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This paper critically analyses the European Union's regional policy framework and considers its implications for Australia's multi-level governance system. The analysis is made with reference to the ‘new regionalist’ debates in Europe and North America that have asserted the importance of regional economic development in the context of globalisation. New regionalism's advocacy of ‘economic normalisation’ as a leading regional policy aim is critically evaluated against the EU policy experience. Conclusions about the adequacy of new regionalist claims are drawn for Australian policy debates. [ABSTRACT FROM AUTHOR]

Presents several abstracts of journal articles on economics. "Economic Developments of Korea and China: Focusing on Role of FDI," by Doowon Lee published in the 2003 issue of the "Journal of Economic Research"; "Timor Leste: Newest and Poorest of Asian Nations," by J. Macaulay published in the 2003 issue of "Geography"; "Small Islands' Quest for Economic Development," by Naren Prasad published in the 2003 issue of "Asia-Pacific Development Journal"; "Financial Environment and Economic Growth in Selected Asian Countries," by M. M. G. Fase and R. C. N. Abma published in the 2003 issue of the "Journal of Asian Economics."

Abstract The paper aims to establish a theory of relation-based governance to explain both the “East Asian miracle” and the Asian crisis. The author first defines “relation” and “relation-based governance” in terms of information and enforcement, and then analyzes the nature and dynamics of relation-based governance, comparing its benefits and costs with that of “rule-based governance” in terms of observability/verifiability, commitment, and transaction costs. The theory is applied to examine a particular relation-based governance system—the Japanese model—to explain both the East Asian miracle and the Asian crisis. The framework provides foundations for studies of East Asian catching-up and economic development in general. [ABSTRACT FROM AUTHOR]

This paper sets the contributions to this issue in the context of a large and rapidly growing literature. It argues, on theoretical and empirical grounds, that future research should focus on transitional growth dynamics. [ABSTRACT FROM AUTHOR]

This paper explores the applicability of the Nelson-Phelps approach to the modelling of human capital in economic growth for the sample of OECD countries. A case is made for confining the approach to the technology diffusion component and for combining it with the Lucas approach. For such a hybrid model, both the favoured interpretation of the Nelson-Phelps approach, as well as the Lucas approach, are supported by the evidence. The sensitivity of the findings is assessed with regard to the use of alternative human capital data sets, including quality (adjusted) measures, and with regard to data outliers. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between economic and social development. Contrary to the view of those who believe in the existence of a tradeoff between democracy and growth, the paper contends that consensus-building, open dialog and the promotion of an active civil society are key ingredients to longterm sustainable development. Development is a participatory process. "Best practices" or reforms that are imposed on a country through conditionality may very well fail to produce lasting change. They will tend to undermine people's incentives to develop their own capacities and weaken their confidence in using their own intelligence. Success in a knowledge-based economy requires a highly-educated citizenry, involved in the process of shaping and adapting ideas and policies. Participation and democracy in turn call for greater transparency and accountability in both the corporate and government sectors. [ABSTRACT FROM AUTHOR]

This paper utilizes cointegration and the vector error-correction model (VECM) to explore the causal relationship between economic growth and growth rate of domestic savings for Congo, Côte d’Ivoire, Ghana, Kenya, South Africa, and Zambia. Specifically, three analyses were undertaken. First, the time series properties of economic growth and domestic savings were ascertained with the help of the augmented Dickey–Fuller unit root procedure. Second, the long-run relationship between economic growth and growth rate of domestic savings was examined in the context of the Johansen and Juselius (1990) framework. Finally, a Granger-causality test was undertaken to determine the direction of causality between economic growth and growth rate of domestic savings. The results indicate one order of integration [I(1)] for each of the series. The results of the cointegration tests suggest that there is a long-run relationship between economic growth and growth rate of savings. The results from the Granger-causality tests indicate that contrary to the conventional wisdom, economic growth prima facie causes growth rate of domestic savings for most of the countries under consideration. Le présent document utilise la co-intégration et le modèle à vecteur de correction des erreurs (VECM) pour étudier les relations de cause à effet entre la croissance économique et les taux de croissance de l’épargne intérieure au Congo, en Côte d’Ivoire, au Ghana, au Kenya, en Afrique du Sud et en Zambie. Plus précisément, trois analyses ont été effectuées. La première a vérifié les propriétés des séries chronologiques de la croissance économique et de l’épargne intérieure à l’aide de la méthode Dickey–Fuller de racine unitaire augmentée. La deuxième a examiné les relations à long terme entre ... [ABSTRACT FROM AUTHOR]

