A simple exogenous growth model gives conservative estimates of the economic implications of machine intelligence. Machines complement human labor when they become more productive at the jobs they perform, but machines also substitute for human labor by taking over human jobs. At ﬁrst, expensive hardware and software does only the few jobs where computers have the strongest advantage over humans. Eventually, computers do most jobs. At ﬁrst, complementary eﬀects dominate, and human wages rise with computer productivity. But eventually (...) substitution can dominate, making wages fall as fast as computer prices now do. An intelligence population explosion makes per-intelligence consumption fall this fast, while economicgrowth rates rise by an order of magnitude or more. These results are robust to automating incrementally, and to distinguishing hardware, software, and human capital from other forms of capital. (shrink)
This article examines the means by which Malaysian governments have been relatively successful in pursuing both economic development and social equity. These advances have been remarkable, given Malaysia's history of colonial servitude and racial and ethnic tensions. The authors' examination of government economic and social policies notes the importance of strong political leadership that is committed to creating a national identity through consensus building. In pursuing these social objectives, successive governments have also played an active and transparent role (...) in fostering economicgrowth and development. However, a number of problems remain as Malaysia continues to follow these social and economic policies. (shrink)
Neo-liberal economics is built upon the claim that the freedom to pursue one's self-interest and rational choice leads to economicgrowth and development. Against this background neo-liberal economists and policymakers endeavoured to universalise this claim, and insistently argue that appropriate economic policies produce the same results regardless of cultural values. Accordingly, developing countries are often advised to embrace the neo-liberal economic credo for them to escape from the trap of underdevelopment. However, the economic success of (...) South East Asia on the one hand and the failure of economic development in sub-Saharan Africa on the other, are increasingly proving that the 'economic' argument cannot be taken dogmatically: self-interest and rationality do not seem to be the sufficient explanations for economic development. One other avenue to be taken seriously is the link between cultural values and economic development. After viewing the principle of self-interest against its historico-cultural background, I consider this link in the African context, and argue that, although they cannot be taken as the sole factor, people's cultural beliefs and values are crucial for economic development. Economicgrowth and development need to be a substantiation of a people's beliefs and values. In African value system, this substantiation could lead to what one would call 'ubuntu economy' in which the state, the markets and the people are all agents, and not patients, in the process of economicgrowth and development. (shrink)
Must a society aim indefinitely for continued economicgrowth? Proponents of economicgrowth advance three central challenges to the idea that a society, having attained high levels of income and wealth, may justly cease to pursue further economicgrowth: if environmentally sustainable and the gains fairly distributed, first, continued economicgrowth could make everyone within a society and globally, and especially the worst off, progressively better off; second, the pursuit of economic (...)growth spurs ongoing innovation, which enhances people’s opportunities and protects a society against future risks; and third, continued economicgrowth fosters attitudes of openness, tolerance, and generosity, which are essential to the functioning of a liberal democratic society. This article grants these challenges’ normative foundations, to show that, even if one accepts their underlying premises as requirements of justice, a society may still justly cease to aim for economicgrowth, so long as it continues to aim for and realize gains on other dimensions. I argue that, while continued economicgrowth might instrumentally serve valuable ends, it is not necessary for their realization, as a society can achieve these ends through other means. (shrink)
