Industrialization in the USSR 1923–1960. Structuralist Approach

The changing of Indonesia’s industrialization policy from inward oriented (import substitution) to outward oriented (export oriented) strategy has delivered Indonesia success in increasing its export within two last decade. Moreover, this strategy also has changed the composition of Indonesia’s export from primary based products (oil and agriculture) to secondary based products (manufacture). This study examines how so far the causality relationship between national income of Indonesia and export by sector (agriculture, oil, and manufacture), and than comparing this with Thai and Malaysia as LDCs in Asian. By using Granger’s causality test modified by Hsio’s criteria on quarterly data from 1982.1 – 2002.4, this paper concludes: (1) Indonesia’s national income influences its industrial export positively, (2) Thai’s national income influences its agricultural export positively, and (3) Malay’s industrial export influences its national income positively, and Malay’s national income influences its industrial export negatively. The result of this study shows that the change of structural transformation from primary based export (agriculture and oil) to secondary based export (manufacture) in stimulating economic growth has been achieved by Malaysia. In contrast, this strategy is not occurred in Indonesia and Thailand. In the other word, export for Indonesia and Thailand is just a progressive process in stimulating economic growth, not to be an essential factor in constructing economic growth. Keywords: Economic Growth, Export, Structural Transformation

Abstract. Economic growth in Western Europe, Eastern Europe, Asia, countries of the former USSR, Africa and Latin America were analysed. It is demonstrated that the fundamental postulate of the Unified Growth Theory about the existence of the three regimes of growth (Malthusian regime, post-Malthusian regime and sustained-growth regime) is contradicted by data. These regimes did not exist. In particular, there was no escape from the Malthusian trap because there was no trap. Economic growth in all these regions was not stagnant but hyperbolic. Unified Growth Theory is fundamentally incorrect. However, this theory is also dangerously misleading because it claimsa transition from the endless epoch of stagnation to the new era of sustained economic growth, the interpretation creating the sense of security and a promise of prosperity. The data show that the opposite is true. Economic growth in the past was sustained and secure. Now, it is supportedby the increasing ecological deficit. The long-term sustained and secure economic growth has yet to be created. It did not happen automatically, as suggested incorrectly by the Unified Growth Theory. Keywords. Regional economic growth, Gross Domestic Product, Unified Growth Theory, Malthusian stagnation, post-Malthusian regime, sustained-growth regime, Industrial Revolution, hyperbolic growth. JEL. A10, C12, C20, F00, N00, O10.

This article addresses the issue of the economic growth conception re-evaluation, based on the evolution of understanding of what ‘digital’ era is and of what determines the way economic develops. With information and knowledge economy as the basis of the new economic relations, the role of human’s mind and, consequently, knowledge become a first and utmost factor of economic growth and social development that is reflected in modification of economic growth models also by bringing foreword new factors of growth. Considering digital economy and following 4th industrial revolution as a revolution of mind and, consequently, of worldview, it is clear that in new digital era economic growth and economic development are converging into a single concept, united under the term ‘development’ that should be founded on the concept of human development as the latter seems to become the main resource and the main determinant of new economic relations.KeywordsEconomic growthEconomic welfareDigital economyDigital eraDigital capitalHuman capitalCreative capitalJEL CodeO4

Structural adjustment is most often viewed by modern domestic economists as a means of reducing oil and gas dependence and increasing the security of the Russian economy. At the same time, a structuralist approach, which is based on the assumption that structural improvements can lead to economic growth, was developed abroad in the middle of the 20th century. However, the economic mainstream is dominated by the neoclassical approach, where capital, innovation and institutions are recognized as the main factors of economic growth. Our research has shown that the role of restructuring is underestimated. A hypothesis emerged – structural adjustment could be a driver of economic growth. The purpose of this article is to show that the hypothesis put forward is an objective pattern of structural transformation. On the basis of a comparative analysis of neoclassical and structuralist approaches, supplemented by an investigation of the basic properties of the structure of the economy, the following problems are solved. The phenomenon of dualistic causality of traditional concepts and structuralist views is revealed. It is substantiated that the considered concepts are not alternative, as it was believed, and are not complementary. The factors of economic growth studied in them are inseparable. It is shown that in a dirigist economy, which is typical for Russia and its regions, impacts on basic structure properties can become the main internal impetus for economic growth. The directions of balanced impact on the structure by measures covering the main and supporting areas of economic activity are determined. These include the modernization of the architecture and the spatial structure of the economy, as well as the functional structures of the main and supporting types of activity. The authorities of the region, acting within the framework of the functions of the regulator, in the development and implementation of the structural and investment policy can create favorable conditions for the priority development of industries-drivers with high innovation potential, improvement of the production and financial infrastructure, infrastructure for the development of innovations. At the same time, the restructuring of sectoral and technological structures should be accompanied by changes in the institutional, personnel and other supporting structures.

