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This article evaluates the relevance of dependency theory for understanding contemporary development challenges, especially in the light of changes in the global economy over the past 50 years. In order to do so, the article rectifies previous misunderstandings of the scholarship and offers a new definition of dependency theory as a research programme, rather than a singular theory. Four core tenets of this research programme are identified: a global historical approach; theorizing of the polarizing tendencies of global capitalism; a focus on structures of production; and a focus on the specific constraints faced by peripheral economies. While each of these elements can be found in many contemporary theories, what makes dependency theory unique — and a particularly strong research programme — is the combination of these elements. The article demonstrates how this approach provides a deep and broad understanding that is necessary to appreciate the persistence of uneven development with reference to two case studies, namely successful industrialization in South Korea, and how the fragmentation of global value chains has impacted industrialization in Indonesia. Finally, the article argues that approaching these kinds of cases through a dependency research programme can contribute to a fruitful renewal of development studies. [ABSTRACT FROM AUTHOR]

We present a multicountry theory of economic growth and R&D‐driven technological progress in which countries are connected by a network of knowledge exchange. Technological progress in any country depends on the state of technology in the countries it exchanges knowledge with. The diffusion of knowledge throughout the world explains a period of increasing world inequality, followed by decreasing relative inequality. Knowledge diffusion through a small world network produces an extraordinary diversity of country growth performances, including the overtaking of individual countries and the replacement of the technologically leading country in the course of world development. [ABSTRACT FROM AUTHOR]

Economic development, which refers to the process of progressive transformation of an economy, is a multifaceted term without a universal definition. This article presents the constitutive elements of economic development: growth, distribution, and innovation. Economic development has been ubiquitous with the economic progress of "developing" countries, but the changing economic circumstances of "developed" countries, such as stagnant growth, regional economic disparity within developed countries, and deepening income gaps among citizens of developed countries, have made this term also relevant to address the economic problems of developed countries. The mechanisms of economic development, with respect to both developed and developing countries, are elusive, and the existing theories have not been able to explain these mechanisms of economic development adequately. This article reviews the existing theories and presents a new theoretical framework to explain the process of economic development. [ABSTRACT FROM AUTHOR]

The so‐called "new growth theory" is characterized by the now Nobel Prize winning insight that ideas are a nonrival input to and output from endogenous investment in innovation. Nonrivalry implies increasing returns to scale, but this also unintentionally creates an empirically disputed scale effect that a growing population implies an ever‐increasing growth rate. Empirical evidence supports fully‐endogenous growth without scale effects, but theoretical issues sustain the decades‐long dispute over exactly how to negate the scale effect. This article surveys theoretical approaches to resolving the scale effect and shows how four generations of endogenous growth theory are defined by the maturing of modeling techniques for constraining increasing returns. The synthesis suggests that the dispute over scale effects is really a narrative about how the powerful application of increasing returns has followed a standard theoretical development pattern. This implies that a fourth generation is now emerging that negates the scale effect while retaining fully‐endogenous growth without relying on assumptions of linearity. Instead, the market response to excessive increasing returns to innovation constrains explosive growth by expanding the market, rather than by a linear assumption. This latest class of endogenous growth models may be the final chapter to resolving the long‐running dispute. [ABSTRACT FROM AUTHOR]

Copyright of Politics & 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.)

We study the evolution of topics in economics and their geographical specialization by analyzing 13,233 papers from seven top journals between 1985 and 2012 and their forward citations. The share of U.S. publications declines from 75% to 64% with a corresponding increase of the European share from 12% to 24%. We use topic modeling and document the evolution of the discipline over 27 years. We estimate, with a quasi‐structural model, the citation lag distribution for 18 different topics and three large geographical areas. The modal citation lag is about 6.7 years in the entire sample and 4.8 years for citations from the top 100 journals. We quantify (1) the home bias effect in citations, (2) how it fades away over time, (3) the long lasting impact of U.S. publications vis‐à‐vis other geographical areas, and (4) the higher speed of diffusion and faster obsolescence in the United States. [ABSTRACT FROM AUTHOR]

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna. [ABSTRACT FROM AUTHOR]

