Entrepreneurship,income distribution and economic growth

Traditionally different factors and variables have been considered in the economic growth models. Following Solow’s model, economists considered physical capital and technology during 1950s–1980s. With the introduction of endogenous growth models, new forms of capital were introduced in the production function; human capital, public capital and more recently social capital. However, the consideration of qualitative variables is necessary to improve the economic growth analysis. The improvement of statistical information has favored their introduction in the economic growth models. Recently, “entrepreneurship” concept has been considered in this type of analysis. Entrepreneurship considers the capacity and ability to create new business and production activity. It is an activity not an occupation. Some authors like Schumpeter have included it in their models and they have analysed its effects on economic growth. But it is also necessary to include the role of social climate, that in a schumpterian way it could be represented by income distribution. The main objective of the paper is to analyze the relationship between entrepreneurship, income distribution and economic growth following the ideas developed by Schumpeter and we will contrast them from a empirical analysis using the GEM (Global Entrepreneurship Monitor) data.     

Regional income inequality and economic development

It is the purpose of this paper to critically re-examine Williamson's original axiom of regional inequality as it relates to the process of national development under a new dimension: income distribution disparities within the population of the regions. The dynamic association between inequality and development in general and the convergence hypothesis in particular will be retested. Instead of Williamson's coefficient of variation we introduce a set of Regional Dissimilarity Indices that measures the dissimilarity of the spatial distribution of population by income at the national level.     

Corruption, economic growth, and income inequality in Africa

This paper uses panel data from African countries and a dynamic panel estimator to investigate the effects of corruption on economic growth and income distribution. I find that corruption decreases economic growth directly and indirectly through decreased investment in physical capital. A unit increase in corruption reduces the growth rates of GDP and per capita income by between 0.75 and 0.9 percentage points and between 0.39 and 0.41 percentage points per year respectively. The results also indicate that increased corruption is positively correlated with income inequality. The combined effects of decreased income growth and increased inequality suggests that corruption hurts the poor more than the rich in African countries. Received: March 19, 2001 / Accepted: December 14, 2001 RID="*" ID="*" An earlier version of this paper was presented at the first AmFiTan International Conference on Development Ethics in February 2000, Dar er Salaam, Tanzania. I thank two anonymous referees of this Journal for helpful suggestions. I am, however, solely responsible for any remaining errors.     

Linkages between income inequality,international remittances and economic growth in Pakistan

This paper explores the dynamic linkages between income inequality, international remittances and economic growth using time series data over the period of 1976–2006 in case of Pakistan. The cointegration analysis based on the bounds test confirms the existence of a long-run relationship between income inequality, international remittances and economic growth. Our results reveal that income inequality and international remittances enhance economic growth. The causality analysis based on innovative accounting approach shows bidirectional causal relationship between income inequality and economic growth and same is true for international remittances and income inequality. International remittances are cause of economic growth but not vice versa. Although we find support for Kuznets hypothesis but Pakistan is yet to benefit, in terms of reducing the gaps of income inequality, from the international flow of remittances and economic growth. The paper argues that, from a policy perspective, there is an urgent need for policy makers in Pakistan to reduce the widening gap of income inequality by focusing on income redistribution policies and to go beyond the traditional factors in balancing income inequality.     

Evidence on agglomeration economies,diseconomies, and growth

Conventional urban economic analysis suggests that a local economy's size is closely related to a number of features, including levels of human capital and the availability of specialized inputs, which are likely to influence positively the rate at which it accumulates further economic activity. At the same time, urban theory also suggests that once cities reach a certain level of size, these agglomeration benefits begin to peter out, while diseconomies rise rapidly. Consequently, we should see an ‘inverted U‐shaped’ pattern of growth with respect to economic size—rates of growth first rise, then fall as size increases. This paper shows that, while such a pattern is largely absent from recent data on growth in metropolitan area population and employment, it emerges strikingly in county‐level data. Copyright © 2002 John Wiley & Sons, Ltd.     

