scholarly journals Sustainable Development with Schumpeter Extended Endogenous Type of Innovation and Statistics in European Countries

2021 ◽  
Vol 13 (7) ◽  
pp. 3848
Author(s):  
Marian Pompiliu Cristescu ◽  
Raluca Andreea Nerișanu
Keyword(s):  
Economic Growth ◽  
Growth Models ◽  
Independent Parameter ◽  
Strong Impact ◽  
Main Driver ◽  
Fostering Creativity ◽  
Level Of Knowledge ◽  
The Subject ◽  
Endogenous Growth Models ◽  
Independent Parameters

In the economic growth models, technological progress is either exogenous or endogenous. The endogenized theory is based on analytical modeling of the economic process in order to include the event of innovating. Theory around the subject innovation and economic growth also includes several independent parameters that have a strong impact over innovation. However, few of them established creativity as an independent parameter of innovation. The present paper aims to extend the endogenized theory in order to include creativity as an independent parameter of innovation, based on the evidence of a panel data of 28 countries, through 8 years. A theoretical model, a multiple linear regression, an ANOVA analysis and correlational matrixes were used in order to fulfill our purpose. Results show that innovation is determined by the level of knowledge twice as much as the level of creativity. A conceptual framework for an extension of endogenous growth models, in order to include creativity, is presented in the paper. The model can enhance economic growth by fostering creativity or knowledge and thus, the size of innovation, which is the main driver for economic growth in the model presented.

scholarly journals Incorporating Fuzzy Logic in Harrod’s Economic Growth Model

Mathematics ◽  
2021 ◽  
Vol 9 (18) ◽  
pp. 2194
Author(s):  
Joan Carles Ferrer-Comalat ◽  
Salvador Linares-Mustarós ◽  
Ricard Rigall-Torrent
Keyword(s):  
Economic Growth ◽  
Fuzzy Logic ◽  
Growth Model ◽  
Growth Models ◽  
Classical Model ◽  
Economic Growth Model ◽  
Fuzzy Logic Theory ◽  
Endogenous Growth Models ◽  
Economic Growth Models ◽  
Equilibrium Growth

This paper suggests the possibility of incorporating the methodology of fuzzy logic theory into Harrod’s economic growth model, a classic model of economic dynamics for studying the growth of a developing economy based on the assumption that an economy with only savings and investment income is in equilibrium when savings are equal to investment. This model was the first precursor to exogenous growth models, which in turn gave rise to endogenous growth models. This article therefore represents a first step towards introducing fuzzy logic into economic growth models. The study concerned considers consumption and savings to depend on income by means of uncertain factors, and investment to depend on the variation of income through the accelerator factor, which we consider uncertain. These conditions are used to determine the equilibrium growth rate of income and investment, as well as the uncertain values for these variables in terms of fuzzy numbers. As a result, the new model is shown to expand the classical model by incorporating uncertainty into its variables.

scholarly journals Human Development, Political Stability and Economic Growth: The way forward

2020 ◽  
Vol 6 (2) ◽  
pp. 451-461
Author(s):  
Areeba Khan ◽  
Sulaman Hafeez Siddiqui ◽  
Shahid Hussain Bukhari ◽  
Syed Muhammad Hashim Iqbal
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Growth Models ◽  
Political Stability ◽  
Reverse Causality ◽  
Economic Stability ◽  
The Relationship ◽  
Endogenous Growth Models ◽  
Reallocation Of Resources

Economic growth has been known to foster human development for long term economic stability. The evidence of bi-causality in the human development and economic growth nexus is however limited. This paper builds on the reverse causality between human development and economic growth in context of Pakistan, with the moderating impact of political stability. The study applies OLS and VECM on the data collected from World Bank Database from year 2006 to 2018. Our findings exhibit empirical evidence related to endogenous growth models and a significant causal relationship between human development and economic growth, moderated by political stability. The relationship is further explained by trajectories of happiness, health and income redistribution. Our findings suggest efficient reallocation of resources towards human development to address post pandemic growth concerns.

scholarly journals GENERALIZATIONS OF OPTIMAL GROWTH THEORY: STOCHASTIC MODELS, MATHEMATICS, AND METASYNTHESIS

2016 ◽  
Vol 21 (2) ◽  
pp. 515-544
Author(s):  
Stephen Spear ◽  
Warren Young
Keyword(s):  
Economic Growth ◽  
Endogenous Growth ◽  
Stochastic Models ◽  
Growth Models ◽  
Optimal Growth ◽  
Growth Theory ◽  
Stochastic Environment ◽  
Significant Progress ◽  
Long Period ◽  
Endogenous Growth Models

