Theory Of Economic Development Research Articles

A contribution to the theory of economic development and the demographic transition: fertility reversal under the HIV epidemic

AbstractAccording to the conventional theory of the demographic transition, mortality decline has represented the major trigger of fertility decline and sustained economic development. In Sub-Saharan Africa (SSA), the HIV/AIDS epidemic has had a devastating impact on mortality, dramatically reversing the long-term positive trend in life expectancies in high HIV-prevalence countries. Moreover, SSA is experiencing a delayed and slower fertility transition compared to other world regions and there is growing empirical evidence highlighting the potential for a paralysis, or even a reversal, of the fertility transition in countries with severe HIV epidemics. This work builds on a unified growth theory-like general equilibrium model combined with HIV spread, where mortality endogenously feeds back into fertility and education decisions. The model supports the evidence of an HIV-triggered fertility reversal in SSA via the fall in education and human capital investments due to increased adult mortality, which eventually breaks the switch from quantity to quality of children. Fertility reversal is predicted to be more likely to occur in countries experiencing severe HIV epidemics, and its effects may persist even under successful scenarios of HIV control. These results suggest that the alarming possibility of a paralysis in the fertility transition, which so far has aroused little concern among international organizations, e.g., in the last round of UN population projections, should be seriously considered with a view to prioritizing policy interventions.

Anchoring Urban Development: Globalisation, Attractiveness and Complexity

Since the work of Hoyt in the 1930s, economic theories of urban development have stressed the primacy of manufacturing because of the existence of a regional multiplier effect. This model was extended to traded services and, in the last 10 years, to the residential and presential economy, taking into account the fact that mobile consumers and residents also bring monetary flows into regions. The city today is both a productive agglomeration and a place of living, for both local and extra-local consumers, heralding the end of the primacy of manufacturing. In this article, we go a step further and consider the primacy of other kinds of export, either based on selling competitive goods or on attracting consumers. Due to changes in globalisation and to the rise of interurban competition for spending, incomes earned on exports are less and less likely to be spent locally, and instead flow out, progressively invalidating the multiplier effect. Consequently, the hypothesis of this article is that the main issue for urban development theories and practices is combining competitiveness in terms of exports with attractiveness to local as well as to external consumers. In this article, we call complexity the idea of pushing aside the focus on exports in order to understand the tensions and synergies between all activities and populations present within the urban space. In order to formulate new research questions, we build a typology of urban income flows and activities.

О КОНЦЕПТУАЛЬНЫХ СХЕМАХ РАЗВИТИЯ ЭКОНОМИЧЕСКОЙ НАУКИ

We carried out a theoretical analysis of various concepts used to describe and explain the development, progress and evolution of economic theory (economic science). The study found that the dynamics and transformations of economic theory were described using models of the development of scientific knowledge of three prominent philosophers and thinkers, namely: K.R. Popper, T. Kuhn and I. Lakatos. Nevertheless, the merits of each of these conceptual schemes are balanced by shortcomings, following mainly from the fact that K.R. Popper, T. Kuhn and I. Lakatos's concepts were developed to analyze the development of natural science knowledge. In this regard, an attempt was made to describe and explain the development of economic science through the use of an earlier approach - the law of the intellectual evolution of humanity by A. Comte. This approach reveals its advantages, expressed in the simplicity of presentation, openness to further research and interpretation of new results in the field of research on the development of economic thought. At the same time, it is worth noting the existence of shortcomings of the author's approach, consisting in the difficulty of establishing a chronological framework for the development of economic theory, the impossibility of using the A. Comte's law to describe the evolution of all economic schools, the fuzziness of the boundaries (periods) of the development of economic knowledge and a simplified understanding of the development of science itself as non-discontinuous progress - improvement.

