Foreign capital and economic growth

A new but simple model of the impact of foreign capital–in particular foreign direct investment–on the economic growth rate of poor countries is described and tested. A feature of this model is that it aims to allow separately for structural economic effects and the direct impact on the balance of payments position. Results confirm the favourable impact of aid flows and domestic savings, but suggest that direct investment is associated with structural effects that retard growth. An attempt is made to interpret these results in a wider context than usual for the purpose of assessing possible policy implications.     

Private capital flows,stock market and economic growth in developed and developing countries: A comparative analysis

Empirically we investigate how three types of private capital flows could promote economic growth in recipient developed and developing countries. Our focus is on the role of stock markets as a channel through which foreign capital flows could promote growth. The findings reveal that FDI exhibits a positive impact on growth, while both foreign debt and portfolio investment have a negative impact on growth in all sample countries. However, our results indicate that stock markets might be a significant channel or leading institutional factor through which capital flows affect economic growth. The findings provide clear implications that the negative impact of private capital flows can be transformed into a positive one if the stock market development has attained a certain threshold level, regardless of whether it is in developed or developing countries.     

Economic research and economic growth: Evidence from East Asian economies

Based upon page counts of articles published in 60 quality economics journals, the role of economic research is examined for five East Asian economies. In Hong Kong, causality runs bi-directionally between research productivity and economic growth; in Japan, the causal effects tend to be one direction from economic growth to research publications; in Korea and Taiwan, causality runs the other way around from publications to growth; and in Singapore, the causal effects are small and insignificant. Socioeconomic differences in each economy help to explain the various causal directions found.     

Regionalism and East Asian economic integration

The wave of economic globalization moves to all the countries in the world to be integrated with multilateralism and by promotion of the General Agreement on Tariffs and Trade/World Trade Organization （GATT/WTO）. Meanwhile, the growth of regional economic integration has been one of the major developments in international economic relations, and undoubtedly regionalism is a part of the global economic environment. The objective of the paper is to review the trends and highlight the prospects for enhancing economic integration in East Asia. This paper has argued that the emerging East Asian economies have achieved sustained economic development and poverty reduction through domestic structural, institutional and governance reforms as well as through market-driven integration with the global and regional markets. Though this process was temporarily interrupted by the Asian financial crisis in 1997-1998, the economies have pursued further liberalization and reforms, deepened economic integration through trade, FDI and finance, and regained dynamic growth. The author argues that the reasonable choice for Eastern Asian countries is to deepen their economic integration and the optimal strategy is fostering economic integration with institutional cooperation.     

Forces of economic growth in China,India, and other Asian countries

This paper applies different approaches to modelling sources of economic growth from time series and panel data sets for 10 Asian countries over the period 1970–2010. After being subjected to fragility tests, the cross‐country estimates indicate that investment, together with policy variables and openness to trade, explains about 90 per cent of the estimated 3.2 per cent steady‐state growth rate for the region. Regional growth policy points to expanding trade, supporting financial development, and maintaining sound investment environments. Although country‐specific growth effects vary, the results imply that different estimation methods, combined with fragility tests, can help establish stronger links between growth theory and policy advice.     

Total capital and economic growth

In contrast to the official estimates of gross private domestic investment and associated capital stocks prepared by the Bureau of Economic Analysis (BEA), the author presents estimates of total investment and capital, human and nonhuman, tangible and nontangible, by all sectors of the U.S. economy. Total investment is 3.1 times the BEA estimate in 1929, rising to 4.1 times in 1990. It accounts for almost half of adjusted GDP in the latter year. As hypothesized, real total capital stocks rise at about the same 2.9 percent average annual rate as real gross domestic product 1929–90, 0.1 percentage points more in the total economy and 0.2 points less in the predominant business sector. Increases in nontangible capital (mainly education, training, health, and research and development—“R&D”-) largely explain the growth in total tangible factor (capital) productivity in the whole economy. Nontangible, human capital has grown relatively faster in the business sector than in the entire economy, helping to explain its more rapid productivity advance. The author recommends that when BEA shifts to the U.N. standard system of accounts, it include nontangible and human tangible investments and capital in “satellite” accounts, as well as tangible investments for all sectors in the core accounts. This will greatly facilitate the analysis of economic growth. Presidential Address at the Thirty-Sixth Atlantic Economic Society Conference, October 7–10, 1993, Philadelphia, Pennsylvania.     

Entrepreneurship capital and economic growth

This paper shows how and why the Solow growth accounting frameworkis useful for linking entrepreneurship capital to economic growth.The knowledge filter impedes the spillover of knowledge forcommercialization, thereby weakening the impact of knowledgeinvestments on economic growth. By serving as a conduit forknowledge spillovers, entrepreneurship is the missing link betwninvestments in new knowledge and economic growth. Entrepreneurshipis an important mechanism permeating the knowledge filter tofacilitate the spillover of knowledge and ultimately generateeconomic growth. The emergence of entrepreneurship policy topromote economic growth is interpreted as an attempt to promoteentrepreneurship capital, or the capacity of an economy to generatethe start-up and growth of new firms.     

