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on Economic Growth |
| By: | Gregory Casey; Ryo Horii |
| Abstract: | We prove a generalized, multi-factor version of the Uzawa steady-state growth theorem. Balanced growth with capital-augmenting technical change is possible when capital has a unitary elasticity of substitution with at least one other factor of production. Thus, a neoclassical growth model with three or more factors of production can be consistent with empirical evidence on both the capital-labor elasticity of substitution and the declining price of investment relative to consumption. In a three-factor model calibrated to US data, medium-run fluctuations in the investment price explain labor share movements from 1960-2000, but not the subsequent fall in the labor share. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1215&r=gro |
| By: | Sascha O. Becker; Jared Rubin; Ludger Woessmann |
| Abstract: | We use the elements of a macroeconomic production function—physical capital, human capital, labor, and technology—together with standard growth models to frame the role of religion in economic growth. Unifying a growing literature, we argue that religion can enhance or impinge upon economic growth through all four elements because it shapes individual preferences, societal norms, and institutions. Religion affects physical capital accumulation by influencing thrift and financial development. It affects human capital through both religious and secular education. It affects population and labor by influencing work effort, fertility, and the demographic transition. And it affects total factor productivity by constraining or unleashing technological change and through rituals, legal institutions, political economy, and conflict. Synthesizing a disjoint literature in this way opens many interesting directions for future research. |
| Keywords: | religion, growth, Christianity, Judaism, Islam, preferences, norms, institutions, capital saving, financial development, human capital, education, population, labor, demography, fertility, total factor productivity, technological change, rituals, politica, technological change, rituals, political economy, conflict |
| JEL: | Z12 O40 N30 I25 O15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10688&r=gro |
| By: | Shapor, Maria (Шапор, Мария) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | This section of the work is devoted to the analysis of the relationship between inequality and economic growth in countries with a high dependence on oil exports. In this section, as in the first part of the study, approaches to modeling the relationship of various types of inequality, mainly related to income inequality in countries with a high dependence on oil exports, are considered, but not from the point of view of the quality of the institutional development of the countries under study, but in the context of dependence of the formation of the revenue part of the country's budget on the export of hydrocarbon energy. Thus, the purpose of this study was to determine the place and role of oil revenues in modeling the relationship between income inequality and economic growth in oil exporting countries and to quantify their significance in reducing inequality in the country and increasing economic growth rates. |
| Keywords: | inequality, economic growth, resource availability, natural wealth, modeling the relationship between the level of natural wealth and the level of well-being of the country's population |
| JEL: | F41 F43 F47 |
| Date: | 2023–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220252&r=gro |
| By: | Ozili, Peterson |
| Abstract: | The impact of financial inclusion on economic growth is a topic that is generating widespread interest among researchers and practitioners. We review the existing literature to highlight the state of research in the literature and identify new opportunities for innovative research. We used a thematic literature review methodology which involves dividing the review along relevant themes. We find that significant research on the topic emerged in the post-2016 years. Most of the existing studies are from developing countries and from the Asian and African regions. Existing studies have not utilized relevant theories in explaining the impact of financial inclusion on economic growth. Most studies report a positive impact of financial inclusion on economic growth while very few studies show a negative impact. The most common channel through which financial inclusion affects economic growth is through greater access to financial products and services offered by financial institutions that increases financial intermediation and translates to positive economic growth. The common empirical methodology used in the literature are causality tests, cointegration and regression methods. Multiple proxies of financial inclusion and economic growth were used in the literature which partly explains the conflicting result among existing studies. The review paper concludes by identifying some directions for future research. |
| Keywords: | financial inclusion, economic growth, literature review, access to finance, GDP, GDP per capita, causality tests, regression, cointegration, Africa, Europe, Asia, financial inclusion, index, theory. |
| JEL: | E30 E32 G21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118788&r=gro |
| By: | Gardner, Leigh |
| Abstract: | Recent debates on the economic history of the United States and other regions have revisited the question of the extent to which slavery and other forms of labor coercion contributed to the development of economic and political institutions. This article aims to bring Africa into this global debate, examining the contributions of slavery and coercion to periods of economic growth during the nineteenth and twentieth centuries. It argues that the coercion of labor in a variety of forms was a key part of African political economy, and thus when presented with opportunities for growth, elites turned first to the expansion of coerced labor. However, while labor coercion could help facilitate short-run growth, it also made the transition to sustained growth more difficult. |
| Keywords: | Africa; economic development; slavery forced labor |
| JEL: | J1 R14 J01 |
| Date: | 2023–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120394&r=gro |
| By: | Stephen Broadberry; Jason Lennard |
| Abstract: | The modern business cycle features long expansions combined with short recessions, and is thus related to the emergence of sustained economic growth. It also features significant international co-movement, and is therefore associated with growing market integration and globalisation. When did these patterns first appear? This paper explores the changing nature of the business cycle using historical national accounts for nine European economies between 1300 and 2000. For the sample as a whole, the modern business cycle emerged at the end of the eighteenth century. |
| Date: | 2023–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:esohwp:_209&r=gro |
| By: | Benos, Nikos; Karagiannis, Stelios; Tsitou, Sofia |
| Abstract: | This study examines the impact of land ownership on literacy rates in a cross-section of Greek provinces around 1900. Consistent with our theoretical framework (Galor et al., 2009), we find that the dominance of large properties has a substantial adverse effect on human capital accumulation. Thus, our evidence explains a substantial part of provincial differences in terms of human capital in early 20th century Greece for the first time. This differs from much of the literature, because Greece was at the early stages of the transition to the industrial era during the period examined. |
| Keywords: | Landownership - Human capital - Geography - Regional analysis |
| JEL: | C21 I20 N34 Q15 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118748&r=gro |
| By: | Stephan Heblich; Stephen J. Redding; Hans-Joachim Voth |
| Abstract: | To what extent did the wealth derived from slavery contribute to Europe?s economic growth? Stephan Heblich, Stephen Redding and Hans-Joachim Voth find that slaveholding areas of Britain were less agricultural, closer to cotton mills, and had more property wealth. Not only did the slave trade affect the geography of economic development after 1750, it also accelerated the country's industrial revolution. |
| Keywords: | UK Economy, Technological change, Economic geography |
| Date: | 2023–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:655&r=gro |
| By: | David R. Baqaee (University of California); Ariel Burstein (E University of California); Cédric Duprez (Economics and Research Department, National Bank of Belgium and University of Mons); Emmanuel Farhi (tragically passed away in July 2020.) |
| Abstract: | We investigate the effects of input variety creation and destruction on both micro- and macroeconomic outcomes using detailed data from Belgium. Our microeconomic analysis establishes that the elasticity of downstream firms’ marginal cost to supplier separation captures the area under the input demand curve, and this elasticity can be utilized to calibrate love-of-variety and Schumpeterian models. Empirically, we estimate that marginal costs rise by 0.6% for every 1% of suppliers lost. Our macroeconomic analysis develops a growth-accounting framework that captures the role of supply chain churn for aggregate growth. Using firm-level production network data and estimated microeconomic elasticities, we show that supplier churn can plausibly account for a large portion of the trend component of growth in aggregate productivity. Our findings highlight the crucial role of input entry and exit in driving economic growth. |
| Keywords: | growth, churn, exit, entry |
| JEL: | D21 D22 E10 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202310-443&r=gro |