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The relationship between foreign aid and economic growth has been the subject of much controversy. A recent theme suggesting that aid promotes growth, but only in a good policy environment has ratchet up that debate. In this paper, we assess the importance of policy and aid in generating growth when the aid, policy, and growth relationship is nonlinear. This allows us to examine the varying effects of aid and policy in different data segments, which we do without imposing any particular structure on the underlying relationship. We find that policy is an important determinant of growth. We also find partial corroboration of the view that aid is growth enhancing in a good policy environment, and some evidence of diminishing returns to aid. These findings suggest that nonlinearities if not appropriately addressed fail to capture the detailed underlying dynamics and thereby mask some key features of the aid-policy-growth relationship. [ABSTRACT FROM AUTHOR]

The paper presents a general equilibrium model of a developing economy with a capital intensive formal sector and a large informal sector with sector-specific capital to analyse the effects of investments on the sectoral returns to capital, sectoral wage rates, and composition of output and employment. Beginning with capital market disequilibrium (unequal sectoral rates of return) and labour market distortion (formal-informal wage gap), the model traces the evolution of the economy till capital market equilibrium is attained. The investments in the formal sector equalise the wages (a 'turning point' in growth à la Lewis) and reduces the size of the informal sector. The sectoral rates of returns equalise only if there is no factor intensity reversal, otherwise the economy specialises in the production of formal goods. The investments in the informal sector equalise the rates of return, do not affect the size of the formal sector and finally, a formal-informal wage gap persists provided factor intensities are not reversed. [ABSTRACT FROM AUTHOR]

This paper focuses on the practical approach to sustainable development in Bhutan and specifically on public views on and experiences with the implementation of this strategy. Bhutan's development goal is ‘gross national happiness’. The strategy it has adopted to achieve this goal is known as the ‘middle path strategy’, which essentially addresses four sources (‘pillars’) of gross national happiness: economic development, ecological preservation, cultural preservation and good governance, without giving greater emphasis to any one pillar over the others. The paper is based on a survey conducted in 10 districts of Bhutan. Standard pre-designed questionnaires were used for interviews with representatives of three main groups in society: the state, civil society and the market. The results of this survey, the first of its kind to be carried out in the country, revealed that there is general agreement with the substance of the development strategy, although not everyone is fully aware of its scope and implications. A remarkable outcome of the survey, and one that contrasts with happiness studies conducted elsewhere in the world, was the high score for happiness in a country whose gross domestic product is so small. However, people do feel uncertain and the chosen development path is still fragile. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

A major feature of the current 'mass migration' process is its strong linkages to countries of origin. Migrants belong to spatially extended families and play a crucial role in shaping economic development in home regions. This paper reviews the wide-ranging socio-economic literature on the nexus between labor migration, both domestic and international, and economic development at origin, with a special focus on out-migration from poor rural regions of developing countries. We disentangle direct effects on migrant-sending households from spillover effects on the rest of the economy, highlighting some key knowledge gaps and policy concerns related to the complex and intimate relation between rural labour mobility and economic behaviour of people left behind. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper reviews available data sources for the study of migration and development through both retrospective and continuous data collection systems. It is argued that much basic data already exists for the study of international migration but that the addition of a relatively small number of simple, although not necessarily cheap measures can be taken to improve existing data. The priority is to generate flow data between countries for recent time periods and the paper makes suggestions how this can be best achieved. The paper goes on to an assessment of the types and availability of data needed to understand better the relationships between migration and development more broadly. Data at several scales, macro and micro, and for a variety of types of migration will be required in order to achieve this objective, particularly if less visible flows, such as those internal to developing countries, or those involving women, are to be better understood. The paper concludes by moving beyond the traditional state-led data-gathering systems to examine the potential for civil society organizations to help in strengthening data and research on migration and development. [ABSTRACT FROM AUTHOR]

The scope of the paper is limited by focusing on developing countries in the context of the world economy. We mostly consider the effects of globalization on income levels and a country's rate of economic growth. This focus is supported by studies (Ravallion; Bourguignon) that find that the level of income and expenditures across a continuum of household income categories is positively associated with economic growth, although wealthy households may benefit more than those with lower income. [ABSTRACT FROM AUTHOR]

