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Capital Accumulation and Economic Growth

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Abstract

A Theoretical model consists of certain hypotheses concerning the causal inter-relationship between various magnitudes or forces and the sequence in which they react on each other. We all agree that the basic requirement of any model is that it should be capable of explaining the characteristic features of the economic process as we find them in reality. It is no good starting off a model with the kind of abstraction which initially excludes the influence of forces which are mainly responsible for the behaviour of the economic variables under investigation; and upon finding that the theory leads to results contrary to what we observe in reality, attributing this contrary movement to the compensating (or more than compensating) influence of residual factors that have been assumed away in the model. In dealing with capital accumulation and economic growth, we are only too apt to begin by assuming a ‘given state of knowledge’ (that is to say, absence of technical progress) and the absence of ‘uncertainty’, and content ourselves with saying that these two factors — technical progress and uncertainty — must have been responsible for the difference between theoretical expectation and the recorded facts of experience. The interpretative value of this kind of theory must of necessity be extremely small.

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... Next, for any period, 41 As is well known, only Harrod-neutral technological progress matches the stylized facts presented by Kaldor (1961). As Barro and Sala-i-Martin (1995) argue, technological progress must take the labour-augmenting form in the production function if the models are to display a steady state. ...
... g is positive and given by Eq. (23). ...
... is set equal to Eq.(23), all optimality conditions of both economies 1 and 2 are satisfied even though economy 1 behaves unilaterally.There are various values of Ψ depending on the initial consumption economy 1 sets. .(23). ...
Article
This paper examines the socially optimal allocation by focusing not on the social welfare function but instead on the utility possibility frontier in exogenous growth models with a heterogeneous population. A unique balanced growth path was found on which all of the optimality conditions of all heterogeneous households are equally and indefinitely satisfied (sustainable heterogeneity). With appropriate government interventions, such a path is always achievable and is uniquely socially optimal for almost all generally usable (i.e., preferences are complete, transitive, and continuous) social welfare functions. The only exceptions are some variants in Nietzsche type social welfare functions, but those types of welfare functions will rarely be adopted in democratic societies. This result indicates that it is no longer necessary to specify the shape of the social welfare function to determine the socially optimal growth path in a heterogeneous population.
... It is well established that innovation and technological progress are crucial for economic growth (Schumpeter, 1934;Kaldor, 1961;Solow, 1970;Romer, 1990;Ahgion & Howitt, 1992;Pasinetti, 1993). Next to other factors -such as human and physical capital formation and internationalization-, research and development (R&D) has been identified as a key driver of innovation and technological progress (Mansfield, 1968;Bound et al., 1982;Griliches, 1986;Hall, 1996;Klette & Griliches, 2000). ...
... There exist no consensus in the theoretical literature whether dividend payouts affect investment. A strong case against the importance of dividend payments is made by the renowned Modigliani-Miller irrelevance theorems (1958;1961), which show that internal and external finance are perfect substitutes when capital markets are efficient, and no information asymmetries exist. In this special case, investment projects will always be undertaken when they raise the market value of the firm, regardless of the firm's capital structure and dividend policy. ...
Conference Paper
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Previous literature has studied extensively the factors affecting R&D investment decisions and the effects of financialization on physical capital formation. This paper adds to this literature by arguing that dividend payouts have a negative effect on firm-level R&D. External financing constraints imply that firms tend to use internal funds to finance R&D investment but, due to shareholder-oriented corporate governance and the growing importance of financial performance indicators, managers often prioritize the payout of dividends over investment. To verify empirically the existence of a trade-off between dividend payouts and R&D investment, we use a dynamic two-step system GMM estimator and financial information from ORBIS for a sample of 6,787 publicly listed firms from 72 countries during the period 2010-2018. The regression results show that dividend payouts have a negative impact on firm-level R&D investment. This finding indicates that short-term shareholder value orientation undermines firm-level R&D activities and gives support for the view that stakeholders that are interested in the long-term growth of the firm should be empowered. JEL Classification: G35; O3
... In order to alleviate inequalities in climate change impacts between countries ethical imperatives but also economic calculus as put forward in Kaldor-Hicks' compensation criteria guide redistribution schemes (Kaldor, 1961;Kant, 1783Kant, /1993Rawls, 1971). Following ethical considerations of Immanuel Kant's (1783Kant's ( /1993) categorical imperative and John Rawls' (1971) veil of ignorance, the climatorial imperative was formulated to advocate for the need for fairness in the distribution of the global earth benefits among nations (Kant, 1783(Kant, /1993Puaschunder, 2020b). ...
... Moral and ethical guidelines may be enhanced with the Kaldor-Hicks Compensation Criteria (Kaldor, 1961). The Kaldor-Hicks test for improvement potential within a society is aimed at moving an economy closer towards Pareto efficiency (Law & Smullen, 2008). ...
... In a first series of papers, Kaldor formalized these ideas by means of a technical progress func-2.1 Theoretical premises 5 tion (Kaldor, 1957(Kaldor, , 1961Kaldor and Mirrlees, 1962). Stated in its simplest form, the technical progress function is a dynamic relationship that relates the growth in productivity, , to the growth of the capital-labour ratio, : ...
... The outcomes suggest that the industries with a high and increasing robotisation are impacted differently according to the level of economic activity we consider. On the one hand, the channel often labelled as "technical-progress function" (Kaldor, 1957(Kaldor, , 1961 seems weakened, if not removed, by the rising robotisation. ...
