No / A huge body of literature has well acknowledged the crucial role played by financial sector in economic growth. Financial sector enables mobilisation of savings and allocation of credit for production and investment. Among its other functions are supplying transaction and portfolio management services and providing payment services, and source of liquidity for the firms. Financial sector also monitors borrowers, matches illiquid assets with liquid liabilities, and integrates credit and liquidity provision functions (Bossone, 2000). Banks boost economic growth by identifying the entrepreneurs with the best chances of successfully initiating new goods and production processes (King & Levine, 1993) and facilitate long-run investments in the high return projects (Bencivenga & Smith, 1991). In this chapter we examine the role of financial sector in achieving economic growth and development. We also briefly look at the factors determining financial development.

Inflation and output growth relationship is of interest to policymakers and researchers. In the West African Monetary Zone, the attainment of low inflation rate is considered as one of the convergence criteria for the successful implementation of monetary union in the zone. Although there has been empirical evidence that the relationship between inflation and output growth in the WAMZ is non-linear, the question yet to be answered is, “at what level is inflation detrimental to economic growth?” This paper extends the link of analysis by investigating the optimal inflation for the WAMZ countries using the quadratic approach to threshold estimation. The findings drawing from economic theory and analysis suggests that inflation rate in the WAMZ is significantly associated with lower growth only after it reaches 12.86 percent. The result further indicates that there are significant differences in the inflation threshold levels in the WAMZ countries. The findings of this research are not surprising given the institutional features and structure of the different countries in the zone. The findings of the research suggest that monetary authorities in the WAMZ countries could accommodate inflation rate up to the threshold level, even when that is higher than what is currently being targeted in the zone, so as not to stifle growth in the area. Also, although the WAMZ countries belong to the same geographical area, which could enhance group formation; there could be other sources of heterogeneity like different political, legal, economic, and national policies that drive individual growth processes in the zone. / Central Bank of Nigeria

This dissertation consists of three chapters studying topics in innovation, diffusion and economic growth. The first chapter studies the creativity of innovations filed in US patents. The second chapter studies the diffusion of disruptive technologies. The third chapter develops a measure of knowledge diffusion across borders and emphasizes the role of immigration, trade and FDI. In the first chapter, I study the divergence between falling aggregate TFP growth and rising number of new patents filed. I offer an explanation for this puzzling divergence: the creativity embodied in US patents has dropped dramatically over time. To separate creative from derivative patents, I develop a novel, text-based, measure of patent creativity: the share of two-word combinations that did not appear in previous patents. I show that only creative and not derivative patents are associated with significant improvements in firm level productivity and stock market valuations. Using the measure, I show that younger inventors on average file more creative patents. To estimate the effect of changing US demographics on aggregate creativity and productivity growth, I build a growth model with endogenous creation and adoption of technologies. In this model, falling population growth explains 42% of the observed decline in patent creativity, 32% of the slowdown in productivity growth, and 15% of the increase in derivative patenting. In the second chapter, I (along with my coauthors Nick Bloom, Tarek Hassan, Josh Lerner, Marcela Mello and Ahmed Tahoun) identify phrases associated with novel technologies using textual analysis of patents, job postings, and earnings calls, enabling us to identify key stylized facts on the diffusion of jobs relating to new technologies. First, the development of disruptive technologies is geographically concentrated, more so even than overall patenting. 53% of disruptive technologies come from just two U.S. locations, Silicon Valley and the North-East corridor. Second, as the technologies mature and the number of new related jobs grows, hiring spreads geographically. But this process is very slow, taking around 50 years to disperse fully. Third, while initial hiring is concentrated in high-skilled jobs, over time the mean skill level in new positions declines, driven by the reduced importance of positions associated with research, development, and production of technologies. In the third chapter, I develop a new measure to identify international knowledge diffusion. Using this measure, I provide empirical evidence to highlight drivers, benefits and frictions of knowledge diffusion. First, I show that knowledge diffusion is embodied in migrants, trade and foreign direct investment. Second, knowledge diffusion from advanced countries is associated with higher firm value and higher productivity. Third, vast majority of variation in my measure is at the firm level, not at the country or the sector level. This suggests a role of firm-level frictions in diffusion of knowledge across countries.

