Introduction and Preliminaries

2016 ◽  
Author(s):  
Francesco Caselli
Keyword(s):  
Technical Change ◽  
Relative Efficiency ◽  
Natural Capital ◽  
Physical Capital ◽  
Mineral Deposits ◽  
Unskilled Labor ◽  
Poor Countries ◽  
Absolute Efficiency ◽  
Rich Countries ◽  
Analytical Tools

This book examines how the mode of production, or production technology, varies systematically across countries, depending on their endowments of different factors of production. Using aggregate production functions as analytical tools, the book shows that technology differences and technical change are factor biased: they change not only the overall efficiency with which a country exploits its bundle of productive inputs, but also the relative efficiency with which different factors contribute to production. It argues that the efficiency with which skilled labor is used relative to unskilled labor is greater in richer countries than in poorer countries. It also explains why the efficiency with which reproducible capital (equipment and structure) is used relative to natural capital (mineral deposits, land, timber, etc.) is higher in rich countries, and the absolute efficiency with which physical capital is used appears to be not lower, and may even be higher, in poor countries.

scholarly journals The World Technology Frontier

2006 ◽  
Vol 96 (3) ◽  
pp. 499-522 ◽  
Author(s):  
Francesco Caselli ◽  
Wilbur John Coleman
Keyword(s):  
Skilled Labor ◽  
Simple Explanation ◽  
Unskilled Labor ◽  
Skilled Workers ◽  
Poor Countries ◽  
Aggregate Production Function ◽  
Unskilled Workers ◽  
Cross Country ◽  
Rich Countries ◽  
Lower Income Countries

We study cross-country differences in the aggregate production function when skilled and unskilled labor are imperfect substitutes. We find that there is a skill bias in cross-country technology differences. Higher-income countries use skilled labor more efficiently than lower-income countries, while they use unskilled labor relatively and, possibly, absolutely less efficiently. We also propose a simple explanation for our findings: rich countries, which are skilled-labor abundant, choose technologies that are best suited to skilled workers; poor countries, which are unskilled-labor abundant, choose technologies more appropriate to unskilled workers. We discuss alternative explanations, such as capital-skill complementarity and differences in schooling quality.

scholarly journals The Indirect Effect of Democracy on Economic Growth in the MENA Region (1990–2015)

2018 ◽  
Author(s):  
Shereen Nosier ◽  
Aya El-Karamani
Keyword(s):  
Economic Growth ◽  
Indirect Effect ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Physical Capital ◽  
Mena Region ◽  
Poor Countries ◽  
Mena Countries ◽  
The One ◽  
Rich Countries

This paper examines the indirect effect of democracy on economic growth using a dataset of 17 MENA countries from 1990 to 2015. Democracy is assumed to affect growth through a series of channels: education, health, physical capital accumulation per labor, government consumption, and trade openness. A system of six simultaneous equations, 3SLS, is used to estimate the effect of democracy on growth through these channels. For further analysis, the countries are classified into groups according to the democratic status on the one side, and the level of income on the other. The results indicate that democracy enhances growth through its positive effect on health in all classifications of countries within the MENA region. However, the effect of democracy on growth through education and physical capital/labor is non-monotonic. Democracy always hinders growth through government size and trade openness. Once all of these indirect effects are accounted for, the overall effect of democracy on growth is negative in less democratic countries and poor countries, but positive in more democratic countries and rich countries.

scholarly journals The Indirect Effect of Democracy on Economic Growth in the MENA Region (1990–2015)

Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 61 ◽  
Author(s):  
Shereen Nosier ◽  
Aya El-Karamani
Keyword(s):  
Economic Growth ◽  
Indirect Effect ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Physical Capital ◽  
Mena Region ◽  
Poor Countries ◽  
Mena Countries ◽  
The One ◽  
Rich Countries

This paper examines the indirect effect of democracy on economic growth using a dataset of 17 MENA countries from 1990 to 2015. Democracy is assumed to affect growth through a series of channels: education, health, physical capital accumulation per labor, government consumption, and trade openness. A system of six simultaneous equations using 3SLS, is used to estimate the effect of democracy on growth through these channels. For further analysis, the countries are classified into groups according to the democratic status on the one side, and the level of income on the other. The results indicate that democracy enhances growth through its positive effect on health in all classifications of countries within the MENA region. However, the effect of democracy on growth through education and physical capital/labor is non-monotonic. Democracy hinders growth through government size and trade openness. Once all of these indirect effects are accounted for, the overall effect of democracy on growth is negative in less democratic countries and poor countries, but positive in more democratic countries and rich countries.

