Search

This article discusses welfare regime change using two theoretical frameworks, i.e. welfare regimes in developing countries and institutional change. Using these theories as a loop to look at the Indonesian case, it suggests that the Indonesian welfare regime has experienced 'flourishing' development and changes. The regime has changed three times, stimulated by economic growth, global market pressures and social policy 'universalization'. The last two changes have been loaded with thorny layering, to which the government introduced numerous government-formal social programmes on top of community-based informal welfare arrangements. This causes complicated consequences, including the problem of informal and formal welfare institutions harming each other. The discussion of the Indonesian case leads to a better understanding of the characteristics and changes of welfare regimes in developing countries, for which there is currently a research gap. [ABSTRACT FROM AUTHOR]

The relationship between income inequality and economic growth is estimated using dynamic panel estimation on a sample covering 112 emerging countries for the period 1980-2014. The results show that income inequality has a positive influence on economic growth for richer countries, in line with the classic theory, and a negative effect for poorer countries, as argued by the political economy approach. Copyright © 2017 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Until recently, it has been argued in economic theory that regional integration and trade agreements among developing countries may achieve negative growth effects. This study tests empirically the effects of such South-South agreements on growth and convergence. All three world regions in question are considered: South America, Southeast Asia, and Sub-Saharan Africa. A comprehensive panel data analysis is conducted that distinguishes between the problems of testing for stronger growth and accelerated convergence, respectively. The data indicate that the considered South-South agreements promote both. [ABSTRACT FROM AUTHOR]

Investments in the physical infrastructure, human capital, and institutions needed for water resources management have been noteworthy in the development of most civilizations. These investments affect the economy in two distinct ways: (i) by improving the factor productivity of water in multiple economic sectors, especially those that are water intensive such as agriculture and energy and (ii) by reducing acute and chronic harmful effects of water-related hazards like floods, droughts, and water-related diseases. The need for capital investment to mitigate risks and promote economic growth is widely acknowledged, but prior conceptual work on the relationship between water-related investments and economic growth has focused on the productive and harmful roles of water in the economy independently. Here the two influences are combined using a simple, dynamical systems model of water-related investment, risk, and growth. In cases where initial water security is low, initial investment in water-related assets enables growth. Without such investment, losses due to water-related hazards exert a drag on economic growth and may create a poverty trap. The presence and location of the poverty trap is context-specific and depends on the exposure of productive water-related assets to water-related risk. Exogenous changes in water-related risk can potentially push an economy away from a growth path toward a poverty trap. Our investigation shows that an inverted-U-shaped investment relation between the level of investment in water security and the current level of water security leads to faster rates of growth than the alternatives that we consider here, and that this relation is responsible for the 'S'-curve that is posited in the literature. These results illustrate the importance of accounting for environmental and health risks in economic models and offer insights for the design of robust policies for investment in water-related productive assets to manage risk, in the face of environmental change. [ABSTRACT FROM AUTHOR]

Using firm-level data from 2006 to 2013 for a set of developing countries, we examine the effects of financial development on innovation. Financial development boosts innovation by improving resource allocation and investment in strategic sectors as well as facilitating technology to promote growth. Using binary response models and instrumental variable techniques to correct for endogeneity, we find robust but puzzling results. Contrary to most of the existing literature, financial development has a negative effect on the probability of a firm to innovate in developing countries. This effect is conditional on firm size, and only larger firms benefit from financial development. These results are robust to different measures of financial development and econometric specifications. We argue that this is a result of the design of the financial system in regard to the lack of capital and institutional system. Consequently, developing countries should first generate appropriate institutional conditions if they want financial development to spur growth through innovation. [ABSTRACT FROM AUTHOR]

By 2016, European countries have more or less recovered from the 2008 recession. However, the strategies for coping with the crisis have varied, and one of the main concerns is to which extent the social investment paradigm has survived. In this article, we first map the dynamics of social investment expenditures in 2004-12 in six low- and high-spending welfare states in the Baltic Sea region - Estonia, Latvia, Lithuania, Finland, Denmark and Sweden - and define countries which have managed to sustain the social investment ratio after recession. Second, by employing fuzzy-set Qualitative Comparative Analysis, we explore the configurational routes of ideational and structural factors within various macroeconomic contexts associated with the endurance of social investment. The analysis revealed that two out of the six countries - Denmark and Lithuania - managed to increase or preserve the share of investment expenditures in their total welfare budgets. Stable economic growth and low government debt turned out to be necessary conditions regardless of the generosity of the welfare state. However, while in Baltic countries a strong economy has to be in conjunction with ideational contributors (such as a government coalition of liberals and social democrats, and strict employment protection), the Nordic route includes a strong economy in conjunction with a high share of service economy. [ABSTRACT FROM AUTHOR]