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Abstract: This paper contributes to the literature around the Kaldor-Verdoorn's law and analyses the impact of robotisation on the channel through which the law shapes labour-productivity growth. We start with a simple evolutionary interpretation of the law that combines Kaldorian and Post-Keynesian arguments with the neo-Schumpeterian theory of innovation and technological change. Then we apply a GMM estimator to a panel of 17 industries in 25 OECD capitalist economies for the period 1990-2018. After elaborating on the general evidence of the Kaldor-Verdoorn's law in the sample, we investigate the effect of increasing robotisation. The estimates suggest that for industries with a higher-than-average robot density, the increasing adoption of robots weakens, at least, the meso-economic channel that relates productivity growth to mechanisation. Yet, the higher degree of robotisation strengthens the mechanism that links labour productivity growth at the industrial level to the macro-level dynamic increasing returns to scale that emerge from a general expansion of economic activities through the many interactions between sectors. Such results are in agreement with the empirical literature that suggests different impacts from robotisation on the basis of the level of economic activity considered. JEL Classification: J23, O33, O47. Keywords: Labour productivity, Kaldor-Verdoorn’s law, Robotisation, GMM.
... This variable (GCF) is in fact adopted as another element and/or another potential actor of economic growth playing naturally a primordial role in the process of growth and development, by determining the national production capacity which, in turn, affects the said growth. In general, the literature has been enriched by various pioneering studies such as Solow (1957), Kaldor (1961) which examined and studied the effect of capital accumulation on economic growth in growth theories. According to Onyinye & al. (2017), the effect of capital accumulation on economic growth depends on the intensity of the determinants of capital accumulation such as savings, foreign direct investment and interest rates; insufficient capital accumulation is one of the most important factors limiting the sustainable growth of countries. ...
Article
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Due to fixed interest and fixed income, bonds are considered excluded in the Islamic financial system. The sukuk were then designed as an alternative to these bonds, meeting the needs of all investors seeking instruments that comply with Islamic law (Shari’ah). Sukuk are considered to be the cornerstone of the Islamic financial industry, playing an important role in mobilizing funding and interaction resources for various actors and investment projects. In addition, the sukuk market as the most popular and sophisticated financial market continues to grow, now constituting a very important source of funds and capital for many governments and companies. The recent development and research on Islamic bonds have shown the importance of this instrument as an alternative to conventional bonds. The objective of this paper is to empirically test the impact of sukuk on the economic growth of Malaysia and Bahrain between 2001-2018. The data were obtained using Bloomberg and World Bank Database. Our results show a positive impact of sukuk on economic growth.
... In the long-run, green bonds benefit the economy and generate positive social returns even if these assets currently may only have lower yields . Green bonds can thus be justified not only from the point of view of climate protection and climate disasters avoidance but also by endogenous growth theory (Aghion & Howitt, 1992, 1998Arrow, 1962;Braga et al., 2021;Kaldor, 1961;Lucas, 1988;Romer, 1986Romer, , 1990Uzawa, 1965;Vitek, 2017). ...
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This dissertation addresses environmental justice. Philosophical and ethical foundations capture a human natural drive towards fairness. Behavioral economics insights inform about humane incentives for protecting the environment. Macroeconomic modeling outlines global inequalities due to climate change heralding a call for climate justice as the right of fairness to a favorable climate for everyone. The introduction opens with the philosophical roots of fairness and responsibility for distributive justice in the environmental domain. The first essay concerns intertemporal discounting and environmental influences on human decision-making and perception as prerequisites for climate justice. Microeconomic empirical work offers behavioral insights on human-imbued cues, individual propensities, and external influences to guide human behavior towards environmental appreciation. The second paper presents a climate justice solution via climate bonds over time inbetween overlapping generations. The third part proposes a future-oriented environmental justice implementation with a novel taxation and bonds transfer strategy. Macroeconomic modeling maps international climate change-induced relative economic gain and loss perspectives in order to derive fair climate stabilization strategies to share the prospective benefits and burdens of climate change more equally within society, between countries, and over generations. Overall, the thesis offers economic behavioral insights on how to nudge people towards conscientious time use and appreciation for the environment. Macroeconomic analyses draw attention to global economic injustices arising from climate change to be remedied by global governance, economic market forces and legal means. Elucidating how to allocate the benefits and burdens of climate change aims at humankind to feel a fair solution was found to enjoy a favorable environment collectively in today's and tomorrow's world.
... The distribution of human capital and economic growth as well as inequality in the physical to human capital accumulation were outlined by Galor and Tsiddon (1997) and Galor and Moav (2004). Kaldor (1961) emphasized that there are wide differences in the rate of growth of productivity across countries. Lucas and Moll (2014) augment growth theories with knowledge growth and productivity-increasing ideas through social interaction as well as time allocation preferences for work. ...
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Many organizations, including government institutions and agencies, continue to increase their financial investment on information technology (IT) solutions. Despite these investments, during the global pandemic, employees and managers are either struggling or unequipped to use these tools effectively and efficiently for sustainability, competitive advantage, and decision making. Due to global pandemics, companies must harness the power of various digital channels such as big data analytics and artificial intelligence to better serve their customers and business partners. Using Information Technology Advancements to Adapt to Global Pandemics provides insights and understanding on how companies and organizations are using advances in IT to adapt to global pandemics such as COVID-19. It explores how the various IT approaches can be used for strategic purposes. Covering topics such as higher education institutions, religious organizations, and telework, this premier reference source is an essential resource for government officials, business leaders and managers, industry professionals, IT specialists, policymakers, libraries, academicians, students, and researchers. Source: Publisher
... Specifically, we aim to achieve two goals. First, we capitalize on the existing, seemingly heterogeneous, studies to derive stylized facts (Kaldor, 1961), or "stable patterns that emerge from many different sources of empirical data" (Heine, Meyer, & Strangfeld, 2005, p. 3). 2 We aggregate results from 58 independent samples from quantitative studies (see Web Appendixes 1 and 2), which total 10,374 observations. On this basis, we propose and test two meta-analytic path models to estimate how the levers are related to each other and with capabilities and performance. ...
