Effects Of Capital Accumulation Research Articles

Thirlwall’s Law, Investment, Productive Chains and Domestic Markets

The aim of this paper is to apply the extended Thirlwall’s Law, which incorporates capital accumulation to explain China’s (1971 – 2022) and Mexico’s (1961 – 2022) output growth rates. We use the ARDL cointegration methodology to estimate their import demand functions. We get robust estimations and then calculate their long-run growth rates, which result very close to their actual values. We recommend changing the Mexican industrialization strategy to generate domestic productive chains and domestic industries to substitute import-goods and dynamize the domestic market. One limit of our paper is that we use aggregate variables, but it could be necessary to analyze the effects of exports and capital accumulation in the specific domestic industry subsectors. The originality lies in showing that China’s dynamism during the last decades is more related to its dynamic capital accumulation than to its dynamic growth rate of exports, whereas Mexico’s slow growth rate regime is more related to its low capital accumulation than to its high growth rate of exports.

Carbon pricing and aggregate macroeconomic performance in the Eurozone: a contribution to the climate policy debate using the EU ETS and Macroeconomic Performance Index

This article contributes to the carbon pricing debate by providing new evidence on the aggregate macroeconomic effect of the European Union Emissions Trading Scheme (EU ETS) in the Eurozone. To this end, a novel macroeconomic performance index is created to capture the overall economic performance of the Eurozone countries. The index is a weighted aggregation of key macroeconomic variables—GDP growth rate, inflation rate, employment rate, exchange rate, and long-term inflation rate—for the 19 member countries of the group. The effect of the EU ETS on this macroeconomic performance index is then empirically examined while controlling for the effects of physical capital accumulation, human capital accumulation and regulatory quality. A panel framework covering the period 2005–2022 is set up to achieve this objective and the relationship is examined using panel method of moments quantile regression with fixed effects, as well as fixed and random effects regressions of Driscoll and Kraay. A number of important revelations are made. Firstly, the behavior of the macroeconomic performance index constructed clearly reflects the economic reality of the Eurozone, with downward spikes visible in periods corresponding with the economic crisis of 2007–2009, the Eurozone debt crisis of 2010/2011, the aftermath of the financial crisis of 2016, and periods around the outbreak of the Coronavirus (COVID-19) pandemic. Hence, a case is made for the use of the macroeconomic performance index as a superior aggregate measure of the overall economic performance in empirical research. Secondly, a statistically significant negative effect of the EU ETS on aggregate macroeconomic performance in the Eurozone is confirmed. This shows that there are significant economic costs associated with the use of carbon pricing as a means of lowering pollution. Thirdly, the findings further show that the negative impact gradually decreases (in absolute values) from lower to higher quantiles. Overall, higher carbon prices cause greater economic disruption when macroeconomic performance is relatively poor but have less damaging effect when aggregate economic performance is relatively strong. Policy recommendations based on the study findings are also provided.

How does choice of residential community affect the social integration of rural migrants: insights from China

The construction of public space is a new and important way to integrate rural migrants into urban society. Existing studies mainly discussed the factors affecting the social integration of rural migrants from the micro-individual and macro-system levels. Still, they seldom analyzed the differences between rural migrants’ residential communities and the roles these differences play in their social integration, especially from the perspective of residential space. Based on the data of the 2014 China Migrants Dynamic Monitoring Survey, this paper systematically examines the impact of residential community selection on the social integration of rural migrants and its possible effects using OLS, 2SLS, CMP, omitted variable test method, and KHB mediating effect model. It is found that the choice of residential community has a significant positive impact on the social integration of rural migrants, and the social integration of rural migrants living in formal communities has increased by 2.44%-3.20%. To overcome the potential endogeneity problems and selection bias of the empirical model, the study further adopted an instrumental variable estimation approach, combined with the omitted variable method for robustness check; the results still revealed the positive effect of living in formal communities on the social integration of rural migrants. The heterogeneous results showed that living in formal communities has a greater effect on the social integration of women and older-generation rural migrants. The farther the migration range and the longer the residence time of rural migrants, the greater the effect of living in the formal community on their social integration. Further mechanism testing revealed that living in formal communities not only directly enhances the social integration of rural migrants but also indirectly improves their social integration through public resource allocation, human capital accumulation, social status screening, and social network expansion. The indirect effect of capital accumulation is even greater. Therefore, to accelerate the full integration of rural migrants into urban society and achieve real urbanization and citizenship, the study proposes that the government should scientifically plan the layout of rural migrants’ living space and the construction of supporting facilities.