This dissertation consists of three linked articles on the allocation of R&D resources in the economy and its impact on innovation and economic growth. First, I document large and persistent differences in firm-level R&D returns, which is sur- prising as traditional growth models with frictions and competitive markets for R&D inputs predict that R&D resources flow from low to high R&D return firms until they are equalized. I show that differences in firms’ labor market power over inventors can explain R&D return differences and provide evidence in favor of this hypothesis. Finally, using an endogenous growth model I estimate that such differences are quantitatively important for R&D returns dispersion and that economic growth would be significantly faster without this friction. Second, I pursue a summary statistic approach to determining the allocative efficiency of R&D resources in the US. Empirically, I find that allocative efficiency has declined over time with potentially large negative consequences for US economic growth. Finally, I investigate the empirical contribution of workforce aging in the US to the slowdown in economic growth. My evidence suggests that workforce aging leads to slower economic growth, partly due to lower demand for new technologies.

Yes / The role of inward FDI on economic growth has attracted the attention of researchers for many years as its beneficial impact has been recognised theoretically by scholars and policymakers; however, the empirical evidence remains ambiguous. Hence, the objective of this chapter is to investigate the causal relationship between FDI inflows/outflows and economic growth in developed OECD countries. Investigation of the causal link between FDI inflows and growth has important implications such that if there is a unidirectional causality it would support the FDI-led growth hypothesis. Alternatively, if the causal link runs in the opposite direction, it would imply that economic growth may be a prerequisite for countries to attract FDI. Finally, if the causal process is bi-directional, FDI inflows and growth would have a reinforcing causal relationship. In particular, this chapter contributes to the existing literature by focusing on developed countries as inward/outward FDI has become an increasingly significant factor in influencing the economic activity. In contrast, most previous time-series causality studies focus on developing countries with only a few covering developed countries. However, almost all of the world’s FDI originates from developed countries and the majority of FDI is also located in developed countries. Another feature is that this chapter also tests the causal link between outward FDI and economic growth. Outward FDI might promote the home country’s economic growth as it might yield higher profits, transfer technology and management skills to the home country, expand production abroad, secure raw materials overseas and avoid trade barriers and so on. Following an Introduction, the chapter then reviews FDI trend across OECD countries. Next it discusses the alternative theories and literature exploring the relationship between FDI and economic growth (i.e. the impact of inward FDI on host country’s economic growth, the impact of outward FDI on home country’s economic growth, together with the impact of economic growth on inward/outward FDI). We then describe empirical causality testing methodology, together discussing the empirical results.

During the last decade, international immigration has experienced significant changes along with adjustments in migration policies. Based on previous research, this paper aims to replicate a statistical investigation of immigration’s effect on economic growth, by also incorporating labor participation and labor force with advanced education into the model. Furthermore, the study explores if different levels of migration policies lead to various impacts on economic growth. The analysis uses data from 20 OECD countries from 2000 to 2020 through a division into five subperiods. To conduct the examination, an OLS regression analysis and logarithmic regression are applied. Furthermore, the regression results indicate that immigration has no statistically significant effect on economic growth. The study also concludes that there is no evidence implying that more developed migration policies contribute more to economic growth than those of low levels. Various research findings conclude different outcomes of immigration's effect on economic growth. Yet, it seems that this question goes beyond the scope of the current study, necessitating additional research to explore the correlation between these two variables and whether there exists a causal relation.

No description available.

