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Author: Iqtiaruddin Md Mamun Publisher: ISBN: Category : Languages : en Pages : 220
Book Description
The central theme of this thesis is capital accumulation. The thesis reports that increase in economic growth rate and reduction in income inequality boosts capital accumulation that in turn reduces unemployment. Three essays constitute the thesis. The first essay investigates whether saving has been driven by growth or gowth has been driven by saving using data of Asian Miracle Economies (AME) - India, Indonesia, Singapore, South Korea, and Taiwan - over the period 1870-2011.The second essay explores the effect of income inequality on capital accumulation using the data of 20 OECD countries - Canada, USA, Japan, Australia, New Zealand, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherland, Norway, Portugal, Spain, Sweden, and UK - over the period 1870-2011. The effect of capital accumulation on unemployment in 21 OECD countries - Canada, USA, Japan, Australia, New Zealand, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherland, Norway, Portugal, Spain, Sweden, Switzerland and UK - has been explored in the third essay. Following the neoclassical revival some economists attribute the amazing productivity growth rate in Asian Miracle Economies (AME) to capital accumulation while assign the backseat to the technological progress - the so called Krugman-Young hypothesis in which saving and schooling are independent of growth. However such assumption is questionable as from the perspective of growth accounting using Cobb-Douglas production function, theories of saving and the scenario that in AMEs prior to WWII living standard was close to subsistence level thus leaving less opportunity of saving and only after WWII with the increase in living standard financial saving and education increase it may be shown that saving and education are not exogenous and independent of growth. The first essay addresses this endogeneity and applying a two-way identification strategy and unique data covering the period 1870-2011 for the AMEs finds that financial saving as well as education comes from productivity growth, financial saving has no significant effect on growth but growth is positively related to the change in educational attainment. These results are robust to choice of instrument set, productivity measurement, the choice of growth model, measurement of saving, inclusion of covariates, and to the choice of estimation period. The essay contributes to the literature explaining that productivity growth drives fixed and human capital accumulation as in the growth controversy it has never been asked and the factor accumulation hypothesis never explains from where the savings come and very little work, if any, has investigated whether growth influences education. The findings of the existing empirical literature suggest that the effect of income inequality on savings is either positive or insignificant. The reason for such findings of the existing empirical literature may be that in estimating the coefficient of income inequality on savings the positive feed-back effect from savings to income inequality has not been dealt with adequately. The second essay takes this endogeneity arising from positive feed-back effect of savings to income inequality in to consideration and applies a two-way identification strategy and unique data covering the period 1870-2011 for 20 OECD countries andfinds that income inequality affects savings negatively. The finding is robust to variation in estimation periods, different measures of saving and inequality and the inclusion of important confounding variables such as financial development, growth and education. Following the seminal work of Layard, Nickell, and Jackman (2005) that propounds no linkage between capital accumulation and unemployment based on the assumption of elasticity of substitution between capital and labour equals unity the role of capital accumulation has been deemphasized for long in explaining unemployment. And the emphasis was on labour market deregulation for reducing unemployment as labour market rigidities arising from trade union power; labour taxes, generous welfare benefits, strict employment protection, and other institutional factors were considered to be the main determinants of unemployment. The third essay using the data for the largest number of countries over the longest period of time - 21 OECD countries over the period 1870-2011- with wage push and aggregate demand factors being taken in to account finds that capital accumulation is important in reducing OECD unemployment.