Evolution of economic cycles and determination of structural changes in the national economy

The role of state structural regulation of the national economy in the conditions of the high volatility of economic cycles is substantiated. The key parameters of the system of state regulation of the economy in terms of permanent structural transformation and cyclical national economy are defined as the following: efficiency, balance of interests of all participants in economic relations, socialization and greening of economic processes. The evolution of basic theories of cyclical economic development is studied, and their main features in terms of factor influence on cyclicity and structural transformations in the system of the national economy are determined. The scientific and methodological approach to determining the content of structural changes in the national economy is determined as a transition from one paradigm of development and economic growth to another paradigm more adequate to the global challenges and domestic demands faced by society. The author's definitions of the structural-economic conceptual-categorical apparatus that reflects the transformation processes in the cyclical economy are suggested, in particular: the structure of the national economy (structural basis); structural changes (transformation, shifts); structural policy; structural reform (restructuring); structural crisis. The cyclical development of the economy is characterized, which is often accompanied by such undesirable parameters as discreteness, uncertainty, chaos, which affects economic growth and resilience of the national economy to recession shocks. Timely structural reform is determined to be the only vector to prevent it, including ensuring the availability of developed domestic markets, high competitiveness of domestic companies in global markets, high level of solvency of domestic consumers and efficient structure of the national economy. These factors will help reduce the level of negative effects arising from market fluctuations.

РОЗВИТОК СЕКТОРАЛЬНИХ ТЕОРІЙ У ДОСЛІДЖЕННІ СТРУКТУРИ ЕКОНОМІКИ

The article is devoted to sectoral theories of economic structuring, their evolution and development. It is emphasized that in the study of structural patterns of development of the national economy the theory of three sectors is widespread. International organizations use a three-sector model to characterize the country's economy and compare it with others, distinguishing between the agricultural, industrial and service sectors. The essence of the theory of three sectors in the process of civilizational development of society within the phase triad "pre-industrial – industrial – post-industrial" is highlighted. The evolution of the main provisions of the theory of three sectors and the contribution of A. Fischer, K. Clark, J. Furastier to its development are revealed. The comparative characteristic of grouping of aggregated types of economic activity into primary, secondary and tertiary sectors and criteria of structuring of economy are presented. The role of each sector in the development of the country's economy is emphasized. Emphasis is placed on the heterogeneity of the tertiary sector and its role in solving the unemployment problem. It is proved that the reason for the growth of employment in the service sector is the increase in demand not so much for consumer as for production services. The structural changes taking place in the economy have led to the development of the theory of three sectors in the study of the structure of the economy, which went by a deeper study of the tertiary sector and its detail. The concept of post-industrial society is revealed, in which education, science, information become of paramount importance in the development of the country's economy. Five- and six-sector models of economic structuring are described. Within these models, the development of the knowledge economy was recognized as a priority of public policy. Three blocks of the state social and economic policy for development of economy of knowledge are defined. It is determined that the development of the sectoral structure of the national economy takes place against the background of dialectical laws, under the influence of dynamism and sustainability. It is proved that the change of relations between sectors is accompanied by profound qualitative changes in each sector, the structure of the economy as a whole, which translates it to a new level of development. Emphasis is placed on the need to identify growth poles in each sector of the national economy.

Dismantling the Master’s House: Toward a Justice-Based Theory of Community Economic Development

Since the end of the American Civil War, scholars have debated the efficacy of various models of community economic development, or CED. Historically, this debate has tracked one of two approaches: place-based models of CED, seeking to stimulate community development through market-driven economic growth programs, and people-based models of CED, focused on the removal of structural barriers to social and economic mobility that prevent human flourishing. More recently, scholars and policymakers have turned to a third model from the impact investing community—the social impact bond, or SIB. The SIB model of CED ostensibly finds a middle ground by leveraging funding from private impact investors to finance social welfare programs within marginalized communities. SIBs seemingly answer the call of local government law scholars of the New Regionalists movement who advocate for governmental mechanisms that facilitate regional cooperation, address equity concerns, and respect local government autonomy. However, this Article argues that the SIB model of impact investing will struggle to advance metropolitan equity due to its grounding in the politics of neoliberalism. After highlighting limitations of the SIB, this Article links contemporary debates about CED theory to historical contestations within the black community about economically-oriented racial uplift strategies. Placing historical figures, such as W.E.B. Du Bois and Booker T. Washington, in conversation with more contemporary theorists of political philosophy, this Article offers an alternative conceptual framework of CED. Termed justice-based CED, this framing distinguishes a typology of social change that places democracy at the epicenter of the development debate and points toward the political principles of the solidarity economy as guideposts for law reform. The justice-based approach rests upon three core values: social solidarity, economic democracy, and solidarity economy. Taken together, this perspective reflects a vision of political morality that embodies one of America’s most foundational democratic values—human moral dignity.

