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Sample records for economic growth theory

  1. The population factor in economic growth theory

    NARCIS (Netherlands)

    Meilink, H.A.

    1974-01-01

    Reviews briefly the role of population growth in economic growth theory and makes a few critical remarks on the applied methodology and the underlying assumptions. Emphasis is laid on the possible relationships between population and economic growth in the developing countries, but also Malthus'

  2. Growth Regression and Economic Theory

    NARCIS (Netherlands)

    Elbers, Chris; Gunning, Jan Willem

    2002-01-01

    In this note we show that the standard, loglinear growth regression specificationis consistent with one and only one model in the class of stochastic Ramsey models. Thismodel is highly restrictive: it requires a Cobb-Douglas technology and a 100% depreciationrate and it implies that risk does not

  3. Teaching Economic Growth Theory with Data

    Science.gov (United States)

    Elmslie, Bruce T.; Tebaldi, Edinaldo

    2010-01-01

    Many instructors in subjects such as economics are frequently concerned with how to teach technical material to undergraduate students with limited mathematical backgrounds. One method that has proven successful for the authors is to connect theoretically sophisticated material with actual data. This enables students to see how the theory relates…

  4. THE DEBATE OF THE MODERN THEORIES OF REGIONAL ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Alejandro Díaz-Bautista

    2014-07-01

    Full Text Available How do we explain the differences in economic growth in different parts of the nation and the world during the last sixty years? The objective of the study is to survey the traditional theories and models of regional economic growth. The growth literature to date has proposed several answers, included in the neoclassical models, exogenous technological progress and recent endogenous models that emphasize capital accumulation through externalities, learning by doing, or in conjunction with human capital. The paper looks at the recent theoretical and empirical debate related to the theory of regional economic growth.

  5. CONTEMPORARY ECONOMIC GROWTH MODELS AND THEORIES: A LITERATURE REVIEW

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    Ilkhom SHARIPOV

    2015-11-01

    Full Text Available One of the most important aspects of human development is the ability to have a decent standard of living. The secret of the "economic miracle" of many countries that have high standard of living, in fact, is simple and quite obvious. All these countries are characterized by high and sustained development of national economy, low unemployed population rate, growth of income and consumption. There is no doubt that economic growth leads to an increase in the wealth of the country as a whole, extending its potential in the fight against poverty, unemployment and solving other social problems. That is why a high level of economic growth is one of the main targets of economic policy in many countries around the world. This brief literature review discusses main existing theories and models of economic growth, its endogenous and exogenous aspects. The main purpose of this paper is to determine the current state of development of the economic growth theories and to determine their future directions of development.

  6. Endogenous Growth Paradigm. Implications for Economic Policy and Theory

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    Gabriel Staicu

    2006-10-01

    Full Text Available The role played by endogenous growth models in growth literature might be analyzed from two perspectives. In the first place, is it emphasized the necessity to replace the hypothesis of perfect competition with monopolistic competition in every mathematical model. Secondly, there is no scientific argument to accept the assumption of unconditional income convergence among countries. Taking into consideration empirical evidence and theoretical arguments, we tried to demonstrate that, once we accept the existence of increasing returns, there is only a little place for convergence all over the world. From this perspective, we can accept the hypothesis of convergence only for some categories of countries characterized by homogeneity as regards institutional arrangement and geographical position.

  7. Endogenous Growth Paradigm. Implications for Economic Policy and Theory

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    Liviu-Catalin Moraru

    2006-12-01

    Full Text Available The role played by endogenous growth models in growth literature might be analyzed from two perspectives. In the first place, is it emphasized the necessity to replace the hypothesis of perfect competition with monopolistic competition in every mathematical model. Secondly, there is no scientific argument to accept the assumption of unconditional income convergence among countries. Taking into consideration empirical evidence and theoretical arguments, we tried to demonstrate that, once we accept the existence of increasing returns, there is only a little place for convergence all over the world. From this perspective, we can accept the hypothesis of convergence only for some categories of countries characterized by homogeneity as regards institutional arrangement and geographical position.

  8. Political Ideonomy of Rostow’s Stages of Economic Growth Theory

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    M. Mozafarinia

    2016-05-01

    Full Text Available The conditions of success and reasons for failure of development strategies and plans, are among the most important “development studies” issues. This has been explained in different ways: for example, there is a strong relationship between the efficiency of development strategies and plans and development theories. Based on paradigmatic-implicative theory, which explains the relationship between development theories and political thought and considers the development theory as one of the practical implications of political thought, a condition for the success of development strategies and development plans can be found to be rooted in the political thought foundation. Therefore, in the present article we explore the political thought supporting Rostow’s Stages of Economic Growth theory, as one of the oldest and most important development theories which in the 1960s resulted in understanding development as “growth”. We use qualitative content analysis method to show that the political foundation of Rostow’s Stages of Economic Growth theory is based on the principle of “the most utility for the most people” in accordance with Bentham’s utilitarian political thought.

  9. ECONOMIC GROWTH AND DEVELOPMENT

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    Mladen M. Ivic

    2015-01-01

    Full Text Available Under Economic Growth mean constantly increasing volume of production in a country, or an increase in gross domestic product as the main quantitative indicators of production for a period of one year. Economic development is not only quantitative changes when it comes to the economic position of the country, but also qualitative changes (changing the economic structure, the emergence of new sectors and industries, new jobs, etc... They lead to a better and more complete satisfaction of all human needs. Production per capita is a measure of the ability of a society to achieve their goals of social and economic development, all in order to meet the constantly growing social needs. The increase in output per capita in economic theory is expressed as economic growth, without which no economic development, but does not have any economic growth to be a function of economic development.

  10. Economic theories of dictatorship

    OpenAIRE

    Alexandre Debs

    2010-01-01

    This article reviews recent advances in economic theories of dictatorships and their lessons for the political stability and economic performance of dictatorships. It reflects on the general usefulness of economic theories of dictatorship, with an application to foreign relations.

  11. Population growth and economic growth.

    Science.gov (United States)

    Narayana, D L

    1984-01-01

    This discussion of the issues relating to the problem posed by population explosion in the developing countries and economic growth in the contemporary world covers the following: predictions of economic and social trends; the Malthusian theory of population; the classical or stationary theory of population; the medical triage model; ecological disaster; the Global 2000 study; the limits to growth; critiques of the Limits to Growth model; nonrenewable resources; food and agriculture; population explosion and stabilization; space and ocean colonization; and the limits perspective. The Limits to Growth model, a general equilibrium anti-growth model, is the gloomiest economic model ever constructed. None of the doomsday models, the Malthusian theory, the classical stationary state, the neo-Malthusian medical triage model, the Global 2000 study, are so far reaching in their consequences. The course of events that followed the publication of the "Limits to Growth" in 1972 in the form of 2 oil shocks, food shock, pollution shock, and price shock seemed to bear out formally the gloomy predictions of the thesis with a remarkable speed. The 12 years of economic experience and the knowledge of resource trends postulate that even if the economic pressures visualized by the model are at work they are neither far reaching nor so drastic. Appropriate action can solve them. There are several limitations to the Limits to Growth model. The central theme of the model, which is overshoot and collapse, is unlikely to be the course of events. The model is too aggregative to be realistic. It exaggerates the ecological disaster arising out of the exponential growth of population and industry. The gross underestimation of renewable resources is a basic flaw of the model. The most critical weakness of the model is its gross underestimation of the historical trend of technological progress and the technological possiblities within industry and agriculture. The model does correctly emphasize

  12. An Application of the Harmonic Oscillator Model to Verify Dunning’s Theory of the Economic Growth

    OpenAIRE

    Marcin Salamaga

    2013-01-01

    Analogies with mechanisms ruling the natural world have oft en been sought in the course of economic phenomena.Th is paper is also an attempt to combine the physical phenomenon of a harmonious oscillator withthe theory of economic growth by J. H. Dunning (1981). In his theory, Dunning distinguished stages of economicgrowth of countries that imply the dependency between the investment position of countries and theirGDP per capita, while the graph presenting this dependency reminds a trajectory...

  13. Sustainability of the Chinese economic growth: a review from the institutional theory

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    Andrés Felipe Galindo Farfán

    2014-06-01

    Full Text Available The evolution of Chinese economic growth correlates with more or less inclusive politic and economic institutions at different points of history. At 13 century, China stood as the most technologically advanced nation in the world, where economic institutions motivates innovation and trade. In 20th century China experienced some industrialization policy by the regime, the Great Leap Forward, while in the last three decades economic growth has been pushed by an abundant workforce, implementation of economic reforms aimed at the market and promotion of domestic consumption. However, China has driven its economic activity into an authoritarian context, political and economic constraints where we could assume that sustainability of Chinese economic model with high growth rates tends to stagnate in the coming years, if political reforms are not carried out.

  14. Endogenous growth and economic capacity: Theory and empirical evidence for the NAFTA countries

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    Ignacio Perrotini-Hernàndez

    2017-09-01

    Full Text Available he paper sheds light on the relevance of economic capacity utilisation, capital accumulation and effective demand for the endogeneity of the natural growth rate with respect to normal, depressive and expansive growth regimes. Apart from contributing to fill this theoretical gap, a new model is developed for estimating the elasticity of the natural growth rate, with a specific focus on Canada, Mexico and the United States, throughout the pre-NAFTA and post-NAFTA periods. It is shown that growth regimes are related to the utilisation of economic capacity, while the elasticities of the expansive and depressive natural rates of growth vis-à-vis the normal rate are related to effective demand. It is also found that the normal, depressive and expansive natural rates of growth decreased since the inception of NAFTA, due to the concomitant decline in the growth rate of economic capacity. JEL Classification: O47, O51, O54

  15. Ecological economics and economic growth.

    Science.gov (United States)

    Victor, Peter A

    2010-01-01

    Boulding's 1966 paper on the economics of spaceship Earth established the framework for ecological economics and an understanding of economic growth. In ecological economics, economies are conceptualized as open subsystems of the closed biosphere and are subject to biophysical laws and constraints. Economic growth measured as an increase in real gross domestic product (GDP) has generally been associated with increases in the use of energy and materials and the generation of wastes. Scale, composition, and technology are the proximate determinants of environmental impacts. They are often reduced to two: scale (GDP) and intensity (impact per unit GDP). New work described in this paper defines "green" growth as intensity that declines faster than scale increases. Similarly, "brown" growth occurs when intensity declines more slowly than increases in scale, and "black" growth happens when both scale and intensity increase. These concepts are then related to the environmental Kuznets curve, which can be understood as a transition from brown to green growth. Ecological economics provides a macroperspective on economic growth. It offers broad policy principles, and it challenges the primacy of economic growth as a policy objective, but many important questions remain.

  16. Growth theory after Keynes, part II: 75 years of obstruction by the mainstream economics culture

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    Hendrik Van den Berg

    2014-05-01

    Full Text Available Part I of this essay explained the sequence of events that enabled the neoclassical paradigm to regain its dominant position in mainstream economics following serious challenges by ‘Keynesian’ economists. This second essay seeks to answer the question of why the economics profession was so willing to sustain the neoclassical paradigm in the face of the reality-based challenges by ‘Keynesian’ economists like Harrod and Domar. The answer is sought in the culture of economics, the history of science in general, and the study of power in the field of political economy. This article draws heavily on the work of the French sociologist Pierre Bourdieu, who divides culture into habitus (procedures and dispositions and doxa (more abstract beliefs and philosophies, in order to provide insight into how culture affects economic thinking. Bourdieu’s concept of symbolic violence helps to explain how a narrower neoclassical growth model was enthusiastically accepted as a replacement for the ‘Keynesian’ Harrod-Domar growth model. Financial and business interests clearly understood the power of culture and they used their accumulated wealth to support the neoliberal doxa and neoclassical habitus that would induce economists to willingly provide intellectual cover for policies that benefitted those financial and business interests. We conclude with a discussion on how the history of thought on economic development might have evolved if the Keynesian paradigm, and its dynamic Harrod-Domar model, had prevailed

  17. An Application of the Harmonic Oscillator Model to Verify Dunning’s Theory of the Economic Growth

    Directory of Open Access Journals (Sweden)

    Marcin Salamaga

    2013-09-01

    Full Text Available Analogies with mechanisms ruling the natural world have oft en been sought in the course of economic phenomena.Th is paper is also an attempt to combine the physical phenomenon of a harmonious oscillator withthe theory of economic growth by J. H. Dunning (1981. In his theory, Dunning distinguished stages of economicgrowth of countries that imply the dependency between the investment position of countries and theirGDP per capita, while the graph presenting this dependency reminds a trajectory of oscillating motion of adamped harmonic oscillator. Th is analogy has given inspiration to reinterpret the theory of economy on thegrounds of the mechanism of a physical model. In this paper, the harmonious oscillator motion equation wasadapted to the description of dependencies shown in the theory of economic growth by J. H. Dunning. Th emathematical solution of this equation is properly parameterised and parameters are estimated with the useof the Gauss-Newton algorithm. Th e main objective of this paper is to allocate a specifi c stage in the economicgrowth to each country on the basis of the values of parameter estimations of the proposed cyclical models ofchanges in the net investment indicator.

  18. Economic Selection Theory

    DEFF Research Database (Denmark)

    Knudsen, Thorbjørn

    2003-01-01

    principles of variation, continuity and selection, it is argued that economic selection theory should mimic the causal structure of neo-Darwinian theory. Two of the most influential explanations of economic evolution, Alchian's and Nelson and Winter's, are used to illustrate how this could be achieved.......The present article provides a minimal description of the causal structure of economic selection theory and outlines how the internal selection dynamics of business organisations can be reconciled with selection in competitive markets. In addition to generic similarity in terms of the Darwinian...

  19. Institutions, Entrepreneurship, and Economic Growth

    DEFF Research Database (Denmark)

    Bjørnskov, Christian; Foss, Nicolai Juul

    2016-01-01

    We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on empirical research. Most of the literature has an economics orientation, but we also review relevant literature from other social sciences, including management research...... sample limitations, omitted variable biases, causality issues, and response heterogeneity. We argue that theories in management research, such as the resource-based view, transaction cost economics, and strategic entrepreneurship theory, can fill some of the conceptual and theoretical gaps....

  20. Energy and Economic Growth.

    Science.gov (United States)

    Sonenblum, Sidney

    This report reviews the economic impacts of the energy dilemma. Presented are viewpoints that have emerged relating to: (1) the desirability of economic growth; (2) the relationship between economic growth and energy usage; (3) the effects of energy wage in limiting or expanding the opportunities for growth; and (4) whether there is some sense in…

  1. Privatization in economic theory

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    Drakić Maja

    2007-01-01

    Full Text Available In reality privatization has never occurred according to the handbook rules of ordinary market transactions. Not even in advanced market economies can privatization transactions be described by the Walrasian or Arrowian, or Leontiefian equilibrium models, or by the equilibrium models of the game theory. In these economies transactions of privatization take place in a fairly organic way – which means that those are driven by the dominance of private property rights and in a market economy. But despite this fact Western privatization also some peculiar features as compared to ordinary company takeovers, since the state as the seller may pursue non – economic goals. Changes in the dominant form of property change positions and status of many individuals and groups in the society. That’s why privatization can even less be explained by ordinary market mechanisms in transition countries where privatizing state-owned property have happened in a mass scale and where markets and private property rights weren't established at the time process of privatization began. In this paper I’ll discuss and analyze the phenomenon of privatization in context of different economic theories arguing that empirical results go in favor of the public choice theory (Buchanan, 1978, theory of "economic constitution" (Brennan and Buchanan 1985, (Buchanan and Tullock, 1989, and theory of "collective action" (Olson, 1982. These theories argues that transition from one economic system into another, for example transition from collectivistic, socialistic system into capitalism and free market economy with dominant private property, will not happen through isolated changes of only few economic institutions, no matter how deep that changes would be. In other words privatization can not give results if it's not followed by comprehensive change of economic system because privatized companied wouldn't be able to operate in old environment.

  2. ELEMENTS OF THE NEOCLASSICAL GROWTH THEORY

    National Research Council Canada - National Science Library

    Florina Popa

    2014-01-01

    .... The neoclassical growth theory - the core of modern analysis - explains how the capital accumulation and technological changes affect the economy, significant for the analysis of the economic growth...

  3. Linking Ethics and Economic Growth

    DEFF Research Database (Denmark)

    Foss, Nicolai Juul

    2012-01-01

    Hunt (2012) builds on his work concerning ethics and resource-advantage theory to link personal ethical standards, societal norms, and economic growth but offers few details concerning the precise mechanisms that link ethics and growth. This comment suggests a number of such mechanisms...... – for example, the influence of prevailing ethical norms on the aggregate elasticity of substitution and, therefore, total factor productivity and growth....

  4. Religion and Economic Growth

    OpenAIRE

    Barro, Robert J.; Rachel McCleary

    2003-01-01

    Empirical research on the determinants of economic growth has typically neglected the influence of religion. To fill this gap, we use international survey data on religiosity for a broad panel of countries to investigate the effects of church attendance and religious beliefs on economic growth. To isolate the direction of causation from religiosity to economic performance, we use instrumental variables suggested by our analysis of systems in which church attendance and beliefs are the depende...

  5. Economic Modelling in Institutional Economic Theory

    National Research Council Canada - National Science Library

    Wadim Strielkowski; Evgeny Popov

    2017-01-01

    Our paper is centered around the formation of theory of institutional modelling that includes principles and ideas reflecting the laws of societal development within the framework of institutional economic theory...

  6. Economic growth, ecological economics, and wilderness preservation

    Science.gov (United States)

    Brian Czech

    2000-01-01

    Economic growth is a perennial national goal. Perpetual economic growth and wilderness preservation are mutually exclusive. Wilderness scholarship has not addressed this conflict. The economics profession is unlikely to contribute to resolution, because the neoclassical paradigm holds that there is no limit to economic growth. A corollary of the paradigm is that...

  7. ECONOMIC GROWTH AND POVERTY,

    Science.gov (United States)

    The problems of poverty in the United States, and their resolution, are inextricably connected with the nature of the economic growth process and its...economic deprivation, but the adjustments required by growth have left in their wake new pockets of poverty . In the future, one of the key variables...that will determine how rapidly we can eliminate poverty in the United States will be the rate of increase in average incomes. And one of the key

  8. The main determinants affecting economic growth

    Directory of Open Access Journals (Sweden)

    Florin Teodor BOLDEANU

    2015-12-01

    Full Text Available Growth theories highlight the evolution and trends in economic thought that shaped the way economic growth is perceived. From the early works of Adam Smith and Malthus to the present day researchers have tried to find the most important determinates that influence growth by formulating new and improved theories and models. In this article we try to offer our point of view in the evolution of the main factors that have an impact on economic growth. There is still not a consensus on the key determinants of growth and an all-encompassing model that includes all the influences has not yet been elaborated.

  9. Artificial Intelligence and Economic Theories

    OpenAIRE

    Marwala, Tshilidzi; Hurwitz, Evan

    2017-01-01

    The advent of artificial intelligence has changed many disciplines such as engineering, social science and economics. Artificial intelligence is a computational technique which is inspired by natural intelligence such as the swarming of birds, the working of the brain and the pathfinding of the ants. These techniques have impact on economic theories. This book studies the impact of artificial intelligence on economic theories, a subject that has not been extensively studied. The theories that...

  10. REMITTANCES AND ECONOMIC GROWTH IN TURKEY

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    Huseyin KARAMELIKLI

    2015-07-01

    Full Text Available Savings are one of the important determinants beyond the theories of economic growth. Therefore remittances and foreign direct investment inflows have importance for the countries having insufficient savings. This study examines the relationship between economic growth, remittances, foreign direct investment inflows and gross domestic savings in Turkey during the period 1974-2013 by using Autoregressive Distributed Lag approach. We found that remittances, foreign direct investment and gross domestic savings had positive impact on economic growth.

  11. Economic Growth with Bubbles

    OpenAIRE

    Alberto Martin

    2010-01-01

    This paper presents a stylized model of economic growth with bubbles. This model views asset price bubbles as a market-generated device to moderate the effects of frictions in financial markets, improving the allocation of investments and raising the capital stock and welfare. It shows that, contrary to conventional wisdom, bubbles can arise even if all investments in the economy are dynamically efficient.

  12. Economic theory in historical perspective

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    Lefteris Tsoulfidis

    2017-05-01

    Full Text Available On the methodological plain this paper outlines the conditions that contribute to the development of economic theories and it continues with an examination of the concrete circumstances that gave rise to modern neoclassical macroeconomic theories. The paper further claims that the current impasse in macroeconomics is indicative of the need for new directions in economic theory which becomes imperative in the long economic downturn that started in 2007 and concludes by suggesting the need for a synthesis between the classical analysis and the theory of effective demand.

  13. Economic Modelling in Institutional Economic Theory

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    Wadim Strielkowski

    2017-06-01

    Full Text Available Our paper is centered around the formation of theory of institutional modelling that includes principles and ideas reflecting the laws of societal development within the framework of institutional economic theory. We scrutinize and discuss the scientific principles of this institutional modelling that are increasingly postulated by the classics of institutional theory and find their way into the basics of the institutional economics. We propose scientific ideas concerning the new innovative approaches to institutional modelling. These ideas have been devised and developed on the basis of the results of our own original design, as well as on the formalisation and measurements of economic institutions, their functioning and evolution. Moreover, we consider the applied aspects of the institutional theory of modelling and employ them in our research for formalizing our results and maximising the practical outcome of our paper. Our results and findings might be useful for the researchers and stakeholders searching for the systematic and comprehensive description of institutional level modelling, the principles involved in this process and the main provisions of the institutional theory of economic modelling.

  14. Economic growth and concentrations

    Science.gov (United States)

    Chiang, Shu-hen

    2017-02-01

    Over the past few decades, shift-share (SS) analysis is widely applied to explore the sources of local economic growth; however, it leaves unanswered the inequality question. The purpose of this paper is to exclude these biases caused by inequalities to generate a new identity, which fully shows the concept of externalities and comparative advantage, the nation-industry-region interactions and the structural change of local industry in a timely manner

  15. Entrepreneurial Diversity and Economic Growth

    NARCIS (Netherlands)

    I. Verheul (Ingrid); A.J. van Stel (André)

    2007-01-01

    textabstractMost studies investigating the relationship between entrepreneurship and economic growth treat entrepreneurs as a homogeneous group. This study investigates the impact of entrepreneurial diversity on national economic growth. Using data for 36 countries participating in the Global

  16. The Simplest Unified Growth Theory

    DEFF Research Database (Denmark)

    Strulik, Holger; Weisdorf, Jacob Louis

    This paper provides a unified growth theory, i.e. a model that explains the very long-run economic and demographic development path of industrialized economies, stretching from the pre-industrial era to present-day and beyond. Making strict use of Malthus' (1798) so-called preventive check...... hypothesis - that fertility rates vary inversely with the price of food - the current study offers a new and straightforward explanation for the demographic transition and the break with the Malthusian era. The current framework lends support to existing unified growth theories and is well in tune...

  17. Economic growth and business cycles

    NARCIS (Netherlands)

    Canton, E.J.F.

    1997-01-01

    This thesis contains five essays on economic growth and business cycles. The main focus is on the interaction between economic growth and the cycle: is cyclical variability good or bad for the long-run rate of economic growth? The introduction aims to provide some empirical evidence for an

  18. Organizations, individualism and economic theory

    NARCIS (Netherlands)

    Brouwer, M.

    2012-01-01

    Most economic theory is based on the assumption that economies grow in a linear fashion. Recessions, depressions and (financial) crises are explained by policy mistakes. However, economic development has historically been uneven, and this state of affairs continues today. This book argues that

  19. Economic Growth Models Transition

    Directory of Open Access Journals (Sweden)

    Coralia Angelescu

    2006-03-01

    Full Text Available The transitional recession in countries of Eastern Europe has been much longer than expected. The legacy and recent policy mistakes have both contributed to the slow progress. As structural reforms and gradual institution building have taken hold, the post-socialist economics have started to recover, with some leading countries building momentum toward faster growth. There is a possibility that in wider context of globalization several of these emerging market economies will be able to catch up with the more advanced industrial economies in a matter of one or two generations. Over the past few years, most candidate countries have made progress in the transition to a competitive market economy, macroeconomic stabilization and structural reform. However their income levels have remained far below those in the Member States. Measured by per capita income in purchasing power standards, there has been a very limited amount of catching up over the past fourteen years. Prior, the distinctions between Solow-Swan model and endogenous growth model. The interdependence between transition and integration are stated in this study. Finally, some measures of macroeconomic policy for sustainable growth are proposed in correlation with real macroeconomic situation of the Romanian economy. Our study would be considered the real convergence for the Romanian economy and the recommendations for the adequate policies to achieve a fast real convergence and sustainable growth.

  20. Structural modelling of economic growth: Technological changes

    Directory of Open Access Journals (Sweden)

    Sukharev Oleg

    2016-01-01

    Full Text Available Neoclassical and Keynesian theories of economic growth assume the use of Cobb-Douglas modified functions and other aggregate econometric approaches to growth dynamics modelling. In that case explanations of economic growth are based on the logic of the used mathematical ratios often including the ideas about aggregated values change and factors change a priori. The idea of assessment of factor productivity is the fundamental one among modern theories of economic growth. Nevertheless, structural parameters of economic system, institutions and technological changes are practically not considered within known approaches, though the latter is reflected in the changing parameters of production function. At the same time, on the one hand, the ratio of structural elements determines the future value of the total productivity of the factors and, on the other hand, strongly influences the rate of economic growth and its mode of innovative dynamics. To put structural parameters of economic system into growth models with the possibility of assessment of such modes under conditions of interaction of new and old combinations is an essential step in the development of the theory of economic growth/development. It allows forming stimulation policy of economic growth proceeding from the structural ratios and relations recognized for this economic system. It is most convenient in such models to use logistic functions demonstrating the resource change for old and new combination within the economic system. The result of economy development depends on starting conditions, and on institutional parameters of velocity change of resource borrowing in favour of a new combination and creation of its own resource. Model registration of the resource is carried out through the idea of investments into new and old combinations.

  1. An Economic Theory of Leadership

    OpenAIRE

    Komai, Mana

    2003-01-01

    This dissertation develops an economic theory of leadership based on assignment of information. Common theories assume that organizations exist to reduce transaction costs by replacing imperfect markets with incomplete long term contracts that give managers the power to command subordinates. This view reverses all of these premises: I study an organization in which it is costless to transmit and process information, contracts exist in the backgound if at all, and agents are not bound to the o...

  2. Paradoxes of Economic Theories and Politics

    Directory of Open Access Journals (Sweden)

    Ruslan Imranovich Khasbulatov

    2015-06-01

    Full Text Available The article gives an overview of the evolution of economic theories, the conditions which led to the formation of their modern schools and focuses on the analysis of arising classic, neoclassic and Keynesian doctrines encouraged by the growth and development of productive forces (factors of production, the formation of big corporations-monopolists and technological progress. The severe global recessions (1929–1933 and other shocks of the capitalist system brought to life the doctrinal theory, which is alternative to the classical one. The doctrinal theory was a theoretic and methodological basis of the System for half a century, then it was replaced by neoliberal and monetarist theories that proved to be inconsistent during the global crisis and depression in 2008–2013. The article also touches upon the necessity to change the economic policy of Russia — an urgent problem resulting from a policy of the Western countries trying to suffocate the country with sanctions

  3. [Economic theory and the environment].

    Science.gov (United States)

    Yachir, F

    1992-01-01

    The environment, on the eve of a new century, has become a major theme for reflection and action in both developed and developing countries. Economists and economic theory have until recently neglected the environment and have implicitly assumed that nature offers unlimited space for expansion and an inexhaustible supply of resources. Among natural resources, economists have always distinguished between those whose supply is in no way related to human labor and which are therefore common property, such as air and water, and those whose effective supply depends on labor and for which the appropriation can be private, such as the products of the soil and subsoil. The founders of the discipline of economics defined economic goods as those resulting from the application of labor to nature and which formally belong to a specific individual or group. It has become increasingly clear, however, that economic activity can reduce the effective availability of resources not considered "economic." The growing scarcity of these common goods may then induce their privatization. The inability of economic science to conceive of the exhaustibility of natural resources or the possibility of their permanent reduction in quality through human activity reflects the specific historic and philosophic context of the development of economics as a science. England in the late 18th and 19th centuries, where economics largely originated, was a colonial power able to expand outward in its quest for resources. Industrial requirements for nonrenewable resources remained relatively limited in the early years of industrialization. Most significantly, the growing technological capability was accompanied by a new belief that human beings could be in control of nature. A critique of economic theory from an environmental perspective must therefore begin with a critique of its philosophical assumptions. A new vision of interaction between the economy and nature must be developed which acknowledges the

  4. Technical Education and Economic Growth

    Indian Academy of Sciences (India)

    First page Back Continue Last page Graphics. Technical Education and Economic Growth. Technical Education and Economic Growth. Review of the Present Status. Expanding no.s and impairment of quality; Faculty shortage; Grim situation at Masters and PhD levels; Regional imbalance; Absence of International flavour ...

  5. EVIDENCE ON EMPLOYMENT RATE AND ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Cornelia VĂCEANU

    2014-11-01

    Full Text Available This paper explores a causal relationship between employment rate and economic growth for European Union countries, in general, and produces a structural assessment of employment on the background of labour market dynamics. Economic growth is the key in economic theory and the main source of well-being and quality of life. Since the 2008 financial crisis, most European countries have experienced job shortage and unemployment problem, but today's European economic outlook is strengthening on the bases of a GDP growing momentum. Empirical data shows, regardless the GDP's moderate positive trend, the employment rate did not increase enough. Given this, the present analysis address the question: to what extent the employment rate is affected by economic growth?

  6. SECTORAL SHARES AND ECONOMIC GROWTH

    DEFF Research Database (Denmark)

    Ahmad, Nisar; Naveed, Amjad; Naz, Amber

    2013-01-01

    believe that structural change is an unimportant side effect of the economic development. On the contrary, economists associated with the World Bank and some others posit that growth is brought about by the changes in sectoral composition. The objective of this study is to empirically test...... the relationship between sectoral shares and economic growth by using the panel data for 20 developed countries. The results of the granger causality suggest that both services and agriculture sectors do granger cause economic growth, whereas industrial sector does not granger cause growth. Reverse causality does...... not hold for any of the three sectors. The results of Barro and Non-Barro regressions along with the set of control variables have suggested that services sector is negatively affecting growth, whereas both industrial and agriculture shares are positively affect economic growth....

  7. Do Economic Theories Inform Policy?

    DEFF Research Database (Denmark)

    Bartalevich, Dzmitry

    Adopting the (institutionalist) premise that ideas and the economic theories within which they are embedded influence policy, the dissertation investigates the influence of the Chicago School of antitrust analysis on the competition policy of the European Union (EU). The dissertation encapsulates...... three articles. The first article employs qualitative content analysis to assess whether and the extent to which the European Commission incorporates Chicago School theory into EU competition policy. It does so on the basis of current Commission Guidelines, Notices, and Block Exemption Regulations...

  8. City Population Growth and Economic Growth

    DEFF Research Database (Denmark)

    Freire-Gibb, L. Carlos

    2008-01-01

    This article looks at the relationship between city population growth (intimately related to population proximity), and economic development. The hypothesis is that wherever dynamic and inclusive networks exist, there are more opportunities for economic development in this place. When these types...

  9. Theory of endogenous growth: political economy and mathematical economy Teoría del crecimiento endógeno. Economía política y economía matemática

    Directory of Open Access Journals (Sweden)

    Benavides G. Oscar A.

    1997-06-01

    Full Text Available Two essential features allow us to understand recent developments in growth theory: a new conceptualization to explain its nature, that is, the return to classical political economy and the introduction of the theory of public goods, and some mathematics that allow the formalization of this new conceptualization. With the development of bothn elements, the article presents the "new" theoretical framework, the formal conditions and the mathematical techniques needed to
    understand current growth theory. This review of these new developments can serve as a point of reference to broeciet, or to question the formulations of endogenous growth theories.Dos aspectos esenciales que permiten entender los desarrollos recientes en la teoría del creciemiento: una nueva conceptualización para explicar sus naturaleza, es decir, el retorno a la economía política clásica y la introducción de una teoría de bienes públicos, y unas matemáticas que permiten formalizar esta nueva conceptualización. Con el desarrollo de ambos elementos, el artículo presenta el "nuevo" marco teórico, las condiciones formalesy las técnicas matemáticas necesarias para entender la actual teoría del creciento. Esta revisión de los nuevos desarrollos puede servir de punto de referencia para ampliar o cuestionar los planteamientos de las teorías de crecimiento endógeno.

  10. Investment in Education and Economic Growth in Nigeria: 1981 ...

    African Journals Online (AJOL)

    PROF. O. E. OSUAGWU

    2013-12-01

    Dec 1, 2013 ... David E., David Canning and Jay pee Sevilla (2001). The Effect of Health on. Economic Growth: Theory and Evidence. NBER Working Paper NO. 8587. November. [9] Bratti, M., Bucci A.and Moretti (2004) “Demographic Trends, Human Capital and economic. Growth in Developing Countries: Theory and ...

  11. Blue Growth and Economics

    Directory of Open Access Journals (Sweden)

    Phoebe eKoundouri

    2015-11-01

    Full Text Available Oceans and seas represent over 70% of the earth's surface. Furthermore, living aquatic resources can provide a significant contribution to food, energy and bio-based products. However, marine ecosystems are subject to increasing pressures and competing usages, resulting from resources over-exploitation and pollution. In order to produce efficient marine management plans, it is essential to consider the total economic value provided by the marine ecosystems. In this review, we are focusing on the Marine Framework Strategy Directive and the European Marine Spatial Planning that are established for the protection and efficient use of the marine area. We present the ecosystem services approach with regards to the marine ecosystem and propose economic methods that capture the marine ecosystem’s total economic value in relation to the opportunity cost of marine space. Values should be used to guide policy makers following the European directives and initiatives.

  12. Institutions, Technological Change and Economic Growth

    Directory of Open Access Journals (Sweden)

    David Corderí Novoa

    2005-01-01

    Full Text Available Theories of economic growth try to explain variations in per capita income across countries by differences in capital accumulation and productivity. However, many scholars consider that integrating institutions into economic theory and economic history is an essential step in improving explanations of why some societies are richer than others. This paper develops the empirical and theoretical case that differences in institutions are the fundamental cause of differences in technological change (productivity, hence in economic growth. First, I give a definition of institutions and how they influence economic performance, from a New Institutional Economics point of view. Then, I introduce the theoretical framework based on the economics of ideas and endogenous growth models. Finally, I argue that R&D expenditures -a proxy for technological change- will vary across countries depending on some measures of institutional quality. In the end, this paper finds that stronger institutions (measured by an aggregate of institutional quality encourage greater R&D expenditures. At a disaggregate level, the rule of law is positively correlated and the regulatory burden is negatively correlated with R&D expenditures. Human capital level (measured by the tertiary and primary school enrolment rates has also a significant positive impact in R&D expenditures.

  13. Traffic fatalities and economic growth

    Science.gov (United States)

    2003-04-01

    As countries develop death rates usually fall, especially for diseases that affect the young and result in substantial life-years lost. Deaths due to traffic accidents are a notable exception: the growth in motor vehicles that accompanies economic gr...

  14. Environmental protection and economic growth

    OpenAIRE

    Teles, Vladimir Kühl; Ronaldo A. Arraes

    2009-01-01

    This paper explores the link between an environmental policy and economic growth employing an extension of the Neoclassical Growth Model. We include a state equation to renewable natural resources, and consider natural resources as a component of the aggregate productivity. It is assumed that the change of the environmental regulations induces costs and that economic agents also derive some utility from stock capital accumulation vis-`a-vis environment. Using the Hopf bifurcation theorem, it ...

  15. Knowledge and economic growth

    NARCIS (Netherlands)

    Nahuis, R.

    2000-01-01

    This thesis is centered around two empirical questions. The first question deals with the paradox that the ICT revolution does not pay off with higher productivity growth for the ICT- users. The interaction between production and knowledge accumulation and the ¿general- purpose' nature of the ICT

  16. Mathematical Methods of Game and Economic Theory

    CERN Document Server

    Aubin, J-P

    1982-01-01

    This book presents a unified treatment of optimization theory, game theory and a general equilibrium theory in economics in the framework of nonlinear functional analysis. It not only provides powerful and versatile tools for solving specific problems in economics and the social sciences but also serves as a unifying theme in the mathematical theory of these subjects as well as in pure mathematics itself.

  17. Structural Differences in Economic Growth

    NARCIS (Netherlands)

    N. Basturk (Nalan); R. Paap (Richard); D.J.C. van Dijk (Dick)

    2008-01-01

    textabstractThis paper addresses heterogeneity in determinants of economic growth in a data-driven way. Instead of defining groups of countries with different growth characteristics a priori, based on, for example, geographical location, we use a finite mixture panel model and endogenous clustering

  18. Quality, Export and Economic Growth

    DEFF Research Database (Denmark)

    Madsen, Erik Strøjer; Pedersen, Kurt

    1998-01-01

    Growth rates in Far Eastern economies have, until recently, been one of the most debated international features. At the same time, quality focus has spread from the same region, notably Japan. It seems only natural to include the concept of quality in an attempt to understand economic growth in a...

  19. Economic Transition and Growth

    OpenAIRE

    Phillips, Peter C.B.; Donggyu Sul

    2005-01-01

    Some extensions of neoclassical growth models are discussed that allow for cross section heterogeneity among economies and evolution in rates of technological progress over time. The models offer a spectrum of transitional behavior among economies that includes convergence to a common steady state path as well as various forms of transitional divergence and convergence. Mechanisms for modeling such transitions and measuring them econometrically are developed in the paper. A new regression tes...

  20. Knowledge and economic growth

    OpenAIRE

    Nahuis, R.

    2000-01-01

    This thesis is centered around two empirical questions. The first question deals with the paradox that the ICT revolution does not pay off with higher productivity growth for the ICT- users. The interaction between production and knowledge accumulation and the ¿general- purpose' nature of the ICT revolution is examined to explain the paradoxical finding. The second question ¿ what explains the increase in wage inequality between high-skilled and low-skilled workers over the last two decades ¿...

  1. Competitive Environment in Higher Education, Economic Efficiency and National Economic Growth

    OpenAIRE

    Rocēns, Valdis

    2012-01-01

    The goal of Valdis Rocens’s thesis „Competitive Environment in Higher Education, Economic Efficiency and National Economic Growth” is the assessment of the correlation between the competition among the institutions of higher education, the economic efficiency of higher education and the states’ economic growth. The research is based on P.Romer’s economic endogenous growth theory and M.Porter’s competition five forces model. In the thesis, there has been measured the competition...

  2. The new institutional economics - main theories

    Directory of Open Access Journals (Sweden)

    Emilia Obińska-Wajda

    2016-07-01

    Full Text Available The aim of this arti cle is to show that the New Insti tuti onal Economics is an interdisciplinary stream combining economics, law, organizati on theory, politi cal sciences, sociology, and anthropology. The main theories which are part of the New Insti tuti onal Economics are: Agency Theory, Property Rights Theory and Transaction Costs Theory. The basic assumptions of these theories are mentioned in this paper. This article is an introduction to the New Institutional Economics and its main theories. For this purpose, it presents a brief guide for those who are interested in the New Institutional Economics. Finally, the article is accompanied by a short review of examples of empirical studies connected with these theories.

  3. Knowledge Spillovers and Economic Growth

    NARCIS (Netherlands)

    A.J. van Stel (André); H.R. Nieuwenhuijsen

    2002-01-01

    textabstractThe importance of knowledge spillovers for achieving innovation and economic growth is widely recognized. It is not straightforward which type of spillovers is most effective: intra-sectoral spillovers or inter-sectoral spillovers. We investigate this controversy using a model of

  4. Intangible capital and economic growth

    NARCIS (Netherlands)

    Chen, Wen

    2016-01-01

    Modern economic growth stems in good part from investments in knowledge-based intangible assets, such as research and development (R&D), organisational know-how, product design, branding and marketing. By capitalising expenditures on these intangibles as business investments, this thesis

  5. Higher education and economic growth

    OpenAIRE

    Richard H. Mattoon

    2006-01-01

    The future of higher education and its relationship to economic growth were the focus of a one-day conference at the Chicago Fed on November 2, 2005. Cosponsored by the bank, the Committee on Institutional Cooperation, and the Midwestern Higher Education Compact, the event brought together over 100 academic, business, and government leaders.

  6. Sociocultural dimension of economic theory and practice

    National Research Council Canada - National Science Library

    Остапенко, Ірина Григорівна

    2015-01-01

    To investigate sociocultural determinants of economic theory and practice in the proposed article it is analyzed the process of formation of corporate culture as a sociocultural phenomenon of economic...

  7. RELATIONSHIP BETWEEN HUMAN CAPITAL AND ECONOMIC GROWTH: AN APPLICATION TO DEVELOPING COUNTRIES

    National Research Council Canada - National Science Library

    Ali Altiner; Yilmaz Toktas

    2017-01-01

    .... New approaches to economic growth have been developed since 1980s. In this context, according to endogenous growth theory, it is stated that the most important determinant of economic growth is the human capital stock...

