scholarly journals Investment, Wage Goods, and Industrial Policy

2020 ◽  
pp. 75-109
Author(s):  
Christopher Cramer ◽  
John Sender ◽  
Arkebe Oqubay
Keyword(s):  
Economic Growth ◽  
Resource Allocation ◽  
Industrial Policy ◽  
Growth And Development ◽  
Economic Policies ◽  
Economic Activities ◽  
High Productivity ◽  
Long Run ◽  
High Investment ◽  
Investment Rates

Raising and sustaining long-run growth rates is made more difficult by the complexity of economic growth and by the complexity of growth theory debates. Nonetheless, the investment rate is central to long-run growth and development. Growth sustained by high investment rates will also involve structural change: a shift of resources into high-productivity economic activities. This chapter combines discussion of investment—why it matters, what economic policies help to raise investment rates and keep them high—with discussion of ‘industrial policy’. But the terrain of industrial policy has expanded to take account of new high-productivity activities, of servicification, and of agribusiness; policy officials thus need to refine the criteria used to make resource allocation and incentive decisions accordingly. A particularly important political economy constraint on investment rates is the non-inflationary supply of wage goods.

The Greek economy in a Kaldorian developmental framework

2013 ◽  
Vol 63 (1) ◽  
pp. 61-75 ◽  
Author(s):  
Konstantinos Katrakilidis ◽  
Persefoni Tsaliki ◽  
Theodosios Tsiakis
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Economic Policies ◽  
Demand Side ◽  
Economic Growth And Development ◽  
Empirical Ground ◽  
Long Run ◽  
Short Run ◽  
Greek Economy ◽  
Difficult Times

This paper empirically explores the validity of the Kaldorian insights into economic growth and development. In doing so, we examine the three laws outlined in Kaldor’s analysis and test their relevance to the Greek economy for the period 1970–2006. We employ the ARDL method to analyse the long-run and short-run relationships among the variables. The empirical results confirm Kaldor’s proposition about the importance of the demand side of the economy and thus provide the necessary theoretical and empirical ground for innovative economic policies in these difficult times for Greece.

Bivariate Causality between FDI Inflows and Economic Growth in India Since 1990

2010 ◽  
pp. 221-223 ◽  
Author(s):  
Behrooz Shahmoradi ◽  
Enayatallah Najibzadehr
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Strong Correlation ◽  
Direct Relationship ◽  
Causal Relation ◽  
Economic Activities ◽  
Fdi Inflows ◽  
Long Run ◽  
The World

Nowadays, most of the countries in the world mostly concentrate on the flow of FDI, because it has direct relationship with economic development. The present study attempts to make a contribution in this context, by analyzing the existence and nature of causalities, if any, between FDI and economic growth in India since 1990, where growth of economic activities and FDI has been one of the most pronounced. The results indicate that there is a strong correlation between FDI inflows and GDP in India. And also there is unidirectional causal relation between FDI and GDP. Finally as co-integration shows there is no long run relationship between FDI and economic growth in India.

8 A Proposed Approach

2020 ◽  
Author(s):  
Cheng Thomas K
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Law Enforcement ◽  
Developing Country ◽  
Industrial Policy ◽  
Growth And Development ◽  
Competition Law ◽  
Competition Authority ◽  
Economic Growth And Development ◽  
Competition Law Enforcement

This chapter offers a coherent approach to competition law enforcement in developing countries. The promotion of economic growth and development should be the paramount objective of competition law enforcement in developing countries. However, ascribing the objective of the promotion of economic growth and development to competition law enforcement in developing countries does not require a detraction from a focus on promoting competition. In addition, competition law enforcement in developing countries must abide by the principle of causing no harm to the poor in society. If a developing country decides to pursue industrial policy, its competition authority may be asked to balance between competition and industrial policy objectives. Ultimately, competition law enforcement in developing countries must take into account the economic characteristics of developing countries as well as the enforcement capacity of developing country authorities.