Digital economy,agglomeration, and entrepreneurship in Chinese cities

This study investigates the digital economy's influence on entrepreneurship and the role of economic agglomeration in its mechanism. Employing yearly prefecture-level city data from China (2011–2019) and panel econometric techniques, we show that the digital economy has a significant positive effect on entrepreneurship activity; this effect is maintained following endogeneity, alternative explanatory variable, sample composition, and other robustness checks. Regional heterogeneity analysis shows that the digital economy's impact was greatest on the western region, followed by the central and eastern regions. We also identify agglomeration-related channels (output and employment density) through which the digital economy promotes entrepreneurship.     

Stochastic dominance and statistical comparisons of income distribution functions

This paper assesses the economic well being of the U.S. elderly population by applying asymptotically distribution-free statistical tests of stochastic dominance relations characterizing income distribution functions. The procedure is new and overcomes serious difficulties encountered in naive comparisons of summary statistics which are widely used in assessing economic well being. An important advantage of this approach is that it exploits all the information contained in the income distribution function. Application of the method to compare the elderly population to the entire U.S. population in the 1980's reveals evidence of a higher per capita level of economic well being among older Americans. The method can be applied to other socioeconomic groups and in other countries provided that appropriate micro data are available.     

Corruption,regulation, and growth: an empirical study of the United States

This paper investigates whether the costs of corruption are conditional on the extent of government intervention in the economy. We use data on corruption convictions and economic growth between 1975 and 2007 across the US states to test this hypothesis. Although no state approaches the level of government intervention found in many developing countries, we still find evidence for the “weak” form of the grease-the-wheels hypothesis. While corruption is never good for growth, its harmful effects are smaller in states with more regulation.     

新疆区域城市经济发展的动态特征及战略选择

新疆城市化水平还处于较低发展层次。二元经济转化缓慢,虽然新疆城市密度低,但单个城市人口密度大,工业发展未能吸纳更多的乡村人口转入城市,工业化没有起到推动城市发展扩张的作用,城市化滞后也影响了工业化。运用主成分分析方法进行动态评价,从动态分布情况看,新疆地区各城市经济区域的差异十分明显。在城市发展战略上,新疆城市化的发展应当采取非均衡发展模式,扩大城市规模,提升城市经济发展水平,     

Interest rates, income, and home improvement decisions

The demand for additional housing is modeled demonstrating that higher interest rates make home improvements more attractive relative to moving when homeowners hold fixed rate mortgages. Technological constraints on home improvements make improving less attractive relative to moving when incomes have risen. Empirical evidence using cross-sectional data is presented suggesting that the probability of making home improvements is positively related to increases in the current interest rate and negatively related to increases in income. An explanation is offered for the recent rise in home improvement expenditures in the face of slower economic growth and higher mortgage interest rates.     

Oil dependence and entrepreneurship: Non-linear evidence

This study examines the empirical nature of the oil dependence-entrepreneurship nexus, building on recent research that extends the “resource curse” beyond its effects on economic growth. For the period from 2006 to 2018, the sample includes 115 countries at various stages of economic development. Using panel threshold methods, we discover an inverted U-shaped relationship, indicating that even small increases in oil rents increase entrepreneurship below the threshold. Globally, oil rents above a threshold of 77 % stifle entrepreneurship. Regional differences and institutional vulnerability act as moderators.     

Evaluating the impacts of the COVID-19 pandemic on unemployment,income distribution and poverty in Turkey

In the recent World Economic Outlook, the IMF indicates that world output shrank by 3.5% in 2020. Despite all pessimistic expectations, the Turkish economy was one of the few countries to have a positive, albeit low, economic growth rate in 2020. This was, however, achieved at the expense of high social and economic costs. The present research examines the distributional costs of this economic growth during the pandemic and suggests economic measures required to control them. The empirical examination is based on generating unavailable income and living conditions for 2020 by using the results available in TurkStat’s 2017 Income and Living Conditions Survey. The actual changes in sectoral output and employment, which are available as of March 2021, are used to generate changes in the income levels of households in TurkStat’s 2017 survey. The research empirically shows that adequate fiscal support with a large scope for households and businesses is necessary to compensate for economic losses caused by the pandemic. The short-run working allowance policy appears to have been very important to improve income distribution, which might have deteriorated due to the pandemic. Direct cash support to households is considered another essential policy measure that is required to mitigate the severity of increased poverty.     