This article explores how the liberal tradition of political thought has dealt with the prospect of limits to economicgrowth and how it should approach this issue in the future. Using Andrew Moravcsik's explanatory liberal theory, it finds that the commitment of governments to growth stems primarily from the aggregation of societal preferences for the social goods that growth produces. The arguments of liberal thinkers who have grappled with the issue of growth are then examined (...) to gain a deeper theoretical understanding of the relationship between liberal democracy and growth. These include John Stuart Mill, for whom a non-growing economy was essential for overcoming the tension between liberty and equality; Ronald Dworkin, who argues that growth is a derivative means to further more fundamental ends; and Marcel Wissenburg, who suggests that it is legitimate for liberal democracies to limit the preference for growth if it risks undermining liberal norms and institutions. Using these theoretical insights, it is argued that environmental degradation, which is partly driven by growth, now threatens the fundamental liberal commitments of many liberals, including some forms of state neutralism, utilitarianism, inalienable individual rights and above all human autonomy. Therefore, liberal democratic states not only can, but must move towards a post-growth economy to secure these objectives into the future. (shrink)
This history of theories and theorists of economicgrowth elucidates the economic theory, economic history, and public policy observations of the renowned scholar W. W. Rostow. Looking at the economicgrowth theories of the classic economists up to 1870, Rostow compares Hume and Adam Smith, Malthus and Ricardo, and J.S. Mill and Karl Marx. He then examines the period 1870-1939 and its economic theorists, including Schumpeter, Colin Clark, Kuznets, and Harrod, and surveys the (...) three forms of growth analysis in the postwar era: formal models, statistical morphology, and development theories. This authoritative overview also includes an agenda of unresolved problems in growth analysis and a description of the five major tasks statesmen will confront over the next several generations. (shrink)
Financial crises have become an all-too-common occurrence over the past twenty years, largely as a result of changes in finance brought about by increasing internationalization and integration. As domestic financial systems and economies become more interlinked, weaknesses can significantly impact not only individual economies but also markets, financial intermediaries and economies around the world. This volume addresses the twin objectives of financial development in the context of financial stability and the role of law in supporting both. Financial stability (frequently seen (...) as the avoidance of financial crisis) has become an objective of the international financial architecture as well as individual economies and central banks. At the same time, financial development is now seen to play an important role in economicgrowth. In both financial stability and financial development, law and related institutions have a central role. (shrink)
This paper uses a paradigmatic lens to conceptually explore the global sustainability crisis. To anchor what would otherwise be an abstract thought experiment, the discussion focuses on GDP, economicgrowth and progress measurement. By reviewing the extensive debate around GDP through a paradigmatic lens, the paper explores why the prevailing growth-centric paradigm is “in crisis”. More importantly, it suggests that the crisis is unlikely be resolved by human agency, unless the requisite convincing forces for a paradigm shift (...) are present. Or, failing this, that aggravating sociological and/or ecological conditions over time could impel the shift to some new, hitherto-unimagined, paradigm. (shrink)
This study maintains that China's system of economic planning tends to mitigate the trade-off between economicgrowth and equity that has been found to prevail in the early stages of development in most less developed countries. The analysis focuses on the Chinese leadership's attempt to improve economic efficiency by decentralizing economic management without encouraging, as a consequence, increased economic inequality among different regions. By examining the budgetary and planning process, focusing in particular on the (...) fiscal relations between the centre and the far-reaching degree of resource redistribution undertaken by the central government through its control of interprovincial and intersectoral resource transfers. Professor Lardy's analysis highlights the essential features of Chinese economicgrowth and relates these to the experience of both developing and Soviet-type economies. (shrink)
More Info: B. Plawgo, A. Grabska, M. Klimczuk-Kochańska, A. Klimczuk, J. Kierklo, J. Żynel-Etel, Startery podlaskiej gospodarki. Analiza gospodarczych obszarów wzrostu i innowacji województwa podlaskiego: sektor produkcji oprogramowania komputerowego (Podlasie economy starters. Analysis of economicgrowth and innovation areas of Podlaskie: software production sector), Wojewódzki Urząd Pracy w Białymstoku, Białystok 2011.
