An Empirical Analysis of China's Dualistic Economic Development: 1965–2009

We analyze China's rapid economic development in the context of the dualistic development theory. Over the period 1965–2009, we find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labor migration and capital accumulation. We find that the sectoral reallocation of labor plays a significant role in promoting China's economic growth. Further, we find that the marginal productivity of agricultural labor stopped stagnating in 1978, which indicates that China entered quickly into phase two of economic development with the initiation of market reforms. Moreover, by 2009, the marginal productivity of labor has likely exceeded the institutional wage, as defined by the initially low average labor productivity, indicating that China may be now in the process of entering phase three of economic development.

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Is Bangladesh’s Economy Approaching the Lewis Turning Point?

South Asia Economic Journal ◽

10.1177/1391561418822208 ◽

2019 ◽

Vol 20 (1) ◽

pp. 19-45

Author(s):

Subir Bairagi ◽

Muntaseer Kamal

Keyword(s):

Economic Growth ◽

Growth Rate ◽

Economic Development ◽

Service Sector ◽

Turning Point ◽

Job Creation ◽

Marginal Productivity ◽

Real Wages ◽

Agriculture Sector ◽

Speed Up

During the last decade, Bangladesh economy grew consistently over 6 per cent annually; however, growth rate in the agriculture sector declined. Labour away from agriculture is evident; it is also evident real wages in the agriculture sector are rising. This could be an indication that Bangladesh is moving to a different stage of economic development. This article investigates whether Bangladesh is approaching a stage of economic development where marginal productivity of labour equals its price, called the Lewis turning point (LTP). We find that the reallocation of labour away from agriculture has had a positive but insignificant impact on economic growth in Bangladesh. We also find that the surplus agricultural labour has not fully been absorbed by the economy. Therefore, we conclude Bangladesh has yet to reach the LTP and suggest initiating policies (e.g., job creation in the service sector) that might speed up the country’s movement to the LTP. JEL: O11, O17, O41, O53

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Growth and Social Capital: Empirical Analysis of the Relationship

Mechanism of an economic regulation ◽

10.21272/mer.2019.84.11 ◽

2019 ◽

pp. 128-134

Author(s):

Ksenia V. Bagmet

Keyword(s):

Economic Growth ◽

Social Capital ◽

Economic Development ◽

Social Development ◽

Empirical Analysis ◽

Panel Data Analysis ◽

Well Being ◽

Developed Countries ◽

International Institute ◽

Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

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Institutions and development: the primacy of microanalysis

Journal of Institutional Economics ◽

10.1017/s1744137411000105 ◽

2011 ◽

Vol 7 (4) ◽

pp. 549-553 ◽

Cited By ~ 3

Author(s):

MWANGI S. KIMENYI

Keyword(s):

Economic Development ◽

Empirical Analysis ◽

Institutional Arrangements ◽

Development Theory ◽

Policy Relevance ◽

Microeconomic Analysis ◽

Methodological Problems ◽

Cross Country ◽

Economic Development Theory ◽

The Empirical Analysis

Abstract:In recent years, there have been major advances in the empirical analysis of the link between institutions and development. However, a number of methodological problems – both theoretical and empirical – remain unresolved and have been well articulated by Ha-Joon Chang in his article ‘Institutions and Economic Development: Theory, Policy and History’. These problems raise valid concerns about the policy relevance of the evidence arising from the studies. A more reliable approach to study the link between institutions and development and overcome the inherent problems of cross-country empirical analysis is to direct focus to microeconomic analysis of institutions. Such an approach avoids ideologically driven normative judgments about the superiority of particular institutional arrangements and also offers a more credible and tractable avenue to investigate institutional change.

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Vietnam’s Trade Policy: A Developing Nation Assessment

International Journal of Community Development and Management Studies ◽

10.31355/9 ◽

2017 ◽

Vol 1 ◽

pp. 013-037 ◽

Cited By ~ 1

Author(s):

Steven J Clarke ◽

Mohammamadreza Akbari ◽

Dr Shagheyegh Maleki Far

Keyword(s):

