Capita GDPs Research Articles

Relationships between economic development and resident environmental behavior and participation in areas with different economic and similar natural and cultural conditions

Economic development level (EDL) cannot completely explain environmental behavior and participation (EBP) patterns as many other factors affect environmental performances, and the conflict of ‘Maslow’s Hierarchy Needs model’ or ‘Affluence hypothesis’ and ‘Challenge-response Model’ hypothesis has been continuously discussed. In the present study, a standardized two-dimensional array (STDA) model is employed to deliberate on the EDL-EBP relationship in different sub-groups with the highest ($21389.08) and the lowest ($5216.41) average capita GDPs in Guangdong Province, China. This is the first attempt to investigate the relationships between the regional EDL represented by capita GDP and public environmental behaviors represented by actual resident’s resource consumption, pollution emission and environmental participation in areas with similar natural and cultural condition, and an Environmental Effort Indicator (EEI) is established based on the STDA model. The results show that (1) the STDA model is applicable in distinguishing resident’s EBPs of 20 prefecture-level cities (PLCs) of Guangdong Province with rather different EDLs; (2) the relationship of EDL-EBP is not liner pattern and is behavior- and region-specific; (3) public participation plays an important role that is most decisive to the EEI; (4) the V-shaped EDL-EEI relationships can be explained each other with the EKC model. The formation of resident’s good environmental habits would be a long-term process and environmental education is a key way to accelerate the process and to maintain sustainable developments of the nature and human society.

Study on the Presence of Middle Income Trap in E7 and Fragile Five Countries

This study aims to investigate whether E7 and Fragile Five countries are in the middle-income trap or not by using various methods and comparison techniques. The study is based on the classification created by Felipe, Abdon and Kumar using the middle-income trap threshold values approach by obtaining growth rates, income transitions and times over historical data of countries. This study first focuses on the approaches that lay down the theoretical basis of the middle-income trap. In the following sections, in order to explain the middle-income trap in the context of quantitative indicators, various approaches such as the threshold approach. Furthermore, the overall assessment is made after comparing the GDP per capita of those countries with the average world middle income GDP per capita. In the light of the middle-income trap definition of being stuck at 20% of per capita GDP of the USA, the per capita GDP of respective countries are compared against the per capita GDP of the USA. In addition, in line with the approach that takes the world average per capita income as the basis for middle income, the per capita GDPs are compared against the world average per capita GDP values, and relevant assessments are made.

How Does a Policymaker Rank Regional Income Distributions across Years? A Study on the Evolution of Greek Regional per Capita Income

This study examines the evolution of the regional per capita income from the perspective of a policymaker at the national level. To do that, it utilizes stochastic dominance analysis by including a utility function that expresses the “regional inequalities aversion” level of the policymaker. In this way, the analysis indicates how the policymakers rank income distributions according to their primary policy objectives and more specifically, GDP growth and diminishing of income inequalities. Data refer to the per capita GDPs of the Greek prefectures during the period 2000–2017, in real terms. The estimation of certainty equivalents provides a numeric index of preference among regional income distributions according to the policy objectives mix. Results indicate that the period 2000–2017 is characterized by different patterns of regional income evolutions. Overall, there is no regional convergence from year 2000 to 2017, while the evolution of regional income does not follow a constant path. The analysis provides thoughtful insights into the way that different policy targets and preferences can affect the relevant ranking of income distributions. In a certain level of policymakers’ “regional inequalities aversion”, a balance between economic growth and diminishing of regional inequalities targets is assumed. Apart from a useful tool in economic research, this quantification approach can also be utilized in policy design for setting more appropriate policy targets, based on the preferences of policymakers at the national level.

The High Spread of COVID-19 in the Context of Demographical, Economical and Socio-Cultural Context. A Cross-Country Analysis

Our analysis intends to bring some explanations for the high level of spread and extend of this disease. Our sample consists of worldwide countries affected by the spread of the new coronavirus disease and the paper uses the data available for all the considered variables (on March 20th, 2020) to the date of our research. We find clear evidence that population aged 65 and above is directly related to the number of COVID-19 confirmed cases and population density is also a favouring factor of the disease. Our estimations also prove that so far higher developed nations with increased per capita GDPs have been the most affected ones. The individualistic cultural trait also puts countries at risk. This study’s addressability is wide, from regular people to top policymakers, through their common goal of limiting this pandemic and all the negative effects it brings along.

