Publication Type
Journal Article
Version
submittedVersion
Publication Date
4-2004
Abstract
This paper critically reexamines the belief, currently gathering strength in the literature, that economic development depends on good luck rather than on good policy, and that Prometheus is unchained by chance. While it is impossible to disprove the role of luck in growth, we argue that luck is endogenous, and good luck is a function of good policy. Luck favours those who strive. Again contrary to common belief, we show that resurgent Asian economies have endured more, not less, than their fair share of economic volatility. They learned their lessons by success and failures, and luck is endogenous through learning-by-investing.
Keywords
Asia, Luck, Growth, Learning-by-investing
Discipline
Asian Studies | Growth and Development
Research Areas
Macroeconomics
Publication
Journal of Policy Modeling
Volume
26
Issue
3
First Page
373
Last Page
385
ISSN
0161-8938
Identifier
10.1016/j.jpolmod.2004.02.003
Publisher
Elsevier
Citation
LEUNG, Hing-Man; TAN, Swee Liang; and YANG, Zhenlin.
What has luck got to do with economic development? An interpretation of resurgent Asia's growth experience. (2004). Journal of Policy Modeling. 26, (3), 373-385.
Available at: https://ink.library.smu.edu.sg/soe_research/153
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jpolmod.2004.02.003