Traditional Growth Theory Research Articles

Energy Demand in Pakistan: A Disaggregate Analysis

Energy is considered to be the life line of an economy, the most vital instrument of socioeconomic development and has been recognised as one of the most important strategic commodities [Sahir and Qureshi (2007)]. Energy is not only essential for the economy but its supply is uncertain [Zaleski (2001)]. Energy is a strategic source that influenced the outcomes of wars, fueled and strangled economic development and polluted as well as clean up the environment. In the era of globalisation, a rapidly increasing demand for energy and dependency of countries on energy indicate that energy will be one of the biggest problems in the world in the next century. This requires for alternative and renewable sources of energy. Traditional growth theories focus much on the labour and capital as major factor of production and ignore the importance of energy in the growth process [Stern and Cleveland (2004)]. The neo-classical production theories stresses that economic growth increases with the increases in labour, capital and technology. Today energy is indispensable factor and plays an important role in the consumption as well as production process.1 Research suggests that energy plays an important role as compared to other variables included in the production and consumption function for countries which are at intermediate stages of economic development [IEA (2005)]. When we examine disaggregating components of energy demand, it is seen that electricity is the highest quality energy component and its share in energy consumption increases rapidly. Natural gas, petroleum and coal follow electricity respectively.

Volumetric growth of soft tissues evaluated in the current configuration

The growth and remodelling of soft tissues plays a significant role in many physiological applications, particularly in understanding and managing many diseases. A commonly used approach for soft tissue growth and remodelling is volumetric growth theory, introduced in the framework of finite elasticity. In such an approach, the total deformation gradient tensor is decomposed so that the elastic and growth tensors can be studied separately. A critical element in this approach is to determine the growth tensor and its evolution with time. Most existing volumetric growth theories define the growth tensor in the reference (natural) configuration, which does not reflect the continuous adaptation processes of soft tissues under the current configuration. In a few studies where growth from a loaded configuration was considered, simplifying assumptions, such as compatible deformation or geometric symmetries, were introduced. In this work, we propose a new volumetric growth law that depends on fields evaluated in the current configuration, which is residually stressed and loaded, without any geometrical restrictions. We illustrate our idea using a simplified left ventricle model, which admits inhomogeneous growth in the current configuration. We compare the residual stress distribution of our approach with the traditional volumetric growth theory, that assumes growth occurring from the natural reference configuration. We show that the proposed framework leads to qualitative agreements with experimental measurements. Furthermore, using a cylindrical model, we find an incompatibility index that explains the differences between the two approaches in more depth. We also demonstrate that results from both approaches reach the same steady solution published previously at the limit of a saturated growth. Although we used a left ventricle model as an example, our theory is applicable in modelling the volumetric growth of general soft tissues.

An Analysis on Sustainable Development and Green Economy

Sustainability and the green economy are two of the topics most discussed by leaders, academics and the media over the past three decades. This study aims to investigate the understanding of the term 'sustainable development', its components (economic sustainability, social sustainability and environmental sustainability) and the different approaches it proposes relative to traditional growth theories. This study explains that the concept of a green economy will be addressed by demonstrating its role in supporting countries on their path to sustainable development. The paper ultimately concludes that sustainable development and a green economy will be described and implemented through green policies.

Theoretical Study of Chemical Vapor Deposition Synthesis of Graphene and Beyond: Challenges and Perspectives.

Two-dimensional (2D) materials have attracted great attention in recent years because of their unique dimensionality and related properties. Chemical vapor deposition (CVD), a crucial technique for thin-film epitaxial growth, has become the most promising method of synthesizing 2D materials. Different from traditional thin-film growth, where strong chemical bonds are involved in both thin films and substrates, the interaction in 2D materials and substrates involves the van der Waals force and is highly anisotropic, and therefore, traditional thin-film growth theories cannot be applied to 2D material CVD synthesis. During the last 15 years, extensive theoretical studies were devoted to the CVD synthesis of 2D materials. This Perspective attempts to present a theoretical framework for 2D material CVD synthesis as well as the challenges and opportunities in exploring CVD mechanisms. We hope that this Perspective can provide an in-depth understanding of 2D material CVD synthesis and can further stimulate 2D material synthesis.

