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This paper assesses the relationship between trade openness and economic growth in Africa by accounting for the heterogeneity of African countries. In addition, the paper contributes to the literature on trade openness and economic growth nexus by applying the instrumental variable panel smooth transition regression, a methodology that accounts for nonlinearity and endogeneity in the relationship between the two variables. The results of the empirical analysis reveal that the investment ratio is a channel through which trade openness affects economic growth in the African continent. In addition, the relationship between trade openness and economic growth varies according to the degree of a country's development in Africa. The study finds a negative relationship between openness and growth in low‐income countries. Conversely, for upper‐income countries, the coefficients of trade indicators are positive and statistically significant. The results indicate that African countries are not homogeneous, especially concerning trade openness and economic growth nexus. [ABSTRACT FROM AUTHOR]

The paper empirically investigates the short and long‐run causal relationship between foreign direct investments, credit to the private sector, trade openness, gross national expenditure and economic growth in Namibia. In doing this, the paper employs multivariate Granger‐causality within an Auto‐regression distributed lag‐bounds approach to co‐integration and unrestricted error correction model. The paper finds a strong bi‐directional causal relationship between FDI inflow and economic growth both in the short and the long run. Suggesting that FDI inflow spurs economic growth and economic growth promotes FDI inflow and also, FDI inflow, credit to the private international trade and national expenditure spur economic growth both in the short and the long runs in Namibia. The policy implication therefore is to provide incentives for private sector innovation and production away from the export and import sector. [ABSTRACT FROM AUTHOR]

This paper assesses the stabilization properties of fixed versus flexible exchange rate regimes and aims to answer this research question: Does greater exchange rate flexibility help an economy's adjustment to weather shocks? To address this question, the impact of weather shocks on real per capita GDP growth is quantified under the two alternative exchange rate regimes. We find that although weather shocks are generally detrimental to per capita income growth, the impact is less severe under flexible exchange rate regimes. Moreover, the medium‐term adverse growth impact of a 1°C increase in temperature under a pegged regime is about −1.4 percentage points on average, while under a flexible regime, the impact is less than one half that amount (−0.6 percentage point). This finding bolsters the idea that exchange rate flexibility not only helps mitigate the initial impact of the shock but also promotes a faster recovery. Importantly, there is evidence of nonlinear effects, whereby greater exchange rate flexibility can be more beneficial for EMDCs with hotter climates. In terms of mechanisms, our findings suggest that the depreciation of the nominal exchange rate under a flexible regime supports real export growth. In contrast to standard theoretical predictions, we find that countercyclical fiscal policy may not be effective under pegged regimes amid high debt, highlighting the importance of the policy mix and precautionary (fiscal) buffers. [ABSTRACT FROM AUTHOR]

In our 2011 survey of the literature in the Journal of Economic Surveys on the effect of government size on economic growth in wealthy countries we find a relatively consistent pattern: An increase in government size by 10 percentage points is associated with a 0.5-1 percentage point lower annual growth rate. This conclusion is questioned by Colombier. In this rejoinder we present a rebuttal of Colombier's argument based on a detailed scrutiny of his own statistical evidence and regression results. Furthermore, we note that several new papers that have appeared since our original paper was published give support to our main conclusion. [ABSTRACT FROM AUTHOR]

Against the backdrop of the current political developments in Central and Eastern European (CEE) countries, such as Ukraine, Poland, and Romania, the question arises as to the role played by economic transformation and the resulting innovation linkages in these countries over the last 20 years. The main purpose of this paper is to explore the impact of economic and institutional dimensions on the development of CEE countries, explicitly distinguishing between European Union (EU) members and non‐members, and thus reflecting the differences in institutions and path dependency. Furthermore, the paper contrasts the performance of CEE countries with that of Western European countries. To achieve these objectives, the impact of factors such as innovation, institutions, and political practices on the economic development of 37 European countries from 2000 until 2020 is followed using fixed effects regression and Ordinary least squares (OLS) regression. The results of the analysis show the importance of institutional factors such as low levels of corruption, political freedoms, and intellectual property. The effect of institutional variables was particularly pronounced in the case of non‐EU countries, which indicates the particular importance of the development of stable institutions for achieving higher levels of economic development for this category of countries. [ABSTRACT FROM AUTHOR]

