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 ...

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.

Remittances and Economic Growth

2020 ◽  
pp. 325-343
Author(s):  
Mustafe Pllana ◽  
Aida Tmava
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Aggregate Demand ◽  
Trade Deficit ◽  
Financial Capital ◽  
Foreign Direct Investments ◽  
Per Capita Gdp ◽  
Goods And Services ◽  
Multiplicative Effect ◽  
Per Capita

Economic growth has become an important study growth matter. By economists economic growth is defined as capital stock growth, rising per capita GDP, increased access for manufactured goods and services for consumption and so on. In economic growth affect several factors and policies. Corruption, lack of investment, inappropriate institutions, inappropriate education etc. are some of obstacles to economic development. Consumption and investment are important components of aggregate demand with multiplicative effect in development. Remittances of migrants are significant potential financial capital used for investments, reflected in economic development and social prosperity. Remittances in Kosovo since 1960 have always been increasing. Participation of remittances to GDP in Kosovo in 2010 is about 12%. Remittances are the highest contributor to the Kosovo trade deficit coverage and are higher than foreign direct investments. Remittances unfortunately for various reasons are not exploited and are not sufficiently exploited for economic development.

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 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.

Remittances and Economic Growth

2016 ◽  
Vol 5 (4) ◽  
pp. 47-64
Author(s):  
Mustafe Pllana ◽  
Aida Tmava
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Aggregate Demand ◽  
Trade Deficit ◽  
Financial Capital ◽  
Foreign Direct Investments ◽  
Goods And Services ◽  
Multiplicative Effect ◽  
Important Study ◽  
Per Capita

Economic growth has become an important study growth matter. By economists economic growth is defined as capital stock growth, rising per capita GDP, increased access for manufactured goods and services for consumption and so on. In economic growth affect several factors and policies. Corruption, lack of investment, inappropriate institutions, inappropriate education etc. are some of obstacles to economic development. Consumption and investment are important components of aggregate demand with multiplicative effect in development. Remittances of migrants are significant potential financial capital used for investments, reflected in economic development and social prosperity. Remittances in Kosovo since 1960 have always been increasing. Participation of remittances to GDP in Kosovo in 2010 is about 12%. Remittances are the highest contributor to the Kosovo trade deficit coverage and are higher than foreign direct investments. Remittances unfortunately for various reasons are not exploited and are not sufficiently exploited for economic development.

Business Activity and Economic Growth: An Economic and Statistical Study

2020 ◽  
Vol 27 (6) ◽  
pp. 66-78
Author(s):  
A. A. Frenkel ◽  
B. I. Tikhomirov ◽  
Y. V. Sergienko ◽  
A. A. Surkov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Activity Index ◽  
Objective Assessment ◽  
Accurate Determination ◽  
Business Activity ◽  
Economic Activities ◽  
Goods And Services ◽  
Socio Economic Development ◽  
The Impact

This publication reflects the results of the author’s research on improving the domestic statistical and methodological tools used in the analysis and forecasting of the Russian economy. In this regard, the main features of the formation and application of the Business Activity Index for basic spheres of the economy of the Institute of Economics of the Russian Academy of Sciences (hereinafter, the index of business activity) are shown and substantiations of its individual advantages are given in comparison with the index of output of goods and services for the basic types of economic activities of Rosstat (hereinafter, the release of goods and services). The authors provide evidence that despite a number of positive qualities of the applied methodology for constructing the index of output of goods and services, the business activity index, according to the authors of the article, provides a more objective assessment of macroeconomic dynamics, since it includes additional indicators reflecting financial and social aspects of economic development. It is proved that the main advantages of the business activity index are manifested in a more accurate determination of the depth of crisis phenomena in socio-economic development, as well as in determining the timing of the onset and overcoming of these negative processes. The characteristics of the macroeconomic indicators that make up the business activity index are given. Methods for calculating the weights of indicators characterizing the level of business activity in various spheres of the national economy, as well as methods for determining changes in this level are considered. Changes in the dynamics of these weights are analyzed. Ways of more efficient use of business activity indices in the practice of accounting, forecasting and management of socio-economic development are proposed. The conclusion is substantiated that it is advisable to use the business activity index for macroeconomic analysis, forecasting and strategic planning, which will make it possible to more accurately assess the impact of the implementation of national projects and the social package of the message of the President of the Russian Federation on economic growth and increase the efficiency of using business activity tools in the practice of public administration of social economic development of the country.

Modelling the Economic Growth of an Islamic Economy

1993 ◽  
Vol 10 (4) ◽  
pp. 491-511
Author(s):  
M. Ramzan Akhtar
Keyword(s):  
Economic Growth ◽  
Good Life ◽  
Statistical Data ◽  
The State ◽  
Institutional Factors ◽  
Physical Factors ◽  
Consistent Increase

In an Islamic economy economic growth is not an end in itself, butrather a means of promoting the citizenry's good life. Growth dependsupon several factors, among them a consistent increase in the amount ofphysical goods and seMces produced over a given period of time. Thisis usually taken as an index of economic growth. Adopting the sameindex, this paper asks: What factor explains economic growth in an Islamiceconomy? For this purpose, the paper refers to the Islamic economyof Madinah, which saw substantial expansion in all directions during thereigns of the Prophet and his four immediate political successols.This paper gives an answer based on the hypothesis that both physicaland moral factors are instrumental in causing economic growth in an Islamiceconomy. This hypothesis is quite different from that of seculareconomics, which views economic growth only in terms of physical factors.Such an explanation has been found inadequate, however, as empiricalstudies on American data have shown that just over half of all outputgrowth is explained by physical factors. Denison calls the unexplainedpart "the measm of our ignorance" (Branson and Litvack 1981).Many Muslim economists have discussed the role of moral factors invarious forms (i.e., integrity, cultural will, and calls to the Muslim massesto regain their past glory). This paper, however, views the role of moralfactors in terms of the bounty of God (fadl Allah). It is argued that thisfactor influenced economic growth through both autonomous and inducedchannels operating in institutional factors (i.e., the mosque and the state)and the level of God-consciousness (taqwa) in an Islamic society.The hypothesis is examined theoretically, because statistical data forempirical analysis is not available. The paper relies on the Qur'an and the ...

The isusu: an institution for capital formation among the Ngwa Igbo; its origin and development to 1951

Africa ◽  
1984 ◽  
Vol 54 (4) ◽  
pp. 46-58 ◽  
Author(s):  
Anthony I. Nwabughuogu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Significant Role ◽  
Capital Formation ◽  
Credit Associations ◽  
Opening Paragraph ◽  
Credit Institutions

Opening ParagraphTwo contrasted viewpoints are adopted by scholars towards indigenous credit institutions in underdeveloped societies. The first holds that such institutions cannot play any significant role in capital formation in those societies. Thus Firth (1964: 15–34) doubts ‘if such credit associations can contribute substantially to capital formation to promote economic growth significantly’. The second viewpoint is held by those who accept the important contributions of these institutions in the process of development but understate their functions and value in the process of development. Geertz (1962: 241–63) belongs to this group. After analysing indigenous credit institutions in Asia and Africa, he asserts that they can serve as a kind of ‘middle rung’ in economic development. He sees them as an ‘educational mechanism in terms of which peasants learn to be traders not merely in the narrow occupational sense, but in the broad cultural sense’. These conclusions seem to have influenced other scholars studying credit institutions in Africa. For instance, in his study of credit associations among the Afikpo Igbo, S. Ottenberg (1968: 237–52) adopts much of Geertz's stance.

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.

Sign in / Sign up

Export Citation Format

Share Document