nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2015‒12‒08
four papers chosen by
Karl Petrick
Western New England University

  1. The statistics on poverty and the new World Bank goals of poverty eradication and shared prosperity By Riccardo Settimo
  2. Porter vs Krugman: History, Analysis and Critique of Regional Competiveness By Psofogiorgos, Nikolaos - Alexandros; Metaxas, Theodore
  3. A New proposal for the Bank of South By Daniel Munevar; Marcos Jorge Teixeira Reis
  4. Making China the transition to a low-carbon economy: Key challenges and responses By ZhongXiang Zhang

  1. By: Riccardo Settimo (Bank of Italy)
    Abstract: Poverty data have gained importance since the adoption, in April 2013, of the new strategic targets by the World Bank (WB), namely to reduce the share of people living in extreme poverty to 3 per cent of the global population by 2030 (poverty eradication) and to increase the average incomes of the bottom 40 per cent of the population in each country (shared prosperity). The adoption of these two goals marks a significant shift for the WB, since for the first time, it commits to a specific poverty reduction target and pays explicit attention to issues related to inequality. First, the paper describes the WB approach to estimating poverty rates – amalgamating a vast amount of data collected from many different sources – and highlights the most critical aspects. It then goes on to illustrate the two WB targets. One important message is that if income inequality remains constant, the target of poverty eradication can be only be reached if there are very high growth rates, which is unrealistic for many countries. Efforts in favour of shared prosperity are therefore instrumental to eradicating poverty.
    Keywords: poverty, world bank, shared prosperity
    JEL: I32 O15
    Date: 2015–09
  2. By: Psofogiorgos, Nikolaos - Alexandros; Metaxas, Theodore
    Abstract: The subject of this study is to determine the competitiveness through an interdisciplinary approach of the theories of the new economic geography and regional economy. This article describes in detail the theory of competitiveness, which is defined differently by many authors, with particular emphasis on opposing views of Michael Porter and Paul Krugman. One of the first writers who stressed the importance of the geographical position was Michael Porter. In his model, the author emphasizes that the geographical concentration of firms enhances productivity, innovation and export sector. Following this theory, many authors have focused on the research of the "location problem ", which led to better connection of economics and geography. The result of these activities is the new guidelines that have been developed, such as the new theory of economic geography and regional economy. The new economic geography is mainly related to the Nobel prized, Paul Krugman, whose theories often conflict with those of Porter. This study initially sets out the views of both authors, in terms of competitiveness and then attempts to make a comparative analysis between the theories they developed.
    Keywords: Michael Porter, Paul Krugman, Regional Competitiveness
    JEL: R11 R19 R38
    Date: 2015–12
  3. By: Daniel Munevar (School of Public Affairs, University of Texas at Austin); Marcos Jorge Teixeira Reis (Centro de Prospectiva Estrategica, Instituto de Altos Estudios Nacionales)
    Abstract: This paper seeks to discuss a proposal regarding a new multilateral institution in Latin America, the Bank of South. It presents the original plan of the Bank, made in 2007 and its recent developments stressing the problems faced during its implementation. It concludes presenting a new proposal for the bank to make it better suited to foster the commercial and financial integration of its members. Instead of a standard Multilateral Development Bank as in the current proposal, the authors propose a radically different design for the Bank: National branches making loans in their local currency to SMEs engaged in regional trade. The activities of the national branches of the Bank of South would be supported by private financial institutions, which would undertake the risk assessment process, and by the respective central bank, which would re-discount or securitize the loans provided by the bank.
    Keywords: Bank of South, Multilateral Development Bank, Integration of Latin America
    JEL: F02 F36
    Date: 2015–12
  4. By: ZhongXiang Zhang (College of Management and Economics, Tianjin University)
    Abstract: China has realized that for its own sake and from the international community’s perspective, it cannot afford to continue along the conventional path of encouraging economic growth at the expense of the environment. Accordingly, the country has placed ecological goals at the same level of priority as policies on economic, political, cultural and social development. Specifically, to meet the grand goal involves not only capping China’s nationwide coal consumption to let it peak before 2020 and carbon emissions peak around 2030, but also putting in place a variety of flagship programs and initiatives, prices and policies. This paper argues that the 2030 carbon emissions peak goal is ambitious but achievable and concludes by arguing why China’s anti-pollution outcomes this time might be different from the previous ones.
    Keywords: low-carbon economy; carbon emissions peaks; coal consumption; carbon pricing; energy prices; resource tax reform; renewable energy; China
    JEL: H23 P28 Q42 Q43 Q48 Q53 Q54 Q58
    Date: 2015–11

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