Search

We examine the record of cross-country growth over the past fifty years and ask if developing countries have made progress on closing the income gap between their per capita incomes and those in the advanced economies. We conclude that, as a group, they have not and then survey the literature on absolute convergence with particular emphasis on that from the last decade or so. That literature supports our conclusion of a lack of progress in closing the income gap between countries. We close with a brief examination of the recent literature on cross-individual distribution of income, which finds that despite the lack of progress on cross country convergence, global inequality has tended to fall since 2000. (JEL E01, E13, O11, O47, F41, F62) [ABSTRACT FROM AUTHOR]

Using a sample of 272 meta-observations drawn from 48 primary studies, this paper conducts a meta-analysis of the empirical literature that examines the impact of military expenditure on economic growth. We find that existing studies indicate growth-retarding effects of military expenditure. The results from the meta-regression analysis suggest that the effect size estimate is strongly influenced by study variations. Specifically, we find that underlying theoretical models, econometric specifications, and data type as well as data period are relevant factors that explain the heterogeneity in the military expenditure-growth literature. Results also show that positive effects of military expenditure on growth are more pronounced for developed countries than less developed countries. [ABSTRACT FROM AUTHOR]

The article examines the impact of stagflation on the economic conditions of developed countries during the 1970's, contrasting such conditions with those of the previous decade and using the contrast to illustrate the provisional nature of economic policy. The causes of stagflation are analyzed, the importance of free markets in economic growth are noted and the benefits and drawbacks of government intervention in the economy are discussed. Factors affecting the ability of democratic governments to enforce their economic policies are enumerated and the philosophical aspects of some central economic principles are addressed.

U.S.A. productivity growth has been decreasing relative to that of many other countries. The reasons for this should be viewed in terms of systems factors that affect the productive output of an over-developed country. [ABSTRACT FROM AUTHOR]

In many successful late-industrializing countries in the 20th century, business groups with operating units in technologically unrelated industries have acted as the microeconomic agent of growth. This paper explores why this business form has characterized countries which industrialized 'late', and why this form succeeded in the early phases of catching up whereas the advanced-country conglomerate has had an undistinguished performance. The paper uses internal resource-base theories of the firm to explore the significance of organizational knowledge and resulting increasing returns in the group form which, even in mature markets and especially in late industrialization, constitute a sustainable source of competitiveness. In the case of late industrialization foreign technology acquisition capability became a necessary condition for corporate success. In the best diversified business groups this capability was transformed into organizational know-how that provided a key resource in the effectiveness of corporate growth through diversification. The first two parts of the paper briefly survey diversified industrial groups in historical contexts and then across a broad array of late-industrializing countries. Then the paper considers why diversification was not prevalent among firms attempting to catch up in earlier historical periods, why the strategy of leading late-industrializing firms was one of diversification rather than specialization and why their chosen diversification path was one involving technologically unrelated industries. This is followed by the core argument of the paper about the transformation of technology acquisition into a competitive asset and illustrated with evidence from South Korea. Finally, the paper analyzes why the behavior of the lateindustrializing group differs from that of the American conglomerate. [ABSTRACT FROM AUTHOR]

Deceleration of economic growth is a characteristic feature of developed countries. Percentage gross domestic product (GDP) growth rate in the old Organization for Economic Co-operation and Development (OECD) countries has decreased approximately 2–3 times over the last 50 years, and countries have managed successfully to adopt this trend. The largest reduction of GDP growth rate was observed in countries such as Japan where the biocapacity exceedance was the largest. In addition, the analysis of long-term changes of GDP and self-reported life satisfaction in developed countries supports Easterlin's paradox indicating that richer people do not feel more satisfied with their lives; however, people from countries with higher per capita GDP feel more satisfied. At the same time, a statistically insignificant correlation was detected between GDP growth rate and life satisfaction, supporting a conclusion that in the developed countries further economic growth does not increase people's well-being. This suggests that decelerating the rate of economic growth gradually approaching the zero growth (steady state) phase is the natural way towards sustainability and it does not contradict the well-being objective in developed countries, especially ones with high biocapacity exceedance. [ABSTRACT FROM AUTHOR]

