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This paper applies the theory and insights of Maurice Scott’s New View of
Economic Growth (1989) to challenge the analysis and conclusions of Alwyn
Young’s widely acclaimed paper, ”The Tyranny of Numbers: Confronting the
Statistical Realities of the East Asian Growth Experience” (1995), which purports
to show that growth in the East Asian NICs was mainly due to factor accumulation, with little technical change or total factor productivity growth.
It is argued that Young’s empirical findings result from the inappropriate, albeit
widely adopted, practice of subtracting depreciation from gross investment
in measuring the contribution of investment to growth.
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