scholarly journals Technological Spillover, Growth Convergence And Technical Progress: Does technology flow from rich to poor economies?

2020 ◽  
Vol 8 (4) ◽  
pp. 132-145
Author(s):  
Oladele O Aluko ◽  
B. Sabiu Sani
Keyword(s):  
Economic Growth ◽  
Technical Progress ◽  
Low Income ◽  
Generalized Method Of Moments ◽  
Low Income Countries ◽  
Dynamic Panel Model ◽  
Poor Countries ◽  
Growth Convergence ◽  
Using Data ◽  
The One

This study examines Technology spillover from rich to poor countries, the study used a model that, at the aggregate level, is similar to the one sector neoclassical growth model. The model was estimated using data on technical progress, Average Product Per-Worker, Capital Stock and Technology Intensive Goods in 25 countries which consist of rich and poor countries over the last decade. A dynamic panel model is formulated and estimated Using Generalized method of moments by Arelano and Bond; and the implications of the estimates were evaluated for aggregate total factor productivity and economic growth. The results reveal that, on average, technology have contributed more to economic growth in high income economies and on the contrary technology have made little or no contribution in low income countries. Consequently, there is substantial variation across technologies and economies

scholarly journals EFFECTS OF RENT-SEEKING ON ECONOMIC GROWTH IN LOW-INCOME ECONOMIES

2021 ◽  
Vol 24 (2) ◽  
pp. 205-220
Author(s):  
Zi Wen Vivien Wong ◽  
Fanyu Chen ◽  
Thian Hee Yiew
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
High Performance ◽  
Generalized Method Of Moments ◽  
Rent Seeking ◽  
Sustainable Growth ◽  
Low Income Countries ◽  
Limited Attention ◽  
Economic Implications ◽  
Method Of Moments Estimator

Sluggish growth in low-income countries, despite the high performance in other economic indicators, motivates the literature to switch attention to institutions. Despite its crucial economic implications, there is limited attention on rent-seeking as a driver of economic growth in low-income countries. This paper investigates the effect of rent-seeking on growth in low-income countries from 2004 to 2017using the system generalized method of moments estimator. The empirical results reveal that rent-seeking negatively affects growth, implying that it obstructs the pace of economic development in low-income countries. Hence, it is necessary for policymakers in these countries to adopt anti-rent-seeking policies to promote a rapid and sustainable growth.

scholarly journals On the determinants of trade openness in low- and lower–middle-income countries in Africa: how important is economic growth?

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Dennis Boahene Osei ◽  
Yakubu Awudu Sare ◽  
Muazu Ibrahim
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Low Income Countries ◽  
Special Focus ◽  
Middle Income ◽  
Middle Income Countries ◽  
Real Gdp Per Capita ◽  
The Impact

AbstractThe existing literature highlights the determinants of trade openness with disregard to the income classifications of countries in examining whether the determinants differ given their income levels. This study, therefore, re-examines the drivers of trade openness in Africa relying on panel data with special focus on the role of economic growth. More specifically, we perform a comparative analysis of the factors influencing trade openness for low-income and lower–middle-income countries using the system generalized method of moments. Our findings suggest that, while economic growth robustly enhances openness in low-income countries, in the case of lower–middle-income countries, the impact is not robust and largely negative suggesting that higher growth is associated with less openness. We also find that, economic growth–openness nexus for the lower-income countries exhibits non-linearities and inverted U-shaped relationship in particular. Thus, while increases in real GDP per capita enhance openness, beyond an estimated threshold point, any increases in economic growth dampen openness. We discuss key implications for policy.

