Diagnosing Human Capital as a Binding Constraint to Growth

Diagnosing Human Capital as a Binding Constraint to Growth

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  • Author: Miguel Angel Santos
  • Publisher: Cambridge University Press
  • ISBN: 110898231X
  • Category : Business & Economics
  • Languages : en
  • Pages : 72

The empirical literature on the contributions of human capital investments to economic growth shows mixed results. While evidence from OECD countries demonstrates that human capital accumulation is associated with growth accelerations, the substantial efforts of developing countries to improve access to and quality of education, as a means for skill accumulation, did not translate into higher income per capita. In this Element, we propose a framework, building on the principles of 'growth diagnostics', to enable practitioners to determine whether human capital investments are a priority for a country's growth strategy. We then discuss and exemplify different tests to diagnose human capital in a place, drawing on the Harvard Growth Lab's experience in different development context, and discuss various policy options to address skill shortages.


Identifying Binding Constraints to Growth

Identifying Binding Constraints to Growth

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  • Author: Mr.Mauricio Vargas
  • Publisher: International Monetary Fund
  • ISBN: 1498365051
  • Category : Business & Economics
  • Languages : en
  • Pages : 48

As emphasized by Hausmann, Rodrik and Velasco, the policy challenge of boosting growth requires prioritization and identifying what are the most binding constraints. This paper draws on firm-level data from the World Bank Enterprise Survey, which suggests that the obstacles for the functioning of firms is related to firm size. Recognizing the potential endogeneity and simultaneity between firms' constraints and firm size, we implement an Ordered-Probit model with a potential categorical endogenous regressor to estimate, for the case of Bolivia, the conditional probability of facing obstacles given the firm size category, while controlling for other factors. The results confirm the importance of allowing for the roles of firm size in identifying constraints and suggest priorities for policies to remove constraints to economic performance.


The Atlas of Economic Complexity

The Atlas of Economic Complexity

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  • Author: Ricardo Hausmann
  • Publisher: MIT Press
  • ISBN: 0262317737
  • Category : Business & Economics
  • Languages : en
  • Pages : 369

Maps capture data expressing the economic complexity of countries from Albania to Zimbabwe, offering current economic measures and as well as a guide to achieving prosperity Why do some countries grow and others do not? The authors of The Atlas of Economic Complexity offer readers an explanation based on "Economic Complexity," a measure of a society's productive knowledge. Prosperous societies are those that have the knowledge to make a larger variety of more complex products. The Atlas of Economic Complexity attempts to measure the amount of productive knowledge countries hold and how they can move to accumulate more of it by making more complex products. Through the graphical representation of the "Product Space," the authors are able to identify each country's "adjacent possible," or potential new products, making it easier to find paths to economic diversification and growth. In addition, they argue that a country's economic complexity and its position in the product space are better predictors of economic growth than many other well-known development indicators, including measures of competitiveness, governance, finance, and schooling. Using innovative visualizations, the book locates each country in the product space, provides complexity and growth potential rankings for 128 countries, and offers individual country pages with detailed information about a country's current capabilities and its diversification options. The maps and visualizations included in the Atlas can be used to find more viable paths to greater productive knowledge and prosperity.


Papua New Guinea: Critical Development Constraints

Papua New Guinea: Critical Development Constraints

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  • Author: Asian Development Bank
  • Publisher: Asian Development Bank
  • ISBN: 9290925825
  • Category : Business & Economics
  • Languages : en
  • Pages : 242

Papua New Guinea's economic growth has outpaced the majority of economies in Southeast Asia and the Pacific since 2007. Its development challenges, however, remain daunting, and it lags behind other countries in the region in terms of per capita income and achievement of the Millennium Development Goals. This raises the question of how the country can make its economic growth high, sustained, inclusive, and broad-based to more effectively improve its population's welfare. This report identifies the critical constraints to these objectives and discusses policy options to help overcome such constraints.


Diagnosing the Philippine Economy

Diagnosing the Philippine Economy

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  • Author: Dante B. Canlas
  • Publisher: Anthem Press
  • ISBN: 085728939X
  • Category : Business & Economics
  • Languages : en
  • Pages : 362

‘Diagnosing the Philippine Economy’ describes the conditions that depress economic growth in the Philippine economy and their causes and potential solutions. The studies’ findings provide insight for politicians, academicians, and economists into the issues and their potential solutions.


