Changes in the Sources of Modern Economic Growth: Japan Compared with the United States

Dynamical analysis of the R&D-based growth model with a regime switch

“…Abramovitz and David (1973) show that America's economic growth in the early nineteenth century was more dependent on capital accumulation than on TFP growth. Hayami and Ogasawara (1999) report similar results from Japanese pre-war data. These works reveal that economies in the early stages of development grow as a result of capital accumulation, but they subsequently pursue a growth regime that is driven by R&D. On these perspectives, some empirical works report that newly industrializing countries in Asia grow mainly through capital accumulation (as reported by Krugman (1994) and Young (1995)), but as Matsuyama (1999) discusses, these results are not itself negative for long-run growth.…”

“…By eliminating αη −αk * op α−1 Y −n from (41) and (43), we obtain the result that optimal capital allocation in the steady state in a command economy is the same as that in a market economy given by (12). Furthermore, the growth rate for given R&D-difficulty-adjusted capital stock in a command economy is the same as that in a market economy given by (13).…”

Productivity and Economic Growth in East Asia: Innovation, Efficiency and Accumulation

“…Drawing on Abramovitz (1993) and Hayami and Ogasawara (1999), it may be argued that the accumulation of human-capitalaugmented labour, which can be gauged by the technical efficiency improvements, was not faster than that of physical capital during the period of analysis in Japan. Results for Singapore are presented in Tables 8 and 9.…”

“…Felipe (1999) provides a critical survey of some of the literature. We discuss the following studies: Young (1992Young ( , 1994Young ( and 1995, Kim and Lau (1994), Fischer (1993), Marti (1996), Collins and Bosworth (1997), Singh and Trieu (1999), Hayami and Ogasawara (1999) and Sonobe and Otsuka (2001). The methodology that has been followed by most studies is the growth accounting method (a translog production function under the assumption of constant returns to scale and perfect competition).…”

“…They concluded that TFP growth rate was positive in East Asia, but not extraordinary high compared to that of other regions. Further, factor accumulation was more important to the output growth over period 1965-1990. Using historical data from the United States and Japan combined with the growth accounting method, Hayami and Ogasawara (1999) showed that the contribution of TFP growth was small in the early stages of economic development before the improvement of human capital in later periods. The study by Sonobe and Otsuka (2001) is different from the above studies in the sense that they decompose the overall labour productivity growth into the effect of overall capital accumulation and the effect of overall TFP growth.…”