Effective relations between states and business have been increasingly identified as an important institution for sustaining economic development. This paper constructs quantitative indices measuring the quality of state-business relations (SBRs) across Indian states in the 1985-2008 period. It represents the first effort to systematically characterise SBRs across sub-national units within a country without resorting to subjective surveys. We discuss the possible sensitivity of the indices to minor and major definitional changes and examine the evolution of SBRs across Indian states and at the national level through the study of cross-sectional and secular trends in these indices. The results suggest that SBRs have improved over time in all states barring Bihar. Rankings of states in terms of the SBR index show varying time trends-stable and high ranks for states like Andhra Pradesh, Karnataka, and Tamil Nadu, stable and low ranks for states like Uttar Pradesh and West Bengal, rapidly improving ranks for states like Haryana, Punjab and Rajasthan and swift deterioration in ranks for states like Bihar and Madhya Pradesh. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper models the allocation of bilateral foreign development aid to developing countries. A simple theoretical framework is developed, in which aid is treated as a private good of a donor country bureaucratic group responsible for bilateral aid allocation. This model is applied to time series data for ten principal recipients of bilateral official development assistance. Features of this application are that it caters for the joint determination of aid allocations and for donor allocation behavior to differ among individual recipient countries. Results indicate that both recipient need and donor interest variables determine the amount of foreign aid to developing countries, and that donor allocation behavior often differs markedly among recipients. [ABSTRACT FROM AUTHOR]

A key goal of renewable resource managers in developing countries is to take actions to ensure that the resource being managed stays away from irreversible or crisis states, in which it provides neither consumptive nor non-consumptive services to humans. However, despite a manager's best efforts, the resource may still hit a crisis state. Therefore, given a particular management regime, it is useful to know how long it takes until the resource hits a crisis state. In this paper, the authors provide a theoretical analysis of this hitherto unstudied question. They first probabilistically delineate two management regimes. Next, they compute the expected time until crisis for both these regimes. Finally, they provide a numerical example to illustrate the working of their model and then discuss the implications of their findings for renewable resource management in developing countries. [ABSTRACT FROM AUTHOR]

This paper studies the interactions between uncertainty, investment and economic growth. Utilizing panel data for a sample of 59 industrial and developing countries between 1966 and 1992, we estimate reduced form equations to explore the possible effects of uncertainty on economic growth and investments. Uncertainty reduces both investment and growth. [ABSTRACT FROM AUTHOR]

Many of the problems of privatization in developing countries result from the lack of information about the situation of the economy and from the lack of determination on their path of privatization. This paper addresses the lack of information by presenting a theory of incomplete privatization contracts. It then turns to the lack of determination, dealing with particular problems of partially privatized firms and, finally, postulating an elaborate system of price regulation of privatized monopolies, which typically is missing in developing countries. [ABSTRACT FROM AUTHOR]

The paper endeavours to sketch out the main implications of so-called 'new growth theory' for the study of economic development. New growth theory endogenizes the sources of growth by attributing growth in production to externalities created by investments in human capital and in technology; some versions also introduce policy variables. The empirical evidence on determinants of growth is reviewed. The new growth theories caution against excessive protection of intellectual property rights, but suggest that in an environment of wide and growing information asymmetries between developed and developing countries, some restrictions to free trade may be justified. In addition, autonomous increases in real wages may have a positive and permanent effect on real per capita income, echoing a conclusion of the 'under-consumptionist' literature. [ABSTRACT FROM AUTHOR]

Recent work suggests that financial development is important for economic growth, since financial markets more effectively allocate capital to firms with high value projects. For firms in poorly developed financial markets, implicit borrowing in the form of trade credit may provide an alternative source of funds. We show that industries with higher dependence on trade credit financing exhibit higher rates of growth in countries with weaker financial institutions. Furthermore, consistent with barriers to trade credit access among young firms, we show that most of the effect that we report comes from growth in the size of preexisting firms. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper explores how the optimal mode of public finance depends on the level of economic development. The theoretical analysis suggests that in the presence of capital market imperfection and liquidity shocks, the detrimental effect of inflation on growth is stronger (weaker) at lower (higher) levels of economic development. Consequently, income taxation (seigniorage) is a relatively less distortionary way of financing public expenditure for low-income (high-income) countries. We provide empirical support for our model’s predictions using a panel of 21 Organization for Economic Cooperation and Development countries and 40 developing countries observed over the period 1972–1999. ( JEL E44, E6, H6, O42) [ABSTRACT FROM AUTHOR]

