Wither Convergence?

2016 ◽  
pp. 1-24
Author(s):  
Francisco C. Sercovich
Keyword(s):  
Economic Growth ◽  
Global Convergence ◽  
Industrial Revolution ◽  
Developing Economies ◽  
Middle Income ◽  
Catching Up ◽  
Advanced Economies ◽  
Main Driver ◽  
Global Economic Growth ◽  
First Time

For the first time since the industrial revolution, emerging economies are the main driver of global economic growth. For all its significance, this cannot be taken as an indicator of global convergence, since it resulted essentially from the successful catching-up processes of just a few Asian countries over the last few decades, whilst the productivity and income of the bulk of the developing economies have lagged persistently behind those of the advanced economies. The former continue to have the potential to grow faster than the latter, but realizing this potential on sustainable basis makes it necessary to meet a number of increasingly stringent conditions. Grounds for optimism are considerably less solid today than was the case in the recent past. This is highlighted by the large number of countries locked-up in the ‘middle-income trap”. This chapter offers a fresh view of this phenomenon, examines the nature of the conditions required for the potential for catching-up of middle-income economies to be realized, and attempts to arrive at a realistic outlook on this matter.

scholarly journals The Role of Global Economic Growth in Pakistani Agri-Food Exports

2011 ◽  
Vol 50 (3) ◽  
pp. 245-256 ◽  
Author(s):  
Zahoor Ul Haq Zahoor Ul Haq ◽  
Mohamed Gheblawi ◽  
Safdar Muhammad
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developing Economies ◽  
Likelihood Estimation ◽  
Food Product ◽  
Middle Income ◽  
Middle Income Countries ◽  
Income Elasticities ◽  
Global Economic Growth

This analysis uses least squares and Heckman maximum likelihood estimation procedures with fixed effects to explore the role of economic growth in 36 developed and developing economies—categorised as low-, lower-middle-, upper-middle-, and high-income—in explaining their agri-food import of 29 products from Pakistan during 1990 to 2000. We reject the hypothesis that the economic growth of these economies does not influence Pakistani agri-food product exports. However, the estimated income elasticities are statistically elastic only for lower-middle income countries, suggesting that their expenditure on Pakistani agri-food exports will increase disproportionately as their economies grow. Hence, lower-middle-income countries provide good export opportunities for Pakistan’s agri-food products. JEL Classifications: F14, Q17 Keywords: Economic Growth, Agri-food Trade, Income Elasticities, Developing Countries

Gender and Entrepreneurship in Developing Economies

2019 ◽  
pp. 1-21
Author(s):  
Rob Kim Marjerison
Keyword(s):  
Economic Growth ◽  
Women Entrepreneurs ◽  
Developing Economies ◽  
New Ventures ◽  
Entrepreneurial Activity ◽  
Relative Importance ◽  
Policy Makers ◽  
Entrepreneurship Training ◽  
Global Economic Growth ◽  
The Impact

This chapter begins with a brief exploration of the importance of entrepreneurial activity as a driver of global economic growth. The importance of entrepreneurship in developing economies is examined as are the traits, motivations, and drivers of entrepreneurs and the economic, social, cultural, legislative, and regulatory circumstances that encourage and in some cases discourage entrepreneurial activity. The impact of entrepreneurship training and education on encouraging women entrepreneurs is examined, the relative importance of women entrepreneurs is examined, and emphasis is placed on the relatively greater difficulties that are faced by women entrepreneurs particularly in regards to obtaining funding for starting new ventures. Opportunities are identified that may useful for policy makers, investors, and those that may seek to promote social entrepreneurship and economic growth in developing economies.

scholarly journals Global Outlook for 2018: Economy, Finance, and Monetary, with a Particular Case Study of Taiwan

2018 ◽  
Vol 10 (3) ◽  
pp. 133 ◽  
Author(s):  
Shyi-Min Lu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Interest Rates ◽  
Global Economy ◽  
Average Rate ◽  
The United States ◽  
Gdp Growth ◽  
Advanced Economies ◽  
Global Economic Growth

