Growth In OECD Countries Research Articles

Tourism development and economic growth: A closer look at panels

This paper applies the new heterogeneous panel cointegration technique to re-investigate the long-run comovements and causal relationships between tourism development and economic growth for OECD and nonOECD countries (including those in Asia, Latin America and Sub-Sahara Africa) for the 1990–2002 period. On the global scale, after allowing for the heterogeneous country effect, a cointegrated relationship between GDP and tourism development is substantiated. It is also determined that tourism development has a greater impact on GDP in nonOECD countries than in OECD countries, and when the variable is tourism receipts, the greatest impact is in Sub-Sahara African countries. Additionally, the real effective exchange rate has significant effects on economic growth. Finally, in the long run, the panel causality test shows unidirectional causality relationships from tourism development to economic growth in OECD countries, bidirectional relationships in nonOECD countries, but only weak relationships in Asia. Our empirical findings have major policy implications.

Regulation and Productivity Performance

The paper reviews theory and evidence on the ways in which regulation affects productivity outcomes. In a context of endogenous growth, it is argued that traditional measures of compliance costs miss the potentially most important impacts of regulation on productivity which occur through changes in incentives to invest and to innovate. Recent attempts to measure cross-country variations in the strength of product-market and employment regulation are considered and some weaknesses are highlighted. Nevertheless, consistent with endogenous growth models, there appears to be quite strong evidence that regulations which inhibit entry into product markets have an adverse effect on TFP growth in OECD countries. Although there are some discrepancies in the evidence, on most measures the UK appears lightly regulated relative to France and Germany, and this may have contributed to a reduction in the recent past in the UK's TFP gap.

Military Draft and Economic Growth in OECD Countries

Economic theory predicts that military conscription is associated with static inefficiencies as well as with dynamic distortions of the accumulation of human and physical capital. Relative to an economy with an all-volunteer force, output levels and growth rates should be lower in countries that rely on a military draft to recruit their army personnel. For OECD countries, we show that military conscription indeed has a statistically significantly negative impact on economic performance.

Growth differentials in OECD countries: some reflections

This note briefly addresses two questions related to growth performance in the OECD area, namely: 1) why have so few OECD countries seen an increase in productivity related to investment in Information and Communications Technology (ICT); 2) how does the environment for firm creation affect growth in OECD countries? The note points to some recent empirical work with firm-level data on these issues and suggests that further cross-country research with such data could be very helpful.

Productivity growth in OECD countries: A comparison with Malmquist indices

We utilize two alternative indices to measure productivity growth for all but two OECD countries. First, we employ a Malmquist productivity index without considering the existence of hazardous by-products of production processes. To address the shortfalls of this index, we construct an alternative Malmquist–Luenberger productivity index and find that the Malmquist index underestimates the productivity growth. Finally, we investigate the effects of an international protocol on reducing global emissions and country-specific effects on Malmquist–Luenberger productivity measures. Journal of Comparative Economics 33 (2) (2005) 401–420.

Finance-Growth Nexus and the P-bias: Evidence from OECD Countries

Recent studies provide new empirical evidence confirming that financial development is linked to economic growth in OECD countries. Using new dynamic panel regression techniques, these appraisals indicate that within the group of high-income countries stock market size as a measure of financial advancement contributes significantly to overall economic activity. Applying the same advanced techniques, this paper questions this conclusion by showing that the findings of these studies seem to be not only not robust with respect to adding new observations but also likely to be plagued by a severe price bias which belittles the information content of the used financial indicator (stock market capitalization). We provide evidence that anticipative price effects (i.e. expectations of future growth, reflected in current stock prices) may be driving the statistical relationship between stock market activities and economic growth in high-income countries to a much larger extent than recent analyses of the finance– growth link in OECD countries suggest.

The sources of economic growth in OECD countries

The sources of economic growth in OECD countries

How Robust is the Empirical Link between Business-Cycle Volatility and Long-Run Growth in OECD Countries?

It has been argued that business-cycle volatility dampens growth. This paper argues that this is no stylised fact. A review of the literature reveals that arguments in favour of no, or even a positive, impact of business-cycle volatility on growth are as convincing as the arguments pointing in the other direction. Empirical evidence using annual data for 24 OECD countries from 1960 to 2000, based on robust cross-country regressions and panel models, raises doubts about a clear negative impact of volatility on growth. Moreover, the hypothesis of Granger-non-causality of business-cycle volatility for growth cannot be rejected.