Beating the Odds

2019 ◽  
Author(s):  
Justin Yifu Lin ◽  
Célestin Monga
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Poverty Reduction ◽  
Technological Development ◽  
Low Income Countries ◽  
Poor Countries ◽  
Rapid Economic Growth ◽  
Policy Frameworks ◽  
Globalized World ◽  
Do So

Countries that ignite a process of rapid economic growth almost always do so while lacking what experts say are the essential preconditions for development, such as good infrastructure and institutions. This book uses this paradox to explain what is wrong with mainstream development thinking—and to offer a practical blueprint for moving poor countries out of the low-income trap regardless of their circumstances. The book begins with an observation of the increasingly globalized world economy in which technological development allows the use of factors of production in locations that maximize returns and utility, and countries gain mutually by trading with each other if their strategies focus on comparative advantage. The prospects for sustained and inclusive growth are even greater for low-income economies that enjoy the benefits of backwardness. The book advocates implementing viable strategies to capture new opportunities for industrialization, which can enable low-income economies to set forth on a dynamic path of structural change and lead to poverty reduction and prosperity. It concludes with an evaluation of lessons from development thinking and experience and identifies the main reasons why past intellectual and policy frameworks failed to yield the expected results. It then offers a pragmatic blueprint for allowing low-income countries to ignite and sustain economic growth without preconditions.

scholarly journals Foreign aid on economic growth in Africa: A comparison of low and middle-income countries

2015 ◽  
Vol 18 (4) ◽  
pp. 449-462 ◽  
Author(s):  
Aye Mengistu Alemu ◽  
Jin-Sang Lee
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Low Income ◽  
Empirical Studies ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Theoretical Hypothesis

Previous empirical studies on the effects of foreign aid on economic growth have generated mixed results that make it difficult to draw policy recommendations. The main reason for such mixed results is the choice of a single aggregate list of countries, regardless of the disparities in levels of development. This study therefore fills the development gap by disaggregating the African data into a panel of 20 middle- income and 19 low- income African countries over a period of 15 years between 1995 and 2010, and employing a dynamic generalized method of moments (GMM) model to address the dynamic nature of economic growth as well as the problems of endogeneity. The results of this study support the theoretical hypothesis that a positive relationship between aid and GDP growth exists, but only for low-income African countries, not middle-income ones. On the other hand, the study reveals that middle- income African countries tend to experience a greater impact on their economic growth from foreign direct investment (FDI) and natural resources revenues, mainly oil exports. This implies that the frequent criticism that foreign aid has not contributed to economic growth is flawed, at least in the case of low-income African countries. In fact, foreign aid has played a critical role in stimulating economic growth in such countries through supplementing domestic sources of finance such as savings, thus increasing the amount of investment and capital stock in them.

scholarly journals Somalia

2020 ◽  
Vol 20 (86) ◽  
Author(s):  
Keyword(s):  
Low Income ◽  
Net Present Value ◽  
Debt Relief ◽  
Debt Management ◽  
Policy Framework ◽  
Low Income Countries ◽  
Debt Sustainability ◽  
Poor Countries ◽  
Heavily Indebted Poor Countries ◽  
Hipc Initiative

This paper presents an assessment of Somalia’s eligibility for assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The macroeconomic framework reflects the policy framework underlying the proposed three-year Fund-supported program. The debt relief analysis (DRA) remains largely unchanged, but some of the underlying debt data has been updated to reflect new information from creditors. In addition, this paper presents an assessment of debt management capacity in Somalia and a full Debt Sustainability Analysis under the Debt Sustainability Framework for Low-Income Countries. The DRA reveals that, after traditional debt relief mechanisms are applied, Somalia’s debt burden expressed as the net present value of debt-to-exports ratio is 344.2 percent at the end of December 2018—significantly above the HIPC Initiative threshold. Despite the challenging environment, progress on reform and policy implementation has been good and sustained reforms have translated into economic results. In addition to the coordinated support from the World Bank and the IMF, reforms have been supported by other development partners.

A New Development Opportunity Confronts Old Paradigms

2011 ◽  
pp. 171-198
Author(s):  
Peter A. Kwaku Kyem
Keyword(s):  
Development Strategy ◽  
Low Income ◽  
Low Income Countries ◽  
Development Discourse ◽  
Poor Countries ◽  
Technological Gap ◽  
Local Actors ◽  
Information And Communication ◽  
Developed Nations ◽  
Ict For Development