It has been argued that Raven's tests are problematic in the context of Sub-Saharan Africa. No discussion of Raven's in South Sudan, one of the least developed countries in Africa, has been presented. We present all known administrations of Raven's to South Sudanese samples. We find that Raven's in South Sudan is problematic. The scores are so low that they may imply that the subjects had little understanding of the test and simply guessed the answers. It is argued that the undeveloped nature of South Sudan means that a test based around shapes and analytic thinking is unsuitable. It is likely to heavily under-estimate their average intelligence. [ABSTRACT FROM AUTHOR]

This paper analyzes the impact of information and communication technologies (ICT) on economic growth in developing, emerging and developed countries. The main question is whether the gains from investments in ICT differ between developing, emerging and developed countries. The analysis is based on a high-quality sample of 59 countries for the period 1995–2010. Various panel data regressions confirm the previously reported positive relationship between ICT capital and GDP growth. For the combined sample of all 59 countries, the estimated output elasticity of ICT is larger than the ICT factor compensation share suggesting excess returns to ICT capital. The regressions for the subsamples of developing, emerging and developed countries do not reveal statistically significant differences in the output elasticity of ICT between these three groups of countries. Thus, the results indicate that developing and emerging countries are not gaining more from investments in ICT than developed economies, calling into question the argument that these countries are ‘leapfrogging’ through ICT. [ABSTRACT FROM AUTHOR]

We examine the causal relationship between globalization, economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970–2014. Due to the presence of cross-sectional dependence in the panel (countries from Asia, North America, Western Europe and Oceania), we employ the cross-sectional augmented IPS test to ascertain unit root properties. The cointegration test results indicate the presence of a long-run association between globalization, economic growth and energy consumption. Long-run heterogeneous panel elasticities are estimated through the common correlated effects mean group estimator and the augmented mean group estimator. The empirical results reveal that, for most countries, globalization increases energy consumption. In the USA and UK, globalization is negatively correlated with energy consumption. The causality analysis indicates the presence of the globalization-driven energy consumption hypothesis. This empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run. [ABSTRACT FROM PUBLISHER]

This article seeks to make a compendium of the research and empirical evidence available on the impact of technological change on labor aggregates. It has been documented that increases in labor productivity in the last decades did not have a negative net effect on employment levels. However, technological development and automation have been associated with changes in the composition of employment and polarization patterns that explain the significant fall in the share of middle-class occupations during recent decades in developed countries. In addition, specific characteristics of the digital economy have also been linked to trends in concentration and market power that could explain part of the decline in labor share over income in recent decades. Finally, the article discusses the economics discipline's efforts to anticipate these trends and forecast the future automation of jobs and public policy challenges for the labor markets of Latin America in the fourth Industrial Revolution. [ABSTRACT FROM AUTHOR]

We investigate the relationship between economic growth and top income inequality under the influence of human and physical capital accumulation, using an annual panel of U.S. state-level data. Our analysis is based upon the 'unified' framework offered by Galor and Moav (2004) while the empirics account for cross-section dependence, parameter heterogeneity, and endogeneity, in nonstationary series. We conclude that changes in inequality do not influence growth, neither in the short run nor in the long run in the United States as a whole in the 1929-2013 period. Our findings are robust to the inclusion of overall income inequality measures. These findings provide support for the theoretical prediction of the unified theory of inequality and growth, according to which the growth effect of inequality becomes insignificant in the latest stages of economic development that the United States experiences during our period of investigation. Therefore, future policies aiming at moderating the concentration at the upper end of income distribution are not likely to have adverse growth consequences in developed countries such as the United States. ( JEL I21, O47, C23) [ABSTRACT FROM AUTHOR]

