Growth Paradigms and Congruent Institutions: Estimating Context-Varying Effects of Political Institutions on Economic Performance

2013 ◽  
Vol 1 (2) ◽  
pp. 239-262 ◽  
Author(s):  
Jonathan K. Hanson
Keyword(s):  
Economic Growth ◽  
Political Participation ◽  
Economic Performance ◽  
Political Institutions ◽  
Productivity Growth ◽  
Capital Accumulation ◽  
Growth Regressions ◽  
State Authority ◽  
Growth Constraints

Traditional economic growth regressions are not adequate to identify the role of political institutions because they assume a universal growth paradigm exists. Instead, there are distinct paradigms of investment- and innovation-based growth, and the effects of political institutions vary across them. Using a dataset covering 83 countries from 1965–2008, this study employs a mixture models estimation to identify these paradigms. It finds that state authority is critical for countries engaged in investment-based growth, and competitive political participation tempers the pace of capital accumulation but increases productivity growth. Conversely, where innovation-based growth predominates, state authority has little effect and competitive political participation slows the pace of growth. Constraints on rulers do not support investment in either paradigm.

Improvement of the remuneration system in modern conditions

2020 ◽  
pp. 6-12
Author(s):  
S. V. Savina
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Positive Impact ◽  
Domestic Market ◽  
Effective Demand ◽  
Difficult Situation ◽  
Remuneration System ◽  
Near Future ◽  
Further Development

Today, a difficult situation has developed in the field of wages and incomes of the population, associated with the need to increase the level of wages and real incomes of the population, since low effective demand in the domestic market can become the main constraint on economic growth in the near future. The main goal of wage reform in modern conditions is to restore the role of wages as the main incentive for productivity growth and labor efficiency, which will have a positive impact on the functioning of production and will give an impetus to its further development.

International Trade and Economic Performance in Tanzania: Further Evidence

2021 ◽  
pp. 1-17
Author(s):  
Ally A. L. Kilindo
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Economic Performance ◽  
Trade Restrictions ◽  
Correction Model ◽  
Spurious Regression ◽  
Long Run ◽  
Reform Period ◽  
Manufactured Goods

Abstract The study investigated the role of international trade in economic performance in Tanzania for the post reform period, from 1980 to 2018. International trade is measured by disaggregated imports and exports while economic performance is measured by GDP growth. Exports are disaggregated into manufactured goods and non-manufactured goods while imports are disaggregated into capital goods and intermediate goods. To obtain robust non-spurious regression results, Dickey-Fuller (D-F) and Phillips-Peron (PP) Unit Root tests were performed. Johansen Co-integration tests were employed to investigate long-run relationships between export, imports and economic growth. The Johansen test suggested a long-run relationship between international trade and its components and economic development. In addition, the Error Correction Model (ECM) results further supported a long-run relationship between international trade and economic growth in Tanzania. This calls for further opening of the economy and further liberalisation of trade restrictions.

The cultural dividend: a hidden source of economic growth in emerging countries

2017 ◽  
Vol 24 (4) ◽  
pp. 590-616 ◽  
Author(s):  
Shaomin Li ◽  
Seung Ho Park ◽  
David Duden Selover
Keyword(s):  
Economic Growth ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Large Scale ◽  
Cultural Factors ◽  
Content Type ◽  
Economic Productivity ◽  
Large Scale Data ◽  
Productivity Gains

Purpose The purpose of this paper is to develop the theoretical linkage between culture and economic growth and empirically test the relationship by measuring culture and how it affects labor productivity. Design/methodology/approach This study uses a cross-section study of developing countries and regresses economic productivity growth on a set of control variables and cultural factors. Findings It is found that three cultural factors, economic attitudes, political attitudes, and attitudes towards the family, affect economic productivity growth. Originality/value Many economists ignore culture as a factor in economic growth, either because they discount the value of culture or because they have no simple way to quantify culture, resulting in the role of culture being under-researched. The study is the first to extensively examine the role of culture in productivity growth using large-scale data sources. The authors show that culture plays an important role in productivity gains across countries, contributing to the study of the effects of culture on economic development, and that culture can be empirically measured and linked to an activity that directly affects the economic growth – labor productivity.

