Economic Growth under a Self-Interested Central Planner and Transition to a Market Economy

1997 ◽  
Vol 24 (2) ◽  
pp. 121-139 ◽  
Author(s):  
Bryan W. Roberts ◽  
Alvaro Rodriguez
Keyword(s):  
Economic Growth ◽  
Market Economy ◽  
Central Planner

Institution building and institutional voids

2016 ◽  
Vol 11 (1) ◽  
pp. 18-41 ◽  
Author(s):  
Sheila M. Puffer ◽  
Daniel J McCarthy ◽  
Alfred M Jaeger
Keyword(s):  
Economic Growth ◽  
Institutional Theory ◽  
Market Economy ◽  
Emerging Economies ◽  
Emerging Market ◽  
Institution Building ◽  
Institutional Voids ◽  
Formal Institutions ◽  
Content Type ◽  
Bric Countries

Purpose – The purpose of this paper is to present a comparative analysis of institutions and institutional voids in Russia, Brazil, and Poland over the decades of the 1980s through to 2015. The paper asserts that Russia and Brazil could learn much from Poland regarding formal institution building and formal institutional voids that cause problems like corruption and limit economic growth. Design/methodology/approach – A comparative case study approach is utilized to assess the relative success of the three emerging market countries in transitioning to a market economy, viewed through the lens of institutional theory. Findings – Poland’s experience in building successful formal institutions and mitigating major institutional voids can be instructive for Russia and Brazil which have shown far less success, and correspondingly less sustained economic growth. Research limitations/implications – This paper demonstrates the value of applying institutional theory to analyze the progress of emerging economies in transitioning to a market economy. Practical implications – This country comparison can prove valuable to other emerging economies seeking a successful transition to a market economy. Social implications – Since institutions are the fabric of any society, the emphasis on institutions in this paper can have positive implications for society in emerging markets. Originality/value – This paper is an original comparison of two BRIC countries with a smaller emerging economy, utilizing institutional theory. Factors contributing to Poland’s success are compared to Russia and Brazil to assess how those countries might be positively informed by Poland’s experience in building and strengthening sustainable formal institutions as well as avoiding institutional voids and their associated problems.

CONNECTIVITY AND ECONOMIC GROWTH

2016 ◽  
Vol 20 (8) ◽  
pp. 2148-2172
Author(s):  
Adriaan van Zon ◽  
Evans Mupela
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Theoretical Model ◽  
Scale Effect ◽  
Production Costs ◽  
Communication Costs ◽  
Central Planner ◽  
Simple Theoretical Model ◽  
State Growth ◽  
Connected Communities

We present a simple theoretical model that illustrates the benefits of regional connectivity and specialization for growth. Starting with one community, we show how welfare measured by utility per head increases as the number of connected communities increases. We assume a common connectivity infrastructure through which a central planner is able to add new communities to the pool of already connected communities, a costly but rewarding activity that is funded by levying a tax on those already connected. We find that increasing production costs lead to faster transitions toward the steady state, whereas increasing transportation and communication costs tend to lengthen the transition. The results point to reductions in transportation and communication costs, in particular, as a suitable vehicle for speeding up growth and underline the existence of a positive scale effect that induces integration and reinforces both transitional and steady state growth.

scholarly journals Government support of small businesses in the 2020 crisis conditions from the market approach viewpoint

2020 ◽  
Vol 208 ◽  
pp. 03037
Author(s):  
E.R. Zakirova ◽  
N. Yu. Lebedeva ◽  
N.V. Pogosyan
Keyword(s):  
Economic Growth ◽  
Small Business ◽  
Market Economy ◽  
State Policy ◽  
Small Businesses ◽  
Business Development ◽  
Government Support ◽  
Current State ◽  
Market Approach ◽  
Crisis Conditions

The paper offers a situational overview of small business as a driver of economic growth in Russia during the 2020 crisis and the main aspects of current state policy on market-based support of that sector. The analysis also highlights major barriers that have arisen lately impeding the efficiency of governmental efforts to support small business. However, new aspects stimulating business development in market economy emerge together with the obstacles.

scholarly journals China and the United States

2021 ◽  
pp. 257-283
Author(s):  
Roy van der Weide ◽  
Ambar Narayan
Keyword(s):  
United States ◽  
Economic Growth ◽  
Market Economy ◽  
The United States ◽  
International Standards ◽  
Human Potential ◽  
Socioeconomic Mobility ◽  
Economic Output ◽  
Rapid Economic Growth ◽  
The Us

The United States and China are the world’s largest economies. Together they are responsible for about one-third of the world’s economic output. This chapter aims to examine whether the two economic giants are also lands of opportunity where resources are allocated in a way that minimizes unrealized human potential. Our analysis shows that despite stark differences in their levels of development, the US and China report remarkably similar levels of socioeconomic mobility—levels considered low by international standards. The US’s level of mobility has historically been low. Before it embarked on its transition from planned to market economy, socioeconomic mobility was relatively high in China. However, as it underwent a period of rapid economic growth, China’s socioeconomic mobility declined significantly. The chapter concludes that the world’s two major economic powers have converged to a low level of socioeconomic mobility where talent from disadvantaged backgrounds is excluded.