Scholars of agrarian change have long debated the nature of capitalist transition in the countryside, including whether the deepened interlinking of local, national, and transnational economic activities make past trajectories of agrarian transformation unlikely to reoccur in the present. This essay makes the case that Giovanni Arrighi's work has much to add to our understanding of the agrarian question in global historical perspective. We focus in particular on Arrighi's research on trajectories of change in the Calabrian region of southern Italy, and his essay "Capitalist Development in Hostile Environments." In this piece, Arrighi and co‐author Fortunata Piselli develop two key insights. The first is that the pathways to capitalism are diverse, non‐linear, and historically contingent such that within one country—or, in the case of Italy, a single subnational region—multiple trajectories can be found. The second is that the outcomes of capitalist transition vary based on a country's position in the international hierarchy of wealth, meaning that agrarian transformation is compatible with both economic development and underdevelopment. We describe the three methodological principles that enabled Arrighi to develop his analysis of capitalist transition and explain how the papers collected in this special issue reflect and extend the Arrighian approach to agrarian political economy. [ABSTRACT FROM AUTHOR]

Drawing on studies on the economics of conflict, this paper reviews the literature on maritime and territorial disputes; and it examines an array of economic implications associated with territorial and maritime disputes. These include adverse effects on certain economic and development outcomes arising from possible armed confrontation, with some of these possibly lingering in the aftermath of conflict. There are also various economic disruptions and costs associated with these disputes, emphasizing how they also affect the livelihoods of resource users in the disputed areas. A clearer understanding of these economic links could help inform and motivate policymakers on mitigating the risks of conflict. Based on the review of evidence herein, the economic implications of conflict in terms of foregone average trade among the country pairs considered in the West Philippine Sea/South China Sea (in 1985 dollars) – which differ in important ways but hint at some common channels of impact – could range from US$ 909.3 million to US$ 98.8 billion. More broadly, the impacts on a disrupted global production chain can easily amplify these results even further, affecting global growth prospects for many decades, according to experience. [ABSTRACT FROM AUTHOR]

Abstract: This article is based on a panel discussion on the contribution of the economics of transition literature to the broader understanding of economic and social development. All panel participants have been working in the field for decades and made important contributions to this literature. The transition experience was a social experiment on a scale not seen before, and many lessons were learned that travel beyond the specific region. Important contributions in areas such as political economy, contract theory, and the sequencing and complementarity of reforms were discussed. It was concluded that there is little reason at this point to consider economics of transition and development economics as separate subfields as they share the same intellectual objective, and complement each other in our understanding of the development process. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, I formulate a simple North–South R&D‐based growth model where final goods firms in the North endogenously determine the range of international outsourcing of intermediate goods to the South. I show that a fall in the trade cost (through trade liberalization) of intermediate goods in the North: (i) reduces the wage of the North relative to that of the South; (ii) increases the outsourced variety of intermediate goods in the North; and (iii) stimulates Northern R&D activity and economic growth in both countries. By conducting welfare analysis, I also show that a decline in the trade cost of intermediate goods in the North improves welfare in the South more than in the North. [ABSTRACT FROM AUTHOR]

The evolution of Taiwan's political economy seems paradoxical. From the 1960s to 1980s, Taiwan went through economic transformations that have been called an “economic miracle.” This was followed by a successful democratic transition from the late 1980s to mid‐1990s that might be considered a “political miracle.” In the early 1990s, Taiwan could be regarded as a success story and a model for developing nations. Yet, Taiwan was soon to “enter troubled waters” marked by growing conflict and threat from China (PRC), fears about the “hollowing out” of its previously vaunted economy, and vicious polarization and gridlock in its domestic politics. We argue that many of the challenges facing Taiwan derive from unanticipated and unintended costs of its previous successes. In particular, what worked to promote successful economic and political development at one point later became counterproductive in the changed circumstances created by the country's rapid developmental trajectory. Our basic research questions, hence, are whether the challenges currently facing Taiwan's political economy can be explained by the country's past pattern of development and, if so, whether these linkages appear to be connected to success or failures in Taiwan's history. [ABSTRACT FROM AUTHOR]

Empirical evidence is scarce on whether firms set profit‐maximizing prices, as these typically depend delicately on details of difficult‐to‐observe strategic interactions. To avoid this problem, this paper provides a detailed case study of the Swedish Tobacco Monopoly's pricing with data from 1916 to 1959. Prices are found to be below those that maximize the expected net present value of profits. However, the difference between actual and optimal price diminishes over time, and towards the end of the period the two are almost indistinguishable. The net present value of actual profits is approximately 60% of what could have been obtained. Overall, the pricing patterns appear more consistent with the firm learning about demand conditions than being the result of maximization of something other than profits. [ABSTRACT FROM AUTHOR]

