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The authors analyse a growth model to explain how economic fluctuations are primarily driven by productive capacities (i.e. capacity utilization driven by innovations and know-how) and productive inefficiencies.

This study’s methodology consists of the combination of the economic growth model, à la Solow–Swan, with a sigmoidal production function (in capital), which may explain growth, poverty traps or fluctuations depending on the relative levels of inefficiencies, productive capacities or lack of know-how.

The authors show that economies may experience economic growth, poverty traps and/or fluctuations (i.e. cycles). Economic growth is reached when an economy experiences both a low level of inefficiencies and a high level of productive capacities while an economy falls into a poverty trap when there is a high level of inefficiencies in production. Instead, the economy gets in cycles when there is a large level of the lack of know-how and low levels of productive capacity.

The authors conclude that more capital per capita (greater savings and investment) and greater productive capacity (with less lack of know-how) are the economic policy keys for an economy being on the path of sustained economic growth.

In this paper, the authors study the long-run determinants of total factor productivity (TFP) in three major European economies over the period 1983–2017, namely Germany, France and Italy.

The authors focus on the capital misallocation effects, scale effects and labor misallocation effects. To this end, the authors study how real interest rate shocks, real exchange rate shocks, real wage shocks and changes in labor regulation affected TFP in major European countries over the last decades. The authors employ a theoretical and an empirical model to investigate the issue. The empirical results are obtained using a VAR model for estimation.

A stripped-down model of labor market in open economy with technology progress allows to identify the relevant variables affecting TFP. On the empirical ground, the authors find a positive relationship between TFP and real interest rate in the long run. Importantly, the authors detect a positive relationship between TFP and real exchange rate. Further, the authors show that the TFP can respond positively to a stricter labor market regulation and to a higher real compensation per employee. The results provide support to the idea that TFP has a positive relation with prices in the long run, while it may be biased along the cycle because of price rigidity.

The present model is stylized and may not capture all of the details of reality. The analysis should be extended to a larger number of countries. Technology progress could be proxied using different variables, as the R&D expenditure or the number of patents. Micro data, for specific sectors and industries, can improve the quality of the empirical investigation.

Mainly the authors find that TFP has a positive relationship with price changes in the long run, while it may be biased along the cycle because of price stickiness. Capital misallocation and labor misallocation can negatively affect TFP. Thus, the observed divergences in European TFP can be traced back to the misallocation effects attributable to the decrease of real interest rate and real wages, together with the raising labor flexibility. Mainly, the authors detect a positive long-run relationship between TFP and real exchange rate. This outcome strengthens the supply-side view of the relationship between productivity and real exchange rate.

The authors believe that the present setup can be helpful to reflect critically on the nodes at the core of the productivity slowdown and asymmetries in the eurozone. The aim is to implement renewed policies in order to favor economic growth, convergence and stability in the euro area.

This research addresses the issue of asymmetries among European economies by focusing on the role played by real prices in the long run. Traditionally, the dynamics of TFP have been attributed only to technological components, human capital and knowledge. This work shows that the dynamics of prices such as the real interest rate, the real exchange rate and the real wage can also influence the technological process by pushing the production system toward choices that are not always optimal for economic growth. An interesting result of this research concerns the positive relationship between real exchange rates and TFP in the long term, evidence of an important supply-side effect on the technological process.

The purpose of this paper is to study the long‐run relationship between economic growth and income inequality in China during the pre‐reform (1952‐1978) and post‐reform (1979‐2007) periods, this will be done via cointegration analysis.

The aim of this paper is to offer a proper answer to the issue of the inequality‐growth nexus by using a cointegrated VAR‐setting approach, in this way, the study can cope and avoid the problems of parameter heterogeneneity, omitted variable bias and endogeneity, from which the model of macroeconometric analysis suffers.