  8. Growth theory and ‘green growth’

    NARCIS (Netherlands)

    Smulders, Sjak A.; Toman, M.; Withagen, C.A.A.M.

    2014-01-01

    The relatively new and still amorphous concept of ‘green growth’ can be understood as a call for balancing longer-term investments in sustaining environmental wealth with nearer-term income growth to reduce poverty. We draw on a large body of economic theory available for providing insights on such

  9. Nation Building as a Determinent of Economic Growth

    Science.gov (United States)

    2010-05-18

    during and following conflict. Section III: Theory Conflict, Economic Aid, and Military Assistance in the Solow Growth Model The neoclassical growth...4 Section II: Literature Review…………………………………………………………….12 Section III: Theory ……………………………………………………………………….14...off of the neoclassical economic growth model to consider how conflict, economic aid, and military intervention affect GDP per capita growth both

  10. Institutional economics and economic organisation theory: An integrated approach

    NARCIS (Netherlands)

    Slangen, L.H.G.; Loucks, L.A.; Slangen, A.H.L.

    2008-01-01

    This publication presents one of the first attempts to integrate two emerging bodies of economic research: institutional economics and organizational theory. It begins within the framework of neoclassical economics, and then extends the boundaries of this framework to offer answers to questions that

  11. Institutional economics and economic organisation theory : an integrated approach

    NARCIS (Netherlands)

    Slangen, L.H.G.; Loucks, L.; Slangen, A.H.L.

    2008-01-01

    This publication presents one of the first attempts to integrate two emerging bodies of economic research: institutional economics and organizational theory. It begins within the framework of neoclassical economics, and then extends the boundaries of this framework to offer answers to questions that

  12. Endogenous growth theory and regional development policy

    Directory of Open Access Journals (Sweden)

    Cvetanović Slobodan

    2015-01-01

    Full Text Available The numerous versions of endogenous explanations of economic growth emphasize the importance of technological change driving forces, as well as the existence of appropriate institutional arrangements. Endogenous growth theory contributes to a better understanding of various experiences with long-term growth of countries and regions. It changes the key assumptions of the Neoclassical growth theory and participates in the modern regional development physiology explanation. Based on these conclusions, the paper: a explicates the most important theoretical postulates of the theory, b explains the most important factors of economic growth in the regions in light of the Endogenous growth theory messages and c emphasizes the key determinants of regional competitiveness which in our view is conceptually between the phenomena of micro- and macro-competitiveness and represents their necessary and unique connection. First of all, micro-competitiveness is transformed into a regional competitiveness; then regional competitiveness is transformed into a macro-competitiveness. In turn, macro - influences the microeconomic competitiveness, and the circle is closed. After that, the process starts over again.

  13. Poverty, governance and economic growth

    Directory of Open Access Journals (Sweden)

    Kefi Mohamed Karim

    2013-07-01

    Full Text Available The objective of this paper is to study the effect of governance and povrety on economic growth of a set of eight developing countries during the period 2000-2009, using a dynamic and static panel data model and a simultaneous equations model. The key findings generated from these three empirical tests stipulate a negative effect of governance on povrety and a positive effect of political instability and corruption on poverty

  14. Implications of zero economic growth

    Energy Technology Data Exchange (ETDEWEB)

    Thurow, L.C.

    1977-01-01

    The consequences of a zero economic growth (ZEG) policy are examined to see what limits to growth, some of which already exist, are desirable and what changes in our institutions are required to impose a no-growth policy. Past periods of zero or negative growth have increased unemployment, raised employability standards, and increased income-distribution inequalities with a subsequent lowering of the living standard. Zero population growth would offset this somewhat by freeing the capital now spent on education and career training and using it to raise per capita living standards if a work-sharing and unemployment-payment system were devised. Undesirable social implications would be felt both if a lack of employment opportunities reduced competition and consumption habits or if it led to intensive competition. Advocates of ZEG propose to restrain only those areas using nonrenewable resources and causing pollution of the environment, while expanding the service areas. The service sector (e.g., transportation and utilities) is also polluting and uses nonrenewable resources, however, pointing up their failure to account for indirect consumption. Many undeveloped countries already have ZEG but would not be content for the U.S. to halt growth opportunities. ZEG would be difficult to enforce and would do nothing to promote pollution control. (DCK)

  15. Review of economic theories of regulation

    NARCIS (Netherlands)

    den Hertog, J.A.

    2010-01-01

    This paper reviews the economic theories of regulation. It discusses the public and private interest theories of regulation, as the criticisms that have been leveled at them. The extent to which these theories are also able to account for privatization and deregulation is evaluated and policies

  16. Impact of Artificial Intelligence on Economic Theory

    OpenAIRE

    Tshilidzi Marwala

    2015-01-01

    Artificial intelligence has impacted many aspects of human life. This paper studies the impact of artificial intelligence on economic theory. In particular we study the impact of artificial intelligence on the theory of bounded rationality, efficient market hypothesis and prospect theory.

  17. Entrepreneurship and Economic Growth: Some Empirical Studies

    NARCIS (Netherlands)

    A.J. van Stel (André)

    2005-01-01

    textabstractThe importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. However, empirical evidence linking entrepreneurship to economic growth is scarce. This book investigates the relation between

  18. Wildland economics: theory and practice

    Science.gov (United States)

    Pete Morton

    2000-01-01

    Since passage of the Wilderness Act, economists have derived the total economic valuation framework for estimating wildland benefits. Over the same time period, policies adopted by public land management agencies have been slow to internalize wilderness economics into management decisions. The lack of spatial resolution and modeler bias associated with the FORPLAN...

  19. Economic growth and gender equality | IDRC - International ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    ... women's economic empowerment, particularly around extractive industries. Research led by the universities of Chicago and Stellenbosch is generating evidence on how women's political participation and representation in Africa influences the connection between economic growth and women's economic empowerment.

  20. Bioenergy, Pollution, and Economic Growth

    OpenAIRE

    Ankarhem, Mattias

    2005-01-01

    This thesis consists of four papers: two of them deal with the effects on the forest sector of an increase in the demand for forest fuels, and two of them concern the relation between economic growth and pollution. Paper [I] is a first, preliminary study of the potential effects on the Swedish forest sector of a continuing rise in the use of forest resources as a fuel in energy generation. Sweden has made a commitment that the energy system should be sustainable, i.e., it should be based on r...

  1. Malnutrition, poverty, and economic growth.

    Science.gov (United States)

    Heltberg, Rasmus

    2009-04-01

    This paper argues that indicators of anthropometric shortfall - especially low height and low weight-for-age - are uniquely suited for assessing absolute deprivation in developing countries. Anthropometric indicators are relatively precise, readily available for most countries, reflect the preferences and concerns of many poor people, consistent with reckoning the phenomenon directly in the space of functionings, intuitive, easy to use for advocacy, and consistent over time and across subgroups. Anthropometric indicators can therefore complement (but not replace) standard indicators of income/consumption poverty, especially for comparisons across subgroups, within households, across countries, and in the long run. In addition, the paper analyses spells of change in malnutrition over time, finding that the association between economic growth and chronic child malnutrition is very small (but statistically significant) and much lower than the elasticity of growth on poverty. The policy implication of this finding is that direct interventions aimed at reducing infant malnutrition are required.

  2. ECONOMIC GROWTH AND EQUALITY IN REDUCING POVERTY

    Directory of Open Access Journals (Sweden)

    Zaenal Muttaqin

    2016-02-01

    Full Text Available In some developing countries, the instrument to alleviate the poverty is by using the economic growth. So, the increasing in investment, infrastructure development, and macroeconomics stability always be priority from developing countries. In this article explain that economic growth is not the important factor to alleviate the poverty, because equality sometimes is more important rather than the economic growth. In this context, its measure by inequality growth trade off index (IGTI. This method is to measure the influence of economic growth to reducing the inequality, with this method every country can measure which one is better to reducing the poverty whether the economic growth or equality. With this method, Laos in 2000 show that economic growth is more important than equality, but in the same year in Thailand show that equality is more important than economic growth.DOI: 10.15408/sjie.v1i1.2592

  3. ECONOMIC THEORY OF LOBBYING: EVALUATION OF ECONOMIC EFFICIENCY

    Directory of Open Access Journals (Sweden)

    Tolstyh Pavel Aleksandrovich

    2013-01-01

    Full Text Available In this article the author continues to analyze lobbying with regards to economic paradigm. [The author has started discussing lobbying in terms of economic theory in the article Politico-economic theory of lobbying / / Historical, philosophical, political and legal sciences, culture and art. Theory and practice. Tambov: Gramota, 2013. No 1. Part 2. p. 177-189.] Researcher evaluates the cost effectiveness of the lobbying function. Lobbying is understood as activity of specifically authorized employees of corporations and lobbying firms representing their interests, trade associations. This activity is aimed at improving the profitability of integrated and sustainable business development by representing long-term, comfortable, predictable system of relationships with the relevant field-specific political stakeholders of the federal and regional levels. The article presents an in-depth analysis of economic concepts of lobbying function.

  4. Markets and organizations: individualism and economic theory

    NARCIS (Netherlands)

    Brouwer, M.

    2010-01-01

    Economic theory depicts markets and organizations as opposite allocation mechanisms. Market allocation is based on mobility and organization on instruction. The paper argues that markets and organizations are complements in economies that grow through innovation. Diversity of organizations lies at

  5. Guatemala : Country Economic Memorandum, Challenges to Higher Economic Growth

    OpenAIRE

    World Bank

    2005-01-01

    The purpose of this Country Economic Memorandum (CEM) is to contribute to the ongoing discussion in Guatemala about means of accelerating economic growth to help achieve targets set in the 1996 Peace Accords as a key ingredient in the fight to reduce national poverty rates. Chapter I examines historical and recent developments and uses a benchmarking growth methodology to identify the measures and policies most conducive to increasing long-term economic growth. Those areas that are identified...

  6. An application of fisheries economics theory

    DEFF Research Database (Denmark)

    Frost, Hans Staby; Andersen, Peder; Hoff, Ayoe

    2011-01-01

    discrete-time model. The neo-classical concept of resource rent is maximized by use of various physical measures, such as fishing effort restrictions and fishing quotas, and economic measures, such as property or user rights and taxes. Although theory ranks economic measures above physical measures...

  7. Public Expenditure And Economic Growth In Nigeria

    OpenAIRE

    Usman A.; Mobolaji H. I; Kilishi A.A; Yaru M. A; Yakubu, T. A

    2011-01-01

    The debate on the use of fiscal policy for economic stabilization and inducement of economic growth is an old one. Key issue in this debate relates to the efficacy of public expenditure on stimulating economic growth. The neo-classical school held on extreme position by refuting the usage of fiscal policy to regulate the economy even in the time of economic crisis. At the other extreme are those who emphasize the efficiency of fiscal policy in stabilizing economic fluctuations and stimulating...

  8. Value Concept and Economic Growth Model

    Directory of Open Access Journals (Sweden)

    Truong Hong Trinh

    2014-12-01

    Full Text Available This paper approaches the value added method for Gross Domestic Product (GDP measurement that explains the interrelationship between the expenditure approach and the income approach. The economic growth model is also proposed with three key elements of capital accumulation, technological innovation, and institutional reform. Although capital accumulation and technological innovation are two integrated elements in driving economic growth, institutional reforms play a key role in creating incentives that effect the transitional and steady state growth rate in the real world economy. The paper provides a theoretical insight on economic growth to understand incentives and driving forces in economic growth model.

  9. Economic theory and econometric practice

    DEFF Research Database (Denmark)

    Sauer, Johannes

    Parametric efficiency analysis is one of the most investigated areas in applied pro-duction economics. Nevertheless, the vast majority of empirical studies are not ac-companied by a thorough theoretical interpretation of the underlying functional form and the obtained estimates. The robustness......-ciency estimates. The theoretical concerns are verified by empirical applications con-firming the need for a posteriori checking the regularity of the estimated frontier by the researcher and, if necessary, the a priori imposition of the theoretical require-ments. Bootstrapping based stochastic simulations...

  10. Economics of Sustainable Development. Competitiveness and Economic Growth

    Directory of Open Access Journals (Sweden)

    Dorel AILENEI

    2011-02-01

    Full Text Available Economic growth is one of the most important issues of humanity. Both in national economies and world economy, recession and prosperity periods are regularly succeeding with different amplitudes. But beyond these fluctuations and their effects, the results are important: performance and economic growth. Because of the problematical issue of economic growth, the authors are trying to critically reflect on the economic growth concept and on its implications on the praxis area. Although there is a large literature about economic growth modeling, it is intriguing that there still are some serious obstacles for conceptualization and praxis. Only the simple fact that the economic growth process needs serious thinking on the time dimension is sufficient for understanding the real difficulties of this problematical issue. As for the economic growth praxis, a clear analysis of the interests system within an economy is needed. Without trying to find miraculous solutions for the economic growth issue, the authors suggest a clear and correct analysis of this important subject.

  11. On the relationship between economic freedom and economic growth

    NARCIS (Netherlands)

    Haan, Jakob de; Sturm, Jan-Egbert

    1999-01-01

    Often it is maintained that economic freedom may further high levels of economic growth. This paper compares various indicators for economic freedom. It is concluded that although these measures differ somewhat in their coverage, they show similar rankings for the countries covered. Some elements in

  12. Regional Economic Growth; Socio-Economic Disparities among Counties

    Directory of Open Access Journals (Sweden)

    Salih Özgür SARICA

    2014-12-01

    Full Text Available State level economy has always been relying on its major metropolitan area’s economic success. So, such metropolitan agglomerations have been considered the only agents that can foster the state’s economic standing as if other economic places do (or may not have significant contribution to the regional economy. In contrast, as some major cities enhance their economic well-being and agglomerate in specialized sector, the rest of the region lose their economic grounds or stay constant by widening the economic gap among cities. Therefore, an institutional approach can help to establish new regional arrangements to substitute all economic places to coordinate each other and succeed the economic growth as part of state government by reducing the disparities. In this sense, this study builds upon the inquiry that seeks the impacts of some economic disparities among economic places (counties on the performances of state level regional economy.

  13. Financial Development, Environmental Quality and Economic Growth

    Directory of Open Access Journals (Sweden)

    Shushu Li

    2015-07-01

    Full Text Available In this study, the relationships between financial development, environmental quality and economic growth are studied based on data from 102 countries over the period 1980–2010 using the generalized method of moments (GMM estimation. The econometric results show the following three basic conclusions: First, both financial development and environmental quality have a significant impact on economic growth and should be included in the production function of the economic growth model as important variables. Second, there is a significant and robust “inverted U-shaped” relationship between financial development and economic growth; with the improvement of the level of financial development, economic growth would first increase and then decrease, which is consistent with the results of previous studies. Third, there is also a significant and robust “inverted U-shaped” relationship between economic growth and carbon emissions, indicating that there exists a “critical point” at which achieving economic growth comes at the expense of environmental quality, and after passing the critical point, the deterioration of environmental quality will lead to a significant slowdown in economic growth. In addition, the econometric analysis in this paper also shows that there was a mutually promoting and strengthening relationship between financial development and environmental quality. Specifically, the degree of financial development can further strengthen the promoting effect of environmental quality on economic growth; meanwhile, an improvement in environmental quality can also strengthen the promoting effect of financial development on economic growth. Financial development and environmental quality could influence economic growth through strengthening the marginal product effects of capital and labor, which further indicates the that both financial and environmental factors play an important role in modern economic development.

  14. An Economic Theory of Fiduciary Law

    OpenAIRE

    Sitkoff, Robert H

    2014-01-01

    This chapter restates the economic theory of fiduciary law, making several fresh contributions. First, it elaborates on earlier work by clarifying the agency problem that is at the core of all fiduciary relationships. In consequence of this common economic structure, there is a common doctrinal structure that cuts across the application of fiduciary principles in different contexts. However, within this common structure, the particulars of fiduciary obligation vary in accordance with the part...

  15. Does the Euro enhance Economic Growth?

    DEFF Research Database (Denmark)

    Dreyer, Johannes Kabderian; A. Schmid, Peter

    2016-01-01

    of economic integration in Europe. The aim of this article is to investigate whether the EU and EZ memberships enhance growth of their members. In order to perform our empirical analysis, we apply an augmented Solow growth model using convergence analysis and the panel Generalized Method of Moments (GMM......One of the major economic reasons for the creation of the European Union (EU) and of the Euro-zone (EZ) was an expected bonus of economic growth associated to member states. While several studies exist on the growth bonus of the EU membership, there are none for the EZ, the latest and deepest step......) to estimate its coefficients. We restrict the time frame of our research on the first 14 years of the Euro - from 1999 to 2012. In line with economic intuition we find a positive and neutral impact of EU and EZ memberships on economic growth respectively. These economic results can be considered especially...

  16. Economic Freedom and Economic Growth in South Africa

    Directory of Open Access Journals (Sweden)

    Clive E. Coetzee

    2017-06-01

    Full Text Available The economic growth and economic freedom nexus is studied in this article and applied to South Africa in an empirical study. Economic freedom is founded on the free or private market economy, based on competition, where voluntary exchange occurs and a legislative framework ensures the safety of market agents and private property. As part of the literature study, the Index of Economic Freedom, the Economic Freedom of the World Index and the Freedom in the World Index were studied and applied to South Africa. An empirical analysis was conducted, cross-correlation functions were estimated, and Granger causality functions, regression analysis and finally a vector auto-regression model (VAR were constructed and estimated. The research findings from South Africa support the literature, suggesting that there are indeed some indications that greater levels of economic freedom support higher rates of economic growth in a country.

  17. Local economic development in theories of regional economies and rural studies

    Directory of Open Access Journals (Sweden)

    Kačar Bahrija

    2016-01-01

    Full Text Available In this paper is a detailed analysis of the basics in the theory of economic development during the period from mid last century until today. It states the most significant theories, points out their ranges, offers a critical review regarding their treatment of development, especially regional, rural and local one. It observes those theories according to different classifications existing in scientific literature, primarily the ascend theory, stagnation theory, balanced economic growth theory; then, short-term and long-term development and growth theories; traditional and endogenous theories; economic growth stages theory emphasized after the WWII; structural changes theory; dependency theory, neo-classic counter-revolution theory and endogenous theory as a new growth theory. The analysis becomes wider with a study on development in regional economy theories and rural studies and it systematizes the classification of those theories according to regional economy academics. Distancing ourselves from any particular division as the most suitable and acceptable one, the theories are treated separately and in an historic context, in order to encircle the time framework which from modern theories, dealing with local level development difficulties, resulted. It asserts The Community-led Rural Development Theory, often referred to as the Community Development Theory, or marked as Bottom-up Partnership Approach. The analysis of development theories asserts that mixed exogenous - endogenous approach to development links the rural/local development to the globalization process mostly due to fast technology changes of the IT and communication sectors.

  18. The Dynamic Relationship between Crime and Economic Growth in Nigeria

    Directory of Open Access Journals (Sweden)

    Adekoya Adenuga Fabian

    2017-03-01

    Full Text Available Crime is a major impediment to economic growth and development in Nigeria despite measures taken to reduce it. There is, however, currently no major statistical analysis of how crime affects economic growth in that country. This study examines the link between crime and growth based on the theory of rational choice and empirical data. Exogenous and endogenous growth models are employed, and include deterrence variables. The period examined is 1970–2013 and estimation is done using the autoregressive distributed lag model. The results of our study show that crime affects economic growth at a 1% and 10% level of significance. In other words, crime imposes the costs of prosecution and punishment on the citizens and country, which influences the growth of the economy. Given our results, we suggest that police and the system of justice should be strengthened. Indeed, this may be necessary if the development target stated in Nigeria vision 20: 2020 is to be reached.

  19. Theory of economic cycle: analysis of аustrian school

    OpenAIRE

    Nesterenko, O.

    2008-01-01

    Essence of Austrian theory of economic cycle has been revealed. Differences of Austrian school approaches from theories of economic fluctuations in other streams of economic sciences have been analyzed

  20. Social Capital, Economic Growth and Transition Economies

    DEFF Research Database (Denmark)

    Svendsen, Gert Tinggaard

    1998-01-01

    Summary: What does social capital mean and how can it be built? Social capital is considered as a new production factor which must be added to the conventional concepts of human and physical capital. Social capital is productive because it increases the level of trust in a society and allows more...... transactions to take place without third-party enforcement. Theory and lessons from empirical evidence lead to three general recommendations for building social capital in the future: First, the state must withdraw and minimize its role in the economy so to leave room for voluntary organization and free......-trade. Second, state withdrawal should be combined with efforts to increase economic growth and gain popular support for the implementation of reforms. Third, voluntary groups, beneficial to the economy, should not be institutionalized to prevent them from turning into harmful rent-seeking groups....

  1. CORRELATION BETWEEN ECONOMIC GROWTH AND UNEMPLOYMENT

    Directory of Open Access Journals (Sweden)

    Savu Mihaela

    2013-06-01

    Full Text Available The mankind progress is built on economic growth.Yet, the high rates of economic growth must be properly used and correlated with other macroeconomic indicators in order to get the aimed effects.At the Romanian economic level, there is an inverse ratio connection between the gross domestic product and the unemployed number, a connection of low intensity.The correlation of these two indicators was established using parametric and nonparametric methods of analyzing the statistic connection using the informatic soft. Setting the recession function allows us to calculate the unemployed number depending on the forecasting of the economic growth in Romania.

  2. INSTITUTIONS, EDUCATION AND INNOVATION AND THEIR IMPACT ON ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Miroljub Shukarov

    2016-03-01

    Full Text Available The aim of this article is to provide a closer look of the institutions, their development, education and innovation and their impact on economic growth. The postulates of the neo-classical economic growth theories consider the accumulation of human capital and the technological development as factors that promote economic growth. Thus, investing in education, R&D and innovation is essential for a country’s prospects for economic growth. However, the main idea is to present this topic from institutional point of view. By using literature and statistical analysis, the article investigates whether the degree of institutional development in country’s educational system is sufficient enough to create prospects for economic growth. We compare four different countries: Macedonia and Serbia as non-EU countries and Bulgaria and Slovenia as EU member countries. We perform two analysis – the first one is comparison of selected statistical data, and the second one is comparison of the Human Development Index for the four countries of interest. The research findings indicate to the fact that institutionalized society with higher degree of institutional development in this case in the educational system is more likely to boost the economic growth. The results also indicate to the fact that societies in which the degree of institutional development is higher, as it is in our case in Slovenia and Bulgaria, are more likely to produce well qualified and skilled labour force which will further impact the economic growth.

  3. Competitiveness and Economic Growth in Romanian Regions

    OpenAIRE

    Simionescu Mihaela

    2016-01-01

    Considering the fact that Romanian economy competitiveness is not based on innovation and investment in human capital, this study makes an empirical evaluation of the impact of occupation and unemployment in Romanian counties on the economic growth. The approach based on panel vector-autoregressive (panel VAR) models indicated a negative impact of occupation and activity rate in 42 Romanian counties on the economic growth during 2006-2014. On the other hand, the real economic g...

  4. Religion and Economic Growth across Countries

    OpenAIRE

    McCleary, Rachel; Barro, Robert

    2003-01-01

    Empirical research on the determinants of economic growth typically neglects the influence of religion. To fill this gap, this study uses international survey data on religiosity for a broad panel of countries to investigate the effects of church attendance and religious beliefs on economic growth. To isolate the direction of causation from religiosity to economic performance, the estimation relies on instrumental variables suggested by an analysis in which church attendance and religious bel...

  5. Socialist economic growth and political investment cycles

    OpenAIRE

    Zou, Heng-fu

    1991-01-01

    Socialist economic growth in China and Eastern Europe has long been characterized by investment hunger, drives toward expansion, and cyclical fluctuation of investment rates. For decades, relatively high growth rates - often accompanied by a shortage of consumption goods - have typically been achieved at the consumers'expense. Treating social planners as self-interested bureaucrats, the author offers a positive model to help understand the norms of socialist economic growth. This model demons...

  6. EFFECTS OF THE ECONOMIC FREEDOMS ON THE ECONOMIC GROWTH: EVIDENCE FROM THE EU AND COMCEC COUNTRIES (1996-2015

    Directory of Open Access Journals (Sweden)

    HALİL İBRAHİM AYDIN

    2017-06-01

    Full Text Available In this research, the effects of the economic freedoms on the economic growth for EU and COMCEC countries at different development/income level are econometrically analyzed via panel data analysis for the period of 1996- 2014 by being considered the improvement of economic growth theories for the key determinants of economic growth. From this aspect, it is aimed at this research that to evaluate the effects of the economic freedoms on the long termed economic growth performances and income level differences of EU and COMCEC countries which have different statuses in terms of economic freedoms and income level indicators. It is determined at the end of the study that the economic freedoms have a positive and statistically significant effect on the economic growth of EU countries in investigation period, on the other hand, these freedoms have not any effect on the economic growth of COMCEC countries. Moreover, the existence of a one-way causality relation operates from economic freedoms to the economic growth in EU countries is specified while there is any causality link found between these freedoms and the economic growth for the countries in COMCEC group. All these results indicate that also the economic freedoms besides the physical human capital accumulation, in other words, whether the EU and COMCEC countries have a market economy adopts outward-oriented liberal fiscal policies plays a major role in differentiating the income levels or the economic growth performances.

  7. Stokes integral of economic growth. Calculus and the Solow model

    Science.gov (United States)

    Mimkes, Jürgen

    2010-04-01

    Economic growth depends on capital and labor and two-dimensional calculus has been applied to economic theory. This leads to Riemann and Stokes integrals and to the first and second laws of production and growth. The mathematical structure is the same as in thermodynamics, economic properties may be related to physical terms: capital to energy, production to physical work, GDP per capita to temperature, production function to entropy. This is called econophysics. Production, trade and banking may be compared to motors, heat pumps or refrigerators. The Carnot process of the first law creates two levels in each system: cold and hot in physics; buyer and seller, investor and saver, rich and poor in economics. The efficiency rises with the income difference of rich and poor. The results of econophysics are compared to neoclassical theory.

  8. Economic Harmony: An Epistemic Theory of Economic Interactions

    Directory of Open Access Journals (Sweden)

    Ramzi Suleiman

    2017-01-01

    Full Text Available We propose an epistemic theory of micro-economic interactions, termed Economic Harmony. In the theory, we modify the standard utility, by changing its argument from the player’s actual payoff, to the ratio between the player’s actual payoff and his or her aspired payoff. We show that the aforementioned minor epistemic modification of the concept of utility is quite powerful in generating plausible and successful predictions of experimental results, obtained in the standard ultimatum game, and the sequential common pool resource dilemma (CPR game. Notably, the cooperation and fairness observed in the studied games are accounted for without adding an other-regarding component in the players’ utility functions. For the standard ultimatum game, the theory predicts a division of φ and 1 − φ, for the proposer and responder, respectively, where φ is the famous Golden Ratio (≈0.618, most known for its aesthetically pleasing properties. We discuss possible extensions of the proposed theory to repeated and evolutionary ultimatum games.

  9. Foreign Direct Investment-Economic Growth Nexus

    Directory of Open Access Journals (Sweden)

    Nedra Baklouti

    2016-04-01

    Full Text Available In this paper investigates the relationship between foreign direct investment and economic growth. On the one hand the effect of FDI on the economies of the MENA region, and, on the other hand, the impact of the economic growth of these countries on the attractiveness of FDI. Our objective, in this study, is to investigate the interrelationships between economic growth and FDI by using panel data models with simultaneous equations by Generalized Method of Moments (GMM for the period 1998-2011. Our results show that there is bidirectional causality between economic growth and FDI. This implies that economic growth and FDI attractiveness are complementary. These empirical perspectives are particularly attractive to politicians because they help them build sound economic policies to sustain economic development and improve their level of attractiveness. This study aims to contribute to the exiting literature by determining the relationship between FDI and growth by three aspects: Firstly, few scientific papers treat this relationship only in the theoretical framework. Secondly, few scientific papers treat this relationship in the MENA region. Finally, previous studies had found that the nexus FDI-growth is mixed.

  10. Knowledge Infrastructure, Service Sector, And Economic Growth In Africa

    OpenAIRE

    Amon O. Okpala

    2011-01-01

    Economic theory and studies have theoretical and empirical evidence suggesting that countries which remain underdeveloped have consistently low levels of human capital, and a large agricultural sector. Of equal importance are the roles of the information technology and service sectors in improving economic growth and stability. This paper examined the extent to which non-industrial factors, such as information technology, knowledge infrastructure, and the service sectors activities helped con...

  11. Theories of International Economic Development (Case Study: Economic Development in Kosovo

    Directory of Open Access Journals (Sweden)

    MSc. Bardhok Bashota

    2012-06-01

    the appearance of the Third Technological Revolution and its role in the world, contemporary economy and as well appearance of the development problems and a need for different theoretical approach. As a separate part is presented international development and its measurement, the one that marks empty topic of analyses. Then, an important reflection on economic growth or economic development provides both multinational corporations and foreign investments, as mechanism of money. Hence, elaboration of these topics has a considerable place within this text linked to their role in the development or exploitation in different regions or countries. On the other hand, another alternative of Development Theories are presented “Theories of Addiction” which will be understood best after giving a broader explanation on economic development or non-development. This set overview will give legitimate basis or will expose more to criticism.

  12. Islam and Economic Growth in Malaysia

    National Research Council Canada - National Science Library

    bin

    2003-01-01

    .... This thesis discusses nation building by fusing Islam, pluralism, democracy, and modernity. It argues that Malaysia's religious tolerance and adherence to western development models fostered economic growth since its independence...

  13. Public Debt, Corruption and Sustainable Economic Growth

    Directory of Open Access Journals (Sweden)

    Eunji Kim

    2017-03-01

    Full Text Available There are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables. Noticing this vacancy in current literature, we strive to investigate the effect of corruption on the relationship between public debt and economic growth. For this purpose, the pooled ordinary least squares (OLS, fixed effects models and the dynamic panel generalized method of moments (GMM models (Arellano-Bond, 1991 are estimated with data of 77 countries from 1990 to 2014. The empirical results show that the interaction term between public debt and corruption is statistically significant. This confirms the hypothesis that the effect of public debt on economic growth is a function of corruption. The sign of the marginal effect is negative in corrupt countries, but public debt enhances economic growth within countries that are not corrupt, i.e., highly transparent.

  14. Implications of Fiscal Responsibility on Economic Growth

    National Research Council Canada - National Science Library

    Anca Florentina Gavriluţă (Vatamanu)

    2017-01-01

    ... preserving fiscal discipline. This study tests the implications of fiscal responsibility on economic growth with the scope to analyze and find out the major issue of responsible public finances...

  15. Mathematical Models of Economic Growth

    NARCIS (Netherlands)

    J. Tinbergen (Jan); H.C. Bos (Henk)

    1962-01-01

    textabstractEconomics Handbook Series, edited by Seymour E. Harris. In Spanish: Modelos Matematicos del Crecimiento Económico, Series ‘Biblioteca de Ciencias Sociales’, Aguilar, Madrid, 1966, XVI + 165 p. In French: Modèles Mathématiques de Croissance Economique. Series ‘Techniques Economiques

  16. Geoinformation perspectives on innovation and economic growth

    CSIR Research Space (South Africa)

    Cooper, Antony K

    2009-03-01

    Full Text Available on Development Information, Science and Technology (CODIST-1) Addis Ababa, Ethiopia, 28 April – 1 May 2009 Geoinformation perspectives on innovation and economic growth Antony K Cooper Operating Unit Fellow, CSIR, PO Box 395, Pretoria, 0001, South... and economic growth, for effective policy formulation and for planning, implementing and monitoring development projects. Geoinformation has many applications – those in resource management and urban planning are well known, but the innovative applications...

  17. On climate change and economic growth

    NARCIS (Netherlands)

    Frankhauser, S.; Tol, R.S.J.

    2005-01-01

    The economic impact of climate change is usually measured as the extent to which the climate of a given period affects social welfare in that period. This static approach ignores the dynamic effects through which climate change may affect economic growth and hence future welfare. In this paper we

  18. Food security, agricultural policies and economic growth

    NARCIS (Netherlands)

    Koning, Niek

    2017-01-01

    Using a political-economic approach supplemented with insights from human ecology, this volume analyzes the long-term dynamics of food security and economic growth. The book begins by discussing the nature of preindustrial food crises and the changes that have occurred since the 19th century with

  19. Women's economic empowerment and inclusive growth: labour ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Deyanira Carvajal

    However, the converse relationship – that economic growth promotes gender equality – is less strong. Indeed, some of .... 'Economic empowerment is about making markets work for women (at the policy level) and empowering ...... For instance, studies from Argentina by Cerrutti (2000) and Mexico by Parrada and Zenteno ...

  20. Economic Limits to Corporate Growth in America

    Science.gov (United States)

    2006-12-01

    question of how fast the economy can grow. Economists such as Krugman (1997) and Blinder (1997) both predicted inherent limits on U.S. economic growth...Age. Brookings Papers on Economic Activity, 1:2000, 125-235. Krugman , P. (1997). How fast can the U.S. economy grow? Harvard Business Review, (July

  1. Islamic Banking and Economic Growth

    Directory of Open Access Journals (Sweden)

    Mosab I. Tabash

    2014-09-01

    Full Text Available This paper explores empirically the relationship between the development of Islamic finance system and economic growth and its direction in Qatar. Using econometric analysis, annually time-series data of economic growth and Islamic banks’ financing from 1990 to 2008 were used. We use Islamic banks’ financing funds given by Islamic banks as a proxy for the development of Islamic finance system and Gross Domestic Product (GDP, and Gross Fixed Capital Formation (GFCF as proxies for real economic growth. For the analysis, the unit root test, cointegration test and Granger causality tests were done. The empirical results generally signify that in the long run, Islamic banks’ financing is positive and significantly correlated with economic growth in Qatar which reinforces the idea that a well-functioning banking system promotes economic growth. Furthermore, the results show that Islamic banks’ financing has contributed to the increase of investment in the long term and in a positive way in Qatar. It is one of the first pioneering studies on Islamic Banking and economic growth in Qatar, and the first to be conducted in Middle East as well, thus it has a significant contribution to the body of knowledge The findings of research will be of interest to western and Islamic finance practitioners, policy makers and academicians, who are interested in Islamic finance industry.

  2. Four Centuries of British Economic Growth

    DEFF Research Database (Denmark)

    Madsen, Jakob B.; Ang, James B.; Banerjee, Rajabrata

    2010-01-01

    of two competing second-generation endogenous growth models to account for the British growth experience. The results suggest that innovative activity was an important force in shaping the Industrial Revolution and that the British growth experience is consistent with Schumpeterian growth theory.......Using long historical data for Britain over the period 1620–2006, this paper seeks to explain the importance of innovative activity, population growth and other factors in inducing the transition from the Malthusian trap to the post-Malthusian growth regime. Furthermore, the paper tests the ability...

  3. When economic growth is less than exponential

    DEFF Research Database (Denmark)

    Groth, Christian; Koch, Karl-Josef; Steger, Thomas

    2010-01-01

    This paper argues that growth theory needs a more general notion of "regularity" than that of exponential growth. We suggest that paths along which the rate of decline of the growth rate is proportional to the growth rate itself deserve attention. This opens up for considering a richer set...... of parameter combinations than in standard growth models. And it avoids the usual oversimplistic dichotomy of either exponential growth or stagnation. Allowing zero population growth in three different growth models (the Jones R&D-based model, a learning-by-doing model, and an embodied technical change model......) serves as illustration that a continuum of "regular" growth processes fill the whole range between exponential growth and complete stagnation....

  4. When Economic Growth is Less than Exponential

    DEFF Research Database (Denmark)

    Groth, Christian; Koch, Karl-Josef; Steger, Thomas M.

    This paper argues that growth theory needs a more general notion of "regularity" than that of exponential growth. We suggest that paths along which the rate of decline of the growth rate is proportional to the growth rate itself deserve attention. This opens up for considering a richer set...... of parameter combinations than in standard growth models. And it avoids the usual oversimplistic dichotomy of either exponential growth or stagnation. Allowing zero population growth in three different growth models (the Jones R&D-based model, a learning-by-doing model, and an embodied technical change model......) serve as illustrations that a continuum of "regular" growth processes fill the whole range between exponential growth and complete stagnation....

  5. Economic Growth and Government Spending Nexus: Empirical ...

    African Journals Online (AJOL)

    The results highlight the need for policy makers to shift public outlays towards investment in physical infrastructure which will stimulate growth and consequently improve fiscal sustainability as opposed to recurrent expenditure. Keywords: Economic Growth, Fiscal Policy, Cointegration, Causality, Wagner' Law ...

  6. Financial development, uncertainty and economic growth

    NARCIS (Netherlands)

    Lensink, B.W.

    By performing a cross-country growth regression for the 1970-1998 period this paper finds evidence for the fact that the impact of policy uncertainty on economic growth depends on the development of the financial sector. It appears that a higher level of financial development partly mitigates the

  7. Export Specialisation and Local Economic Growth

    NARCIS (Netherlands)

    Naude, Wim; Bosker, Maarten; Matthee, Marianne

    This paper aims to provide empirical evidence on whether export specialization or diversification is better for local economic growth. Using export data from 354 magisterial districts of South Africa for 1996 and 2001 we estimate spatial growth regressions that include measures of the degree of

  8. Conflict Between Economic Growth and Environmental Protection

    Energy Technology Data Exchange (ETDEWEB)

    Czech, Bryan

    2012-01-09

    The conflict between economic growth and environmental protection may not be reconciled via technological progress. The fundamentality of the conflict ultimately boils down to laws of thermodynamics. Physicists and other scholars from the physical sciences are urgently needed for helping the public and policy makers grasp the conflict between growth and environmental protection.

  9. The role of energy in economic growth.

    Science.gov (United States)

    Stern, David I

    2011-02-01

    This paper reviews the mainstream, resource economics, and ecological economics models of growth. A possible synthesis of energy-based and mainstream models is presented. This shows that when energy is scarce it imposes a strong constraint on the growth of the economy; however, when energy is abundant, its effect on economic growth is much reduced. The industrial revolution released the constraints on economic growth by the development of new methods of using coal and the discovery of new fossil fuel resources. Time-series analysis shows that energy and GDP cointegrate, and energy use Granger causes GDP when capital and other production inputs are included in the vector autoregression model. However, various mechanisms can weaken the links between energy and growth. Energy used per unit of economic output has declined in developed and some developing countries, owing to both technological change and a shift from poorer quality fuels, such as coal, to the use of higher quality fuels, especially electricity. Substitution of other inputs for energy and sectoral shifts in economic activity play smaller roles. © 2011 New York Academy of Sciences.

  10. Competitiveness and Economic Growth in Romanian Regions

    Directory of Open Access Journals (Sweden)

    Simionescu Mihaela

    2016-12-01

    Full Text Available Considering the fact that Romanian economy competitiveness is not based on innovation and investment in human capital, this study makes an empirical evaluation of the impact of occupation and unemployment in Romanian counties on the economic growth. The approach based on panel vector-autoregressive (panel VAR models indicated a negative impact of occupation and activity rate in 42 Romanian counties on the economic growth during 2006-2014. On the other hand, the real economic growth was achieved at high unemployment rates. These results are contrary to previous studies in literature and are due to a structural economic crisis and to lack of labour productivity and investment in human capital. Further policy measures should focus on structural unemployment decrease, more skilled labour force according to labour market needs, lifelong learning, higher performance and quality of education system, promotion of social inclusion, poverty control.

  11. Human Capital, Technology, and Economic Growth

    Directory of Open Access Journals (Sweden)

    Chindo Sulaiman

    2015-11-01

    Full Text Available This article investigated the impact of human capital and technology on economic growth in Nigeria. We employed annual time series data for the period of 35 years (1975-2010 and applied autoregressive distributed lag approach to cointegration to examine the relationship between human capital, technology, and economic growth. Two proxies of human capital (secondary and tertiary school enrollments were used in two separate models. The cointegration result revealed that all the variables in the two separate models were cointegrated. Furthermore, the results of the two estimated models showed that human capital in form in secondary and tertiary school enrollments have had significant positive impact on economic growth. More so, technology also shows significant positive impact on economic growth. In a nutshell, both human capital and technology are important determinants of growth in Nigeria. Therefore, improvement of the educational sector and more funding for research and development (R&D to encourage innovations are needed to facilitate Nigeria’s sustained economic growth.

  12. Entrepreneurship Education and Economic Growth

    DEFF Research Database (Denmark)

    Pedersen, Jonna; Lindquist, Carl Rickard

    The joint interest in disseminating an entrepreneurial mindset to the students even before graduation has led to cooperation between VIA University College and the Central Denmark Region to support entrepreneurship in the Professional Bachelor’s degree programmes at VIA University College....... This paper addresses the presumptions behind the project. The presumptions in relation to entrepreneurship demonstrate that the effort should target both growth entrepreneurs and SMEs in a wide sense; there is a need for growth entrepreneurs with ambitions to generate breakthrough innovation as well...... as the many others with more modest ambitions about incremental innovation. In relation to education and training this concerns the combination of curricular and non-curricular activities. Entrepreneurship teaching must be realised in close cooperation with the degree programmes and should focus on both...

