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on Economic Growth |
| By: | José Pedro Pontes |
| Abstract: | We try to explain main empirical regularities of the distribution of higher education attainment across regions by using a theoretical framework inspired by Uzawa (1965)’s neoclassical growth model and Lucas (1988)’s view of positive externalities of education. We rationalize the strong correlation between educational attainment and regional accessibility, the relative importance of public universities in less accessible areas and the smaller regional variation in schooling rates shown by the public universities as compared with private establishments. |
| Keywords: | Higher Education, University, Accessibility, Market Potential, Endogenous Technical Progress |
| JEL: | I20 O40 R10 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03292024&r= |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Vezzulli, Andrea |
| Abstract: | Despite the remarkable growth in frontier technology adoption (FTR) in the Global South, empirical evidence concerning their socioeconomic impacts in the context of Africa is hard to find. This study, therefore, employs macro data for a sample of 39 African countries to bridge three pressing gaps in the growth literature. First, we examine the impact of FTR on economic growth. Second, the study assesses whether FTR and egalitarian democracy synergistically enhance economic growth. Third, this study examines the heterogeneous effects of FTR across growth quantiles. Robust evidence, based on the dynamic system-GMM and the method of moments quantile regression, reveals the following: first, FTR promotes economic growth, but the effect is modest; second, egalitarian democracy amplifies the growth-enhancing impact of FTR, but only at higher thresholds of egalitarianism. Third, although FTR is growth-enhancing across all growth quantiles, the effect diminishes from the 1st to the 9th quantile. However, in the presence of egalitarian democracy, FTR significantly enhances growth across all growth quantiles from the 1st to the 9th. We conclude that progress in egalitarian democracy and investments for enhancing FTR are crucial for economic growth in Africa. |
| Keywords: | Africa, Economic growth, Democracy, Egalitarian democracy, Frontier technology readiness |
| JEL: | O31 O38 O55 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:298787&r= |
| By: | Sulehri, Fiaz Ahmad; Audi, Marc; Ali, Amjad |
| Abstract: | Controlling ecological deterioration is critical for the well-being of current and future generations, as it ensures a sustainable environment that promotes health, productivity, and the general quality of life. This study investigates the interplay between innovation, economic growth, and ecological impact across 18 countries, which collectively account for approximately 64% of global greenhouse gas emissions, using data from 2000 to 2022. Using the structural equation modeling approach, we investigate how the regulatory framework moderates and economic growth mediates these complex relationships. The empirical results reveal that innovation positively impacts economic growth, but this effect is statistically insignificant. Similarly, economic growth contributes significantly to environmental degradation. Moreover, the interaction between innovation and the regulatory framework leads to a decline in economic growth. Furthermore, innovation alone in a direct relationship, reduces ecological impact significantly but innovation and regulatory framework jointly increase ecological impact. Economic growth plays a significant role in mediating the relationship between the interaction term and ecological impact, but it does not significantly influence the relationship between innovation and ecological impact, according to empirical evidence. These insights are vital for policymakers to develop strategies that encourage sustainable growth and innovation. |
| Keywords: | Ecological Impact, Economic Growth, Innovation, Regulatory Framework |
| JEL: | C38 F64 O44 Q55 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121288&r= |
| By: | zhao, guo |
| Abstract: | Three key economic issues are the convergence debate, the middle-income trap, and the East Asian Miracle. Here we show that the standard Solow-Swan growth model in discrete time can simultaneously account for these key economic issues if in addition the no arbitrage constraint is imposed on the growth of total wealth. Under perfect arbitrage, club convergence is a pervasive feature of dynamic economies with realistic structural characteristics, but conditional converge may emerge as a limiting case. Following the standard Solow-Swan growth, a middle-income economy may make a miracle growth at the cost of structural unemployment if the rate of saving and investment exceed certain threshold level. These findings deepen our understanding of the impacts of capital accumulation on the dynamic evolution of economic system. |
| Keywords: | Convergence Debate, Middle-Income Trap, East Asian Miracle |
| JEL: | D2 E2 |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121378&r= |
| By: | Sulehri, Fiaz Ahmad; Ali, Amjad |
