The author argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive first order relationship between financial development and economic growth. There is evidence that the financial development level is a good predictor of future rates of economic growth, capital accumulation, and technological change. Moreover, cross-country, case-style, industry level and firm-level analysis document extensive periods when financial development crucially affects the speed and pattern of economic development. The author explains what the financial system does and how it affects, and is affected by, economic growth. Theory suggests that financial instruments, markets and institutions arise to mitigate the effects of information and transaction costs. A growing literature shows that differences in how well financial systems reduce information and transaction costs influence savings rates, investment decisions, technological innovation, and long-run growth rates. A less developed theoretical literature shows how changes in economic activity can influence financial systems. The author advocates a functional approach to understanding the role of financial systems in economic growth. This approach focuses on the ties between growth and the quality of the functions provided by the financial systems. The author discourages a narrow focus on one financial instrument, or a particular institution. Instead, the author addresses the more comprehensive question: What is the relationship between financial structure and the functioning of the financial system?

/pdf/financial-development-and-economic-growth-views-and-agenda-1isr9l81uu.pdf

Financial development and economic growth : views and agenda

Highlighting an important facet of diversity among organizations operating in different institutional environments, this article presents a model of the growth strategy of the firm in planned economies in transition such as Eastern Europe, the former Soviet republics, and China. Focusing on the stylized state-owned enterprises, we explore the interaction between institutions and organizations in these countries. Given the institutional constraints, neither generic expansion nor acquisitions, two traditional strategies for growth found in the West, are viable for firms in these countries. Instead, firms settle on a network-based strategy of growth, building on personal trust and informal agreements among managers. The institutional environment that leads to this unique strategy of growth is examined, and boundary conditions, limitations, and implications of this model are discussed.

http://innovation-research.org/wp-content/uploads/2013/05/peng-enterprise-soviet.pdf

The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice

This paper offers a theory of development that links the degree of market incompleteness to capital accumulation and growth. At early stages of development, the presence projects limits the degree of risk spreading (diversification) that the economy can achieve. The desire to avoid highly risky investments slows down capital accumulation, and the inability to diversify idiosyncratic risk introduces a large amount of uncertainty in the growth process. The typical development pattern will consist of a lengthy period of “primitive accumulation” with highly variable output, followed by takeoff and financial deepening and, finally, steady growth. “Lucky” countries will spend relatively less time in the primitive accumulation stage and develop faster. Although all agents are price takers and there are no technological spillovers, the decentralized equilibrium is inefficient because individuals do not take into account their impact on others' diversification opportunities. We also show that our results generalize to economies with international capital flows.

/pdf/was-prometheus-unbound-by-chance-risk-diversification-and-1p70xomfsa.pdf

Was prometheus unbound by chance? Risk diversification and growth

New public management is a topical phrase to describe how management techniques from the private sector are now being applied to public services. This book provides a completely up-to-date overview of the main theoretical models of public sector management, and examines the key changes that have occurred as more and more public services are contracted out to private organisations, as the public sector itself grapples with 'internal markets'. Drawing on economics, organisational theory and poliltics, Jan-Erik Lane presents new public management from an analytical perspective. This book uses game theory and empirical studies in order to assess the pros and cons of new public management.

https://ndl.ethernet.edu.et/bitstream/123456789/42638/1/102.Jan-Erik%20Lane.pdf

New public management

Summary) The abstract should follow the structure of the article (relevance, degree of exploration of the problem, the goal, the main results, conclusion) and characterize the theoretical and practical significance of the study results. The abstract should not contain wording echoing the title, cumbersome grammatical structures and abbreviations. The text should be written in scientific style. The volume of abstracts (summaries) depends on the content of the article, but should not be less than 250 words. All abbreviations must be disclosed in the summary (in spite of the fact that they will be disclosed in the main text of the article), references to the numbers of publications from reference list should not be made. The sentences of the abstract should constitute an integral text, which can be made by use of the words “consequently”, “for example”, “as a result”. Avoid the use of unnecessary introductory phrases (eg, “the author of the article considers...”, “The article presents...” and so on.)

/pdf/ministry-of-education-and-science-of-the-russian-federation-7m2jn0xnm1.pdf

Ministry of Education and Science of the Russian Federation

Economic Backwardness in Historical Perspective: A Book of Essays

Part 1 The Analytical Framework: Components of Water Resource Management. Types and Quantities of Water Demand. Types and Quantities of Water Supply. Market Processes for Resource Allocation. Part 2 Interaction of Water Quantity and Quality: Nature of Pollutions and their Specific Impact. Interactions in the Economic-Ecological Systems. Recycling and Reusing Water. Part 3 Instruments in Water Resource Management: Drawbacks of Administrative Controls. Privatizing Water Supply and Distribution. Quality-Discriminant Pricing of Water Services. Water Basin Models. Part 4 Summary and Conclusions: Long-Run Policy Implications in Water Resource Management.

Economics of Water Resources: From Regulation to Privatization

Preface Part I. Rationale for the State's Expansion: 1. Public ownership and welfare 2. An all-encompassing party-State Part II. Methods of Remodelling the State: 3. Limiting the State's size and scope 4. Restructuring the State's foundations Part III. Comparisons within Broader Frameworks: 5. Options and outcomes in the industrial economies 6. Options and outcomes in the transitional economies Part IV. Outlook for the Twenty-First Century: 7. Contraction vs expansion of the scope of the State Notes Index.

Redefining the state : privatization and welfare reform in industrial and transitional economies

Capitalism and Modern Social Theory: An Analysis of the Writings of Marx, Durkheim and Max Weber. By Anthony Giddens. Cambridge and New York: Cambridge University Press, 1971. xvii, 261 pp. $11.00.

Nicolas Spulber

Papers

Economic Backwardness in Historical Perspective: A Book of Essays

Economics of Water Resources: From Regulation to Privatization

Redefining the state : privatization and welfare reform in industrial and transitional economies

Capitalism and Modern Social Theory: An Analysis of the Writings of Marx, Durkheim and Max Weber. By Anthony Giddens. Cambridge and New York: Cambridge University Press, 1971. xvii, 261 pp. $11.00.

Economics of water resources