  13. Public Spending and Economic Growth

    OpenAIRE

    Renato BALDUCCI

    2003-01-01

    My intention in this brief essay is to verify whether the results obtained by Barro (1990) and by Alesina and Rodrick (1994) in relation to the influence of public investments on the economy’s rate of growth are also confirmed when a share of public spending is allocated to public consumption in the economy’s utility function. Introducing a positive externality on private consumption into the intertemporal optimization problem seemingly generates less unequivocal results about the role of pub...

  14. Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications

    NARCIS (Netherlands)

    van den Bergh, J.C.J.M.; Gowdy, J.M.

    2000-01-01

    Recent advances in evolutionary theory have important implications for environmental economics. A short overview is offered of evolutionary thinking in economics. Subsequently, major concepts and approaches in evolutionary biology and evolutionary economics are presented and compared. Attention is

  15. Trade Liberalisation and Economic Growth in Macedonia

    Directory of Open Access Journals (Sweden)

    Mano-Bakalinov Viktorija

    2016-12-01

    Full Text Available The objective of this paper is to explore the effects of trade on Macedonian economic growth. The autoregressive distributed lag (ARDL model is applied on yearly data over the period of 1993-2014. Empirical investigation reveals that an increase of population and openness demonstrate a positive and significant effect on Macedonian economic growth. Given other diverging findings, this suggests that the relationship between trade reforms and growth through the productivity function may vary across transition economies. Nevertheless, the findings of this paper indicate that policies focusing on market liberalisation and opening the economy to trade have a positive effect on Macedonian economic growth, both in the short run and the long run.

  16. The general equilibrium theory as economic metatheory

    Directory of Open Access Journals (Sweden)

    MAURICIO MARTINELLI LUPERI

    2015-06-01

    Full Text Available Many economists show certain nonconformity relative to the excessive mathematical formalization of economics. This stems from dissatisfaction with the old debate about the lack of correspondence between mainstream theoretical models and reality. Although we do not propose to settle this debate here, this article seeks to associate the mismatch of mathematized models with the reality of the adoption of the hypothetical-deductive method as reproduced by general equilibrium. We begin by defining the main benefits of the mathematization of economics. Secondly, we address traditional criticism leveled against it. We then focus on more recent criticism from Gillies (2005 and Bresser-Pereira (2008. Finally, we attempt to associate the reproduction of the hypothetical-deductive method with a metatheoretical process triggered by Debreu's general equilibrium theory. In this respect, we appropriate the ideas of Weintraub (2002, Punzo (1991, and mainly Woo (1986 to support our hypothesis.

  17. Critique of the neoclassical theory of growth and distribution

    Directory of Open Access Journals (Sweden)

    Luigi L. Pasinetti

    2000-12-01

    Full Text Available The paper surveys the main theories of income distribution in their relationship with the theories of economic growth. First, the Classical approach is considered, focusing on the Ricardian theory. Then the neoclassical theory is discussed, highlighting its origins (Bohm-Bawerk, Wicksell, Clark and the role of the aggregate production function. The emergence of a "Keynesian" theory of income distributionin the wake of Harrod's model of growth is then recalled together with the surprising resurgence of the neoclassical theory (following the contributions of Solow and Meade. But, as the paper shows, the neoclassical theory of income distributionlacks logical consistency and has shaky foundations, as has been revealed by the severecritiques moved to the neoclassical production function. Mainstream economic literature circumvents this problem by simply ignoring it, while the models of endogenous growth exclude the issue of distribution theory from their consideration. However, while mainstream economics bypasses the problems of incomedistribution, this is too relevant an issue to be ignored and a number of new research lines, briefly surveyed, try new approaches to it.

  18. Economic Growth and Landscape Change

    Science.gov (United States)

    Prato, Tony; Fagre, Dan

    2007-01-01

    Prato and Fagre offer the first systematic, multi-disciplinary assessment of the challenges involved in managing the Crown of the Continent Ecosystem (CCE), an area of the Rocky Mountains that includes northwestern Montana, southwestern Alberta, and southeastern British Columbia. The spectacular landscapes, extensive recreational options, and broad employment opportunities of the CCE have made it one of the fastest growing regions in the United States and Canada, and have lead to a shift in its economic base from extractive resource industries to service-oriented recreation and tourism industries. In the process, however, the amenities and attributes that draw people to this “New West” are under threat. Pastoral scenes are disappearing as agricultural lands and other open spaces are converted to residential uses, biodiversity is endangered by the fragmentation of fish and wildlife habitats, and many areas are experiencing a decline in air and water quality.

  19. Cultural diversity and economic growth

    DEFF Research Database (Denmark)

    Ager, Philipp; Brückner, Markus

    2013-01-01

    We exploit the large inflow of immigrants to the US during the 1870–1920 period to examine the effects that within-county changes in the cultural composition of the US population had on output growth. We construct measures of fractionalization and polarization to distinguish between the different...... effects of cultural diversity. Our main finding is that increases in cultural fractionalization significantly increased output, while increases in cultural polarization significantly decreased output. We address the issue of identifying the causal effects of cultural diversity by using the supply......-push component of immigrant inflows as an instrumental variable....

  20. INNOVATIVE ASPECTS OF ECONOMIC GROWTH (THE REGION

    Directory of Open Access Journals (Sweden)

    Sergei A. Orekhov

    2014-01-01

    Full Text Available Principles of implementation of innovativetechnologies are positioned as a priorityarea for development in the managementof economic processes in the modernRussian economy. Declares that they are the economic growth of the country. This paper discusses the practice of building existing schemes of organization ofthe economy, which is why the definingelement of this process is the businessclass passengers - is the situation quitedependent and extremely nekomfortnomsituation.

  1. Budget Deficits Effects on Economic Growth

    OpenAIRE

    L.C.Risti; C. Nicolaescu; D.Tăgăduan

    2013-01-01

    The budget deficit can not be analyzed autarchically, as it affects all the macroeconomic processes and, is itself influenced by all other macroeconomic indicators. Most analyses and studies on public finance and budget balance measure the impact that budgetary deficits accumulation has on economy. Therefore, the present paper aims at following and analyzing the mutual impact between budget deficit and another economic macro indicator, namely the economic growth.

  2. Role of vaccination in economic growth.

    Science.gov (United States)

    Quilici, Sibilia; Smith, Richard; Signorelli, Carlo

    2015-01-01

    The health of a population is important from a public health and economic perspective as healthy individuals contribute to economic growth. Vaccination has the potential to contribute substantially to improving population health and thereby economic growth. Childhood vaccination programmes in Europe can offer protection against 15 important infectious diseases, thus preventing child fatalities and any serious temporary and permanent sequelae that can occur. Healthy children are more able to participate in education, thus preparing them to become healthy and productive adults. Vaccination programmes can also prevent infectious diseases in adolescents, thus allowing them to continue their development towards a healthy adulthood. Protecting adults against infectious diseases ensures that they can fully contribute to productivity and economic development by avoiding sick leave and lower productivity. Vaccination in older adults will contribute to the promotion of healthy ageing, enabling them to assist their familiy with, for instance, childcare, and also help them avoid functional decline and the related impacts on health and welfare expenditure. Effective vaccination programmes for all ages in Europe will thus contribute to the European Union's 2020 health and economic strategies. Indeed, beyond their impact on healthcare resources and productivity, reductions in mortality and morbidity also contribute to increased consumption and gross domestic product. Therefore, assessment of the value of vaccines and vaccination needs to consider not just the direct impact on health and healthcare but also the wider impact on economic growth, which requires a macroeconomic analysis of vaccination programmes.

  3. Economic Growth, Climate Change, and Obesity.

    Science.gov (United States)

    Minos, Dimitrios; Butzlaff, Iris; Demmler, Kathrin Maria; Rischke, Ramona

    2016-12-01

    Human and planetary health as well as economic growth are firmly interlinked and subject to complex interaction effects. In this paper, we provide an overview of interlinkages between economic growth, climate change, and obesity focusing on recent advances in the literature. In addition to empirical findings, we discuss different theoretical frameworks used to conceptualize these complex links and highlight policy options and challenges. We conclude that policies addressing both climate change and obesity simultaneously are particularly promising and often suitable for ensuring sustainable development.

  4. Does Political Ideology Affect Economic Growth?

    DEFF Research Database (Denmark)

    Bjørnskov, Christian

    2005-01-01

    This paper asks the question whether political ideology affects economic growth. Voters may demand inefficient levels of redistribution and government intervention, and they may care too little for aspects that really matter for the economy. Their norms and perceptions of society might, via...... their political ideology, affect economic performance. The paper presents evidence suggesting that rightwing societies have grown faster in the last decades than other democratic societies. Further analysis suggests that these societies develop better legal systems and less government intervention, which in turn...... explain some but not all of the growth difference....

  5. Parameters of Economic Growth in Kosovo

    Directory of Open Access Journals (Sweden)

    Shkumbin Misini

    2016-01-01

    Full Text Available This paper analysis the macroeconomic components that influenced macroeconomic growth in a country, more concretely, the focus will be on the measurement of components that affected economic growth under nominal GDP, in Kosovo. We intend to found out which component of nominal GDP has the biggest and the lowest influence on economic growth. Thus, in order to measure it, GDP components must be analysed: consumption measurement, investments measurement, government expenditures measurement and export measurement. These parameters will be measured by analysing their importance in relation to one another, and the major influence on the growth of nominal GDP. The paper includes a graphic analysis of nominal GDP in relation to consumption, investments, governmental expenses and export.

  6. The Study on Factors of Health Economics and Economic Growth in Iran

    Directory of Open Access Journals (Sweden)

    Naghmeh Ghorashi

    2013-10-01

    Full Text Available Introduction: Economic development and public welfare are some of macroeconomic goals for any country. Health economy is one of the parameters as criterion for action in evaluation of this important subject. The present study has been intended to investigate into the relationship among factors of health economy including total health expenditures (some percent of Gross Domestic Product GDP, life expectancy, Infant mortality rate, and Population age 65 and above as a percentage of the total population on Iranian economic growth minus petroleum. Materials and Methods: In order to estimate this ratio, the needed study has been carried out by the aid of a econometric model based on Aggregated Growth Theories and according to indices of healthcare economy within time interval 1996:1-2010:4 and by means of Dynamic Ordinary Least Squares (DOLS. Conclusion: The results of the estimations suggest that among four factors of in the field of health economy in this survey, two factors, i.e total health expenditures (as some percent of GDP and Population age 65 and above as a percentage of the total population have been positively and significantly affected on Iranian economic growth during career of study. Although, other known variables in economic growth models such as financial development and foreign commercial parameters like exportations and importations have also affected on Iranian economic growth minus petroleum positively and significantly in accordance with the existing expectations and theories. Results: Thus, it seems that the authorities and policy- makers in the field of healthcare of this country may prepare the ground for boosting economic growth of this country through increasing healthcare and medical costs by orientation of development and deepening the healthcare infrastructures and system in the future.

  7. Economic institutions and economic growth: Empirical evidence from the Economic Community of West African States

    Directory of Open Access Journals (Sweden)

    Lazarus Z. Wanjuu

    2017-12-01

    Background: Economic institutions are considered as the fundamental cause of economic growth. Economic institutions affect economic growth through allocation of resources like physical and human capital. Unfortunately, there is dearth of empirical studies showing the impact of economic institutions on growth of the Economic Community of West African States (ECOWAS. Aim: This study investigates the impact of economic institutions on economic growth of the ECOWAS. Setting and method: The study applied cause and effect relationship. The study used econometric research techniques of unit root and co-integration tests to establish the time series properties of the data; the vector error correction and co-integration regression models to estimate the population parameters. The research data comprised data obtained from the United Nations Conference on Trade and Development (UNCTAD, the Transparency International (TI and Heritage Foundation databases. The variables employed were the real gross domestic product (GDP per capita (RGDPPC, corruption perception index (CPI, property rights protection (PROPRGT, private investment per capita (INVESPC, government expenditure per capita (GOEXPPC and trade openness (TRAOPN. Results: The results of the data analysed showed that economic institutions represented by the property rights index engender RGDPPC growth in ECOWAS. The CPI could not stimulate RGDPPC growth in ECOWAS. The results also show that all the other variables stimulated growth except trade openness. Conclusion: The study concludes that good economic institutions, private investments, and government intervention by providing security, economic and social infrastructural facilities are conducive for economic growth in the ECOWAS region. The study recommended that more efforts be made at curbing corruption in the region

  8. The impact of women's political representation on economic growth ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    This research project will generate evidence on how women's political participation influences the connection between economic growth and women's economic empowerment. Women, politics, growth Economic growth can have positive effects on women's economic empowerment, but the growth depends on supportive ...

  9. Life Insurance Contribution, Insurance Development and Economic Growth in China

    National Research Council Canada - National Science Library

    Wang Ying, Yin Linsen, Pan Wenjie

    2017-01-01

    ... (including life insurance and non-life insurance) and economic growth, reveals the contribution law of the insurance development in economic growth in the short and long term from both economic scale and quality respectively...

  10. THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON ECONOMIC GROWTH: TURKISH CASE

    OpenAIRE

    Iscan, Erhan

    2012-01-01

    In the modern economic perspective information and communication technology is seen as an important production factor by reason of knowledge-driven (new) economy. Many researches assess that knowledge, innovation and technological changes become important factor for economic growth. Furthermore modern growth theory highlights the importance of knowledge for economic growth. Depending on this, investing on information and communication technology becomes more important. Therefore, determining ...

  11. The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence

    OpenAIRE

    Diaz-Bautista, Alejandro

    2002-01-01

    Understanding the sources of regional economic growth in Mexico is important. Hence, in this paper, I will briefly discuss developments in the theory of economic growth and discuss the theoretical work in the Mexican context, and review some of the more recent empirical studies dealing with public infrastructure and economic growth. The development of regions in the periphery is of special concern to the development of the Mexican Economy. The regional planning approach in Mexico emphasizes s...

  12. ICTs, Economic Growth and Poverty | IDRC - International ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    In the struggle against poverty, Sénégal has adopted strategies such as that of accelerated growth, which integrate new information and communication technologies (ICTs) as a lever for economic and social development. However, most of the efforts touting the role of ICTs in poverty reduction emphasize their ...

  13. Social Capital and Regional Economic Growth

    NARCIS (Netherlands)

    Beugelsdijk, S.; van Schaik, A.B.T.M.

    2001-01-01

    We study a cross-section of 54 European regions in the period 1950-1998.The central question is whether social capital, in the form of generalized trust and associational activity, is related to regional differences in economic growth. Based on extensive robustness tests, we present evidence that

  14. Entrepreneurship, structural change, and economic growth

    NARCIS (Netherlands)

    Noseleit, Florian

    The ability to adjust to structural change is vital to economic development, and entries can be active participants in this process. While the importance of factor reallocations for growth is widely discussed, the role of entrepreneurs in managing these reallocations is currently not well

  15. Economic growth, sectoral structure and unemployment

    NARCIS (Netherlands)

    de Groot, H.L.F.

    1998-01-01

    This thesis consists of three parts that deal with the relationship between the relative wealth of nations, economic growth, and the sectoral structure of economies. In the first part, the focus is on the relative stagnancy of Europe versus the USA in terms of productivity levels and unemployment.

  16. Human Capital Composition and Economic Growth

    Science.gov (United States)

    Tsai, Chun-Li; Hung, Ming-Cheng; Harriott, Kevin

    2010-01-01

    The objective of this paper is to analyze the effect of various compositions of human capital on economic growth. We construct alternative measures of human capital composition using five fields of study. In each instance, the measure represents the number of graduates in the respective field as a percentage of all graduates. The measures are as…

  17. DEFENSE EXPENDITURE AND ECONOMIC GROWTH: THE ...

    African Journals Online (AJOL)

    None

    economy. Benoit (1973, 1978) argued that with increase in military expenditure, economic growth can be promoted by increasing human capital capabilities of the workforce through provisions of education ... spending is financed by taxation, taxation will not only reduce the amount of resources available to the private sector ...

  18. Economic growth and funded pension systems

    NARCIS (Netherlands)

    Bijlsma, M.; van Ewijk, C.; Haaijen, F

    2014-01-01

    Growing pension savings lead to deeper capital markets. This can have a positive effect on economic growth by allowing firms that are more dependent on external financing to grow faster. We study this effect using data on 69 industrial sectors in 34 OECD countries for the period 2001-2010 through a

  19. Growth and Economic Opportunities for Women | IDRC ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Growth and Economic Opportunities for Women. Language English. How can we improve women's livelihoods, enabling them to pursue better paid and more productive jobs, accumulate assets, and contribute to ... In Mexico, for example, 80% of the 20 million youth who are unemployed and not in school are women.

  20. Career Education: Contributions to Economic Growth.

    Science.gov (United States)

    Bolino, August C.

    The author traces the development of career education in the United States since 1900, to counter earlier studies which included only formal education, in assessing human capital input. The book deals mainly with the contribution of nonformal education to economic growth as related to eight types of schooling: apprenticeships, adult education,…

  1. The role of human capital formation in the transition to modern economic growth, 1300-1900

    NARCIS (Netherlands)

    de Pleijt, A.M.|info:eu-repo/dai/nl/375805621

    2016-01-01

    Economic models of the Industrial Revolution increasingly emphasize the key role of human capital in promoting economic growth, and empirical studies have shown that education is a strong predictor of per capita GDP. Contrary to the theory, however, economic historians have described the role of

  2. Economic Growth of a Rapidly Developing Economy: Theoretical Formulation

    Directory of Open Access Journals (Sweden)

    Oleg Sergeyevich Sukharev

    2016-06-01

    Full Text Available The subject matter of the article is the description of economic growth. Modern economy is characterized by a high rate of changes. These changes are the limiting parameters of modern development, which requires a modification of the basic models of growth, the substantiation of the expediency and necessity of a rapid development strategy. In a simple mathematical form, the statement of the problem of economic growth in the “green economy” is examined, in which the costs of environmental measures are not considered a priori as hampering economic development (as it is common for a number of modern neoclassical and neo-Keynesian growth models. The methodological basis of the article are the econometric approach and modelling method. The article has a theoretical character. The main hypothesis supposes that the rapid development strategy cannot make an adequate development strategy under certain conditions, but may be acceptable in other its specific conditions. In this sense, the important growth conditions are the availability of resources, the effectiveness of institutions and the current economic structure, the technological effectiveness of economy, as well as the conditions of technological development (“green economy” and the path of such development. In the article, on the theoretical level of analysis, the substantiation of the adequacy of the rapid development strategy for an economic system is given, whose goal is to achieve the standard of living of the countryleader. Based on the assumptions introduced, the period for which the rapid development strategy might be implemented and the economic lag of the country might be reduced from the country-leader is determined. The conditions that ensure the impact of innovations on the rate of economic development are summarized. The introduced range of dependencies and relations can be useful for the elaboration of the theory of innovation development and for the formation of a new

  3. Energy return on investment: Theory and application to biophysical economics

    Science.gov (United States)

    Murphy, David J.

    This dissertation is comprised of an introduction and five manuscripts split into two main sections: theory and application. Manuscripts one and four have been published, manuscript three has been accepted for publication, and manuscripts two and five are currently in review for publication. The theory sections contains the first two manuscripts. The first manuscript is a review of the literature on Energy Return on Investment (EROI) analysis. I cover five areas in this manuscript, including: (1) EROI and corn ethanol, (2) EROI for most major fuels, (3) alternative EROI applications, (4) EROI and the economy, and (5) the minimum EROI for society. The second manuscript provides a methodological framework for performing EROI analysis. I cover the following areas in this manuscript: (1) boundaries of analysis, (2) energy quality corrections, (3) energy intensity values, and lastly (4) alternative EROI statistics. The applications section contains manuscripts three through five. The third manuscript provides a biophysical model of economic growth indicating that the feedback mechanisms between oil supply and oil price have created a growth paradox: maintaining business as usual economic growth will require the production of new sources of oil, yet the only sources of oil remaining require high oil prices, thus hampering economic growth. The fourth manuscript is a study on the geographic variability of corn ethanol production. The main conclusions of this study were: (1) the statistical error associated with calculating the EROI of corn ethanol was enough to cast doubt as to whether corn ethanol yields net energy, and (2) failure to account for the geographic variation in corn yields and fertilizer inputs artificially inflated previous estimates of the EROI or corn ethanol. In the fifth manuscript I measure the impact of the Urban Heat Island within the metropolitan area of San Juan, Puerto Rico, on the electricity demand within the city. I calculated that the UHI

  4. Inequality, redistribution and growth : Theory and evidence

    NARCIS (Netherlands)

    Haile, D.

    2005-01-01

    From a macro-perspective, the thesis provides a political economic model that analyses the joint determination of inequality, corruption, taxation, education and economic growth in a dynamic environment. It demonstrates how redistributive taxation is affected by the distribution of wealth and

  5. "Economics Imperialism", Education Policy and Educational Theory

    Science.gov (United States)

    Allais, Stephanie

    2012-01-01

    This paper examines how economics imperialism (the increasing colonization of other disciplines by neoclassical economics) has affected contemporary education policies. I suggest that an increasing preoccupation with education meeting the needs of the economy, together with the prevalence of economic concepts outside of economics, have contributed…

  6. New approaches to business cycle theory in current economic science

    Directory of Open Access Journals (Sweden)

    Monica DOBRESCU

    2012-07-01

    Full Text Available In modern economies, current research generally acknowledges that the central issues in macroeconomics are essentially the same as those identified by Keynes in the General Theory of Employment, Interest and Money. One way or the other, economists are trying to address the same macroeconomic issues that they did seven decades ago: How can we account for the different growth rates and various fluctuations observed in national economies? Which are the economic policies most suitable to solve the issues of growth and cyclic behavior? Both the new classicals and the new Keynesians have made considerable progress within their research paradigms: to explain economic fluctuations, the new classicals focus on technological perturbations, the intertemporal substitution of leisure and real business cycles; on the other hand, the new Keynesians speak in terms of monopolistic competition, menu costs or efficiency wages. On the whole, the new classicals believe that the business cycle can best be understood within the market-clearing model, whereas the new keynesians believe that business fluctuations are due to certain market failures of various sorts.The present paper focuses on the main directions of research of the new classical school on the business cycle, given that the theoretical progress in this field has been significant and relevant for economic policy during the past four decades.

  7. How Does Social Trust Affect Economic Growth?

    DEFF Research Database (Denmark)

    Bjørnskov, Christian

    Social capital in the form of generalized trust has been shown to be a determinant of economic growth in a number of studies. Other studies have explored other consequences of trust, such as its effects on governance, corruption, education and investment. This paper connects the two strands...... of literature by estimating the effects of trust on growth through a set of potential transmission mechanisms directly. It does so by modelling the process using a three-stage least squares estimator on a sample of countries for which a full data set is available. The results indicate that trust affects...

  8. Implications of Fiscal Responsibility on Economic Growth

    Directory of Open Access Journals (Sweden)

    Anca Florentina Gavriluţă (Vatamanu

    2017-04-01

    Full Text Available Governmental decisions play an important role in the critical periods of the economy and usually in base of the strategy adopted, can make an effective contribution to the budget process while preserving fiscal discipline. This study tests the implications of fiscal responsibility on economic growth with the scope to analyze and find out the major issue of responsible public finances. In base of logistic regression results, the study leads to the conclusion that may be wise to re-evaluate plans to cut net government revenue in future budgets and instead take a more strategic approach to nurturing growth in the EU economy.

  9. Exports, capital formation and economic growth in South Africa ...

    African Journals Online (AJOL)

    In South Africa the export sector is frequently accorded a special role in encouraging faster economic growth. Nonetheless, a question that remains unresolved is whether higher export growth indeed leads to higher economic growth and what particular role exports may play within the overall economic growth process of the ...

  10. Green economic growth premise for sustainable development

    OpenAIRE

    Carmen Lenuţa TRICĂ; Marilena PAPUC

    2013-01-01

    Accelerating the global issues such as natural resource depletion, damage to the natural environment, economic and financial crises and consumption growth led to the shift of the development paradigm from consumption to sustainable development and recognition of the new path, namely green economy. At the European level a number of international organizations discussed issues of transition to green economy (EC, UNEP, OECD). In 2008, UNEP launched “Green Economy Initiative to Get the Global Mar...

  11. Relationship of Economic Growth with Tourism Sector

    Directory of Open Access Journals (Sweden)

    Abdul Holik

    2016-06-01

    Full Text Available This research aims to analyze the impact of  foreign tourists towards the economic growth. It was conducted from 1995 until 2012 on five ASEAN member countrie: Indonesia, Malaysia, Thailand, Philippines, and Singapore. It used the quantitative method; it is one-way random effect of panel regression. The data, which is functioned as dependent variables, were taken from WDI (World Development Indicator of the World Bank for the Gross Domestic Product (GDP. Meanwhile, the data of revenue from the foreign tourist visit (Rec, the number of foreign tourist arrival (Arr, and the exchange rate (Xrate are functioned as the independent variables. Based on the research result, there is evidence that international tourism can increase the economic growth in those countries. The three independent variables have a positive and  significant impact to the dependent variables. Based on the findings, the governments of five ASEAN member countries should be able to maintain the sustainability of tourism sector in order to be stronger and to have global market-orientation. In fact, tourism services can support the  economic growth because the potential of those ASEAN countries cannot be taken lightly.

  12. Relationship of Economic Growth with Tourism Sector

    Directory of Open Access Journals (Sweden)

    Abdul Holik

    2016-06-01

    Full Text Available This research aims to analyze the impact of foreign tourists towards the economic growth. It was conducted from 1995 until 2012 on five ASEAN member countrie: Indonesia, Malaysia, Thailand, Philippines, and Singapore. It used the quantitative method; it is one-way random effect of panel regression. The data, which is functioned as dependent variables, were taken from WDI (World Development Indicator of the World Bank for the Gross Domestic Product (GDP. Meanwhile, the data of revenue from the foreign tourist visit (Rec, the number of foreign tourist arrival (Arr, and the exchange rate (Xrate are functioned as the independent variables. Based on the research result, there is evidence that international tourism can increase the economic growth in those countries. The three independent variables have a positive and significant impact to the dependent variables. Based on the findings, the governments of five ASEAN member countries should be able to maintain the sustainability of tourism sector in order to be stronger and to have global market-orientation. In fact, tourism services can support the economic growth because the potential of those ASEAN countries cannot be taken lightly.

  13. Effects of Credit on Economic Growth, Unemployment and Poverty

    Directory of Open Access Journals (Sweden)

    Mangasa Augustinus Sipahutar

    2016-06-01

                  Effect of credit on economic growth, unemployment and poverty provides evidence from Indonesia on the role of banks credit for promoting economic growth and reducing both unemployment and poverty.  To document the link between banks credit and economic growth, we estimate a VAR model and variance decompositions of annual GDP per capita growth rates to examine what proxy measures of banks credit are most important in accounting for economic growth over time and how much they contribute to explaining economic growth.  We also estimate an ECM to document the relationship between banks credit to both unemployment and poverty.  This paper revealed bi-direction causality between banks credit and economic growth.  Banks credit promotes economic growth and economic growth affects credit depth and financial development.  Furthermore, banks credit is a growth accelerating factor on Indonesian economic growth.  Banks credit is an endogenous growth and a good predictor on Indonesian economy. Our estimation model explained that credit allocated by banks increases business escalation to the real sectors then promotes economic growth, decreases unemployment rate through increasing in labor demanded, increases income and then decrease poverty.  This overall transmission mechanism just occurred through presence of banks credit by increasing money supply to the real sectors, promotes growth and social welfare.   Keywords :  banks credit, economic growth, growth accelerating factor, poverty, unemployment   JEL Classification : E51, E52, E58

  14. COAL CONSUMPTION AND ECONOMIC GROWTH IN TURKEY

    Directory of Open Access Journals (Sweden)

    Alper Aslan

    2013-01-01

    Full Text Available This aim of this paper is to use asymmetric causality tests to examine the coal consumption and Gross Domestic Product (GDP relationship in Turkey based on data from 1980 to 2006. To investigate this relationship, a multivariate system is employed by including fixed capital formation and labor force variables into the model. The empirical results obtained from asymmetric causality tests show no causality for coal consumption and GDP relationship in Turkey. The results indicate that coal consumption does not affect growth; hence, energy conservation policies may be pursued without adversely affecting growth in Turkey. Thus, neutrality hypothesis is confirmed for Turkey. This means that a decrease in coal consumption does not affect economic growth and vice versa. In this case, policymakers should explore the feasibility of either decreasing the coal consumption or increasing the efficiency of coal consumption.

  15. Human capital and economic growth in India, Indonesia, and Japan: a quantitative analysis, 1890-2000

    NARCIS (Netherlands)

    Leeuwen, B. van

    2007-01-01

    After World War II at the height of decolonization, the analysis of the underlying process of economic growth became a topic of high priority. The neo-classical, Solowian, growth theory, with all its limitations, was embraced by economists and historians alike, resulting in countless growth

  16. SUSTAINABLE ECONOMIC GROWTH AND ECO-EFFICIENCY

    Directory of Open Access Journals (Sweden)

    Mariana\tLUPAN

    2015-06-01

    Full Text Available The current economic and social contexts have brought forth the issues regarding growth and sustainability. The concept of growth has always been linked to an increase in consumption levels, and this inevitably led to pressures on the environment and on the resources that support human activity. Given these circumstances, the question whether we can avoid an environmental disaster while maintaining economic growth, has become more stringent. We chose to approach this aspect by examining the concept of eco-efficiency, a concept that embodies aspects of both economic efficiency and environmental efficiency. Eco-efficiency can be regarded as the effectiveness with which resources are used in order to create products and services that satisfy human needs. Based on this idea, the last decade has produced an increasing number of studies on eco-efficiency and how it can be measured and implemented in the production of goods and services, but also in the field regarding demand patterns. An analysis regarding the aspects of eco-efficiency at the macro level of the Romanian economy is in line with the current environmental concerns, thus I have chosen to cover these questions, as well as the evolution of the locale economy towards a more sustainable development. The outcome of the examined aspects shows that, in spite of an increase in eco-efficiency levels, energy and material consumption and emissions have increased. This raises the question if measuring economic and environmental efficiency by reporting to the GDP value is becoming obsolete and if there is a need to revaluate eco-efficiency indicators in order to measure the transition to a greener and more sustainable development from different points of view.

  17. Economic Growth and Sustainable Housing: An Uneasy Relationship

    DEFF Research Database (Denmark)

    Buch-Hansen, Hubert

    2017-01-01

    Book review of: "Economic Growth and Sustainable Housing: An Uneasy Relationship" by Jin Xue (Routledge, 2014)......Book review of: "Economic Growth and Sustainable Housing: An Uneasy Relationship" by Jin Xue (Routledge, 2014)...

  18. THE INVESTMENTS, ECONOMIC GROWTH FACTORS OR CONSUMPTION OF DEVELOPMENT POTENTIAL?

    Directory of Open Access Journals (Sweden)

    Huru Dragos

    2008-05-01

    Full Text Available In Romania, in the last year the economic growth is a real phenomenon that is not our subject for demonstration or for analyze in this paper. Our concern is related with the way of manifestation for economic growth in the economic system. We study if not the economic growth on the contrary of development for current or further performance (regardless of economic aspect or level of analyze can unstuck in consumption of the availed resources for consolidate potential for development.

  19. Law and Technology Theory: Bringing in Some Economic Analysis

    Science.gov (United States)

    Trosow, Samuel

    2010-01-01

    The author argues economic analysis needs to be explicitly included in an overall theory of law and technology. Differing approaches to the economics of information are considered, and the copyright policy environment of the 1990s is taken as an example of how the lack of substantive economic analysis resulted in poor policy-making.

  20. Natural Hazards, Poverty Traps versus Economic Growth

    Science.gov (United States)

    Netti, Dr.

    2012-04-01

    Governments, even in developed countries, devote too scarce resources to coping (ex-ante) with natural hazards; as a consequence of this short-sightedness, (ex-post) direct and indirect effects of catastrophic events deeply compromise the economic growth. Protective measures against natural hazards mean complex choices involving the opinions of multidisciplinary groups of experts in the fields of ecology, civic and geotechnical engineering, geology, meteorology, law and economics. Moreover, tools and choices affect different stakeholders: politicians, producers, consumers, taxpayers and voters. Complementarity between informed rationality and democracy need to be recognized and guaranteed as too often the perceptions of the majority of the stakeholders involved about natural hazards are not consistent with any objective information about the catastrophic event. The interaction between strict budget constraints, extremely high degrees of uncertainty, risk-aversion and credit rationing, trade-off between democracy and rationality, are the main causes of potential 'poverty traps'. First of all we believe that the 'reconstruction output' to be included in GDP as an ex-post effect of a natural hazard is a forced investment much more effective in crowding-out other consumption and investment and less effective for growth than investments aiming at increasing, ex-ante, the resiliency of the economy. Keynes' 'Animal Spirits' are embedded in positive expectation for future gains especially if not concentrated in reconstruction procurement sectors but spread across different sectors of the economy. The increased demand for reconstruction goods and services may act in both directions depending on the phase of the business cycles in which the economy is. Risk premiums for risk-averter investors increase in consequence of a natural hazard event; this restrict budget constraints and strengthen credit rationing. A mere replacement effect of the destroyed capital by a more

  1. Government Expenditure, Efficiency and Economic Growth: A Panel ...

    African Journals Online (AJOL)

    using their spending to accelerate economic growth. Key words: Government expenditure, efficiency, economic growth, Sub Saharan Africa. 5. Corresponding Author, Department of Economics, Faculty of Business and Finance, UTAR, Malaysia. Email: kimseddy@yahoo.com. 6 Professor of Economics, Department of ...

  2. Financial Sector Structure and Economic Growth

    DEFF Research Database (Denmark)

    Rapp, Marc Steffen

    that over time equity financing (bank credit) becomes more (less) important for the corporate sector in developed economies. Third, it reports novel country-level evidence on the link between financial sector structure and economic growth in developed economies. The results suggest that the capital market......Economists consider a well-functioning financial sector to be of first order importance for a modern (capitalist) economy. However, in the aftermath of the financial crisis a debate about the future role of the financial sector emerged and many commentators have called into question whether...... the financial sector actually creates value for the wider society. This research, which is part of a broad research project “Nordic Finance and the Good Society”, aims to contribute to this debate by studying the role of the financial sector structure for economic development of an economy. Therefore...

  3. Political regime change, economic liberalization and growth accelerations

    NARCIS (Netherlands)

    Jong-A-Pin, Richard; De Haan, Jakob

    We examine whether the type of political regime, regime changes, and economic liberalization are related to economic growth accelerations. Our results show that growth accelerations are preceded by economic liberalizations. We also find that growth accelerations are less likely to happen the longer

  4. Entrepreneurship and the Economic Theory of the Firm

    DEFF Research Database (Denmark)

    Foss, Nicolai Juul; Klein, Peter G.

    2004-01-01

    Though they developed in isolation, the theory of entrepreneurship andthe economic theory of the firm can be usefully integrated. In particular, the conceptof entrepreneurship as judgment associated with Knight (1921) and some Austrianschool economists aligns naturally with the theory of the firm...

  5. Directed Technical Change and Economic Growth Effects of Environmental Policy

    DEFF Research Database (Denmark)

    Kruse-Andersen, Peter Kjær

    2016-01-01

    unambiguously directs research efforts toward pollution abatement technologies and away from production technologies. This directed technical change reduces economic growth and pollution emission growth. Simulation results indicate that even large environmental policy reforms have small economic growth effects....... However, these economic growth effects have relatively large welfare effects which suggest that static models and exogenous growth models leave out an important welfare effect of environmental policy.......A Schumpeterian growth model is developed to investigate how environmental policy affects economic growth when environmental policy also affects the direction of technical change. In contrast to previous models, production and pollution abatement technologies are embodied in separate intermediate...

  6. How Stock Markets Development Affect Endogenous Growth Theory

    Directory of Open Access Journals (Sweden)

    Najeb Masoud

    2013-10-01

    Full Text Available This paper can bedescribed as a significant exploratory study that will provide a significantcontribution to knowledge to consider crucial issues which need to be barriersto understanding or a temptation/ requirement to judge some practices as‘better’ than others for stock market development effective approach andimplement successful stock market performance and economic growth. Recentanalysis of the link between financial development and growth, gained frominsights acquired as a result of using the technique of endogenous growthmodels, has illustrated that growth without exogenous technical progress andthat growth rates could be related to technology, income distribution andinstitutional arrangements. This provides the theoretical background thatempirical studies have lacked; illustrating that financial intermediationaffects the level of economic growth. Resulting models have provided newimpetus to empirical research of the effects of financial development. Thebirth of the new endogenous growth theory has facilitated the development ofimproved growth models where the long-term rate could be affected by a numberof elements. These included technology, education and health policies in theprocess of economic development, capital accumulation, government policies andinstitutional activities in the role of financial development in economicgrowth.

  7. Development of Technology Transfer Economic Growth Metrics

    Science.gov (United States)

    Mastrangelo, Christina M.

    1998-01-01

    The primary objective of this project is to determine the feasibility of producing technology transfer metrics that answer the question: Do NASA/MSFC technical assistance activities impact economic growth? The data for this project resides in a 7800-record database maintained by Tec-Masters, Incorporated. The technology assistance data results from survey responses from companies and individuals who have interacted with NASA via a Technology Transfer Agreement, or TTA. The goal of this project was to determine if the existing data could provide indications of increased wealth. This work demonstrates that there is evidence that companies that used NASA technology transfer have a higher job growth rate than the rest of the economy. It also shows that the jobs being supported are jobs in higher wage SIC codes, and this indicates improvements in personal wealth. Finally, this work suggests that with correct data, the wealth issue may be addressed.

  8. To Save or to Consume: Linking Growth Theory with the Keynesian Model

    Science.gov (United States)

    Kwok, Yun-kwong

    2007-01-01

    In the neoclassical growth theory, higher saving rate gives rise to higher output per capita. However, in the Keynesian model, higher saving rate causes lower consumption, which may lead to a recession. Students may ask, "Should we save or should we consume?" In most of the macroeconomics textbooks, economic growth and Keynesian economics are in…

  9. THE ROLE OF MORTGAGE CREDIT IN ENSURING ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Z. L. Garipova

    2014-04-01

    Full Text Available The decision of the important social task - ensuring the availability of housing for the mass of the population of the country, on the one hand, allowed to launch investment, savings, financial and credit mechanisms for ensuring economic growth of the Russian economy on the other. Despite the high degree of sophistication in the scientific literature of the organization of mortgage lending system, a study of its impact on economic growth factors in the scientific literature clearly insufficient. The original article was the theory of economic growth, which allowed on the basis of research of interaction of demand for residential property, it deals with the housing mortgage credit to justify a conclusion about its importance not only for solution of social tasks, availability of housing, but also a significant impact on the demand and supply on the residential property market. Based on the analysis of statistical data for the period from 2006 to 2012, and their correlation analysis carried out research of factors of development of housing markets and mortgage lending, namely incomes, housing prices, interest rates on loans, «channel lending conditions, the terms of banking mortgage.Purchase on Elibrary.ru > Buy now

  10. Green economic growth premise for sustainable development

    Directory of Open Access Journals (Sweden)

    Carmen Lenuţa TRICĂ

    2013-01-01

    Full Text Available Accelerating the global issues such as natural resource depletion, damage to the natural environment, economic and financial crises and consumption growth led to the shift of the development paradigm from consumption to sustainable development and recognition of the new path, namely green economy.At the European level a number of international organizations discussed issues of transition to green economy (EC, UNEP, OECD. In 2008, UNEP launched “Green Economy Initiative to Get the Global Markets Back to Work”, aiming to mobilize and re-focuse the global economy towards.This is the twin challenge of moving towards a green economy: radically reducing the footprint of developed countries, while simultaneously raising levels of social and material well being in developing countries.Without public intervention, the related market failures (i.e. market prices that do not fully reflect the environmental degradation generated by economic activity may delay or even prevent the development of environmentally-friendly technologies.Furthermore, in sectors such as electricity, network effects arising from existing infrastructures create additional barriers to the adoption of alternative sources of power, further hampering incentives to invest in new technologies.Given that the transition to a green economy requires increasing of investment in economic sectors that contribute to enhancing of natural capital and reduce environmental risks, we intend to analyze the main measures taken by Romania to ensure transition to green economy.

  11. How robust is the relationship between economic freedom and economic growth?

    NARCIS (Netherlands)

    Sturm, JE; De Haan, J

    Using various indicators for economic freedom, it is shown that increases in economic freedom are robustly related to economic growth. This conclusion holds even if the impact of outlying observations is taken into account. The level of economic freedom is not related to growth.