The objective of the study is to empirically examine the effects of urbanization, energy consumption, and per capita GDP on CO2 emissions for all member countries from BRICS. Panel data over the period 1990-2014 and the STRIPAT model are used. After panel unit root tests, the method of fully modified Ordinary Least Squares (FMOLS) is applied as an analytical technique. Empirical results reveal that urbanization has a positive and significant relationship with CO2 emissions in all BRICS countries with the exception of Russia. Results also show that GDP per capita in cases of Brazil, Russia, and South Africa will help to mitigate CO2 emissions, while the results are opposite in the cases of India and China. Likewise, energy consumption is positively and significantly causing CO2 emissions in cases of Brazil, India, and China, whereas, it is helping to reduce CO2 emission in Russia, while energy consumption has no impact in the case of South Africa. The findings of the study suggest important policy implications. This study recommends introducing less pollution emission of transport, and constructing long-term and effective system in renewable energy development in order to mitigate side effects of urbanization on the environment. © 2016 American Institute of Chemical Engineers Environ Prog, 36: 523-531, 2017 [ABSTRACT FROM AUTHOR]

Theories of economic growth hypothesize that the transition from pre-industrial stagnation to sustained growth is associated with a post-Malthusian phase in which technological progress raises income and spurs population growth while offsetting diminishing returns to labor. Evidence suggests that England was characterized by post-Malthusian dynamics preceding the Industrial Revolution. However, given England's special position as the forerunner of the Industrial Revolution, it is unclear if a transitory post-Malthusian period is a general phenomenon. Using data from Denmark, Norway, and Sweden, this research provides evidence for the existence of a post-Malthusian phase in the transition from stagnation to growth in Scandinavia. [ABSTRACT FROM AUTHOR]

Of the myriad approaches to reducing poverty, which have proved effective on a national scale? This article analyses 15 systematically selected national cases of demonstrated rapid poverty reduction, seeking insights into effective approaches to reducing poverty. From these 15 economies, in which the bottom quintile experienced an annual increase in income of at least 6% over at least a decade, emerge four poverty-reduction pathways: (1) industrialisation, (2) rural development, (3) social welfare and (4) petroleum-generated employment. In addition to helping us understand what policy approaches have actually helped reduce poverty, this article has implications for the understanding of economic growth, the impact of pro-growth policies, the relationship between state and market, and the roles of non-government organisations ( NGOs) and civil society. [ABSTRACT FROM AUTHOR]

This article examines the relationship among foreign direct investment ( FDI), institutions and economic growth in sub-Saharan Africa in different country environs. We employ a two-step generalized methods of moments estimator with Weidmeijer corrected standard errors and orthogonal deviations to examine the empirical relations. In the full sample, we do not find evidence that FDI promotes growth. We also do not find a significant relationship between institutions and economic growth. Finally, we do not find convincing evidence that institutions alter favorably the effect of FDI on economic growth. In the subsample that excludes countries with developed financial markets, again we do not find a significant relation between FDI and economic growth. However, we find evidence suggesting that institutions play a direct role in spurring economic growth. Further, the quality of institutions seems to alter favorably the relationship between FDI and economic growth. Finally, in the sample that excludes countries with abundant natural resources, we find a direct and positive relationship between FDI and economic growth. We also find a direct relationship between institutions and economic growth. The growth-enhancing effects of FDI, however, seem to reduce as the quality of institutions improves. The major implication from our study is that countries should take into consideration their own realities when they fashion policies to benefit from FDI in terms of achieving better growth outcomes. © 2016 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

In spite of the great U-turn that saw income inequality rise in Western countries in the 1980s, happiness inequality has fallen in countries that have experienced income growth (but not in those that did not). Modern growth has reduced the share of both the 'very unhappy' and the 'perfectly happy.' Lower happiness inequality is found both between and within countries, and between and within individuals. Our cross-country regression results suggest that the extension of various public goods helps to explain this greater happiness homogeneity. This new stylized fact arguably comes as a bonus to the Easterlin paradox, offering a somewhat brighter perspective for developing countries. [ABSTRACT FROM AUTHOR]

