O - Economic Development, Innovation, Technological Change, and Growth
Economic Development, Innovation, Technological Change, and Growth
Investing in Higher Education has long been viewed as essential to the development process, though attempts to quantify its contribution to the actual growth experience across countries has been unsuccessful. It is over 40 years since the publication of the first edition of Gary Becker’s Human Capital brought analysis of higher education into the mainstream of economic analysis. India invested early and strongly in Higher Education, with the explicit objective of economic development.
The transport network is in many ways the circulatory system of an economy. Yet India’s transportation system remains clogged and underdeveloped after more than a decade of expressed commitments to improve transportation infrastructure by India’s political leaders. India’s transport infrastructure detracts from the country’s competitiveness as a destination for investment and tourism and hampers domestic firms’ competitiveness. Despite expressed good intentions, actual changes in the transport infrastructure have been uneven.
Countries characterized by significant learning inequalities across racial and ethnic groups frequently address them through a quota system in higher education. Using data from India, this paper estimates the effect of quotas on learning, quantifying their cost by comparing outcomes to those obtained under alternative admission rules. It does so by assessing how learning is affected by the mean and variance of classroom ability.
This paper provides a critical analysis of the evolution of India’s engagement at the World Trade Organization (WTO) over the last two decades. The Uruguay Round negotiations resulted in a major overhaul of the multilateral trading system and produced a multilateral bargain that is considered by many developing countries, especially India, to be lop-sided. The paper will consider the impact of this bargain on India’s position at the WTO going forward, especially during the ongoing Doha Round of WTO negotiations that began in 2001.
An extensive theoretical literature generates ambiguous predictions concerning the effects of intellectual property right (IPR) reform on industrial development. The impact depends on whether multinational enterprises (MNEs) expand production in reforming countries and the extent of decline in imitative activity. We examine the responses of U.S.-based MNEs and domestic industrial production to a set of intellectual property rights (IPR) reforms in the 1980s and 1990s. Following reform, MNEs expand the scale of their activities.
This paper develops a North-South product cycle model in which innovation, imitation, and the flow of FDI are all endogenously determined. In the model, a strengthening of IPR protection in the South reduces the rate of imitation and it increases the flow of FDI. Indeed, the increase in FDI more than o¤sets the decline in the extent of production undertaken by Southern imitators so that the South's share of the global basket of goods increases.
This paper documents how the structure of extended family networks in rural Mexico relates to the poverty and inequality of the village of residence. Using the Hispanic naming convention, we construct within-village extended family networks in 504 poor rural villages. Family networks are larger (both in the number of members and as a share of the village population) and out-migration is lower the poorer and the less unequal the village of residence. Our results are consistent with the extended family being a source of informal insurance to its members.
While much attention has been paid to India’s economic growth, the extent of financial inclusion within the country is rarely examined. This paper assesses financial inclusion in India and provides pointers to what can be done to increase inclusion as an important component of India’s overall economic growth strategy. As India’s economy continues to grow and incomes rise, there is an increased need for financial services. There has been considerable improvement in the deepening of the financial system through growth in bank credit and the spread of deposit facilities.
This paper establishes a framework to analyze short-run macroeconomic cycles with intersectoral migrations of agricultural labor in the developing economies. It first defines indicators to measure the migration and finds its cyclical fluctuations combined with business cycles. A model of the labor and commodity markets is set up to investigate equilibrium mechanisms of intersectoral migration as well as fluctuations and adjustments of price and migration in response to shocks.
Economic development in Latin America has trailed most other world regions over the past four decades despite its relatively high initial development and school attainment levels. This puzzle can be resolved by considering the actual learning as expressed in tests of cognitive skills, on which Latin American countries consistently perform at the bottom. In growth models estimated across world regions, these low levels of cognitive skills can account for the poor growth performance of Latin America.