Asia's economic growth: trends and patterns

Abstract

The spectacular growth of economies in Asia over the past few years has amazed the economics profession and has evoked a torrent of books and articles attempting to explain the phenomenon. Since 1960 Asia, the largest and most populous of the continents has become richer faster than any other region of the world. Asian growth, like that of the Soviet Union in its high-growth era, seems to be driven by extraordinary growth in inputs like labor and capital rather than by gains in efficiency. Of course, this growth has not occurred at the same pace all over the continent. The eastern countries turned in a superior performance, although variations in achievement can be observed here too. This impressive achievement is, however, still modest compared with the phenomenal growth of Developed countries in the west. Strong Total Factor Productivity [TFP] rapid accumulation of physical and Human Capital and trade policy coupled with effective policy intervention played vital role in Asia’s spectacular success. Naturally, sustainable growth performance and elimination of poverty demand greater role of institutional reforms industrial development and macro economic stability