The objective of this article is to fill an existing gap in the literature by constructing an index which attempts to assess the degree of a nation's immunity to economic risk by quantifying its level of economic independence and its ability to survive unilaterally. To do so, and following the conventional methodology of indices, the article first identifies the dimensions underlying economic independence and then selects the various indicators that best reflect each dimension. It then normalizes each indicator by using its highest and lowest historic goalposts. Finally, it averages the composite index using specific weights assigned first to each indicator and second to each dimension. The economic independence index, which was constructed for 112 countries, provides a gauge to such countries on where they stand in terms of economic resilience and how much risk they face if they were to stand alone economically, or pursue policies that are undesirable from the perspective of more economically powerful countries. This index thus provides a tool for governments to measure the direction and magnitude of government action needed to improve their respective nations' level of economic independence. [ABSTRACT FROM AUTHOR]

Population ageing and its influence on the economic growth has long been the focus of major concern. Using bibliometric techniques we found that: (1) although ageing has increasingly attracted more researchers within economics literature, the relative weight of ageing and economic growth related papers does not evidence a clear positive trend; (2) recent studies reveal the willingness of researchers to evaluate less immediate mechanisms relating ageing and economic growth; (3) the increase in the use of empirical methods reflects a trend to test economic phenomena with real-world data against the theory; (4) very few studies focus on developing and less developed countries. [ABSTRACT FROM AUTHOR]

Technical change is a major driving force for economic growth and development, thus technological change and innovations could be a powerful process that opens up opportunities to increase social welfare and benefits for societies. Whether opportunities turn into real benefits and allow for broad participation depends on a number of factors. In this contribution we focus on three questions. First, what are the drivers of and the gains from technological change? Second, is there broad participation in the gains from technological change? Third, what mechanisms generate asymmetric participation or even non-participation? Reviewing the literature, we obtain two sets of answers, one set for developed countries (DCs) and one for less developed countries (LDCs). For DCs, technology is still the driving force for aggregate progress. Innovations are driven by a combination of private and public R&D investments and the diffusion of innovations is spurred by innovative competition. Due to various reasons - such as technical bias, educational attainment, new firm concepts, globalization and outsourcing, disempowerment of labor unions, decreasing labor share in aggregate income, or agglomeration effects - we identify major differences in participation in gains across different groups. Further, technology that originated in DCs is transferred to LDCs. We identify the channels of technological transfer that allow LDCs to potentially participate in the benefits. Here, the development of the modern sector with links to international value chains plays a major role. However, global diffusion of technology and its gains are very diverse. Reasons for this diverse participation in gains include power structures in global value chains combined with an excess supply of labor and the malfunctioning of local governments and institutions in LDCs. [ABSTRACT FROM AUTHOR]

The middle and long-term slowdown in growth dynamics could bring serious social and political problems for V4 countries (Czech Republic, Slovak Republic, Hungary, Poland) and Romania. It would threaten reaching benefits from potential of convergence process with the developed countries of the European Union. As a result, the V4 economies and Romania should find solutions to achieving a sustainable growth that is associated with an improvement of their international competitiveness. This paper provides an empirical analysis of factors that might determine a stable economic growth in the five mentioned countries. The empirical analysis conducted for the period of 2003-2016 employed Bayesian generalized ridge regression. The main results indicated that the FDI promoted economic growth in all countries, except the Slovak Republic. Only in the Czech Republic, the expenditure on education generated economic growth, while the expenditure on R&D had positive effects in Romania, Hungary and the Czech Republic. [ABSTRACT FROM AUTHOR]

Urgency of the research. The system of state support for small business in different countries has its own peculiarities and is aimed at overcoming barriers preventing effective development of small business in particular economic conditions. Target setting. For a more detailed analysis of the impact of various factors on development of small enterprises it is necessary to study the application of tax methods of regulation, which are different in countries with Anglo- American and Continental accounting models. Analysis of scientific works of foreign and native authors regarding the influence of tax methods of regulation on business development in interconnection with the accounting models, and their impact on development of small business have not been investigated yet, thus necessitating further research. Uninvestigated parts of general matters defining. For analysis of the influence of various factors on small business development it is necessary to investigate tax methods of its regulation, which are different in the countries with Anglo- American and Continental accounting models. Purpose of the article is to study the application of tax methods of regulation and support for small business in western countries, their interconnection with accounting models (Anglo-American and Continental accounting models) and their impact on development of small business in the country. Main research matter. Peculiarities of state regulation of support for small business in the countries with Continental accounting model facilitate access of small enterprises to the capital and new technologies (allowances, subsidies, soft credits), though in most countries government assistance is based on the principle of self-help (independence of enterprises), creation of equal competitive conditions and temporary nature of support for development of certain sectors or fields of activity. In the countries with Anglo-American accounting model basic part of state support involves financial component, such as provision of low-interest loans and assistance in obtaining government orders. In addition, many countries also establish methods of accelerated depreciation for small business on certain types of equipment, reduced income tax rates, tax credits on favourable terms and others. Conclusion. Thus, countries with Anglo-American system of accounting have the best rating of the simplest tax systems, positively affecting development of small business in the country. The more consistent and understandable tax system is, the larger number of small enterprises can be founded, resulting in steady economic development of the state. [ABSTRACT FROM AUTHOR]