The role of grain boundary ferrite evolution and thermal aging on creep cavitation of type 316H austenitic stainless steel

Abstract To understand the interaction between microstructural evolution and creep cavitation during stress relaxation at an elevated temperature, an ex-service AISI type 316H stainless steel sample containing both weld metal and heat affected zone (HAZ) from an advanced gas-cooled reactor was studied. Multiple techniques that include secondary electron microscopy, electron backscatter diffraction (EBSD), transmission electron microscopy (TEM) and plasma focused ion beam tomograph were used for microstructure and creep cavities characterisation. Although no creep cavities were observed in the weld metal, the HAZ was extensively creep cavitated. At randomly oriented grain boundaries, creep cavities are present and closely linked with M23C6 and ferrite precipitates formed during thermal aging. Less precipitation (e.g. absence of ferrite) and less creep cavitation were observed at Σ3 coincidence site lattice boundaries. During in-service aging, at random grain boundaries, M23C6 formation and growth cause the local elemental depletion of γ stabilisers and promote a phase transformation from austenite to ferrite. The crystallographic relationship between ferrite and austenite were also studied by EBSD and TEM. Ferrite precipitates formed during aging often grow into the austenite grain not expected by traditional nucleation and growth theory, likely due to physical constraints by the existing carbides at the grain boundaries. The formation and growth of creep cavities is closely associated with the M23C6 and ferrite formed on grain boundaries. This study highlights the importance of considering the effect of thermal aging in accelerating creep cavitation.

Economic Growth in Times of Pandemics

Traditional economic growth theories considered capital and labor as essential growth factors for every economy. Exogenous growth theory is centered on exogenous shocks – like new technology innovations or natural crises, such as pandemics – as major drivers or downturns of economic growth measured in capital and labor impact. Endogenous growth theory then drew attention to dynamic variable interactions between capital and labor but also endogenous growth derived from ideas, innovation and learning. Growth concepts were opened up for innovation generated in productive group interaction and learning inside firms in teams, learning-by-doing while performing tasks and learning-by-using of new technology. The outbreak of the novel Coronavirus (COVID-19) heightened attention for hygiene and healthcare. According to exogenous growth theory, the health risk exposure to the exogenous shock of COVID-19 differs between employees, firms, industries, environments and countries. Health of labor capital but also a risk-free working culture, environment, industry and country will flourish growth in a COVID-19-struck economy. In endogenous growth theory terms, team hygiene and group monitoring of the collective health status but also learning-to-preventing holds future economic growth potential. Applications of the presented COVID-19 adjusted growth models will be discussed with attention to inequality of growth in the digital age. Future research directions are envisioned.

자산가격 변화가 경제적 불평등과 대외경제 변수에 미치는 영향 분석 (Analysis of the Effects of Asset Price Changes on Economic Inequality and External Economic Variables)

자산가격 변화가 경제적 불평등과 대외경제 변수에 미치는 영향 분석 (Analysis of the Effects of Asset Price Changes on Economic Inequality and External Economic Variables)

How Housing Price Fluctuation Affects Resource Allocation: Evidence from China

ABSTRACT A large number of recent proofs indicate the irrationality of optimal resource allocation assumption in traditional economic growth theory, wherein resource misallocation (misallocation of capital and labor among heterogeneous enterprises) is regarded as the important reason for the difference in total factor productivity (TFP). In this article, we study resource allocation from the perspective of housing price, and measure the resource allocation efficiency of industrial enterprises in China based on industrial enterprises database covering the period of 1999–2007. We find that to some extent rising housing price has ameliorated resource allocation efficiency in China recently. We further find that rising housing price ameliorates resource allocation mainly in Central and Western areas and in labor-intensive industries.

A Simple Growth Model Based on Neoclassical Growth, Monopolistic Competition, and Walrasian General Equilibrium Theories

The purpose of this study is to examine economic growth and income and wealth distribution on the basis of Walrasian general equilibrium theory, neoclassical growth theory, and Dixit-Stiglitz monopolistic competitive theory. It makes a unique contribution to the literature of economic growth with perfect competition and monopolistic competition by integrating the basic economic mechanisms in the Walrasian general equilibrium model, the Solow one-sector growth model, and the Dixit-Stiglitz model. The final goods sector in our approach is based on Solow’s one-sector growth model. The issues of distribution are referred to the Arrow-Debreu theory. The market mechanism of perfect competitive markets is based on traditional neoclassical growth theory. We described imperfect competition on the approach basically developed by Dixit and Stiglitz. The paper unifies these approaches by applying the utility function and the concept of disposable income proposed by Zhang. We also deviate from the DixitStiglitz by assuming that non-zero profits are distributed to households. We build and then simulate the model for a three-group economy. We examine the effects of changes in some parameters on transitory processes and long-term equilibrium structure.