The paper argues that the dynamics of trade induced income convergence depend on the nature of bilateral trade between nations. To justify this argument, the paper presents a comprehensive approach that explicitly accounts for trade among OECD countries (north–north trade), trade between OECD and SSA countries (north–south trade) and trade among SSA countries (south–south trade). The approach also allows for the identification of the direct and indirect effects of bilateral trade on income convergence. The results show that bilateral trade among OECD countries accelerates income convergence both directly and indirectly. This result appears to be consistent with the new trade theories by Krugman, Journal of International Economics, 1979, 9, 469–479; Krugman, American Economic Review, 1980, 70, 950–959. and the intuitions of Heckscher, The effect of foreign trade on the distribution of income 1919, 1950, 1–32 and Ohlin, Interregional and international trade, 1933. The trade‐convergence relationship for OECD to SSA trade is the strongest both directly and indirectly. This is the empirical evidence that the nature of this bilateral trade, promotes one directional knowledge spillover from developed to developing countries, which enables developing countries to adopt new technologies and grow faster than their rich counterparts. However, bilateral trade among SSA countries does not have any significant effect on income convergence. [ABSTRACT FROM AUTHOR]

A large volume of econometric literature has studied the effects of economic globalisation on economic growth around the world. Reported results, however, vary considerably, which makes it difficult to draw valid conclusions. This paper applies meta‐analysis and meta‐regression methods to a novel dataset consisting of 5542 estimates on globalisation–growth effects reported in 516 primary studies. We find evidence for publication selection bias in favour of positive growth effects of globalisation. After correcting for this bias, the size of the effect of economic globalisation on output growth is more than halved, but it remains positive. The growth‐promoting effect, however, is due to trade globalisation, as we cannot reject the hypothesis that the impact of financial globalisation on growth is, on average, zero. The meta‐regression results also reveal that the growth effects of economic globalisation have varied over time, and that education and institutions serve as significant moderator variables. [ABSTRACT FROM AUTHOR]

There has been ongoing interest in China's economic growth. What were the drivers of China's economic growth in past years? What policies were used to promote China's economic growth? Although different lenses may be used to understand and explain China's economic growth, this paper draws on historical, theoretical, and empirical perspectives to discuss the nexus between China's regional policies and economic growth. First, we review the evolution of China's regional policy and the policy's changing emphasis in different development stages, from balanced, unbalanced, and coordinated development to synergistic development. Then we construct a theoretical model to illustrate the impact of regional policy on the local economy and conduct an empirical examination with a case study of regional policy using regression discontinuity design. This paper analyzes the concept of regional policy and the underpinning logic of economic growth and presents practical approaches to formulate a better regional policy framework. [ABSTRACT FROM AUTHOR]

This paper surveys the literature on the relationship between finance and growth, from the initial simple correlation through debates on causality and channels of impact to the more recent threshold analysis. The gaps in the revisionism regarding the relationship between finance and growth are critically teased out, not least neglect of the effects of speculative finance in developing countries where a positive nexus continues to hold sway in the threshold analysis. The paper argues that the literature has focused on pursuit of a positive nexus, with inadequate attention to institutional context, which is prerequisite for enhancing a positive relationship. It has also narrowed drastically the complexity of cause and effect and ignored broader analytical approaches to the relationship between finance and growth. The classical political economy debate on finance productiveness is drawn upon, in which positive contribution is based on real output, as a critical point of departure for why greater emphasis ought to be placed on institutional context to enhance the contribution of finance to growth. [ABSTRACT FROM AUTHOR]

Bank regulations affect the behaviour of credit and money creation; hence, they are essential for economic growth and stability. This paper develops an analytical model of the monetary circuit to show the macroeconomic effects of money creation under bank regulations. It describes the equilibrium in which banks create money in accordance with capital adequacy ratios or net stable funding ratios. This study reveals the equilibrium economic growth rate and debt level. In addition, this paper demonstrates how bank regulations influence firm capital structures, and the conditions for firms using debt and filing for bankruptcy. Results show that bank regulations can transfer risk from banks to firms. In fact, this study identifies a channel through which banks actively influence the macroeconomy through their money creation. [ABSTRACT FROM AUTHOR]

The number of holidays differs significantly across Indian states. Moreover, some of the governing political parties have been accused of using holidays as a tool either to mollify disgruntled workers or to woo voters before the state elections. In this context, this paper explores the relationship between the number of holidays and economic growth across 24 Indian states, spanning the period 2008–2016, by employing a panel model analysis. The paper presents evidence suggesting that holidays seem to affect growth negatively in the rich states but are inconsequential for the growth performance of the poor states. [ABSTRACT FROM AUTHOR]

This paper examines the four‐way linkages between innovation, trade openness, financial development and economic growth using panel‐VAR approach for 11 European countries over the period 2001‐2016. Most importantly, the findings revealed that there is a unidirectional relationship between economic growth and financial development, between trade and economic growth and between innovation and financial development. The findings also revealed a negative relationship between innovation and economic growth and between trade and economic growth. The paper concludes that further regulation of financial systems and the quality of funding are important ingredients to foster economic development. The paper also concludes that country‐specific characteristics can play an important role in fostering innovation and productivity. Furthermore, policymakers should improve institutional quality and improve the regulatory environment in order to benefit more from trade openness. Also, policy makers need to use innovation incentives for local companies in order to counteract the negative effects induced by market opening. [ABSTRACT FROM AUTHOR]