Copyright of Journal Architecture & Planning is the property of King Saud University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The international economic and financial-monetary crisis, as we know, began in developed economies. Just over eight years after the official announcement of Lehman Brothers bankruptcy (On September 15, 2008, Lehman announced its bankruptcy and AIG shares collapsed on international stock exchanges), the overall situation has seen a significant improvement, the macroeconomic damage created by the crisis has been largely focused, but not in a homogeneous manner along the economies and regions. The present paper tries to fit the current situation and perspective of developed economies (such as the US, the eurozone, Canada, Japan, the UK and others) in a general picture to capture the most relevant indicators, in perspective and in the unfavorable state of the world economy. Thus, according to the data presented by the International Monetary Fund and the United Nations experts, it seems that the forecasts for the current and the forthcoming year are not encouraging, and even have seen unfavorable revisions, both on savings categories and globally, of some indicators such as gross domestic product, economic growth, demand and supply of goods and services, exports and imports, exchange rate, etc. All these aspects will be presented below. [ABSTRACT FROM AUTHOR]

The determinants of non-life insurance expenditure in a panel data set covering 36 developed countries and 31 developing countries for the period 2000–2011 are analysed. Results of our instrumental variable analysis indicate that economic freedom, income, bank development, urbanization, culture and law systems are the key drivers of the non-life insurance expenditure across countries. However, their impacts differ significantly between the groups of developed and developing countries, suggesting that the heterogeneity among countries in terms of the level of development plays an important role. The global financial crisis is also found to influence the direction of those effects, especially in developed countries. The article yields useful policy and economic implications for governments and multinational non-life insurance companies with regard to the development of the non-life insurance sector, an important engine for economic growth and prosperity. [ABSTRACT FROM AUTHOR]

The paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors. [ABSTRACT FROM AUTHOR]

In this study, the changes that can be made in the amounts of foreign direct investment and the reflection of these changes on the decision-making units in the economy are evaluated in terms of The Republic of Turkey and Turkic Republics by using data concerning geographic identifiers formed by elements of density, weathering and distance. As is known to all, the initial steps of the new economic geography approaches were taken under the leadership of the center-periphery model which was carried out by Krugman for the first time in 1991. This model was built on the economic-geographical structure, which is revealed by the interaction among incremental revenue in company level, transportation costs and factor mobility, and also it was built on the reasons that lead the subject structure to change. In this context, whereas incremental revenue and imperfect competition models are used, the approach, which is enhanced by introducing economicgeographic features into model, provides us with the concept of "new economic geography". Accordingly, while the foreign direct investments show a direction from developed countries to developing countries in the past; today, in which the factual reasons are more likely to stand out, it can be observed that the subject investments skid from developing countries to undeveloped countries. Turkey is in the category the developing countries. The Turkic Republics do not develop as much as Turkey does, and also these countries are substantially ranked at the bottom of the related category. One of the most important reasons of that situation is that the Turkic Republics haven't been able to realize the required developments in terms of legal regulations and in terms of the essential substructures such as urbanization, transportation and energy. As a consequence, the question whether to make the foreign direct investments in developing countries such as Turkey or in the relatively cheaper and open to all kinds of enterprise, subcategory developing countries such as Turkic Republics where the countries investing for substructure might weather the storm is of a big importance. [ABSTRACT FROM AUTHOR]