In previous papers [Spear and Young (2014, 2015)], we surveyed the origins, evolution, and dissemination of optimal growth, two-sector and turnpike models up to the early 1970s. Regarding subsequent developments in growth theory, a number of prominent observers, such as Fischer (1988), Stern (1991), and McCallum (1996), maintained that after significant progress in the 1950s and 1960s, economic growth theory “received relatively little attention for almost two decades” [Fischer (1988, p. 329)], and that “by the late 1960s early 1970s, research on the theory of growth more or less stopped” [Stern (1991, p. 259)]. Stern went on to say “the latter half of the 1980s saw a rekindling of growth theory, particularly in the work of Romer . . . and Lucas” (1991, p. 259), that is to say, in the form of “endogenous growth” models. McCallum, for his part, wrote (1996, p. 41), “After a long period of quiescence, growth economics has in the last decade (1986–1995) become an extremely active area of research.” Moreover, Brock and Mirman's (1972b) paper was the sole “extension” of Ramsey–Cass–Koopmans to a “stochastic environment” mentioned by McCallum (1996, 49).

scholarly journals The Dynamic Relationship between Crime and Economic Growth in Nigeria

2017 ◽  
Vol 53 (1) ◽  
pp. 47-64 ◽  
Author(s):  
Adenuga Fabian Adekoya ◽  
Nor Azam Abdul Razak
Keyword(s):  
Economic Growth ◽  
Growth Models ◽  
Distributed Lag ◽  
Dynamic Relationship ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Lag Model ◽  
Level Of Significance ◽  
Endogenous Growth Models ◽  
Major Impediment

Abstract Crime is a major impediment to economic growth and development in Nigeria despite measures taken to reduce it. There is, however, currently no major statistical analysis of how crime affects economic growth in that country. This study examines the link between crime and growth based on the theory of rational choice and empirical data. Exogenous and endogenous growth models are employed, and include deterrence variables. The period examined is 1970–2013 and estimation is done using the autoregressive distributed lag model. The results of our study show that crime affects economic growth at a 1% and 10% level of significance. In other words, crime imposes the costs of prosecution and punishment on the citizens and country, which influences the growth of the economy. Given our results, we suggest that police and the system of justice should be strengthened. Indeed, this may be necessary if the development target stated in Nigeria vision 20: 2020 is to be reached.

scholarly journals Revisiting the role of governance and institutions in the impact of financial liberalization on economic growth using the PSTR model

2017 ◽  
Vol 64 (3) ◽  
pp. 315-336 ◽  
Author(s):  
Hichem Saidi ◽  
Houssem Rachdi ◽  
Nidhal Mgadmi
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Growth Models ◽  
Study Data ◽  
Smooth Transition ◽  
Smooth Transition Regression ◽  
The Impact ◽  
The Relationship ◽  
Endogenous Growth Models

This paper provides a comprehensive review of the literature on the dual effect of financial liberalization over more than three decades, starting from the independent contributions of Ronald I. McKinnon and Edwards S. Shaw on this topic. In this regard, the paper revisits the effects of financial liberalization and governance on growth. Moreover, it presents a summary of current research in this area, covering the conclusions of the endogenous growth models, issues on volatility and the relationship between financial liberalization, institutions, governance and economic growth. To study data of 54 countries from 1985 to 2010 and because the nexus between financial liberalization and economic growth is nonlinear and depends on specific national factors especially institutions quality and governance, the Panel Smooth Transition Regression (PSTR) model is used. The main result of this study shows that a better contribution of financial liberalization to economic growth requires the interrelationship and the complementarity between financial liberalization and governance. Overall, regardless of the level of liberalization, output income is always higher with better governance and institutions.

scholarly journals Exogenous and Endogenous Growth Models: a Critical Review

2018 ◽  
Vol 21 (4) ◽  
pp. 63-84
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Endogenous Growth ◽  
Growth Models ◽  
Real Exchange Rates ◽  
Returns To Scale ◽  
Economic Growth Model ◽  
Long Run ◽  
Study Results ◽  
Endogenous Growth Models

The main divisions of the theoretical economic growth literature that we study today include exogenous and endogenous growth models that have transitioned through a number of notions and criticisms. Proponents of exogenous growth models argue that technological progress is the key determinant of long‑run economic growth as well as international productivity differences. Within the endogenous growth models, there are two notions that are propagated. The first postulates that capital used for innovative purposes can exhibit increasing returns to scale and thus account for the international productivity differences we observe today. The key determinants include knowledge, human capital, and research and development. The second argues that factors that affect the efficiency of capital, and hence cause capital flight, can also explain international productivity differences. These factors that affect the efficiency of capital include government spending, inflation, real exchange rates, and real interest rates. Our study results reveal that there is still no agreement on the dominant theoretical economic growth model amongst economists that can fully account for international productivity differences. We conclude that the future of theoretical economic growth is far from over and more work needs to be done to develop more practical structural economic growth models.

