Institutional Quality and Economic Growth in Latin America

2010 ◽  
Vol 10 (4) ◽  
pp. 1850214 ◽  
Author(s):  
W. Charles Sawyer
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Total Factor Productivity ◽  
Slow Growth ◽  
Institutional Quality ◽  
Factor Productivity ◽  
History Of ◽  
Determinants Of Economic Growth ◽  
Primary Problem

The purpose of this paper is to relate total factor productivity to the problem of economic growth in Latin America. Slow economic growth has been the most important problem in the modern history of the region. The paper extensively reviews the literature on the determinants of economic growth in Latin America and shows that the slow growth of total factor productivity (TFP) seems to be the primary problem. Further, this problem is linked to the quality of institutions in the region. Unfortunately, the concept of institutional quality is very difficult to define in a meaningful way. This affects public policy towards economic growth in the region. Finally, it is shown that the problem that has been identified may be crucial for Latin America but the region is hardly unique in this regard.

scholarly journals The Drivers of the Total Factor Productivity

2019 ◽  
Vol 85 (2) ◽  
pp. 12-20
Author(s):  
T. K. Kvasha
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Intangible Assets ◽  
Significant Proportion ◽  
High Tech ◽  
Factor Productivity ◽  
Patent Activity ◽  
Solow Model

The Total Factor Productivity (TFP) is now widely recognized as an important factor in both long-term economic growth and short-term growth fluctuations. Researchers of the International Monetary Fund came to the conclusion that the growth of the TFP was the most important long-term factor in raising the living standards. Therefore, the IMF and academics from different countries has been scrutinizing the reasons for the slowdown in TFP and investigating the underlying factors. The low rates of GDP grow in Ukraine call for finding the drivers, one of which is TFP growth. It raises the importance of analysis of the factors promoting this growth in Ukraine.  The purpose of this work is to define TFP drivers, which would be most effective for Ukraine. TFP drivers in foreign countries are analyzed, TFP dynamics for Ukraine is calculated by use of Solow model, and TFP drivers over 2000–2017 are determined.         The analysis of publications about TFP drivers at global level shows that they include: international transfer of knowledge and technologies, activities of small innovative fast-growing firms, the enhanced quality of quality of education, the increased expenditures on R&D and innovations, especially by business sector, the increased investments in intangible assets, the intensified patent activity, access of enterprises to lending. The TFP dynamics in Ukraine, calculated by the Solow model, is characterized by high growth rates by 2012, a sharp fall in 2013-2015, and a return to the growth path in 2016-2017, but, as in the whole world, by very moderate pace. The factors contributing to this return are capital investment in intangible assets, the increasing patent activity of Ukrainian researchers, the intensified innovation in the high-tech sector. Factors constraining the TFP and the contribution of innovation to economic growth are a significant proportion of technology transfer in the form of “know-how, agreements for the acquisition (transfer) of technologies”, which holds back the widespread introduction of cutting-edge technologies, and the reduction of funding for R&D and innovation. Further studies should be focused on searching for political decisions promoting implementation of structural reforms aimed to solve the existing problems and eliminate their consequences, especially in of the innovation and education field.

scholarly journals Economic Growth and Total Factor Productivity in Lebanon

2017 ◽  
Vol 9 (2) ◽  
pp. 159
Author(s):  
Wadad Saad
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Total Factor Productivity ◽  
Significant Relationship ◽  
Development Assistance ◽  
Direct Foreign Investment ◽  
Official Development Assistance ◽  
Factor Productivity ◽  
Distributed Lag ◽  
Determinants Of Economic Growth

This study investigates empirically the determinants of economic growth and total factor productivity in Lebanon over the period 1980-2014. To do so, we firstly estimate the total factor productivity in a growth accounting framework. Secondly, an Autoregressive Distributed Lag (ARDL) modeling approach has been applied to examine the relationship between economic growth and some macroeconomic variables such as foreign direct investment, openness, claims on private sector, and official development assistance. Then we consider modeling the effects of these macroeconomic determinants on TFP through an ARDL model. Findings of the regression analysis suggest the presence of a statistically significant relationship between economic growth and the variables involved in this study except for claims on private sector which appears to be insignificant. The results of TFP model show a significant relationship with claims on private sector and openness on one hand and insignificant link with the direct foreign investment and official development assistance on the other hand.

