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on Economic Growth |
| By: | Lubimov, I.L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | We will address key papers in which the authors try to find or, on the contrary, to show the absence of the resource curse, in particular, we give a description of one of the key mechanisms of the resource curse, Dutch disease. We also conduct a small study, which are trying to establish a link between oil wealth and economic growth. |
| Keywords: | resource curse, Dutch disease, economic growth, oil wealth |
| Date: | 2016–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:2044&r=gro |
| By: | Won Jun Nah; Lavoie, Marc |
| Abstract: | A simple neo-Kaleckian open-economy model is presented and its implications for growth regimes are analyzed. The present model features long-run convergence to its normal rate of capacity utilization, which is conditionally achieved by incorporating the Harrodian principle of instability and autonomous growth in foreign demand. It is demonstrated that some aspects of the main Kaleckian results can be preserved not only in the short run but also in the long run, in the sense that both (i) a decrease in the propensity to save, and (ii) a change in income distribution favoring labor, bring about higher average rates of production growth and capital accumulation. However, the long-run impact of a change in the profit share is shown to be subjected to the condition that the responsiveness of the real exchange rate with respect to the profit share has to be bounded from above, confirming that the scope for wage-led demand or wage-led growth can be limited by open-economy considerations. |
| Keywords: | neo-Kaleckian,growth,capacity utilization,exports,profit share,real exchange rate |
| JEL: | E11 F41 O41 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:692016&r=gro |
| By: | Lubimov, I.L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | In this paper, a comprehensive analysis and systematization of theoretical and empirical studies of foreign authors on the issue of the relationship between income inequality and economic growth. The most common in the literature of channels of influence of income inequality on economic growth can be combined in the next (four) groups: political and economic mechanism that links income inequality with the pace of economic growth through redistribution policy, the channel associated with the imperfection of the capital market, a mechanism that establishes the relationship between income inequality and the rate of economic growth through social and political instability, and finally, a channel in which income inequality affects economic growth through the selection of the level of fertility of individuals. As a result of this analysis, the authors form a database summarizing the theoretical mechanisms of the relationship between growth and inequality. |
| Keywords: | income inequality, economic growth |
| Date: | 2016–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:2042&r=gro |
| By: | Pierre-Richard Agénor |
| Abstract: | This paper studies the effect of aid volatility on growth, in a model where the decision to invest in skills is endogenous. The analysis focuses on a low-income economy where the cost of acquiring education benefits from public subsidies, which are partly financed through foreign aid. Thus, aid plays a critical role in determining the distribution of skills across workers. By creating uncertainty about the net return to education, a high degree of aid volatility mitigates agents' incentives to invest in skills. If savings and growth depend on the composition of the labor force, and if more able workers are more productive, aid volatility may have an adverse effect on the mean growth rates of investment and output. Aid volatility may therefore contribute to the persistence of a stagnation equilibrium. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:man:cgbcrp:219&r=gro |
| By: | Baris Alpaslan |
| Abstract: | This paper offers a new model to critically examine associations between human capital, social capital, and health outcomes within the context of a two-period Overlapping Generations (OLG) model of endogenous growth model. Basically, individuals with higher level of human capital can build strong social ties, and those individuals who have more robust social networks are less likely to have health problems and are physically healthier. In an attempt to gain a better understanding of broader policy implications, a numerical analysis for low-income countries has been utilised and a sensitivity analysis under a different set of parameter values has been employed in the paper. We provide a comparison of three main experiments: an increase in the share of public spending on education, social capital-related activities, and health. The results confirm the association between education, social capital, and health outcomes, and its favourable effect on long-run growth in low-income countries. |
| JEL: | H51 H52 H59 I15 I25 O41 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2016-31&r=gro |
| By: | Nyasha, Sheilla; Gwenhure, Yvonne; Odhiambo, Nicholas M |
| Abstract: | This paper investigates the dynamic causal linkage between bank-based financial development and economic growth in Ethiopia during the period from 1980 to 2014. The study includes savings and investment as intermittent variables in an attempt to address the omission of variable bias ??? thereby creating a multivariate Granger-causality model. Using the newly developed autoregressive distributed lag bounds testing approach to cointegration and the error-correction model-based causality model, the study finds that in the short run, both financial development and economic growth Granger-cause each other in Ethiopia. However, in the long run, there is unidirectional Granger-causality from bank-based financial development to economic growth. The study, therefore, recommends that policies aimed at enhancing both economic growth and financial development should be pursued in the short run. However, in the long run, policies that target the development of the banking sector should be prioritised in order to ensure a sustained growth path. |
