scholarly journals The rate of gross saving: theory and practice

2019 ◽  
Vol 2019 (3) ◽  
pp. 5-28
Author(s):  
Iryna Kryuchkova ◽  
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Self Regulation ◽  
Theory And Practice ◽  
Current Phase ◽  
Fundamental Parameter ◽  
Theoretical Concepts ◽  
Savings Rate ◽  
State Registration

Scientific justification of the rate of gross savings is one of the key issues in the models of economic growth and a fundamental parameter of economic architectonics in the context of long-term dynamics of growth and structure of total demand. The article aims at demonstrating the genesis of the theory of the rate of gross savings beginning from the classics of political economy to theoretical justifications of the endogenization of the rate of savings in the models of economic growth as well as a detailed consideration of the components of gross savings with the analysis of the factors affecting its level (based on statistical data). It is exactly the empirical analysis that allows testing the validity of theoretical concepts and determining the correctness of the theorists' conclusions. The author shows a great gap between the classical view of the savings rate as a result of the action of natural law, which leads to self-regulation of the parameters of production reproduction, on the one hand, and the purely rational views shaped during the formation and development of the theory and models of economic growth, on the other. Empirical studies have shown that the rate of savings and the rate of capital accumulation are different in the economies of different countries and depend on: the degree of government intervention in the distribution of gross disposable income between institutional sectors and in the structure of households by income level, the level of public social transfers, the depth of income misbalances and expenditure of the institutional sectors and, accordingly, their net borrowing and accumulated debt, as well as on the current phase of the economic cycle and quality of the investment environment. The practical relevance of the study is important to substantiate fiscal policy, especially regarding its impact on the level of gross savings in the non-financial corporations and government sectors, as well as the level of public social and capital expenditures. The article was written within the project on «Macro-prospects of the endogenization of Ukraine’s economic development» (state registration number 0117U006435).

scholarly journals The rate of gross savings: theory and practice

2019 ◽  
Vol 2019 (3) ◽  
pp. 7-39
Author(s):  
Iryna Kryuchkova
Keyword(s):  
Economic Growth ◽  
Empirical Studies ◽  
Self Regulation ◽  
Theory And Practice ◽  
Current Phase ◽  
Fundamental Parameter ◽  
Theoretical Concepts ◽  
Factors Affecting ◽  
Savings Rate ◽  
The One

Scientific justification of the rate of gross savings is one of the key issues in the models of economic growth and a fundamental parameter of economic architectonics in the context of long-term dynamics of growth and structure of total demand. The article aims at demonstrating the genesis of the theory of the rate of gross savings beginning from the classics of political economy to theoretical justifications of the endogenization of the rate of savings in the models of economic growth as well as a detailed consideration of the components of gross savings with the analysis of the factors affecting its level (based on statistical data). It is exactly the empirical analysis that allows testing the validity of theoretical concepts and determining the correctness of the theorists' conclusions. The author shows a great gap between the classical view of the savings rate as a result of the action of natural law, which leads to self-regulation of the parameters of production reproduction, on the one hand, and the purely rational views shaped during the formation and development of the theory and models of economic growth, on the other. Empirical studies have shown that the rate of savings and the rate of capital ac-cumulation are different in the economies of different countries and depend on: the degree of government intervention in the distribution of gross disposable income between institutional sectors and in the structure of households by income level, the level of public social transfers, the depth of income misbalances and expenditure of the institutional sectors and, accordingly, their net borrowing and accumulated debt, as well as on the current phase of the economic cycle and quality of the investment environment. The practical relevance of the study is important to substantiate fiscal policy, especially regarding its impact on the level of gross savings in the non-financial corporations and government sectors, as well as the level of public social and capital expenditures.

On the Effectiveness of Growth- Enhancing Policies in a Model of Growth Without Scale Effects

2002 ◽  
Vol 3 (3) ◽  
pp. 339-346 ◽  
Author(s):  
Lutz G. Arnold
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Empirical Studies ◽  
Human Capital Accumulation ◽  
Accelerate Growth

Abstract Standard R&D growth models have two disturbing properties: the presence of scale effects (i.e., the prediction that larger economies grow faster) and the implication that there is a multitude of growth-enhancing policies. Recent models of growth without scale effects, such as Segerstrom's (1998), not only remove the counterfactual scale effect, but also imply that the growth rate does not react to any kind of economic policy. They share a different disturbing property, however: economic growth depends positively on population growth, and the economy cannot grow in the absence of population growth. The present paper integrates human capital accumulation into Segerstrom's (1998) model of growth without scale effects. Consistent with many empirical studies, growth is positively related not to population growth, but to investment in human capital. And there is one way to accelerate growth: subsidizing education.

scholarly journals Women Employment Opportunity on SMEs Sector: Bangladesh Perspective

2020 ◽  
pp. 105-118
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Capital Accumulation ◽  
Low Cost ◽  
Study Finding ◽  
Income Group ◽  
Small Scale ◽  
Female Entrepreneurs ◽  
Job Opportunities ◽  
Savings Rate

