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on Economic Growth |
| By: | Giorgio Fabbri (Univ. Grenoble Alpes, CNRS, INRA, Grenoble INP, GAEL, 38000 Grenoble, France); Silvia Faggian (Department of Economics, Ca’ Foscari University of Venice, Italy); Giuseppe Freni (Department of Business and Economics, Parthenope University of Naples, Italy) |
| Abstract: | This study examines the dynamics of capital stocks distributed among several nodes, representing different sites of production and connected via a weighted, directed network. The network represents the externalities or spillovers that the production in each node generates on the capital stock of other nodes. A regulator decides to designate some of the nodes for the production of a consumption good to maximize a cumulative utility from consumption. It is demonstrated how the optimal strategies and stocks depend on the productivity of the resource sites and the structure of the connections between the sites. The best locations to host production of the consumption good are identified per the model’s parameters and correspond to the least central (in the sense of eigenvector centrality) nodes of a suitably redefined network that combines both flows between nodes and the nodes’ productivity. |
| Keywords: | Capital allocation, Production externalities, Network spillovers, Economic centrality measures |
| JEL: | C61 D62 O41 R12 |
| Date: | 2024–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2024011 |
| By: | Bart J. Wilson (Smith Institute for Political Economy and Philosophy & Economic Science Institute, Chapman University) |
| Abstract: | The wealth of the modern world is a natural historical marvel. Explaining it has traditionally been the purview of economic historians, as exemplified by the recent book How the World Became Rich by Mark Koyama and Jared Rubin. Economic historians, though, tend to only ask process-oriented “how†questions and “by what means†questions of the Great Enrichment. The eight co-authors of Explaining Technology, who are not economic historians, engage the debate asking a different question. Their goal is to explain the exponential shape of our enrichment with a model of the combinatorial evolution of technology. With an eye toward how we ask questions of the Great Enrichment, the essay proposes broadening our inquiries to include questions typically overlooked in modern economic science, namely, “What form does it take? and “For what purpose?†|
| Keywords: | economic growth, world GDP, Industrial Revoluton, technological progress |
| JEL: | A12 N10 O30 O40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:chu:wpaper:24-17 |
| By: | Donni Fajar Anugrah (Bank Indonesia); Aryo Sasongko (Bank Indonesia); Wahyoe Soedarmono (Sampoerna University); Andi Tiara Putri Marasanti (Bank Indonesia) |
| Abstract: | The foundation of a strong and resilient economy can be done through implementing accelerated policy in various economic sectors to keep the growth trends positive and sustainable. Thus, one of the things that can promote sustainable growth is conducting a comprehensive study about the related topic. Using literature survey method, this study aims to serve a comprehensive literature review from internal Bank Indonesia, and to identify research gaps between studies to help further research. This study mainly discusses and analyses 123 research conducted by Bank Indonesia from 1993 to 2022. These prior findings explained that Indonesia’s economic growth has consistently been promoted by capital, labour, and innovation. Both human capital and research and development (R&D) also positively boost economic growth. Furthermore, Bank Indonesia has also conducted extensive research about growth diagnostic and growth strategy. To complete the findings, this study also included previous research about macroeconomic modelling arranged by Bank Indonesia. |
| Keywords: | Economic Growth, Macroeconomic Model, Literature Survey |
| JEL: | O40 O42 O47 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp082023 |
| By: | Patrick A. Imam; Jonathan R. W. Temple |
| Abstract: | Previous research suggests that economy-wide poverty traps are rarely observed in the data. In this paper, we explore a related hypothesis: low-income countries rarely improve their position relative to the US. Using finite state Markov chains, we show that upwards mobility is indeed limited. Since capital-output ratios are similar across countries, and human capital is also converging, the persistence of low relative income seems to originate in the persistence of low relative TFP. We study the dynamics of relative TFP and how they interact with absolute levels of human capital, casting new light on the future of convergence. |
| Keywords: | Economic growth; development accounting; low-income trap; poverty trap; income trap; state Markov chains; country sample; OECD member country; relative TFP; Total factor productivity; Human capital; Growth accounting; Income; Capital productivity; Global |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/229 |
| By: | Nonnis, Alberto; Roth, Felix; Bounfour, Ahmed |
| Abstract: | In this article, we highlight important differences in capital investment and capital stock in intangible assets between France and Germany, which we attribute to potential measurement issues between the two countries. Using data from the latest EUKLEMS/INTANProd release for the period between 1995 and 2020, we identify investment in software and databases, along with investment in organizational capital, as key drivers of these differences. Investment in software appears to be four times higher in France than in Germany, while organizational capital is about two and a half times larger in France. Given the comparable economic growth patterns of these two countries over recent decades, we believe these measurement discrepancies could have significant implications for understanding both past growth trends and future growth perspectives. |
| Keywords: | Intangible capital, Labour Productivity, Germany, France, EU |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:uhhhdp:18 |