Have countries accumulated enough capital? A non-parametric approach

ABSTRACT In this paper, we analyse the effect of capital accumulation on economic growth and verify whether countries have accumulated enough capital. We make use of panel data for 92 countries from 1965–2019, combined with intuitive robust non-parametric modelling based on linear programming. Our result indicates first that capital accumulation is important for economic growth. Second, we show that developing countries suffer from under-investment in capital, while developed countries have unexploited capacity. Therefore, to promote sustainable growth, developing countries need to implement policies to increase their capital stock. However, the situation of developed countries indicates that more capital accumulation is not the correct path for these countries, but better capital use is. Finally, we highlight the particular patterns of China and India and challenge our results by running three sensitivity tests. They confirm our early findings.

Relationship Between Human Capital and Income Distribution of a Developing Economy: Empirical Evidence From Ethiopia

Purpose: The purpose of this study is to examine the long-run effect of human capital accumulation on the income distribution of a developing economy such as Ethiopia. Study design: The study is based on time series data covering the period from 1980/1981 to 2019/2020. The autoregressive distributed lag (ARDL) bounds co-integration test and error correction model approach is employed as a method of econometric estimation. Findings: The bounds test revealed a significant and stable long-run equilibrium relationships exist between income inequality (Gini coefficient) and its dynamic regressors of human capital accumulation indicators as well as other explanatory variables. Results of the estimated long-run selected model indicated that secondary and tertiary education attainments as well as total fertility rate have a significant un-equalizing income distribution effect on the country’s economy at the conventional level of significance in the long run. On the contrary, primary education attainment of the labor force has a positive and statistically significant impact on the country’s distribution of income at the standard level of significance. On the contrary, the employment-to-population size ratio has a positive effect, but financial development and institutional and governance quality have an adverse effect on the income distribution of the country in the long run. With respect to the short-run error correction model result, a temporary disequilibrium level of income distribution in the previous period is corrected by approximately 0.9284 in the current period to bring back to a stable long-run equilibrium. Based on these findings, it is important to strengthen and improve the country’s education and health service system for those individuals who are marginalized and deprived from these levels of social services. Originality/value: A few empirical studies on the dynamics between human capital and income distribution have been conducted at cross-country using average years of schooling as a proxy measure of human capital. The novelty of this study is that it examines the relationship between human capital and income distribution at a single country level using the ARDL bounds co-integration and error correction model approach. Furthermore, human capital accumulation is proxied by both education capital (disaggregated by primary, secondary, and tertiary educational attainments) and health capital (life expectancy at birth and total fertility rate) in addition to other relevant explanatory variables for better estimation and policy implications. JEL classification B23, C22, I14, I24, O15

Spectral Shadows in Scientific Practice: Unveiling the Haunting Effects of Authorship and Scientific Capital Accumulation

Abstract This article weaves together the intricate realms of authorship and scientific capital within the context of the Tumor Bank at Mexico’s National Institute of Cancerology (INCan). As intellectual property paradigms continue to evolve, the notion of authorship emerges as an intriguing avenue for the dissemination of knowledge. This study employs ethnographic methods to investigate the multifaceted conflicts involving the ownership of biological samples, the authorship of research outputs, and scientific capital. In the context of INCan’s research setting, the discrepancies in sample distribution serve as a symbolic reflection of the scientific capital and influence exercised by researchers. In doing so, interviews with INCan researchers illuminate how intricate collegial and personal relationships and alliances are navigated in order to secure coveted samples. Within this intricate interplay, credibility and power dynamics intertwine, crafting a tapestry of considerable complexity shaping the nuanced dynamics of authorship within the academic sphere.