  12. HOW TO SUSTAIN ECONOMIC PERFORMANCE? ECONOMIC GROWTH AND ITS IMPACT FACTORS

    Directory of Open Access Journals (Sweden)

    OANA SIMONA HUDEA (CARAMAN

    2012-05-01

    Full Text Available This paper intends to render several important factors of impact on economic growth and to describe the particular types of relationships of the latter with each one of its influencing elements. In order to correctly determine such issue, we have resorted to three carefully selected models that have been estimated and compared so as to identify the most adequate and representative regression. For this purpose we have performed an analysis based on cross-section annual data for 105 countries spread all over the world. After having tested and rejected certain exogenous variables initially considered, such as imports or exports, we have finally retained the external debt and foreign direct investments as explanatory items of the dependent variable. The results revealed that both of them positively affect the gross domestic product of the analysed countries, this one being inelastic in relation to the exogenous variables considered. Even if the relationship between the economic growth and the external debt of a country is usually negative, as the money exit out of the country due to the debt service causes non-achieved potential investments, yet, there is an inflexion point up to which the external debt has a positive influence on economic growth by the increase of the investments funds acquired as result of the external credit contracting, this being the case reflected by our study. As for the relationship existing between foreign direct investments and GDP, the economic theory confirms that FDI and economic growth are directly correlated, the former contributing to technical progress, production increase and, finally, to the improvement of the living standard.

  13. The unity of science and economics a new foundation of economic theory

    CERN Document Server

    Chen, Jing

    2016-01-01

    This book presents a new economic theory developed from physical and biological principles. It explains how technology, social systems and economic values are intimately related to resources. Many people have recognized that mainstream (neoclassical) economic theories are not consistent with physical laws and often not consistent with empirical patterns, but most feel that economic activities are too complex to be described by a simple and coherent mathematical theory. While social systems are indeed complex, all life systems, including social systems, satisfy two principles. First, all systems need to extract resources from the external environment to compensate for their consumption. Second, for a system to be viable, the amount of resource extraction has to be no less than the level of consumption. From these two principles, we derive a quantitative theory of major factors in economic activities, such as fixed cost, variable cost, discount rate, uncertainty and duration. The mathematical theory enables us ...

  14. The Impact of Monetary Policy on the Economic Growth of Nigeria

    African Journals Online (AJOL)

    DrNneka

    Theory of econometrics. Macmillan Press Ltd. Koshy, M. (2012). Monetary policy: Stabilizing Prices and Output. Finance and. Development, International Monetary Fund. Michael, B. & Ebibai, T. S. (2014). Monetary policy and economic growth in Nigeria. (1980-2011). Asia Economic and Financial Review, Vol.4(1).

  15. Impact of Qualitative Components on Economic Growth of Nations

    Directory of Open Access Journals (Sweden)

    Romuald I. Zalewski

    2011-06-01

    Full Text Available According to theory, innovative activity gives a chance to increase a competitiveness and economic growth of nation. The purpose of this paper is validation of that assumption using the latest data available for EU countries. Data set of indicators include: global innovation index, (GII, European Summary Innovative Index (SII, Ranking of Competitiveness of Nations (in a form of summary as well as subsidiary data and set of macro economy data (GDP, labor productivity, export, export of high-tech, R&D expenditure as [as % of GDP] etc as measures of economic growth. Various regression models: liner, curvilinear, planar or spatial with one or two dependent variables will be calculated and explained. In addition the appropriate 2 D and 3 D-graphs will be used and presented to strengthen verbal arguments and explanation. The main result of this paper is relationship between innovative activity, competitive ability and growth measured as GDP per capita. Such relationship is shown as fairy good linear span of countries. Only two of them: Luxemburg and Norway due to higher than average growth value are outliers. The valuable outcome of this paper is classification of nation into groups: highly innovative- highly competitive, highly competitive-non innovative, highly innovative- non competitive and non innovative – non competitive. The last group of nations fall into trap of low competitiveness.

  16. International Organizations, the "Education-Economic Growth" Black Box, and the Development of World Education Culture

    Science.gov (United States)

    Resnik, Julia

    2006-01-01

    This article has four sections. First, the author presents a theoretical discussion of the different explanations regarding the explosion of education after World War II. She explains how the actor-network theory--a theory of knowledge and of agency--enables people to understand the formation of the education-economic growth black box. The…

  17. Natural resources endowment and economic growth: The West African Experience

    OpenAIRE

    Mohamed Jalloh

    2013-01-01

    This study aims at investigating the nexus between natural resource endowment and economic growth using a sample of West African countries. The study adopted a Barrow-type growth model to analyse the impact of natural resource wealth on economic growth. A dynamic panel estimation technique was employed using relevant data from West African Countries. The results from the panel regressions indicate that natural resource endowments have very minimal impact in terms of promoting economic growth ...

  18. China’s Internal Migration, Public Policies, and Economic Growth

    Science.gov (United States)

    2012-12-01

    GDP Gross Domestic Product GLF Great Leap Forward GNP Gross National Product HDI Human Development Index HEI Higher-level Education...23 E. OVERVIEW OF GDP AND CASES OF LIVING STANDARDS ............26 F. ANALYSIS OF ECONOMIC GROWTH FROM DOMESTIC...push migration in hopes of economic growth. This economic growth will be explained in terms of GDP growth trends, along with attention to human rights

  19. THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND GOVERNMENT SPENDING: A CASE STUDY OF OIC COUNTRIES

    Directory of Open Access Journals (Sweden)

    Heri Sudarsono

    2015-06-01

    Full Text Available This paper presents the results for testing for causal relationship between economic growth and goverment spending for OIC countries covering the time series data 1970~2006. There are usually two propositions regarding the relation between economic growth and government spending: Wagner’s Law states that as GDP grows, the public sector tends to grow; and the Keynesian framework postulates that public expenditure causes GDP to grow. The primary strength and originality of this paper is that we used aggregate data as well as disaggregate data for Granger causality test. By testing for causality between economic growth and government spending, we find that government spending does cause economic growth in Iran, Nigeria and Tunisia, which are compatible with Keynesian’s theory. However, the economic growth does cause the increase in goverment spending in Algeria, Burkina Faso, Benin, Indonesia, Libya Malaysia, Marocco, and Saudi, which are well-suited with Wagner’s law.

  20. Financial Development and Economic Growth: A Panel Data Approach

    Directory of Open Access Journals (Sweden)

    Nuno Carlos LEITÃO

    2010-10-01

    Full Text Available The relationship between financial development and economic growth has been studied long time in economics (Adam Smith and Schumpeter. Structural reforms and the integration of financial markets have been attracting the interest of the academic community. This manuscript examines the link between financial development and economic growth. The European Union Countries (EU-27, and BRIC (Brazil, Russia, India and China were examined, between 1980 and 2006. Using a static and dynamic panel data approach, the results demonstrate that the financial development contribute to economic growth. Our study also consider productivity and trade, these proxies confirm the positive effect on economic growth.

  1. Management of business economic growth as function of resource rents

    Science.gov (United States)

    Prljić, Stefan; Nikitović, Zorana; Stojanović, Aleksandra Golubović; Cogoljević, Dušan; Pešić, Gordana; Alizamir, Meysam

    2018-02-01

    Economic profit could be influenced by economic rents. However natural resource rents provided different impact on the economic growth or economic profit. The main focus of the study was to evaluate the economic growth as function of natural resource rents. For such a purpose machine learning approach, artificial neural network, was used. The used natural resource rents were coal rents, forest rents, mineral rents, natural gas rents and oil rents. Based on the results it is concluded that the machine learning approach could be used as the tool for the economic growth evaluation as function of natural resource rents. Moreover the more advanced approaches should be incorporated to improve more the forecasting accuracy.

  2. Oil Prices, Exhaustible Resources, and Economic Growth

    Science.gov (United States)

    Hamilton, J. D.

    2012-12-01

    This talk explores details behind the phenomenal increase in global crude oil production over the last century and a half and the implications if that trend should be reversed. I document that a key feature of the growth in production has been exploitation of new geographic areas rather than application of better technology to existing sources, and suggest that the end of that era could come soon. The economic dislocations that historically followed temporary oil supply disruptions are reviewed, and the possible implications of that experience for what the transition era could look like are explored.nnual crude oil production (in thousands of barrels per year) from the states of Pennsylvania and New York combined, 1860-2010. ashed line: actual value for real GDP, 2007-2009. Red line: dynamic conditional forecast as of 2007:Q3 (1- to 5-quarters ahead) based on oil prices using equation (3.8) in Hamilton (2003)

  3. Correlations between Labor Employment and Economic Growth

    Directory of Open Access Journals (Sweden)

    Sfichi Elena Daniela

    2017-01-01

    Full Text Available The main objectives of macroeconomic policy for most governments are: a high level of labouremployment, price stability and high rate of economic growth. As far as I walk in life, I learnsomething new, everywhere I go, I find something that fascinates me. This is why this subject hasan influence over me, I wonder every day why people find a job to maintain with such difficulty andwhy they are so lazy when they hear about work. This type of behaviour leads to a huge increase ofunemployment, because people leave their courage under an invisible line and create a fakepersonality where they hide saying that they can’t do what society wants. In case that increasinginflation is obvious, unemployment is decreasing and people are trying to find something to do, towork, because inflation also leads to some actions which affect directly the unemployed ones.

  4. [Debt, regulations and economic growth in Mexico].

    Science.gov (United States)

    Vélez-Fernández Varela, F

    1989-01-01

    In the Mexican economy four policies forced the State to redefine its strategy of development. They were: 1) the considerable purchase by the government of firms that were not strategic or of national priority; 2) the preservation of a structure of high industrial protection; 3) an excessive reliance of the economy on oil, and 4) the perception of the increase in the price of oil as a permanent and not a temporary phenomenon. By the seventies the first two phenomena restricted the possibilities of economic growth which translated into inflation. In the eighties the high dependency on oil and the weakness of its monetary value deepened those trends. The external debt became the single most significant constraint of development. The government was forced to reduce drastically substantive public expenditure. Health was one of the areas more severely affected.

  5. Shocks in economic growth=shocking effects for food security?

    NARCIS (Netherlands)

    Kavallari, A.; Fellmann, T.; Hubertus Gay, H.

    2014-01-01

    The recent economic and financial turmoil raises the question on how global economic growth affects agricultural commodity markets and, hence, food security. To address this question, this paper assesses the potential impacts of faster economic growth in developed and emerging economies on the one

  6. Justifying the Ivory Tower: Higher Education and State Economic Growth

    Science.gov (United States)

    Baldwin, J. Norman; McCracken, William A., III

    2013-01-01

    As the U.S. continues to embrace a comprehensive plan for economic recovery, this article investigates the validity of the claim that investing in higher education will help restore state economic growth and prosperity. It presents the findings from a study that indicates that the most consistent predictors of state economic growth related to…

  7. Economic growth rate management by soft computing approach

    Science.gov (United States)

    Maksimović, Goran; Jović, Srđan; Jovanović, Radomir

    2017-01-01

    Economic growth rate management is very important process in order to improve the economic stability of any country. The main goal of the study was to manage the impact of agriculture, manufacturing, industry and services on the economic growth rate prediction. Soft computing methodology was used in order to select the inputs influence on the economic growth rate prediction. It is known that the economic growth may be developed on the basis of combination of different factors. Gross domestic product (GDP) was used as economic growth indicator. It was found services have the highest impact on the GDP growth rate. On the contrary, the manufacturing has the smallest impact on the GDP growth rate.

  8. Revisiting the relevance of economic theory to hotel revenue ...

    African Journals Online (AJOL)

    Revisiting the relevance of economic theory to hotel revenue management education and practice in the era of Big Data. ... Research in Hospitality Management ... This paper explores the role of economics in hospitality education and industry practice, with a particular focus on revenue management, and puts forward an ...

  9. Predicting economic growth with stock networks

    Science.gov (United States)

    Heiberger, Raphael H.

    2018-01-01

    Networks derived from stock prices are often used to model developments on financial markets and are tightly intertwined with crises. Yet, the influence of changing market topologies on the broader economy (i.e. GDP) is unclear. In this paper, we propose a Bayesian approach that utilizes individual-level network measures of companies as lagged probabilistic features to predict national economic growth. We use a comprehensive data set consisting of Standard and Poor's 500 corporations from January 1988 until October 2016. The final model forecasts correctly all major recession and prosperity phases of the U.S. economy up to one year ahead. By employing different network measures on the level of corporations, we can also identify which companies' stocks possess a key role in a changing economic environment and may be used as indication of critical (and prosperous) developments. More generally, the proposed approach allows to predict probabilities for different overall states of social entities by using local network positions and could be applied on various phenomena.

  10. Morphoelasticity: A theory of elastic growth

    KAUST Repository

    Goriely, Alain

    2011-10-11

    This chapter is concerned with the modelling of growth processes in the framework of continuum mechanics and nonlinear elasticity. It begins by considering growth and deformation in a one-dimensional setting, illustrating the key relationship between growth, the elastic response of the material, and the generation of residual stresses. The general three-dimensional theory of morphoelasticity is then developed from conservation of mass and momentum balance equations. In the formulation, the multiplicative decomposition of the deformation tensor, the standard approach in morphoelasticity, is derived in a new way. A discussion of continuous growth is also included. The chapter concludes by working through a sample problem of a growing cylindrical tube. A stability analysis is formulated, and the effect of growth on mucosal folding, a commonly seen instability in biological tubes, is demonstrated.

  11. View from Behavioral Economics Theory: Case of Latvian Rural Entrepreneurs

    Directory of Open Access Journals (Sweden)

    Igo Cals

    2013-11-01

    Full Text Available The theory of classical economics treats entrepreneurs as subjects who make rational economic decisions. Empirical surveys prove the fact that daily economic decisions made by a separate economic entity can be explained by concepts of behavioral economics rather than classical economics. The economic behavior of entrepreneurs happens to be based on bounded rationality instead of financial justification. The objective of an economic activity presented as economically efficient can turn out to be socially important to a specific entrepreneur and not to national economy as a whole. In the EU countries, agriculture is a subsidised industry of national economy. In this light, status consumption and purchase of positional goods should create a special interest among economists. The objective of this article is to present true reasons of economic decisions made by rural entrepreneurs and to analyse the value hierarchy of Latvian rural entrepreneurs through carrying out a field work and with the help of set of instruments developed by modern economics theory.

  12. Practical Theory: Teaching Political and Economic Citizenship

    Science.gov (United States)

    Martin, J. Wesley

    2010-01-01

    How can philosophical instruction inform practical analysis and decision making among college students in a way that demonstrably benefits them as individual members of our polity and economy? I pose this question because each year, I introduce classic political theory to first- and second-year college students who simultaneously confront a fiscal…

  13. Evolutionary economic theories of sustainable development

    NARCIS (Netherlands)

    Mulder, P.; van den Bergh, J.C.J.M.

    2001-01-01

    Sustainable development has become the dominant concept in the study of interactions between the economy and the biophysical environment, as well as a generally accepted goal of environmental policy. So far, economists have predominantly applied standard or neo-classical theory to environmental

  14. Analysis of domestic debt: implication for economic growth in Nigeria

    African Journals Online (AJOL)

    This paper principally analysed the importance of domestic debt on economic growth of Nigeria. The objective of the study is to investigate the relationship between government domestic debt and economic growth and policy that is likely to improve private sector investment and break growth resistance problem.

  15. Health and Economic Growth in South East, Nigeria

    African Journals Online (AJOL)

    info

    Health can be the source of economic growth, just as wealth can ... They engage in petty trading, subsistence farming and hawking of food ... growth. The number of healthy people in any economy determines the pace of the economic growth. Paradox of Health and Wealth. There is a common saying that “A healthy nation is ...

  16. INTEGRATION OF ETHICAL DISCOURSE IN ECONOMIC THEORY

    OpenAIRE

    Iulia David Sobolevschi; Monica Aureliana Petcu

    2008-01-01

    Moral doctrines and ethical patterns have a strong historical character, the society taking upon itself certain behaviour values and criteria, depending on the stage of development, on its productive features. The business pattern anchored exclusively in the competition for productivity, profit and market went along with arguments having nothing in common with the principles of ethics, such as „there are no moral responsibilities in business”. The alteration of the economic paradigms through ...

  17. Bifurcation theory for hexagonal agglomeration in economic geography

    CERN Document Server

    Ikeda, Kiyohiro

    2014-01-01

    This book contributes to an understanding of how bifurcation theory adapts to the analysis of economic geography. It is easily accessible not only to mathematicians and economists, but also to upper-level undergraduate and graduate students who are interested in nonlinear mathematics. The self-organization of hexagonal agglomeration patterns of industrial regions was first predicted by the central place theory in economic geography based on investigations of southern Germany. The emergence of hexagonal agglomeration in economic geography models was envisaged by Krugman. In this book, after a brief introduction of central place theory and new economic geography, the missing link between them is discovered by elucidating the mechanism of the evolution of bifurcating hexagonal patterns. Pattern formation by such bifurcation is a well-studied topic in nonlinear mathematics, and group-theoretic bifurcation analysis is a well-developed theoretical tool. A finite hexagonal lattice is used to express uniformly distri...

  18. Macroeconomic Determinants of Economic Growth: A Review of International Literature

    Directory of Open Access Journals (Sweden)

    Chirwa Themba G.

    2016-12-01

    Full Text Available The paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

  19. Financial development and economic growth. An empirical analysis for Ireland

    Directory of Open Access Journals (Sweden)

    Antonios Adamopoulos

    2010-07-01

    Full Text Available This study investigated the relationship between financial development and economicgrowth for Ireland for the period 1965-2007 using a vector error correction model (VECM.Questions were raised whether financial development causes economic growth or reverselytaking into account the positive effect of industrial production index. Financial marketdevelopment is estimated by the effect of credit market development and stock marketdevelopment on economic growth. The objective of this study was to examine the long-runrelationship between these variables applying the Johansen cointegration analysis takinginto account the maximum eigenvalues and trace statistics tests. Granger causality testsindicated that economic growth causes credit market development, while there is a bilateralcausal relationship between stock market development and economic growth. Therefore, itcan be inferred that economic growth has a positive effect on stock market development andcredit market development taking into account the positive effect of industrial productiongrowth on economic growth for Ireland.

  20. Gender Factors and Inclusive Economic Growth: The Silent Revolution

    Directory of Open Access Journals (Sweden)

    Laura Cabeza-García

    2018-01-01

    Full Text Available The gender factors that trigger economic growth in both high- and low-income countries were investigated in this study. To address these gender factors, four characteristic dimensions of gender inclusion were considered: education, access to the labor market, fertility, and democracy. The relationship between economic growth and gender factors was analyzed in a sample of 127 countries. Value and robustness were added to the results using dynamic models applied to panel data while accounting for endogeneity. We conclude that high fertility in women has negative effects on economic growth. However, when women have greater access to secondary education and the labor market in conditions of equality, the effects are positive. Similarly, the access of women to active political participation has significant effects on economic growth. Overall, this study helps identify which gender factors may promote inclusive economic growth, which is economic growth achieved when both men and women are incorporated in equal conditions.

  1. Business regulation and economic growth in the Western Balkan countries

    OpenAIRE

    Engjell PERE; Albana HASHORVA

    2013-01-01

    Actually economic policies in many countries aimed to stimulate their economic growth, particularly after negative impact of the global economic crisis. In this regards, fiscal regulation are an important aspect of those policies, that can promote or obstacle the economic growth in general. In this point of view this paper aims to analyze the system of administration rules in different Western Balkans Countries, (which includes Albania, Bosnia & Herzegovina, Croatia, Kosovo, Macedonia (FYROM)...

  2. Electricity Consumption-Economic Growth Nexus: The Ghanaian Case

    OpenAIRE

    Philip Kofi Adom

    2011-01-01

    Research into the electricity-economic growth nexus has important implications for energy conservation measures and environmental policy. However, results from the energy-economic growth nexus have been mixed in the literature on Ghana. This posses serious problems for the country’s energy policy. Much research is thus, required to establish the direction of causality between energy and economic growth. Nonetheless, less evidence is available for Ghana. It is against this background that this...

  3. Impact of Higher Education on Economic Growth of Pakistan

    OpenAIRE

    Aziz, Babar; Khan, Tasneem; Aziz, Shumaila

    2008-01-01

    This paper investigates the returns of higher education on economic growth of Pakistan from 1972 to 2008 through the application of Cobb-Douglas production function. The prime objective of the study is to identify and establish a link between the higher education and economic growth of Pakistan. For this purpose the impact of higher education enrollment on economic growth is analyzed. An attempt is made, in this study, to analyze the educational trends, the strategies and challenges for highe...

  4. Heteroepitaxy of semiconductors theory, growth, and characterization

    CERN Document Server

    Ayers, John E

    2007-01-01

    Heteroepitaxy has evolved rapidly in recent years. With each new wave of material/substrate combinations, our understanding of how to control crystal growth becomes more refined. Most books on the subject focus on a specific material or material family, narrowly explaining the processes and techniques appropriate for each. Surveying the principles common to all types of semiconductor materials, Heteroepitaxy of Semiconductors: Theory, Growth, and Characterization is the first comprehensive, fundamental introduction to the field. This book reflects our current understanding of nucleation, growth modes, relaxation of strained layers, and dislocation dynamics without emphasizing any particular material. Following an overview of the properties of semiconductors, the author introduces the important heteroepitaxial growth methods and provides a survey of semiconductor crystal surfaces, their structures, and nucleation. With this foundation, the book provides in-depth descriptions of mismatched heteroepitaxy and la...

  5. Mathematical Model Research on Contribution of Higher Education to Economic Growth

    Directory of Open Access Journals (Sweden)

    Zhou Dao

    2015-01-01

    Full Text Available This paper selects 31 provinces (autonomous regions and municipalities of China and divides them into three areas with four indicators—economic output, physical capital input, labor input and education years in 2004 to 2013 as data samples and adopts the theory of aggregate production function and least square method to establish a mathematical model of the relationship between education and economic growth, and concludes the following conclusion: The rate of China’s education contribution towards economic growth is 9.82%. The economic growth rate of human capital level for education per capita in the eastern area is 11.513%, which is higher than the national average level, while the economic growth rate of education in the central and western area is respectively 9.221% and 5.479%, which is lower than the national average level.

  6. Rethinking the Concept of Long-Run Economic Growth

    DEFF Research Database (Denmark)

    Groth, Christian; Koch, Karl-Josef; Steger, Thomas Michael

    This paper argues that growth theory needs a more general "regularity" concept than that of exponential growth. This offers the possibility of considering a richer set of parameter combinations than in standard growth models. Allowing zero population growth in the Jones (1995) model serves as our...... illustration of the usefulness of a general concept of "regular growth"...

  7. How energy conversion drives economic growth far from the equilibrium of neoclassical economics

    Science.gov (United States)

    Kümmel, Reiner; Lindenberger, Dietmar

    2014-12-01

    Energy conversion in the machines and information processors of the capital stock drives the growth of modern economies. This is exemplified for Germany, Japan, and the USA during the second half of the 20th century: econometric analyses reveal that the output elasticity, i.e. the economic weight, of energy is much larger than energy's share in total factor cost, while for labor just the opposite is true. This is at variance with mainstream economic theory according to which an economy should operate in the neoclassical equilibrium, where output elasticities equal factor cost shares. The standard derivation of the neoclassical equilibrium from the maximization of profit or of time-integrated utility disregards technological constraints. We show that the inclusion of these constraints in our nonlinear-optimization calculus results in equilibrium conditions, where generalized shadow prices destroy the equality of output elasticities and cost shares. Consequently, at the prices of capital, labor, and energy we have known so far, industrial economies have evolved far from the neoclassical equilibrium. This is illustrated by the example of the German industrial sector evolving on the mountain of factor costs before and during the first and the second oil price explosion. It indicates the influence of the ‘virtually binding’ technological constraints on entrepreneurial decisions, and the existence of ‘soft constraints’ as well. Implications for employment and future economic growth are discussed.

  8. Economic growth and carbon emission control

    Science.gov (United States)

    Zhang, Zhenyu

    The question about whether environmental improvement is compatible with continued economic growth remains unclear and requires further study in a specific context. This study intends to provide insight on the potential for carbon emissions control in the absence of international agreement, and connect the empirical analysis with theoretical framework. The Chinese electricity generation sector is used as a case study to demonstrate the problem. Both social planner and private problems are examined to derive the conditions that define the optimal level of production and pollution. The private problem will be demonstrated under the emission regulation using an emission tax, an input tax and an abatement subsidy respectively. The social optimal emission flow is imposed into the private problem. To provide tractable analytical results, a Cobb-Douglas type production function is used to describe the joint production process of the desired output and undesired output (i.e., electricity and emissions). A modified Hamiltonian approach is employed to solve the system and the steady state solutions are examined for policy implications. The theoretical analysis suggests that the ratio of emissions to desired output (refer to 'emission factor'), is a function of productive capital and other parameters. The finding of non-constant emission factor shows that reducing emissions without further cutting back the production of desired outputs is feasible under some circumstances. Rather than an ad hoc specification, the optimal conditions derived from our theoretical framework are used to examine the relationship between desired output and emission level. Data comes from the China Statistical Yearbook and China Electric Power Yearbook and provincial information of electricity generation for the year of 1993-2003 are used to estimate the Cobb-Douglas type joint production by the full information maximum likelihood (FIML) method. The empirical analysis shed light on the optimal

  9. The Analysis of Theoretical Approaches to Identification of Factors of Regional Economic Growth

    Directory of Open Access Journals (Sweden)

    Kosyrieva Olena V.

    2016-05-01

    Full Text Available The article is devoted to the investigation of current approaches to identification of factors of economic growth in the regions. The theory of new economic geography based on works and studies of P. Krugman has been considered. There highlighted the key issues of regional economic growth requiring an in-depth studying and consideration in the elaboration of strategies for sustainable development of the regions. The views of leading domestic and foreign scholars as well as the OECD experts, the World Bank, the National Statistics Service of the United Kingdom and others on the main drivers of economic growth have been analyzed. On the basis of the study the factors of regional economic growth most commonly encountered in theory and practice have been generalized. It is proved that scientists and analysts most often classify as the factors of regional economic growth the following ones: those characterizing human potential, scientific-technical and innovative activity, management and institutional capacity. The factors less frequently correlated by specialists and scientists with the regional economic growth include: those characterizing the environment, business and sociopolitical factors, which is associated with difficulty of their quantification, but in any case does not diminish their importance.

  10. Structural Change, Globalization and Economic Growth in China and India

    Directory of Open Access Journals (Sweden)

    Vittorio Valli

    2015-12-01

    Full Text Available In their period of rapid economic growth China and India have experienced profound structural transformations. The aim of the paper is to analyze the relation between structural change, the process of globalization and economic growth in the two great Asian countries, using a highly disaggregated dataset for the 1987-2009 period. While China had a longer and more intensive productivity growth than India, the latter had a somewhat more balanced growth. Both countries registered higher within-sectors gains in productivity than between-sectors ones. Our analysis also shows that there exist important feedbacks between structural change, globalization and economic growth over time. When the reallocation of labor is large, it may positively impact on the future rates of economic growth. At the same time, however, it seems that a too rapid economic growth may hinder a smooth reallocation of labor. In both countries, new policies should be designed to favor labor movement across sectors and areas, to reduce the wage-productivity differentials and to integrate the informal sector in formal markets in India, in order to foster structural changes and enhance economic growth. If a too unbalanced economic growth has somewhat limited the extent of structural change, globalization has on the contrary promoted it. High level of export, import and FDI not only has been related to higher rates of economic growth, but also to a deeper reallocation of resources across sectors, modifying the comparative advantage and reorganizing the production.

  11. Public Governance and Economic Growth in the Transitional Economies of the European Union

    Directory of Open Access Journals (Sweden)

    Yilmaz BAYAR

    2016-06-01

    Full Text Available According to new growth theories, public governance is an important determinant for sustained economic growth. This study examines the impact of six public governance indicators, including voice and accountability, political stability and the absence of violence/terrorism, government effectiveness, regulatory quality, rule of law and control of corruption, on the economic growth in the transitional economies of the European Union during the 2002-2013 period. The results show that all governance indicators except regulatory quality had a statistically significant positive impact on economic growth. Our findings also indicate that control of corruption and rule of law had the largest impact on economic growth, while political stability had the lowest impact.

  12. THE EFFECT OF INVESTMENT, WORKER AND GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN KUTAI KARTANEGARA REGENCY, INDONESIA

    Directory of Open Access Journals (Sweden)

    Iskandar

    2017-07-01

    Full Text Available Economic growth is still the main goal and an important indicator of the success of regional economic development. Kutai Kartanegara regency has fluctuation level of economic growth and the economic growth on average over the study period is moderately high (approaching double digits/average 9.43% over the study period compare with 4 districts/major cities in East Kalimantan as well as national economic growth. The purpose of this study is to determine how much the influence of investment, worker and government expenditure on economic growth of Kutai Kartanegara regency. This study uses theory of regional economic growth Solow-swan basing on Cobb Douglas production function with consideration of its ability to show the relationship balance between production result and combination of factor production used. The data use is Gross Regional Domestic Product (PDRB data according to constant prices and the amount of worker that is published by Central Bureau of Statistics (BPS of Kutai Kartanegara regency, government expenditure data based on Regional Budget (APBD of Kutai Kartanegara regency and private investment data from Regional Investment Agency (BPMD of Kutai Kartanegara regency began in 2007-2011 (time series. Regression analysis used is OLS with the assistance of EVIEWS 7 software. The study results show that private investment variable has negative effect but not significant to local economic growth and level of error is α 5%, but worker variable has significant positive effect and government expenditure variable has positive effect but not significant.

  13. Determinants of Economic Growth in Syria between 1980 and 2010

    Directory of Open Access Journals (Sweden)

    Adel Shakeeb MOHSEN

    2017-05-01

    Full Text Available This study attempts to investigate the determinants of economic growth in Syria from 1980 to 2010. Results from the Johansen cointegration test indicate that public sector investment, private sector investment, exports, oil price, and population growth have positive long-run relationships with economic growth. Public sector investment has the biggest effect on economic growth. The Granger causality test results indicate bidirectional causality relationships between public sector investment, private sector investment, oil price, population growth and GDP in the short and long run. There are also bidirectional causality relationships between exports and GDP in the short run, and unidirectional causality relationship running from exports to GDP in the long run.

  14. Renewable Resources, Capital Accumulation, and Economic Growth

    National Research Council Canada - National Science Library

    Zhang, Wei-Bin

    2011-01-01

    .... Different from most of the neoclassical growth models with renewable resources which are based on microeconomic foundation and neglect physical capital accumulation, this study proposes a growth...

  15. Introductory statistics for business and economics theory, exercises and solutions

    CERN Document Server

    Ubøe, Jan

    2017-01-01

    This textbook discusses central statistical concepts and their use in business and economics. To endure the hardship of abstract statistical thinking, business and economics students need to see interesting applications at an early stage. Accordingly, the book predominantly focuses on exercises, several of which draw on simple applications of non-linear theory. The main body presents central ideas in a simple, straightforward manner; the exposition is concise, without sacrificing rigor.  The book bridges the gap between theory and applications, with most exercises formulated in an economic context. Its simplicity of style makes the book suitable for students at any level, and every chapter starts out with simple problems. Several exercises, however, are more challenging, as they are devoted to the discussion of non-trivial economic problems where statistics plays a central part.

  16. Theory and Methodology of Appraisal of Enterprise Economic Potential

    Directory of Open Access Journals (Sweden)

    Nadvornaya Gyul’nara Gazanfarovna

    2017-01-01

    Full Text Available The functioning of an enterprise is based on building and use of its economic potential. The company’s performance depends on the quality of these processes. Modern conditions of highly dynamic operating environment put demands on the search and application of new approaches to the building and use of economic potential of enterprises which provide opportunities for identifying and using internal economic growth reserves. An important economic parameter of the enterprise operation is the appraisal of economic potential formation and use effectiveness. Lack of economic control mechanisms scientifically proved for market management conditions and appraisal of the enterprises’ state in terms of efficiency of economic resources formation and use diminish investment activity and the competitiveness of economic entities. This necessitates the search for new methods and models for appraising economic potential, which defines economic independence as a system of management impacts on the economic state and development of an enterprise. All these factors indicate the relevance of further studies of enterprise economic potential, the mechanism of its functioning, the development of a system of management decisions aimed at effective formation and use of the enterprise economic potential. The aim of the study is to evaluate theoretical and methodological approaches to the enterprise economic potential and form methodological principles for its appraisal and effective functioning. During the study, the authors carried out a retrospective evaluation and systematization of theoretical and methodological approaches to the appraisal of enterprise economic potential. It has been determined that properties of enterprise economic potential, namely, consistency, which implies the study of interaction and mutual influence of system elements, were understudied. The study presents a methodical approach to appraising enterprise economic potential and its effective

  17. Dynamics of Governance, Investment and economic Growth in Nigeria

    African Journals Online (AJOL)

    Abstract. There is a general argument that, in all countries, the process of economic growth, governance and investment/capital formation is closely intertwined. The importance of the soundness and effectiveness of governance in attaining increased investment and sustained economic growth cannot be overemphasized.

  18. Models of economic growth and development in the context of ...

    African Journals Online (AJOL)

    Countries like New Zealand, Iceland, and Denmark offer evidence of this. Models of African development such as the Lagos Plan of Action in terms of the whole continent are discussed within the context of existing impediments to such progress. Keywords: economic growth, economic development, human capital, growth ...

  19. Export Orientation among New Ventures and Economic Growth

    NARCIS (Netherlands)

    S.J.A. Hessels (Jolanda); A.J. van Stel (André)

    2007-01-01

    textabstractWhile it is generally acknowledged that entrepreneurship as well as export activity may both be important strategies for achieving national economic growth, it has remained unclear how export activity among new ventures is related to economic growth. This paper investigates whether the

  20. Education and Economic Growth in Iowa; Final Report.

    Science.gov (United States)

    Glendening, Richard N.

    To study the relationship of education to economic growth for the state of Iowa, the hypothesis that increasing the level of education for the labor force would lead to higher levels of income or economic growth was tested for the period from 1950-1967. The Cobb-Douglas production was used to evaluate the relationship. The function used labor…

  1. Consequences of unbridled poverty on economic growth in Nigeria ...

    African Journals Online (AJOL)

    It explains some of the factors that would reduce poverty to the bearest minimum in order to enhance sustainable economic growth. The paper also examine causes of poverty and identifying the effect of poverty on economic growth. African Journal of Cross-Cultural Psychology and Sport Facilitation Vol. 6 2004: 57-62 ...

  2. The Impact of Education Investment on Sri Lankan Economic Growth

    Science.gov (United States)

    Ganegodage, K. Renuka; Rambaldi, Alicia N.

    2011-01-01

    We evaluate the contribution of investment on education to Sri Lanka's economic growth during the period 1959-2008. Physical capital, economic policy changes and the ethnic war are also evaluated due to their substantial importance. This study uses a framework encompassing both the neoclassical and endogenous growth model. The impact of education…

  3. Impact of Currency Devaluation on Economic Growth of Nigeria ...

    African Journals Online (AJOL)

    The primary aim of the study is to estimate the long run relationship between economic growth (RGDP) and currency devaluation. This study investigated the impact of currency devaluation on economic growth of Nigeria. This was achieved through a review of literature and a test of hypothesis. In order to generate the ...

  4. Information and Communication Technology and Economic Growth in India

    NARCIS (Netherlands)

    Erumban, Abdul; Das, Deb Kusum

    2016-01-01

    This paper examines the sources of economic growth in Indian economy since the 1980s, with particular focus on the role of information and communication technology (ICT). The impact of ICT on economic growth is analyzed via two main channels. The direct contribution of ICT investment to aggregate

  5. Health and economic growth in South East, Nigeria | Umezinwa ...

    African Journals Online (AJOL)

    Health and economic growth are germane to each other. The extent to which one can affirm the influence of the one on the other is, however, dependent on the available situational evidence. Health can be the source of economic growth, just as wealth can enhance health condition. In the South eastern states of Nigeria, ...

  6. The Services Sector and Economic Growth in Mauritius. A Bounds ...

    African Journals Online (AJOL)

    This paper examines the long run and short run impact of the services sector on economic growth in Mauritius. Using an augmented aggregate production function growth model, we apply the bounds testing approach to cointegration to assess the impact of different activities in the services sector on economic performance ...

  7. Economic growth and the volatility of foreign aid

    NARCIS (Netherlands)

    Chervin, M.; van Wijnbergen, S.

    2010-01-01

    Foreign aid’s effectiveness in promoting economic growth remains mired in controversy.We examine the impact of the volatility of aid on economic growth, controlling for the level of aid. A four-year panel analysis is conducted encompassing 155 countries over the period 1966-2001. We find that once

  8. Using Wmatrix to Explore Discourse of Economic Growth

    Science.gov (United States)

    Hu, Chunyu

    2015-01-01

    Growth is a concept of particular interest for economic discourse. This paper sets out to explore a small corpus of economic growth, which consists of articles from "The Economist". The corpus software used in this study is a web-based tool Wmatrix, an automatic tagging software able to assign semantic field (domain) tags, and to permit…

  9. The Role of Stock Market Development on Economic Growth in ...

    African Journals Online (AJOL)

    This study investigated the role of stock market development on economic growth of Nigeria using a 15-year time series data from 1994 - 2008. The method of analysis used is Ordinary Least Square (OLS) techniques. The study measures the relationship between stock market development indices and economic growth.

  10. Economic Growth Assumptions in Climate and Energy Policy

    Directory of Open Access Journals (Sweden)

    Nir Y. Krakauer

    2014-03-01

    Full Text Available The assumption that the economic growth seen in recent decades will continue has dominated the discussion of future greenhouse gas emissions and the mitigation of and adaptation to climate change. Given that long-term economic growth is uncertain, the impacts of a wide range of growth trajectories should be considered. In particular, slower economic growth would imply that future generations will be relatively less able to invest in emissions controls or adapt to the detrimental impacts of climate change. Taking into consideration the possibility of economic slowdown therefore heightens the urgency of reducing greenhouse gas emissions now by moving to renewable energy sources, even if this incurs short-term economic cost. I quantify this counterintuitive impact of economic growth assumptions on present-day policy decisions in a simple global economy-climate model (Dynamic Integrated model of Climate and the Economy (DICE. In DICE, slow future growth increases the economically optimal present-day carbon tax rate and the utility of taxing carbon emissions, although the magnitude of the increase is sensitive to model parameters, including the rate of social time preference and the elasticity of the marginal utility of consumption. Future scenario development should specifically include low-growth scenarios, and the possibility of low-growth economic trajectories should be taken into account in climate policy analyses.

  11. Agricultural Trade and Economic Growth in East African Community ...

    African Journals Online (AJOL)

    However, whether there is any link between EAC's regional trade and the region's economic growth remain unknown. ... Impulse response analysis on trade and economic growth were performed using panel data from UNCOMTRADE, International Financial Statistics and World Development Indicators for the period 2000 ...

  12. Dynamic analysis of savings and economic growth in Nigeria ...

    African Journals Online (AJOL)

    Dynamic analysis of savings and economic growth in Nigeria. ... Journal of Agriculture and Social Research (JASR) ... Relevant literature having been reviewed, a trivariate dynamic Granger causality model with savings, economic growth and foreign capital inflows was adopted as against the weak bivariate Granger ...

  13. International Summer School on Mathematical Systems Theory and Economics

    CERN Document Server

    Szegö, G

    1969-01-01

    The International Summer School on Mathematical Systems Theory and Economics was held at the Villa Monastero in Varenna, Italy, from June 1 through June 12, 1967. The objective of this Summer School was to review the state of the art and the prospects for the application of the mathematical theory of systems to the study and the solution of economic problems. Particular emphasis was given to the use of the mathematical theory of control for the solution of problems in economics. It was felt that the publication of a volume collecting most of the lectures given at the school would show the current status of the application of these methods. The papers are organized into four sections arranged into two volumes: basic theories and optimal control of economic systems which appear in the first volume, and special mathematical problems and special applications which are contained in the second volume. Within each section the papers follow in alphabetical order by author. The seven papers on basic theories are a rat...

  14. INTERCONNECTIONS BETWEEN THE ECONOMIC STRUCTURE OF LOCAL SPENDING AND ECONOMIC GROWTH IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Bilan Irina

    2015-07-01

    Full Text Available The issue of the effects of government interventions, explicitly of the taxes and expenditures of local public authorities, has generated substantial debate over time, and still gives rise to numerous controversies in theory and practice. Following the Keynesian path of reasoning, it is, at least theoretically, admitted that it is possible to influence the socio-economic activities and support for economic growth by means of government spending, but different other factors act towards enhancing or, on the contrary, impeding the achievement of the desired effects. From this point of view, the delimitation of competences and public expenditure responsibilities between different levels of government raises the issue of some possible different effects of the central and local governments’ interventions. As the macroeconomic stabilization function is usually associated with central governments, and the contribution of local governments often is of lesser importance, less attention is paid to the effectiveness of local administrative actions. In such a context, the paper aims to empirically evaluate the effects of the economic structure of local public expenditures on the local (territorial economic growth in Romania, over the period 2007 to 2012. The analysis has been conducted at the level of the 42 Romanian counties and on annual data collected from both international and national sources (World Bank, INSSE, The Romanian Ministry of Regional Development and Public Administration.The general method of estimation is the fixed effects estimation technique for panel data models. Our empirical approach is of absolute novelty, especially for Romania, where previous empirical studies have been focusing on the assessment of the overall effects of general government spending. The main findings of our study are that local public expenditures have a negative impact on territorial economic growth, confirmed both for overall expenditures and for various

  15. Crisis in the habitat of the economic growth monster

    DEFF Research Database (Denmark)

    Urhammer, Emil

    2014-01-01

    This article is inspired by empirical philosophy and provides an analysis of economic growth as a monster that circulates within collectives. Using this approach, I illustrate how economic growth has participated in shaping institutions and language, thus having necessitated its own circulation...... to such an extent that it has become the most prioritised economic policy objective, whereas urgent issues regarding living conditions on Earth are either ignored or treated as secondary priorities. Further, I argue that noble attempts to contest economic growth contribute to the circulation of the monster...

