scholarly journals Macroeconomics of growth

2019 ◽  
pp. 59-91
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Degrees Of Freedom ◽  
Policy Instruments ◽  
High Growth ◽  
Supply Side ◽  
Demand Side ◽  
Macroeconomic Policies ◽  
Government Deficits ◽  
Inflation Rates ◽  
Investment Growth

Economic growth over fifty years in the Asian-14 has been stunning. Investment and savings, which rose rapidly, were the main drivers of growth. Education was also a sustained driver of growth on the supply-side. From the demand-side, growth was primarily private-consumption-expenditure led and investment led. The interaction between the supply-side and the demand-side suggests a virtuous circle of cumulative causation, where rapid investment growth coincided in time with rapid export growth, leading to rapid GDP growth. In macroeconomic management, the successful countries did not follow orthodox prescriptions of balanced budgets and price stability. Their primary macroeconomic objectives were economic growth and employment creation. Their macroeconomic policies were also more versatile in their use of policy instruments. Their success in maintaining high growth rates increased their degrees of freedom, which enabled them to finance government deficits and raise sustainable levels of government borrowing, while making higher inflation rates politically more acceptable, which would not have been possible if economic growth was slow.

Appraising the Economic Growth Prospects of China’s Services Sector

China Report ◽  
2021 ◽  
Vol 57 (2) ◽  
pp. 131-150
Author(s):  
Uday Khanapurkar
Keyword(s):  
Economic Growth ◽  
Real Estate ◽  
Manufacturing Industry ◽  
High Growth ◽  
Gdp Growth ◽  
Demand Side ◽  
Services Sector ◽  
Growth Prospects ◽  
Manufacturing Growth ◽  
China’S Economy

This article examines the economic growth prospects of China’s services sector. Reportage on China’s economy and its data releases tends to focus largely on aggregate GDP growth, manufacturing growth, retail sales and investments, and fails to adequately cover services despite them being the largest contributor to growth. The article parses the growth of China’s various services subcomponents across a range of parameters and assesses that the industry has come under duress with a slowdown in complementary manufacturing and the dissipation of growth bubbles in finance and real estate. It is further observed that reforms necessary for spurring services growth are at a nascent stage, proceed slowly, and are imperilled by GDP growth targets that result in policies favouring the manufacturing industry. In sum, while China’s services growth prospects are hardly in dire jeopardy due to favourable demand-side conditions, achieving potential and affecting convergence with high income countries will necessitate the expedition of reforms and the engineering of a sustained high growth phase in the sector.

scholarly journals Demand-oriented innovation policy: Mapping the field and proposing a research agenda for developing countries

2020 ◽  
Vol 5 (1) ◽  
pp. 158-181
Author(s):  
Pável Reyes-Mercado ◽  
Adrianela Angeles ◽  
Guillermo Jesús Larios-Hernández
Keyword(s):  
Developing Countries ◽  
English Language ◽  
Innovation Policy ◽  
Policy Instruments ◽  
Supply Side ◽  
Demand Side ◽  
On Demand ◽  
Deep Focus ◽  
Research Propositions ◽  
Innovation Policies

This article conducts a scoping review of demand side innovation policies and its associated instruments in relevant English language academic literature. Demand-side innovation policies aim to improve contextual conditions to encourage innovation adoption to address government-defined societal challenges. From the demand approach, innovation policy is expected to involve a directionality, which originates from collective priorities around relevant problems. Based on a scooping review of the innovation policy literature from the demand perspective, this research has characterized trends in the discussion about innovation policies that target such challenges, a perspective that complements the traditional supply side policy instruments. Findings indicate that literature on demand-side policies has mainly addressed energy and sustainability issues in European countries and China. Additionally, although demand-side policies have been advocated for a relatively long time, the literature recognizes that a policy mix involving also the supply-side can be more effective in encouraging innovation. In Latin America, demand-side policies have been poorly understood, leading to a defective implementation of policies and instruments. The stage of research on demand-side policies is still evolving and this article advances research propositions on innovation policy, with a deep focus on how they can be implemented in innovation-lagging developing countries.

scholarly journals Reflections on neo-Kaleckian growth regimes: a Marxian reproduction perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhao ◽  
Jiahe Tian ◽  
Yuchen Duan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Technological Progress ◽  
Supply Side ◽  
Demand Side ◽  
Content Type ◽  
The Impact ◽  
Kaleckian Model

