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1 – 10 of over 45000Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective…
Abstract
Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective constraints on the ruling elite are seen as a necessary precursor to successful economic growth. However, it is argued in this paper that causality runs the other way. Rapid growth (even with dictatorial regimes) leads to political development and institutional structures which provide a foundation for successful long‐term growth. It will be further argued that the greatest potential for stimulating political development comes as the result of rapid agricultural growth. The institutional constraints arising out of political development create an environment within which the ruling elite become developmental rather than predatory. The cases of English and Japanese industrialization will be used to illustrate these ideas. The relevance of the analyses for today's developing countries is discussed and illustrated with reference to the African experience.
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Keywords
- Acquired immune deficiency syndrome (AIDS)
- contraception
- contraceptive prevalence rate
- demographic dividend
- demographic transitions theory
- hidden unemployment/disguised unemployment
- human immunodeficiency virus (HIV)
- internal migration
- international migration
- low-level equilibrium population trap/Malthusian population trap
- Malthusian perspective
- maternal and child health
- migration
- neo-Malthusian perspective
- population density
- population policies
- proximate determinants
- rural–urban migration
- seasonal migration
- sub-fecundity
- total fertility rate (TFR)
- unemployment rate
- urbanization
There exist long-term fluctuations in the process of capital accumulation. The economic long wave is an essential part of research into non-mainstream western economics. After the…
Abstract
Purpose
There exist long-term fluctuations in the process of capital accumulation. The economic long wave is an essential part of research into non-mainstream western economics. After the Second World War, the capitalist world experienced the fourth long wave of expansion and then entered into a downward phase of the long wave in the 1970s. Regarding to whether a new long wave of expansion took place in the 1980s, left-wing scholars hold different viewpoints. The purpose of this paper is to focus on this issue.
Design/methodology/approach
First, based on the review of the long wave history, this paper discusses three kinds of long wave theories with significant influence and puts forward the theoretical framework of analyzing the long wave of capitalist economy. Next, under the guidance of this theoretical framework and in combination with the actual development and evolution of the capitalist economy, the issue of whether the fifth long wave of the capitalist economy began to emerge in the 1980s is discussed deeply.
Findings
This paper argues that, from the early 1980s to 2007, the US-dominated developed countries experienced a new long wave of expansion driven by the information technology revolution, the adjustment of the neoliberalism system and the economic globalization. However, the financial-economic crisis of 2008–2009 led to a new phase of long wave downswing.
Originality/value
This paper does not agree with the single-factor analysis of the intrinsic formation mechanism of economic long wave and sticks to the multi-factor analysis centering on the fluctuation of accumulation rate. It is pointed out that the evolution of the long wave of capitalist economy depends on the combined influence of technology, institutions and market. The study of the long wave of the economy will help us to correctly understand the historical stage and characteristics of the current world capitalist economy in the long-term fluctuations, so that we can make an appropriate and positive response.
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In the second half of 2003 and the first half of 2004, the Chinese Government adopted a moderately tight macroeconomic policy, which aroused widespread attention from home and…
Abstract
In the second half of 2003 and the first half of 2004, the Chinese Government adopted a moderately tight macroeconomic policy, which aroused widespread attention from home and abroad. This is because China's deepening of reform and openness has led to its increasing economic links with the outside world. Starting from analysing the characteristics of the Chinese economy in 2003, this article discusses the issue of contractive macroeconomic regulation. The article highlights that the growth of the Chinese economy in 2003 has two features. One is that China 's per capita gross domestic product (GDP) exceeded US$1 ,000, which indicates the Chinese economy may possibly maintain the momentum for rapid growth for a fairly long period. The second is that its year-to-year GDP growth reached 9.3 per cent, putting an end to the continual sliding trend of the economy between 1993 and 1999. It also put a stop to the Chinese economy's continual sluggish growth of between 7 and 8 per cent between 1998 and 2002, in the wake of the Asian financial crisis. The Chinese economy has embarked on a fast track in the new round of the economic cycle. However, in the third and fourth quarter of 2003 and the first quarter of 2004, China's GDP growth was as high as 9.6, 9.9 and 9.8 per cent, respectively, sparking a supply crisis in the coal, power, fuel and transportation sectors. As a result, important raw materials, such as steel and cement, faced a supply bottleneck and price inflation pressures intensified, Consequently, the Chinese Government, in a timely move, has adopted a moderately contractive macroeconomic policy to prevent the economy from fluctuating drastically and to avoid serious inflation to ensure a rapid, stable and sustainable economic growth. This is not only conducive to the growth of the country's economy itself, but also favorable for the development of the international trade and foreign investment in China.