I analyze a model of strategic interdependence between two economies linked by investments in defensive capital for deterrence purposes. I adapt a two-agent dynamic setting where weapon production affects consumption. Individually both economies determine their balanced growth path by taking this interdependence into account in different grades of awareness. I associate two types of equilibria with internal or external determinants for defense production analogous to scenarios of arms build-up or arms race. I find that a defense sector is compatible with economic growth but a tight arms race can harm growth. [ABSTRACT FROM AUTHOR]

We analyse the relationship between public debt, economic growth and inflation in a group of 52 African economies between 1950 and 2012. The results indicate that the limits of public debt are negatively related to economic growth and exhibit, from a given level of debt, an inverted U behaviour regarding the relationship between economic growth and public debt. Briefly, the high levels of public debt are coincident with reduced rates of economic growth and rising levels of inflation. Our results for three specific geographical areas resemble those of the overall analysis, despite some differences. In North African countries, the growth rates of the gross domestic product ( GDP) and inflation also show an inverted U behaviour as the ratio of public debt/ GDP increases. The highest rate of economic growth is recorded when the ratio of public debt/ GDP is below 30% of GDP and corresponds to an average inflation rate of 5.33%. An identical behaviour of the GDP growth rates and inflation also appears in Sub-Saharan countries until the third interval (60-90%). However, the highest growth rate of the GDP and GDP per capita is registered when the public debt/ GDP ratio is in the second interval (30-60%). For the countries of the Southern Africa Development Community, the highest average rate of economic growth (6.8%) is similar to North African countries, when the ratio public debt/ GDP is below 30% of GDP, with an average inflation rate of 11%. A number of robustness analyses were performed and the great majority of them confirm the general analysis. [ABSTRACT FROM AUTHOR]

Money and financial intermediation are important elements in economic growth. Both depend heavily on trust for their efficient working. In the second half of the twentieth century, trust was eroded and even broke down. Regulation replaced it. The welfare costs grew, and economic growth was damaged. The opposite happened in the move from mercantilism in the eighteenth century to small government and sound money in the nineteenth century. Growth was improved. Perhaps trust can be restored again. [ABSTRACT FROM AUTHOR]

We analyse the evolution of beer consumption between countries and over time. Historically, there have been major changes in beer consumption in the world. In recent times, per capita consumption has decreased in traditional beer drinking countries while it increased strongly in emerging economies. Recently, China has overtaken the US as the largest beer economy. A quantitative empirical analysis studies the relationships among economic growth, globalisation and beer consumption. The relationship between income and beer consumption has an inverse U-shape. Beer consumption initially increases with rising incomes; but at higher levels of income beer consumption falls. Increased globalisation has contributed to a convergence in alcohol consumption patterns across countries. In countries that were originally beer drinking countries, the share of beer in total alcohol consumption reduced, while this is not the case in countries which traditionally drank mostly wine or spirits. [ABSTRACT FROM AUTHOR]

Natural resource abundance is a blessing for some countries, but a curse for others. We show that differences across countries in the degree of fiscal decentralization can contribute to this divergent outcome. Using a large panel of countries covering several decades and various fiscal decentralization and natural resource measures, we provide empirical support for the novel hypothesis. We also study a model that combines political and market mechanisms under a unified framework to illustrate how natural resource booms may create negative effects in fiscally decentralized nations. [ABSTRACT FROM AUTHOR]

Despite vibrant economic growth, the Philippines confronts persistently high income inequality. Using household-level panel data collected for the years 2003, 2006 and 2009, we investigate how income segmentation affects Filipinos' income mobility prospects. The results of the multinomial logistic models suggest that if households are grouped according to initial income (in 2003), richer households had the lowest propensity to experience slow to moderate income changes and were most likely to experience consistently downward mobility from 2003 to 2009, while initially poorer households had the highest propensity to experience consistently upward mobility. On the other hand, if households are grouped according to permanent income, we still find that lower income households experienced (slightly) better income mobility outcomes; however, their edge over higher income households was much smaller than when initial income was used. This result could indicate that convergence on the basis of initial income may be in part random variation. The findings are robust to heuristic and model-based methods of grouping households into different income segments. [ABSTRACT FROM AUTHOR]