scholarly journals BUSINESS CYCLE – GROWTH NEXUS: A REVIEW

2015 ◽  
Vol 21 (3) ◽  
pp. 519-538
Author(s):  
Marinko ŠKARE ◽  
Daniel TOMIĆ
Keyword(s):  
Economic Growth ◽  
Business Cycles ◽  
Business Cycle ◽  
Economic Policies ◽  
Empirical Testing ◽  
Long Run ◽  
Cycle Growth ◽  
Complex Process ◽  
Theoretical Reasoning

Frequent reversals in business cycles pose the question whether country can achieve macroeconomic stability and/or economic growth by coordinating its economic policies. Thus, what is the role of economic policy within the short/long run in amplifying or dampening shocks? Business cycle – economic growth relationship is rather ambiguous and has, thus, attracted controversy. In this sense the (dis)belief that there indeed exists a relationship between the economic growth and business cycle, and their long-run convergence brings us to three important hypotheses that: (1) the evaluation of cycle-growth bond is inconclusive, (2) empirical testing of cycle synchronization is exaggerated and (3) the hypothesis of coupling/decoupling is ambiguous and can be misleading. Economic growth is a complex process and cannot be attributed to a single factor of observance hence this essay is just a tool of theoretical reasoning with firm grip on empirical circumstances that lead us to consider some issues that dwell the “growth economists” these days. Our study suggests a conclusion that discussions on the cycle-growth nexus are far from over, revealing us some remarkable confrontations within empirical domain.

scholarly journals Risks in China's Financial System

2018 ◽  
Vol 10 (1) ◽  
pp. 261-286 ◽  
Author(s):  
Zheng (Michael) Song ◽  
Wei Xiong
Keyword(s):  
Economic Growth ◽  
Financial System ◽  
Capital Allocation ◽  
Financial Risks ◽  
Economic Policies ◽  
Financial Systems ◽  
Long Run ◽  
Need To Evaluate ◽  
The Government ◽  
Near Future

Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several commonly perceived financial risks and discusses their roots in China's politico-economic institutions. We emphasize the need to evaluate these risks within China's unique economic and financial systems, in which the state and nonstate sectors coexist and the financial system serves as a key tool of the government to fund its economic policies. Overall, we argue that ( a) a financial crisis is unlikely to happen in the near future and ( b) the ultimate risk lies with China's economic growth, as a vicious circle of distortions in the financial system lowers the efficiency of capital allocation and economic growth and will eventually exacerbate financial risks in the long run.

scholarly journals Foreign Aid and Economics Development Nexus: The Case of Sierra Leone

2021 ◽  
Vol 9 (6) ◽  
pp. 219-233
Author(s):  
Ezekiel Kalvin Duramany-Lakkoh
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Sierra Leone ◽  
Growth And Development ◽  
Secondary Data ◽  
Empirical Estimation ◽  
Economic Growth And Development ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of foreign aid on economic growth in Sierra Leone using cointegration and error correction methodology by Johansen and Juselius (1990). Utilizing secondary data for the period 1970 to 2018, the empirical estimation revealed that foreign aid in Sierra Lone is positively and significantly related to economic growth both in the short run and long run, confirming the importance of the study. The policy implication of the study is that the Sierra Leone government should seek more foreign aid to accelerate economic growth and development.  

scholarly journals Examining the impact of Exports and Exchange rate on Economic Growth of Turkey

2020 ◽  
Author(s):  
Iftikhar Muhammad ◽  
Malik Shahzad Shabbir
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Economic Policies ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

Abstract Purpose This study intends to analyze the long-run and short-run relationships along with the identification of causal links between exports, economic growth, and exchange rate in Turkey. Data/Design: This study uses auto-regressive distributed lags (ARDL) and Granger causality over time series monthly data from the year 2010–2018. The results indicate that exports are significantly positively related to economic growth while the exchange rate is found to be negatively related to economic growth. Findings: Moreover, findings from the test of Granger causality indicate that a unidirectional causal association is found from exports to foreign direct investment and economic growth and from economic growth to foreign direct investment. The Granger causality results indicate that an increase in exports accelerates the economic growth of Turkey and a change in growth rate and exchange rate leads to a change in foreign direct investment. Originality of work: The overall findings suggest that exports should be promoted along with the liberal-investment economic policies to boost the overall economic growth in Turkey.