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During the Communist Party of China's endeavors over the past century, China has created “two miracles,” namely, large-scale and rapid economic development and long-term social…
Abstract
Purpose
During the Communist Party of China's endeavors over the past century, China has created “two miracles,” namely, large-scale and rapid economic development and long-term social stability.
Design/methodology/approach
The causes for China's achieving the “two miracles” lie in the adherence to the Party's leadership as the political guarantee, the scientific theoretical guidance as the ideological guarantee, the socialist system as well as the national governance system as the institutional guarantee and giving full play of people's creativity under the Party's leadership as the driving force guarantee.
Findings
From a political economy point of view, the theoretical logic behind the creation of the “two miracles” is that the combination of the state capacity and the scaling up of markets under the Party's leadership contributes to the rapid economic development and further the long-term social stability based on the financial foundation laid by rapid economic development. The historical experience of the “Two Miracles” can be summed up as the cultivation of state capacity under the leadership of the Party, the synergy and complementarity between the central government and local governments, the combination of development planning and market mechanisms, and the coordination of selective, functional and inclusive industrial policies.
Originality/value
It is necessary to judge future development trends from a medium and long-term development perspective, further promote the co-evolution of the state and the market, reshape the growth regime for high-quality development, fully tap the potential of domestic demand and create a “people-centered” economic development model so as to continue the “two miracles” and achieve a miracle of high-quality development in the second century.
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Vijayan P. Munusamy, Michael E. Valdez, Kevin D. Lo, Amanda E. K. Budde‐Sung, Cristina M. Suarez and Robert H. Doktor
Two landmark studies of national culture undertaken approximately a quarter century apart present a unique opportunity for a longitudinal analysis of the shift in cultural values…
Abstract
Two landmark studies of national culture undertaken approximately a quarter century apart present a unique opportunity for a longitudinal analysis of the shift in cultural values in work organizations over time. Using comparable data from Hofstede and GLO BE, we investigate the hypothesis that, in the rapidly developing nations of Asia, there has been a convergence of collectivist values in work organizations toward the level of collectivist values found in work organizations in the highly developed nations of the major economies. Findings suggest that collectivist values in rapidly developing nations are converging towards collectivist values of highly developed countries. This convergence is not exclusively due to economic growth or wealth but rather due to the speed of the economic growth. Specifically, periods of prolonged rapid economic transformation appear to also have a transforming effect on national cultural values. Implications of this finding and directions for future research are discussed.
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In the background of the global economic and financial crisis, one hears and reads nothing but excoriation and denunciation of globalization. The purpose of this paper is to…
Abstract
Purpose
In the background of the global economic and financial crisis, one hears and reads nothing but excoriation and denunciation of globalization. The purpose of this paper is to provide an honest and objective analysis of the contemporary global economic scenario, which reveals numerous challenges that globalization engendered in different countries, country groups as well as in the global economy. This paper asserts that globalization has a positive side as well. The trauma of the continuing crisis is vitiating the enormous constructive contribution made by economic and financial globalization in the contemporary period.
Design/methodology/approach
The paper looks at: globalization as a welfare‐enhancing force; some front runners of globalization and particularly the ascent and economic integration of East Asia, China, India, the BRICS, etc. and latecomers to globalization.
Findings
The essential findings of this paper are that country groups like East Asia in the past and China and India at present have benefited immensely from economic and financial globalization. Rapid group in the sub‐group of economies referred to as the emerging‐market economies is made possible by economic and financial globalization. The ascent of these economic groups is changing the contours of the global economy. The newest achievement of economic and financial globalization is a favorable impact over the former non‐market economies and Africa. Both of these are regarded as challenging cases in the past.
Originality/value
Economic and financial globalization has remained a controversial issue. This paper takes a bold and original perspective in focusing on its favorable contributions at a time point when it is being deprecated for causing a great deal of upheaval in the global economy.
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Currently, China’s economy is in the critical phase of transforming economic development patterns and replacing old growth drivers with new ones. Whether it can successfully…
Abstract
Purpose
Currently, China’s economy is in the critical phase of transforming economic development patterns and replacing old growth drivers with new ones. Whether it can successfully overcome the “middle-income trap” has become a significant issue attracting wide attention.