Reform of local capital markets and relaxation of capital controls to attract foreign portfolio investments (FPIs) has become an integral part of development strategy. The proximity of market openings and large, sudden shifts in international capital flows gave credence to the notion that the liberalization was the primary culprit in precipitating the recent Asian crisis. Hence, this paper reassesses the benefits and costs of FPIs from the perspective of the recipients. Specifically, it discusses the various FPI contributions and presents empirical evidence regarding the relationship between FPIs and market development, degree of capital market integration, cost of capital, cross-market correlation and market volatility. It is clear that the evidence on benefits of FPIs is strong, whereas the policy concerns regarding resource mobilization, market comovements, contagion, and volatility are largely unwarranted. The authors make some policy suggestions regarding preconditions for capital market openings, market regulation, and liberalization sequencing. [ABSTRACT FROM AUTHOR]

This paper pulls together existing theory and evidence to assess whether international financial liberalization, by improving the functioning of domestic financial markets and banks, accelerates economic growth. The analysis suggests that the answer is “yes.” First, liberalizing restrictions on international portfolio flows tends to enhance stock market liquidity. n turn, enhanced stock market liquidity accelerates economic growth primarily by boosting productivity growth. Second, allowing greater foreign bank presence tends to enhance the efficiency of the domestic banking system. In turn, better-developed banks spur economic growth primarily by accelerating productivity growth. Thus, international financial integration can promote economic development by encouraging improvements in the domestic financial system. [ABSTRACT FROM AUTHOR]

This paper examines the effects of capital account liberalization on the long-run growth of a developing economy. A general-equilibrium, endogenous growth model is constructed in which corruption forms an integral part of the governance system of the country. By undermining the profitability of innovations, corruption lowers the rate of return to capital and reduces the rate of technological change. The impact of international financial liberalization on long-run growth in this model can be either positive or negative. A drop in growth is obtained when the level of corruption is high enough to cause domestic rates of return to capital before liberalization to drop below those in the rest of the world. In this case, liberalization generates capital outflows, which act as a constraining force on innovation, reducing the rate of technological change and lowering output growth. On the other hand, if the level of corruption is sufficiently low, the capital account liberalization will serve as a boost to the country’s technical change and growth. [ABSTRACT FROM AUTHOR]

The 'new rural sociology' arguably represented the most significant watershed in the development of rural sociology during the 1970s and 1980s. I argue, however, that the new rural sociology, especially its dominant traditions of Chayanovian and neo-Leninist Marxism, has now been almost entirely superseded as a theoretical position in agrarian political economy by the international food regimes, commodity chains/systems analysis, regulationist, and actor-network traditions. In addition, Wageningen School research on `farming styles' and the 'cultural-turn' within rural sociology and rural studies have arisen, in part, as challenges to the more structuralist styles of reasoning within agrarian political economy. Parallel trends in the sociology of development are also discussed. The paper concludes with an appraisal of the strengths and weaknesses of these new late twentieth century traditions in agrarian political economy, particularly in comparison with the new rural sociology. [ABSTRACT FROM AUTHOR]

Discusses abstracts of articles on Asian-Pacific economics. 'Developmental States in Transition: Adapting, Dismantling, Innovating, Not Normalizing,' by Linda Weiss; 'Convergence, Catch-Up and Growth Sustainability in Asia: Some Pitfalls,' by Jesus Felipe; 'The Evolution and Adaptability of SMEs: The Case of Taiwan,' by Hu Ming-Wen; 'The Illicit Asset Stripping of Chinese State Firms,' by X.L. Ding.

