The major determinants of high growth rates in East Asian economies

Abstract

The Major Determinants of High Growth Rates in east Asian Economies Bülent Çetin MA. in Economics Supervisor: Asst. Prof. İzak Atiyas 72 Pages July, 1996 This Thesis investigates major reasons behind the superior growth rates of East Asian Economies after the 1960s. Cross Country evidence supports the following investment led hypothesis : Korea, Taiwan, Malaysia, Thailand, Japan, Singapore, Hong Kong, and Indonesia experienced high economic growth rates mainly because of their good investment performance. In the early 1960s these eight economies shared a set of good initial conditions. All these economies had a well educated labor force with respect to their income levels. Moreover, the degree of equality in income and land distribution was high around 1960. The skilled labor force increased productivity of investment. The equal income and land distribution contributed to the creation of political stability. In turn, political stability and macroeconomic stability positively affected their investment performance.