Based on a synthesis of the empirical scholarship on England and Germany, this paper demonstrates that in both regions, rural socio-economic developments from c.1200 to c.1800 are similar: this period witnesses the rise to numerical predominance and growing economic significance of the 'sub-peasant classes', which had a growing impact on the market as a result of their increasing market dependence, and from which - towards the end of the period - a rural proletariat emerged. Against the influential theory of Robert Brenner, it is argued that the period c.1200- c.1400 cannot really be categorized as 'feudal' according to Brenner's definition; and 'agrarian capitalism' does not adequately describe the socio-economic system that obtained by the end of the sixteenth century. A genuine transition to capitalism is only evident from after c.1750, and can be found in Germany as well as in England; it is predicated both on ideological shifts and on the evolution of the rural proletariat, which is only found in large numbers by or after c.1800. [ABSTRACT FROM AUTHOR]

Nowadays the concept of Responsible Research and Innovation (RRI) is a well-noted policy of the European Union. The concept can be understood as the innovation policy of sustainability. On a theoretical level RRI is considered as a developed topic, but the interpretation of its practical utilization is an important task in the future. Universities play an important role in dissemination and implementation of responsible research and innovation. In addition to education RRI, knowledge utilization and proactive economic development have a great significance among the objectives of universities. So universities are the institutions which can effectively enhance the possibilities of RRI implementation. At the moment there are several empirical studies regarding the implementation of RRI (e.g. the STIR research based on Erik Fisher's methodology), universities have a key role in this process. This statement is especially true in less developed countries, where RRI is a relatively new concept, and where the research development and innovation activities are functioning in different ways compared to the practice of developed countries. Universities can contribute to raising awareness as well, in order to make decisions by considering several aspects of a certain topic. They not only follow templates and aim to avoid possible negative externalities. This paper examines the role of universities in dissemination and implementation of responsible innovation by considering particular characteristics of less developed countries. [ABSTRACT FROM AUTHOR]

In this period of high uncertainty about future economic growth, we have developed a growth projection tool for 13 advanced countries and the euro area at the 2100 horizon. This high uncertainty is reflected in the debate on the possibility of a "secular stagnation", fueled by the short-lived Information and Communication Technology (ICT) shock and the current low productivity and GDP growth in advanced countries. Our projection tool allows for the modelling of technology shocks, for different speeds of regulation and education convergence, with endogenous capital growth and TFP convergence processes. We illustrate the benefits of this tool through four growth scenarios, crossing the cases of a new technology shock or secular stagnation with those of regulation and education convergence or of absence of reforms. Over the period 2015-2100, the secular stagnation scenario assumes yearly TFP growth of 0.6% in the US, leading to a 1.5% GDP growth trend. The technology shock scenario assumes that the third technological revolution will, in the US, provide similar TFP gains to electricity during the second industrial revolution, leading to a 1.4% TFP trend, to which we add a TFP growth wave peaking in 2040, and thus to an average GDP growth rate of 3%. In non-US countries, GDP growth will depend on the implementation of regulation reforms, the increase in education and on the distance to the country-specific convergence target, namely the US, as well. Over the period 2015-2060, for the euro area, Japan and the United Kingdom, benefits from regulation and education convergence would amount to a 0.1 to 0.4 pp yearly growth rate depending on the initial degree both of rigidity and the TFP distance to the US. [ABSTRACT FROM AUTHOR]

The article provides a comparative analysis of Ukrainian education funding and funding education of some developed countries. The relationship between the financing of education and GDP is shown in article. It proved the importance of higher education in economic development of the country. However, despite the importance of higher education, Ukrainian universities have significant difficulties. Three groups of the challenges are discovered that are faced today Ukrainian universities. All groups of problems mentioned above, which the higher educational institutions deal with, cause the worsening of their financial situation and result in the disadvantage of the national science and education. Expenditures on education and science are offered viewed as an investment in human capital and the country's economy. Such investments in the sphere of education have proved to be correct, because the reversible effect is seen. These are those countries, which are the leaders in the amount of GDP in the world. That is, the investments in education are justified for both the country and the individual. So, the system of higher education is very important for future economic development of Ukraine. But it doesn't have enough financial resources for successful existence. All this results in looking for the intensive means of financial support of the higher educational institutions, the most important of which can be financial diversification and broadening of the institution autonomy. [ABSTRACT FROM AUTHOR]

