Date: Mon, 12 Jan 1998 15:54:44 -0800 From: bhandari-AT-phoenix.Princeton.EDU (Rakesh Bhandari) Subject: M-TH: Krugman Recalling Krugman's defense in the New York Times last summer of Indonesia's export industrialization program for its poverty reducing effects (though raising the poverty line a mere 10% would have, I believed, almost tripled the number of those in poverty even before the current crisis), I mistakenly gave the impression that Krugman saw no problems in the Asian growth miracle. Of course a few years back he published in Foreign Affairs a skeptical analysis of the Asian growth miracle, arguing that as growth had been driven, as in the Soviet Union, by capital accumulation rather than pure productivity gains, the marginal productivity of capital would be likely to decline as the capital stock deepened-- that is, as capital per worker in the Asian economies rises to the level of Western economies. Couched as such analysis is in the capital theory of neo-classical economics (what the hell is the marginal productivity of capital?), I don't really get it. Just want to correct any false impression I may have given. Rakesh --- from list marxism-thaxis-AT-lists.village.virginia.edu ---
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