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 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)
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)
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)
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)
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)
The phenomenon of global warming suggests that today’s dominant economic paradigm is bumping up against physical and biological limits. As will likely become ever clearer in coming decades, endlessly growing populations, consumption and economic activity are incompatible with human happiness, the flourishing of other species, and maintaining the basic ecosystem services on which these depend. The world’s peoples need to shift to an economic paradigm focused on providing sufficient resources for a limited number of people, rather than (...) ever more resources for ever more people. For at least 2500 years, philosophers East and West, religious and secular, have claimed that wealth is not the key to happiness and that goodness is better than greatness. This talk argues that philosophers should redouble these efforts and join environmentalists in working to convince our societies to grow up and develop nobler, less materialistic, more sustainable goals and definitions of human flourishing as the necessary and the only alternative to trying to shoehorn a few more decades of economicgrowth into already overstressed ecological systems. (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)
The global coronavirus pandemic has had an impact on the socio-economic development of the world. The article assesses the economicgrowth in the EAEU member States for 2020. Specific features of the development of the Union's economies are defined. Recommendations for increasing the rate of economicgrowth are formulated.
The study aims to measure the link between CSR and economicgrowth. This study investigates whether CSR expenses shown by the banks are contributing to the sustainability of an emerging economy like India. For this study, CSR spending of 21 commercial banks, on nine development areas of the Indian economy, the human development index of India, and its indicators along with the growth rate of GDP of India and state-wise GDP for the year 2014-2015 to 2017-2018 have (...) been taken as secondary data. The research techniques used are the case analysis method, correlation, and descriptive analysis. The study highlights that CSR activities are more of a myth and a far-reaching possibility in developing nations like India, where most institutions are engrossed in such activities to gain laurels and secure investors from the globe. (shrink)
Comparison of economicgrowth in mixed economy and socialist economic systems - reviews economic theories thereon, provides a framework for the economic analysis of acceleration of growth under different initial conditions and for introducing political choice into the economic planning process, includes work on the selection of investment projects in a planning context, as implemented in Poland, and emphasizes political aspects of economic problems.
Why pursue economicgrowth? For poor countries this is an easy question to answer, but it is more difficult for rich ones. Some of the world's greatest philosophers and economists – such as John Stuart Mill, John Maynard Keynes, and John Rawls – thought that, once a certain material standard of well-being has been achieved, economicgrowth should stop. I argue the opposite in this article. We always have reason to pursue economicgrowth. My (...) argument is indirect. I shall not argue that economicgrowth itself is always better. Rather, I shall argue that stopping growth requires morally objectionable actions. Economicgrowth tends to occur naturally if certain underlying conditions are in place. We have moral reasons to insist on these conditions independent their effect on growth, however. Halting growth requires that we alter these conditions, but we ought not do this. (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)
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)
Must we always pursue economicgrowth? Kogelmann answers yes. Not only should poor countries pursue growth, but rich countries should as well. Kogelmann aims to provide a wealth-insensitive argument – one demonstrating all countries should pursue growth regardless of their wealth. His central argument – the no halting growth (NHG) argument – says no country experiencing growth should stop it, because doing so requires undermining the conditions causing it and those conditions are independently morally (...) desirable, so they should not be undermined. For countries not growing, he may argue that they have an obligation to implement the conditions that cause growth because they are independently morally desirable. Call this the implementation argument. I contend that neither argument is wealth-insensitive as each fails to establish an obligation to pursue growth. I attempt to diagnose how this could be and propose that it is a product of attempting to answer three questions about growth simultaneously. (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)
