Publication Title: Asian Economic Policy Review

Pages: 45-64

Abstract: Trade openness, high savings rates, human capital accumulation, and macroeconomic policy only accounted for part of the 1965-1990 growth performance in East Asia. Subsequently, demographic change was shown to be a missing factor in explaining the East Asian growth premium. Since 1990, East Asia has undertaken major economic reforms in response to financial crises and other factors. We reexamine the role of the demographic transition in contributing to cross-country differences in economic growth through to 2005, with a particular focus on East Asia. We highlight the need for policy to offset potential negative effects of aging populations in the future.