This paper addresses the question of how business organizations, civil society organizations and government agencies can engage one another for ‘boundary-spanning’ dialogue and develop mutually beneficial ‘working partnerships’ in resolving the challenges of sustainable development. Over the past decade the concept of sustainable development has expanded to include the simultaneous consideration of economic growth, environmental protection and social equity in business and decision making. An increasing number of businesses have responded by engaging in corporate citizenship programmes to promote sustainable development. Strategic partnerships between civil society organizations and businesses are widely promoted as important new strategies, which will bring significant sustainable development benefits especially to developing countries. This interaction arises from an understanding of the need for comprehensive and integrated approaches to business, environmental and social issues that involve increasingly broader participation. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

This paper summarises the findings from a major international research project on the poverty impacts of a potential Doha Development Agenda. It draws on an intensive analysis of the DDA Framework Agreement and associated scenarios. The implications for world markets are established using a global modelling framework, the outputs of which form the basis for a dozen country case studies of the national poverty impacts of the DDA scenarios. Liberalisation targets under the DDA have to be quite ambitious if the round is to have a measurable impact on poverty. We expect the near-term poverty impacts to be mixed; some countries experience small poverty increases and others more substantial poverty declines. On balance, poverty is reduced under the core DDA scenario, and this reduction is more pronounced in the longer run. Deeper cuts in developing country tariffs are found to make the DDA more poverty friendly. It is also clear that, in order to generate significant poverty reductions in the near term, complementary domestic reforms are required to enable households to take advantage of the new market opportunities. Over the long run, sustained poverty reduction depends on stimulating economic growth, which suggests that trade reforms must go beyond tariffs and subsidies, also addressing barriers to services trade and investment. [ABSTRACT FROM AUTHOR]

This article presents abstracts of articles related to economic growth. The remarkable increase in FDI flows to developing countries over the last decade has focused attention on whether this source of financing enhances overall economic growth. We use a mixed fixed and random (MFR) panel data estimation method to allow for cross country heterogeneity in the causal relationship between FDI and growth and contrast our findings with those from traditional approaches. Quarterly estimates of consumption, capital and labour tax rates are provided for six major OECD countries. We then use the `stylized facts' methodology to evaluate the strength, sign and phase of cyclical comovements between tax rates and labour market variables. Estimates based on couples with dependent children in the first eight years of the British Household Panel Study (1991-98) indicate that changes in a couple's economic circumstances affect the probability that a partnership dissolves. In particular, unexpected improvements in finances substantially reduce the dissolution risk, which strongly supports the importance of new information in decisions concerning partnership dissolution.

Lists abstracts of journal articles published in the November 1998 issue of the periodical 'Asian-Pacific Economic Literature.' Learning-by-doing and trade policy in a developing economy; Rise of industrial Asia and its implications for the developing world; Geopolitics, global production and three paths of development in East Asia; Dutch disease and policy adjustments to the oil boom.

The purpose of this paper is to model the role of trade dependency in determining the access of a developing economy to the international credit market, and its desirable growth strategy. With full integration of capital markets, the choice with respect to the inwardness of a technology is irrelevant; investment will be channeled to the more productive sectors, independently of their trade inwardness. With limited capital market integration, a given investment will generate two effects. The first is the standard, direct productivity effect that is associated with the change in future output. The second is the trade dependency externality, generated by the change in future bargaining outcomes arising from the change in the trade dependency of the nation. With partial integration, investment that increases trade dependency is desirable. If the credit markets are disjoint owing to partial defaults, greater trade dependency is disadvantageous. Thus, greater trade dependency generates a positive externality with partial integration of capital markets, and a negative externality with disjoint credit markets. We show that credit market integration is determined by the size of the indebtedness relative to the trade dependency, as reflected by the repayment burden that is supported by the bargaining outcome. The repayment bargaining outcome is determined by the sectoral composition of the economy and by the effective size of the developing and the developed economies. [ABSTRACT FROM AUTHOR]

This paper examines selected demographic characteristics of countries at different stages of economic development On one hand, the data show that the demographic status of underdeveloped countries continues to be substantially more primitive than that of more economically advanced nations. On the other hand, there is evidence to suggest that some of the traditionally observed relationships (such as the inverse relationship between economic development and the rate of population growth) may not be as pronounced as was the case earlier in the present century. Since the various characteristics that differentiate underdeveloped areas from the rest of the world are closely related to the forces and circumstances which handicap their economic development, these findings may be taken as indicative of a real need for a continuous reexamination of the nature of the characteristic features of underdeveloped areas. [ABSTRACT FROM AUTHOR]

