SINGAPORE'S RAPID DEVELOPMENT : RELEVANCE FOR OTHER DEVELOPING NATIONS

Abstract

Development economists have always concern with (1) the sources of long term economic growth and (2) the determinants of rapid rate of economic growth, hoping to prescribe solutions for the current Less Developed Countries, (LDCs} to alleviate their poverty, within a reasonable short time.

In this academic exercise, we review a selection of formal and quantitative growth models. As a case study, we conduct quantitative tests on the implications of the Solow-style growth models and the endogenous growth models, base on Singapore's time series data. The empirical results provide no evidence for slower income growth in Singapore over the past 34 years, and Singapore's rapid income growth can be attributed to her superior export performance. Rapid manufactured export has enhanced resources allocation and accumulation in Singapore, resulting in Singapore's economic expansion.