We estimate the effect of broadband infrastructure, which enables high-speed internet, on economic growth in the panel of OECD countries in 1996-2007. Our instrumental variable model derives its ...non-linear first stage from a logistic diffusion model where pre-existing voice telephony and cable TV networks predict maximum broadband penetration. We find that a 10 percentage point increase in broadband penetration raised annual per capita growth by 0.9-1.5 percentage points. Results are robust to country and year fixed effects and controlling for linear second-stage effects of our instruments. We verify that our instruments predict broadband penetration but not diffusion of contemporaneous technologies like mobile telephony and computers.
In order to devise scientific and sustainable development strategy, it is vital to assess the quality of economic growth. As a useful complement to traditional economic indicators, GPI's most reputed ...virtue is its great improvement in evaluating environmental and social costs. In this paper we estimate the GPI for all 31 provinces in mainland China from 1997 to 2016. GPI estimation is highly sensitive to income inequality, climate change damage, and depletion of non-renewables. We address contestable methodological assumptions associated with the three items which have been usually ignored in empirical studies. We use the Atkinson index in place of the Gini index as a measure of income inequality. We avoid the problematic duplicated counting of climate change damage and the unjustified cost escalation factor in depletion of non-renewables. Our results show that: first, GPI per capita has recently declined in some provinces, unveiling a threat to social welfare and sustainability; second, the “relative threshold effect”—the progress of social welfare promotion is slower than the expansion of economic scale—has been found in many provinces; third, resource consumption and environmental pollution, especially water pollution and carbon emissions, would generate substantial welfare losses.
In this article, we review critiques of international business (IB) research with a focus on whether IB scholarship tackles "big questions." We identify three major areas where IB scholars have ...addressed important global phenomena, but find that they have had little influence outside of IB, and only limited effects on business or government policy. We propose a redirection of IB research towards "grand challenges" in global business and the use of interdisciplinary research methods, multilevel approaches, and phenomena-driven perspectives to address those questions. We argue that IB can play a more constructive and vital role by tackling expansive topics at the business-societal interface.
This paper analyzes an emergent stream of research shedding light on the institutional factors shaping entrepreneurial activity and its effect on economic growth. This integrative analysis spanning a ...broad spectrum of diverse literature enables a distinction between two different research lines in the field of entrepreneurship. The findings of this study, based on articles from the journals included in the Web of Science database, facilitate a broader comprehension of two separate lines of research, which allows an analysis of the interaction among institutions, entrepreneurship, and economic growth. The systematic literature analysis over the last 25 years (1992–2016) of research reveals that institutions could be related to economic growth through entrepreneurship, which would open new research questions about what institutional factors are conducive to entrepreneurship, which in turn spurs economic growth. Thus, not only is understanding both complex relationships and their possible sequence useful for planning strategies and public policies, but it is also helpful for advancing and providing new insights in these research fields, which could be complementary and interdisciplinary.
This study empirically investigates the nexus among carbon dioxide (CO2) emissions, economic and population growth, and renewable energy across regions. To do so, an unbalanced panel dataset of 128 ...countries over the period 1990–2014 is utilized. Considering the cross-sectional dependence and slope homogeneity observed in the panel, a series of econometric techniques allowing for cross-sectional dependence and slope homogeneity is employed. The results of cross-sectional dependence and slope homogeneity tests confirm the existence of significant cross-sectional dependence and heterogeneity. The empirical results of the common correlated effects mean group (CCEMG) estimator indicate that, at both the global and regional levels, population size and economic growth positively and significantly influence CO2 emission levels. Furthermore, although increased renewable energy intensity leads to a decline in CO2 emissions for all of the six regions, its coefficient in S. & Cent. America and Europe & Eurasia is considerably higher than the levels seen in other regions, which may be affected by the proportion of renewable energy in the primary energy mix. Finally, the results of panel causality testing provide evidence of varied causality links among the variables across regions.
•Significant cross-sectional dependence and heterogeneity exist.•Population size and economic growth positively and significantly influence carbon dioxide (CO2) emissions.•Renewable energy intensity can lead to less CO2 emissions.•Various causality links exist between the variables across regions.
We present a model of nonbalanced growth based on differences in factor proportions and capital deepening. Capital deepening increases the relative output of the more capital‐intensive sector but ...simultaneously induces a reallocation of capital and labor away from that sector. Using a two‐sector general equilibrium model, we show that nonbalanced growth is consistent with an asymptotic equilibrium with a constant interest rate and capital share in national income. For plausible parameter values, the model generates dynamics consistent with U.S. data, in particular, faster growth of employment and slower growth of output in less capital‐intensive sectors, and aggregate behavior consistent with the Kaldor facts.
Using annual data for 75 countries in the period 1960-2000, we present evidence of a positive relationship between investment as a share of gross domestic product (GDP) and the long-run growth rate ...of GDP per worker. This result is robust for our full sample and for the subsample of non-OECD countries, but not for the subsample of OECD countries. Our analysis controls for time-invariant country-specific heterogeneity in growth rates, and for a range of time-varying control variables. We also address endogeneity issues, and allow for heterogeneity across countries in model parameters and for cross-section dependence.
Are Any Growth Theories Robust Durlauf, Steven N.; Kourtellos, Andros; Tan, Chih Ming
The Economic journal (London),
March 2008, Letnik:
118, Številka:
527
Journal Article
Recenzirano
Odprti dostop
This article investigates the strength of empirical evidence for various growth theories when there is model uncertainty with respect to the correct growth model. Using model averaging methods, we ...find little evidence that so-called fundamental growth theories play an important role in explaining aggregate growth. In contrast, we find strong evidence for macroeconomic policy effects and a role for unexplained regional heterogeneity, as well as some evidence of parameter heterogeneity in the aggregate production function. We conclude that the ability of cross-country growth regressions to adjudicate the relative importance of alternative growth theories is limited.
Secular stagnation on the supply side takes the form of a slow 1.6 percent annual growth rate of US potential real GDP, roughly half the 3.1 percent annual growth rate of actual real GDP realized ...from 1972 to 2004. This slowdown stems from a sharp decline in the growth rate of aggregate hours of work and of output per hour. This paper attributes the productivity growth decline to diminishing returns in the digital revolution that had its peak effect business hardware, software, and best practices in the late 1990s but has resulted in little change in those methods over the past decade.
The KOF Globalisation Index – revisited Gygli, Savina; Haelg, Florian; Potrafke, Niklas ...
Review of International Organizations,
09/2019, Letnik:
14, Številka:
3
Journal Article
Recenzirano
Odprti dostop
We introduce the revised version of the KOF Globalisation Index, a composite index measuring globalization for every country in the world along the economic, social and political dimension. The ...original index was introduced by Dreher (
Applied Economics, 38
(10):1091–1110,
2006
) and updated in Dreher et al. (
2008
). This second revision of the index distinguishes between de facto and de jure measures along the different dimensions of globalization. We also disentangle trade and financial globalization within the economic dimension of globalization and use time-varying weighting of the variables. The new index is based on 43 instead of 23 variables in the previous version. Following Dreher (
Applied Economics, 38
(10):1091–1110,
2006
), we use the new index to examine the effect of globalization on economic growth. The results suggest that de facto and de jure globalization influence economic growth differently. Future research should use the new KOF Globalisation Index to re-examine other important consequences of globalization and why globalization was proceeding rapidly in some countries, such as South Korea, but less so in others. The KOF Globalisation Index can be downloaded from
http://www.kof.ethz.ch/globalisation/
.
PDF
