scholarly journals Catch up growth and social capability in developing countries: A conceptual and measurement proposal

OASIS ◽  
2017 ◽  
pp. 7-23
Author(s):  
Martin Andersson ◽  
Andrés Palacio
Keyword(s):  
Social Inclusion ◽  
Capabilities Approach ◽  
Income Convergence ◽  
Economic Progress ◽  
Catching Up ◽  
Long Run ◽  
Catch Up ◽  
Main Components ◽  
Social Capability

While the income per capita in the developing world since the turn of the Millennium has grown faster than that of the developed world, the question whether there is an ongoing process of catching up between countries remains. The notion of income convergence has provided many insights into the sources for long-run growth but has largely neglected the role of social capabilities in economic development. By social capabilities we mean the qualification of the ‘theory of convergence’ which asserts that productivity growth rates  between countries tend to vary inversely with regard to productivity levels. The social capabilities approach holds that a country’s potential for rapid growth is strong when “it is technologically backward but socially advanced” (see Abramovitz, 1986:388). This means that the potential to catch up under globalization is strongest for countries in which social capabilities are developed to allow successful use of technologies and where institutional arrangements are conducive to economic progress. Yet there is no clear agreement in the literature on the main components of social capabilities or how to measure them. Our framework argues that the role of capabilities in catching up needs to understand them in terms of structural transformation, economic and social inclusion, state´s autonomy and accountability. Without progress in these dimensions within-country inequality may increase and might in turn lead to stagnating growth and slim prospects for global income convergence.

scholarly journals “Non-Catch-up Development” of Africa. Economist’s observations on forecasts, statistical manipulations, demographic romanticism and rejuvenation of elites

2019 ◽  
pp. 5-17
Author(s):  
Leonid Fituni
Keyword(s):  
Global Economy ◽  
World Order ◽  
Demographic Dividend ◽  
Statistical Estimates ◽  
Long Run ◽  
African Youth ◽  
Catch Up ◽  
Restrictive Measures ◽  
First Time

The article analyzes the long-run reliability and sustainability of the basic arguments referred to in assessing the upward development of Africa in the 21st century. The author argues that the ongoing changes in the global economy and the nature of the current transformation of the world order put in doubt that the “catch-up development” of the continent will advance exactly as foreseen by the basic African development strategies and as it is customary to present them in scientific literature. He supports his assessment by showing that some of the initial statistical estimates and projections of existing trends may have been based on a not completely correct statistical basis. Much attention is paid to a more realistic approach to the role of the “demographic dividend” in the future. The article systematizes and classifies the fundamental reasons why such miscalculations occurred and what needs to be taken into account in order to obtain to more estimates and more realistic scenarios of future development. The author insists that the “demographic dividend” does not inevitably arise by itself. For the favorable effects of the demographic dividend to occur, it is necessary to create high-quality, more productive jobs. Only in this case can the expected positive social and economic shifts follow, including the growth of the African middle class. For the first time, the economic problems of catch-up development are linked to the process of “rejuvenation of the elites” that is developing and being stimulated by a number of external players. For these purposes, external state and non-state actors may use sanctions and other restrictive measures. The author provides a classification and description of three types of behavioral patterns of African youth in politics. In African conditions understanding of those issues is crucial since young people constitute the majority of the population in a huge number of countries on the continent.

scholarly journals Paths of income convergence between country pairs within Europe

2014 ◽  
Vol 59 (201) ◽  
pp. 123-155 ◽  
Author(s):  
Mirjana Gligoric
Keyword(s):  
Growth Model ◽  
European Countries ◽  
Income Convergence ◽  
Significant Evidence ◽  
Catching Up ◽  
Transitional Countries ◽  
Long Run ◽  
Convergence Clubs ◽  
Similar Growth

This paper explores income convergence in European countries. Unlike previous research, the analysis is based on the pair-wise approach (Pesaran, 2007), identifying four cases: long-run convergence, catching-up, lagging-behind, and divergence. The results suggest that catching-up prevails, while no significant evidence was found for the existence of long-run convergence at the whole sample level. Still, three convergence clubs appear that consist of countries recording long-run convergence, two in transitional countries and one involving advanced countries, which indicate the similar growth model of the countries belonging to each club. Nevertheless, the results do not allow us to claim with certainty that the income paths of the club members will not exhibit systematic tendencies toward divergence or changes in membership in future.