The development of the endogenous growth model rekindled interest in growth theory. In contrast to the neo-classical model, long-run endogenous growth emerged as an equilibrium outcome, reflecting the behaviour of optimizing agents in the economy. This book brings together a number of contributions in growth theory and macroeconomic dynamics, reflecting these developments and the ongoing debate over the relative merits of neo-classical and endogenous growth models. It focuses on the emergence of three important aspects: First, (...) it develops growth models that extend the underlying theory in different directions. Second, it addresses one of the concerns of the literature on growth and dynamics: the statistical properties of underlying data and the effort to ensure that growth models are consistent with empirical evidence. Third, it discusses the increasingly international focus of macrodynamics and growth theory, an inevitable consequence of the integration of the world economy. (shrink)
Startery Podlaskiej Gospodarki. Analiza Gospodarczych Obszarów Wzrostu I Innowacji Województwa Podlaskiego: Sektor Rehabilitacji Geriatrycznej (Podlasie Economy Starters. Analysis of EconomicGrowth and Innovation Areas of Podlaskie: Geriatric Rehabilitat Bogusław Plawgo, Magdalena Klimczuk, Mariusz Citkowski, Marta Juchnicka & Andrzej Klimczuk Wojewódzki Urz¸Ad Pracy W Białymstoku (2009) .
In Hong Kong, which is one of the highest GDP per capita cities in the world, the problem of poverty, particularly the housing of the poor, has been exacerbated as economic development has progressed. The received neocapitalistic view is that such poverty is an inevitable price for the economicgrowth which will eventually benefit everyone. In this essay, I criticize such view by examining how non-inclusive economic development in the past created barriers to inclusive economic (...) development today. Through a comprehensive analysis of the housing problem in Hong Kong, I argue that these barriers, including not only physical constraints such as ownership and the lease of lands, housing prices and public housing policies, but also an ideological constraint adopted and advocated by the rich that regards poverty as a consequence of personal laziness and stupidity rather than a failure of the government, render the promise of the neo-capitalistic equality between rich and poor very difficult if not impossible to attain. I conclude that real equality can be attained only if we regard inclusive development as a necessary component of development from the beginning rather than a remedy for noninclusive development. Keywords : EconomicGrowth, Inclusive Development, Hong Kong, Housing Problem. (shrink)
This book examines the long term economicgrowth that has raised the West's material living standards to levels undreamed of by counterparts in any previous time or place. The authors argue this growth has been driven by periodic technological revolutions that have transformed the West's economic, social and political landscape over time and allowed the West to become, until recently, the world's only dominant technological force. A must read for anyone interested in economicgrowth.
It is generally assumed that sustainable development and economicgrowth are compatible objectives. Because this assumption has been left unspecified, the debate on sustainability and growth has remained vague and confusing. Attempts at specification not only involve clarification of the interrelation of the two concepts, but also, we argue, require a philosophical approach in which the concepts of sustainability and economicgrowth are analyzed in the context of our frame of reference. We suggest that if (...) the notion of sustainability is to be taken seriously, the conflicting conceptual and normative orientations between the two concepts require the reconsideration of our frame of reference. (shrink)
The spillovers in knowledge among largely college-educated workers were among the key reasons for the impressive degree of economicgrowth and spread of entrepreneurship in the United States during the 1990s. Prior 'industrial policies' in the 1970s and 1980s did not advance growth because these were based on outmoded large manufacturing models. Zoltan Acs and Catherine Armington use a knowledge spillover theory of entrepreneurship to explain new firm formation rates in regional economies during the 1990s period and (...) beyond. The fastest-growing regions are those that have the highest rates of new firm formation, and which are not dominated by large businesses. The authors of this text also find support for the thesis that knowledge spillovers move across industries and are not confined within a single industry. As a result, they suggest, regional policies to encourage and sustain growth should focus on entrepreneurship among other factors. (shrink)
Ever since Adam Smith, economists have been preoccupied with the puzzle of economicgrowth. The standard mainstream models of economicgrowth were and often still are based either on assumptions of diminishing returns on capital with technological innovation or on endogenous dynamics combined with a corresponding technological and institutional setting. An alternative model of economicgrowth emerged from the Cambridge School of Keynesian economists in the 1950s and 1960s. This model - developed mainly by (...) Luigi Pasinetti - emphasizes the importance of demand, human learning and the growth dynamics of industrial systems. Finally, in the past decade, new mainstream models have emerged incorporating technology or demand-based structural change and extending the notion of balanced growth. This collection of essays reassesses Pasinetti's theory of structural dynamics in the context of these recent developments, with contributions from economists writing in both the mainstream and the Cambridge Keynesian traditions and including Luigi Pasinetti, William Baumol, Geoffrey Harcourt and Nobel laureate Robert Solow. (shrink)
