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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]

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]

This paper examines the aftermath of postwar financial crises in advanced countries. We construct a new semiannual series on financial distress in 24 OECD countries for the period 1967-2012. The series is based on assessments of the health of countries' financial systems from a consistent, real-time narrative source, and classifies financial distress on a relatively fine scale. We find that the average decline in output following a financial crisis is statistically significant and persistent, but only moderate in size. More important, we find that the average decline is sensitive to the specification and sample, and that the aftermath of crises is highly variable across major episodes. A simple forecasting exercise suggests that one important driver of the variation is the severity and persistence of financial distress itself. At the same time, we find little evidence of nonlinearities in the relationship between financial distress and the aftermaths of crises. (JEL E32, E44, G01, N10, N20) [ABSTRACT FROM AUTHOR]

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]

In this study, some tests (Augmented Dickey - Fuller (ADF), Phillips - Perron (PP), Kwiatkowski, Phillips Schmidt, Shin (KPSS) and Elliot, Rothenberg and Stock (ERS) that allow unit root test was performed firstly in singular sense about the developed countries, and then the IPS tests (Im KS, Pesaran MH, Shin Y (2003)) that allow unit root test in unbalanced panels, and the unit root test Pesaran CADF (2006) that allows panel unit root test in case the horizontal section dependency exists were performed. This study deals with the unit root hypothesis related to the real GDP (Gross Domestic Product) for 35 advanced economies, for the period of 1960-2011. The results obtained from the unit root tests in applied singular and panel structures suggest that the null hypothesis must not be rejected. [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]

Do populations grow as countries become richer? In this study we estimate the effects on population growth of shocks to national income that are plausibly exogenous and unlikely to be driven by technological change. For a panel of over 139 countries spanning the period 1960-2007, we interact changes in international oil prices with countries' average net-export shares of oil in GDP. Controlling for country and time fixed effects, we find that this measure of oil price induced income growth is positively associated with population growth. The IV estimates indicate that a 1 percentage point increase in GDP per capita growth over a 10-year period increases countries' population growth by around 0.1 percentage points. Furthermore, we find that this population effect results from both a positive effect on fertility and a negative effect on infant and child mortality. [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]

This review article examines the development of state capacity—the extractive and productive power of states— in European history. To explain the historical evolution of state capacity, I focus on the role of political innovations. I relate state capacity improvements to long-run economic growth and the establishment of twentieth-century welfare states. The article concludes with historical lessons for developing nations today. “In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.”James Madison (1788, p. 257) [ABSTRACT FROM PUBLISHER]

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.

We examine the evolution of real per capita GDP around 100 systemic banking crises. Part of the costs of these crises owes to the protracted nature of recovery. On average, it takes about 8 years to reach the pre-crisis level of income; the median is about 6.5 years. Five to six years after the onset of crisis, only Germany and the United States (out of 12 systemic cases) have reached their 2007-2008 peaks in real income. Forty-five percent of the episodes recorded double dips. Post-war business cycles are not the relevant comparator for the recent crises in advanced economies. [ABSTRACT FROM AUTHOR]

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]

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]

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]

The comparative political economy of developed countries has often neglected the growing interest in producing well-being indicators that go beyond GDP. This was largely due to lack of reliable and comparable data. In spite of this, Osberg and Sharpe have recently provided a time-series cross-section data set of the Index of Economic Well-Being (IEWB) for selected OECD countries. Accordingly, this article tries to plug the current gap between the comparative political economy and well-being literature by presenting an empirical study about the impact of partisanship and state intervention on the IEWB and its four domains (that is, consumption flows, stocks of wealth, economic equality, economic security). A main lesson can be drawn from the econometric analysis: left cabinets and their favorite policies increase stocks of wealth, economic equality and economic security, rather than consumption flows. This means that leftist governments do not promote the current prosperity of a typical citizen but the future and widespread well-being of most population. [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.