Empirical evidence suggests that use of child labor as domestic help has increased significantly in recent years although the overall incidence of child labor across the globe has declined satisfactorily. This should draw the attention of economists and policymakers because domestic child labor is considered as exploitative and in many cases hazardous. This paper purports to explain this apparently perplexing finding theoretically in terms of a three-sector general equilibrium model with a nontraded sector where only child labor is used to render services to the richer section of the society. The analysis shows how FDI-led economic growth increases the size of the services sector although it lowers the overall incidence of child labor in the economy and improves the welfare of the poor families that supply child labor. Finally, a composite policy has been recommended that can deal with all three aspects favorably. [ABSTRACT FROM AUTHOR]

Using cross-national data for more than two recent decades, this paper examines the effect of military buildups on corruption. Measuring military buildups via military spending and armed forces, and controlling for simultaneity, results consistently find greater military buildups to increase corruption across specifications. However, the level of economic development plays a crucial role, especially with regard to the effect of military forces. Greater state fragility is, ceteris paribus, associated with greater corruption. The influences of other factors are in accord with the literature. [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.)

Recently, the nexus of international development and emotion has received increasing attention from diverse sectors. While scholars from postcolonial, post-structural, and feminist perspectives have long called for increased attention to emotions and the more-than-rational, more recent pieces such as the World Bank's World Development Report 2015 on Mind, Society, and Behavior have also taken up the refrain that 'emotions matter' in development. Whether viewed as motivating factors, explanatory devices, or phenomena to be harnessed and manipulated, emotions are emerging as a key piece in development theory and practice. This paper critically analyzes the ways in which the nexus of emotion and development has been conceptualized from various perspectives. In particular, it raises questions related to geographies of power and control and highlights the implications of this emotional turn for both the theory and practice of development. [ABSTRACT FROM AUTHOR]

The economics literature typically uses counts of casualties as a measure of conflict intensity despite the fact that the units of observation vary considerably in population size. When analysing the impact of conflict on economic growth, the use of counts relies on the assumption that a given number of casualties affects large and small populations in the same way. Using within- and between-country evidence, this paper demonstrates that this standard assumption can be rejected. A per capita model of conflict intensity that captures local effects of violence provides a more consistent empirical framework for both between-country and within-country studies. [ABSTRACT FROM AUTHOR]

This paper examines whether Ghana, with its imperfect markets and institutional difficulties, has benefited from recent liberalization efforts under SAP. Although the liberalization improved the allocative efficiency of the services provided on the financial and foreign exchange markets, the macro benefits appear very minimal. Inflationary trends in the country continue to be influenced principally by changes in output and money with very minor impacts by both interest rate and exchange rate developments. With exports dominated by only one major primary commodity whose producer price is influenced more by political considerations than exchange rate developments, liberalization of the foreign exchange market does not seem to have impacted favourably on exports. On the other hand, the import-dependent economy of Ghana has not been discouraged by rapid depreciation under the liberalization programme. Copyright © 1999 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper considers the pros and cons of establishing stock markets in sub-Saharan African economies at the present stage of their development. It provides theoretical analysis and empirical evidence from both developing and advanced countries to argue that for many African countries such a development would be a costly irrelevance which they can ill afford; for a number of others, it is likely to do more harm than good. The African countries would do better to use their scarce human, material, and institutional resources to improve their banking systems than to promote stock markets. Copyright © 1999 John Wiley & Sons, Ltd. [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]

