Is Fixed Investment the Key to Economic Growth
TLDR
The authors examined shares of fixed capital formation in GOP and rates of economic growth for more than 100 countries over successive 5-year periods between 1965 and 1985 to determine the direction of causality between them.Abstract:
This paper examines shares of fixed capital formation in GOP and rates of economic growth for more than 100 countries over successive 5-year periods between 1965 and 1985 to determine the direction of causality between them. Simple regressions and multiple regressions including several standard determinants of growth, as well as a simple causality test, provide more evidence that increases in growth precede rises in rates of capital formation than that increases in capital formation precede increases in growth. High rates of fixed capital formation accompany rapid growth in per capita income, but we find no evidence that fixed investment is the only or main source of ignition for economic growth.read more
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Democracy and Growth
TL;DR: Growth and democracy are analyzed for a panel of about 100 countries from 1960 to 1990 as mentioned in this paper, showing that the overall effect of democracy on growth is weakly negative and there is a suggestion of a nonlinear relationship in which more democracy enhances growth at low levels of political freedom but depresses growth when a moderate level of freedom has already been attained.
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Foreign direct investment in developing countries and growth: A selective survey
TL;DR: In this article, the authors survey the latest developments in the literature on the impact of inward foreign direct investment (FDI) on growth in developing countries, and show that FDI is a composite bundle of capital stocks, know-how, and technology, and hence its impact on growth is expected to be manifold and vary a great deal between technologically advanced and developing countries.
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It's Not Factor Accumulation : Stylized Facts and Growth Models
William Easterly,Ross Levine +1 more
TL;DR: The authors argue that these facts do not support models with diminishing returns, constant returns to scale, some fixed factor of production, and that highlight the role of factor accumulation in economic growth.
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Foreign direct investment-led growth: evidence from time series and panel data
TL;DR: In this paper, the impact of foreign direct investment on capital accumulation and output and total factor productivity (TFP) growth in the recipient economy was investigated. But the extent to which FDI is growth-enhancing depends on the degree of complementarity and substitution between FDI and domestic investment.
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Can Foreign Aid Buy Growth
TL;DR: The idea that "aid buys growth" is on shaky ground theoretically and empirically as discussed by the authors, and it doesn't help that aid agencies face poor incentives to deliver results and underinvest in enforcing aid conditions and performing scientific evaluations.
References
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Equipment Investment and Economic Growth: How Strong Is the Nexus?
TL;DR: For example, the authors of as discussed by the authors argue that most of the differences in growth are due not to differences in measured investments, but to a "residual," total factor productivity (TFP), which produces what Solow calls "investment pessimism": radical policy changes that have large effects on investment and other resource allocations have little effect on long run growth.
Book
The Econometric Analysis of Time Series - 2nd Edition
TL;DR: The Econometric Analysis of Time Series focuses on the statistical aspects of model building, with an emphasis on providing an understanding of the main ideas and concepts in econometrics rather than presenting a series of rigorous proofs.