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on Economic Growth |
| By: | Prados de la Escosura, Leandro |
| Abstract: | This short paper examines Patrick O'Brien's bold reinterpretation of the British Industrial Revolution as a joint result of the expropriation of land by the landed aristocracy, abundant coal endowments, and the unintended consequences of self-defence, in the context of historical literature and contraposes it to evidence on long run growth and inequality and alternative narratives of British industrialisation. It concludes that, by neglecting the contribution of culture and institutions to incentivise investment and innovation, O'Brien lessens the role of the British Industrial Revolution for understanding modern economic growth. |
| Keywords: | Industrial Revolution; Britain; Mercantilist State; Agriculture; Coal; Growth; Inequality |
| JEL: | N13 N43 N53 O14 O47 |
| Date: | 2021–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:cte:whrepe:33369&r= |
| By: | Leonid V. Azarnert |
| Abstract: | This article analyzes the effect of population sorting on economic growth. The analysis is performed in a two-region growth model with endogenous fertility, in which public knowledge spillovers from the more advanced core into children’s human capital accumulation function in the periphery are incorporated. I show how migration affects the inter-temporal evolution of human capital in each of the regions and the economy as a whole. I also discuss how public policy interventions can help increase the per-capita human capital levels, if free uncontrolled migration leads to a reduction in human capital accumulation. |
| Keywords: | migration, population sorting, knowledge spillovers, fertility, human capital, economic growth |
| JEL: | D30 J10 O15 O18 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9338&r= |
| By: | Nounamo, Yann; Asongu, Simplice; Njangang, Henri; Tadadjeu, Sosson |
| Abstract: | The main contribution of this study is the determination of an endogenous threshold of institutional quality, beyond which external debt would affect economic growth differently. The focus is on 14 countries of the African Franc zone over the period 1985-2015. Based on the panel Smooth Threshold Regression model, the results reveal that the relationship between external debt and economic growth is based on institutional quality. It is found that the level of indebtedness at which the effect of external debt on economic growth becomes negative is higher in countries with lower levels of corruption and high levels of democracy. This means that poor institutional quality prevents a country from taking full advantage of its credit opportunities. Thus, the more countries become democratic, the more debt helps finance economic growth. These results are robust to sensitivity analysis and Generalized Method of Moments estimation. |
| Keywords: | external debt, political institutions, economic growth |
| JEL: | E00 O10 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:110131&r= |
| By: | Martin Fleming (The Productivity Institute, The University of Manchester) |
| Keywords: | industrial revolution, productivity, industry 4.0, capital deepening, technological innovation, creative destruction |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:010&r= |
| By: | Kammas, Pantelis; Sakalis, Argyris; Sarantides, Vassilis |
| Abstract: | During the late 19th century, the increasing popularity of pudding in England, along with the outbreak of phylloxera plague in French vineyards had an unintended effect in the agrarian economy of Greece. In particular, these events escalated the international demand and production of currants in Greece during the 1870s, causing an unprecedented positive shock that was transmitted through trade in the agricultural population. Using novel data from historical archives, we explore how this exogenous event affected investment towards human capital. Consistent with expectations, in an agrarian economy that specializes in unskilled labour-intensive agricultural goods, this shock had a negative effect on human capital formation. |
| Keywords: | education; fertility; agriculture; international trad |
| JEL: | J24 N33 O15 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:112206&r= |
| By: | Ogundari, Kolawole |
| Abstract: | The study revisits the causal relationship between agricultural productivity and economic growth in sub-Saharan Africa. The analysis is based on the panel cointegration approach, estimated using the Pooled Mean Group (PMG) estimators. The study employs a cross-country balanced panel data covering 35 countries from 1981 to 2010. Per capita, gross domestic product is an indicator of economic growth, and the total factor productivity (TFP) index is an agricultural productivity indicator used in the study. The empirical results show the variables have a different integration order based on the unit root test, while evidence of a cointegration relationship among the variables exists. The estimated PMG shows that in the long and short-run, agricultural TFP has significant positive and negative effects on economic growth, respectively, in the study. There is no effect of economic growth on agricultural TFP either in the long and short run. While the causality test shows that agricultural TFP Granger causes economic growth in the long and short run, we found no evidence that economic growth Granger causes agricultural TFP in the short run except in the long run. These findings show that greater attention to improving agricultural TFP would increase economic growth in the region. |
| Keywords: | Economic Growth, Agricultural Productivity, Granger Causality, Panel data, Sub Saharan Africa |
| JEL: | O1 O13 Q11 Q18 |
| Date: | 2021–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:110199&r= |
| By: | Jeremy Edwards |
| Abstract: | The institutional reforms France imposed in the parts of Germany it occupied in the late eighteenth and early nineteenth centuries are claimed to provide an example of successful externally-imposed institutional reforms. The most detailed study is that of Lecce and Ogliari (2019), who argue that the effectiveness of transplanted French institutions in different parts of Prussia depended on the cultural proximity between France and the relevant part of Prussia. However, Lecce and Ogliari take no account of a widely-recognized feature of nineteenth-century Prussian economic development: the importance of regional effects. The French reforms were concentrated in the west of Prussia, which was more economically advanced than the east before the French invasion, and this pre-existing difference must be disentangled from the effect of the French reforms in order to identify the effect of the latter. Once this is done, the evidence shows neither any favourable effect of French rule nor an effect of cultural proximity on the impact of French rule. |
| Keywords: | institutional reform, regional effects, omitted variable bias |
| JEL: | N13 O43 O52 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9333&r= |
| By: | Heller-Sahlgren, Gabriel (Research Institute of Industrial Economics (IFN)); Jordahl, Henrik (Örebro University School of Business) |
| Abstract: | Research indicates that education quality – measured by test scores in international student surveys – predicts economic growth. In this paper, we extend previous findings up to 2016 and analyse test scores of upper-secondary school students only. We find that the positive relationship between growth and test scores holds in both cases. The share of top-performing students exhibits a stronger correlation with economic growth than does the share of students who meet basic requirements. |
| Keywords: | Education; Economic growth; PISA; TIMSS; Top-performing students |
| JEL: | I25 O15 O57 |
| Date: | 2021–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1408&r= |
| By: | Iglesias Pinedo, Wilman J.; Rocha Junior, Adauto |
| Keywords: | Production Economics, Community/Rural/Urban Development, Research Methods/Statistical Methods |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:314064&r= |