1,721,189 research outputs found
Technology Change: Sources and Impediments
Get PDFThere is little doubt that technology change, both in terms of its process and quality dimensions, represents the principal driving force to explain comparative economic performance at both micro and macro levels. This paper examines the sources of technology change and the impediments to the full realization of its opportunities, both abstractly and in the context of a comparison among six typologically diverse developing countries. Among the external sources, we examine the roles of trade, foreign patents and FDI; among the internal sources we examine the roles of investment, domestic R&D, domestic patents, S&T personnel and secondary education alternatives. Among impediments, we analyze certain public and private policy frameworks which tend to impede the realization of technological opportunities. We detect some reasons for the better TFP performance of the East Asian in comparison with the Latin American countries.Development, Technological Change
Traditional Aid is Passé … And there is not enough of it
No full textGustav Ranis discusses the seemingly contradictory proposition that traditional aid is no longer valid and yet we do not have enough aid. He looks at this statement by dividing recipient countries into three groups: the poor countries of Africa, South Asia and some pockets of Central and South America; the middle-income developing countries, including most of South-East Asia; the transition countries of Eastern Europe and most of Latin America and the emerging market economies including Singapore, Taiwan, Chile and Mexico. Development (1999) 42, 77–82. doi:10.1057/palgrave.development.1110064
The Evolution of Development Thinking: Theory and Policy
Get PDFThis paper makes an effort to trace the course of development thinking and associated development policy over the past six decades. Section I focuses on the early Post-War Consensus, with theory focused on extensions of classical dualism theory and policy concentrating on creating the pre-conditions for development. Section II traces the increasing awareness of the role of prices, a diminishing reliance on the developmentalist state and an increased reliance on structural adjustment lending associated with IFI conditionality. Section III illuminates the search for "silver bullets" which can be identified as key to the achievement of success. Finally, Section IV presents the author's assessment of where we are now and where we will, or should be, heading in the effort to achieve the third world's basic development objectives.Development Theory, Development Policy
Labor Surplus Economies
Get PDFThe labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ratios. In such situations, the marginal product of labor is likely to fall below a bargaining wage, related to the average rather than the marginal product. The reallocation of such disguisedly unemployed workers by means of "balanced" intersectoral growth ultimately permits the entire economy to operate on neo-classical principles. Finally, the paper introduces open economy dimensions, indicates the existence of other labor surplus sub-sectors and briefly responds to neo-classical critiques on both theoretical and empirical grounds.Development Theory, Labor Markets
Arthur Lewis' Contribution to Development Thinking and Policy
Get PDFArthur Lewis' seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes or Harrod-Domar nor the later neoclassical production function of Solow seemed relevant for developing countries. As a consequence, his model, rooted in the classical tradition, plus its many extensions, generated an extensive literature at the center of development theory. The approach also encountered increasingly strong criticism, some of the "red herring" variety, but some, spearheaded by neoclassical microeconomists like Rosenzweig, also raised serious challenges, focused especially on its labor market assumptions. This paper reviews this landscape and asks what theoretical or policy relevance the Lewis model retains for today's developing countries.Development Theory, Dualism, Labor Markets
Mark Gersovitz, Carlos F. Diaz Alejandro, Gustav Ranis, Mark R. Rosenzweig (ed), The theory and experience of economic development
No full textJacmart Marie-Claude. Mark Gersovitz, Carlos F. Diaz Alejandro, Gustav Ranis, Mark R. Rosenzweig (ed), The theory and experience of economic development. In: Tiers-Monde, tome 24, n°93, 1983. Le rôle de l'Etat dans le Tiers Monde, sous la direction de Moïses Ikonicoff. pp. 207-209
Dynamic Links between the Economy and Human Development
Get PDFThis paper empirically confirms the significance of various links in each of two chains over time: from economic growth (EG) to human development (HD), including EG itself, income distribution, the social expenditure ratio and female education; from HD to EG, including HD itself, along with the investment ratio. Our most important conclusion concerns sequencing over time. EG, which is an important input into HD improvement, is itself not sustainable without such improvement, either prior or simultaneous. Therefore, traditional policy advice, which argues that HD improvements must wait until EG expansion makes it affordable, is likely to be in error.human development, economic growth, comparative country studies
An Analysis of South Africa's Value Added Tax
Get PDFIn this paper, the authors describe South Africa's value added tax (VAT), showing that (1) the VAT is mildly regressive, and (2) it is an effective source of government revenue, compared with other tax instruments in South Africa. They evaluate the VAT in the context of other distortions in the economy by computing the marginal cost of funds-the effect of raising government revenue by increasing the VAT rates on household welfare. Then they evaluate alternative, revenue-neutral tax systems in which they reduce the VAT and raise income taxes. For the analysis, the authors use a computable general equilibrium (CGE) model with detailed specification of South Africa's tax system. Households are disaggregated into income deciles. They demonstrate that alternative tax structures can benefit low-income households without placing excess burdens on high-income households.
Interactions Between Inflation and Trade-Regime Objectives in Stabilization Programs
Get PDFThis paper examines the relationship between macroeconomic objectives of controlling inflation and trade-regime objectives in stabilization programs of developing countries. It is seen that there need be, in principle, no close relationship between the two, as a crawling peg exchange-rate policy can prevent inflation from affecting the performance of the foreign sector. In practice, trade regime objectives have been linked with inflation-reducing objectives, often to the detriment of resource allocation and growth. Differences between devaluation under liberalized regimes and under exchange control are also examined.
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