Industrial Development In East Asia: A Comparative Look at Japan, Korea, Taiwan and Singapore (Economic Development & Growth) (Economic Development and Growth)

CONTENTS......Page 10
Preface......Page 6
Acronyms......Page 14
1.1. Economic Development in East Asia......Page 16
1.2. The Role of Government in East Asia......Page 18
1.3. Objectives and Methodology......Page 21
1.4. Organization of the Book......Page 23
2.1. Industrial Policy: Definition and Theoretical Underpinnings......Page 24
2.3. Instruments of Industrial Policy......Page 28
2.3.1. Competition policy......Page 29
2.3.2. Trade policy......Page 31
2.3.3. Tax and financial sector policies......Page 32
2.3.4. Labor market policies......Page 34
2.3.5. Technology policies......Page 35
2.3.6. Foreign investment policies......Page 37
2.4. Summary and Conclusion......Page 39
3.1. Singapore Economy at a Glance......Page 42
3.2.1. Industrial policies before 1985......Page 48
3.2.2. Industrial policies after the recession......Page 62
3.3. Characteristics of Industrial Policies in Singapore......Page 67
3.3.1. Labor market policy......Page 68
3.3.3. Technology policy......Page 70
3.3.5. Foreign investment policy......Page 71
3.3.6. Regionalization......Page 72
3.3.7. Competition policy and promotion of local firms......Page 77
3.4. Productivity-Specific Features of Industrial Policies in Singapore......Page 82
3.4.1. Improving the quality of the labor-force......Page 83
3.4.2. Productivity improvement through MNC – local firm interaction......Page 84
3.4.3. Indigenous technology development......Page 86
4.1. Initial Conditions......Page 90
4.2. Characteristics of Governments......Page 94
4.3. Trade Policies......Page 97
4.4. Industrialization Paths......Page 99
4.5. Fiscal Incentives and Policy-Based Finance......Page 103
4.6. Foreign Elements......Page 106
4.7. Business Structures......Page 108
4.8. The Influence of International Political Economy......Page 111
5. Labor Productivity and Labor Reallocation: The Singapore Case......Page 114
5.1.1.1. Real value-added......Page 116
5.1.1.3. Working hours......Page 120
5.1.1.4. Labor compensation......Page 122
5.1.1.5. Periodization......Page 123
5.1.2. Trends in labor productivity and real wages......Page 124
5.2. The Impact of the Intersectoral Reallocation of Labor on Labor Productivity: Methodology......Page 135
5.3. Empirical Findings......Page 140
5.4. Labor Productivity and Labor Market Policies: A Policy Discussion......Page 146
6.1. Measurement of Total Factor Productivity Growth......Page 150
6.1.1. Translog index of labor......Page 152
6.1.2. Translog index of capital......Page 155
6.1.3. Translog index of productivity growth......Page 157
6.1.4. Description of data......Page 161
6.2.1. Previous studies on total factor productivity growth and its sources......Page 166
6.2.2. TFP growth estimates: Empirical findings......Page 171
6.2.3. Sensitivity analysis for TFP growth estimates......Page 175
6.3. The Impact of Resource Allocation on TFP Growth: Methodology......Page 177
6.4. The Impact of Resource Allocation on TFP Growth: Empirical Findings......Page 181
6.5. TFP Growth: A Policy Discussion......Page 187
7. Productivity Growth and Resource Allocation: An International Comparison of Singapore with East Asia......Page 192
7.1. Sources of Data and Periodization......Page 193
7.3. The Impact of Structural Change on Labor Productivity......Page 199
7.4. The Impact of Structural Changes on TFP Growth......Page 207
8. A CGE Model for the Singapore Economy......Page 214
8.1. An Overview of CGE Modeling......Page 215
8.2. Previous General Equilibrium Models of Singapore......Page 216
8.3. The Structure of the CGE Model of Singapore......Page 218
8.3.1. Production and factors block......Page 223
8.3.2. Imports and exports......Page 224
8.3.3. Prices block......Page 226
8.3.4. Demand block......Page 227
8.3.5. Savings–investment block......Page 231
8.3.6. Market clearing conditions and normalization......Page 232
8.4. Calibration of Model Parameters......Page 234
8.6. 1995 Social Accounting Matrix for Singapore......Page 236
8.6.1. Macro-SAM......Page 238
8.6.2. Micro-SAM......Page 246
9.1. The Structure of the Singapore Economy in 1995......Page 248
9.2. Base-Run......Page 250
9.3.1. Simulation 1: 10 percent increase in the world price of electrical and electronic machinery and equipment......Page 254
9.3.2. Simulation 2: 2 percent TFP growth......Page 256
9.3.3. Simulation 3: Impacts of restricting factor mobility......Page 266
9.3.4. Summary of results......Page 272
9.4.1. Japan......Page 274
9.4.2. Korea......Page 280
9.5. A Summary of the Results from the CGE Analyses of Industrial Policies in East Asia......Page 284
10. Conclusion......Page 286
Bibliography......Page 292
Appendix: Translog Indices by Industry......Page 312
Index......Page 342