The following sections are included:IntroductionThe ModelThe Equations of ChangeThe Magnification EffectThe Extended Model: Demand EndogenousThe Aggregate Elasticity of SubstitutionConvergence to Balanced GrowthSavings BehaviorThe Analysis of Technological ChangeReferences

Структурные диспропорции, а также дегенеративные изменения, происходящие в экономике, невозможно объяснить без определения научных подходов к исследованию трансформационных процессов. В статье приведены основные научные классификации по фундаментальным экономическим школам в разрезе трансформационных процессов. Определена роль возрастающего человеческого капитала в исследовании трансформационных процессов как драйвера и движущего фактора положительных структурных изменений экономической системы. Сделан вывод о том, что трансформационные процессы отражают качественность эволюционного развития экономики во главе с непременно возрастающим и постоянно возобновляющимся человеческим капиталом. В статье представлено авторское понимание структурных трансформаций и трансформационных процессов и показано влияние движущих факторов во взаимосвязи с человеческим капиталом. Показано влияние изменения структурных трансформаций на человеческий капитал. Приведен обзор и анализ литературных источников в области структурных трансформаций и структурных сдвигов. Отражены точки зрения представителей разных экономических школ и представлены результаты анализа понятий «структура» и «структурные изменения» относительно исследований в этом разрезе. Сделаны уточняющие выводы об определенной доработке в концепции определения понятий «структура» и «структурный сдвиг», а также «структурные изменения». Статья отражает основные фундаментальные научные подходы к исследованию структурных трансформаций, учитывающих взаимосвязь человеческого капитала в экономической системе. Кроме того, автором сделан акцент на динамическую составляющую структурных трансформаций. В статье автором работы четко определена методология исследований относительно трансформационных исследований в разрезе специфики человеческого капитала. Приведены структурные подходы в области исследования человеческого капитала. Сделан вывод о необходимости ключевых структурных трансформаций с неотъемлемым ядром в нем в виде человеческого капитала. Статья отражает качественность фактора человеческого капитала структурных трансформаций экономической системы. Приведен обзор литературных источников в области исследования человеческого капитала и трансформационных изменений. В этой связи сделан вывод о необходимости и вовлеченности человеческого капитала в исследование и анализ трансформационных процессов. Structural imbalances, as well as degenerative changes taking place in the economy, cannot be explained without defining scientific approaches to the study of transformation processes. The article presents the main scientific classifications by fundamental economic schools in the context of transformation processes. The role of increasing human capital in the study of transformation processes, as a driver of positive structural changes in the economic system, is determined. It is concluded that transformation processes reflect the quality of the evolutionary development of the economy, led by an inevitably growing and constantly renewing human capital. The article presents the author’s understanding of structural transformations and transformation processes and shows the influence of driving factors in relation to human capital. The influence of changes in structural transformations on human capital is shown. The review and analysis of literary sources in the field of structural transformations and structural shifts are presented. The views of the various schools of economics are reflected and an analysis of the concepts of “structure” and “structural change” in relation to research in this context is given. The clarifying conclusions are made about a certain improvement in the concept of the definition of “structure” and “structural shift”, as well as “structural changes”. The article reflects the main fundamental scientific approaches to the study of structural transformations, taking into account the role of human capital in the economic system. In addition, the author focuses on the dynamic component of structural transformations and clearly defines the research methodology regarding transformational research in the context of the specifics of human capital. Structural approaches in the field of human capital research are given. The conclusion is made about the need for key structural transformations with an integral core of human capital in it. The article reflects the quality of the human capital factor in the structural transformations of the economic system. The review of literature sources in the field of research of human capital and transformational changes is given. In this regard, a conclusion is made about the need to consider human capital in the study and analysis of transformation processes.