Corruption, Business Climate, and Economic Growth

2015 ◽  
pp. 1156-1179
Author(s):  
Harish C. Chandan
Keyword(s):  
Economic Growth ◽  
Political Institutions ◽  
Business Environment ◽  
Domestic Investment ◽  
Business Climate ◽  
Transparency International ◽  
Leadership Management ◽  
Economic Freedom Index ◽  
The Relationship

Corruption is globally pervasive. Defined as abuse of entrusted power for private gain (Transparency International, 2013), corruption represents a set of economic, social, cultural, and political practices that are secretive and rooted in greed, ambition, or quest for power. This chapter reviews causes of corruption including the macro- and micro-level determinants of corruption such as leadership, management, and organizational culture. Various subjective and objective measures of corruption are discussed. Transparency International's Corruption Perception Index (CPI) and Heritage Foundation's Economic Freedom Index (EFI) are reviewed. The World Bank's Business Environment and Enterprise Performance Survey (BEEPS), Doing Business Indicator (DBI), and World Bank Institute's Governance Indicator (WBI-GI) are also reviewed, as is the role of global anti-corruption agencies and various instruments. Additionally, the relationship between corruption and foreign domestic investment, economic growth, and economic and political institutions are considered, as are anti-corruption intervention strategies for corruption and business ethics training.

Introduction

2020 ◽  
pp. 1-36
Author(s):  
Paul Erdkamp ◽  
Koenraad Verboven ◽  
Arjan Zuiderhoek
Keyword(s):  
Economic Growth ◽  
Structural Properties ◽  
Productivity Growth ◽  
Capital Goods ◽  
Roman Economy ◽  
Roman World ◽  
Large Complex ◽  
Modern Economic Growth ◽  
Modern Economic

Investment in capital, both physical and financial, and innovation in its uses are often considered the linchpin of modern economic growth, while credit and credit markets now seem to determine the wealth—as well as the fate—of nations. Yet was it always thus? The Roman economy was large, complex, and sophisticated, but in terms of its structural properties, did it look anything like the economies we know today? Through consideration of the allocation and uses of capital and credit and the role of innovation in the Roman world, this volume explores how capital in its various forms was generated, allocated, and employed in the Roman economy; whether the Romans had markets for capital goods and credit; and whether investment in capital led to innovation and productivity growth.

Economic Policy

2019 ◽  
pp. 173-195
Author(s):  
William Keech ◽  
William Scarth
Keyword(s):  
United States ◽  
Economic Growth ◽  
Economic Policy ◽  
Fiscal Policy ◽  
Income Distribution ◽  
Political Institutions ◽  
Productivity Growth ◽  
The United States ◽  
Economic Policies ◽  
Sustainable Fiscal Policy

This chapter identifies the differing policies and outcomes that Canadians and Americans have pursued with respect to economic growth, stabilization, and income distribution, and it analyzes several factors that can partially explain why divergent policy choices have emerged. The United States (U.S.) has recorded better productivity growth, while Canada has achieved a more sustainable fiscal policy, a less fragile financial sector, and more generous distributional policies. These contrasting outcomes are related to differences in size and geography, in political culture, and in political institutions. The analysis also considers how much it may be possible for each country’s policymakers to benefit from the other’s experiences. While identifying some lessons in this regard, the authors conclude that the sheer difference in the size of the two economies affects which economic policies can be expected to be effective. As a result, it is concluded that convergence in economic policymaking will remain somewhat limited.

scholarly journals Democracy's Deficit: The Role of Institutional Contact in Shaping non-White Political Behavior

2019 ◽  
Vol 4 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Marcela García-Castañon ◽  
Kiku Huckle ◽  
Hannah L. Walker ◽  
Chinbo Chong
Keyword(s):  
Political Participation ◽  
Citizen Participation ◽  
Asian American ◽  
Political Institutions ◽  
Informal Institutions ◽  
Racial Groups ◽  
Community Group ◽  
Voter Mobilization ◽  
Positive Effect