This paper revisits the UK productivity puzzle using new data on outputs and inputs and clarifying the role of output mismeasurement, input growth and industry effects. Our data indicate an implied labour productivity gap of 13 percentage points in 2011 relative to the productivity level on pre‐recession trends. We find that: (a) the labour productivity puzzle is a TFP puzzle, since it is not explained by the contributions of labour or capital services; (b) the reallocation of labour between industries deepens rather than explains the puzzle (i.e. there has been a reallocation of hours away from low‐productivity industries and toward high productivity industries); (c) capitalization of R&D does not explain the productivity puzzle; (d) assuming increased scrapping rates since the recession, a 25% (50%) increase in depreciation rates post‐2009 can potentially explain 15% (31%) of the productivity puzzle; (e) industry data show that 35% of the TFP puzzle can be explained by weak TFP growth in the oil & gas and finance sectors; and (f) cyclical effects via factor utilization could potentially explain 17% of the productivity puzzle. Continued weakness in finance would suggest a future lowering of TFP growth to around 0.8% p.a. from a baseline of 0.9% p.a. [ABSTRACT FROM AUTHOR]

This paper studies the effectiveness of debt relief to stimulate economic growth in the most heavily indebted poor countries. We develop a neoclassical framework with a conflict of interest between the altruistic donor and the recipient government, and model conditionality as an imperfectly enforceable dynamic contract. In contrast to the recent practice of fully cancelling debt, optimal incentive‐compatible conditionality is accompanied by a concessionality level that implies a combination of subsidized loans and outright grants. The optimal concessionality level depends on the recipient's access to international financial markets and on the strength of the conflict of interest. Incentive‐compatible transfers with optimal concessionality levels generate substantial welfare gains. If the donor does not implement the optimal concessionality level and provides subsidized loans only, then the effectiveness of transfers decreases in the long run with severe welfare implications. In contrast, transfers are less effective in the short run if the donor offers outright grants only. [ABSTRACT FROM AUTHOR]

Abstract: Despite phenomenal technological progress and exponential growth in computing power, economic growth remains comparative sluggish. In this paper, we investigate two core issues: (1) is there really no connection between ICT and national economic growth? and (2) what factors moderate the ICT–growth relationship? We apply meta‐regression analysis to 466 estimates drawn from 59 econometric studies that explore the Solow or Productivity Paradox that there is little impact of ICT on economic growth and productivity. We explore the differential impact of ICT on developed and developing countries and the differential impact of different types of ICT: landlines, cell phones, computer technology and Internet access. After accommodating potential econometric misspecification bias and publication selection bias, we detect evidence that ICT has indeed contributed positively to economic growth, at least on average. Both developed and developing countries benefit from landline and cell technologies, with cell technologies’ growth effect approximately twice as strong as landlines. However, developed countries gain significantly more from computing than do developing countries. In contrast, we find little evidence that the Internet has had a positive impact on growth. [ABSTRACT FROM AUTHOR]

Abstract: Proponents of social capital theory have long argued not only that it is in the best interest of civic life to build social capital but also that social capital is vital for the economic health of communities. This has been confirmed by recent research showing that social capital, especially in its bridging form, is positively associated with job creation at the metropolitan statistical area level. At the same time, social capital is often viewed as something either inherent or absent within a community. This article takes on that assumption by presenting a policy‐based approach to developing social capital. It provides two theoretical explanations for how social capital affects economic development and identifies four lessons for economic development practitioners to use to enhance social capital. These research‐based recommendations for economic development practitioners and policy makers seek to improve the social capital and, consequently, the economic development of their community. [ABSTRACT FROM AUTHOR]

Abstract: The aim of this article is to comment on ‘Healthier Australians’, Chapter 2 in the Productivity Commission's report Shifting the Dial. The report elevates health and wellbeing to a central role in lifting the nation's productivity. The main recommendations centre around better information in the health care system and improving the architecture of the system to ensure more decentralised decision making. If acted upon, these solid building blocks could provide significant opportunities to save lives and improve the health of the population and the wealth of the country. [ABSTRACT FROM AUTHOR]

