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... The standard one-sector neo-classical growth model with a constant propensity to save, introduced by Solow (1956) and Swan (1956), precludes business cycles and complex dynamics. In a non-stochastic framework, such phenomena only arise when allowing for non-linear savings functions, erroneous beliefs, non-convexities, or production externalities. ...
... Over half a century ago, Solow (1956) and Swan (1956) developed a one-sector growth model in which the propensity to save out of total income is assumed to be constant. This model is known as the neo-classical growth model and is found in almost any macroeconomic textbook. ...
... This section develops a two-sector extension of the neo-classical growth model with discrete time. In contrast to the one-sector model by Solow (1956) and Swan (1956), there is no single all-purpose good available. Two distinct sectors employ capital and labour to produce consumption goods for consumption needs and investment goods for investment purposes. ...
... Under the neo-classical Solow-Swan model developed simultaneously by Solow (1956) and Swan (1956); using labor, capital, and population growth to ensure technological progress, a nation's economy will in the long-run converge to its 'steady-state' equilibrium rate of growth. The combination of these resources creates "productivity growth" which follows path of the Cobb Douglas production function until the economy attains the long run steady state. ...
... To the best of our knowledge, no single theory exists to comprehensively analyze the nature of the relationships in a direct manner. Accordingly, the study integrates the theoretical frameworks of Neo-classical Solow-Swan Model (Solow, 1956;Swan, 1956), Becker's Human Capital Theory (Becker, 1964) and Prebisch-Singer Dependency Thesis (Prebisch, 1950) to estimate and explain parameters of the relationship that exists between the variables in a dynamic interactive manner. Under this framework, as seen in Figure 1, FDI is seen to be major channel through which capital, technology and manpower move from one nation to another, and in the process, influence the growth and wellbeing of the people. ...
This study examined dynamic relations among foreign direct investment (FDI), economic growth and poverty headcount ratio using a sample of 24 African Countries. To achieve this goal, historical data of the variables regarding cross section of countries were collected over 14-year period. The stratified random sampling technique was employed in selecting the sample. Following pre-regression diagnostics, we specified Vector-Auto-Regression model for computation of coefficients of the variables in dynamic relations. These were complimented with computation of relative impulse response function and forecast-error-variance decomposition of regression estimates. We found that FDI did not granger-cause economic growth among African economies, just as growth was found not sustainable and inclusive enough as to achieve substantial poverty reduction. More-so, evidence appeared to support earlier isolated findings that FDI has been largely exploitative and attracted to economies with high growth rates and low poverty ratios. The study reinforces earlier isolated findings that it is not necessarily 'growth' that results in decline in poverty prevalence but 'sustained economic growth'. Hence most developing nations that depend on annual fiscal plans for poverty reduction may consistently miss development targets. Again, contrary to widely held view that foreign direct development leads to economic growth, the study established exceptional case for Africa.
... The theoretical literature on industrial growth and development draws heavily from the neoclassical growth theory (Solow, 1956;Swan, 1956) and endogenous growth theory (Romer, 1990a;Grossman and Helpman, 1990), which attribute growth to savings, physical capital and human capital. These factors form the basis of industrial development theories (Kiely, 1994). ...
... The model in this study is built upon the standard neoclassical growth theory (Solow, 1956;Swan, 1956) and endogenous growth theory (Romer, 1990a;Grossman and Helpman, 1990). The neoclassical theory posits that growth in industrial sector and other productive sectors depend on savings and physical capital stock, while the endogenous theory posits that growth depends on human capital accumulation. ...
The purpose of this paper is to examine the role of global value chains (GVC) in industrial development of emerging economies, with particular focus on participating African countries. Findings of the study are expected to provide insight on the need for more developing countries to participate in GVC. The study is built upon the neoclassical and endogenous growth theories, which postulate that savings, physical capital and human capital are the fundamental drivers of development in productive sectors of the economy. The investigation, covering the period 1980–2021, is carried out by using the unrestricted error correction model and dynamic ordinary least squares model. Results of the study reveal that GVC stands as the dominant factor driving industrial development, compared to savings, physical capital and human capital. The findings, therefore, seem to contradict the postulation of conventional theories. The policy implications of the findings are not far-fetched. First, industrial development in the participating African countries has benefited largely from GVC; hence, it is necessary to encourage more participation. Second, industrial development also benefited from the control variables (savings, physical capital and human capital), hence the need to sustain their complementary role. Thirdly, only three African countries are actively participating in GVC, which suggests that more countries need to join, to facilitate industrial development.
Previous studies have not given adequate attention to African countries that participate in GVC, thus creating a void that needs to be filled. This study, therefore, produced results that are relevant to policy-making on industrial development in African countries.
... The Solow-Swan model is the most well-known growth model that takes into account the role of knowledge. Originally introduced in two works by Robert Solow [52] and Trevor Swan [53], it was later described in numerous books such as Ref. [47] as well as generalized in [54,55]. ...
... where σ > 0 and σ ̸ = 1. Substituting the formula for the time variation of labor: L(t) = L(0)e nt into Equation (53), the problem of maximizing utility by a household reduces to finding the maximum of the following integral: ...
This paper offers a historical review of the evolution of mathematical methods in economics, tracing their development from the earliest attempts in the 18th century to the sophisticated models of the late 20th century. The study begins by examining the initial integration of mathematical techniques into economic thought, highlighting key milestones that shaped the field. Symmetry concepts are naturally embedded in many of these mathematical frameworks, particularly in the balance and equilibrium found in economic models. Symmetry in economics often reflects proportional relationships and equilibrium conditions that are central to both micro-and macroeconomic analyses. Then, the paper elaborates on the progression of economic growth models, including the foundational Solow-Swan model, which introduced the concept of technological progress (knowledge) as a key factor influencing growth. The review also encompasses the Lucas growth model and the Mankiw-Romer-Weil model, both of which incorporate human capital into the growth equation, highlighting its importance in driving economic development. Finally, the paper addresses the Nonneman-Vanhoudt model, which extends the analysis of growth by integrating multiple types of capital, providing a more comprehensive framework for understanding economic dynamics. By documenting these developments, the paper demonstrates the significant role that mathematical modeling has played in advancing economic theory, providing tools to quantitatively analyze complex economic phenomena and driving the discipline towards greater analytical precision and rigor. This analysis emphasizes how symmetry principles, such as balance between inputs and outputs, equilibrium in supply and demand, and proportionality in growth models, underpin many economic theories.
... is the production function and s is a constant fraction of the income saved per worker, and Cx is the investment required to maintain capital per worker, then the differential equation (2) is the well known Solow-Swan model of economic growth (Solow 1956;Swan 1956). With this model, Solow and Swan showed that, under suitable assumptions on F (x), the capital per worker function x(t) reaches an equilibrium after sufficient time. ...
Stability of dynamical systems is a central topic with applications in widespread areas such as economy, biology, physics and mechanical engineering. The dynamics of nonlinear systems may completely change due to perturbations forcing the solution to jump from a safe state into another, possibly dangerous, attractor. Such phenomena can not be traced by the widespread local stability and resilience measures, based on linearizations, accounting only for arbitrary small perturbations. Using numerical estimates of the size and shape of the basin of attraction, as well as the systems returntime to the attractor after given a perturbation, we construct simple nonlocal stability and resilience measures that record a systems ability to tackle both large and small perturbations. We demonstrate our approach on the Solow-Swan model of economic growth, an electro-mechanical system as well as on a stage-structured population model, and conclude that the suggested measures detect dynamic behaviour, crucial for a systems stability and resilience, which can be completely missed by local measures. The presented measures are also easy to implement on a standard laptop computer. We believe that our approach will constitute an important step towards filling a current gap in the literature by putting forward and explaining simple ideas and methods, and by delivering explicit constructions of several promising nonlocal stability and resilience measures.
