scholarly journals Fallacies and economic errors in globalization discussions

2021 ◽  
pp. 211-253
Author(s):  
David Sanz Bas
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Foreign Aid ◽  
Jel Classification ◽  
Social Scientists ◽  
Fourth Group ◽  
The Third ◽  
Classical Liberal ◽  
Palabras Clave ◽  
Economic Statistics

Globalization is a very interesting field of study for social scientists. As usual, there are several approaches to this endeavor (Keynesian, classical liberal, Marxist, etc.) and it could be studied from various angles (economical, historical, political, sociological, etc.). Therefore, controversies are guaranteed. However, in these discussions about globalization, several economic fallacies and errors normally appear. In this paper I want to point out some of these common mistakes that participants in globalization discussions are prone to make and I want to show why I believe they are wrong. In order to dothat, I am going to use logical claims to try to demonstrate my points. I am going to divide the fallacies into four groups. The first topic is trade. The second subject is economic statistics. The third point is poverty. The fourth group is scarcity of natural resources and population growth. Key words: Globalization, free trade, protectionism, economic growth and natural resources, poverty, foreign aid, statistics. JEL Classification: F35, C0, I32,I38, Q34, FI0. Resumen: La globalización es un campo de estudio muy interesante para los científicos sociales. Como suele ocurrir hay muchas aproximaciones a esta cuestión (keynesianos, liberales clásicos, marxistas, etc.) y puede ser estudiada desde varios ángulos (económico, histórico, político, sociológico, etc.). Por tanto, las discusiones están garantizadas. Sin embargo, en estas discusiones suelen aparecer numerosas falacias económicas y errores. En este artículo quiero mostrar algunos de estos errores más comunes que tienden a cometer los participantes en discusiones sobre la globalización. Para elloutilizaré exclusivamente una argumentación lógica. Dividiré las falacias en cuatro grupos: comercio, estadísticas económicas, pobreza y escasez de los recursos naturales y crecimiento poblacional. Palabras clave: Globalización, comercio libre, proteccionismo, crecimiento económico y recursos naturales, pobreza, ayuda exterior, estadísticas. Clasificación JEL: F35, C0, I32,I38, Q34, FI0.

scholarly journals Schumpeterian aspects of growth and its correlative classical and neoclassical approaches

2021 ◽  
pp. 85-117
Author(s):  
Sergio A. Berumen
Keyword(s):  
Economic Growth ◽  
Important Determinant ◽  
Jel Classification ◽  
Central Concept ◽  
Goods And Services ◽  
Palabras Clave ◽  
Standards Of Living ◽  
Capital Humano ◽  
Sustainable Economic Growth

Economic Growth is a central concept in Economic Theory. Most of the modern societies regard growth as an important determinant for rising standards of living. Their effects can be observed not only in more goods and services but also in brand new processes. Investment in human capital is re-garded as the very source of long-term, sustainable Economic Growth. The purpose of this paper is to provide a brief description of Economic Growth, how to approach its measurement, and to provide a brief review of the Schum-peterian thought and the main schools that have undertaken from the Classical and Neoclassical Approaches. Key Words: Economic Growth; Schumpeterian Thought; Classical and Neo-classical Approaches. JEL Classification: B12, B13, B52, O43, O49. Resumen: El crecimiento económico es un concepto fundamental de la teoría económica. La mayoría de las sociedades modernas consideran el crecimiento como una determinante importante para el incremento de los niveles de vida. Sus efectos se pueden observar en el aumento de bienes y servicios, pero también en la disponibilidad de nuevos procesos. En este escenario, la inver-sión en capital humano es, de hecho, la fuente original del crecimiento económico a largo plazo y de manera sostenible. El objetivo del presente trabajo consiste en explorar los principales rudimentos del crecimiento económico, de su preceptiva medición y de mostrar las aportaciones originales alcanzadas desde el Pensamiento Schumpeteriano, así como de su contrastación con las perspectivas Clásicas y Neoclásicas. Palabras clave: Crecimiento económico; Pensamiento Schumpeteriano; aproxi-maciones Clásica y Neoclásica.