Various types of international connectivity serve as channels for the transmission of knowledge, which, in turn, is critical for long‐run economic growth. However, how much knowledge is transmitted to a country is not only the result of the overall level of connectivity, but also to whom a country is connected. For example, being well connected to an economy with wide‐reaching global connections is likely to be a stronger conduit for knowledge transfers than being connected to an isolated economy. Likewise, connections are likely to complement each other. This wider definition of connectivity, referred to as multi‐dimensional connectivity, is explored in this study as it applies to Europe and Central Asia (ECA). This paper shows that multi‐dimensional connectivity is an economically and statistically important determinant of future economic growth. The paper further discusses the potential risks and transfer of shocks that can result from cross‐country economic connectivity. Furthermore, it provides some examples of how policy tools can be designed to leverage the benefits of connectivity channels and mitigate their risks. [ABSTRACT FROM AUTHOR]

This paper dealt with the regulatory and policy variables influencing Foreign Direct Investment (FDI) in South Africa. Since the advent of democracy 26 years ago, South Africa had its own share of benefits from democratic rule. This was the period of great success, and three free and fair elections were held without violence and intimidation. The South African government started using the "inflation targeting monetary policy framework" to have an environment where inflation will stabilise. Although in literature it is stated that many governments have adopted this policy in order to lure investors in through their attractive risk‐free returns in their investment portfolios. The paper used unobtrusive techniques to analyse secondary data. The South African investment climate remains faced with challenges, which curtail the full attainment of conditions conducive for quality FDI. When regulations are made less cumbersome, it becomes simpler for investment to flow into the country, and international and local entrepreneurs prosper as the ease of doing business improves. South Africa does not have a complex regulatory framework, but its challenges stem from a lack of regulatory transparency, which impeded investment. TISA the agency, which DTI created to reduce obstacles encountered in FDI offers foreign investors clarification on the regulatory and legal environment. Many countries have also cancelled their BITs with South Africa, including Ecuador, Bolivia, and Venezuela. South Africa's business environment and its investment climate are largely dependent on the events that occur in the political arena and the economic environment. [ABSTRACT FROM AUTHOR]

Cooperatives play important role in economic development via multiple channels, particularly, in developing countries' cases. Considering this fact, Nepal's constitution 2017 has incorporated the cooperative as one of the three pillars of her economy. This paper aims to analyze the role of cooperatives in the economic development of Nepal. For this, first, this paper documents the trend and pattern of Nepalese cooperatives' evolving structure, then moves to the econometric estimation to analyze the role of cooperatives in economic growth employing an advanced methodology. Looking at the properties of time series data for the period of 49 years from 1970 to 2018, the autoregressive distributed lag (ARDL) approach of cointegration is employed. The major finding is that the development of the cooperatives has a long‐run relationship with economic growth. However, the focus should be seen as on the involvement of many people in the cooperatives' activities rather than just on amassing the cooperatives' capital. The results also suggest that there is a need for the attention of policymakers so ensure that share capital contributes to economic growth. Therefore, the areas of priorities and scope of work of cooperatives need to be reconsidered when formulating new policies related to cooperatives. [ABSTRACT FROM AUTHOR]

Over recent decades, the growing research on social diversity at country level has striven to explain several outcomes such as the differences in income across countries and the origins of civil conflicts. The literature employs a wide range of indices to measure social diversity that hinders the comparison of the results with respect to their effects on socio‐economic performance. This paper intends to disentangle such a variety of indices and their applications. To achieve this goal, we have collected the social diversity indices used in cross‐country studies, and have ascertained not only their similarities and differences, and the relationships between them, but also their main applications. Studies at country level have been selected that construct their own indices and that make their databases available. We show that the dimension and the index chosen to measure social diversity, the level of disaggregation of the social groups, and the geographical unit of analysis explain the tangle of indices and the mixed results achieved by the literature focused on socio‐economic outcomes of social diversity. This paper enables the suitable evaluation and comparison of the effects of social diversity and the selection of the appropriate index depending on the analysis to be carried out. [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.)