list of figures page xi list of tables xii preface xiii introduction xv 1 Growth and Development in History 1 Economic growth and economic development Growth and welfare - The measurement of economic growth - National income accounting: progress, promise, and pitfalls - The growth of income in modern times Economic growth before the mid-nineteenth century - The demographic factor and economic growth - Structural change in history - Structural change and sectoral productivity - The 'services' sector 2 Agriculture in Economic Growth 70 The role of agriculture - The contraction of the agricultural sector - Peasant artisans and peasant traders - Systems of land tenure and inheritance Agricultural productivity before the industrial age - Agricultural productivity in recent times - The sources of productivity improvement - Agricultural productivity and the growth of the economy 3 The Role of Capital 115 (a){emsp}investment and economic 115 growth The unimportance of capital? - Some conceptual and measurement problems - Capital/output ratios, cross-country and over time - Investment ratios in theory and history - Investment: the key to the 'industrial revolution'? - Savings and investment in pre-industrial societies (b){emsp}the sources of capital 157 'Direct' financing and intermediation in history - The financing of the 'industrial revolution' - Financial intermediation in the industrial era - The sources of savings - 'Involuntary' saving (c){emsp}the export of capital 178 The history of capital exports - Capital imports and growth - Capital exports and the lending country - The servicing of external debt - International capital movements and economic growth since 1945 4 Foreign Trade and Economic Growth 218 Trade, State and economy in early modern times - Do trade ratios decline? - Inter-country differences in trade ratios - 'Vertical' specialization before World War I - Trade as an 'engine of growth' - 'Enclave' economies - Trade in manufactures to 1913 - The 'engine of growth' reconsidered - Trade-constrained growth before 1913 The terms of trade of primary producers - New trends in twentieth-century trade Patterns of trade since World War II - Trade and growth: some concluding remarks 5 Technology and the 'Residual' 295 The 'residual' in economic growth - Allocation of resources - 'Human capital' and growth - Denison on the 'partitioning' of growth - The role of technological change - The evidence of patent statistics - The technological revolution? - The sources of invention Private and corporate invention - Invention, innovation and lags in technological advance - Inter-country 'lags' - Technical 'improvements' - Factor proportions and technical change 'Managerial' improvements and productivity - Pitfalls and possibilities in the historical analysis of productivity change 6 Some Theories of Growth and Development 378 Patterns and the unique event in history - Some limiting factors in historical generalization - Hollis B. Chenery's 'patterns of development' - Legal and institutional change in economic development - Market imperfections and national economic integration - The trend of income distribution - 'Labour surplus' models - Patterns of industrial growth: Chenery and Hoffmann - 'Stage' i - 'Take-off' - Uniformity and diversity again - The limitations of economic analysis KEY TO REFERENCES 447 INDEXES 452

Topicality. Modern economic science pays much attention to the issue of social development. However, development is not necessarily accompanied by economic growth - on the contrary, it can create imbalances, disproportions, and conflicts. This is partly caused by poor understanding of the nature and patterns of development. Gaps in research of the logical and epistemological fundamentals of the development concept lead to the formation of erroneous methodological approaches and decision-making based on them that do not meet the requirements of the modern complex, dynamic, non-linear world. Aim and tasks. To investigate the universality of development theories and the possibility of their application to the study of complex economic systems; to analyze the advantages and disadvantages of metaphysical, dialectical and synergetic concepts of development; to review empirical cases of organization, self-organization and development of economic structures. Materials and methods. General scientific methods of research, in particular, logical-historical, systemic-structural, empirical, comparative, theoretical generalization and synthetic evaluations, are used. The theoretical basis of the study is the classical works of famous philosophers and methodologists, such as N. Condorcet, G. Hegel, F. Engels, K. Popper, H. Haken, I. Prigogine. Research results. In the article the main philosophical concepts of development are analyzed and the possibilities of their application to the study of economic systems are investigated. The article reviews the origins of ideas concerning development in the philosophy of ancient thinkers - Hesiod, Heraclitus, Aristotle; ideas of New Age progress theory representatives - A. Turgot, G. Vico, N. Condorcet, T. Hobbes, W. Godwin. The contradictory, progressive and regressive nature of development is revealed in terms of G. Hegel's dialectic. A critical analysis of the basic ideas of materialist dialectic is carried out. The framework for applying the dialectical principle to the study of economic development is defined. A comparative study of the dialectical and synergetic theories of development is conducted. The methodological potential of synergetics and complex systems theory for the study of innovative economic development is analyzed. With the help of empirical cases, it is demonstrated how the basic ideas of dialectics and synergetics are applied in the process of development of macro- and microeconomic systems. Conclusion. The article demonstrates the link between philosophical concepts of development and modern theories of self-organization and complex systems. Application of dialectical principle in economic science has its limitations. Hegel's dialectic is an alternative technique that explains the variability of the world, its constant motion and development, but not as a new logical method. If we reject the dialectic's claims to universality, then it can be used as a descriptive theory that explains certain typical developmental processes. In terms of synergetics, it is possible to explain the development of complex open systems in dynamics, such as economic systems. The categories of order, chaos, self-organization, order parameters, bifurcation, and phase transitions can be used as tools for analyzing economic processes. However, it is important to understand that there is no universal, absolute method of studying social reality in its development, so integration and methodological diversity based on a constant increase in knowledge are crucial.

