Taiwan's Economy Thrives as Productivity and Skilled Labor Drive Growth
The article examines how the Taiwanese economy grew from 1966 to 1996. They used a method called growth accounting to analyze factors like productivity, labor, and capital. The study found that total factor productivity (TFP) contributed about 32% to economic growth, with TFP and capital stock boosting industry and services but not agriculture. Skilled labor helped all sectors grow, and the industrial sector benefited the most from capital stock growth. This research shows how different factors influenced Taiwan's economic growth over the years.