... Conversely, physical capital, labor, human capital, and technology are strongly and positively associated with economic growth in ASEAN countries. Physical capital, labor, human capital, and technology are recognized as fundamental factors of economic growth by growth theories, from neoclassical exogenous models (Solow, 1956;Swan, 1956) to endogenous frameworks (Arrow, 1962;Uzawa, 1965;Lucas, 1988;Romer, 1986Romer, , 1990Grossman & Helpman, 1991;Aghion & Howitt, 1992;Farmer & Schelnast, 2021). Later, modern institutionalism considers these determinants as proximate factors, emphasizing institutions as the ultimate source of economic growth (North, 1990;Acemoglu et al., 2012). ...
... Para contar con un nivel de inversión privada elevado, es esencial que exista confianza en los mecanismos institucionales y legales del país, que el ambiente regulatorio sea estable y minimice la tramitación burocrática relativa a la constitución de empresas y proyectos de inversión -en particular de microempresas y pequeñas y medianas empresas (mipymes)-, que haya una disponibilidad adecuada de capital financiero y talento humano, y que el sistema público atraiga inversiones y colabore con los inversionistas en el establecimiento de las empresas, siempre procurando garantizar los estándares laborales y ambientales más altos. En la región, el margen para avanzar en todos estos temas es amplio, y el sector público 3 Véanse Solow (1956) y Swan (1956). 4 Véase Studwell (2014). ...
América Latina y el Caribe presenta un problema estructural de bajo crecimiento, que
se explica en buena medida por una productividad que no ha aumentado, e incluso
ha disminuido, en las últimas décadas. Si bien para incrementar la productividad
será necesario seguir trabajando en una agenda de mediano y largo plazo orientada
a mejorar los “fundamentales”, en este artículo se propone una nueva estrategia
complementaria de crecimiento, transformación productiva y empleo para la región
basada en profundizar y mejorar la implementación de sus políticas de desarrollo
productivo. Para ello, se plantean seis lineamientos que incluyen, entre otras cosas,
elementos de gobernanza, y se hace especial hincapié en el “cómo”; es decir, de
qué manera aplicar con éxito este tipo de políticas.
... The Solow-Swan Growth Theory (Solow, 1956;Swan, 1956), Endogenous Growth Theory (Romer, 1986;Lucas, 1988), and Structural Change Theory (Lewis, 1954;Chenery, 1960) provide additional theoretical perspectives for analyzing the long-term drivers of economic growth and their impact on employment trends in Indonesia. Moreover, Okun's Law (Okun, 1962) establishes a direct link between unemployment and economic growth, suggesting that a one percentage point increase in the unemployment rate is associated with a two percentage point decline in real GDP growth. ...
Indonesia's labor market has experienced significant shifts and challenges between 2011 and 2023, with the country navigating through global economic crises, technological advancements, and the unprecedented COVID-19 pandemic. This study aims to conduct a comprehensive analysis of the employment and unemployment dynamics in Indonesia during this period, utilizing data from BPS statistical records. The research employs descriptive statistical analysis, time trend analysis, correlation analysis, and comparative analysis to examine the main trends in the workforce, identify key factors influencing labor dynamics, and assess the impact of various economic and social factors on the unemployment rate and working population. The findings reveal that Indonesia's employment rate has shown an overall upward trend, despite fluctuations, while the unemployment rate has generally declined, with the exception of the sharp increase during the COVID-19 pandemic. The study highlights the importance of economic growth, institutional policies, structural transformation, and educational attainment in shaping Indonesia's labor market. The results contribute to a deeper understanding of the complex employment dynamics in Indonesia and provide valuable insights for policymakers in developing agile and responsive strategies to foster inclusive growth, create better jobs, and enhance labor market resilience. The study concludes that comprehensive and adaptable policies are crucial in addressing the evolving challenges and opportunities in Indonesia's labor market, ensuring a sustainable and inclusive
... Theoretical Review This paper theorized on the Solow-Swan growth theory and the financial intermediation theory. The Solow-Swan Growth developed by Solow (Solow (1956) and Swan (1956). The theory believed that population growth rate, technological innovations, investment through capital accumulation are drivers for economic growth and the volume of international trade. ...
The paper explored the interdependence between trade openness, financial deepening and economic performance in Nigeria within the period of 1981 and 2018 using data from World Bank Report. GDP denotes economic performance. While trade openness by net inflow % of GDP and total trade as % of GDP, whereas; financial deepening as M2/GDP and CPS/GDP all representing independent variables. The paper conducted the stationarity and the long-run test using ADF and PP and the Johannsen Cointegration Test. The result shown that all the variables are integrated at I(I) with evidence of no long-run relationship. The paper further conducts the VAR and the granger test to check for their interdependence and direction of causality. The paper uncovers that trade openness (net inflow % of GDP and total trade as % of GDP) impact economic performance. While financial deepening (as CPS/GDP and M2/GDP) exerts no impact on economic performance in Nigeria. The result further shown that there is unidirectional causality from net inflow % of GDP and total trade as % of GDP to gross domestic product in the trade openness model. And also, unidirectional causality from M2/GDP to GDP in the financial deepening model. While, the interdependence modelling reveals a unidirectional causality running from net inflow % of GDP and M2/GDP to GDP. And from CPS/GDP to total trade as % of GDP and net inflow % of GDP to M2/GDP. And finally bidirectional causality between to total trade as % of GDP and GDP in Nigeria under the period of investigation. Hence, the paper recommends that more attention should be placed on trade openness due to the growing importance of international trade rising from the interconnection of markets.
... Theoretical Review This paper theorized on the Solow-Swan growth theory and the financial intermediation theory. The Solow-Swan Growth developed by Solow (Solow (1956) and Swan (1956). The theory believed that population growth rate, technological innovations, investment through capital accumulation are drivers for economic growth and the volume of international trade. ...
... Until the late 1950s, the views of Harrod (1939) and Domar (1946) were used to explain growth. Then, the neoclassical growth theory developed by Solow (1956) and Swan (1956) led to the explanation of economic growth. Since the mid-1980s, the proposals of the theory of endogenous growth pioneered by Romer (1986) and Lucas (1988) have been accepted in the explanation of growth. ...
This study aims to analyze the determinants of regional economic growth in Turkey for the period 2005–2014. In addition to traditional panel econometrics methods, spatial panel econometric methods are used for this analysis. It is empirically proven that human capital, exports, and agriculture positively contribute to regional economic growth. The empirical results assert that there is no statistically significant relationship between public investment and population density and growth. Through spatial econometrics, it is investigated whether the growth of a region has an impact on the growth of neighboring regions. It is observed that there is a positive and high spatial dependency between the regions. In other words, the growth of neighboring regions also affects the economic growth of a region. Finally, the empirical findings suggest that an explanatory variable (a determinant of growth) that belongs to a region affects not only the growth in that region (direct effect) but also the growth of neighboring regions (indirect effect).
... Kişi başına ekonomik büyüme ile çıktı düzeyi/kişi başı gelir arasındaki negatif ilişkiyi ifade eden yakınsama hipotezi, Neo-klasik Solow-Swan Modelinin dinamikleri üzerinden açıklanabilmektedir (Solow, 1956;Swan, 1965). Söz konusu Solow-Swan Modelinde kişi başı sermaye stokundaki büyüme hızı aşağıda 1 numaralı denklemde ifade edilmektedir. ...