Demographic transition and economic growth in China,India and Pakistan

The authors of this paper adopt a Solow–Swan model extended to include demographic variables to analyze the overall effect of demographic transition on economic growth. The results, based on data from seventy countries over the period 1961–2003, reveal that GDP per capita growth is positively related to the growth differential between the working-age population and the total population, and negatively related to child and old-age dependency ratios. Based on these results, they find that population dynamics explain 46 percent of economic growth in per capita GDP in China over the period 1961–2003, 39 percent in India, and 25 percent in Pakistan. Furthermore, population dynamics are expected to have a positive effect on economic growth in India and Pakistan over the period 2005–2050, and a negative effect in China.     

Large,entrepreneurship and regional development policy: ‘growth poles’ in the Mezzogiorno over 40 years

Large firms are often perceived by economists and policy-makers as ‘growth poles’ to promote development in backward regions. The idea behind the ‘growth poles’ is that large firms may have a leverage effect on the birth and growth of small and medium sized firms. Regional policy in Italy, particularly in the Mezzogiorno, has subsidized large external plants since the 1950s. A new wave of planning agreements in the 1990s is going to redesign and to strengthen this policy orientation. This paper offers empirical data on plant location and growth at provincial level over 40 years. There is no evidence of overall long term growth impact of large acternal plants in the Mezzogiorno, while there are interesting variations by sectors. A theoretical interpretation of the impact of large firms on local entrepreneurial resources is offered, pointing to the negative effects of large firms on the supply of local entrepreneurship. Policy implications are discussed.     

The problem of population and growth: a review of the literature from Malthus to contemporary models of endogenous population and endogenous growth.

This review traces the evolution of literature on population and economic growth through the main paradigms suggested to explain the observed covariation of per capita income and population levels (or their rates of growth) over time and space, and determine which public policies will improve the human condition. As the main paradigms evolved, key variables were progressively treated as endogenous (instead of exogenous) to the growth process. After the introduction, section 2 looks at the "classical model" of Malthusian population theory and its refinements. Section 3 identifies empirical data that bears on the secular and cross-sectional association between levels of rates of growth of population and per capita income. The inconsistency of these data with the classical model helps explain declining interest in this model over time and increased interest in a more systematic type of population and growth theory. The beginning of this new interest is traced in section 4 with a look at the "neo-classical growth model" and the reformulated theory of population, which was based on Becker's work on fertility behavior. The first line of inquiry branching from these theoretical works (section 5) treats population as an endogenous variable in static and dynamic settings. The second line of inquiry (section 6) analyzes population and growth within a unified model of growth and development. In section 7, recent studies of key policy issues (population control policies, mandatory social security schemes) are surveyed. The concluding section notes that contemporary research must face the challenge of providing additional insights into longevity as an aspect of economic growth and development and of developing a model of endogenous population and economic growth based on heterogeneous agents.     

Public spending,public governance and economic growth at the Vietnamese provincial level: A disaggregate analysis

This study examines the role of economic governance in the relationship between public spending, private investment, and economic growth in Vietnam at the provincial level. The study data consist of sixty-two Vietnamese provinces for the period 2006–2015. Some notable results are attained by applying a sequential (two-stage) estimation. First, the marginal benefits to economic growth of increased Vietnamese provincial government expenditures may be constrained because of the inefficiency of expenditures on education, business services, and public administration. Second, public spending and private investment are found to be substitutes at the provincial level. Third, based on the Provincial Competitiveness Index (PCI) ranking, used as a proxy for provincial public governance in Vietnam, the significance of public governance can be observed. The study concludes that good governance, characterized by different attributes, such as lower informal charges, greater transparency, and unbiased policy, plays a critical role in improving the impact of government expenditure on economic growth in Vietnamese provinces, particularly through its interactions with private sector investment.     