ЕВОЛЮЦІЯ ТЕОРІЙ ЕКОНОМІЧНОГО РОЗВИТКУ ПІДПРИЄМСТВ У СУЧАСНОМУ ВИМІРІ КОНЦЕПЦІЙ УПРАВЛІННЯ

The speed of economic change in the global environment is so great, and the inertia of modern thinking is so strong that the current economics in some cases simply does not keep up with the changes taking place in the object of its analysis. As a result, there is a conflict between outdated theories and the new reality, there are scientific claims about the systemic crisis of economic theory. The main purpose of the article is to generalize the genesis of theories, models of economic development of the national economy and the formation of a set of tools and mechanisms for the development of economic entities in the modern dimension of management concepts. The methodological basis of scientific research is general scientific and special methods of scientific knowledge (methods of scientific deduction and induction, comparison and systematization, synthesis). The author's team systematizes the evolutionary stages of formation of scientific theories, concepts and models of economic development of enterprises on the basis of research of both scientific schools and the provisions of individual representatives of this scientific hypothesis. The digression of basic theories of economic development testifies to the transition of scientific views from a set of models of economic development of closed space, to structural transformations of global scale, taking into account institutional and structural gaps that are inherent in certain countries at different stages of their development. In particular, Ukrainian and foreign practice of implementing national economic models has allowed generalizing the conceptual approaches to models of economic development adapted and based on programs and strategies of socio-economic development of economic entities in the modern dimension of management concepts. Economic development of the national economy as a dynamic complex socio-economic system, self-developing and characterized by cyclical stages of growth and decline of the economy is irreversible, aimed at qualitative and quantitative changes in national development is justified. In modeling the economic development of enterprises of the national economy should take into account the objective patterns of dynamic processes of the socio-economic system, modern management concepts and be based on a balanced assessment of driving forces, sources, resources, factors is defined in the article.

The Common Sense of Economics and Divergent Approaches in Economic Thought

This paper evaluates the contribution of Risk, Uncertainty, and Profit to the development of economic theory in the 20th century. Our argument in this paper is twofold. First, we contend that this book embodied what had been the common knowledge of early neoclassical economics prior to WWII. Secondly, we also argue that embroynic to Knight’s account of economics were two divergent approaches to economic thought that emerged after WWII. The first approach, what has come to be known as microeconomics, is characterized by utility maximization under fixed price, income, and institutional parameters that approximate equilibrium. This first approach is distinct from a second approach, referred to as price theory, in which prices are not sufficient statistics, as in microeconomics, but operate as guides to consumption and production decisions under alternative institutional arrangements. This second approach not only represented the continuation of the mainline of economic thought from its classical and early neoclassical roots. It also embodies the basis for Knight’s understanding of uncertainty, profit and entrepreneurship, as well as its implications for economic organization and social progress.

Are Metropolitan Areas Primed for Success? A Prosperity Risk Index for Evaluating Economic Development Patterns.

Urban areas differ greatly in their exposure to economic change, their trajectory toward recovery and growth, and the extent to which development and equity are paired. Some of this differentiation can be explained by regional dynamics, policies, and migration flows that influence the composition of economic activity, land use, and population characteristics. Simultaneously, the fortunes of center cities are known to often correlate with metropolitan characteristics, yet the interaction of socio-spatial conditions with multi-level governance and development processes—particularly with respect to how prosperity is shared across municipal lines and is distributed among communities—is under-researched. In this article, we use a GIS-based and quantitative approach to characterize such patterns and evaluate regional differences among 117 mid-sized metropolitan areas in the Eastern US with a population between 250,000 and 2,500,000. Our analysis rests on initial GIS-based inquiries to define city, urbanized area, county, and core-based statistical area-level measures of municipal fragmentation, geographic sprawl, racial segregation, economic inequality, and overall poverty. These five characteristics are combined to propose a prosperity risk index for each region. Further, indicators of economic performance such as job and population growth are inverted to create an economic vulnerability index. An interaction model is run to determine relationships among the indices to highlight both the regional differences in these characteristics that became noticeably significant in the analysis and the linkages of spatial patterns of economic growth and social equity. Analyzing these multi-scalar regional dynamics illuminates the socio-spatial patterns that deserve attention in urban economic development theory and, subsequently, offers a framework for evaluating public policy and development practices. We likewise offer two comparisons of outliers as a means of illustrating potential directions urban areas can take toward economic development. These findings are valuable for local economic development practitioners who may be seeking further contextual/comparative information on urban regions, or for others interested in understanding the dynamics behind urban planning that may drive regional competitiveness and prosperity.