Çalışmada, 2004:1-2022:1 döneminde Türkiye’de İstatistiki Bölge Birimleri Sınıflaması (İBBS) bazında 26 Düzey-2 bölgenin enflasyon oranları için yakınsama hipotezinin varlığının Nahar-Inder(2002) yakınsama testi yaklaşımı ile sınanması amaçlanmaktadır. Bu yaklaşım, incelenen serilerin durağan olmaması durumunda bile yakınsamanın varlığını tespit edebilen ve incelenen grup içerisinde farklı davranış biçimleri gösteren birimlerin belirlenmesine imkân sağlayan polinom tipi bir yakınsama tekniği olarak tanımlanmaktadır. İlgili literatürde söz konusu tekniğin ilk defa kullanıldığı çalışmada elde edilen bulgular, inceleme döneminde Türkiye’de bölgeler arasında güçlü bir enflasyon yakınsaması bulunduğunu ve uygulanan para politikasının etkin bir şekilde kullanılabileceğini göstermektedir.
... Technological development, which is based on scientific inventions and innovations, determines the long-term steady-state growth rate. Solow (1956) and Swan (1956) give two basic predictions in their work. First, the country with relatively more savings will be more prosperous than the country with fewer savings. ...
Agriculture is of vital importance for each country around the world. Changes in technology affect the methods and tools of agricultural activities. In line with Industry 4.0, agricultural sectors have been experiencing technological developments. Especially, the Internet of Things has enormous influences on agricultural applications in terms of data collecting, analyses, increasing productivity and fertility, future predictions, etc. The main objective of this article is to discuss the importance and effects of smart farming applications. Its examples worldwide show that higher rates of profit and productivity can be achieved through relatively smaller areas. Also, given that certain examples of smart farming applications and trials of new methods such as drone crop spraying, smart soilless agriculture solutions have been implemented in Turkey. In addition, the increase in productivity in the agricultural sector due to smart agricultural practices contributes significantly to countries’ GDP. Consequently, it is argued that smart farming applications offer a significant rate of productivity and profit despite their challenges. This study aims to explain agricultural technology and its applications after addressing the technological developments in the agricultural sector.
... For instance, the majority of macroeconomic models use differential equations or sets of these equations to describe economic growth. Examples include models proposed by Solow (1956), Swan (1956), Haavelmo (1954), Ramsey (1928), and Goodwin (1967). However, since the majority of economic data is available in discrete time, it is often necessary to consider models expressed in discrete time (difference equations), especially when dealing with applications involving real-world data. ...
The Goodwin model is a widely used economic growth model able to explain endogenous fluctuations in employment rate and wage share; in its initial version, the standard Phillips curve is used. In the present work, we suggest a revised Phillips curve that takes into account how the wage share influences the rate of changes of the wage itself thus obtaining a continuous-time modified Goodwin model. Since applying models to real data often requires working in a discrete-time setup, we then move from the continuous-time to the discrete-time version of the proposed model, by using a general polynomial discretization method in backward and forward-looking (hybrid discretization). By comparing the continuous-time system to its discrete-time counterpart we prove that fixed points and local dynamics do not change, as long as the time step is not too high. Moreover, numerical simulations employing Dynamic Time Warping, cross-correlation, and semblance analysis consistently affirm that enhancing the similarity of quantitative dynamics is achieved by reducing the time step.
... Introducing technology and innovation in agriculture is considered a pathway to improve performance (Solow, 1956;Swan, 1956) and leads to economic development (Aghion et al., 1998;Rice and Yayboke, 2017). The bottleneck of economic development is the adoption of technology and innovation. ...
Purpose
Rice is a strategic commodity and staple food; thus, rice productivity should grow faster than the population. A public agricultural agency launched technology modernisation to improve rice farm performance. This study aims to assess the impact of technology modernisation on rice farming performance and evaluate farmer acceptance of such technology.
Design/methodology/approach
This study was conducted in 2023-2024, based on selected demonstration farms (demfarm) carried out during 2021-2022 in East Java, Indonesia, one of the rice bowls. Microeconomic theory of production and the double-differences approach were used as fundamental analyses. Farmers were purposively selected to participate in the demfarm. For comparison, farmers with existing technology adjacent to the demfarm were chosen accordingly. Rice production is considered an economic performance indicator, and factors related to socio-demographic and technical aspects were conceptualised using innovation and diffusion theory.
Findings
The results of demfarm were apparent. Technology modernisation improved rice farming’s economic performance. Farmer acceptance of such technology was relatively high at the first stage. There was no conflict between technology and local culture and norms. The technological package will likely be disseminated to farmers after adequate socialisation.
Research limitations/implications
This study engaged farmer innovators and early adopters in the demonstration farm. This needs more actions from farmers who are not categorised as innovators and early adopters, which dominate the farmer population.
Practical implications
Extension officials need field guidance to ensure continual technology adoption because of technology complexity.
Originality/value
The originality of the study is based on a field experiment and direct observation throughout a crop cycle, and the analysis is established using a solid theory and analytical framework.
... If so far, we have focussed on soft elements essentially related to knowledge and innovation production, we must also consider gross fixed capital formation (as a percentage of GDP), which may influence a prompt responsiveness to the crisis. Investments increase productivity and efficiency by producing more goods and services at a lower cost, which favours economic growth and higher living standards (Solow 1956;Swan 1956). Nevertheless, the evidence of persistent patterns of regional inequality within and between countries challenges this prediction from the neoclassical theory (Iammarino and Storper 2019). ...
This study introduces the novel concept of regional reactivity to shocks. A region is considered to be much more reactive if it bounced back to the level of labour productivity achieved before a shock in the same or less time than it took to reach the pre-2008 economic crisis peak from an equivalent lower bound. The analysis of the reactivity of the EU-NUTS2 regions reveals a clear spatial pattern. By using a spatial lag model selected via a Bayesian comparison approach, we show that tertiary education and institutional quality are key to promote reactivity. On the other hand, population density acts in the opposite direction. Our results are potentially useful for defining policy strategies that emphasise or refocus the strengths of each region in light of current territorial trends and emerging challenges.
... At the same time, the predominant literature reveals the existence of a positive relationship between FDI and economic growth (Helleiner, 1973;Globerman, 1979;Paus, 1989;Blomström et al., 1996;Sun, 1996;K.H. Zhang, 1999;Obwona, 2001;Q. Zhang & Felmingham, 2001;Hansen & Rand, 2006;Al-Iriani, 2007;Makun, 2018;Duman, 2022;Kaya et al., 2022;Songur, 2023;Esener & İpek, 2018;Kasim et al., 2021;Sungur & Altiner, 2023;Çelı̇k & Bayrak, 2022;Öztürk & Saygin, 2020;Kurul, 2021;Naimoglu & Akal, 2021) while fewer studies have failed to detect this relationship (Dutt, 1997;Kentor, 1998;Huang et al., 2010;Magombeyi & Odhiambo, 2018 19731975 1977 1979 1981 1983 1985 1987 1989 1991 1993 19951997 1999 2001 2003 2005 2007 2009 important effect of FDI on economic growth is to support the investments necessary for growth by complementing capital shortages (Swan, 1956;Todaro & Smith, 2012). However, this effect is important not only through financial support but also due to the additional benefits foreign investors provide. ...
This research examines the correlation between economic growth and foreign direct investment (FDI) data of the Turkic Republics, namely Kazakhstan, Uzbekistan, Azerbaijan, Türkiye, and Kyrgyzstan, over the period from 1993 to 2022 through a meticulous panel data analysis. The results of the panel, Fourier Toda Yamamoto test, reveal a reciprocal causality between economic growth and FDI, especially in Azerbaijan. In the case of Uzbekistan, the study finds that FDI plays a catalytic role in inducing economic growth. The panel Fourier cointegration test carried out for all the countries studied confirms a cointegration relationship among the variables in all the countries studied.