  16. Economic Growth and Development in the Undergraduate Curriculum

    Science.gov (United States)

    Acemoglu, Daron

    2013-01-01

    A central theme of this article is that economics instructors should spend more time teaching about economic growth and development at the undergraduate level because the topic is of interest to students, is less abstract than other macroeconomic topics, and is the focus of exciting research in economics. Facts and data can be presented to…

  17. NIGERIA’S ECONOMIC GROWTH THROUGH TOURISM PROMOTION/SUSTAINABILITY

    Directory of Open Access Journals (Sweden)

    Victor N. ITUMO

    2017-08-01

    Full Text Available Nigeria is currently facing economic growth and development challenge. The economic challenge is occasioned by mono-cultural economic reliance on the single resource of crude oil export revenue as well as other internal and international effects that affect her economic drive for heightened growth and development. The Nigerian government had over the years searched for ways of diversifying its economy for greater growth and development especially given the various challenges in the economy, mainly the steep reduction in crude oil revenue arising from volatility of global oil price. This paper therefore uses the research methodology of case study to do a holistic assessment of the possibility of Nigeria diversifying into her tourism potentials for economic growth and development. This would be done equally by drawing relevant comparative analysis of other countries bringing economic benefits in Africa and across the globe.

  18. Macroeconomic Policy Reform and Economic Growth in Zambia

    Directory of Open Access Journals (Sweden)

    Themba Chirwa

    2016-11-01

    Full Text Available The paper discusses the role that government policies and macroeconomic reforms played in influencing economic growth in Zambia during the period 1964-2013. The study identifies two economic systems that guided the implementation of policies and reforms in Zambia. The first relates to a command-driven economy, where economic growth patterns were influenced by nationalist ideologies and administrative controls. The second relates to a market-driven economy where economic growth patterns were influenced by market-oriented fundamentals with some degree of administrative controls. The study concludes that economic policies and reforms were instrumental in influencing the performance of major macroeconomic drivers of economic growth in Zambia such as the accumulation of physical capital, human capital development, international trade, real exchange rate determination and inflation.

  19. Interface of Computation, Game Theory, and Economics (Dagstuhl Seminar 13161)

    OpenAIRE

    Hart, Sergiu; Tardos, Éva; von Stengel, Bernhard

    2013-01-01

    This report documents the program and the outcomes of Dagstuhl Seminar 13161 "Interface of Computation, Game Theory, and Economics". The workshop was strongly interdisciplinary, on the leading edge of current topics generally connected to algorithmic game theory: Mechanism design and auctions, interactions in networks, social models, and dynamics and equilibrium in games and markets. We summarize these topics, give the talk abstracts, and comment on experiences related to the organization ...

  20. Keynes on population and economic growth.

    Science.gov (United States)

    Toye, J

    1997-01-01

    This article discusses the evolution of Keynes's thinking on population based on an unpublished paper from 1914, "Is the Problem of Population a Pressing and Important One Now?" The paper is reported to have 39 pages, but in fact there are many missing page numbers. Keynes's "Essays in Biography" (1933) follows the basic structure and much of the verbal detail of the first 16 pages of "Population." Chapter 2 of the "Economic Consequences of the Peace" discusses the key ideas of "Population." The passages in "Population" and Chapter 2 were probably the sources of a fierce controversy in 1923-24 between Keynes and W.H. Beveridge over Keynes' neo-Malthusianism. "Population" was the basis for the three themes that were central to Keynes's writing on population. Keynes's framework shifted from a global perspective in "Population" to a progressively narrower focus in the 1930s on England and Wales. Keynes was stronger in his advocacy of birth control in "Population" compared to later writings. Keynes was concerned about the quality of population but disagreed on the methods of achieving this. Keynes argued that 75% of the world was not subject to Malthusian dynamics, and the other 25% had developed technology to relieve population pressure. "Population" sketches out the rudiments of the welfare implications of the great divide between North and South population growth rates. Keynes assumes that overpopulation in the South will be compensated for by the international market without consideration of income deficits. Keynes argues against pronatalism. The 1933 essay shows Keynes shift away from Malthus as population expert to Malthus as political economist. By 1937, Keynes had recanted and was very aware of the uncertainty of the economy. The author believes that it is unfortunate that this 1913-14 manuscript remains unknown and, if known, misunderstood.

  1. ANALYSIS OF FACTORS WHICH AFFECTING THE ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Suparna Wijaya

    2017-03-01

    Full Text Available High economic growth and sustainable process are main conditions for sustainability of economic country development. They are also become measures of the success of the country's economy. Factors which tested in this study are economic and non-economic factors which impacting economic development. This study has a goal to explain the factors that influence on macroeconomic Indonesia. It used linear regression modeling approach. The analysis result showed that Tax Amnesty, Exchange Rate, Inflation, and interest rate, they jointly can bring effect which amounted to 77.6% on economic growth whereas the remaining 22.4% is the influenced by other variables which not observed in this study. Keywords: tax amnesty, exchange rates, inflation, SBI and economic growth

  2. Road infrastructure, spatial spillover and county economic growth

    Science.gov (United States)

    Hu, Zhenhua; Luo, Shuang

    2017-09-01

    This paper analyzes the spatial spillover effect of road infrastructure on the economic growth of poverty-stricken counties, based on the spatial Durbin model, by using the panel data of 37 poor counties in Hunan province from 2006 to 2015. The results showed that there is a significant spatial dependence of economic growth in Poor Counties. Road infrastructure has a positive impact on economic growth, and the results will be overestimated without considering spatial factors. Considering the spatial factors, the road infrastructure will promote the economic growth of the surrounding areas through the spillover effect, but the spillover effect is restricted by the distance factor. Capital investment is the biggest factor of economic growth in poor counties, followed by urbanization, labor force and regional openness.

  3. Multinationals as stabilizers? Economic crisis and plant employment growth

    OpenAIRE

    Álvarez Espinoza, Roberto; Görg, Holger

    2007-01-01

    This paper examines the link between multinational enterprises and employment growth at the plant-level. We investigate in detail the comparative response of multinationals and domestic firms to an economic crisis, using the empirical setting of a well defined case of economic slowdown in Chile as a natural experiment. In our empirical analysis we find that employment growth in manufacturing plants has been drastically reduced during the economic crisis. More importantly, we do not find evide...

  4. Population Growth and Economic Development: New Empirical Evidence from Thailand

    OpenAIRE

    Fumitaka Furuoka

    2009-01-01

    Population growth has a substantial impact on economic development. There are two schools of thought regarding this issue. Some researchers maintain that population has a negative impact on economic development while others are convinced that the effect is positive. This paper aims to provide additional evidence by employing the bounds test (Pesaran et al., 2001) to analyse a long-run relationship between population growth and economic development in Thailand. The findings of this study indic...

  5. Population Growth and Economic Development: Empirical Evidence from the Philippines

    OpenAIRE

    FURUOKA, Fumitaka

    2012-01-01

    Various concerns have been expressed about the ability of the world economy to sustain the ever-expanding world population. This paper aims to provide additional empirical evidence to the ongoing debate about the impact of population growth on economic development with the Philippines as a case study. The findings of this study indicate the existence of a long-run equilibrium relationship between economic performance and population growth in the Philippines. That is, economic development in t...

  6. Human Capital, Population Growth and Economic Development: Beyond Correlations

    OpenAIRE

    Rosenzweig, Mark R.

    1987-01-01

    Empirical evidence on three assertions commonly-made by population policy advocates about the relationships among population growth, human capital formation and economic development is discussed and evaluated in the light of economic-biological models of household behavior and of its relevance to population policy. The three assertions are that (a) population growth and human capital investments jointly reflect and respond to changes in the economic environment, (b) larger families directly i...

  7. Understanding Economic Growth: Review Article of Why Economies Grow

    OpenAIRE

    Andrew Sharpe

    2004-01-01

    The question of why economies grow has been at the heart of economic inquiry since Adam Smith. The final article is a review of the recent book Why Economies Grow: The Forces That Shape Prosperity and How to Get Them Working Again by Jeff Madrick. He argues that the growth of markets through trade, colonization, and domestic expansion was the predominate factor in Western economic development. While technological innovation is necessary to growth, it is as much a consequence of economic oppor...

  8. The economic growth of oil countries; La croissance economique des pays petroliers

    Energy Technology Data Exchange (ETDEWEB)

    Arbod, G

    2007-02-15

    The literature tries to apprehend the weakness of the economic growth of oil culminates by the assumption of ousted growth factors. In the Dutch Disease models the non-oil exporting sector would be ousted whereas in the analyses in terms of economic policies it would be the efficient economic policies. We consider the phenomenon through the growth theories, the oil income being regarded as an additional exogenous income for the economy. In this manner the growth dynamic of oil countries, even the most unfavourable, can be modelled without utilizing any concept of economic inefficiency. The last part of our work is devoted to the Saudi economy. After having developed a macro-econometric model, and using scenarios of oil prices, we lead a forecasted analysis of this economy. (author)

  9. Interpreting the dynamic nexus between energy consumption and economic growth: Empirical evidence from Russia

    Energy Technology Data Exchange (ETDEWEB)

    Zhang Yuejun, E-mail: zyjmis@126.co [School of Management and Economics, Beijing Institute of Technology (BIT), 5 South Zhongguancun Street, Haidian District, Beijing 100081 (China) and Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081 (China)

    2011-05-15

    Research on the nexus between energy consumption and economic growth is a fundamental topic for energy policy making and low-carbon economic development. Russia proves the third largest energy consumption country in the world in recent years, while little research has shed light upon its energy consumption issue till now, especially its energy-growth nexus. Therefore, this paper empirically investigates the dynamic nexus of the two variables in Russia based on the state space model. The results indicate that, first of all, Russia's energy consumption is cointegrated with its economic growth in a time-varying way though they do not have static or average cointegration relationship. Hence it is unsuitable to merely portrait the nexus in an average manner. Second, ever since the year of 2000, Russia's energy efficiency has achieved much more promotion compared with that in previous decades, mainly due to the industrial structure adjustment and technology progress. Third, among BRIC countries, the consistency of Russia's energy consumption and economic growth appears the worst, which suggests the complexity of energy-growth nexus in Russia. Finally, there exists bi-directional causality between Russia's energy consumption and economic growth, though their quantitative proportional relation does not have solid foundation according to the cointegration theory. - Research highlights: {yields}This study investigates the dynamic nexus of energy consumption and economic growth in Russia. {yields} Russia's energy consumption is cointegrated with its economic growth in a time-varying way though they do not have static or average cointegration relationship. {yields} Ever since 2000, Russia's energy efficiency has achieved much more promotion compared with that in previous decades. {yields} Among BRIC countries, the consistency of Russia's energy consumption and economic growth appears the worst. {yields} There exists bi-directional causality

  10. Fiscal Deficit and Its Impact on Economic Growth: Evidence from Bangladesh

    Directory of Open Access Journals (Sweden)

    Mohammed Ershad Hussain

    2017-10-01

    Full Text Available The findings from the VECM for BBS data reveal that there is a positive and significant relationship between FD and GDPGR, supporting the Keynesian theory, while findings from the VECM for World Bank data indicate that the impact of Fiscal Deficit (FD on GDPGR is mild but negative and significant at the 5% level. This contradicts the Keynesian theory, but is in accord with Neo-classical theory which asserts that fiscal deficits lead to a drop in the GDP. Nevertheless, the government must strive to keep deficit under control, not to hamper growth, and expenditure ought to be set so as to avoid massive deficits leading to debt financing and the crowding-out effect of private investment. If deficits become unsustainable, it can lead to higher interest payments, and the government may well default. Although in the economic literature, there is no definitive conclusion as to whether fiscal deficit helps or hinders economic growth for any country, many argue that fiscal deficit leads to economic growth of a country, which cannot be achieved only through domestic savings, not enough for investment. It can be assumed safely that to some extent fiscal deficit is good for economic growth if the borrowed money is spent on beneficial projects, provided the return from such investments exceeds the funding cost. For future research work, it will be interesting to examine the relationships between government spending, economic growth and long-term interest rate for Bangladesh.

  11. What every conservation biologist should know about economic theory.

    Science.gov (United States)

    Gowdy, John; Hall, Charles; Klitgaard, Kent; Krall, Lisi

    2010-12-01

    The last century has seen the ascendance of a core economic model, which we will refer to as Walrasian economics. This model is driven by the psychological assumptions that humans act only in a self-referential and narrowly rational way and that production can be described as a self-contained circular flow between firms and households. These assumptions have critical implications for the way economics is used to inform conservation biology. Yet the Walrasian model is inconsistent with a large body of empirical evidence about actual human behavior, and it violates a number of basic physical laws. Research in behavioral science and neuroscience shows that humans are uniquely social animals and not self-centered rational economic beings. Economic production is subject to physical laws including the laws of thermodynamics and mass balance. In addition, some contemporary economic theory, spurred by exciting new research in human behavior and a wealth of data about the negative global impact of the human economy on natural systems, is moving toward a world view that places consumption and production squarely in its behavioral and biophysical context. We argue that abandoning the straightjacket of the Walrasian core is essential to further progress in understanding the complex, coupled interactions between the human economy and the natural world. We call for a new framework for economic theory and policy that is consistent with observed human behavior, recognizes the complex and frequently irreversible interaction between human and natural systems, and directly confronts the cumulative negative effects of the human economy on the Earth's life support systems. Biophysical economics and ecological economics are two emerging economic frameworks in this movement. © 2010 Society for Conservation Biology.

  12. T.I.Tech./K.E.S. Conference on Nonlinear and Convex Analysis in Economic Theory

    CERN Document Server

    Takahashi, Wataru

    1995-01-01

    The papers collected in this volume are contributions to T.I.Tech./K.E.S. Conference on Nonlinear and Convex Analysis in Economic Theory, which was held at Keio University, July 2-4, 1993. The conference was organized by Tokyo Institute of Technology (T. I. Tech.) and the Keio Economic Society (K. E. S.) , and supported by Nihon Keizai Shimbun Inc .. A lot of economic problems can be formulated as constrained optimiza­ tions and equilibrations of their solutions. Nonlinear-convex analysis has been supplying economists with indispensable mathematical machineries for these problems arising in economic theory. Conversely, mathematicians working in this discipline of analysis have been stimulated by various mathematical difficulties raised by economic the­ ories. Although our special emphasis was laid upon "nonlinearity" and "con­ vexity" in relation with economic theories, we also incorporated stochastic aspects of financial economics in our project taking account of the remark­ able rapid growth of this dis...

  13. Economic growth and change in southeast Alaska.

    Science.gov (United States)

    Rhonda Mazza

    2004-01-01

    This report focuses on economic trends since the 1970s in rural southeast Alaska. These trends are compared with those in the Nation and in nonmetropolitan areas of the country to determine the extent to which the economy in rural southeast Alaska is affected by regional activity and by larger market forces. Many of the economic changes occurring in rural southeast...

  14. The remarkable transformation of the UV curve in economic theory

    NARCIS (Netherlands)

    Rodenburg, P.

    2011-01-01

    The purpose of this paper is to provide an analysis of the impact the Unemployment-Vacancy (UV) curve (or Beveridge curve) had on economic theory and to provide an account of the subsequent radical changes in its place and role over the decades since its first appearance in 1958. The paper traces

  15. Formation of Points of Economic Growth as a Condition of Regional Cnanges

    Directory of Open Access Journals (Sweden)

    Vadim Viktorovich Vasilyev

    2015-12-01

    Full Text Available The existence of essential distinctions at levels of social and economic development of subjects of the Russian Federation actualizes a solution of the problem of coordinating the processes in regional economy, creating instruments of ensuring the advancing economic growth of depressive territories. In the article the concepts of regional economic growth are studied; classification of theories of regional growth by such directions as identification of the factors determining economic growth taking into account national and regional specifics and the analysis of conditions of their modulation is carried out. Prospects of the theory defining economic development on the basis of points of economic growth are proved. It is proved that in the conditions of application of the principles of the budgetary federalism in Russia, differentiations of profitable powers and account obligations between federal, regional and local authorities and, as a result, limitations of opportunities of use of administrative mechanisms of influence at all levels of management, need of forming the inter-budgetary policy moves to the forefront so that in the conditions of limitation of financial resources to develop major factors of production and to increase efficiency of the solution of the main objectives of regional policy.

  16. Further evidence on the relationship between economic freedom and economic growth

    NARCIS (Netherlands)

    De Haan, J; Siermann, CLJ

    Often it is maintained that economic freedom may further high levels of economic growth. Using various measures of economic freedom constructed by Scully and Slottje, the robustness of this relationship is examined. Both direct and indirect effects of lack of liberties are analysed. Our main

  17. Life Insurance Contribution, Insurance Development and Economic Growth in China

    Directory of Open Access Journals (Sweden)

    Wang Ying

    2017-07-01

    Full Text Available Under L-type economy, remodelling the growth power in the medium and long term is essential. The insurance industry during the 13th Five-year Plan period has been given a heavy expectation on promoting economic quality and upgrading economic efficiency, so it will try to accelerate its innovation and development process which serves national needs, market demand and people's requirements. Referring to the previous researches of Solow and Zhang and measuring Capital Stock and Total Factor Productivity independently, the paper analyses the inherent correlation between insurance (including life insurance and non-life insurance and economic growth, reveals the contribution law of the insurance development in economic growth in the short and long term from both economic scale and quality respectively. It also shows enlightenments on policy decision for insurance industry, thus helps economic stability under the downturn periods.

  18. Economic growth and poverty alleviation in Africa - linking hard and soft economics

    DEFF Research Database (Denmark)

    Kuada, John

    2014-01-01

    This paper provides a quick glance at the dominant issues that have characterized the development economics debate during the past five decades. It is based on a review of a selection of literature that highlights the dominant perspectives in development economics. It draws a distinction between ...... soft and hard economics, arguing that economic growth must be converted into social change that benefits poor for it to be described as development-oriented. It provides a direction for future research into issues of economic growth and poverty alleviation in Sub-Sahara Africa...

  19. Balance of Payments Constrained Economic Growth in Nigeria ...

    African Journals Online (AJOL)

    Abstract. This paper applies the adjusted balance of payment (BOP) constrained growth framework modified by Thirwall and Hussain (1982) on Nigeria's economic growth to estimate the determinants of the long run rate of growth in Nigeria. With Nigeria adopting the import substitution industrialization policy in 1960, we ...

  20. Botswana: An Example of Prudent Economic Policy and Growth

    OpenAIRE

    World Bank

    2000-01-01

    Botswana is one of a small group of countries in the contemporary era, virtually the only African country that has sustained rapid economic growth over an extended period. Over the past three decades, Botswana's real per capita income grew by more than 7 percent per annum, which is comparable to rates of growth achieved by countries like Korea and Thailand. Remarkably, this growth, facilit...

  1. Financial Development Following Economic Growth: The Chinese Case

    Directory of Open Access Journals (Sweden)

    Chan il Park

    2003-06-01

    Full Text Available The purpose of this paper is to investigate the relationship between financial development and economic growth based on Chinese experiences during the period of 1979~2000. This study places more emphasis on the causality running from economic growth to financThe purpose of this paper is to investigate the relationship between financial development and economic growth based on Chinese experiences during the period of 1979~2000. This study places more emphasis on the causality running from economic growth to financial development contrary to the mainstream view, which asserts that the well-functioning financial systems exert a large positive impact on economic growth via two channels- capital accumulation and technological innovations. The reverse causality is postulated by considering two factors in developments of the country's financial system. Firstly, this paper argues that the rapid accumulation of financial assets and the remarkable expansion of the financial system during the examined period are due primarily to income rises and changes in industrial structures rather than inefficient financial reforms. Secondly, it is recognized in this study that various financial reform measures undertaken by the state since 1994 are emerged endogenously in response to Chinese financial disorders and macroeconomic imbalances built up during the 1979~93 period. This line of thinking is not following the mainstream view in which financial reforms are regarded as policy variables (or exogenous variables in promoting economic growth. These two factors imply that the causality may run from economic growth to financial development at least in China.

  2. Financial repression and economic distortions to the stage of economic growth and agricultural development in Bangladesh

    OpenAIRE

    Sikder, Md.Anowarul Islam

    2008-01-01

    Financial repression in a developing country is not new to us. The government may take policy for financial repression due to easy collection of inflation tax to the stage of economic development. This study is concerned to find the positive relationship between financial development and economic growth and productivity in the economy of Bangladesh. The research concluded that the financial repression has a negative relationship to the economic growth and productivity but the financial develo...

  3. Mineral Resources, Economic Growth, and World Population

    Science.gov (United States)

    Brooks, David B.; Andrews, P. W.

    1974-01-01

    World mineral supply and demand is discussed. The economics of future mineral availability in terms of effects on pollution, land use, energy consumption, human settlements, and the international distribution of income are emphasized. (DT)

  4. Growth and Economic Opportunities for Women | IDRC ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Saharan Africa;; Promoting peer-learning and knowledge exchange between research ... Ghana and Côte d'Ivoire are neighbouring countries with similar resource endowments and socio-cultural environments but very different economic ...

  5. Too much of a good thing? Economic growth and human rights, 1960 to 2010.

    Science.gov (United States)

    Cole, Wade M

    2017-09-01

    Despite widespread belief in the benefits of economic growth, some scholars emphasize the potentially negative consequences of growth-and especially rapid growth-for social and political outcomes. Using data for 149 countries between 1960 and 2010, I analyze the effect of economic growth on fundamental human rights conditions. Dynamic random-effects and two-way fixed-effects estimators, both with and without instrumental variables, yield several conclusions. First, economic growth is causally prior to rights conditions. Second, economic growth has a modest positive effect on human rights, albeit with diminishing returns at high growth rates. Third, low-income countries account for much of this relationship: growth improves rights conditions for most low-income countries, but extremely rapid growth is inimical. Growth has little effect among middle-income countries, while for high-income countries the relationship is positive but not robust. I bring these findings to bear on long-standing debates between proponents and critics of modernization theory. Copyright © 2017 Elsevier Inc. All rights reserved.

  6. Education, Economic Growth and Measured Income Inequality

    OpenAIRE

    Rehme, Günther

    2006-01-01

    In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when measured by the Gini coefficient. There is no clear functional relationship between growth and measured income inequality. The model identifies regimes of this relationship which depend crucially on the ...

  7. MEASURING ECONOMIC GROWTH FROM OUTER SPACE

    Science.gov (United States)

    Henderson, J. Vernon; Storeygard, Adam; Weil, David N.

    2013-01-01

    GDP growth is often measured poorly for countries and rarely measured at all for cities or subnational regions. We propose a readily available proxy: satellite data on lights at night. We develop a statistical framework that uses lights growth to augment existing income growth measures, under the assumption that measurement error in using observed light as an indicator of income is uncorrelated with measurement error in national income accounts. For countries with good national income accounts data, information on growth of lights is of marginal value in estimating the true growth rate of income, while for countries with the worst national income accounts, the optimal estimate of true income growth is a composite with roughly equal weights. Among poor-data countries, our new estimate of average annual growth differs by as much as 3 percentage points from official data. Lights data also allow for measurement of income growth in sub- and supranational regions. As an application, we examine growth in Sub Saharan African regions over the last 17 years. We find that real incomes in non-coastal areas have grown faster by 1/3 of an annual percentage point than coastal areas; non-malarial areas have grown faster than malarial ones by 1/3 to 2/3 annual percent points; and primate city regions have grown no faster than hinterland areas. Such applications point toward a research program in which “empirical growth” need no longer be synonymous with “national income accounts.” PMID:25067841

  8. Honesty, trust and economic growth - A cross-cultural comparison of western industrialized countries

    NARCIS (Netherlands)

    Fetchenhauer, D; van der Vegt, G

    This article investigates cross-country differences in economic growth rates from a psychological perspective. Based on social capital theory it is argued that 1) financial honesty and trust are positively correlated with each other when they are aggregated on a country level and that 2) a high

  9. AN ANALYSIS OF THE COMPANIE'S ECONOMIC GROWTH CAPACITY

    Directory of Open Access Journals (Sweden)

    Camelia BURJA

    2009-06-01

    Full Text Available The sustainable economic growth of companies constitutes a strategic management objective as it is ofgeneral interest. The companies’ accrued net worth and their capacity to generate profit result in increasedcompetitiveness. This paper presents a general model to analyze the companies’ economic growth grounded on theinvested capital profitability that is illustrated in an adequate case study. The described model highlights the majorfactors influencing economic growth at a microeconomic level as well as the direction they act, providing thepossibility to better substantiate decisions that serve this purpose.

  10. Electricity Consumption and Economic Growth: Evidence from 17 Taiwanese Industries

    Directory of Open Access Journals (Sweden)

    Wen-Cheng Lu

    2016-12-01

    Full Text Available The current paper investigates the existence and nature of the Granger causality between electricity consumption and economic growth for 17 industries in Taiwan. Empirical results over the period 1998–2014 suggest that a panel cointegration test shows a long-run equilibrium relationship and a bi-directional Granger causality between electricity and economic growth has been found. The result indicates that a 1% increase in electricity consumption boosts the real GDP by 1.72%. The government can pursue energy conservation and carbon reduction policy in some industries without impeding the economic growth for adjusting the industrial structure.

  11. An Economic Growth Model with Optimal Growth Rate and Individual Years of Schooling

    Directory of Open Access Journals (Sweden)

    Huan Yang

    2015-01-01

    Full Text Available An economic growth model with individual years of schooling is present. It is proved that there exist optimal individual years of schooling for fixed wage growth rate. On the other hand, the economy has balance growth path for given individual years of schooling. Finally, we prove that there exist optimal individual years of schooling and economic growth rate such that the individual lifetime utility reaches maximum and the economy grows on a balance growth path.

  12. Are physicians profit or rent seekers? Some evidence from state economic growth rates.

    Science.gov (United States)

    Reilly, Mary; Santerre, Rexford E

    2013-01-01

    Previous research has debated whether physicians act as profit- or rent-seekers. We argue that these two models of physician behavior can be tested by observing empirically the relationship between physician density and economic growth rates. A direct (inverse) relationship provides evidence for the profit-seeking (rent-seeking) theory of physician behavior. We empirically examine the impact of physician density on the economic growth of all US states over the period from 1973 to 2009. The empirical analysis generally finds a statistically significant and direct relationship between physician density and the growth of gross state product. The results are robust with respect to state- and time-fixed effects, individual state time trends, and 2SLS (two-stage least squares) estimation. Thus, in support of the profit-seeking theory of physician behavior, the findings reveal that physicians generally have a positive impact on the growth of the US economy.

  13. Productivity Growth : Industries, Spillovers and Economic Performance

    NARCIS (Netherlands)

    Ten Raa, T.; Wolff, E.N.

    2012-01-01

    Productivity growth is the main vehicle to increase the standard of living. This book explains the relationships between technological change, efficiency, productivity growth and performance. The emphasis is on the interplay between industries in modern economies. The book provides a broad yet

  14. Linking net entry to regional economic growth

    NARCIS (Netherlands)

    M.A.F.G. Dejardin (Marcus)

    2011-01-01

    textabstractRegional growth differentials could be explained by how intensively and dynamically new firms of a particular region enter expanding industries. Although the direct contribution of new firms to value creation and growth may be regarded as tautological, the aggregate impacts are largely

  15. The Biology and Economics of Coral Growth

    NARCIS (Netherlands)

    Osinga, R.; Schutter, M.; Griffioen, B.; Wijffels, R.H.; Verreth, J.A.J.; Shafit, S.; Henard, S.; Taruffi, M.; Gili, C.; Lavorano, S.

    2011-01-01

    To protect natural coral reefs, it is of utmost importance to understand how the growth of the main reef-building organisms-the zooxanthellate scleractinian corals-is controlled. Understanding coral growth is also relevant for coral aquaculture, which is a rapidly developing business. This review

  16. The Potential of Economic Diplomacy for Kosovo’s Economic Growth

    Directory of Open Access Journals (Sweden)

    MA. Arben Salihu

    2015-06-01

    Full Text Available Historically, the wise use of country’s economic potential brought conducive political gains. In contemporary times, where the business competition has reached its peak, the creative diplomacy that caters economic concerns, generally called the economic diplomacy is gaining pace. The term of Economic Diplomacy is fairly new, but apparently the research and evaluation of this concept is rapidly increasing, primarily to assess its impact on economic growth. Despite gaining popularity and acknowledgment, many countries are not taking full advantage of economic diplomacy, the Republic of Kosovo is case in point. The aim of this work is to explore the importance of economic diplomacy for Kosovo, a developing country, but with vast potential for growth. The study begins with a brief analysis on Kosovo economic history and the first signs of economic diplomacy. In addition, it discusses the role, importance and the future of economic diplomacy for Kosovo, vis a vis challenges and opportunities. It analysis the level of the use of economic diplomacy in the region, as well as presents data concerning Kosovo trade with world during the period 2004-2014. Finally it offers a number of recommendations for economic development in relations to economic diplomacy and concludes that success of the economic diplomacy largely depends on active, creative and proactive leadership as well as shrewd decison making.

  17. Human Capital as a Challenge for Economics Theory

    Directory of Open Access Journals (Sweden)

    Barbara Wyrzykowska

    2014-12-01

    Full Text Available The issue of human capital is increasingly attracting the attention of both theorists and practitioners, because at present human resources play a decisive role in the creation of competitive economies and business entities. Human capital and knowledge are becoming key factors in the area of entity competitiveness. Consequently, human capital is currently being analysed in a multi-faceted way in the context of numerous economic theories. The aim of this study is to summarize, analyse, and synthesise the information published on the subject of the theory of human capital and to present new theories and scientific paradigms. The theories presented in this study show that employees constitute the basic capital of modern organizations. One of the contemporary paradigms of modern management is the concept of knowledge-based economy and the paradigm of information technology. This article is based on literature studies and theoretical reflections of the author.

  18. Electricity Consumption-Economic Growth Nexus: The Ghanaian Case

    Directory of Open Access Journals (Sweden)

    Philip Kofi Adom

    2011-01-01

    Full Text Available Research into the electricity-economic growth nexus has important implications for energy conservation measures and environmental policy. However, results from the energy-economic growth nexus have been mixed in the literature on Ghana. This posses serious problems for the country’s energy policy. Much research is thus, required to establish the direction of causality between energy and economic growth. Nonetheless, less evidence is available for Ghana. It is against this background that this study seeks to investigate the direction of causality between a type of energy, electricity, and economic growth to add to the existing argument in the literature. The Toda and Yomamoto Granger Causality Test was used to carry out the test of causality between electricity consumption and economic growth from 1971 to 2008. The results obtained herein revealed that there exists a unidirectional causality running from economic growth to electricity consumption. Thus, data on Ghana supports the Growth-led-Energy Hypothesis. The results imply that electricity conservation measures are a viable option for Ghana.

  19. ECONOMIC GROWTH AND REGIONAL INEQUALITY IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Marinela ISTRATE

    2016-10-01

    Full Text Available After the collapse of communism, Romania, just like other Central and East European countries, has experienced profound social and economic mutations, reflected in all activity sectors (from the transition to a market economy and democratic freedom-based society to the decreasing number of active and working population, increasing unemployment, workforce’s growing risk of poverty, rising vulnerability of certain socio-professional groups. Starting from these findings and using an appropriate methodology to identify regional convergences and disparities, the present paper is meant to perform a statistical and territorial analysis of the economic gaps recorded at the level of the Romanian counties (NUTS 3 level during the last two decades and a half. The conclusions converge towards the existence of an adjustment of the economic structures, both from the territorial and temporal perspective, while the issue of reducing regional gaps remains one of the main challenges of the future.

  20. The Services Sector and Economic Growth in Mauritius. A Bounds ...

    African Journals Online (AJOL)

    Nafiisah

    economy with rising oil prices. In 2008, GDP growth rate stands at 5.3% but growth is expected to fall to 2.5% in 2009 because of the world economic downturn. GDP growth and per capita GDP over the last three decades is shown in. Figure 1 below: Trend in GDP Growth and GDP Per Capita from 1970-2008. 0. 1000. 2000.

  1. Analysing the contribution of business services to European economic growth

    OpenAIRE

    Kox, Henk L.M.; Rubalcaba, Luis

    2007-01-01

    The sector business services contributes directly and indirectly to aggregate economic growth in Europe. The direct contribution comes from the sector’s own dynamism. Though the business-services industry appears to be characterised by strong cyclical volatility, there was also a strong structural growth. Business services actually generated more than half of total net employment growth in the European Union since the second half of the 1990s. Apart from this direct growth contribution, t...

  2. The impact of the British model on economic growth

    Directory of Open Access Journals (Sweden)

    Simon György Jr.

    2007-01-01

    Full Text Available The paper is searching for an answer to the question how the British model affected economic development in its mother country, the United Kingdom. The statistical analysis, models of mathematical economics and econometric investigation make it probable to conclude that there was a substantial difference in success between the Thatcherite and the Blairite economic policies; the latter proved more effective. It is particularly remarkable that the Blairite model, connecting privatization with a successful employment policy, reduced unemployment and social sensitivity, has not only speeded up economic growth but also improved economic equilibrium, curtailing, among others, the budget deficit.

  3. The Internet and economic growth in least developed countries: A case of managing expectations?

    OpenAIRE

    Kenny, Charles

    2002-01-01

    A discussion of the theory of technology and economic growth suggests potentially negative implications for the impact of the Internet on developing countries. Technology in general is undoubtedly central to the growth process, but economists define technology in very broad terms. The impact of any particular, invented, technology is likely to be small. This theoretical perspective is supported by the empirical evidence regarding the limited impact of past ‘information revolutions’ on least d...

  4. Business strategy and dominant economic theories under critics.

    Directory of Open Access Journals (Sweden)

    Omar Aktouf

    2013-11-01

    Full Text Available In this essay, the author analyses, or more precisely “deconstructs” the essence of thinking about “strategy” and the overall governance of “US type” organizations/dominant neoliberal economic thinking, predominating the current both academic management and applied economics scene. By drawing on a simultaneously historical, heuristic, epistemological, and methodological reading of the dominant work and system on this subject, which he refers to as “Porterism”, the author presents a resolutely critical review of the full range theories of managerial “strategy” as well as those of the most notable author in the field, namely, Michael Porter.

  5. Does government spending boost economic growth in Europe?

    Directory of Open Access Journals (Sweden)

    Florin Teodor BOLDEANU

    2016-07-01

    Full Text Available The article aims to analyse the evolution of budgetary expenditures and their relationship with economic growth, especially in the EU countries and three non-EU countries - Switzerland, Norway and Iceland during 1991 - 2012. To test the link between government spending and economic growth the research used the United Nation Classification of the Functions of Government and three econometrical regression methods – ordinary least square, least squares dummy variable and the generalized method of moments. Statistical results for the 10 categories of expenditure have shown that economic affairs, environmental protection, recreation, culture and religion and social protection have a significant impact on economic growth. Also the recent economic crisis and the EU accession influenced the variation of GDP/capita.

  6. The Non-Linear Effect of Corporate Taxes on Economic Growth

    Directory of Open Access Journals (Sweden)

    Huňady Ján

    2015-03-01

    Full Text Available The paper deals with the problem of taxation and its potential impact on economic growth and presents some new empirical insights into this topic. The main aim of the paper is to verify an assumed nonlinear impact of corporate tax rates on economic growth. Based on the theory of public finance and taxation, we hypothesize that at relatively low tax rates it is possible that the impact of taxation on economic growth become slightly positive. On the other hand when the tax rates are higher a negative impact of taxation on economic growth could be expected. Despite the fact that the most of the existing studies find a negative linear relationship between these variables, we can also find strong support for a non-linear relationship from several theoretical models as well as some empirical studies. Based on panel data fixed-effects econometric models, we, as well, find empirical evidence for a non-linear relationship between nominal and effective corporate tax rates and economic growth. Our data consists of annual observations for the period 1999 to 2011 for EU Member States. Based on the results, we also estimated the optimal level of the corporate tax rate in terms of maximizing economic growth in the average of the EU countries.

  7. Government Expenditure, Efficiency and Economic Growth: A Panel ...

    African Journals Online (AJOL)

    Angelopoulos et al. 2008). Based on this contention it is logical to conclude that government expenditure and government efficiency are complementary if countries aspire to achieve better economic growth by using government expenditure.

  8. Public procurement, governance and economic growth: some policy ...

    African Journals Online (AJOL)

    , governance and economic growth. It shows that sound public procurement practice and good governance are closely related and that they both have the common goal of development. Employing the Keynesian income-expenditure approach ...

  9. TRAINING OF HUMAN CAPITAL FOR ECONOMIC GROWTH IN SINALOA

    National Research Council Canada - National Science Library

    Roxana Loubet-Orozco; Adela Morales-Parra

    2015-01-01

    .... In that sense, the concept of human capital and its impact on economic growth, the possibilities of the state are analyzed to transform the development of human resources in high stock that promotes...

  10. Framework for Creating a Smart Growth Economic Development Strategy

    Science.gov (United States)

    This step-by-step guide can help small and mid-sized cities, particularly those that have limited population growth, areas of disinvestment, and/or a struggling economy, build a place-based economic development strategy.

  11. FDI, Economic Growth, Energy Consumption & Environmental Nexus in Bangladesh

    National Research Council Canada - National Science Library

    Sandip SARKER; Arifuzzaman KHAN; Rezwan MAHMOOD

    2016-01-01

    This paper attempts to investigate the relationship among economic growth, energy consumption, CO2 emission, FDI and natural gas usage in Bangladesh through co-integration and Vector Error Correction model (VECM...

  12. Export and Economic Growth in the West Balkan Countries

    Directory of Open Access Journals (Sweden)

    Florentina Xhelili Krasniqi

    2017-09-01

    Full Text Available The aim of this paper is to explore the effects of exports and other variables (foreign direct investment, remittances, capital formation, and labour force on economic growth in West Balkan countries (Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina and Serbia. This study utilizes a strongly balanced panel data over the 2005-2015 period for Western Balkan countries using the ordinary least squares method (OLS, ie Pooled regression model to evaluate the parameters. The relationship between export and economic growth has turned to be statistically significant and positively related for the countries under the study. Results also indicate the statistically significant positive relationship between economic growth and other variables included in the model such is remittances, capital formation, and labor. The relationship between economic growth and foreign direct investment has turned out to be statistically insignificant and negatively related.

  13. Financial Openness and Economic Growth in Nigeria: A Vector Error ...

    African Journals Online (AJOL)

    Toshiba

    resulting from lending rate will increase/decrease the real sector with ... competitive and efficient markets tell us that financial openness should foster economic .... (GOVT/GDP) and investment to GDP ratio, and the population growth rate.

  14. Economic openness and economic growth: A cointegration analysis for ASEAN-5 countries

    Directory of Open Access Journals (Sweden)

    Klimis Vogiatzoglou

    2016-11-01

    Full Text Available The paper considers three channels of economic openness, namely FDI, imports, and exports, and examines their short-run and long-run effects on the economic growth in the five founding member countries of the Association of Southeast Asian Nations (ASEAN over the period from 1980 to 2014. Besides the impact on the economic growth, the authors analyze all possible causal interrelationships to discern patterns and directions of causality among FDI, imports, exports, and GDP. The quantitative analysis, which is based on the vector error correction co-integration framework, is conducted separately for each country in order to assess their individual experiences and allow for a comparative view. Although the precise details differ across countries, the findings indicate that there is a long-run equilibrium relationship between economic openness and GDP in all ASEAN-5 economies. FDI, imports and exports have a significantly positive short-run and long-run impact on the economic growth. Our results also show that export-led growth is the most important economic growth factor in most countries, followed by FDI-led growth. Another crucial finding is the bi-directional causality between exports and FDI across the ASEAN-5 countries. This indicates the presence of direct and indirect effects on GDP and a self-reinforcing process of causality between those two variables, which strengthens their impact on the economic growth.

  15. Economic Limits to Corporate Growth in America

    National Research Council Canada - National Science Library

    Dam, Robert A

    2006-01-01

    .... However, the domestic corporate share of GDP can never exceed 100 percent. Subject to numerous assumptions, the models presented here estimate that this source of corporate growth could be exhausted as early as the year 2032...

  16. Entrepreneurship and the Economic Theory of the Firm

    DEFF Research Database (Denmark)

    Foss, Nicolai Juul; Klein, Peter G.