In October 2017, IMF President Christine Lagarde declared that the GDP growth of world’s economies in the first half of 2017 was up to the broadest recovery since 2010. So far, the strength of global economic growth has been enhancing. The interest rates and inflation are still at a low level. The global economy has risen from the bottom in 2016 to reach its peak since 2011. As for the degree of economic development, the emerging markets grew fastest, followed by the developing countries, while the advanced economies grew moderately at an average rate around 2%. Manufacturing PMI in major countries, such as the United States, China, the Eurozone, and even Taiwan, have increased above 50 notably in the recent years, while the non-manufacturing PMI is also above 50. Accordingly, the main purpose of this paper is to forecast the global economy in 2018, which is on the trajectory of booming with a certain degree of uncertainty. A particular case study of Taiwan’s overall economic development is presented as well.

scholarly journals Innovations in achieving sustainable economic performance under income inequality

2021 ◽  
Vol 5 (2) ◽  
pp. 146-154
Author(s):  
Inna Cabelkova ◽  
Manuela Tvaronaviciene ◽  
Wadim Strielkowski
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Inequality ◽  
Economic Performance ◽  
Financial Services ◽  
Developing Economies ◽  
Well Being ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

The negative effect of income inequality on economic growth represents a topic that constitutes a broad topic of research in the standard economic theory. One of the immediate consequences of income inequality is diminished consumption. Many «poor» customers cannot provide sufficient demand for the producers, causing overproduction that might lead to an economic crisis. It constitutes a problem because sustainable economic performance needs to be achieved under the conditions of income inequality. Reducing social and economic inequality in countries is an essential step towards ensuring that no one is left behind. It is also part of the 10th Sustainable Development Goal aimed to reduce it by 2030. Inequality is based on the income distribution between the top 1% and the bottom 99% of households in any given country. The degree of inequality could play a beneficial role if it is driven by market forces and is associated with incentives to increase growth. In developing and emerging countries, greater equality and improvements in living standards are needed to enable populations to flourish. Inequality reduction is one of the most critical steps a government could take to improve the well-being of its population. The income inequality growth increases human capital in poor countries and reduces it in high and middle-income countries. In poorer countries, it increases them, but in higher – and middle-income countries, it reduces them. Income inequality could be reduced by improving human capital and general skill levels, correcting labor-market policies, and making better use of financial services. In turn, sustainable economic growth could reverse the negative effects of inequality, reducing the need for high-wage and higher-earning households. Thus, it provides higher economic growth. This paper discusses three ways to circumvent the impact of decreasing consumption on economic growth adopted in developing economies over the last fifty years, such as increasing exports, providing loans for consumption, and printing new money. The findings showed that none of these methods seem to be sustainable in the long run. Thus novel and innovative mechanisms that would allow our economy to reduce inequality are necessary and need to be put into place.

scholarly journals Comparison Of Patterns Of Convergence Among “Emerging Markets” Of Central Europe, Eastern Europe And Central Asia

2015 ◽  
Vol 18 (1) ◽  
pp. 5-23 ◽  
Author(s):  
Joanna Poznańska ◽  
Kazimierz Poznański
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Emerging Markets ◽  
Eastern Europe ◽  
Emerging Economies ◽  
Central And Eastern Europe ◽  
The Other ◽  
Catching Up ◽  
Advanced Economies ◽  
Growth Indicators

Based on analysis of economic growth indicators for 1989-2014, this article distinguishes the “emerging markets” of Central and Eastern Europe (with Russia included), from the other economies that fall in the broad ‘emerging markets’ category. Following the post–1989 reforms, the countries of the region share many of the same typical institutional features as other “emerging economies”, but not necessarily the associated economic outcomes. What characterizes “emerging economies” is that they grow fast enough to systematically close the distance dividing them from the advanced economies, creating convergence. Departing from this pattern, Central and Eastern Europe (and Russia) have so far fallen short in terms of the growth rates, and the region as a whole has not made much progress in catching up. By more than doubling its national product Poland is the only notable exception in the region, although Slovenia may fit in the same category. At the other extreme, some of the economies actually lost two decades in terms of reducing the gaps, and some even fell further behind (e.g., Serbia, Ukraine). These findings have potentially serious implications for economic theory in general and for the presumption that globalization processes act as a unifying developmental force.

scholarly journals The Digitalization – Economic Growth Relationship in Developing Countries and the Role of Governance

