Discusses limitations and weaknesses of the existing Soviet-based system in organizational structure, administrative institutions, and human resources; recommendations.
How Confucian theories of a benevolent, authoritarian, hierarchical government have facilitated assimilation of capitalist business methods and promoted rapid economic development; Southeast Asia. China, Japan, Vietnam, Republic of Korea, Taiwan, Singapore, Hong Kong, and the Democratic People's Republic of Korea.
This paper empirically assesses the effect of the determinants of Internet use, using several samples of both developed and developing countries. Based on a sample of 23 low-income economies in 2015, we find that Internet use depends upon computer access. Using a sample of 38 lower middle-income countries we find that Internet use depends upon Internet quality and Internet affordability. Using a sample of 41 upper middle-income countries, we find that computer access and Internet affordability influence Internet use. From a sample of 45 high-income countries, we are able to show that computer access, Internet quality, and affordability do affect Internet use. Using a sample of thirty oecd countries, we find that Internet use depends upon computer access and Internet quality. When a sample of 150 developing and developed countries is used, results show that Internet use is influenced by computer access, Internet quality, Internet affordability, and Internet application.
PurposeThe purpose of this paper is to empirically test a more comprehensive model of economic growth using a sample of 28 lower middle-income developing countries.Design/methodology/approachThe authors modify the conventional neoclassical growth model to account for the impact of the increase in the number of people working relative to the total population and that of the increase in the value added per worker over time. The authors then extend this model by incorporating the role of trade, government consumption, and human capital in output growth.FindingsRegression results show that over three quarters of cross-lower middle-income country variations in per capita GDP growth rate can be explained by per capita growth in the share of public expenditures on education in the GDP, per capita growth in the share of government consumption in the GDP, per capita growth in the share of imports in the GDP, per capita growth in the share of manufactured exports in the GDP (not of that of total exports in the GDP), and the growth of the working population relative to the total population.Practical implicationsStatistical results of such empirical examination will assist governments in these countries identify policy fundamentals that are essential for economic growth.Originality/valueTo address the simultaneity bias, the authors develop a simultaneous equations model and are able to show that such model is more robust and helps explains cross-country variations in per capita GDP growth over the 2000-2014 period.
Purpose The purpose of this paper is to empirically assess the effect of the factors contributing to the recovery from this crisis in terms of national GDP growth among the G7, Asian7, and Latin American7 countries.
Design/methodology/approach The author uses a multivariate regression analysis of the determinants of the global financial crisis recovery.
Findings Based on data from 21 developed and developing emerging market economies the author found that good macroeconomic fundamentals together with more open financial policy, financial liberalization, financial depth, domestic performance, and favored global conditions do linearly influence national GDP growth. Over 85 percent of cross-country variations in GDP growth during the recovery phase of the global financial crisis can be explained by its linear dependency on pre-crisis national GDP growth, financial liberalization, financial depth, domestic performance, as well as interaction terms between various explanatory variables. Cross-country differences in national GDP growth also linearly depend on macroprudence and on favorable global conditions.
Originality/value Results of such empirical examination may enable governments in developing countries devise resilience strategies that may serve as powerful tools for dealing with future global financial crises.
Esfahani ( 1991 ) shows that the statistically significant correlation between export promotion and economic growth in semi-industrialized countries (SICs) has been mainly attributable to the role of exports in reducing import 'shortages', which have impeded output growth in these countries. As a result, export-promotion policies as a superior development strategy in SICs play an important role in those that cannot secure sufficient foreign aid or investment. Esfahani ( 1991 ) also develops a simultaneous equations model to address the simultaneity bias between GDP and export growth rates. In this article we extend the model developed by Esfahani ( 1991 ) by incorporating the contribution of government consumption to output growth and test it using a sample of 27 upper-middle income economies.
