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on Economic Growth |
| By: | Ahmad, Mahyudin; Hall, Stephen G.; Law, Siong Hook; Nayan, Sabri |
| Abstract: | Despite the extensive literature on the relationship between financial development (FD) and economic growth, previous studies have largely overlooked the potential spatial interdependence between countries. To address this gap, this paper employs spatial Durbin estimation that explicitly captures the spillover effects of FD and institutions on a panel dataset of 56 emerging countries over a 30-year period. The findings reveal a significant impact of FD on economic growth, although no evidence of its threshold effect. Institutions play a critical role in shaping the FD-growth relationship, with political institutions being the most influential in driving economic growth both within and across neighboring countries. On the other hand, improvement in economic institutions moderates the growth-effect of FD. Financial institutions drive the within-country effect of FD on growth, while the spillover effect primarily stems from financial markets in neighboring countries. The robustness of the findings is confirmed through a battery of tests. In conclusion, this empirical study offers valuable insights into the complex relationship between financial development, institutions, and economic growth in emerging countries. By considering spatial interdependencies and the role of institutions, policymakers can devise effective strategies to harness the positive effects of financial development and create an enabling environment for sustained and inclusive economic growth. |
| Keywords: | Economic growth, spillover effects, financial development, institutional quality, spatial Durbin model. |
| JEL: | C31 O16 O43 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118966&r=gro |
| By: | de la Fonteijne, Marcel R. |
| Abstract: | In 2018 we adapted the implementation of technical growth to correct the Solow growth model. Within this article, we delve into some of the consequential aspects of this Modern Universal Growth Theory (MUGT) with respect to homogeneous degree 1 CES production functions. In particular, we demonstrate, that the well known Cobb Douglas and CES production functions can serve as the fi rst and second order approximation of any arbitrary production function, respectively. Furthermore, contrary to what you can find in literature, we show that technical progress in the MUGT is always labor saving. Also interesting is the point that even a negative elasticity of substitution is allowed. |
| Keywords: | Capital and Labor Augmented Technical Progress, Growth Model, Maximum Profit Condition; Production Functions; General Technological Progress; Capital-Labor-mix; Estimation of the Elasticity of Substitution; DSGE; Total Factor Productivity; Solow model; Hicks; Harrod; Labor Saving |
| JEL: | E00 E20 E23 E24 |
| Date: | 2023–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118888&r=gro |
| By: | Amy Smaldone; Mark L. J. Wright |
| Abstract: | The world’s population had been doubling every 47 years to reach 8 billion today. But it is expected to peak at 10.5 billion before declining by century’s end. |
| Keywords: | world population; global population; fertility rates; life expectancy at birth; population aging |
| Date: | 2023–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:95792&r=gro |
| By: | Lee, Munseob (University of California, San Diego); Shin, Yongseok (Washington University, St. Louis) |
| Abstract: | We analyze the evolution of the plant size distribution, static allocative efficiency, and business dynamism of the Korean manufacturing sector during its growth miracle (1967–2000) and the subsequent slowdown since 2000. The average plant size has an inverse-U pattern over time, uncorrelated with the level or the growth rate of value-added per worker. The measure of static misallocation decreases modestly until 1983, consistent with the fast economic growth, but increases substantially afterwards, without a corresponding negative trend in manufacturing productivity. These results are seemingly at odds with existing cross-country evidence on the relationship between plant size and economic development, as well as the one between static allocative efficiency and development. In addition, business dynamism, measured by either churning or responsiveness to shocks, diminished significantly since 2000, coinciding with the slowdown in manufacturing productivity. Our findings call for more systematic research on how economic growth correlates with establishment/firm size distribution and with static and dynamic allocative efficiency. |
| Keywords: | size distribution, misallocaton, business dynamism |
| JEL: | O14 O47 O53 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16553&r=gro |