Health and healthcare

2017 ◽  
Author(s):  
Jan Abel Olsen
Keyword(s):  
Production Function ◽  
Strong Association ◽  
International Comparisons ◽  
Healthcare Spending ◽  
Health Production ◽  
Poor Countries ◽  
Health Production Function ◽  
Important Message ◽  
Rich Countries

Chapter 1 provides a contextual frame for the book. An inquiry into the key concepts of health and healthcare is followed by an illustration of the general health production function, that is, the association between increasing healthcare inputs and resulting health outcomes. The important message is the pattern of positive but diminishing effects of healthcare on health: more healthcare improves health, but at a diminishing rate. The production function is also illustrated at the macro level: when considering the poor countries of the world, a strong association is observed between increased healthcare spending and the country’s life expectancy. However, among rich countries we observe a strongly diminishing effect of increased healthcare spending. Some further international comparisons are included to show that the richer a country gets, the higher the proportion of wealth it spends on healthcare.

scholarly journals Does relative (absolute) efficiency affect capital costs?

2021 ◽  
Author(s):  
Dafydd Mali ◽  
Hyoung-Joo Lim
Keyword(s):  
Significant Relationship ◽  
Relative Efficiency ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Operational Performance ◽  
Firm Efficiency ◽  
Listed Firms ◽  
Capital Costs ◽  
Absolute Efficiency ◽  
Accounting Ratios

AbstractIn this paper, we examine the effect of relative/absolute firm efficiency on weighted average cost of capital (WACC). Using a sample of Korean listed firms, we find that WACC is negatively associated with relative firm efficiency (operational performance) suggesting that firms with higher (lower) relatively efficiency are expected to pay lower (higher) capital costs. When we repeat our analysis using absolute firm efficiency (ROA), we do not find a statistically significant relationship. Our results suggest relative efficiency which is estimated as output (sales) divided by the resources that are directly under the control of management is assessed by capital providers and impounded into a firm’s capital costs. Absolute efficiency (ROA) which is estimated as sales divided by total assets is not. Our results suggest that simple accounting ratios used in the accounting literature are not considered as informative to explain borrowing costs compared to relative efficiency that captures managerial operational performance.

Governance of Development Assistance: Issues and Challenges

2017 ◽  
Vol 63 (2) ◽  
pp. 252-264
Author(s):  
Navreet Kaur ◽  
Lhoukhokai Sitlhou
Keyword(s):  
Sustainable Development ◽  
Development Process ◽  
Good Governance ◽  
Development Assistance ◽  
Target Population ◽  
Poor Countries ◽  
Disaster Assistance ◽  
Governance Practices ◽  
Bilateral Assistance ◽  
Rich Countries

Good governance emphasises upon efficient and effective institutional mechanism, greater transparency, people’s participation, citizen-centric services and accountability. These reforms are not only limited to national governance practices but also applicable to distribution, disbursement and effectiveness of development assistance. The objective of development assistance is to provide opportunities to needy, deprived and disadvantageous sections of the society. The available data on development assistance clearly demonstrate that rich countries, Development Assistance Countries (DACs) provide financial assistance to poor countries and it has reached US$100 billion in recent years. Non-DAC bilateral assistance (NDBA) is more than US$8 billion in Office of Disaster Assistance (ODA) and US$5 billion annually in country programmable aid (CPA). Private aid (PrA) from DAC members contribute between US$58 billion and 68 billion per year. Total aid flows to developing countries currently amount to around US$180 billion annually. Multilateral aid agencies (around 230) outnumber donors and recipients combined. But the harsh reality is high percentage of illiteracy, high child mortality, gender inequality, prevalence of corruption and exclusion of needy people from the development process. The examination of the process and procedures involved in development process revealed that there are many challenges in the process adopted for allocation, methodological limitations, evaluation limitation, lack of coordination among multiple agencies, political compulsions of donor and recipient countries, transparency, accountability and multidimensional global financial markets compulsions. Certain measures can make development more inclusive and sustainable. Collective efforts of all agencies are the need of the hour to achieve the targets of sustainable development. Coordination among multiple agencies, capacity building of target population and involvement of private agencies in the development process will pave the way for sustainable development.

