Explanation Of Economic Growth Research Articles

Analysis of the Regional Economic Structure in Mexico (2019-2021)

The objective of this research is to analyze the behavior of the dynamism and distribution of the economy in the regions of Mexico in the period 2019-2021. A brief explanation of economic growth and economic structure is provided, as well as the importance of territorial analysis for planning development strategies in the territories. The territorial analysis techniques applied in this work and the methodology for their implementation are explained. The work is based on the study of the dynamics and structure of the economy based on the "gross value added" indicator, which allows for measuring the contribution made by the different sectors in the municipalities. As a result of the research, the main economic activities within the regions of Mexico and those processes of structural change that have favored the development of the regions are identified. The most lagging sectors and the municipalities whose economic structure does not favor the dynamics demanded by their economic development are pointed out. Finally, a set of conclusions is reached that can be used to define strategies and public policies aimed at promoting investment and local economic development management.

ESSENTIAL IMPORTANCE OF KNOWLEDGE IN NEW EXPLANATIONS OF KEY DRIVERS OF ECONOMIC GROWTH

Knowledge commercially valorized into innovation has always played an important role in economic, and more broadly in social development. It occurs in various forms of expression and can range from highly abstract to very applicative. It is understandable that there is a wide range of knowledge between the aforementioned extremes, but in general it can be stated that all forms of knowledge have a pronounced role in the technological and economic development of countries. With the development of globalization during the last decades, the claim that knowledge is of essential importance in starting economic growth has become especially relevant and is directly related to the affirmation of so-called. new growth theories. For theorists of this direction, the possibility of manifesting non-declining returns of production factors at the aggregate level is quite realistic, primarily due to the growing application of knowledge as the primary driver of economic growth. Also, one of the conceptual starting points for endogenous explanations for growth is the view that the increase in knowledge funds is the result of purposeful decisions of economic actors and not some spontaneous activity. Thus, at the heart of the new explanations of economic growth is the view that knowledge, thanks to the properties of the unlimited growth factor, has an essential significance in its generation. Pointing to the growing importance of market valorization of knowledge into applicable technological procedures in the process of generating economic progress of countries and regions, new explications of the physiology of economic growth created at the end of the previous century paved the way for the emergence of knowledge economy. The knowledge economy is formed and expanded thanks to the resource of knowledge when it is not possible to replace it with any other factor of production. Applied knowledge is commercially valorized in product and process innovations as well as in new forms and methods of organization and forms of production management in most economic sectors, and not only in those directly related to the development of information and communication technologies. The policy of innovation, which unites scientific, technological and industrial policy into a single whole, has become an unavoidable means of stimulating economic growth g great efforts to increase the innovation of the economy, especially in the implementation of their own economic and improving national competitiveness. Recent experience at the global level shows that countries are makindevelopment strategies. In general, these development strategies are based on the messages of the new growth theory, which is based on views on the decisive role of knowledge in shaping modern economic trends. The new theory of growth claims that technological progress is the result of economic activity. In previous explanations of growth, technology was taken for granted, not as the end result of market forces. The new growth theory seeks to internalize technology into a model of market functioning. She points out that, unlike physical objects, knowledge and technology are characterized by growing yields, which start the growth process. New explanations for growth recognize the essential importance of knowledge as a driver of economic dynamics. Since knowledge can be endlessly shared and reused, it can be accumulated without limitation. It is not subject to depreciation or reduction during use. Instead, increasing the income generated by the use of knowledge generates economic growth. The new growth theory helps to understand the current change from a resource-based economy to a knowledge-based economy. In other words, economic development that creates and disseminates knowledge is crucial for the growth of countries, communities and individual firms.

Mathematical economics in the explanation of economic growth in economies with endogenous and exogenous technological change

Economic growth is a function of the interactions between the different productive factors framed in the economic policy of an economy, in particular, it can be expressed in terms of labour force, productive resources (land, capital) and technology, among others. The present work pretends to approximate a model to explain the economic growth in developing economies, for which a model is proposed that explains this growth in function of the referred factors; then production is proposed in function of capital and work and two models are adjusted, one with exogenous technological change and the other that involves technological change in an endogenous manner. The model is developed with a production function with constant substitution elasticity so that it is applicable to both developed and developing economies, since it is to be expected that in developed economies the substitution elasticity is unitary, which would lead to a Cobb-Douglas-type production function, but it is very probable that in incipient economies the function with constant substitution elasticity better reflects the relationship between production factors and economic growth. The research allows the development of the corresponding mathematical model in each case, the economic and mathematical foundations of each model are presented and validated according to economic theories. The behaviour of variables such as savings, investment, income, consumption, capital and their relationships in each model is analysed.