Author: Iqtiaruddin Md Mamun Publisher: ISBN: Category : Languages : en Pages : 220
Book Description
The central theme of this thesis is capital accumulation. The thesis reports that increase in economic growth rate and reduction in income inequality boosts capital accumulation that in turn reduces unemployment. Three essays constitute the thesis. The first essay investigates whether saving has been driven by growth or gowth has been driven by saving using data of Asian Miracle Economies (AME) - India, Indonesia, Singapore, South Korea, and Taiwan - over the period 1870-2011.The second essay explores the effect of income inequality on capital accumulation using the data of 20 OECD countries - Canada, USA, Japan, Australia, New Zealand, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherland, Norway, Portugal, Spain, Sweden, and UK - over the period 1870-2011. The effect of capital accumulation on unemployment in 21 OECD countries - Canada, USA, Japan, Australia, New Zealand, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherland, Norway, Portugal, Spain, Sweden, Switzerland and UK - has been explored in the third essay. Following the neoclassical revival some economists attribute the amazing productivity growth rate in Asian Miracle Economies (AME) to capital accumulation while assign the backseat to the technological progress - the so called Krugman-Young hypothesis in which saving and schooling are independent of growth. However such assumption is questionable as from the perspective of growth accounting using Cobb-Douglas production function, theories of saving and the scenario that in AMEs prior to WWII living standard was close to subsistence level thus leaving less opportunity of saving and only after WWII with the increase in living standard financial saving and education increase it may be shown that saving and education are not exogenous and independent of growth. The first essay addresses this endogeneity and applying a two-way identification strategy and unique data covering the period 1870-2011 for the AMEs finds that financial saving as well as education comes from productivity growth, financial saving has no significant effect on growth but growth is positively related to the change in educational attainment. These results are robust to choice of instrument set, productivity measurement, the choice of growth model, measurement of saving, inclusion of covariates, and to the choice of estimation period. The essay contributes to the literature explaining that productivity growth drives fixed and human capital accumulation as in the growth controversy it has never been asked and the factor accumulation hypothesis never explains from where the savings come and very little work, if any, has investigated whether growth influences education. The findings of the existing empirical literature suggest that the effect of income inequality on savings is either positive or insignificant. The reason for such findings of the existing empirical literature may be that in estimating the coefficient of income inequality on savings the positive feed-back effect from savings to income inequality has not been dealt with adequately. The second essay takes this endogeneity arising from positive feed-back effect of savings to income inequality in to consideration and applies a two-way identification strategy and unique data covering the period 1870-2011 for 20 OECD countries andfinds that income inequality affects savings negatively. The finding is robust to variation in estimation periods, different measures of saving and inequality and the inclusion of important confounding variables such as financial development, growth and education. Following the seminal work of Layard, Nickell, and Jackman (2005) that propounds no linkage between capital accumulation and unemployment based on the assumption of elasticity of substitution between capital and labour equals unity the role of capital accumulation has been deemphasized for long in explaining unemployment. And the emphasis was on labour market deregulation for reducing unemployment as labour market rigidities arising from trade union power; labour taxes, generous welfare benefits, strict employment protection, and other institutional factors were considered to be the main determinants of unemployment. The third essay using the data for the largest number of countries over the longest period of time - 21 OECD countries over the period 1870-2011- with wage push and aggregate demand factors being taken in to account finds that capital accumulation is important in reducing OECD unemployment.
Author: Chang Gyu Kwag Publisher: ISBN: Category : Languages : en Pages :
Book Description
Essay one is concerned with how and why an individual invests in human capital and how tax policy affects investment in human capital. We examine optimal investment in human capital and the effect of tax policy on human capital formation, and test several hypotheses derived from the theory using U.S. time-series data. Investment in human capital in terms of college enrollment rates is positively related to family income, rate of return to human capital, and unemployment rates, while it is negatively related to educational cost, and rate of return to physical capital. In addition, the average income tax rates show a negative effect on college enrollment rates. Essay two discusses human capital and economic growth. We first investigate the elasticities of substitution among inputs using the nested constant elasticity of substitution production function to focus on the so-called capital-skill complementarity hypothesis. We here compare two models: one is a model with human capital and raw labor, and the other is a model with higher skilled labor and lower skilled labor. In both models, the elasticities of substitution among inputs are very low, but the complementarity hypothesis is still weakly confirmed. Human capital turns out to be essential in achieving medium-term economic growth empirically. We also demonstrate the key role of human capital in the long-term steady state within the context of the endogenous growth model. Essay three considers the role of human capital on income distribution. Using the nested CES production function, we first derive factor shares, and then examine the relationship between functional and personal income distribution. An increase in share of labor income reduces overall income inequality, while an increase in share of transfer income has a negative effect on income distribution. Human capital, especially primary and secondary level of human capital stock, is a crucial factor in reducing income inequality. Finally, this study develops and presents new estimates of human capital stock in the United States, as well as annual earnings, and labor force by education level for the period 1947-1989. Data shows that the growth rate of GNP is very closely related to that of human capital stock. (Abstract shortened with permission of author.).
Author: Shi Li Publisher: Cambridge University Press ISBN: 1107002915 Category : Business & Economics Languages : en Pages : 531
Book Description
This book examines the evolution of economic inequality in China from 2002 to 2007; a sequel to Inequality and Public Policy in China (2008).
Author: Mr.Shekhar Aiyar Publisher: International Monetary Fund ISBN: 1484396987 Category : Business & Economics Languages : en Pages : 23
Book Description
We posit that the relationship between income inequality and economic growth is mediated by the level of equality of opportunity, which we identify with intergenerational mobility. In economies characterized by intergenerational rigidities, an increase in income inequality has persistent effects—for example by hindering human capital accumulation— thereby retarding future growth disproportionately. We use several recently developed internationally comparable measures of intergenerational mobility to confirm that the negative impact of income inequality on growth is higher the lower is intergenerational mobility. Our results suggest that omitting intergenerational mobility leads to misspecification, shedding light on why the empirical literature on income inequality and growth has been so inconclusive.