This paper studies consumption and income poverty in rural China during the period from 1995 to 2018 using Chinese Household Income Project (CHIP) data. It finds that the wellbeing of Chinese rural residents has improved significantly during this period as part of China's rapid industrialization and economic growth. The incidence of poverty has fallen substantially, either measured in terms of income or consumption. However, consumption poverty is not consistent with income poverty. It was the substantial growth of consumption or income that brought about the sharp fall in poverty, whereas the redistribution of consumption or income in particular during the period from 2002 to 2018 was unfavorable for poverty reduction. A large number of rural household workers moved away from household farming to participate in local or urban non‐farming activities, resulting in a fall in poverty in the households that engaged purely in farming, and economic growth led to a sharp fall in poverty within different rural household groups. [ABSTRACT FROM AUTHOR]

Debate exists over the role that public investment must play in economic recovery and economic growth. The underlying idea behind this debate has much to do with the value of output elasticity of public capital. This article presents a meta-analysis of this elasticity, which was performed by considering almost 2,000 elasticities previously estimated from 145 papers. In addition, for each elasticity, we also take into account some 30 associated features relative to the methodology used for each case or relative to the characteristics of data samples. The obtained results reveal an average short-term elasticity of 0.13 (0.16 in the long term). We also find evidence of the importance of the methodology adopted for the obtained results, as well as the publication bias. Finally, we find a minor reduction in the value of the elasticity as public capital endowments increase. The results obtained highlight the positive and important effect of public investment on productivity. As a results of the value obtained, public investment will be self-financed in the long-term because of generated returns. But, we also find that the effectiveness of public investment has a clear influence of the institutional context. [ABSTRACT FROM AUTHOR]

This paper reviews the environmental Kuznets curve (EKC) literature, which postulates an inverted‐U association between pollutants and economic output, suggesting that economic growth initially leads to greater environmental deterioration at low levels of income, but that factors may eventually cause an improvement in environmental quality with further economic development. A systematic review was conducted using the bibliographic map method to identify the main research streams and to identify possible gaps and areas for future research. Six research streams were identified: testing the basic EKC equation, critique of EKC, determinants of EKC, review of EKC, a nexus of income–energy consumption and new environmental indicators. [ABSTRACT FROM AUTHOR]

This paper reconsiders the classical theoretical question on the relationship between urbanisation and development and the effects of administrative status and path dependency on urbanisation using the dual‐track urbanisation framework. It examines the different effects of the determinants of urbanisation on state‐sponsored and spontaneous urbanisation in Fujian Province of China during the 2000–2010 period. Various explanatory variables describing administrative status and demographic and economic conditions were employed to explain the levels of dual‐track urbanisation using a multivariate statistical analysis of 67 county‐level units. It was found that administrative status affected both state‐sponsored and spontaneous urbanisation. The initial level of urbanisation had strong positive effects on state‐sponsored and spontaneous urbanisation. Most importantly, the development level was the most significant factor in state‐sponsored urbanisation in Fujian, although the secondary sector of the economy had the strongest effect on spontaneous urbanisation. It appears that state‐sponsored urbanisation is strongly path dependent and has advanced in highly developed areas, whereas spontaneous urbanisation is more dynamic and led by the expansion of the manufacturing sector. The paper reveals the different mechanisms of state‐sponsored and spontaneous urbanisation processes in China. [ABSTRACT FROM AUTHOR]

New evidence on the relationships between economic freedoms and poverty traps is provided. Methodologically, a new way to classify countries into clusters is used, which stresses the relative position of economies with respect to each other. The paper investigates whether economic freedoms have any impact on shifts from one cluster to another, towards either better or worse situations. Moreover, it analyzes the contribution of economic freedoms to avoid falling into a poverty trap. The impacts of the five macro‐components of the index are studied separately. The results show that economic freedoms help economies to grow and to avoid poverty traps. [ABSTRACT FROM AUTHOR]

The association between social trust and long‐run economic growth is well documented. However, which determinants of growth are affected by social trust remains an open question. This paper therefore explores to which extent social trust affects the rate of factor accumulation versus productivity improvements. Previous studies indicate that social trust could affect both the accumulation of physical and human capital and the rate of productivity increases. Existing literature also indicates that part of the growth effects may be due to how trust affects the quality of formal institutions. The effects of trust are estimated in a panel of 64 countries observed in 5‐year periods between 1977 and 2017, using growth accounting to separate patterns of growth. The results unequivocally show that social trust predominantly affects long‐run growth by affecting the growth of productivity and that only a small share of that effect runs through the effects of trust on formal institutions. [ABSTRACT FROM AUTHOR]