Economic development and the structure of cross-technology interactions

Most explanations of economic growth are based on knowledge spillovers, where the development of some technologies facilitates the enhancement of others. Empirical studies show that these spillovers can have a heterogeneous and rather complex structure. But, so far, little attention has been paid to the consequences of different structures of such cross-technology interactions: Is economic development more easily fostered by homogenous or heterogeneous interactions, by uni- or bidirectional spillovers? Using a detailed description of an r&d sector with cross-technology interactions embedded in a simple growth model, we analyse how the structure of spillovers influences growth prospects and growth patterns. We show that some type of interactions (e.g., one-way interactions) cannot induce exponential growth, whereas other structures can. Furthermore, depending on the structure of interactions, all or only some technologies will contribute to growth in the long run. Finally, some spillover structures can lead to complex growth patterns, such as technology transitions, where, over time, different technology clusters are the main engine of growth.

Effects of energy production and CO2 emissions on economic growth in Iran: ARDL approach

This paper investigates the relation among energy production, CO2 emissions and economic growth of Iran with additional variables such as domestic and foreign investment, inflation, population density and agricultural land. Annual time series data is used for the period of 1971–2011 according to data availability. Our main results are as: (1) there is long run relationship among the variables. (2) CO2 emissions has positive relation with economic growth. (3) energy production has positive effect on the economic growth of Iran. (4) Domestic investment has more contribution than the foreign investment in the explanation of economic growth. (5) Speed of adjustment shows that system will move to equilibrium path quickly. Diagnostic tests confirm the perfectness of the model. DOLS and FMOLS shows the similar results. Further, variance decomposition and cholseky impulse response function also show similar findings.

The human capital and economic growth nexus: in East and South Asia

ABSTRACTThis study adopts a disaggregated regional focus to test for the human capital (HC)-growth nexus in selected nine Asian countries. It utilizes the Empirical Bayesian methodology which addresses not only the heterogeneity issue but it also utilizes the common structural priors of regional countries to yield ‘informationally’ efficient estimates of the impact of HC on the stock and levels of GDP. Various measures of HC are utilized to determine which of these produces a better explanation of economic growth in the two Asian regions. The study finds that primary and secondary education was more prominent in explaining the fluctuations of economic growth in East Asia, whereas tertiary and vocational education showed positive effects on economic growth in South Asia. Government expenditures on education were also found to positively affect economic growth in both regions. The results shed new evidence to establish that the differences in growth rates within East and South Asia are associated with differences in educational progression in the regions.

Are major canadian city-regions monocentric, polycentric, or dispersed?

ABSTRACTRelatively little research has explored spatial structure in modern major Canadian regions. Three common models are monocentricity, polycentricity, and dispersion, but these are not always mutually exclusive in the complex spatial structures of contemporary city-regions. Shifts between these models are discussed in the context of three explanations of economic growth and restructuring: accessibility, municipal competition, and globalization. All three explanations suggest a trend away from monocentricity. While this appears clearly in US cities, disagreement surrounds whether Canadian cities are following the same path. This study uses cross-sectional data from InfoGroup in 2011 to estimate the relative strengths of monocentricity, polycentricity, and dispersion for characterizing eight major regions. Results indicate that elements of each model are evident in all eight study regions, but each tends to dominate in different contexts. When focusing on Montreal, Toronto, and Vancouver, results imply that all three forces which guide spatial structure play a role and that job centers appear to play a particularly important structural role in larger regions.

The Italian Debate on the Aggregate Consumption Function: The Life Cycle Hypothesis versus Kaldorrs Theory (1960s-1970s)

This paper discusses the difficult acceptance of Modigliani’s LCH in Italy over the 60s and 70s and explains it by the economic and intellectual context. In particular, the paper examines connections between the LCH model and the Kaldorian consumption functions, its main competing theory in the explanation of economic growth, and the indirect involvement of Modigliani’s saving theory in the larger dispute on the capital theory. The strong influence that the Anglo-Italian school of thought exercised in the Italian theoretical and political debate in the 1960s and early 70s certainly contributed to prevent the acceptance of Modigliani’s LCH.