... Con base en los primeros modelos de crecimiento en el ámbito de la economía regional, que se cimentaban sobre el modelo de crecimiento exógeno o el modelo de Solow-Swan (Solow, 1956;Swan, 1956), se han desarrollado dos ramas de la economía espacial a partir de la década de los 90 del siglo XX: la Nueva Geografía Económica (NEG) y la Nueva Economía Urbana Neoclásica (NNUE). Mientras que la NEG se ocupa del desarrollo espacial de los territorios en un mundo de competencia monopolística (Krugman, 1991;Fujita & Krugman, 2004;Krugman, 2011), la NNUE se centra en la dinámica espacial de los municipios y las regiones en un mundo de competencia perfecta (Storper, 2010(Storper, , 2011(Storper, , 2017. ...
En este trabajo se analiza la evolución de la producción agregada del sistema económico regional español durante el período 2000T1-2023T4, mediante la formulación de un modelo de crecimiento espaciotemporal para las comunidades autónomas españolas que tiene en cuenta la presencia simultánea de dinámica temporal, dependencia espacial transversal, factores comunes y heterogeneidad regional. Así, la especificación econométrica usada en la aplicación empírica incluye retardos temporales y espaciales, términos mixtos espaciotemporales y un factor común (el crecimiento nacional) con dinámica temporal, permitiendo además que algunos parámetros varíen regionalmente, de tal forma que el modelo propuesto integra los principales elementos que pueden presentarse en los complejos procesos de crecimiento económico regional a lo largo del tiempo.
... Con base en los primeros modelos de crecimiento en el ámbito de la economía regional, que se cimentaban sobre el modelo de crecimiento exógeno o el modelo de Solow-Swan (Solow, 1956;Swan, 1956), se han desarrollado dos ramas de la economía espacial a partir de la década de los 90 del siglo XX: la Nueva Geografía Económica (NEG) y la Nueva Economía Urbana Neoclásica (NNUE). Mientras que la NEG se ocupa del desarrollo espacial de los territorios en un mundo de competencia monopolística (Krugman, 1991;Fujita & Krugman, 2004;Krugman, 2011), la NNUE se centra en la dinámica espacial de los municipios y las regiones en un mundo de competencia perfecta (Storper, 2010(Storper, , 2011(Storper, , 2017. ...
This paper analyzes the evolution of the aggregate production in the Spanish regional economic system between 2000Q1 and 2023Q4 proposing a spatiotemporal growth model for the Autonomous Communities in Spain that simultaneously accounts for the presence of time-series dynamics, cross-sectional spatial dependence, common factors, and regional heterogeneity. The econometric specification used in the empirical application includes time-lagged variables, spatial and spatiotemporal lagged variables, a dynamic common factor (the national growth), and some parameters varying regionally, so we consider all the key stylized facts that complex regional economic growth processes exhibit over time.
... This was counter agued by Karl Marx (1889) that the driving force of increased productivity and growth was through capital accumulation. The debate continues with the Solow-Swan neoclassical growth model (Solow 1956;Swan 1956) that emphasises on technological change, labour and capital accumulation in stimulating growth. This was later modified to include human capital accumulation by Mankiw et al. (1992). ...
The importance of institutional quality as a means of influencing economic growth is being given much attention. This paper examines the extent to which institutional quality under the price deregulation policy in Ghana impacts GDP growth. The study employs the Bayesian linear regression and the auto regressive distributed lag (ARDL) models in estimating a quarterly data that spans from the first quarter of 2005 to the fourth quarter of 2022. We observe that an increase in petroleum prices increases GDP growth by 0.3 units in the long run while an increase in inflation reduces GDP growth by 0.6 units in the short run. Again, we observe that in the short run an increase in foreign direct investment increases GDP growth by 3.24 units. The interactions of petroleum prices and institutional quality on the other hand reduces GDP growth in the short run by 0.91 but tend to increase GDP growth by 1.45 which is comparatively more than the decrease in the short run suggesting that institutional quality under the price deregulation policy impacts positively on GDP growth in the long run. This paper has policy implications in that it offers policy makers, especially governments, the necessity to appreciate the importance of institutional quality in the quest for implementing policies for desired growth.
... This assistance might be allocated to investments in agricultural infrastructure, technology, and human capital, vital for enhancing productivity in nations such as Somalia. Conversely, the Solow-Swan Growth Model proposed by Solow [20] and Swan [21], posits that aid supporting investments can lead to economic growth. Strategically distributed foreign assistance for agricultural infrastructure, including irrigation systems, storage facilities, and seed technology, can directly enhance farm productivity. ...
Somalia is one of the countries where political instability and poor infrastructure have led to a
decline in agricultural production, prompting foreign aid donors to encourage overall
development and agricultural production. Our study focuses on the effect of foreign aid on
crop production in Somalia, employing the ARDL model to analyze time-series data from
1985 to 2022. The study found that the development of food aid negatively affects crop
production due to its timing and dependency but shows an insignificant effect in the short run.
Humanitarian aid shows no significant effect in either the long or the short run. Climate change
variables showed an immediate and long-run effect on crop production, with rainfall indicating
a positive effect and temperature negatively affecting crop production. This study recommends
better timing management of aid, improved water management, and effective utilization of
rainfall.
... If the growth of the money supply is higher than the rate of economic growth, inflation will be present in the economy. In the earliest neoclassical growth models, Swan (1956) and Solow (1956) point out that the main factor determining long-term economic growth is technological change and that its level is determined exogenously, independent of other factors, including inflation (Chriwa & Odhiambo, 2018). Following Saul's model, Tobin (1965) examines the relationship between inflation and economic growth and shows that inflation affects individuals' decisions to replace money with interest-bearing assets, which increases capital intensity and thus economic growth. ...
As a consequence of global instability, the economy of almost all countries of the world has significantly deteriorated. The outbreak of war between Russia and Ukraine has led to an even bigger energy crisis and high import inflation. The policies of most countries are proving to be inadequate and ineffective. From that aspect, the purpose of this research is to analyze the situation with inflation movements and economic growth in the Republic of North Macedonia and the Republic of Bulgaria in 2022 (Q2). From the research, it has been determined that in the analyzed period, in both analyzed countries, economic activity has decreased, economic growth has slowed down, on the contrary, inflation has accelerated further, and external debt has increased. Constant analyzes of macroeconomic trends contribute to vigilant monitoring of the current situation, hence the adoption of appropriate domestic policies and proper management of enterprises from the energy sector.
... La perspectiva neoclásica tiene como principales referentes a los trabajos de Harrod (1939), Solow (1956) y Swan (1956). Fundamentándose por tanto en el modelo Solow-Swan que supone rendimientos decrecientes y un mercado de competencia perfecta, donde el nivel de producción de una economía está en función de los factores productivos capital, fuerza de trabajo y el nivel de tecnología. ...
