Description: Productivity or Endowments? Sectoral Evidence for Hong Kong's Aggregate Growth

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Productivity or Endowments? Sectoral Evidence for Hong Kong's Aggregate Growth

The author provides sectoral evidence that sheds new light on the current debate regarding the sources of growth of the East Asian miracle. The author tests both the productivity-driven and endowment-driven hypotheses using Hong Kong's sectora...

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Bibliographic Details
Main Author:	Hiau Looi Kee
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING AGGREGATE LEVEL AGRICULTURE AVERAGE ANNUAL GROWTH AVERAGE PRODUCTIVITY BASE YEAR BOOK VALUE CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL INPUT CAPITAL INVESTMENT CAPITAL STOCK COAL CONDITIONS CONSTANT RETURNS CONSTANT RETURNS TO SCALE DIMINISHING RETURNS ECONOMISTS ELASTICITIES ELASTICITY EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EQUATIONS EQUILIBRIUM EXPORT GROWTH FACTOR ACCUMULATION FACTOR RETURNS FACTOR SUPPLIES FISHING FREE TRADE GDP GDP DEFLATOR GROSS OUTPUT GROWTH ACCOUNTING GROWTH LITERATURE GROWTH RATE GROWTH RATES GROWTH THEORY IMPORTS INDUSTRIAL PRODUCTION INPUT PRICES INSURANCE INTEREST RATES INTERMEDIATE INPUT INTERNATIONAL TRADE INVENTORY LABOR FORCE LEVEL OF CAPITAL MAXIMUM LIKELIHOOD ESTIMATION OPEN ECONOMIES PERFECT COMPETITION POLICY MAKERS PRICE ELASTICITIES PRICE ELASTICITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH RANDOM WALK RATE OF RETURN SECTORAL GROWTH RATES SERVICES SECTOR SHARE OF OUTPUT SIC TECHNOLOGICAL PROGRESS TERMS OF TRADE TFP TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRANSPORT VALUE ADDED EAST ASIA EMERGING ECONOMIES ENDOWMENTS SERVICE INDUSTRIES MANUFACTURING SECTOR LABOR INTENSIVE INDUSTRIES REALLOCATION ALLOCATION OF RESOURCES AGGREGATES ROBUST STATISTICS ENDOGENOUS VARIABLES REGRESSION ANALYSIS ELASTICITY (ECONOMIC)
Online Access:	http://documents.worldbank.org/curated/en/2002/09/2028948/productivity-endowments-sectoral-evidence-hong-kongs-aggregate-growth http://hdl.handle.net/10986/19285

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Summary:	The author provides sectoral evidence that sheds new light on the current debate regarding the sources of growth of the East Asian miracle. The author tests both the productivity-driven and endowment-driven hypotheses using Hong Kong's sectoral data. The results show that most of the growth in the services sector is driven by the rapidly accumulating capital endowments, and not by productivity growth. In addition, productivity growth in the manufacturing sector is also unimpressive. The manufacturing sector is more labor intensive and its growth is hindered by the reallocation of resources into the services sector as a result of the growth of capital endowments and imports. Overall, sectoral evidence supports the endowment-driven hypothesis for Hong Kong's aggregate growth.