The “Resource Curse”: Lessons of the Third World

2015 ◽  
pp. 28-39
Author(s):  
V. Shmat
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Third World ◽  
Raw Materials ◽  
Resource Curse ◽  
The Third ◽  
National Institutions ◽  
Resource Nationalism ◽  
The Third World ◽  
First World

According to the hypothesis known as the “resource curse”, natural resources abundance is a brake on economic growth of many Third World countries. But is it really so? The author believes there are deeper reasons why the Third World in general – regardless of the amount of raw material resources available in each country – cannot achieve the same level of welfare as the First World. The “resource curse” theory looks for the origins of the resourceful countries’ economic problems in the institutional sphere. But this seems misleading because of excessively narrow “here and now” approach. The economic and socio-political institutions of individual countries are regarded in short periods of time when “curse” declared itself. Its typical manifestations, such as rent-seeking, stagnation or degradation of the institutions, authoritarian power, snowballing public debt and symptoms of Dutch disease, were seen in many Third World countries long before the development of the major sources of raw materials and regardless of the availability or absence of them. Therefore, it seems appropriate to speak of a kind of “three-fold institutional curse” as an explanation of continuing underdevelopment of many countries and territories. Poor national institutions in the Third World countries are not actually caused by the presence or absence of concentrated natural resources. This is the result of prior historical development with series of discrete transitions from one condition to another: from colonial status – to independent statehood; from poverty – to unexpected wealth mostly based on the exploitation of the natural resources. Qualitative transformation of national institutions usually lags far behind. As a consequence, institutional development enters into a state of stagnation (inhibiting or destabilizing economic growth) that can stretch for very long periods of time. The author concludes that the presence or absence of resources, in fact, has no fundamental impact on the nature of socio-economic development of Third World countries. The major reason hindering institutional progress has external nature, that is heavy economic dependence on the First World (coupled with informal political subordination). This circumstance begets the “resource nationalism” by the developing countries – exporters of raw materials and fuel. History of “resource nationalism” provides a useful lesson for Russia whose economy is features by growing dependency on resources. Acknowledgement. The article has been supported by a grant of the Russian Science Foundation. Project № 14-18-02345.

scholarly journals La teoría del ciclo monetario endógeno y la economía china en 2011

2021 ◽  
pp. 111-153
Author(s):  
Jesús del Amo Lamborena
Keyword(s):  
Economic Freedom ◽  
Jel Classification ◽  
Chinese Economy ◽  
Economic Cycle ◽  
Economic Cycles ◽  
Austrian Theory ◽  
The Third ◽  
Palabras Clave ◽  
Business Function ◽  
Structural Aspects

The present project has as its objective to analyse different variables of the Chinese Economy in order to establish in which aspect it is in, regarding the Austrian Theory of the economic cycle. The project consists of 3 parts: In the first part an introduction will be conducted on the Austrian theory of the economic cycle, in the second part, historical and structural aspects of the chinese economy will be analised, and the third and last part deals with analising the different economic variables to try and establish in which position the chinese economy is in regarding it’s cycle stage, and in turn, establish it’s possible evolution. Finally we have to underline that the Chinese economy has demonstrated how important the forces of entrepreneurship are when you give economic freedom to the population. Key words: Chinese economy, interventionism, economic cycles, business function. JEL Classification: N15, N27, N45, N65, O53, P11, P32, Y10. Resumen: El presente trabajo tiene por objeto analizar distintas variables de la economía china para tratar de establecer la fase en la que se encuentra la economía china con respecto a la teoría austriaca del ciclo económico. El trabajo consta de tres partes: En la primera se realiza una introducción a la teoría austriaca del ciclo económico, en la segunda se analizan aspectos históricos y estructurales de la economía china, y en la tercera y última se tratan de analizar distintas variables económicas para intentar establecer la posición de la economía china con respecto a su fase de ciclo, para a su vez, tratar de establecer su posible evolución. La principal conclusión del trabajo es que la economía china, a pesar de su enorme tamaño y grado de intervencionismo, no es inmune a las leyes económicas y está sujeta a los mismos avatares que el resto de economías. Si las autoridades chinas siguen con su política intervencionista, las consecuencias serán las mismas que en el resto de economías. Por último, hay que reseñar que la economía china ha demostrado cómo de grandes son las fuerzas de la función empresarial cuando se da libertad económica a la población. Palabras clave: Economía china, intervencionismo, ciclos económicos, función empresarial. Clasificación JEL: N15, N27, N45, N65, O53, P11, P32, Y10.

