This paper analyzes the opposition between the «liberals» and «statists» in the Russian political and economic thought. It demonstrates that the economic liberalization is an absolute prerequisite for the transition to sustainable socio-economic development. Such development must rely on investment activities of the state, which in the current circumstances is a necessary but not sufficient measure for reversing the negative trends. The negative developments can be prevented only through implementation, along with the institutional changes in the economic area that form a strata of economically independent entrepreneursinnovators, of no less profound transformation in political institutions aimed at democratization of public life.
This paper analyzes the opposition between the «liberals» and «statists» in the Russian political and economic thought. It demonstrates that the economic liberalization is an absolute prerequisite for the transition to sustainable socio-economic development. Such development must rely on investment activities of the state, which in the current circumstances is a necessary but not sufficient measure for reversing the negative trends. The negative developments can be prevented only through implementation, along with the institutional changes in the economic area that form a strata of economically independent entrepreneurs-innovators, of no less profound transformation in political institutions aimed at democratization of public life.
In this paper, I explore the politically contested association between the degree of capitalism, captured by measures of economic freedom, and the risk and characteristics of economic crisis. After offering some brief theoretical considerations, I estimate the effects of economic freedom on crisis risk in the post-Cold War period 1993-2010. I further estimate the effects on the duration, peak-to-trough GDP ratios and recovery times of 212 crises across 175 countries within this period. Estimates suggest that economic freedom is robustly associated with smaller peak-to-trough ratios and shorter recovery time. These effects are driven by regulatory components of the economic freedom index.
Economic complexity is relatively a new concept developed in recent years to provide a holistic measure of the production characteristics of countries. Economic complexity not only explains the countries' productive structures but also helps examine the income and growth differences across countries. This study aims to analyze the link between complexity and economic performance for a group of countries for the period between 1981 and 2015 by using the Economic Complexity Index developed by Hidalgo and Hausmann (2009). This thesis contributes to literature in various ways. First, the effect of economic complexity on economic growth and convergence is examined by applying a dynamic panel data methodology. Second, causal relationship between growth and complexity is investigated. Finally, the link between output volatility and economic complexity is also analyzed for a group of countries using a panel vector autoregressive model. The estimation results reveal that economic complexity is an important determinant of economic growth. Furthermore, the findings show that complexity also positively affects the speed of convergence. In addition, it is demonstrated that economic complexity also helps to stabilize an economy through reducing the negative effects of output volatility. These findings suggest that improving the economic complexity contributes greatly to the performance of an economy. Therefore, policies that aim to increase the economic complexity should be one of the major objectives of economies. ; TABLE OF CONTENTS ACCEPTANCE AND APPROVAL i DECLARATION ii YAYIMLAMA VE FİKRİ MÜLKİYET HAKLARI BEYANI iii ETİK BEYAN iv ACKNOWLEDGEMENTS v ABSTRACT vi TURKISH ABSTRACT vii TABLE OF CONTENTS viii TABLES x FIGURES xi ABBREVIATIONS xii INTRODUCTION 1 1. ECONOMIC COMPLEXITY INDEX 5 1.1. MEASUREMENT OF ECONOMIC COMPLEXITY 9 1.2. HOW ECONOMIC COMPLEXITY EVOLVES: A PRODUCT SPACE ANALYSIS 15 2. ECONOMIC COMPLEXITY AND ECONOMIC GROWTH 20 2.1. A BRIEF DISCUSSION OF THE ECONOMIC GROWTH RESEARCH 20 2.1.1. Adam Smith and Classical Views of Economic Growth 20 2.1.2. Keynesian Views of Economic Growth 21 2.1.3. Neo Classical Approach to Growth: Solow Model 22 2.1.4. Endogenous Growth Theories 23 2.1.5. Augmented Solow Model 25 2.1.6. Institutions and Growth 25 2.1.7. International Trade and Growth 27 2.1.8. The Structuralist Literature 28 2.2 THE IMPLICATIONS OF ECONOMIC COMPLEXITY ON ECONOMIC GROWTH 29 2.3. LITERATURE REVIEW OF COMPLEXITY AND GROWTH RELATIONSHIP 35 2.4. EMPIRICAL ANALYSIS OF GROWTH AND COMPLEXITY RELATIONSHIP 41 2.4.1. Data 42 2.4.2. Methodology 47 2.4.3. Estimation Results 50 2.5. CAUSAL ANALYSIS BETWEEN COMPLEXITY AND GROWTH 56 3. ECONOMIC COMPLEXITY AND OUTPUT VOLATILITY 64 3.1. THEORETICAL FRAMEWORK AND THE REVIEW OF THE LITERATURE 65 3.2. DATA 74 3.3. METHODOLOGY 79 3.4. ESTIMATION RESULTS 81 3.4.1 Estimation Results for the Full Sample 81 3.4.2 Estimation Results for Developing Countries 92 CONCLUSION 101 APPENDIX A 105 APPENDIX B 110 APPENDIX C 115 REFERENCES 117 APPENDIX 1 134 APPENDIX 2 135 ; Ekonomik kompleksite, ülkelerin üretim özelliklerinin bütünsel bir ölçümünü sağlamak için