Labour protection, social security contributions and corporate innovation: evidence from China

PurposeAs China shifts from a “human capital demographic dividend” to a “demographic dividend” as a source of economic growth, this paper examines the influence of social security system improvement on enterprises efforts to attract talent and enhance innovation ability.Design/methodology/approachThis study uses a sample of Chinese listed firms from 2008 to 2019 to analyse the influences of social security contributions on enterprise innovation, and the mediating effect of human capital accumulation. The OLS, DID test, placebo test, 2SLS are used to test the research questions.FindingsThe authors find a significant positive correlation between social security contributions and enterprise innovation because social security contributions improve the accumulation of human capital, helping enterprises to attract talent, which in turn has a positive impact on corporate innovation. The positive correlation between social security contributions and enterprise innovation is more significant in private enterprises, STAR Market and GEM listed companies and labour-intensive enterprises.Practical implicationsThese findings provide a theoretical basis for the formulation of relevant policies and the current reform of social security collection in China. The findings also have practical significance for the sustainable development of China's economy given its ageing population.Originality/valueThis study provides a new perspective, that is, from the perspective of human capital accumulation, to discuss the impact of social security contributions on enterprise innovation, and enriches the relevant literature on the economic consequences of social security contributions and the influencing factors of corporate innovation.

Does Population Aging Affect Carbon Emission Intensity by Regulating Labor Allocation?

Carbon emission is the focus of global climate change concerns. Population aging changes the level of labor structure, which directly affects the industry adjustment and will also have a long-term impact on carbon emissions. Uncovering the complex association among population aging, labor allocation, and CO2 emission is crucial for developing effective policies for low-carbon and sustainable development in China. Therefore, this study aims to analyze whether population aging contributes to reducing carbon emission intensity by regulating labor allocation. Based on provincial panel data from 2000 to 2019, the Systematic Generalized Method of Moments (Systematic GMM) model and the Bias Corrected Least Squares Estimation with Nonsymmetric Dependence Structure (Bias Corrected LSDV) model are adopted in this study. The results show that nationwide as a whole, population aging objectively inhibits human capital accumulation and, to some extent, weakens its positive carbon emission reduction effect. Meanwhile, population aging helps to mitigate the increase in carbon emissions caused by the capital-labor endowment structure. Due to the dual impact of aging and population migration, the emission reduction effect of human capital accumulation is significant in the East. The brain drain in the central and western regions further inhibits the positive effect of regional human capital accumulation. Promoting the rationalization of population mobility nationwide, reducing the brain drain in less developed regions, and directing capital into technology-intensive industrial sectors are the core keys to achieving optimal labor allocation in an aging society. This will help China meet its carbon neutrality target on schedule.

The effect of foreign direct investment on capital accumulation in developing countries

ABSTRACT The purpose of this study is to examine whether foreign direct investments are a blessing or a curse for capital accumulation in developing countries. Data were collected for 16 developing countries over the period 2005–2018. An Arellano-Bover/Blundell-Bond dynamic panel estimation method was adopted to analyze the physical capital accumulation effect of foreign direct investments. Our analysis indicates that for every percentage increase in foreign direct investment inflows to developing countries, physical capital increases by 2.31 percent. In addition, a random-effect panel estimation was implemented to analyze the effect of foreign direct investments on human capital. For a one-percent increase in foreign direct investments, human capital increases by 2.38 percent. The results of our regressions show that not only the volume but also the type of foreign direct investment matters for capital formation in developing countries. Specifically, foreign direct investments in the secondary sector have a statistically significant positive effect on both physical and human capital. By contrast, foreign direct investments in the primary and tertiary sectors have a negligible effect. Our analysis suggests that developing countries would benefit from investing more resources in education and opening up their economies to attract foreign direct investments, particularly in the manufacturing sector.

Public Health Investment, Human Capital Accumulation, and Labour Productivity: Evidence from West Africa

Abstract The study of public health investment, human capital accumulation, and labour productivity are essential in formulating policies that drive economic development. This study examines the individual and interactive effects of public health investment and human capital accumulation and the interactive effect of human capital accumulation and financial opportunity on labour productivity in West Africa from 1992 to 2020, respectively. The interactive effect of human capital accumulation and financial opportunity has not been given any attention in the literature. The following findings are apparent in the study: One, public health Investment and human capital accumulation positively affect labour productivity in the short and long run. Two, the interactive effect of human capital accumulation and public Health Investment positively and significantly affect labour productivity in the short and long run. Lastly, the interactive effect of human capital accumulation and financial opportunity positively and significantly affects labour productivity in the short and long run. Hence, we suggest that economic policy be formulated to ensure that affordable healthcare and financial opportunity are available, together with human capital accumulation, to fast-track the normalization of the economy.

