nep-gro New Economics Papers
on Economic Growth
Issue of 2022‒01‒17
four papers chosen by
Marc Klemp
University of Copenhagen

  1. Effects of patent policy on growth and inequality: A perspective of exogenous and endogenous quality improvements By Lu, You-Xun; Lai, Ching-Chong
  2. Killer Cities and Industrious Cities? New Data and Evidence on 250 Years of Urban Growth By Remi Jedwab; Marina Gindelsky
  3. Gender Inequality and Economic Development: Evidence from Sub-Saharan Africa By Onogwu, Daniel
  4. Bank of Finland's long-run forecast framework with human capital By Kokkinen, Arto; Obstbaum, Meri; Mäki-Fränti, Petri

  1. By: Lu, You-Xun; Lai, Ching-Chong
    Abstract: In this study, we explore the effects of patent protection on growth and inequality under exogenous versus endogenous quality improvements. With an exogenous step size of quality improvement, strengthening patent protection promotes economic growth; the strengthening in patent protection has an ambiguous effect on income inequality but a negative effect on consumption inequality. However, with an endogenous step size, the growth effect of patent protection becomes ambiguous; the strengthening in patent protection still has an ambiguous effect on income inequality but a negative effect on consumption inequality. Under our calibrated parameter values, we find that strengthening patent protection raises the degree of income inequality under exogenous quality improvements. In the case of endogenous quality improvements, our results show that the strengthening in patent protection has an inverted-U effect on economic growth; both income inequality and consumption inequality decrease with the strength of patent protection.
    Keywords: innovation, patent protection, economic growth, inequality
    JEL: D30 O30 O40
    Date: 2021–12–21
  2. By: Remi Jedwab (George Washington University); Marina Gindelsky (Bureau of Economic Analysis)
    Abstract: In the historical literature, cities of the Industrial Revolution are portrayed as having a demographic penalty: killer cities with high death rates and industrious cities with low birth rates. To econometrically test this, we construct a novel data set of almost 2,000 crude demographic rates for 142 large cities in 35 countries for 1700-1950. Mortality actually decreased faster than fertility during the Industrial Revolution era and rates of natural increase rose in the cities of industrializing countries, especially large cities. This implies a declining, not rising, demographic penalty thanks to the Industrial Revolution. To explain the puzzle, we posit that negative health and industriousness effects of industrial urbanization might have been outweighed by positive effects of increased income and life expectancy.
    Keywords: Urban Demographic Penalty; Killer Cities; Industrious Cities; Mortality; Fertility; Natural Increase; Industrial Revolution; Urban Growth
    JEL: N90 N30 N10 R00 J10
    Date: 2022–01
  3. By: Onogwu, Daniel
    Abstract: Abstract In developed countries, there is a substantial gender convergence over the last century. This cannot be said for Sub-Saharan Africa. Women are underrepresented in most economic and political spheres of the region. The implication is that the overall productivity decreases in the region. This study provides empirical evidence of gender inequality on economic development in the Sub-Saharan Africa region. I conduct panel regression of 29 Sub Sahara African countries over the period from 1996 to 2019. The results show that there is a significant negative impact of gender inequality on economic development in the region, holding other variables constant. Conversely, gender parity has a positive effect on economic development as evidence in the results. I also find that, Capital accumulation (proxy as Gross Capital Formation), trade openness and population growth are key drivers of economic development of the region. I recommend policies that promote gender equity, trade openness, and growth of healthy population to promote economic development in the region.
    Keywords: Keywords: Economic development, Gross Capital Formation, inequality, trade, panel regression
    JEL: J16 O1
    Date: 2021
  4. By: Kokkinen, Arto; Obstbaum, Meri; Mäki-Fränti, Petri
    Abstract: Population ageing constitutes a central challenge to Finland. Understanding the Finnish economy's likely future trajectory and the key sources of growth is important for the design of policies to counteract these adverse long-term trends. For this purpose, we develop a novel long-run forecast framework based on enodogenous growth theory with human and fixed capital. A central result is a pronounced projected decrease in human capital, substantially weighing on the long-run GDP outlook for Finland. To revert these trends substantial policy efforts are needed. Unless the decline in human capital can be prevented by increasing fertility, skilled immigration, education or employment, even reaching a growth rate of one per cent after the 2040s would require significant measures to increase new fixed capital investments with new technology.
    Keywords: Forecasting,GDP,Labour productivity,Human capital,Modern growth theory
    JEL: E17 E24 O11
    Date: 2021

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