Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness

2021 ◽  
pp. 001573252110454
Author(s):  
Thanh Dinh Su ◽  
Canh Phuc Nguyen
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Trade Openness ◽  
Public Spending ◽  
Factor Productivity ◽  
Jel Codes ◽  
Tfp Growth ◽  
Negative Factor ◽  
Catalytic Role

This study examines the catalytic role of trade openness in the relationships between human capital and public spending and total factor productivity (TFP) growth in 44 developing countries over the 1980–2014 period. Applying various estimation techniques to deal with autocorrelation, heteroscedasticity and cross-section dependence, the study finds that (a) the effect of human capital on TFP is nonlinear, (b) government consumption positively affects TFP but military spending is a negative factor and (c) trade openness significantly improves the positive influences of these factors on TFP. The results imply the important role of trade liberalisation in productivity evolution in developing countries. JEL Codes: F43, H52, O47

scholarly journals The Determinants of Total Factor Productivity in Polish Subregions. Panel Data Analysis

2013 ◽  
Vol 15 (4) ◽  
pp. 17-29 ◽  
Author(s):  
Barbara Dańska-Borsiak ◽  
Iwona Laskowska
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Data Analysis ◽  
Panel Data Analysis ◽  
Factor Productivity ◽  
Factors Affecting ◽  
Tfp Growth ◽  
Long Run

The significant role of TFP in stimulating the long-run economic development induces researchers to seek for the sources of the TFP growth. The mail goals of the paper are: to estimate the level of TFP in the years 2003-2009 at the level of subregions, and to define the factors which determine this estimated TFP level. The first hypothesis being verified is, that the role of the quality of human capital in stimulating long-run economic growthis crucial and can be measured by the model. The second hypothesis is, that there are some factors affecting the TFP level which are common in all subregions.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

Determinants of Industrial Development

2021 ◽  
pp. 378-406
Author(s):  
Fiona Tregenna ◽  
Kevin Nell ◽  
Chris Callaghan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Exchange Rate ◽  
Panel Data ◽  
Industrial Development ◽  
Trade Openness ◽  
Developed Countries ◽  
Government Consumption ◽  
Capital Account Liberalization ◽  
Exchange Rate Depreciation

Global evidence suggests that, for many countries, manufacturing typically has an inverted U-shaped relationship with development. But unlike the historical experience of most developed countries, for most developing countries the turning point of this relationship is occurring sooner in the development process, and at substantially lower levels of income. This is termed ‘premature deindustrialization’. The consequences of this may be particularly important if such countries can no longer rely on manufacturing-led development. Why are some countries more industrialized, or more deindustrialized, than other comparable countries? To explore these issues, this chapter uses panel-data econometric techniques to analyse the determinants of the share of manufacturing in GDP, across countries and across time. Domestic determinants include investment, government consumption, population size, human capital, democracy, and natural resource endowments. External determinants include trade openness, capital account liberalization, and exchange rate depreciation.

scholarly journals The Decline of British Manufacturing, 1973–2012: The Role of Total Factor Productivity

2019 ◽  
Vol 247 ◽  
pp. R19-R31 ◽  
Author(s):  
Richard Harris ◽  
John Moffat
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Intangible Assets ◽  
Factor Productivity ◽  
Tfp Growth ◽  
Manufacturing Productivity ◽  
Plant Level

This paper uses plant-level estimates of total factor productivity covering 40 years to examine what role, if any, productivity has played in the decline of output share and employment in British manufacturing. The results show that TFP growth in British manufacturing was negative between 1973 and 1982, marginally positive between 1982 and 1994 and strongly positive between 1994 and 2012. Poor TFP performance therefore does not appear to be the main cause of the decline of UK manufacturing. Productivity growth decompositions show that, in the latter period, the largest contributions to TFP growth come from foreign-owned plants, industries that are heavily involved in trade, and industries with high levels of intangible assets.

scholarly journals Mutual Effects of Land Distribution and Economic Development: Evidence from Asia, Africa, and Latin America

Land ◽  
2019 ◽  
Vol 8 (6) ◽  
pp. 96 ◽  
Author(s):  
Hossein Azadi ◽  
Eric Vanhaute
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Economic Development ◽  
Latin America ◽  
The Political ◽  
Land Distribution ◽  
Land Inequality ◽  
Comparative Review ◽  
Different Dimensions

Land plays an important role in the economies of developing countries, and many theories connecting land inequality with different dimensions of economic development already exist. Even though efficacious land distribution allows societies to transition from poverty to a human capital-based developed economy, ongoing issues related to property rights, inequality, and the political economy of land distribution are unavoidable. The general objective of this paper is to explore the nexus between land distribution and economic development. The specific objectives are to: (i) identify which land distribution programs/activities contribute to economic development; (ii) investigate the role of stakeholders in land distribution programs that affect the growth of productivity; and (iii) assess the deficiencies of current land distribution policies in Asia, Africa, and Latin America to explore how economic development theories contribute to decreasing income inequality. This paper provides an overview of land distribution history and the main economic development theories. It also highlights the links between land distribution and the main elements of economic development. Finally, it provides a comparative review of the most recent empirical works regarding the characteristics, limitations, and potential (mutual) effects of land distribution and economic development settings on developing countries worldwide.

Property Rights over Marital Transfers *

2015 ◽  
Vol 130 (3) ◽  
pp. 1421-1484 ◽  
Author(s):  
Siwan Anderson ◽  
Chris Bidner
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Property Rights ◽  
Women's Rights ◽  
Marriage Market ◽  
Women’S Rights ◽  
Market Clearing ◽  
Market Clearing Price ◽  
Shed Light

Abstract In developing countries, the extent to which women possess property rights is shaped in large part by transfers received at the time of marriage. Focusing on dowry, we develop a simple model of the marriage market with intrahousehold bargaining to understand the incentives for brides’ parents to allocate the rights over the dowry between their daughter and her groom. In doing so, we clarify and formalize the “dual role” of dowry—as a premortem bequest and as a market clearing price—identified in the literature. We use the model to shed light on the intriguing observation that in contrast to other rights, women’s rights over the dowry tend to deteriorate with development. We show how marriage payments are utilized even when they are inefficient, and how the marriage market mitigates changes in other dimensions of women’s rights even to the point where women are worse off following a strengthening of such rights. We also generate predictions for when marital transfers will disappear and highlight the importance of female human capital for the welfare of women.

scholarly journals Human Capital and the Wealth of Nations

2014 ◽  
Vol 104 (9) ◽  
pp. 2736-2762 ◽  
Author(s):  
Rodolfo E. Manuelli ◽  
Ananth Seshadri
Keyword(s):  
Human Capital ◽  
Demographic Variables ◽  
Factor Productivity ◽  
Rates Of Return ◽  
Capital Theory ◽  
Country Differences ◽  
Cross Country ◽  
Wealth Of Nations

We reevaluate the role of human capital in determining the wealth of nations. We use standard human capital theory to estimate stocks of human capital and allow the quality of human capital to vary across countries. Our model can explain differences in schooling and earnings profiles and, consequently, estimates of Mincerian rates of return across countries. We find that effective human capital per worker varies substantially across countries. Cross-country differences in Total Factor Productivity (TFP) are significantly smaller than found in previous studies. Our model implies that output per worker is highly responsive to changes in TFP and demographic variables. (JEL E23, I25, J24, J31, O47)

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