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In levers of control (LoC) research, empirical and conceptual ambiguities have hampered the establishment of a coherent body of knowledge. Mixed findings, variability in the approaches to account for the levers’ combined use, and variability in conceptual choices (e.g., the conceptualization of interactive and diagnostic control) have caused this unsatisfactory state. In response, we validate and extend theory on the LoC framework by meta-analytically synthesizing quantitative evidence from 58 independent samples and 10,374 observations. We develop two models of the combined use of the levers, which portray their simultaneous use and mutual relationships, and relate them to capabilities and performance. For theory validation, we uncover stylized facts that demonstrate that organizations use the four levers in combination, not in isolation. Moreover, following the logic of the resource-based view, the levers are related to performance via capabilities. These relationships are robust to moderating influences of the dimensions and conceptualization of interactive control and managers’ hierarchical level. For theory extension, we systematically uncover the need to complement the resource-based view with other theories and offer related suggestions. Our moderator analyses identify boundary conditions that limit the generalizability of the LoC framework. For example, surprisingly, the conceptualization of diagnostic control emerges as a boundary condition. On a general level, our findings might serve as an inspiration for better appreciating future survey-based knowledge creation in management control research and also provide researchers from other disciplines with a more comprehensive understanding of the enhancement of capabilities and performance.
... 16. It is plausible that the weak growth of productivity in core countries also reflects the relative contraction of the manufacturing sector in core countries along the lines of "induced technological change" proposed by Kaldor (1957Kaldor ( , 1961 in his sharp critique of neoclassical growth theory. Shifting manufacturing capacity abroadespecially to Asiaand applying sustained downward pressure on real wages might have boosted profits in the short term in core countries but has helped productivity growth in the longer term. ...
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The acceleration of inflation in the early 2020s following the pandemic shock poses significant risks for financialised capitalism. This article argues that the root causes of inflation do not lie with excessive money creation, as is claimed by Monetarists. By drawing on Keynes’s discussion of war finance, it shows that the causes are to be found primarily in the boost to aggregate demand delivered by core countries of the world economy, while aggregate supply has been persistently weak. Analyzing the weakness of the production side requires recourse to Marxist political economy, especially the role of poor profitability. In this light, a fundamental reason for supply side weakness is the attenuation of the “internal” mechanism of capitalist accumulation in core countries as productivity growth and investment have been feeble since at least the crisis of 2007–2009. The policy options to confront rising inflation are correspondingly difficult.
... The assumption is, therefore, that different technologies with different labour productivity aspects are available at a certain point in time. Businesses can choose different technologies along this "technical progress function" (Kaldor 1961). Technologies with higher labour productivity are simultaneously characterised by a higher capital coefficient. ...
... This last aspect includes a virtuous circle of accumulation of capabilities: coordination economies (because of scale economy interaction) and market size (demand). Specifically, it is considered to be the accumulative causality proposed by Kaldor (1961) that comprehends the following virtuous circle: investment (I) to increase productivity (b), which influences exportation levels (x). It stimulates productivity growth (b). ...
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The objective of this article is to carry out an approach from a systematic review of the literature and about the determinants of economic growth from Kaldorian theory focused on the founder countries of the Pacific Alliance and the Association of Southeast Asia Nations through databases such as Web of Science and Scopus. Two knowledge gaps have been identified. The first corresponds to the lack of studies that comparatively analyze the Kaldorian determinants of virtuous economic growth; the second is the shortage of publications re- lated to the identification of convergence/divergence between countries and trade blocs, which no other paper has yet studied. As a complementary section, the exploratory cluster analysis re- vealed that the clusters of countries formed from 1990 to 2018 had been maintained.
... Moreover, compared to the short-run scenario, the marginal economic growth-boosting impacts associated with capital formation are relatively higher in the long run; this is because a 1% rise in the share of gross fixed capital formation in the GDP of Saudi Arabia increases the nation's per real GDP figure by 0.04% and 0.11% in the short-and long-run, respectively, ceteris paribus. These findings support the capital accumulation growth theory of Kaldor (1961) which postulated that as an economy accumulates capital over time it is likely that the investment levels would go up whereby industrialization-led economic growth can be experienced. The findings from this study are parallel with those documented by Waheed et al. (2020) and Mohsin et al. (2021) for Saudi Arabia and selected South Asian countries, respectively, but justifiably contradict the findings presented by Yasmeen et al. (2021) for the case of the net oil-importing economy of Pakistan. ...