Resumen Ante una problemática creciente por los problemas ambientales en el estado de Michoacán y el uso irracional del agua, considerando el valor económico de las externalidades en la incertidumbre y el impacto en el desarrollo de la región centro de la cuenca del río Tacámbaro, este trabajo tiene por objetivo estimar mediante la opinión de expertos la Disposición a Pagar de los usuarios de la región centro del río Tacámbaro para la realización de acciones que permitan incrementar el caudal del río y evitar su contaminación. A través de las cuatro funciones de agregación y sus respectivas ponderaciones, se concluye que la cuota de $1,500 pesos por hectárea que se pagan de forma anual por el uso del agua es una cantidad que aceptan los usuarios. No obstante, también se ob-tienen resultados que particularizan la Disposición a Pagar según el género, el conocimiento de la problemática y el tipo de productor; datos fundamentales para la gestión y la elaboración de políticas públicas en beneficio de la cuenca. Palabras clave: lógica difusa, incertidumbre, disposición a pagar, desarrollo regional. AbstRAct Faced with a growing problem due to environmental problems in the state of Michoacán and the irrational use of water, "Economic value of externalities in uncertainty and development in the central region of the Tacámbaro river
... L'hypothèse de convergence est fondée sur les modèles de croissance néo-classiques (Solow, 1956;Swan 1956) et implique une tendance à l'égalisation à long terme du taux de croissance du revenu ou de la production par tête de différentes zones géographiques. Cette propriété correspond au concept de -convergence (Barro et Sala-i-Martin, 1995, Mankiw, 1995, Mankiw, 2003. ...
L'intégration économique est une réalité historique qui a un impact sur la croissance des Etats. Cet article analyse l'existence de l'autocorrélation spatiale dans la zone CEMAC et étudie son impact sur la croissance économique de cette zone. Un modèle de panel à effets spatiaux mettant en relation le taux de croissance par tête et les facteurs monétaires et réels est adopté. Les résultats obtenus indiquent qu'il existe une autocorrélation spatiale dans cette zone. La prise en compte de ces effets spatiaux fournit des vitesses de convergences égales à0,61% et 0,62% respectivement pour les spécifications autorégressive et à erreurs spatiales de notre modèle, contre 0,76% pour la spécification non spatiale. Ce qui donne une réduction de la vitesse de convergence de 0,15%. Il existe des effets de débordement très faibles. Comme politique de recommandation, les politiques de désenclavement doivent être menées pour faciliter la mobilité des facteurs et des Hommes. De plus, il faudrait lever certaines barrières douanières tout en luttant contre les fléaux tels que la corruption et l'instabilité politique, qui sont des facteurs qui compromettent l'intégration économique et réduisent la croissance. Abstract: Regional Economic integration is a historic reality and has an impact on the economic growth of countries in thezone. This paper analyses spatial autocorrelation within the WAEMU zone, and its impact on the economic growth of the WAEMU zone. We use a panel model which has spatial effects that show the relationship between the per capita growth rate and monetary as well as non-monetary factors. Results indicate that there exist a spatial autocorrelation within the WAEMU zone. The spatial effects cause a convergence rate of 0.61% to 0.62% for autoregressive specifications and spatial error respectively, against 0.76% for non-spatial specifications. This reduces the speed of convergence by 0.15%. We also identify weak
... For this reason, understanding economic growth has long been a major concern for economists and practitioners alike. Starting with Smith (1776), through exogenous growth models (Solow, 1956;Swan, 1956), to endogenous growth models (Lucas Jr, 1988;Romer, 1986) and unified growth theory (Galor, 2005(Galor, , 2011, the explanation of economic growth has been ubiquitous in the economic literature. ...
... Neoclassical growth theory, the dominant model in mainstream economics, posits that job growth is just one of many factors contributing to economic expansion-not a prerequisite for it (Solow 1956;Swan 1956). For instance, economic growth can occur through productivity improvements. ...
India's economic policy has long been obsessed with high growth rates, often sidelining other crucial goals like job creation, which has lagged significantly. In light of this slow job growth, critics are now pushing for a greater emphasis on employment, arguing it's vital for sustaining economic progress. However, this paper argues that these criticisms are misguided. The connection between job creation and growth is both theoretically and empirically weak. Moreover, these critiques mistakenly prioritize economic growth as the end goal despite its tenuous link to welfare metrics such as job creation. Instead, the paper calls for a fundamental shift in policy focus: from chasing growth targets to addressing concrete measures of economic well-being, such as robust job creation, to more effectively enhance societal welfare and tackle broader socioeconomic issues.
... These results confirm, on a global sample, the important role of finance in the development process(Beck, 2013;King and Levine, 1993; Acemoglu and Zilibotti, 1997 Aghion and Bolton, 1997). As shown by the pioneering work of Solow(1956) andSwan (1956), capital accumulation is a key factor in the analysis of the determinants of long-term growth. Human capital, measured by the primary school enrolment rate, is also significant, with a positive sign confirming the work ofMankiw et al., (1992). ...
This paper proposes a neoclassical growth model that analyzes the key role of language diversity on the long-term trajectory of economies. It considers language as a social technology, which provides workers with linguistic capital enabling them to absorb new knowledge produced locally and abroad. We show that the plurality of languages fragments the global stock of knowledge available to countries, and projects them onto different long-term growth trajectories depending on the structure of their workforce. The study shows that the adoption of a common language for all countries, in addition to their national languages, could be a solution that would promote the long-term convergence of countries' per capita incomes. The conclusions of the theoretical analysis are supported by empirical evidence, which shows, from a sample of 158 countries from 1978 to 2022, that sharing a common official language significantly reduces per capita income disparities across countries after controlling for other important factors such as human capital, investment rates, foreign direct investment, trade, and colonial ties.
JEL Classification : E13, E23.
... Research by Solow (1956), Swan (1956), and Ugochukwu and Chinyere (2013) have results showing that an increase in the capital stock can act positively for the economy as more labor can be hired to operate them, increasing employment and production at the same time. ...
Development is the key to surviving any new change in our way, be it biological or economical. Bangladesh, as a developing country has also been focusing on the human development policies to face the challenges of a growing economy. The aim of this research paper is to empirically test the significance and direction of the impact of human development measured with Human Development Index (HDI) on economic growth, measured with Gross Domestic Product (GDP)-in Bangladesh. 30 years (1990-2019) of time series data for the country, has been used to achieve the objective empirically. Using secondary data from World Bank, Macrotrends, and Country Economy, we have used the ordinary least squares (OLS) model for the test. Based on the research of Harrod (1939), we were anticipating a positive and significant impact of HDI on GDP. We tried to answer the question, how much and how significantly HDI is affecting the growth of GDP in Bangladesh. The rationale behind conducting this study is to contribute to making better policies directed toward economic growth and human development, so that it can eventually improve human welfare in Bangladesh. This research found a positive and significant effect of HDI on GDP. Though it is limited to only OLS regression models without further tests, this study can be further used by carrying out unit root tests to get better results.
... This was demonstrated with models involving series of equations which showed the relationship between labor-time, capital goods, output, and investment. Arising from the model are the predictions that; increasing capital relative to labor creates economic growth, since people can be more productive given more capital, that poor countries with less capital per person will grow faster because each investment in capital will produce a higher return than rich countries with ample capital, and that because of diminishing returns to capital, economies will eventually reach a point at which any increase in capital will no longer create economic growth (Swan, 1956). This point is called a "steady state" The Neoclassical theory of growth which is believed to be more relevant to the modern economies assigns very important roles to capital accumulation which results from savings. ...
