nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2015‒03‒05
eight papers chosen by
Iulia Igescu
Ministry of Presidential Affairs

  1. Optimal Growth and Debt Dynamics under GDP-Based Collaterals By Daria ONORI
  2. Gouvernance, Capital humain et Croissance économique dans la zone OCDE: Application sur les données de panel dynamique (GMM) By Mtiraoui, Abderraouf
  3. Economic Growth and Migration By Jan Ditzen
  4. Remarks at the 2015 U.S. Monetary Policy Forum By Dudley, William
  5. Empirical Analysis of the effect of Human Capital Generation on Economic Growth in India - a Panel Data approach By Debgupta, Sanchari
  6. Is Privatization Related With Macroeconomic Management? Evidence From Some Selected African Countries. By George, Emmanuel; Odejimi, Deborah; Matthews, Oluwatoyin; Ojeaga, Paul
  7. Republic of Armenia Public Expenditure Review : Expanding the Fiscal Envelope By World Bank Group
  8. Botswana : Skills for Competitiveness and Economic Growth By World Bank

  1. By: Daria ONORI
    Keywords: , open economy, two-stage growth, external debt, GDP-based collaterals, imperfect financial markets, multi-stage optimal control
    Date: 2015
  2. By: Mtiraoui, Abderraouf
    Abstract: The interest of this paper is to show that "good governance" was one of the main success factors of OECD countries. Indeed, the good governance has direct and indirect influences on economic growth of these countries. Our empirical attempt, dynamic panel data (GMM) and during the period 1998 to 2006, trying to clarify the direct and indirect effects of good governance on economic growth through human capital. Our sample consists of twenty OECD countries on which we test the impact of good governance on economic growth through human capital. We investigate how the concept of "good governance" provides the human capital, the framework of the fight against the corruption of the institution of nations.
    Keywords: Governance, Human Capital, Institution, Economic Growth, Dynamic Panel Data (GMM), OECD
    JEL: K20
    Date: 2015–01–05
  3. By: Jan Ditzen (Heriot-Watt University)
    Abstract: The literature on growth theory lacks a precise sense of why there are interactions and dependencies between countries. Correspondingly, the spatial econometrics literature on growth empirics accounts for endogenous cross-country interactions, but lacks crucial insights from economic theory as to how such linkages should be precisely modeled. I address this weakness, by proposing a new economic model as a combination of an endogenous Romer-style growth model and a New Economic Geography model. The model admits two distinct sources of interactions between countries: mobility of high skilled workers and inter-country trade. Both of these sources develop from the New Economic Geography models, while the engine of the growth process is adapted from the endogenous growth literature. Motivated by higher wages, highly skilled workers migrate to the richer country, and there they work in the R&D sector. This in turn contributes towards economic growth in the richer country, and leads to divergence between the two countries. Trade in the manufactured good increases the difference between the two countries further. In its focus on both migration of highly skilled labour and its conclusion of divergence, the model captures the phenomenon of the Great Divergence in the 19th century. It is also consistent with evidence of club convergence in the 20th century. The implications of the model are verified by simulation.
    Keywords: Economic growth, New Economic Geography, Cross-country interactions, Convergence, Migration, Trade
    JEL: O41 F22 F43 O31 N10
    Date: 2014
  4. By: Dudley, William (Federal Reserve Bank of New York)
    Abstract: Remarks at the 2015 U.S. Monetary Policy Forum, New York City.
    Keywords: Taylor-type rule; inertial monetary policy rule; real short-term interest rate; GDP growth; r*; monetary policy normalization; long-term equilibrium real federal funds rate
    JEL: E52
    Date: 2015–02–27
  5. By: Debgupta, Sanchari
    Abstract: Last decade of 20th century faced a strong quest for the determinants of the rate of long run economic growth. Post World War II, human capital has emerged as an important and inevitable factor apart from the other general factors that affect the rate of growth. According to economists and existing theories of growth, a nation that invests in human capital generation should contribute positively in the process of economic growth. Human capital embodies qualities that are inherited as well as acquired through education and training. The returns to investment in human capital not only help individuals to enjoy personal growth but in addition affect the growth of the nation as an aggregate. This paper observes the relationship that prevails between human capital and economic growth in the Indian economy based on NSSO unit level household data. With the help of panel data econometric analysis, the study finds out that human capital generation as an aggregate of average general educational level, literacy rate, per capita educational expenditure and primary enrolment rate, positively impact the per capita net state domestic product, taken as a representative for economic growth.
    Keywords: Human Capital, Economic Growth, Panel Data Econometrics
    JEL: C12 C13 C23
    Date: 2015–02–28
  6. By: George, Emmanuel; Odejimi, Deborah; Matthews, Oluwatoyin; Ojeaga, Paul
    Abstract: Has macroeconomic management succeeded in making privatization promote growth in Africa? What are the probable strategies that should accompany the privatization reform process to promote growth in Africa? To what extent has the privatization process succeeded in attracting foreign direct investment to Africa? The study investigates the relationship between macroeconomic management and privatization. Many African countries have embarked on one form of privatization reform or the other since 1980 as one of the stringent conditions for accessing capital from the IMF and the World Bank. Secondly globalization and the gradually integration of the African economy into the global economy also means that Africa has to strategically develop its domestic market to cushion itself from fluctuations and probable contagion associated with global economic crisis that are always inevitable Stiglitz (2000) and Ojeaga P. (2012). The methods of estimation used are the OLS, linear mixed effects (LME), 2SLS and the GMM method of estimation. It was found that macroeconomic management has the capacity to affect the success of the privatization reform process. It was also found that privatization was not promoting growth in Africa; privatization could promote growth if long run growth strategies are implemented together with the privatization reform process. Privatization was also found not to have the capacity to attract foreign investment to many African countries.
    Keywords: Africa, Political Economy, Game Theory, Macroeconomic Management and Privatization
    JEL: C23 C72 E61 E62 F42 G22 H5 O11 O23
    Date: 2013–08–08
  7. By: World Bank Group
    Keywords: Macroeconomics and Economic Growth - Subnational Economic Development Public Sector Expenditure Policy Finance and Financial Sector Development - Debt Markets Public Sector Economics Public Sector Development Macroeconomics and Economic Growth - Taxation & Subsidies
    Date: 2014–05
  8. By: World Bank
    Keywords: Teaching and Learning Education - Primary Education Education - Education For All Tertiary Education Education - Access & Equity in Basic Education
    Date: 2014

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