Article
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Identifying pathways relevant for achieving sustainable economic growth has been established as a major macroeconomic agenda for Saudi Arabia. Since this Arab nation is the largest crude oil exporter in the world, fuel export revenues can be assumed to substantially contribute to the growth of its economy. On the other hand, Saudi Arabia is also considered a natural disaster-prone country whereby further degradation of the environment can possibly limit the nation’s prospects of achieving economic growth sustainability. Hence, this study aims to assess the impacts of fuel exports, environmental pollution, capital formation, and labor force expansion on economic growth in Saudi Arabia during the 1969–2020 period. It contributes to the literature by innovatively investigating the independent as well as the joint impacts of fuel exports and environmental pollution on Saudi Arabia’s economic growth performances. Furthermore, an additional literature gap is addressed by predicting the growth response paths concerning both positive and negative shocks to the levels of the potential economic growth facilitators considered in this study. Overall, the regression findings reveal that higher levels of fuel exports, capital formation, and expanision in the labor force size boost economic growth in Saudi Arabia in the long run. In contrast, greater carbon dioxide emissions-related environmental pollution is witnessed to dampen the nation’s long-run growth level. Interestingly, fuel exports and environmental pollution are jointly evidenced to exert long-run growth-inhibiting impacts as well. Moreover, the regression outcomes also appear to be robust when ecological footprints are considered as an alternative indicator of environmental pollution. Finally, the causality estimates support the regression findings by exposing the existence of unidirectional causal influences of fuel exports, environmental pollution, capital formation, and labor force participation on the economic growth figures of Saudi Arabia. Therefore, considering these results, several sustainable growth-facilitating policies are suggested.
... Bhaduri and Marglin's (1990) modeling framework provides practical tools based on distributive scrap and the principle of effective demand deriving different demand and growth regimes. Bhaduri and Marglin's (1990) model includes several approaches to the analysis of economic growth, including the profit-oriented methods of the new growth theory (Aghion & Howitt, 2009;Barro & Sala-i-Martin, 2004;Lucas, 1988;Romer, 1986), and from the classical Marxian model to the neo-Kaleckian model of wage-driven demand and growth (Kaldor, 1957(Kaldor, , 1961Kalecki, 1939Kalecki, , 1969Robinson, 1956Robinson, , 1962, with an intermediate regime of wagedriven demand and profit-driven growth (Hein, 2017). The difference between the Bhaduri and Marglin (1990) model and growth theories based on supply-side neoclassical assumptions is the conception of the economy in terms of dynamics based on technical progress and factor growth (Hartwig, 2014). ...
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The Sar-Cov-2 pandemic that began in 2019 has significantly affected the global economy and, in particular, those of African countries. This paper analyzes possible intervention channels by African states to put their economies back on a sustainable growth path once the health crisis is under control. The paper proposes workable macroeconomic channels for these countries’ recovery from post-pandemic periods by using historical data to conduct empirical analyses. The paper employs World Bank data and ILOSTAT for 54 African countries within the period 1990–2018. We use a post-Keynesian framework and the difference and system generalized method-of-moments to show that wages drive African economic dynamics in the short run. This is particularly true for Sub-Saharan African countries. In addition, foreign output, proxied by European Union output, has a positive and significant impact on Sub-Saharan African economies in the short and long run. The results highlight strategic policy measures for recovering African economies, including improving wages and deepening international economic relations, particularly with the Eurozone countries.
... The increase in national income, which is the monetary expression of all goods and services in a country in a certain period, is defined as "economic growth (Kaynak, 2011). Kaldor (1961) explains the economic growth process based on some data. According to him, in the process of economic growth; ...
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The Islamic economy and finance system has set forth the targets that today's conventional development models predicted and newly achieved with a solid foundation centuries ago. The most important of these foundations is the institution of Zakat. Contrary to popular belief, zakat is not just an institution of helping each other. Zakat acts as a catalyst for much larger change processes in the economic structure. Islamic economic and financial system; compared to conventional economic and financial systems, it naturally incorporates the most appropriate approach to today's modern development strategies. In this study, it is aimed to contribute to the economic growth and development processes with an institutional zakat institution on the example of Turkey, whose population is mostly Muslim. Our aim is to reveal the importance of the Islamic economic and financial system on the one hand, and to bring it to the attention of those concerned by contributing to the literature so that this system can be implemented in Turkey, on the other hand. Keywords: Islamic economy, economic growth, economic development, Zakat, Islamic development model
... y 1980 los salarios representaban en torno al 64% del ingreso en el sector manufacturero y alrededor del 55% en la economía en general. Han caído hacia el final de la serie a valores en torno al 57% y al 50%.Varias décadas atrás, la evidencia empírica surgiría una notable estabilidad en la participación de los trabajadores en el ingreso, al menos en el mediano y largo plazo, a tal punto que esto constituía uno de los conocidos "hechos estilizados" deKaldor (1961). En sus estudios de crecimiento económico, dicho autor había encontrado que la participación del trabajo en el ingreso permanecía estable a lo largo del tiempo, lo cual implicaba un incremento de los salarios reales proporcional a la tasa de crecimiento promedio de la productividad (véase la Figura 8 en el Apéndice para el caso de EEUU). ...