Analysis of the development strategy of late-entrants in Taiwan and Korea’s TFT-LCD industry

The strong and sustained growth performance over the last few decades of the emerging economies in Southeast Asia, including Korea and Taiwan, has stimulated an extensive literature. The ‘miracle’ explanation of economic growth in the Asian region is now discredited but the phenomenon remains the subject of several important economic debates in an extensive literature. These debates include the issue of whether there is a distinct Asian ‘model’ of growth, the extent to which their success marks the triumph of market-oriented solutions over government intervention and the sources of their competitiveness and productivity growth. This study examines the development strategy of late entrants in Taiwan and Korea’s TFT-LCD industry. It was suggested that Korea, under the full support of its government, tends to challenge the first mover in the TFT-LCD technology and compete with the frontier-Japan. On the other hand, Taiwan did not attempt to challenge the technology leadership in a confrontational manner, but focused on being a superior quick follower. In addition, the research paper also addresses the competitive strategies of both countries. The niche strategy for Korea can be attributed to global networking, production, investment, and innovation capability, while the niche strategy and the core competence of Taiwan’s TFT-LCD industry is mainly from system integration capability, quality, cost, and flexibility. The approaches of Taiwan and Korea may shed light on the strategies to be followed by developing countries when they seek to enter knowledge-intensive, high-technology sectors.

La restricción externa al crecimiento en México: 1988-2009

Este artículo muestra evidencia empírica acerca del modelo de Thirwall (1979) sobre la restricción de balanza de pagos al crecimiento para México. Thirwall establece que las variables relevantes en la explicación del crecimiento económico son las elasticidades ingreso de las exportaciones e importaciones y el ingreso del resto del mundo. <br /><br />Esta última variable se aproxima, en este trabajo, por el PIB mundial. Los resultados obtenidos, al analizar el periodo 1929-2009, sugieren la existencia de una relación de largo plazo entre el PIB de México y el PIB mundial sólo durante el periodo 1988-2009. La dirección de la causalidad entre el PIB mundial y el de México, como era de esperarse, va del primero al segundo de acuerdo con la dinámica del modelo de corrección del error estimado. <br /><br />No se encontró evidencia de que ambas variables estuvieran relacionadas en un periodo más amplio, lo cual puede atribuirse a que la economía mexicana estaba prácticamente cerrada hasta antes de la década de los ochenta. Esto difiere de lo encontrado en otras investigaciones en donde se utiliza el PIB de Estados Unidos como proxy del PIB del resto del mundo.

Thirlwall's Law and the Gaps Model: A Unified Model

This article presents a unified model of the two main demand-based explanations of economic growth: Thirlwall's law and the two-gaps model. It is shown that, with certain specifications, the external gap is equivalent to Thirlwall's law with capital movements. The unified model is expressed in rates of growth and is useful to explain mainly short term growth in developing countries. Also, some policy implications are derived from the results.

Preferences, Institutions and Politics: Re-Interrogating the Theoretical Lessons of Developmental Economies

David Kang, Crony Capitalism: Corruption and Development in South Korea and the Philippines (Cambridge University Press, 2002) Vivek Chibber, Locked In Place: State-Building and Late Industrialization in India (Princeton University Press, 2003) Yongping Wu, A Political Explanation of Economic Growth: State Survival, Bureaucratic Politics, and Private Enterprises in the Making of Taiwan's Economy, 1950–1985 (Harvard University Press, 2005)

Book Review: WU Yongping, A Political Explanation of Economic Growth: State Survival, Bureaucratic Politics, and Private Enterprise in the Making of Taiwan's Economy, 1950—1985.

Book Review: WU Yongping, A Political Explanation of Economic Growth: State Survival, Bureaucratic Politics, and Private Enterprise in the Making of Taiwan's Economy, 1950—1985.

The revolution that bit its own tail: how economic history changed our ideas on economic growth

The 1960s witnessed a revolutionary change in economic history, to such an extent that in less than ten years time, the discipline was hardly recognizable thereafter. The essentially literary-descriptive method that had characterized economic history since its very beginnings in the second half of the 19th century, gave way to rigorous quantitative testing of mathematically formulated hypotheses, and as a result a host of formerly generally accepted ideas suddenly and quite unexpectedly lost their credibility in academic circles. Although the revisions that were the result of this so called cliometric revolution had a major impact on our ideas on economic development, this methodological revolution remained almost unnoticed outside the realms of academic economic history, the reason for this being the nature of the revolution itself. Suddenly, economic historical articles in professional journals became more or less unintelligible for the interested layman, as they were cast in a language that was directly derived from highly specialized fields of study, such as neoclassical economic theory and econometrics. The revolution that bit its own tail explains in terms understandable for non-specialist readers what was essential in the cliometric revolution and in what ways it changed our ideas on economic development. The book addresses itself in the first place to students in history and economics, but is also an indispensable guide for everyone who is engaged in what is one of today's most pressing problems: The increasing inequality in wealth between rich and poor countries, or, stated in more formal terms: the explanation of economic growth, stagnation and decline.