This paper argues that although Allyn Young was influenced by Alfred Marshall, he was an original economic thinker in his own right. The objective of this paper is to bring out their similarities as well as differences. This theoretical comparison will throw light on questions such as whether increasing returns are microeconomic or macroeconomic or whether they arise due to economies of scale at the firm level or are due to other factors. Marshall and Young had many similarities like both had an evolutionary perspective towards society, both had a process view of competition, both had almost common views on the method of economics and both saw economics as useful in solving practical problems. However, while Marshall emphasised statics (by assuming ceteris paribus) and analysed change mostly at the microeconomic level, Young emphasised disequilibrium and had a generalised conception of increasing returns. [ABSTRACT FROM AUTHOR]

Nowadays, economic growth is influenced by many domestic and foreign global issues, concerning the decrease of industrial output for the rise in economic inequality and the weakening of the overall condition in the countries. The role of economic growth is based on human capital and investment. Therefore, in this paper, the human capital and economic management system (HC‐EMS) has been proposed to enhance the country's quality based on the capital structure investment. HC explores the role of command and its significance in the production and creation aspects of human capital such that an area can grow creatively. HC‐EMS analysed critical monitoring systems for developing human resources and the high‐tech and creative economic sectors and presented suggestions for change. Besides, there is a need to prove the shortcomings and benefits of human resource development systems and statistical approaches for gathering and analysing information. The impact of financial services and financial transactions may vary; therefore, it is critically important for fostering economic growth. The experimental result suggests that the proposed HC‐EMS achieves the highest growth development ratio than other existing methods. [ABSTRACT FROM AUTHOR]

The economic impact of resource investments into higher education has been the focus of considerable research in recent years. Many contributions analyse the strength of the connection between economic development and higher education at the local level and the conditions which make certain systems more effective and efficient than others. In this paper, we provide a systematic bibliometric review of the available literature on the subject, various dimensions of this complex issue, constructing and analysing a map of variables used by selected researchers in the field. A summary of knowledge gaps, research limitations, topics explored and applied methods is provided to envisage future research in this field. [ABSTRACT FROM AUTHOR]

This paper investigates the economic effects of improved broadband access at the firm level. Using a detailed micro data set from 2002 to 2017, we cover almost 20,000 small, medium and large Greek firms and test the relationship between their economic performance with the availability and use of broadband services at the postcode level. We trace the effect of increased access and speeds across industrial sectors and firm sizes. Our results highlight that increases in broadband speeds can improve the financial performance of adopting small firms (sales, profits and labour productivity) by 2% for every speed doubling beyond basic broadband access. Unlike other output metrics, small firms do not generate increasing shares of intangible capital through this adoption process. These effects, which remain strong across a range of robustness checks, suggest that the digital transition for small firms should focus on the causes of adoption (including training and skill development) and move beyond policies aimed at increased broadband availability alone. [ABSTRACT FROM AUTHOR]

In this paper, first, we measure Chinese time preferences as a whole and by region based on the Euler equation under an assumption of rational expectation. The calculating results show that the rates of Chinese time preference are markedly low for most hypothetical risk attitudes over the concerning period, and there exists heterogeneity in time preferences across regions in China. Second, compared with the estimates for other advanced and emerging countries under the same assumptions and same methodology, the rates of Chinese time preference are the lowest for any given risk preference, suggesting that Chinese are more patient during the time of our examinations. Third, our measured time preferences are powerful in predicting China's high saving rates and rapid growth rates of gross domestic product. In addition, the differences in economic growth rates between China and other sample countries can be partially explained by the differences of estimated cross‐countries time preferences within our sample period. Fourth, we investigate the additional factors that affect the Chinese time preferences. Our study provides insights on the regional and international differences in economic growth rates and other economic outcomes. [ABSTRACT FROM AUTHOR]

In the face of mounting global concerns over climate change and its far‐reaching consequences, this research paper examines the effect of economic growth, natural resources, energy sources, trade, environment‐related technologies, energy intensity, and environmental tax on carbon dioxide (CO2) emissions. This study employs the Method of Moments Quantile Regression approach with data from 108 countries between 1990 and 2020. The empirical outcomes revealed a positive relationship between economic growth and CO2 emissions, following an inverted U‐shaped pattern known as the Environmental Kuznets Curve. Energy intensity and the use of fossil fuels both raise CO₂ emissions, whereas environmental taxes and the generation of renewable energy significantly reduce carbon emissions, especially at higher quantiles. Hence, implementing higher environmental tax levels and promoting cleaner energy sources mitigate pollution. Trade and the development of environment‐related technologies appear to contribute to mitigating CO2 emissions, yet their statistical significance remains inconclusive. The findings emphasize the importance of sustainable development strategies that balance economic growth with environmental protection. Policymakers should prioritize promoting renewable energy, improving energy efficiency, and reassessing environmental tax levels to align with climate change goals. [ABSTRACT FROM AUTHOR]