As the entrepreneurship discipline grows, it increasingly faces unique research challenges. Recently, ‘interactive, activity based, cognitively hot, compassionate, and prosocial’ approaches to the study of entrepreneurship have arisen to meet these challenges. This paper builds on recent discussions by emphasizing, in addition, the persistent value of economic foundations for a progressive research agenda in entrepreneurship. A realist economic perspective is both fundamental for entrepreneurship and complements newer research trends. It has also stood the test of time: economic questions relating to methodological individualism, uncertainty, judgment, opportunities, social motivations, and incentives have not only set the tone for past research, but continue to offer starting points and insights for contemporary work. This paper thus makes two contributions: first, it explains the relevance of each of these concepts for contemporary work in entrepreneurship studies, and second, it uses them to pose novel research questions. These questions complement the abovementioned emerging trends in entrepreneurship. [ABSTRACT FROM AUTHOR]

This paper utilizes a novel dynamic propensity score matching approach for multiple cohorts of U.S. counties between 1989 and 1999 to examine local economy resilience to rare natural disasters. Affected counties are sorted based on disaster intensity and are carefully matched to similar counties that did not experience a disaster. A difference-in-difference estimator compares trends of affected counties' postdisaster business establishments, employment, and payroll to counterfactual trends in the matched counties. All affected counties experienced short-run drops in economic activity that was particularly noticeable in higher-intensity disasters. In the longer run, less distressed counties returned to their estimated counterfactual trends, but countieswith lower predisaster socioeconomic conditions still lagged in growth, particularly in cases of lowerintensity disasters. Policymakers can use this information to better prepare responses to future disasters. [ABSTRACT FROM AUTHOR]

Abstract: This study examines the dynamic relationship between oil revenue, government spending and economic growth in Nigeria. Since the discovery of oil, oil proceeds have dominated the country's federation account and have improved public spending. In this paper, we analyse if the huge government spending has improved the rate of economic growth. To do this, the multivariate vector autoregression framework with special attention to Generalised Impulse Response Function is adopted in analysing the annual data of oil revenue, total government expenditure and real Gross Domestic Product from 1980 to 2015. We find evidence that oil receipts remain the major route which public spending is financed and the fundamental source for growth. Hence, there is need for the government to diversify the sources of foreign exchange inflow of the country. The diversification of the economy is required to insulate it from external shocks. It is recommended for Nigeria to explore ways of reviving its huge agricultural potential which has been neglected since the discovery of oil in addition to exploring its rich untapped solid minerals deposit in order to promote diversification of the economy away from a mono cultural product base. [ABSTRACT FROM AUTHOR]

Abstract: The role of creativity in local economic development has been widely discussed. The evidence on this linkage is, however, mixed. This work tries to highlight the nexus by taking into consideration a new aspect, that is, the multidimensional nature of creativity and the potential synergic and complementary effects of creative talents of different nature. The merging of talents is, indeed, a source of original, complex and synergic ideas which are at the basis of the positive relation between creativity and local development. The work addresses this issue conceptually and proves the expectations through an empirical application on Italian provinces (NUTS 3). [ABSTRACT FROM AUTHOR]

ABSTRACT: Perceptions regarding the importance of mental health are shifting at a global level. Once described as an ‘invisible problem’ in international development, mental health is now being framed as one of the most pressing development issues of our time. Concern over the historical absence of mental health from the development agenda — despite its being regarded as a major obstacle to development — has led to its recent inclusion in the UN Sustainable Development Goals (SDGs). This article critically examines three intersecting axes key to its inclusion in the SDGs: 1) the conceptualization and calculation of the contribution of mental disorder to the global burden of disease; 2) the quantification of mental disorder as an economic burden; and 3) the relationship between mental distress and poverty. The article highlights the urgent need to foster a more nuanced understanding of the interplay between mental health and development, and shows how, at times, interventions in the two fields work together in producing reductionist, economistic, individualized and psychologized responses to poverty. [ABSTRACT FROM AUTHOR]

Abstract: Despite the importance of remittances in total international flows, the conclusion of the studies on the relationship between remittances and financial development, is still not completely unanimous, particularly in Latin America and the Caribbean. However, financial development matters for growth and poverty alleviation and financial inclusion have many beneficial effects for households. We examine the relationship between remittances and financial sector development with several dynamic panel data methods. We find a positive, significant, and robust bidirectional link between remittances and financial development for the panel of 32 countries. [ABSTRACT FROM AUTHOR]

