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on Economic Growth |
| By: | Jakub Growiec; Peter McAdam; Jakub Mućk |
| Abstract: | We supplement the 'Idea Production Function' (IPF) with measures of R&D capital. We construct a time series of R&D capital stock in the US (1968-2019) based on cumulated R&D investment. We estimate the IPF with patent applications as R&D output, allowing for a flexible treatment of unit productivity of R&D capital and R&D labor. We find that the elasticity of substitution between R&D input factors is 0.7-0.8 and significantly below unity. This implies that R&D capital is an essential factor in producing ideas, complementary to R&D labor. We also identify a systematic positive trend in R&D labor productivity at about 1% per year on average and a cyclical trend in R&D capital productivity. Our results suggest that instead of 'ideas getting harder to find', there is an increasing scarcity of R&D capital needed to find them. |
| Keywords: | R&D, Long-Run Growth, Technical Change, Estimation, CES. |
| JEL: | O30 O40 O47 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2022071&r= |
| By: | Jussi Heikkil\"a; Timo Ali-Vehmas; Julius Rissanen |
| Abstract: | We analyze the link between standardization and economic growth by systematically reviewing leading economics journals, leading economic growth researchers' articles, and economic growth-related books. We make the following observations: 1) No article has analyzed the link between standardization and economic growth in top5 economics journals between 1996 and 2018. 2) A representative sample of the leading researchers of economic growth has allocated little attention to the link between standardization and economic growth. 3) Typically, economic growth textbooks do not contain "standards" or "standardization" in their word indexes. These findings suggest that the economic growth theory has neglected the role of standardization. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.09125&r= |
| By: | Tarna Silue (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | The paper focuses on the relationship between economic growth and financial inclusion in developing countries. One of the main innovations of the analysis is to report on the contribution to developing new digital financial services such as mobile money. To do this, I first realize a simple endogenous growth model in which the role of the financial sector is to provide sources of investment to included population. The model indicates that consumption could be the main channel through financial inclusion, contributing to growth. Then, the empirical estimation realized using the Generalized Method of Moments (GMM) with 57 countries over 2007-2017 evaluates the impacts of traditional and digital inclusion on growth. The results confirm the positive effect of financial inclusion on growth. For formal inclusion, estimators reveal that the financial system deposits contribute to growth in developing countries. Concerning digital inclusion, we note that an active mobile money account has a higher positive impact on growth than standard inclusion. |
| Keywords: | Endogenous growth,Financial inclusion,Mobile money,GMM System |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cdiwps:hal-03281843&r= |
| By: | Gennady Shkliarevsky |
| Abstract: | The article discusses the controversy over infinite growth. It analyzes the two dominant perspectives on economic growth and finds them based on a limited and subjective view of reality. An examination of the principal aspects of economic growth (economic activity, value, and value creation) helps to understand what fuels economic growth. The article also discusses the correlations between production, consumption, as well as resources and population dynamics. The article finds that infinite and exponential economic growth is essential for the survival of our civilization. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.09806&r= |
| By: | Messono, Omang; Asongu, Simplice |
| Abstract: | This study examines the effects of the historical prevalence of infectious diseases on contemporary entrepreneurship. Previous studies reveal the persistence of the effects of historical diseases on innovation, through the channel of culture. Drawing on the epidemiological origin of institutions, we propose a framework which argues that the impact of infectious disease prevalence on contemporary entrepreneurship is mediated by property rights. The central hypothesis posits that a guarantee of property rights reduces the effect of past diseases on entrepreneurship. Using data from 125 countries, we find strong and robust evidence on the proposed hypothesis and other results. Property rights are higher in countries where the prevalence of diseases was low, which leads to good entrepreneurship scores. In contrast, countries with high disease prevalence did not have time to develop strong institutions to secure property rights. This explains their low level of entrepreneurship today. These results are robust to alternative methods and measures of property rights. Furthermore, our results also confirm the level of development, culture and the digitalization of economies as transmission channels between past diseases and the current level of entrepreneurship. |
| Keywords: | entrepreneurship; institutions; diseases; property rights |
| JEL: | I0 I23 I31 J24 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111842&r= |
| By: | Liuchun Deng; Minako Fujio; M. Ali Khan |
| Abstract: | We provide a complete characterization of optimal extinction in a two-sector model of economic growth through three results, surprising in both their simplicity and intricacy. (i) When the discount factor is below a threshold identified by the well-known $\delta$-normality condition for the existence of a stationary optimal stock, the economy's capital becomes extinct in the long run. (ii) This extinction may be staggered if and only if the investment-good sector is capital intensive. (iii) We uncover a sequence of thresholds of the discount factor, identified by a family of rational functions, that represent bifurcations for optimal postponements on the path to extinction. We also report various special cases of the model having to do with unsustainable technologies and equal capital intensities that showcase long-term optimal growth, all of topical interest and all neglected in the antecedent literature. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2202.02209&r= |
| By: | Dugan, Anna; Prskawetz, Alexia; Raffin, Natacha |
| Abstract: | It is widely accepted that environmental and demographic changes will significantly influence the future of our society. In recent years, an increasing number of studies has analyzed the interlinkages among economic growth, environmental factors and a specific demographic variable, namely life expectancy, applying an overlapping generations framework. The aim of this survey is threefold. First, we review the role of life expectancy and pollution for sustainable growth. Second, we discuss the role of intervening factors like health investment and technological progress as well as institutional settings including government expenditures, tax structures and inequality. Finally, we summarize policy implications obtained in different models and compare them to each other. |
| Keywords: | Environmental quality,Pollution,Longevity,Endogenous growth,Government policy |
| JEL: | O11 O44 Q56 Q58 J10 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuweco:012022&r= |
| By: | Berger, Thor; Engzell, Per; Eriksson, Björn; Molinder, Jakob |
| Abstract: | We use historical census data to show that Sweden exhibited high levels of intergenerational occupational mobility several decades before the rise of the welfare state. Mobility rates were higher than in other 19th- and 20th-century European countries, closer to those observed in the highly mobile 19th-century United States. We leverage mobility variation across Swedish municipalities to shed light on potential determinants: economic growth and migration are positively correlated with mobility, consistent with the patterns observed across countries. |
| Date: | 2021–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:ebmva&r= |