A Political Explanation of Economic Growth: State Survival, Bureaucratic Politics, and Private Enterprises in the Making of Taiwan's Economy, 1950-1985. Yongping Wu

Publishers details for: A Political Explanation of Economic Growth: State Survival, Bureaucratic Politics, and Private Enterprises in the Making of Taiwan's Economy, 1950-1985, by Yongping Wu, Cambridge: Harvard University Asia Center, 2005. xx + 410 +[xi] pp. US$49.50/ 31.95/ 45.60 (hardcover).

Introduction to the inaugural issue by the Editor-in-Chief

Major shifts in thinking among economists and other social scientists in recent years have prepared the ground for the launch of the Journal of Institutional Economics. Within economics, for example, after a period of neglect from the earlier to the later decades of the twentieth century, the study of the nature and role of institutions has become a central topic. Explanations of economic growth and development used to focus on inputs, production functions, and outputs, often neglecting the institutional structures that constrain or empower individuals, and frame their incentives and disincentives. Accordingly, for a long time the firm was treated as a ‘black box’, with little regard to the structural determinants of its existence, boundaries, and performance. However, the study of the firm changed dramatically in the 1970s when Oliver Williamson, building on the earlier work of Ronald Coase and others, opened the black box to investigate the firm as an institution. Similarly, in a pioneering series of works, Douglass North has investigated the role of institutions in the historical development of the modern capitalism. There are many other examples of important achievements in this area, too numerous to mention here. The outcome is that institutions have become a central topic of analysis for economists.

Wachstum und endogener technologischer Wandel - Eine Kritik des Wachstumsmodells von Paul Romer aus der Perspektive der Evolutorischen Ökonomik

Zusammenfassung Seit mindestens zehn Jahren beobachten wir einen neuen Typus von Wachstumsmodellen, die für sich beanspruchen, Wachstum „endogen“ erklären zu können. Der Aufsatz analysiert die innere Logik eines der bekanntesten Modelle endogenen Wachstums: Paul Romers Beitrag „Endogenous Technological Change“. Obwohl Romers Modell einige Merkmale des technischen Wandels erfaßt, beispielsweise die Relevanz von Externalitäten und unvollkommener Konkurrenz, werden andere Aspekte vernachlässigt: Erstens, Unternehmer agieren nicht unter vollkommener Voraussicht. Zweitens, eine Zunahme der Forschungsaufwendungen impliziert keine Zunahme von Innovationen, und ein Mehr an Innovationen bewirkt nicht zwangsläufig mehr Wachstum. Drittens, die Geschwindigkeit und Richtung des technischen Wandels sind in hohem Maße von den institutionellen Rahmenbedingungen abhängig, d.h. der Wirtschafts- und Sozialordnung. Der Beitrag versucht zu zeigen, daß der technische Wandel eher als ein offener Prozeß interpretiert werden muß, der von Unternehmen angetrieben wird, die unter echter Ungewißheit handeln. Darüber hinaus sollten jene Faktoren stärker berücksichtigt werden, die sich einer leichten Formalisierung entziehen, wie zum Beispiel die Leistungsmotivation und Handlungskompetenz der Unternehmen und das System der Eigentumsrechte.

Why aren't countries rich?: Weak states and bad neighbourhoods

This article challenges a common viewpoint that the policy choices made by state leaders are central to explanations of economic growth. It argues that there are two possible flaws in this viewpoint. First, that state leaders have a free choice in policy decisions; second, that it is policies that in large part determine growth rates. Using a set of variables designed to capture the weakness of the policy autonomy of the state and possible non‐policy influences on growth rates, the article concludes that initial conditions are a better determinant of wealth and growth than free policy choice.

Evolutionary growth theory and forms of realism

In response to arguable failings in neoclassical explanations of economic growth, Nelson and Winter have offered the alternative of an evolutionary theory for enhanced explanatory power. In so doing they have introduced a distinction between 'formal' and 'appreciative' theory which has since been enthusiastically taken up by many. However, are Nelson and Winter's 'formalisms' really any different from a positivistic instrumentalism? In this paper, I reassess the fruitfulness of Nelson and Winter's formal theorising on economic growth and the genuineness of their realist credentials by drawing on recent developments in the philosophy of science, systematised under the heading of transcendental realism.

Asia‐Pacific Tiers of Change

This article starts by outlining five explanations of economic growth and four stages of economic development in the Asia‐Pacific region. the developed countries there include Japan, Australia and New Zealand. the ‘Asian tigers’ of Singapore, Hong Kong, South Korea and Taiwan form a top tier of post‐Japan industrialisers. A second generation of ‘tigers’ includes Malaysia in the vanguard, with Thailand and the PRC following. A third tier of industrialisers may include countries as diverse as Vietnam, the Philippines and Indonesia and, perhaps, the countries of the Indian sub‐continent. Such a classification provides a context for discussing various approaches to human resources and industrial relations issues in this article and the ones that follow.