Abstract: Corruption has fierce impacts on economic and societal development and is subject to a vast range of institutional, jurisdictional, societal, and economic conditions. It is this paper's aim to provide a reassessment and a comprehensive state‐of‐the‐art survey of existing literature on corruption and its causes and effects. A particularly strong focus is put on presenting and discussing insights resulting from empirical research and contrasting recent with older findings. [ABSTRACT FROM AUTHOR]

Abstract: The development of start‐up communities is seen as critical to the successful development of entrepreneurship in a region. However, it remains unclear what exactly start‐up communities are and how they can be facilitated. Ambiguity concerning the geographical scale and membership of start‐up communities leads to different conceptualisations. In this paper, we apply communities of practice (CoP) theory to understand how conceptualisations of start‐up communities work and how they can be facilitated. To this end, we qualitatively study start‐up communities in Sydney, Melbourne and Canberra, Australia. Our results show that start‐up communities that are confined to a particular workspace strongly resemble a CoP. Furthermore, many elements of CoPs can also be found in regional start‐up communities. Finally, we find that workspace communities have more direct and top‐down facilitation activities, while regional start‐up communities have more indirect and bottom‐up facilitation activities. [ABSTRACT FROM AUTHOR]

Abstract: This paper explores the broader setting of urban and economic development that links ports and cities in Europe and aims at enhancing our understanding of the port‐city interface. A relational view is taken for linking local developments and policies with overarching, more remote spheres of influence and impact, which can be considered both beneficial and critical for the port and the city. In order to illustrate the argument, a framework of three issues is applied to discuss the port‐city interface: first, the role of ports as economic engines of their wider region; second, the cruise ship industry as a market segment that re‐connects port and city; third, semi‐political bodies and institutions that play key roles as intermediaries and knowledge brokers. The paper finally discusses the implications of relationality for governing the port‐city interface. [ABSTRACT FROM AUTHOR]

Abstract: This paper studies the role played by the quality of property rights in the linkages of international capital flows into sub‐Saharan African (SSA) economies. Using panel data of 36 SSA countries over the period 1996–2015 and the ARDL procedure with the Pooled Mean Group regression method appropriate for non‐stationary panel data estimation, we account for the joint effects of property rights quality and openness to foreign capital flows on economic growth. We uncover the existence of a property rights quality threshold beyond which property rights either amplifies the spillovers effects or attenuates the negative effect of capital flows on economic growth. For instance, it takes a level of property rights of at least 60 to have a positive long‐term impact of capital flows on economic growth in natural resource‐poor African countries. The quality of property rights matters more to obtain spillover effects of capital flows on growth in natural resource‐poor countries than in their peer natural resource‐rich countries. Finally, with regard to the countries' income levels, capital flows have significant long‐term spillovers effects on economic growth in advanced African economies than in their low‐income peers. [ABSTRACT FROM AUTHOR]

Abstract: Policy makers and academics frequently emphasize a positive link between city size and economic growth. The empirical literature on the relationship, however, is scarce and uses rough indicators for the size of a country's cities, while ignoring factors that are increasingly considered to shape this relationship. In this paper, we employ a panel of 113 countries between 1980 and 2010 to explore whether 1) there are certain city sizes that are growth enhancing and 2) how additional factors highlighted in the literature impact the city size/growth relationship. The results suggest a nonlinear relationship which is dependent on the country's size. In contrast to the prevailing view that large cities are growth‐inducing, for a majority of countries relatively small cities of up to 3 million inhabitants are more conducive to economic growth. A large share of the urban population in cities of more than 10 million inhabitants is only growth promoting in countries with an urban population of 28.5 million and more. In addition, the relationship is highly context‐dependent: a high share of industries that benefit from agglomeration economies, a well‐developed urban infrastructure, and an adequate level of governance effectiveness allow countries to take advantage of agglomeration benefits from larger cities. [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]

Objective: The objectives of this study were to examine (1) the linkage from airports to regional talent distribution and (2) the effect of talent on regional economic development. Methods: Using the data collected in Wisconsin at the municipal level, a subcounty level, in a region of the North Central United States from 1970 to 2010 and the American Community Survey 2006–2010 five‐year estimates, and random effects models and structural equation models, we employ descriptive and inferential statistics to examine the linkage from airports to talent to regional economic development. Results: We find that the farther a location is away from the airport, the lower its talent share tends to be, while greater passenger flow at the nearest airport increases a location's talent share. Given the quantity of passenger flow, a longer distance from the airport also reduces a location's talent share. The results furthermore suggest that economic development is impacted positively by passenger flow and talent share and negatively by distance to an airport. Conclusion: Our results underscore the intermediate role of talent between airports and regional economic development; building the linkage from airports to talent within the context of regional economic development provides important insights for local policy making aimed at attracting talented migrants. [ABSTRACT FROM AUTHOR]