Economic Growth ◽

Economic Development ◽

Trade Policy ◽

Foreign Aid ◽

Strategic Plan ◽

The Body ◽

Development Theory ◽

Trade Patterns ◽

Strategic Development ◽

Developing Nation

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose................................................................................................................................................................................................... This paper is a review of the progress of the Vietnam socio-economic and development plan and an assessment of the extent to which Vietnam is putting in place the critical social and economic development structures that will enable it to reach the status of “developed nation” in the time set (2020) by its national strategic plan. The research will identify and review trade patterns, trade policy and the effect of foreign aid on Vietnam’s plan to transform its economy and society from a developing nation status to status of developed nation. The overriding question stands as “is” Vietnam effectively moving towards developed nation status soon”? Background................................................................................................................................................................................................... This paper examines the history of Vietnam from the command economy in its transition to a market driven economy, the criteria, hurdles and challenges as the country moves towards a developed country status. Methodology................................................................................................................................................................................................... Applied research based on the body of research in socio-economic development theory, international trade and market theory. The review is conducted by collecting and analyzing data on foreign trade, foreign aid, business and general economic growth, development and social wellbeing. It identifies and appraises the trade patterns, trade effects, socio-economic policies and the effect of foreign aid] on the economic growth and the progress of the country towards becoming a developed nation state. Contribution................................................................................................................................................................................................... The findings will assist academic, business and government researchers, policy and decision makers engaged developing Vietnam’s trade policies and strategic plan for its it future growth and economic progress towards a developed nation status. The paper will also provide additional insight into the business and market structure and environment in Vietnam and the role it plays aiding its growth and development. Findings.......................................................................................................................................................................................................... Vietnam has experienced significant progress to date based on conventional developed nation criteria. However, there is an ongoing need for continued assertive governmental application of geo-economic and geopolitical policies focusing on sustainable, comprehensive, and vital social, cultural and economic growth. Recommendations for Practitioners................................................................................................................................................................ Specific policies and strategies for government and business reforms in Vietnam must focus on, 1. Replacing the projected benefits in growth utilizing accomplishments to date from negotiations and strategic development of the TPP, in-spite of current delays or withdrawal. 2. Continuing use of US financial aid and ODA sources to enhance HDI and support Vietnam’s commercial and social opportunities 3. Continued industrial zone development 4. Continued human labor improvements 5. Continued export expansion programs 6. Continued close working relationship with the WTO 7. Continued development strategies including SEDS, SEDPs, and FTAs Recommendation for Researchers................................................................................................................................................................ Researchers, when collecting economic and social data, need to [adhere to World Trade Standards data collection, measurement, classification, and estimation of trading data: for example,] precisely define, and determine the validity, accuracy, expected bias and relevant statistics and classification methods used by government agencies and international organizations. Impact on Society........................................................................................................................................................................................... Vietnam’s drive towards developed nation status will enhance the quality of life for a greater number of its citizens. Future Research................................................................................................................................................................................................ Future researchers ought to focus on specific elements of HDI and forms of foreign aid support for long-term economic and social development, and enhancing governmental reform of its dynamic and strategic development potential.

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Human Capital as a Determinant of Long-Term Economic Growth

Advances in Finance, Accounting, and Economics - Economic Reforms for Global Competitiveness ◽

10.4018/978-1-5225-3856-1.ch013 ◽

2018 ◽

pp. 249-264

Author(s):

Siriwan Saksiriruthai

Keyword(s):

Economic Growth ◽

Human Capital ◽

Economic Development ◽

Capital Accumulation ◽

Economic Reforms ◽

Success Factor ◽

Human Capital Accumulation ◽

Modern Economic ◽

And Migration ◽

Capital Development

This chapter aims to investigate the importance of human capital as a key success factor to economic growth and modern economic reforms as well as exploring determinants of human capital. Then factors influencing human capital accumulation as well as case studies are discussed to illustrate the influence of human capital to economic growth and reforms. Together with economic reforms, supportive education and human capital development policies, some countries could generate a dramatic technology and economic development. Currently, human capital even becomes crucial because of this technological progress. Thus, modern economic reform needs more intense human capital accumulation to cope with more advanced technology. In this chapter, we investigate the role of human capital accumulation by education and migration process in economic reforms and development of three countries with completely different conditions of economic development.

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Human Capital as a Determinant of Long-Term Economic Growth

Research Anthology on Preparing School Administrators to Lead Quality Education Programs ◽

10.4018/978-1-7998-3438-0.ch067 ◽

2021 ◽

pp. 1518-1533

Author(s):

Siriwan Saksiriruthai

Keyword(s):

Economic Growth ◽

Human Capital ◽

Economic Development ◽

Capital Accumulation ◽

Economic Reforms ◽

Success Factor ◽

Human Capital Accumulation ◽

Modern Economic ◽

And Migration ◽

Capital Development

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An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

International Journal of Management and Economics ◽

10.2478/ijme-2014-0012 ◽

2014 ◽

Vol 38 (1) ◽

pp. 7-30

Author(s):

Mariusz Próchniak

Keyword(s):

Economic Growth ◽

Economic Development ◽

Empirical Analysis ◽

Economic Freedom ◽

Institutional Environment ◽

Positive Impact ◽

Policy Implications ◽

Regression Equations ◽

Solow Model ◽

The Impact

Abstract This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute), the governance indicator (World Bank), the democracy index (Freedom House), and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom) has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