There is a considerable debate about how the technological gap between rich and poor countries of the world can be bridged or eliminated. Technological optimists argue that Information and Communication Technology (ICT) can bring accelerated development to poor countries. Others question the viability of relying on ICT for development in low income countries. The ensuing debate has masked the digital divide problem and prevented a true discussion of how ICT can be deployed for the benefit of low income countries. On the otherhand, confronted with the persistent failures of one-size-fits-all economic development models, low income countries can no longer treat modernization as the pivot towards which all ICT-related development efforts must gravitate. There is a need to drop the singular vision of development which is premised on the experiences of Western developed nations and rather restore local actors and their cultures into the actual roles they play in development processes that occur within localities. Accordingly, this chapter reviews the perspectives that currently shape the ICT for development discourse and offers the multiplicity theory to bridge the gap in development theory and promote a development strategy which incorporates activities of both local and global actors in the development of localities.

scholarly journals TAX STRUCTURE AND ECONOMIC GROWTH: DO DIFFERENCES IN INCOME LEVEL AND GOVERNMENT EFFECTIVENESS MATTER?

2018 ◽  
Vol 65 (01) ◽  
pp. 217-237 ◽  
Author(s):  
HALIT YANIKKAYA ◽  
TANER TURAN
Keyword(s):  
Low Income ◽  
Low Income Countries ◽  
Estimation Methods ◽  
Property Taxes ◽  
Tax Rates ◽  
Tax Structure ◽  
Tax Rate ◽  
Using Data ◽  
Positive Effect ◽  
Effect On Growth

We examine the effects of both overall tax rate and changes in tax structure on growth by using data for more than 100 high, middle, and low income countries by employing the GMM estimation methods. In general, our results do not support the argument that overall tax rates or changes in tax structure have a significant effect on growth. However, we find that a shift from income to consumption and property taxes leads to a positive and significant effect on growth rate while a shift from consumption and property taxes to income taxes has a positive effect for low-income countries.

Basic Human Needs versus Economic Growth Approach for Coping with Urban—Rural Imbalances: An Evaluation Based on Relative Welfare

1979 ◽  
Vol 11 (10) ◽  
pp. 1129-1145 ◽  
Author(s):  
K Mera
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Relative Position ◽  
Urban Population ◽  
Low Income Countries ◽  
Human Needs ◽  
Urban Rural ◽  
Basic Human Needs ◽  
Growth Approach ◽  
Future Growth

Increasing attention is being paid to the ‘basic human needs' approach for reducing imbalances within a developing country, urban—rural imbalances being important among them. However, as investment for meeting basic human needs is not directly productive, the future growth of the economy would have to be sacrificed if this approach is taken. In this paper the development implications of two approaches, the economic growth and the basic human needs approaches, are projected through a simulation model, and they are evaluated relative to each other. It is shown that, even if the evaluation is based on the criterion of the relative position of the rural population to the urban population, low-income countries would be better off with the economic growth approach after about ten years. For middle- and high-income countries, the basic human needs approach deserves serious consideration.

scholarly journals CONCENTRATION IN THE BANKING INDUSTRY AND ECONOMIC GROWTH

2005 ◽  
Vol 9 (2) ◽  
pp. 198-219 ◽  
Author(s):  
LUCA DEIDDA ◽  
BASSAM FATTOUH
Keyword(s):  
Low Income ◽  
Banking Sector ◽  
Low Income Countries ◽  
Industrial Growth ◽  
Industry Growth ◽  
Endogenous Growth Model ◽  
Banking Concentration ◽  
Capita Income Growth ◽  
The One ◽  
Opposing Effects

We present an endogenous growth model with two sectors: a real sector where the final good is produced, and a banking sector that intermediates between savers and firms. Banking concentration exerts two opposite effects on growth. On the one hand, it induces economies of specialization, which is beneficial to growth. On the other hand, it results in duplication of banks' investment in fixed capital, which is detrimental to growth. The trade-off between the two opposing effects is ambiguous and can vary along the process of economic development. Hence, there is a potential nonlinear and nonmonotonic relationship between concentration and growth. We test this implication, using cross-country data on income and industry growth. We find that banking concentration is negatively associated with per-capita income growth and industrial growth only in low-income countries. This suggests that reducing concentration is more likely to promote growth in low-income countries than in high-income ones.

Sign in / Sign up

Export Citation Format

Share Document