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El crecimiento de la desigualdad y la redistribución regresiva del ingreso se han convertido en una problemática central en la agenda de desarrollo sostenible y en foros económicos mundiales. Simultáneamente, los desequilibrios de la cuenta corriente (CC) de la balanza de pagos son una deficiencia clave en el funcionamiento del sistema monetario y financiero internacional. Este documento de trabajo busca mostrar que los dos problemas están interrelacionados. Una mejora en la participación de los trabajadores en el ingreso induciría un deterioro de la CC, mientras que intentar resolver los desequilibrios de la CC reduciendo la participación salarial en los países deficitarios podría generar un sesgo contractivo a escala global. Por lo tanto, en economías con el grado de integración comercial y financiera actual se requiere una atención simultánea de ambos objetivos. El documento profundiza un aspecto que ha sido escasamente tratado en la literatura que estudia la macroeconomía y la distribución del ingreso: la interacción entre esta última y el sector externo de las economías. A tal fin, se muestra evidencia empírica que expande los tradicionales trabajos econométricos sobre determinantes de la CC utilizando un amplio panel de países para un lapso de 36 años, donde se identifica que una mayor participación del salario en el ingreso se relaciona con un deterioro de la CC. Este hallazgo es consistente con aquellas teorías que asocian una mayor participación del salario en el ingreso con una mayor demanda agregada vía más consumo y menos ahorro, y resulta ser más fuerte para economías en desarrollo, evidenciando las diferencias estructurales entre distintos grupos de países. También se presentan resultados relevantes sobre la significatividad y el signo de variables de control como la intermediación financiera, el resultado fiscal, las ratios demográficas, la apertura de la cuenta capital y las expectativas de crecimiento. En algunos casos hay diferencias en los coeficientes de acuerdo al nivel de desarrollo de los países. La evidencia que se presenta resulta relevante para el diseño de políticas económicas en los países que persigan alcanzar, simultáneamente, un mejoramiento de la distribución del ingreso evitando acentuar la restricción externa. Al respecto, se postula que esta problemática debería ser tratada a escala multilateral. A tal fin, se discuten alternativas para que, en el marco de la actual gobernanza global, sea posible alcanzar objetivos como los de mejorar la distribución del ingreso y disminuir la desigualdad, por un lado, y reducir los desequilibrios globales de las cuentas corrientes, por otro. Se muestra que la coordinación de políticas puede ser una solución superior a que cada país juegue independientemente. Se analizan las dificultades de implementación de una propuesta cooperativa pero, al mismo tiempo, se muestra cómo las alternativas no cooperativas son muy negativas para la economía global y para el propio funcionamiento del sistema multilateral.
... In economies with financial restrictions or which are not completely open to international capital flows, the level of investment is strongly influenced by domestic savings. Authors such as Keynes (1939), Kalecki (1971), and Kaldor (1961) pointed out that total saving is determined by the marginal propensity to save, which is heterogeneous among the different social classes. If higher deciles of income have a greater marginal propensity to save, then a change in the income distribution favorable to them-as a reduction in the wage share in national income-would increase the saving of the economy and thus the financing available for investment. ...
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This paper explores the relationship between inequality and investment based on a panel for 95 countries. It considers a wide range of determinants and econometric methodologies. This work improves the existing literature because (i) it connects inequality with investment; (ii) it controls by a wide set of variables contrasting different theoretical approaches; (iii) the sample includes advanced and developing countries; and (iv) it tests for a possible nonlinear relationship. The paper documents a concave and non-monotonic ("U-shape") relationship between inequality and investment. At low levels of initial inequality, an increase in inequality is associated with lower investment; but at high levels of initial inequality the relationship is positive. The differentiation between advanced and developing countries shows some specific features of the control variables. Given the high correlation between the wage share and inequality, policies of wage restriction cause inequality to increase, thus generating lower investment and growth when countries present low or middle levels of initial inequality. With high levels of initial inequality, the result is the opposite, so it is possible, if such countries are open economies (i.e. “export-led”), that they can fall into a trap of high growth with high inequality, where only government policy can push the country to the other side of the “U.”
... Os estudos de Kaldor (1961Kaldor ( , 1966Kaldor ( , 1967 tornaram-se uma referência sobre como pensar nas fontes do crescimento econômico, associado à manufatura. A estrutura conceitual de seus estudos seminais definiu a base para postulados que, posteriormente, ficaram conhecidos como as Leis de crescimento de Kaldor (1966Kaldor ( , 1967) -leis que atribuem à manufatura um papel crucial no crescimento e no desenvolvimento econômico de um país. ...
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This research evaluates whether the effects of the manufacturing sector on economic growth are enhanced by investment spending. Previous studies have shown the importance of manufacturing to growth; however, they have disregarded spillover effects of gross fixed capital formation in conjunction with manufacturing. Thus, this study innovates the relevant literature by considering such interaction, and by providing possible alternative interpretations for the low economic activity of certain regions. It used the dynamic panel data model with GMM-DIF estimator in a sample with 119 countries (96% of world GDP), observed from 1996 to 2016. The results are consistent with structural change theory. For each 1% change in the manufacturing share of GDP, an average increase in the GDP per capita growth rate was estimated to range from 0.30% to 0.81%, while the gross fixed capital formation values ranged between the average and very close to the sample maximum. Thus, the spillover effect of capital accumulation was confirmed, increasing the impacts of manufacturing on the region’s economic growth. The importance of manufacturing for growth was confirmed. KEYWORDS: manufacturing; gross fixed capital formation; investment; economic growth
... El hallazgo anterior implica que los estudiantes tienden a rechazar los modelos de crecimiento dirigido por la demanda -como el de Casetti (2003); modelos en los que pueden aparecer decisiones y expectativas "irracionales" -como es el de Harrod (1939); o modelos con competencia imperfecta y desempleo estructural -como es el caso de Kaldor (1961). ...
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El número de estudiantes matriculados en programas de Economía en las últimas décadas ha declinado. Este hecho puede explicarse por el aumento de la competencia con programas que los estudiantes consideran más adaptados a la realidad y más amigables en materia de aprendizaje. Este hecho se ha comprobado en Estados Unidos, Canadá e Inglaterra (Alauddin & Valadkhani, 2003) y se ha encontrado en países como Colombia.
