BUS272 Changing Economies of Asia

Essay topic: What is total factor productivity growth and why is it important?

Do not quote unofficial resources and website for reference.

Use Newspaper, magazines, journals and articles recognise at acemdemic level. Main content: -Definition of total factor productivity -Define and Explain the difference of A vs K & L ( A= total factor productivity, K= capital , L = labour) -Use some ideas found in Paul Krugman article -Illustrate some examples and the rationales and importance of total factor productivity (especially on A) as a force for sustainable growth. (more effort and space needed here) -Explain why K & L fail to drive an economy towards log term sustainable growth -Conclusion reinforcing your argument here by summarising them. -Appendices General Format: -Introduction -section 1 -section 2 and so on -conlcusion -appendices ( charts, graphs,stats) not included in word count.

Do not use the above as headings and sub-headings. Headings and sub- headings should be short and precise. Essential Readings for this essay Dowling, J. M., & Valenzuela, M, R., Economic Development in Asia, (Cengage, 2010). ISBN: 978-981-4272-93-3. Chapter 2. Krugman, P.,'The Myth of the Asian Miracle', Foreign Affairs, Vol. 73, No. 6 (Nov. - Dec., 1994), pp. 62-78. Lecture slides regarding essay is attached. Marking guide is attached.

Definition of 'Neoclassical Growth Theory' An economic theory that outlines how a steady economic growth rate will be accomplished with the proper amounts of the three driving forces: labor, capital and technology. The theory states that by varying the amounts of labor and capital in the production function, an equilibrium state can be accomplished. When a new technology becomes available, the labor and capital need to be adjusted to maintain growth equilibrium. This theory emphasizes that technology change (progression) has a major influence on economic growth, and that technological advances happen by chance. The theory argues that economic growth will not continue unless there continues to be advances in technology.

What light do these approaches throw on the East Asian growth experience?