son yıllarda geliştirilen yeni bir kavramdır. Ekonomik kompleksite yalnızca ülkelerin üretim yapılarını açıklamakla kalmaz, aynı zamanda ülkeler arasındaki gelir ve büyüme farklılıklarını da açıklamaya yardımcı olur. Bu çalışma, Hidalgo ve Hausmann (2009) tarafından geliştirilen Ekonomik Kompleksite Endeksi'ni kullanarak kompleksite ve ekonomik performans arasındaki bağlantıyı bir grup ülke için 1981 - 2015 yılları arasında analiz etmeyi amaçlamaktadır. Bu tez, literatüre çeşitli şekillerde katkıda bulunmaktadır. İlk olarak, ekonomik kompleksitenin ekonomik büyüme ve yakınsama üzerindeki etkisi dinamik panel veri metodolojisi uygulanarak incelenmiştir. İkinci olarak, büyüme ve kompleksite arasındaki nedensel ilişki araştırılmıştır. Son olarak, çıktı oynaklığı ile ekonomik kompleksite arasındaki ilişki, panel vektör otoregresif model kullanılarak çeşitli ülkeler için analiz edilmiştir. Tahmin sonuçları, ekonomik kompleksitenin, ekonomik büyümenin önemli bir belirleyicisi olduğunu ortaya koymuştur. Ayrıca, bulgular, kompleksitenin, yakınsama hızına pozitif bir etkisi olduğunu da göstermiştir. Ek olarak, ekonomik kompleksitenin, çıktı oynaklığının olumsuz etkilerini azaltarak ekonominin istikrara kavuşmasına yardımcı olduğu da gösterilmiştir. Bu bulgular, kompleksitenin geliştirilmesinin bir ekonominin performansına büyük katkı sağladığını göstermektedir. Bu nedenle, ekonomik kompleksiteyi arttırmayı amaçlayan politikalar, ekonomilerin temel amaçlarından biri olmalıdır.
We extend "economic equivalence" results, like the Ricardian equivalence proposition, to the political sphere where policy is chosen sequentially. We derive conditions under which a policy regime (summarizing admissible policy choices in every period) and a state are "politico-economically equivalent" to another such pair, in the sense that both pairs give rise to the same equilibrium allocation. We apply the conditions in the context of politico-economic theories of government debt as a means to i) deliver intergenerational transfers or ii) smooth tax distortions. We find that certain politico-economic models of social security or variants thereof can be re-interpreted as novel politico-economic theories of debt while other models cannot, possibly explaining the political conflict surrounding social security reform. We also find that in environments with distorting taxes, economic equivalence relations between policies with different levels of debt do not extend to the political sphere.
Abstract: In the article, the concept of scientific paradigm proposed by Thomas Kuhn is associated with the developments of the main rational models of economic behavior's explanation within the framework of the General Equilibria perspective. Immediately, an analysis is made of the main hegemonic theoretical streams of the Economy, identifying them as an epistemological dynamics itself; so that, as Kuhnian paradigms, they undergo transformations due to the concrete facts and hegemonistic dynamics of the different groups of researchers and their ideological perspectives. This is intended to make clear the social nature of economic science and the influence of political-ideological factors on it and its economic policies proposals.
The contention that 'inclusive' institutions are the deep determinants of economic growth remains unsatisfactory. This paper develops an alternative theoretical and empirical case that economic structures are the fundamental cause of economic performance. Economic structures determine the rate of structural learning, affect institutional performance, influence the distribution of income and establish the direction of political transitions, thereby, economic performance. The paper highlights the feedback loops among institutions, political power and economic structures, thus, markets on their own will not ensure growth-enhancing transformations. The workings of this framework are illustrated using a USA case study, and it exposes the structural origins of the financial crisis.
This study focuses on the scenario of the economic development of Bangladesh. The major objective of the study is to examine the economic and non-economic determinants of the economic growth of the country. This study employs the Multivariate OLS regression and GLM technique to explore the influences of those variables to the economic growth and development of the country. The empirical results show that agriculture, industry, and service sector contribution to real GDP are positive where industry and service sectors are statistically significant. The results of the economic determinant model illustrate that the capital, labor forces, imports, and total reserve of the country positively influence the economic development of the country which are significant also. The OLS estimation shows that coefficients of non-economic determinants such as control of corruption and bureaucratic quality are positively significant to influence the economy. The results also present that internal conflict, democratic accountability, and rule and order situation negatively affect the economic growth in Bangladesh. The GLM estimation shows the control of corruption, rule, and order also a positive effect on economic growth. These empirical findings are consistent with the exploratory analysis and practices.