The Paradox of Gender Equality and Economic Outcomes in Sub-Saharan Africa

The Paradox of Gender Equality and Economic Outcomes in Sub-Saharan Africa

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  • Author: Evelyn F. Wamboye
  • Publisher: Cambridge University Press
  • ISBN: 1009371894
  • Category : Business & Economics
  • Languages : en
  • Pages : 90

This Element highlights the idea that men and the society at large will benefit with women owning land. Land ownership by women improves their bargaining power and enhances their ability to survive outside unproductive power structure or gender relationships.


Can BRICS De-dollarize the Global Financial System?

Can BRICS De-dollarize the Global Financial System?

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  • Author: Zongyuan Zoe Liu
  • Publisher: Cambridge University Press
  • ISBN: 1009034111
  • Category : Business & Economics
  • Languages : en
  • Pages : 139

Existing scholarship has not systematically examined BRICS (Brazil-Russia-India-China-South Africa) as a rising power de-dollarization coalition, despite the group developing multiple de-dollarization initiatives to reduce currency risk and bypass US sanctions. To fill this gap, this study develops a 'Pathways to De-dollarization' framework and applies it to analyze the institutional and market mechanisms that BRICS countries have created at the BRICS, sub-BRICS, and BRICS Plus levels. This framework identifies the leaders and followers of the BRICS de-dollarization coalition, assesses its robustness, and discerns how BRICS mobilizes other stakeholders. The authors employ process tracing, content analysis, semi-structured interviews, archival research, and statistical analysis of quantitative market data to analyze BRICS activities during 2009-2021. They find that BRICS' coalitional de-dollarization initiatives have established critical infrastructure for a prospective alternative nondollar global financial system. This title is also available as Open Access on Cambridge Core.


Harnessing Sovereign Wealth Funds in Emerging Economies toward Sustainable Development

Harnessing Sovereign Wealth Funds in Emerging Economies toward Sustainable Development

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  • Author: Mona Mostafa El-Sholkamy
  • Publisher: Cambridge University Press
  • ISBN: 100919819X
  • Category : Business & Economics
  • Languages : en
  • Pages : 134

Sovereign Wealth Funds are government investment vehicles that have been present for decades. They are usually characterized by minimum information disclosure, however, this situation differed after worldwide events shed light on the role they possess to mitigate their downturns. The substantial economic influence they bring along due to their size and long term impact have recently created an uproar of debate that eventually led to the ratification of the Santiago Principles. The Principles set the stage for governing SWFs' operations and grant them more clarity. They also contribute to a more stable environment for cross-border investment flows. With the importance of SWFs, emerging economies also rose as key institutional investors; only this time they called for harnessing their funds towards sustainable development investment strategies. Despite pressuring need to improve transparency and governance structures of SWFs in EMs, the former are regarded as promising means for achieving the sustainable development goals.


Diagnosing the Philippine Economy

Diagnosing the Philippine Economy

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  • Author: Dante B. Canlas
  • Publisher: Anthem Press
  • ISBN: 0857289942
  • Category : Business & Economics
  • Languages : en
  • Pages : 361

'Diagnosing the Philippine Economy' describes the conditions that depress economic growth in the Philippine economy and their causes and potential solutions. The studies' findings provide insight for politicians, academicians, and economists into the issues and their potential solutions.


Human Capital Development in South Asia

Human Capital Development in South Asia

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  • Author: Asian Development Bank
  • Publisher: Asian Development Bank
  • ISBN: 9292610392
  • Category : Business & Economics
  • Languages : en
  • Pages : 302

Human capital is an important factor for economic growth in South Asia. Between 1981 and 2010, human capital contributed about 22% of annual gross domestic product per worker growth in India. During the same period, it contributed around 21% in Bangladesh, and 16% in Sri Lanka. However, education and skills remain the binding constraint. Raising the quality of education and skills in South Asia's workforce can play a critical role in catching up to the level of development of the People's Republic of China, the Republic of Korea, and other successful Southeast Asian economies. This study reviews the development of human capital in South Asia and analyzes contributing factors to human development including policies and strategies that countries in South Asia follow.