Decomposing U.S. Regional Incomes: A Reply

1999 ◽  
Vol 59 (3) ◽  
pp. 779-786 ◽  
Author(s):  
Sukkoo Kim
Keyword(s):  
Economic Growth ◽  
Growth Models ◽  
Empirical Work ◽  
Increasing Returns ◽  
Technological Innovations ◽  
Solow Growth Model ◽  
Capital Growth ◽  
New Models ◽  
Endogenous Growth Models ◽  
Modeling Growth

In recent years there has been a resurgence of interest in the phenomenon of economic growth. The interest was sparked by the introduction of new models by Paul Romer and Robert Lucas. The neoclassical Solow growth model, despite its influence over the years, has a fundamental flaw: growth is determined exogenously. The new models by Romer and Lucas solve for the growth rate of the economy endogenously. In these models, due to spillovers in capital or in human capital, growth can go on indefinitely. In a later work, Romer argued that increasing returns are necessary elements in models of technological innovations, which in turn form the foundation for endogenous growth models. The theoretical innovations in modeling growth stimulated a significant body of empirical work.

scholarly journals The analysis of innovation input - output relationships in EU member states

2010 ◽  
Vol 13 (3) ◽  
pp. 93-106 ◽  
Author(s):  
Arkadiusz Kijek ◽  
Tomasz Kijek
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Endogenous Growth ◽  
Growth Models ◽  
Input Output ◽  
Member States ◽  
Eu Member States ◽  
Key Innovation ◽  
Endogenous Growth Models

This article presents some findings of an analysis of innovation input - output relationship in EU member states. The first section of the paper considers the role of innovation in economic growth with particular attention to the new endogenous growth models. In the second part, the dichotomous approach to innovation and its measures is presented. The last section contains the methodology and outcome of research. The results of the study show that R&D expenditures, ICT and human capital are the key innovation inputs that affect such innovation outputs as innovation and patent propensity and new-to-market sales.

Solow economy model

2019 ◽  
pp. 150-157
Author(s):  
Oleksandr Synenko ◽  
Kateryna Yarema ◽  
Yuliia Bezsmertna
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Solow Model ◽  
Economy Model ◽  
Accelerated Depreciation ◽  
Basic Parameters ◽  
The Subject ◽  
Investment Process ◽  
The Impact ◽  
Model Algorithm

The subject of the research is the approach to the possibility of using the Solow model to perform the regression analysis on the example of the Ukrainian economy model. The purpose of writing this article is to investigate the notion of regres- sion analysis, Solow’s economy model, algorithm for performing regression analy- sis on the example of Ukraine’s economy model. This model can be adapted for the economy of enterprises. Methodology. The research methodology is system-struc- tural and comparative analyzes (to study the structure of GDP); monograph (when studying methods of regression analysis on the example of the Ukrainian economy); economic analysis (when assessing the impact of factors on Ukraine’s GDP). The scientific novelty consists the features of the use of the Solow model on the ex- ample of Ukrainian economy are determined. An algorithm for calculating the basic parameters of a model using the Excel application package is disclosed. The main recommendations on the development of the national economy and economic growth through the use of macroeconomic instruments are given. Conclusions. The use of the Solow model enables forecasting and analysis. The results obtained re- vealed the problem of low resource return of capital as a resource, along with the means of macroeconomic regulation of the investment process, using which can improve the situation. A special place in these funds belongs to the accelerated depreciation and interest rate policies.

scholarly journals Research of the Disparities in the Process of Revitalization of Brownfields in Small Towns and Cities

2021 ◽  
Vol 13 (3) ◽  
pp. 1232
Author(s):  
Natalie Szeligova ◽  
Marek Teichmann ◽  
Frantisek Kuda
Keyword(s):  
Small Towns ◽  
The Czech Republic ◽  
Essential Step ◽  
Community Strength ◽  
Population Turnover ◽  
Subsequent Application ◽  
Level Of Knowledge ◽  
The Subject ◽  
Relevant Factors

The subject of the work is the research on relevant factors influencing participation in the success of brownfield revitalization, especially in the territory of small municipalities. Research has so far dealt with the issue of determining disparities in the municipalities of the Czech Republic, not excluding small municipalities, but their subsequent application has usually been presented in larger cities. The focus on smaller municipalities or cities was usually addressed only in general. The introduction provides an overview of theoretical knowledge in the field of brownfield revitalization. Defining the level of knowledge of the monitored issues is an essential step for the purposes of more effective determination of disparities. Disparities will be determined on the basis of information on localities that have been successfully revitalized. The identified disparities are then monitored in the territory of small municipalities. For the purposes of processing, it was determined that a small municipality or city is an area with a maximum of 5000 inhabitants. Using appropriately selected statistical methods, an overview of disparities and their weights is determined, which significantly affect the success of revitalization. In small municipalities, the issue of brownfields is not emphasized but, in terms of maintaining community strength and reducing population turnover, the reuse of brownfields is a crucial theme.

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