The impact of the economic and financial crisis is still being felt. It started as an acute crisis of the banking system, but then quickly affected the real economy, causing a substantial slump in business investment, household demand and output. The current economic crisis has affected almost all European countries but the countries of the European south and the former eastern socialist republics have suffered the most. The objective in this paper is to quantify economic disparities as expressed by several growth indicators, such as GDP per capita, employment/unemployment rates, labour productivity rates and use them to compare the economic performances before and after the crisis. EU took several measures to recover from the economic crisis. Nevertheless, its ability to adjust to widely diverse national and local contexts that have been impacted differently by the effects of the crisis, and to support the different patterns of economic growth that will result from it, is yet to be seen.
The article analyzes current economic security issues in detail. The essence of economic security is theoretically detailed and economically sound. In order to implement the economic security strategy, it is necessary to develop a mechanism for its execution.
The fundamental problems in economic development in Indonesia are the low level of welfare, unsustainable economic growth, and the inadequate development process of economic sectors. Defense economics is a branch of science that applies economics to national defense issues. Defense economics as a multidisciplinary study discusses resource allocation, income distribution, economic growth, and political stability as applied to topics related to defense. According to the defense economy, the impact of the use of the defense budget on the economy can be viewed from the demand or consumption and supply or production approaches. From the consumption side, the defense can protect national resources against various threats, so that national consumption becomes stable and even increases. This research uses role theory according to Biddle and Thomas, among others, Expectation, Norm, Performance, and Evaluation. The research objective is to provide government input on the importance of the economic role of defense in economic growth in Indonesia. Research using qualitative methods is aimed at understanding social phenomena from the perspective of the participants. The result that has been achieved is that the defense economy plays a role in improving security stability, so it is recommended that the government pay attention to defense-security spending budgeting, in particular the adequacy of its allocation, priority level, and linkages between other components
I had the good fortune to grow up in a wonderful area of Jerusalem, surrounded by a diverse range of people: Rabbi Meizel, the communist Sala Marcel, my widowed Aunt Hannah, and the intellectual Yaacovson. As far as I'm concerned, the opinion of such people is just as authoritative for making social and economic decisions as the opinion of an expert using a model. Part memoir, part crash-course in economic theory, this deeply engaging book by one of the world's foremost economists looks at economic ideas through a personal lens. Together with an introduction to some of the central concepts in modern economic thought, Ariel Rubinstein offers some powerful and entertaining reflections on his childhood, family and career. In doing so, he challenges many of the central tenets of game theory, and sheds light on the role economics can play in society at large. The book is as thought-provoking for seasoned economists as it is enlightening for newcomers to the field. Sylvia Nasar, author of A Beautiful Mind, describes Economics Fables as a "wonderfully inviting introduction to game theory, rich in personalities, history and sense of place. Ariel Rubinstein is not only a brilliant theorist with a knack for lucid exposition, but a gifted storyteller. Students will find the ideas surprisingly accessible. Aspiring scholars, wondering whether a life of the mind is worth pursuing, will find his personal journey of intellectual discovery thrilling".
In this article we argue that social science education needs to convey more than operational mechanisms of society. Especially in socio-economic education, questions of business ethics, i.e. phenomena of economics and society need to be integrated and reflected, decidedly focusing on the moral content of economics. With the introduction of economic citizenship as the ideal economic actor to be the purpose of economic education, this paper proposes that economic education needs to connect economic expertise and moral judgment and should also allude to the necessity of every market action's conditional legitimization by society.We propose to discuss different 'sites' of morality as a heuristic approach to the different areas of economic responsibility. The individual, organizational and political level of responsibility helps to categorize the different moral issues of economic activity and serves as a great pattern to explain economic relations to scholars and students.
The collapse of rapid growth in industrialized countries in the mid-1970s has suggested to scholars that Keynesian economic management is not the ultimate way to run a viable capitalist system. What has emerged from the crisis is the recognition that different capitalist countries have for long had distinctive patterns of development and alternative patterns of economic management. One such form of economic management is neo-corporatism. The pillars of "neo-corporatism" are found in the tri-partite alliance between centralized trade unions, centralized employers' organizations, and the state. These institutions coordinate the levels of investment, wage, and employment in the economy to ensure structural change without high inflation or mass unemployment. Another major form of economic management is the industrial policy approach. The supporters of industrial policy argue that the success of East Asian countries is due to centralized active role of the state in formulating a vigorous economic system which promotes capital accumulation, innovation, and productivity growth. The recent rise of the New Institutional Economics reminds us that the market is not the only nor even the predominant way in which our economic life is organized. As a third pattern of management, it emphasizes that non-market institutions are integral parts of socio-economic life and not unfortunate "rigidities" which have to be eliminated. In this study, I apply the new institutional economics to assess the economic development of South Africa. I critically evaluate the role of markets and states in the development process. I emphasize the need for a democratic compromise to rid South Africa of deep social, racial and ethnic divisions. I argue that a democratic compromise may allow the state space for policy effectiveness. I conclude that a policy mixture of the state, markets and institutions may take South Africa back to higher levels of economic growth.