Research Summary: We reexamine and explore the modern view of inequality against entrepreneurial market process theories, which leads us to three key assertions. First, we question the validity of income inequality as a proxy for true inequality (i.e., inequality of individual well‐being), observing nonlinearity between the two constructs. Second, we explore the entrepreneurial microfoundations of growing and shrinking inequality in market societies, arguing that individual inequality is primarily the outcome of abnormal gains from disequilibrating creative destructive processes. These shifts are temporary, however, as equilibrating (arbitraging) entrepreneurship competes away monopoly profits. Growing inequality trends, then, are seen primarily as the result of increasingly large, but also shorter, waves of creative destruction. Finally, we reconsider the issue of the injustice of inequality through this market process lens. Managerial summary: We contribute three arguments to the debate over economic inequality. We are (or ought to be) concerned over differences in individual well‐being, not income. Studies of income inequality can be misleading. We argue that a key and so far overlooked source of economic inequality is entrepreneurship. Disruptive entrepreneurship (via innovation) redistributes economic resources away from the present industry, reallocating them in a more unequal redistribution, with the successful disruptor capturing an unequal share of resources. Imitative entrepreneurship, however, tends to mitigate this inequality, competing away abnormal profits while expanding new products’ diffusion among consumers. Finally, we observe that economic inequality may not be as unjust as previously thought, and we caution against corrective policy that might inhibit entrepreneurship. [ABSTRACT FROM AUTHOR]

This paper investigates the finance-growth nexus in Italy over a period of more than forty years (1965-2009). After a review of the theoretical and empirical literature, the paper provides evidence that the aggregate indicators of financial depth, constructed by Beck et al. () and widely used in the literature, played no significant role in spurring economic growth, after controlling for the main determinants of growth and corrected for endogeneity biases. The indicator of private credit to GDP-considered the most important measure of financial development-adversely affected growth in the period studied. By contrast, financial development indicators have a positive impact when are associated directly with the real investment rate. The results are robust to the inclusion of various controls and changes in the conditioning set. [ABSTRACT FROM AUTHOR]

Abstract: Kyrgyzstan and Macedonia have experienced a reasonable increase in remittances over the last twenty‐five years. Subsequently, the extent to which remittances can be instrumental for economic development of the two countries has gained serious attention in recent development dialogues. The aim of this study is to examine the impact of remittances versus financial development on the economic growth of the two counties, complementing the burgeoning interest and focus on remittances for policy. The short‐run and the long‐run effects and the causality dynamics of remittances and financial development, are explored. The results show a long‐run positive impact of remittances on the economic growth of these countries. The impact of financial development is negative, significant only for Kyrgyzstan and not statistically significant for Macedonia. The causality results show that remittances support economic growth for Kyrgyzstan, whereas economic growth appears to propel remittances for Macedonia. [ABSTRACT FROM AUTHOR]

Copyright of Irrigation & Drainage 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.)

Japan has failed to escape from deflation despite an extraordinary monetary policy easing over the past 4 years. Monetary easing undoubtedly stimulated aggregate demand, leading to an improvement in the output gap. However, since the Phillips curve was almost flat, prices have hardly reacted at all. Against this background, the key question is why prices were so sticky. To examine this, we use sectoral price data for Japan and seven other countries including the USA, and use these data to compare the shape of the price change distribution across the eight countries. Our main finding is that Japan differs significantly from the other countries in that the mode of the distribution is very close to zero for Japan, while it is near 2% for other countries. This suggests that while in the USA and other countries the 'default' is for firms to raise prices by about 2% each year, in Japan the default is that, as a result of prolonged deflation, firms keep their prices unchanged. [ABSTRACT FROM AUTHOR]