PurposeThe aim of this paper is to extend a theoretical model due to Ljungqvist and data from a sample of 19 developing economies to empirically test it.Design/methodology/approachData for all variables are from the 2005 Human Development Report and the 2006 World Development Report. The author applies the least‐squares estimation technique in a multivariate linear regression.FindingsBased on data from the World Bank and the United Nations Development Programme, the paper uses a sample of 19 developing economies and finds that cross‐country variations in income/consumption inequality may be explained by inequality of investment in human capital as measured by inequalities in child health as well as inequality in education and by inequality in the distribution of land as measured by the land Gini index.Practical implicationsAssuming a population consisting of skilled laborers, unskilled laborers, educators/health care personnel, and farmers, the paper shows that starting from an initial distribution of assets and in the absence of a perfect capital market along with human capital exhibiting increasing returns it is possible to have persistent inequality in the distribution of income or consumption. Regression results also are consistent with the theoretical implication of the model as the extent of inequality in land distribution and in access to education as well as inequalities in child health do linearly influence income or consumption inequality as measured by the ratio of the share of income or consumption accounted for by the richest quintile to that of the poorest quintile. As a result, if governments in developing countries aim to reduce inequality, they need to implement programs designed to reduce inequalities in child health by allowing children from the poorest of the poor to get fully immunized, which in turn would lead to a reduction in infant and child mortality and in education by providing low‐income families with means so that their children have better access to education. Government land policies, on the other hand, that succeed in reducing inequality in land distribution in developing countries, may be beneficial in terms of lessening income/expenditure inequality. Finally, while the present model does not test for the impact that improving capital markets would have, it stands to reason that improving capital markets could also have an impact on decreasing inequality.Originality/valueIn this paper the author uses a model due to Ljungqvist to show that individuals are relatively wealthy because they either own a fixed input such as land or they are able to invest in human capital, which in turn allow them to earn sufficient rent or labor income to remain wealthy. On the other hand, poor people either do not own land or are not capable of investing in human capital, and, as a result, earn low incomes and remain poor. This joint causation of factor endowment or human capital investment and income helps explain income distribution. Using data from the United Nations Development Programme and the World Bank for a sample of 19 developing economies, it is found that cross‐country variations in income/consumption inequality may be explained by inequality of investment in human capital as measured by inequalities in child health as well as well as inequality in education and by inequality in the distribution of land as measured by the land Gini index. These results will help governments in developing countries identify areas that need to be improved upon in order to reduce income/consumption inequality.
PurposeThis article investigates the impact of the growth of the share of various government expenditure programmes in the GDP on economic growth in developing countries while taking into consideration the major issue of potential simultaneity.FindingsBased on data from the World Bank and using two samples of 28 developing economies, we find that per capita GDP growth is dependent upon the growth of per capita public health expenditure in the GDP, growth of per capita public spending on education in the GDP, population growth, growth of the share of total health expenditure in the GDP and the share of gross capital formation in the GDP.Practical implicationsStatistical results of such empirical examination will assist policy-makers in developing countries prioritize their government expenditure in order to stimulate economic growth.Methodology/approachData for all variables are from the World Development Indicators (2008 and 2010). We specify and estimate a simultaneous equations model which consists of two government expenditure growth equations and a GDP growth equation. We observe that some coefficient estimates do not have the expected sign due to possible collinearity among some independent variables.
AbstractBased on data from the World Bank and the Global Competitiveness Report 2008-2009, this study uses a sample of 97 developing economies and finds that institutions do affect development, unlike results of the previous studies by Mc Arthur and Sachs (2001) and Sachs (2003). The observation is that the coefficient estimate of half of the explanatory variables does not have the anticipated sign due to severe multicollinearity among them. Regression results are more robust when interaction terms are included. This empirical examination may assist governments in those countries in identifying institutional areas that need to be improved upon in order to stimulate economic development.
AbstractBased on data from the World Bank and the United Nations Development Programme, a sample of 29 developing economies was used. The finding is that cross-country changes in human development may be explained by per capita GDP growth, the length of land boundaries, the percentage of children under age 5 whose weight is more than two standard deviations below the median for the international reference population ages 0-59 months, the under-5 mortality rate, the ratio of girls to boys in primary and secondary education, the prevalence of HIV, the national average distance to the capital city, and the income share held by the lowest 10% of population. As observed, the coefficient estimates of three independent variables do not have the anticipated sign due to the severe degree of multicollinearity among statistically significant explanatory variables. Data for all variables are from the 2010 World Development Indicators and the 2009 Human Development Report. The least-squares estimation technique in a multivariate linear regression was applied. As noted, the severe degree of multicollinearity among explanatory variables may have caused their coefficient estimates to have the wrong sign.
