Economic Development and Cultural Change
University of Chicago Press
About: Economic Development and Cultural Change is an academic journal published by University of Chicago Press. The journal publishes majorly in the area(s): Population & Developing country. It has an ISSN identifier of 0013-0079. Over the lifetime, 2650 publications have been published receiving 119272 citations. The journal is also known as: EDCC.
Papers published on a yearly basis
TL;DR: In this article, the authors review various studies which have provided a description and possible explanation to patterns of innovation adoption in the agricultural sector, and point out that the tendency of many studies to consider adoption in dichotomous terms (adoption/nonadoption) may not be appropriate in many cases where the actual decisions are defined over a more continuous range.
Abstract: This paper reviews various studies which have provided a description and possible explanation to patterns of innovation adoption in the agricultural sector. The survey points out that the tendency of many studies to consider innovation adoption in dichotomous terms (adoption/nonadoption) may not be appropriate in many cases where the actual decisions are defined over a more continuous range. More attention needs to be given to the socio-cultural and institutional environment in area studies so that their interrelation with economic factors affecting adoption can be inferred. The presence of several interrelated innovations is another aspect that needs to be considered more carefully in future research, since a number of simultaneous decisions may be involved. Furthermore, the possibility of regular sequential patterns in adopting components of a new technological package should be specifically addressed in future studies. Finally, the impact of differential adoption rates on land holding distribution merits attention in future research.
TL;DR: In this paper, a cross country index of real exchange rate distortion using the international comparison of prices prepared by Robert Summers and Alan Heston Resource endowment constitutes the norm and real overvaluation or undervaluation relative to this norm reveals whether incentives are directed to domestic or international market.
Abstract: The long run trade orientation of an economy is measured in this article by an index which measures the extent to which the real exchange rate is distorted away from its free trade level by the trade regime The technique for estimating a cross country index of real exchange rate distortion uses the international comparison of prices prepared by Robert Summers and Alan Heston Resource endowment constitutes the norm and real overvaluation or undervaluation relative to this norm reveals whether incentives are directed to the domestic or international market The index is constructed based on data for GDP/capita average price level in US dollars 1976-85 and GDP growth rate/capita 1976-85 Other sections are devoted the comparison of the procedure for 117 countries between 1976-85 and an examination of the empirical relationship between outward orientation and economic growth and sensitivity analysis The results indicate that Latin America generally was overvalued by 33% relative to Asia and Africa was overvalued by 86% The real exchange rate distortion index supports the view that Asian countries are more outward oriented Asian economies have lower price levels which reflect relatively modest protection and incentives oriented to external markets Latin American countries with moderately high price level and African countries with very high price levels reflect strong protection and incentives directed to production for the domestic market An alternative specification which eliminates the dummy variables for Africa yields similar results with slightly lower magnitude; ie overvaluation is 60% instead of 86% for Africa and Latin America is overvalued by 39% instead of 33% over Asia A table is provided which indicates by country the distortion and variability of the real exchange rate the GDP growth the 1976 GDP/capita and the investment rate Another finding was that there is a significant negative relationship between distortion of the real exchange rate and growth of GDP/capita after controlling for the effects of real exchange rate variability and investment level with both the original specification and the alternative The growth rate/capita of Latin American and African countries would increase 15-21% with a shift to move outward oriented trade policies This gain as well as devaluation of the real exchange reate trade liberalization and maintenance of a stable real exchange rate would contribute to positive growth rates In the analysis of the poorest 24 countries the result was that only rate distortion and not variability and investment rate explained the growth rate The gain for Ghana for example of adopting the trade policies and exchange rate of Bangladesh would be 5% to its growth
TL;DR: In this paper, the authors discuss the financial development and economic growth in underdeveloped countries and place emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system.
Abstract: Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.
TL;DR: In this paper, the authors explore the institutional impact of these high levels of aid and the way that large amounts of aid are delivered in many of the countries with poor governance records.
Abstract: Introduction More than a decade ago, the World Bank argued that “underlying the litany of Africa’s development problems is a crisis of governance.” Poor quality institutions, weak rule of law, an absence of accountability, tight controls over information, and high levels of corruption still characterize many African states today. Aid levels have been reduced in many parts of Africa during the past decade. Yet in many of the countries with poor governance records, aid continues to contribute a very high percentage of government budgets. This article explores the institutional impact of these high levels of aid and the way that large amounts of aid are delivered. There are many reasons why governance is poor in much of sub-Saharan Africa. Colonialism did little to develop strong, indigenously rooted institutions that could tackle the development demands of modern states. Economic crisis and unsustainable debt, civil wars, and political instability have all taken their toll over the past 2 decades and more. It is difficult to separate the impact of these problems from the possible impact of foreign aid, which is often high in countries that suffer from precisely these problems. Theory provides conflicting guidance here. On the one hand, aid can release governments from binding revenue constraints, enabling them to strengthen domestic institutions and pay higher salaries to civil servants. Aid can provide training and technical assistance to build legal systems and accounting offices. In many countries, aid personnel (sometimes expatriate) manage important government programs, and the infusion of resources and technical assistance can give an important boost to the efficiency and effectiveness of governance, if only in a partial sense. Yet despite these likely benefits, it is also possible that, continued over