ON THE PATH TO ECONOMIC GROWTH,DO REMITTANCES HELP? EVIDENCE FROM PANEL VARs

Despite the emergence of remittances studies, knowledge about their effect on economic development is still ambiguous. This paper investigates the impact of remittances at macroeconomic level in developing countries controlling for endogeneity problems with the use of panel vector autoregression (panel VAR). The findings suggest that remittances have a positive, albeit small, impact on economic growth even without considering the role of institutions. When institutions are included, the pattern of response remains unaltered. A distinction between low versus high remittances participation in economic activity evidences that, although the impact of remittances on growth is similar, appreciation of the exchange rate occurs in economies with high remittances participation. Finally, a distinction by geographical region reveals that Eastern European economies receive the greatest benefit from these flows, followed by the Americas and Asia; however, African economic growth does not appear to have a statistically significant impact.     

Growth Patterns and Inequality in the Presence of Costly Technology Adoption

The stylized facts that motivate this article include the diversity in growth patterns that are observed across countries during the process of economic development and the divergence over time in income distributions both within and across countries. We construct a dynamic general equilibrium model in which technology adoption is costly and agents are heterogeneous in their initial holdings of resources. We interpret the adoption cost as the resources expended in acquiring skills associated with new technologies. Endogenous growth occurs in our model largely as a result of human capital deepening. The analytical results of the model characterize three growth outcomes associated with the technology adoption process depending on productivity differences between the technologies. These outcomes are labeled ‘poverty trap,’ ‘dual economy,’ and ‘balanced growth.’ The model is then capable of explaining the observed diversity in growth patterns in addition to the divergence of incomes over time and across countries.     

Inflation and Economic Growth: Evidence from the Southern African Development Community

In this paper, we investigate the role of inflation rates in determining economic growth in 15 sub‐Saharan African countries, which are all members of the Southern African Development Community, between 1980 and 2009. The results, based on panel time‐series data and analysis (we use the fixed effects and fixed effects with instrumental variables estimators to account for heterogeneity and endogeneity in thin panels), suggest that inflation has had a detrimental effect to growth in the community. We highlight that inflation has offset the Mundell–Tobin effect and consequently reduced the much needed economic activity in the community, and also the importance of an institutional framework conducive to a stable macroeconomic environment as a precondition for development and prosperity in the community.     

Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries

This paper aims to investigate the effects of technology on international trade flows. In order to do so, the authors use a composite index designed to capture the performance of countries concerning technology and human knowledge as a new explanatory variable in an augmented gravity equation estimated for a sample of 62 developed and developing countries. Results show that geographical factors are always relevant, however geographical distance, being landlocked, technological and social factors seem to be more important for the poorest than for the richest countries. Transport infrastructure and technology can be considered as barriers to trade for those countries with lower endowment levels, therefore investing in these variables will increase the participation of the poorest countries in the world economy.The authors would like to thank the participants at the 2004 International Atlantic Economic Conference held in Lisbon and at the VII Encuentro de Economía Aplicada held in Vigo for their useful comments and suggestions. Moreover, the authors acknowledge the support and collaboration of the Instituto Valenciano de Investigaciones Económicas.     

SOURCES OF ECONOMIC GROWTH AND TECHNOLOGY TRANSFER IN SUB‐SAHARAN AFRICA1

This paper provides some empirical evidence on the sources of growth in sub‐Saharan Africa (SSA). Within the classical convergence framework, several macroeconomic, socio and political factors are identified as affecting the steady state growth paths of the SSA countries. The rejection of the constant technology growth rate assumption implied by the linearised Solow‐Swan growth specification suggests differences in the economies' technology growth rates. An endogenous technology growth model is estimated to measure contributions of diminishing returns and technology transfer to the rate of conditional convergence in the region. The results carry important policy implications for improving the standard of living and economic growth rate of African countries.     

基于技能偏向性技术进步的经济增长动能分解

在传统Solow增长核算框架基础上引入异质性劳动投入以及技能偏向性技术进步,从而将经济增长分解为固定资本投入增长、劳动投入增长、技能结构深化、技能偏向性技术进步、中性技术进步及效率改进等五种动能。研究发现：第一,中国经济增长主要由固定资本投入以及全要素生产率增长共同驱动,其中资本投入对经济增长年均贡献率为61.64%,全要素生产率增长的年均贡献率则为35.66%,中国区别于其他中低收入国家的发展奇迹背后正是较快的全要素生产率增长;第二,即使对于高收入国家而言,资本投入仍然是主要的经济增长动能;第三,技能结构深化以及技能偏向性技术进步是全要素生产率的主要来源,二者对中国经济增长的年均贡献率分别为32.04%和21.27%;第四,资源配置效率变化是引起全要素生产率波动的主要因素,资源配置效率下降是导致2008年后中国以及大部分高收入国家全要素生产率增速放缓的主要原因。     

Economic Freedom and Exercise: Evidence from State Outcomes

Exercise is an important part of a healthy lifestyle and influences a variety of health outcomes. Regions vary in their levels of exercise due to geography, climate, culture, and policy. The extent to which a country's policies are consistent with economic freedom has been found to be positively associated with greater participation in physical activity. We empirically investigate the relationship between economic freedom and exercise across U.S. states. Contrary to the cross-country results, we find that states with higher levels of economic freedom have lower rates of participation in exercise.     