International Capital Flows and Structural Change in a Developing Open Economy

This paper studies, how allowing foreign capital flows in a developing economy will impact the inter-sector dynamics in terms of allocation of factors of production, relative output and real exchange rate. This paper introduces foreign capital flows to the theory of structural change and unbalanced economic growth (which is predominantly a closed economy framework). The theory of structural change and unbalanced economic growth takes a contrarian view to the standard growth theoretical models based on “Kaldor Facts”. This theory states that as an economy grows and accumulates capital, the sector that has more income elastic consumption and greater capital intensity grows faster than the sector which has a lower income elastic consumption and lower capital intensity. This asymmetric growth leads to unbalanced economic growth and change in relative price among the sectors. Such divergence in sector-wise growth rates is in contrary to the traditional growth theory (which is based on “Kaldor Facts”). This paper has proposed a developing open economy model having two sectors namely traded sector and non-traded sector. The traded sector has higher income elastic consumption along with higher capital intensity & productivity growth as compared to the non-traded sector. The economy has demand side imbalances in form of non-homothetic preferences. The supply side imbalances is in the form of different capital intensity along with different growth rate of productivity across sectors. We have derived the path of aggregate capital stock per unit of labor, sector-wise allocation of factors of production (capital and labor) and relative price path of non-traded to traded sector goods. The results indicate that as an economy grows and accumulates capital, the factors of production start moving out from non-traded sector to traded sector. As a result, the traded sector starts to grow faster than that of non-traded sector. Also the relative price of non-traded sector to the traded sector goods rises (real exchange rate appreciates) with capital accumulation in the economy thereby creating additional pressure on inflation. This inflationary pressure adversely affects competitiveness of domestic firms in international markets and make domestic investment less attractive. Our findings can be linked with the workings of Kalecki (1955) i.e. “The problem of financing economic development” where it states that as an economy grows the subsistence sector shrinks as compared to the income elastic sector. This causes the aggregate price levels to increase. This paper not only extends the theory of structural change and unbalanced economic growth to open economy framework but also introduces non-homothetic preferences to traditional open economy literature which is based on Dependent Economy Framework which predominantly assumes homothetic preferences.

Exploring the relationship between life expectancy at birth and economic growth in 56 developing countries

# Background Higher income per capita (IPC) means better access to public and private health services those are provided by public or private sectors in a country. Good health service which lowers mortality rates in a country promotes to reach a long living population level with a higher life expectancy at birth (LEB) and healthy labour force enhancing productivity. People feel themselves more productive with a good health care hence increasing productivity and working hours will cause an increase in IPC (economic growth) incessantly. In traditional economic growth theory, labour force which is one of the factors of production function has got an important effect on the country's economic growth. This study aims to investigate the relationship between LEB and IPC data and vice versa for 56 developing countries in North Africa, Middle-East and South-East Asia where most of them are Islamic countries and members of The Organisation of Islamic Cooperation (OIC). # Methods Cross-section data analysis and panel data analysis consisting random and fixed effects estimations were used in the study to investigate the relationship. # Results According to the random and fixed effects estimation models with panel data analysis and cross-section data analysis in the study, LEB is found as one of the determinants of IPC and IPC as a main determinant of LEB in 56 developing countries. Granger causality test is also applied to test the direction of causality between LEB and national IPC for 56 developing countries and it is seen that IPC Granger causes LEB increase and vice versa for panel data. For cross-section data analysis there is no proved correlation between two variables. # Conclusions In the manuscript 56 developing countries were analysed together. LEB and IPC promote each other not at once but in a time period. In the study our results show that economic growth Granger causes LEB increase and vice versa only for panel data not for cross-section data. The case or IPC not increasing to a higher level is called in literature as \Middle Income Trap\. So benchmarking emerging countries is important to show the guidelines avoiding the \Middle Income Trap\.

