Hiau Looi Kee2014-08-112014-08-112002-09https://hdl.handle.net/10986/19285The author provides sectoral evidence that sheds new light on the current debate regarding the sources of growth of the East Asian miracle. The author tests both the productivity-driven and endowment-driven hypotheses using Hong Kong's sectoral data. The results show that most of the growth in the services sector is driven by the rapidly accumulating capital endowments, and not by productivity growth. In addition, productivity growth in the manufacturing sector is also unimpressive. The manufacturing sector is more labor intensive and its growth is hindered by the reallocation of resources into the services sector as a result of the growth of capital endowments and imports. Overall, sectoral evidence supports the endowment-driven hypothesis for Hong Kong's aggregate growth.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE LEVELAGRICULTUREAVERAGE ANNUAL GROWTHAVERAGE PRODUCTIVITYBASE YEARBOOK VALUECAPITAL ACCUMULATIONCAPITAL FORMATIONCAPITAL INPUTCAPITAL INVESTMENTCAPITAL STOCKCOALCONDITIONSCONSTANT RETURNSCONSTANT RETURNS TO SCALEDIMINISHING RETURNSECONOMISTSELASTICITIESELASTICITYEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEQUATIONSEQUILIBRIUMEXPORT GROWTHFACTOR ACCUMULATIONFACTOR RETURNSFACTOR SUPPLIESFISHINGFREE TRADEGDPGDP DEFLATORGROSS OUTPUTGROWTH ACCOUNTINGGROWTH LITERATUREGROWTH RATEGROWTH RATESGROWTH THEORYIMPORTSINDUSTRIAL PRODUCTIONINPUT PRICESINSURANCEINTEREST RATESINTERMEDIATE INPUTINTERNATIONAL TRADEINVENTORYLABOR FORCELEVEL OF CAPITALMAXIMUM LIKELIHOOD ESTIMATIONOPEN ECONOMIESPERFECT COMPETITIONPOLICY MAKERSPRICE ELASTICITIESPRICE ELASTICITYPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION TECHNOLOGYPRODUCTIVITYPRODUCTIVITY GROWTHRANDOM WALKRATE OF RETURNSECTORAL GROWTH RATESSERVICES SECTORSHARE OF OUTPUTSICTECHNOLOGICAL PROGRESSTERMS OF TRADETFPTOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTRANSPORTVALUE ADDED EAST ASIAEMERGING ECONOMIESPRODUCTIVITYPRODUCTIVITY GROWTHENDOWMENTSSERVICE INDUSTRIESMANUFACTURING SECTORLABOR INTENSIVE INDUSTRIESREALLOCATIONALLOCATION OF RESOURCESAGGREGATESROBUST STATISTICSENDOGENOUS VARIABLESREGRESSION ANALYSISELASTICITY (ECONOMIC)10.1596/1813-9450-2892