Low Economic Growth Rates Research Articles

Социальные проблемы в либеральной политической мысли Великобритании межвоенного периода

The article covers a number of social issues in the works of British Liberal theorists of the first half of the 20 th century. The author’s objective is to analyze the peculiarities of the social concepts formation and evolution in British Liberal political thought in the context of the United Kingdom’s socio-economic development in the first half of the 20 th century. The article is based on the philosophical, economic and journalistic works of the dominant political figures and theorists of Liberalism of the first half of the 20 th century — Maynard Keynes, David Lloyd George, Leonard Trelawny Hobhouse, etc. The basic principles of New Liberalism in the UK were formulated during the late 19 th — early 20 th century. But new political, social and economic factors (the low rate of economic growth and high levels of unemployment in the 1920s, the Great Depression, the Liberal party being replaced by the Labour party in the two-party system) forced the Liberals to look for new approaches to social issues. When the basic social programmes had been implemented in the UK, the Liberals put forward a concept aimed to rise the living standards of the whole population of the country. The new social programme proposed by the Liberals was based on the elements of economic regulation that meant the renunciation of the traditional Liberal principle, i.e. free economy.

How the Legal Environment Affects the Structure of Employment

The quality of the institutional environment is considered a crucial determinant of economic growth. Low quality of the formal institutional environment can slow down economic development via various mechanisms described in the literature. The present paper will analyse formal institutional factors leading to the structure of employment that Murphy, Shleifer and Vishny (The Quarterly Journal of Economics, 1991) found to be associated with lower rate of economic growth. They assumed that a high proportion of lawyers in the country may be associated with slower economic development. Thus, the aim of the paper is to examine some of the parameters of institutional environment that can lead to such a distribution. Results show that quality of law measured by the World Bank (Doing Business database) and the Corruption Perception Index obtained from Transparency International may have some explanatory abilities regarding the structure of employment.

Islam and Modernization

INTRODUCTION Modernity refers to the end result of the process of modernization. It is the condition that a society attains after having gone through specific patterns of social and economic change which began in Western Europe in the eighteenth century and which has been spreading throughout the rest of the world. The process of modernization refers to the introduction of modern scientific knowledge to increasing aspects of human life, first of all in Western civilization, then to non-Western societies, by different means and groups, with the final aim of achieving a better life as defined by the society concerned (Alatas, S.H. 1972, p. 22). The traits of modernization include the rationalization of economic and political life, rapid urbanization, industrialization, differentiation in the social structure, and greater popular involvement in public affairs. If we understand these traits as constituting the modern condition, then modernism would refer to the ideology, attitude or mentality that subordinates the traditional to the modern. This chapter begins with a brief introduction to development studies as a modernist discourse. This is followed by a concise overview of the Islamic ideal of development which is juxtaposed to the economic realities of Muslim societies. It then proceeds to theoretically assess attempts in Muslim countries such as Malaysia, Pakistan, and Saudi Arabia to create an alternative discourse on development that draws on Islamic law and an Islamic philosophical anthropology. The next sections move on to a consideration of the role of the state in development and the questions of democracy and civil society. The concluding section makes some remarks on the problematic state of discourse in the Muslim world on modernization. DEVELOPMENT STUDIES AS MODERNIST DISCOURSE The vast majority of Muslims around the world live in economically underdeveloped countries, with high rates of inflation, low rates of economic growth, low life expectancy, and a high level of adult illiteracy. There are also severe problems in the health and nutritional status of Muslims worldwide, which have serious implications for the quality of human resources. Muslim countries also lag behind industrialized nations in educational attainment, especially where access to tertiary education is concerned (Hassan 1992).

Declining labour share of income in South Africa: the Kalman filter approach

Recent research has shown that in both developed and emerging market economies, the labour share of national income has exhibited a declining trend since the 1980s. Research investigating the problem of high unemployment in the South African economy has inferred that this problem arises partly because of past and current socio-political conditions, low rates of economic growth, labour market rigidities, globalisation and institutional arrangements. As the labour absorption capacity is rather low, many people are unable to earn an income from an engagement in the formal labour market. This is likely to have implications for the relative distribution share of labour and capital in the country’s national income. However, no recent published research has investigated this phenomenon in the South African context. Thus, this paper attempts to shed some light on the problem. Using yearly data from 1946 to 2013, the study employs the Kalman filter methodology within the standard Cobb-Douglas production function framework to investigate how labour and capital shares as well as total factor productivity have been behaving in this period. The results indicate that the share of total income going to labour has decreased over the long run, while that of capital has increased. Specifically, the share of capital increased from 3.1% in 1980 to 12% in 2013, while that of labour decreased from 91% to 83%. This reflects a rising income inequality and concentration of wealth, with output and income generation shifting to technological- or capital -intensive production requiring more skilled labour, a trend also observed in certain other countries.