Copyright of Industrial Relations / Relations Industrielles is the property of Universite Laval, Department of Industrial Relations and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Commitment to Development Index has been developed to assess seven policy areas of rich countries that affect the development of poor countries and to rank the rich countries from this perspective. This article aims to analyze the environmental component of this index. The environmental dimension is a legitimate part of the concept behind the index because preserving global environmental resources is essential for the future development prospects of poorer countries. The operationalization of the dimension, however, gives rise to several issues, such as the combination of policy and practice indicators, data availability and credibility, and other specific aspects that affect the information value of individual indicators and the component as a whole. Acknowledging the difficulty of constructing such a component, we suggest several options for its modification. [ABSTRACT FROM AUTHOR]

Using annual data, the paper studies the time-series evidence regarding the allocation of fluctuations in the exchange rate between demand components, real growth and price inflation in a sample of developing and advanced countries. Subsequently, cross-country correlations establish the relevance of fluctuations in imports to the pass-through channel of exchange rate fluctuations to economic activity. Further, the evidence evaluates the direct effects of fluctuations in the nominal values of imports on price inflation and real growth. Cross-country regressions evaluate the effects of variation in the average and variability of exchange rate fluctuations on import growth. Subsequently, variation in indicators of macroeconomic performance (real growth, price inflation and the growth of private consumption and investment) is evaluated with respect to variation in the exchange rate and/or import growth. In developing countries, the evidence indicates the relevance of fluctuations in import growth to the transmission mechanism of exchange rate fluctuations to the macroeconomy. Where this relationship dominates, fluctuations in the exchange rate are no longer significant to the difference in macroeconomic indicators, having controlled for variation in import growth across countries. In advanced countries, import fluctuations may be transmitted to economic activity, further to fluctuations in the exchange rate, in line with variations in terms of trade. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Objective One relatively neglected question raised by Amartya Sen's theory of human development is: Why do people and societies differ in their capacity to convert income and commodities into valuable human achievements ('functionings' in Sen's terminology)? I focus upon the degree to which people in developed and developing societies realize each of the six diverse types of valued functionings: long life, schooling, living in a society with less income inequality and less gender inequality, more political freedom, and greater life satisfaction. Methods Using data from all societies with a population of over 1 million ( N = 156), I first regress each type of functioning on societies' GDP per capita to obtain the residual scores. These scores indicate which societies do better than expected, as expected, or worse than expected on the basis of their level of economic development. Results and Conclusion To explain these differences, I then estimate an ordinary least squares (OLS) regression model whose independent variables are economic growth rate, ethnolinguistic fractionalization, civil war fatalities, corruption, and several dummy variables for cultural regions of the world. [ABSTRACT FROM AUTHOR]

The article offers the authors' views on the South-South trade in Latin America and the Caribbean (LAC) region. They mention a hypothesis from economist Andrew Lewis on commercial exchange and its role as a global economic growth engine powered by industrial expansion in developed nations. They note its depiction of an intra-regional phenomenon and expansion through production sharing schemes. An overview of the contribution of developing countries to the gross domestic product (GDP) worldwide is also presented.

From 1980 to 1992, emerging and developing countries grew by 3.4 percent per year. Their annual rate of growth increased to 5.4 percent between 1993 and 2012. No such increase occurred for advanced nations, whose average growth from 1980 to 2012 was roughly constant (excluding the impact of the 2008-2009 Recession). Developing nations turned themselves around by embracing discipline-sustained commitment to a pragmatic and flexible growth strategy. Three illustrations of discipline through the lens of trade, fiscal, and debt reforms in the developing world offer relevant, practical lessons for recovery in advanced economies and continued catch-up growth in developing nations. [ABSTRACT FROM AUTHOR]