The aims of this article are to propose an overall index of social exclusion and to analyze its relationship with economic growth in European countries. We approach social exclusion as a multidimensional phenomenon by a three-mode principal components analysis (Tucker3 model). This method is applied to estimate an indicator of social exclusion for 28 European countries between 1995 and 2010. The empirical evidence shows that in the short run: (1) Granger causality runs one way from social exclusion to economic growth and not the other way; (2) countries with a higher level of social exclusion have higher growth rates of real GDP per capita; and (3) social exclusion has a larger effect than income inequality on economic growth. The policy implication of our analysis is that social inclusion is not a source of economic growth in the short term. [ABSTRACT FROM AUTHOR]

This study examines the effects of international trade and investment on output and tests the Granger-causal nexus among trade, investment and economic growth in New Zealand for the period 1954-2007. The results provide consistent support for the long-run effects of trade and investment on output. The optimal single-equation and the vector autoregression-based system estimates of the model consistently suggest positive and significant long-run effects of exports and investment on output. The effects of imports on output are positive across all and statistically significant across most estimators. The Johansen test for cointegration suggests the presence of one equilibrium relationship among the model variables. The JMN test for cointegration with structural breaks provides mixed support, while the end-of-sample cointegration breakdown tests lend dominant support for cointegration among the model variables. The positive and significant long-run effects of exports and investment on output underline the need for the promotion of exports and increase in investment to foster higher levels of output and economic growth. [ABSTRACT FROM AUTHOR]

We compare the predictive ability of Bayesian methods which deal simultaneously with model uncertainty and correlated regressors in the framework of cross-country growth regressions. In particular, we assess methods with spike and slab priors combined with different prior specifications for the slope parameters in the slab. Our results indicate that moving away from Gaussian g-priors towards Bayesian ridge, LASSO or elastic net specifications has clear advantages for prediction when dealing with datasets of (potentially highly) correlated regressors, a pervasive characteristic of the data used hitherto in the econometric literature. Copyright © 2015 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

SUMMARY The neoclassical model of economic growth is used to model the economic growth of a HIV-infected community with efforts in controlling the epidemic. An optimal control model with pure-state constraints is formulated and investigated. It is found that reduction of prevalence for the disease and economic growth agrees in a positive sense in the communities with high rate of population growth and low income. Moreover, the same control strategy will decrease the prevalence even if the capital is not growing for the case of high income communities. However, a disease control strategy with economic growth as its objective will not result in decrease in prevalence if the rate of population growth of the community is very low. Therefore, if the rate of the population growth of a community is nearly the replacement level, then the utility function for the selection of disease control strategies should not be an economic benefit. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Conducting science for practical ends implicates scientists, whether they wish it or not, as agents in social-ecological systems, raising ethical, economic, environmental, and political issues. Considering these issues helps scientists to increase the relevance and sustainability of research outcomes. As we rise to the worthy call to connect basic research with food production, scientists have the opportunity to evaluate alternative food production paradigms and consider how our research funds and efforts are best employed. In this contribution, we review some of the problems produced by science conducted in service of industrial agriculture and its associated economic growth paradigm. We discuss whether the new concept of "ecological intensification" can rescue the industrial agriculture/growth paradigm and present an emerging alternative paradigm of decentralized, localized, biodiversity-promoting agriculture for a steady-state economy. This "custom fit" agriculture engages constructively with complex and highly localized ecosystems, and we draw from examples of published work to demonstrate how ecologists can contribute by using approaches that acknowledge local agricultural practices and draw on community participation. [ABSTRACT FROM AUTHOR]

ABSTRACT This study examines the long-run relationship between tourism development and economic growth in a small island destination. Determining whether the nature of the relationship is unidirectional or bidirectional provides insightful information as to policies to be implemented. This information is crucial in a resource-poor environment, such as a small island destination. The study employs an econometric methodology consisting of unit root testing, co-integration analysis, vector error correction modeling and Granger causality testing. Results confirm the reciprocal hypothesis. The policy implication is that resource allocation supporting both the tourism and tourism-related industries could benefit both tourism development and economic growth. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In Dog Days, Garnaut (2013) portrays Australia's immediate future as characterised by the end of the mining investment boom, declining terms of trade, a decline in labour input per head of population, slow multifactor productivity growth, fiscal consolidation and rising world interest rates. We quantify the consequences of these developments using a detailed general equilibrium model. Consistent with Garnaut, we find that wage and demand restraint will be required to steer Australia through the difficult period ahead. Public understanding of Dog Days will help move expectations to match current unfavourable conditions and thereby promote an orderly adjustment with minimum damage to employment and standards of living. [ABSTRACT FROM AUTHOR]

