East Asian Growth Controversy

2014 ◽  
pp. 48-72
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Growth Rates ◽  
East Asian ◽  
High Growth ◽  
Growth Accounting ◽  
Neoclassical Theory ◽  
Growth Prospect ◽  
Long Run ◽  
Rates Of Growth

This chapter discusses the major controversy on the EAE's phenomenal rates of growth. The summary of the findings indicates that the dominant share of the EAE's growth was due to factor accumulation and that productivity growth was negligible, until after the mid-1980s when some growth in productivity was noted. Based on these results, the survey shows that in the long-run growth rates in EAEs will eventually taper-off because they are not sustained by significant improvements in productivity. While this finding seems to be the consensus amongst the proponents of the neoclassical theory (and also of this chapter), it is suggested that growth accounting exercises provide (at best) only preliminary insights into the processes leading to economic growth. Therefore, hard-line conclusions based on these accounting constructs should be taken with some degree of caution. Nevertheless, it is shown that high growth prospect in the longer term is weak in light of limited advancements in productivity in these economies.

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

Mobilizing Restraint: Democracy and Industrial Conflict in Post-Reform South Asia. By Emmanuel Teitelbaum. Ithaca, NY: Cornell University Press, 2011. 248p. $65.00 cloth, $24.95 paper.

2012 ◽  
Vol 10 (3) ◽  
pp. 809-811
Author(s):  
Erik Martinez Kuhonta
Keyword(s):  
Growth Rates ◽  
East Asian ◽  
High Growth ◽  
Political Stability ◽  
Authoritarian Regimes ◽  
Development Model ◽  
Regime Type ◽  
The Political ◽  
Cornell University ◽  
The Relationship

A major debate in the literature on the political economy of development centers on the relationship between regime type and economic development. This debate has been heavily influenced by the East Asian development model, where authoritarianism has often gone hand in hand with high growth rates. In South Korea, Taiwan, Singapore, Malaysia, and Indonesia, development has been propelled by authoritarian or semidemocratic regimes. One key element of this argument is that the repression of labor under these authoritarian regimes has been especially helpful in states' pursuit of high growth rates because it has ensured political stability and checked societal demands.

The Role of Religion and National Culture in Economic Growth of Emerging Markets

2014 ◽  
pp. 250-270 ◽  
Author(s):  
Harish C. Chandan
Keyword(s):  
Economic Growth ◽  
Cultural Values ◽  
National Culture ◽  
Emerging Economies ◽  
Growth Rates ◽  
High Growth ◽  
Political Stability ◽  
Domestic Investment ◽  
Domestic Credit ◽  
The Protestant Work Ethic

Religion can influence economic growth and economic growth can influence religiosity (Barro & Mitchell, 2004; Barro & McCleary, 2003; McCleary, 2007). Earlier, Weber (1904, 1930, 1958) had suggested that the protestant work ethic gave rise to capitalism and that other major world religions including Catholicism, Judaism, Islam, Hinduism, Buddhism, Confucianism, and Daoism were not conducive to capitalism. However, the data on predicted growth rates and the current majority religion for the 24 emerging economies (Yeyati & Williams, 2012; IMF WEO, 2010) suggest these emerging economies with high growth rates include a variety of geo-political regions representing many different religions, national cultures, and even “no-religion” affiliation. For the same majority religion, the economic growth rates and Hofstede’s (1980) national culture dimensions vary among nations. Thus, religion alone is not sufficient to explain the higher economic growth of the emerging economies. The economic growth is influenced by additional social, political, and macroeconomic variables including human capital, infrastructure, technological progress, political stability, capital formation, domestic credit to private sector, foreign domestic investment, inflation rate, exchange rate, and international trade. In a secular sense, the religious beliefs and cultural values related to work and social ethic are conducive to economic growth through entrepreneurship and organizational effectiveness.

scholarly journals Productivity Growth and Machinery Investment: A Long-Run Look, 1870–1980

1992 ◽  
Vol 52 (2) ◽  
pp. 307-324 ◽  
Author(s):  
J. Bradford De Long
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Rapid Growth ◽  
History Of Technology ◽  
High Rate ◽  
Past Century ◽  
The Past ◽  
Long Run ◽  
History Of ◽  
Good Proxy

Over the past century in six major economies, economic growth has been strongly associated with machinery investment, as is the case for a larger group of nations since 1950. Both macroeconomic patterns and narratives of the history of technology suggest that this association is causal—that a high rate of machinery investment appears to be a necessary prerequisite for rapid long-run growth—and points away from possibilities that rapid growth is the cause of high machinery investment or that a high rate of machinery investment is a good proxy for other factors that are important causes of growth.

scholarly journals Dissecting Economic Growth in Uruguay

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Natasha Che
Keyword(s):  
Economic Growth ◽  
High Growth ◽  
Income Level ◽  
Growth Prospect ◽  
Structural Indicators

Uruguay experienced one of its biggest economic booms in history during 2004-2014. Since then, growth has come down significantly. The paper investigates the various causes of the boom and discusses the sustainability of these causes. It then compares Uruguay against high-growth countries that were once at a similar income level, across a broad set of structural indicators, to identify priority reform areas that could improve long-term growth prospect.

scholarly journals Foreign Trade and Economic Growth: Evidence of Thirlwall’s Law in Iran

2011 ◽  
Vol 2 (2) ◽  
pp. 81-88
Author(s):  
Ahmad Jafari Samimi ◽  
Ramezan Hosseinzadeh .
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Growth Rates ◽  
Income Elasticity ◽  
Relative Price ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Export ◽  
Actual Growth