    Although they have developed very much in isolation from each other, we argue the theory ofentrepreneurship and the economic theory of the firm are closely related, and each has much tolearn from the other. In particular, the notion of entrepreneurship as judgment associated withFrank Knight......; and theboundaries of the firm, as well as aspects of internal organization, may be understood as beingresponsive to entrepreneurial processes of experimentation.Key words: Entrepreneurship, heterogeneous assets, judgment, ownership, firm boundaries,internal organization.JEL Codes: B53, D23, L2...

  17. Internationalisation and Economic Growth: The Portuguese Case

    Science.gov (United States)

    da Costa, Renato J. Lopes; António, Nélson J. Santos; Miguel, Maria Isabel

    2017-01-01

    Historically, a policy of enforcement in internationalisation processes is still seen by many as an approach to solve certain economic crises. However, Portugal's solution for this problem is part of a greater problem, namely trying to solve a European problem that has recently worsened and is largely uncontrolled. This paper aims to contribute,…

  18. Curricular Content, Educational Expansion, and Economic Growth.

    Science.gov (United States)

    Benavot, Aaron

    1992-01-01

    Among 63 countries studied, increases in standard of living during 1960-85 were positively related to hours of science education required in elementary school and negatively related to prevocational instructional time. In developed nations, positive national economic effects were also found for instructional time overall and language instruction…

  19. Building Regional Economic Growth and Innovation Capacity

    Science.gov (United States)

    Rafn, H. Jeffrey

    2012-01-01

    Like many states at the turn of the century, Wisconsin was faced with a multibillion-dollar deficit due to a sagging economy brought on by the dotcom bubble burst and the economic impact of the 9/11 terrorist attack on the World Trade Center. As the state legislature grappled with the budget crisis, blame was freely assigned. The state was at…

  20. The postwar growth slowdown and the path of economic development

    OpenAIRE

    Huang, Kaixing

    2016-01-01

    Although the persistent slowdown in the growth of per capita output has been observed in virtually all industrialized countries since the early 1970s, no persuasive theoretical explanation for this phenomenon has been given. This paper constructs a modified endogenous growth model that indicates the slowdown is part of the natural process of economic development. Specifically, the model predicts that each economy develops along a path characterized by Malthusian stagnation, economic take-off,...

  1. Financial development and economic growth : views and agenda

    OpenAIRE

    Levine, Ross

    1996-01-01

    The author argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive first order relationship between financial development and economic growth. There is evidence that the financial development level is a good predictor of future rates of economic growth, capital accumulation, and technological change. Moreover, cross-country, case-style, industry level and firm-level analysis document extensive periods when financial development crucially affects the s...

  2. Economic growth and its determinants in countries in transitio

    OpenAIRE

    Kestrim Avdimetaj; Mensur Morina

    2015-01-01

    Main purpose of this scientific research is to analyze the countries in transition; in particular, through this research we will explain the economic growth and its determinants in the countries in transition. Referring to the fact that many ex-communist countries were faced with a transition from a socialist economic system into the economic system of free market, and this phase of transformation is also known as transition, we will analyze this phase in details. The materials contained in t...

  3. When growth is empty: towards an inclusive economics

    NARCIS (Netherlands)

    Pouw, N.R.M.

    2011-01-01

    The pursuit of endless growth and the ensuing global financial crisis have eroded public trust in economic policy. As a result, an increasing number of economists are advocating a more inclusive global economy. The global financial crisis has exposed the weaknesses of the liberalized economic system

  4. Energy Consuption and Economic Growth in Nigeria | Orhewere ...

    African Journals Online (AJOL)

    The relationship between energy consumption and economic growth has attracted much interest in economic literature. The views on the direction of this relationship are divergent. Empirical evidence varies, depending on the sources and pattern of energy consumption of the economy examined. This paper investigated the ...

  5. 109 Dynamics of Governance, Investment and economic Growth in ...

    African Journals Online (AJOL)

    SIPHAMBE, H.K. (PROF.)

    govern against corrupt practices, and the stability of the political environment. Empirical evidence shows ... rent seeking, corruption, and also generate high transaction costs which create economic inefficiencies ..... sector development and growth: Evidence from Malaysia‖, Journal of Development Economics, 84, 215-233.

  6. State Investment in Universities: Rethinking the Impact on Economic Growth

    Science.gov (United States)

    Schalin, Jay

    2010-01-01

    Does investing taxpayer money in higher education lead to major payoffs in economic growth? State legislators and policy makers say yes. They routinely advocate massive appropriations for university education and research, even in poor economic times, on the grounds that taxpayers will be rewarded many times over. The investment of federal funds…

  7. Health Expenditure and Economic Growth Nexus: An ARDL ...

    African Journals Online (AJOL)

    In this paper, the dynamic relationship between health expenditure and economic growth from 1980-2010 in Nigeria is examined – using the newly developed ARDL Bounds testing procedure and Granger causality test. The results suggest that there is a long-run relationship between health expenditure and economic ...

  8. ECONOMIC GROWTH - AN ILLUSION? STUDY CASE:ROMANIA

    Directory of Open Access Journals (Sweden)

    Camelia MORARU

    2013-12-01

    Full Text Available Literature has devoted considerable attention to economic growth because it creates the premises for achieving major goals such as route out of poverty of underdeveloped countries or contribute to raising the standard of living in developed countries. Economic growth has become an “order of the day” term, propagated by various "players" of economic and social life, in this way gaining various interpretations and meanings. This paper presents the results of the measures adopatate in order to recover Romanian economic situation. The austerity measures adopted until recently not allowed, however, to create a favorable environment for growth, taking into consideration that it is almost impossible for an economy to grow when conditions are limiting. Fiscal policies have focused on reducing the budget deficit, which led on slaughtering economic growth. Given the uncertain economic context, FDI was hardly drew into our country, their value last year has been insignificant. We can even say that the previous ended year was one economically, because our country did not recognize the road to the economic recovery.

  9. Competition in electricity spot markets. Economic theory and international experience

    Energy Technology Data Exchange (ETDEWEB)

    Fehr, Nils-Henrik von der; Harbord, David

    1998-09-01

    This publication gives a survey of economic theory and international experience connected to electricity spot markets. The main purpose is to consider the attempts that have been made to apply economic theory and empirical methods to the analysis of electricity markets, and to evaluate them in light of theoretical considerations and empirical evidence. The publication describes in simple terms the basic pool pricing mechanism, and experience with pools in a number of countries. It is worth emphasizing that it is not the purpose to treat in extensive detail the structure of electricity pools around the world. Key factors of the markets in England and Wales, Norway and Australia are described in order to allow for a comparison of design issues and evaluation of competitive performance. 80 refs., 14 figs., 15 tabs.

  10. Information and communication technology use and economic growth.

    Science.gov (United States)

    Farhadi, Maryam; Ismail, Rahmah; Fooladi, Masood

    2012-01-01

    In recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using the Generalized Method of Moments (GMM) estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants). We also find that the effect of ICT use on economic growth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

  11. The Impact of Agricultural Exports on Economic Growth in Nigeria

    Directory of Open Access Journals (Sweden)

    Nahanga Verter

    2016-01-01

    Full Text Available Agriculture is the backbone of Nigeria’s socioeconomic development. This paper investigates the impact of agricultural exports on economic growth in Nigeria using OLS regression, Granger causality, Impulse Response Function and Variance Decomposition approaches. Both the OLS regression and Granger causality results support the hypothesis that agricultural exports- led economic growth in Nigeria. The results, however, show an inverse relationship between the agricultural degree of openness and economic growth in the country. Impulse Response Function results fluctuate and reveal an upward and downward shocks from agricultural export to economic growth in the country. The Variance Decomposition results also show that a shock to agricultural exports can contribute to the fluctuation in the variance of economic growth in the long run. For Nigeria to experience a favourable trade balance in agricultural trade, domestic processing industries should be encouraged while imports of agricultural commodities that the country could process cheaply should be discouraged. Undoubtedly, this measure could drastically reduce the country’s overreliance on food imports and increase the rate of agricultural production for self-sufficiency, exports and its contribution to the economic growth in the country.

  12. Income taxes, public fiscal policy and economic growth

    Directory of Open Access Journals (Sweden)

    Tomasz Wołowiec

    2014-12-01

    Full Text Available The main goal of this article is to find the relationship between public fiscal policy and economic growth. The article consist of a few parts. The first is an introduction, which creates the background for the analysis in the following sections. It shows the main point of view on public fiscal policy especially in the case of personal income tax and creates a framework for the analysis of the relationship between taxation and economic growth. The second part focuses on the relations between central government decisions on taxation and its influence on savings, investments and economic growth. In this part we will find selected analyses of the impact of taxes on economic growth based on the examples of OECD countries. Finally, the last part of the work is a study on fiscal level and tax system structures and economic growth. In this part the authors checks two points of view on taxation. The first is that a low level tax burden is conducive to economic growth, and the second emphasizes negative consequences of decreasing budget tax revenues. The article shows both theoretical and empirical points of view on taxation and influence of government taxation decisions on the economy.

  13. Information and communication technology use and economic growth.

    Directory of Open Access Journals (Sweden)

    Maryam Farhadi

    Full Text Available In recent years, progress in information and communication technology (ICT has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. This paper examines the impact of Information and Communication Technology (ICT use on economic growth using the Generalized Method of Moments (GMM estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants. We also find that the effect of ICT use on economic growth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

  14. Determinants of Economic Growth in V4 Countries and Romania

    Directory of Open Access Journals (Sweden)

    Simionescu Mihaela

    2017-03-01

    Full Text Available The middle and long-term slowdown in growth dynamics could bring serious social and political problems for V4 countries (Czech Republic, Slovak Republic, Hungary, Poland and Romania. It would threaten reaching benefits from potential of convergence process with the developed countries of the European Union. As a result, the V4 economies and Romania should find solutions to achieving a sustainable growth that is associated with an improvement of their international competitiveness. This paper provides an empirical analysis of factors that might determine a stable economic growth in the five mentioned countries. The empirical analysis conducted for the period of 2003-2016 employed Bayesian generalized ridge regression. The main results indicated that the FDI promoted economic growth in all countries, except the Slovak Republic. Only in the Czech Republic, the expenditure on education generated economic growth, while the expenditure on R&D had positive effects in Romania, Hungary and the Czech Republic.

  15. How Does Social Trust Affect Economic Growth?

    DEFF Research Database (Denmark)

    Bjørnskov, Christian

    This paper connects two strands of the literature on social trust by estimating the effects of trust on growth through a set of potential transmission mechanisms directly. It does so by modelling the process using a three-stage least squares estimator on a sample of countries for which a full data...... set is available. The results indicate that trust affects schooling and the rule of law directly. These variables in turn affect the investment rate (schooling) and provide a direct effect (rule of law) on the growth rate. The paper closes with a short discussion of the relevance of the findings....

  16. An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

    Directory of Open Access Journals (Sweden)

    Próchniak Mariusz

    2014-10-01

    Full Text Available This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute, the governance indicator (World Bank, the democracy index (Freedom House, and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

  17. Outward foreign direct investments and home country's economic growth

    Science.gov (United States)

    Ciesielska, Dorota; Kołtuniak, Marcin

    2017-09-01

    The study examines the time stability of the causality direction and cross-correlations between the home country's economic growth and pace of growth of its outward foreign direct investment (OFDI) stocks within the complex system of the Polish national economy. The research has been performed in order to verify, using both the time and frequency domains time series analyses, if economic agents' long term decisions on outward foreign direct investments, leading to cross-border value chains and production fragmentation processes, are of adaptive or predictive character. Consequently, the aim was to check if the home country's economic growth leads the internationalization processes of domestic enterprises, which stays in line with Dunning's Investment Development Path (IDP) paradigm, or if these complex processes, thanks to entrepreneurs' ability to formulate relevant rational expectations, precede the home country's economic growth, which would be supported with the introduction of the policy on reinforcing the internationalization processes of domestic enterprises. The presence of the unidirectional economic growth-led internationalization, consistent with the IDP concept's base assumptions, has been ascertained by the results of the short term Granger causality tests. Nevertheless, the results of the wavelet analyses, supported with the results of the econometric block exogeneity long term causality Wald tests, have revealed that in the long term the OFDI stocks' growth permanently precedes the home country's economic growth, which stays in the unequivocal contrast with the IDP paradigm's premises, as well as with the indicated above short term Granger causality tests' outcomes and indicates that economic agents' choices are not strictly of adaptive but also of predictive character, which influences the current state of knowledge on economic complex systems' characteristics. Such a result is of a great importance in the light of the existence of the significant

  18. The Crisis of Economic Theory in the Middle of the Economic Crisis

    Directory of Open Access Journals (Sweden)

    Silvia MĂRGINEAN

    2011-05-01

    Full Text Available Keynesian economics has lost much of its effectiveness as a paradigm of world capitalism as a whole, or as a paradigm of individual developed capitalist economies. The decline of the United States as a hegemonic power capable of imposing its will over others has seen to the erosion of the relevance of the Keynesian doctrine on the global scale. The Philips curve and what Hicks calls the “social” pressure on wages have severely restricted the field of Keynesian policy at home – even through the ruling classes continue to use Keynesian theory as their paradigm. The most important lesson from Keynes work may be that the macroeconomist should start from the important problems of the day and should face the following questions: 1 How can we to understand what are is happening right now? 2 What can be done about it? What is the best policy to follow? 3 Do recent events force us to modify what is today widely accepted economic theory? If so, what is wrong and how might we go about arriving at a more satisfying theory? The most important economic problem of today is current financial crisis that started in the United States. What might we learn from Keynesian theory about it? The current situation is almost the opposite of the one that Keynes dealt with in the “General Theory”. Now day’s economics lacks an anchored understanding of the nature of the reality that economics is supposed to illuminate. Instability of leverage, connectivity, and potential instability of the price level have all been neglected in stable – with – fractions macro theory. Technical innovations will not bring real progress as long as “stability – with – fractions” remains the ruling paradigm. Meanwhile, governments are not prepared to face another crisis.

  19. The economic analysis of bureaucracy and government growth

    Directory of Open Access Journals (Sweden)

    Mihai UNGUREANU

    2012-11-01

    Full Text Available In this paper we analyze the problem of government size and growth and its relation with the size of public bureaucracies. The paper is organized as following: first, we present some factual data which confirm government size and growth for the western democratic world; second, we analyze the theories which identify the causes of this phenomenon. In this line we use Halcombe’s (2005 taxonomy and shortly discuss, at first, the rational choice and path dependency theories of government growth. Further, we focus on budget maximization theories. This class of theories explains government growth and size by state’s internal factors, bureaucracy (in the case of Niskanen’s models and bureaucracy and politicians (in the case of the Leviathan model. We conclude the paper by presenting the Armey curve and the hypothesis of state’s underdevelopment as applied to the problem of the Romanian public administration.

  20. CONSIDERATIONS ON THE ROLE OF FINANCIAL MARKETS IN ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Carmen ALBU

    2014-06-01

    Full Text Available Generally accepted in economic literature, the financial market has a positive impact on growth in a modern economy. Nevertheless, due to the global crises starting in 2008, a number of authors are questioning today about this assertion. Among them, there are authors which are attributing as initial impulse to the crisis an exaggerated expansion of financial market (and non-covered on the real side of economy. In this study, based on economic literature and empirical evidences, we are presentig few considerations regarding the development of financial market during last decades and its role on economic growth.

  1. The Contribution of the Neo-Schumpeterian Approach to the Development of the Economic Theory: Emphasis on the Meso-Economic Level

    Directory of Open Access Journals (Sweden)

    Radu HERMAN

    2011-07-01

    Full Text Available This article tries to show that there are alternative approaches to the economic theory, besides the well-known economic schools, Classicism, Neoclassicism and Keynesianism. The neoclassical principles allow a formalization – widely accepted by experts – that provide effective tools for measuring the effects of the economic activity. The economic science pays a special attention to the study of the economic agents’ behaviors, and to the economic results obtained by them through economic activity. Any human science uses principles and works with assumptions, and the neoclassical assumptions have generated efficient tools for quantifying the economic outcomes, and for accounting the economic growth. But these hypothesis, such as the assumption of economic agents’ rationality, allow a very limited understanding of the behaviors of economic agents within the markets. The recent invention of the Nuclear Magnetic Resonance device, allowed the emrgence of a new scientific paradigm, the development of neurosciences. Researchers can observe at a high level of graphic detail various types of activities that occur in the human brain, and some economists have introduced in the study of the economic theory, for example, the assumption that the consumer is driven by emotions when purchasing quantities of goods and services. So, economists may look for additional theories to explain the behavior of the economic agents. An increasingly importance is given to the theoretical contributions built on the work of the economist Joseph Alois Schumpeter, who has an original economic approach based on his own principles. It is proposed to focus the attention on a mesoeconomic vision about the industry, to understand how resources are being allocated and reallocated between companies, and to study the economic processes of evolution, which are influenced by the emergence and dissemination of the innovations. It is supposed that the price is allocating the

  2. Growth, Inclusiveness, and Women's Economic Empowerment in ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Brazil also has a higher proportion of women in the labour force- 59% compared to countries such as France (52%) or Britain (57%). But has Brazil's progressive social policy made growth more inclusive so that all women share in this remarkable transformation? Women's average monthly salary is only 65% of that of men.

  3. Economic analysis of crystal growth in space

    Science.gov (United States)

    Ulrich, D. R.; Chung, A. M.; Yan, C. S.; Mccreight, L. R.

    1972-01-01

    Many advanced electronic technologies and devices for the 1980's are based on sophisticated compound single crystals, i.e. ceramic oxides and compound semiconductors. Space processing of these electronic crystals with maximum perfection, purity, and size is suggested. No ecomonic or technical justification was found for the growth of silicon single crystals for solid state electronic devices in space.

  4. Antieigenvalue analysis for continuum mechanics, economics, and number theory

    Directory of Open Access Journals (Sweden)

    Gustafson Karl

    2016-01-01

    Full Text Available My recent book Antieigenvalue Analysis, World-Scientific, 2012, presented the theory of antieigenvalues from its inception in 1966 up to 2010, and its applications within those forty-five years to Numerical Analysis, Wavelets, Statistics, Quantum Mechanics, Finance, and Optimization. Here I am able to offer three further areas of application: Continuum Mechanics, Economics, and Number Theory. In particular, the critical angle of repose in a continuum model of granular materials is shown to be exactly my matrix maximum turning angle of the stress tensor of the material. The important Sharpe ratio of the Capital Asset Pricing Model is now seen in terms of my antieigenvalue theory. Euclid’s Formula for Pythagorean triples becomes a special case of my operator trigonometry.

  5. Public and Private Investment and Economic Growth in Namibia ...

    African Journals Online (AJOL)

    Using the framework of an endogenous growth model, this study analyzes the impact of public and private investment on economic growth in Namibia over the 1970–2005 periods. Cointegration and error correction modeling approaches were adopted. The results suggest that in addition to public and private investment ...

  6. Human Capital Investment and Economic Growth in Nigeria ...

    African Journals Online (AJOL)

    The role of human capital in the growth process of any nation is crucial. It is a major tool for poverty reduction. The main aim of this paper is to carry out an empirical investigation on the relationship between investment in education, health and economic growth in Nigeria, using time series data from 1982 to 2011. This paper ...

  7. Double digit economic growth vs. social wellbeing in Ethiopia: a ...

    African Journals Online (AJOL)

    Ethiopia has been reporting double digit economic growth rates over the last decade, while at the same time being ranked as one of the impoverished nations in the world. Despite the 11.0 percent average annual real GDP growth rate since 2004, the Oxford Poverty and Human Development Initiative consistently ranks ...

  8. Double Digit Economic Growth vs. Social Wellbeing in Ethiopia: A ...

    African Journals Online (AJOL)

    It has been more than a decade since Ethiopia started reporting double digit economic growth rates. Based on the World Bank data for the period 2004 to 2014, Ethiopia's real GDP grew by an annual average rate of 11.0 percent and its real GDP per capita registered an impressive annual average growth rate of 8.1 percent ...

  9. Money Supply, Interest Rate, and Economic Growth in Cameroon: A ...

    African Journals Online (AJOL)

    ... expansionary monetary policy in Cameroon. This work therefore recommends guided expansionary monetary policy as an instrument for growth and development in Cameroon in particular and the CEMAC zone in general. Key words: Dynamic, Money Supply, Interest Rates, Economic growth, Co-integration and Inflation.

  10. Money Supply, Interest Rate, and Economic Growth in Cameroon: A ...

    African Journals Online (AJOL)

    2008-12-11

    Dec 11, 2008 ... CEMAC zone in general. Key words: Dynamic, Money Supply, Interest Rates, Economic growth, Co-integration and Inflation. .... IR = Government Lending Rate and INFLA = Annual Inflation Growth Rate. means that either a right ... us what happens when any or all of the variables change. Equation (2.2) ...

  11. Child Labour, Education, Participation and Economic Growth in Sub ...

    African Journals Online (AJOL)

    per capita economic growth for Sub-Saharan Africa in a holistic framework using two-stage least squares (2SLS) regression model and dummy variables to capture the regional and income classifications. The results show that per capita GDP growth rate, public expenditure on education as percentage of GDP, net primary ...

  12. 150 Years of Italian CO2 Emissions and Economic Growth

    DEFF Research Database (Denmark)

    Annicchiarico, Barbara; Bennato, Anna Rita; Chini, Emilio Zanetti

    This paper examines the relationship between economic growth and carbon dioxide emissions in Italy considering the developments in a 150-year time span. Using several statistical techniques, we find that GDP growth and carbon dioxide emissions are strongly interrelated, with a dramatic change...

  13. Poverty alleviation with economic growth strategy: Prospects and ...

    African Journals Online (AJOL)

    Poverty alleviation with economic growth strategy: Prospects and challenges in contemporary Nigeria. ... Journal of Social Development in Africa ... approaches to poverty alleviation in these countries is that they are determined largely by making a choice between growth-promoting policies and poverty-focused strategies.

  14. THE IMPACT OF TECHNOLOGICAL GROWTH ON ECONOMIC PERFORMANCE IN INDONESIA

    Directory of Open Access Journals (Sweden)

    Hery Ferdinan

    2013-04-01

    Full Text Available AbstractTechnology in the globalization era is difficult to be avoided in daily life. This study aims to estimate the impact of technological growth on economic performance in Indonesia using a Total Factor Productivity (TFP method. The results indicate that technological growth in Indonesia during 1981-2012 is 0.87 percent, contributes up to 30.48 percent to economic growth. The results of econometric analysis suggest that technological growth will increase not only economic growth but also the unemployment rate, implying that technological growth in Indonesia creates jobs destruction than jobs creation.Keywords: Technological growth, TFP, economic growth, unemployment rateJEL classification number: O11, O47AbstrakTeknologi di era globalisasi sulit untuk dihindarkan dalam kehidupan sehari-hari. Penelitian ini bertujuan untuk mengestimasi dampak dari perkembangan teknologi pada kinerja ekonomi di Indonesia menggunakan metode Total Factor Productivity (TFP. Hasil penelitian menunjukkan bahwa perkembangan teknologi di Indonesia selama 1981-2012 adalah 0,87 persen, memberikan kontribusi hingga 30.48 persen terhadap pertumbuhan ekonomi. Hasil analisis ekonometrik menunjukkan bahwa perkembangan teknologi akan meningkatkan tidak hanya pertumbuhan ekonomi tetapi juga tingkat pengangguran, yang menyiratkan bahwa perkembangan teknologi di Indonesia menciptakan turunnya jumlah pekerjaan, bukannya menciptakan lapangan kerja.Keywords: Pertumbuhan teknologi, TFP, pertumbuhan ekonomi, tingkat pengangguranJEL classification number: O11, O47

  15. Balance of payments constrained economic growth in Nigeria ...

    African Journals Online (AJOL)

    With Nigeria adopting the import substitution industrialization policy in 1960, we apply cointegration test on time series data to estimate the long-run ... BOP constrained model as a suitable framework to explain Nigeria's long term growth and reinforces the opinion that external factors constrain Nigeria's economic growth.

  16. Population growth, economic security, and cultural change in wilderness counties

    Science.gov (United States)

    Paul A. Lorah

    2000-01-01

    A familiar version of the “jobs versus the environment” argument asserts that wilderness areas limit economic growth by locking up potentially productive natural resources. Analysis of the development paths of rural Western counties shows that this is unlikely: the presence of Wilderness is correlated with income, employment and population growth. Similarly, Wilderness...

  17. Growth and Economic Opportunities for Women: Literature Review ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    2013-07-08

    Jul 8, 2013 ... Women make shea butter by hand in Tamale, Ghana. Supporting Inclusive Growth. In partnership with the United Kingdom's Department for International Development and The William and Flora Hewlett Foundation, IDRC is launching a call for reserach proposals on Growth and Economic Opportunities for ...

  18. Economic growth and mortality: do social protection policies matter?

    Science.gov (United States)

    Bilal, Usama; Cooper, Richard; Abreu, Francis; Nau, Claudia; Franco, Manuel; Glass, Thomas A

    2017-08-01

    In the 20th century, periods of macroeconomic growth have been associated with increases in population mortality. Factors that cause or mitigate this association are not well understood. Evidence suggests that social policy may buffer the deleterious impact of economic growth. We sought to explore associations between changing unemployment (as a proxy for economic change) and trends in mortality over 30 years in the context of varying social protection expenditures. We model change in all-cause mortality in 21 OECD (Organization for Economic Cooperation and Development) countries from 1980 to 2010. Data from the Comparative Welfare States Data Set and the WHO Mortality Database were used. A decrease in the unemployment rate was used as a proxy for economic growth and age-adjusted mortality rates as the outcome. Social protection expenditure was measured as percentage of gross domestic product expended. A 1% decrease in unemployment (i.e. the proxy for economic growth) was associated with a 0.24% increase in the overall mortality rate (95% confidence interval: 0.07;0.42) in countries with no changes in social protection. Reductions in social protection expenditure strengthened this association between unemployment and mortality. The magnitude of the association was diminished over time. Our results are consistent with the hypothesis that social protection policies that accompany economic growth can mitigate its potential deleterious effects on health. Further research should identify specific policies that are most effective.

  19. Some Peculiarities of the Economic Growth in ECOWAS Countries

    Directory of Open Access Journals (Sweden)

    Babacar NDIAYE

    2017-12-01

    Full Text Available This article seeks to determine some of the peculiarities of the economic growth in the countries from the Economic Community of West African States (ECOWAS. Thus, the study is based on the country approach and uses econometric regression tests. In fact, in the context of the determination of the real GDP per capita growth rate of the countries in this region during the period 1987-2014, the results obtained show that it is still weak and unstable. Moreover, the weak convergence that has only been observed beginning with 2008 feeds the hope that ECOWAS can truly improve its level of development despite the heterogeneous nature of the countries. In order to overcome these difficulties, improving the socio-economic performance through the growth rate of real GDP per capita represents, among others, a necessity in relation to economic policy decisions.

  20. Towards a solidarity economy zakat Decrease poverty vs economic growth

    Directory of Open Access Journals (Sweden)

    Mébarek BOUBLAL

    2015-02-01

    Full Text Available Historically, inequalities in the distribution of goods between men existed. Different economic policies have been developed in order to solve not only the problem of inequality, but also that of unemployment. The statistics speak for themselves; despite efforts provided, no solution has been able to solve this twofold problem. Indeed, we must understand that today's economy is primarily responsible for capital growth; support social policy is the responsibility of the welfare state. Policies such as the single tax , or flat tax and the social economy, or non profit sector, have emerged but not able to reconcile the dilemma posed by the management of the social side with economic growth and to help grow the capital. Consideration of zakat as a social economic system, or zakat solidarity economy, provides an opening to a third way. This pathway is ale to support the reduction of inequalities in redistribution and unemployment, without jeopardizing economic growth.

  1. Impacts of Seaport Investment on the Economic Growth

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    Tahar Ammar Jouili

    2016-08-01

    Full Text Available The aim of this paper is to estimate the impact of seaports investment on the economic growth. Seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments have been allocating a great amount of money to develop seaport infrastructures. However, the Tunisian economy witnessed fluctuations in the economic growth rates and decrease in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample was composed of Tunisia's economic sectors (manufacturing, services and agriculture over the period 1983-2011. The results of the study show that the public investment in seaport infrastructures has apositive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaport investment infrastructure is the service sector.This paper aims to estimate the impact of seaports investment on the economic growth. The seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments were allocating a great amount of money to develop seaports' infrastructures. However, the Tunisian economy witnessed fluctuating in the economic growth rates and decreased in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample composed of Tunisia's economic sectors (manufacturing, services and agriculture over the period 1983-2011. The results of the study show that the public investment in seaports' infrastructures has a positive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaports investment infrastructure is the services sector.

  2. Economics of Future Growth in Photovoltaics Manufacturing

    Energy Technology Data Exchange (ETDEWEB)

    Basore, Paul A.; Chung, Donald; Buonassisi, Tonio

    2015-06-14

    The past decade's record of growth in the photovoltaics manufacturing industry indicates that global investment in manufacturing capacity for photovoltaic modules tends to increase in proportion to the size of the industry. The slope of this proportionality determines how fast the industry will grow in the future. Two key parameters determine this slope. One is the annual global investment in manufacturing capacity normalized to the manufacturing capacity for the previous year (capacity-normalized capital investment rate, CapIR, units $/W). The other is how much capital investment is required for each watt of annual manufacturing capacity, normalized to the service life of the assets (capacity-normalized capital demand rate, CapDR, units $/W). If these two parameters remain unchanged from the values they have held for the past few years, global manufacturing capacity will peak in the next few years and then decline. However, it only takes a small improvement in CapIR to ensure future growth in photovoltaics. Any accompanying improvement in CapDR will accelerate that growth.

  3. The impact of remittances on economic growth: An econometric model

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    Dietmar Meyer

    2017-05-01

    In other words, the econometric analysis will be based on those six remittance receiving countries. The paper is then to review the empirical literature devoted to the impact of remittances on economic growth, in order, to identify empirically if there are significant relationships between remittances and growth in these countries. The results suggest that remittances have a positive impact on growth and that this impact increases at higher levels of remittances relative to GDP.

  4. Mobile telecommunications infrastructure and economic growth: Evidence from China

    OpenAIRE

    Ward, Michael R.; Zheng, Shilin

    2014-01-01

    We contribute to the role of telecommunications infrastructure on economic growth in three ways. We separately examine fixed-line and mobile telephone subscription levels. We compare results across periods and regions that differ by the level of development. In addition, we develop a method designed to address endogeneity of telecommunications with respect to growth. We find that mobile services contribute much more to growth but that the effect diminishes as the provincial economy develops m...

  5. Outward FDI and home country economic growth: a Malaysian case

    OpenAIRE

    Koi Nyen Wong

    2010-01-01

    This paper attempts to explore the causality relationship between outward foreign direct investment (OFDI) and home country economic growth using Malaysia as a case. The main findings do not advocate the OFDI-led growth hypothesis. In order to promote OFDI-led growth, the home government should prepare the private sector for increasing competition in the era of globalization so that linkages can be forged with Malaysian multinationals, and to facilitate home sourcing for OFDI activities. Howe...

  6. Health, "illth," and economic growth: medicine, environment, and economics at the crossroads.

    Science.gov (United States)

    Egger, Garry

    2009-07-01

    Economic growth has been the single biggest contributor to population health since the Industrial Revolution. The growth paradigm, by definition, is dynamic, implying similar diminishing returns on investment at both the macro- and the micro-economic levels. Changes in patterns of health in developing countries, from predominantly microbial-related infectious diseases to lifestyle-related chronic diseases (e.g., obesity, type 2 diabetes) beyond a point of economic growth described as the epidemiologic transition, suggest the start of certain declining benefits from further investment in the growth model. These changes are reflected in slowing improvements in some health indices (e.g., mortality, infant mortality) and deterioration in others (e.g., disability-associated life years, obesity, chronic diseases). Adverse environmental consequences, such as climate change from economic development, are also related to disease outcomes through the development of inflammatory processes due to an immune reaction to new environmental and lifestyle-related inducers. Both increases in chronic disease and climate change can be seen as growth problems with a similar economic cause and potential economic and public health-rather than personal health-solutions. Some common approaches for dealing with both are discussed, with a plea for greater involvement by health scientists in the economic and environmental debates in order to deal effectively with issues like obesity and chronic disease.

  7. Back to oil: Indonesia economic growth after Asian financial crisis

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    Heru Iswahyudi

    2016-04-01

    Full Text Available This paper examines the growth experience of Indonesia in the years before and after the Asian financial crisis. Particular attention is paid to the relationship between economic growth and petroleum sector’s total factor productivity (TFP. It finds the possibility that post-crisis Indonesian economic growth has ‘recoupled’ with petroleum sector’s TFP – fluctuations in petroleum TFP is directly correlated with fluctuations in economic growth. Further, although keeping Indonesia’s petroleum sector open to fair competition should be the prime policy, the fact regarding resource nationalism might need to be taken into account in designing the policy to develop the productivity of Indonesia’s petroleum sector.

  8. Growth Versus Government Management Improvement During Economic Downturn

    Science.gov (United States)

    Podobnik, Boris; Baaquie, Belal E.; Bishop, Steven; Njavro, Djuro; Li, Baowen

    2013-04-01

    In estimating how economic growth depends on various inputs, economists commonly use long periods of data encompassing both main extremes to fluctuations in the economy: recession and expansion. Here we focus on recession years because during expansion even countries with bad economic policies may experience large growth. Specifically, we study how growth depends on the proportion of public-sector workforce, p and competitiveness, quantified by the Global Competitiveness Index, GCI. For the 2008-2011 economic downturn and for 57 countries, we find that the growth rate of GDP per capita, g, decreases with p, and increases with ΔGCI. Further, more competitive countries attract more foreign direct investments per capita, I, than less competitive countries, where I ~ GCIα. We propose a production function, divided into the private and public sectors, where GDP depends on market capitalization, the public (private)-sector workforce, and competitiveness level, used to quantify the public sector efficiency.

  9. Do Corruption and Social Trust affect Economic Growth? A Review

    DEFF Research Database (Denmark)

    Serritzlew, Søren; Sønderskov, Kim Mannemar; Svendsen, Gert Tinggaard

    2014-01-01

    Two separate literatures suggest that corruption and social trust, respectively, are related to economic growth, although the strengths of the relationships, and the direction of causality, are still debated. In this paper, we review these literatures and evaluate the evidence for causal effects...... of corruption and trust on economic growth, and discuss how corruption and trust are interrelated. The reviews show that absence of corruption and high levels of social trust foster economic growth. The literatures also indicate that corruption has a causal effect on social trust, while the opposite effect...... is more uncertain. In the conclusion, we offer the suggestion that fighting corruption may yield a “double dividend”, as reduced corruption is likely to have both direct and indirect effects on growth....

  10. Professional vocation: on the subject of non-economic factors in economic growth

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    Violetta Ruslanovna Shukhatovich

    2014-11-01

    Full Text Available The article substantiates the relevance of sociological analysis of a phenomenon such as professional vocation. Professional vocation is considered a characteristic feature of human potential. The author proposes to study the phenomenon of vocation as part of non-economic factors in economic growth

  11. Application of energy stability theory to problems in crystal growth

    Science.gov (United States)

    Neitzel, G. P.; Jankowski, D. F.

    1990-01-01

    The use of energy stability theory to study problems in crystal growth is outlined and justified in terms of convection mechanisms. An application to the float zone process of crystal growth is given as an illustration.

  12. Human Capital and Economic Growth - How Strong is the Nexus?

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    Marinko Škare

    2016-08-01

    Full Text Available The link between human capital and economic growth still remains unexplained because of the measurement issues connected to the human capital stock. This study investigates the link between human capital stock and economic growth using inclusive wealth index and ratio of engaged to actively disengaged employees as proxy for human capital stock. Data from the global workplace and inclusive wealth reports are used in order to provide an international comparison of the link between human capital and inclusive wealth. Cross country comparison show human capital largerly contribute to the inclusive wealth formation. Formal education is important but also motivating working environment is needed to achieve sustainable economic growth. The finding further indicates that standard human capital growth model should be revised taking into the account variables addressing sustainable growth (not just growth and environmental variables (work conditions affecting human capital stock. Countries encouraging investments in the development of individuals both through formal education and inspiring work environments achieve higher sustainable economic growth

  13. Remittances, financial development and economic growth: Empirical evidence from Lesotho

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    Athenia Bongani Sibindi

    2014-11-01

    Full Text Available Increasingly remittances now constitute a great source of foreign currency inflows for many developing countries. In some instances remittances have outpaced the growth of foreign direct investment (FDI. Amongst others, remittances can be used as a vehicle of savings mobilisation as well as fostering the supply of credit by providing liquidity to the market. In this article we investigate the causal relationship between the remittances, financial development and economic growth in Lesotho for the period 1975 to 2010. We make use of per capita remittances, real per capita broad money supply and real per capita growth domestic product as the proxies for remittances, financial development and economic growth respectively. We then test for cointegration amongst the variables by applying the Johansen procedure and then test for Granger causality based on the vector error correction model (VECM. Our results confirm the existence of at least one cointegrating relationship and also indicate that the direction of causality runs from remittances to the economy without feedback. The results also suggest that financial development Granger causes economic growth without feedback which is consistent with ‘supply-leading’ growth hypothesis. The results also confirm a causal relationship running from financial development to remittances without feedback. The results also lend credence to the “complementarity’ hypothesis in that, remittances complement rather than substitute financial development in bringing about economic growth.

  14. An Application of Convergence Theory to Japan's Post-WWII Economic "Miracle."

    Science.gov (United States)

    Valdes, Benigno

    2003-01-01

    Provides an explanation of the post-World War II economic phenomenon of Japan as a process of economic convergence within the framework of the neoclassical Solo-Swan model of economic growth. States that this interpretation helps students understand economic growth and development and Japan's modern economic history. (JEH)

  15. INNOVATION: A STRATEGIC OPTION FOR FUTURE ECONOMIC GROWTH

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    Popa Ion

    2014-07-01

    Full Text Available The purpose of the current article is that of highlighting the importance and actuality of innovation in spurring economic growth. This empirical study analyses the concept of innovation and suggests it as a viable strategic option for increasing productivity and performance and for fostering a sustainable economic growth, especially in the current context, in which even the more developed countries took a big hit from the global economic crisis (manifested through an array of negative effects, the most noticeable one being the contraction of the gross domestic product through negative growth rates of the GDP. The results show that any worldwide economy could strongly benefit from boosting economic growth through innovation, and that this subject needs to be treated, not only as a solid solution for overcoming the effects of the economic crisis, but also as a prevention instrument, to make sure that the recession never reaches the degree it has in the past. The global economic crisis, which officially started in 2008, according to many specialists, was mainly caused by the crisis which started in the United States of America, which created a domino effect worldwide. The effects of this crisis created the greatest recession since the Second World War, causing: credit freezes, job loss, bankruptcy, low liquidities, increased unemployment, political and social strains and many other issues in the society. In this situation, in order to “re-launch” the national economies of the affected countries, the best solution is to foster economic growth through innovation, regardless of the type of innovation (managerial/technological/radical/incremental. The central point is to use innovation as a tool/instrument that will hopefully prevent another global economic crisis. That being said, companies, economies and societies need to transform into more knowledge-based ones, thus fostering innovation and providing new ways/methods of acting in a

  16. Does Economic Growth Reduce Childhood Undernutrition in Ethiopia?

    Science.gov (United States)

    Biadgilign, Sibhatu; Shumetie, Arega; Yesigat, Habtamu

    2016-01-01

    Policy discussions and debates in the last couple of decades emphasized efficiency of development policies for translating economic growth to development. One of the key aspects in this regard in the developing world is achieving improved nutrition through economic development. Nonetheless, there is a dearth of literature that empirically verifies the association between economic growth and reduction of childhood undernutrition in low- and middle-income countries. Thus, the aim of the study is to assess the interplay between economic growth and reduction of childhood undernutrition in Ethiopia. The study used pooled data of three rounds (2000, 2005 and 2010) from the Demographic and Health Surveys (DHS) of Ethiopia. A multilevel mixed logistic regression model with robust standard errors was utilized in order to account for the hierarchical nature of the data. The dependent variables were stunting, underweight, and wasting in children in the household. The main independent variable was real per capita income (PCI) that was adjusted for purchasing power parity. This information was obtained from World Bank. A total of 32,610 children were included in the pooled analysis. Overall, 11,296 (46.7%) [46.0%-47.3%], 8,197(33.8%) [33.2%-34.4%] and 3,175(13.1%) [12.7%-13.5%] were stunted, underweight, and wasted, respectively. We found a strong correlation between prevalence of early childhood undernutrition outcomes and real per capita income (PCI). The proportions of stunting (r = -0.1207, peconomic growth substantially reduced stunting [β = -0.0016, SE = 0.00013, pEconomic growth reduces child undernutrition in Ethiopia. This verifies the fact that the economic growth of the country accompanied with socio-economic development and improvement of the livelihood of the poor. Direct nutrition specific and nutrition sensitive interventions could also be recommended in order to have an impact on the massive reduction of childhood undernutrition in the country.