金融发展、FDI与经济增长

本文基于拉姆齐—卡斯—库普曼斯模型,利用中国29个省、市、自治区1978～2004年的面板数据,研究金融发展、外商直接投资(FDI)对经济增长的影响。研究显示FDI在一定水平下,对东道国资本积累和产出增长的影响是非线性的,随着外资数量的逐渐增加,其对资本积累和产出增长的促进效应逐渐下降,FDI进入初期的正影响最终转为负影响,研究还显示FDI在数量一定的情况下,金融发展对本国资本积累和产出增长有正影响。金融发展通过有利于吸引外商直接投资、为外资企业提供金融服务,将潜在的溢出效应转化为现实生产力,显著地促进了经济增长。     

Technical Efficiency of Australian Wool Production: Point and Confidence Interval Estimates

A balanced panel of data is used to estimate technical efficiency, employing a fixed-effects stochastic frontier specification for wool producers in Australia. Both point estimates and confidence intervals for technical efficiency are reported. The confidence intervals are constructed using the multiple comparisons with the best (MCB) procedure of Horrace and Schmidt (1996, 2000). The confidence intervals make explicit the precision of the technical efficiency estimates and underscore the dangers of drawing inferences based solely on point estimates. Additionally, they allow identification of wool producers that are statistically efficient and those that are statistically inefficient. The data reveal at the 95% level that twenty-one of the twenty-six wool farms analyzed may be efficient.     

CONVERGENCE AND ECONOMIC PERFORMANCE IN GREECE: EVIDENCE AT REGIONAL AND PREFECTURE LEVEL

The purpose of this paper is to test regional convergence and to investigate interregional disparities in terms of per capita income in Greece. The novelty of our study lies in the use of a disaggregated dataset for an extended time period (1971–2003) at two regional levels (NUTS II & NUTS III). Our results indicate that there is β convergence between prefectures but not among regions, while no evidence of σ convergence is found at both regional levels. Also, the GDP geographic concentration and population density have a negative impact on growth, which outweighs the positive growth effect of population geographic concentration and GDP spatial inequality. Thus, policies aiming at the decentralization of economic activity in Greece might enhance growth and regional equality simultaneously. Finally, we do not find economic dualism across geographic areas; however, rich prefectures seem to converge faster than poor ones.     

Pareto's law of income distribution,or the 80/20 rule

Pareto's Law of Income Distribution forms the basis of the well-known, but often overlooked, ‘eighty-twenty’ rule. The implication is that a small proportion of customers (or donors) are accountable for a very large share of sales turnover or income. This paper examines the impact on fundraising of the pioneering work of Vilfredo Pareto (1848–1923) concerning the distribution of wealth between groups in society, which was first published exactly one hundred years ago, in 1895. It discusses the relevance of Pareto's Law to contemporary fundraising, using case data from UK charities who have put Pareto's assertions to the test. The recognition of the Pareto principle is wholly dependent on data analysis and software tools to perform the calculations and then display Pareto-style reports. Such tools are beginning to be seen in UK and some overseas software packages and general tools, available in the UK nonprofit marketplace. Illustrations of software systems supporting Pareto-style diagnostic analysis are given. At its most basic, Pareto's principle compels fundraisers to look into their databases of supporters to identify the small but potent élite donating segments who always seem to exist among the general mass. The implications for fundraising that flow from such analyses are important and can be far-reaching. They allow fundamental supporter segmentation patterns based on historic donating history to be understood, and, if understood, managed productively. Finally, Pareto compels the decision to alter either fundraising management and allocation of resources, or to manage supporters, rather than appeals, which in the UK continues to be the most common management style.