DECOLONIZATION AND ECONOMIC GROWTH: THE CASE OF AFRICA

This paper examines growth rates of real GDP per capita during decolonization in sub-Saharan Africa. For each period considered, I divide the sample between those countries that gained independence during the period and those that either remained colonies or were already independent. These newly independent countries grew slower than the control group. However, a more refined categorization shows that decolonizers grew slower than those that received their independence previously but did not grow slower than those that remained colonies. Thus, whether or not one perceives a cost of decolonization depends on what one uses as the control group.Sub-Saharan Africa, Economic Growth, Decolonization

Historical legacy and institutions across countries

Several recent theories postulate why some countries were able to devise institutions conducive to long-run economic growth whereas others were not. Most of these consider various historical factors or geographic characteristics as important predeterminants. But which of these theories comes closest to the truth? This paper simultaneously considers several competing theories and empirically examines which ones provide the strongest explanations for contemporary institutions. I find that settler mortality rates are strongly associated with contemporary institutions even when controlling for other important historical factors, including ones from theories that do not emphasize geographic characteristics. However, Englebert’s concept of state legitimacy does best at explaining institutional outcomes within sub-Saharan Africa.institutions, colonial legacy

INCOME INEQUALITY AND POPULATION DENSITY 1500 AD: A CONNECTION

Using a cross section of countries, this paper examines the association between regional population densities in 1500 AD and current income inequality. After controlling for other regional and historical factors, I find that past population density is negatively associated with income inequality today. Formerly high density regions are predicted to have lower income inequality. These findings support the view that higher density areas were better able to form more diverse and mobile societies that affected the long-run distribution of income.Income Inequality, Population Density

Symmetry of shocks across China: a VAR approach

This paper examines how similar shocks are across Chinese regions from 1978 to 2009. Using a SVAR with GDP growth and inflation as dependent variables, we identify the model assuming demand shocks have no long-run effect upon output. We find that both supply and demand shocks are more correlated within China than are their counterparts within Europe or the U.S. as reported in similar studies. Moreover, demand shocks are more strongly correlated than are supply shocks. Output and prices also respond similarly to shocks.China, SVAR

U.S. and Latin American Stock Market Linkages

This paper examines whether the Latin American equity markets of Argentina, Brazil, Chile and Mexico have become more integrated with the US equity market. We empirically measure integration by finding the dynamic conditional correlation (DCC) between each market and that in the U.S. using a DCC multivariate GARCH model. We then track how these correlations evolve over time using a smooth transition model which can not only show when greater integration first occurs but also how long it takes these correlations to transition to their new levels. Our sample period stretches from December 30th, 1988 to March 26th, 2004. Results show an increase in the degree of market integration between these countries and the U.S. Moreover, we find that the beginning of rapid integration coincides with the beginning of economic liberalization for Argentina and Brazil. For Mexico and Chile we find that the period of rapid integration is within the period of increasing bilateral trade

Do the Effects of Corruption upon Growth Differ across Political Regimes?

Many studies find that corruption lowers economic growth. However, most of these studies do not consider whether the effects of corruption upon growth differ across countries. This paper investigates whether the association between corruption and economic growth differs between democracies and authoritarian regimes. Consider illegal corruption and legal lobbying, both forms of rent seeking, as imperfect substitutes. Suppose lobbying is easier to do in democracies. Then, lowering corruption in authoritarian regimes could have greater growth benefits because of the lower substitutability between corruption and lobbying in these countries. Using cross-country, annual data from 1984 to 2007, we regress economic growth on: the inverse of the level of corruption, the degree of democracy, and an interaction term combining the two. We find that coefficients are positive on the first two variables. However, the coefficient on the interactive term is negative, suggesting that the benefits upon growth of controlling corruption are actually greater in authoritarian regimes

Semiconductor optical amplifier-based heterodyning detection for resolving optical terahertz beat-tone signals from passively mode-locked semiconductor lasers

An all-optical heterodyne approach based on a room-temperature controlled semiconductor optical amplifier (SOA) for measuring the frequency and linewidth of the terahertz beat-tone signal from a passively mode-locked laser is proposed. Under the injection of two external cavity lasers, the SOA acts as a local oscillator at their detuning frequency and also as an optical frequency mixer whose inputs are the self-modulated spectrum of the device under test and the two laser beams. Frequency and linewidth of the intermediate frequency signal and therefore, the beat-tone signal are resolved by using a photodiode and an electrical spectrum analyze

Anticorruption and Growth: Evidence from China

Many studies have examined corruption’s effect upon economic growth. This study takes a different approach and investigates whether anticorruption campaigns might also lower economic growth, at least in the short run. We focus upon the anticorruption campaigns run by the Communist Party of China in recent years. To measure the intensity of the Party’s anticorruption efforts, we count the number of articles from official newspapers that discuss corruption or anticorruption policies. These official Chinese newspapers are controlled by the Party as its mouthpieces and the inclusion of articles and editorials in these papers only appear with official approval. Therefore, the frequency of corruption and anticorruption articles within these papers provides information for how seriously the Party views corruption and how strenuously the Party is fighting it. We first analyze the patterns of the anticorruption campaigns across provinces and over time while also comparing our measure with other measures of corruption and anticorruption. Using data from Chinese provinces, we then estimate the effect of anticorruption upon economic growth. We employ fixed effects models and find a negative effect from anticorruption upon economic growth. Concerned that economic growth could impact the intensity of anticorruption campaigns, we utilize dynamic GMM estimation methodologies and also propose an external instrument for our anticorruption proxy. Results remained robust. Finally, we measure the effects of anticorruption not by our newspaper proxies but by looking at growth effects during and after the sentencing of high ranking government officials on corruption charges. Economic growth is once again found to be lower. Moreover, this negative effect appears to last for two years. Our findings do not imply that governments should not try to lower corruption, but do suggest a cost of doing so

Anticorruption and Growth: Evidence from China

Many studies have examined corruption’s effect upon economic growth. This study takes a different approach and investigates whether anticorruption campaigns might also lower economic growth, at least in the short run. We focus upon the anticorruption campaigns run by the Communist Party of China in recent years. To measure the intensity of the Party’s anticorruption efforts, we count the number of articles from official newspapers that discuss corruption or anticorruption policies. These official Chinese newspapers are controlled by the Party as its mouthpieces and the inclusion of articles and editorials in these papers only appear with official approval. Therefore, the frequency of corruption and anticorruption articles within these papers provides information for how seriously the Party views corruption and how strenuously the Party is fighting it. We first analyze the patterns of the anticorruption campaigns across provinces and over time while also comparing our measure with other measures of corruption and anticorruption. Using data from Chinese provinces, we then estimate the effect of anticorruption upon economic growth. We employ fixed effects models and find a negative effect from anticorruption upon economic growth. Concerned that economic growth could impact the intensity of anticorruption campaigns, we utilize dynamic GMM estimation methodologies and also propose an external instrument for our anticorruption proxy. Results remained robust. Finally, we measure the effects of anticorruption not by our newspaper proxies but by looking at growth effects during and after the sentencing of high ranking government officials on corruption charges. Economic growth is once again found to be lower. Moreover, this negative effect appears to last for two years. Our findings do not imply that governments should not try to lower corruption, but do suggest a cost of doing so