application: high performing asian economies. per capita growth differences time period 1966-90 high...
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Application: High Performing Asian Economies
Per capita Growth Differences
Time Period 1966-90
High performance Asian economies (HPAE) refers to: Singapore, Hong Kong, Thailand, Indonesia, Taiwan, Malaysia, Korea.
Economic Growth
Average Growth of GNP per Capita, 1965-90
0 1 2 3 4 5 6
HPAEs
South Asia
Middle East and Mediterranean
Sub-Saharan Africa
OECD Economies
Latin America and the Caribbean
GNP per capita growth rate (percent)
OECD refers to Organization of Economic Cooperation and Development. This includes the world’s 24 richest economies.
High performance Asian economies (HPAE) are: Singapore, Hong Kong, Thailand, Indonesia, Taiwan, Malaysia, Korea.
Education in HPAEHong Kong Singapore South Korea Taiwan
1966 1991 1966 1990 1966 1990 1966 1990
None 19.2 5.6 55.1 - 31.1 6.4 17.0 4.5
Primary 53.6 22.9 28.2 33.7 42.2 18.5 57.2 28.0
Secondary 27.2 71.4 15.8 66.3 26.5 75.0 25.8 67.6
Educational Attainment of the Working Population (Percent)
Education is the engine of TFP growth
Primary is till eighth grade and secondary is high school
Source: Alwyn Young, ‘The Tyrrany of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience’, Quarterly Journal of Economics, 1995
Expenditures on Education
0 50 100
Hong Kong
Indonesia
Korea
Malaysia
Singapore
Thailand
Venezuela
Percentage of educationbudget allocated to basiceducation
Percentage of educationbudget allocated to highereducation
Public expenditure oneducation as a percentage ofGDP
The HPAE’s focused on primary education, whereas other focused on higher education. Source: World Bank
Income Inequality Fell
High Investment
Current Account in HPAE
Current Account as % of GDP
-11
-6
-1
4
9
14
Ind
on
esia
Ko
rea
Mal
aysi
a
Sin
gap
ore
Th
aila
nd
1975
1985
1994
Key Message
Education,Openness,
Property RightsProtection
TFP growth
Investment boom,Real GDP growth
and Rise in per-capita Income
Greater wealthis created