A acumulação de capital é analisada em meio à busca governamental por inovação tecnológica, no período compreendido entre 1964 e 1985, configurando o crescimento econômico característico do regime militar. A inovação tecnológica esteve subordinada à acumulação de capital e manifestou-se: (a) nas mudanças legislativas e normativas; (b) na elevação da produtividade ou aumento do produto por homem-hora; (c) na diminuição da taxa de emprego e no rebaixamento dos salários. Delfim Netto caracterizava \"inovação tecnológica\" como uma \"maneira de capturar tudo aquilo que os modelos de crescimento econômico não abordaram\". São ainda apresentadas, de forma cronológica, as principais leis criadas para o funcionamento econômico, junto com as ações desencadeadas pelos agentes econômicos no período. Analisa-se o comportamento econômico brasileiro por meio de um conjunto de estatísticas sobre: (a) o mecanismo de poupança-investimento; (b) o mecanismo de inflação-distribuição de renda; (c) a deterioração do comércio exterior e (d) o processo de endividamento. Discute-se ao final, a ascensão e queda de um modelo que correlacionava positivamente autoritarismo e crescimento, mostrando não haver relação direta entre a primeira e a segunda idéia, visto que o autoritarismo não produziu apenas desenvolvimento financeiro, mas antes intensificou a dominação social. / Acumulation of capital is here approached in the government search for technological innovation, as occurred in the period comprising 1964 to 1985. This shapes the type of economic growth obtained by the local military regimen at that time. Moves to technological innovation were subordinated to de accumulation of capital as follows: (a) induced changes in laws and government rules; (b) Rises on productivity or increased output per man-hour; (c) relative decrease in employment rates wages lowering. The minister then at office Delfim Netto characterized \"technological innovation\" as the way \"to capture everything that evades the observation of a growth model\". An attempt is made to bring in chronological order the main legal changes implemented by listing them when referred to economic drift, as well as actions from the economic subjects in that period. Finally a discussion is made of the relations between authoritarianism and economic growth, putting clear the non necessary character of those as positive correlation. In fact, local authoritarianism produced not only financial development, but also reinforced social domination.

O objetivo central desta dissertação é analisar a perda de dinamismo do crescimento econômico brasileiro a partir da década de 80, utilizando a abordagem keynesiana de crescimento com restrição externa. De acordo com os resultados obtidos neste trabalho, pode-se dizer que o crescimento econômico brasileiro de 1930-2004 foi aquele compatível com o equilíbrio do balanço de pagamentos e que o câmbio real e fluxo de capitais têm um papel reduzido na obtenção do equilíbrio externo de longo prazo. Complementarmente, a perda de dinamismo do crescimento do PIB, a partir da década de 80, pode ser explicada por uma maior perversidade desse equilíbrio. Na década de 80, o equilíbrio externo tornou-se mais perverso devido aos componentes fluxo de capitais e câmbio real. Já nos anos 90, o Novo Modelo Econômico provocou uma quebra estrutural na elasticidade da renda das importações, fazendo com que o equilíbrio externo, agora, ocorra a uma taxa de crescimento da renda interna mais baixa. A correlação entre crescimento, restrição externa e padrão de especialização da estrutura produtiva é uma discussão subjacente a todo o desenvolvimento do trabalho. / The main aim of this work is to analise the less dynamic economic growth of Brazil since the eighties, using the keynesian approach of Balance-of-Payment Constrained Growth. The results reveal that Brazilian growth between 1930 and 2004 was Balance-of-Payments Constrained and that, capital flows and real exchange rate had a moderate role to achive the balance of payment equilibrium. Furthermore, the less dynamic Brazilian economic growth since the eighties can be explained by a more perverse balance of payment equilibrium. In the eighties, capital flows and real exchange rate were responsible for this result. In the nineties, there was a structural change in the income elasticity of demand for imports, leading to a lower economic growth rate. The relations between growth, balance-of-payment constrains and structure of production are intrinsic in the development of this essay.