| Abstract: | The concept of sustainable development holds immense importance for both current and future generations. This study investigates the manner in which economic growth acts as a mediator in the relationship between sustainable development and the regulatory framework. We have utilized the structural equation modeling technique to investigate the direct and indirect impacts of exogenous and endogenous variables. We executed this investigation using a sample of 24 countries that accounted for about 65% of global greenhouse gas emissions between 2000 and 2019. According to empirical results based on direct effects, the regulatory framework hinders sustainable development and economic growth. The empirical findings indicate that the regulatory framework has a noteworthy and favorable indirect influence on sustainable development, with economic growth serving as a mediating factor. Furthermore, because of the positive indirect effect, the regulatory framework's negative direct effect on sustainable development outweighs its total adverse effect. In the end, legislators should give utmost importance to creating a balanced regulatory framework that promotes economic expansion while incorporating concepts of environmental, social, and economic sustainability to ensure the well-being of present and future generations. |
| Keywords: | Regulatory Framework, Economic Growth, Sustainable Development, Structural Equation Model |
| JEL: | K32 O44 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121285&r= |
| By: | Mladjan, Mrdjan M.; Nikolova, Elena; Ponomarenko, Olga |
| Abstract: | Institutions, defined as "the rules of the game in society", drive economic growth and prosperity. Institutions often arise from long-term processes influenced by geography, major historical events, culture, and, less commonly, religion. This chapter reviews the available evidence to demonstrate that religion has a strong effect on formal (laws, judicial and financial systems, contract enforcement) and informal (traditions, taboos, codes of conduct) institutions. Church-state relationships hundreds of years ago affect informal institutions like work ethic, preferences for rationality or spirituality, and attitudes towards innovation. In terms of formal institutions, there is evidence of causal effects of religious doctrines on institutions such as democratic government, independent courts, private property, or inheritance rights. Moreover, there is evidence that formal and informal institutions also influence religious institutions and doctrines. The chapter also reviews the theories of religious markets and secularization to conclude that neither of them are well positioned to predict how the relationship between religions and institutions will unfold in the future. The chapter then enumerates several empirical challenges inherent in the study of religion and institutions, and proposes way to overcome them. It also suggests several fruitful areas for future research, including using more fine-grained data and developing new theoretical tools, identifying mechanisms through both quantitative and qualitative data, and expanding the research focus beyond Christian denominations in order to focus on non-Western religions. |
| Keywords: | religion, institutions, culture |
| JEL: | Z12 D02 O43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1447&r= |
| By: | Amaral, Pedro; Rivera-Padilla, Alberto |
| Abstract: | Countries with high levels of human capital also tend to be technologically advanced. We study whether modeling technology adoption can significantly amplify the importance of human capital differences in accounting for cross-country income gaps. We document that schooling is positively and robustly correlated with measures of technology adoption and usage, and negatively correlated with the prevalence of traditional forms of production, where technology adoption is limited, and productivity is lower. Motivated by this, we build a general equilibrium model with human capital investment, endogenous occupational choices, and technology adoption. Production takes place either in a traditional sector, where technology adoption is absent, or in a modern sector, where managers hire a workforce and optimally choose technology. Economies differ in terms of schooling levels by occupation and in the size of barriers to technology adoption. These differences, working together, result in a factor of 6 between US income and that of the bottom quartile of countries. Schooling differences on their own result in a factor of 3.5, compared to a factor of 2 in a one-sector version of the model where technology choices are absent. |
| Keywords: | Human capital; Technology adoption; Cross-country income differences |
| JEL: | J24 O11 O33 O41 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121157&r= |
| By: | Nabil Daher (Université Paris Nanterre, EconomiX) |
| Abstract: | Over the past three decades, natural disasters have become increasingly frequent and intense, posing significant risks to economic activity, particularly in developing countries. This paper investigates the impact of natural disasters on economic growth, focusing on the 10th percentile of GDP growth to capture the worst recessions experienced by countries. Using the Quantile Local Projections (QLP) method on a panel of developing countries, we explore whether these disaster shocks worsen economic downturns and delay recoveries. Our findings reveal that natural disasters tend to exacerbate severe economic contractions in developing countries, causing a lasting decrease in the lower tail of GDP growth distribution. This effect is especially pronounced in the agricultural and industrial sectors, with the services sector showing a less persistent response. Moreover, high-income developing countries and those with better political institutions better counteract the adverse effects of natural disasters and exhibit greater resilience when output is extremely low. |
| Keywords: | Natural Disasters, quantile local projections, development economics |
| JEL: | E |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.8&r= |