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Multi-Factor Index of Public Health: Empirical Analysis and Application in Economic Development of Transition Economies

Journal of Konbin ◽

10.2478/v10040-008-0015-9 ◽

2008 ◽

Vol 4 (1) ◽

pp. 133-148

Author(s):

Lukianenko Iryna ◽

Krasnikova Larysa ◽

Podvysotskaya Tamara

Keyword(s):

Public Health ◽

Economic Growth ◽

Economic Development ◽

Empirical Analysis ◽

Transition Economies ◽

Productivity Growth ◽

Empirical Investigation ◽

Function Model ◽

Health Indices ◽

Factor Index

Multi-Factor Index of Public Health: Empirical Analysis and Application in Economic Development of Transition EconomiesThe main focus of the paper is empirical investigation of health factor influence on economic growth in transition economies. Extending production function model of economic growth by constructed health indices the influence of health factor on the real output was examined. The main finding is that under majority of specifications health indices were found to be positive and significant. The influence of health on productivity growth in transition countries does not differ much from the health influence on productivity in the other countries groups.

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A Critique of Akhtar’s Model of an Economic Economy

American Journal of Islam and Society ◽

10.35632/ajis.v11i4.2449 ◽

1994 ◽

Vol 11 (4) ◽

pp. 610-617

Author(s):

Shujaat Ali Khan

Keyword(s):

Economic Growth ◽

Economic Development ◽

Empirical Analysis ◽

Statistical Data ◽

Sufficient Condition ◽

Positive Contribution ◽

Review Of The Literature ◽

Goods And Services ◽

Consistent Increase ◽

Opening Paragraph

In an article entitled “Modelling the Economic Growth of anIslamic Economy,”l M. Ramazan Akhtar presented a mathematicalmodel that subjects Allahs attributes to measurement and underminesthe cause of the Islamization of knowledge, which he intended toserve. In his article, there are several flaws, mistakes, and inconsistenciesthat deserve comment and criticism. This paper has examinedcritically Akhtar’s model and found it to be neither informative norpredictive. Before presenting the critique, however, I would like tocomment on some of the general weaknesses of the article.In the opening paragraph (p. 491), Akhtar says: “Growth dependson several factors, among them a consistent increase in the amount ofphysical goods and services produced over a given period of time.This is usually taken as an index of economic growth.” Although economicgrowth is defined and measured by the increase in the amountof goods and services produced over a given period of time, it doesnot imply that the former depends on the latter. There is no cause andeffect relationship between the two.In his “Review of the Literature” (p. 492), Akhtar makes a generalstatement that Muslim economists use the terms “economic growth”and “economic development” interchangeably. The economic literaturethat has been produced since the early 1960s makes a clear distinctionbetween these two terms and views economic growth as anecessary, but not a sufficient, condition for economic development(Clower 1966). Most Muslim economists hold this mainstream view.If there are still some using the terms interchangeably, they are theexceptions.In the second paragraph on page 495, Akhtar gives an Englishtranslation of Qur’an 39:9. In fact, this is a translation of 41:10-aserious mistake and not a typographical error.The last paragraph on page 491 reads: “The hypothesis is examinedtheoretically because statistical data for empirical analysis is not available.”But at the end of this paragraph, he asserts: “Analytical resultsshow that moral factors make a positive contribution to both income ...

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The isusu: an institution for capital formation among the Ngwa Igbo; its origin and development to 1951

Africa ◽

10.2307/1160396 ◽

1984 ◽

Vol 54 (4) ◽

pp. 46-58 ◽

Cited By ~ 6

Author(s):

Anthony I. Nwabughuogu

Keyword(s):

Economic Growth ◽

Economic Development ◽

Significant Role ◽

Capital Formation ◽

Credit Associations ◽

Opening Paragraph ◽

Credit Institutions

Opening ParagraphTwo contrasted viewpoints are adopted by scholars towards indigenous credit institutions in underdeveloped societies. The first holds that such institutions cannot play any significant role in capital formation in those societies. Thus Firth (1964: 15–34) doubts ‘if such credit associations can contribute substantially to capital formation to promote economic growth significantly’. The second viewpoint is held by those who accept the important contributions of these institutions in the process of development but understate their functions and value in the process of development. Geertz (1962: 241–63) belongs to this group. After analysing indigenous credit institutions in Asia and Africa, he asserts that they can serve as a kind of ‘middle rung’ in economic development. He sees them as an ‘educational mechanism in terms of which peasants learn to be traders not merely in the narrow occupational sense, but in the broad cultural sense’. These conclusions seem to have influenced other scholars studying credit institutions in Africa. For instance, in his study of credit associations among the Afikpo Igbo, S. Ottenberg (1968: 237–52) adopts much of Geertz's stance.

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