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on Financial Development and Growth |
| By: | Satti, Saqlain Latif; Farooq, Abdul; Shahbaz, Muhammad |
| Abstract: | This present study investigates the relationship between natural resource abundance and economic growth in Venezuelan economy. We have applied the ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001) to examine long run relationship between the variables. The VECM Granger causality is applied to test the direction of causality between the variables. The present study covers the period of 1971-2011. Our empirical evidence indicated that variables are found to be cointegrated. The results confirm that natural resource abundance impedes economic growth. Financial development, capital stock and trade openness enhance economic growth. The feedback hypothesis is also found between natural resource abundance and economic growth. |
| Keywords: | natural resource abundance, economic growth, cointegration |
| JEL: | C3 |
| Date: | 2013–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50150&r=fdg |
| By: | Raouf Boucekkine (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales [EHESS] - Ecole Centrale Marseille (ECM)); Giorgio Fabbri (EPEE - Université d'Evry-Val d'Essonne); Patrick A. Pintus (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - École des Hautes Études en Sciences Sociales [EHESS] - Ecole Centrale Marseille (ECM)) |
| Abstract: | We consider a small-open, collateral-constrained AK economy. We show that the combination of CARA preferences and uncertainty on capital inflows in such an economy generates long-term (expected) growth while the deterministic counterpart does not. In this framework, long-term growth is entirely driven by precautionary savings. In particular, we show that the asymptotic growth rate of the expected capital stock is an increasing function of both the risk parameter and the Arrow-Prat absolute risk aversion parameter. The model also predicts that economies that are more financially integrated through international borrowing experience lower consumption growth volatility relative to output growth volatility. |
| Keywords: | financial liberalization; growth; CARA preferences; collateral constraints; precautionary savings |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00864804&r=fdg |
| By: | Anastasios Xepapadeas; Gustav Engstrom |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1333&r=fdg |
| By: | AMENDOLA, Adalgiso (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); DELL'ANNO, Roberto (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | The aims of this article are to propose an overall index of social exclusion and to analyze its relationship with economic growth in European countries. We approach social exclusion as a multidimensional phenomenon by a three-mode principal components analysis (Tucker3 model). This method is applied to estimate an indicator of social exclusion for 28 European countries between 1995 and 2010. The empirical evidence shows that in short run (a) Granger causality runs one way from social exclusion to economic growth and not the other way; (b) countries with a higher level of social exclusion have higher growth rates of real GDP per capita; and (c) social exclusion has a larger effect than the income inequality on the economic growth. The policy implications of our analysis is that social inclusion is not a source of economic growth in the short term. |
| Keywords: | Social exclusion; Economic Growth; Multidimensional index; Three-mode principal components analysis |
| JEL: | C82 D63 O15 O52 |
| Date: | 2013–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0126&r=fdg |
| By: | Been-Lon Chen (Institute of Economics, Academia Sinica, Taipei, Taiwan); Yu-Shan Hsu (Department of Economics, National Chung Cheng University); Kazuo Mino (Institute of Economic Research, Kyoto University) |
| Abstract: | In one-sector neoclassical growth models, consumption externalities lead to an inefficient allocation in a steady state and indeterminate equilibrium toward a steady state only if there is a labor-leisure tradeoff. This paper shows that in a two-sector neoclassical growth model, even without a labor-leisure tradeoff, consumption spillovers easily lead to an inefficient allocation in a steady state and indeterminate equilibrium toward a steady state. Negative consumption spillovers that yield over-accumulation of capital in a one-sector model may lead to under-accumulation or an over-accumulation of capital in two-sector models depending on the relative capital intensity between sectors. Moreover, a two-sector model economy with consumption externalities is less stabilized than an otherwise identical one-sector model economy. |
| Keywords: | two-sector model, consumption externalities, efficiency, indeterminacy |
| JEL: | E21 E32 O41 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:sin:wpaper:13-a008&r=fdg |