Abstract Twenty years ago, Tibor Scitovsky questioned the assumption, embedded in neoclassical economics, that human happiness will be augmented if the level of consumption either rises or becomes more uniform over time. Evidence from the 1990?1993 World Values Survey suggests that his doubts were well?founded: although economic gains apparently make a major contribution to subjective well?being as one moves from societies at the subsistence level to those with moderate levels of economic development, further economicgrowth seems (...) to have little or no impact on subjective well?being. This transition seems to reflect a basic cultural change that results in the diminishing marginal utility of economicgrowth. (shrink)
The influence of cultural industry competitiveness on economicgrowth is analyzed by using grey relational degree method. Then, the influence of cultural industry on the three industries is analyzed and compared in the same way. On this basis, further from the cultural industry, the impacts of core layer, outer layer, and related layer on economicgrowth were compared and analyzed. Finally, the economicgrowth model is used to measure the impact of investment, labor, and (...) innovation in cultural industry on economicgrowth. The results show that cultural industry has a great influence on economicgrowth. The cultural industry has an obvious driving effect on the tertiary industry. The correlative layer of cultural industry has the greatest influence on economicgrowth. Cultural industry innovation has a huge pulling effect on economicgrowth. The SPSS software was used to process the data, and the data indicators were screened. Finally, the grey relational degree model was constructed. Then, the improved diamond model was used to select the influential factors of the development of cultural industry, and the main influencing factors were found out through the grey relational degree analysis. This paper analyzes the factors affecting economic benefits and puts forward countermeasures. The results show that it is of great significance to pay attention to the development of cultural manufacturing industry in cultural industry and promote cultural innovation to promote economicgrowth. (shrink)
This paper explores the relationship between export growth and economicgrowth in the case of Pakistan by employing time series data for the period 1971- 2013. This study has incorporated variables like GDP exports, imports and Foreign Direct Investment. We have applied ARDL to co-integration and Error Correction Model. The study provides the evidence of stationary time series variables, the existence of the long - run relationship between them, and the result of ECM revealed short rum equilibrium (...) adjustment. Pakistan has many options for enhancing the export of the country. There is a dire need to minimize trade barriers and restrictions such as import and export quotas. Government of Pakistan had introduced Structural Reforms for liberalization, privatization and de-regulation which will actually shifted the trend of trade at a significant level in the end of 1980s. Low levels of interest rate can help exportable industries in which investments are needed to promote and enhance the exports. Stable exchange rate is the first and the best policy option for increasing the export and managing the imports. There is a cause and effect relationship between exchange rate and FDI. Pakistan has to immediately find the policies and processes that support logistics and facilitates trade. (shrink)
First published in 1981 this book presents an original theoretical treatment of the problems of maintaining full employment in a multisector economic system with a growing population and different rates of technical progress in different sectors. The conditions for full employment and full capacity utilisation are examined when prices are stable and when there is inflation. This approach is carried out, not in terms of input-output relations, as has become customary in multisector models, but rather in terms of vertically (...) integrated sectors. This makes it possible to analyse the economicgrowth process in terms of the structural dynamics of production, of prices and of employment. Remarkable implications are drawn for a surprisingly large number of theoretical problems, which have been under discussion since Adam Smith: from price theory to the theory of rates of profit and the rates of interest; from production theory to the theories of fluctuating growth, ever-changing composition of output, choice of technique and international trade. (shrink)
It might be conjectured that new models of regional economic development, combined with the emerging understanding of multifunctional agriculture, would suggest a new and perhaps more optimistic perspective on the potential of agriculture as an engine of regional economicgrowth. My purpose here is begin the process of surveying the relevant literature, unraveling the arguments and gleaning evidence from the published empirical record, and drawing-out some implications that may help focus our deliberations over the next few days.
