Revised TFP growth for Singapore looks much better

From Chang-Tai Hsieh, plucked out of the 2002 AER, via @dtimesd:

This paper presents dual estimates of total factor productivity growth (TFPG) for East Asian countries. While the dual estimates of TFPG for Korea and Hong Kong are similar to the primal estimates, they exceed the primal estimates by 1 percent a year for Taiwan and by more than 2 percent for Singapore. The reason for the large discrepancy for Singapore is because the return to capital has remained constant, despite the high rate of capital accumulation indicated by Singapore’s national accounts. This discrepancy is not explained by financial market controls, capital income taxes, risk premium changes, and public investment subsidies.

The initial context is given here.  Via Dave Backus, here is another relevant paper.

Addendum: Scott Sumner adds comment.


Comments for this post are closed