Do Provincial Forest Cover Changes Follow The Same Path in China? Evidence From 29 Provincial Regions During 1978–2013

ABSTRACTChina has undergone forest transition at the national level during the past decades. Previous studies, which have used econometric models with restrictive assumptions of slope homogeneity across provinces, might present statistically biased results on provincial forest cover change. This paper aims to examine whether provincial forest cover changes follow the same path in China by using an up-to-date panel data on forest cover rates for 29 provincial regions from 1978 to 2013 and an econometric model allowing for slope heterogeneity across provinces. Empirical results suggest that forest cover changed along U-shaped curves in most provinces, but there is no “one size fit all” curve for these provinces, whose forest cover rates at the forest transition point ranged from less than 1% to more than 40% and per capita GDPs varied from 2,114 CNY to 28,403 CNY (in 2013 CNY). In future study, both similarities and differences in forest cover change across provinces should be taken into account, main provincial contributors of national forest cover change needs to be identified, and an extended model that incorporates more explanatory variables affecting deforestation, reforestation or afforestation should be adopted to comprehensively investigate the mechanism underlying forest cover change in China.

Determinants of Route Presence in the EU Airline Industry

This paper investigates the determinants of airlines' route presence in the single EU aviation market by estimating two probit models - one for full-service airlines and one for low-cost carriers - which specify the presence (or absence) of an airline's service on the route as a function of its airport presence measures, the competition it faces from other airlines, and general route characteristics. The results point to the existence of dominant-firm advantages, domestic-firm privileges, and substantial airport-facilities-related barriers to entry in the EU airline industry. They further indicate that served routes are characterized by relative time efficiency of air travel (in comparison to car travel), large endpoint cities' populations as well as per capita GDPs; and that competitive effects between full-service and low-cost airlines are asymmetric.

Models of economic growth and development in the context of human capital investment – the way forward for Africa

The economic literature ever since the dawn of modern economics has been much preoccupied with the issue of economic growth. Economic growth has also been understood to establish the conditions for economic development. The better-known models of economic growth such as the Lewis, Rostow, Harrod-Domar, Solow, and Romer growth models are discussed. The discussions apply contextually to the problematic issue of growth and development in Africa. It is argued that a very necessary condition for growth and transformational development in Africa is heavy investment in human capital. It is pointed out that countries that invest much human capital to produce highly educated populaces usually reap the benefits of such in terms of high per capita GDPs, regardless of the levels of their technological and industrial output. Countries like New Zealand, Iceland, and Denmark offer evidence of this. Models of African development such as the Lagos Plan of Action in terms of the whole continent are discussed within the context of existing impediments to such progress. Keywords: economic growth, economic development, human capital, growth models

Global Innovation and Knowledge Management Practice in Small and Medium Enterprises (SMEs) in Turkey and the Balkans

In today's changing world innovation management is becoming one of the key drivers for change and competitive advantage within industry. SMEs need to respond rapidly to these emerging changes so as to fulfill their customer needs more rapidly. The key component of a knowledge economy is a greater reliance on intellectual capabilities than on physical inputs or natural resources. We provide evidence drawn from patent data to document and upsurge in knowledge production and show that this expansion is driven by the emergence of new industries. Economic and political relations between Balkan countries and Turkey are so important that their common socio-cultural values come from their history. Therefore, Turkey and Balkans have not stepped into knowledge economy yet. In order to achieve this, they have to accomplish their economy and should not miss the importance of the knowledge economy. In this context, the Balkans has always been at a crossroads of different cultures and civilizations, where different religions and people have existed side by side. Economically, the Balkan states are relatively small entities. Balkan countries are at different levels of democratic transformation and their per capita GDPs range from less than 2000 Euro to around 7000 Euro. The purpose of this article is to investigate knowledge management practice in Turkey and the Balkans. Knowledge-based economic approach becomes the main development leverage for the global economy that a challenge for these regions is realizing the ‘new value’ of knowledge.

Quality of Government and Living Standards: Adjusting for the Efficiency of Public Spending

It is generally acknowledged that the government’s output is difficult to define and its value is hard to measure. The practical solution, adopted by national accounts systems, is to equate output to input costs. However, several studies estimate significant inefficiencies in government activities (i.e., same output could be achieved with less inputs), implying that inputs are not a good approximation for outputs. If taken seriously, the next logical step is to purge from GDP the fraction of government inputs that is wasted. As differences in the quality of the public sector have a direct impact on citizens’ effective consumption of public and private goods and services, we must take them into account when computing a measure of living standards. We illustrate such a correction computing corrected per capita GDPs on the basis of two studies that estimate efficiency scores for several dimensions of government activities. We show that the correction could be significant, and rankings of living standards could be re-ordered as a result.