... El hallazgo anterior implica que los estudiantes tienden a rechazar los modelos de crecimiento dirigido por la demanda -como el de Casetti (2003); modelos en los que pueden aparecer decisiones y expectativas "irracionales" -como es el de Harrod (1939); o modelos con competencia imperfecta y desempleo estructural -como es el caso de Kaldor (1961). ...
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El pensamiento crítico, entendido como la capacidad de dudar de toda postura radical e impuesta, junto con el deseo de buscar y construir puentes entre explicaciones diversas a través del razonamiento, es quizá una de las herramientas más importantes en la formación de profesionales competentes que puedan contextualizar el conocimiento y ser motores de innovación y cambio en sus empresas y en general para la sociedad.
... В макроэкономике под сбалансированным ростом отдельными авторами понимается положительная динамика всех экономических секторов и регионов страны на основе одинакового темпа. В этом случае темпы роста производства, капиталоемкость (отношение капитала к объему выпускаемой продукции), ставка рефинансирования и доля заработной платы в доходах остаются в целом постоянными в течение долгого времени [83]. Вероятность такого сценария в реальной экономике в течение длительного периода времени маловероятна. ...
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В книге в научно-популярной форме объясняется важность институтов как правил, регулирующих экономику. Изложены теоретико-методологические основы применения институтов, обеспечивающих согласование экономических интересов, обоснован вред импорта чужих институтов и опасность институциональных ловушек. Даны практические рекомендации по реализации институциональной политики в Республике Беларусь и Российской Федерации. Работа предназначена для руководителей различного уровня, предпринимателей. Она будет полезна для ученых, аспирантов, магистрантов, студентов-дипломников и для всех, кто интересуется современными подходами к управлению экономикой.
... In the long-run, green bonds benefit the economy and generate positive social returns even if these assets currently may only have lower yields . Green bonds can thus be justified not only from the point of view of climate protection and climate disasters avoidance but also by endogenous growth theory (Aghion & Howitt, 1992Arrow, 1962;Braga et al., 2021;Kaldor, 1961;Lucas, 1988;Romer, 1986Romer, , 1990Uzawa, 1965;Vitek, 2017). ...
... In the long-run, green bonds benefit the economy and generate positive social returns even if these assets currently may only have lower yields . Green bonds can thus be justified not only from the point of view of climate protection and climate disasters avoidance but also by endogenous growth theory (Aghion & Howitt, 1992, 1998Arrow, 1962;Braga et al., 2021;Kaldor, 1961;Lucas, 1988;Romer, 1986Romer, , 1990Uzawa, 1965;Vitek, 2017). ...
... The distribution of human capital and economic growth as well as inequality in the physical to human capital accumulation were outlined by Galor and Tsiddon (1997) and Galor and Moav (2004). Kaldor (1961) emphasized that there are wide differences in the rate of growth of productivity across countries. Lucas and Moll (2014) augment growth theories with knowledge growth and productivity-increasing ideas through social interaction as well as time allocation preferences for work. ...
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The outbreak of the COVID-19 pandemic has exacerbated the rise of AI, robots, and algorithms in the economy, which is expected to completely disrupt employment patterns. With the advancement of technologies, employment patterns will shift to a polarization between AI's rationality and humanness. Robots and social machines have already replaced people in a variety of jobs. Almost all traditional professions are prospected to be infused with or influenced by AI, algorithms, and robotics in the future. AI and robots offer the luxuries of affordability and democratization of access to services, as they will be—in the long run—commercially more affordable and readily available to serve all humanity. Also, the longevity potential of machines outperforms any human ever having lived. These new technologies also come with the price of overpopulation problems and the potential for misuse and violent action. Just like many other technologies, robots could be misused. This chapter discusses the current trend of digital disruption and its wider societal implications.
... These new trends in inequality led to the emergence of some new facts about the pattern of economic growth and income distribution that are fundamentally different from Kuznets' inverted U-curve hypothesis. One of the new stylized facts that contradict the mainstream views and observed by Joseph Stiglitz is that inequality in both wages and non-wages besides overall income inequality has increased in many countries since the 1980s, and that, unlike the historical constancy of capital/output ratio confirmed by Nicholas Kaldor, more than half a century ago, as a central stereotyped fact of modern economic growth characteristics (Kaldor 1955(Kaldor , 1961, there is a marked increase in this ratio in many countries at least during the past three decades (Stiglitz 2016). Increasing the capital/ output ratio means a further deterioration in the structure of income distribution at the expense of wage incomes, thus exacerbating income inequality. ...
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This note presents a historical overview of the important contribution made by Kaldor named "Cambridge Equation" and the debate around the theme. Our main objective here is to summarize this kind of literature from the start to our days. Here, we present the development of such theory by initiating in his seminar article "Alternative Theories of Distribution", passing to Pasinetti's contribution by differentiating class, after that the introduction of government activities, extensions with an Open Economy until our days, where the globalization and financial system is considered. We also present the original Solow-Samuelson-Meade and other critiques. Finally, we show the importance of the theory to the present intending to understand social-economic behaviours.
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I study the effect of labor market imperfections on the labor share in a tractable model that emphasizes the interaction between productivity dispersion and firm competition for workers. I calibrate the model using administrative data covering the universe of firms in Canada from 2000 to 2015. As in the data, most firms have a high labor share, yet the aggregate labor share is low due to the disproportionate effect of a small fraction of large, highly productive firms. I find that a rise in the dispersion of firm productivity causes the aggregate labor share to decline in favor of firm profits. The mechanism is that productivity dispersion effectively shields high‐productivity firms from wage competition. Regression evidence from cross‐country and cross‐industry data supports both the model prediction and mechanism.
