Taiwan, one of the 4 original East-Asian Tigers, has been one of the most successful economies in the world over the last 50 years. Let's analyze the sources of this success.

Consider the following data:

Year GDP Per Capita Population Capital Labor Education

1960 2,397.01 10.668 25,964.18 3.24 3.71

2014 41,522.88 23.434 3,412,746 11.17 11.09

a. GDP per Worker Growth Compute the (average continuously compounded) growth rate of GDP per worker.

b. Growth Accounting Use our growth accounting methodology to allocate growth in output per worker to TFP, capital per worker, and human capital. What factors are most important?

c. GDP per Worker Growth What is the growth rate of GDP per capita? How does it differ from growth in output per worker? Why?