Design/methodology/approach
Driven by underlying digital technologies such as artificial intelligence, blockchain, cloud computing and big data, the fourth industrial revolution featuring the booming digital economy has provided significant opportunities for China’s economy to “overtake” and overcome the “middle-income trap”. The transformation of economic development pattern, the optimization of industrial structure, and the change of growth drivers, brought by the deep integration of digital and real economies are the keys to leaping over the “middle-income trap”.
Findings
From the supply side, the digital economy can improve the quality and efficiency of the supply side and promote the supply-side structural reform and economic growth from the following three aspects: First, promote the quality, efficiency and diversification of the supply system; second, promote networking, opening-up and synergy in the innovation system and third, promote the socialization, modularization and flexibility of production pattern. From the demand side, the digital economy can boost the new drivers of the “troika” of economic growth consisting of consumption, exports and investment by changing the market investment direction, promoting consumption upgrade and fostering export strengths. However, once these two attributes interact with each other, especially when data is combined with capital, the most adhesive factor in the market economy, a series of new social relations will then be produced based on the technical attribute, resulting in significant adjustments in social relations, involving both positive and negative externalities.
Originality/value
To overcome the “middle-income trap”, it is necessary to adapt to the laws of economic evolution and promote a fundamental change in economic growth drivers; boost the high-quality development of the digital economy by strengthening the support role of data in the digital economy; and accelerate digital industrialization and industrial digitalization to realize the integration of digital and real economies.
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Since the reform and opening‐up policy, the long‐term problem of loans became more and more serious when China's economy maintained rapid growth. The purpose of this paper is to…
Abstract
Purpose
Since the reform and opening‐up policy, the long‐term problem of loans became more and more serious when China's economy maintained rapid growth. The purpose of this paper is to explore the profound causes of the medium‐ and long‐term problem of loans and the relationship between it and economic growth.
Design/methodology/approach
Using panel data for 28 provinces and cities of China during 1994‐2005, this paper investigates the determinants on the maturity of bank credit using threshold panel data of Hansen. In addition, using dynamics panel data, this paper investigates the effects of the maturity structure of bank credit on economic growth.
Findings
The drop of bank industry concentration tends to increase the supply of long‐term loans. The raise of economic growth and the increase of industrialization degree promote the demand of long‐term loans, significantly. Furthermore, the threshold effects of inflation exist. When the initial inflation is lower than 3.9 percent, the raise of inflation can increase the supply of long‐term loans. When the initial inflation is higher than 3.9 percent, the raise of inflation can decrease the supply of long‐term loans. The increase in the supply of long‐term loans can promote the economic growth.
Originality/value
The paper has two innovations: first, when studying the determinants on the maturity of bank credit, using the threshold panel approach takes account of the nonlinear adjustment of inflation; second, including the maturity of bank credit into the realm of financial development studies the relationship between this and economic growth.
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The purpose of this paper is to examine whether surge in foreign direct investment (FDI) inflows leads to surge in economic growth in 52 developing countries for the period…
Abstract
Purpose
The purpose of this paper is to examine whether surge in foreign direct investment (FDI) inflows leads to surge in economic growth in 52 developing countries for the period 1990-2014.
Design/methodology/approach
The author used a threshold approach to identify surge incidences in gross domestic product (GDP) per capita growth rates and FDI inflows (measured as percentage of GDP) for each country included in the sample. Three different criteria are used to identify surge instances. As a preliminary analysis the author used the probit and complementary log–log regression methods to estimate the likelihood of growth surge occurrence. To correct the potential endogeneity problem the author jointly estimated the growth surge and FDI surge equations using the recursive bivariate probit (RBP) regression.
Findings
The author found that East Asia and the Pacific region has highest rate of growth surge incidences followed by South Asia. The results suggest that surge in FDI inflows significantly increases the likelihood of growth surge. The finding is robust to alternative surge definitions and methods of estimation.
Practical implications
The analysis reveals that inbound FDI flow is a critical driver of economic growth in developing countries. Large FDI inflows matters for achieving rapid economic growth. Therefore developing countries should adopt favourable policies to attract more FDI. Policymakers should focus on improving the investment climate of the country to boost domestic investment and to attract larger amount of FDI into the economy.
Originality/value
To the best of the author’s knowledge this is the first study to examine whether surge in FDI inflows stimulates surge in economic growth in developing countries. The analysis reveals that FDI surge is a robust predictor of rapid economic growth in developing countries.
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