Abstract. The book that consists of 240 pages including the bibliography and contains the following sections and chapters; The Foreword: This contains a few brief remarks regarding the philosophy of science and philosophy of economics. The remarks are, in principle, both relevant and appropriate in terms of the “general principles” with regard to science, the science of economics, the nature of science as well as the duties of a scientist. The author’s remarks underline that “neoclassical economics” which is widely acknowledged as the school that economics seems to represent, is, in fact, a more “ideological model” than a true scientific and realistic basis for economics and, in fact, favors the “dominant classes” in the society. Keywords. Economic growth, Economic development, Alternative growth models. JEL. F40, F43, O10, O20.

Abstract: By overview method, the article showed clearly the currently of shifts in social occupational structure in the Mekong Delta. The changes in social structure of jobs in the Mekong Delta is focused on the characters such as labor capability, economic forms, working situation and economic area, which contributes to various characters of shift social structure of jobs. This article presents that this changes has a positive trend such as reducing argiculture, increasing severice and industry field, labour in private and FDI economic forms growth up; working situtation upward to trend. Althought this changes pointed out the slower pace of shifts in comparison to nationwide pace and unstantain. As there was serveral reasons impact on this changes. Thus, this shift had influenced income, social stratification and migration decision of labor in the Mekong Delta. The article also pointed out some evidences about the different income of labor in economic forms and economic area. The author then provided some suggestions on how to facilitate positive shifts in social occupational structure, such as training and resolving jobs policies, linking to between the famers, the scientist, the state and the business man, restructuring economy, promoting policies and environment investment 
 Keywords: Shift, Mekong Delta, economic form, labor migration, occupational structure, shift in occupational structure.

PurposeThe direction of the causality relationship between Foreign Direct Investment (FDI) and economic growth is a highly controversial issue in the literature. There are two basic approaches advocating different causal directions between FDI and growth, which are called hypotheses of FDI-led Growth and Growth-led FDI. The aim of this study is to analyze the causality relationship between FDI and economic growth in RCEP countries and thus make a new contribution to the discussions in the relevant literature. In addition, the results of the study are expected to provide important implications for the policies to be designed for economic growth based on FDI flows to RCEP countries. Thus, by examining the direction of causality between FDI and economic growth in RCEP countries, we aim to provide a new contribution to related literature and make some implications for the policy design process of economic growth in the RCEP area.Design/methodology/approachWe empirically examined the direction of a causal link between FDI and economic growth in the context of Regional Comprehensive Economic Partnership (RPEC) countries in order to test the hypothesis of FDI-led growth and Growth-led FDI. Accordingly, as our main variables of interest, we incorporated the inward foreign direct investment stock to gross domestic product ratio (FDI) and gross domestic product per capita (GDP). Hatemi-J (2012) asymmetric causality test has been employed in the investigation of the direction of causality between FDI and GDP over the period of 1980–2020. Thus, unlike most of the studies investigating the direction of causality between FDI and growth using the linear causality analysis method, our study performed a nonlinear causality analysis.FindingsEmpirical results reveal that the causal relationship between FDI and national income in RPEC countries is non-linear or asymmetric . The results of the symmetric causality test for both from FDI to national income and from national income to FDI are statistically insignificant for all countries. Therefore, this finding obtained from the study provided an important guide to the econometric methods to be used in other studies to be conducted in the same region in the future. Concerning the asymmetric causality relationship from FDI to growth, positive FDI shocks are an important cause of national income in most RCEP countries. However, the effect of negative FDI shocks on national income is quite weak compared to positive shocks. Regarding the asymmetric causality relationship from growth to FDI, positive national income shocks do not create a significant causal relationship with FDI. Similarly, the effects of negative national income shocks on FDI are statistically insignificant. Overall, asymmetric causality test results reveal that positive FDI shocks have an important causal impact on economic growth in most RCEP countries. Thus, the results of econometric analysis mostly support the argument that the FDI-led growth hypothesis rather than the Growth-led FDI hypothesis in RCEP countries. Accordingly, policy-makers in most of the RCEP countries should continue to provide more incentives and facilities to multinational companies in order to ensure constant economic growth.Originality/valueOur study brings a significant difference in the econometric method used compared to most of the other studies in the literature. Existing empirical studies on the direction of causality between FDI and growth mostly use standard Granger-linear causality-type tests to detect the direction of causality among FDI and growth. Unlike most of the studies in the literature, our study adopted a different methodological approach, namely the Hatemi J test to detect the non-linear causality between FDI and economic growth in RCEP countries. Therefore, this paper made a new methodological contribution significantly to the literature focusing on the causal relationship between FDI and economic growth by using a non-linear causality method rather than a linear causality one.