This study explores women's work prospects in the SME sector of Bangladesh. The researcher has identified two different reasons to conduct this study separately. Number one is that in the last few decades, have played a very active and important role, and the second is that by empowering women, female entrepreneurs build new job opportunities and solve the different problems of society. Small and medium-sized enterprises, which play an important role as engines of economic growth in many countries, provide growth opportunities for low-cost jobs. The results of the study illustrate the correlation between job opportunities for SMEs and women. Women's entrepreneurship is seen as a crucial instrument of women's empowerment and emancipation. Small and medium-sized enterprises, which play an important role in many countries as engines of economic growth, provide opportunities for low-cost employment with growth. The study finding shows the relationship between employment opportunities for SMEs and Women. Women entrepreneurship is seen as a key tool for empowering and liberating women. Developing countries such as Bangladesh are better off starting a small and medium-sized company because Bangladesh belongs to the low-income group facing problems of unemployment, poverty, low savings rate, low capital accumulation. Business on the micro and small scale did not require huge investment, it begins with limited capital. Developing nations such as Bangladesh are better off starting a small and medium-sized business because Bangladesh is part of the low-income community facing unemployment, poverty, low savings rate, low accumulation of capital problems. Micro and small-scale companies did not need tremendous investment but began with minimal resources.

scholarly journals Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake

2018 ◽  
Vol 10 (12) ◽  
pp. 4409 ◽  
Author(s):  
Renjie Zhao ◽  
Shihu Zhong ◽  
Aiping He
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Wenchuan Earthquake ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Policy Implications ◽  
Economic Recovery ◽  
Obvious Effect ◽  
2008 Wenchuan Earthquake ◽  
The Government

How disasters have affected economic growth has often been a subject for economic debate, and empirical studies of the experience in China are clearly inadequate. Using the panel data from 181 county-level cities in Sichuan province from 2003 to 2013, this paper investigates the direct and dynamic effects of the Wenchuan earthquake disaster on economic growth, as well as how national rescue affected postdisaster economic recovery. The econometric results show that earthquakes significantly reduce real GDP in the affected areas after controlling for the national rescue variables, and this negative effect exists in the affected area over a long time. In addition, our empirical findings suggest that the postdisaster national rescue can promote economic recovery in the affected areas by increasing government expenditure, improving traffic conditions, and enhancing the urbanization process and the level of industrialization. Besides, state financial aid has no obvious effect on the development of tertiary industries and the accumulation of human capital in affected areas. These results were found to be robust after applying several approaches to alleviate the potential endogeneity problem. Findings in this study carry several important policy implications. As well as providing national rescue to promote postdisaster reconstruction, the government should also develop policies that will provide direct aid funding to tertiary industries and boost postdisaster economic reconstruction and human capital accumulation, thus improving the efficiency of relief funding and reducing the long-term adverse effects of the disaster on economic growth.

Is inflation targeting useful for economic growth?

2017 ◽  
pp. 62-74 ◽  
Author(s):  
P. Kartaev
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Test Performance ◽  
Inflation Targeting ◽  
Developing Economies ◽  
Empirical Studies ◽  
Growth Regime ◽  
Potential Channels

The paper presents an overview of studies of the effects of inflation targeting on long-term economic growth. We analyze the potential channels of influence, as well as modern empirical studies that test performance of these channels. We compare the effects of different variants of inflation targeting (strict and mixed). Based on the analysis recommendations on the choice of optimal (in terms of stimulating long-term growth) regime of monetary policy in developed and developing economies are formulated.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

scholarly journals Are International Indices Good Predictors of Economic Growth? Panel Data and Cluster Analysis for European Union Countries

2021 ◽  
Vol 13 (11) ◽  
pp. 6003
Author(s):  
Manuel Carlos Nogueira ◽  
Mara Madaleno
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Panel Data ◽  
Human Development ◽  
Empirical Studies ◽  
The European Union ◽  
Global Competitiveness ◽  
Environmental Performance Index ◽  
European Union Countries ◽  
And Cluster Analysis

Every year, news about the publication of rankings and scores of important international indexes are highlighted, with some of the most prestigious being the Global Competitiveness Index (GCI), the Human Development Index (HDI), the Ease of Doing Business (EDB), the Environmental Performance Index (EPI) and the Global Entrepreneurship (GEI). A country’s progression in these indices is associated with economic growth, especially since several empirical studies have found evidence to reinforce these beliefs, the indices having been built based on the scientific literature on economic growth. Building a database on these indices for European Union countries between 2007 and 2017 and using panel data methodologies and then 2SLS (Two-Stage Least Squares) to solve the problem of endogeneity, we verify empirically through panel data estimates, what is the relationship between the mentioned indices and the European Union countries’ economic growth for the period. However, as the European Union is made up of diverse countries with different economic and social realities, we divided the countries into six clusters and made an individual interpretation for each one. We found that human development and competitiveness play an important role in economic growth, and entrepreneurship also impacts this growth. Regarding income distribution, applying the Gini index, we found that only human development mitigates inequalities.

Economic Growth in Theory and Practice.

1991 ◽  
Vol 101 (407) ◽  
pp. 999
Author(s):  
Andrew Tylecote ◽  
R. M. Sundrum
Keyword(s):  
Economic Growth ◽  
Theory And Practice
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