Many studies have considered how democratization affects economic growth. We expand this work by allowing short- and long-run effects of democracy upon growth to differ since effects during political transitions need not coincide with those under established democracies. We also allow these short- and long-run effects to differ across world regions since history, demography and geography vary across regions. Using annual, cross-county data from 1960 to 2010, we find that democratizations increased growth rates in sub-Saharan Africa both in the short run and in the long run but lowered them in Europe. Effects in other regions appear less strong. Our results suggest that democracy could be most beneficial for growth in poorer, less stable regions. We also do not find any evidence of a transitional cost. Stronger evidence arises that these effects come from rising productivity rather than through greater investment. Finally, some support though mixed suggests that democracy's ability to mitigate the effects of ethnic heterogeneity provides a partial explanation for the cross-regional heterogeneity. [ABSTRACT FROM AUTHOR]

The 2010 earthquake in Haiti has exposed the extreme vulnerability of a society where the state and the economy simultaneously fail to deliver. The Dominican Republic has witnessed several phases of rapid economic growth since the 1870s and, from the 1970s onwards, a sustained process of political emancipation. Douglas North, John Wallis and Barry Weingast have developed a conceptual framework to explain different long-term performance characteristics of societies, which we apply to the case of Hispaniola. We argue that it captures the internal logic of the political economy of both societies but fails to account for the effect of different foreign relations. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Drawing upon the Global Trade Analysis Project ( GTAP) database, and other time series data, we construct a multi-sector Ramsey model that shows the transition growth of the Brazilian agricultural sector and its effects on growth of the industrial and service sector of the economy, with particular emphasis given to the years 1994-2010. Our results capture the importance of the agriculture's capital intensity and the sector's factor productivity on the sector's growth, the substitution of capital for labor in agriculture, and the sustaining of agriculture's share in Brazilian GDP. These features are rather unique among emerging economies, most of which have experienced a transition out of agriculture and growth in nonfarm production relative to agriculture. [ABSTRACT FROM AUTHOR]

We use the perpetual inventory method to estimate gross fixed capital stock at the provincial level in Indonesia. We employ a relatively long series of past annual investments at constant prices for 1983-2007 and a province-specific survival function for capital. For this purpose, we use published data on provincial income accounts, input-output tables, and surveys from existing studies. Capital was found to be over-concentrated in the Java-Bali region and inefficiently distributed among provinces. This distribution contributed to national growth in the majority of the sample years. [ABSTRACT FROM AUTHOR]

Copyright of Latin American Policy 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.)

Development statistics estimate that three quarters of the poor live in rural areas and most of them depend on agriculture and related activities for their livelihood. Consequently, research focusing on economic growth and poverty reduction has found that sustainable rapid transition out of poverty requires a special emphasis on the agricultural sector. This study contributes to the debate on aid effectiveness by disaggregating total aid into subcategories and specifically investigating the relationship between aid given to the agricultural sector and poverty reduction. If agricultural development is more effective in reducing poverty than some other types of development, then foreign aid directed towards agriculture may be more efficient in increasing the well-being of the poor than aid directed to some other sectors or uses. Our analysis uses panel data for developing aid recipient countries to empirically test this relationship. We find a significant relationship between agricultural aid and poverty reduction in our estimates. [ABSTRACT FROM AUTHOR]

This study investigates time-varying world and regional integration in emerging European markets. Categorising global and regional effects into return and volatility spillovers, we also examine the impact of time variation in these spillover effects based on the conditions of economic growth. Our results show that growth and currency depreciation can predict the degree of integration and spillover effects for these markets. The impact of growth on the level of regional integration is greater in countries with floating exchange rate regimes than in those with exchange controls. The world effect on European returns is stronger when the developed European region is in a recession. However, regional effects on the volatility of emerging European markets are greater during faster growth or weaker than expected economic growth. [ABSTRACT FROM AUTHOR]

