Institutional changes, inequality and long-run economic development: Theory and empirics

2022 ◽  
pp. 47-71
Author(s):  
D. A. Veselov ◽  
A. M. Yarkin
Keyword(s):  
Economic Development ◽  
Middle Eastern ◽  
Empirical Literature ◽  
Development Theory ◽  
Future Research ◽  
Institutional Changes ◽  
Theoretical Approaches ◽  
Long Run ◽  
Key Factor ◽  
Cross Country

This paper reviews theoretical and empirical literature on long-run economic development, institutional dynamics, and their interplay. Special attention is given to papers that explore the reasons why pro-growth reforms and institutional changes may be blocked. Among these reasons, over the past years the literature has increasingly focused on inequality in the distribution of wealth and political power as a key factor. This review is structured around two major theoretical approaches that illuminate the reasons behind the transition from stagnation to growth and cross-country income divergence: the unified growth theory (UGT), and the theory of endogenous institutional change. Using the empirical evidence on divergence between European and Middle Eastern economies, as well as the divergence within Europe, the paper demonstrates the value of these approaches in explaining the observed patterns of cross-country long-run development. The paper concludes with outlining several promising directions for future research.

Institutions and development: the primacy of microanalysis

2011 ◽  
Vol 7 (4) ◽  
pp. 549-553 ◽  
Author(s):  
MWANGI S. KIMENYI
Keyword(s):  
Economic Development ◽  
Empirical Analysis ◽  
Institutional Arrangements ◽  
Development Theory ◽  
Policy Relevance ◽  
Microeconomic Analysis ◽  
Methodological Problems ◽  
Cross Country ◽  
Economic Development Theory ◽  
The Empirical Analysis

Abstract:In recent years, there have been major advances in the empirical analysis of the link between institutions and development. However, a number of methodological problems – both theoretical and empirical – remain unresolved and have been well articulated by Ha-Joon Chang in his article ‘Institutions and Economic Development: Theory, Policy and History’. These problems raise valid concerns about the policy relevance of the evidence arising from the studies. A more reliable approach to study the link between institutions and development and overcome the inherent problems of cross-country empirical analysis is to direct focus to microeconomic analysis of institutions. Such an approach avoids ideologically driven normative judgments about the superiority of particular institutional arrangements and also offers a more credible and tractable avenue to investigate institutional change.

Empirical Literature on Economic Growth, 1991–2020: Uncovering Extant Gaps and Avenues for Future Research

2021 ◽  
pp. 097491012110616
Author(s):  
Natalia I. Doré ◽  
Aurora A. C. Teixeira
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Future Research ◽  
Long Run ◽  
Scientific Attention ◽  
The Impact ◽  
Determinants Of Economic Growth ◽  
Latin American And Caribbean

The factors required to achieve sustainable economic growth in a country are debated for decades, and empirical research in this regard continues to grow. Given the relevance of the topic and the absence of a comprehensive, systematic literature review, we used bibliometric techniques to examine and document several aspects in the empirical literature related to growth, from 1991 to 2020. Five main results are worth highlighting: (a) the share of empirical articles on economic growth show a clear upward trend; (b) among all the groups of countries considered, the emerging economies (EEs) have received the most scientific attention; (c) the economic growth processes of the Latin American and Caribbean EEs have observed negligible scientific attention; (d) the very long-run studies comprise a residual share among the empirical literature on growth; (e) the extant empirical studies on economic growth have addressed mainly the impact of “macroeconomic conditions.” Our findings suggest there is a need to redirect the empirical growth agenda, so as to encourage more scientific attention devoted to the analysis of key determinants of economic growth in the very long run. There should also be increased scrutiny of the processes of economic growth in Latin American and Caribbean EEs

scholarly journals Assessing the impact of road transport infrastructure investment on economic development in South Africa

2017 ◽  
Vol 11 ◽  
Author(s):  
Anathi Hlotywa ◽  
Emeka A. Ndaguba
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Road Transport ◽  
Transport Infrastructure ◽  
Development Theory ◽  
Explanatory Variables ◽  
Endogenous Growth Theory ◽  
Long Run ◽  
Reserve Bank ◽  
The Impact

Background: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009.Objective: The objective of this study was to examine the relationship between road transport investment (ROTI) and economic development (ED) in South Africa. This article adopts the Harrod–Domar (HD) model of economic growth and development theory, endogenous growth theory and Solow–Swan neoclassical growth model.Method: Data were derived from the South African Reserve Bank, Quantec database and Statistics South Africa (StatsSA) between 1990 and 2014. It used time series, econometric models cointegration and vector error correction model (VECM) to analyse.Result: The results of the estimation demonstrate that the explanatory variables account for approximately 86.7% variation in ED in South Africa. Therefore, there exists a positive relationship between ROTI and ED.Conclusion: This study established a long-run relationship between phenomena and demonstrates the role of road transport investment on economic development in South Africa.

scholarly journals How Deep Are the Roots of Economic Development?

