UNDERSTANDING EAST ASIA’S SUCCESS
Superior Accumulation account for growth in the HPAEs:
Private domestic investment: high levels of domestic savings sustained high investment levels.
Rapidly growing human capital.
Agriculture although declined in relative importance, but experienced rapid growth.
Manufactured exports grew rapidly by absorption of foreign technology
Population growth declined more rapidly in HPAEs than other DCs, leads to growth in per capita consumption, larger surplus for reinvestment
Better at allocating resources to high-return activities.
High productivity growth; change in total factor productivity.