The Status and Significance of the Theory of Social and Cultural Pluralism

1987 ◽  
Vol 1 ◽  
pp. 63-80
Author(s):  
James A. Monsonis
Keyword(s):  
Economic Growth ◽  
Third World ◽  
Cultural Pluralism ◽  
Social Scientists ◽  
Class Interest ◽  
The Third ◽  
The Status ◽  
History Of ◽  
Sense Of Reality ◽  
The Third World

This is a paper tracing the history of an ideology, in the classical Marxist sense of the term: a framework of thought which purports to make sense of reality but which in fact masks its real dynamics, and which is developed in the service of class interest (Marx, 1970). The ideology in question here has to do with the ways in which social scientists conceptualize and analyse the dynamics of those societies usually described as the Third World. In recent years, following the failure of functionalism and such developmentalist schemas as Rostow's stages of economic growth, there has begun to emerge an interest in thinking about Third World societies in terms of social and cultural pluralism. It is this framework of thought which is to be examined here.

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

2008 ◽  
Vol 47 (3) ◽  
pp. 215-240
Author(s):  
Muhammad Arshad Khan ◽  
Ayaz Ahmed
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Jel Classification ◽  
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. JEL classification: C13, C22, F23, F35, O11 Keywords: Foreign Aid, Economic Growth, FDI, Cointegration

scholarly journals Fenicia: ¿una experiencia anarcocapitalista?

2018 ◽  
pp. 165-187
Author(s):  
Jaime Hernán-Pérez Aguilera
Keyword(s):  
Economic Growth ◽  
Middle East ◽  
Property Rights ◽  
Economic System ◽  
Key Words ◽  
Economic Freedom ◽  
Private Property ◽  
Jel Classification ◽  
Palabras Clave ◽  
Trade And Exchange

On 1000 B.C. a series of circumstances enabled the establishment and expansion of a civilization in the Middle East, in what is now Lebanon, which would be known as Phoenicia. Its religious tolerance, political organiza-tion and economic system, was focused on trade and exchange, to obtain maximum profitability and benefit, in an environment of economic freedom and respect of private property that would take centuries to repeat. So much so that Phoenicia could be considered, with some exceptions, as the first anarcocapi-talist experience in history. Key Words: Anarcocapitalism, property rights, trade, markets, economic growth JEL Classification: A12, B25, P10, P14, P17. Resumen: En torno al año 1000 a.C., una serie de circunstancias políticas pro-pició el establecimiento y la expansión de una civilización en Oriente Medio, en lo que hoy es Líbano, que sería conocida como Fenicia. Su tolerancia reli-giosa, su organización política y su sistema económico, estaba enfocado al comercio y al intercambio, a obtener la máxima rentabilidad y beneficio, en un entorno de libertad económica y de respeto a la propiedad privada que tarda-ría siglos en volver a repetirse. Tanto es así que Fenicia podría ser conside-rada, con algunas salvedades, como la primera experiencia anarcocapitalista de la historia. Palabras clave: Anarcocapitalismo, derechos de propiedad, comercio, merca-dos, desarrollo económico Clasificación JEL: A12, B25, P10, P14, P17.

scholarly journals Effectiveness of Foreign Aid and Human Development.

2009 ◽  
Vol 48 (4II) ◽  
pp. 853-862
Author(s):  
Mohammad Ali ◽  
Nasim Shah Shirazi ◽  
Turkhan Ali Abdul Mannap
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
Foreign Aid ◽  
Human Development ◽  
Granger Causality ◽  
Human Development Index ◽  
National Development ◽  
Jel Classification ◽  
Aid Effectiveness ◽  
Development Index

Foreign aid has been contributory towards fostering broad-based development and complementing national development initiatives in the recipient countries. This paper analyses the question of aid effectiveness towards the achievement of goals in the special context of a set of social outcomes in Pakistan. More specifically, the paper focuses the core question that ‘how’ and ‘how far’ foreign aid has affected the ‘health’, ‘education’, and overall ‘human development index’ in Pakistan. Our result shows that there is feedback Granger causality between GI and ODA. That is, Economic growth induces ODA and ODA Granger cause economic growth. As far as Education index, Human development index and life expectancy index concerned, there are only unidirectional Granger causality from ODA to Education index, Human development index and life expectancy index. This is consistent with other literature that ODA contribute to human development. JEL classification: O15, P45 Keywords: Effectiveness, Human Development, Foreign Aids, Granger Causality

scholarly journals Beyond Keynes and the Classics. Outline of the Goods Side/Money Side Model of the Business Cycle and Macroeconomic Configurations