| Keywords: | Ethiopia, Bank-Based Financial Development, Economic Growth, Granger-Causality |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:20160&r=gro |
| By: | Melo, P. C.; Abdul-Salam, Yakubu; Roberts, D.; Colen, L.; Mary, S.; Gomez Y Paloma, S. |
| Abstract: | Regional differences in dietary patterns, food supply, and food culture can influence the relationship between income and food demand and thus the impact of income-oriented policies on undernutrition across Africa. In order to test for evidence of regional differences in income elasticities for food demand in Africa, we conduct a meta-analysis using 1,768 food-income elasticity estimates for different categories of food, 324 nutrient-income elasticity estimates, and 103 calorie-income elasticity estimates, extracted from 66 studies covering 48 African countries. One key contribution of this study is that it considers nutrient- and food-income elasticities besides calorie-income elasticities, allowing us to explore issues relating to calorie (i.e. energy) deficiency as well as malnutrition. We find that heterogeneity in the income elasticities can be explained by both differences in primary study characteristics (e.g. data, methodology) and the characteristics of the countries to which the income elasticities refer. The findings for food groups suggest there are significant regional differences in the size of the income elasticities. Some of the regional differences can be related to differences in diet and food supply structures across Africa but there may be other factors captured by the geographic variables (e.g. socio-cultural practices). In terms of country-level characteristics, the demand for calories, nutrients, and food becomes less responsive to changes in income as countries become more urbanised. The effect of economic growth is complex and appears to vary according to the type of income elasticity. The overall food-income elasticity appears to decline with income growth, and the relation holds for cereals, dairy and fruit and vegetables, although it is weaker for the other main food groups. Interestingly, we find a positive relation between a country’s economic growth and the magnitude of the nutrient-income elasticity and that economic growth is associated with increased demand for foods with greater nutrient content but fewer, or no additional, calories. Further country-specific analysis is needed to ensure that income-based policies targeting undernourishment and malnutrition in Africa achieve their goals. |
| Keywords: | Food demand, malnutrition, income elasticities, meta-analysis, Africa, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Consumer Economics: Empirical Analysis (D12), Agricultural Policy, Food Policy (Q18), |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc16:236372&r=gro |
| By: | Kazakova, M.V. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kiblitskaya, T.R. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Lyubimov, I.L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Nesterova, K.V. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | In the middle of the XX century, the conception of the positive impact of income inequality on economic growth. Representatives of the classical approach is explained by the fact that the concentration of wealth allows you to invest in the economy, while the redistribution policy limits the possibilities for economic development. However, on the other hand, there are a number of channels through which inequality can have a negative impact on economic growth: credit market imperfections, the threat to social and political stability, limiting investment in human capital, etc. In this paper we will try to confirm or deny the existence of the relationship between economic growth and income inequality. |
| Keywords: | income inequality, credit market, economic growth |
| Date: | 2016–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:2043&r=gro |
| By: | Jellal, Mohamed; Bouzahzah, Mohamed; Asongu, Simplice |
| Abstract: | This study articulates the interaction between institutional governance, education and economic growth. Given the current pursuit of education policy reforms and knowledge economy around the world, it is of policy relevance to theoretically analyze the main mechanisms by which the macroeconomic impact of education on growth (and economic development) occurs. Our theoretical model demonstrates how incentives offered by the government affect human capital accumulation which ultimately engenders positive economic development externalities. We articulate two main channels through which education affects economic growth. The first channel highlights direct positive effect of educational quality on the incentive to accumulate human capital by individuals, which makes them more productive. The second channel appears in the explicit function of the economic growth rate. As a policy implication, we have shown that the growth rate depends on the rate of return on human capital or that this rate of return itself depends on the quality of governance, which further increases growth. As a result, institutional quality has a double dividend, which suggests considerable benefits to educational reforms. |
| Keywords: | Institutions, Human capital, Education, Growth |
| JEL: | H11 O15 O43 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71785&r=gro |
| By: | Michler, Jeffrey; Shively, Gerald |
| Abstract: | We pose the simple question: how large of a role does the weather play in determining variability of agricultural production in India? Despite the long standing interest in agricultural economics of estimating the effect of weather on crop output, few quantitative measures of impact exist. We use a long panel of parcel level data from six villages in India that covers $44$ seasons from 1976 to 2011. Estimation the impact of weather variability on yield is complicated by the role of technological change over this period. In our descriptive analysis we generate several stylized facts about how agricultural production in the subcontinent has changed over the last $40$ years. Most importantly, mean yields have increased and the variance in crop production, measured relative to the mean, has decreased. In a regression context, using a multilevel model, we find strong evidence of technical change and that weather variability makes up only a small share of total variability in yield. We conclude that Green Revolution technologies have reduced the amount of weather related risk faced by farmers, even when we account for greater amounts of variation in weather due to climate change |