Production and Use of ICT

This paper examines the roles of the ICT-producing sector and of key ICT-using industries in overall productivity growth in OECD countries. The ICT manufacturing sector, in particular, has been characterised by very high rates of productivity growth in many countries and provides a large contribution to labour productivity growth in Finland, Ireland and Korea. In a few countries, notably the United States and Australia, certain ICT-using services have also experienced an above-average pick-up in productivity growth in the second half of the 1990s. Further structural reform may be needed before ICT use will also show up in the productivity statistics of other OECD countries. Differences in the measurement of productivity in ICT-producing and -using industries across countries complicate the cross-country analysis.

The Driving Forces of Economic Growth

This paper discusses links between policy settings, institutions and economic growth in OECD countries on the basis of pooled cross-country time-series regressions. The novel econometric approach used in the paper allows short-term adjustments and convergence speeds to vary across countries, in accordance with most theoretical models, while imposing restrictions only on the longrun coefficients. In addition to the "primary" influences of physical and human capital accumulation, the results confirm the importance for growth of R&D activity, the macroeconomic environment, trade openness and well developed financial markets. They also confirm that many of the policy influences operate not only via the overall efficiency of factor use but also indirectly via the mobilisation of resources for fixed investment.

Public expenditure, income distribution, and growth in OECD countries

Economic growth and the several topics related to it have been studied by economists since their earliest publications. Two different approaches to this area can be found in Neoclassical and Endogenous growth models. The economic growth analysis has focused its attention on the factors that influence the growth of nations, such as fiscal policy or improvement of human capital. Nevertheless, it is also interesting to study the effects of income distribution on economic growth to determine if it has positive effects on growth. The aim of this paper is to study these effects. The authors will develop a theoretical model in which they will introduce public capital in a typical Cobb-Douglas production function. They will estimate OLS, GLS, and SUR fixed effects models for time series and cross-sectional data.

The Returns to Education: Macroeconomics

We offer an extensive summary and a critical discussion of the empirical literature on the impact of human capital on macro‐economic performance, with a particular focus on UK policy. We also highlight methodological issues and make recommendations for future research priorities.Taking the studies as a whole, the evidence that human capital increases productivity is compelling, though still largely divided on whether the stock of education affects the long‐run level or growth rate of GDP. A one‐year increase in average education is found to raise the level of output per capita by between three and six percent according to augmented neo‐classical specifications, while leading to an over one percentage point faster growth according to estimates from the new‐growth theories. Still, over the short‐run planning horizon (four years) the empirical estimates of the change in GDP are of similar orders of magnitude in the two approaches. The impact of increases at different levels of education appear to depend on the level of a country's development, with tertiary education being the most important for growth in OECD countries. Education is found to yield additional indirect benefits to growth. More preliminary evidence seems to indicate that type, quality and efficiency of education matter for growth too.

Jaime Ros. The Economics of Growth. Ann Arbor: University of Michigan Press, 2000. Pp. xiv+429.

Previous articleNext article No AccessReviewsJaime Ros. The Economics of Growth. Ann Arbor: University of Michigan Press, 2000. Pp. xiv+429.Alan HestonAlan HestonUniversity of Pennsylvania Search for more articles by this author University of PennsylvaniaPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Economic Development and Cultural Change Volume 51, Number 1October 2002 Article DOIhttps://doi.org/10.1086/344043 Views: 15Total views on this site Citations: 1Citations are reported from Crossref © 2002 by The University of Chicago. All rights reserved.PDF download Crossref reports the following articles citing this article:Meta Ayu Kurniawati The role of ICT infrastructure, innovation and globalization on economic growth in OECD countries, 1996-2017, Journal of Science and Technology Policy Management 11, no.22 (Feb 2020): 193–215.https://doi.org/10.1108/JSTPM-06-2019-0065

Does human capital matter for growth in OECD countries? A pooled mean-group approach

Unlike previous panel-data studies, using an improved dataset and PMG estimators, we find a significant impact of human capital on growth. The estimated long-run elasticity of output to human capital is consistent with the microeconomic evidence on returns to schooling.

