This thesis examines the role of human capital in the growth and convergence of the Iberian countries. Using a newly computed series for human capital at the NUTS III level for the Portuguese regions, the comparison between Portugal and Spain suggests a positive role for human capital proxied by the average years of schooling in both Iberian countries regional growth, which supports the hypothesis that higher levels of education improved the regions‟ ability to adopt new technology; although the levels of education indicate that secondary schooling is important for technology adoption in Portugal, but not in Spain, and its effect is higher than that of tertiary education. Using Exploratory Spatial Data Analysis (ESDA), two convergence clubs are identified within the Iberia Peninsula (Core and Periphery), but convergence occurs mainly in the Periphery group and education plays a positive and significant role only in the Core club.

We analyze how the impact of a change in the sovereign debt-to-GDP ratio on economic growth depends on the level of debt, the stress level on the financial market and the membership in a monetary union. A dynamic growth model is put forward demonstrating that debt affects macroeconomic activity in a non-linear manner due to amplifications from the financial sector. Employing dynamic country-specific and dynamic panel threshold regression methods, we study the non-linear relation between the growth rate and the debt-to-GDP ratio using quarterly data for sixteen industrialized countries for the period 1981Q1-2013Q2. We find that the debt-to-GDP ratio has impaired economic growth primarily during times of high financial stress and only for countries of the European Monetary Union and not for the stand-alone countries in our sample. A high debt-to-GDP ratio by itself does not seem to necessarily negatively affect growth if financial markets are calm. (authors' abstract) / Series: Department of Economics Working Paper Series

We analyze how the impact of a change in the sovereign debt-to-GDP ratio on economic growth depends on the level of debt, the stress level on the financial market and the membership in a monetary union. A dynamic growth model is put forward demonstrating that debt affects macroeconomic activity in a non-linear manner due to amplifications from the financial sector. Employing dynamic country-specific and dynamic panel threshold regression methods, we study the non-linear relation between the growth rate and the debt-to-GDP ratio using quarterly data for sixteen industrialized countries for the period 1981Q1-2013Q2. We find that the debt-to-GDP ratio has impaired economic growth primarily during times of high financial stress and only for countries of the European Monetary Union and not for the stand-alone countries in our sample. A high debt-to-GDP ratio by itself does not seem to necessarily negatively affect growth if financial markets are calm. (authors' abstract)

This paper applies a cross-sectional regression analysis of 83 countries over the period 2009-11 in order to examine the role played by the exchange-rate regime in explaining how countries fared in terms of economic growth recovery following the recent financial crisis. After controlling for income categorization, regime classification, using alternative regime definitions, and accounting for various other determinants, the paper finds a significant relationship between the regime choice and the recovery performance, where those countries with more flexible arrangements fared better. These results were conditional on the regime classification scheme and the income level, implying an asymmetric effect of the regime during the recovery period between high and low income countries. The paper also finds that proxies for initial conditions as well as trade and financial channels were highly significant determinants of the growth performance during the recovery period.

The role of the financial sector in helping an economy grow has been the subject of debate for a long time. Recently, however, consensus has been reached, through empirical evidence, showing the importance of financial sector development in achieving economic growth (ADB, 2009). Using the Global Financial Development Database (GFDD) model, the study done here will provide an analysis of financial sector development in Sub-Saharan Africa and its effect on economic growth, using data for 40 countries, in the years from 2000-2014. This analysis was done using a cross-sectional regression analysis of countries in Sub-Saharan Africa (SSA) with data provided from the World Bank. The regression shows significantly positive results between economic growth and firms using banks to finance investments, bank cost to income ratio and bank credit to bank deposits, while significantly negative results are shown in financial system deposits and stock market total value traded. However, seeing as financial sector development is diverse and dynamic, these measurements and the regression done here will not provide a comprehensive picture of the state of financial sector development in SSA.

