scholarly journals Economic Development and International and Interregional Tourism

2020 ◽  
Vol 13 (4) ◽  
pp. 375-387
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Development ◽  
Open Economy ◽  
Service Sector ◽  
Small Open Economy ◽  
Analytical Framework ◽  
Main Concern ◽  
Stable Equilibrium Point ◽  
National Economic ◽  
Multiple Regions ◽  
Total Productivity

SummarySubject and purpose of work: Tourism was the fastest growing industry until the outbreak of Covid-2019. Nevertheless, there are a few studies on how the industry interacts with the rest of economies within a comprehensive analytical framework. The main concern of this study is how international and interregional tourism interacts with national economic development and economic structural change. Tourism and economic growth are investigated in a multi-regional small open economy which is perfectly competitive.Materials and methods: National economy consists of multiple regions and each region has three sectors: industry, service, and housing. Production side is the same as in the neoclassical growth theory. Households move freely between regions, equalizing utility level between regions by selecting housing, goods, tourism, and saving. A region’s amenity is endogenously related to the region’s population.Results: We explicitly solve the dynamics of the multi-regional economy. The system has a unique stable equilibrium point.Conclusions: We simulate the motion of the model and examine the effects of changes in the rate of interest, foreigners’ preference for visiting a region, a region ‘s total productivity of the service sector, domestic consumers’ preference for visiting a region, as well as the propensity to save, the propensity to consume regional services and housing.

Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis

2021 ◽  
pp. 001573252098689
Author(s):  
Priya Brata Dutta ◽  
Nirjhar Ghosh
Keyword(s):  
Wage Inequality ◽  
Open Economy ◽  
Service Sector ◽  
Agricultural Sector ◽  
Small Open Economy ◽  
Capital Inflow ◽  
Intermediate Goods ◽  
Jel Codes ◽  
Unskilled Labour ◽  
Critical Policy

This article develops a static three-sector and five-factor competitive general equilibrium model of a small open economy: sector 1 is the rural agricultural sector, which produces products using informal or unorganised unskilled labour and land as inputs; sector 2 is the urban manufacturing, final-goods-producing sector that produces products with the help of unskilled labour, who get unionised wages, and capital; and sector 3 is the service sector, which uses skilled labour with formal wages, capital and sophisticated hi-technology-intensive imported intermediate goods produced abroad as inputs. We show that an exogenous increase in capital inflow or an increase in tariff on imported intermediate input reduces the skilled–unskilled wage inequality and lowers unemployment as long as the return to capital is unaltered and output adjustments absorb the entire shock of the two policies. Such capital inflow increases rural wage and reduces unemployment via the Harris Todaro mechanism but interestingly does not allow the skilled wage to increase. Thus, two critical policy targets can be accommodated at the same time. JEL Codes: F13, J31, J46

scholarly journals Growth, Trade, and Urban Development of Staple Regions

2013 ◽  
Vol 10 (2) ◽  
pp. 13-23
Author(s):  
Derek Hum ◽  
Paul Phillips
Keyword(s):  
Economic Development ◽  
Urban Development ◽  
Open Economy ◽  
Historical Development ◽  
Small Open Economy ◽  
Economic Structure ◽  
Regional Economies ◽  
Common Process ◽  
Trade Growth ◽  
Policy Guidance

Certain themes in historical and contemporary studies of the economic development of Canada remain important. Among these are the staple approach to interpreting Canadian economic development, the notion of Canada as a collection of regional economies, and the distinction between metropolis and hinterland. These themes are both fundamental and interrelated; indeed, they are manifestations of a common process — that of a resource-dependent economic expansion. This paper relates the urbanization and development of staple regions to such determinants as trade, growth, and economic structure. We integrate the metropolis-hinterland framework within the broader staple approach and provide a synthesis of various aspects of economic theory, particularly trade and economic structure, export-led growth of a small, open economy, and the disequilibrium dynamics of urban development — all reinterpreted within the special context of the staple economy. While our major aim is to provide a formal synthesis of the staple approach and urban development, ultimately for policy guidance, references to Canadian economic and historical development are made throughout.

scholarly journals Resilience of metropolitan, urban and rural regions: a Central European perspective