Scale effect in Turkish manufacturing industry: stochastic metafrontier analysis

Economic theories explain the economic growth affected by accumulation of production factors and increase in productivity and efficiency. Traditional growth theories focus on the first factor where in developing countries, and especially due to the low input of capital, serious problems arise in the growth process. Accordingly, in these countries, increase in the productivity and efficiency and use of the excess capacity has focused. Therefore, the efficiency analysis of economic sectors of these countries, and especially the manufacturing sector and the factors that affect it, is very important to study. The main purpose of this study with respect to the indicators of efficiency of firms operating in Turkey manufacturing industry is to analyze the impact of scale differences on firm performance. The database used in this study is provided from the survey results (2006) belongs to Istanbul OSB, from the balance sheets and income statements of firms registered in IMKB, which operate in Turkey manufacturing industry for the 2006. Furthermore, the database for descriptive analyses was obtained from Statistics Department of Turkey (TUIK) and Turkey’s Development Bank. As the analyzing method, the stochastic frontier is used as well as the metafrontier. According to the frontier function scores in the subsectors, in small-scale firms MP, FDT and MEMSAS subsectors and in medium- and large-scale firms OCP, FDT and TSL subsectors are the most efficient subsectors. Also, according to the metafrontier function scores in the subsectors, in small-scale firms MP, MMR and OCP subsectors and in medium- and large-scale firms MP, TSL and OCP subsectors are the most efficient subsectors. Some of the results of this study reveal that, except of food stuffs and drinks (FDT) oil, chemistry, petrochemical and its derivatives (OCP) subsectors, the production inefficiency which occurs in other subsectors due to conditions of increasing return to scale is significantly caused by the operation carried out below the optimal production scale. In addition, except BMI subsector, in all other subsectors, it is seen that production scale has large impact on the efficiency of the firm and also the average efficiency of medium- and large-scale firms in each subsector is higher than the average efficiency of small-scale firms of same subsector.

Education and New Theories of Growth

The concept of Human Capital arose out of the awareness that physical capital alone was not enough to explain long run growth. The failure to treat human resources explicitly as a form of capital, as a produced means of production, as the product of investment, was a major drawback of the classical notion of labour. The classical economists viewed labour as a capacity to do manual work requiring little knowledge and skill, a capacity with which, according to this notion, labourers are endowed about equally. Although Adam Smith and Irving Fisher were among the first to clearly present an all-inclusive concept of capital, the mainstream thought was that it was neither appropriate nor practical to apply the concept of capital to human beings. The paper tries to summarize the literature on interrelation between education and Human Development. In this paper we first introduce the concept of Human Capital as envisaged in the post 1960 era with the pioneering work by TW Schultz and some other studies on Human Capital. We then move on to the New Theories of Growth which tried to rectify the shortcomings of the traditional growth theories by encompassing the concept of Human Capital. That Human Capital plays a very important role in economic development has been empirically validated by the growth experiences of South Korea, Japan and the developed countries in the west. We consider this issue in this paper and try to highlight some important facts in this regard with respect to India, Indonesia and Japan.

Konfrontace závěrů neoklasické teorie růstu a nové teorie růstu a alternativní vysvětlení rozdílů v ekonomické výkonnosti

The paper in the first instatnce resumes the conclusions of the most important contemporary growth approaches – the Neoclassical Growth Theory and the New Growth Theory. In the third part there are discused crucial aspects of the both growth approaches and are mentioned some empirical arguments. The final part of this paper presents three conclusions: the challenge to validity of the New Growth Theory. The question about the basic traditional growth theory assumption that individual economies occur the production possibility frontier. And finally the conviction that the necessary condition for the succesful economic development is the right institutional system.

Retrieving latent heating vertical structure from cloud and precipitation Profiles—Part I: Warm rain processes

An exploratory study on physical based latent heat (LH) retrieval algorithm is conducted by parameterizing the physical linkages of hydrometeor profiles of cloud and precipitation to the major processes related to the phase change of atmospheric water. Specifically, rain events are segregated into three rain types: warm, convective, and stratiform, based on their dynamical and thermodynamical characteristics. As the first of the series, only the warm rain LH algorithm is presented and evaluated here. The major microphysical processes of condensation and evaporation for warm rain are parameterized through traditional rain growth theory, with the aid of Cloud Resolving Model (CRM) simulations. The evaluation or the self-consistency tests indicate that the physical based retrievals capture the fundamental LH processes associated with the warm rain life cycle. There is no significant systematic bias in terms of convection strength, illustrated by the month-long CRM simulation as the mesoscale convective systems (MCSs) experience from initial, mature, to decay stages. The overall monthly-mean LH comparison showed that the total LH, as well as condensation heating and evaporation cooling components, agree with the CRM simulation.

