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on Economic Growth |
| By: | Shi, Xiangyu |
| Abstract: | Why China was not the origin of the Industrial Revolution but rose from imperial dynasties and experienced a growth miracle in the past four decades? We find that its root is China's imperial examination system (keju), which explains the fall and rise of historical, modern, and contemporary China. Using three instrumental variable approaches, we find that keju significantly facilitates contemporary innovation and business creation, by raising the contemporaneous level of human capital, shaping an innovative and productive culture, and fostering efficient institutions. Keju had positive effects on the development of modern China before the People's Republic of China era, but its effects were most salient after the economic reform in 1978. In historical periods, keju diverted talents away from scientific/technological sectors, leading to sluggish development in the Ming and Qing dynasties. |
| Keywords: | imperial examination system, human capital, culture, institution, innovation, business creation, China |
| JEL: | D2 E2 J2 N3 O1 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121348 |
| By: | Batabyal, Amitrajeet; Kourtit, Karima; Nijkamp, Peter |
| Abstract: | We analyze economic growth in a stylized, high-tech region A with two key features. First, the residents of this region are high-tech because they possess skills. In the language of Richard Florida, these residents comprise the region’s creative class and they possess creative capital. Second, the region is high-tech because it uses an artificial intelligence (AI)-based technology and we model the use of this technology. In this setting, we first derive expressions for three growth metrics. Second, we use these metrics to show that the economy of A converges to a balanced growth path (BGP). Third, we compute the growth rate of output per effective creative capital unit on this BGP. Fourth, we study how heterogeneity in initial conditions influences outcomes on the BGP by introducing a second high-tech region B into the analysis. At time t=0, two key savings rates in A are twice as large as in B. We compute the ratio of the BGP value of income per effective creative capital unit in A to its value in B. Finally, we compute the ratio of the BGP value of skills per effective creative capital unit in A to its value in B. |
| Keywords: | Artificial Intelligence, Creative Capital, Regional Economic Growth, Skills |
| JEL: | O33 R11 |
| Date: | 2023–12–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121328 |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael |
| 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 P48 Q01 |
| Date: | 2024–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121247 |
| By: | Antonio Savoia; Kunal Sen; Abrams M.E. Tagem |
| Abstract: | There is a broad agreement that political and economic institutions matter for long-term development. Yet relatively little is known as to how to adopt good quality institutions and reform weak or poor institutions, for which one needs to know how institutions change. This paper provides a systematic econometric investigation of long-run patterns of institutional change, offering panel time series evidence that allows for different forms of country-specific heterogeneity and cross-section dependence. |
| Keywords: | Institutions, Institutional change, Rule of law, Property rights, Constraints on the executive |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-39 |
| By: | Sulehri, Fiaz Ahmad; Ali, Amjad |
| Abstract: | Sustainable development is of great significance for present and future generations. This study examines the mediation role of economic growth on sustainable development through country risk. We have employed the structural equation modeling (SEM) technique to examine the direct and indirect effects of exogenous and endogenous variables. We conducted this analysis using a sample of 24 countries that contributed approximately 65% of global greenhouse gas (GHG) emissions from 2000 to 2019. The empirical analysis based on direct effects establishes that country risk reduces economic growth and sustainable development. Interestingly, the empirics of indirect effects reveal that country risk has a positive and significant indirect impact on sustainable development by using economic growth as a mediator. Moreover, the negative direct effect of country risk on sustainable development is greater than the total negative effect due to the positive indirect effect. Finally, policymakers should minimize country risk to promote economic growth, ensuring environmental, social, and economic sustainability for the safety of current and future generations. |
| Keywords: | Country Risk, Economic Growth, Sustainable Development, Structural Equation Model |
| JEL: | F30 O44 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121290 |
| By: | de Bromhead, Alan (University College Dublin); Kenny, Seán (Department of Economic History, Lund University) |
| Abstract: | This paper constructs the first estimates of Irish regional GDP over the twentieth century and traces the relative economic performance of Ireland’s regions since independence. Using an array of data sources available at a county level, output inAgriculture, Industry and S ervices in benchmark census years is estimated. Applying a variety of alternative measures, we find a reduction in regional inequality over the period that is similar to the broader European pattern. Regional convergence over the period 1926-1991 was driven by both within-sector convergence in productivity and structural change. Our paper helps to understand the regional dimensions to Irish economic development from the birth of a newly independent state up to the eve of Ireland's growth 'miracle' in the 1990s, when the first official efforts were initiated to construct these figures. Finally, we connect our estimates to these official figures to examine GDP at the level of NUTS regions up to 2021. |
| Keywords: | Regional GDP; Ireland; Economic History; Inequality; Economic Growth |
| JEL: | N34 N94 O18 R11 R12 |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:luekhi:0259 |