In this paper we examine productivity trends, drivers of productivity growth and pro‐productivity policies across the G‐20 economies since 1970. While we find distinctly different productivity growth dynamics between G‐20 economies and over time, one common observation is a widely shared slowdown in labour productivity growth since the 2010s underpinned by lower (or even negative) total factor productivity growth. Moreover, the growth in capital per worker hour has also begun to level off. We develop a typology of pro‐productivity policies and argue that policies for investment and technological change need strengthening to support a revival of productivity growth. Such policies should include a balanced approach to stronger technological progress and more rapid diffusion; a strengthening of investment, especially in intangibles and public services; and greater attention for human capital. We also argue for stronger institutions and capabilities that allow for dynamic learning about pro‐productivity policies across countries and over time. [ABSTRACT FROM AUTHOR]

This paper examines the long‐term causal impact of Abenomics, a comprehensive policy package aiming to revitalise the Japanese economy. Using the Synthetic Control Method (SCM), the study assesses the effects of Abenomics across a variety of economic indicators. The findings reveal mixed impacts, with no evidence of Abenomics reducing budget deficits or boosting exports, but a positive effect on real GDP per capita paired with a reduction in the unemployment rate. The evidence regarding the effect on labor force participation rates is weaker, with primarily statistically insignificant increases observed. These results offer insights into the effectiveness of comprehensive policy interventions and provide lessons for policymakers globally in the midst of a global economic slowdown. [ABSTRACT FROM AUTHOR]

This paper examines the effects of China's population control policy on its economic transitions and long‐run equilibrium theoretically and quantitatively. The model‐predicted technological progress is assumed to be driven by population size and education level. With population control, the total number of children decreases; however, the average education level increases. Since the overall effect on technological progress is ambiguous, we performed a quantitative analysis of the model. The results demonstrate that population, technological progress, and income per capita move in endogenous cycles. The impact of China's population control policy depends on the timing of its implementation. [ABSTRACT FROM AUTHOR]

This paper presents one of the first empirical studies that employ the regression kink model with an unknown threshold to estimate the turning point in the relationship between inflation and economic growth. To deal with the asymptotic non‐normality of the regression function, we use a numerical delta bootstrap method and inference methods in the construction of confidence intervals for the regression function. Our estimated threshold suggests that, in the Democratic Republic of Congo, inflation rates lower than 17.2% would drive economic growth, but any inflation rate beyond that threshold will harm the growth. The Congolese policymakers should be aware of this threshold in the implementation of any inflation‐targeting policy instruments or strategies. [ABSTRACT FROM AUTHOR]

This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, briefly discuss the relevance of the RER as an instrument of development policy, provide an overview of the macroeconomic and microeconomic mechanisms that link the RER to trade and long‐run growth and development, analyse the challenges – especially the disconnect between theory and data – that often arise in empirical applications, and discuss new avenues for future research. In the process, we present some updated estimates and illustrative figures. The mechanisms through which the RER influences long‐run growth and structural change remains a promising area of research and the relevance of individual channels in different contexts deserves much more careful investigation. Greater data availability should help fill some of these gaps in our understanding. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the effect of financial development and renewable energy consumption on consumption‐based CO2 emissions in Chile while controlling for economic growth and electricity consumption. Based on the aim of the paper, autoregressive distributed lag (ARDL) bounds with Kripfganz and Schneider's (2018) approximations, fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), and gradual shift causality tests are applied in this study. The outcomes clearly reveal that while financial development and renewable energy consumption reduce the consumption‐based CO2 emissions in Chile, economic growth and electricity consumption increase consumption‐based carbon emissions. The gradual shift causality test provides consistent results with ARDL, FMOLS, and DOLS estimators. Therefore, policymakers in Chile should dynamically encourage the research and development of low‐carbon technologies and renewable energy investments while imported nonrenewable energy sources level should be targeted, and especially those sectors which are more energy‐intensive and causing to increase in consumption‐based CO2 emissions. [ABSTRACT FROM AUTHOR]

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

This paper presents an integrated overview of the literature linking institutions, financial development, and economic growth. From the large body of research on institutional development, the paper first selects those contributions that make it possible to study the role of institutional arrangements in ameliorating/worsening the information frictions and transaction costs that characterize the development of financial markets. The paper then investigates the theoretical mechanisms by which these specific frictions affect economic growth and presents the stock of empirical evidence quantifying the impact of institutions on growth through financial development. [ABSTRACT FROM AUTHOR]