Thirlwall’s law establishes a relation between the long-run growth rate, the growth of exports and the long-run income elasticity of imports. This paper applies Thirlwall’s basic balance-of-payments constraint growth model to Iranian economic growth for the period of 1971-2007 by using Autoregressive Distributed Lag (ARDL) Bounds Testing approach. The empirical results reveal that import is cointegrated with relative price and income, and the equilibrium growth rates coincide with actual growth rates. However, our estimated findings reveal that the Thirlwall’s law has been rejected in Iran. In other words, balance of payment doesn’t hinder economic growth in this country. The reason may be due to the fact that Iran is a member of OPEC and its oil export plays a significance role in the country’s foreign trade.

scholarly journals The Impact of Private Capital Flows on Economic Growth in the MENA Region

2020 ◽  
Vol 6 (20) (3) ◽  
pp. 45-67
Author(s):  
Ben-Salha Ousama ◽  
Zmami Mourad
Keyword(s):  
Economic Growth ◽  
Capital Flows ◽  
Growth Rates ◽  
High Growth ◽  
Private Capital ◽  
Mena Region ◽  
Portfolio Flows ◽  
Significant Difference ◽  
Private Capital Flows ◽  
The Impact

The aim of the article is to conduct an empirical analysis of the impact of aggregate and disaggregate private capital flows on economic growth in eleven MENA countries between 1980 and 2018. Unlike prior empirical studies, the fixed effect panel quantile approach developed by Canay (2011) is implemented. Findings suggest that there is a significant difference in the effects of private capital flows on economic growth across lower and higher quantiles. More specifically, the effects of total private capital flows, foreign direct investment flows, portfolio flows and debt flows are positive and statistically significant only for low and medium quantiles, indicating that the enhancing impact of private capital flows in terms of economic growth is only confirmed in countries with relatively low and medium growth rates. Moreover, debt flows affect economic growth in countries recording high growth rates, stressing the importance of financial development in routing those flows into the most productive projects in the economy.

scholarly journals African pathway to achieve inclusive growth: COMESA case study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samar H. Albagoury
Keyword(s):  
Economic Growth ◽  
Data Envelopment Analysis ◽  
Growth Rates ◽  
High Growth ◽  
Poverty Rate ◽  
Data Envelopment ◽  
Inclusive Growth ◽  
African Countries ◽  
Content Type ◽  
The Relationship

Purpose The relationship between economic growth performance and achieving inclusive growth, especially concerning poverty rate, is a subject of continuous argument in economic literature. Although some argue that this relationship is deterministic, i.e. achieving economic growth will definitely reduce poverty and enhance inclusive growth, others believe that the relationship between growth and poverty is conditional, depends mainly on the status of income distribution in this country, i.e. if the growth is combined with a significant improve in distribution then it will reduce poverty. Design/methodology/approach Africa is a clear example of the nexus between economic growth and poverty reduction. Although many African countries manage to achieve relatively high growth rates, hit two digits in some cases, during the last decades, poverty still widely spread in those countries. Of the 30 poorest countries in the world, 24 are African countries. And about 50% of African people still live under the poverty line. Common Market for Eastern and Southern Africa (COMESA), which could be considered as one of the fastest growing regions in Africa, is not an exception; although the region achieves relatively high growth rates, poverty and inequality are still among the region’s main development challenges. Findings This paper found that the economic growth rate achieved in COMESA countries could not be considered as inclusive growth as it does not combine with adequate enhancement in inclusiveness indicators. And that the structural characteristics of those countries economy and its inelasticity are the main reasons behind this inefficiency. Originality/value In this context, this paper aims to evaluate the effectiveness of economic growth achieved in COMESA countries in achieving inclusive growth and to identify the main factors affecting this relationship by using two steps data envelopment analysis. Although this method is originally developed to evaluate the relative economic efficiencies, the main contribution of this paper is the adaptation of data envelopment analysis to evaluate the efficiency of economic growth achieved in COMESA countries in enhancing inclusive growth dimensions such as poverty rate, inequality, unemployment, education, health, and then to identify in its second step the main indicators that could be used to explain the variation in efficiency scores.

A Survey of Economic Growth

2014 ◽  
pp. 73-103
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Endogenous Growth ◽  
Productivity Growth ◽  
Driving Force ◽  
Growth Theory ◽  
Social Infrastructure ◽  
Solow Model ◽  
Neoclassical Theory ◽  
Endogenous Growth Theory

This chapter is a survey of the two prominent theories of economic growth (the neoclassical theory as proposed by Solow [1956] and the endogenous growth theory that originated from the seminal works of Romer [1986]). To date, works following these have essentially been their extensions/refinements and some of the important extensions have also been summarised in this chapter. The current chapter discusses their major findings and implications for policy. It is also shown that the Solow model can be extended and used for policy. The endogenous growth theory, although stated to have some drawback, is useful for policy, as it has added new thoughts on how productivity may be generated. The chapter remains highly theoretical and derivations are suppressed, unless they become necessary. This survey finds that while the driving force of growth has been known since Solow's proposition, the endogenous models have provided some discussions on how economies may achieve productivity growth. Some important sources of productivity advancements that have been suggested are through human capital, research and development, innovations, knowledge creation, and supportive institutions and social infrastructure.

Capital accumulation and growth in Hungary, 1924–2006

2011 ◽  
Vol 61 (2) ◽  
pp. 143-164 ◽  
Author(s):  
B. Leeuwen ◽  
P. Földvári
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Volume Index ◽  
Growth Accounting ◽  
Simple Method ◽  
Long Run ◽  
Over Time

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

Sign in / Sign up

Export Citation Format

Share Document