scholarly journals Fixed Investment and Economic Growth: ARDL and Causality Exploration for SADC Countries

2021 ◽  
Vol 11 (4) ◽  
pp. 18
Author(s):  
Reginald Masimba Mbona ◽  
Chilombo Stephania Mumba ◽  
Tinashe Mangudhla
Keyword(s):  
Economic Growth ◽  
Purchasing Power Parity ◽  
Power Parity ◽  
Fixed Investment ◽  
Economic Activities ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
The Cost ◽  
Marginal Returns

In assessing the short run and the long-run effects of fixed investment and economic growth among Southern Africa countries, we evaluated the economic progress of the SADC (Southern African Development Committee) region. Our objective is to determine how variables (GDP, purchasing power parity, inflation, electricity, balance-of-payments, and unemployment) can be affected by the fixed investment. In determining how fixed investment affects economic activities and policies among the states, the ADRL estimation approach is applied. Using data from 13 countries in the SADC region from the period 1992-2018, we enumerate the variables’ marginal returns against the fixed investment component. The results of diagnostic and other tests show that all statistical procedures are robust. The result proves that the benefits of fixed investment are yielded over a long period rather than short periods. As a result, the cost in the short term cannot be compared to the benefits that will be enjoyed later by an economy as it becomes productive. Furthermore, the lack of consistent fixed investment among countries will eventually lead to insufficient cash flow, which will negatively affect the currency. These results would seem to suggest that the introduction of policies that promote investment will massively contribute to increased productivity and positive economic growth in the region.

scholarly journals Sustainable Local Economic Development in Tanzania: Exploring Economic Challenges in Growing the Economy

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Kaihula P. Bishagazi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Local Economic Development ◽  
Local Development ◽  
Economic Policies ◽  
Economic Activities ◽  
Top Down ◽  
Growth Center ◽  
The Government

The failure of macro-economic policies to deliver meaningful reductions in poverty and achieve basic needs in Tanzania has provoked a deep questioning of the relevance of economic growth center policies in Local Economic Development (LED). The government and development partners are increasingly shifting from the traditional top down approaches to the all-inclusive bottom up approaches for effective local development. The concept of sustainable Local Economic Development is thus examined in the context of economic activities and challenges using a case study of Shinyanga region in Tanzania. 

scholarly journals Islamic Financial Development and Economic Growth of Emerging Economy of Pakistan; a Panel Data Approach

2020 ◽  
Vol 6 (1) ◽  
pp. 197-208
Author(s):  
Muhammad Yasir Saeed ◽  
Kashif Hamid ◽  
Muhammad Ahmad Ur Rehman ◽  
Muhammad Nazam
Keyword(s):  
Economic Growth ◽  
Islamic Banks ◽  
Economic Activities ◽  
Dynamic Interactions ◽  
Policy Framing ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
Individual Capacity ◽  
Islamic Economic

The purpose of this study is to investigate the dynamic interactions between five pure Islamic banks of Pakistan and economic growth by using Panel ARDL method over the period of 2006-2016. The study elaborates strong confirmation and advocates the significant positive long-run relationship with economic growth. However, in short-run, each bank has individual significant positive relationship with economic growth in its individual capacity. The findings of this study are encouraging and signify a considerable contribution to recognize how pure Islamic banks activities translated into economic performance of the country. Although prudential regulations of State Bank of Pakistan are quite sound and their legislative structure and policy framing is also equally good but they are required to enhance the number of pure Islamic banks in the country for offering multiple options to clientele in order to promote Islamic economic activities in the country  to make Pakistan more prosperous.

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