This paper explores the convergence hypothesis of Mexican states with the national level and with one another from 1940 to 2015. Interpreting convergence as catching‐up, we also capture other types of regular evolution, namely, invariance of the income gap over time, permanent absence of the gap, and steadily increasing gap (deterministic divergence). As a tool of econometric analysis, we use a novel model that describes convergence by asymptotically decaying trends and covers other types of evolution as particular cases. The results obtained suggest one or other type of regularity to be peculiar to roughly ca. 40% of income gaps both with the national level and between states. However, convergence is observed only in 6% to 15% of cases. Regarding convergence at the national level, an additional analysis by three 50‐year subperiod shows that in many cases the type of evolution changes for the same state from one subperiod to another. Analyzing convergence between states, we find that convergence between neighboring states is more frequent than between other states; however, the effect of the neighborhood is not too strong. [ABSTRACT FROM AUTHOR]

Global warming and other significant climatic changes arising from the accumulation of carbon dioxide and other greenhouse gases have placed great policy puzzles on whether to slow or not to slow gross domestic product (GDP) growth. This paper presents and estimates empirical models of growth using standard tools of growth empirics for 23 OECD countries over the period 1990–2017. The main objective is to examine the role of green energy consumption and investment on economic growth. Using the Method of Moments Quantile Regression (MMQR) with fixed effects, empirical results suggest that green energy consumption and investment—in the sense of renewable energy consumption and expenditure in renewable energy research and development (R&D)—have small, although positive effects on economic growth. These effects are heterogeneous, leading to asymmetric patterns over the conditional quantile distribution of per‐capita GDP with stronger effects found in the lower quantiles. The implication of our findings is that capacity utilization in green energy consumption and investment has not been developed to a viable level that will mitigate greenhouse effects and spur sustainable development in the long run. [ABSTRACT FROM AUTHOR]

Over the last four decades, the relative price of investment goods in Africa has gone through a relatively large decrease, resulting in a steady convergence towards the levels recorded in high‐income countries. This fact begs the following question: To what extent might the relative price decrease be a driving force behind the economic performance of this continent? The paper addresses this question from the perspective of a panel ARDL approach, using the Solow growth model—augmented with barriers to investment—as a framework. The results reveal that a one‐unit decrease in the relative price of investment leads, in the long term, to a 4% increase in per capita GDP, an increase that could be neutralised by a 6.5 percentage points decrease in the savings rate. The findings contribute to the case for a policy mix that combines policies geared towards reducing investment distortions with those promoting savings mobilisation. [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.)

Economic historians have recently treated Islamic institutions as "growth retarding," "averse to change," "path dependent," "lacking creative destruction" and "extractive" rather than "inclusive" and blamed their failure to change for the underdevelopment of the Middle East. This paper argues for a different approach to Islamic institutions which implies that they boosted economic growth. The paper explores changes in economic structures, a transition in population levels from high to low and a transition to individual property rights and provides economic indicators of growth. Articulated via Islamic law, legally sanctioned birth control and women's property rights were instrumental in assuring low fertility rates and equitable and well‐distributed income in the population. The paper concludes theoretically and empirically that Islamic institutions were innovative, amenable to change and efficient. [ABSTRACT FROM AUTHOR]

Argentina is the only country in the world that was developed in 1900 and developing in 2000. Although there is widespread consensus on the occurrence and uniqueness of this decline, an intense debate remains on its timing and underlying causes. This paper provides a first systematic investigation of the timing of the Argentine debacle. It uses an array of econometric tests for structural breaks and a range of GDP growth series covering 1886–2003. The main conclusion is the dating of two key structural breaks (in 1918 and 1948), which we argue support explanations for the debacle that highlight the slowdown of domestic financial development and trade protectionism (after 1918) and of institutional development (after 1948). [ABSTRACT FROM AUTHOR]

The main aim of this paper is to examine the threshold impact of financial development and trade liberalization on income inequality as a measure of sustainable development in a sample of developed and developing countries using panel threshold analysis. Two major dimensions of financial development are considered: liquid liabilities and stock market capitalization. The empirical results revealed that financial development reduces income inequality only in countries where their GDP per capita is above ~US$11,000. It has no significant impact in reducing inequality in developing countries. This implies that institutional reforms in less developed and developing countries are necessary in order to reap the gains from financial development. Trade liberalization is found to have a positive impact on income inequality for both country groups—that is, trade benefits have worsened the income distribution. [ABSTRACT FROM AUTHOR]

Divergence between the evolution of GDP per capita and the income of a "typical" household as measured in household surveys is giving rise to a range of serious concerns, especially in the USA. This paper investigates the extent of that divergence and the factors that contribute to it across 27 OECD countries, using data from OECD National Accounts and the Luxembourg Income Study. While GDP per capita has risen faster than median household income in most of these countries over the period these data cover, the size of that divergence varied very substantially, with the USA a clear outlier. The paper distinguishes a number of factors contributing to such a divergence, and finds wide variation across countries in the impact of the various factors. Further, both the extent of that divergence and the role of the various contributory factors vary widely over time for most of the countries studied. These findings have serious implications for the monitoring and assessment of changes in household incomes and living standards over time. [ABSTRACT FROM AUTHOR]