GDP, a yardstick designed to measure the progress of the economies of the world's industrial nations after World War II has been instrumental in rebuilding the economies in the past, but now it is causing as many problems as it solves. Many questions have been raised about GDP: Increasing self-reliance means decreasing GDP; GDP doesn't correlate with quality of life measures; GDP doesn't account for the distribution of costs and benefits. It was against this backdrop of inadequate measure that GNH was proposed as an alternative measure of development. Therefore, the larger aim of this paper is to build a methodology to construct GNH domain-specific quantitative indicators (objective and/or subjective) and then develop a single GNH indicator from the domain-specific indicators. To achieve this, observable variables thought to belong to a specific domain according to prior theories or notions are grouped together. A latent variable has been identified and suitably renamed. Subsequently, implemented causal modeling amongst/between them--evaluated model fitness, validated the relationships and finally a decision is made about the prior notions or theories of the composition of GNH domains using the GNH survey data of the year 2010. [ABSTRACT FROM AUTHOR]

The article discusses the slowdown in the economic growth of industrial countries in 2011. It explores various regional factors that can contribute to global growth including the combined real gross domestic product (GDP) of the 18 members of the European Union as well as the global consumer demand among geographic areas. According to the author, the growth in output in the Pacific region is expected to reach an average of 0.5 per cent.

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The article discusses the potential economic growth of the Brazil, Russia, India, and China (BRIC) nations by 2050. According to the projections of Goldman Sachs Asset Management, some of BRICs' economic indicators show the possibility of incredible growth in the future. However, it says that although the BRIC economies can dominate the developed world with gross domestic product (GDP) growth, their populations' expected purchasing power will not immediately hit those of developed countries.

Abstract: This paper introduces a new framework for projecting potential growth of the world economy, emphasizing the contribution of information technology. We first analyze the sources of economic growth for the world economy, seven regions, and fourteen major economies during four periods—1989–1995, 1995–2000, 2000–2004, and 2004–2008. The contribution of investment in information technology has increased in all regions, but especially in industrialized economies and Developing Asia. We then project the potential growth rates of labor productivity and GDP for 122 economies over the ten-year period 2009–2019. Relative to historical growth for 1989–2008, we project lower growth rates for productivity and GDP. [ABSTRACT FROM AUTHOR]

The article considers historical economic data spanning approximately 200 years for 44 countries to consider the effects of increased public or government debt on economic growth. The article compares and contrasts economic models for both rich countries and emerging markets, or developing countries. Some of the countries considered include the U.S., Ireland, Norway, Chile, and India. Other subjects discussed include GDP (Gross Domestic Product), inflation, and government sponsored economic stimulus efforts to reduce the effect of the global financial crisis of 2007-2009.

Presents charts and graphs on the economic performance of the G7 group of industrialized countries between 2001 and 2005. Gross domestic product of the United States and Canada; Industrial production; Inflation and unemployment in Japan, Germany and Great Britain.

Presents statistics related to the economic conditions of developed countries compiled as of June 2004. Inflation rate; Industrial production; Unemployment; Real gross domestic product; Consumer price index.

The article presents information on the variability of inflation. Two separate policy issues have led to discussion of a preferred rate of inflation: the possible choice between inflation and jobs and the choice between taxes on money balances and taxes of other kinds. Economists have remarked that the discussion is typically conducted as though a more inflationary policy means a rise from one steady rate to a higher steady rate. The world might not be like that; a rise in the average rate of inflation might mean, inevitably, a rise in its variability. Economist Arthur Okun presented some evidence to suggest that countries with higher rates of inflation do experience more variable rates and suggested why it might be so. Economists Dennis E. Logue and Thomas D. Willett presented further results that supported Okun's position; but their results did not support Okun in the case of highly industrialized countries- the ones that concerned him. The author summarize these findings and report additional evidence that supports Okun for highly industrialized as well as other countries.

BRICS is an acronym for Brazil, Russia, India, China and South Africa and has emerged as the symbol of the shift in global economic power, developing at a faster pace than industrialized countries. BRICS accounted for 53% of the entire global GDP growth during the period 2007–2010 and, in the next 40 years, as much as 80% of the world's economic growth will come from emerging market countries. Despite the fact that infrastructure in BRICS has improved markedly in recent years, these countries have not created a modern, broad healthcare system as encountered in the G7 industrialized countries and extensive regional differences in health expenditure exist between them. Nevertheless, the BRICS countries are quickly taking the lead in encouraging innovation, simplifying devices and processes and applying newer technologies that are more adapted to consumers' needs and less costly. Cardiovascular surgery in the BRICS countries remains far lower when compared with the G7 countries and the cardiovascular surgical training also varies widely. However, this huge shift in the global economy and the regional discrepancies might represent a unique opportunity for co-operation, interaction and partnership to integrate cardiovascular societies and surgeons all over the globe for the best care of our patients: surely it will contribute to making our world more egalitarian, fairer and better. [ABSTRACT FROM AUTHOR]