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The Cambridge Capital Controversy was one of the most significant debates in Twentieth Century economics. First published in 1972, this book provides an accessible reconstruction of the controversy with detailed discussion of the major points raised by its primary protagonists: Piero Sraffa and Joan Robinson on the post-Keynesian side (Cambridge, UK) and Robert Solow and Paul Samuelson on the neo-classical side (Cambridge, MA). The book is now considered to be a classic. This fiftieth anniversary edition comes with a new preface by the author and two new afterwords that reflect on the author's contribution to the field and the significance of the book in the history of economics. Topics covered include the measurement of capital, the revival of interest in Irving Fisher's rate of return on investment, the double-switching debate, Sraffa's prelude to a critique of neoclassical theory, and the 'new' theories of the rate of profits in capitalist society.
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This study examines multiple shocks to the external market of China’s manufacturing industry based on a trade model with multi-level unobserved factors. We find that the global external market of main industries is suffering constant downward shocks since 2008, while the traditional (non-traditional) markets are further affected by downward (upward) shocks. Private enterprises are more sensitive to shocks. Further, the adjustment of US trade policy toward China has caused China’s exports to the US to deviate from the normal path by around 10% from 2015 to 2019, while having no significant effect on China’s exports to the other traditional markets.
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In this chapter, we look at the purpose of life from economics. The theme is that economics as it is practiced is not holistic. A representative definition is that it is practiced following the means to ends maxim. In doing so, it sets a goal that is materialistic, dealing mainly with the wealth of nations and the profits of agents. We examine this system as is defined in a space characterized and driven by genetic forces. A look at the core of value of economics as means to ends theorem reveals that its proponents do not generalize the concept in relation to all economic forms of society. It stands as an incomplete theorem that needs to be generalized for a more holistic domain. A model by Hayek seems to have such purpose in mind but has not been sufficiently worked out. The current state of economics is then demonstrated by two propositions by Heilbroner to be in a state of decline and decay.KeywordsHolisticMeans to endsIncomplete theoremMind–body problemBusiness decline and decay
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Ekonominin teknoloji ile gelişim süreci, üretimde kullanılan makinelerin icadıyla başlamış, emeğin yerini alabilecek kadar insansı özelliklere sahip olan sistemlerin geliştirilmesi ile devam etmiştir. Son yıllarda Yapay Zekâ teknolojileri ile donatılan makinelerin insanların yerine getirdiği birçok işte ön plana çıkması, dikkatleri bu teknolojinin etkileri üzerine çekmiştir. Yapay Zekâ alanındaki güncel gelişmeler, büyük olasılıkla derin ekonomik etkilere sahip olabilecektir. Değişimi kaçınılmaz olan bu yeni teknolojilerin sosyoekonomik etkileri neler olabilir? Yapay Zekâ destekli üretim yapan firmalar ve piyasalar bu gelişimden nasıl etkilenebilecektir? Tüketicilerin bu gelişmelerden nasıl bir çıkarı veya zararı olacaktır? Bu çalışmada, Yapay Zekâ teknolojisinin piyasalar ve toplum üzerindeki ekonomik etkilerine ilişkin kapsamlı bir araştırma yapılmıştır. Yapay Zekâ teknolojisini, akademi literatürüne girdiği dönemden güncel döneme kadar geçen süre içinde konu alan çalışmalar incelenmiştir. Yapay Zekâ teknolojisinin, ekonomik ve sosyal etkileri üzerine yayımlanan makaleler ve raporların katkı ve sonuçları yorumlanıp, ileriye yönelik büyüme, istihdam, gelir dağılımı üzerindeki muhtemel etkilerine yönelik nitel gözlemler sunulmuştur. Ekonomik büyümenin bütün ülkelerde artabileceği fakat ülkelerin gelişmişlik seviyelerine göre bu etkinin farklılık arz edeceği sonucuna varılmıştır. Ayrıca istihdamın, nitelikli işgücü ihtiyacı çok olan bilgi ve iletişim teknolojileri sektörleri gibi alanlarda artışı sağlansa bile genel anlamda azalacağı ve bununla birlikte işsizliğin özellikle az gelişmiş ülkelerde kısa dönemde bir sorun olacağına değinilmiştir. Bu amaçla, kalkınma esaslı büyümenin sağlanması adına ekonomik politikaların önerilmesi hedeflenmektedir. Yapay Zekâ teknolojisinin sebep olacağı olumlu ve olumsuz sonuçların derlenerek, gerekli önlemlerin alınmasına öncü olabilecek bir çalışma olması amaçlanmaktadır. Anahtar Kelimeler: Yapay Zekâ, Kalkınma, Büyüme, İstihdam, İşsizlik
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The development process of the economy with technology started with the invention of machines used in production and has continued with the development of systems with human-like characteristics that could replace labor. In recent years, machines equipped with Artificial Intelligence technologies have come to the fore in many jobs performed by humans, which has drawn attention to the effects of this technology. Current developments in Artificial Intelligence are likely to have profound economic impacts. What could be the socio-economic effects of these new technologies, whose change is inevitable? How will companies and markets that produce artificial intelligence support be affected by this development? What benefit or harm will consumers have from these developments? In this study, a comprehensive research was conducted on the economic effects of Artificial Intelligence technology on markets and society. Studies on Artificial Intelligence technology from the time it entered the academic literature to the current period have been examined. The contributions and results of the articles and reports published on the economic and social effects of Artificial Intelligence technology are interpreted, and qualitative observations on the possible effects on future growth, employment and income distribution are presented. It has been concluded that economic growth can increase in all countries, but this effect will differ according to the development levels of the countries. In addition, it has been mentioned that even if employment is increased in areas such as the information and communication technologies sectors, where there is a high need for qualified workforce, it will decrease in general and unemployment will be a problem in the short term, especially in underdeveloped countries. For this purpose, it is aimed to propose economic policies in order to ensure development-based growth. It is aimed to be a study that can be a pioneer in taking the necessary precautions by compiling the positive and negative results that will be caused by Artificial Intelligence technology. Keywords: Artificial Intelligence, Development, Growth, Employment, Unemployment