The important role of productivity in Australia's long-run competitive position in LNG

2013 ◽  
Vol 53 (2) ◽  
pp. 451
Author(s):  
Brad McBean ◽  
Matt Guthridge
Keyword(s):  
Labour Productivity ◽  
Option Value ◽  
Medium Term ◽  
Productivity Improvement ◽  
Project Completion ◽  
Long Run ◽  
Competitive Disadvantage ◽  
Catch Up ◽  
Operating Constraints

With significant number of LNG projects on stream (or in various stages along the pre-feasibility to project completion continuum), world LNG markets will experience pricing pressure. This will push more customers into the spot market, doing only longer-term offtake deals where pricing is favourable to the buyer. While Australia is positioned favourably to import markets in Asia, it will be at a competitive disadvantage given lower labour productivity (impacting both construction and maintenance activities), industrial conditions (impacting the option value of being able to ramp production up and down), higher asset costs, and a higher dollar. Long-run returns on existing and planned LNG projects will need to focus on continuously improving productivity, particularly upstream in exploration/delineation and development, faster than overseas competitors. This will require Australian companies to take a lead role in incubating and developing drilling, completion, and workover technologies. Australia lags behind other countries, but it can catch up and overtake them if it acts now. This extended abstract discusses Australia’s likely/potential long-run position in LNG to global sink markets; the operating constraints on LNG operations relative to overseas competitors; and, the implications for productivity improvement in LNG given potential medium-term improvements in extraction, processing, and shipping costs for LNG operations more broadly (considering relationships between commodity pricing and exchange rate). The options for Australian LNG operations in closing any productivity gap are also discussed.

scholarly journals The Relationship between Economic Growth and Misery Index: Evidence from Transition Countries

2020 ◽  
Author(s):  
Ebru Çağlayan Akay ◽  
Zamira Oskonbaeva
Keyword(s):  
Economic Growth ◽  
Transition Countries ◽  
Annual Data ◽  
Policy Makers ◽  
Panel Ardl ◽  
Long Run ◽  
Misery Index ◽  
The Government ◽  
Main Components

Unemployment and inflation, the main components of the misery index, continue to be vital macroeconomic problems, which draw researchers’ attention both in developed and developing countries. The study investigates the interaction among economic growth and misery index in the selected transition countries using Panel ARDL. In the study, annual data for the period of 1996-2017 of selected 16 transition countries are used. The findings of the study show that there is a long-run relationship between the misery index and economic growth. In other words, it can be concluded that economic misery deteriorates economic growth. If the economy is to be sustainably improved, the misery index should be taken into account. The government needs a policy of decreasing inflation and unemployment, which is one of the fundamental macroeconomic policy priorities. This study may provide policy-makers with new insights to evaluate the role of economic misery in enhancing economic growth in transition countries.

scholarly journals Conditions of formation and stimulation of the activators of innovative development of Ukraine

2017 ◽  
Vol 15 (4) ◽  
pp. 150-160 ◽  
Author(s):  
Iryna Shtuler ◽  
Ivan Cherlenyak ◽  
Alla Domyshche-Medyanik ◽  
Sergii Voitovych
Keyword(s):  
Economic Growth ◽  
Economic Life ◽  
Growth Strategy ◽  
Economic Progress ◽  
Role Of The State ◽  
Catch Up ◽  
Market Relations ◽  
Market Infrastructure ◽  
Stimulation Of

Western analysts are still pessimistic about the prospects of technological (innovative) business in Eastern Europe. Not only unsatisfactory domestic economic processes, but also the current global economic structural and industrial transformations are the factors of the decline and backlog in Ukraine. However, unfortunately there is no doctrine in Ukraine to overcome them. The paper deals with the problems of regulation and stimulation of the innovation component of economic growth of enterprises, industries and regions through integrated use of all possible activators. Transformational and overtaking economies are imposed to follow inertial growth strategy based on the ideology of neo-liberalism and market fundamentalism. A flexible and effective protectionist policy and state strategy to stimulate the growth of sectors are especially important. The new government policy of economic growth of Ukraine should take into account that innovatization and intellectualization of macroeconomic processes are the defining vectors in a global terms. This new policy should integrate the concepts of innovatization and renewal innovation of industrial foundation of the country. “Falling out” of the process of intellectualization of economic life would mean the loss of even theo¬retical perspectives to catch up the leading countries of economic progress. The role of the state, its “hard” and “diffuse” institutions should be rethought in the process of the development of a modern market infrastructure and institutions of developed market relations in Ukraine. So the ways of state impact on socio-economic processes should be improved. Comprehensive incentive mechanisms such as activators of innovative processes are necessary to develop in the global competition and “global” fight against protectionism instead of clear policy prescriptions.