| Keywords: | Weather Risk, Agricultural Production, Technical Change, Multilevel Models, Rural India, Agricultural and Food Policy, Crop Production/Industries, International Development, Production Economics, Risk and Uncertainty, C11, D81, O12, O13, Q16, Q12, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:236342&r=gro |
| By: | Demary, Vera; Grömling, Michael; Kolev, Galina; Matthes, Jürgen |
| Abstract: | Structural change is both a challenge and an opportunity for countries and companies. However, there is no silver bullet in terms of superior economic models. Instead, different economic models can deal with structural change in a successful way. Both economies with a focus on services and those with a high share of manufacturing are able to achieve a high degree of economic growth and prosperity. Success factors are related to a solid performance with regard to the key drivers of structural change: globalisation, interconnectedness, innovation and knowledge as well as the economic framework. Economic policy - also at the EU level - should support companies and economies in reaping these potential benefits: fostering open and flexible markets as well as supporting European value chains and an intensification of knowledge in the production of goods and services are key success factors in this respect. |
| JEL: | F43 L16 O14 O43 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:62016&r=gro |
| By: | Gulcin Guresci Pehlivan (Department of Economics, Dokuz Eylul University); Yagmur Saglam (Department of Economics, Dokuz Eylul University) |
| Abstract: | The main purpose of this paper is to investigate relationship between foreign direct investment and economic growth for MENA countries from 1990 to 2014. We firstly tested heterogeneity and cross sectional dependence and found that all series have homogeneity and cross sectional dependence. For that reason, Hadri Kruzomi and Pesaran et al. Multifactor Error Structure panel unit root tests were used. For obtaining long-run relationship, we used Weterlund’s panel and group cointegration tests. The results supported the long-run relationship, therefore, we used Common Correlated Effect Model, thanks to this method, and coefficients for each cross-section unit could be calculated individually. |
| Keywords: | Foreign direct investment, economic growth, MENA, panel cointegration |
| JEL: | F21 O47 C23 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:yas:dpaper:2016/01&r=gro |
| By: | Paula Rodríguez-Modroño (Department of Economics, Quantitative Methods and Economic History, Universidad Pablo de Olavide); Mauricio Matus López (Department of Economics, Quantitative Methods and Economic History, Universidad Pablo de Olavide); Lina Gálvez-Muñoz (Department of Economics, Quantitative Methods and Economic History, Universidad Pablo de Olavide) |
| Abstract: | The 20th century has witnessed an increase in the female participation force in Western countries, especially since 1940s. Explanations behind the more intensive use of female labour are of different nature: globalization forces, the relative female/male wage linked to an increase in education and productivity, the tertiarization of the economy, and other institutional and cultural factors that allow women to control fertility, invest in assets other than the family ones and alter female bargaining power. Since these phenomena are complex and might respond to specific reasons and timing in different countries, it is important to advance on country case studies in a comparative basis. While in other Western countries the increase in female labor participation started to be significant in the 1960s and 1970s, Spanish female activity rates started to rise dramatically in the 1980s, concurrently with the deep integration of Spain in international markets, especially through the entry in the European Union in 1986. In this paper, we will analyze the reasons behind the decalage in female labor force participation in Spain after WWII in comparison with other Western countries, and the subsequent catching up from the 1980s in order to determine the level of influence of Spanish integration in international markets, as well as other economic, institutional and cultural factors. |
| Keywords: | female labor force, globalization, gender analysis, inequality |
| JEL: | F66 J1 J2 N14 N34 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wphaei:16.02&r=gro |
| By: | Gregor Semieniuk (Science Policy Research Unit, University of Sussex) |
| Abstract: | Climate change mitigation challenges national economies to increase productivity while reducing fossil energy consumption. Fossil energy-saving technical change has been as- sumed to accomplish this, yet empirical evidence is scarce. This paper investigates the long-run relationship between the rate and direction of technical change with respect to fossil energy and labor in the world economy. Growth rates of labor productivity and the fossil energy-labor ratio are examined for more than 95% of world output be- tween 1950 and 2012. The average elasticity of the energy-labor ratio with respect to labor productivity is close to one, implying highly energy-using technical change, but no trade-o between factor productivity growth rates. This stylized fact suggests the importance of a cheap, abundant energy supply for robust global growth, and a more important role for renewable energy. Integrated assessment models do not incorporate this restriction which may result in poorly speci ed baseline scenarios. |
| Keywords: | labor productivity, fossil energy productivity, energy-using technical change, decoupling, long-run trends, stylized fact |
| JEL: | N10 O44 O47 Q43 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2016-11&r=gro |