  17. 136 Tax Revenue, Stock Market and Economic Growth of Pakistan

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    Muhammad Irfan Javaid Attari

    2014-10-01

    Full Text Available The purpose of this paper is to examine the effects of capital market and fiscal policy influences in determining the nexus of economic growth in Pakistan from July 2003 to July 2012. The authors utilize ADF unit root test, Johansen Cointegration test, VECM test, Granger causality test and variance decomposition analysis to test the relationship among tax revenue, stock market and economic growth in Pakistan. Granger causality analysis is used to answer questions whether “Does tax revenue cause the economic growth?” or “Does tax revenue cause the capital market?”. The results demonstrate that there is a bidirectional casualty between tax revenue and economic growth; and a unidirectional causality from capital market to tax revenue. The estimated result shows that growth of Pakistan economy is strongly contributed from the high collection of direct tax revenue and the development of financial market activity. The findings of this paper have important implications to current and potential investors in Pakistan economy to understand the economic condition of Pakistan and to assist them in making their investment decision.

  18. Fiscal Policy, Public Expenditure Composition, and Growth : Theory and Empirics

    OpenAIRE

    Willi, Semmlero; Alfred, Greiner; Bobo, Diallo; Anand, Rajaram; Armon, Rezai

    2007-01-01

    This paper responds to the development policy debate involving the World Bank and the IMF on the use of fiscal policy not only for economic stabilization but also to promote economic growth and increase per capita income. A key issue in this debate relates to the effect of the composition of public expenditure on economic growth. Policy makers and some researchers have argued that expendit...

  19. A critical realist perspective on decoupling negative environmental impacts from housing sector growth and economic growth

    DEFF Research Database (Denmark)

    Xue, Jin

    2012-01-01

    The question that motivates this article has been a matter of dispute: Is it possible to combine perpetual economic growth and longterm environmental sustainability based on the premise that economic growth can be fully decoupled from negative environmental impacts? The article addresses...... this question from the position of critical realism. An empirical study focusing on the housing sector is conducted, indicating that housing stock growth and economic growth have been, at best, weakly decoupled from environmental impacts. In the long run, it seems implausible that the degree of decoupling can...... be increased at a rate sufficient to compensate for continual growth in the volume of housing stock. A further elaboration of the topic at an ontological level leads to the conclusion that continual economic growth and long-term environmental sustainability can hardly be combined....

  20. China and India: Openness, Trade and Effects on Economic Growth

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    Marelli, Enrico

    2011-06-01

    Full Text Available The purpose of this paper is to analyse the economic growth of China and India in terms of their integration in the global economy. We begin with a discussion of some stylized facts concerning their recent economic growth, the most significant institutional reforms, with particular reference to trade relations, and their impact on their economic development. We then propose a descriptive analysis of economic growth, opening up of the economies and trade specialisation, by comparing the features and trends of the two countries (by considering trade and foreign direct investment data. We have also estimated some econometric relations between economic growth and trade/openness, with the addition of control variables (such as the gross fixed capital formation. We initially used a panel data model for the two countries, to be estimated with fixed effects; to test for reverse causality, we re-estimated the fixed effects model by 2SLS (with the inclusion of specific instrumental variables. The effect on economic growth (in terms of GDP per capita of our variables of interest - Openness and FDI - remains positive and statistically significant in all specifications, which confirms our findings even if we treat these variables as endogenous variables. The results prove the positive growth effects, for the two countries, of opening up and integrating in the world economy. Note that the robust growth of these two "giants" has contained the initial impact of the recent global crisis and is now sustaining the recovery of the entire world economy. Other policy relevant implications are discussed in the concluding section.

  1. Values of Land and Renewable Resources in a Three-Sector Economic Growth Model

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    Zhang Wei-Bin

    2015-04-01

    Full Text Available This paper studies dynamic interdependence of capital, land and resource values in a three sector growth model with endogenous wealth and renewable resources. The model is based on the neoclassical growth theory, Ricardian theory and growth theory with renewable resources. The household’s decision is modeled with an alternative approach proposed by Zhang two decades ago. The economic system consists of the households, industrial, agricultural, and resource sectors. The model describes a dynamic interdependence between wealth accumulation, resource change, and division of labor under perfect competition. We simulate the model to demonstrate the existence of a unique stable equilibrium point and plot the motion of the dynamic system. The study conducts comparative dynamic analysis with regard to changes in the propensity to consume resources, the propensity to consume housing, the propensity to consume agricultural goods, the propensity to consume industrial goods, the propensity to save, the population, and the output elasticity of capital of the resource sector.

  2. A study on organizational entrepreneurship on economic growth

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    Afsaneh Derakhshandeh

    2013-01-01

    Full Text Available Today, the positive impact of entrepreneurship in the economy has been globally accepted. Entrepreneurs could provide efficient techniques to face with upcoming economic challenges. In this paper, we first investigate the effect of entrepreneurship on growth of economy over the period 2005- 2011. Then we study the impact of four factors including Gross domestic product per worker, Growth in capital per worker, New firm creation and Technological innovation intensity on economic growth. The proposed model of this paper uses ordinary least square technique to investigate the relationship between four independent variables and economic growth. The results show that gross domestic product per worker is the only variable, which is statistically meaningful when the level of significance is five percent and the impact of other three variables including growth in capital per worker, new firm creation and technological innovation intensity are not statistically meaningful. In other word, as we see a 1% increase in gross domestic product per worker we could expect 8.712% increase in economic growth.

  3. KNOWLEDGE-INTENSIVE SERVICES AND THEIR EFFECT ON ECONOMIC GROWTH

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    CIOBAN GABRIELA-LILIANA

    2015-03-01

    Full Text Available This paper starts from the idea that the key determinants for economic growth can be: smart growth (promoting knowledge, innovation, education and the digital society, sustainable growth (a more competitive production, with a better use of resources and an economic growth that promotes togetherness (higher workforce participation, acquiring skills and the fight against poverty. I have also considered the fact that economic growth cannot be made at random, but has to consider the characteristics, as well as strong and weak points of the counties that are being analyzed. Notes so far are complemented by the analysis of some benchmarks for the economy of the EU countries (GDP, employment rate of labor, employment rate of dropping school, amount of GDP allocated to Research&Development, human poverty index. EU interest in obtaining long-term prosperity lies in analyzing the factors that contribute to this objective. Evaluation of the benchmarks and factors impacting economic growth highlights the purpose of this paper and its importance for the XXI century society. Proposed strategies involve a thorough research on the current situation in Romania and in the EU and in this case I consider that the economies are intrinsically linked and no member state can effectively address global challenges in an isolated action.

  4. The Impact of Regional Disparities on Economic Growth

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    Henryk Gurgul

    2011-01-01

    Full Text Available The authors investigated how economic growth affects the disparity in the distribution of regional income in Poland and vice versa. The research was based on annual data covering the period 2000-2009. In general, the research was divided into two main parts. First, the authors examined the evolution of the level of spatial inequalities in income in Poland over the last decade using the concepts of sigma and beta convergence. Next the nature of causal dependences was investigated between this inequality and economic growth. It was found that Polish regions did not converge with respect to the distribution of income as total GDP grew. The second part of the research provided evidence to claim that this inequality caused growth. Moreover, the evidence was also found that growth affected regional inequality. Finally, the authors noticed that the effects of both these factors were positive. The results suggest that as a consequence of rapid economic growth, some regions in Poland seized new opportunities, while less developed regions were unable to keep up with the challenging requirements of a decade of fast economic growth. (original abstract

  5. Financial Markets Interactions between Economic Theory and Practice

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    Mihaela NICOLAU

    2010-12-01

    Full Text Available During the last decades many financial analysts, either theorists or practitioners, have dedicated their studies to the interactions between different financial sectors. The results of these researches confirm that commodities, bonds and stock markets are closely related, therefore a thorough analysis of one should includes considerations of the other two. The aim of this article is to demonstrate that, even if from the theoretical point of view financial markets present typical and strong correlations between them, under economic turmoil the correlations change their signs. Both elementary rules of economic theory and examples with real time series are used in the demonstration. The results of our research emphasize that a simple theoretical analysis of financial markets’ behaviour through inflation and interest rates cannot define the real interactions of the markets and more robust research approaches are required.

  6. IDEOLOGEMI OF MODERN CONCEPTUALLY METHODOLOGICAL “UPDATE” IN ECONOMIC THEORY

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    V. Mandubura

    2013-04-01

    Full Text Available The causes and theoretical definition of modern economic ideologemes are examined in the article. The peculiarities of origin and current forms of social and economic orders implemented with help of economic theory are disclosed. Author’s vision of directions in conceptual and methodological renewal of economic theory in modern terms is given.

  7. Theories of International Economic Development (Case Study: Economic Development in Kosovo)

    OpenAIRE

    MSc. Bardhok Bashota; MSc. Petrit Hasanaj

    2012-01-01

    Karl Popper rightly says that “real starting point for each research is set based on assumptions of reality, not only based on the real facts”. The text below was prepared In accordance with this logic, where the Theories of International Development are treated especially focusing on International Economic Development. Therefore, theoretical reflections present assumption side, and study of many empirically measured data will correspond with real facts, because with ought these facts assumpt...

  8. Optimal control theory applications to management science and economics

    CERN Document Server

    Sethi, Suresh P

    2006-01-01

    Optimal control methods are used to determine the best ways to control a dynamic system. This book applies theoretical work to business management problems developed from the authors' research and classroom instruction. The thoroughly revised new edition has been refined with careful attention to the text and graphic material presentation. Chapters cover a range of topics including finance, production and inventory problems, marketing problems, machine maintenance and replacement, problems of optimal consumption of natural resources, and applications of control theory to economics. The book in

  9. Fiscal Deficit, National Saving and Sustainability of Economic Growth in Emerging Economies: A Dynamic GMM Panel Data Approach

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    Buscemi Antonino

    2012-01-01

    Full Text Available The neoclassical growth models argued that the movement to steady states; technology, exogenous rate of savings, population growth and technical progress stimulate higher growth levels (Solow 1956. Contrary to the neoclassical argument, endogenous growth model argues that, in the theory of endogenous growth, government play a significant role in promoting accumulation of knowledge, research and development, public investment, human capital development, law and order can generate growth both in the short and long run. Moreover, they assumed technical progress as endogenous variable for growth (Barro 1995. This study analyze the effects of fiscal deficit on sustainability of economic growth and provided new empirical evidence on the effects of fiscal deficit on saving and sustainability of economic growth based on the assumption of endogenous growth model. We estimated using the reduced form of GMM method for dynamic panels covers 1990-2009 for three emerging countries that includes China, India and South Africa.

  10. The Dynamic Effects of Entrepreneurship on Regional Economic Growth

    DEFF Research Database (Denmark)

    Matejovsky, Lukas; Mohapatra, Sandeep; Steiner, Bodo

    2014-01-01

    This study explores the temporal pattern of income disparity for Canadian provinces in two estimation steps. First, an econometric growth regression model is applied to identify the impact of entrepreneurship on regional economic growth. The estimation results suggest that entrepreneurship......, measured in terms of the selfemployment rate, plays a pivotal role in determining regional development in Canada. Second, a dynamic vector autoregression (VAR) model is employed to predict the long-run regional growth effects that result from policy shocks affecting entrepreneurship. Compared to other...... growth drivers, entrepreneurship is found to have more pronounced and long-term stimulative effects on regional development for the period of 1987 to 2007...

  11. Determinants of Economic Growth: Empirical Evidence from Russian Regions

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    Svetlana Ledyaeva

    2008-06-01

    Full Text Available A modification of Barro and Sala-i-Martin empirical framework of growth model is specified to examine determinants of per capita growth in 74 Russian regions during period of 1996-2005. We utilize both panel and cross-sectional data. Results imply that in general regional growth in 1996-2005 is explained by the initial level of region's economic development, the 1998 financial crisis, domestic investments, and exports. Growth convergence between poor and rich regions in Russia was not found for the period studied.

  12. The effects of terrorism on economic growth: Panel data approach

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    Mehmet Çinar

    2017-06-01

    Full Text Available The aim of this study is to examine the effects of terrorism on economic growth experienced worldwide. More precisely these terrorist incidents and its effects on economic growth in most countries are classified according to income groups. In this respect, we conduct a panel study (FE and RE models to analyze the number of terrorist incidents in these countries and the data range from 2000 to 2015 covering a total of 115 countries. The result of the study is in line with other findings in the literature. Those terrorist attacks are causing a negative impact on the economic growth in most countries, particularly in low-income countries. Generally speaking, the findings show that low-income countries are affected about three times more than high-income countries as a result of these terrorist attacks.

  13. Sources of Economic Growth: An Extensive Growth Accounting Exercise

    OpenAIRE

    Abdelhak S Senhadji

    2000-01-01

    A growth accounting exercise is conducted for 88 countries for 1960-94 to examine the source of cross-country differences in total factor productivity (TFP) levels. Two differences distinguish this analysis from that of the related literature. First, the critical technology parameter - the share of physical capital in output - is econometrically estimated and the usual assumption of identical technology across regions is relaxed. Second, while the few studies on the determinants of cross-coun...

  14. Decomposing the decoupling of Danish road freight traffic growth and economic growth

    DEFF Research Database (Denmark)

    Kveiborg, Ole; Fosgerau, Mogens

    2007-01-01

    freight traffic and transport is attributed to causes using a Divisia, index decomposition method. It is demonstrated that overall road freight traffic growth is a consequence of often opposite pointing growth effects in the underlying factors. The observed decoupling of road freight traffic growth from......In recent years many European countries have seen a decoupling of the growth in road freight traffic (vehicle kilometres) from economic growth. A similar decoupling has not been observed in road freight transport (tonne kilometres). In this paper the historical growth in national Danish road...... economic growth is mainly the result of use of larger vehicles, increasing average loads, and less empty running. Growth in road freight transport is primarily caused by growth in production. A decrease in the number of tons lifted per tonne produced (the handling factor) is offset by an increase...

  15. ECONOMIC GROWTH AND TAXATION IN CENTRAL AND EASTERN EUROPE

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    Cristina BOROVINA (COJOCARU

    2016-05-01

    Full Text Available In the context of the economic crisis that started in the United States in 2007, economic growth has become of great importance for the countries affected by the crisis further to their confrontation with lower growth rates of GDP per capita. At national level, governments are searching for that mix of optimal economic policies that would revive economies on the upward and also sustainable trend. One of the key policies in this regard, especially for the countries in Central and Eastern Europe which intend to adopt the euro currency, is the tax policy. Its main instruments are taxes. In this paper, we pay special attention to these instruments and to the connection that they have with the economic growth. This paper is divided into three parts. The first part presents a few ideas related to the importance of taxes at national level, the second part is an analysis in terms of taxation of the Central and Eastern Europe countries, while the third part consists of a panel-type assessment of the relation between economic growth and taxation level.

  16. IMPACTS OF FOREIGN INVESTMENT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES

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    Siniša Bosanac

    2016-12-01

    Full Text Available The current global economic crisis raises many questions and the most important imperative is to find solutions and recover the world economy. Neoliberalism as a cause of the crisis has shown fundamental shortcomings and proved that the market is an imperfect self-regulating system. At the present time in the media, politicians and some economists mention foreign direct investment (FDI as a life-saving solution for economic problems and economic growth. The analysis of the economic indicators proved that FDI cannot be, to the necessary extent, a generator of economic growth and that development of each country should be based on endogenous components. The development of critical thinking and questioning of the neoliberal concept, especially with today's time distance through comparisons of indicators such as economic growth, absence of inflation, employment and the export-import ratio, has revealed major systemic defects of the market fundamentalist policies. A strong indicator and argument to this thesis is particularly evident in the industrial production indexes, in the number of industrial workers and in the share of industry in GDP of transition countries.

  17. How Strategic Entrepreneurship and the Institutional Context Drive Economic Growth

    DEFF Research Database (Denmark)

    Bjørnskov, Christian; Foss, Nicolai Juul

    2013-01-01

    The economics of growth has shown that countries grow by better allocating whatever resources are at their disposal and by introducing productivity-enhancing innovations. Strategic entrepreneurship plays a key role in this process by searching for, combining, trying out, etc., new resource...... combinations in the pursuit of profits under uncertainty. Institutions that support economic freedom allow such experimentation to take place at low transaction costs, positively influencing total factor productivity. We test these ideas on a unique panel data set derived from Compendia, World Bank data......, and the Fraser Institute's economic freedom data. Copyright © 2013 Strategic Management Society....

  18. Overview of the Main Theories on the Economic Effects of Public Indebtedness

    Directory of Open Access Journals (Sweden)

    Irina Bilan

    2016-05-01

    Full Text Available The paper briefly reviews the main theories formulated over time on the economic effects of public indebtedness, with the aim to highlight their common and divergent points, the arguments they rely upon, as well as their relevance, given the current economic environment. Three major views are considered, namely the classical one, the Keynesian one and the view of neoliberal economists (monetarist economists and representatives of the school of rational expectations. The comparative approach of the different views allowed us to shape some criteria of decision which may prove useful for public policymakers in formulating public debt policies conducive to economic growth: public indebtedness should not become common practice but be reserved for those situations in which the economy is confronted with unusual phenomena, such as economic downturns; borrowed resources should be used especially on those destinations which create added value in the economy, such as public investment; public debt should not accumulate at a fast pace and should be kept within reasonable limits, to avoid possible side effects on economic growth.

  19. Regressional modeling and forecasting of economic growth for arkhangelsk region

    Directory of Open Access Journals (Sweden)

    Robert Mikhailovich Nizhegorodtsev

    2012-12-01

    Full Text Available The regression models of GRP, considering the impact of three main factors: investment in fixed assets, wages amount, and, importantly, the innovation factor –the expenditures for research and development, are constructed in this paper on the empirical data for Arkhangelsk region. That approach permits to evaluate explicitly the contribution of innovation to economic growth. Regression analysis is the main research instrument, all calculations areperformedin the Microsoft Excel. There were made meaningful conclusions regarding the potential of the region's GRP growth by various factors, including impacts of positive and negative time lags. Adequate and relevant models are the base for estimation and forecasting values of the dependent variable (GRP and evaluating their confidence intervals. The invented method of research can be used in factor assessment and prediction of regional economic growth, including growth by expectations.

  20. The Impact of Key Monetary Variables on the Economic Growth of the CEMAC Zone

    Directory of Open Access Journals (Sweden)

    Forgha Godfrey NJIMANTED

    2016-09-01

    Full Text Available This study seeks to empirically explore the impact of key monetary policy variables on the economic growth in the CEMAC zone from the period of 1981 to 2015. Carried out using the Ex post facto research design based on the principal components selection approach, the study interacts money supply, interest rate, economic growth, and inflation rate, among themselves and their lagged values using the Vector Auto-regressive (VAR analytical technique. The Classical quantity theory of money, the Cambridge Cash Balanced, the liquidity preference theory and the Monetarists as theoretical frameworks were explored to appreciate the time trends of the selected variables on the economic growth of the CEMAC zone. Based on the (VAR methodology, the study reveals that key monetary policy variables influence economic growth of the CEMAC zone in different ways with inflation rate as the impact factor. On the basis of the above findings and the evidence from other studies, lending and inflation rate generated substantial destabilizing impacts on the economic growth, suggesting that the monetary authorities should play a critical role in creating an enabling environment for growth. The determination of the optimal lending rate should reflect the overall internal rate of returns in the productive sectors with due attention to market fundamentals. In line with this, the Central Bank of CEMAC should be given complete instrumental autonomy to operate depending on a set of in-built targets by the individual countries of the zone. Effective monetary targeting and accommodating monetary policies should be designed and implemented as the need arises with little or no political motives.

  1. The impact of gender stereotypes on economic growth

    OpenAIRE

    Boschini, Anne

    2003-01-01

    This paper argues that gender-specific educational choices have macroeconomic consequences in terms of economic growth. The presence of a social norm affecting persons choosing gender atypical educations at the university level generates a suboptimal allocation of ability, which lowers technological change and the stock of human capital, and thus hurts growth. The analysis of a cross-section of 88 countries over the period 1970 to 1998 lends empirical support for the importance of the educati...

  2. Availability of Higher Education and Long-Term Economic Growth

    OpenAIRE

    Ryo Horii; Akiomi Kitagawa; Koichi Futagami

    2005-01-01

    This paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to young households. Under certain conditions, it leads to greater aggregate savings in each period, thereby enabling the economy to grow faster than without any limitation. In such cases, an excessive expa...

  3. Action-Based Jurisprudence: Praxeological Legal Theory in Relation to Economic Theory, Ethics, and Legal Practice

    Directory of Open Access Journals (Sweden)

    Konrad Graf

    2011-08-01

    Full Text Available Action-based legal theory is a discrete branch of praxeology and the basis of an emerging school of jurisprudence related to, but distinct from, natural law. Legal theory and economic theory share content that is part of praxeology itself: the action axiom, the a priori of argumentation, universalizable property theory, and counterfactual-deductive methodology. Praxeological property-norm justification is separate from the strictly ethical “ought” question of selecting ends in an action context. Examples of action-based jurisprudence are found in existing “Austro-libertarian” literature. Legal theory and legal practice must remain distinct and work closely together if justice is to be found in real cases. Legal theorizing was shaped in religious ethical contexts, which contributed to confused field boundaries between law and ethics. The carrot and stick influence of rulers on theorists has distorted conventional economics and jurisprudence in particular directions over the course of centuries. An action-based approach is relatively immune to such sources of distortion in its methods and conclusions, but has tended historically to be marginalized from conventional institutions for this same reason.

  4. Critica della teoria neoclassica della crescita e della distribuzione (A Critique of the Neoclassical Theory of Growth and Income Distribution

    Directory of Open Access Journals (Sweden)

    Luigi Pasinetti

    2012-10-01

    Full Text Available The paper surveys the main theories of income distribution in their relationship with the theories of economic growth. First, the Classical approach is considered, focusing on the Ricardian theory. Then the neoclassical theory is discussed, highlighting its origins (Bohm-Bawerk, Wicksell, Clark and the role of the aggregate production function. The emergence of a "Keynesian" theory of income distribution in the wake of Harrod's model of growth is then recalled together with the surprising resurgence of the neoclassical theory (following the contributions of Solow and Meade. But, as the paper shows, the neoclassical theory of income distribution lacks logical consistency and has shaky foundations, as has been revealed by the severe critiques moved to the neoclassical production function. Mainstream economic literature circumvents this problem by simply ignoring it; while the models of endogenous growth exclude the issue of distribution theory from their consideration. However, while mainstream economics bypasses the problems of income distribution, this is too relevant an issue to be ignored and a number of new research lines, briefly surveyed, try new approaches to it.          JEL Codes: O41, E25Keywords: Distribution, Economic Growth, Growth, Income Distribution, Income

  5. Building Better Ecological Machines: Complexity Theory and Alternative Economic Models

    Directory of Open Access Journals (Sweden)

    Jess Bier

    2016-12-01

    Full Text Available Computer models of the economy are regularly used to predict economic phenomena and set financial policy. However, the conventional macroeconomic models are currently being reimagined after they failed to foresee the current economic crisis, the outlines of which began to be understood only in 2007-2008. In this article we analyze the most prominent of this reimagining: Agent-Based models (ABMs. ABMs are an influential alternative to standard economic models, and they are one focus of complexity theory, a discipline that is a more open successor to the conventional chaos and fractal modeling of the 1990s. The modelers who create ABMs claim that their models depict markets as ecologies, and that they are more responsive than conventional models that depict markets as machines. We challenge this presentation, arguing instead that recent modeling efforts amount to the creation of models as ecological machines. Our paper aims to contribute to an understanding of the organizing metaphors of macroeconomic models, which we argue is relevant conceptually and politically, e.g., when models are used for regulatory purposes.

  6. Impact of political instability on foreign direct investment and Economic Growth: Evidence from Malaysia

    OpenAIRE

    Nazeer, Abdul Malik; Masih, Mansur

    2017-01-01

    Based on many studies, economic theories and real life experiences, we can understand that political instability has been a harmful factor that would hinder the flow of FDI and the growth of an economy. In our study, we would like to focus on Malaysia, which had its fair share of political instability issues due to the differences and existence of various races. But based on recent studies, it is considered a politically stable economy. Despite everything, Malaysia has been able to achieve co...

  7. QUALITY OF NATIONAL ECONOMIC GROWTH: FACTORS AND DETERMINANTS

    Directory of Open Access Journals (Sweden)

    Nikolaj I. Komkov

    2015-01-01

    Full Text Available The subject / topic: TThe theme of this article is very relevant in the light of changes in the global geo-economic structure and changing the role and place ofRussiain world economic and geopolitical relations. The article deals with the basic aspects of national economic growth, which slowed down in the last three years. The main reason for slowing national economic growth is associated with the depletion of the reserves of the traditional export-oriented development of the Russian economy, as well as problems with sluggish innovative transformation. In this paper, based on a systematic analysis of economic processes and the interpretation of analytical data, addresses the general theoretical and methodological aspects of the quality of economic development, as well as practical guidelines and recommendations related to sustainable national socio-economic development in the context of external constraints.The purpose / objectives: The aim of the article is to analyze the theoretical and methodological aspects of the quality of economic development of the Russian economy, which happened in the face of economic sanctions. Objectives of the article: justify practical directions and recommendations related to sustainable national socio-economic development in the context of external constraints, determine the prospects for the economy of theRussian Federationin the conditions of the introduction of sectoral sanctions by Western countries. Methodology:Methodological basis of this article are the comparative and economic-statistical methods of analysis.The Results: The study revealed that the harsh environment (sanctions, depreciation of the ruble, and others. Require surgical intervention and adjustments not only the current socio-economic plans, but also to take urgent measures to ensure the development prospects. The most important decision is the degree of support advanced scientific and technical programs and the creation of new domestic

  8. Effects of Chinese Economic Stimulus Package on Economic Growth in the Post-Crisis China

    Directory of Open Access Journals (Sweden)

    Shenglv Zhou

    2011-01-01

    Full Text Available This paper aims to simulate the contribution of investment expansion policy after financial crisis as well as describe the possible economic perspectives in the post-crisis period by using scenario simulation method based on Chinese dynamic economic CGE (computable general equilibrium model. Energy consumption and CO2 emission are also considered in order to access the possible negative effects owing to investment enlargement. The results show that expanding investment response to financial crisis increases economic growth rate by 6.74% from 2.36% in 2009. It can relieve the fluctuation in economy and bring the economic growth close to baseline level in the near post-crisis period. However, higher energy consumption intensity and CO2 emission intensity compared to baseline owing to the increasing investment make energy saving and CO2 mitigation more difficult.

  9. Entrepreneurial Growth Aspirations and Familiarity with Economic Development Organizations: Evidence from Canadian Firms

    Directory of Open Access Journals (Sweden)

    Angelo Dossou-Yovo

    2015-01-01

    Full Text Available The purpose of this paper is to investigate the relationship between the entrepreneurship ecosystem and the entrepreneur’s willingness to grow. This study is particularly interested in exploring the relationship between entrepreneur’s familiarity with the key economic development organizations in the entrepreneurship ecosystem and the willingness to grow. Several studies have investigated the growth process in small and medium sized enterprises (SMEs since the case has been made that high growth SMEs contribute to economic growth through job creation. To date, these studies have identified multiple internal and external determinants including their effects on small business growth. There is evidence in the literature that characteristics of the entrepreneurs such as the willingness to grow and the entrepreneur’s network are important factors in growth process. However, the relationship between growth process and the entrepreneur’s networking behavior is yet to be fully understood. Drawing from the entrepreneurship ecosystem literature, the growth process literature and the resource dependence theory, this study uses the business confidence survey from 2011 to 2013, which targeted all businesses across all of Halifax Regional Municipality (HRM in Nova Scotia, Canada, to explore the relationship between the entrepreneur willingness to grow and the propensity to network with key economic development organizations of the entrepreneurial ecosystem. The findings support the assumption that the proportion of businesses that are willing to grow (i.e. hire additional staff and enter new markets within the next twelve months is higher for the group of businesses that are familiar with the key economic development organizations than for the group of businesses that are not familiar with them. However, the results are not homogeneous across all populations. Our findings also indicate that the higher the expectation to enter new markets over the next

  10. A political economic theory of the dental care market.

    Science.gov (United States)

    Lipscomb, J; Douglass, C W

    1982-01-01

    A theory of the dental care market is introduced which proposes that the vertically integrated (local/state/national) structure of the profession services as an organizational vehicle both for intra-professional debate and for developing provider-oriented dental care policy. We suggest that a special relationship exists between professionalism and professional regulation. Such regulation has functioned simultaneously to limit competition and to foster a prized consumption commodity for providers: professionalism and professional esteem. The organized pursuit of this commodity inherently dampens competition. Professionalism itself plays a crucial role in: 1) securing for organized dentistry a form of state regulation in which the providers themselves are the principal decision-makers; and 2) influencing provider and consumer market behavior in several significant respects, the net result being the formation of maintenance of a type of "leadership cartel" in the local market. Thus, a political-economic theory of the dental care market formally acknowledges professionalism as valued by established dentists and recent graduates as a central determining influence. Traditional models of pure competition and monopoly emerge as special, extreme cases of the general theory. Hypotheses are offered regarding consumer and provider behavior, market dynamics, and health policy and regulation. PMID:7091455

  11. R.M. Solow Adjusted Model of Economic Growth

    Directory of Open Access Journals (Sweden)

    Ion Gh. Rosca

    2007-05-01

    Full Text Available Besides the models of M. Keynes, R.F. Harrod, E. Domar, D. Romer, Ramsey-Cass-Koopmans etc., the R.M. Solow model is part of the category which characterizes the economic growth. The paper proposes the study of the R.M. Solow adjusted model of economic growth, while the adjustment consisting in the model adaptation to the Romanian economic characteristics. The article is the first one from a three paper series dedicated to the macroeconomic modelling theme, using the R.M. Solow model, such as: “Measurement of the economic growth and extensions of the R.M. Solow adjusted model” and “Evolution scenarios at the Romanian economy level using the R.M. Solow adjusted model”. The analysis part of the model is based on the study of the equilibrium to the continuous case with some interpretations of the discreet one, by using the state diagram. The optimization problem at the economic level is also used; it is built up of a specified number of representative consumers and firms in order to reveal the interaction between these elements.

  12. World Economic Growth and Oil: a Producers' Perspective

    Science.gov (United States)

    Shihab-Eldin, Adnan

    2014-07-01

    This paper examines the following assertions: * A high share of oil price in GDP limits economic growth, * Oil Price shocks trigger recession, * These effects will be escalated by peaked oil supply and rising developing world demand and together with increasing contributions to climate change will result in a global emergency. The role of energy in societal development and economic growth, from primitive man through the industrial revolution and the oil age to the present and the evolution of energy intensity are described. The principle role of oil as a transport fuel and the possibilities of alternatives are examined. It is concluded that oil dependence will continue for the foreseeable future. The history of the industry, market behavior and its economic effects are presented to establish precedent and the assertions are then examined. It is shown that rising oil prices are an unavoidable consequence of economic growth, that they have stimulated efficient minimum functional use and made more difficult conventional and unconventional sources economic. It is then argued that potentially these additional resources eliminate the possibility of supply shortage and that diversification of supply lessens the possibility of shock, together rendering a global emergency less likely than could have been previously envisaged.

  13. Life insurance, financial development and economic growth in South Africa

    Directory of Open Access Journals (Sweden)

    Athenia Bongani Sibindi

    2014-09-01

    Full Text Available The life insurance sector may contribute to economic growth by its very mechanism of savings mobilisation and thereby performing an intermediation role in the economy. This ensures that capital is provided to deficient units who are in need of capital to finance their working capital requirements and invest in technology thereby resulting in an increase in output. In this way, it could be argued that life insurance development spurs financial development. In this article we investigate the causal relationship between the life insurance sector, financial development and economic growth in South Africa for the period 1990 to 2012. We make use of life insurance density as the proxy for life insurance development, real per capita growth domestic product as the proxy for economic growth and real broad money per capita as the proxy for financial development. We test for cointegration amongst the variables by applying the Johansen procedure and then proceed to test for Granger causality based on the vector error correction model (VECM. Our results confirm the existence of at least one cointegrating relationship amongst the variables. The results indicate that the direction of causality runs from the economy to the life insurance sector which is consistent with the “demand-following” insurance-growth hypothesis. There is also evidence of causality running from the economy to financial development which is consistent with the “demand following” finance-growth hypothesis. The results also reveal that life insurance complements economic growth in bringing about financial development further lending credence to the “complementarity” hypothesis

  14. Transportation and economic growth in Nigeria | Nwakeze | Journal ...

    African Journals Online (AJOL)

    This paper attempts to provide empirical evidence on the contribution of transport investment, congestion and traffic related accidents to economic growth in Nigeria. In this paper, transport investment is proxied by physical stock of road infrastructure while congestion is proxied by automobile density. Using the extended ...

  15. Foreign direct investment and economic growth in Nigeria: a ...

    African Journals Online (AJOL)

    The paper examines the causal relationship between foreign direct investment ( FDI) and economic growth, measured by the gross domestic product (GDP). Augumented Dickey-Fuller (ADF) test was used for the unit root test, Johansen Cointegration test was conducted to establish short and long run relationship between ...

  16. Promoting Debates on Economic Growth and Poverty Reduction in ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Policy researchers have a key role to play in insuring that economic growth and poverty reduction plans are responsive to the needs and interests of poor people. They can do so first by providing evidenced-based policy proposals reflecting a range of views, and second, by promoting such proposals, enriched through ...

  17. Impact of external debt on economic growth in ghana

    African Journals Online (AJOL)

    'KNUST School of Business, Kwame Nkrumah University of Science & Technology, Ghana. * School of Business ... external debt on economic growth. Broadly, key debt variables as determinants of GDP these studies can be .... rent debt service payments should lead to an increase in current investment or any given level.

  18. Private sector development Aligning goals for economic growth and ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    2014-04-10

    Apr 10, 2014 ... As an engine of economic growth, private enterprise plays an important role in combatting poverty by creating jobs and livelihood opportunities. In helping developing countries pursue private sector development strategies that benefit women, youth, and the poor, innovative research supported by IDRC is ...

  19. The Role of Stock Market Development on Economic Growth in ...

    African Journals Online (AJOL)

    The results show that market capitalization and value traded ratios have a very weak negative correlation with economic growth while turnover ratio has a very ... The government should make policies that boost the interest of domestic investors in Nigeria as this might spur investors' interest and boost stock market activity.

  20. China’s Demographic Limits to Economic Growth

    Science.gov (United States)

    2012-06-01

    each family under her jurisdiction and collected information on which women were using contraceptives , the methods used, and which had become...NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS Approved for public release; distribution is unlimited CHINA’S DEMOGRAPHIC...LIMITS TO ECONOMIC GROWTH by David Truesdell June 2012 Thesis Co-Advisors: Naazneen Barma Michael Glosny THIS PAGE INTENTIONALLY

  1. Barriers to economic growth in Malawi: reflections on smallholders

    NARCIS (Netherlands)

    Kambewa, E.; Nagoli, J.

    2010-01-01

    The contribution of smallholders to the economic growth in developing countries and Malawi in particular may be a well know fact. Malawi's economy is agro-based where the agriculture sector contributes 42% of national GDP. Despite the smallholder agriculture's contribution to the economy (30% of

  2. Domestic resource mobilization and long term economic growth in ...

    African Journals Online (AJOL)

    The objective of this paper is to examine the long term effects of domestic resource mobilization (DRM) on economic growth. This study used macroeconomic data for a period of 20 years spanning 1996 to 2015. By estimating the Autoregressive distributed lag (ARDL) model, Error Correction Model (ECM) and Impulse ...

  3. Economic Growth, Redistribution Policy and Fiscal Policy in South ...

    African Journals Online (AJOL)

    The aim of this article is to uncover which method of fi nancing an increase in social services expenditure would guarantee economic growth while assuring that government operates within a balanced budget constraint. The article will also assess whether fi scal policy (which aims at fiscal discipline) could improve the rate ...

  4. Decentralization and Economic Growth per capita in Europe

    NARCIS (Netherlands)

    Crucq, Pieter; Hemminga, Hendrik-Jan

    2007-01-01

    In this paper the relationship between decentralization and economic growth is investigated. The focus is on decentralization from the national government to the highest substate level in a country, which we define as regional decentralization. Section 2 discusses the different dimensions of

  5. Transport infrastructure and economic growth in Nigeria | Ighodaro ...

    African Journals Online (AJOL)

    The paper considered transport infrastructure and economic growth in Nigeria. Findings from the study show that in the three national development plans in Nigeria, road transportation system has been given more priority followed by water and air. It was found that the local government authority controls about 67% of the ...

  6. Foreign direct investment, financial development and economic growth

    NARCIS (Netherlands)

    Hermes, C.L.M.; Lensink, B.W.

    2003-01-01

    This article argues that the development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. A more developed financial system positively contributes to the process of technological diffusion associated with FDI. The

  7. Foreign direct investment, financial development and economic growth

    NARCIS (Netherlands)

    Hermes, Niels; Lensink, Robert

    2000-01-01

    FDI may help to raise economic growth in recipient countries. Yet, the contribution FDI can make may strongly depend on the circumstances in the recipient countries. This paper argues that the development of the financial system of the recipient country is an important precondition for FDI to have a

  8. Performance, organ growth and economics of finisher broiler fed ...

    African Journals Online (AJOL)

    A 28-day feeding trial was conducted to evaluate the effects of dietary inclusion of neem (Azadirachta indica) leaf meal on the performance, organ growth and economics of finishing broilers. The harvested neem leaves were chopped and air dried under room temperature for ten days until they became crispy while retaining ...

  9. Impact of Export Instability on Economic Growth in Tanzania | Kweka ...

    African Journals Online (AJOL)

    This is consistent with the findings in most commodity-dependent developing countries that export instability is detrimental to economic growth. Reducing export instability is possible through diversification of the export basket and destination markets, with policy attention on resolving constraints to domestic production for ...

  10. An analysis of tourism contribution to economic growth in SADC ...

    African Journals Online (AJOL)

    The study how the tourism sector can be an engine of economic growth in SADC member countries. The paper found the contribution of tourism to GDP, employment, export receipts and investment is significant. Although this sector's contribution to the economy varies among SADC countries, the the study found that ...

  11. Long Run Economic Growth In Mauritius | Dabee | University of ...

    African Journals Online (AJOL)

    University of Mauritius Research Journal. Journal Home · ABOUT · Advanced Search · Current Issue · Archives · Journal Home > Vol 1 (1998) >. Log in or Register to get access to full text downloads. Username, Password, Remember me, or Register. Long Run Economic Growth In Mauritius. RB Dabee. Abstract.

  12. To what extent does banks' credit stimulate economic growth ...

    African Journals Online (AJOL)

    This study examines the extent to which banks' credit affects economic growth in Nigeria. The data used was collected from the Central Bank of Nigeria statistical bulletin for a period of 24 years from 1990 to 2013. We used credit to the private sector, credit to the public sector and inflation to proxy commercial bank credit ...

  13. The balance of payment-constrained economic growth in Ethiopia ...

    African Journals Online (AJOL)

    The objective of this paper is to empirically test the validity of the simplified version of the balance of payment-constrained economic growth model for Ethiopia during the period 1971-20082. According to the model, economies only grow at a pace allowed by the constraints imposed by the requirement of balance of payment ...

  14. Education in Thailand: When Economic Growth Is No Longer Enough

    Science.gov (United States)

    Michel, Sandrine

    2015-01-01

    After fifty years of almost continuous economic growth in Thailand, it is now possible to reevaluate the developmental process of the education system. Until now, the structural indicators of education development that have been mainly used are the level and pace of the increases in public expenditure on education, the effect of increasing…

  15. Educational Expansion, Economic Growth and Antisocial Behaviour: Evidence from England

    Science.gov (United States)

    Sabates, Ricardo

    2010-01-01

    This paper investigates the impact of the increase in post-compulsory schooling and economic growth on conviction rates for antisocial behaviour in England. I hypothesise that both educational and employment opportunities should lead to greater reductions in antisocial behaviour when they are combined than when they exist in isolation. I test this…

  16. Investing in Livestock to Drive Economic Growth in Africa: Rationale ...

    African Journals Online (AJOL)

    Investing in Livestock to Drive Economic Growth in Africa: Rationale and Priorities. S Nouala, U Pica-Ciamarra, J Otte, A N'guetta. Abstract. No Abstract. Full Text: EMAIL FULL TEXT EMAIL FULL TEXT · DOWNLOAD FULL TEXT DOWNLOAD FULL TEXT · AJOL African Journals Online. HOW TO USE AJOL... for Researchers ...

  17. Foreign direct investment and economic growth in developing ...

    African Journals Online (AJOL)

    It has been widely claimed that foreign direct investment (FDI) stimulates economic growth. In this study, an attempt is made to verify this for ten selected Sub-Saharan African (SSA) countries using data spanning from 2008 to 2013 obtained from world development indicators. Preliminary analysis conducted indicates that ...

