ABSTRACT
The purpose of this chapter is to develop a new index of productivity for Entire Asia, which is defined as a group of 21 Asian countries, for the period of 1970–2014 and to decompose it to its country origins. The notable improvement made to our measurement is a new development of the purchasing power parities (PPP) for capital and labor inputs for Asian countries. Our estimates show that the PPP for output underestimates the PPP for capital input, indicating the capital prices are higher than the output prices, in most countries and overestimates the PPP for labor inputs, indicating the labor prices are lower than the output prices, in all countries. In developing the growth accounting framework for Entire Asia, output and capital and labor inputs growths by country are aggregated, taking into account the price differentials not only in outputs, but also in capital and labor inputs across countries.