This paper empirically investigates the impact of rent‐seeking on economic growth by introducing an augmented Solow growth model over the period 2010–2015. Static and dynamic panel regression models are employed to investigate this impact for the six geographic regions, namely, Sub‐Saharan Africa, East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, and South Asia according to the World Bank's classification. Results reveal that the impact of control for rent‐seeking on economic growth is found highly significant and positive for most of the regions however, no significant effect could detect on the control for rent‐seeking on economic growth for advanced economies. Results also show that there exists mixed evidence between gross fixed capital as a percentage of gross domestic product, Employment ratio and economic growth for the six geographic regions. The results can be interpreted in favour of the advanced economies that they can relatively handle the rent‐seeking problem compared to the relatively weak economies due to much better political and economic stability, better administrative mechanism, stronger law system, more adequate public services, better health, and education system as well as more advanced infrastructure. [ABSTRACT FROM AUTHOR]

If unauthorized resource use is prevented, managing marine resources by allocating property rights may match economic and environmental conservation incentives. However, because of the developing exploitation of marine resources and accompanying pollution, species' living conditions in Europe's waters are changing more quickly than before. By considering the roles of fisheries productivity, intellectual property rights, intellectual capital rights, market size, governance, and economic growth from 1990 to 2022, this paper aims to investigate the dynamic effect of property rights factors on the sustainability of the fisheries industry in 27 European countries. At higher quantiles, the findings showed a significant positive association between governance and fisheries sustainability adopting a new method, the MMQR with fixed effects, the Method of Moments Quantile Regression. In addition, in EU27 nations, the impact of intellectual property rights was favorable and statistically significant from the first to ninth quantiles. The findings show that the EU14 developed nations have more excellent governance and intellectual capital rights than the EU13 developing countries, significantly benefiting fisheries sustainability. In the same way that market size and economic growth condense fisheries sustainability in EU14 developed and EU13 developing countries, it has been discovered that intellectual property rights do the same across all quantiles, supporting the growth hypothesis for fisheries‐producing countries. The findings specifically show that the beneficial solid impact of intellectual property rights, market size, and economic development on the sustainability of fisheries is more significant in EU13 developing nations than in EU14 developed countries. These results provide policymakers with helpful information for promoting property rights aspects in EU14 and EU13 nations via effective green technologies in the fisheries sector to meet sustainable development objectives. [ABSTRACT FROM AUTHOR]

Using a sample of 45 Sub‐Saharan African countries over the 2000–2019 period, this paper contributes to the ongoing debate on the health effect of economic growth. Specifically, it investigates the direct effect of economic growth on child mortality as well as the indirect effect through environmental degradation. Findings from panel‐corrected standard errors, feasible generalized least squares, and Driscoll and Kraay standard errors show that economic growth has significantly decreased infant and under‐five mortality rates in Sub‐Saharan Africa. However, results from the mediation analysis reveal that, beyond its direct effect, economic growth has an indirect effect on under‐five mortality through greenhouse gas emissions. Implementing green growth policies should help minimize the indirect negative effect of economic growth on child mortality in Sub‐Saharan African countries. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of the main criterion employed by the European Commission for the allocation of the largest portion of Structural Funds, based on the threshold of the 75% of European Union (EU) average gross domestic product (GDP) per capita. We focus on the 2014–2020 programming period and on EU‐15 regions to analyze if this criterion has penalized some of them, as a consequence of the 2004 EU enlargement, which has represented an exogenous shock in the allocation process, due to the economic backwardness of new member states. Through the application of Synthetic Control Methods and Difference‐in‐Differences estimators at different geographical scales, we show that regions that did not obtain the less developed status in both the programming period 2007–2013 and 2014–2020, but that would have obtained it in the period 2014–2020 without the 2004 EU enlargement, experienced a significantly lower GDP per capita growth between −10.5% and −5.7%. Conversely, territories that in the period 2014–2020 lost the less developed status, previously obtained in the time frame 2007–2013, were not characterized by a significantly lower economic growth, providing some evidence of the effectiveness of the safety net. [ABSTRACT FROM AUTHOR]

This paper sets the contributions to this special issue in the context of a large and rapidly growing literature. It argues that although our understanding of the relationships between entrepreneurship, innovation, geography and economic growth is much clearer than in the past, there remains much that needs to be explored. [ABSTRACT FROM AUTHOR]