Abstract: This article presents a synopsis of the contextual conditions, factors and challenges under which the recent evolution of tax systems has taken place, as an introduction to this United Nations University‐World Institute for Development Economics Research Special Issue. The article, as the studies in this collection, gives especial emphasis to the role natural endowments, political economy, social structure and history, and the interplay between politics and tax revenues. These are relevant issues, considering that the Millennium Development Goals and now the Sustainable Development Goals have placed fiscal policy, and tax policy and revenue mobilisation in particular, at the centre of national and international development efforts. Delivering on the Sustainable Development Goals will require a level of state revenue mobilisation capacity in many ways unprecedented in the history of development policy. © 2018 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

A large literature exists on the relationship between financial development and economic growth. However, the role of government and public banks in building this relationship has remained contentious. In a sub‐national level analysis in the Indian context, we raise the question: What is the relative impact of public banks in economic growth in the lagging regions vis‐à‐vis leading regions? Do they matter more than private and foreign banks? To address these problems, we apply a dynamic generalized method of moments panel estimation to an unbalanced panel dataset drawn from 25 Indian states covering the period 1996/97 to 2008/09. Although our study focuses on the Indian context, it is relevant to developing countries for two main reasons: government ownership of banks is prevalent in developing countries; and in many large countries with a federation set‐up inter‐state differences may exist with multiple ownership of the financial sector. [ABSTRACT FROM AUTHOR]

ABSTRACT This article considers current proposals for using electronic payments systems to promote financial inclusion - that is, to widen the availability of financial and monetary services in developing countries. While such systems can generate significant savings in the operation of monetary systems, payment services markets are typically uncompetitive and require regulatory and broader state interventions to ensure those savings are widely distributed. The use of those systems to broaden the reach of for-profit lenders raises a number of concerns, as a growing literature has documented how microcredit initiatives in developing countries have resulted primarily in expansions in consumption credit to households, often under predatory terms. The authors advance two original arguments in this connection. First, the perverse results of many microcredit initiatives reflect the underdevelopment of the areas concerned: without broader development strategies, potentially transformative productive projects are rare and unprofitable to finance. In contrast, widespread unmet consumption needs ensure consumption credit offers lenders a profitable alternative business orientation. Second, and in light of this, electronic payments platforms can contribute to economic development by enabling the establishment of well-regulated or public systems of electronic 'narrow banks' restricted from lending, but capable of widening access to affordable payments, savings and insurance services. [ABSTRACT FROM AUTHOR]

Around the world, public-private partnerships have become increasingly popular to deliver large-scale transportation infrastructure projects such as roads, bridges, railways, subways, seaports and airports. The aim of this article is to provide a framework to understand the global geography of projects built through this market-driven procurement model, which have been predominantly concentrated in a small number of developed countries and emerging markets. As is shown, within many countries, a governance and regulatory environment has been established that supports public-private partnerships over other alternative procurement approaches. Nevertheless, the production of public-private partnerships worldwide has been dominated by a relatively small number of highly globalized construction contractors, engineering firms, financiers, accountancies and consultants from developed countries, who have focused their activities in a narrow set of regions. The article concludes by reflecting on the implications of the high level of industry concentration, and emerging trends showing greater involvement from firms from developing countries. Resumé À travers le monde, les partenariats public-privé sont de plus en plus utilisés pour les projets d'infrastructure de transports de grande envergure, tels que routes, ponts, voies ferrées, métros, ports et aéroports. Cet article définit un cadre permettant de comprendre la géographie planétaire des projets bâtis selon ce modèle orienté par le marché, projets concentrés dans un petit nombre de pays développés et émergents. Les régimes de gouvernance et la réglementation mis en place dans de nombreux pays favorisent les partenariats public-privé au détriment d'autres approches de réalisation de projets. Néanmoins, la production de ces partenariats dans le monde a été dominée par un nombre relativement réduit d'entreprises de bâtiment et d'ingénierie, de bailleurs de fonds, de cabinets de comptabilité et de conseils, acteurs installés dans des pays développés et dont les activités internationalisées s'exercent sur un ensemble restreint de régions. La conclusion aborde les conséquences d'une forte concentration industrielle et l'apparition d'une implication croissante des entreprises des pays en développement. [ABSTRACT FROM AUTHOR]