GeoScape ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 25-40 ◽  
Author(s):  
Jan Ženka ◽  
Adam Pavlík ◽  
Ondřej Slach
Keyword(s):  
Economic Development ◽  
Open Economy ◽  
Economic Performance ◽  
Structural Changes ◽  
Small Open Economy ◽  
Value Added ◽  
Global Production Networks ◽  
Rural Regions ◽  
Total Employment ◽  
Urban Regions

AbstractIn this article, we examine a relationship between population/economic size and resilience of Czech regions. More specifically, we ask if there are any significant differences among metropolitan cores and hinterlands, urban regions and rural regions in (post)crisis economic development in the period 2009–2013. Three aspects of resilience were considered: volatility of unemployment, renewal (increase in economic performance compared to other regions) and reorientation (measured by the intensity of structural changes in total employment). We found relatively small differences among particular types of regions and high intra-group heterogeneity. Specialized industrial urban regions exhibited the fastest economic growth in the (post)crisis period. Metropolitan cores lagged slightly behind, but experienced relatively stable economic development. Although rural regions exhibited the highest unemployment volatility, they did not lag behind in terms of value added growth. Regional resilience in a small open economy like Czechia seems to be predominantly driven by extraregional factors such as the position in global production networks and economic performance in particular industries or large transnational corporations.

Development Zones in Asian Borderlands

2021 ◽  
Keyword(s):  
Economic Development ◽  
Capital Flows ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
State Building ◽  
South East Asia ◽  
Economic Policies ◽  
Global Capital ◽  
Spatial Changes ◽  
National Economic

Development Zones in Asian Borderlands maps the nexus between global capital flows, national economic policies, infrastructural connectivity, migration, and aspirations for modernity in the borderlands of South and South-East Asia. In doing so, it demonstrates how these are transforming borderlands from remote, peripheral backyards to front-yards of economic development and state-building. Development zones encapsulate the networks, institutions, politics and processes specific to enclave development, and offer a new analytical framework for thinking about borderlands; namely, as sites of capital accumulation, territorialisation and socio-spatial changes.

scholarly journals A small open economic growth model with imported goods, tourism, and terms of trade

2018 ◽  
pp. 65-86
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Dynamic Analysis ◽  
Growth Model ◽  
Open Economy ◽  
Service Sector ◽  
Small Open Economy ◽  
Terms Of Trade ◽  
Nonlinear Dynamic Model ◽  
Economic Growth Model ◽  
Tourism Economy

This paper constructs an economic growth model of a small open economy with tourism and imported goods in a perfectly competitive economy. The study focuses on the effects of changes in terms of trade, with a preference for imported goods, on the dynamic paths of trade balance and economic growth. The basic framework for modelling a national economy is based on the Solow-Uzawa neoclassical growth model with Zhang’s alternative approach to household behaviour. We build a nonlinear dynamic model with interdependence between economic growth, economic structure, tourism, prices, wealth and income. We provide a computational process to follow the motion of the economic system. Simulation is used to carry out a comparative dynamic analysis of the terms of trade, the propensity to consume imported goods, the rate of interest, the price elasticity of tourism, and the total productivity of the service sector. The comparative dynamic analysis provides some insights into the complexity of the tourism economy.

scholarly journals FOREIGN DIRECT INVESTMENTS IN THE ECONOMIC GROWTH OF THE OPEN ECONOMY OF UKRAINE

2021 ◽  
Vol 3 (38) ◽  
pp. 111-124
Author(s):  
V. Rokocha ◽  
S. Tkalenko ◽  
N. Sukurova ◽  
А. Honcharova ◽  
O. Murashko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Production Function ◽  
Open Economy ◽  
National Economy ◽  
World Economy ◽  
External Factors ◽  
National Economic ◽  
The World ◽  
Multifactor Regression