One of the major constraints to economic growth and development all over the World is the level of corruption in government expenditure. In spite of various anti-corruption Institutions established by various governments at different times, there seem not to have been a lasting solution to the menace. Nigeria as a nation being part of the global village is not exempted from this trend and has created a number of agitations in the minds of rational thinkers in academics. By various classifications, Nigeria has been rated as one of the most corrupt nations in the world. Consequences of corruption in the country include low level of industrialization, high and rising level of unemployment, high and rising level of inflation and poverty. It is in the light of these that this study focused on Political clientelism as a channel of corruption in Nigeria and its effects on economic growth with a view to determining the possibility of an objective policy dictates to address this problem.. The research designed adopted was ex-post facto survey and descriptive statistics. The study made use of both primary and secondary data. Primary data was collected through the use of questionnaire completed by 306 respondents drawn from both the private and public sectors; while the secondary data was obtained from sources such as the World Bank and International Monetary Fund Development Indicators and the National Bureau of Statistics Reports. For reliability of the research instrument, a cronbach alpha of 0.847 was obtained. Descriptive statistics, simple bivariate regression and Pearson Moment Correlation were employed to analyze the primary data while tables and charts with simple percentages were used to analyze the secondary data. The results obtained showed that there is a statistical significant relationship between low rate of economic growth in Nigeria and Political Clientelism (r = 0.549, p<0.05) with beta coefficient of 0.556 (β = 0.556). Analysis of the secondary data also revealed that the economy is still characterized by high level of unemployment, inflation, poverty and low level of industrialization in spite of so much money being expended annually by the governments. The study therefore concluded that there exist a significant relationship between the low rate of economic growth in Nigeria and Political Clientelism as a channel of corruption identified in this study. The study recommended that public institutions in the country be strengthened to be able to reduce the level of corruption and thus promote economic growth.
Objective: From a macroeconomic perspective, human capital accumulation improves labor productivity, facilitates technological innovation, and increases the return on capital. Also, human capital makes growth more stable, which in turn leads to poverty reduction. In other words, human capital at the macro level is considered as a key production factor in the production function at the economic level. Education expenditure is very crucial for the formation of human capital and as a result economic growth; Because by reducing education costs, it increases the demand for education and plays an important role in increasing its quality. Therefore, the formation of human capital is an important factor for growth. Regardless of the contribution of education in sustainable economic growth, education is a consumer goods that directly contributes to people's welfare. Based on this, the United Nations Development Programme mentions education as one of the key components of human development index. For this reason, governments make significant investments in education. Considering the importance of the role of public education expenditure in the formation of human capital, the main goal of this study is to understand the effect of shocks to the government expenditure in the education sector on Iran's economy. In this regard, according to the characteristics of dynamic stochastic general equilibrium (DSGE) models in estimating the effects of shocks on the economy, a DSGE model suitable for the structure of Iran's economy and the Bayesian approach has been used.
Method: In this paper, a dynamic stochastic general equilibrium model is presented and estimated using the Bayesian approach and seasonal data in the period of 2004:4-2021:5. The primary core of the current research is designed based on the Angelopoulos etal (2009) and by expanding this model, the effect of shocks to the government expenditure in the education sector on the Iran's economy has been investigated. In this regard, the studied DSGE model includes households with an unlimited planning horizon, a representative firm producing a homogeneous final product in a perfectly competitive environment, the firms that produce intermediate goods, the government, and the oil sector. There are (j) firms producing intermediate goods that produce heterogeneous good and imperfect substitutes under conditions of monopolistic competition. Intermediate goods are combined with each other by the firm producing the final goods under a Dixit-Stiglitz accumulator and presented to the household as the final goods. In order to estimate model parameters, Bayesian method and Random Walk Metropolis-Hastings algorithm were used. The data of the observable variables of the model include seasonally adjusted data of Gross Domestic Production (GDP), private consumption, investment and the gross growth rate of money; which have been detrended using the Hodrick-Prescott filter.
Brooks and Gelman (1998) diagnostic test and Monte Carlo Markov chain show that the parameter estimation is appropriate and reliable. This test shows three parameters, interval, second order moment (m2) and third order moment (m3). After extracting these Markov chains of parameters using Metropolis Hastings algorithm, the degree of accuracy of the chains was tested. According to the results of this test, the intra-chain and inter-chain variance of all parameters have finally converged. Therefore, the Bayesian estimation results have good accuracy.
Results: An increase in public education expenses by one standard deviation has caused an increase in private education expenses. Because private and public education expenses complement each other and entered the model in the form of a Cobb-Douglas function. Therefore, in general, investment in education and subsequently, human capital has increased. Increasing human capital has increased production, economic growth and reduced inflation. The decrease in inflation has led to an increase in the real wages of the workforce and finally the desire of the household to increase the supply of labor. An increase in real wages has led to an increase in consumption. Also, the increase in labor supply has increased the final productivity of physical capital, which is due to the complementarity of labor and capital in the Cobb-Douglas production function. This causes an increase in physical investment. The behavior of investment is very similar to the behavior of consumption and production, but its changes are more intense compared to other expenses; Because investment expenses are naturally more volatile than other expenses. Finally, due to the decrease in inflation, the real exchange rate has decreased. The results of this research are consistent and similar with the results of Angelopoulos et al. (2009), and are not similar to the results of Akbarian and Phamkar's (2009).
Conclusion: As a general result, it can be said that the shocks to the public education expenditure, such as the expansionary policy, have affected the performance of the economy and improved the economic conditions. It is suggested that public education expenditure be explained as a long-term investment in the economy. Also, the training of human resources according to the needs of the labor market should be put on the agenda.
The purpose of this study is to determine the effects of cash holding, corporate governance, profitability, and leverage on a company's value. In this study, quantitative methods are used. An industrial sector business that was listed on the Indonesian stock exchange between 2020 and 2022 serves as the sample. 126 samples were obtained by applying the purposive sample method to data extracted from the financial accounts. Data analysis techniques include double linear regression analysis and hypothesis testing (t-testing). The findings indicate that the following factors raise a company's value: cash holding, corporate governance, profitability, and leverage.
Bu çalışmada küreselleşmenin Türkiye ekonomisi üzerine etkileri araştırılmaktadır. Bu bağlamda çalışmada 1990-2021 yılları arası kullanılan kişi başına düşen milli gelir ve küreselleşme verilerinin yanı sıra kontrol değişken olarak sabit sermaye yatırımları, kamu harcamaları, beşeri sermaye ve istihdam verileri kullanılmaktadır. Verilerin birim kök içerip içermediği ADF ve RALS-ADF yöntemi ile, veriler arasındaki uzun dönemli ilişki ise RALS yöntemine dayalı olarak geliştirilen RALS-ADL ve RALS-EG2 eşbütünleşme testleri ile araştırılmaktadır. RALS-ADL ve RALS-EG2 eşbütünleşme testlerinden elde edilen bulgulara göre sabit sermaye yatırımları, beşeri sermaye ve istihdamın kişi başına düşen milli gelir üzerinde olumlu etkisi olduğu belirlenmiştir. Fakat küreselleşme ve kamu harcamalarının kişi başına düşen milli gelir üzerinde istatistiksel olarak anlamlı bir etkisi olmadığı sonucuna ulaşılmıştır.
Open economy and foreign trade are always of special importance as a stimulus for production and economic growth.
According to many economists, the degree of openness or closure of the economy and foreign trade with other countries has macroeconomic effects for countries and even in
The macroeconomics of the effectiveness of policies is analyzed according to this point. Therefore, according to
The degree of openness of the economy of the countries, policies are carried out for economic growth. Nowadays, due to the prominent role of trade, as one of the factors of economic growth and development of countries, almost all governments in various ways such as regional and trade agreements, Incentive and punitive policies such as customs discounts or trade sanctions try to be effective in the global community. In this research, the impact of trade openness and its turbulence on growth is investigated. Economy and inflation in 2018
In 1990, he was selected as a member of the Islamic Conference in two groups of oil exporting and importing countries.
In other words, in this research we are looking for answers to two questions. Is there a positive relationship between
Is there an inverse relationship between trade openness and its turbulence on economic growth and inflation in selected oil exporting and importing countries that are members of the Islamic Conference?
Is there an Islamic conference? To answer these questions from the conditional heterogeneity variance model
Generalized autoregression (GARCH) has been used. The results show that trade openness and its turbulence have a positive effect on economic growth and inflation in oil exporting countries.
This result is consistent with the studies of Lloyd and McLaren, 1 Zakaria, 2 Kurihara 3 and Karas 4.