Travelers' Tales: Their Values and Virtues

It has been observed that while living in harmony with nature on earth until the industrial revolution, with the industrial production and consumption society formed after the industrial revolution, humanity has started to dominate nature more and the damage caused to nature has increased. Economic growth, contrary to expectations, increasing inequality in the distribution of income, the impoverishment of the broad masses of the natural environment in the emergence of problems such as destruction of natural resources, growth and development of the concept of sustainable development has revealed the new concept. Sustainable development suggests that both economic development can continue and the ecological system can be protected; the contradiction between the environment and development will disappear. The concept of sustainable development has been considered to be able to solve many country problems since its first appearance, and has been applied to many fields such as economics, politics, the environment and social culture. In fact, there are many aspects of the concept of sustainable development that are open to criticism. The aim of this study is to address the criticisms brought to the concept with a collective perspective. For this purpose, the criticisms brought to the concept of sustainable development based on the previous studies conducted on the subject were examined. It is thought that the study will contribute to the literature by eliminating the lack of a critical perspective on sustainable development in this way.

Purpose – The purpose of this paper is to investigate the relationship between FDI and economic growth. Two models have been used to analyse the time series data on Pakistan from 1970 to 2012. This paper contributes to the existing literature by examining the different empirical methods to estimate the relationship between FDI and economic growth. The vector error correction model (VECM) results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Design/methodology/approach – Used time series data (1970-2012) for empirical analysis. Findings – The VECM results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Research limitations/implications – The limitations of this empirical paper are as follows: it would be better to use secondary school enrolment (per cent) to measure human capital instead adult literacy rate. Similarly, the non-availability of R & D data on Pakistan limited the scope of the paper to measure the role of absorptive capacity of domestic and its relationship with FDI. The results of this paper are specifically related to Pakistan and cannot be generalized to other countries. Practical implications – This empirical study implies that Pakistan should improve its economic growth. The robust policies are required to increase the literacy rate of the country. Higher human capital will attract more FDI into the economy and may reduce the unemployment. This would increase the national output of the country and their national income level. Presently, Pakistan is going through war on terror and foreign firms are reluctant to invest. A stable and secure business environment will ultimately inject foreign direct investment into Pakistan. Originality/value – This paper is first time analyse the time series data to explore the relationship between FDI and economic growth. A new approach has been used called VECM.

This study examines the association between structural transformation and economic growth for a panel of 19 states and UTs focusing on Assam. Employing dynamic panel econometric models from 1977–1978 to 2017–2018, the study indicated that the association between economic growth and structural transformation among the 19 states/UTs panel seems to be random. However, parametric techniques such as DOLS suggest a significant long-term relationship between structural change in output and economic growth across Indian states. Assam, being a key player in north-east India’s economy, holds particular importance in India–South Asia trade dynamics. However, the state has been experiencing a simultaneous structural economic shift and adverse economic situation, evident from the existing literature. Thus, it is pertinent to examine the structural change-economic growth linkage for Assam, which will be helpful for policy-making to ensure sustained economic growth. For Assam, the vector auto regression and Granger causality test reveal significant results, showing a bi-directional causality between structural change and economic growth, supporting the Kaldor–Verdoorn’s law.