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on Financial Development and Growth |
| By: | Channing Arndt; Finn Tarp; Sam Jones |
| Abstract: | This paper first assesses the aid-growth literature with a focus on recent contributions. The aid-growth literature is then framed, for the first time, in terms of the Rubin Causal Model, applied at the macroeconomic level. The results show that aid has a positive and statistically significant causal effect on growth over the long run with point estimates at levels suggested by growth theory. It has been concluded that aid remains an important tool for enhancing the development prospects of poor nations. [Discussion Paper No. 2009/05] |
| Keywords: | foreign aid, growth, aid effectiveness, causal effects |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2513&r=fdg |
| By: | Daniel C. Monchuk; Dermot J. Hayes (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); John Miranowski; Dayton M. Lambert |
| Abstract: | This study examines aggregate county income growth across the 48 contiguous states from 1990 to 2005. To control for endogeneity we estimate a two-stage spatial error model and infer parameter significance by implementing a number of spatial bootstrap algorithms. We find that outdoor recreation and natural amenities favor positive growth in rural counties, densely populated rural areas enjoy stronger growth, and property taxes correlate negatively with rural growth. We also compare estimates from the aggregate county income growth model with per capita income growth and find that these two growth processes can be quite different. |
| Keywords: | county income growth, rural development, spatial bootstrapping. JEL codes: O18, R11, R58 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:10-wp507&r=fdg |
| By: | Mónica Meireles (Faculdade de Economia, Universidade do Porto, ISCTE-IUL, Portugal); Isabel Soares (CEF.UP, Faculdade de Economia, Universidade do Porto, Portugal); Óscar Afonso (CEF.UP, OBEGEF and Faculdade de Economia, Universidade do Porto, Portugal) |
| Abstract: | Seminal works on growth theory had mainly focused on exogenous technological change, where a certain given path of technological change was considered. At the end of the 1980s, a new growth theory emerged allowing for the endogeneity of technological change, where economic agents can affect the pace of technological change and where technology is essentially interpreted as “knowledge”. The present paper aims to develop a simple endogenous growth model to study the effects of taxation on dirty intensive resources and the effects of subsidies on clean/ecological intensive resources. It also intends to analyse how exogenous environmental quality can affect the development of better quality (environmentally cleaner) inputs to production. For that, a dynamic general equilibrium growth model is considered based on the endogenous skill-biased technological change literature. It is shown that final-good sector bias is caused by the technological-knowledge bias, which is promoted by government intervention. |
| Keywords: | economic growth, technological change, environment |
| JEL: | C61 O13 Q55 Q58 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:378&r=fdg |
| By: | Negre, Mario |
| Abstract: | Growth that reduces poverty is often considered pro-poor regardless of whether the poor benefit from it more than the non-poor. Such growth could simply be termed poverty-reducing growth. This paper argues that for growth to be pro-poor it should dispropo |
| Keywords: | pro-poor, growth, income, inequality, poverty decomposition, Honduras |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-47&r=fdg |
| By: | Simone Marsiglio (University of Milan) |
| Abstract: | This paper studies the impact of endogenous population change on economic growth, analyzing the simplest optimal endogenous growth model, an AK type model, driven by human capital accumulation. We show that in steady state both demographic change and economic growth are constant, but the rate of these growth can be positive, negative or null accordingly to parameter values. Population dynamics is determined by the difference between the stationary fertility rate and the exogenous mortality rate: if this is positive population size indefinitely increases, otherwise it reaches a stationary level, which can be positive (if the difference is null) or null (if it is negative). If fertility is strictly lower than mortality, population size will constantly decrease in finite time and we end up with a complete collapse of the economy, characterized by the total extinction of the population. We also analyze the problem of optimal population size and its relationship with growth. The seminal work of Parfit (1984) suggests that total utilitarianism leads to increase population size indefinitely, even if it the average welfare tends to zero. We show that in our model economy, under certain parametric conditions, the repugnant conclusion holds; in particular, this happens when consumption growth is negative and the stationary fertility rate is higher than the exogenous mortality rate. |