This paper examines the effect of income distribution on growth in developing countries. Based on data from the World Bank and the United Nations Development Programme, we use a sample of twenty-eight developing economies and find that income distribution does not affect growth in these countries, unlike the results of previous studies by Alesina and Rodrik (1994). Neither do we find that the level of democracy in a country has a statistically significant impact on growth. We observe that the coefficient estimate of one independent variable does not have the anticipated sign due to the severe degree of multicollinearity among statistically significant explanatory variables. Regression results show that the total fertility rate, the initial level of per capita GDP, and the ratio of female to male literacy rate, taken together, do linearly influence growth in developing economies. Statistical results of such empirical examination will assist governments in those countries identify areas that need to be improved upon in order to stimulate economic development. Data for all variables are from the 1978 World Development Report, the World in 2007, and the 1999, 2000, and 2007/08 Human Development Reports. We apply the least-squares estimation technique in a multivariate linear regression. We also note that the severe degree of multicollinearity among explanatory variables may have caused their coefficient estimates to have the wrong sign. ; peer-reviewed
This article examines the impact of factor mobility and migration on per capita gross domestic product (GDP) growth and the welfare of the poorest quintile in developing countries. Based on data from the World Bank and using a sample of 46 developing economies, we found that the per capita GDP growth is linearly dependent upon net migration, infrastructure investment, the level of educational attainment, the percentage of rural and urban population with sanitation and water services, the possible effect of improved health and investment. The regression results also show that the share of the poorest quintile in national consumption or income is a linear function of the level of urbanisation, the level of educational attainment, infrastructure investment and investment. These results could assist policy makers in developing countries identify areas in which budgets need to be reallocated to stimulate economic growth.
PurposeThe purpose of this paper is to estimate the determinants of rural and national poverty, of income distribution, and of agricultural growth in developing countries.Design/methodology/approachData for all variables are from the 2008 World Development Report. The author applies the least‐squares estimation technique in a multivariate linear regression.FindingsIt is found, from different size samples, that: the percentage of the rural population living below the national rural poverty line in a developing country is dependent upon the logarithm of per capita purchasing power parity gross national income and the region in which it is located; it linearly depends on its per capita agriculture value added and its geographic location; agriculture value added growth linearly depends on the share of women in the agricultural labor force, whether the developing country is agriculture‐based, and whether it is located in Europe or Central Asia; and agricultural productivity linearly depends on the amount of arable and permanent cropland per agricultural person, the share of women in the agricultural labor force, and the share of agricultural employment in total employment.Originality/valueStatistical results in this paper will assist governments in developing countries assess the magnitude of agricultural policy variables in an effort to use agriculture as an engine for economic development.
AbstractThis paper examines the effect of income distribution on growth in developing countries. Based on data from the World Bank and the United Nations Development Program and the use of a sample of twenty-eight developing economies, this study finds that income distribution does not affect growth in these countries, unlike the results of previous studies conducted by Alesina and Rodrik (1991, 1994). Neither does this study find that the level of democracy in a country has a statistically significant impact on growth. Observations of findings show that the coefficient estimate of one independent variable does not have the anticipated sign due to the severe degree of multicollinearity among statistically significant explanatory variables. Regression results show that the total fertility rate, the initial level of per capita GDP, and the ratio of female to male literacy rate, taken together, linearly influence growth in developing economies. The least-squares estimation technique is applied in a multivariate linear regression. Data for all variables are from the 1978 World Development Report, the World in 2007, and the 1999, 2000, and 2007/08 Human Development Reports.
PurposeThis paper aims to examine the impact of the components of human capital on the extent of poverty and income distribution in developing countries.Design/methodology/approachData for all variables are from the World Development Report, 2006 and 2007. The least‐squares estimation technique in a multivariate linear regression is applied. It is noted that the introduction of interaction terms between income and the components of human capital yields better statistical results, as pointed out in the economic development literature.FindingsBased on data from the World Bank and using a sample of 40 developing economies, it is found that the fraction of the population below the poverty line is linearly dependent upon gender parity ratio in primary and secondary schools, the prevalence of child malnutrition, per capita purchasing power parity gross national income, the maternal mortality rate, and the percentage of births attended by skilled health staff. Using another sample of 35 developing countries, it is found that income inequality linearly depends on the same explanatory variables plus the infant mortality rate and the primary school completion rate.Practical implicationsStatistical results of such empirical examination will assist governments in those countries identify areas that need to be improved upon in order to alleviate poverty and improve the distribution of income.Originality/valueThis paper provides useful information on the impact of the components of human capital on the extent of poverty and income distribution in developing countries.