Quality of Government and Living Standards: Adjusting for the Efficiency of Public Spending

It is generally acknowledged that the government’s output is difficult to define and its value is hard to measure. The practical solution, adopted by national accounts systems, is to equate output to input costs. However, several studies estimate significant inefficiencies in government activities (i.e., same output could be achieved with less inputs), implying that inputs are not a good approximation for outputs. If taken seriously, the next logical step is to purge from GDP the fraction of government inputs that is wasted. As differences in the quality of the public sector have a direct impact on citizens’ effective consumption of public and private goods and services, we must take them into account when computing a measure of living standards. We illustrate such a correction computing corrected per capita GDPs on the basis of two studies that estimate efficiency scores for several dimensions of government activities. We show that the correction could be significant, and rankings of living standards could be re-ordered as a result.

Creative destruction and firm-specific performance heterogeneity

Traditional U.S. industries with higher firm-specific stock return and fundamentals performance heterogeneity use information technology (IT) more intensively and post faster productivity growth in the late 20th century. We argue that this mechanically reflects a wave of Schumpeter's creative destruction disrupting a wide swath of industries, with successful IT adopters unpredictably undermining established firms. This validates endogenous growth theory models of creative destruction and suggests intensified creative destruction as explaining findings associating greater firm-specific performance variation with higher per capita GDPs, economy growth rates, accounting standards, financial system development, and property right protection.

Regional productivity and relative prices dynamics: the case of Italy

In this paper, we study the cointegrating space spanned by Italian regional relative prices and per capita GDPs. To this end, we combine panel data with vector error correction model estimation in an innovative approach which is still under development. The results are interesting: regional prices, which seem to persistently deviate from the law of one price (PPP), cointegrate with relative per capita GDPs. The estimated elasticity is not consistent with the Balassa–Samuelson hypothesis but is closer to supporting the classical supply-demand schedule. Weak-causality testing gives further details on linkages between the real and nominal side of Italy’s regionally diversified economy. Homogeneity of the coefficients, lacking at a national level, can be recovered at a more disaggregated macro-area level.

EU Enlargement and the EMU

This paper investigates empirically the extent to which the ten new EU countries are ready to join the European Monetary Union (EMU). Using France and Germany as a benchmark, we assess the prospects of successful EMU participation based on common trends analysis of the nominal convergence criteria as well as on real exchange rates and real per capita GDPs. The empirical results indicate that the new EU countries are partially ready to join the eurozone, and need further adjustments in their government policies to be fully prepared for joining the EMU.

Towards a policy model for climate change mitigation: China's experience with wind power development and lessons for developing countries

China has created a policy path to alleviate the pressure on carbon dioxide emissions. As other developing countries with rising per capita GDPs are emerging as important greenhouse gas emitters, the experience of China holds important lessons. In order to mitigate the reality of climate change, developing countries need carefully to assess appropriate policy models for renewable energy development. This article contains an analysis of the Chinese policy path and impact on the speed and benefit of domestic wind turbine installations. It is found that policy-makers have faced a critical trade-off between “fast-track” cutbacks on fossil energy sources through wind power development and “slow-track” wind power installations through development of a local manufacturing industry. China's choice of the slow-track model has proved constructive with the largest potential for CO 2 reductions. The article identifies China's ability to coordinate policies for supply and demand as an inevitable factor for the success of the model. The immediate value of this analysis is to the benefit of developing countries' future choice of policy model. Policy-makers in emerging economies that wish to develop renewable energy sources have to take into account the institutional, manufacturing and wind resource foundations of their respective countries. The article concludes that a majority of developing countries may have to look towards a fast-track policy model. However, the larger emerging economies with manufacturing capabilities and strong wind resource endowments could realize a greater part of the potential for emission reductions through the slow-track model of wind energy development.

Convergence among five industrial countries (1870?1994): Results from a time varying cointegration approach

In this paper, we check the hypothesis of a time varying cointegration relation between four industrial countries’ per capita GDPs and US per capita GDP on the period from 1870 to 1994. Park and Hahn (1999) give the methodology. Results confirm the hypothesis of time evolving cointegration in all cases. Tests on the parameters of these cointegration relations show that, from the 1980’s onwards, we can accept the hypothesis of stochastic convergence between France, Germany and Japan, on one hand, and the United States on the other.

Economic Convergence in the European Union

Starting with the Treaty of Rome (1957), the European Union adopted common policies to promote “harmonious economic development and balanced expansion.” The paper investigates how successful such policies were, by examining whether there was economic convergence of the real per capita GDP in the EU. Two measures of convergence are employed. The first is σ, which is based on the cross standard deviation of the real per capita GDPs of the EU countries; the second is β convergence based on the neoclassical growth model. Both σ and β were estimated using EU data for the period 1960-1995. The empirical findings support the hypothesis of economic convergence within the EU except for the 1980-85 sub-period where weak divergence was indicated.

The Expanding Global Income Gap: How Reliable is the Evidence?

Employing exchange rate determined per capita GDPs, the paper demonstrates a very sharp increase in global income inequality. In 1960, the gap between country groups representing the poorest & rich ...