The great story of the last decade has been the 'rise of the rest'-emerging economies such as China, Brazil, Turkey and India-to a position rivaling that of the established, advanced economies. As the aftershocks of the financial crisis of 2008-2009 continue to ripple through the global system, will the rising rest stay or track or be derailed? Some of the world's top economists examine this question in the following section. [ABSTRACT FROM AUTHOR]

There is much controversy in the literature over whether military expenditures have a positive, negative or no relation impact on economic growth. The aim of this paper is to determine the relationship between GDP and defence expenditure. The study analyses GDP and defence expenditures of the developed countries with cross-sectional ADF and SURADF unit root tests using annual data for the years 1980–2007. We conclude that in the long term, according to the Pedroni cointegration test, there exists a relationship between defence expenditure and economic growth. Furthermore, by utilizing the Granger causality test, we find that defence expenditure is a factor in economic growth. In other words, our study validates the hypothesis that defence spending by economically developed countries positively contributes to their economics. [ABSTRACT FROM AUTHOR]

After the Great Depression of the 1930s, a key role in outweighing the biggest financial and economic crisis has played the implementation of unconventional monetary policy measures, being used as a policy of ultra-cheap money. The need of their implementation in the developed countries is a proof that the standard measures could not provide a way out of the recession into which they have fallen, and there has been brought into question the functioning of the existing system and relations, especially the functioning of national currencies in the role of world money. It is a fact that the standard measures, through the policy of cheap money, have temporarily showed themselves as a proper vehicle for leading a relaxed monetary and fiscal policy in the developed economies, but in the end they have resulted in financial and debt crisis. However, it is a problem that the way out of recession was looked for within the implementation of unconventional monetary policy measures, by which, in fact, there has been increased the level of its relaxation, and thus the danger of future crises too. It is known that the thing which led to crisis cannot help outweigh it. By implementing unconventional measures within the existing International Monetary System, the crisis can only be carried in other countries and it is not solved permanently. For that reason, it is necessary to be created a global currency as a result of which, the national systems will turn themselves back to the implementation of conventional measures, with no possibilities for carrying the national economic problems into other countries. [ABSTRACT FROM AUTHOR]

The aim of this paper is to make the research on the possibilities of the economy stimulation in the case of developed countries, more precisely, to determine the ways of the GDP growth staying within the model framework that was built. [ABSTRACT FROM AUTHOR]

Providing services has become the most important sector of the economy and the main dynamic factor of the economic competition, within the developed countries economies. In such economies, the sector of economies has assimilated the workforce issued in the other sector, when this over plus of labor force represented simultaneously the cause of its expansion. The services have had a double part: they contribute on both the material entertainment of the labor force, as well as on maintaining the reestablishment of people's health, to their physical and intellectual recovery, to the development of the individual, as regards the cultural and scientific points of view, and implicitly, to the growth of the living standards. For the time being, one can characterize the economies of the developed countries, as well as of many other countries in progress of development, as services oriented economies; the development and diversification of services has been determined by the need of satisfying diversified social needs. In this way, the part of services aims on becoming proportional to their contribution within the process of economic growth. One can definitely say that between services and the economic growth, a double conditioning takes place, meaning: on one hand, the development of services appears as a consequence of the economic growth, and on the other hand, it grows up the economic growth, thus contributing on diversifying the production and on improving the level of training or qualification of the labor force. [ABSTRACT FROM AUTHOR]

The article presents theoretical considerations on the formation of knowledge-based economy, with particular emphasis on human capital in this process. One of the significant development factors in the contemporary economy is knowledge - when it is correctly used and managed, it may become a key to economic success. Knowledge becomes a factor influencing the development of societies, enterprises and whole economies. In majority of developed countries, the economies tend to become knowledge-based economies with such main development determinants as education and development of human capital, increase in expenditure on research and development, high level of innovation, and establishment of information society. At present, it is emphasised that human capital is a crucial factor in long-term social and economic growth as it governs e.g. the possibilities of economy in the scope of generating technological change (Welfe, 2007, p. 112). Therefore, it may have been observed in recent years that the interest in the development of human and intellectual capital is increasing as it directly determines the possibility of establishing knowledge society - creative, innovative, open to changes, able to create permanent social and economic relations. The importance of intellectual capital is emphasized also in creating information society and developing innovations which are the main determinants of today's economies (Dobija & Rosolińska, 2008, p. 63). The discussion on human capital no longer focuses on such issues as its significance for economic growth and for further social and economic development of each country. The thesis stating that human capital has a great role in the development has been already confirmed by numerous researchers. Continued considerations include other issues related to the improvement of human capital, new methods of measuring the quality of human capital, quality of life, relation with social capital, and definition of human capital as creative capital. [ABSTRACT FROM AUTHOR]