This study analyzes the impact of the speed of transition reforms on economic growth in transition countries in the context of the debate on 'big-bang vs. gradualist approach'. It builds a new indicator for the speed of transition reforms based on a three-way principal component analysis. It shows that: (i) the speed of transition reforms Granger-causes economic growth and there is no reverse causation; (ii) the impact of contemporaneous speed of transition reforms on economic growth is negative, but becomes positive in the longer horizon; and (iii) other factors, such as initial conditions and macroeconomic stabilization programmes, also drive economic growth. Although the first two results are robust to different estimators, the impact of control variables depends on the econometric specification. [ABSTRACT FROM AUTHOR]

We study the role of productive and unproductive entrepreneurship in economic growth, in a setting where firms compete in both economic and political markets. Specifically, firms compete for market share through cost-reducing technological innovation, and they vie for influence over government transfer policy through rent-seeking activities. We find that rent-seeking affects growth in two ways: it allows firms to ignore economic competition, leading to less innovation, and it alters the number of firms that are supported in equilibrium. The former effect is negative, while the latter is ambiguous. We show how these effects depend on various characteristics of economic and political markets. [ABSTRACT FROM AUTHOR]

Copyright of Latin American Policy 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.)

In this study, we model the Schumpeterian growth theory in a simple discrete-time framework in which both economies and institutions need to be developed. Individuals need to borrow from an imperfect financial market to develop an economy. A government can adopt two potential strategies for improving the borrowing capacity of individuals and, as a result, enhancing economic performance: 'the rule of law' and 'industrial policies'. We interpret market-oriented reform in transition economies as a shift from 'industrial policies', exemplified at the extreme by the traditional planned economy, to 'the rule of law'. The presented model shows that both strategies could be the best choice at different stages of development. [ABSTRACT FROM AUTHOR]

This study examines the effects of multinationals and economic institutions on the economic growth of cities in China. Consistent with previous findings, the empirical results suggest that property rights institutions are significantly more important than contracting institutions in promoting economic growth. The direct effect of multinationals on economic growth is generally insignificant statistically. However, a statistically significant and robust interaction effect exists between property rights institutions and multinationals on economic growth, whereas no such effect is observed between contracting institutions and multinationals. The results are attributable to the fact that multinationals can rely on reputation or personal connections to enforce contracts when contracting institutions are weak. However, it is difficult for multinationals to operate when the state expropriates their profits (i.e. property rights institutions are weak). [ABSTRACT FROM AUTHOR]

ABSTRACT The standard linear model where ut is generated from an ARFIMA process, is considered. The sensitivity of the predictor and sensitivity of variance estimates of the linear model to long memory are investigated by constructing the statistical measures B L/ S and D L/ S, respectively. B L/ S and D L/ S is interpreted as a sensitivity measure for the long-memory process without the short-memory effects. As an application, the memory characteristics of per capita GDP of 30 countries are investigated from the Maddison GDP dataset. It is found that per-capita GDP exhibits long memory characteristics, and the long-run growth estimates are sensitive to the long memory characteristics. [ABSTRACT FROM AUTHOR]

The focus of this survey is to discuss different attempts at incorporating the distributional dimension of human capital into the theoretical and empirical growth framework. We present a series of models which deviate from the direct link between the aggregate or average level of human capital and economic growth in that they introduce the distribution of education as a new element in explaining the relationship under investigation. After surveying the theoretical literature, we present recent empirical work on the relation between economic performance and the average level, as well as the distribution of education, respectively. [ABSTRACT FROM AUTHOR]

Africa's external relations are currently undergoing major changes. Non-traditional state actors like China and India are reviving their ties with African economies and thereby affecting power relations between African states and traditional partners. Meanwhile, high commodity prices and improved credit ratings make external finance available for African governments. This article examines how non-traditional state actors affect the possibility of African governments setting and funding their own development priorities. It argues that while the current situation may increase the policy autonomy for African economies this is largely a consequence of the increased availability of external finance - and not just from non-traditional state actors. [ABSTRACT FROM AUTHOR]

