Productivity changes of asian economies by taking into account software piracy

For the past two decades, the fast-developing Asia has emerged as one of the most important economic regions. However, its economic growth is accompanied with severe software piracy. This paper analyzes productivity changes of 11 Asian economies and 4 non-Asian industrialized economies by taking into account software piracy using the Malmquist productivity index and its two components, efficiency change and technical change over the period 1994-2002. The results indicate that when software piracy is included, productivity growth in Asian developing economies regresses, while productivity growth in the four non-Asian industrialized economies improves. Interpretation and implications are provided. (JEL L86, O34)