Transitional Dynamics and Economic Growth in Developing by Thomas Steger

By Thomas Steger

Four stylised evidence of mixture monetary development are arrange at first. the expansion method is interpreted to symbolize transitional dynamics instead of balanced-growth equilibria. in contrast historical past, the elemental significance of subsistence intake is comprehensively analysed. for this reason, the which means of the productive-consumption speculation for the intertemporal intake trade-off and the expansion strategy is investigated. eventually, the method of development is analysed empirically via cross-sectional conditional convergence regressions with endogenous keep watch over variables.

Show description

Read or Download Transitional Dynamics and Economic Growth in Developing Countries PDF

Similar macroeconomics books

India: macroeconomics and political economy, 1964-1991

This quantity is part of a examine venture initiated and financed by way of the area financial institution entitled "Macroeconomic guidelines, quandary, and progress within the lengthy Run," which concerned reports of the macroeconomic histories of eighteen international locations as they tried to take care of monetary balance within the face of overseas cost, rate of interest, and insist shocks or household crises within the different types of funding books and similar budgetary difficulties.

Transitional Dynamics and Economic Growth in Developing Countries

4 stylised evidence of combination financial progress are organize at the beginning. the expansion procedure is interpreted to symbolize transitional dynamics instead of balanced-growth equilibria. by contrast heritage, the basic significance of subsistence intake is comprehensively analysed. thus, the that means of the productive-consumption speculation for the intertemporal intake trade-off and the expansion strategy is investigated.

Global Cooperation Among G20 Countries: Responding to the Crisis and Restoring Growth

On the outbreak of the worldwide monetary drawback, 2008, the G20 used to be generally said as supporting hinder an excellent extra severe decline within the worldwide financial system. It helped to calm the panic in monetary markets and articulate a collection of attainable coverage concepts to revive international balance and progress. besides the fact that, because the dual-track restoration set in, coverage concepts for complex economies and EMEs diverged.

Additional info for Transitional Dynamics and Economic Growth in Developing Countries

Sample text

Fig. 7 (b) displays a negative relation between the rate of convergence and the elasticity of the marginal utility. e. a rising IES, increases the willingness to save. The saving rate decreases causing the growth rate of income to decrease as well. As a result, growth increases, the time span for transition shortens, and the rate of convergence rises. 4 Extensions of the basic linear growth model The linear growth model discussed in the previous section is able to reproduce the positive correlation between the saving rate and the level of per capita income [stylised fact (2)] as well as 6-divergence [stylised fact (3)].

3 Convergence considerations Within the context of convergence analyses as a branch of growth theory, two questions arise which are of fundamental interest for the process of growth and development: (i) Does the model imply convergence or divergence in the levels of per capita income between rich and poor economies? For poor countries to catch up with rich countries, it is necessary that the growth rate is higher compared to rich countries. This is the concept of absolute 6-convergence. e. poor countries grow faster on average than rich countries.

The lower poverty line 51 Sharif (1986, p. 6 for the income elasticity of 'declared subsistence' with respect to per capita income. This is an empirical indication for the possible endogeneity of the subsistence level of consumption. 52 Absolute poverty refers to material needs irrespective of distributional issues, while relative poverty refers to income inequality. g. Ravallion, 1992). 27). 24 Economic growth with subsistence consumption amounts to $275, while the upper poverty line amounts to $370 in 1985 PPP prices (World Bank, 1990, p.

Download PDF sample

Rated 4.70 of 5 – based on 31 votes