nep-gro New Economics Papers
on Economic Growth
Issue of 2014‒10‒17
nine papers chosen by
Marc Patrick Brag Klemp
Brown University

  1. Recessions, Inequality, and Democratization By Paul Maarek; Michael T. Dorsch
  2. Output Growth and Commodity Prices in Latin America: What Has Changed? By Fossati, Sebastian
  3. Concentration of Talent and Regional Growth: Empirical Evidence from Spanish Autonomous Communities By Burhan Can KARAHASAN; Ebru KERIMOGLU
  4. Impact Assessment of Natural Disasters upon Economic Growth in Pakistan By Umair Shahzad
  5. Does Trade Liberalization Cause a Long Run Economic Growth in Turkey? By UTKULU Utku; OZDEMIR Durmus
  6. Impact of Information and Communication Technology on Economic Growth in Selected Islamic Countries By Mohammad Ali MORADI; Meysam KEBRYAEE
  7. Does Foreign Direct Investment Promote Growth? Recent Evidence from Latin America By BENGOA Marta; SANCHEZ-ROBLES Blanca
  8. Natural Resources and Sustainable Development By Hiranya K. Nath
  9. Weather Conditions and Economic Growth - Is Productivity Hampered by Climate Change? By Thomas Brenner; Daniel Lee

  1. By: Paul Maarek; Michael T. Dorsch (Université de Cergy-Pontoise, THEMA; University of Cambridge, and IISS (The Hague).)
    Abstract: This paper explores the extent to which episodes of democratization can be explained by variation in income inequality. Modern empirical tests of this relationship have generally yielded null results, which we argue follow from the estimation of mis-specified models. Guided by a theoretical nuance of the new economic view of democratization proposed by Acemoglu and Robinson (2001), our empirical examination considers the possibility that the effect of income inequality on democratization may be heterogeneous across the business cycle. Employing fixed effects regressions over a panel of autocratic countries, we demonstrate that variation in income inequality can explain democratization following recessions, but that there is no statistically significant relationship following periods of economic growth.
    Keywords: Democratization, distributive conflict, inequality, window of opportunity
    JEL: D72 D74 O15 P16 P48
    Date: 2014
  2. By: Fossati, Sebastian (University of Alberta, Department of Economics)
    Abstract: This paper documents important changes in real GDP growth of six large Latin American countries. The main results can be summarized as follows. First, there is evidence of a structural break in real GDP towards stronger mean growth and a substantial reduction in volatility. Second, the timing of the breaks suggests that the important changes in economic policies of the 1980s and 1990s have been effective in permanently improving economic growth in the region. Third, there is evidence of a positive and linear relationship between real GDP growth and the growth rate of commodity prices. As a result, the sustained increase in commodity prices observed in recent years explains an important share of growth in the region since 2003.
    Keywords: Latin America; business cycle; structural break; commodity prices
    JEL: E32
    Date: 2014–09–01
  3. By: Burhan Can KARAHASAN; Ebru KERIMOGLU
  4. By: Umair Shahzad
    Abstract: The research is based on the natural disasters in Pakistan, and their overall impact on the economy of Pakistan. Disasters are hypothesized to have a significant effect on the GDP of Pakistan. Moreover, Pakistan is considered as a disaster prone nation due to its geographical location. Pakistan has always been likely to be affected because of floods due to monsoon rains. But looking at the recent history, Pakistan has experienced massive loss due to 2010 floods and due to the earthquake in 2005, these two being considered as the biggest disasters in Pakistan of all time. The Time-series Distributive Lag (DL) model has been used to find the model estimates. Number of people killed in disasters is taken as a proxy for disasters and it effect on economy is seen. Interaction of glacier meltdown with consumption of ozone depleting substances has been developed and is seen as a proxy cause for global warming, which ultimately results in climate change and is likely to cause natural disasters. The results suggest that natural disasters and global warming have a negative impact on the economic growth. Moreover the study focuses on the policy implications from National Disaster Management Authority (NDMA) and to avoid huge losses with better mitigation plans has been incorporated and suggestions in conclusion that how can the losses from disasters be minimized. A distributed-lag model has been used for the time-series data in this study. A DL model helps to regress the dependent variable of the current time period, in accordance to the value of previous years; lags of its independent variables. Lags are considered as a substantial part of the time-series approach. The variables are lagged accordingly to check the impact and significance on the dependent variable. As one or more explanatory variables are lagged, the model becomes multivariate distributed lag model. The lag number taken to keep the variables is two; hence they are lagged for two time periods Where as in case of aid its different. All the variables used are quantified properly and for the collection of data, authentic databases have been consulted and relied upon.Natural Disasters are expected to have a Significant impact on slowing down the economic development of Pakistan.
    Keywords: Pakistan, Socio-economic development, Other issues
    Date: 2014–10–01
  5. By: UTKULU Utku; OZDEMIR Durmus
  6. By: Mohammad Ali MORADI; Meysam KEBRYAEE
  7. By: BENGOA Marta; SANCHEZ-ROBLES Blanca
  8. By: Hiranya K. Nath (Department of Economics and International Business, Sam Houston State University)
    Abstract: Empirical evidence suggests that countries abundant in natural resources grow slower than those with little or no such resources. This article briefly discusses this paradoxical phenomenon, known as the natural resource curse, and explores various channels through which this curse may operate. However, natural resources could also be a source of sustainable development if they are prudently used to create wealth. Thus, this paper further presents empirical data on wealth creation across the developing world to assess sustainable development since 1995. In particular, it makes an attempt to unveil a possible relationship between natural resource dependence and sustainable development as measured in terms of creating broadly defined wealth. There are several interesting findings. First, among various income groups, lower middle income countries have been creating wealth at the fastest pace. These countries are concentrated mainly in East Asia and the Pacific and South Asia and have low levels of per capita natural capital. Second, wealth accumulation has been slower in the natural resource-rich countries of Latin America and the Caribbean and Middle East and North Africa. In highly resource dependent countries, adjusted net saving (ANS) has also been low or negative. Finally, ANS in Sub-Saharan Africa has not only been falling but also been negative in most recent years. There has been depletion of natural resources in this region.
    Date: 2014–06
  9. By: Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg); Daniel Lee (German Meteorological Service, Offenbach)
    Abstract: Climate change researchers predict a dramatic increase in global average temperature over the next decades. We use past temperature and precipitation fluctuations to investigate whether changes in temperature and precipitation are associated with decreases in economic growth. A GMM panel regression is used to analyze the effects of the average yearly heat index and precipitation on economic growth in 105 countries for the time period 1991-2009.
    Keywords: national growth, heat, average yearly temperature, growth effects, panel GMM
    JEL: O11 O13 E10 C23
    Date: 2014–10–14

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