Do all countries grow alike?

University of Groningen, Faculty of Economics and Business & CIBIF, 9700 AV Groningen, The Netherlands
Journal of Development Economics (Impact Factor: 2.13). 01/2010; 91(1):113-127. DOI: 10.1016/j.jdeveco.2009.07.006
Source: RePEc


This paper investigates the driving forces of output change in 77 countries during the period 1970–2000. A flexible modeling strategy is adopted that accounts for (i) the inefficient use of resources, and (ii) different production technologies across countries. The proposed model can identify technical, efficiency, and input change for each of three endogenously determined regimes. Membership in these regimes is estimated, rather than determined ex ante. This framework enables explorations into the determinants of output growth and convergence issues in each regime.

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    • "In collecting the data, we treat the world as a typical country, assuming that the production process is homogenous around the world because we do not allow for heterogeneous growth experiences (Bos et al. 2010). Our limited degrees of freedom (small sample of observations we have available due to our limited number of observations for entrepreneurial variables) does not permit us to deepen our analysis in this respect. "
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    ABSTRACT: Cultural evolution is a long-term endogenous process which is revealed in society’s cultural traits and it is embodied in institutional characteristics (property rights protection, rule of law, etc.) and transaction characteristics (risk levels, time required for start-ups, corruption levels, literacy levels, etc.). In the short- and medium-term, culture, institutions and transactions are exogenous for the economic and societal system. The paper aims to explore the roles of cultural, transaction and institution characteristics in the determination of opportunity entrepreneurship, at the medium-term. A series of variables is used to express these roles, which are analysed with a principal component analysis and a regression analysis. As expected, the conclusions confirm that the cultural traits both positively and negatively affect opportunity entrepreneurship depending on the particular traits combination. Moreover, the effect of enhanced transaction characteristics and economic institutions is conducive to opportunity entrepreneurship. Performing a sensitivity analysis, we construct a hypothetical, more opportunity entrepreneurship-oriented world by postulating pro-entrepreneurship cultural traits. In this ‘new world’, because cultural traits are no longer an issue, they present ‘entrepreneurial maturity’; the important factors in promoting opportunity entrepreneurship are transaction and economic institution characteristics.
    Full-text · Article · Sep 2014
    • "A high value for the property rights variable indicates Int Entrep Manag J that a country's laws protect private property rights, the government enforces those laws, the judiciary is independent, there is no corruption and it is easy to enforce contracts. From the way that the data are collected, it is obvious that we treat the world as a typical country supposing that the production process is homogenous around the world, since we do not allow for heterogeneous growth experiences (Bos et al. 2010). This is because, the limited degrees of freedom, due to the small sample of observations (mainly the limited number of observations for cultural variables), does not permit to deepening the relative analysis. "
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    ABSTRACT: This paper interprets opportunity entrepreneurship, within the framework of Solow—Romer model and the characteristics of society’s entrepreneurship capital, as it is expressed by cultural background, transaction characteristics and economic institutions, using the principal components and regression analysis. It extends the concepts of growth theory to the entrepreneurial determination framework, based on the assumption that growth is generated by entrepreneurship. Τhe paper accomplishes to organize an integrated model of the actual opportunity entrepreneurship determination where the cultural variables play a predominant role. From the variables used to express entrepreneurial economy and its effects on the levels of opportunity entrepreneurship, only the variables expressing cultural background seem to have an effect, and more specifically a promoting one. It is established that for the configuration of opportunity entrepreneurship, the effect of cultural background is more serious than that of the Solow-Romer factors. Furthermore, the institutions and the transactions characteristics are purely endogenous formations.
    No preview · Article · Jun 2014 · International Entrepreneurship and Management Journal
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    • "The question of regime migration is a complex one and has been recently addressed by Bos et al. (2010). 11 As documented in the World Bank data Agricultural raw materials exports correspond to the SITC section 2 excluding divisions 22, 27 (crude fertilizers and minerals excluding coal, petroleum, and precious stones), and 28 (metalliferous ores and scrap); Food exports Food comprises the commodities in SITC sections 0 (food and live animals), 1 (beverages and tobacco), 4 (animal and vegetable oils and fats) and SITC division 22 (oil seeds, oil nuts, and oil kernels); Ores and metals comprise the commodities in SITC sections 27 (crude fertilizer, minerals nes) 28 (metalliferous ores, scrap), and 68 (non-ferrous metals) and Fuel exports comprise SITC section 3 (mineral fuels). "
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    ABSTRACT: The literature on the impact of an abundance of natural resources on economic performance remains inconclusive. This paper tests the hypothesis that whether natural resources are a curse or a blessing depends on the growth regime to which economy belongs. We follow recent work that has used a mixture of regression method to identify different growth regimes, and find that in one regime resources are a blessing, while in the other they are a curse or at best have no impact. Our analysis of the determinants of whether a country belongs or not to the blessed resources regime indicates that the level of democracy plays an important role while education has no effect.
    Full-text · Article · Sep 2013 · Applied Economics
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