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on Economic Growth |
| By: | Luis A. Alcalá (UNSL-CONICET) |
| Abstract: | This paper studies a discrete-time version of the Lucas-Uzawa endogenous growth model with physical and human capital. Equilibrium existence is proved applying tools of dynamic programming with unbounded returns. The proofs rely on properties of homogeneous functions and also apply well-known inequalities in real analysis, seldom used in the literature, which significantly simplifies the task of verifying certain assumptions that are rather technical in nature. |
| Keywords: | Endogenous Growth, Equilibrium, Human capital, Dynamic Programming |
| JEL: | C61 C63 O41 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:298&r=gro |
| By: | Mohamad Adhami; Mark Bils; Charles I. Jones; Peter J. Klenow |
| Abstract: | Economic growth is typically measured in per capita terms. But social welfare should arguably include the number of people as well as their standard of living. We decompose social welfare growth — measured in consumption-equivalent (CE) units — into contributions from rising population and rising per capita consumption. Because of diminishing marginal utility from consumption, population growth is scaled up by a value-of-life factor that exceeds one and empirically averages nearly 3 across countries since 1960. Population increases are therefore a major contributor, and CE welfare growth around the world averages more than 6% per year since 1960 as opposed to 2% per year for consumption growth. Countries such as Mexico and South Africa rise sharply in the growth rankings, whereas China, Germany, and Japan plummet. These results are robust to incorporating time use and fertility decisions using data from the U.S., Mexico, the Netherlands, Japan, South Africa, and South Korea. Falling parental utility from having fewer kids is roughly offset by increases in the “quality” of kids associated with rising time investment per child. |
| JEL: | E01 O47 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31999&r=gro |
| By: | Chowdhury, Emon |
| Abstract: | This paper examines the impact of commodity markets on the economies of developing countries. Commodity markets play a crucial role in shaping the economic landscape of these nations by contributing to export earnings, GDP, and overall economic growth. However, the impact is not straightforward, as price volatility and fluctuations pose risks to commodity-dependent economies. Reliance on commodities hampers investment diversification, technological progress, and human capital development. Successful examples of economic transformation through diversification and innovation can guide developing countries, but challenges arise from corruption, political instability, and inadequate institutions. Factors influencing the evolution of commodity markets in developing countries include population and income growth, technological innovation, globalization, and trade liberalization. Despite challenges, opportunities exist through technological advancements, diversification, regional integration, and sustainable production practices. The impact of commodity markets on economic growth is complex, with both positive and negative effects, as exemplified by diverse outcomes among different regions and groups of countries. To promote sustained economic growth, developing countries should diversify their economies, invest in other sectors, and prioritize innovation and human capital development. |
| Keywords: | Commodity markets; Developing countries; Economic growth; Price volatility; Diversification |
| JEL: | F1 H3 H30 K2 |
| Date: | 2023–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119462&r=gro |
| By: | Ben Yedder, Nadia; El Weriemmi, Malek; Bakari, Sayef |
| Abstract: | This paper extensively explores the intricate interplay between domestic investments, exports, and the long-term economic growth of Angola. By leveraging a robust dataset spanning from 2002 to 2022, we apply rigorous econometric methods, including cointegration analysis and the Autoregressive Distributed Lag (ARDL) model, to unveil the subtle dynamics among these crucial economic indicators. Contrary to conventional expectations, our analysis uncovers a surprising result: there is no apparent impact of domestic investments and exports on the sustained economic growth of Angola. These findings challenge established economic paradigms and emphasized the imperative need for a thorough reassessment of existing economic policies within the country. |
| Keywords: | Domestic Investment, Exports, Economic Growth, ARDL Model, Angola |
| JEL: | C13 E22 F14 O47 O55 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119480&r=gro |
| By: | Pratik Thakkar (Indira Gandhi Institute of Development Research); Kausik Gangopadhyay (Indian Institute of Management); Rupayan Pal (Indira Gandhi Institute of Development Research) |
| Abstract: | In a trade-connected world, an adverse impact on economic growth on account of temperature shock in one economy may have a spillover effect on other economies. The current study quantitatively evaluates the impact of temperature shock on economic growth, during 1971--2019 for 168 economies, through direct and spillover channels. Our findings indicate that, while a temperature shock engenders an overall adverse effect on economic growth of all economies, only tropical economies experience a direct adverse effect, which is then transmitted to their non-tropical trade partners. The spillover effect is significant and more substantial for non-tropical economies than their direct effect. Among the sectors, the non-agriculture sector is sensitive to the spillover effect. Finally, the overall adverse effects on poor and rich economies hinge upon the direct and spillover effects, respectively. In our analysis, except for rich tropical economies, all experience an overall adverse effect. |
| Keywords: | Temperature shock, Climate change, Direct effect, Spillover effect, Economic growth |
| JEL: | F14 F18 O13 O14 Q54 Q56 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2023-014&r=gro |