2013 ◽  
Vol 51 (2) ◽  
pp. 325-369 ◽  
Author(s):  
Enrico Spolaore ◽  
Romain Wacziarg
Keyword(s):  
Economic Development ◽  
Growth And Development ◽  
Empirical Work ◽  
Empirical Literature ◽  
Direct Impact ◽  
Economic Growth And Development ◽  
Long Run ◽  
Proximate Determinants ◽  
New Literature

The empirical literature on economic growth and development has moved from the study of proximate determinants to the analysis of ever deeper, more fundamental factors, rooted in long-term history. A growing body of new empirical work focuses on the measurement and estimation of the effects of historical variables on contemporary income by explicitly taking into account the ancestral composition of current populations. The evidence suggests that economic development is affected by traits that have been transmitted across generations over the very long run. This article surveys this new literature and provides a framework to discuss different channels through which intergenerationally transmitted characteristics may impact economic development, biologically (via genetic or epigenetic transmission) and culturally (via behavioral or symbolic transmission). An important issue is whether historically transmitted traits have affected development through their direct impact on productivity, or have operated indirectly as barriers to the diffusion of productivity-enhancing innovations across populations. (JEL J11, O33, O47, Z13)

scholarly journals Innovation Clusters Revisited: On Dimensions of Agglomeration, Institution, and Built-Environment

2019 ◽  
Vol 11 (12) ◽  
pp. 3338 ◽  
Author(s):  
Jianyi Li ◽  
Douglas Webster ◽  
Jianming Cai ◽  
Larissa Muller
Keyword(s):  
Economic Development ◽  
Built Environment ◽  
Theory And Practice ◽  
Three Dimensions ◽  
Development Theory ◽  
Future Research ◽  
Cluster Development ◽  
Economic Development Theory ◽  
Innovation Clusters ◽  
Systematic Synthesis

Innovation clusters have been the key concept underlying economic development theory and practice since the concept was re-energized in the 1990s. Worldwide efforts promoting cluster development are supposed to be informed by research on cluster dynamics. The plethora of articles and reports on this globally hyped concept often add to the confusion, calling for a systematic synthesis. In academia, the discussion of innovation clusters is characterized by separate literature dealing with agglomeration, institution, and built-environment. This literature review addresses each of those three dimensions, respectively, by discussing both classic perceptions and potential directions for future research.

scholarly journals Cross-Country Empirical Studies of Systemic Bank Distress: A Survey

2005 ◽  
Vol 192 ◽  
pp. 68-83 ◽  
Author(s):  
Asli Demirgüç-Kunt ◽  
Enrica Detragiache
Keyword(s):  
Probability Model ◽  
Empirical Studies ◽  
Banking Crises ◽  
Economic Effects ◽  
Empirical Literature ◽  
Future Research ◽  
Multivariate Probability ◽  
Cross Country ◽  
Early Warnings

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in contemporary economies. The paper reviews the two basic methodologies adopted in cross-country empirical studies, the signals approach and the multivariate probability model, and their application to study the determinants of banking crises. The use of these models to provide early warnings for crises is also reviewed, as are studies of the economic effects of banking crises and of the policies to forestall them. The paper concludes by identifying directions for future research.

Parenting as a Buffer That Deters Discrimination and Race-Related Stressors from “Getting Under the Skin”: Theories, Findings, and Future Directions

2017 ◽  
Author(s):  
Allen W. Barton ◽  
Gene H. Brody
Keyword(s):  
Health Outcomes ◽  
Physical Health ◽  
Childhood Adversity ◽  
Empirical Literature ◽  
Future Research ◽  
Stress Buffering ◽  
Physical Health Outcomes ◽  
Theoretical Approaches ◽  
Future Research Directions ◽  
Mental And Physical Health

In this chapter, the hypothesis is explored that parenting processes buffer children’s physical health from the deleterious effects of discrimination. First, the existing empirical literature is reviewed on the stress-buffering effects of parenting on children’s physical health outcomes, with respect to the stress of general childhood adversity and the specific stressor of discrimination. Next, theoretical approaches are considered that account for the capacity of parenting to buffer contextual stressors, including discrimination, from compromising mental and physical health outcomes. Particular emphasis is given to the putative mechanisms potentially responsible for protective-stabilizing effects. Then, a critique of the extant research and theory on this topic highlights particular qualifications and considerations for the research community. Finally, suggestions are offered for future research directions, including the use of randomized prevention trials to test hypotheses about the protective functions of parenting in preventing discrimination from “getting under the skin.”

Feeling Threatened by Immigrants: The Role of Ideology and Subjective Societal Status

2020 ◽  
Author(s):  
Michael Bollwerk ◽  
Bernd Schlipphak ◽  
Joscha Stecker ◽  
Jens Hellmann ◽  
Gerald Echterhoff ◽  
...  
Keyword(s):  
Online Survey ◽  
Middle Eastern ◽  
Social Dominance Orientation ◽  
Survey Study ◽  
Future Research ◽  
Right Wing Authoritarianism ◽  
Threat Perceptions ◽  
Contextual Determinants ◽  
Intergroup Conflicts ◽  
And Gender

Threat perceptions towards immigrants continue to gain importance in the context of growing international migration. To reduce associated intergroup conflicts, it is crucial to understand the personal and contextual determinants of perceived threat. In a large online survey study (N = 1,184), we investigated the effects of ideology (i.e., Right-Wing Authoritarianism and Social Dominance Orientation), subjective societal status (SSS) and their interaction effects in predicting symbolic and realistic threat perceptions towards Middle Eastern immigrants. Results showed that ideology (higher RWA and SDO) and lower SSS significantly predicted both symbolic and realistic threat, even after controlling for income, education, age, and gender. Furthermore, ideology and SSS interacted significantly in predicting realistic threat, with higher levels of SDO and RWA enhancing the effect of SSS. In the discussion, we focus on the implications of our findings with respect to understanding societal conflicts, discuss methodological limitations, and provide directions for future research.

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