This article investigates the effect of life insurance on economic growth and what conditions affect the insurance-growth nexus. These conditions include the degree of financial development, private saving rates, interest rates, social security expenditures, income, young dependency ratio, life expectancy, and geographic regions. The main findings confirm the positive impact of the development of the life insurance market on economic growth. The insurance-growth nexus varies across countries with different conditions. For example, the positive impact on economic growth is mitigated in the middle-income countries, but amplified in the low-income countries. Moreover, both the development of stock market and the life insurance market are substitutes rather than complements. Based on our findings, this study offers useful insights for policy-makers and insurers. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Since 2001, Brazil has experienced a sharp increase in sugarcane production due to the upsurge in demand for sugar and ethanol, two products derived from sugarcane. This study analyses the impacts of these sugarcane expansions on economic growth. The effects are examined at the municipality level in Brazil as a whole and in the main sugarcane producing regions, the North-Northeast (NE) and the Centre-South (CS). In this latter region, an additional distinction is made between the state of São Paulo (SP) and the Centre-South region excluding São Paulo (CSex) since the bulk of the recent expansion took place in SP while most of the future expansions are planned in CSex. Estimators based on the propensity score are used to construct two types of counterfactual scenarios. The estimations in the first scenario show that municipalities in NE and CSex that expanded sugarcane production experienced economic growth as a result. No significant effect was found in SP. The second scenario focuses on CSex and establishes that sugarcane non-expanding municipalities in this region would have had higher economic growth if they had increased sugarcane production. The results of this study suggest that future sugarcane plantations should indeed be located in CSex because they contribute to economic growth. [ABSTRACT FROM AUTHOR]

For many citizens and policymakers, the empirical relationship between economic growth and biodiversity conservation has not been sufficiently established for purposes of identifying the types of economic policies amenable to biodiversity conservation. Some think economic growth conflicts with biodiversity conservation; others think economic growth conduces biodiversity conservation. With panel data from 1997-2011, encompassing US continental states, we developed a series of statistical models to investigate the relationships among species endangerment, human population, and economic growth as indicated by GDP and per capita GDP. Species endangerment is highly correlated with population and GDP, and per capita GDP is a significant regressor of species endangerment. Across US continental states, competitive exclusion of non-human species occurs via human economic growth and population growth. [ABSTRACT FROM AUTHOR]

This study aims to investigate the relation between corporate saving and economic growth during the period from 1995 to 2006 in 7 developing countries and 16 developed countries. The results show that corporate savings generally add to the economic growth of developing countries regardless of legal origins. On the contrary, corporate savings generally do not contribute to the economic growth of developed countries. Developed countries with common law and Scandinavian civil law legal origins particularly see the negative relation between corporate saving and economic growth, while countries with other legal origins observe no such relation. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The period between 1980 and 2005 registered declining poverty, especially in its extreme form, and increasing economic inequality with implications for the economic footing of the global poor- and low-income groups. Disentangling the roles of economic growth, openness and political institutions in determining poverty and inequality using cross-national data faces enormous methodological challenges. Nevertheless, panel data regressions estimated here suggest that the poor- and low-income groups do not benefit much from economic openness and political democracy. While economic growth and government expenditures do not significantly affect poverty, they prove somewhat effective at containing inequality. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

'Improve the investment climate!' is the dominant advice for governments wishing to achieve substantial increases in productive private investment. However, national-level investment-climate approaches have been criticised for not paying adequate attention to context and feasibility. This article experiments with a new approach which focuses on sectors and on relationships between policy-makers and investors, and shows how their common interest helped to overcome obstacles to investment and growth in Egypt. Such public-private relationships can be abused but they have provided effective transitional arrangements for enhancing investment and inducing a new growth dynamic. [ABSTRACT FROM AUTHOR]

The contemporary politics of China reflect an ongoing effort by the ruling Chinese Communist Party (CCP) to reclaim the right to rule in light of the consequences of economic development, international pressures, and historical change. China's regime stands out within the Asian region for its success in the effort of adapting to change and ensuring its continuity. Focusing on changes in China's elite discourse during the reform period and particularly during the last decade, the aim of this article is to elaborate the relative importance of various sources of legitimacy as they are shifting over time, as well as inherent dilemmas and limitations. There is evidence of an agile, responsive, and creative party effort to relegitimate the postrevolutionary regime through economic performance, nationalism, ideology, culture, governance, and democracy. At the same time, the study finds a clear shift in emphasis from an earlier economic-nationalistic approach to a more ideological-institutional approach. La política contemporánea China refleja un esfuerzo sostenido del Partido Comunista Chino por continuar ejerciendo el derecho de gobernar a la luz de las consecuencias del desarrollo económico, las presiones internacionales, y el cambio histórico. El régimen Chino se destaca dentro de la región de Asia por su éxito en el esfuerzo de adaptarse al cambio y asegurar su continuidad. Centrándonos en los cambios en el discurso de la elite China durante el periodo de reforma y particularmente durante la última década, el objetivo de este artículo es el de detallar la relativa importancia de las diferentes fuentes de legitimidad y sus variaciones en el tiempo, así como los dilemas y limitaciones inherentes. Existe evidencia de un esfuerzo ágil, sensible y creativo para relegitimar el régimen post-revolucionario a partir del desempeño económico, el nacionalismo, la ideología, la cultura, un buen gobierno, y la democracia. De la misma forma, este estudio encuentra un cambio claro en el énfasis del régimen de un enfoque económico-nacionalista a uno ideológico-institucional. [ABSTRACT FROM AUTHOR]