Die fünf Essays dieser Dissertation behandeln Themen aus dem Bereich der Entwicklungs- und Umweltökonomie. Alle Essays analysieren wie die Produktion von CO2 Emissionen beeinflusst oder reguliert werden kann. Das Treibhausgas CO2 ist eine der größten Externalitäten der Geschichte menschlicher Entwicklung. Die einzelnen Essays zeigen wie lokale Klimaveränderungen das menschliche Wohlbefinden beeinflussen und welche monetären Kosten mit einem Anstieg der Durchschnittstemperatur in Lateinamerika verbunden sind. Außerdem betrachten die Essays Hauptdeterminanten von CO2 Emissionen auf haushalts- oder nationalem Niveau, und bestimmen den Erfolg aktueller Klimapolitik um CO2 Emissionen zu reduzieren. Das letzte Essay betrachtet die momentane und zukünftige Verteilung von CO2 Emissionen wenn verschiedene Politikszenarien realisiert werden würden. Das erste Essay befasst sich mit dem Effekt von klimatischen Veränderungen auf das Wohlfahrtsniveau in Lateinamerika. Als Wohlfahrtsmaß kommen dabei subjektive Selbstaussagen zum Einsatz. Subjektive Wohlfahrt erfasst nicht nur Veränderungen im Einkommen, sondern auch Veränderungen in anderen Lebensbereichen wie dem Zugang zu Bildung oder Gesundheitseinrichtungen. Generell kommt die Studie zu dem Schluss, dass eine Temperatur im Bereich von 20 Grad Celsius und Niederschlag bis 247mm optimal sind. Höhere monatliche Durchschnittstemperaturen oder Niederschläge sind mit Wohlfahrtsverlusten verbunden. Eine globale Erwärmung von mehr als 2 Grad Celsius wird mit Wohlfahrtsverlusten in Lateinamerika einhergehen. Das zweite Essay analysiert Haushaltsemissionen in Form des Kohlenstoff-Fußabdrucks in Indien. Dabei liegt das Augenmerk auf dem Effekt von Einkommenswachstum und sozio- ökonomischen Veränderungen innerhalb der Haushalte. Ein höheres Haushaltseinkommen führt zu einem stärkeren Konsumverhalten aber gleichzeitig auch zu weniger CO2- intensiven Konsummustern. Dennoch kann der Mehrkonsum an CO2-armen Gütern, wie zum Beispiel Bildung, den Anstieg der Haushaltsemissionen, aufgrund höheren Einkommens, nicht kompensieren. Das dritte Essay betrachtet in wie fern aktuelle internationale Klimapolitik einen Einfluss auf CO2 Emissionen genommen hat. Dabei zeigt sich, dass Länder, welche Verpflichtungen im Rahmen des Kyoto Protokolls eingegangen sind, im Durschnitt 6.5% weniger CO2 emittiert haben, als vergleichbare Länder mit ähnlichem Einkommens- und Bevölkerungswachstum aber ohne Verpflichtungen. Das vierte Essay geht auf die Hauptdeterminante des CO2 Emissionswachstums ein, nämlich Einkommen. Dabei wird aber nicht nur der Effekt von Veränderungen im Einkommen, sondern auch der Effekt von Veränderungen in der Einkommensverteilung auf CO2 Emissionen untersucht. Einkommensungleichheit wirkt sich abhängig vom gegenwertigen Ungleichheitsniveau auf CO2 Emissionen aus. Für Länder mit einer hohen Einkommensungleichheit ist der Effekt positiv, das heißt mit sinkender Einkommensungleichheit sinken CO2 Emissionen. Für Länder mit niedriger Ungleichheit ist der Effekt negativ. Ein weiterer Abbau der Einkommensungleichheit würde dort mit steigenden CO2 Emissionen einhergehen. Das fünfte Essay befasst sich mit der globalen Verteilung von pro Kopf CO2 Emissionen. Dabei geht es darum inwiefern der Energiemix und der sektorale Aufbau einzelner Volkswirtschaften zu dieser ungleichen Verteilung von pro Kopf CO2 Emissionen beigetragen haben. Der Abbau schwerer Industrie in OECD Ländern und der verstärkte Einsatz von Kohle in nicht-OECD Ländern haben dabei zu einem Rückgang der globalen Ungleichheit in CO2 Emissionen geführt. Langfristig gesehen kann es sein, dass die Emissionsungleichheit ab 2040 wieder steigen wird. Jedes Essay trägt in seinem Feld zur betreffenden Literatur bei. Die Essays analysieren wie jegliche ökonomische Aktivität (hauptsächlich Konsum) CO2 Emissionen verursachen, welche wiederum für Veränderungen im Klima verantwortlich gemacht werden. Diese Veränderungen im Klima gehen mit lokalen Wohlfahrtsverlusten einher. Nationale Politikmaßnahmen wie zum Beispiel Maßnahmen zur Einkommensumverteilung können einen ambivalenten Einfluss auf CO2 Emissionen haben. Politikmaßnahmen um das Konsumverhalten und Konsummuster zu beeinflussen könnten ein effizientes Mittel zur Regulierung von CO2 Emissionen in reichen Ländern darstellen. Generell könnten internationale Klimapolitikmaßnahmen nationale Politikmaßnahmen katalysieren.