1. Lecture 13: Technical progress and Growth Advanced Macroeconomics M.Sc. Programme in Environmental and Natural Resource Economics 1/2007 13 July 2007

2. outline Growth accounting method Finding technical progress in growth Accounting for technical progress “New” growth factors Thailand’s experience

3. Growth accounting method The growth accounting equation From the APO Study Try deriving Eq.2 from Eq.1, differentiation exercise.

5. Finding technical progress in growth The residual in the growth accounting equation From above, TFPG is the Residual! See what it looks like? Back to the APO paper..

6. And later..

7. Accounting for technical progress What can explain TFPG? Accounting methods do not account for quality changes, eg. Labour is skilled or unskilled, highly- educated and not much educated Capital stock valuation-embodied/disembodied progress Learning by doing Anything else? E.g. X-efficiency,

8. “New” growth factors These are “new” growth factors Many studies point to these factors Eg. Knowledge economy Innovation Openness of economy Governance of country/corruption and growth Etc.

10. Korea in the Global Context

13. Thailand’s Growth experience Bosworth’s paper is a good summary..