This paper speculates that a linear causal chain runs from the natural resource endowment to the landholding system, the type of political state, the choice of development strategy and economic performance. It suggests that resource-deficient countries tend to have peasant-dominated landholding systems which foster autonomous political states and growth-promoting economic linkages. Such countries out-perform resource-rich ones which have more varied landholding patterns which emphasise conflicts over rents and foster factional political states and weaker economic linkages. The preoccupation with rents in resource-rich countries impedes beneficial land reform and creates inefficient industry in a counter-productive effort to create non-farm jobs. Resource-deficient countries cannot afford such inefficient transfers and pursue a development strategy which uses scarce resources more effectively. © 1997 by John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The appearance of the first two syntheses of the literature on the economic failure of 'statist' policies in post-colonial Ghana, to 1983, and the subsequent economic liberalization, is an opportune moment at which to consider the state of the debate about the political economy of the country since independence. This has focused on the nature of the socially optimum combination of administrative and market methods of resource allocation in this 'test-case' economy, and about the political conditions which largely determine the extent to which it is achieved. Explicitly or implicitly, both Frimpong-Ansah's (1991) and Rimmer's (1992) books combine the twin traditions of rational choice thought that have been dominant in recent years in the literature on African economic development, market economics and 'new' institutionalist political economy. The paper considers, in turn, the economics and politics of Ghana's economic decline and partial revival. It suggests that, while there is a consensus that 'state failure' was the main cause of Ghana's decline in relation to similarly endowed countries, 1950-83, the question of how far and in what respects the state should retreat from administrative control of resource allocation remains relatively open. For example, while the inconvertibility of the currency seems to have been irredeemably disastrous, the much criticized marketing board system may yet prove worthy of reform rather than abolition. There is also a consensus that the prolongation of what, for the economy as a whole, were disastrously counterproductive policies was to a great extent the result of the subordination of the public interest in economic growth to the sectional and personal interests of governments and their members. However, the paper argues that it is necessary to revise such explanations to take account of two surprisingly neglected points: (a) that economic growth in itself is a major political asset to governments in Africa as elsewhere and (b) that economic decline (as in Ghana 1975-83) requires more explanation than economic stagnation (as in Ghana 1950-75). [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]

There has been a longstanding controversy over the use of net versus gross measures of national product in accounting for economic growth, most recently reflected in several papers which have examined the role of environmental variables. It is argued in this paper that the two measures are not substitutes, but complements which reveal different aspects of the growth process: gross product is the correct output concept for estimating the structure of production, while net product is the correct concept for measuring the welfare consequences of economic growth. An alternative to the conventional Solow growth accounting framework is then presented in which the change in national wealth is decomposed into its component elements. [ABSTRACT FROM AUTHOR]

Using a political ecology framework that explores livelihood vulnerability, this paper analyzes commodification of grapes as an economic development strategy in Southwest China. Ethnographic research found that during the past decade, a majority of households within a village have converted fields to a monocrop of grapes, introduced by the government as part of a program to promote red wine from the region for tourism purposes. Villagers have been motivated to take part due to high economic returns but have found themselves living with less diversified sources of income and increasing use of agricultural chemicals. Villagers display concern for food security as they have moved away from growing subsistence crops and rely heavily on funds produced by grapes for subsistence. Questions are raised regarding long-term sustainability and the outlook of development programs targeting rural farmers as producers of high-value commodities being consumed by China’s growing middle and upper classes. [ABSTRACT FROM AUTHOR]

This paper uses an instrumental variables approach to estimate the relationship between trade openness and economic growth in Sub-Saharan Africa. Instrumental variables estimates show that economic growth has a significant negative contemporaneous effect on trade openness, while trade openness has a significant positive effect on economic growth. A 1 percentage point increase in the ratio of trade over GDP is associated with a short-run increase in growth of approximately 0.5% in a given year; the cumulative long-run effect on the level of GDP per capita is larger, reaching about 2%. [ABSTRACT FROM AUTHOR]

Many economists have long held that market failures create a gap between social and private returns to research and development (R&D), thereby limiting private incentives to invest in R&D. However, this common belief that firms significantly underinvest in R&D is increasingly being challenged, leading the rationale behind public support for private R&D to be questioned. In this paper, we attempt to clarify the perspectives of two sources: the theoretical literature on endogenous growth, and its recent developments in integrating a geographical dimension, and the empirical literature that measures the social returns to R&D in relation to the private returns. Ultimately, we are able to clearly distinguish among different types of market failures and compare their relative impact on the gap between the private and social returns to R&D. Two main conclusions are reached. First, systematic firm underinvestment in R&D is not demonstrated. Second, even though instances of underinvestment do occur, they are mainly explained by surplus appropriability problems rather than by knowledge externalities. This suggests the need for a new policy mix that employs more demand-oriented instruments and is more concentrated on identifying efficient allocations among activities rather than merely increasing global private R&D investment. [ABSTRACT FROM AUTHOR]