Copyright of Business Consultant / Poslovni Konsultant is the property of FINconsult Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Within the last two decades, the world has seen many financial crises which have spread around the globe and affected both developing and developed countries. Although each had its own particularities, there are some similar patters that stand out, most being related to an over evaluated asset in a country or region and a sharp withdrawal of funds that led to the burst of the crisis. Looking into each of them, there are some common causes and addressing these may help prevent any future financial shocks. [ABSTRACT FROM AUTHOR]

The article presents a study which examines the impact of financial openness on the real gross domestic product (GDP) per capita growth of 34 developed countries from 2000-2010. Four sub-variables which measure various aspects of restricting capital accounts were used to examine the financial openness's impact. The literature review, methodology and results analysis, and conclusions are also discussed.

The role of innovation on growth has been analysed to some extent and has been relying mostly on research findings undertaken in developed countries. The aim of this paper is to analyse whether innovation has any role at regional level for potentially explaining the variations in growth among regions, particularly in developing countries. The paper draws upon previous work and to undertake the research, data available from the Enterprise Survey was used to test the potential impact of innovation on economic growth at regional level. The results showed that innovation affects growth using a sample for Romania. This study can constitute the basis for understanding the concept of innovation in relation to regional economic growth and further research in Romania and beyond. [ABSTRACT FROM AUTHOR]

La crisis financiera de los países desarrollados puede escalar a una recesión global llevando el desempleo a niveles inmanejables dentro de un marco de problemas adicionales, como la escasez y el aumento de los precios en los energéticos y los alimentos. Las políticas económicas para enfrentar el problema repiten los esquemas que están en el origen de la misma crisis, provocando el cuestionamiento de las sociedades de base, y con ello, una crisis socioinstitucional que proyecta la dificultad a una crisis multidimensional. Bajo estos términos, asistimos a una crisis del modelo neoliberal que precisa de nuevos acuerdos y compromisos entre la sociedad y el Estado para instalar nuevos esquemas de política económica y de política-política, amén de procesar un nuevo paradigma universal del desarrollo. [ABSTRACT FROM AUTHOR]

We study how fluctuations in money growth correlate with fluctuations in real output growth and inflation. Using band-pass filters, we extract cycles from each time series that last 2-8 (business cycles) and 8-40 (longer-term cycles) years. We employ annual data, 1880-2001 without gaps, for 11 industrial countries. Fluctuations in money growth do not play a systematic role at business cycle frequencies. However, money growth leads or affects contemporaneously inflation, but not real output growth, in the longer run. Also, formal break tests indicate no structural changes for the longer-term money growth and inflation relationship, despite changes in policy regimes.( JEL E3) [ABSTRACT FROM AUTHOR]

Copyright of Journal of the Faculty of Economics / İktisat Fakültesi Mecmuası is the property of Istanbul University, Faculty of Economics and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper, the authors start from the key argument that the level of national competitivness completely refl ects the level of a certain country to create a growing prosperity for its citizens. Th e starting hypothesis considers that competitivness of one national economy depends on various factors. Moreover, based on the experience of developed countries that are leaders, concerning the level of competitiveness, we may conclude that competitiveness depends mainly on knowledge and innovativeness, i.e., non-price factors of competitiveness. In this sense, the problem concerning the growth and development of transitional countries in conditions of global crisis is observed taking into account the danger from the process of globalization which suggest that the recovery could be reached through 'economy of knowledge`. [ABSTRACT FROM AUTHOR]