giant: South Korea and Late Industrialization, New York: Oxford University Press.
Bosworth, B. and Collins, S. (2008) Accounting for growth: Comparing China and India, Journal of Economic Perspectives, Vol. 22(1): 45–66.
Breitung, J. (2006) A parametric approach to the estimation of cointegration vectors in panel data, Econometric Reviews, Vol.24(2):151–173.
------------ (2000) The local power of some unit root tests for panel data, in B. Baltagi (ed.), Non stationary panels, panel cointegration and dynamic panels, Advances in Econometrics, Amesterdam: Jai Press, pp. 161-178.
Easterly, W., Levine, R., and Roodman, D. (2004) Aid policies and growth: Comment, American Economic Review, Vol. 94(3): 774-780.
Greiner, A., Semler, W., and Gong, G. (2004) The Forces of Economic Growth: A Time Series Perspective, Princeton, NJ: Princeton University Press.
Hadri, K. (2000) Testing for stationarity in heterogeneous panel data, Econometrics Journal, Vol. 3(2): 148-161.
Hoover, K., and Perez, S. (2004) Truth and Robustness in Cross-country Growth Regressions, Oxford Bulletin of Economics and Statistics, Vol. 66(5): 765-798.
Im, K.S., Pesaran, M.H., Shin, Y. (2003) Testing for unit roots in heterogeneous panels, Journal of Econometrics, Vol. 115(1): 53-74.
Jones, C. (2000) Note on the closed-form solution of the Solow model. Available from the homepage of Jones.
------------ (1995) Time series tests of endogenous growth models, Quarterly Journal of Economics, Vol. 110(2): 495-525.
Levin, A., Lin, C.F., Chu, C. (2002). Unit root test in panel data: Asymptotic and finite sample properties, Journal of Econometrics, Vol. 108(1): 1-24.
Maddala, G., Wu, S. (1999) A comparative study of unit root tests and a new simple test, Oxford Bulletin of Economic and Statistics, Vol. 61(NS1): 631-652.
Mark, N.C. and Sul, D. (2003) Cointegration vector estimation by panel DOLS and long-run money demand, Oxford Bulletin of Economics and Statistics, Vol. 65(5): 655-680.
Murthy, N. (2007) Panel cointegration analysis: An empirical example, in Rao, B. B. (ed.) Cointegration for the Applied Economist”, Basingstoke, Palgrave, 2nd edition, pp. 222-244.
Nelson, R. and Pack, H. (1999) The Asian miracle and modern growth theory, the Economic Journal, Vol.109(457): 416-436.
Parente, S. (2000) The failure of endogenous growth, Knowledge Technology and Policy, Vol. 13(4): 49-58.
Pedroni, P. (2004) Procedure for cointegration tests in heterogeneous panels with multiple regressions, RATS Procedure and Example Files, www.Estima.com.
------------ (2001) Purchasing power parity tests in cointegrated panels, The Review of Economics and Statistics, Vol. 83(4): 727-731.
------------ (2000) Fully modified OLS for heterogeneous cointegrated panels, in Baltagi, B., Kao, C. (eds.), Advances in Econometrics, Nonstationary Panels, Panel Cointegration and Dynamic Panels, New York: Elsevier Science, pp. 93-130.
Rao, B. (2008) Time series econometrics of growth models: A guide for applied economists, forthcoming, Applied Economics.
------------ (2006) Investment ratio and growth, ICFAI Journal of Applied Economics Vol.5(3): 68-72.
Sarel, M. (1995) Growth in East Asia: What we can and what we cannot infer from it, Productivity and Growth, in Andersen, P., Dwyer,J. and Gruen, D. (eds.), Proceedings of the Conference, Sydney: Reserve Bank of Australia, pp. 237-259.
Sato, R. (1963) Fiscal policy in a neo-classical growth model: An analysis of time required for equilibrium adjustment, Review of Economic Studies, Vol. 30(1): 16-23.
Solow, R. (1956) A contribution to the theory of economic growth, Quarterly Journal of Economics, Vol. 70(1): 65-94.
Young, A. (1992) A tale of two cities: Factor accumulation and technical change in Hong Kong and Singapore, NBER Macroeconomics Annual 1992, in Blanchard, O. J. and Fischer, S. (eds.) Cambridge, MA: MIT Press, pp. 13-63.