nep-gro New Economics Papers
on Economic Growth
Issue of 2021‒02‒01
six papers chosen by
Marc Klemp
University of Copenhagen

  1. Jesus speaks Korean : Christianity and literacy in colonial Korea By Becker, Sascha O; Won, Cheongyeon
  2. Transitional Dynamics of the Savings Rate and Economic Growth By Markus Brueckner; Tomoo Kikuchi; George Vachadze
  3. Do the "smart kids" catch up? Technological capabilities, globalisation and economic growth By Gräbner, Claudius; Heimberger, Philipp; Kapeller, Jakob
  4. Growth, Productivity and Technological Change in the Agricultural Sector. Some Evidence for the Argentine Economy, 1985-2018 By Luis Lanteri
  5. Innovate to Lead or Innovate to Prevail: When do Monopolistic Rents Induce Growth? By Roberto Piazza; Yu Zheng
  6. Do People Accept Different Cultures? By NAKAGAWA Mariko; SATO Yasuhiro; TABUCHI Takatoshi; YAMAMOTO Kazuhiro

  1. By: Becker, Sascha O (Monash U and U Warwick, CAGE, CEPR, CESifo, Ifo, IZA and ROA); Won, Cheongyeon (Monash Business School)
    Abstract: In the mid 19th century, pre-colonial Korea under the Joseon dynasty was increasingly isolated and lagging behind in its economic development. Joseon Korea was forced to sign unequal treaties with foreign powers as a result of which Christian missionaries entered the country and contributed to the establishment of private schools. We show that areas with a larger presence of Christians have higher literacy rates in 1930, during the Japanese colonial period. We also show that a higher number of Protestants is associated with higher female literacy, consistent with a stronger emphasis on female education in Protestant denominations.
    Keywords: Literacy ; Religion ; Missionaries ; Gender gap ; Korea. JEL Classification: I21 ; N35 ; Z12 ; J16.
    Date: 2021
  2. By: Markus Brueckner; Tomoo Kikuchi; George Vachadze
    Abstract: We estimate the relationship between GDP per capita growth and the growth rate of the national savings rate using a panel of 130 countries over the period 1960-2017. We find that GDP per capita growth increases (decreases) the growth rate of the national savings rate in poor countries (rich countries), and a higher credit-to-GDP ratio decreases the national savings rate as well as the income elasticity of the national savings rate. We develop a model with a credit constraint to explain the growth-saving relationship by the saving behavior of entrepreneurs at both the intensive and extensive margins. We further present supporting evidence for our theoretical findings by utilizing cross-country time series data of the number of new businesses registered and the corporate savings rate.
    Date: 2020–12
  3. By: Gräbner, Claudius; Heimberger, Philipp; Kapeller, Jakob
    Abstract: This paper analyses the impact of technological capabilities on convergence. While looking at the relevance of differences in technological capabilities has a long tradition in economics when it comes to explaining persistent deviations in income, we provide econometric tests on the role of technology in determining convergence outcomes in a growth regression framework. We exploit recent advances in measuring technological capabilities for a global country sample over the period 1985-2014. Our results show that convergence is conditional on technological capabilities. This finding is robust to controlling for economic globalisation, resource dependence, institutional quality and other confounding factors. The initial stock of accumulated technological capabilities is one essential factor that may allow poorer countries to convergence towards higher income levels in rich countries. A successful catching-up process cannot be expected for countries lacking a sufficient stock of previously accumulated technological capabilities.
    Keywords: Economic complexity,technology,convergence,catch-up,globalisation,openness
    JEL: E6 F4 O3
    Date: 2020
  4. By: Luis Lanteri (Central Bank of Argentina)
    Abstract: In this paper, we calculated the growth rates of total factor productivity (TFP), corresponding to the argentine agricultural sector, according to the neoclassical theory of growth (period 1985-2018). In turn, we estimated a translogarithmic cost function, with four factors of production (land, capital, labor and fertilizer consumption), in order to compute the Allen-Uzawa partial elasticities of substitution between the factors and the bias of technological change followed in the sector, during the same period. This system of simultaneous equations is estimated through the SUR method developed by Zellner. The results found do not allow us to be so conclusive regarding the validity of the theory of induced innovation, for argentine agriculture.
    Keywords: agricultural sector, productivity, translogarithmic cost function, technological bias, theory of induced innovation, Argentina
    JEL: C51 O47 Q10
    Date: 2019–10
  5. By: Roberto Piazza; Yu Zheng
    Abstract: This paper extends the Schumpeterian model of creative destruction by allowing followers’ cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically ad- vanced the leader is, the harder it is for a follower to leapfrog without incurring extra cost for using leader’s patented knowledge. Under this R&D cost structure, leaders innovate to increase their technological advantage so that followers will eventually stop innovating, allowing leadership to prevail. A new steady state then emerges featuring both leaders and followers innovating in few industries with low aggregate growth.
    Keywords: Labor supply;Skilled labor;Labor;Consumption;Technology;WP
    Date: 2019–12–27
  6. By: NAKAGAWA Mariko; SATO Yasuhiro; TABUCHI Takatoshi; YAMAMOTO Kazuhiro
    Abstract: We present a model of the ethnic preferences of a minority group of immigrants and a majority group of natives for different cultures. We show that ethnic preferences change when there is an increase in minority populations or when the cost of accepting different culture decreases. First, minorities tend to accept different cultures, whereas the majority population tend to accept a different culture initially but reject it later. This is empirically supported by time series data on the number of foreign residents by nationality and municipality in Tokyo. Second, the number of firms producing minority-specific goods monotonically increases or shows an inverted U-shape. This is also empirically supported by cross-sectional data on the numbers of restaurants and residents by nationality and municipality in Tokyo.
    Date: 2020–12

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