Public and Private Investment and the Convergence of Per Capita Incomes in Developing Countries

1993 ◽  
Author(s):  
Mohsin S. Khan ◽  
Manmohan Kumar
Keyword(s):  
Developing Countries ◽  
Private Investment ◽  
Public And Private ◽  
Per Capita

scholarly journals The Effect of Education Expenditure on Per Capita GDP in Developing Countries

2017 ◽  
Vol 9 (10) ◽  
pp. 136
Author(s):  
Elizabeth N. Appiah
Keyword(s):  
Developing Countries ◽  
Positive Impact ◽  
Private Investment ◽  
Education Expenditure ◽  
Public And Private ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Sub Saharan ◽  
The Impact ◽  
Ssa Countries

Is further public and private investment in education warranted in developing countries that is economically efficient? Does an increase in education expenditure, generate a positive impact on per capita GDP in developing countries? If so, is the impact different from that of Sub-Saharan African (SSA) countries? Education is one of the key factors of promoting economic growth because of its role in enhancing human capital thus productivity. However, adverse macroeconomic conditions and increased competition for scarce public funds have reduced governments’ capacity to expand education expenditure to improve labor productivity. I use the ‘system’ GMM estimator to estimate the effect of an increase in education expenditure on per capita GDP. The uniqueness of this paper is that unlike other studies where only one country or region is considered, this paper examines the impact of increased spending on education on per capita GDP in developing countries. The findings indicate that expansion in education expenditure in developing countries affects per per capita GDP positively, and the effect is not different from that of SSA countries.

Polity Stability, Economic Growth, and Investment: A Dynamic Panel Analysis

2018 ◽  
Vol 25 (1) ◽  
Author(s):  
Halit Yanıkkaya ◽  
Taner Turan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Private Investment ◽  
Developed Countries ◽  
Panel Estimation ◽  
Dynamic Panel ◽  
Public And Private ◽  
Dynamic Panel Analysis ◽  
Initial Results ◽  
Developing And Developed Countries

Abstract In this paper, we empirically examine the effect of polity stability on economic growth and investment by using the dynamic panel estimation techniques for more than 100 countries over the period 1960–2009. Our initial results imply that democracy reduces growth in both developed and developing countries. However, there is no evidence for the existence of a significant effect of the democracy level on the overall, public and private investment. Our results also suggest that the growth and investment effects of polity stability proxied by regime durability and polity fragility measures greatly differ in developing and developed countries. Our empirical results indicate that polity stability promotes growth only in developing countries. It seems that regime durability and polity fragility affect economic growth mainly through investment. We also make a distinction between public and private investment when examining the effects of polity stability. It seems that the durability and fragility matter for private investment. Therefore, developing countries ought to put solid efforts to lessen polity instability to promote economic growth.

Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?

2015 ◽  
pp. 30-53
Author(s):  
V. Popov
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Gdp Per Capita ◽  
The West ◽  
Catching Up ◽  
The Us ◽  
The World ◽  
Economic Divergence ◽  
Per Capita ◽  
Relative Standing

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.

Trade Creation or Trade Diversion in ASEAN and ASEAN+6 FTAs: Trade Indicators Approach

2015 ◽  
pp. 25-41
Author(s):  
Anh Tu Thuy ◽  
Ngoc Le Minh
Keyword(s):  
Comparative Advantage ◽  
Wheat Gluten ◽  
Free Trade Area ◽  
Private Investment ◽  
Trade Diversion ◽  
Trade Creation ◽  
Public And Private ◽  
Trade Area ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

This paper makes use of two trade indicators, Revealed Comparative Advantage (RCA) and Regional Orientation (RO), to evaluate the economic impacts of the ASEAN Free Trade Area (The) and the Regional Comprehensive Economic Partnership (RCEP) on Vietnamese commodities at the Harmonized System (HS) 2-digit level. Several sectors in which Vietnam has revealed a comparative advantage, has benefited from the AFTA, and would continue to enjoy trade creation from the RCEP, are: Cereals (10), Salt, sulphur, earth, stone, plaster, lime and cement (25), Rubber (40), Knitted or crocheted fabric (60), etc. More importantly, the result provides a list of commodities in which Vietnam has a comparative advantage and only experiences trade creation when participating in the RCEP. These are: Milling products, malt, starches, inulin, wheat gluten (11), Vegetable plaiting materials, vegetable products not elsewhere specified (14), Wood and articles of wood, wood charcoal (44), etc. Findings also show commodities in which Vietnam has a comparative advantage; but are not well positioned in the RCEP market yet, e.g. Cereal, flour, starch, milk preparations and products (19) and Manmade staple fibres (55). If sufficient investment decisions and marketing strategies are applied to these commodities, they will well penetrate the RCEP market and bring trade creation and welfare improvement to Vietnam. Public and private investment should consider the above-mentioned commodities as targets to leapfrog the benefits of RCEP.

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