  18. Do 'green' taxes work? Decoupling environmental pressures and economic growth

    DEFF Research Database (Denmark)

    Andersen, Mikael Skou

    2005-01-01

    This essay intends to shed light on whether environmental taxation can help to decouple environmental pressures from economic growth, a policy outcome widely desired and particularly pressing in the context of climate change where radical measures are needed to curb CO2 build up....

  19. Financial liberalization and economic growth : A meta-analysis

    NARCIS (Netherlands)

    Bumann, Silke; Hermes, Niels; Lensink, Robert

    This study provides a systematic analysis of the empirical literature on the relationship between financial liberalization and economic growth by conducting a meta-analysis, based on 441 t-statistics reported in 60 empirical studies. We focus on explaining the heterogeneity of results in our sample

  20. Regional technical innovation suitability and economic growth in China

    NARCIS (Netherlands)

    Zhou, Qing; Zhu, Dan; Brouwers-Ren, Liqin

    2012-01-01

    This paper aims to use quantitative method to analyse the suitability of regional technical innovation and further compare its influence to regional economic growth in China. Based on literature review, the authors develop an evaluation index system containing four aspects (namely, innovators,

  1. Growth Performance, Yields and Economic Benefits of Nile Tilapia ...

    African Journals Online (AJOL)

    fish culture integration in the growth, yields and economic benefits of fish and vegetables. Two 200 m2 earthen fishponds were stocked with Nile tilapia Oreochromis niloticus at 20,000 fish fingerlings per hectare. Pond A was fertilized with ...

  2. Financial Openness and Economic Growth in Nigeria: A Vector Error ...

    African Journals Online (AJOL)

    Toshiba

    This paper tests the hypothesis that financial openness promotes economic growth. Theoretically and empirically, the results are mixed. The study used vector error correction modelling and to capture impact of financial ... financial market and credit flow. .... (GOVT/GDP) and investment to GDP ratio, and the population.

  3. Government expenditure and economic growth nexus: Wagner's law ...

    African Journals Online (AJOL)

    This study investigates the validity of Wagner's law and Keynesian hypothesis of the long-run relationship between government expenditure and economic growth in Tanzania using annual time series data from 1978 to 2014. The data series were tested for stationarity using Phillips-Perron unit root test and the results ...

  4. Monetary Development and Effects on Economic Growth in Nigeria ...

    African Journals Online (AJOL)

    The paper analyses monetary development and effects on economic growth in Nigeria for the period 1970-2008. The time series data used for the work were extracted from the central bank of Nigeria's statistical bulletin. The ultimate objective of the study is to determine the interdependency or directional causation of ...

  5. Road Sector Development and Economic Growth in Ethiopia ...

    African Journals Online (AJOL)

    The study attempts to see the trends, stock of achievements, and impact of road network on economic growth in Ethiopia. To do so, descriptive and econometric analyses are utilized. From the descriptive analysis, the findings indicate that the stock of road network is by now growing at an encouraging pace.

  6. Government expenditure, efficiency and economic growth: a panel ...

    African Journals Online (AJOL)

    This paper analyzes the impact of government expenditure and efficiency on economic growth of Sub Saharan African low income countries. The paper uses a panel data of 25 Sub-Saharan African low income countries spanning from 2002 – 2015 which are obtained from World Development Indicators (WDI) database.

  7. Bonding and Bridging Social Capital and Economic Growth

    NARCIS (Netherlands)

    Beugelsdijk, S.; Smulders, J.A.

    2009-01-01

    In this paper we develop a formal model of economic growth and two types of social capital. Following extant literature, we model social capital as participation in two types of social networks: first, closed networks of family and friends, and, second, open networks that bridge different

  8. Contribution of timber exports to economic growth in Nigeria: an ...

    African Journals Online (AJOL)

    The paper examined the contribution of timber exports to the economic growth in Nigeria, using an econometric approach. Augmented Dickey-Fuller (ADF) and Johansen Co-integration techniques were respectively used to test for unit root and examine the relationship between the variables used. In addition, Granger ...

  9. foreign direct investment and economic growth in developing ...

    African Journals Online (AJOL)

    Prof

    countries are still characterized by low per capita income, high unemployment rates as well as low and falling ... of long-run and short-run bi- directional causality between openness and economic growth. It also confirms the. International Journal of Development and Management Review (INJODEMAR) Vol. 11 June, 2016 ...

  10. Informal sector, business environment and economic growth: A ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Informal sector, business environment and economic growth: A comparative analysis of West and Central Africa. This project aims to improve the knowledge ... innovations to improve lives and livelihoods. Five world-class research teams are working to develop vaccines for neglected livestock diseases in the Global South.

  11. Inequality, Credit Market Imperfection, Segmentation and Economic Growth

    NARCIS (Netherlands)

    Zhu, D.

    2001-01-01

    This paper investigates how initial inequality can causally affect economic growth when moral hazard problems exist in credit markets.Two regimes of the credit markets aiming at overcoming the moral hazard problems are analyzed.The formal one such as bank relies on intermediary between borrowers and

  12. Does globalization contribute to economic growth in developing ...

    African Journals Online (AJOL)

    From the empirical results, the following empirical lessons were drawn from Nigeria: globalization does not contribute to economic growth in Nigeria, openness has a negative impact on the Nigerian economy, the Nigerian economy is still very fragile and ill prepared for the challenges of globalization, labour force as one of ...

  13. Inclusive growth and development: An IDRC-World Economic Forum ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Inclusive growth and development: An IDRC-World Economic Forum collaboration to promote innovative public-private-civil society partnerships ... This information will be incorporated into a practical, searchable, and digital knowledge bank of policy models and corporate or multi-stakeholder partnership practices.

  14. Natural disasters and economic growth: A meta-analysis

    NARCIS (Netherlands)

    Klomp, J.G.; Valckx, K.

    2014-01-01

    Using more than 750 estimates, we perform a meta-regression analysis of studies examining the relationship between economic growth per capita and natural disasters. The studies considered are very different with respect to the type of disasters considered, the sample of countries and time periods

  15. The impact of microfinance institution in economic growth of a ...

    African Journals Online (AJOL)

    The study seeks to examine the impact of microfinance institution on economic growth of a country, thus using Nigeria as a case study. The study employs the multiple regression analysis given that the data are cross-sectional and time series in nature. Secondary data of all commercial banks were extracted from the Central ...

  16. Inflation and Economic Growth: An Estimate of the Threshold Level ...

    African Journals Online (AJOL)

    This study investigated the relationship between inflation and economic growth in Nigeria, from 1970 to 2009. It adapted the Khan and Sendhadji's (2001) threshold regression technique to examine the existence of optimal inflation. The Granger causality test was utilised to test the causal relationship between inflation and ...

  17. Debt servicing and economic growth in Nigeria: an empirical ...

    African Journals Online (AJOL)

    In this study we reviewed and analyse the effect of external debt service payment practices on sustainable economic growth and development with particular emphasis on Nigeria. To achieve the objective of this research, we use debt payment to Multilateral Financial creditors, Paris club creditors, London club creditors, ...

  18. Higher education and economic growth: a conference report

    OpenAIRE

    Richard H. Mattoon

    2006-01-01

    The future of higher education and its relationship to economic growth were the focus of a one-day conference at the Federal Reserve Bank of Chicago on November 2, 2005. Cosponsored by the bank, the Committee on Institutional Cooperation, and the Midwestern Higher Education Compact, the event brought together over 100 academic, business, and government leaders.

  19. Testing for Long-Run Relation between Economic Growth and ...

    African Journals Online (AJOL)

    In the short run, the results revealed that the previous GDP has positive effect on current GDP; and higher export earnings of cocoa have positive effect on GDP. Feedback causality is observed between economic growth (GDP) and export earnings of cocoa. This suggests a bi-directional causality from export earnings to ...

  20. Testing for Long-Run Relation between Economic Growth and ...

    African Journals Online (AJOL)

    Michael O. Mensah

    2016-06-01

    Jun 1, 2016 ... In the short run, the results revealed that the previous GDP has positive effect on current GDP; and higher export earnings of cocoa have positive effect on GDP. Feedback causality is observed between economic growth (GDP) and export earnings of cocoa. This suggests a bi-directional causality from.

  1. An analysis of tourism contribution to economic growth in SADC ...

    African Journals Online (AJOL)

    The study how the tourism sector can be an engine of economic growth in SADC member countries. The paper found the contribution of tourism to GDP, employment, export receipts and investment is significant. Although this sector's contribution to the economy varies among. SADC countries, the the study found that ...

  2. Agricultural Trade and Economic Growth in East African Community

    African Journals Online (AJOL)

    Dr Kazungu

    populace depends on agriculture directly and indirectly for food, employment and income, ... Several bi-variate Vector Auto-Regressive (VAR) and Vector Error Correction .... a motivating factor of economic growth where the integrating states had ... separately to capture for the effect of the 2008/2009 financial global crisis.

  3. 1 University - SMEs Collaboration to Support the Economic Growth ...

    African Journals Online (AJOL)

    2015-03-05

    Mar 5, 2015 ... economic growth and employment in most countries around the world including the Small Island ..... Requirement to provide Advance Payment Guarantees will be considerably overhauled. .... used as a case study to design an automated system to solve a real problem. The first project deals with the design ...

  4. Growth and economic performance of Clarias gariepinus juveniles ...

    African Journals Online (AJOL)

    Clarias gariepinus was tested over 70 days to determine their growth, nutrient and economic performance. The 25% fishmeal component of the control diet was replaced with 5–15% raw or processed mucuna seed meal and the fish were fed twice daily at 5% of their average body weight per day. The diet containing 5% raw ...

  5. Financial Openness and Economic Growth in Nigeria: A Vector Error ...

    African Journals Online (AJOL)

    This paper tests the hypothesis that financial openness promotes economic growth. Theoretically and empirically, the results are mixed. The study used vector error correction modelling and to capture impact of financial openness, financial depth measured as ratio of broad money supply to gross domestic product was used ...

  6. Economic theories of the entrepreneur: A systematic review of the literature

    OpenAIRE

    Brown, Christopher Russell

    2007-01-01

    Economic theories of the entrepreneur have received more attention recently in the entrepreneurship literature. Different concepts and ideas are typically borrowed from various economists to create new, or expand upon existing, theories. This has created a somewhat fragmented literature, and I found no evidence of a previous systematic (or comprehensive literature) review of any economic theories of the entrepreneur. The many different economic theories of the entrepreneur over...

  7. STIMULATION OF ECONOMIC GROWTH IN ROMANIA BETWEEN REALITY AND DESIDERATE

    Directory of Open Access Journals (Sweden)

    DOBROTĂ GABRIELA

    2013-12-01

    Full Text Available Fragility of economical environment subject to a dynamic process of globalization in recent decades has been demonstrated abundantly, year 2007 representing an important point in terms of triggering the accentuated macroeconomic imbalances. The propagation of the financial crisis in the economic environment is clearly reflected by the contraction of the global economy after a long period of growth, the emphasizing of budget deficits, reducing wages, increase of unemployment. Romania was significantly affected by the global economic crisis, amid a long line of inadequate policies. The orientation excessive economic development through consumption and the unfavorable ratio between income and productivity are issues that have contributed significantly to the decline of the Romanian economy. Inadequate measures taken have worsened the effects of crisis: reducing foreign investment, increasing of trade deficit, reduction of living standards, decreasing the number of SMEs, worsening the institutional weaknesses etc. In this paper, are addressed aspects which highlights the effects of economic policy measures promoted in Romania after the transition to market economy, on stages, specifying measures necessary to ensure the functionality of coordination mechanisms, in order to register determinant impulses of economic growth.

  8. U.S. Government Supports Low Emission Economic Growth

    Energy Technology Data Exchange (ETDEWEB)

    2015-11-01

    Countries around the world face the challenge of maintaining long-term sustainable economic growth and development under the threat of climate change. By identifying and pursuing a sustainable development pathway now, they are better positioned to reach their economic growth goals while addressing climate change impacts and lowering greenhouse gas (GHG) emissions. Low emission development strategies - development plans that promote sustainable social and economic development while reducing long-term GHG emissions - provide a pathway to preparing for a global low emission future. Partner country governments are working with the U.S. government through the Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) program to further their national development objectives.

  9. Interaction between Financial Intermediation Efficiency and Economic Growth

    Directory of Open Access Journals (Sweden)

    Milka Grbic

    2016-12-01

    Full Text Available Financial intermediaries have the key role in making a connection between savings and investments. Given the fact that an efficient transfer of savings into investments is made more difficult by transaction and information costs, financial intermediaries are specialized in minimizing the said costs per unit of invested capital. They are also trained to identify productive and innovative investment endeavors which contribute to the growth of real output. Real output growth is the basis for increasing the financial potential, which creates the basis for the development of financial intermediaries. In connection with that, apart from the analysis of the relevant factors making the process of the mobilization and transfer of savings more difficult, the theoretical models that put an emphasis on the relationship between the efficiency of financial intermediation and economic growth are discussed in the paper. The research results are indicative of the fact that the improvement in financial intermediaries’ business doing enables faster economic growth. Simultaneously, the growth of the economic activity increases the scope of the business operations conducted by financial intermediaries. Thanks to the effects of the economies of scale that contribute to a reduction in transaction and information costs, the efficiency of financial intermediations grows.

  10. Economic Growth and Budget Constraints: EU Countries Panel Data Analysis

    Directory of Open Access Journals (Sweden)

    Zimčík Petr

    2016-06-01

    Full Text Available The aim of this paper is to identify the impacts of different taxes and expenditures on economic growth. The research is focused on 20 selected European Union Member States. These countries are equally divided into four groups based on their average tax burden as presented in the World Tax Index. A comparison of fiscal attributes among these groups is important for the analysis. Annual government finance data from the years 1995 to 2012 are used for an empirical study. The indicators observed are real GDP change, the composition and volume of total government expenditures, tax quotas of individual taxes and total budget balance. These indicators are used within an endogenous growth model together with capital stock and an approximation of human capital. A panel regression with fixed effects is used as an analytic tool. The main results are that an increase in social contributions, property, production and personal income tax quotas has an adverse effect on economic growth.

  11. Study on the China regional economic growth and energy consumption intensity difference convergence

    Science.gov (United States)

    Shang, Mei; Wu, Lu

    2017-04-01

    Based on theory of convergence, firstly, per-capita GDP difference convergence model of underdeveloped regions and developing regions compared with developed regions are established, then, convergence model of energy consumption intensity difference compared with per-capita GDP difference is built, from which, it is found that China's regional per-capita GDP growth shows convergence trend, and convergence rate of energy consumption intensity is slightly slower than the per-capita GDP. So, it is suggested that the local government should fully consider the convergence characteristics of regional energy consumption difference to guarantee not only economic growth but also energy saving and emission reduction in order to ensure sustained economic growth in the implementation of energy-saving emission reduction strategies.

  12. THE SUCCESS OF EMERGING CAPITAL MARKETS IN DETERMINING ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    Ion POHOAŢĂ

    2014-06-01

    Full Text Available Capital markets are regarded as “the barometer” of economic activity at the national level, but among emerging markets, the position of this segment in the economy is far from ideal. The answers that we try to offer are concerning the contribution of capital markets to the economic welfare of nations in transition from Central and Eastern Europe, using Granger causality tests. Our findings highlight that in this geographical area, the relation between capital markets and economic growth is a bidirectional one. However, although both the establishment of stock exchanges and their liberalization represented governments’ strategy of economic development, their objective was not fully achieved. Institutional transformations are required in order to attract foreign investors.

  13. RAINFALL FLUCTUATIONS AND ECONOMIC GROWTH: EVIDENCE FROM SENEGAL

    Directory of Open Access Journals (Sweden)

    François Joseph CABRAL

    2017-11-01

    Full Text Available In this paper, we simulate and evaluate the impact of extreme rainfall events on various sectors in the economy; factors of production remuneration and economic growth in Senegal. A dynamic general equilibrium model is developed which includes an index linking rainfall fluctuations to total productivity factor (TPF and factor market. Based on rainfall trends during the past three decades, we run simulations to assess the effects of rainfall values on GDP growth. The results show that extreme events in rainfall pattern deeply affect GDP growth in Senegal; sharp drops in rainfall lead to declining GDP and periods of abundant rainfalls are marked by better performance in term of GDP. However, rainfall drops lead to losses in GDP growth in comparison to gains in GDP growth due to rainfall surplus.

  14. The Study of Relationship and Strategy Between New Energy and Economic Development Based on Decoupling Theory

    Science.gov (United States)

    Liu, Jun; Xu, Hui; Liu, Yaping; Xu, Yang

    With the increasing pressure in energy conservation and emissions reduction, the new energy revolution in China is imminent. The implementation of electric energy substitution and cleaner alternatives is an important way to resolve the contradiction among economic growth, energy saving and emission reduction. This article demonstrates that China is in the second stage which energy consumption and GDP is increasing together with the reducing of energy consumption intensity based on the theory of decoupling. At the same time, new energy revolution needs to be realized through the increasing of the carbon productivity and the proportion of new energy.

  15. Models of Economic Growth and Development in the Context of ...

    African Journals Online (AJOL)

    and transformational development in Africa is heavy investment in human capital. ...... in human capital. Paul Romer's theory on endogenous growth approaches matters from this direction. In 'Endogenous Technological Change' (1990), ..... major incentive here would be the fact that the cost of labour in this instance.

  16. CAPITAL INTENSITY, OPENNESS, AND THE ECONOMIC GROWTH OF THE ASEAN 5

    Directory of Open Access Journals (Sweden)

    Ni Putu Wiwin Setyari

    2016-09-01

    Full Text Available One of the core elements of the neoclassical growth theory is that poor countries have low capital labor ratios but have higher marginal products of capital than the rich countries. This means the low income countries experience faster growth rates and become a reason for allowing capital, goods, and technology can move across countries. Assuming that the labor intensive countries have higher returns on capital, then investment will flows into those countries and encourage higher economic growth. However, in fact capital flows seems to go in the opposite direction. A country with abundant capital can expand its capital-intensive sectors and export their goods along with trade liberalization. Consequently, the returns to capital in its capital-intensive sectors rise and a greater demand for investment induces higher capital inflows from abroad. Those predictions push developing countries to change their labor intensive industrial structures and become more capital intensive, to encourage their economic growth. This paper examines how capital intensity and openness affect economic growth using data from the ASEAN 5 countries data. The issue of endogeneity and unobserved heterogeneity, as major problems in a data panel, are addressed by the fixed effect method and the Feasible General Least Square (FGLS. Capital flows appears to be the most important source of economic growth, whilst trade is found to have a limited role. The interaction between capital intensity and the openness indicator do not indicate significant effects. Generally, there is no evidence that the more outward-oriented countries with high levels of capital intensity experiences higher economic growth.

  17. SUSTAINABILITY OF ECONOMIC GROWTH AND INEQUALITY IN INCOMES DISTRIBUTION

    Directory of Open Access Journals (Sweden)

    Bogdan Ion Boldea

    2012-07-01

    Full Text Available The problem of inequality in incomes distribution is a present one, much discussed. Economic growth is considered an essential force to reduce the level of poverty by increasing the labor demand and finally the wages within the economy. But the extent to which poverty is reduced as a result of economic growth depends mostly on the initial inequalities in income and on how the distribution of income changes with economic growth. A lot of researches are focused on studying the evolution of inequality in incomes distribution and others have attempted to explore the relationship between income inequality and economic growth. There are also studies which try to identify the main factors which have impact on inequality in incomes distribution. The objective of this study is to put in discussion another possible factor that affects the variability on inequality of incomes distribution – economic growth variability. As background research, until now, we did not find any studies which are investigating this possible relation between inequality of incomes distribution and economic growth variability. To provide some empirical evidences for a positive impact of social output volatility on inequality of incomes’ distribution we are involving a small sample of 27 developing countries for an observation time span between 1995 and 2006. The values of the Gini coefficient reported in World Income Inequality Database are used as dependent variable. As a first step in testing our research hypothesis, we are involving a static panel data model with pooled ordinary least squares (OLS, fixed effects (FE and random effects (RE estimators. The F statistics tests the null hypothesis of same specific effects for all countries. If we accept the null hypothesis, we could use the OLS estimator. The Hausman test can decide which model is better: random effects (RE versus fixed effects (FE. The FE model was selected because it avoids the inconsistency due to

  18. Driving Economic Growth: Higher Education--A Core Strategic Asset to the UK. Higher Education in Focus: Driving Economic Growth

    Science.gov (United States)

    Universities UK, 2011

    2011-01-01

    This publication highlights the critical role UK universities will continue to play in reviving and sustaining economic growth across the country. Using a range of visual data and statistics, it highlights that the UK's future success depends on developing innovation and the knowledge economy in what is an increasingly competitive global…

  19. A thermodynamic theory of microbial growth

    Science.gov (United States)

    Desmond-Le Quéméner, Elie; Bouchez, Théodore

    2014-01-01

    Our ability to model the growth of microbes only relies on empirical laws, fundamentally restricting our understanding and predictive capacity in many environmental systems. In particular, the link between energy balances and growth dynamics is still not understood. Here we demonstrate a microbial growth equation relying on an explicit theoretical ground sustained by Boltzmann statistics, thus establishing a relationship between microbial growth rate and available energy. The validity of our equation was then questioned by analyzing the microbial isotopic fractionation phenomenon, which can be viewed as a kinetic consequence of the differences in energy contents of isotopic isomers used for growth. We illustrate how the associated theoretical predictions are actually consistent with recent experimental evidences. Our work links microbial population dynamics to the thermodynamic driving forces of the ecosystem, which opens the door to many biotechnological and ecological developments. PMID:24522260

  20. Neoclassical and Institutional Economics as Foundations for Human Resource Development Theory

    Science.gov (United States)

    Wang, Greg G.; Holton, Elwood F., III

    2005-01-01

    In an effort to more comprehensively understand economics as a foundation of human resource development (HRD), this article reviews economic theories and models pertinent to HRD research and theory building. By examining neoclassical and neoinstitutional schools of contemporary economics, especially the screening model and the internal labor…

  1. THE INFLUENCE OF GLOBALIZATION ON ECONOMIC GROWTH IN ROMANIA

    Directory of Open Access Journals (Sweden)

    PAUL BOGDAN ZAMFIR

    2015-12-01

    Full Text Available In this paper we propose to emphasize the structural changes involved by globalization process who generate a semnificative influence on the economic growth in Romania. Thus, on this background it is important to point out that even though the phenomenon of globalization represents manny opportunities for Romanian economic growth, nevertheles, our country must regard at the same time all the systemic risks that are involved in this process. From this perspective, an important role has the activity of romanian small and medium sized enterprises that through its specific creates jobs and contributes substantially to growth in Romania. In terms of risks, for our country is necessary to develop effective mechanisms of self-defense against involved economic dangers. Also, should not be ignored that the quality of European Union member offers for Romania a strong base and in the same time the chance to benefit from the positive effects of the single market and the opportunities offered by the global market. In this framework, Romanian economy is not exempted from stiff competition in the field of trade in goods and services from countries like China or India who succeed through competition, to "break down trade barriers" of economic blocs. More than that, Romanian high tech industry can take advantage for themselves from the positive effects of globalization process by penetrating on third country markets.

  2. Modelling the interaction between flooding events and economic growth

    Directory of Open Access Journals (Sweden)

    J. Grames

    2015-06-01

    Full Text Available Socio-hydrology describes the interaction between the socio-economy and water. Recent models analyze the interplay of community risk-coping culture, flooding damage and economic growth (Di Baldassarre et al., 2013; Viglione et al., 2014. These models descriptively explain the feedbacks between socio-economic development and natural disasters like floods. Contrary to these descriptive models, our approach develops an optimization model, where the intertemporal decision of an economic agent interacts with the hydrological system. In order to build this first economic growth model describing the interaction between the consumption and investment decisions of an economic agent and the occurrence of flooding events, we transform an existing descriptive stochastic model into an optimal deterministic model. The intermediate step is to formulate and simulate a descriptive deterministic model. We develop a periodic water function to approximate the former discrete stochastic time series of rainfall events. Due to the non-autonomous exogenous periodic rainfall function the long-term path of consumption and investment will be periodic.

  3. Models of rational decision making in contemporary economic theory

    Directory of Open Access Journals (Sweden)

    Krstić Bojan

    2015-01-01

    Full Text Available The aim of this paper is to show that the economists can not adequately explain the rational behavior if are focused only on the scientific observations from the model of full rationality and the model instrumental rationality, and the inclusion related model makes 'larger views', which like more reprezentative reflection of the rational behavior represents a solid basis for construction the model of decision-making in contemporary economic science. Taking into account the goal of the work and its specific character, we composed adequate structure of work. In the first part of the paper, we define the model of full rationality, its important characteristics. In the second part, we analyze the model of instrumental rationality. In the analysis of model, we start from the statement, which given in economic theory, that the rational actor uses the best means to achieve their objectives. In the third part, we consider of the basic of the models of value rationality. In the fourth part, we consider key characteristics of the model of bounded rationality. In the last part, we focuse on questioning the basic assumptions of the model of full rationality and the model of instrumental rationality. We especially analyze the personal and social goals preferences of high school students and university students.

  4. Tax Shift by Economic Functions and Its Effect on Economic Growth in the European Union

    Directory of Open Access Journals (Sweden)

    Irena Szarowská

    2015-01-01

    Full Text Available The aim of the paper is to examine effects of tax shift on economic growth and provide a direct empirical evidence in the European Union (EU. It is used the Eurostat’s definition to categorize tax burden by economic functions and implicit tax rates of consumption, labour and capital are investigated. First, paper summarizes main development of tax shift in a whole EU till 2014 and followed empirical analysis is based on annual panel data of 22 EU Member States in years 1995–2012 (time span is divided into a pre-crisis and a post-crisis period. Explanatory variables are not examined in individual regressions, but the study uses Generalized Method of Moments applied on dynamic panel data and estimations are based on Arellan-Bond estimator (1991. Results confirm positive and statistically significant impact of consumption taxes and weaker but negative effect of labour taxation on economic growth. In a post-crisis period, findings report raising labour taxes as the strongest and the only significant variable. It suggests that harmful effect of labour taxation is enlarging in a time of unfavorable economic conditions. A tax shift on capital taxation has negative but often statistically insignificant impact on economic growth.

  5. Economic growth and its determinants in countries in transitio

    Directory of Open Access Journals (Sweden)

    Kestrim Avdimetaj

    2015-11-01

    Full Text Available Main purpose of this scientific research is to analyze the countries in transition; in particular, through this research we will explain the economic growth and its determinants in the countries in transition. Referring to the fact that many ex-communist countries were faced with a transition from a socialist economic system into the economic system of free market, and this phase of transformation is also known as transition, we will analyze this phase in details. The materials contained in this research are based on data taken directly from Financial Institutions, European Central Bank, as well as many other relevant prestigious institutions of countries in transition. The first section of this research begins with the introduction, presenting broadly the economic growth in countries in transition and the manner of their transformation, as well as the identification of hypothesis contained in this research. The second section contains the review of the literature, where we have cited parts from many authors who conducted studies in this broadly and productive field. In the third section are explained the mathematical formulas, that specify the econometric model, as well as the method of assessment, i.e. multiple regression analysis. Then, through the calculations of STATA, we will substitute the values of variables obtained in formula and test them through the selected model. In the last section we will interpret the outcomes derived from calculations in the program, supporting or dismissing hypothesis presented in this scientific research. This scientific research is limited, because many other important variables impacting the economic growth, such as instruments of monetary and fiscal policy, economic freedom, etc., have not been incorporated.

  6. Impact of Globalisation On Economic Growth in Romania: An Empirical Analysis of Its Economic, Social and Political Dimensions

    Directory of Open Access Journals (Sweden)

    Olimpia Neagu

    2017-04-01

    Full Text Available The paper analyses the link between globalisation and economic growth in Romania for a time span of 24 years. Data from World Bank were used in an econometrical model in order to highlight the impact of globalisation, expressed by the KOF globalisation index and its components (economic, social and political globalisation indices on economic growth rate. A statistical strong and positive link is found between GDP per capita dynamics and overall globalisation index as well as between GDP growth rate and economic and political globalisation, except the social dimension of globalisation which has a negative impact on economic growth in Romania for the time span 1990-2013.

  7. Financial deepening and economic growth in nigeria (1981-2012: A managerial economic perspective

    Directory of Open Access Journals (Sweden)

    Anthony Igwe

    2014-12-01

    Full Text Available The objective of this study is to determine the impact of financial deepening on economic growth in Nigeria. The supply leading hypothesis was adopted as the theoretical framework of the study. Data for analysis was for the period 1981-2012 obtained from the Central Bank of Nigeria Statistical Bulletin. The explanatory variables were logged values of broad money supply/GDP and Credit to the private sector/GDP. The times series data were tested for stationarity using the ADF unit root tests of stationarity and were found to be stationary at first difference. The Engle-Granger Cointegration technique and Error correction model were used for the test of long run relationship. Findings reveal that money supply (MS is positive and weakly significant in determining economic growth. However, credit to the private sector was negative and not significant in the short run. The speed of adjustment of the ECM is 25.51%. This implies that if there are short run fluctuations, GDP will converge to its long run equilibrium path at a speed of about 25.51% in each period .The conclusion is that financial deepening does not have the desired impact on economic growth in Nigeria. Hence, there is a need for increase and improvement in access to private credit to enhance economic growth and investment

  8. Achieving inclusive economic growth and development in Nigeria through MSMEs

    Directory of Open Access Journals (Sweden)

    Ezekiel Oseni

    2015-08-01

    Full Text Available The Nigerian economy has witnessed consistent average annual growth rate of 7.4% in the last few years, however, the impact of the growth on the citizenry remains insignificant while poverty, youth restlessness, kidnapping for ransoms, terrorism and other vices are on the rise. The objective of the study was to examine why the impact of the economic growth over the years has remained insignificant and what interventions are required to change the tide. The study discovered that the oil sector which is not labour intensive accounts for over eighty (80 percent of Government revenue and a major contributor to the nation GDP. The study also discovered that the poverty level and unemployment rate among the populace require urgent and drastic measures. The impactful measures will require creation of enabling environment, provision of relevant infrastructure and adequate funding programmes that can be easily accessed. The financial system like in any other economy is essential to attaining inclusive economic growth in Nigeria and it should be more supportive to the economy by abolishing existing lending conditions that make it impractically impossible for many MSMEs which are the engine of economic development to access funds.

  9. Burkina Faso - Promoting Growth, Competitiveness and Diversification : Country Economic Memorandum, Volume 3. Enhancing Growth Factors

    OpenAIRE

    World Bank

    2010-01-01

    The main conclusion of Country Economic Memorandum is that the previous model of extensive growth has now exhausted its potential and must be renewed. Given the existing population dynamics, low environmental tolerance due to its Sahelian climate and competition forces imposed due to its open economy, Burkina Faso is heavily investing in growth based on increased productivity to overcome i...

  10. ENVIRONMENTAL ASPECTS OF "GREEN ECONOMY" RUSSIA'S ECONOMIC GROWTH

    Directory of Open Access Journals (Sweden)

    R. N. Botavina

    2016-01-01

    Full Text Available The article tells the story of the emergence of "green" economy, as opposed to the traditional "brown" ekonomike, given its concept shown shortcomings of the existing definitions of "green" economy, conclusions about the real possibilities of the transition to the growth of "green" economy. The relevance of this work lies in the fact that the changing paradigm of understanding the basis and essence of sustainable development of the national socio-economic systems necessitates the integration of economic and environmental solutions, this integration is seen as part of the concept of "green economy".The approach of this article is based on an interdisciplinary concept of quality management in relation to the specifics of functioning and development of the domestic socio-economic systems.The purpose / goal. The purpose of this article, and its main task is to systematize the areas of environmentally oriented development of economic entities, as well as the determination of the list of key provisions of environmental policy, which will provide further socio-economic development of Russia in line with the green economy. As a result, Russia as one of the great powers of the world will find a stable geopolitical situation.Methodology. The methodological basis of this article are comparative, economic and statistical analysis methods.Results. This article suggests some solutions to be included in the national environmental policy as a major incentive for the further transition to a green economy.Conclusions: The material contained in this article show the special role of the concept of "green economy" in the social and economic processes in the development of Russia's geo-economic stability. The above article aspects of the further development of the green economy in Russia can complement scientific and practical base solutions that provide active creation, implementation and use of green technologies to provide environmentally responsible sustainable

  11. Tuberculosis remains a challenge despite economic growth in Panama.

    Science.gov (United States)

    Tarajia, M; Goodridge, A

    2014-03-01

    Tuberculosis (TB) is a disease associated with inequality, and wise investment of economic resources is considered critical to its control. Panama has recently secured its status as an upper-middle-income country with robust economic growth. However, the prioritisation of resources for TB control remains a major challenge. In this article, we highlight areas that urgently require action to effectively reduce TB burden to minimal levels. Our conclusions suggest the need for fund allocation and a multidisciplinary approach to ensure prompt laboratory diagnosis, treatment assurance and workforce reinforcement, complemented by applied and operational research, development and innovation.

  12. World Mineral resources and the Limits to Economic Growth

    Directory of Open Access Journals (Sweden)

    Bardi Ugo

    2014-03-01

    Full Text Available This presentation describes how the present economic situation can be described in terms of the system dynamics models developed in the series of studies that were titled “The Limits to Growth”. The result of this examination is that mineral depletion may be a major factor in causing the slowdown in economic growth in several countries. The effect is not the result of “running out” of any resource, but of the gradual increase in extraction costs which is forcing the economy to dedicate larger and larger resources to the production of mineral commodities.

  13. A theory of planning horizons (2: the foundation for an ethical economics

    Directory of Open Access Journals (Sweden)

    Frederic B. Jennings Jr.

    2012-11-01

    Full Text Available The concept of planning horizons serves as a measure of many unsettled aspects of economic analysis. First and foremost, the notion is ordinal: we speak of ‘horizon effects’ as directional shifts in planning horizons without tallying ‘wits’ or calibrating horizonal axes of change. Second, the derivation of horizon effects is inductive; we simply assert their inherence in the range of factors subsumed within the imagined projections behind all choice. The planning horizon is set wherever surprise supplants expectation; the horizon occurs at the outer range of accurate anticipation, to which we lack clear epistemological access. Planning horizons – horizon effects – suggest a new foundation for an ethical economics of conscience, social maturation and growth. The idea of planning horizons invites a distinction of foresight from myopia in economic constructions. But time horizons are only one aspect of our planning horizons: to see ahead in time we must embrace all relevant causal effects. Foresight depends on knowledge of how reality actually works, which is a matter more of degree than ‘truth’; the planning horizon offers an index of our ‘rational bounds.’ Our range of anticipation is also related to our internalization of social and ecological externalities in our decisions, so to the scope of our ethical conscience and to our sense of human community. Indeed, the organizational health and integrity of our society is horizonal in this sense. The aim of this paper is to explore and develop the concept of planning horizons in its intellectual origins and economic concerns. Its philosophic conceptual roots, methodological underpinnings, psychological insights and economic implications are outlined to show why an economics of planning horizons offers an ethical economics of interdependent dynamic complex systems. With standard doctrines seen as a special case in a larger horizonal frame, social theory embraces an ethical

  14. The Link Between Economic Growth, Crime and Deterrence Measures in Nigeria

    Directory of Open Access Journals (Sweden)

    Adekoya Adenuga Fabian

    2016-11-01

    Full Text Available The level of crime in Nigeria has become devastating and in order to put more sanity into the economy and the country at large, the Government has embarked on different deterrence measures in curbing crime. Thus, this study examined the interaction of deterrence measures with crime in order to see how economic growth was affected when they were used in curbing crime at different instances. That is, the interaction of deterrence measures with crime informed us how they have helped in lowering crime in Nigeria for a better economic growth to subsist. The deterrence measures considered in this work are in line with the rational choice theory being the cost of crime imposed on the society. Furthermore, this study considered data from 1975 to 2013 with the use of autoregressive distributed lag model. Moreover, the results showed that crime dependency on deterrence measures asymmetrically constituted means of lowering economic growth in the country. Hence, this study suggested that prosecution should be well funded and in order to curb crime and improve economic growth in Nigeria. That is, this would afford the country to reduce the congestion of prison inmates and thus, it would discourage long waiting trials.

  15. On the Need for New Procedures for Analysing the Interrelationships between Social Inequalities, Human Capital and Economic Growth

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    Michał Gabriel Woźniak

    2012-01-01

    Full Text Available The paper presents conclusions from review of empirical researches within the theory of endogenic growth. They concern correlation between synthetic measures of economic growth, human capital and social inequality. Basing on critical analysis of the results a new research procedure of the correlation was proposed. It is based on disaggregation of inequality into groups of the frustrating and the activating ones. Basing on the own research results that used the new procedure there was indicated the necessity to search for the measures of inequalities that strengthen economic growth and economic effectiveness as well as the inequalities that decrease economic growth. The necessity to rebuild the statistical datas to measure social inequality was also stresse.

  16. Pollution and economic growth in a model of overlapping generations

    Energy Technology Data Exchange (ETDEWEB)

    Fisher, Eric O`N. [Department of Economics, The Ohio State University, Columbus, OH (United States); Van Marrewijk, Charles [Department of Economics, Erasmus University, Rotterdam (Netherlands)

    1994-01-22

    We analyze a model of overlapping generations in which clean air, a pure public consumption good, is used as a private input into production. Although production exhibits constant returns to scale, endogenous growth can occur because the economy has tWO sectors. In a laissez-faire equilibrium, there is no market for pollution rights, and firms appropriate clean air in an arbitrary manner. Growth occurs only if the marginal propensity to save is high enough and the asymptotic share of pollution in the investment sector is zero. Firms generate quasi-rents that are the value of pollution rights. These quasi-rents crowd out investment and slow economic growth. A laissez- faire equilibrium may not support Pareto optimal allocations, but a Pigouvian tax with lump-sum distribution of the resulting revenues does. Hence, a pollution lax yields a double dividend because it can increase both the static efficiency of the economy and its growth rate. 1 fig., 20 refs.

  17. New evidence of the health status and economic growth relationship

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    Monterubbianesi Pablo Daniel

    2017-01-01

    Full Text Available Over the last two decades, the role of health as a determinant of growth has been gaining ground in economic analysis due to longer average life expectancy at birth or lower infant mortality experienced in developing and fast-growing emerging economies. The empirical approach to this problem, based primarily on econometric analysis, has focused on two alternative approaches; the growth accounting models and the “a la Barro” regressions. This study aims to measure the contribution of health to economic growth using a panel of 91 countries over the period 1960-2005, and to compare the estimated impact of better health status on long-run per capita income under those two approaches, controlling for potential endogeneity. Our main results show the marginal effect of the change in health status in the long-term income lies between 2.6% in the growth accounting models and 8.3% in the “a la Barro” regressions. These results are consistent with the marginal effects we simulate and quantify using the health-growth point estimates found in earlier literature.

  18. Economic Growth and the Evolution of Material Cycles

    DEFF Research Database (Denmark)

    Zhang, Chao; Chen, Wei Qiang; Liu, Gang

    2017-01-01

    Understanding the relationship between material cycles and economic growth is essential for relieving environmental pressures associated with material extraction, production, and consumption. We developed an integrated analytical framework of dematerialization analysis incorporating both material...... flow and stock indicators. A four-quadrant diagram is designed to classify different stages of dematerialization based on the elasticity of material flow/stock to economic output or well-being. We then conducted a case study on the long-term evolution of aluminum cycle in the U.S., and found...... that different material flow and stock indicators decoupled from gross domestic product (GDP) growth in a clear sequential pattern. Flows closer to the beginning of the aluminum cycle (e.g., primary aluminum production) decoupled from GDP earlier than flows closer to the final consumption stage (e...

  19. FDI, Economic Growth, Energy Consumption & Environmental Nexus in Bangladesh

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    Sandip SARKER

    2016-04-01

    Full Text Available This paper attempts to investigate the relationship among economic growth, energy consumption, CO2 emission, FDI and natural gas usage in Bangladesh through co-integration and Vector Error Correction model (VECM over the period 1978 to 2010. Using ADP unit root tests it is found that all the four variables are integrated in first difference. The Johansen co-integration tests indicate that there is existence of long-run relationship among the variables. The VECM long run causality model indicates that there is a long run causality running from energy consumption and natural gas usage by industrial sector to GDP as well as from CO2 emission to FDI. Likewise in the short run a causal relationships have also been found among the variables. Moreover our model is found be error free based on several statistical test. Our results provide important policy suggestions regarding our foreign direct investment, environmental issues and economic growth nexus in Bangladesh.

  20. ECONOMIC GROWTH, EXPORTS AND TECHNOLOGY: THE PARANAENSE CASE

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    Eduarda Machoski

    2016-05-01

    Full Text Available This study aimed to investigate the relationship between the structure of Paraná's export basket and the economic growth of the State. To do that, we collected data concerning of Paraná exports for the period of 1989-2010 (Aliceweb website, classifying them into technological levels according to the methodology used by Furtado and Carvalho (2005. Furthermore, rates of diversification, Revealed Comparative Advantage and Lawrence were calculated, in order to analyze the behavior of the State's exports over time. In the last part of this work, was estimated an econometric model (VAR to analyze the relationship between the composition of exports and the economic growth of Paraná.