4 research outputs found
Recommended from our members
Productivity growth of the cities of Jiangsu province, China: a Kaldorian approach
© 2017 Informa UK Limited, trading as Taylor & Francis Group This paper considers the determinants of economic growth of the cities of Jiangsu province, China, adopting a Kaldorian approach. It is found that there is a close correlation between the growth of non-industry and industry (Kaldor’s first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldor’s second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the static–dynamic Verdoorn law paradox. This arises from the fact that estimating the Verdoorn law in log-levels often gives statistically insignificant estimates of the Verdoorn coefficient while the use of growth rates gives significant values of around one half. The results show that this does not occur when data for the cities are used. A plausible explanation for the paradox is that it results from spatial aggregation bias. It is also found that inter-province urban productivity disparities first increase, but subsequently decrease over the period considered
Capital Controls and the Icelandic Banking Collapse: an Assessment
This is the author accepted manuscript. The final version is available from Palgrave Macmillan via https://doi.org/10.1007/978-3-319-41219-1_6This paper reassesses the causes and consequences of the Icelandic banking collapse of 2008. It examines the reasons behind the rapid growth of the recently privatized banks over the subsequent few years, the lack of prudential regulation and the high risk loan strategy of the banks. These, together with the inevitable failure of the Central Bank of Iceland to act as a lender of last resort of foreign currency, made the collapse of the financial system almost inevitable. The IMF was called in and a notable aspect of its rescue package was the imposition of capital controls. This can be seen as the culmination of a secular change of the IMF’s attitude to the regulation of cross-border financial flows. The paper presents an assessment of how effective this strategy has been. It concludes with a more general discussion of the political economy of capital controls
Recommended from our members
Kaldor's 'technical progress function' and Verdoorn's law revisited
Kaldor put forward his technical progress function as an alternative to the neoclassical aggregate production function. It is shown that Verdoorn’s law is its empirical counterpart, although allowing for increasing returns to scale. However, both may be derived from an aggregate Cobb-Douglas production function. But aggregation problems and the Cambridge capital theory controversies have shown theoretically that aggregate production functions in all probability do not exist. Moreover, the only reason that estimations of ‘aggregate production functions’ give good results is the existence of an accounting identity. This article reconsiders the technical progress function and Verdoorn’s law, especially in the light of these problems. Nevertheless, it is shown that estimates of the law do, in fact, provide insights into the growth process very similar to those of Kaldor, but viewed from another perspective.This is the author accepted manuscript. The final version is available from Oxford University Press via https://doi.org//10.1093/cje/bev03
Recommended from our members
Productivity growth of the cities of Jiangsu province, China: a Kaldorian approach
© 2017 Informa UK Limited, trading as Taylor & Francis Group This paper considers the determinants of economic growth of the cities of Jiangsu province, China, adopting a Kaldorian approach. It is found that there is a close correlation between the growth of non-industry and industry (Kaldor’s first law) that provides indirect evidence for the export-base theory. The paper discusses two competing explanations of the foundations of the Verdoorn law (Kaldor’s second law), which, in its simplest form, is the relationship between industrial productivity and output growth. It also considers the static–dynamic Verdoorn law paradox. This arises from the fact that estimating the Verdoorn law in log-levels often gives statistically insignificant estimates of the Verdoorn coefficient while the use of growth rates gives significant values of around one half. The results show that this does not occur when data for the cities are used. A plausible explanation for the paradox is that it results from spatial aggregation bias. It is also found that inter-province urban productivity disparities first increase, but subsequently decrease over the period considered