The Role of Energy in Twentieth-Century Economic Growth

2014 ◽  
Author(s):  
Malanima Paolo ◽  
Astrid Kander ◽  
Paul Warde
Keyword(s):  
Economic Growth ◽  
Twentieth Century ◽  
Energy Intensity ◽  
Industrial Revolution ◽  
Shared Experience ◽  
Long Run ◽  
Catch Up ◽  
Third Industrial Revolution ◽  
Twentieth Century Europe

This chapter examines the role of energy in the economic growth of twentieth-century Europe. It considers the interrelationships of factors of production in order to identify the general features of a shared experience of growth, rather than to illuminate the local differences. The chapter first explains how development blocks contributed to GDP growth before discussing seven long-run propositions, including the strong growth of capital stock and catch-up with the leader of capital–GDP ratios; machinery increased more than GDP, labor, and other capital; and falling and converging energy intensity in the twentieth century. The chapter concludes with an overview of the link between energy intensity and economic structure. It argues that it was the third industrial revolution that was behind most of the increasing economic efficiency of energy consumption after the 1970s.

scholarly journals Learning and Catch-up in Singapore

2019 ◽  
pp. 173-204
Author(s):  
George Yeo ◽  
Tan Kong Yam ◽  
Tan Khee Giap
Keyword(s):  
Critical Role ◽  
Policy Learning ◽  
Technological Learning ◽  
Catching Up ◽  
Role Of The State ◽  
Catch Up ◽  
Policy Failures ◽  
Policy Discussion

This chapter focuses on the learning and catch-up experience of Singapore between 1965 and 2018. It attempts to contribute to both academic and practical policy discussion by examining the critical role of the state, and its determination of the policies, incentives, and institutions that played a crucial role in the pace and direction of learning. Case studies of industrial strategy and upgrading, public housing, and the development of regional transport hubs illuminate the experience of technological learning and policy learning as well as the process of catching up. The experience of past policy failures will also be highlighted. Finally, given the present challenging global and trade environment, relevant lessons for developing countries are drawn.

scholarly journals Estimating the Impact of Structural Reforms to Increase the Female Participation Rate in Malta

2018 ◽  
Vol 6 (8) ◽  
pp. 73
Author(s):  
Brian Micallef
Keyword(s):  
Participation Rate ◽  
Female Participation ◽  
Catching Up ◽  
Long Run ◽  
Potential Gdp ◽  
European Standards ◽  
Changing Demographics ◽  
The Impact ◽  
Changing Role

Malta registered the largest increase in the female participation rate among European countries since 2008. This increase was driven by various policy initiatives aimed to attract more females to the labour market but also by the changing role of women in society. Furthermore, at 53.8% in 2015, the female participation rate in Malta still remains relatively low by European standards, suggesting further catching-up potential. The trend increase in participation, driven mostly by females, is estimated to have contributed, on average, to 0.8 percentage points per annum to Malta’s potential GDP between 2008 and 2015. The impact of reforms is calculated by adjusting the post-2008 participation rate to long run trends in Maltese society, as well as using a cohort model that accounts for the changing demographics and education attainment of the workforce. The median impact of the estimates presented in this paper suggests that around half of the increase in the female participation rate is attributable to reforms. These reforms are estimated to have raised potential GDP growth in Malta by around 0.3 percentage point per annum between 2008 and 2015.

The Problem of Identifying and Modeling the Relationship between Monetary Factor and Inflation in the Russian Economy

2008 ◽  
pp. 61-76
Author(s):  
A. Porshakov ◽  
A. Ponomarenko
Keyword(s):  
Money Supply ◽  
Money Demand ◽  
Russian Economy ◽  
Long Run ◽  
Complex Approach ◽  
Wide Range ◽  
Long Time ◽  
The Relationship ◽  
Supply Side Factors

The role of monetary factor in generating inflationary processes in Russia has stimulated various debates in social and scientific circles for a relatively long time. The authors show that identification of the specificity of relationship between money and inflation requires a complex approach based on statistical modeling and involving a wide range of indicators relevant for the price changes in the economy. As a result a model of inflation for Russia implying the decomposition of inflation dynamics into demand-side and supply-side factors is suggested. The main conclusion drawn is that during the recent years the volume of inflationary pressures in the Russian economy has been determined by the deviation of money supply from money demand, rather than by money supply alone. At the same time, monetary factor has a long-run spread over time impact on inflation.

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