nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2015‒07‒11
two papers chosen by
Iulia Igescu
Ministry of Presidential Affairs

  1. Inequality, Economic Growth and Structural Change: Theoretical Links and Evidence from Latin American Countries By Mario D. Tello
  2. Foreign Direct Investment and Economic Growth By Guido Baldi; Jakob Miethe

  1. By: Mario D. Tello (Departamento de Economía de la PUC del Perú)
    Abstract: This paper summarizes the theoretical literature of the connections between inequality, economic growth and structural change and presents evidence of these connections for a sample of twelve Latin American countries in period 1980-2011. This suggests that the low degree of structural change has caused a statistical impact on inequality and economic growth in only four and one countries respectively. Consequently, this result rejects the conjecture that structural change has been growth reducing in Latin America. The absence of a statistical causal relationship from structural change to economic growth may be because sectoral labor reallocation does not take into account informal activities. On the other hand, coverage of the causal effects of growth and/or inequality on structural change has been greater than the respective effects of structural change on inequality and/or economic growth. Seven Latin American countries experienced those causal effects. JEL Classification-JEL: O54, O12
    Keywords: Structural change, inequality, economic growth
    Date: 2015
  2. By: Guido Baldi; Jakob Miethe
    Abstract: Various proposals are currently being suggested to encourage higher foreign direct investment in countries within the euro area, particularly between individual member states. The intended goal is to assist in stimulating economic growth in the euro area. Against this background, this article provides an overview of the large and heterogeneous academic literature on the influence of direct investment on economic growth. The results of the existing studies indicate that direct investment often acts as a kind of catalyst and that a positive influence on economic growth becomes more probable when a country has a population with a high level of education, high-quality infrastructure, or a developed financial system.
    Date: 2015

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