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on Financial Development and Growth |
| By: | Douanla Tayo, Lionel; AbomoFouda, Marcel Olivier |
| Abstract: | This study aims at assessing the effect of government spending in education on economic growth in Cameroon over the period 1980-2012 using a vector error correction model. The estimated results show that these expenditures had a significant and positive impact on economic growth both in short and long run. The estimated error correction model shows that an increase of 1% of the growth rate of private gross fixed capital formation and government education spending led to increases of 5.03% and 10.145 % respectively in the long-run on economic growth . Education spending thus appears as one of the main driving force of the economic growth process in Cameroon. |
| Keywords: | Economic growth, VECM. |
| JEL: | H5 |
| Date: | 2016–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61881&r=fdg |
| By: | Alberto Petrucci (Department of Economics and Finance, LUISS Guido Carli University) |
| Abstract: | In this paper, the incidence of a tax on pure rent is analyzed in an OLG two-sector small open economy, in which one sector produces a capital good and one sector a consumer good. Contrary to what is obtained by Feldstein (1977) in a one-sector closed economy, a rent tax does not necessarily foster wealth accumulation and economic growth. The accommodating scheme for the government budget plays a crucial role for the effects of pure rent taxation. A rent tax stimulates nonhuman wealth if distortionary taxes on wealth or on income from nonland inputs are alleviated. The mechanism spurring capital formation is brought into action, instead, only when the rent tax is matched by a fall in capital taxation or, if the capital sector is capital intensive, by an increase in government spending on the capital good. |
| Keywords: | Land Rent Tax; Capital Good; Consumer Good; OLG; Wealth Accumulation. |
| JEL: | E62 H22 J22 O41 |
| URL: | http://d.repec.org/n?u=RePEc:lui:celegw:1501&r=fdg |
| By: | Rakesh Gupta N.R. (Centre d'Economie de la Sorbonne - Paris School of Economics and ESSEC Business School - IRENE-CODEV) |
| Abstract: | This paper, on the one hand, goes a step closer to demonstrate the causality of social capital on economic performance. On the other hand, we confirm a continued role of social capital effects on economic performance in this paper by using a much larger sample, spanning three decades and increasing the scope of countries. This paper is unique in the sense that it contributes to revisiting questions of economic performance, social capital and institutions with a clearly better and updated dataset from the last 28 years building upon existing empirical evidence. We employ a longitudinal analysis (pooled unbalanced multiple cross-section datasets) with fixed effects in this study. Our sample includes both the World Values Survey and European Values Study dating back to the 1980s. Our results are twofold: Firstly, to confirm that trust has a significant positive effect on growth. And more importantly, they have a significant effect on growth for at least 5 years (for growth at 5, 7 and 10 years following a period of trust measure). Secondly, associational activities – another measure in the overarching definitions of social capital, along with institutions, inequality, and education are consistently significant determinants of trust. |
| Keywords: | Interpersonal trust, trust, associational activities, social capital, economic development, institutions, inequality. |
| JEL: | Z13 O11 O43 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:15002&r=fdg |