Among low- and middle-income countries, there is evidence that populations experiencing rapid political and economic transition have particularly high burdens of disease and disability from mental health conditions. This paper undertakes a political economy analysis of mental health in Vietnam to enhance knowledge translation, notably how both explicit and tacit knowledge can be used to promote evidence-based policy making. It argues that Vietnam's experience illustrates the need to better understand, not only how transition transforms societies, but how it impacts on the mental health needs and care of populations. The political economy of transition in Vietnam has so far given highest priority to economic growth through integration with the world economy and public sector reform. There is a need to recognise that transition in Vietnam poses both a potential threat to the care of people with mental health needs, and an opportunity to develop mental health services appropriate to local contexts. [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]

Small island developing States ( SIDS) have narrow resource bases and are usually extremely reliant on fossil fuel based energy for transport and electricity generation. These island economies are thus particularly vulnerable to the impacts of peak oil and also to climate change, impacts which are likely to not only hamper economic development but also adversely affect the quality of life of local inhabitants. In order to reduce the vulnerability of SIDS to peak oil, an urgent transition to renewable sources of energy is necessary. This paper propounds that the reform of power sector that took place in Caribbean and Pacific SIDS (particularly between 1970 and 2000) should have been viewed as an opportunity to re-orient power producers away from the proclivity to utilise conventional fossil fuel uses. Reasons why reform measures did not result in a substantive transition are put forward. Moreover, recommendations towards facilitating a transition to renewable energy in the power sector through future reforms are proposed. [ABSTRACT FROM AUTHOR]

Spatial models of port system evolution often depict linearly the emergence of hierarchy through successive concentration phases of originally scattered ports. The Chinese case provides a fertile ground for complementing existing works by a long-term perspective, given the early importance of river ports and seaports and the development irregularities caused by periods of closure and openness over time and across such a large land mass. In both qualitative and quantitative ways, this paper describes and analyses the changing spatial pattern of China's port system since the first unified empire (221 bc). Main results underline a certain stability of the port system with regard to the location of main sea-river gateways, notwithstanding important regional shifts from one period to the other. [ABSTRACT FROM AUTHOR]

Adult learning systems have come to be dominated by the view that the essential role of adult learning is to generate the high levels of skills deemed necessary for competitiveness and growth in the globalised economy. This 'education gospel' is underpinned by human capital theory ( HCT) and its contemporary conceptualisation in terms of the knowledge-based economy. Nevertheless, it remains the case that there are significant differences in the strategies of national governments towards adult learning and in patterns of engagement with the learning opportunities that are made available. This paper sets out to explore how this diversity in national systems of adult learning might be addressed analytically. Adult learning is embedded in characteristic regimes of economic and social institutions, which can be understood in terms of a systematic international political economy. In particular, adult learning systems are explored by reference to the models of capitalist organisation elaborated in the neo-institutionalist analysis of 'varieties of capitalism' ( Hall and Soskice, 2001): the liberal market economy and the co-ordinated market economy. A major alternative is provided by Esping- Anderson's (1990; 1999) analysis of 'welfare state regimes'. Moreover, Rubenson and Desjardins (2009) have used this theoretical framework as a means of analysing systematic variations between national adult learning systems. These analyses raise questions about the use of national states as the key unit of analysis. Significant divergences in institutional arrangements and access to opportunities for adult learning (by social group or locality, for example) may be obscured by this method of comparative analysis. Moreover, consideration of the micro-theoretical foundations of these approaches highlights the difficulties in moving beyond the economistic 'rationality' of HCT. The issue here is the extent to which norms of behaviour in relation to engaging in adult learning can be appropriately understood in terms of a relatively homogeneous, national social system, rather than in terms of a much more socially differentiated repertoire of norm-based orientations. [ABSTRACT FROM AUTHOR]

The papers in this special issue represent some of the most comprehensive analyses of the implications of climate change for developing countries undertaken to date. The papers employ a bottoms-up systems approach whereby the implications of climate change are evaluated using structural models of agriculture and infrastructure systems. The authors of the paper hail from multiple disciplines. This comprehensive, multi-disciplinary, structural approach is designed to allow for more robust insight into the potential implications of climate change. The approach also allows for experimentation with alternative policy options for achieving development objectives in the context of climate change. [ABSTRACT FROM AUTHOR]

