Scarcity and Growth Revisited

1995 ◽  
Vol 27 (11) ◽  
pp. 1815-1832 ◽  
Author(s):  
N D Uri ◽  
R Boyd
Keyword(s):  
Economic Growth ◽  
Unit Cost ◽  
The United States ◽  
Resource Scarcity ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Lead Zinc ◽  
Two Measures ◽  
The 1960S ◽  
Zinc Nickel

The analysis presented in this paper is concerned with the effect of resource scarcity on economic growth. After the notion of scarcity is defined and two measures of scarcity are introduced—unit cost and relative resource price—changes in the trend in resource scarcity for lead, zinc, nickel, aluminium, silver, iron, and copper in the 1960s, 1970s, and 1980s are investigated. Only for silver and iron is there any indication that such a change has occurred. For silver, the change is transitory. It is believed that changes in resource scarcity have implications for future economic growth depending on the extent of the change and the degree to which resource scarcity and economic growth are interrelated. To see whether this is a relevant concern cointegration techniques are utilized to identify objectively a long-run equilibrium relationship between resource scarcity and economic growth. Only for the unit cost measure for lead and copper for one of the measures of cointegration is there a suggestion that resource scarcity has affected economic growth in the United States over the period 1889–1992.

The Relationship Among Poverty, Economic Growth, and Inequality Revisited

2008 ◽  
pp. 5
Author(s):  
Lonnie K. Stevans ◽  
David N. Sessions
Keyword(s):  
Economic Growth ◽  
The United States ◽  
Poverty Rate ◽  
Gdp Growth ◽  
Correction Model ◽  
Long Run ◽  
Formal Error ◽  
The 1960S ◽  
The Relationship ◽  
Over Time

It has been shown in prior research that increased economic growth reduces poverty. Authors have also found that the effect of growth in Gross Domestic Product (GDP) on poverty growth has either diminished or remained unchanged over time, and economic expansion in the 1980s in the United States had no affect on poverty. Using a formal error-correction model, we find that increases in economic growth are significantly related to reductions in the poverty rate for all families. Specifically, GDP growth was found to have a more pronounced effect on poverty during the expansionary periods of the 1960s, 1970s, 1980s, 1990s, and 2000s. Other findings include identification of determinants of the dynamic behavior of poverty rates both in the yearto- year periods and over the long run.

scholarly journals How applicable is export-led growth and import-led growth hypotheses to South African economy?

2015 ◽  
Vol 4 (2) ◽  
pp. 15-24
Author(s):  
Ntebogang Dinah Moroke ◽  
Molebogeng Manoto
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Adverse Effect ◽  
Time Series ◽  
South African ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Reserve Bank ◽  
Equilibrium Relationship

This paper investigated exports, imports and the economic growth nexus in the context of South Africa. The paper sets out to examine if long-run and causal relationships exist between these variables. Quarterly time series data ranging between 1998 and 2013 obtained from the South African Reserve Bank and Quantec databases was employed. Initial data analysis proved that the variables are integrated at their levels. The results further indicated that exports, imports and economic growth are co-integrated, confirming an existence of a long-run equilibrium relationship. Granger causal results were shown running from exports and imports to GDP and from imports to exports, validating export-led and import-led growth hypotheses in South Africa. A significant causality running from imports to exports, suggests that South Africa imported finished goods in excess. If this is not avoided, lots of problems could be caused. A suggestion was made to avoid such problematic issues as they may lead to replaced domestic output and displacement of employees. Another dreadful ramification may be an adverse effect on the economy which may further be experienced in the long-run.

scholarly journals TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

2010 ◽  
Vol 11 (1) ◽  
pp. 112-130
Author(s):  
Salih Katircioglu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Small Island ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Island State ◽  
Northern Cyprus ◽  
Small Island State ◽  
Growth Hypothesis ◽  
Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

From American Exceptionalism to the Great Compression

2021 ◽  
pp. 323-350
Author(s):  
Jon D. Wisman
Keyword(s):  
United States ◽  
Economic Growth ◽  
World War Ii ◽  
American Exceptionalism ◽  
The United States ◽  
Living Standards ◽  
World War ◽  
The Great Depression ◽  
The 1960S ◽  
First Time

The United States was an anomaly, beginning without clear class distinctions and with substantial egalitarian sentiment. Inexpensive land meant workers who were not enslaved were relatively free. However, as the frontier closed and industrialization took off after the Civil War, inequality soared and workers increasingly lost control over their workplaces. Worker agitation led to improved living standards, but gains were limited by the persuasiveness of the elite’s ideology. The hardships of the Great Depression, however, significantly delegitimated the elite’s ideology, resulting in substantially decreased inequality between the 1930s and 1970s. Robust economic growth following World War II and workers’ greater political power permitted unparalleled improvements in working-class living standards. By the 1960s, for the first time in history, a generation came of age without fear of dire material privation, generating among many of the young a dramatic change in values and attitudes, privileging social justice and self-realization over material concerns.