The human cost of China's industrial growth

This paper examines whether industrial growth during economic development is associated with a high workplace fatality rate by using panel data from China. Controlling for provincial and year fixed effects, our estimations show that provincial industrial growth has a positive impact on the workplace fatality rate. We also find that both the growth of industrial labor productivity and the growth of industrial employment have an impact on workplace fatalities. Our instrumental variable fixed effects estimations, which control for simultaneity, show an even greater effect of industrial growth on the fatality rate. Our empirical findings suggest that the Chinese government ought to reconsider its growth-centered policies to save lives.     

Technology Gap,Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China

This research adds to the literature studying the effects of outward foreign direct investment (OFDI) on domestic innovation performance and the moderating effect of a technology gap between host and home countries. New definitions of observed technology gap and expected technology gap are proposed. An observed technology gap captures the existing differences in technology level between establishments, regions or countries. An expected technology gap is an indication of the effort of imitating and learning from technology leaders. The corresponding measures and effects of observed and expected technology gaps on OFDI‐induced reverse technology spillover are analyzed. OFDI in developed countries promotes innovation performance. However, OFDI in emerging markets hampers innovation performance. It is also found that regions with a wider observed technology gap and a narrower expected technology gap can benefit more from OFDI.     

Feeling Richer or Poorer than Others: A Cross‐section and Panel Analysis of Subjective Economic Status in Indonesia*

This paper examines what makes us feel richer or poorer than others. It investigates cross‐sectional and longitudinal determinants of individuals’ subjective economic status in Indonesia. Using two waves of Indonesian Family Life Surveys, 1997 and 2000, I show that individuals’ perceptions of where they are on the economic scale are more dependent on a number of socioeconomic characteristics, as well as their attitudes towards their future economic status, than their current spending capacities would suggest. I also find significant, albeit weaker, expenditure and income effects on individuals’ subjective economic status once individual fixed effects are controlled for in the regression.     

Optimal Structure of Technology Adoption and Creation: Basic versus Development Research in Relation to the Distance from the Technological Frontier*

Many economists maintain that in order to advance economic growth Asian countries should focus more on basic research than on technology adoption, and more on the supply of skilled workers than the supply of unskilled workers. In this context, this paper presents a theoretical model and empirical evidence to explain the observation that a country in which the level of technology approaches the technology frontier tends to rely more on technology creation than adoption, and invest more in basic research than in development. The model shows that technology creation involves both basic and development research processes, whereas technology adoption uses only the latter process. Therefore, R&D investment in our model involves three different processes: basic research in technology creation, development in technology creation, and development in technology adoption. The results suggest first that the rate of growth is positively correlated with the level of basic research activities in the technology creation sector, if a country's technology gap with the technology frontier is small enough. Second, an increase in the efficiency of the education system for highly skilled workers raises the level of basic research and the rate of growth. Third, verifying these theoretical results, empirical analyses using panel data from Korea, Japan and Taipei, China show that the narrower the distance to the technological frontier, the higher the growth effect of basic R&D, which indicates that the share of basic R&D matters for economic growth. Finally, the results also show that the quality of tertiary education has a significantly positive effect on the productivity of R&D.     

THE IMPACT OF HIV/AIDS ON ECONOMIC GROWTH IN SUB‐SAHARAN AFRICA1

This study investigates the hypothesis that HIV/AIDS epidemic slows down the pace of economic growth. We examine 41 Sub‐Saharan African countries by using the empirical growth equation in an augmented Solow model in which health capital serves as a determinant of human capital. Econometric analysis is based on panel data and covers the period 1997‐2005. We control for a variety of factors possibly correlated with HIV prevalence that might also influence economic growth. As a key result we prove that the epidemic has a significant negative effect on the growth rate of per capita GDP in Sub‐Saharan Africa.     

The Contribution of Associate's Degree Holders to U.S. Earnings,Labor Quality,Productivity, and Overall Economic Growth

There is substantial evidence on the importance of education as a driver of earnings, productivity, and economic growth. However, knowledge of the specific role of associate's degrees in U.S. economic growth is limited. We analyze the sources of U.S. economic growth and identify the contribution of associate's degree holders to improvements in earnings, labor quality, productivity, and overall economic growth. We find evidence that substitution toward workers with associate's degrees has increased U.S. earnings, aggregate labor quality, and productivity, and that these effects are concentrated in the health care, trade, and government sectors. While the average educational attainment of people entering the labor force has plateaued, our results suggest that shifting workers from some college to associate degrees could improve earnings, the quality of the workforce, productivity, and growth, potentially without more time spent in school.     