Green Paradox or Forced Emission Reduction-The Dual Effects of Environmental Regulation on Carbon Emissions.

In response to global climate change, China made a commitment about carbon emissions at the UN General Assembly. It will strive to achieve carbon peaking by 2030 and carbon neutrality by 2060. To help China successfully meet its carbon emissions targets this study examines the impact of environmental regulation on carbon emissions from a different perspective. Using panel data from 30 provinces in China as samples, this paper discusses the direct and indirect effect of environmental regulation on carbon emissions and explains the indirect process through four transmission paths: energy consumption structure, industrial structure, technological innovation, and foreign direct investment (FDI). The empirical results show that the direct effect of environmental regulation on carbon emissions presents an inverted U-shaped curve, it means that when the intensity level of environmental regulation is low, it mainly shows the green paradox effect, and with the continuous tightening of environmental laws, it turns into a forced emission reduction on carbon emissions. In addition, we found that under the constraint of environmental regulation conditions, the coal-based energy consumption is still the leading cause of carbon emissions; environmental regulations have contributed to the upgrading of industrial structure and technological advance, which indirectly play a positive role in carbon emission reduction. However, environmental regulation restrains the spillover effect and capital accumulation effect of FDI, which brings a specific degree of hindrance to technological progress and economic development, and is not conducive to carbon emission reduction. Therefore, we have made the following recommendations: China should make reasonable use of environmental policies to regulate carbon emissions according to the situation of each region, optimize the energy structure and increase the proportion of clean energy use, and improve the technology level of related industries to reduce carbon emissions by innovation.

The Production of Everyday Space for Workers: The New Village Movement in China, 1919–1936

Abstract The idea of a “new village” first emerged in the years 1919–20 and was widely discussed by Chinese intellectuals, who advocated for its humanitarian and social justice purposes and its goal of constructing a new society. This article focuses on the new village movement in China from 1919 to 1936, which was imagined and materialized by intellectuals, social reformers, and the Nationalist state in response to crises of capital accumulation, displacement of labor, and urbanization. New villages emerged as a worldwide sociopolitical response to exploitation and class antagonism—the worst effects of capital accumulation and the alienation of labor, under which the creation of everyday spaces for labor reproduction provided the key to constructing a new type of community for social transformation among migrant workers. Whereas the state and capital attempt to “pulverize” new villages into a manageable, calculable, and abstract grid, diverse social forces simultaneously attempt to create, defend, or extend spaces of social reproduction, everyday life, and grassroots control. Thus, the new village's anti-capitalism combined an eminently modern criticism of capitalism with the conservative recovery of an ideal rural community, in an attempt to overcome social inequality and the urban exploitation of the rural caused by capital accumulation.

Human capital accumulation and economic growth of Ethiopian economy

Economic theory, empirical studies and public policy have underlined the importance of the relationship between human capital accumulation and economic growth. Several developing countries have included human capital development as an integral part of their national development plans and have devoted huge financial resources as a cornerstone to promote economic growth. The purpose of this study is to examine the long-run effects of human capital accumulation on the economic growth of a developing economy using evidence from Ethiopia. The study employed the human capital theory of economic growth and the augmented Solow-Swan model as a theoretical framework, and the ARDL bounds co-integration and error correction mechanism for parameter estimation. Time-series data, covering the period 1980/81 to 2019/20, were employed to examine the long-run relationship between economic growth and its dynamic regressors of human capital indicators. The secondary and tertiary educational attainments of the labour force and life expectancy at birth have a significant positive effect on economic growth of Ethiopia, whereas primary education attainment and adult mortality rate have an insignificant negative effect. On the other hand, physical capital accumulation has positively contributed the country’s economic growth, but trade openness and external debt adversely affect it. Thus, it is suggested that the policymakers should strengthen the country’s institutional capacity while increasing the number of healthy members of the labour force that should also be equipped with quality-based educational attainments.