The Role of Institutional Quality on Total Factor Productivity

2020 ◽  
pp. 605-633
Author(s):  
Tarkan Cavusoglu ◽  
Debi Konukcu Onal
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Middle East ◽  
Eastern Europe ◽  
Total Factor Productivity ◽  
Institutional Quality ◽  
Factor Productivity ◽  
Institutional Influences ◽  
Regional Analyses

Within the settings of the economic growth literature, this study aims at analyzing the determinants of total factor productivity in the Central and Eastern Europe (CEE) and the Middle East and North Africa (MENA) regions, with a special emphasis on institutional quality. Beside descriptive analyses, several fixed-effect panel data regressions are estimated, which enables both cross-country and cross-regional analyses. Estimation results provide strong statistical evidence of institutional influences on total factor productivity in the CEE and MENA economies.

The Role of Institutional Quality on Total Factor Productivity

2016 ◽  
pp. 98-126
Author(s):  
Tarkan Cavusoglu ◽  
Debi Konukcu Onal
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Middle East ◽  
Eastern Europe ◽  
Total Factor Productivity ◽  
Institutional Quality ◽  
Factor Productivity ◽  
Institutional Influences ◽  
Regional Analyses

Within the settings of the economic growth literature, this study aims at analyzing the determinants of total factor productivity in the Central and Eastern Europe (CEE) and the Middle East and North Africa (MENA) regions, with a special emphasis on institutional quality. Beside descriptive analyses, several fixed-effect panel data regressions are estimated, which enables both cross-country and cross-regional analyses. Estimation results provide strong statistical evidence of institutional influences on total factor productivity in the CEE and MENA economies.

Determinants of Economic Growth in Japan: The Role of Foreign Direct Investment

2009 ◽  
Vol 9 (3) ◽  
pp. 1850171 ◽  
Author(s):  
Parviz Asheghian
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Annual Data ◽  
Causal Relationships ◽  
Domestic Investment ◽  
Factor Productivity ◽  
Investment Growth ◽  
Determinants Of Economic Growth

The purpose of this study is: (1) to examine the determinants of economic growth in Japan over time, and (2) to see if there is any time-series support for FDI-led growth hypothesis in Japan. To achieve these goals the study uses a model that is based on the postulates of de Mello. Employing a 35-year period of annual data, the model is estimated by using the Beach-Mackinnon technique, which corrects for autocorrelation. The estimation results suggest: (1) the major determinants of economic growth in Japan are total factor productivity, and domestic investment growth; (2) there are no causal relationships between foreign direct investment growth and economic growth in either direction; and (3) there are no causal relationships between foreign direct investment growth and total factor productivity growth in either direction.

EVALUATING THE CONTRIBUTION OF TOTAL FACTOR PRODUCTIVITY ON AGRICULTURAL GROWTH IN AN GIANG PROVINCE

2018 ◽  
Vol 1 (29) ◽  
pp. 29-37
Author(s):  
Tan Van Truong
Keyword(s):  
Total Factor Productivity ◽  
Agricultural Production ◽  
Science And Technology ◽  
Agricultural Labor ◽  
Factor Productivity ◽  
Agricultural Growth ◽  
Regression Approach ◽  
Investment Capital ◽  
Agricultural Demand

By the growth regression approach, the research has identified that the investment capital contributed 1,939 and agricultural labor contributed 1,291 to the agricultural growth of An Giang province. More specifically, the contribution of TFP (Total Factor Productivity) to the agricultural growth in the period 2000 - 2004 was averagely 0,11%, in 2005 - 2010 was -5,03%, and in period 2011 - 2016 was 0,81%. The total factor productivity contributed to the agricultural growth slowly. In order to raise the contribution of TFP, the research represents 05 solutions including the increase of the effectiveness of using the investment capital, the increase of the quality of labor, the application of the science and technology into agricultural production, agriculturalrestructuring, and the increase of  agricultural demand.

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