Revisiting the tourism-economic growth nexus: evidence from the United States

2019 ◽  
Vol 31 (9) ◽  
pp. 3779-3798 ◽  
Author(s):  
David N. Aratuo ◽  
Xiaoli L. Etienne ◽  
Tesfa Gebremedhin ◽  
David M. Fryson
Keyword(s):  
Economic Growth ◽  
Exchange Rates ◽  
The United States ◽  
Impulse Response Functions ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Usa ◽  
State And Local ◽  
Exchange Rate Shocks

Purpose The purpose of this study is to investigate the causal linkages between tourism and economic growth in the USA and determine how they respond to shocks in the system. Design/methodology/approach The study uses a variety of time series procedures, including the bounds test, Granger causality test, impulse response functions and generalized variance decomposition to analyze the relationship between monthly tourist arrivals (TA) to the USA, real gross domestic product (GDP) and real effective exchange rates. Findings Results suggest that GDP Granger causes TA in the USA in the long run, indicating the economy-driven tourism growth hypothesis. Additionally, a shock to GDP generates a positive and significant effect on TA that persists in the long-run, while exchange rate shocks only have a significant effect in the first six months. Research limitations/implications Different tourism sectors may exert different degrees of influence on the economy. The use of aggregate data on TA in the analysis assumes homogeneity in the industry, thus, only represents the average relationship between tourism and GDP. Practical implications This study provides insight that shapes the investment, marketing, sustainability decisions of the public and private sectors aim at increasing tourist flows to drive economic development at the national, state and local levels. Originality/value Though several studies have examined the factors influencing the international tourist demand of the USA, this is the first to investigate the causal relationships between tourism, GDP and exchange rates for the USA. It is also the first in the US tourism literature to account for the nature of interactions between the three variables because of innovations in the system.

A NOTE ON THE IMPLICATIONS OF AUTOMATION FOR ECONOMIC GROWTH AND THE LABOR SHARE

2017 ◽  
Vol 23 (3) ◽  
pp. 1294-1301 ◽  
Author(s):  
Klaus Prettner
Keyword(s):  
United States ◽  
Economic Growth ◽  
Growth Rate ◽  
Population Growth ◽  
Capital Accumulation ◽  
Technological Progress ◽  
The United States ◽  
Economic Growth Rate ◽  
Labor Share ◽  
Long Run

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available empirical evidence; (iii) there is a unique share of savings diverted to automation that maximizes long-run growth; and (iv) automation explains around 14% of the observed decline of the labor share over the last decades in the United States.

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

scholarly journals The Contribution of Chicken Products’ Export to Economic Growth: Evidence from China, the United States, and Brazil

2019 ◽  
Vol 11 (19) ◽  
pp. 5253 ◽  
Author(s):  
Xiaowei Wen ◽  
Lin Li ◽  
Sangluo Sun ◽  
Qinying He ◽  
Fu-Sheng Tsai
Keyword(s):  
United States ◽  
Economic Growth ◽  
Growth Rate ◽  
Agricultural Sector ◽  
The United States ◽  
Agricultural Export ◽  
Economic Growth Rate ◽  
Food And Agriculture ◽  
Food And Agriculture Organization ◽  
Equilibrium Relationship

As a core industry of the national economy, there is no doubt that the agricultural sector has to adapt to the new economic development. In the literature, many researchers have agreed that agricultural export is an important factor affecting economic growth. This paper explores the contribution of chicken products’ export to economic growth and the causal relationship between them. Based on the data from the Food and Agriculture Organization of the United Nations (FAO) and World Bank between 1980 and 2016, this paper describes and compares the characteristics of chicken products’ export trade of China, the United States, and Brazil. By applying the co-integration analysis, we find that there is no significant long-term equilibrium relationship between chicken products’ export and economic growth rate in China, the United States, or Brazil. However, the growth rate of chicken products’ export significantly promotes the economic growth rate for the United States. Besides, for both China and the United States, the direct pull degree (an estimator quantifying the degree of agricultural products’ exports in stimulating economic growth) of chicken products’ export is relatively small and less volatile. Yet, the direct pull degree of China is 14 times that of the United States, and the contribution to the economic growth rate of the United States is 8 times that of China. Both the direct pull degree and economic growth contribution of chicken products’ export of Brazil fluctuates more often, and its direct pull degree is 0.25 times that of China, and the economic contributions to the growth rate is 1.65 times that of China.

scholarly journals Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS

2015 ◽  
Vol 9 (12) ◽  
pp. 32 ◽  
Author(s):  
Akhilesh Chandra Prabhakar ◽  
Muhammad Azam ◽  
B. Bakhtyar ◽  
Yusnidah Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regional Integration ◽  
Direct Investment ◽  
New Paradigm ◽  
Fdi Inflows ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Development Context ◽  
Sustainable Equilibrium

<p class="zhengwen"><span lang="EN-GB">The present study begins by surveying broadly supports the assertion that regional integration in the case of the BRICS is not adequately paid attention except with very few original or significant contributions. This research examines the existing pattern in the areas of trade and investment with a view to locate in the development context. It was also essential to make a theoretical investigation on literature of trade along with the empirical one. The survey broadly supports the frequent, through usually undocumented, assertion that BRICS was an area had tended to neglect and to which they had made few if any original or significant contributions. Alongside, this study panel data on BRICSs, where the results confirm that foreign direct investment (FDI), trade and economic growth indicate the presence of long-run sustainable equilibrium relationship between them. It is thus important that policymakers to remove obstacles to FDI inflows and improve the respective absorptive capacity in order to reap maximize positive growth effects. This study also discussed that how China performed well through attracting FDI inflows and maintained trade balance. </span></p>

scholarly journals TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

2010 ◽  
Vol 11 (1) ◽  
pp. 112-130 ◽  
Author(s):  
Salih Katircioglu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Small Island ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Island State ◽  
Northern Cyprus ◽  
Small Island State ◽  
Growth Hypothesis ◽  
Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

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