Political Institutions, Trade Openness, and Economic Growth: New Evidence

ABSTRACTWe present new evidence on the relationship between political institutions, trade openness, and economic growth using a panel of over 200 countries and eight nonoverlapping five-year average observations for 1975–2010. We explore (1) whether political institutions lead to lower economic growth rates and (2) whether income per capita and trade openness curb the persistence of these institutions. The panel data estimation results suggest that most of our political institution proxies do not hinder economic growth. However, increases in per capita income, trade openness, and education curtail the persistence of these political institutions.

On the Consequences of Pro‐Cyclical Fiscal Policy

AbstractThere is widespread evidence that pro‐cyclical fiscal policies have been prevalent in developing countries and often in some industrial nations. It is therefore surprising that, in contrast to the wealth of studies on the sources of pro‐cyclical policy, potential consequences of such seemingly suboptimal policies have been largely ignored in the existing literature. By utilising a comprehensive set of indicators from 114 countries for 1950–2010, we aim to address the following important question: does it matter whether a country adopts a pro‐cyclical fiscal policy stance rather than a counter‐cyclical one? Our results produce a resounding ‘yes’ to this question. We find that fiscally pro‐cyclical countries have lower rates of economic growth, higher rates of output volatility and higher rates of inflation.

Public debt in Nepal: an assessment

Public debt is the instrument of financing budget deficit. One important macroeconomic problem of Nepalese economy is prevailing resource gap. Due to such situation, with the increase in size of government budget, the size of public debt is also increasing. With the increase in public debt, it is worthwhile to study how macroeconomic indicators are changing over the time. This study is based on the descriptive analysis. For this purpose, the period of 1975/76-2010/11 is considered. In this period, public debt has increased, on average, by 18.86%. The share of external loan, on average, seems to be relatively higher, i.e. 58.85% whereas such share of internal loan is 41.15%. However, in the latter period, the share of internal loan has significantly higher than the share of external loan. For example, during the period of 2005/06-2010/11, the average share of internal loan is 68.01% whereas such share of external loan is 31.99%. In spite of increased budget and increased public debt, the growth rate of economy is relatively low. On average, it is 4.28%. But, the rate of inflation is, on average, 8.31%. Thus, Nepalese economy is facing the problem of low rate of economic growth and high rate of inflation.DOI: http://dx.doi.org/10.3126/ejdi.v15i1-2.11864Economic Journal of Development Issues Vol. 15 & 16 No. 1-2, pp. 50-59

How the Legal Environment Affects the Structure of Employment

The quality of the institutional environment is considered a crucial determinant of economic growth. Low quality of the formal institutional environment can slow down economic development via various mechanisms described in the literature. The present paper will analyse formal institutional factors leading to the structure of employment that Murphy, Shleifer and Vishny (The Quarterly Journal of Economics, 1991) found to be associated with lower rate of economic growth. They assumed that a high proportion of lawyers in the country may be associated with slower economic development. Thus, the aim of the paper is to examine some of the parameters of institutional environment that can lead to such a distribution. Results show that quality of law measured by the World Bank (Doing Business database) and the Corruption Perception Index obtained from Transparency International may have some explanatory abilities regarding the structure of employment.

The shadow economy in industrial countries

The shadow (underground) economy plays a major role in many countries. People evade taxes and regulations by working in the shadow economy or by employing people illegally. On the one hand, this unregulated economic activity can result in reduced tax revenue and public goods and services, lower tax morale and less tax compliance, higher control costs, and lower economic growth rates. But on the other hand, the shadow economy can be a powerful force for advancing institutional change and can boost the overall production of goods and services in the economy. The shadow economy has implications that extend beyond the economy to the political order.

International travel to and from Brazil – Overseas tourism as a luxury good and a status symbol

Using data for the period 1995Q1–2012Q4, single-equation error correction models for real tourism import demand to Brazil and real tourism export demand from Brazil are derived. According to breakpoint tests, two periods (pre-2003 and post-2003) have to be distinguished. While international travel to and from Brazil can be seen as a luxury good for the whole period, low economic growth rates at the global level and the real appreciation of the Brazilian currency “real” from 2003 onward have led to stagnating real tourism exports and decreases in long-term income and price elasticities. However, high economic growth rates in Brazil and the real appreciation from 2003 onward have led to strongly growing real tourism imports and increases in long-term income and price elasticities. In line with international travel being regarded as a status symbol in Brazil, a Veblen effect of conspicuous consumption can be confirmed for the post-2003 period.