Taxing agriculture to mobilize resources for industrialization has been a widely used development strategy. Using novel cross-country time-series data sets with direct measures of agricultural taxation, we examine how a policy bias against agriculture affects the speed of convergence in income per capita, structural change, and economic growth. We find that distortionary agricultural policies in poor economies can account for the emergence of convergence clubs in our sample by significantly retarding their structural transformation and economic growth. Overall, we find no evidence suggesting that policies that discriminate against agriculture have been beneficial for long-term economic growth. [ABSTRACT FROM AUTHOR]

The author reflects on non-governmental organizations (NGOs) and development. The author states that NGOs advance development activities in poor countries however, most of them engage in political activism which influences political events that affect local people and disrupt economic development. The author suggests ending direct support for NGOs and restricting indirect support to address the issue.

Reserves and sovereign wealth funds (SWFs) assets should be jointly considered for the assessment of global imbalances, hence their denomination as sovereign external assets (SEAs): both are public capital outflows from developing to developed countries, both hinder adjustment in current account surplus and deficit countries and, therefore, both contribute to sustain global imbalances. They represented 135 per cent and 50 per cent of net and gross US financing needs, respectively, in 2007. Reserves contribute 80 per cent and SWFs 20 per cent. They will go on providing resilience to the global imbalances, and the relative importance of SWFs is set to increase if commodity prices stay high. [ABSTRACT FROM AUTHOR]

A great deal of the current research into nineteenth- and twentieth-century globalisation has been focused through a neoclassical trade theory lens. Applying the Stopler-Samuelson paradigm from Heckscher-Ohlin trade theory, the result is an approach that sees price convergence as pivotal in defining, identifying, and measuring globalisation. This focus, however, obscures the implications of frontier incorporation and other insights achieved by viewing nineteenth-century globalisation as a mechanism whereby peripheral economies were incorporated into the core of organised economic activity. A frontier-centred perspective also reintroduces the role of economic institutions as a crucial element of economic growth and development. [ABSTRACT FROM AUTHOR]

Erosion of trade preferences currently being enjoyed by the least developed countries (LDCs) and some developing countries remains an important area in the ongoing trade negotiations. The different positions regarding the preference erosion question besides being informed by political economy considerations are also founded on empirical results of this particular question. But does the methodology used for the empirical analysis matter? In this article, the importance of preference erosion due to MFN liberalization on agriculture is analyzed. Drawing from the potential complementary strengths in triangulation, the article uses both partial and general equilibrium analyses. The article shows that the ranking of preference erosion as an issue of policy concern is influenced by the empirical methodology adopted. However, irrespective of the rank, the article concludes that preference erosion is an important issue not only in terms of welfare, but also as it has impacts on incomes for preference-receiving countries. [ABSTRACT FROM AUTHOR]

The article profiles Philip G. Pardey, a Fellow of the American Agricultural Economics Association in 2006. Pardey's various affiliations are presented. He is a professor of the Department of Applied Economics at the University of Minnesota from 2002 up to the present in 2006. He is also the director of the International Science and Technology Practice and Policy center at the University of Minnesota from 2004 up to the present. He comes to economics with a grounding in agricultural science that reinforced his interest in science and technology policy.

We investigate the effect of remittances on bank credit in developing countries. Understanding this link is important in view of the growing relevance of remittances as a source of external finance and of the beneficial impact that financial intermediation is likely to have on economic growth. Our contribution is twofold. First, we present a theoretical model of bank credit in a hypothetical remittances-receiving country where: (1) the banking sector is imperfectly competitive; and (2) bank rates change infrequently because of the presence of adjustment costs. We show that in equilibrium, the relationship between remittances and bank-credit is likely to be non-linear. Second, we look at the evidence using a panel data set for a large group of developing and emerging economies over the period 1970-2009. We find that at initially low levels of remittances, an increase in remittances reduces the volume of credit extended by banks. However, at sufficiently high levels of remittances, the effect becomes positive. The turning point of the relationship occurs at a level of remittances of about 2.5% of GDP, which would imply that approximately 50% of our sample lies to each side of this threshold. [ABSTRACT FROM AUTHOR]

The combination of poor institutions and erratic macroeconomic policy, as measured by the volatility of fiscal policy, is associated with slower growth. We show that macroeconomic policy is more erratic in countries that are rich in natural resources, especially minerals and fuels, and in those that receive large aid inflows. Poor institutions also play a role. Although Africa is a major receiver of aid and exporter of natural resources, this is not purely an African phenomenon. Output volatility is not associated with slower growth after controlling for institutions and the volatility of fiscal policy. [ABSTRACT FROM AUTHOR]