Determinants of emissions growth in OECD countries

This paper analyses the sources of growth in energy-related greenhouse gas emissions for OECD countries over the period 1982–1997. It employs a decomposition formula that separates out the effects of changes in population, economic growth, energy intensity of output (in aggregate and by sector), primary energy use in final energy consumption, the share of fossil fuels and the carbon intensity of fossil fuel combustion. It is shown that, in general, growth in emissions depends on how effectively energy use can be changed to offset the effects of economic growth. Across the OECD as a whole, growth in emissions has been mainly due to economic growth (both GDP per capita and population growth), as well as an increase in primary energy required for final energy consumption, offset by falling energy intensities and a declining share of fossil fuels. Overall, the large fall in the energy intensity of OECD economies over 1982–1997 has been driven primarily by falling energy intensities in the services and industry sectors of the USA and the services sector of the European Union, but these have been offset somewhat by rising energy intensity of services in Japan. The influence of falling energy intensities and the declining share of fossil fuels weakened in the five-year period 1992–1997 resulting in faster emissions growth. There were sharp difference between countries, with population growth and worsening fuel mix playing a much stronger role in the USA compared to the EU and Japan, but with the US making much larger reductions in energy use per unit of GDP. The analysis suggests that opportunities to reduce emissions are more limited in Germany, the UK and Japan, with more opportunities in the USA, Canada, the Netherlands and Australia.

Economic Growth: The Role of Policies and Institutions. Panel Data Evidence from OECD Countries

This paper discusses links between policy settings, institutions and economic growth in OECD countries on the basis of cross-country time-series regressions. The econometric approach allows short-term adjustments and convergence speeds to vary across countries, imposing restrictions only on the long-run coefficients. In addition to the ‘primary’ influences of capital accumulation and skills embodied in the human capital, the results confirm the importance for growth of R&D activity, the macroeconomic environment, trade openness and well developed financial markets. They also confirm that many of the policy influences operate not only ‘directly’ on growth but also indirectlyviathe mobilisation of resources for fixed investment. The paper also reports some bivariate correlations between OECD indicators of product regulation and growth. They provide some supporting evidence that the negative impact of stringent regulations and administrative burden on the efficiency of product ... Ce document analyse les liens entre la croissance economique et les politiques et les institutions dans les pays de l’OCDE sur la base de regressions en coupe transversale et en series temporelles. L’approche econometrique permet aux parametres de court terme et a la vitesse de convergence de varier d’un pays a l’autre, alors que seuls les parametres de long terme sont estimes communs. Au-dela du role “primaire” joue par l’accumulation du capital physique et humain, les resultats confirment l’importance pour la croissance de l’activite de R-D, du cadre macroeconomique, ainsi que de l’ouverture aux echanges et du developpement des marches financiers. Les resultats confirment que les variables politiques influencent la croissance economique non seulement directement, mais aussi indirectement par le biais de l’accumulation du capital. Le document montre enfin des correlations bivariees entre des indicateurs de regulation sur les marches des produits et la croissance economique dans ...

Does Human Capital Matter for Growth in OECD Countries? Evidence from Pooled Mean-Group Estimates

This paper presents empirical estimates of human-capital augmented growth equations for a panel of 21 OECD countries over the period 1971-98. It uses an improved dataset on human capital and a novel econometric technique that reconciles growth model assumptions with the needs of panel data regressions. Unlike several previous studies, our results point to a positive and significant impact of human capital accumulation to output per capita growth. The estimated long-run effect on output of one additional year of education (about 6 per cent) is also consistent with microeconomic evidence on the private returns to schooling. We also found a significant growth effect from the accumulation of physical capital and a speed of convergence to the steady state of around 15 per cent per year. Taken together these results are not consistent with the human capital augmented version of the Solow model, but rather they support an endogenous growth model a la Uzawa-Lucas, with constant returns to ... Ce document presente des estimations d’equations de croissance etendues pour tenir compte du capital humain estimees sur des donnees de panel pour 21 pays de l’OCDE pour la periode 1971-98. Le document est base sur des series revisees de capital humain et une procedure econometrique nouvelle qui reconcilie les hypotheses d’un modele de croissance avec les contraintes des regressions de panel. Contrairement a plusieurs etudes precedentes, nos resultats suggerent un impact positif et significatif de l’accumulation du capital humain sur la croissance de la production par tete. Selon nos estimations, une annee supplementaire de niveau moyen d’etudes dans un pays aurait un effet positif a long terme sur la production (de 6 pour cent approximativement), ce qui est en accord avec l’evidence microeconomique sur le taux de rendement prive de l’investissement en education. On trouve egalement des effets significatifs de l’investissement en capital physique sur la production est une vitesse de convergence vers l’equilibre a long terme de 15 pour cent par an en moyenne. Dans leur ensemble, ces resultats ne sont pas coherents avec le modele de Solow etendu pour tenir compte du capital humain. Cependant ils sont compatibles avec un modele de croissance endogene a la Uzawa-Lucas, avec des rendements d’echelle constants par rapport au capital...