scholarly journals Price stability - major macroeconomic objective

2021 ◽  
pp. 72-75
Author(s):  
Grigore Duhlicher ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Market Economy ◽  
Basic Element ◽  
Price Stability ◽  
Major Objective ◽  
Economic Framework ◽  
Market Economy System ◽  
Governance Process ◽  
Economy System

Price is a basic element of the market economy system and has become a leading economic category, due to its functions within it. Ensuring price stability is a major objective of the governance process, as it contributes to creating a relatively stable economic framework that allows for economic development and ensuring a sustained level of economic growth. The global economic crises, in parallel with the regional political instability, aggravated by the devastating consequences of the pandemic situation, emphasize once again the importance of the dynamics of price developments on the macroeconomic situations of contemporary states.

scholarly journals Russian Financial Market: Is there Potential for Stimulating Economic Growth?

Vestnik NSUEM ◽  
2020 ◽  
pp. 86-104
Author(s):  
A. V. Novikov ◽  
I. Ya. Novikova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Market Economy ◽  
Financial Market ◽  
Market Segmentation ◽  
Point Of View ◽  
Gdp Growth ◽  
Investment Incentives ◽  
Russian Economy ◽  
Instrumental Approaches

Russia has passed the path of forming a market economy, which was accompanied by a multidirectional dynamics of GDP growth rates. The article considers the financial market as a factor of stimulating economic growth. Four stages of development of the market economy of Russia are justified. Starting from 2020, the fifth stage of economic growth based on the development of innovative technologies, digitalization of the economy. The features of these stages are analyzed from the point of view of investment incentives for development. Institutional and instrumental approaches to financial market segmentation are highlighted, and the features of implementing these approaches at each stage of the Russian economy development are considered. The formation of the financial market considered from the standpoint of the analysis of indicators, revealing the state of the financial markets: depth, access, stability and efficiency of the financial market. Measures for the development of the financial market are proposed.

Taiwan's Economy: Slower than Expected

2014 ◽  
Vol 06 (01) ◽  
pp. 81-93
Author(s):  
Min-hua CHIANG
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Market Economy ◽  
Free Market ◽  
Free Market Economy ◽  
Fiscal Deficits ◽  
External Demand

Taiwan's economy continued to struggle in 2013 with 1.7% growth rate. Besides the soft external demand, Taiwan's stagnant economy today is a reflection of its persistent inability to upgrade its industry aggravated by the government's fiscal deficits which restrain its capability in providing an immediate solution to the ailing economy. A free market economy is so far the only way to sustain economic growth in an era of globalisation.

scholarly journals WORLD EXPERIENCE IN FORECASTING AND PLANNING SOCIO-ECONOMIC DEVELOPMENT IN THE PROCESS OF DEVELOPING A "WELFARE STATE"

2021 ◽  
Author(s):  
Serhii Shcherbak
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Welfare State ◽  
Market Economy ◽  
State Regulation ◽  
Negative Consequences ◽  
Use Of Resources ◽  
The World ◽  
Socio Economic Development ◽  
Sustainable Economic Growth

The article discusses the objective need to use the world experience of forecasting and planning in the process of developing a "welfare state" as an effective model for the modern development of a socially oriented market economy. The denial and lack of planning and forecasting of the economy on the scale of the country can lead to such negative consequences as uncertainty of the benchmarks of social and economic development of society for the long term and the development of chaos in the country; priorities of the decision short-term and current problems before strategic tasks on which the future development of society depends; preservation of playback modes; incomplete and inefficient use of resources; the emergence of crisis situations, etc. The practice of the leading countries of the world and the results they get prove that planning and forecasting are objectively necessary tools for the development of the modern market economy. The experience of many countries of the world testifies to the effectiveness of the use of these tools of state regulation of national socio-economic development. Features of forecasting and planning are considered in the representative countries of three existing systems of planning and regulation in the world: North American (USA and Canada); Asian (Japan and South Korea); European (France and Sweden). The forecasting and planning tools are based on the intersection balance model, which involves the inclusion of market impact (equilibrium prices) to determine the proportions of the plan and reflects the dynamics of production links (processes of public reproduction) of the national economy for several years. In the 21st century, strategic planning for the effective development of the state's economy is a prerequisite for sustainable economic growth and the formation of a national model of "welfare state" on this basis. Today, developed (post-industrial) countries use planning and forecasting, which have established themselves as an objective and natural tool for the modern market economy, where the role of the state is based on indicative planning, which ensures the achievement of sustainable economic growth to improve the well-being of the nation.

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