Can the Rest of East Asia Catch Up with Japan: Some Empirical Evidence

Authors

Zhaoyong ZhangFollow

Document Type

Journal Article

Publisher

Elsevier

Faculty

Faculty of Business and Law

School

School of Accounting, Finance and Business Economics

RAS ID

8156

Comments

Zhang, Z. (2003). Can the rest of East Asia catch up with Japan: some empirical evidence. Japan and the World Economy, 15(1), 91-110.

Abstract

By applying the combined endogenous growth/diffusion model, we find strong and robust evidence of the existence of multiple convergent equilibria across the 10 East Asian economies in 1960–1997. The main conclusion is that, with the assumption of the same source of technology diffusion for all economies, East Asia will have in the long run the same growth rate as that of the leader (Japan), but with two mutually exclusive convergence clubs. This has important implications for an economy when forming its development policy to catch up on its target leaders.

DOI

10.1016/S0922-1425(01)00078-0