Reform, corruption, and growth: Why corruption is more devastating in Russia than in China

2006 ◽  
Vol 39 (2) ◽  
pp. 265-281 ◽  
Author(s):  
Tomas Larsson
Keyword(s):  
Economic Growth ◽  
Comparative Advantage ◽  
Economic Performance ◽  
Political Corruption ◽  
Common Assumption ◽  
Rapid Economic Growth ◽  
The Common ◽  
The Impact ◽  
Intervening Factors

This article explains why massive political corruption appears to be incompatible with economic growth in Russia but compatible with very rapid economic growth in China. The common assumption is that corruption is bad for economic performance. So how can we explain the puzzling contrast between Russia and China? Is Russia being more severely “punished” for its corruption than China? If so, why? This article demonstrates that three intervening factors—comparative advantage, the organization of corruption, and the nature of rents—determines the impact of corruption on economic performance, and that these factors can explain the divergent outcomes. The article thereby offers an alternative to statist explanations of the Russia-China paradox.

scholarly journals Differentiated outlook to portray secondary cities in South Africa

2021 ◽  
Vol 7 (3) ◽  
pp. 457-477
Author(s):  
Andre DW Brand ◽  
◽  
Johannes E Drewes ◽  
Maléne Campbell ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Urban Growth ◽  
South African Context ◽  
Regional Networks ◽  
Extended Phase ◽  
Common Assumption ◽  
African Context ◽  
The Common

<abstract> <p>Cities are playing an increasingly important role in the development and growth of countries. A country's growth and prosperity is largely dependent on the efficient functioning of its cities. The reliance of countries on the ability of their cities to perform crucial central functions, for national growth, continues to rise. South Africa has a long-standing network of cities, towns and localities. These have developed and become hierarchised over the course of history during which population settlements and their distribution have been influenced by colonisation, segregation, industrialisation and globalisation. Since 1911, South Africa has undergone an extended phase of intense urban growth, with areas such as Johannesburg, Cape Town and eThekwini (Durban) agglomerating into dominating economic spaces. There are, however, no universally accepted, distinct criteria that constitute the general characteristics of secondary cities. The common assumption is that secondary cities are those cities that find themselves below the apex of what are considered primary cities. Furthermore, internationally, secondary cities appear to be considered as important catalysts for balanced and dispersed economic growth. In the South African context, the notion of what constitutes secondary cities is to a large extent underdeveloped. The aim of the paper is to appraise interconnected regional networks as a differentiated and novel outlook when determining secondary cities in South Africa. What is evident from the paper is that there are different potential alternatives with which to portray secondary cities.</p> </abstract>

Innovations in human resources management: impact on economic growth

2021 ◽  
Vol 5 (3) ◽  
pp. 53-65
Author(s):  
Monika Danova ◽  
Ivana Kravcakova Vozarova ◽  
Elena Sira
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Performance ◽  
Human Resources Management ◽  
Precise Determination ◽  
P Value ◽  
Strong Impact ◽  
Literary Sources ◽  
The Impact

In recent years, human capital has become increasingly emphasized as a factor of economic growth. Managing human capital could stimulate the whole economy to better performance in competitiveness. Although these indicators include several variables, there is no precise determination of which indicator mostly affects the country's economic growth. This paper summarizes the knowledge and approaches of several authors in the field of economic growth, knowledge economy, competitiveness, innovations and individual elements affecting these areas. It outlines the findings and provides some insight into the impact of individual factors on economic growth across recent studies. The main goal is to obtain information about the impact of education, its support, and its influence on economic performance on the example of empirical data documenting the qualitative parameters of the workforce. The use of selected indicators indicated their impact on the change in economic performance. The partial objective is to identify an indicator or set of indicators that could express the impact of human capital on economic growth. The study involved research methods such as analyzes, statistical methods such as correlation and p-value, and prediction for the next period based on past developments. The research object is the V4 countries – the Czech Republic, Slovakia, Hungary, and Poland. The findings pointed to the strong impact of the analyzed factors on economic growth. Besides, they showed which of the known ways to increase the efficiency of the labor factor were actually or little used in the sample countries. Undoubtedly, there is also an indicative and interesting comparison within a group or with other economies at a comparable economic and social development level. Finally, improvements to the current situation were proposed. The systematization of literary sources and approaches to economic growth helps identify possible proposals for improving competitiveness in the future, using innovative approaches.