PurposeThe neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through the discussion of different forms of investment decision function, this paper constructs the analysis framework of wage-led and profit-led economic growth regimes.Design/methodology/approachThe model has become an important theoretical paradigm for current Western heterodox economists regarding the research on the impact of functional income distribution on economic growth, and it has a very large impact on both theoretical and empirical research. Starting from Marx's reproduction theory, this article discusses the theoretical shortcomings of the neo-Kaleckian growth regime model.FindingsThis paper mainly focuses on three aspects: (1) the ideological legacy of “Smith's Dogma”; (2) neglecting the restrictions on income distribution from the organic composition of capital and the surplus value rate; (3) technological progress and the formation of a new long economic wave.Originality/valueThe authors believe that the neo-Kaleckian model unilaterally emphasizes the demand-side factors in the economy and, unconsciously or not, ignores the role of the supply-side, which makes it encounter certain limitations in explaining long-term growth. Even if some empirical conclusions are employed to bridge functional income distribution and technological progress, there is still a lack of a theoretical basis for accurately describing long-term economic changes using this model. In order to better promote high-quality economic development and accelerate the formation of a new pattern of economic development in which the domestic large-scale cycle is the mainstay and the domestic and international double cycles promote each other, the authors need to adopt a policy combination with the supply-side as the main and the demand-side as the supplement, and to work from both sides.

Economic growth and the politics of entitlement

2009 ◽  
Vol 55 ◽  
pp. 97-125
Author(s):  
Robin Osborne
Keyword(s):  
Economic Growth ◽  
Human Nature ◽  
Supply Side ◽  
Aggregate Productivity ◽  
Demand Side ◽  
The Face ◽  
Minimum Number ◽  
Per Capita ◽  
Default Assumption ◽  
Over Time

Discussions of economic growth in antiquity have been primarily concerned with whether or not it occurred. Can we, from the array of unsystematic and often random information we have about individual and community wealth, and in the face of our very considerable ignorance about even such basic matters as population levels, find ways of measuring either aggregate or per capita growth? The second focus of scholarly energy has been on how growth might have been achieved, on levels of productivity and what limited them, on how institutions might have impeded or facilitated growth, and on the degree to which barriers may have been deliberately removed over time and growth consciously encouraged. This paper is not directly interested in either of those sets of questions. It is interested in who wanted growth in the first place.The default assumption in discussions of growth often seems to be, at least implicitly, that it is brought about either by need or by greed. The desire of individuals to satisfy their needs more fully leads to an increase in, at the very least, aggregate productivity, and might be expected inevitably to drive growth from the supply side. The desire of individuals to increase their consumption drives growth from the demand side. The default assumptions tend to stop there, as ifwhat counts as need is absolute, a matter of a certain minimum number of calories or ‘wheat equivalent’ a day, and as if greed is simply part of human nature.

National goals and model of economic growth: New in the Russian socio-economic policy of 2018—2019

2019 ◽  
pp. 5-28 ◽  
Author(s):  
Vladimir A. Mau
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Supply Side ◽  
Demand Side ◽  
Institutional Reforms ◽  
Global Trends ◽  
Developed Economies ◽  
Growth Policy ◽  
Social And Economic Development ◽  
Fiscal And Monetary Policy

The paper deals with Russian social and economic development in the context of global trends. New economic crisis is looming ahead, but developed economies do not have sufficient fiscal and monetary instruments to mitigate it. The lack of institutional reforms, which were put on agenda by the crisis of 2008—2009, is another source of experts’ concerns. Russian authorities have announced a set of national goals and projects as the central point of social and economic policy for 2018—2024. The new economic growth policy includes the shift from the demand-side growth model to the supply-side one, broad implementation of project methods in economic policy, and continuation of conservative fiscal and monetary policy.

scholarly journals Structural change and economic transformation

2019 ◽  
pp. 92-114
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Structural Transformation ◽  
Weak Link ◽  
Economic Transformation ◽  
Supply Side ◽  
Demand Side ◽  
Services Sector ◽  
Productivity Increase ◽  
Growth Promoting

Development in Asia has been associated with a structural transformation of economies. In this process, economic growth drove structural change from the demand-side as incomes rose and production activities followed, while structural change drove economic growth from the supply-side as labour moved from low-productivity to higher-productivity activities. Such labour transfer between sectors was growth-promoting in earlier stages, while productivity increase within sectors was growth-promoting in later stages. There was an exit of labour from agriculture everywhere, while the services sector progressively became the largest employer, with the highest output-share, across Asia. The process of structural transformation remains incomplete. In many countries it is necessary to address the neglect of agriculture and renew the emphasis on manufacturing, just as it is essential to exploit the synergies between manufacturing and services. Economic growth cannot be sustained and structural transformation cannot be completed even if one of three sectors is a weak link in the chain.