Relationship Analysis between the Response to Participate in Eco-Compensation and Livelihood Assets: A HeiHe River Basin Example

2010 ◽  
Vol 113-116 ◽  
pp. 317-321 ◽  
Author(s):  
Fang Su ◽  
Hai Yang Shang
Keyword(s):  
River Basin ◽  
Local Governments ◽  
Natural Capital ◽  
Physical Capital ◽  
Heihe River Basin ◽  
Heihe River ◽  
Ecological Compensation ◽  
Relationship Analysis ◽  
Livelihood Assets ◽  
Physical Assets

For a long time, these are deeply entrenched in people’s thinking and the institutions or policies of economic activities that the resources are unlimited and the environment exists priceless. Environmentally augmented household livelihood assets were collected from 300 sample households within the HeiHe River Basin. Results show that physical assets possess a maximum value (0.609) and natural assets possess relatively low values (0.241). The human capital, natural capital, physical capital, financial capital and social capital are all important factors to influence the responses. An increment of one unit should reduce the occurrence to participate in ecological compensation for natural capital. Therefore, the local governments should actively introduce the relevant supporting measures in order to provide more non-agricultural employment opportunities for farmers.

scholarly journals Livelihood Improvement through Agroforestry Compared to Conventional Farming System: Evidence from Northern Irrigated Plain, Pakistan

Land ◽  
2021 ◽  
Vol 10 (6) ◽  
pp. 645
Author(s):  
Shahzad Ahmad ◽  
Zhang Caihong ◽  
E. M. B. P. Ekanayake
Keyword(s):  
Social Capital ◽  
International Development ◽  
Natural Capital ◽  
Smallholder Farmers ◽  
Physical Capital ◽  
Financial Capital ◽  
Sustainable Livelihood ◽  
Conventional Farming ◽  
Fuel Wood ◽  
Livelihood Improvement

The concept of sustainable livelihood garnered a prominent status in humanitarian and international development organizations that aim to calculate and build a livelihood for agroforestry farmers. However, it is difficult to measure and analyze as well as visualize the data of livelihood improvement from agroforestry (AF). This paper comparatively assessed 400 smallholder farmers’ livelihood through AF and conventional farming (CF) systems in the Northern Irrigated Plain of Pakistan. The findings showed that AF has a mixed impact on farmers’ livelihood capital, including human, physical, natural, financial and social capital. Specifically, AF significantly improved financial capital in terms of timber, non-timber and fuel wood income. Furthermore, the physical capital (buffalo plough, generators and sprinklers), natural capital (the extent of cultivated land and land ownership; the number of households (HHs) growing vegetables, fruit crops and medicinal crops) and social capital (the number of social groups that HHs involved and number of HHs sharing crop seeds) of AF farmer HHs were significantly improved compared to those of CF farmers. However, the results show that financial capital gain through crop income, HHs owning high-value vehicles (tractors) and farmers trust and collective activities were significantly higher in CF farmers than AF ones. Therefore, to enhance the contribution of AF to rural livelihood, advanced extension services and government involvement on research planning and implementing are needed.

scholarly journals Consumer Motivation to Enhance Purchase Intention Towards Electric Vehicles in Malaysia

2021 ◽  
Vol 124 ◽  
pp. 09003
Author(s):  
Haider Ali Abbasi ◽  
Zullina Hussain Shaari ◽  
Wajiha Moughal
Keyword(s):  
Electric Vehicles ◽  
Urban Areas ◽  
Purchase Intention ◽  
Combustion Engine ◽  
Life Quality ◽  
Consumer Adoption ◽  
Consumer Motivation ◽  
Poor Countries ◽  
The Government ◽  
Rich Countries

Transportation is extremely important in contributing to the life quality development of urban areas. However, it has influenced negatively on individuals and the environment due to carbon emissions and gases. Worldwide, organizations and countries are exploring a solution and have developed Electric Vehicles (EVs) as the best possible solution. Electric vehicles emit no exhaust emissions and are powered by batteries. The adoption rate of EVs in rich countries is increasing year after year, while consumer adoption intention of EVs in poor countries is quite low, particularly in Malaysia. The ownership percentage of Internal Combustion Engine Vehicles (ICEs) in Malaysia is 93 percent, placing it near the top of the globe, but EV adoption is just about 3.5 percent. Consumer awareness of EVs is quite low, which is why consumer adoption intentions toward EVs are not increasing. Malaysia is the world's 26th highest emitter of carbon and greenhouse gases (GHG). This study will assist in identifying the characteristics that can maximize consumer interest in EVs and will be beneficial to the government and industry in developing the market as stated in the Paris accord and achieving the Carbon Neutral Nation 2050 aim. The study will go through the motivators that lead consumers to purchase EVs. These characteristics will provide transportation sectors insights on bridging the demand and supply of sustainable vehicles.

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