AbstractThis paper examines the effect of institutional contact on political participation among non-White communities. While both formal and informal institutions help shape community citizen participation, their effects vary on the historical inclusion (or exclusion) of certain racial groups. Formal institutions, like political parties, have historically excluded or neglected non-White and immigrant voters. We argue that for the excluded or neglected, non-traditional political institutions, like community based organizations, serve as supplements to facilitate political incorporation and engagement. These informal institutions help develop skills and resources among their constituents, and offer routine opportunities to participate. We use the 2008 Collaborative Multi-racial Post-Election Survey (CMPS) to test the differential effects of self-reported voter mobilization through nonpartisan and partisan institutional contact to explain variations among racial groups by the intensity of contact, occurrence of co-ethnic outreach, and type of institutional mobilization. We find that while contact by a partisan/political institution, like a political party or campaign, has an overall positive effect on political participation for all voters, contact by a nonpartisan/civic or community group is substantively more important for Latino and Asian American voter mobilization. Our analysis therefore offers cohesive evidence of how voters interact with and are affected by mobilization efforts that attends to differences across racial and ethnic boundaries, and variations in institutional contact.

Economic Performance Under Labour

2010 ◽  
Vol 212 ◽  
pp. R2-R14 ◽  
Author(s):  
Iana Liadze ◽  
Martin Weale
Keyword(s):  
Economic Growth ◽  
Labour Market ◽  
Economic Performance ◽  
Productivity Growth ◽  
Market Performance ◽  
National Income ◽  
The Other ◽  
The Uk ◽  
Sustainable Economic Growth ◽  
Growth Economic

This article compares the performance of the UK economy since 1997 with that between 1979 and 1997 and with the performance of the other G7 economies in both periods. It concludes that Britain has done relatively well in terms of productivity growth, economic growth and national income per head but not very well in terms of labour market performance. Savings rates were too low to deliver sustainable economic growth over the period 1979–97 and there has been very little improvement since then. The performance of the economy during the recession and its immediate aftermath has been disappointing relative to the other G7 economies.

scholarly journals Institutions and development in MENA region: evidence from the manufacturing sector

2015 ◽  
Vol 42 (8) ◽  
pp. 717-732 ◽  
Author(s):  
Mahmoud Arayssi ◽  
Ali Fakih
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Political Institutions ◽  
Civil Law ◽  
Institutional Setting ◽  
Mena Region ◽  
Content Type ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – The purpose of this paper is to study the role of institutions (including civil law origin), financial deepening and degree of regime authority on growth rates in the Middle East and North Africa region. Design/methodology/approach – This paper examines the implications of industrial firm-related and national factors for the determinants of economic growth using panel data through a fixed effect model. Findings – The results reveal that English civil law origin and the establishment of the rule of law work with the development of financial institutions to increase economic growth in these economies; however, the democratization of the political institutions and foreign direct investment do not assist financial development in promoting economic growth. Research limitations/implications – Data covered is limited to four years. Social implications – The findings emphasize the prominence of overcoming institutional weaknesses and establishing transparent public policy governing businesses as a pre-requisite for successful universal integration in developing countries. Originality/value – This paper contributes to the literature on the relationship between finance and economic growth in two aspects. First, the authors focus on the contribution of the institutional setting and its interaction with the financial development and how this affects economic growth of the manufacturing firms. Second, the authors explore the relationship between the role of institutions, governance, the country civil law origin and the economic growth.

Macroeconomics and the Law

2019 ◽  
Vol 15 (1) ◽  
pp. 377-396
Author(s):  
Yair Listokin ◽  
Daniel Murphy
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Business Cycles ◽  
Gross Domestic Product ◽  
Productivity Growth ◽  
Financial Regulation ◽  
Institutional Arrangements ◽  
The Law ◽  
Legal Interventions

This article surveys recent work on the role of law in determining economic aggregates such as gross domestic product, unemployment, inflation, and productivity growth. We provide a brief overview of macroeconomics and discuss how legal interventions and institutional arrangements such as monetary, fiscal policy, financial regulation, and other legal changes can stabilize business cycles. Finally, we discuss the role of the law in promoting economic growth.

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