The Impact of Collaborative Consumption on Sustainable Development

2020 ◽  
pp. 37-49
Author(s):  
Erhan İşcan
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
20Th Century ◽  
Decent Work ◽  
Collaborative Consumption ◽  
The Sustainable Development ◽  
Goods And Services ◽  
Rapid Economic Growth ◽  
Economic Paradigm ◽  
The Impact

Excessive use of goods and services and industrialization progress of 20th century depleted resources and emerged the sustainable development as the main target of the policymakers, but past experiences and consequences of rapid economic growth of 20th century showed that there must be a change in the policies. Alleviating of poverty with inequalities and hunger in a degraded environment is needing sustainable cities and communities that have decent work for economic growth. In this context, perhaps, there must be a change in the economic paradigm beyond a policy change. Collaborative consumption is this new economic paradigm that has changed the understanding of the economic system. This new economic paradigm is depending on the sharing of idle resources with or without a fee that changed the importance of asset ownership. The main aim of this chapter is to present the impact of collaborative consumption on the 10 Sustainable Development Goals of the UN.

Impact of remittances on economic performance in consideration of institutional quality

2020 ◽  
Vol 47 (3) ◽  
pp. 479-507
Author(s):  
Surya Nepal ◽  
Sae Woon Park ◽  
Sunhae Lee
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
South Asia ◽  
Central Asia ◽  
Financial Development ◽  
Economic Performance ◽  
Institutional Quality ◽  
Content Type ◽  
The Impact ◽  
Asian Developing Countries

PurposeThe purpose of this paper is to empirically assess the impact of remittances on the economic performance of the 16 Asian developing countries, taking account of their institutional qualities.Design/methodology/approachA panel of 16 Asian developing countries (Central Asia, South Asia, and ASEAN) over the period of 2002–2016 is employed in the analysis. To assess the impact of remittances on economic performance in consideration of institutional quality, OLS estimates as well as GMM are used.FindingsThe effect of remittances on economic growth is statistically significant. In addition, they also impact economic growth when they interact with institutional or financial development variables. For the long-run growth process of Central Asian, South Asian, and ASEAN countries, a sound and smooth institutional framework appears to be indispensable. Also, it was found that more fragile economies tend to achieve bigger growth than less fragile economies, as this kind of growth is triggered by more remittances flowing into fragile economies. However, the impact of remittances on growth does not depend on the level of ICT. FDI and financial development have positive impact on growth.Research limitations/implicationsThere are limitations to this research as well. Due to the unavailability of data, several countries had to be removed from this study. The cost of sending money might be an important variable for this study. However, the data on this variable from reliable sources are almost impossible to gather. Therefore, this variable is also not included in this research. The savings from remittances when intermediated through formal financial channels will, in fact, produce a positive allocation and distribution of resources that may eventually become an important source of growth. However, one precondition for larger and greater growth is that remittances need to be well and properly utilized by the financial sector. Therefore, quality institutions should be formed first, which can facilitate investment activities and make the flow of remittances more convenient.Originality/valueThis paper exclusively considers the case of Asian developing countries (Central Asia, South Asia, and ASEAN) to assess the impact of remittances on the economic performance of these countries, with special consideration of the interaction effects of remittances and institutional quality in these emerging Asian economies. The previous studies on the effect of remittances on growth do not conform to one concrete conclusion. This study is undertaken in a bid to get the best possible result on the impact of remittances on the growth of the selected countries, majority of which attract substantial chunk of remittances into their economies.

Institutional development, transaction costs and economic growth: evidence from a cross-country investigation

2015 ◽  
Vol 12 (1) ◽  
pp. 129-159 ◽  
Author(s):  
MITJA KOVAČ ◽  
ROK SPRUK
Keyword(s):  
Economic Growth ◽  
Transaction Costs ◽  
Economic Performance ◽  
Model Calibration ◽  
Institutional Development ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
Cross Country ◽  
The Impact

Abstract:This paper seeks to quantify the impact of transaction costs on cross-country economic growth. Our evidence from a cross-country panel data regression analysis reveals a persistent and robust negative effect of increasing transaction costs on the path of economic growth. The growth-enhancing effects of lower transaction costs are confirmed after controlling for the set of conditioning variables and further demonstrated in a cross-country growth model calibration. The results provide evidence that transaction costs might indeed be central to the study of cross-country productivity differences, suggest the importance of contractual relations and indicate their significant impact on cross-country economic performance over time.

scholarly journals Influence of tax burden on economic development of agricultural enterprises in Ukraine

2020 ◽  
Vol 7 (1) ◽  
pp. 150-162
Author(s):  
Oleg Odintsov ◽  
Tetiana Yevtukhova ◽  
Elina Vasylkonova ◽  
Valentyna Kunchenko-Kharchenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Production Function ◽  
Economic Performance ◽  
Tax Burden ◽  
Resource Potential ◽  
Agricultural Enterprises ◽  
Main Factors ◽  
Effective Development ◽  
The Impact

