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on Economic Growth |
| By: | Fabio Mariani (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain); Marion Mercier (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Luca Pensieroso (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain) |
| Abstract: | This paper studies the interplay between left-handedness and economic development, thereby contributing to our understanding of the relationship between evolutionary forces, human diversity and growth. We propose a novel theoretical framework in which economic development influences the prevalence of left-handedness through structural change and a genetic mechanism driven by differential fertility. In particular, the emergence of the industrial sector puts left-handers at a reproductive disadvantage, because of their lower manual ability and wages. This fertility differential changes sign as soon as the income-fertility relationship is reversed, and eventually fades away when the rise of human capital makes manual skills irrelevant. Our model thus explains the decline and subsequent recovery of left-handedness observed over the last few centuries in the Western world. We further explore the possibility that left-handedness in turn influences growth: despite their lower productivity in manual tasks, left-handers may enhance technological progress through cognitive skills that are conducive to innovation, and through their contribution to the diversity of the workforce. This implies that the link between handedness and economic performance varies across stages of development. We present empirical evidence that lends credence to the core differential-fertility mechanism of our model and suggests that left-handedness can positively contribute to growth, once the economy has reached a sufficiently high level of human capital. |
| Keywords: | Handedness, Economic growth, Evolution, Diversity, Unified Growth Theory |
| Date: | 2022–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04360369&r=gro |
| By: | Thomas Barbiero (Department of Economics, Toronto Metropolitan University, Toronto, Canada); Haiwen Zhou (Department of Economics, Old Dominion University, Norfolk, USA) |
| Abstract: | China and India are both late comers to industrialization. Both adopted similar economic development strategies after World War II, but the per capita GDP diverged significantly in the last 40 years. While economic growth and development have many components, we explain the difference in economic performance by emphasizing the difference in state capacity in the two economies. A country’s state capacity is affected by culture and history. China established a unified language and culture two thousand years ago that enabled it to develop strong state capacity. With a strong state capacity, China made crucial investments in infrastructure and in key heavy industries and developed technological capabilities to help start and sustain growth. India, on the other hand, is a country segmented by religion, caste, and language which has hindered the development of effective state capacity, and thus complementary state investments to spur economic growth. Moreover, India has up to now relied more heavily on expansion of its service sector compared to China, which has hindered its exports, a crucial element that helped China’s economy. India’s future industrialization crucially depends on national integration and concomitant strengthening of state capacity. |
| Keywords: | Economic development; state capacity; technological capabilities; political economy; economy of China |
| JEL: | O10 O53 O57 P52 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:rye:wpaper:wp086&r=gro |
| By: | Sébastien Fontenay; Paula Eugenia Gobbi; Marc Goñi |
| Abstract: | Fertility in Sub-Saharan Africa is the highest in the world and it should continue boosting population growth for decades to come. In this paper, we showcase a new driver of fertility decisions that has been largely overlooked by demographers and economists: inheritance rules. In particular, we demonstrate that impartible inheritance (i.e. transmission of the deceased's property to a single heir) does not incentivize households to limittheir number of children. Our main empirical strategy links data from the past on deep-rooted inheritance customs for more than 800 ethnic groupswith modern demographic surveys covering 24 countries in Sub-Saharan Africa. Our spatial Regression Discontinuity Design exploiting ancestralborders reveals that belonging to an ethnic group with impartible inheritance customs increases fertility by 0.85 children per woman. We alsoestablish, both theoretically and empirically, that the fertility differences across inheritance rules are larger in lands that are less labor intensive. |
| Keywords: | Fertility, Inheritance, Sub-Saharan Africa |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/367474&r=gro |
| By: | Almelhem, Ali (World Bank); Iyigun, Murat (University of Colorado, Boulder); Kennedy, Austin (University of Colorado, Boulder); Rubin, Jared (Chapman University) |
| Abstract: | Using textual analysis of 173, 031 works printed in England between 1500 and 1900, we test whether British culture evolved to manifest a heightened belief in progress associated with science and industry. Our analysis yields three main findings. First, there was a separation in the language of science and religion beginning in the 17th century. Second, scientific volumes became more progress-oriented during the Enlightenment. Third, industrial works—especially those at the science-political economy nexus—were more progress-oriented beginning in the 17th century. It was therefore the more pragmatic, industrial works which reflected the cultural values cited as important for Britain's takeoff. |
| Keywords: | language, religion, science, political economy, progressiveness, Enlightenment, industrial revolution |
| JEL: | C81 C88 N33 N63 O14 Z11 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16674&r=gro |
| By: | Yuxin Hu |
| Abstract: | This article presents an analysis of China's economic evolution amidst demographic changes from 1990 to 2050, offering valuable insights for academia and policymakers. It uniquely intertwines various economic theories with empirical data, examining the impact of an aging population, urbanization, and family dynamics on labor, demand, and productivity. The study's novelty lies in its integration of Classical, Neoclassical, and Endogenous Growth theories, alongside models like Barro and Sala-i-Martin, to contextualize China's economic trajectory. It provides a forward-looking perspective, utilizing econometric methods to predict future trends, and suggests practical policy implications. This comprehensive approach sheds light on managing demographic transitions in a global context, making it a significant contribution to the field of demographic economics. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.11806&r=gro |
| By: | Michele Battisti; Antonio Francesco Gravina; Andrea Mario Lavezzi; Giuseppe Maggio; Giorgio Tortorici |
| Abstract: | What is the role of a society's wealth in influencing educational choices? Although the theoretical literature provides several possible answers, from an empirical viewpoint answering question is not straightforward. Indeed, nowadays such an issue cannot be typically inspected before starting the college, due to the compulsory public education laws in force at lower education levels in nearly all countries. We investigate this problem by employing a unique dataset covering Sicilian wealth shares and primary school enrollment in the year 1858 at municipal level. This represents an ideal setting to study our research question as, at that time, schools at the lowest grade levels were available in almost each Sicilian municipality, but their attendance was not compulsory. Our identification strategy relies on the historical heritage of seismic events in shaping mid-19th century land and property distribution, which allowed for the emergence of a class of "wealthy" households. Results of the analysis show that, even in an almost entirely agrarian society, household wealth played a decisive role in educational choices: an increase of 10 |
| Keywords: | Wealth; Education; Long-run Development; Institutions; Human Capital |
| JEL: | I24 O15 N93 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2024/302&r=gro |