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on Economic Growth |
| By: | Klaus Gründler; Niklas Potrafke |
| Abstract: | Most industrialized countries today are facing historical demographic changes, paring increasing retirement with a declining labor force. We study the consequences of an increasing pensioner-worker ratio in a macroeconomic framework, which suggests a negative effect on total factor productivity. Using newly collected longitudinal data on pensioners, we quantify this effect by exploiting variation in the pre-determined component of retirement. We find that a 10-point increase in the pensioner-worker ratio decreases factor productivity by 5-6%. The effect is stronger when production is labor intensive and automation potential is low. Economic aging also impedes the creation of innovation at the technological frontier. |
| Keywords: | aging, retirement, factor productivity, secular stagnation, demographic transition |
| JEL: | C23 C26 D24 J11 J14 O40 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10594&r=gro |
| By: | Sanders, Zagabe |
| Abstract: | Since a long period of human history, little attention has been paid to how the quality of leadership could affect the economic growth of a nation. In countries with strong administrations, this effect was very small because leadership has been thought of as the ability to make people follow the rules that already exist. In addition, most researchers focused on political leadership, which narrows the definition of leadership. Furthermore, most growth theories do not appoint leadership or the quality of the people at the head of the nation as an asset to economic growth. Among the main factors mentioned for making growth happen are infrastructure, education, health, access to water and electricity, and technological development. It was not until Jones and Olken published their article on the possible link between leadership and economic growth. In fact, leadership matters as far as economic growth is concerned, resulting from the impact of decisions and policies and their sustainability over time. All in all, this paper is a comparative analysis of the economic growth experiences of countries and the leadership aspects that sustain them. We conclude that countries with strong and quality leaders have successfully achieved their objectives in terms of growth, which is not the case with those being led by weak leadership. |
| Keywords: | Economic growth, Leadership, Impact |
| JEL: | O43 |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118181&r=gro |
| By: | Sun, Tianyu; Tian, Liu |
| Abstract: | Demand saturation occurs along with economic development, but the theoretical basis for demand saturation is lacking. This study adds to literature by proposing a novel concept named utilization cost, which denotes the physical or mental burden incurred to obtain utility. Correspondingly, we distinguish between quantity and quality of consumption and construct a general utility function. With a generative decision procedure, the analysis shows that utilization costs help to explain the economic dynamics across development stages in terms of demand saturation. And, the long-term state of demand is affected by the properties of utilization costs, determining development directions. |
| Keywords: | Demand saturation; Consumption; Economic growth |
| JEL: | D11 E10 O30 O40 |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118081&r=gro |
| By: | Ben Yedder, Nadia; El Weriemmi, Malek; Bakari, Sayef |
| Abstract: | In this paper, we try to search the effect of patents on the relationship between domestic investment and economic growth. Data for MENA countries over the period 1998 – 2022 are applied for panel data analysis. Empirical analysis validates that domestic investment impact positively on economic growth. However, patents don’t have any incidence on economic growth. Also, the outcome of domestic investment on economic growth attests to be not influenced by Patent. |
| Keywords: | Domestic Investment, Economic Growth, Patents, MENA Countries, Panel Data Analysis |
| JEL: | E22 O16 O31 O34 O38 O40 O47 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118174&r=gro |
| By: | Richard G. Lipsey (Professor Emeritus at Simon Fraser University) |
| Abstract: | This paper distinguishes four types of public policies that seek to encourage growth-creating technological advance: technology, R&D, industrial, and science policies. The first three are typically treated under the single heading ‘industrial policy’, which is a source of confusion since each is administered by different agents and in different manners. Evidence of the many failures of industrial policy, as defined here, is often incorrectly assumed by its critics to apply to technology and R&D policies. Evidence for the many successes of technology policy’s symbiotic relation between the public and the private sectors is outlined, although typically ignored by growth theorists. The massive influence of science policy on economic growth, also typically ignored by growth theorists, is a largely unintended byproduct of scientific advance. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:sfu:sfudps:dp23-07&r=gro |
| By: | Spielberger, Lukas; Voss, Dustin |
| Abstract: | Growth model theory has turned the focus of comparative political economy scholars on the demand drivers of economic growth. But while its proponents emphasize the variety and inherent instability of growth models, research so far has been more concerned with the emergence and coherence of stable growth models than in the process of change. We argue that growth model change can be understood as a process of financial rebalancing on the level of institutional sectors. When an overindebted sector is forced to deleverage, a politically contested process emerges over the path of adjustment. We derive various ways in which each sector can contribute to this process of financial adjustment, which we conceptualize as the activation of macroeconomic ‘compensation valves’. This process shapes the trajectory of economic performance during financial crisis and determines whether a new feasible growth model can emerge in its aftermath. We apply our analytical lens in a comparative case study of Germany and the Netherlands during the Great Recession. We conclude that future research on growth models should more explicitly problematize the ability of political economies to adapt to financial instability. |
| Keywords: | balance sheet analysis; financial crisis; Germany; growth models; instability; Netherlands; Balance sheet analysis; Instability; Growth models; Financial crisis |
| JEL: | E00 G00 |
| Date: | 2022–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116034&r=gro |