A sector-level analysis of output club convergence in case of a global economy

2020 ◽  
Vol 47 (4) ◽  
pp. 747-767
Author(s):  
Vaseem Akram ◽  
Pradipta Kumar Sahoo ◽  
Badri Narayan Rath
Keyword(s):  
Global Economy ◽  
Primary Source ◽  
Output Growth ◽  
Club Convergence ◽  
Content Type ◽  
Agriculture Industry ◽  
Main Driver ◽  
Per Capita ◽  
Main Component ◽  
Capita Output

PurposeThis paper investigates the per-capita output club convergence in case of 120 countries for the period 1995–2015. Further, we disaggregate per-capita output into three broad sectors such as agriculture, industry, and service and investigate the convergence hypothesis.Design/methodology/approachThe paper tests this hypothesis using the Phillips and Sul panel club convergence technique.FindingsOur findings are as follows: (1) our results indicate the evidence of output divergence for the full sample; (2) when countries are divided into different clubs, the results exhibit the sign of per capita output club convergence both for aggregate and three major sectors. Further, this study confirms that industry's per capita output is the main driver for aggregate per-capita output club convergence in case of club 1. For club 2, agriculture's per capita output is a primary source for aggregate per capita output club convergence. Likewise, in the case of clubs 3 and 4, we find the service sector's per capita output is the main component for aggregate per-capita output club convergence; (3) both the service and industry sectors are major drivers for aggregate per-capita output club convergence.Practical implicationsThis study suggests to the policymaker that sector-specific policies need to be adopted to boost the per-capita output growth by improving the performance of each of the sectors across the countries.Originality/valueNotwithstanding, there are many studies that examine the output convergence using a notion of beta and sigma convergence, but studies regarding per capita output club convergence both at the aggregate and sectoral level are scanty.

scholarly journals Democratic Institutions and Variability of Economic Growth in Pakistan: Some Evidence from the Time-series Analysis

2009 ◽  
Vol 48 (3) ◽  
pp. 269-289 ◽  
Author(s):  
Muhammad Zakaria ◽  
Bashir Ahmed Fida
Keyword(s):  
Time Series ◽  
Jel Classification ◽  
Output Growth ◽  
Empirical Literature ◽  
Growth Time ◽  
Growth Equation ◽  
Per Capita ◽  
Using Data ◽  
Capita Output

This paper explores the empirical association between democracy and per capita output growth in Pakistan using data for the period 1947 to 2006. The findings of the paper indicate a weak negative association between democracy and output growth. Consistent with some current empirical literature, democracy is also found to influence output growth indirectly. The empirical results are robust to different democracy variables and output growth equation specifications. The empirical findings also highlight the role of other variables in determining output growth and, except for rising oil prices, show its positive linkage to physical and human capital, government consumption, openness of trade practices and inflation. JEL classification: C22, O43 Keywords: Democracy, Growth, Time-series

THE EFFECTS OF NEGATIVE POPULATION GROWTH: AN ANALYSIS USING A SEMIENDOGENOUS R&D GROWTH MODEL

2016 ◽  
Vol 21 (7) ◽  
pp. 1545-1560 ◽  
Author(s):  
Hiroaki Sasaki ◽  
Keisuke Hoshida
Keyword(s):  
Population Growth ◽  
Growth Model ◽  
Technological Progress ◽  
Output Growth ◽  
Total Output ◽  
Employment Share ◽  
Per Capita ◽  
Finite Time Horizon ◽  
Capita Output ◽  
Negative Population

This study investigates the rates of technological progress, total output growth, and per capita output growth when population growth is negative using a semiendogenous research and development (R&D) growth model. The analysis shows that within a finite time horizon, the employment share of the final goods sector reaches unity and that of the R&D sector reaches zero; accordingly, the rate of technological progress tends toward zero. In this case, the growth rate of per capita output asymptotically approaches a positive value.

scholarly journals ECONOMIC DEVELOPMENT

2019 ◽  
Author(s):  
Rani Rahayu Nengsih
Keyword(s):  
Economic Growth ◽  
Output Growth ◽  
Total Output ◽  
Development Indicators ◽  
The Poor ◽  
Long Run ◽  
Per Capita ◽  
The Rich ◽  
Distribution Of Income ◽  
Capita Output

Economic growth is the process of increasing per capita output in the long run. economic growth only discuss about how much output growth or how much gnp is received without questioning the largest source of contribution from the total output received. So it is not surprising if one of the development indicators cannot be used as a reflection of the distribution of income of a country. It is also not surprising, when a country experiences growth, the country will also face the problem of inequality in income distribution, so that the rich the richer the poor the poorer they become.