In this article, we discuss some key aspects of biofuel production in developing countries, and where constraints and tradeoffs are likely to occur. We use the example of two countries, Senegal and India, to highlight some of the issues of cost competitiveness, problems with ensuring stable supply of feedstock as well as critical missing links in the biofuels value chain that pose problems to scaling up national programs in these countries. We discuss the particularly problematic nature of jatropha, as a biodiesel feedstock, and underline some helpful guiding principles that can help country-level policy. We point to an underlying 'duality' between a well-functioning food system and favorable conditions for agribusiness enterprises, such as biofuels, and the relevance it has to achieving food security goals. [ABSTRACT FROM AUTHOR]

This article investigates the effects of real exchange rale uncertainty on manufactures exports from 28 emerging economies, representing 82% of all developing country manufactures exports, and explores the sources of heterogeneity in the uncertainty effects by controlling for the direction of trade (south-north or south-south), and the level of financial development of the exporting country. The empirical results show that for more than half of the countries, the uncertainty effect is unidirectional, either south-south or south-north, and the median impact is negative. In addition, while we find that financial development augments trade, exchange rate shocks can negate this effect. Last but not least, trade among developing economies improves export growth under exchange rate shocks. [ABSTRACT FROM AUTHOR]

If society's goal is to increase people's feelings of well-being, economic growth in itself will not do the job. Full employment and a generous and comprehensive social safety net do increase happiness. Such policies are arguably affordable not only in higher income nations but also in countries that account for most of the population of the less-developed world. These conclusions are suggested by an analysis of a wide range of evidence on happiness in countries throughout the world. [ABSTRACT FROM AUTHOR]

In the twentieth century, Latin American militaries developed economic industries, organised businesses, and provided security and development assistance in lieu of the state. Despite shifts to democracy and the market, the military remains an economic actor in many countries in the region. This article seeks to open debate and suggest ways to approach the subject theoretically. It examines the concept of military entrepreneurs and scholarship on the topic, and then suggests how three approaches from the domain of comparative politics - rational, structural and cultural - can be useful to develop theoretical frameworks for studying the military's role in the economy. [ABSTRACT FROM AUTHOR]

Insurance market activity may contribute to economic growth, both as financial intermediary and provider of risk transfer and indemnification, by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets, given the process of financial liberalization and integration, which raises questions about the overall impact on economic growth. This article tests whether there is a causal relationship between insurance market activity (life and nonlife insurance) and economic growth. Using the generalized method of moments (GMM) for dynamic models of panel data for 55 countries between 1976 and 2004, I find robust evidence for this relationship. Both life and nonlife insurance have a positive and significant causal effect on economic growth. For life insurance, high-income countries drive the results, and for nonlife insurance, both high-income and developing countries drive the results. [ABSTRACT FROM AUTHOR]

The pursuit of high economic growth is considered desirable as it generates an increase in a nation's wealth, income, employment and output. The rising income should enable consumers to purchase more goods and services, which in turn should result in enhanced utility and subjective happiness. Empirical studies suggest that higher income resulting from high rates of economic growth contribute to poverty alleviation and life satisfaction in low income countries. Higher income raises the happiness of the poor. In developed countries, higher income does not seem to “buy” higher happiness, once a threshold level of income is reached. This exploratory study seeks to examine the quantitative and qualitative sources of happiness. A higher absolute level of income is found to be significantly related to subjective happiness. Among the non-income factors, family togetherness, a good working environment and a higher level of education can contribute to making people happier. Happiness thus involves more than just economic growth and income. [ABSTRACT FROM AUTHOR]

This article aims to outline main features of the East Asian welfare model, to understand its past development and assess lessons that can be learned for other developing and developed countries. It describes the particular path of welfare state development in Japan, South Korea, Taiwan, Hong Kong and Singapore, by focusing particularly on developmental and political aspects of welfare state development. In the final part of the study, particular features of the East Asian welfare model are outlined, and thus the existence of a distinct, ideal-typical welfare regime in East Asia substantiated. [ABSTRACT FROM AUTHOR]