The second arrow of Abenomics is flexible fiscal policy. However, it does not mean just fiscal stimulus as the Abe administration decided on the fiscal consolidation target of achieving a primary surplus by fiscal year 2020. Improving the primary balance implies making government debt more sustainable. Although the consumption tax rate was raised from 5% to 8% in April 2014, the Abe administration has decided twice to postpone increasing the consumption tax from 8% to 10%. In addition, a fiscal stimulus package was implemented. We use a Fiscal Stance Index to examine fiscal policy from the viewpoint of fiscal sustainability and a Markov switching model to examine fiscal policy from the viewpoint of the fiscal theory of the price level, and find that the Abe's fiscal stance is not Ricardian. [ABSTRACT FROM AUTHOR]

The present paper estimates the effect of the Abe Cabinet's Womanomics policies that aimed to increase female labor supply and keep women on a career path. The policies are surveyed, and the effects are estimated using microdata from the Labor Force Survey combined with data at the prefectural level on day care provision. A difference-in-difference (DD) method is applied to uncover the impacts of the Abe Cabinet's policies. The rapid increase in the provision of infant care, especially in the urban area, has contributed to a strong increase in the labor participation of mothers with young children. In addition, DD method estimates show a strong increase in mothers with infants staying in permanent-contract regular employment. A significant shortening of work hours of workers, especially of parents with infants, is observed, which enabled working mothers to maintain their employment status. A change in the gender wage gap in the Japanese labor market is observed, but much progress is still required to close the large wage gap. [ABSTRACT FROM AUTHOR]

Trade policy, in particular, the Trans-Pacific Partnership Agreement (TPP), has been a centerpiece of the Abe administration's economic strategy. The TPP's contributions to Japan's growth strategy include: (i) creating trade and investment opportunities abroad for Japanese companies through ambitious liberalization targets; (ii) advancing domestic reforms - with the largest service and agricultural liberalization commitments to date; and (iii) increasing bargaining leverage in other trade negotiations. But the domestic reform goals of Abenomics in agriculture have come up short due to opposition from domestic lobbies. American trade politics - which culminated in the US withdrawal from the TPP - have upended the goals of trade policy under Abenomics. Japan's best option in this new environment is to deliver on high quality, multi-party trade agreements: concluding negotiations with Europe; scaling up the ambition of Regional Comprehensive Economic Partnership; and salvaging a TPP 11. The merits of a bilateral free trade agreement with the USA will depend on how the Trump administration operationalizes its America First policy. [ABSTRACT FROM AUTHOR]

As a symbol of regulations as 'solid as bedrock,' Japanese agriculture is a key target for structural reform under the Abe administration's 'Abenomics' growth strategy. Its reform proposals have encompassed long-standing rice production regulations, agricultural organizations, including the agricultural cooperatives (JA), and the controlled system of milk distribution. The government also seeks to promote agricultural exports and farmers' participation in processing and distributing agricultural products. Led by the Prime Minister's Office, and taking advantage of changes in the political environment of agriculture that have weakened the political power of farmers and JA, the government has launched a reform offensive with variable impact: progress has been made in some areas (e.g. JA reform) but little change in others (such as rice production adjustment). The most significant challenge lies ahead in reforming the farmland system, which is yet to be tackled. [ABSTRACT FROM AUTHOR]

Japan is known to have an exceptionally low level of inward foreign direct investment (FDI). The promotion of inward FDI is one of the policy goals of Abenomics structural reforms. This present paper studies the accumulation of Japan's inward FDI stock during the first 3 years of Abenomics (2012-2015), and finds no evidence that Japan's inward FDI stock increased more than the trend before Abenomics started would have predicted. A comparison of the main policies for promoting inward FDI that have been implemented to the real and perceived impediments to inward FDI reveals that it may be advisable to shift the emphasis of the policy to address more regulatory and administrative issues and to reduce the cost of doing business in Japan. [ABSTRACT FROM AUTHOR]

The article discusses the low inward foreign direct investment (FDI) in Japan after taking into account its size and geographical or cultural distance from potential investors. Topics discussed include an empirical assessment of the impact of Abenomics on Japan's ability to attract inward, the gains for Japan from investment in its sluggish service sector, and a disconnect between the conditions amenable to policy intervention.