Convergence in electricity consumption across Indian states: a disaggregated analysis

2019 ◽  
Vol 14 (3) ◽  
pp. 624-637 ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Pradipta Kumar Sahoo ◽  
Vaseem Akram
Keyword(s):  
Electricity Consumption ◽  
Steady States ◽  
Consumption Patterns ◽  
Speed Of Convergence ◽  
Club Convergence ◽  
Indian States ◽  
Content Type ◽  
Agriculture Industry ◽  
User Groups ◽  
Practical Implications

Purpose The purpose of this study is to examine whether the electricity consumption patterns across Indian states do converge. Design/methodology/approach This study considers 18 Indian states spanning over the period 1970-1971 and 2014-2015, using the recently developed Phillips and Sul panel convergence technique that accounts the multiple steady states. Findings The results provide the following insights. First, the authors find evidence of convergence in electricity consumption among all Indian states. This suggests that electricity consumption patterns for Indian states are converging to a common steady state. Second, to provide broader insights, we further investigate the convergence in electricity consumption among user groups such as agriculture, industry, commercial, domestic and miscellaneous. The results reveal that commercial, domestic and miscellaneous groups are also converging. Third, the non-convergence patterns in agriculture and industry enable us to investigate the possibility of clubs or the multiple common steady states. The results indicate the occurrence of three clubs in case of agriculture and two clubs in case of the industry. Fourth, this study also inspects the relative speed of convergence among the user groups. The results reveal the higher speed of convergence in case of the domestic user group. Practical implications The findings enable policymakers to formulate an appropriate energy policy to accommodate the future electricity demand across Indian states and prioritize low electricity consumption states so that they receive a greater share. Originality/value This is the first study that examines the convergence in electricity consumption across Indian states at aggregate and user groups using a new panel club convergence technique.

Prospects for oil and gas in the second quarter

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Global Economy ◽  
Oil And Gas ◽  
Output Growth ◽  
Content Type ◽  
Natural Gas Prices ◽  
Oil And Natural Gas

Subject Prospects for oil and gas in the second quarter Significance Elevated levels of supply will keep oil and natural gas prices weak. The recent uptick in the price of Brent crude is not reflected in the oversupplied US market, so the slowdown in US crude output growth, centred on shale, should continue into the second quarter. Brent's recent price strength, in part, reflects brightening prospects for the global economy, but more evidence is needed to push prices higher.

scholarly journals Aging, Output Per Capita, and Secular Stagnation

2019 ◽  
Vol 1 (3) ◽  
pp. 325-342 ◽  
Author(s):  
Gauti B. Eggertsson ◽  
Manuel Lancastre ◽  
Lawrence H. Summers
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Negative Impact ◽  
Population Aging ◽  
Output Growth ◽  
Living Standards ◽  
Secular Stagnation ◽  
Per Capita ◽  
The Relationship ◽  
Capita Output

This paper re-examines the relationship between population aging and economic growth. We confirm previous research such as Cutler et al. (1990) and Acemoglu and Restrepo (2017) that show positive correlation between population aging and per capita output growth. Our contribution is demonstrating that this relationship breaks down when the adjustment of interest rates is inhibited by a lower bound on nominal rates, as during the Great Financial Crisis decade. Indeed, during the “secular stagnation regime” of 2008–2015 that prevailed in a number of countries, aging had a negative impact on living standards, consistent with the secular stagnation hypothesis. (JEL E23, E32, E43, G01, I31, J14)

The Oxford Handbook of Management in Emerging Markets

2018 ◽  
Keyword(s):  
Emerging Markets ◽  
Coming Out ◽  
Global Economy ◽  
Primary Source ◽  
Production Networks ◽  
Global Knowledge ◽  
Business Systems ◽  
Competitive Strategies ◽  
Fundamental Building Block ◽  
The World

Emerging Markets are the primary source of growth for business in the 21st century. This makes an understanding of managing businesses in emerging markets a fundamental building block for competing in today's global economy. This book's approach is to identify key elements of the business systems and competition in emerging markets around the world, and then to look at competitive strategies of local and multinational companies going into and coming out of these countries. Specific focus is offered on a selection of countries/regions. These emphases should serve both researchers and managers interested in knowing more about managing firms in emerging markets in general and in specific countries in particular. The essays highlight the tension between local and global knowledge, that is, views of business that apply everywhere around the world versus views that are particular to emerging markets. The essays also explore the role of local and international firms operating in emerging markets within global value chains or production networks.

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