Equilibrium Technology Diffusion, Trade, and Growth

We study how opening to trade affects economic growth in a model where heterogeneous firms can adopt new technologies already in use by other firms in their home country. We characterize the growth rate using a summary statistic of the profit distribution: the mean-min ratio. Opening to trade increases the profit spread through increased export opportunities and foreign competition, induces more rapid technology adoption, and generates faster growth. Quantitatively, these forces produce large welfare gains from trade by increasing an inefficiently low rate of technology adoption and economic growth. (JEL D21, D24, F14, F43, O33)

Tipos de commodities, taxa de câmbio e crescimento econômico: evidências da maldição dos recursos naturais para o Brasil

A literatura sobre a maldição dos recursos naturais argumenta que a especialização das exportações em commodities acarreta menores taxas de crescimento econômico. Este trabalho sugere que esse resultado depende do tipo de commodityanalisada. Para isso, utiliza a metodologia de Vetores Autorregressivos e Funções de Resposta aos Impulsos para investigar a existência de efeitos negativos das exportações de alimentos, matérias-primas, minerais e energia sobre o crescimento econômico e a taxa de câmbio real brasileira, com base no período 2000-2011. Os resultados sinalizam alguma evidência da maldição dos recursos naturais no Brasil, uma vez que alimentos, matérias-primas e minerais contribuíram para explicar as menores taxas de crescimento econômico e a apreciação cambial. Todavia, tais evidências são fracas, pois ocorrem com alguma defasagem e têm curta duração.

Economic Growth in the Warmia and Mazury Voivodship Compared to Selected Countries and Regions of the European Union

The aim of the research was to evaluate the level and the dynamics of the economic growth of Warmia and Mazury voivodship compared to the rest of the country and the average economic performance of selected countries and regions of the European Union to determine if the Polish economic gap is decreasing. The obtained results could contribute to the discussion on the efficiency and reasonability of regional policy towards achieving economic cohesion. The analysis indicated that regions of the so-called "eastern wall" of Poland (including Warmia and Mazury voivodship) have a low rate of economic growth. This may suggest that the process of economic divergence has a permanent and objective nature.

Emissions of air pollutants and greenhouse gases over Asian regions during 2000–2008: Regional Emission inventory in ASia (REAS) version 2

Abstract. We have updated the Regional Emission inventory in ASia (REAS) as version 2.1. REAS 2.1 includes most major air pollutants and greenhouse gases from each year during 2000 and 2008 and following areas of Asia: East, Southeast, South, and Central Asia and the Asian part of Russia. Emissions are estimated for each country and region using updated activity data and parameters. Monthly gridded data with a 0.25° × 0.25° resolution are also provided. Asian emissions for each species in 2008 are as follows (with their growth rate from 2000 to 2008): 56.9 Tg (+34%) for SO2, 53.9 Tg (+54%) for NOx, 359.5 Tg (+34%) for CO, 68.5 Tg (+46%) for non-methane volatile organic compounds, 32.8 Tg (+17%) for NH3, 36.4 Tg (+45%) for PM10, 24.7 Tg (+42%) for PM2.5, 3.03 Tg (+35%) for black carbon, 7.72 Tg (+21%) for organic carbon, 182.2 Tg (+32%) for CH4, 5.80 Tg (+18%) for N2O, and 16.0 Pg (+57%) for CO2. By country, China and India were respectively the largest and second largest contributors to Asian emissions. Both countries also had higher growth rates in emissions than others because of their continuous increases in energy consumption, industrial activities, and infrastructure development. In China, emission mitigation measures have been implemented gradually. Emissions of SO2 in China increased from 2000 to 2006 and then began to decrease as flue-gas desulphurization was installed to large power plants. On the other hand, emissions of air pollutants in total East Asia except for China decreased from 2000 to 2008 owing to lower economic growth rates and more effective emission regulations in Japan, South Korea, and Taiwan. Emissions from other regions generally increased from 2000 to 2008, although their relative shares of total Asian emissions are smaller than those of China and India. Tables of annual emissions by country and region broken down by sub-sector and fuel type, and monthly gridded emission data with a resolution of 0.25° × 0.25° for the major sectors are available from the following URL: http://www.nies.go.jp/REAS/.