2021 ◽  
Vol 68 (4) ◽  
pp. 481-493
Author(s):  
Van Bon
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Digital Technology ◽  
Developing Economies ◽  
Research Question ◽  
Trade Openness ◽  
Policy Implications ◽  
Economic Activities ◽  
Advanced Economies ◽  
The Difference

Digital technology is emerging as one of the suitable solutions to help developing economies catch up with advanced economies in the context of globalization. Progress in digital technology promotes economic growth in developing economies because it reduces transaction costs in economic activities and improves workers’ skills and knowledge. Meanwhile, governance is the primary cause of economic growth. Therefore, this study raises a research question of whether governance significantly contributes to the digitalization – economic growth relationship in developing countries or not. For the answer, the study uses the difference GMM Arellano-Bond estimators to empirically examine the effects of digitalization, governance, and their interaction on economic growth for a group of 35 developing countries from 2006 to 2019. Then, the study applies the FE-IV estimator to check the robustness of estimates. The results indicate that digitalization and governance boost economic growth while their interaction hinders it. Furthermore, trade openness also increases economic growth. These findings suggest some crucial policy implications that governments in developing countries should establish appropriate conditions to promote digital technology so that citizens can peacefully express their views on government policies and regulations, which contributes to the economic development of the country.

scholarly journals Capital Flow, Capital Control, and Economic Growth: Evidence from Developed & Developing Economies

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Lubna Khan ◽  
Imtiaz Arif ◽  
Syed Ali Raza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
External Debt ◽  
Capital Flow ◽  
Annual Data ◽  
Capital Control ◽  
Empirical Estimation ◽  
Middle Income ◽  
The Impact

Purpose: The current paper analyzes the effects of capital flow and capital control on economic growth in developed and developing countries. We used four main components of capital flow such as, FDI, exports, remittances and external debt Design/Methodology/Approach: The econometric models are tested by using the annual data of 1995-2017 from 54 countries, classified as developed (high-income) and developing (middle-income) economies. Findings: Empirical estimation of PMG revealed that all four components of capital flow augment the economic growth in both developed and developing countries. However, restrictions on these flows reduces the impact of FDI, external debt and exports but raises the influence of remittances on the economic growth. Implications/Originality/Value: The findings of this paper also provides some useful insights for policymakers to use capital control as a tool for economic progress.                                                             

The Coming Demographic Impact on China's Growth: The Age Factor in the Middle-Income Trap

2012 ◽  
Vol 11 (1) ◽  
pp. 95-111 ◽  
Author(s):  
Fang Cai
Keyword(s):  
Economic Growth ◽  
Comparative Advantage ◽  
Demographic Transition ◽  
Middle Income ◽  
Stage Of Development ◽  
Catching Up ◽  
Speed Up ◽  
Middle Income Trap ◽  
Demographic Impact ◽  
Capital Intensive

Thanks to successful economic growth, social development, and strict implementation of family planning policies, the demographic transition in China has been accomplished at a much earlier stage of development than in other countries. I call this outcome “aging before affluence.” As a result of this demographic transition, China has already passed through its Lewis turning point, and its demographic dividend from the decline in the population dependence ratio is about to end. I identify a potential nexus between “aging before affluence” and the “middle-income trap.” China is losing comparative advantage in labor-intensive industries, but China is not ready to gain comparative advantage in technology-intensive and capital-intensive industries. For China to avoid the middle-income trap, it must (1) transform economic growth to a consumption-driven pattern; (2) shift the labor-intensive industries to the central and western regions; and (3) speed up technological catching up.

Deindustrialization and the Demand for Protection

2021 ◽  
pp. 1-18
Author(s):  
Heather-Leigh Kathryn Ba ◽  
Tyler Coleman
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Developing Economies ◽  
Real Exchange Rates ◽  
Industrialized Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Advanced Economies ◽  
The Business Cycle

Abstract Current explanations of demand for anti-dumping protections focus on the role of the business cycle, and fluctuations in real exchange rates. However, empirical evidence supporting these explanations is based primarily on the experience of industrialized countries. Here, we examine anti-dumping petitions in a broader sample of thirty-four industrialized and middle income countries from 1978–2015. We also propose a new determinant of demand for anti-dumping petitions—changes in the pattern of industrial production between developed and developing economies over this period have contributed to deindustrialization in advanced economies and premature industrialization some developing countries. These changes threaten established industries and motivate them to demand protection.

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