scholarly journals Evaluating Elements of Demand-Side Policy Imperatives for Biogas from Waste Scheme Diffusion in the UK

2021 ◽  
Vol 14 (5) ◽  
pp. 13
Author(s):  
Abhijeet Acharya ◽  
Lisa A. Cave
Keyword(s):  
Policy Instruments ◽  
Energy Transition ◽  
Developed Countries ◽  
Environmental Benefits ◽  
Supply Side ◽  
Demand Side ◽  
Market Failures ◽  
Policy Model ◽  
Policy Interventions ◽  
The Uk

Over the last decade, demand-side policies are increasingly implemented to correct market failures and overcome the systemic problem in complex social-technical systems such as energy transition. This paradigm shift in policy approach results from realizing that relying solely on supply-side policy instruments to push innovative solutions into the market is insufficient. As part of the energy transition, many developed countries have considered Biogas from Waste (BfW) based on the Anaerobic Digestion (AD) process as a realistic renewable energy source and aim to create social, economic, and environmental benefits for their communities. Despite several policy instruments in the UK over the last ten years, the growth of BfW schemes remains subdued and faces market failures. This paper aims to evaluate elements of demand-side policies focused on addressing market failures to increase the diffusion of BfW schemes in the UK. We discussed effective demand-side policies related to the biogas sector in other European countries like Sweden, Denmark, and Italy. In the analysis, we observed UK’s policy instruments do not effectively address market externalities in the biogas sector. We also observed the biomethane market share in the UK is minimal; there is no market policy for green gas labeling towards demand articulation. The paper also made recommendations for policymakers in the UK to address market failures by proposing a push-pull policy model that combines demand-side policy interventions with supply-side policies.

scholarly journals DAMPAK INFLASI TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

2012 ◽  
Vol 1 (2) ◽  
pp. 123
Author(s):  
Doni Satria
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Inflation Rate ◽  
Output Growth ◽  
The Other ◽  
Annual Data ◽  
Supply Side ◽  
Demand Side ◽  
Long Run ◽  
Causality Relationship

The long run relationship between inflation and economic growth has been recognized by macroeconomist in the last three decades. For developing countries inflation effect on economic growth is more supply side phenomena than demand side or economic fluctuation (Basu, 2000). On the other hand stable and low inflation rate in the long run will promote higher output growth. I found significance two way causality between inflation and growth in Indonesia. The result has shown a non linier causality relationship from inflation to economic growth using Indonesian annual data from 1981 to 2010. The data reveals there is long run non linier relationship between inflation and growth.

scholarly journals Selection of Policy Instruments on Integrated Care in China: Based on Documents Content Analysis

2020 ◽  
Vol 17 (7) ◽  
pp. 2327
Author(s):  
Xin Yue ◽  
Kaining Mu ◽  
Lihang Liu
Keyword(s):  
Environmental Policy ◽  
Health Service ◽  
Integrated Care ◽  
Policy Instruments ◽  
Supply Side ◽  
Demand Side ◽  
Care Policy ◽  
Policy Documents ◽  
Environmental Policy Instruments ◽  
Service Supply Chains

Facing the aggravating trend of an aging population and a fragmented medical service delivery system, the Chinese Central Government has introduced a series of policies to promote the development of integrated care against the background of the “Healthy China Strategy”. The achievement of integrated care depends on the choice of policy instruments. However, few studies have focused on how policy instruments promote the practice of integrated care in China. This article aims to obtain a deeper understanding of the use of policy instruments in the development of integrated care in China. Policy documents are the carriers of policy instruments. National-level integrated care policy documents from 2009 to 2019 were selected. Using the qualitative document analysis method, this paper conducts an analysis of integrated care policy instruments. In order to comprehensively view the integrated care policy instruments, a three-dimensional analytical framework consisting of the policy instruments dimension, stakeholders dimension, and health service supply chains dimension is proposed. The results are as follows. (1) From the perspective of policy instruments, the integrated care policy has adopted supply-side policy instruments, demand-side policy instruments, and environmental policy instruments. Among the three types of policy instruments, environmental policy instruments are used most frequently, supply-side policies are preferred, while demand-side policy instruments are relatively inadequate. (2) As for the stakeholders dimension, the central policy instruments focus on the health service providers, while less attention is paid to the health service demanders. (3) In terms of health service supply chains, the number of policy instruments used in the prevention stage is the highest, followed by the treatment stage, whereas less attention paid to the rehabilitation stage. Finally, suggestions were made for the development of integrated care by better perfecting policy instruments.

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