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on Africa |
| By: | Rosa Capolupo |
| Abstract: | The aim of this paper is to update the reviews on endogenous growth theories in order to explore whether recent empirical studies are more supportive of their main predictions. Among the core topics studied in the growth econometric framework, namely, convergence, identifications of growth determinants and factors responsible of growth differences in the data, the primary focus of this paper is on the last two. Since the use of econometrics was originally motivated by convergence issues, in this work we will review econometric studies that test primarily the relevance of endogenous models in terms of significance and robustness of growth’s determinant coefficients. We argue that: (i) causal inference drawn from the empirical growth literature remains highly questionable, ii) there are estimates for a wide range of potential factors but their magnitude and robustness are still under debate. Overall, however, if properly interpreted, endogenous growth models' predictions are increasingly gaining empirical support. |
| JEL: | O47 O41 C31 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2005_4&r=afr |
| By: | Nuno Crespo; Maria Paula Fontoura |
| Abstract: | Empirical evidence about FDI spillovers to domestic firms has provided mixed results. This global evaluation has recently been complemented with the analysis of the factors that determine the existence, dimension and sign of FDI spillovers. We survey the arguments that support these factors and analyze the empirical evidence already produced. FDI spillovers depend on many factors, frequently with an indeterminate effect. Absorptive capacity of domestic firms and regions are a precondition for incorporating the benefits of FDI spillovers. Concerning the remaining factors, the results suggest opposite effects or, in some cases, are still insufficient to legitimate decisive conclusions. |
| Keywords: | productivity; spillovers; FDI; determinant factors. |
| JEL: | O12 F23 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp62005&r=afr |
| By: | Thomas M. Steger (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH)); Lucas Bretschger (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH)) |
| Abstract: | We set up a dynamic stochastic model of a stylized economy comprising a final output sector (with traditional and modern firms) and an intermediate goods sector. It is shown that market integration reduces the volatility of the rate of return of capital invested in modern firms. The induced portfolio decision of households then leads to reallocation of capital from traditional to modern firms. Despite the presence of a reverse precautionary saving channel, the growth rate unambiguously increases due to the reallocation of capital. Empirical estimates for OECD countries confirm the theoretical results |
| Keywords: | globalization, trade in intermediate goods, portfolio decisions, economic growth |
| JEL: | F1 O4 |
| Date: | 2005–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:05/40&r=afr |