scholarly journals How production networks amplify economic growth

2021 ◽  
Vol 119 (1) ◽  
pp. e2106031118
Author(s):  
James McNerney ◽  
Charles Savoie ◽  
Francesco Caravelli ◽  
Vasco M. Carvalho ◽  
J. Doyne Farmer

Technological improvement is the most important cause of long-term economic growth. In standard growth models, technology is treated in the aggregate, but an economy can also be viewed as a network in which producers buy goods, convert them to new goods, and sell the production to households or other producers. We develop predictions for how this network amplifies the effects of technological improvements as they propagate along chains of production, showing that longer production chains for an industry bias it toward faster price reduction and that longer production chains for a country bias it toward faster growth. These predictions are in good agreement with data from the World Input Output Database and improve with the passage of time. The results show that production chains play a major role in shaping the long-term evolution of prices, output growth, and structural change.

2009 ◽  
Vol 8 (3) ◽  
pp. 113-137 ◽  
Author(s):  
Bhanupong Nidhiprabha

Globalization leads to the increasing complexity of production networks through foreign direct investment, which transmits demand shocks from the rest of the world to the Thai economy. Short-term fiscal stimulus would not be able to shorten the length of recession unless consumer confidence is restored. Violation of established social obligations and contracts erodes business sentiment and eventually would lead to a negative long-term impact on economic growth. The duration of the recession and the speed of a recovery hinge on the government's ability to restore confidence during uncertain times.


2019 ◽  
Vol 6 (2) ◽  
pp. 1-12
Author(s):  
Gesoon j.k Al-Abass ◽  
Huda R. ALkifaey

"Internet of things (IoT) domain targets human with smart resolutions through the connection of “M2M” in all over the world, effectively. It was difficult to ignore domain importance field of IoT with the new deployment of applications such as smartphone in recent days. The most important layer in architecture of IoT is network layer, because of various systems (perform of cloud computing, switching, hub, gateway, so on), different technologies of connection (Long-Term Evolution (LTE), WIFI, Bluetooth, etc.) gathered in layer. Network layers should transfer the information from or to various applications/objects, via gateways/interfaces between networks that are heterogeneous, therefore utilizing different connection technologies, protocols. Recent work highlighted IoT technologies state-of-the-art utilized in architectures of IoT, some variations among them in addition to the applications of them in life."


2017 ◽  
Vol 1 (1) ◽  
pp. 12
Author(s):  
Muammil Sun’an ◽  
Amran Husen

<p>This study aim is to test the money neutrality in a narrow sense (M1) and a broad sense (M2) to the growth of output (GDP) in Indonesia, both in short term and long term. This research uses quarterly time series data at 2010 - 2016 periods. The analysis tool used is Error Correction Model (ECM). The results show that short-term money supply (M1 and M2) affect on output growth. However, in the long term, only money circulation in a broad sense (M2) affects on output growth, which also means that money is not neutral because it affects the real sector (GDP).</p><p> <strong>Keywords:</strong> M1, M2, Population, Capital, and Economic Growth.</p>


2013 ◽  
Vol 215 ◽  
pp. 02-11
Author(s):  
NGÂN TRẦN HOÀNG

In 2012, Vietnam?s economy faced great challenges. The world economy experienced more difficulties and complicated upheavals. International trade fell drastically while global growth rate was lower than predicted target, which affected badly the Vietnamese economy because of its full integration into the world economy and large openness. In this context, principal targets set for 2013 are macroeconomic stability, lower inflation rate, higher growth rate, three strategic breakthroughs associated with restructuring of the economy, and a new economic growth model. This paper analyzes obstacles to Vietnam?s economic growth, and offers short-term solutions to bottlenecks and long-term ones to the economic restructuring.


2020 ◽  
Author(s):  
Benjamin Martinez-Lopez

&lt;p&gt;Sea surface temperature (SST) is the only oceanic parameter on which depend heat fluxes between ocean and atmosphere and, therefore, SST is one of the key factors that influence climate and its variability. Over the twentieth century, SSTs have significantly increased around the global ocean, warming that has been attributed to anthropogenic climate change, although it is not yet clear how much of it is related to natural causes and how much is due to human activities. A considerable part of available literature regarding climate change has been built based on the global or hemispheric analysis of surface temperature trends. There are, however, some key open questions that need to be answered and for this task estimates of long-term SST trend patterns represent a source of valuable information. Unfortunately, long-term SST trend patterns have large uncertainties and although SST constitutes one of the most-measured ocean variables of our historic records, their poor spatial and temporal sampling, as well as inhomogeneous measurements technics, hinder an accurate determination of long-term SST trends, which increases their uncertainty and, therefore, limit their physical interpretation as well as their use in the verification of climate simulations.&lt;br&gt;Most of the long-term SST trend patterns have been built using linear techniques, which are very usefull when they are used to extract information of measurements satisfying two key assumptions: linearity and stationarity. The global warming resulting of our economic activities, however, affect the state of the World Ocean and the atmosphere inducing changes in the climate that may result in oscillatory modes of variability of different frequencies, which may undergo non-stationary and non-linear evolutions. In this work, we construct long-term SST trend patterns by using non-linear techniques to extract non-linear, long-term trends in each grid-point of two available global SST datasets: the National Oceanic and Atmospheric Administration Extended Reconstructed SST (ERSST) and from the Hadley Centre sea ice and SST (HadISST). The used non-linear technique makes a good job even if the SST data are non-linear and non-stationary. Additionally, the nonlinearity of the extracted trends allows the use of the first and second derivative to get more information about the global, long-term evolution of the SST fields, favoring thus a deeper understanding and interpretation of the observed changes in SST. Particularly, our results clearly show, in both ERSST and HadISST datasets, the non-uniform warming observed in the tropical Pacific, which seems to be related to the enhanced vertical heat flux in the eastern equatorial Pacific and the strengthening of the warm pool in the western Pacific. By using the second derivative of the nonlinear SST trends, emerges an interesting pattern delimiting several zones in the Pacific Ocean which have been responded in a different way to the impose warming of the last century.&lt;/p&gt;