Can government venture capital guidance funds promote urban innovation? Evidence from China

AbstractDue to externalities and market failure, innovation activities are facing insufficient investment. Venture capital guidance funds (VCGFs) are an important policy implemented by China's government to guide private capital to participate in innovation and entrepreneurship activities, and it can have an important impact on scientific and technological innovation. Based on the panel data of 285 cities in China, this paper empirically analyzed the impact of VCGFs on innovation and its mechanism. VCGFs can significantly promote urban innovation and this role is sustained for three years following VCGF establishment. Further research shows that VCGFs do not have a direct impact on innovation but promote innovation by promoting the accumulation of innovative talent and capital, and the capital accumulation effect of VCGFs is the main path through which they promote urban innovation. Corruption is also a factor that restricts the effectiveness of an innovation policy. Thus, China's top‐down anticorruption campaigns can strengthen the ability of VCGFs to promote urban innovation. This paper opens the black box to show the mechanism through which VCGFs impact urban innovation, affirms the important role of the government in the regional innovation system, and clarifies the debate on government innovation policy.

The Heterogeneous Impacts of Human Capital on Green Total Factor Productivity: Regional Diversity Perspective

That human capital improves the efficiency of Green Total Factor Productivity has been established in research fields, but the heterogeneous effects of human capital on GTFP and its sustainable mechanisms are unclear. This study examines the effects of human capital accumulation, fiscal spending on education, and innovation on GTFP efficiency under spatial and temporal diversity. Employing panel data from 30 provinces from 2001 to 2018 in China, we analyzed the dynamic and static efficiency of GTFP in different regions by three-stage data envelopment analysis (DEA). The heterogeneous effects of human capital on GTFP were explored through Tobit regression. Results reveal that the average value of GTFP efficiency is an inverted U-shape and the presence of significant t geography differences. Human capital accumulation and fiscal spending on education have positive effects on GTFP efficiency; however, innovation negatively affects it. At the same time, marketization growth decreases the positive influence of human capital and education on GTFP efficiency. While, this effect was not observed regarding innovation, the implication of these results concerning the human capital heterogeneous effects of GTFP efficiency in a different geographic context. Establishing a fair and transparent system can reduce the endowments gap and effectively promote GTFP efficiency in developing countries.

Investigating the nexus among sulfur dioxide emission, energy consumption, and economic growth: empirical evidence from Pakistan.

Developing countries like Pakistan majorly depend on fossil fuels for achieving higher economic growth but have sloppy environmental rules and regulations in order to attract foreign direct investment (FDI). As a result, energy consumption is considered the primary cause of environmental degradation. Besides CO2 emission, environmental degradation is also associated with emission of sulfur dioxide (SO2). The purpose of this study was to investigate the relationship among SO2 emissions, energy consumption, economic growth, and FDI in Pakistan. By applying the 3SLS method, study has estimated the scale effect, composition effect, and technique effect. The scale effect and technique effect findings indicated that capital stock, FDI, and SO2 emissions all had a significant impact on GDP. When the capital accumulation effects of FDI were considered, the relationship between FDI and stock of capital was found to be positive. According to the technique effect results, FDI, population density, and energy consumption were all significantly related to SO2 emissions. The study came to a conclusion with significant policy implications.

NEXUS BETWEEN EDUCATIONAL ATTAINMENTS AND CRIMINAL BEHAVIOR: A CASE STUDY OF PRISONS IN PUNJAB, PAKISTAN

The main objective of this research was to investigate the effect of intergenerational human capital accumulation on their criminal behavior if it existed. A multistage sampling technique was used for the selection of a sample of 400 respondents who have ever committed a crime and residing in district jails of Punjab, Pakistan. A well-designed interviewing schedule was used to collect information from these respondents. Descriptive analysis shows that majority of the respondents were young and married. Around one-fourth of the respondents were illiterate and about the same proportion had primary level education. The statistical analysis revealed that uneducated respondents had 40 percent more chances to commit the crime as compared to the educated ones. Thus, the set hypothesis that education is significantly affecting to discourage the criminal behavior in the society is upheld. Key Words: Intergenerational, Human capital accumulation, Criminal Behavior, Punjab, Crime, District Jails of Punjab