Instead of relying on the usual price elasticity technique, this book combines economic and engineering analysis to study economicgrowth and energy demands to the year 2000. It asserts that future energy demand will be determined by two basic factors--the gross national product and the efficiency with which energy is used to produce this output in the household, commercial, industrial, and transport sectors of the economy.Labor hours multiplied by a productivity factor results in the GNP. This study (...) predicts that, in the long run, productivity in the United States will recover most of the sharp losses registered in the past five years. The study points out the decelerating population growth, the higher number of women in the labor force, and new investments as having an influence on this situation.After projecting the size and composition of each of the four energy consuming sectors that account for the total GNP. Energy and EconomicGrowth estimates efficiency improvements for each. It shows, for example, that higher levels of thermal insulation will reduce sharply energy needs for household heating and cooling. Similarly, the study notes that improvements in energy consumption per dollar of output can be made for each of the energy intensive manufacturing industries, nothing that although the savings in energy are significant, none is a consequence of pushing improvements to known technological limits. Finally, the book establishes the price elasticities that are inherent in the calculated energy requirements and checks these against elasticity estimates made by other researchers. (shrink)
The concept of social entrepreneurship emerged as a significant factor that contributes toward public welfare and prosperity. Recent studies showed that social entrepreneurship influences the economicgrowth and sustainability of the state. Therefore, the underlying aim of this study was to investigate the impact of social entrepreneurship on sustainable economicgrowth and value creation. This study also undertook to observe the mediating role of innovation in the relationship between social entrepreneurship and sustainable economicgrowth (...) and between social entrepreneurship and value creation. A questionnaire technique was adopted to obtain data from 343 tour operators in China. The Smart-PLS software was used to analyze the data through the aid of a structural equation modelling technique. The results revealed that social entrepreneurship has an effect on sustainable economicgrowth and value creation. The results also demonstrated that innovation has an effect on sustainable economicgrowth and value creation. Moreover, it was also observed that innovation mediated the relationship between social entrepreneurship and sustainable economicgrowth and between social entrepreneurship and value creation. Theoretically, this study made a valuable contribution by examining the impact of social entrepreneurship on sustainable economicgrowth and value creation and innovation as a mediator. In terms of practical implications, this study would certainly aid the policymakers to devise policies and strategies aim to encourage and promote social entrepreneurship. Moreover, future studies can introduce other mediating and moderating variables in order to gain a deeper insight into the phenomenon. (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)
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.
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)
By a "developed" economy, people roughly mean ones with a high, persistently-growing per-captia income which is not simply based on resource extraction (i.e., oil) or remittances or rentierism — an industrial (or, if there is such a thing, post-industrial) economy which makes most of its participants reasonably and increasingly prosperous. While there are of course differences among them --- the United States is not New Zealand, which is not Belgium, which is not Finland, which is not Japan --- they are (...) all more similar to each other than they are to the vast variety of "undeveloped", "under-developed", or (most optimistically) "developing" economies across the world. (Some people refer to the developed countries as "the North" and the others as "the South"; this drives me up the wall, if only from looking at where China and Australia are on the map.) Economies in the first category tend to stay there; so, sadly, do countries in the second. Development economics is the sub-discipline of economics which attempts to study how economies which have not attained this happy condition can be made to do so, and the factors which hold others back. (shrink)
Are societies required to pursue continual economicgrowth as a matter of justice? In “The Value of EconomicGrowth”, Julie Rose considers three arguments in favor of the need for continual economicgrowth, each of which revolves around the instrumental value of economicgrowth for promoting an important good that is needed for a just society. In each case, Rose argues that there are mechanisms other than economicgrowth that could (...) allow a society to deliver the relevant goods, and thus meet the demands of justice with respect to those goods. I raise a set of issues for Rose’s argument that put pressure on the normative significance of her discussion. At the heart of these issues are ones about which possibilities Rose considers and which idealizations she makes. These issues tie into more general questions about the aims and methodology of normative work in social/political philosophy. Thus, in addition to being a contribution to the debate over the politics of economicgrowth, this paper can be understood partly as a case study in how reflection on these kinds of issues – ones about modality, idealization, and methodology – can matter to how we evaluate specific arguments in social/political philosophy. (shrink)