Significant growth rates are in many times associated with countries embracing the ongoing globalization and openness to the international market of exchanging goods and services as well as ideas and technologies. Many researchers believe that participating in an international economy is a primary source of growth. The question is how strong the relationship between openness and growth is and has interested many researchers. This paper aims to investigate the effects of trade openness on economic growth in the long run and begins from Adam smith`s discussion on absolute advantage and specialization to discussions on trade organizations and policies. This study explores the relationship between trade openness and economic growth using a sample of 3 developed countries over the period (1970 – 2006) in a panel data analysis. The fixed effects model analysis indicates that trade openness has a positive and significant effect on economic growth.

This study is an independent and critical assessment of the Business Link Start-up Service (BLSS) in the creation of new ventures in the East Midlands. The BLSS was part of the region’s £70m annual investment in business support (2007-10). THE BLSS was delivered in the five counties of the East Midlands region and included the four Business Link Contractors (BLCs). The study uses a sequential mixed method approach to data collection and analysis. The data collection was multi-level and captures experiences, views and expectations at regional policy and funding level (East Midlands Development Agency), contract management level (East Midlands Business), contractor level (Nottingham Business Ventures, Northampton Business School, Skills for Enterprise, and Derbyshire Enterprise Agency), and nascent entrepreneur level. Semi-structured interviews were used to understand the context and experiences in the provision of the BLSS. The qualitative data illuminates shared experiences in the context of entrepreneurship support provision. The quantitative study (a survey of 105 participants), is an analysis of the nascent entrepreneurs’ profiles who were at different stages of new venture creation, their access of the BLSS (training, business advice, and information) and progress to new venture creation (NVC). The BLSS product was well designed to provide a balance of flexibility and structure in meeting nascent entrepreneur needs. However, BLSS contract and output targets (measures) distorted the delivery process. The delivering of BLSS by contractors was adapted to ‘deliver’ the required outputs. The focus on ‘hitting targets’ is a threading theme in the discussion. The behaviour of the contractors limited the capacity of the BLSS to ensure the progress of individuals from one stage to another when they are counted as an output. This evaluation of business support led to the development of a ‘new’ nascent entrepreneur support model which is expected to help in redefining of the objectives and measures for start-up support programmes. The ‘new’ model fully recognises the need to progressively develop individuals through to start-up without ignoring the complexity of creating a new business and the need for evolving support throughout the start-up process

This article assesses the empirical relationship between per capita income growth fluctuations and the age-structured human capital variations across four groups of geographically clustered developed and developing countries from spatial perspective. We estimate a spatial Vector Autoregressive (VAR) model of income dynamics where the distance between countries is defined on relational space based on their similarity in appropriation tendency of human capital in the production processes. These distances are computed using a newly developed human capital data set which fully characterizes the demographic structure of human capital, and thus underlines the joint relevance of demography and human capital in economic growth. Spatial effects on growth interdependence and complementarity are then explored with respect to the proposed distance metrics. Our results imply that significant cross-country growth interdependence based on human capital distances exists among defined country groups suggesting the need for a cooperative policy programme among them. We also find that the relationship between economic growth and human capital is highly nonlinear as a function of the proposed human capital distance.

This thesis attempts to analyze the relationship between economic growth and human capital investments in Taiwan. The study's general hypothesis is that increases in human capital investments will stimulate the growth of gross national product. The data were drawn from official Taiwanese publications from different sources. The first chapter emphasizes the importance of human capital investments. Chapter II reviews the related literature. Chapter III specifies the model and research methods. Chapter IV analyzes the impact of human capital investments on gross national product. The study is summarized and conclusions are drawn in Chapter V. Materials collected to analyze the above problem reveal that human capital investments have a positive and significant effect on economic growth. In fact, human capital investments and economic growth are mutually affected.

This paper discusses the attempt to achieve balanced economic growth in India. The process is viewed as a transition of society from a traditional stage to one characterized by industrialization and economic growth, and which involves major economic, social and political changes. It specifically deals with the Indian banking system and its structural development since independence as a means to hasten economic growth. These changes in the banking system, through social control, and eventually nationalization of the major commercial banks in India,, illustrate the increasing role of the State in gearing the banking sector towards meeting the goals of national economic planning. The above events are related to the struggle between the moderates and those who advocate a more socialist approach to solving the economic and social problems in India.