We determine the properties of the core-periphery model with three regions and compare our results with those of the standard 2-region model. The conditions for the stability of dispersion and concentration are established. As in the 2-region model, dispersion and concentration can be simultaneously stable. We show that the 3-region (2-region) model favours the concentration (dispersion) of economic activity. Furthermore, we provide some results for the n-region model. We show that the stability of concentration of the 2-region model implies that of any model with an even number of regions. Determinamos las propiedades de un modelo núcleo-periferia de tres regiones y comparamos nuestros resultados con los del modelo estándar de dos regiones. Se establecen las condiciones para la estabilidad de la dispersión y la concentración. Al igual que en el modelo de dos regiones, la dispersión y la concentración pueden ser estables simultáneamente. Mostramos que el modelo de tres regiones (dos regiones) favorece la concentración (dispersión) de la actividad económica. Además, aportamos algunos resultados para un modelo n-regional. Mostramos que la estabilidad de la concentración del modelo bi-regional implica eso mismo de cualquier modelo con un número par de regiones. [ABSTRACT FROM AUTHOR]

There is now a substantial empirical literature examining the determinants of aid effectiveness. A large part of this makes inferences based on a regression incorporating aid (as a share of recipient GDP) interacted with some institutional or policy variable. Recently, some authors have questioned the statistical robustness of such regressions, pointing out that results vary according to the way aid is measured and the estimator applied to the data. Moreover, the regression equations used to test hypotheses about the determinants of aid effectiveness are often introduced without any corresponding formal theory. We explore aid-policy interaction terms in the context of a simple theoretical model, showing how different nonlinearities may be conflated. The resulting difficulties in the interpretation of aid-growth regressions are illustrated in the context of a seminal paper in the conditional aid effectiveness literature. One simple change in the way that aid is measured - in per capita terms rather than as a fraction of GDP - completely changes the regression results. This indicates that adding interaction terms to otherwise linear regression equations is an inadequate way of capturing the nonlinearities in the growth process. Our aim is to re-emphasise the importance of grounding. [ABSTRACT FROM AUTHOR]

This paper, devoted to the study of globalisation, analyses two distinct but closely related issues: First, it aims at evaluating disparities in the degree of globalisation observed in a sample of 101 countries over the period 1970-2005. Second, the paper tries to shed some light to the much debated issue of whether globalisation affects economic growth and, in so doing, whether convergence in globalisation brings about convergence in per capita income. The results obtained are both encouraging: on the one side, as it is shown that there has been a clear process of globalisation convergence; on the other, the paper concludes that globalisation has been one of the main drivers of economic growth, thus fostering convergence in per capita income. [ABSTRACT FROM AUTHOR]

This paper examines the effect of humanitarian aid on fertility and economic growth. In an overlapping generations model, where health status in adulthood depends on health in childhood, adult agents allocate their time to work, leisure and childrearing activities. Humanitarian aid influences the probability of survival to adulthood, health in childhood, and the time that adults allocate to childrearing, giving rise to an ambiguous effect on both fertility and growth. An empirical investigation for the period 1973-2007 suggests that humanitarian aid has on average a zero effect on the rates of fertility and of per capita output growth. [ABSTRACT FROM AUTHOR]

The Global Financial Crisis reduced economic growth, impacted equity and credit markets, and increased business risk. To the extent that this increased risk translates into greater uncertainty of companies' ability to continue as going concerns, this should be reflected in audit reports. This paper investigates how the crisis impacted auditor reporting in Australia by examining the period 2005-2009. It finds that the main reason for audit report modification is going concern and that modification rates increased from 12% in 2005-2007 to 18% in 2008 and 22% in 2009. Serious audit report qualification rates remain around 3%. [ABSTRACT FROM AUTHOR]

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

Copyright of Papers in Regional Science 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.)

