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Growth and Development

Singapore Management University

Research Collection School Of Economics

2003

Articles 1 - 6 of 6

Full-Text Articles in Social and Behavioral Sciences

What Has Luck Got To Do With Economic Development? An Interpretation Of Resurgent Asia's Growth Experience, Hing-Man Leung, Swee Liang Tan, Zhenlin Yang Jul 2003

What Has Luck Got To Do With Economic Development? An Interpretation Of Resurgent Asia's Growth Experience, Hing-Man Leung, Swee Liang Tan, Zhenlin Yang

Research Collection School Of Economics

This paper critically reexamines the belief, currently gathering strength in the literature, that economic development depends on good luck rather than on good policy, and that Prometheus is “unchained by chance”. While it is impossible to disprove the role of luck in growth, we argue that luck is endogenous, and good luck is a function of good policy. Luck favours those who strive. Again contrary to common belief, we show that resurgent Asian economies have endured more, not less, than their fair share of economic volatility. They learned their lessons by success and failures, and luck is endogenous through learning-by-investing.

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Catch-Up Growth Based On International Talent Mobility In An Idea-Based World, Yu Quan, Hian Teck Hoon May 2003

Catch-Up Growth Based On International Talent Mobility In An Idea-Based World, Yu Quan, Hian Teck Hoon

Research Collection School Of Economics

We show how catch-up growth can result when immigrant ties of talented people to their home countries facilitate technology diffusion from world technological leaders to developing countries. The aspect of immigrant link we focus on is knowledge spillover through various programs of international exchange to draw upon the expertise of the individuals who have migrated—a type of externality effect on the home country. In our model, we distinguish between public technology and private technology, both of which differ across countries. The size of the talent pool in each country determines the number of skilled workers and indigenous technology levels. The …

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Market Structure And Performance: An Anti-Trust Story Of Endogenous Growth, Hing-Man Leung Mar 2003

Market Structure And Performance: An Anti-Trust Story Of Endogenous Growth, Hing-Man Leung

Research Collection School Of Economics

Since Schumpeter, a major concern has been: what monopoly does to growth? Monopoly’s static, allocative inefficiency is well established. How much this is offset by its dynamic progressiveness is unclear. First, using the empirical literature, we argue that the presumed progressiveness of monopoly must be rejected. Second, we extend the endogenous growth model to obtain a full Pareto ranking of competition, monopoly, Cournot and Bertrand. Competition beats Cournot, which in turn beats monopoly. Growth rate is invariant with structures, which accords well with empirical evidence. Bertrand happens to share the ranking with competition. The findings have a strong anti-trust overtone.

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Strategic Development Of Airport And Rail Infrastructure: The Case Of Singapore, Sock-Yong Phang Jan 2003

Strategic Development Of Airport And Rail Infrastructure: The Case Of Singapore, Sock-Yong Phang

Research Collection School Of Economics

This article recounts how a number of strategic infrastructure investment decisions in airport and rail development taken by the Singapore government were at variance with recommendations emerging from cost-benefit analysis, but were considered necessary to support external competitiveness. This link between infrastructure provision and economic development may require decision makers to assess the trade-off between prudent macro-economic planning and efficient micro-economic management for major projects. In the case of airport hubs, the most difficult assessment might be the game consideration of how much, and how far ahead, excess capacity is needed to ensure the dominance of the hub.

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Education, Technological Progress And Economic Growth, Winston T. H. Koh, Hing-Man Leung Jan 2003

Education, Technological Progress And Economic Growth, Winston T. H. Koh, Hing-Man Leung

Research Collection School Of Economics

An important role of education – and the resultant accumulation of human capital – for a less-developed economy is to facilitate technology diffusion in order for it to catch up with developed economies. This paper presents a model linking education, the accumulation of physical capital and technological progress. In the model, investment in education and the accumulation of physical capital are complementary, and intertwine with the technology progress through related effects on technology diffusion and the expansion of the technology frontier. The allocation of effort to education, the optimal savings rate and the technology gap are endogenously determined in the …

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The Elasticity Of Substitution And Endogenous Growth, Hing-Man Leung Jan 2003

The Elasticity Of Substitution And Endogenous Growth, Hing-Man Leung

Research Collection School Of Economics

The endogenous growth literature focuses exclusively on Cobb-Douglas. Elasticities other than unity are ignored. A recent paper by Klump and Grandville (2000) examined other elasticities but assumed an exogenous saving rate. By contrast, this paper studies elasticity and endogenous growth. Endogeneity is important since elasticity preserves capital’s productivity and encourages saving. Two models are presented. The first assumes exogenous technological change. We find elasticity to have a positive level effect on income. No rate of growth effect is found. The second model allows learning by doing from capital accumulation. In addition to the level effect, rate of growth effects are …

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