2021 ◽  
pp. 111-135
Author(s):  
Antony P. Mueller
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Aggregate Demand ◽  
Jel Classification ◽  
Macroeconomic Model ◽  
Macroeconomic Analysis ◽  
Palabras Clave ◽  
Demand Models ◽  
The Business Cycle ◽  
Basic Features

This paper presents the goods side/money side (GSMS) model as a novel way of macroeconomic analysis. The GSMS model goes beyond Keynesianism as it makes a sharp distinction between the goods side and the money side and thus avoids the indistinctness between real nominal values that come with spending in aggregate demand models. The GSMS model transcends classical macroeconomics in its traditional and modern versions as it reinstates money as an active factor in the economy. Different from monetarism, the key monetary concept of the GSMS model is «macroeconomic liquidity», which includes velocity of circulation. The present paper presents the basic features of the model and shows its use by analyzing macroeconomic configurations, the business cycle, and economic growth. The paper includes an appendix with an evaluation of macroeconomic configurations in the light of the GSMS model. Key words: GSMS Macroeconomic Model, Monetary Policy, Economic Growth, Austrian Theory of the Business Cycle (ATB). JEL Classification: A23, E32, E52. Resumen: Este trabajo presenta el modelo lado del mercado de bienes/lado del mercado de dinero (GSMS) como una nueva forma de análisis macro-económico. El modelo GSMS va más allá del keynesianismo, ya que hace una clara distinción entre el lado de los bienes y el lado del dinero y, por tanto, evita la ausencia de diferenciación entre los valores nominales y reales que vienen con el gasto en los modelos de demanda agregada. El modelo GSMS trasciende la macroeconomía clásica en sus versiones tradicional y moderna, ya que restituye al dinero un rol activo en la economía. A diferen-cia del monetarismo, el concepto monetario clave del modelo GSMS es la «liquidez macroeconómica», que incluye la velocidad de circulación. El pre-sente artículo presenta las características básicas del modelo y muestra su uso mediante el análisis de configuraciones macroeconómicas, el ciclo eco-nómico y el crecimiento económico. El documento incluye un apéndice con una evaluación de configuraciones macroeconómicas a la luz del modelo GSMS. Palabras clave: Modelo Macroeconómico GSMS, Política Monetaria, Cre - cimiento Económico, Teoría Austriaca del Ciclo Económico. Clasificación JEL: A23, E32, E52.

Foreign aid allocation, governance, and economic growth Synopsis

2012 ◽  
Author(s):  
International Food Policy Research Institute (IFPRI)
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Aid Allocation

Pakistan's Export Possibilities

1973 ◽  
Vol 12 (1) ◽  
pp. 1-30
Author(s):  
Syed Nawab Haider Naqvi
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Policy Maker ◽  
Time Horizon ◽  
Price Level ◽  
Balance Of Payments ◽  
Domestic Saving ◽  
Trade Offs ◽  
High Level

The recent uncertainties about aid flows have underscored the need for achieving an early independence from foreign aid. The Perspective Plan (1,965-85) had envisaged the termination of Pakistan's dependence on foreign aid by 1985. However, in the context of West Pakistan alone the time horizon can now be advanced by several years with considerable confidence in its economy to pull the trick. The difficulties of achieving independence from foreign aid can be seen by reference to the fact that aid flows make it possible for the policy-maker to pursue such ostensibly incompatible objectives as a balance in international payments (i.e., foreign aid finances the balance of payments), higher rates of economic growth (Lei, it pulls up domestic saving and investment levels), a high level of employment (i.e., it keeps the industries working at a fuller capacity than would otherwise be the case), and a reasonably stable price level (i.e., it lets a higher level of imports than would otherwise be possible). Without aid, then a simultaneous attainment of all these objectives at the former higher levels together with the balance in foreign payments may become well-nigh impos¬sible. Choices are, therefore, inevitable not for definite places in the hierarchy of values, but rather for occasional "trade-offs". That is to say, we will have to" choose how much to sacrifice for the attainment of one goal for the sake of somewhat better realization of another.

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