It also shows the results of the tests and estimation of the models in the importing countries.
Oil, commercial openness has a positive effect and its turbulence has a negative effect on economic growth. This result is consistent with the studies of Bahmani Eskoi and Niroumand 5 and Jain 6. In addition, the results obtained from the estimation of the models show that trade openness has a negative effect and its turbulence has a positive effect on the inflation of countries.
oil importer during the study period. This result is consistent with the studies of Roemer, 7, Hami, 8 and Jafari Samimi et al. 10.
Developing countries such as Ethiopia, over the years particularly after the cold war, starting from early 1990s have
adopted neoliberal policies through reforms to attract foreign finance for development needs in view of inadequacy of domestic
capital for public and private investment. However, despite the inflow of foreign capital into the economy, it is still grappling with
major development challenges. It is in view of this that this study examines the impact of foreign finance on the economy, and
whether FDI-climate interaction limits the potential impact of foreign direct investment (FDI) as an important component of
foreign capital, on economic development in Ethiopia. The study further reveals the implications of post-cold war adoption of
market-oriented policies in Ethiopia. The study uses autoregressive distributed lag (ARDL) model with data spanning from 1981 to
2020. It is found that FDI has positive and significant impact on economic development in the long run, but the positive effect is
revealed to be insignificant in the short run. On the other hand, foreign debt is revealed to have long term negative though
insignificant impact on economic development of the country. Furthermore, it is revealed that FDI-climate interaction has negative
implication on the economy in both the long run and short run. Therefore, the effectiveness and efficiency of foreign finance on
growth and development outcome in Ethiopia is conditional on whether it produces long run sustainable environmental outcome.
Also, the adoption of neoliberal policies has not resulted in development of Ethiopia. Hence, the study recommends among others,
the need for consideration of absorptive capacity of the country as a recipient economy and in its reforms, as well as the need for
the government and development partners to ensure assessment of the long run potential environmental impact of foreign capital
before they are deployed on the economy.
This study aims to analyze the effect of foreign direct investment and inflation on economic growth in ASEAN countries. The analytical method used is a quantitative approach with multiple linear regression panel data method based on secondary data from foreign direct investment, inflation, and economic growth variables in 2009-2020. The analysis results show that FDI has no significant impact on the economic growth variable, and the inflation rate has a significant positive impact on the economic growth variable.
The Gross Domestic Products (GDP) is widely used to measure size of economy, per capita income and its growth as the most significant macroeconomic variable plays vital roles to adopt key decisions in investment, trade, revenue, money and prices. Our study aims to find out key factors affecting Bangladesh GDP so as to undertake necessary policy actions for promotion of GDP. We attempt to explore determinants of Bangladesh GDP during 1979-2020 by using Co-integration and Vector Error Correction Model (VECM). We use private sector credit, Government consumption, consumer price index, trade and electricity as potential variables in the model. We found that private sector credit has emerged as the most important factor to stimulate the GDP in Bangladesh. The impacts of other factors are statistically insignificant. Our study suggests for proper selection of projects with appropriate feasibility study so that credit flows to unproductive sectors can be avoided. It also recommends to develop capital market for long-term financing to lessen the adverse impacts of maturity mismatch in funds of banks. In this case, Islamic Shariah compliant sukuk based financing model can play vital role in financing projects, infrastructure projects in particular. JEL Classification: E01, E21, E22, E23, G21, O4
This study offers an all-encompassing analysis of economic growth and convergence within the Indian States, spanning a period from 1991 to 2020. Through the utilization of the augmented Solow and extended Solow models, this research delves deep into absolute, sigma, and conditional convergence across the Indian States and Union Territories (U.T.). Notably, it is revealed that the initial per capita GDP ratio does not exhibit a significant negative correlation with the average annual growth rate, and suggests the absence of absolute convergence throughout the Indian States and U.T. The outcomes of sigma convergence seamlessly align with those obtained from the absolute convergence model, reinforcing the credibility and robustness of the analysis. However, the exploration of conditional convergence using the augmented Solow model estimates a rate of conditional convergence, as indicated by the coefficient of initial GDP per capita, to be 0.038 among the Indian States and U.T. This compelling statistic considers various influential factors such as GDP per capita, physical and human capital, and population growth. Moreover, the extended Solow growth regression reveals a coefficient of initial GDP per capita of 0.337, demonstrating that factors beyond the initial per capita income make significant contributions to the growth and convergence of Indian States. Conclusively, it can be inferred that economic growth in the Indian States is decisively influenced by a multitude of factors. Notably, prioritizing expenditure on vital social sectors such as health, and education proves instrumental in driving progress. Moreover, to propel economic advancement, India must place great emphasis on accessing new technologies and ideas from around the world, while concurrently bolstering governm ent saving rates and maintaining sound macroeconomic management. Furthermore, heightened investments in human capital formation are crucial for sustainable growth. Prudent budgetary policies must be implemented to ensure efficient resource allocation, with a particular focus on augmenting budgetary resources allocated to the health sector. Simultaneously, incentivizing married couples to curtail fertility rates and ensuring effective monetary policy management is imperative for stability and long-term growth within the Indian States.
The existence of heterogeneity in the literature that addresses the sources of economic growth, from an empirical point of view, generates a problem of uncertainty. The objective is to identify robust determinants of economic growth in Mexico by reducing the uncertainty of the model. To do so, the Bayesian Model Averaging (BMA) methodology is proposed, which analyzes many explanatory variables simultaneously. Thus, 28 possible determinants are considered in a sample that includes the 32 federal entities, to include the period2010-2021. The BMA constructs various possible combinations of models to extract the most robust determinants. Similarly, the instrumental variables BMA (IVBMA) is used to consider possible endogeneity problems. The results show a set of significant economic, institutional, and social variables to understand economic growth in Mexico.
Aby zrozumieć niezwykle skomplikowaną sytuację ekonomiczną współczesnej Japonii, niezbędne jest poznanie trudnej historii tego kraju. Restauracja Meiji stanowiła rewolucją w japońskim społeczeństwie i gospodarce. W jej wyniku Japonia przekształciła się z państwa quasi-feudalnego w globalną potęgę ekonomiczną. Industrializacja Japonii wraz ze znaczeniem, jakie miała dla całej Azji, znalazły odzwierciedlenie w teorii klucza lecących gęsi K. Akamatsu. Japończycy nadzwyczaj umiejętnie zaadaptowali najlepsze instytucje krajów zachodnich, jednocześnie zachowując swoją niepowtarzalną tożsamość. Restauracja Meiji stanowi inspirację dla twórców współczesnych reform gospodarczych, które mogą wyprowadzić Japonię z wieloletniej stagnacji. Tak zwane trzy strzały Abenomics to reformy monetarne, fiskalne i strukturalne, których najważniejszym i najbardziej kontrowersyjnym elementem są rewolucyjne zmiany polityki monetarnej wprowadzane przez Bank Japonii. Głównym celem badawczym autora niniejszej pracy była identyfikacja czynników i barier wzrostu gospodarczego w Japonii ze szczególnym uwzględnieniem przyczyn długookresowej stagnacji gospodarczej po 1989 r. Przeprowadzona analiza japońskiej gospodarki dotycząca bardzo długiego okresu (1868–2018) pozwoli na głębsze zrozumienie przyczyn zarówno powojennego cudu gospodarczego, jak i okresu zwanego „straconymi dekadami”. Ewolucja gospodarki Japonii została przedstawiona na podstawie analizy źródeł historycznych, japońskich i międzynarodowych baz danych oraz najważniejszych pozycji w literaturze przedmiotu dotyczących wzrostu gospodarczego, polityki ekonomicznej i stagnacji sekularnej. Niniejsza praca stanowi atrakcyjną propozycję z perspektywy nauk ekonomicznych, politycznych i historycznych szczególnie dla osób zainteresowanych tematyką Japonii.