Technology and trade: Empirical evidences for the major five industrialized countries

Technology and Trade: Empirical Evidence for the Major Five Industrialized Countries. — The conclusion that prices alone cannot explain the major disturbances in trade market shares emerges from many empirical studies on international trade flows. This paper aims at introducing supply-side variables in market shares equations, namely R&D expenditures and gross fixed capital formation, along the lines of the new theory on international trade and of the literature on technology and trade relations. The empirical work is carried out on the major five industrialized countries and on twenty manufacturing industries. The results show that the supply-side variables have played a crucial role over the last decade.     

Social Capital and Total Factor Productivity: Evidence from Chinese Provinces

The impact of social capital on economic development has been broadly studied by scholars. However, research in the Chinese context is relatively rare. Drawing upon data from the China General Social Survey, our results suggest that the enhancing effect of social capital on total factor productivity is very limited in the case of China. The network dimension of social capital is significant only in pooled OLS estimations, and trust as well as the participation dimension of social capital exert no impact across all estimations. Our interpretation is that this is partly due to the fact that trust, values and norms formed in civil society are inherently difficult to transmit to the market sector. Besides, the impact of social capital on economic performance is undermined when physical capital plays a significant role in production. We therefore propose that the effect of social capital on economic performance is contingent on localized social and economic conditions.     

数字贸易网络结构及影响因素——基于“一带一路”沿线国家(地区)双边贸易数据的研究

科技发展逐渐对贸易模式产生影响。通过社会网络分析法,分析各国之间的数字贸易联系强度,构建面板数据对影响数字贸易流量的相关因素采用固定效应模型进行分析。结果表明:目前各国的数字贸易联系较为密切,核心国家仍然以欧盟国家(地区)为主,中国和其他国家的数字贸易联系仍不强;通信网络基础设施和国家对跨境数据的管控和国家经济发展水平等因素对数字贸易均有显著影响。     

The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa

This study assesses the role of information and communication technologies (ICT) in modulating the impact of education and lifelong learning on income inequality and economic growth. It focuses on a sample of 48 African countries from 2004 to 2014. The empirical evidence is based on the generalized method of moments. The following findings are established. First, mobile phone and internet each interact with primary school education to decrease income inequality. Second, all ICT indicators interact with secondary school education to exert a negative impact on the Gini index. Third, fixed broadband distinctly interacts with primary school education and lifelong learning to have a positive effect on economic growth. Fourth, ICT indicators do not significantly influence inequality and economic growth through tertiary school education and lifelong learning. These main findings are further substantiated. Policy implications are discussed.     

Estimating international technology spillovers using technology flow matrices

Estimating International Technology Spillovers Using Technology Flow Matrices. — This paper investigates the impact of international R &; D spillovers on sectoral growth patterns in OECD countries. It applies panel regression techniques to a time-series cross-section panel. It arrives at the conclusion that knowledge spillovers are an important contributor to economic growth. The estimation results are applied in the form of a ‘simulation’ of TFP growth per country, splitting (R &; D-related) TFP into a component due to domestic R &; D and one due to foreign R &; D. The results also show that the United States and Germany are the most influential countries in terms of contributions to other countries’ TFP growth.     

Does School Lunch Fill the “SNAP Gap” at the End of the Month?

This article investigates the relationship between the timing of Supplemental Nutrition Assistance Program (SNAP) benefit payments and participation in school lunch and breakfast using the National Household Food Acquisition and Purchase Survey. An event study approach examines participation over the five‐day window before and after the SNAP payment. We find that school lunch participation decreases by 17–23 percentage points immediately after the SNAP payment among 11–18 year olds while breakfast drops by 19–36 percentage points. The decline begins the day prior to payment. We find no effects for 5–10 year olds. Models examining participation over the full SNAP month using individual fixed effects yield similar findings. Among teenagers, participation in school lunch and breakfast decline in the first two weeks of the SNAP month, increasing afterward. Non‐school meals show the opposite pattern. Overall, results indicate SNAP households rely more on school lunch and breakfast toward the end of the SNAP month.     

Creeping Tiger, Soaring Dragon： India, China and Competition in Information Technologies

Although conventional international economic wisdom holds China's hardware and India's software industries to be equipotential, little attempt has been made to compare their information industries in an overarching dynamic framework. Using a schema that links intellectual to financial value creation, it is found that China has systematically moved ahead in creating a self‐supporting industrial and innovation ecosystem. Hardware enjoys higher barriers to entry, which the Chinese companies are increasingly reinforcing with intellectual property investments. In addition to being better integrated with the global economy, they are also buttressed by the huge domestic market. The overdependence of Indian firms on selling low‐value services to a few countries and insulation from domestic demand make them vulnerable to emerging competition and international economic ill‐winds. The two countries provide a study in contrast on the effects of divergent industrial strategies.