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In recent decades, the labour share has experienced a downward trend in Portugal that has occurred at the same time as a weaker and anaemic growth pattern. This seems to suggest that the fall in the labour share represents an important constraint on Portuguese economic growth, which does not support the orthodox claims around wage restraint policies as a necessary condition to improve macroeconomic performance due to their positive effects on private investment through higher profits and on net exports through lesser unit labour costs and a corresponding rise in competitiveness. This study assesses the relationship between labour share and economic growth by performing a time series econometric analysis focused on Portugal from 1970 to 2020. Findings show that labour share positively impacts economic growth in Portugal, which is in line with heterodox claims and particularly with post-Keynesian economics on the beneficial effects on private consumption played by the growth of wages. Findings also confirm that the Portuguese economy follows a wage-led growth regime instead of a profit-led growth regime; that is, a rise in wages boosts economic growth because its beneficial effect on private consumption more than compensates for a prejudicial effect on private investment and on net exports. The study points out the urgent need to adopt public policies to support the growth of wages to avoid more decades of dismal growth and a new 'secular stagnation' in Portugal.
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The humankind pursues local control maximization by performing premeditated actions, the sum of which sets the course of development of the human civilization. The macroeconomic way of looking at it assumes an aggregate production function, describing how inputs are transformed into aggregate output. This chapter introduces the hardware–software framework, which assumes that producing output requires (i) physical action and (ii) code, a set of instructions describing the action. Physical action is performed by hardware while the code is provided by the software. Hardware and software are mutually complementary and each of them is essential for production. The chapter proceeds to characterize hardware and software inputs used across human history and offers a typology of final outputs. It elucidates how the accumulation of hardware and software inputs and their cumulative technological improvements propelled accelerating economic growth over the millennia, and how artificial intelligence may carry this process into the future.
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The purpose of this paper was to examine the stylised facts of volatility and volatility modelling of volatility index returns in the context of emerging markets. The stylised facts of volatility include volatility clustering, mean reversion, a negative relationship with stock market returns and positive relationship with trading volume. By using autoregressive models, linear regression and unit root tests, empirical results indicate that the volatility indices reproduce all the stylised facts of volatility for the following emerging economies: Brazil, India, China, Korea and South Africa. In addition, the volatility modelling of volatility index returns is also considered. In the empirical analysis, the symmetric GARCH, asymmetric GJR-GARCH and EGARCH models were estimated using the volatility indices of emerging economies; the best fitting model was determined using the AIC and SIC. The asymmetric terms of the GJR-GARCH and EGARCH models are statistically significant. The information criterion suggests that the EGARCH model is the best fitting model for all the volatility indices, except Korea. For Korea, the GJR-GARCH model is the best fitting model.KeywordsVolatility indicesStylised factsGARCHEmerging markets
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Extreme events—statistically improbable events with profound consequences—happen more often than expected in stock markets and lead to an urgent need to investigate market behavior, in particular in the context of stock market crashes. We propose a methodology that takes into account both intraday (or within-day) patterns and interday (or day-to-day) dynamics of the stock market, with an exclusive focus on the data around the 2015 stock market crisis in China. In the first stage, a quantitative analysis of our methodology accounts well for the differences in intraday and interday dynamics between the pre-Crisis and post-Crisis periods; in the second stage, with the interday features as input to machine learning methods, we predict directional movements of the daily closing price in the Shanghai stock exchange index and develop trading strategies. Empirical results evince the predictability of the market and the informativity of the interday features when they are included in the machine learning methods. Decision-tree-based ensemble methods produce relatively better classification and trading performance than the other methods. The gradient-boosting decision tree deals best with the information derived from the input features, in which the average price is the most important feature.
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This paper documents prominent biological metaphors in ecological economics and argues that the discipline is founded on an untested assumption, essentially an analogy: The economy-as-an-organism. A transdisciplinary approach is taken to test the scientific usefulness of this analogy, and eight propositions are put forth and examined. Results show that: 1) This analogy bears all the characteristics of scientifically useful analogies, as documented in the relevant literature. 2) World Bank data from 165 countries from 1960 to 2013 show that empirically verifiable laws that apply to all organisms apply analogously to all economies – supporting the ecological economics view that economies and organisms are metabolically analogous. 3) Empirical results affirm those of a mature GDP-energy literature, despite employing very different assumptions and perspectives – thus validating the analogy's scientific potential. 4) The analogy offers a new perspective on economies, correctly predicts their “characteristics,” and generates new testable hypotheses, hallmarks of scientific analogies. 5) New perspectives and predictions relate to sustainability and are particularly relevant to researchers interested in this field – thus satisfying the “goal relevance” characteristic of scientific analogies. All results of this exploratory and conceptual paper suggest that our analogy is scientifically useful and worthy of additional research.
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