| Keywords: | Economic Growth, Human Capital Accumulation, Endogenous Fertility, Optimal Population, Repugnant Conclusion, |
| Date: | 2010–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:bep:unimip:1103&r=fdg |
| By: | Mukherjee, Sacchidananda; Chakraborty, Debashis |
| Abstract: | The paper attempts to analyse the relationship between economic growth and human development for 28 major Indian States during four time periods ranging over last two decades: 1983, 1993, 1999-00 and 2004-05. To construct Human Development Index for Indian States, we consider the National Human Development Report 2001 Methodology. The objective of this exercise to understand at what degree and extent the per capita income (as an indicator of economic growth) has influenced the human development across Indian States. To understand the rural – urban disparity in the achievement of human development, the Human Development Index is constructed for rural and urban areas separately for each of the States. The result shows that that per capita income is not translating into human well being. This perhaps in another way might signify the rising influence of other variables in determination of the HD achievements of a state. The result shows the need for further investigation to determine the underlying factors (other than per capita income) which influence HD achievements of a State. |
| Keywords: | Economic Growth; Human Development; Human Development Index Methodology; Economic Liberalisation; Indian States |
| JEL: | O47 H75 O15 E21 C01 |
| Date: | 2010–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22997&r=fdg |
| By: | Kolodko, Grzegorz W. |
| Abstract: | Over 1.8 billion people, from Central Europe to East Asia, have been involved in the great systemic transformation to market economy, civic society and democracy. The process has brought mixed fruits. The diversification of the current situation is a resu |
| Keywords: | transformation, economic growth, development, institutions, economic policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-40&r=fdg |
| By: | Ofer, Gur |
| Abstract: | Only recently, 20 years after transition to a market system, has Russia regained a similar production level it had achieved on the eve of transition in 1991. This may sound surprising, given its low productivity under central planning which dropped even l |
| Keywords: | transition, institutions, Russia, economic growth, human capital, higher |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-59&r=fdg |
| By: | Raghav Gaiha (Faculty of Management Studies, University of Delhi, India); Katsushi S. Imai (Economics, School of Social Science, University of Manchester, UK); Ganesh Thapa (International Fund for Agricultural Development, Rome, Italy); Woojin KANG (Economics, School of Social Sciences, University of Manchester, UK) |
| Abstract: | Recent debates on a sustainable recovery of the global economy have tended to overemphasise the "savings glut" hypothesis and the unavoidable imperative of higher consumption in China and other emerging Asian countries. That oversaving and not underinvestment is coming in the way of a quicker and more durable recovery is not just simplistic but misleading from a medium- term growth perspective for emerging Asian countries and other developing countries in this region. Drawing upon country panel data for developing countries and a sub-sample of Asian countries during the period 1991 to 2007, the present study makes a case for a bold and coordinated fiscal stimulus, directed to stimulating agricultural and overall growth, and mitigation of poverty and hunger. Our simulations further suggest that poverty reduction is likely to be larger if the fiscal stimulus is directed to social spending in health and education sectors. Indeed, if our simulations of fiscal impacts have any validity, the dire predictions of millions getting trapped in poverty and hunger may turn out to be exaggerated. The prospects of a strong recovery led by fiscal stimulus are thus real and achievable. |
| Keywords: | Government Expenditure, Fiscal Policy, Economic Growth, Agricultural Growth, Poverty, Asia |
| JEL: | C21 C33 E62 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2010-15&r=fdg |
| By: | Dayaratne, Ranjith |
| Abstract: | This paper examines urbanization trends, the growth of Colombo and its present state of development. It looks at the approaches to the planned interventions in the city and demonstrates how a uni-directional urban development has had a detrimental impact |
| Keywords: | Colombo, urban development, managing urbanization, planning, housing, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-64&r=fdg |