Highway or Byway: The National Development Plan 2030

This publication, the first in a series of three, considers the feasibility of the central economic growth target that is set out in South Africa’s National Development Plan 2030. It then explores some of the associated human development targets. The paper first looks at the core characteristics of the economy. Against that background and analysis we argue that the core economic growth target of 5,4 per cent average gross domestic product, the associated size of the economy and the income per capita targets are very ambitious. With a huge effort, clear leadership and painful adjustments the targets may be achievable, but it is hardly possible to overestimate the effort that will be required from across South Africa’s diverse interest groups and affected communities. Clearly the current capital-intensive nature of South Africa’s economic growth model will not succeed in delivering sufficient jobs without structural changes to the economy and to current policies. Many other targets, for example in education and infrastructure, are achievable with lower rates of economic growth. This may point to a lack of coherence between the models (and assumptions) used for detailed planning between the different sectors. While economic growth is very important for South Africa, the quality of growth is equally important if the country is to address its deep structural inequality and unemployment challenges.

A Brief Analysis of Planning Approaches to the Reduction of Urban Carbon Emissions

Urban area is the main area from where our planet’s carbon discharges. It is generally accepted that the reduction of carbon will result in lower rate of economic growth. On the condition of not containing economic development, from the perspective of urban Planning, this paper tries to explore the planning approaches to the reduction of urban carbon emissions in terms of plans for the development of industries, city scale, urban spatial context, urban transportation, urban green space, architectural patterns, energy planning and urban water supply.

Explaining Urban Social Disorder and Violence: An Empirical Study of Event Data from Asian and Sub-Saharan African Cities

By 2050, two thirds of the world's population will live in cities, and the greatest growth in urban populations will take place in the least developed countries. This presents many governments with considerable challenges related to urban governance and the provision of services and opportunities to a burgeoning urban population. In the current article, we use a new event dataset on city-level urban social disorder, drawing upon prominent theories in the conflict literature. The dataset spans the 1960–2009 period, covering 55 major cities in Asia and Sub-Saharan Africa and includes data on nonviolent actions such as demonstrations and strikes and violent political actions like riots, terrorism, and armed conflict. We find that urban social disorder is associated in particular with low economic growth rates and hybrid democratic regimes, while level of development, economic inequality, large youth bulges, and economic globalization do not seem to affect levels of urban social disorder.

Brazil Post‐Lula: Challenges and Opportunities Facing the Brazilian Business Environment

AbstractThe Brazilian economy indicates great potential for future economic growth. An increasing and affluent middle class, expanding exports, and foreign reserves are testimonies of Brazil's recent accomplishments. The country, however, still faces a number of challenges that may compromise its sustainable long‐term economic goals and objectives. This article focuses on the Luiz Inacio “Lula” da Silva government's economic performance. The article's main findings show increasing bottlenecks being created as a result of the Lula government's eight years of low economic growth rates, which have penalized the country's competitiveness. The newly elected president, Dilma Rousseff, will inherit a substantial investment deficit in the areas of infrastructure, education, health care, research and development (R&D), and innovation, as well as Brazil's worst public debt/gross domestic product (GDP) ratio in the past 100 years. These conditions will prevent Brazil from growing and developing at faster rates. This article also elaborates on Dilma Rousseff's most recent statements and discusses likely future paths for the Brazilian economy. © 2012 Wiley Periodicals, Inc.

World Economy in the Long Term: Growth Strategies for the Major Actors

This paper analyzes the approach to the global imbalances (and probable global savings deficit) problem in the light of long-term interests of each global actor. It outlines three long-term trends that will change the growth landscape in twenty years to come. Those are population ageing, the rise in household consumption for large developing economies and the next phase of moving production to developing economies. Key long-term interests and structural problems for three key actors — US, EA and China - are identified. The author outlines two long-term scenarios (inflation versus restructuring) of the excess debt and probable savings deficit (a part of the global imbalances problem). The analysis suggests that currently the world economy is on the path to gradual debt restructuring, implying a long period of low economic growth rates.

Exports and Government Debt - A Panel Data Analysis Worldwide

If a country A with a low economic growth rate exports to another country B (and the second has larger real GDP growth rate than all the remaining countries during the same time period), that will help country A. Hence, the revenues from exports will enable country A to reduce its government debt and to gradually abandon own austerity measures. Consequently, domestic consumption in A will go up and economic growth will be triggered (according to consumption-led growth theory). This can apply to the case of Greece. Thus, Greek exports will help Greek economy to pay off debts and start its own economic growth. The sample covers all world. Data are taken from Eurostat. The elaboration of these panel data is made feasible by means of the Eviews software package.