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1、TheRoleofTotalFactorProductivityGrowthinMiddleIncomeCountriesOurstudy,basedoncross-countrypaneldata,during1975–2014showsthattotalfactorproductivity(TFP)growthisthemainfactorexplainingtheincomegrouptransitionofcountries,especiallyformiddle-incomecountries.TheTFPgro
2、wthmodelrevealsthatthecatch-upeffect,humancapital,smallerpopulation,weakcurrency,andresearchanddevelopment(R&D)growtharesignificantsourcesexplainingTFPgrowth.Strengtheninginnovativeactivitiesandbuildinginnovativecapacitiesmatterinovercomingmiddle-incomecountrychal
3、lenges.Governmentsinupper-middle-incomecountriesneedreformtomotivateinnovationbyoptimizingnationalR&Dsystemandredesigningeducationsystemtargetedtowardpromotinginnovation.AbouttheAsianDevelopmentBankADB’svisionisanAsiaandPacificregionfreeofpoverty.Itsmissionistohel
4、pitsdevelopingmemberTheROleOFTOTAlFACTORcountriesreducepovertyandimprovethequalityoflifeoftheirpeople.Despitetheregion’smanysuccesses,itremainshometoalargeshareoftheworld’spoor.ADBiscommittedtoreducingpovertythroughinclusivePRODuCTIvITyGROwThINeconomicgrowth,envir
5、onmentallysustainablegrowth,andregionalintegration.BasedinManila,ADBisownedby67members,including48fromtheregion.Itsmaininstrumentsforhelpingitsdevelopingmembercountriesarepolicydialogue,loans,equityinvestments,guarantees,grants,MIDDleINCOMeCOuNTRIesandtechnicalass
6、istance.JungsukKimandJungsooParkNO.527adbeconomicsnovember2017workingpaperseriesAsiAnDevelopmentBAnk6ADBAvenue,MandaluyongCity1550MetroManila,PhilippinesASIANDEVELOPMENTBANKwww.adb.orgADBEconomicsWorkingPaperSeriesTheRoleofTotalFactorProductivityGrowthinMiddle-Inc
7、omeCountriesJungsukKimandJungsooParkJungsukKim(iias7@sogang.ac.kr)isavisitingprofessorattheGraduateSchoolofInternationalStudies,SogangNo.527
8、November2017University,RepublicofKorea.JungsooPark(jspark@sogang.ac.kr)isaprofessorattheSchoolofEconomics,SogangUniversity,
9、RepublicofKorea.ThispaperhasbeenpreparedasbackgroundmaterialfortheAsianDevelopmentOutlook2017themechapteronTranscendingtheMiddle-IncomeChallenge,underth