Author: Ms. Valerie Cerra Publisher: International Monetary Fund ISBN: 1513572660 Category : Business & Economics Languages : en Pages : 54
Book Description
Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.
Author: Ms.Era Dabla-Norris Publisher: International Monetary Fund ISBN: 1513547437 Category : Business & Economics Languages : en Pages : 39
Book Description
This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
Author: Amit Bhaduri Publisher: Oxford University Press, USA ISBN: Category : Business & Economics Languages : en Pages : 308
Book Description
This is a collection of essays spanning a wide range of topics in micro-, macro-, and development economics. The author departs from the dominant neo-classical tradition and examines alternative approaches for analyzing theories of growth and distribution, planning techniques for project evaluation, problems of unemployment in advanced capitalist economies, and backward agriculture.
Author: Nadzeya Abramava Publisher: ISBN: Category : Economic development Languages : en Pages :
Book Description
This dissertation consists of three essays on the processes of economic growth. In the first chapter I show how growth behaves when protesting occurs. I continue with the topic of protests in the second chapter, where I consider the effect of political unrest on economic inequality. In the final chapter, I study the impact joining the WTO has on the composition of trade flows that may affect long term growth. Protests occur regularly and at times involve millions of people, often disrupting economic activity. In Chapter 1 I examine the link between economic growth and protest events using the Global Database of Events, Language and Tone (GDELT). This dataset provides daily observations on protests and similar events for a panel of 150 countries over the past three decades. I show that protests have a significant negative relationship with short term growth. On average, protest activity is associated with a drop in growth of at most 1.5 percentage points of growth rate in the year of the protest event(s) with this effect persisting in subsequent years. Further, I reject the hypothesis that protesting can improve or damage GDP growth in the longer run. Protests also impact negatively other aggregate outcomes that may serve as channels through which protesting influences the growth rate. I establish that during the year of the protest gross capital formation declines, while unemployment goes up. The magnitudes of these effects are non-trivial even though the overall impact on economic growth is quantitatively small. Protesting might affect the level of inequality in a country through post-protest redistributive policies. In Chapter 2 I study the relationship between protesting and inequality using a panel of 74 countries over 1979-2012. I find that across most of the specifications the effect of protesting on inequality, determined by the Gini Index, is negative and statistically significant. On average, a 1% increase in protest activity decreases the Gini index immediately by 0.01 points. These results are robust to different ways of defining the protest variable itself such as number of protests or the intensity of protesting measured by the media coverage. A binary measure based on the intensity of protesting indicates that a large enough protest reduces inequality, lowering the Gini Index by 1.6 -- 2.1 points. When countries join the World Trade Organization (WTO), they gain mostly unhindered access to new markets allowing them to trade more. While it has been shown in the literature that after accession to the WTO volume of trade increases for the new members, it is unclear what effect, if any, the membership has on the composition of trade. Developing countries may be negatively affected through crowding-out of vital sectors due to foreign competition or positively --- through strengthening of the sectors with comparative advantage. Using gravity equation estimation I show that while the volume of exports and imports increases after countries become WTO members, the resulting changes in the composition of trade differ depending on the sector and the income level. For example, in a developing country accession to the WTO increases the share of textile sector in total imports by 0.5%, while the same sector's share decreases by 33% when it comes to exports.
Author: Jeffrey G. Williamson Publisher: Edward Elgar Publishing ISBN: Category : Business & Economics Languages : en Pages : 360
Book Description
This important book reflects the exciting developments in the economic understanding of the Third World. Jeffrey Williamson argues that Third World analysts ignore economic history at their peril, and uses it to speak to the issues of the 1990s with fresh eloquence. Economic knowledge of Third World development has undergone a transformation since the mid 1970s. Improvements in data, new theory and a revolution in policy, have, as a result, produced a dramatic evolution in development thinking. In this collection Professor Williamson presents a discussion of accumulation, inequality and growth from a historical perspective, but the agenda in each essay is explicitly moulded by the contemporary debate. The book will appeal to economic historians, development analysts and practitioners concerned with economic growth in the Third World.
Author: Iqtiaruddin Md Mamun
Author: Iqtiaruddin Md Mamun
Author: Claudia Trentini
Author: Chang Gyu Kwag
Author: Shi Li
Author: Mr.Shekhar Aiyar
Author: Ms. Valerie Cerra
Author: Ms.Era Dabla-Norris
Author: Amit Bhaduri
Author: Nadzeya Abramava
Author: Jeffrey G. Williamson