This article proposes a complementary explanation for why oil-rich economies have experienced a relative low GDP growth over the last decades: the proportion of taxes in the prices of petroleum products have been globally increasing in the last four decades, making oil revenues grow slower than...

Government efficiency plays a significant role in the relationship between government expenditure and economic growth. Based on panel data from 63 developing countries 1990 to 2003, we calculate efficiency scores using Data Envelopment Analysis, incorporate them into a simple model of growth...

This work analyses the influence of economic variables, poverty and armed conflict on violence in Colombia. For this purpose, a time series method is used to analyse economic and social data through which different long-term coefficients are estimated in order to determine the effects of these...

The paper constructs a two-sector model of endogenous growth for a Mixed Economy characterized by two private inputs, labor and capital, and the services of an accumulable pure public input (of which an important example is infrastructure). Final goods are produced by a competitive private...

To the layperson, the upward trend in European unemployment is related to the slowdown in economic growth. We argue that the layperson’s view is correct. The increase in European unemployment and the slowdown in economic growth are related because they stem from a common cause: an excessively...

This is an attempt to derive broad, strategic lessons from the diverse experience with economic growth in last 50 years. The paper revolves around two key arguments. One is that neo-classical economic analysis is a lot more flexible than its practitioners in the policy domain have generally...

This paper offers new tests of the `convergence hypothesis'. It first analyses the pattern of growth of measured inputs (human and physical capital conventionally measured by an inventory method) and shows that these tests sustain the hypothesis. On the other hand, when the pattern of growth of...

The topic of economic growth and convergence of countries has been an active topic in the 1990's. This paper investigates the question of whether there is any empirical evidence that countries are converging, with respect to their relative incomes, over time. To test for convergence, the...

Some channels through which increased inflation tends to reduce economic growth, and vice versa, are studied within a simple model incorporating money into an optimal growth framework with constant returns to capital. The model includes the potential impact of inflation on: (a) saving through...

Broadly speaking, European integration affects growth by stimulating the accumulation of physical capital and/or knowledge capital (i.e. technology). This paper surveys existing empirical work on integration and growth concluding that there is strong evidence that trade liberalization promotes...