Humanity is currently faced with two global crises, one financial and one environmental. Although ostensibly distinct, these crises are in fact interlinked. Unsustainable consumption, at the heart of the environmental crisis, is driven to a large extent by unsustainable debt, which creates financial instability. If these underlying issues are tackled, and investment is directed into environmental initiatives through a ‘green new deal’, then the ultimate outcome of the financial crisis could be the mitigation of the environmental crisis. If, conversely, economic hardship is used as a justification for delaying action on critical environmental issues and economic growth remains at the centre of government policy, then the ultimate outcome of the financial crisis could be the deepening of the environmental crisis. The relationship between the two crises therefore provides both opportunities and threats to achieving long-term economic and ecological sustainability. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

Abstract: This study investigates the role of project finance as a driver of economic growth. We hypothesize that project finance is beneficial to the least developed economies as it is able to compensate for a lack of domestic financial development. The contractual structure unique to project finance leads to better investment management and governance. Investigating 90 countries from 1991 to 2005, we find support for our hypothesis. Results show that project finance fosters economic growth and that its effect is strongest in low-income countries, where financial development and governance is weakest. [Copyright &y& Elsevier]

A democratic society is often regarded as a prerequisite for economic growth and development. Yet, most empirical studies are not capable of identifying a positive link between GDP growth and democracy indexes. In addition, it is a stylized empirical fact that: (i) most developing countries are dictatorships; and (ii) many poor dictatorships have experienced high growth performances and emerged from poverty such as South Korea, China and Egypt. Against this background, it is of interest to analyse in which ways the growth performance between autocratic and democratic economies may differ, in particular among low-income countries. To answer this question, we compare the endogenous growth paths of two economies that differ only in their political regimes in the context of an overlapping generations model. The key features of the model are: (i) a positive bequest motive in the form of investments in education or productive public capital (infrastructure); (ii) a higher marginal (inter-temporal) utility of consumption today versus consumption tomorrow in low-income countries (for example, subsistence level of consumption); and (iii) a dictator that cares about her income or the income of her dynasty tomorrow. In this framework, we demonstrate that poor but large and stable dictatorships exhibit a higher equilibrium growth rate than comparable (equally poor) democracies. Moreover, there exists a particular threshold value in income such that the growth-reducing impact of dictatorial consumption (corruption) outweighs the higher (initial) public investments. Above this, the growth rate under democracy dominates the one in dictatorship. [ABSTRACT FROM AUTHOR]

Science and technology policy initiatives in the early 1980s have focused in both the United States and Western Europe on improving capacity to apply a good science base in practice, expecting increases in technological advancement, improved market presence and enhanced economic growth. Results varied broadly in the United States and Europe. Even more puzzling, Japan charged ahead in technological advancement without that strong of a science base of its own. Some industrialized economies do not conform to the expected science–technology relationship, whereby strong performance in science shall lead to strong technological performance. The puzzling science–technology relationship in advanced countries has plausible explanations. (1) Science–technology relationship is much interdependent or symbiotic. Its strength and primary direction at a given time varies largely by field of science or technological innovation and across long periods of time. (2) Science–technology link in a country may depend on the overall scientific and technological level of development in that country. The strength and interdependent nature of this link evolves historically and varies across fields of science and technology. The strength of the link is affected by scientific and technological specialization in a country. Different technological fields have different scientific intensities, or degrees of building upon the science base. (3) Specialization of countries across scientific and technological fields varies. Hence, the strength of science–technology link differs between countries. High technological specialization of a country may impact its technological performance more than its immediately current scientific performance does. History, tradition and knowledge transfers may affect more returns on R&D expenditures than the actual value of R&D funds spent in science or technology. Explanations of puzzling behavior of science–technology link may become policy recommendations. [ABSTRACT FROM AUTHOR]