The Impact of Tax and Welfare Policieson Employment and Unemployment in OECD Countries

The paper provides a selective survey of methods and findings concerning the impact of tax and welfare policies on employment, unemployment, and economic growth in OECD countries. The paper examines a number of facets of tax and welfare policy and concludes that cross-country macroeconomic studies shed only limited light on the issue. Analyses of household behavior using microeconometric methods are much more fruitful but the question remains of how to aggregate these results to assess the overall impact of policy.

The Impact of Tax and Welfare Policies on Employment and Unemployment in OECD Countries

The paper provides a selective survey of methods and findings concerning the impact of tax and welfare policies on employment unemployment and economic growth in OECD countries. The paper examines a number of facets of tax and welfare policy and concludes that cross-country macroeconomic studies shed only limited light on the issue. Analyses of household behavior using microeconometric methods are much more fruitful but the question remains of how to aggregate these results to assess the overall impact of policy.

The Neoclassical Revival in Growth Economics: Has It Gone Too Far?]: Comment

Previous articleNext article Free[The Neoclassical Revival in Growth Economics: Has It Gone Too Far?]: CommentN. Gregory MankiwN. Gregory Mankiw Search for more articles by this author PDF Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by NBER Macroeconomics Annual Volume 121997 Sponsored by the National Bureau of Economic Research (NBER) Article DOIhttps://doi.org/10.1086/654325 Views: 67 Citations: 9Citations are reported from Crossref Copyright 1997 The National Bureau of Economic Research and the Massachusetts Institute of Technology Crossref reports the following articles citing this article:Orhan Torul Education in a Heterogeneous-Agent Economy: Revisiting Transatlantic Differences, Journal of Human Capital 14, no.22 (Jul 2020): 165–216.https://doi.org/10.1086/708650Jesus Felipe, John S. L. McCombie The Illusions of Calculating Total Factor Productivity and Testing Growth Models: From Cobb-Douglas to Solow and to Romer, SSRN Electronic Journal (Jan 2019).https://doi.org/10.2139/ssrn.3377758Rosa Capolupo Economic Transition and Regional Growth: The Case of Albania and Comparator SEECs, Transition Studies Review 18, no.33 (Feb 2012): 529–549.https://doi.org/10.1007/s11300-012-0219-5Scott Carter "On the Cobb-Douglas and all that …": the Solow-Simon correspondence over the aggregate neoclassical production function, Journal of Post Keynesian Economics 34, no.22 (Feb 2012): 255–274.https://doi.org/10.2753/PKE0160-3477340204Rosa Capolupo The New Growth Theories and Their Empirics after Twenty Years, Economics 3, no.11 (Feb 2009).https://doi.org/10.5018/economics-ejournal.ja.2009-1Torge Middendorf Human Capital and Economic Growth in OECD Countries, SSRN Electronic Journal (Jan 2005).https://doi.org/10.2139/ssrn.784604Andrew T. Young, Daniel Levy, Matthew John Higgins Many Types of Human Capital and Many Roles in U.S. Growth: Evidence from County-Level Educational Attainment Data, SSRN Electronic Journal (Jan 2004).https://doi.org/10.2139/ssrn.516123Robin Grier Toothless Tigers? East Asian Economic Growth from 1960 to 1990, Review of Development Economics 7, no.33 (Aug 2003): 392–405.https://doi.org/10.1111/1467-9361.00198Jesus Felipe, Carsten A. Holz Why do Aggregate Production Functions Work? Fisher’s simulations, Shaikh’s identity and some new results, International Review of Applied Economics 15, no.33 (Jul 2010): 261–285.https://doi.org/10.1080/02692170110052338