A series of articles, many of them published in this journal, have charted the rapid spread of supermarkets in developing and middle-income countries and forecast its continuation. In this article, the level of supermarket penetration (share of the retail food market) is modelled quantitatively on a cross-section of 42 countries for which data could be obtained, representing all stages of development. GDP per capita, income distribution, urbanisation, female labour force participation and openness to inward foreign investment are all significant explanators. Projections to 2015 suggest significant but not explosive further penetration; increased openness and GDP growth are the most significant factors. [ABSTRACT FROM AUTHOR]

This article analyzes the role of foreign direct investment (FDI) and trade in promoting economic growth across selected developing countries and examines the interaction among FDI, trade, and economic growth. Data from 66 developing countries are examined. Results of the study suggest that FDI, trade, human capital, and domestic investment are important sources of economic growth for developing countries. It is discovered that there is a strong positive interaction between FDI and trade in advancing economic growth. Results also show that FDI stimulates domestic investment. The contribution of FDI to economic growth is enhanced by its positive interaction with human capital and sound macroeconomic policies and institutional stability. With the results, there is an implication that lowering the inflation rate, tax burden, and government consumption would advance economic growth in developing countries.

The growth in the share of resources devoted to food marketed through supermarkets and their accompanying marketing channels has grown at an unprecedented rate in developing countries during the 1990s. This article shows that differences in the relative capital intensity of the modern marketing channels, in contrast to the traditional channels, can explain part of this expansion as the process of economic growth gives rise to capital deepening in the economy even when the food share of total expenditures declines. In this case, the lack of complete markets and policy distortions can further exacerbate the effects of supermarkets on the traditional marketing system and the small farmers that it supports. The article proceeds by describing the conceptual framework of a Ramsey growth model to fit on data of the Moroccan economy. The empirical results show how capital deepening in transition growth can encourage the expansion of the supermarket system without the need to appeal to economies of scale or imperfect competition. The article concludes by noting how economic policy and other market imperfections can affect this process.

Copyright of African Development Review / Revue Africaine de Développement is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Population & Development Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

An examination and critique of the functionalist literature on corruption in the political administration of Less Developed Countries (LDCs) indicate that its claims are without empirical foundation. Its theses with regard to the political, economic and administrative effects in most LDCs contrast with the facts. No benefits for development from corruption are found; market corruption, for example, does not appear to improve allocative efficiency The erosion in a government's capacity to formulate and implement policies making for economic growth is an obstacle to economic progress. [ABSTRACT FROM AUTHOR]

The article focuses on the implications of economies of scale for developing countries. It explores the empirical evidence on economies of scale at the aggregate as well as at plant level and further provides a statistical analysis of the influence of the size of plant to the output per worker. It also examines the relationship between the plant level economies of scale and the industry's structure as a sample of developed and developing countries. Moreover, the potential significance of the development of economies of scale on factor intensity and factor reversals are considered. Also included is a brief overview and policy implications for developing countries.

This article examines the branches of economic theory and development economics. The proliferation and sub-division of development economics is most dramatically shown by the many periodicals which devote themselves entirely to some particular aspect of the subject, such as development finance, development agriculture and so on. Such an economist should try to acquire a good working knowledge at least, of the broad economic dimensions and the basic features of the situation, in a wide range of underdeveloped countries. His aim should be to try to apply the existing economic theory in a more realistic and fruitful way to suit the varying conditions of the different types of underdeveloped country. An equally important part of his job would be to try to prevent serious misapplications of economic theory, whether of the orthodox type or the newer modern theories, to the underdeveloped countries. The alternative view which pervades thinking at present is that the advanced countries should take the responsibility of guaranteeing a politically-acceptable target rate of economic growth for all underdeveloped countries and, if this cannot be achieved by the latter countries' own efforts, the advanced countries should be prepared not only to increase the total volume of aid but also to increase the planning and supervision of the use of this aid so that the peoples of underdeveloped countries may enjoy economic development in spite of themselves. Obviously the underdeveloped countries cannot insist on freedom to use aid in any way they like and at the same time insist that the advanced countries guarantee a minimum target rate of economic growth for them all. Ultimately they will have to choose the one or the other.

The article reports that Malawi cut its diplomatic ties with Taiwan and established ties with China. According to Malawi's Foreign Affairs Minister Joyce Banda, the decision was made after considering the benefits that it would bring to their country. Moreover, Lilongwe and Beijing had formalized its diplomatic ties last December 27, 2007. China's government and its companies have invested in Africa in a bid to build political influence in the developing country, and others. Meanwhile, Banda claimed that projects funded by Taiwan won't be affected by the change in their diplomatic relations.