Foreign Investment and East Asian Economic Development

This article surveys and anabses the very lure literature on direct foreign investmenl (DFI) in the developing economies of East Asia and the Southwest Pacifi. Commencing with an overview of the MNC (mufcinafional corporation) presence in the region, successive sections a-amine patterns and performance of major investors, trude-DFI interrelationships, the impact of DFI on market structure and peflormance, the modalities of MNC entry, and host country policy. The latter, it is argues, is criticully importunt for assessments of the costs and benefits of DFI.     

Conservation capital and sustainable economic growth

An endogenous growth model, which links pollution to ineffectiveinput-use, is developed to examine the potential for achievingbalanced growth while preserving the environment through investmentin conservation capital. We derive conditions under which individualpreferences for environmental quality and private incentivesfor investment in conservation capital can lead to non-decreasingenvironmental quality with balanced growth even in the absenceof environmental regulations. Additionally, conditions underwhich investment in conservation capital can enable an environmentallyregulated economy to achieve a higher rate of sustainable balancedgrowth than otherwise are analysed.     

Openness and economic growth in developing countries

Openness and Economic Growth in Developing Countries. — Openness appears to have a strong impact on economic growth especially in DCs which typically exhibit a high share of physical capital in factor income and a low share of labor. In the neoclassical growth model with partial capital mobility, physical capital’s share in factor income determines the difference in the predicted convergence rates for open and closed economies. With a 60 percent share as in many DCs, the convergence rates should differ by a factor of 2.5. The regression results for a sample of open and closed DCs roughly confirm this hypothesis.     

The East Asian model of economic development

Unlike existing models of the rapid growth of the East Asian economies that are based on stylised facts, this paper formulates a model by introducing an all‐encompassing (core) variable that explains the unique path to success in East Asia. Using three propositions, the model explains the transition from a backward economy to an industrial economy. Central to the model is policy‐augmented human capital (PAHC)—human capital with a road map for development—led by a capable leader. The model is unique in that it validates the critical role of human capital in a time of ‘high development theory’ when the emphasis was skewed towards the accumulation of physical capital, and the role of government at a time when interventionist policies were either failing elsewhere (in the 1950s and 1960s) or facing opposition (in the 1970s and 1980s). The success of the East Asian model provides evidence pointing to a preference for economic development over democracy.     

An impact of economic integration through trade: on business cycles for 10 East Asian countries

Many recent studies about East Asian countries discussed “natural” economic integration through trade, but there are few rigorous empirical studies on how their economies were affected by the evolution of economic integration within the region. This paper investigates the effect of bilateral trade dependence on the co-movement of business cycles for 10 East Asian countries. We find that economic fluctuations tend to be more synchronized within the region as trade interdependence among them deepens. This finding suggests the necessity of cooperative efforts to prevent or adjust unfavorable future economic crisis in East Asia.     

教育、人力资本与经济增长

本文从人力资本开发的角度对HPAES的经济增长进行了理论与计量分析,认为HPAES地区较高的人力资本水平对其经济增长起到较强的促进作用,而且政府在促进教育发展和人力资本形成的过程中扮演了重要角色.与此同时,也不能忽视HPAES地区人力资本开发现状与其经济发展要求之间还存在着一定的差距.     

East Asian economic development: Two demographic dividends

Countries throughout the world are experiencing changes in their population age structure, but they are particularly rapid in East Asia. During the last part of the 20th Century the region benefited from an increased concentration of population in the working ages. Population aging is now the increasing rapidly with potentially adverse economic effects. The evidence presented here shows that population aging can lead to a second demographic dividend because population aging may lead to rapid capital accumulation. This appears to have occurred in East Asia because public support systems for the elderly are smaller and because family support systems are in decline.     

全球经济失衡态势下的东亚地区资本流动

在全球经济失衡背景下,东亚地区的资本流动呈现出与以往完全不同的特征,一方面是私人资本不断流入东亚地区且结构均衡,另一方面是大量的资本又从官方储备以购买美国国债的渠道流出东亚地区。今后东亚地区的这种资本流动将受到官方外汇储备变动、美国利率的变化、美元贬值、东亚汇率及其制度的调整等因素的影响。     

Human capital,trade, and economic growth

Human Capital, Trade, and Economic Growth. — Human capital, because of its special role in innovative activity and technological progress, has formed the bedrock of the new theories of endogenous growth. However, it not only serves as an engine of growth but also as a productive input along with labor and physical capital. In this study, the authors find evidence of the importance of both roles of human capital. They also find that the relationship between growth and the external effects of human capital vary according to trade regime. When literacy rates are relatively high, open economies grow about 0.65 to 1.75 percentage points more than closed economies.     

资本项目可兑换与经济增长相关性研究

一、资本流动的古典分析分析资本项目可兑换与经济增长之间的关系之前,首先要分析资本流动。在古典经济理论中,假定资本稀缺国家的资本边际产品要大于资本富裕国家的资本边际产品,即MPk(LDCs)>MPk(DCs),如果资本完全自由流动,那么资本从资本富裕国家向资本稀缺国家的流动将会同