Urbanization and haze-governance performance: Evidence from China's 248 cities

Using a panel data set of 248 Chinese cities at the prefecture level and above from 2004 to 2013, this study employs the data envelopment analysis (DEA) method based on a non-angular and non-radial directional distance function (DDF) combined with the overall technology, to measure the haze-governance performance. Furthermore, we construct a composite index based on the nighttime light (NTL) data to reflect the urbanization level, and use a spatial Durbin model (SDM) to investigate the effect and its mechanism of urbanization on the haze-governance performance. The results show a significant U-shaped curve relationship between urbanization and haze-governance performance for the samples of both the whole country and sub-regions. When urbanization exceeds a certain critical level, urbanization is conducive to the improvement of haze-governance performance. The proportion of cities exceeding the critical level in eastern China is higher than in central and western China. The mechanism analysis reveals that urbanization exerts a U-shaped influence on haze-governance performance via the effects of industrial structure, technological innovation, and human capital accumulation. In addition, as for the whole country, urbanization in neighboring regions also has a U-shaped spatial spillover effect on local haze-governance performance; however, the corresponding critical value is relatively small. In eastern China and in central and western China, urbanization in neighboring regions exhibits one-way positive and negative effects on local haze-governance performance, respectively.

Output, investment and productivity: the Italian North–South regional divide from a Kaldor–Verdoorn approach

ABSTRACT This paper elaborates on the Italian North–South divide by endorsing a Kaldor–Verdoorn perspective. To assess the endogenous relationship between labour productivity, capital accumulation and output growth, panel structural vector autoregressive (P-SVAR) modelling is applied to 1980–2017 data on Italian macro-regions and areas. Findings show that territorial disparities exist in both the Verdoorn and the capital accumulation effects throughout the country. Output growth has a larger effect on productivity in the Centre–North, while the investment effect is stronger in the South. That stresses the relevance of public effort in stimulating both output and investment – therefore, productivity – especially in economically depressed areas.

How can Public Policies Change the Accumulated Disadvantage of Individuals? Based on the Perspective of Education Poverty Alleviation

Education poverty alleviation is one of the important development strategies during the 13th Five-Year Plan period, and it is a precise poverty alleviation method. So far, China has implemented a number of education poverty alleviation projects, which have significantly improved the education level of individuals, but there is a lack of scientific evaluation on the effect of macro projects on micro individual human capital accumulation. Based on the first phase of National Compulsory Education Project in Poor Areas （hereinafter referred to as the “compulsory education project”） from 1995 to 2000, this paper uses the follow-up survey data of China Labor-force Dynamics Survey （CLDS） in 2012 and 2014 to identify the specific county-level unit where the policy is implemented according to the unpublished county-level code, so as to evaluate the long-term human capital accumulation effect of education poverty alleviation on micro-individuals. In addition, this paper argues that the differences in the length of education beyond the compulsory stage, the quality of education and the beneficiary groups are the internal mechanism of the compulsory education project to promote the continuous improvement of individual education level, which realizes the original intention of public policies to change the accumulated disadvantage of individuals. On this basis, through analyzing the internal mechanism of education and the impact of education on long-term income, this paper further discusses the impact on the future economic status of workers. The study finds that: （1） The compulsory education project makes up for the lack of universal compulsory education years under the Compulsory Education Law, increases the opportunities for students in poor areas to receive education, increases the education years of individuals in poor areas on an absolute and relative level, and significantly reduces the phenomenon of dropping out of school and delaying reading. In this sense, the compulsory education project has realized the original intention of the education poverty alleviation policy. （2） However, the impact of the implementation of the compulsory education project on male and female workers has some differences. After the implementation of the project, there is still a large gap between the investment and expenditure of education at the per capita level, and the popularization quality of this compulsory education is relatively poor. Most workers do not further receive education above junior high school, resulting in relatively poor professional skills in the labor market. （3） The policy does not promote the workers to continue to receive education beyond the compulsory education stage, resulting in relatively low wage income and slow growth rate. With the continuous improvement of the average social education level, the positive effect of the project is gradually declining. Further improving the education level of poor areas has become an important content of targeted poverty alleviation in the new period. This paper puts forward two plans to alleviate the problem that the policy dividend of compulsory education project is weakening day by day, and the role of changing the accumulated disadvantage of individuals is also gradually decreasing: （1） Further bringing senior high school education into the compulsory education stage, and promoting the improvement of individual education years by increasing the legal years of education. （2） Continuing to issue continuing education policies for poor areas, and encouraging individuals to continuously improve their education level and professional skills. At the same time, continuing to implement the dynamic monitoring of education projects to ensure the effective implementation of relevant policies.