Digital Property and New Economic Relations

Modern economic relations are developing under the influence of digital property that creates conditions for unprecedented socialization of production and new realities in the relations of appropriation and alienation. This requires both theoretical interpretation and practical research. The aim of the article is to identify current trends in the development of digital property and the new economic relations that it forms in the world, to systematize the conditions for digital property in Russia. The authors used the findings of institutional and evolutionary economic theories, political economy, as well as the principles and methods of SWOT-analysis in order to systematize the issue. The paradigm of the development of Russia should be changed from consumption to production of innovative products and technologies of the digital economy. The paper presents the essential characteristics of digital property and a model of the influence of the digital economy and global integration on modern economic relations. Potential opportunities for the economic development in the system of new economic relations were identified due to the SWOT-analysis of the conditions for the development of digital property in Russia. At the same time, endogenous institutional and target restrictions on the development of the digital economy in Russia (as weaknesses), as well as exogenous restrictions in the form of threats were specified. The authors found the strategic modeling of systems engineering education as a long-term basis for the development of the digital economy necessary. The research results can be used in developing national programs.

Innovation Districts as a Strategy for Urban Economic Development: A Comparison of Four Cases.

This study investigates the urban economic development strategy of innovation districts. As the phenomenon of innovation districts currently is flourishing and expanding across the nation, it commands rigorous attention from those interested in understanding economic development in the United States. Researching the design, opportunities, and pitfalls associated with the economic development strategy will be valuable to policymakers. By studying innovation districts, we aim to provide practical guidance to governments, nonprofit organizations, and other interested actors as they consider devoting substantial effort and resources toward improving their local and regional economies. Because innovation districts are relatively new, this research does not claim to provide definitive empirical knowledge or results. Moreover, it is too early in the application of innovation districts to conduct widespread empirical evaluation. Instead, our approach focuses on examining four cases of innovation districts that present contrasting settings and policies. We assess the economic development efforts as they have progressed so far by drawing on existing theories of regional economic development and by relating the design and implementation of innovation district actions to stated and normative goals. In conducting this research relatively early in terms of innovation district applications, we anticipate the information to be opportune for the consideration of local economic development policymakers and stakeholders.

СОЦІАЛЬНО-ЕКОНОМІЧНИЙ РОЗВИТОК ТЕРИТОРІАЛЬНИХ ГРОМАД: ЗАРУБІЖНИЙ ДОСВІД

Дана стаття присвячена висвітленню наукових положень світового досвіду забезпечення сталого розвитку територій з обґрунтуванням ключових моментів для використання вітчизняними об’єднаними територіальними громадами. В процесі дослідження обґрунтовано сутність поняття «економічний розвиток громади» у поглядах зарубіжних вчених, висвітлено генезис підходів до забезпечення розвитку локальних територій. Досліджено основні складові та параметри соціально-економічного розвитку громад у зарубіжній практиці. Узагальнено теоретичні підходи щодо економічного розвитку територій та сформовано перелік теорій місцевого економічного розвитку, розроблених світовою науковою спільнотою. Виокремлено ключові засади місцевого соціально-економічного розвитку на основі зарубіжного досвіду і визначено основні шляхи їх забезпечення у вітчизняних об’єднаних територіальних громадах.