The condition of the effective development of agricultural enterprises in Ukraine is to increase the efficiency of using resource potential. At the same time, it is necessary to take into account the main factors of the development, including the tax burden on the industry. Therefore, it is important to study the impact of the tax burden on the economic performance of the agricultural enterprises. The article deals with the improvement of the traditional two-factor production function of the Cobb-Douglas through the inclusion of the additional factors. The four-factorial production-institutional function of agricultural enterprises in Ukraine has been constructed allowing to calculate econometric parameters and to evaluate the functioning of the industry. The patterns of the interaction of tax burden and economic growth agricultural enterprises in Ukraine are revealed.  The calculated econometric parameters of the functioning of agricultural enterprises in Ukraine made it possible to determine the tax loadings points Laffer's of the first and second orders, the productivity of each factor, and the phased replacement of one factor to another. It has been proved that optimizing the tax burden on agricultural enterprises makes it possible to direct the resource potential to increase the agricultural volumes production and increase tax revenues from the industry.

scholarly journals Trade Openness and Economic Growth in Indonesia

2020 ◽  
Vol 10 (2) ◽  
pp. 163-170
Author(s):  
Khoirul Ifa ◽  
Moh. Yahdi
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Time Series Data ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Series Data ◽  
Test Results ◽  
Rapid Economic Growth ◽  
The Impact

Economic growth and international trade are related to one another. International trade stimulates long-term economic growth. The more trade activities in a country, the more rapid economic growth; this trade is a key component of development in a country, its contribution is felt with the increasing economic growth in several countries. The purpose of this study looks at the impact of trade openness on economic growth in Indonesia in 1986-2017. This research is a quantitative study using time series data from 1986-2017, research data obtained from the world bank, data analysis techniques using the GMM method to see the impact of trade openness on economic growth. The test results using the Generalized Method of Moments analysis method show that all variables significantly influence the dynamics of economic growth in Indonesia. This result is proven by the t-statistic probability value, which shows a smaller value compared to the t-table value. Then the value also has a probability of less than α. It can be concluded that the variables of trade, FDI, inflation, and the number of workers have a significant effect on economic growth in Indonesia.

scholarly journals Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis

2020 ◽  
Vol 59 (1) ◽  
pp. 45-68
Author(s):  
Muhsin Ali ◽  
Karim Khan
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Developing Economies ◽  
Public Spending ◽  
Jel Classification ◽  
Developed Economies ◽  
Potential Control ◽  
Country Analysis ◽  
Cross Country ◽  
The Impact

Volatility in discretionary public spending has diverse implications for the overall economic performance of economies. In this study, we examine the impact of volatile non�systematic discretionary public spending on economic growth. By employing cross-country data of 74 developed and developing economies, we find that volatility in non-systematic discretionary public spending has an adverse impact on economic growth. In particular, such impact is severe in the case of less developed economies. Our findings are robust to the problem of endogeneity. In order to ensure the accuracy of the results, we conduct sufficient sensitivity analysis by incorporating a bunch of potential control variables. In most of the cases, the results with regard to the policy volatility remain intact. This suggests that effective spending rules, i.e. permanent numerical limits, should be imposed on budgetary aggregates to restrain governments from the volatile use of discretionary spending. JEL Classification: H3; H5 Keywords: Volatility in Discretionary Public Spending, Economic Growth, Effective Spending Rule

scholarly journals Innovations in achieving sustainable economic performance under income inequality

2021 ◽  
Vol 5 (2) ◽  
pp. 146-154
Author(s):  
Inna Cabelkova ◽  
Manuela Tvaronaviciene ◽  
Wadim Strielkowski
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Inequality ◽  
Economic Performance ◽  
Financial Services ◽  
Developing Economies ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

The negative effect of income inequality on economic growth represents a topic that constitutes a broad topic of research in the standard economic theory. One of the immediate consequences of income inequality is diminished consumption. Many «poor» customers cannot provide sufficient demand for the producers, causing overproduction that might lead to an economic crisis. It constitutes a problem because sustainable economic performance needs to be achieved under the conditions of income inequality. Reducing social and economic inequality in countries is an essential step towards ensuring that no one is left behind. It is also part of the 10th Sustainable Development Goal aimed to reduce it by 2030. Inequality is based on the income distribution between the top 1% and the bottom 99% of households in any given country. The degree of inequality could play a beneficial role if it is driven by market forces and is associated with incentives to increase growth. In developing and emerging countries, greater equality and improvements in living standards are needed to enable populations to flourish. Inequality reduction is one of the most critical steps a government could take to improve the well-being of its population. The income inequality growth increases human capital in poor countries and reduces it in high and middle-income countries. In poorer countries, it increases them, but in higher – and middle-income countries, it reduces them. Income inequality could be reduced by improving human capital and general skill levels, correcting labor-market policies, and making better use of financial services. In turn, sustainable economic growth could reverse the negative effects of inequality, reducing the need for high-wage and higher-earning households. Thus, it provides higher economic growth. This paper discusses three ways to circumvent the impact of decreasing consumption on economic growth adopted in developing economies over the last fifty years, such as increasing exports, providing loans for consumption, and printing new money. The findings showed that none of these methods seem to be sustainable in the long run. Thus novel and innovative mechanisms that would allow our economy to reduce inequality are necessary and need to be put into place.

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