Distinguishing between trend-break models: method and empirical evidence

We demonstrate that in time trend models, the likelihood-based tests of partial parameter stability have size distortions and cannot be applied to detect the changing parameter. A two-step procedure is then proposed to distinguish between different trend-break models. This procedure involves consistent estimation of break dates and properly-sized tests for changing coefficient. In the empirical study of the Nelson-Plosser data set, we find that the estimated change points and trend-break specifications resulting from the proposed procedure are quite different from those of Perron (1989, 1997), Chu and White (1992), and Zivot and Andrews (1992). In another application, our procedure provides formal support for the conclusion of Ben-David and Papell (1995) that real per capita GDPs of most OECD countries exhibit a slope change in trend.

High-Rise Homes for the Ancestors: Cremation in Hong Kong

ABSTRACT. A massive, voluntary shift to cremation has taken place in Hong Kong over the past forty years. The provision of facilities by the colonial government and private organizations began with niche walls in existing cemeteries. These were soon supplemented by sizable buildings known as columbaria. The largest and most recent columbarium, completed in 1996, provides 49,884 niches, each of which can hold at least two sets of ashes. Designing columbaria that are functional, sensitive, and culturally specific provides a fascinating challenge to architects. This article contrasts the conservative response of the public sector with the more expressive solutions of private providers. Keywords: burial, cemeteries, columbaria, cremation, fengshui, Hong Kong. Hong Kong has experienced a quiet revolution in burial practices since the 1950s. The changes are the result of the growing acceptance by Hong Kong's populace of an official strategy, adopted in the 1960s, to encourage cremation by providing and subsidizing the necessary infrastructure and services -- crematories and columbaria -- so that cremation is no more expensive than coffin burial (Lee 1988a, 1988b). Today Hong Kong's many large columbaria are striking buildings, the largest of which have offered architects a complex challenge (Figure 1). Columbaria, where cremains are stored in niches that accommodate the remains of an individual, a couple, or a family, are immensely important to the families concerned. They are the setting for congregations of huge crowds on the public holidays of Qingming and Chongyang, the Gravesweeping Festivals, when relatives pay their respects to their deceased forebears. In the ancient culture of China, where codified beliefs about death can be traced back to the texts of Confucius (551-479 B.C.) and earlier, modern columbaria seem to represent a totally new cultural artifact. Furthermore, in few modern cities other than Hong Kong could provisions for cremains be so architecturally striking. Where else could the departed be so closely integrated, so intimately proximate, with the burgeoning residential, commercial, and industrial quarters of the city? And where else could these ancestors be so thoroughly incorporated into the pattern of the year, what with the Gravesweeping Festivals hooked into the public holiday cycle? Hong Kong's society and economy have been transformed since the end of World War II, and the adoption of columbaria as the major means of providing for the dead is part of this transformation. A tiny colony of 1,095 square kilometers that was essentially an entrep[hat{o}]t in 1946, Hong Kong became first a manufacturing center and then, with the removal of most manufacturing to mainland China after Deng Xiaoping's open door policy, an international center of business and finance. Whereas the population in the early postwar decades comprised, in the main, poor and poorly educated refugees from villages and towns -- albeit with a significant number of wealthy city entrepreneurs -- the last two generations of Hong Kong residents have experienced a Western -- style education and a modern, technology-based economy. An annual growth rate in gross domestic product (GDP) of more than 7 percent in the two decades before 1997 has resulted in one of the highest per capita GDPS in the world (Information Services Department 1997, 48). Traditional beliefs that were widespread among the early wave of immigrants from China in the 1950s have thus faced a powerful challenge. These traditional beliefs persist, however, and no more so than where death is concerned. Fengshui -- essentially a pseudoscience that provides a guide for where and how to provide homes for the living and homes for the dead -- remains a powerful construct in Hong Kong, as in other overseas Chinese communities (Needham 1956). It has proved insuppressible in the People's Republic of China itself (Bruun 1996; Teather and Chow 1999). …

Equilibrium real exchange rates: closed-form theoretical solutions and some empirical evidence

This paper generates closed-form theoretical solutions for the relationships among the real exchange rate, relative per capita consumption, and relative wealth in a stochastic dynamic general equilibrium model of two countries' representative consumers. The solutions offer insight into the robust cross-sectional relationship between relative per capita GDPs and relative national price levels established in Kravis and Lipsey (1983, 1987, 1988) in a manner consistent with equilibrium exchange rate theories and the productivity-differentials model of Balassa (1964) and Samuelson (1964). Application of panel data from Summers and Heston (1988) to the model's structural equations yields economically-plausible estimates of the elasticity of intertemporal substitution, the relative importance of nondashtradables in consumption, and the rate of time preference in several OECD countries relative to that in the United States.