The paper presents a methodology known as the Modified Structural Change/Transformation Index (MSCI) that enables comparisons of the extent of structural transformation/change across countries and regions without considering the historical context of each case's structural transformation. This is significant because developed countries initiated their structural
transformation much earlier than emerging and developing countries. The methodology compares the average contributions of economic sectors to GDP between 1970-1975 and 2017-
2022 to evaluate structural transformation in countries and regions around the world. The proposed methodology (MSCI) has demonstrated that its findings closely reflect the developmental performance of the countries and regions being assessed based on their average GDP per capita, compared to the results obtained through the traditional Structural Change Index (SCI) for measuring structural transformation. The paper confirms that the proposed methodology requires further research to refine it. Variables such as economic complexity, human capital, and institutional quality could be considered to enhance measurement accuracy.
The paper presents a methodology known as the Modified Structural Change/Transformation Index (MSCI) that enables comparisons of the extent of structural transformation/change across countries and regions without considering the historical context of each case's structural transformation. This is significant because developed countries initiated their structural transformation much earlier than emerging and developing countries.
The goal of this study was to examine how important macroeconomic indicators in the United
States, such as the unemployment rate, inflation, and interest rates, are affected by technological
advancements. The study's two main goals were to (i) analyze the connection between
technological advancements and the unemployment rate using both theoretical and statistical
methods, and (ii) look at the statistical relationship between technological advancements and
inflation and interest rates. The study used a sound approach and employed linear regression
models to examine the complex relationships between the independent Technological
Advancement Index (TECH), which was created based on internet usage, and the dependent
macroeconomic indicators. Dataset used for this study was gathered from publicly available
sources between 2012 through 2022. These include data from but not limited to the Bureau of
Economic Analysis, the Bureau of Labour Statistics, and the Federal Reserve Economic Data.
Significant insights were obtained from the study's results. A key conclusion was that there was a
strong positive association between technical advancement and the unemployment rate, indicating
that technological innovation may cause changes in the labour market. Unexpectedly, it was shown
that improvements in technology had a statistically significant positive impact on inflation rates,
pointing to the complex interactions between technology and inflation. The relationship between
technological advancement and interest rates also showed a negative association, suggesting that
higher technological advancement was associated with lower interest rates, most likely because of
increasing productivity. This study highlights the importance of adaptive policies to deal with the
effects of technological advancement on unemployment and inflation while also emphasizing the
complex interaction between technology and interest rates in determining economic landscapes.
Forestry plays an important role in the daily lives as well as livelihood earnings in the five districts representing the dryland areas of West Bengal-namely, West Midnapore, Bankura, Birbhum, Purulia and Jhargram. Even if JFM, EPC and FDC are in place, the lack of efficiency; proper planning; management; population growth-have resulted in the degradation of forestry-both qualitatively and quantitatively. Intellectual property Rights can play a crucial role in the sustainable development of forestry and the forest fringe communities. If forest related maps, literature, photographs, art and culture, indigenous tools and techniques, agricultural practices; designs of indigenous products can be brought under IPR and patented for the forest dwellings, it can do wonder in the form of generation of livelihood earning avenues.
Forestry plays an important role in the daily lives as well as livelihood earnings in the five districts representing the dryland areas of West Bengal-namely, West Midnapore, Bankura, Birbhum, Purulia and Jhargram. Even if JFM, EPC and FDC are in place, the lack of efficiency; proper planning; management; population growth-have resulted in the degradation of forestry-both qualitatively and quantitatively. Intellectual property Rights can play a crucial role in the sustainable development of forestry and the forest fringe communities. If forest related maps, literature, photographs, art and culture, indigenous tools and techniques, agricultural practices; designs of indigenous products can be brought under IPR and patented for the forest dwellings, it can do wonder in the form of generation of livelihood earning avenues.
Forestry plays an important role in the daily lives as well as livelihood earnings in the five districts representing the dryland areas of West Bengal-namely, West Midnapore, Bankura, Birbhum, Purulia and Jhargram. Even if JFM, EPC and FDC are in place, the lack of efficiency; proper planning; management; population growth-have resulted in the degradation of forestry-both qualitatively and quantitatively. Intellectual property Rights can play a crucial role in the sustainable development of forestry and the forest fringe communities. If forest related maps, literature, photographs, art and culture, indigenous tools and techniques, agricultural practices; designs of indigenous products can be brought under IPR and patented for the forest dwellings, it can do wonder in the form of generation of livelihood earning avenues.
Remittances are crucial for driving economic growth in developing countries like Bangladesh, as they effectively influencenearly all macroeconomic indicators within the financial ecosystem. This study examines the impact of remittance inflow on economic growth in Bangladesh considering the cash incentive policy of the government. The ARDL Bound testing approach is employed for the analysis using a monthly dataset covering the period from January 2015 to April 2023. The evidence from the results provides a substantial and favorable influence of remittances on the economic growth of Bangladesh, both in the short term and the long term. According to the expected error correction term, it is projected that the economy will undergo a correction of its imbalances at an annual rate of 58%. Consequently, a strategic blend of short-term policy adjustments and long-term initiatives has the potential to enhance the influence of remittances in fostering sustainable economic growth and elevating the the quality of life for both expatriates and the nation as a whole.
Este artigo tem como objetivo identificar e analisar alguns determinantes da Produtividade Total de Fatores (PTF) entre os estados brasileiros. A análise é feita para o período de 2010 a 2018. Para esse fim, é estimada a PTF agregada aplicando o modelo de Solow. A partir da PTF, o método de Erros Padrão Corrigidos por Painel (PCSE) é usado, testando como determinantes, variáveis ligadas ao comércio exterior, infraestrutura, Governo e educação. A PTF para o Brasil teve crescimento ínfimo no período. Contudo, alguns estados se sobressaíram na eficiência, como Mato Grosso, Mato Grosso do Sul, Piauí e Maranhão. Neles, a produção agropecuária tem maior relevância. Quanto aos determinantes da PTF, educação é a variável de maior importância, respondendo pela maior parte das variações positivas. As rodovias afetam a PTF positivamente, mas em contrapartida, a frota de veículos, negativamente. O comércio exterior é de grande relevância, com efeitos positivos. O Governo, por sua vez, afeta a PTF negativamente, sugerindo a ineficiência dos gastos.
This book provides a unique combination of history, politics, and economics to rationalize the progression of underdevelopment in some Sub-Saharan African countries, especially Sierra Leone. The challenges of economic growth and development confronting some Sub-Saharan African countries are explored.
The book concisely presents the internal frictions that are most responsible for the underdevelopment of Sierra Leonean since 1961, while also benchmarking the performance of the country with some countries in the sub-region, Europe, the US, Latin America, and Asia. It also highlights the external threats that are highly capable of stifling the economic growth and sustainable development of the country, including sovereign debt, the paucity of human capital, the use of natural resources, and external shocks.
The central concepts of analysis include the premise for underdevelopment, contexts for business strategies and rivalry in an underdeveloped economy, economic growth, productivity, sustainable development, international trade, and threats to macroeconomic stability in the form of volatile commodity prices, loss of competitiveness, inaccessible foreign markets, deficient health care infrastructure, the cost of unsustainable sovereign debt, and the viability of long-term investments.
The book has been intentionally developed for all those who are strongly interested in the political economy of Sub-Saharan Africa (with particular emphasis on Sierra Leone), empirical work on economic growth and development, academic instruction on international political economy, international organizations, and policymakers.
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