Ask Question, Ask an Expert


Ask Business Economics Expert

Calculation of total factor productivity growth and elasticity.


In a paper called the 'The Tyranny of Numbers', Alwyn Young find outd input growth and 'elasticities (the elasticity of output with respect to each input) for the four fastest growing Asian economies (the East Asian Tigers). Each growth rate is an average annual growth rate. The elasticities are the elasticity of output with respect to capital, i.e. the percentage change in output with respect to a 1% change in capital (column 4), and the elasticity of output with respect to labor, i.e. the percentage change in output with respect to a 1% change in labor (last column).

Country Output Growth Capital Growth Capital Elasticity Labor Growth Labor Elasticity
Hong Kong 7.30% 8.00% 0.372 3.20% 0.628
Singapore 8.70% 11.50% 0.491 5.70% 0.509
South Korea 10.30% 13.70% 0.297 6.40% 0.703
Taiwan 9.40% 12.30% 0.257 4.90% 0.743

a.Compute total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.

b.Compare output growth and total factor productivity growth for each country, with special attention to Singapore. Does Singapore look different than the other countries?

c. Now look at Singapore's capital elasticity compared to the other three countries. Do you think that Singapore's production is more or less 'capital intensive than the other countries? (That is, does production in Singapore tend to use a higher or lower share of capital compared to the other countries.)

d. All three countries had very high output growth, but after examining the components of growth, how would you describe Singapore's rapid growth compared to the growth in Hong Kong, South Korea and Taiwan over this period?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921182

Have any Question? 

Related Questions in Business Economics

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

1what is the production possibilities curve and how is it

1. What is the production possibilities curve and how is it useful? 2. What 4 factors contribute to determining any point in this model? 3. How would we apply this framework to the real world? 4. You are planning to expa ...

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro