scholarly journals Multi-Factor Index of Public Health: Empirical Analysis and Application in Economic Development of Transition Economies

2008 ◽  
Vol 4 (1) ◽  
pp. 133-148
Author(s):  
Lukianenko Iryna ◽  
Krasnikova Larysa ◽  
Podvysotskaya Tamara
Keyword(s):  
Public Health ◽  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Transition Economies ◽  
Productivity Growth ◽  
Empirical Investigation ◽  
Function Model ◽  
Health Indices ◽  
Factor Index

Multi-Factor Index of Public Health: Empirical Analysis and Application in Economic Development of Transition EconomiesThe main focus of the paper is empirical investigation of health factor influence on economic growth in transition economies. Extending production function model of economic growth by constructed health indices the influence of health factor on the real output was examined. The main finding is that under majority of specifications health indices were found to be positive and significant. The influence of health on productivity growth in transition countries does not differ much from the health influence on productivity in the other countries groups.

Growth and Social Capital: Empirical Analysis of the Relationship

2019 ◽  
pp. 128-134
Author(s):  
Ksenia V. Bagmet
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Economic Development ◽  
Social Development ◽  
Empirical Analysis ◽  
Panel Data Analysis ◽  
Well Being ◽  
Developed Countries ◽  
International Institute ◽  
Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

THE VANISHING EFFECT OF FINANCE ON ECONOMIC DEVELOPMENT

2019 ◽  
pp. 1-43
Author(s):  
Klaus Gründler
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Development ◽  
Productivity Growth ◽  
Oecd Countries ◽  
Growth Effect ◽  
Factor Productivity ◽  
Average Effect ◽  
Innovation Projects ◽  
New Ideas

This paper examines the mechanisms that determine the “vanishing effect of finance” on economic growth found in recent studies. Based on both current (171 countries, 1960–2014) and historical (21 OECD countries, 1870–2009) data, the results show that financial development promotes growth in poorer countries by increasing education and investment, and by decreasing fertility. The relevance of these transmission channels declines when countries become richer. The growth effect of the financial sector in high-income countries primarily depends on new ideas and potentials for innovation projects. Consequently, the major decline in factor productivity growth since the early 2000s has contributed to the reduction in the financial sector’s average effect on growth.

scholarly journals An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

2014 ◽  
Vol 38 (1) ◽  
pp. 7-30
Author(s):  
Mariusz Próchniak
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Economic Freedom ◽  
Institutional Environment ◽  
Positive Impact ◽  
Policy Implications ◽  
Regression Equations ◽  
Solow Model ◽  
The Impact

Abstract This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute), the governance indicator (World Bank), the democracy index (Freedom House), and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom) has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

scholarly journals A Critique of Akhtar’s Model of an Economic Economy

1994 ◽  
Vol 11 (4) ◽  
pp. 610-617
Author(s):  
Shujaat Ali Khan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Statistical Data ◽  
Sufficient Condition ◽  
Positive Contribution ◽  
Review Of The Literature ◽  
Goods And Services ◽  
Consistent Increase ◽  
Opening Paragraph

In an article entitled “Modelling the Economic Growth of anIslamic Economy,”l M. Ramazan Akhtar presented a mathematicalmodel that subjects Allahs attributes to measurement and underminesthe cause of the Islamization of knowledge, which he intended toserve. In his article, there are several flaws, mistakes, and inconsistenciesthat deserve comment and criticism. This paper has examinedcritically Akhtar’s model and found it to be neither informative norpredictive. Before presenting the critique, however, I would like tocomment on some of the general weaknesses of the article.In the opening paragraph (p. 491), Akhtar says: “Growth dependson several factors, among them a consistent increase in the amount ofphysical goods and services produced over a given period of time.This is usually taken as an index of economic growth.” Although economicgrowth is defined and measured by the increase in the amountof goods and services produced over a given period of time, it doesnot imply that the former depends on the latter. There is no cause andeffect relationship between the two.In his “Review of the Literature” (p. 492), Akhtar makes a generalstatement that Muslim economists use the terms “economic growth”and “economic development” interchangeably. The economic literaturethat has been produced since the early 1960s makes a clear distinctionbetween these two terms and views economic growth as anecessary, but not a sufficient, condition for economic development(Clower 1966). Most Muslim economists hold this mainstream view.If there are still some using the terms interchangeably, they are theexceptions.In the second paragraph on page 495, Akhtar gives an Englishtranslation of Qur’an 39:9. In fact, this is a translation of 41:10-aserious mistake and not a typographical error.The last paragraph on page 491 reads: “The hypothesis is examinedtheoretically because statistical data for empirical analysis is not available.”But at the end of this paragraph, he asserts: “Analytical resultsshow that moral factors make a positive contribution to both income ...

Exogenous or Endogenous Growth? The Industrial Revolution Reconsidered

1995 ◽  
Vol 55 (4) ◽  
pp. 745-772 ◽  
Author(s):  
N. F. R. Crafts
Keyword(s):  
Economic Growth ◽  
Eighteenth Century ◽  
Economic Development ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Research Agenda ◽  
Industrial Revolution ◽  
Growth Potential ◽  
Factor Productivity ◽  
Recent Developments

The British Industrial Revolution is reviewed in the light of recent developments in modeling economic growth. It is argued that ”endogenous innovation” models may be useful in this context particularly for understanding why total factor productivity growth rose only slowly. ”Macroinventions” were central to economic development in this period, however, and these are best seen as exogenous technological shocks. Although new growth theorists would easily identify higher growth potential in eighteenth-century Britain than in France, explaining the timing of the acceleration in growth remains elusive. A research agenda to develop further insights from new growth ideas is proposed.

scholarly journals An Empirical Analysis of China's Dualistic Economic Development: 1965–2009

2011 ◽  
Vol 10 (3) ◽  
pp. 1-29 ◽  
Author(s):  
Marco G. Ercolani ◽  
Zheng Wei
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Significant Role ◽  
Labor Migration ◽  
Capital Accumulation ◽  
Service Sector ◽  
Development Theory ◽  
Agricultural Labor ◽  
Marginal Productivity

We analyze China's rapid economic development in the context of the dualistic development theory. Over the period 1965–2009, we find that China's economic growth is mainly attributable to the development of the non-agricultural (industrial and service) sector, driven by rapid labor migration and capital accumulation. We find that the sectoral reallocation of labor plays a significant role in promoting China's economic growth. Further, we find that the marginal productivity of agricultural labor stopped stagnating in 1978, which indicates that China entered quickly into phase two of economic development with the initiation of market reforms. Moreover, by 2009, the marginal productivity of labor has likely exceeded the institutional wage, as defined by the initially low average labor productivity, indicating that China may be now in the process of entering phase three of economic development.

TRANSITION ECONOMIES PROBLEMS WITH SPECIFIC FOCUS ON DEALING WITH SCALE OF CORRUPTION CASE STUDY – KOSOVO

2018 ◽  
Vol 28 (1) ◽  
pp. 329-334
Author(s):  
Ariana Xhemajli
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Transition Economies ◽  
Direct Investment ◽  
Negative Impact ◽  
Objective Measures ◽  
Corruption Case ◽  
The World ◽  
The Impact

Theoretical and empirical debate on the impact of corruption on the economy remains unclear. Many studies on corruption seem that the world is occupied by two kinds of people, "sanders" and "greasers”. It depends on what the meaning of "corruption" is for them. Some scholars argue that corruption is an obstacle to economic growth, whereas others believe that corruption can (in some circumstances) endorse growth. Corruption also has a negative impact on investment, Foreign Direct Investment, and economic development as a whole. Measuring corruption is still an issue for most economists due to the difficulties of defining it, and also different forms of corruption require different objective measures. Nevertheless, recently, some measures of corruption have been widely accepted and recognized by researchers. This paper is a critical review at these positions by reviewing the theoretical literature on the impact of corruption on an economy as a whole. In this paper we will treat the corruption level in Kosovo, and its presence in forms and ways how the bribe is been given. Instead, this document reviews different measurements of corruption to reveal that corruption is harmful for the economy.

scholarly journals Foreign Aid—Blessing or Curse: Evidence from Pakistan

2007 ◽  
Vol 46 (3) ◽  
pp. 215-240 ◽  
Author(s):  
Muhammad Arshad Khan ◽  
Ayaz Ahmed
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Domestic Investment ◽  
Socio Economic Development ◽  
The Empirical Analysis

The role of foreign aid in promoting economic growth is a debatable issue and remains unsettled at both theoretical and empirical levels. Pakistan has received a substantial amount of foreign aid since its Independence in 1947 but little improvement has been observed in its socio-economic development. This study considers the question as to whether foreign aid is a blessing or a curse for Pakistan. The empirical analysis is based on the ARDL cointegration approach. We examine the aid-growth link at the aggregate and disaggregate levels for the period 1972-2006. The results show negative and insignificant effects of foreign aid on the growth at the aggregate as well at the disaggregate level. The findings further suggest that domestic investment, export growth, and inflows of foreign direct investment are important contributors in enhancing economic growth in Pakistan.

scholarly journals An Empirical Analysis of the Contribution of Mining Sector to Economic Development in Nigeria

2016 ◽  
Vol 19 (1) ◽  
pp. 88-106
Author(s):  
David, Oladipo Olalekan ◽  
Noah, Oluwashina Afees ◽  
Agbalajobi, Sunday Ayodele
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Crude Oil ◽  
Empirical Analysis ◽  
Growth And Development ◽  
Well Being ◽  
Series Data ◽  
Mining Sector ◽  
Economic Growth And Development ◽  
The Impact

Nigeria is richly endowed with vast but largely untapped natural resources including solid minerals and arable land. Mining industries have been viewed as key drivers of economic growth and development process, as lead sectors that drive economic expansion which can lead to higher levels of social and economic well being. Contributions from mining as a percentage of GDP in rich countries are usually between 2-8 percent. In Nigeria, the contribution is still low at 0.15 percent, one of the major factors responsible for this is as a result of over dependence of the Nigerian economy on the proceeds from the sale of crude oil for over four decades which is at the expense of other sectors such as mining and agriculture that contributed significantly to the Nigerian economy before the emergence of crude oil. In the light of this, the study presents an empirical analysis of the contribution of mining sector to the economic development in Nigeria from 1960 to 2012. The study employed Error Correction Model (ECM) to examine the short run and long run effect of mining sector‟s contribution to Nigeria economic development. The study harnessed time series data to evaluate the impact of the specified key sectors; crude petroleum and gas, solid mineral, manufacturing and agriculture on the economic development proxied by per capita income. Equally highlighted are the problems militating against the mining sector in Nigeria and the strategies for its transformation of the economy. The finding revealed that the value of solid mineral have strong impact on economic development in Nigeria. Thus, Nigeria needs to urgently develop her monumental mining potentials in order to diversify her economy and to achieve rapid economic growth and development.

Decoupling Economic Development and Water Consumption: An Empirical Analysis in China between 1997 and 2008

2014 ◽  
Vol 955-959 ◽  
pp. 2979-2982 ◽  
Author(s):  
Kui Wang ◽  
Yi Deng ◽  
Xia Hua Jiang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Water Consumption ◽  
Environmental Research ◽  
Primary Industry ◽  
The Relationship

In order to explore the relationship between water consumption (WC) and economic growth (EG) in China, this paper introduced the concepts related with decoupling in the fields of resources and environmental research to define the decoupling EG from WC. Furthermore, the assessing approach was built up and a coefficient was proposed to estimate the decoupling degree. Afterwards, the relations between WC and EG from 1997 to 2008 were investigated. The results show strong decoupling of agricultural WC from GDP of primary industry and weak decoupling of WC from EG. It can be concluded that agricultural WC plays an important role to improve the decoupling degree between WC and EG.

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