Peningkatan Aktivitas Dan Kemampuan Mahasiswa Dalam Memecahkan Masalah Dengan Menggunakan Model Pembelajaran Group Investigation (GI) Pada Mata Kuliah Ekonomi Makro Semester Iv Di Universitas Hamzanwadi Tahun Ajaran 2019/2020

This study aims to improve the activity and ability to solve problems in the material Characteristics of developing countries, economic problems and policies in developing countries and economic theories of development and the evolution and characteristics of the Pancasila economic system (SEP) in the fourth semester of the class B Faculty of Economics and Social Sciences, Hamzanwadi University. The form of research used is classroom action research (CAR). The subject of the research was the fourth semester students of Class B. The instrument used in this study was the observation sheet and the test results of students' ability to solve problems. The results showed (1) Group Investigation (GI) learning model can increase student activity in conducting discussions on Evolution material and the characteristics of the Pancasila economic system (SEP) with the percentage of students categorized as very active, active and quite active by 86.21% . (2) Group Investigation Learning Model (GI) can improve student outcomes in solving problems in the Indicators of successful learning outcomes that is equal to 75.86% of students who are capable.

Analysis of the institutional building and sustainable development of higher education in transition economies

The scientific discussion regarding the processes of the origin, formation, sustainable development, and institutional change of economic institutions in transition economies took place almost simultaneously with the transition of these economies from the rails of the administrative-command platform to market forms of economic activity. Since then, it has been actively, continuously and quite sharply raised and discussed in a plethora of scientific publications on the problems of theory and practice of social and economic development using the examples of several countries. Despite the background and history of studying these processes that go almost thirty year back, economic science has not developed a common understanding and generally accepted system of interpretation and interpretation of this relevant phenomenon. This paper provides an analysis of the institutional building and sustainable development of higher education in transition economies. We use the examples of former socialist countries to show how the reforms of higher education intended to increase its competitiveness and international prestige, often backfired and led to institutional issues.

SÍNTESE DA EVOLUÇÃO DOS PRINCIPAIS INDICADORES SÓCIO ECONÔMICOS UTILIZADOS COMO MEDIDA DA DESIGUALDADE SOCIAL NO BRASIL ENTRE OS ANOS 2000 E 2015

O artigo objetiva apresentar os principais conceitos relacionados ao desenvolvimento e verificar como isso tem se dado no Brasil a partir do ano 2000. Especificamente o trabalho objetiva identificar o comportamento dos indicadores socioeconômicos no Brasil a partir de 2000. A metodologia utilizada na pesquisa será a revisão bibliográfica com base nos textos de Souza (2012) e Paulani; Braga (2007) que apresentam as teorias de desenvolvimento econômico, Jannuzzi (2012) trabalha o conceito de indicadores sociais e, Neri e Souza (2012); Oxfam (2017) apresentam o comportamento dos principais índices sociais no Brasil ao longo da década 2000 e descrevem a importância e limitação dos indicadores sociais. Constatou-se que o crescimento econômico no período analisado, junto com a redução das desigualdades de renda, favoreceu a melhoria das condições de vida da população brasileira.

Development alternatives: old challenges and new hybridization in China and Latin America

In the current, dominant conceptualisation of International Development Studies, «development» is based on the emancipation from poverty for the more than one-billion people who are unable to satisfy their basic human needs, in a world that has never been richer in material terms. Critical development studies attempts to understand why the many projects of development that have been implemented have not led to the stated emancipatory goal after five decades of multiple initiatives and resources, and propose alternatives to the conventional model. To that end, this article examines and theorizes the dynamic of capitalist system's development project; offers tools for the analysis of States, societies and communities which have attempted to create better living conditions and defy orthodox models; outline the resistance to capitalism and the search for alternatives in the peripheries; conceptualize peripheral capitalist subdevelopment or development and post-capitalism or post-development from a perspective of unequal development; reveal the failure of dominant economic development theory and policy that is unable to understand or ignores the underlying dynamic of capitalist development. Consequently, the article proposes going beyond capitalism with the forces of progressive change, oriented toward an alternative development. It analyzes case studies in China and Latin America, where a series of hybridizations are identified that could offer lessons for how to create alternatives to capitalism.

