Does East Asia grow differently?

Abstract

The East Asian region has experienced higher growth in recent decades than any other developing area. Regression results often include a significantly positive East Asian intercept term, indicating the models do not explain all the regional differences. This dissertation intends to examine if certain explanatory variables have the same effect on growth in East Asian countries as elsewhere, and in the process attempt to explain away this region-specific intercept. Regression analysis indicates that variables do not actually impact differently in East Asian regions compared to the general sample. There are however implications such as that government expenditure and having an unhealthy workforce, is more harmful in Latin America, while investment is less effective in Sub-Saharan Africa. These differences place other developing regions at a disadvantage, and helps to explain away some of the regional differences which are left unexplained by traditional growth regressions.