scholarly journals Structural Transformation to Manufacturing and Services: What Role for Trade?

2019 ◽  
Vol 36 (2) ◽  
pp. 32-71 ◽  
Author(s):  
Kym Anderson ◽  
Sundar Ponnusamy
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Gross Domestic Product ◽  
General Equilibrium ◽  
Structural Transformation ◽  
Equilibrium Model ◽  
National Policy ◽  
Annual Data ◽  
Declining Industries ◽  
Different Types

Understanding how and why economies structurally transform as they grow is crucial for making sound national policy decisions. Typically, analysts who study this issue focus on sectoral shares of gross domestic product and employment. This paper extends those studies to include exports, including exports of services. It also considers mining, in addition to agriculture and manufacturing, and recognizes that some of the products of these four sectors are nontradable. The section on theory presents a general equilibrium model that provides hypotheses about structural change in different types of economies as they grow. These are then tested econometrically with annual data for the period 1991–2014 for a sample of 117 countries. The results point to the futility of adopting protective policies aimed at slowing deagriculturalization and subsequent deindustrialization in terms of sectoral shares, since those trends inevitably will accompany economic growth. Fortuitously, governments now have more efficient and equitable ways of supporting adjustments needed by people who choose or are forced to leave declining industries.

scholarly journals Phased-In Tax Cuts and Economic Activity

2006 ◽  
Vol 96 (5) ◽  
pp. 1835-1849 ◽  
Author(s):  
Christopher L House ◽  
Matthew D Shapiro
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Economic Activity ◽  
Dynamic General Equilibrium ◽  
General Equilibrium Model ◽  
Slow Recovery ◽  
Tax Rate ◽  
Dynamic General Equilibrium Model ◽  
Aggregate Effects

This paper uses a dynamic general equilibrium model to analyze and quantify the aggregate effects of the timing of tax rate changes enacted in 2001 (which called for successive rate reductions through 2006) and 2003 (which made immediate tax rate cuts scheduled for 2004 and 2006). The phased-in nature contributed to the slow recovery from the 2001 recession, while the elimination of the phase-in helped explain the increase in economic activity in 2003. The simulations suggest while the tax policy was a drag on the economy in 2001 and 2002, it increased economic growth in 2003, once phase-ins were eliminated.

scholarly journals An Empirical Analysis of the Link between Economic Growth and Exports in Côte d’Ivoire

2019 ◽  
Vol 12 (9) ◽  
pp. 94
Author(s):  
Daouda Coulibaly ◽  
Fulgence Zran Goueu
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Causal Relationship ◽  
Empirical Analysis ◽  
Annual Data ◽  
Short Term ◽  
Causality Test ◽  
Long Run ◽  
The Relationship

This paper aims to analyze the relationship between exports and economic growth in Côte d’Ivoire. In order to achieve this objective, annual data for the period 1960-2017 were tested by using the cointegration approach of Pesaran, Shin and Smith, including the causality test of Breitung and Schreiber. According to our analysis it is only exports that drive economic growth and not the opposite. Exports act positively and significantly on economic growth in the short term as well as in the long term. The causality test of Breitung and schreiber indicates a one-way long-run causal relationship ranging from exports to gross domestic product (GDP). All those results show that exports are a source of Ivorian economic growth.

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