ABSTRACT: This article brings a political economy perspective to the field of Data for Development (D4D). It highlights the fact that many projects involve extracting data from African‐based organizations for expert analysis in advanced economies. This extraction is justified on the basis that it is being used for humanitarian purposes. Key actors including the UN Global Pulse and World Economic Forum have lobbied for a governance framework emphasizing greater emission, personalization and centralization of data. The article shows how this approach enables the strategies of multinational corporations which are aiming to become data custodians of Africa's emerging economies. Little attention has been paid to the geographical distribution of capacity building nor to the ways in which data‐driven restructuring may alter existing livelihoods. As African economies become increasingly ‘digital’, data will become a source of power in economic governance. Current frameworks amount to a kind of industrial policy that supports the learning and innovation of foreign firms. The article aims to move D4D away from the focus on humanitarianism towards economic development, considering the opportunities for African citizens to benefit from their data as a source of revenue, knowledge and power. The conclusion suggests lines of inquiry for taking research further. [ABSTRACT FROM AUTHOR]

Abstract: Empirical results on the links between trade openness and economic growth often suggest that, in the long run, more outward‐oriented countries register better economic growth. However, a similar level of trade openness can hide different types of trade structures. The aim of this paper was to enrich the way of measuring trade openness taking into account two different dimensions of countries’ integration in world trade: export quality and export variety. Based on the estimation of an endogenous growth model on a panel of 169 countries between 1988 and 2014 using a generalised method of moments estimator, our results confirm that countries exporting higher quality products and new varieties grow more rapidly. More importantly, we find a non‐linear pattern between the export ratio and the quality of the export basket, suggesting that openness to trade may impact growth negatively for countries which are specialised in low‐quality products. A non‐linear relationship between export variety, the export ratio and growth is also found, suggesting that countries increasing their exports will grow more rapidly after reaching a certain degree of the extensive margin of exports. [ABSTRACT FROM AUTHOR]

I construct a monthly index of economic uncertainty for Australia. Economic uncertainty rose to historically high levels during the financial crisis and remained elevated until late 2013. The index is: higher around recessions, elections, monetary policy surprises and some major events; tends to increase faster than it decreases; and is driven by both domestic and foreign factors. I use the index to assess how uncertainty affects the Australian economy. Consistent with the 'real options' channel of uncertainty, I find that it reduces investment and employment growth. Similarly, uncertainty raises the household saving ratio, consistent with the 'precautionary savings' channel. [ABSTRACT FROM AUTHOR]

Between 1957 and 1990, nearly 100 nuclear reactors were constructed throughout the U.S., and nuclear power currently accounts for 20 percent of electricity production nationwide. Nuclear plants are often constructed in small communities for which they constitute a large source of employment and income. To date, 24 nuclear reactors have undergone decommissioning, and more are expected in the future, particularly as nuclear reactors age and face increasingly strict regulations. This paper examines the effects of nuclear decommissioning over time at the county-level on measures of employment, income, and population using difference-in-differences regression and propensity score matching. Panel data are obtained from the U.S. Census Bureau, and cover the years 1975-2014. The analysis finds that nuclear decommissioning is associated with positive and statistically significant increases in employment and per capita income over time. Results suggest that nuclear decommissioning may actually be a positive force in regional economic development, and concludes with limitations of the approach and implications for future research. As an emerging area of research, this paper is meant to build on previous work, as well as to provide a basis for further discussion and debate on the economic future of nuclear host communities and regional economies. [ABSTRACT FROM AUTHOR]

This article investigates the links between commodity price bubbles and macroeconomic factors, with an application to the agricultural commodity markets in China from 2006 to 2014. Price bubbles are identified using a newly developed, recursive right-tailed unit root test. A Zero-inflated Poisson model is used to analyze the factors contributing to bubbles. Results show that (a) there were speculative bubbles in most Chinese agricultural commodity futures markets during the sample period, though their presence was infrequent; (b) economic growth, money supply, and inflation have positive effects on bubble occurrences, while interest rates have a negative effect; and (c) among all macroeconomic factors considered, economic growth and money supply have the greatest impact in triggering bubbles. Our findings shed new light on the nature and formation of bubbles in the Chinese agricultural commodity markets. [ABSTRACT FROM AUTHOR]

A stylized prediction of the development economics discourse is that informality will disappear with development, and yet in the last 20 years conventional measures of informality, far from declining, have either remained stagnant or have actually increased. This includes countries such as India where economic growth has been at historically high levels. What exactly is informality and what are its magnitudes and trends? What are the causes of informality and why is it not decreasing as predicted by standard theories of development? What are the consequences for inclusive economic growth of a large and increasing informal sector? What are feasible and desirable policy responses to informality? These are the questions that motivate this broad based overview of informality. The questions will be addressed based on recent and ongoing research on India and globally. [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]