Abstract. In terms of globalization of the world economy, the open economy of a country participating in the globalization process becomes an organic element of the world economy and thus receives additional incentives for development. International flows of goods and capital allow countries to get new sources for economic growth. Economic growth is now not only a function of internal but also of external factors. It is they who now determine the modernization tendencies of national economic policies, forcing them to move in accordance with world trends. The purpose of the research is to assess the relationship between economic growth of the country and external factors of its economic development, as well as to identify the dependency between external factors in order to clarify their role in the modernization of national economy. With this aim, the analysis of the main parameters of openness of Ukraine’s economy is carried out, as of external factors that influence on the national economic development, changes in the traditional production function under the influence of introduction in it of external factors of development, the estimated indicators of the named influences are modeled. The novelty of the research is the identification of dependency between the forms of openness of the economy and economic growth, the development of a model of relationship between the forms of openness of the economy. Research method. The study is based on a set of economic and economic-mathematical methods that are needed to identify the influence of external factors on the national economy, especially methods of abstraction, systematic and structural-comparative analysis, synthesis and modeling of economic processes. Among the models used in the research is a multifactor regression model. The empirical basis was the materials of official statistics of Ukraine for 1999—2019. The results of research showed: the role of globalization of Ukraine’s economy in its economic development, the importance of FDI as an external factor of economic development, the strong link between international capital flows and international flows of goods into the Ukrainian economy, the positive impact of the latter on the former. Keywords: economic growth, globalization, external factors of economic growth, production function, open economy, FDI, foreign trade, government investment policy. JEL Classification F21, F43, F47, F62 Formulas: 7; fig.: 1; tabl.: 8; bibl.: 24.

scholarly journals Population Dynamics, Economic Growth, and Energy Consumption in Kenya

2013 ◽  
pp. 178-191
Author(s):  
Nyakundi M. Michieka
Keyword(s):  
Economic Development ◽  
Energy Consumption ◽  
Open Economy ◽  
Energy Use ◽  
Small Open Economy ◽  
Causality Test ◽  
Vector Error ◽  
Error Decomposition ◽  
The Relationship ◽  
The Empirical Analysis

Kenya is a small open economy that depends on energy for growth. Since independence in 1963, it has experienced tremendous urban and rural population growth, placing an increasing strain on energy resources and economic development. Therefore, in this chapter the relationship between urban and rural populations, economic development, and energy use is studied. The empirical analysis uses a vector autoregression framework. The Granger Causality test results suggest unidirectional causality running from urban population to GDP. The vector error decomposition results imply that urban growth will continue to play a major role in energy consumption in Kenya.

Economic development and complexity: the role of recombinant capital

2019 ◽  
Author(s):  
Anthony M Endres ◽  
David A Harper
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Open Economy ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Market Failure ◽  
Small Open Economy ◽  
Capital Formation ◽  
Function Concept ◽  
Government Failure

AbstractThe neoclassical aggregate production-function concept of capital is unsuitable for the study of economic development. We provide a more realistic account of capital formation in which development is understood as a disruptive, disequilibrium process of creating (not merely allocating or accumulating) capital and in which capital is conceived as a ‘recombinant’ process. We draw upon the seminal ideas of Schumpeter, Lachmann and Hirschman to formulate the notion of recombinant capital. Capital is a complex, emergent constellation of resource connections rather than a neoclassical ‘stock’. We conceptualise recombinant capital formation as a process of transforming connections in production structures. Capital structures are the unintended outcome of polycentric interactions among private entrepreneurs and government actors (managers of state-owned enterprises and political entrepreneurs). Recombinant capital formation and capital structures emerge endogenously from the creation and destruction of complex connections. The standard distinction between ‘market failure’ and ‘government failure’ is critically deficient in analysing the structural economic dynamics engendered by recombinant capital. The fertility of our conceptual framework is illustrated by a study of major structural change in a small open economy. This structural change arose from the interpolation of a new, large-scale manufacturing industry in a capital structure previously dominated by primary industries.

Manajemen Ekonomi Outopilot: Kegagalan Negara Mencari Identitas?

Liquidity ◽  
2018 ◽  
Vol 1 (2) ◽  
pp. 142-152
Author(s):  
Mukhaer Pakkanna
Keyword(s):  
Economic Development ◽  
National Economy ◽  
The State ◽  
Political Democracy ◽  
Economic Democracy ◽  
Quality Of Democracy ◽  
Economic Disparities ◽  
National Economic ◽  
Production And Distribution

Political democracy should be equivalent to the economic development of the quality of democracy, economic democracy if not upright, even the owner of the ruling power and money, which is parallel to force global corporatocracy. Consequently, the economic oligarchy preservation reinforces control of production and distribution from upstream to downstream and power monopoly of the market. The implication, increasingly sharp economic disparities, exclusive owner of the money and power become fertile, and the end could jeopardize the harmony of the national economy. The loss of national economic identity that makes people feel lost the “pilot of the state”. What happens then is the autopilot state. Viewing unclear direction of the economy, the national economy should clarify the true figure.

Sign in / Sign up

Export Citation Format

Share Document