Growth in NICs in Asia: Some tests of new growth theory

New growth theory has revitalised the existing theory of long run growth by focusing on such determinants as investment in human capital, increasing returns to scale and the impact of openness in international trade. This article provides some empirical tests of this new growth theory in terms of the remarkable episodes of growth experienced by the NICs in the Asian Pacific Rim in general and by Korea in particular. The estimates appear to be strongly favourable to the basic premises of the new growth theory.