Answer to Question #210624 in Economics for akky

Question

Paul Krugman argued that Asian growth would not be sustainable because:

1. Growth was mainly due to capital accumulation
2. Growth was mainly due to human capital
3. Growth was mainly due to labor productivity growth
4. Growth was mainly due to total factor productivity growth

please answer correctly with the explanation. thank you;

Answer 1

Paul Krugman argues that the rise of the "Asian tigers", like the rise of the USSR, is largely due to extensive factors. And so the growth rate is not going to stay the same for a long time. Krugman's main conclusion is that there is no mysterious "Asian miracle", just as there was no "communist miracle". Everything is quite understandable within the framework of "textbook economics": mobilization of the economy and the transition to an industrial society.

Growth was mainly due to total factor productivity growth