Trends and dynamics of economic growth: empirical analysis of India and Singapore

Zhang, Yuqian (2024) Trends and dynamics of economic growth: empirical analysis of India and Singapore. Advances in Economics, Management and Political Sciences, 127 (1). 149 - 156. ISSN 2754-1169

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Abstract

This paper investigates the multifaceted dynamics of economic growth in India and Singapore over a span of 50 years, utilizing the Solow and Romer models to decompose growth into its core components: total factor productivity (TFP), capital, and labor. Through a detailed growth accounting methodology, we analyze how these elements contribute distinctly to the GDP trajectories of these two contrasting economies. Our analysis reveals that while both labor expansion and capital accumulation play pivotal roles in short-term growth, it is the enhancement of TFP that emerges as the crucial determinant of sustainable economic progress over the long term. In Singapore, a developed economy characterized by its status as one of the Asian Tigers, TFP and labor productivity have been the primary drivers of its more consistent and long-term growth. Conversely, Indias growth has been more influenced by capital accumulation, particularly following economic liberalizations that spurred foreign investment and industrial diversification. The findings underscore the importance of TFP growth in both developing and mature economies, highlighting its significance in policy formulation aimed at stimulating economic development. This study not only charts a historical analysis of growth patterns but also aligns them with theoretical underpinnings that suggest pathways for future economic strategies in similar emerging and developed markets.

Item Type:	Article
Additional Information:	© 2024 The Author
Divisions:	Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory
JEL classification:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs > C82 - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E23 - Production
Date Deposited:	23 Jan 2025 09:54
Last Modified:	03 Feb 2025 14:12
URI:	http://eprints.lse.ac.uk/id/eprint/127021

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