This paper investigates the impact of the increase in post‐compulsory schooling and economicgrowth on conviction rates for antisocial behaviour in England. I hypothesise that both educational and employment opportunities should lead to greater reductions in antisocial behaviour when they are combined than when they exist in isolation. I test this hypothesis empirically using three unique sources of area‐level data over time in England. Results show that expansion of post‐compulsory education is important for reductions in antisocial behaviour regardless (...) of the additional impact of economicgrowth. Additionally, economicgrowth itself is found not to be associated with reductions in antisocial behaviour. Two possible explanations for these results are the diploma disease and the negative consequences of inequality. (shrink)
Women are untapped resources for economicgrowth. Female entrepreneurs, like their male counterparts, can boast the economicgrowth of a country. Women owned business creates jobs which results in poverty alleviation and eradication of unemployment. Similarly, women entrepreneurs add diversity to the entrepreneurial mix of a country. Female entrepreneurs intensify competition through creativity and innovation. However, the institutional profile and overall business environment of any country have significant role in women business start-ups. This study attempts to (...) provide a plausible account on how women entrepreneurs increase economic development of a country. It is proposed that women entrepreneurs enhance the national competitiveness level which leads to rapid economicgrowth. Moreover, the relationship between female entrepreneurship and national competiveness level is moderated by overall business environment of the country. To test this framework, data was collected from different sources. The results of regression analysis support the research hypotheses. (shrink)
As the answer to sustainability concerns, green economicgrowth has gradually attracted considerable attention. Notably, the optimization of the institutional environment contributes to green economicgrowth from the perspective of new institutional economics. However, few studies have systematically explained the connection between the institutional environment and green growth. In this study, the institutional environment was divided into three dimensions: governmental, legal, and cultural subenvironments. We adopted econometric models with the effect of every dimension on green (...)growth and empirically analyzed with the generalized method of moments, based on Chinese provincial panel data from the years 2000–2016. The results indicated that there was an inverted U-shaped relationship between China’s institutional environment and its green growth. That is, the institutional environment can initially promote China’s green growth but, if it is not changed, will eventually inhibit it. In addition, the analysis on the three dimensions of the institutional environment highlighted that the role of the cultural subenvironment in green growth is greater than those of the governmental and legal subenvironments. (shrink)
Abstract Supply?side economists claim that a low top marginal income?tax rate accelerates investment, employment, and economicgrowth. But the economic literature cited to support the supply?side hypothesis provides little to no empirical support for it. And a more comprehensive empirical examination of key parameters of U.S. economic performance in the postwar period, undertaken here, shows no association between low top marginal income?tax rates and high real growth in investment, employment, or GDP. By contrast, the analysis (...) yields strong evidence for the economic?growth benefits of a ?demand?side? approach to taxation policy. (shrink)
Military and defense-related procurement has been an important source of technology development across a broad spectrum of industries that account for an important share of United States industrial production. In this book, the author focuses on six general-purpose technologies: interchangeable parts and mass production; military and commercial aircraft; nuclear energy and electric power; computers and semiconductors; the INTERNET; and the space industries. In each of these industries, technology development would have occurred more slowly, and in some case much more slowly (...) or not at all, in the absence of military and defense-related procurement. The book addresses three questions that have significant implications for the future growth of the United States economy. One is whether changes in the structure of the United States economy and of the defense-industrial base preclude military and defense-related procurement from playing the role in the development of advanced technology in the future, comparable to the role it has played in the past. A second question is whether public support for commercially oriented research and development will become an important source of new general-purpose technologies. A third and more disturbing question is whether a major war, or the threat of major war, will be necessary to mobilize the scientific, technical, and financial resources necessary to induce the development of new general-purpose technologies. When the history of United States technology development in the next half century is written, it will focus on incremental rather than revolutionary changes in both military and commercial technology. It will also be written within the context of slower productivity growth than of the relatively high rates that prevailed in the United States in the 1950s and 1960s or during the information technology bubble that began in the early 1990s. These will impose severe constraints on the capacity of the United States to sustain a global-class military posture and a position of leadership in the global economy. (shrink)