The establishment of a successful stock market in a developing economy can be a major source of economic growth if it provides development finance by channelling domestic savings and attracting foreign investment. However, this objective is not always met, particularly in very small markets where there are barriers to efficient market operations. A case study of Swaziland and Mozambique illustrates that any potential gains to the domestic investment community are limited if there is insufficient liquidity and the political economy is such that ownership is not truly dispersed but rather remains in the hands of social elites. This paper finds that potential growth of small developing markets is further severely constrained by poverty and wealth inequality and consequently the impact on development is minimal. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

(1247) Johan F. M. Swinnen Dramatic changes took place in agricultural policies in Europe in the 19th and 20th centuries. In the 1860s European nations agreed on a series of trade agreements which spread free trade across the continent. In the 1960s European nations concluded an international agreement which spread heavy government intervention and protection against imports across the continent. This paper quantifies these changes in protection over the course of a century, relates them to changes in policies, and offers a political economy explanation for the growth in agricultural protection in Europe. [ABSTRACT FROM AUTHOR]

This paper examines Lionel Robbins' critical attitude towards formal empirical work from the standpoint of modern econometrics. It argues that his attitude towards empirical work rested on indefensible assumptions and that he failed to realise that the role he saw for empirical work undermined his belief in the primacy of economic theory. This matters because Robbins' attitudes are echoed in modern economics, best exemplified by the calibration methodology of Kydland and Prescott, which is vulnerable to similar criticisms. [ABSTRACT FROM AUTHOR]

Robbins argues that the fundamental propositions of microeconomic theory are deductions from the assumption that individuals act on consistent preferences; this ‘indisputable fact of experience’ does not need to be validated in controlled experiments. While recognising that some neoclassical pioneers based the theory on psychological hedonism, Robbins claims that his own approach of ‘pure theory’ belongs to a parallel and sounder tradition exemplified by Menger and Wicksteed. This paper argues that Robbins' methodological defence of pure theory is incoherent, and that his claim to find an intellectual lineage in the works of Menger and Wicksteed overlooks important discontinuities. [ABSTRACT FROM AUTHOR]

The term ‘Washington Consensus’, as Williamson conceived it, was the lowest common denominator of the reforms that he judged ‘Washington’ could agree were required in Latin America. The term has evolved to denote a different set of policies from those initially conceived. This paper investigates the different versions and interpretations of this controversial term and assesses whether the term itself is suitable and viable or slowly becoming irrelevant and obsolete. Most importantly, the evolution of the term mirrors the evolution of economic thought on economic development for nearly the last two decades. [ABSTRACT FROM AUTHOR]

In this paper, we present the main viewpoints of some historical schools related with the theories on factors of production. Also, we analyse the problems associated with the present theories related to the factors of production and then, introduce some new developments. These new developments which are associated with the theory connected to the six forces of factor of production are described. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper introduces a new measure of dependence or jointness among explanatory variables. Jointness is based on the joint posterior distribution of variables over the model space, thereby taking model uncertainty into account. By looking beyond marginal measures of variable importance, jointness reveals generally unknown forms of dependence. Positive jointness implies that regressors are complements, representing distinct but mutually reinforcing effects. Negative jointness implies that explanatory variables are substitutes and capture similar underlying effects. In a cross-country dataset we show that jointness among 67 determinants of growth is important, affecting inference and informing economic policy. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper reviews the literature on economic development as it relates to indigenous people in the United States and Canada, and focuses on how institutions affect economic development of reservation and reserve economies. Evidence shows that strong property rights to reservation and reserve land and natural resources, whether communal or individual, are and always have been important determinants of productivity. Political and legal institutions that are perceived as stable and predictable to tribal members and to non-Natives also improve economic opportunities for indigenous people living on reservations and reserves. Research reviewed here also shows that culture and acculturation are important in the development process. Although our emphasis is on North America, the findings are applicable to indigenous people in other parts of the world and shed light on growth questions that loom large for developing countries around the world. [ABSTRACT FROM AUTHOR]

Pacific governments seeking to expand national economies are increasingly looking to tourism to provide revenues. At the same time, companies that operate cruise ships are searching for new destinations for increasing numbers of larger, faster ships which they are launching to cater for steadily increasing demand for cruises. The Pacific region appeals to both companies and passengers as a cruise destination. This coincidence would, at first glance, seem to provide an opportunity for a mutually beneficial relationship between companies and governments in the region. But little is presently available to those in the Pacific who must decide what role this form of tourism might play in their future. This paper reviews some of the environmental, economic and societal impacts of cruise ship tourism and concludes that, managed effectively, this form of tourism can yield higher returns with lower risks than some alternatives and could form a part of a sustainable tourism policy. [ABSTRACT FROM AUTHOR]

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