Population dynamics and utilitarian criteria in the Lucas–Uzawa Model

This paper introduces population growth in the Uzawa–Lucas model, analyzing the implications of the choice of the welfare criterion on the model's outcome. Traditional growth theory assumes population growth to be exponential, but this is not a realistic assumption (see Brida and Accinelli, 2007). We model exogenous population change by a generic function of population size. We show that a unique non-trivial equilibrium exists and the economy converges towards it along a saddle path, independently of population dynamics. What is affected by the type of population dynamics is the dimension of the stable manifold, which can be one or two, and when the equilibrium is reached, which can happen in finite time or asymptotically. Moreover, we show that the choice of the utilitarian criterion will be irrelevant on the equilibrium of the model, if the steady state growth rate of population is null, as in the case of logistic population growth. Then, we show that a closed-form solution for the transitional dynamics of the economy (both in the case population dynamics is deterministic and stochastic) can be found for a certain parameter restriction.

Useful work and information as drivers of economic growth

A semi-empirical endogenous growth theory was proposed by the authors in 2005. It is based on a model of the economy as a two-stage materials/energy processing system. Growth is simulated by a two-parameter production function with two traditional factors, labor and capital, and a non-traditional factor, namely ‘useful work’. The non-traditional factor is calculated from primary energy inputs multiplied by an empirically estimated average energy conversion efficiency, which is a function of changing technology over time. This model ‘explains’ past US growth from 1900 through 1973–74 with satisfactory accuracy but it slightly underestimates subsequent growth ( i.e. it leaves a small unexplained but increasing residual) for the period after 1975. However, by subdividing capital stock into traditional and ICT components, we are able to extend the theory to explain US economic growth accurately. In this paper we also extend the results to Japan. The revised production function has only three independent parameters. The new model also has implications for future economic growth, energy and environmental policy that differ significantly from the traditional growth theory. These implications are discussed briefly.

Endogenous Growth in Entrepreneurial Environments: A Path-Dependent Process for Competitive Regional Development

How can regions maximize their competitive advantage? Traditional neoclassical growth theory stresses regional comparative advantage under assumptions of perfect competition and constant returns to scale. Recent endogenous growth theory emphasizes increasing returns and competitive advantage as the ‘opportunity’ source of perpetual growth within business cycles. This article suggests a merger of these neoclassical perspectives, proposing ‘competitive regional development’ (CRD). The dynamic nature of discontinuous, clustering, and creatively-destructive Schumpeterian innovation can self-reinforce the path-dependency of externalities and scale effects in agglomeration. Proposed are increasing externalities and scale effects within an entrepreneurial environment where innovation can be incubated, nurtured, and diffused.

MODEL PERTUMBUHAN EKONOMI DUA DAERAH DAN SIMULASI EFEK PERUBAHAN PARAMETERNY

The traditional growth theory usually considers only the accumulation of conventional inputs of labor and capital as the primary variables responsible for the growth. It has been proven to be insufficient for explaining the complexity of modern economic growth. This thesis aims to study a two-region economic growth model proposed by Zhang (2005). This model explains the dynamics of economic system based on capital and knowledge accumulation. It also considers relationships between regional growth and regional trade patterns. Each region's production is similar to the standard one-sector growth model. Knowledge accumulation is assumed to be accomplished through learning by doing. Unfortunately, in obtaining the equilibrium solution of the model Zhang made some mistakes. Therefore, this thesis offers some corrections. The analysis done in this thesis includes obtaining equilibrium of the economic system and its feasibility conditions. Some results of simulation study show that knowledge improvement is more effective to increase equilibrium value of economic growth compared to improvement in investment or amenity level.

Technological Shifts and Convergence in a European Perspective since 1950

The paper analyses the behaviour of convergence/divergence primarily within Western Europe and the OECD in relation to market integration and to major technological shifts such as the second and the third industrial revolution. It also relates the behaviour to traditional growth theory and endogenous growth theory as well as to historical generalisations based on structural analysis. The empirical focus is on an econometric analysis of convergence/divergence since 1950 in order to develop measures of these forces as continuous processes over time. The analysis indicates trend shifts from convergence to divergence with the appearance of stronger divergent forces in combination with the major technological shifts. There is as well a cyclical variation between divergence/convergence from the 1970s. It also indicates a pronounced structural divergence from 1990 in combination with accelerated growth in mainly English-speaking economies.