Innovations as a Crucial Factor of the Catch-up Economic Growth

Most developing countries, especially transitive economies, face the problem of incapability to significantly increase the value of the national product. This article provides arguments that a fruitful approach to elaborate its challenge is Schumpeter’s theory of innovation economic development. Schumpeter’s little-known methodological invention is analyzed, i.e. that ‘innovations’ are an isolated factor of the catch-up economic growth. Such an approach allows getting to better recognizing the leading role of the strong innovation activities in the catch-up economic policy. The successful economies confirm this invention of Schumpeter and demonstrate that innovation activities provide the desired economic development of the emerging countries. The main findings of this article reveal a conceptual meaning of Schumpeter’s category of ‘innovations’ as an isolated crucial factor of economic development which creates a new added value and distinguishes the phenomenon of ‘innovation’ as a separate factor of economic development in traditional models of economic growth. It becomes very important to recognize the crucial role of the innovation economic policy that supports enterprises with new advanced technology and promotes the high-tech industries development in order to reach dynamic economic growth and to overcome the problem of the ‘middle income trap’ for the emerging market economies, including Ukraine. The methodological possibility to use the innovation policy as a special factor of the catch-up processes in order to enhance country competitiveness is demonstrated.Article received 30.04.2019

When theories don’t fit: Rethinking the theories of economic development for South America

L’article propose d’évaluer l’influence des théories du développement économique sur les performances économiques de deux pays d’Amérique latine en analysant les élites du monde des affaires et le rôle des entreprises étrangères dans deux périodes de croissance économique différentes : la période d’industrialisation menée par l’État (1945-1973).) et l’urgence de la nouvelle économie mondiale (1990-2016). Après avoir passé en revue les principaux arguments des théories néoclassiques et de leurs critiques, nous examinons l’évolution des plus grandes entreprises argentines et brésiliennes afin d’identifier les changements dans la répartition sectorielle des activités contrôlées par les plus grandes, leur part à l’exportation et la présence de multinationales étrangères. Nous constatons qu’au cours de la première période, les politiques économiques incorporaient des éléments de théories différentes, à la fois néoclassiques et critiques, articulant l’entrée de capitaux étrangers avec une coordination étatique et des investissements publics lors de goulets d’étranglement. Au contraire, les politiques économiques mises en place dans les années 90 reposaient exclusivement sur des approches néoclassiques proposant une libéralisation des échanges et la promotion des investissements privés étrangers. En conséquence, les entreprises étrangères ont recherché des loyers dans les services publics et dans les ressources naturelles et ont impliqué « l’étranger » et la « désindustrialisation ».

Lawyers as Trusted Agents in Nineteenth-Century American Commerce: The Influence of Fiduciary Law and Norms on Economic Development

The role of fiduciary law in the development of North American capitalism has been overlooked by institutional economists, who interpret fiduciary law as a form of contract and make the judicial enforcement of contract central to the transaction-cost theory of economic development. This article argues that the emergence of distinctive, equity-based fiduciary laws and norms significantly influenced the development and growth of early-nineteenth-century American markets. Our historical research identifies lawyers as important economic actors, who served as catalysts for the emergence of this governance culture. Lawyers adopted fiduciary principles that allowed them to become trusted intermediaries, thereby addressing the agency-cost problems inherent in complex economic exchange that vex the institutionalists’ contractual account of economic development.

Capitalism after Satoshi

PurposeThe purpose of this paper is to explore the long-run economic structure and economic policy consequences of wide-spread blockchain adoption.Design/methodology/approachThe approach uses institutional, organisational and evolutionary economic theory to predict consequences of blockchain innovation for economic structure (dehierarchicalisation) and then to further predict the effect of that structural change on the demand for economic policy.FindingsThe paper makes two key predictions. First, that blockchain adoption will cause both market disintermediation and organisational dehierarchicalisation. And second, that these structural changes will unwind some of the rationale for economic policy developed through the twentieth century that sought to control the effects of market power and organisational hierarchy.Research limitations/implicationsThe core implication that the theoretical prediction made in this paper is that wide-spread blockchain technology adoption could reduce the need for counter-veiling economic policy, and therefore limiting the role of government.Originality/valueThe paper takes a standard prediction made about blockchain adoption, namely disintermediation (or growth of markets), and extends it to point out that the same effect will occur to organisations. It then notes that much of the rationale for economic policy, and especially industry and regulatory policy through the twentieth century was justified in order to control economic power created by hierarchical organisations. The surprising implication, then, is that blockchain adoption weakens the rationale for such economic policy. This reveals the long-run relationship between digital technological innovation and the regulatory state.