Bastina ◽  
2020 ◽  
pp. 239-262
Author(s):  
Slobodan Bracanović

Inequalities in: capital, property, income; the regulations are contemporary and global society. The rate income on capital surpasses rate the economic growth. Implement is enormous concentration of capital. Large is number a rich mans and extreme wealthy. On other side enormous majority is smaller the well-off and poor. Increase and the layer global plutocrats. Project is decelerate dynamics growth. The future is foggy uncertainty, as and full risky. Target of the work is perceive growth sociable a inequalities as the urgent contemporary the problem. Apply is various the methodology (historical, deductive-inductive, structural, comparative, statistical and other analysis). The problem it is concentration of capital and possibility reduce the social divide. Similarly swear, the problem is it and long-term the decelerate dynamics of the economic growth. Conclude is that beneficial influence powers of the convergence and (or) of the divergence, as and mixed of the efficiencies whose a resultant to be able in the direction reduce a global inequalities. Development individually a regions to be able and to dynamism of the economic growth. Philosophical and economic, rate the return of capital surpass the rate economic growth (p>g). This the trend anticipate is and in 21. century. "the first basic law of capitalism": a participation income of capital in national income (a) increase is rate the return (r) on capital and relation capital and income (b) that is a = r x b. "Other basic law of capitalism": relation capital and income (b) quotient is rate of saving (s) and rate growth of national income (g) that is b = s/g. "Law cumulative growth": rather small annual rate the return in long a deadline cause powerful growth, initial, of capital. "Law behavior": money and profit are motor activities! Richest the layer make one percentage of people (1%) on highest top of pyramid! Plutocracy create of the world politics.


2020 ◽  
Vol 6 (2) ◽  
pp. 451-461
Author(s):  
Areeba Khan ◽  
Sulaman Hafeez Siddiqui ◽  
Shahid Hussain Bukhari ◽  
Syed Muhammad Hashim Iqbal

Economic growth has been known to foster human development for long term economic stability. The evidence of bi-causality in the human development and economic growth nexus is however limited. This paper builds on the reverse causality between human development and economic growth in context of Pakistan, with the moderating impact of political stability. The study applies OLS and VECM on the data collected from World Bank Database from year 2006 to 2018. Our findings exhibit empirical evidence related to endogenous growth models and a significant causal relationship between human development and economic growth, moderated by political stability. The relationship is further explained by trajectories of happiness, health and income redistribution. Our findings suggest efficient reallocation of resources towards human development to address post pandemic growth concerns.


2011 ◽  
Vol 361-363 ◽  
pp. 1378-1386
Author(s):  
Hong Guang Sui ◽  
Ting Hua Liu

This paper analyzes equilibrium with perfect international technology diffusion. The authors argue that if there are no large countries, economic growth rate in the world will converge with perfect international technology diffusion; otherwise, economic growth rate in the world will converge to the large countries’. Moreover, we considered the effect of market structure on the diffusion. Market structure can influence the long-term equilibrium growth rate by influencing international technology diffusion. The best point of market structure that is beneficial to diffusion can be derived in the interval, where the competition factors and monopoly factors are relatively balanced; in the left side of the best point, it will promote technology diffusion, and in the right side, it will impede technology diffusion.


2005 ◽  
Vol 16 (3-4) ◽  
pp. 441-456 ◽  
Author(s):  
Wolfgang E. Kasper

Against the human experience of long-term stagnation and misery, the record of growing prosperity over the past two centuries, and in particular the last fifty years, is astounding. Economic growth owes much to the mobilisation of resources and structural flexibility, but this depends on the ‘software of economic development’ – institutions, which change slowly. Now, old fears and growth-impeding policies are being justified on environmental grounds. One example is Jared Diamond's recent book ‘Collapse’, which discusses the possibility of a swift descent of the world into social disintegration. To anyone familiar with long-term economic history and the theory of growth, the book is pure millennial pessimism. It could become self-fulfilling if environmentalist doomsayers win the political argument with the doers — the engineers, entrepreneurs and economists.


2013 ◽  
Vol 05 (04) ◽  
pp. 43-52
Author(s):  
John WONG

Recently, China published its Gini coefficients for the past 10 years, which all exceeded the warning level of 0.4. China's inequality level is among the highest 10% of countries in the world. In fact, the sources of China's income inequality stemmed from the sources of China's economic growth. Long-term remedy requires fundamental structural changes like removing institutional biases against equality and providing a more equal access to educational and income-earning opportunities.


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