The cointegration analysis shows that, for both periods the relationship is positive and the inequality‐growth elasticity has grown in the second period. In addition, a more robust test of Granger‐causality suggested by Toda and Yamamoto indicates that whereas in the first period there is unidirectional causality from inequality to growth, there is no directional causality in the second period.

The pre‐reform period going from 1952 to 1978 is characterized by the adoption and implementation of a Soviet‐type economy. The economy showed a modest annual economic growth rate of 2.33 percent and very low levels of inequality, with an average Gini coefficient of 0.27. The post‐reform period tried to combine central planning with market‐oriented reforms to increase productivity. In fact, the economy has grown at an annual growth rate of 7.07 percent since 1979 and also the inequality with an average Gini coefficient of 0.33.

The paper studies the relationship between income inequality and economic growth in China during the pre and post reform periods. A significant and positive long‐run relationship between inequality and economic growth in both periods was found. The inequality‐growth elasticity is greater in the post‐reform than the pre‐reform period. Using a more robust Granger causality test the authors find a unidirectional predetermination between the variables for the whole period and for the pre‐reform period. However, there is not causality in the post‐reform period. Except the urban‐rural disparity which explains the unidirectional causality from inequality to growth, pre‐reform China was basically an egalitarian society. In the pre‐reform period, the low inequality was identified as a strain on economic growth. However, the reform period has seen remarkable growth. Although regional inequality and the rural‐urban gap declined from the late 1970s to the mid‐1980s, both have increased rather dramatically since the mid‐1980s.

The purpose of this paper is to estimate the long‐run relationships and threshold effects between inflation and economic growth in Mexico.

The paper shows the existence of such relationship in a cointegrated vector on economic growth (log of real gross domestic product (GDP)) and inflation rate finding a corresponding elasticity significantly negative. Moreover, the causal relationship between these two series is studied using a more robust Granger causality test, without finding any directional causality between them.

The estimated threshold model suggests 9 percent as the threshold level (i.e. structural break point) of inflation above which inflation significantly slows the Mexican economic growth.

This paper uses the cointegration technique, and finds a significant and negative long‐run relationship between inflation and economic growth for the Mexican economy. In addition, it is found that inflation is weakly exogenous. In the period 1970‐2007 real GDP was elastic with respect to inflation, and therefore, considering the estimated coefficient, an increase of 1 percent on inflation produces a decrease of 1.5 percent on real GDP. Since, for most of the period under consideration Mexico experienced inflation rates higher than 10 percent, this result is consistent with most of the research suggesting that high levels of inflation produce a negative effect on economic growth.

The analysis could be useful for policymakers in providing some clue in setting an optimal inflation target. For instance, the Mexican Central Bank could apply an expansionary monetary policy for supporting economic growth until the inflation rate does not exceed the threshold level. In fact, the threshold analysis suggests that if the inflation rate exceeds 9 percent, then Mexico's current favorable economic performance might be jeopardized.

Specifically, this paper focuses on two questions: is there any long‐run relationship between economic growth and inflation in Mexico? Is there a statistically significant threshold level of inflation above which inflation affects growth differently than at lower inflation rates in Mexico? Motivated by these questions, this present paper first examines cointegration techniques and then, threshold estimations.

Over the past few years, several scholars have focused on green innovation in the agri-food industry. In line with this research stream, the purpose of this paper is to cover some unexplored areas regarding if stakeholder pressures have a positive influence on family engagement to implement green innovation practices and socially responsible practices.

By adopting a qualitative research methodology, mainly based on a multiple case study, this paper seeks to cover some unexplored areas regarding the understanding the relationship between stakeholders, family involvement and business practices in green innovation. The authors analyze eight cases from five Latin American countries selected, all are family firms focused on agricultural production.

Latin American family firms from agri-food industry, have a positive influence from internal/external stakeholder to implement green innovation initiatives and socially responsible practices, that result in short/long term business practices.

The originality of the proposed conceptual model stems from the need to overcome the previous theoretical models based on the stakeholder theory, which deals separately with internal/external influence over the firm.