Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective…
Abstract
Economists have recently emphasized the role which institutional change plays in the process of economic growth and development. Focusing on the behavior of the state, effective constraints on the ruling elite are seen as a necessary precursor to successful economic growth. However, it is argued in this paper that causality runs the other way. Rapid growth (even with dictatorial regimes) leads to political development and institutional structures which provide a foundation for successful long‐term growth. It will be further argued that the greatest potential for stimulating political development comes as the result of rapid agricultural growth. The institutional constraints arising out of political development create an environment within which the ruling elite become developmental rather than predatory. The cases of English and Japanese industrialization will be used to illustrate these ideas. The relevance of the analyses for today's developing countries is discussed and illustrated with reference to the African experience.
The purpose of this paper is to analyze the impact that slow growth in staple food productivity can have on the process of structural change and, more importantly, on the…
Abstract
Purpose
The purpose of this paper is to analyze the impact that slow growth in staple food productivity can have on the process of structural change and, more importantly, on the development of labor intensive industry.
Design/methodology/approach
A theory of a semi-open economy is developed to analyze the role of staple food productivity on structural change. A case study is used to illustrate the workings of the model.
Findings
Slow growth in food staple productivity will mean that even when labor is physically abundant, it will not be economically cheap. Thus it will be extremely difficult to promote the expansion of labor intensive manufacturing. The key to rapid structural change is rapid growth in food staple productivity.
Practical implications
Investment in raising agricultural productivity is critical in the development of labor intensive manufacturing.
Social implications
Rapid growth can occur without leading to structural change. The bulk of the population remains locked in the rural sector.
Originality/value
The food sector is shown to be largely non-tradable. As a result solving the food problem domestically is crucial for structural change and economic development. Labor intensive manufacturing needs relatively cheap labor. For labor to be cheap, agricultural productivity (food staples) must rise rapidly.
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The purpose of the paper is to determine why premature deindustrialization is occurring in many developing countries.
Abstract
Purpose
The purpose of the paper is to determine why premature deindustrialization is occurring in many developing countries.
Design/methodology/approach
A theoretical structure for explaining premature deindustrialization is utilized. Then the comparative experiences of a number of developing countries are used to illustrate the operation of the theory.
Findings
The results indicate that increasing inequality among a number of developing countries has reduced the domestic market for labor intensive manufactured goods, resulting in stagnation in manufacturing. Also, the increasing inequality in developed countries has reduced international demand for labor intensive manufacturing. Thus developing countries have fewer opportunities to export labor intensive manufacturing.
Research limitations/implications
Data on inequality is limited and it is very difficult to determine causality. However, intuition indicates that causality is most likely bi-directional.
Practical implications
Strategies of economic development must concern themselves with the effects that increasing inequality will likely have on the development of labor intensive manufacturing.
Social implications
Social programs that bolster the purchasing power of poor families are likely to be important (social safety net). Broad-based agricultural growth will provide a basis for labor intensive manufacturing.
Originality/value
The originality stems from the linking of deindustrialization with rising inequality.
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This paper reviews the theoretical case for industrial policy (coordination) provided by theories of multiple equilibria. It is argued that for most less developed countries the…
Abstract
This paper reviews the theoretical case for industrial policy (coordination) provided by theories of multiple equilibria. It is argued that for most less developed countries the case for industrial policy (government coordination) is best made with respect to agriculture. Those states that have succeeded in terms of government policy promoting economic development, began with the agricultural sector.
This paper argues that one must be careful in drawing lessons from the development experience of East and Southeast Asia. The economic strategy followed by these countries was not…
Abstract
This paper argues that one must be careful in drawing lessons from the development experience of East and Southeast Asia. The economic strategy followed by these countries was not one of free trade, or even simulated free trade. Instead, in these countries key conditions were created which provided hospitable environments for investment coordination. It was the ensuing boom in investment which generated rapid economic development. The current economic problems of this region are not the result of corrupt states or crony capitalism, none of which are new to the region, but the result of an inability to engage in economic restructuring
Sharmistha Self and Richard Grabowski
The purpose of this paper is to seek to empirically analyze whether the impact of Islam on relative gender performance varies by regions of the non‐Arabic world's economy. In…
Abstract
Purpose
The purpose of this paper is to seek to empirically analyze whether the impact of Islam on relative gender performance varies by regions of the non‐Arabic world's economy. In addition, if in some regions Islam is found to have a negative impact on relative gender performance, an attempt is made to determine what aspect of Islamic practice (not doctrine) might account for this impact.
Design/methodology/approach
The empirical estimations are carried out in a cross‐country framework.
Findings
The results indicate that the impact of Islam varies by region, for the most part being associated with a worsening in relative gender performance. However, once it accounts for differences in birth rates, the negative impact of Islam on gender inequality disappears for all regions.
Research limitations/implications
Fewer variations in the data limit the estimation procedures one can use for the purpose of the analysis.
Practical implications
Contrary to the consensus in the literature, the paper finds that it is not Islam that worsens gender inequality but rather the high fertility rates generally found among followers of Islam.
Originality/value
The paper is unique in its focusing exclusively on non‐Arab countries.
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This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages…
Abstract
This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages, reserve army, and capital accumulation in his investigation of economic development. The Lewis 1954 development model is compared to other models advanced at the time by Harrod, Domar, Swan, Kaldor, Solow, von Neumann, Nurkse, Rosenstein-Rodan, Myint, and others. Lewis applied the notion of economic duality to open and closed economies.
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The purpose of this paper is to analyze those conditions which determine whether the state will be developmental or predatory.
Abstract
Purpose
The purpose of this paper is to analyze those conditions which determine whether the state will be developmental or predatory.
Design/methodology/approach
A theoretical model is developed to analyze those factors influencing state policy towards agriculture. Then the historical experiences of China, Japan, and Sub‐Saharan Africa are used to illustrate the workings of the model.
Findings
A necessary condition for growth promoting (poverty reducing) policy reforms, with respect to agriculture, is that a technological backlog must exist in agriculture.
Practical implications
International organizations can play an important role in helping to create the necessary condition for effective reform. Significant investment in regional agricultural research institutions must be made so as to create a technological backlog in agriculture.
Social implications
Investment in agricultural research has been declining. Thus, the availability of new technology has lessened. This poses an obstacle to rapid growth and poverty reduction. This paper seeks to refocus the attention of policy makers on agriculture.
Originality/value
This paper develops a theory to explain how and when states in developing countries are likely to become developmental. The ideas are illustrated by the experiences of parts of Asia and Sub‐Saharan Africa. These results will be useful to domestic policy makers in developing countries as well as the policy makers in international organizations.
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The Asian crisis, which exploded in Thailand in July 1997 initially, spilled to the other ASEAN countries (Indonesia, Malaysia, and Philippines) and later it spreads to Korea and…
Abstract
The Asian crisis, which exploded in Thailand in July 1997 initially, spilled to the other ASEAN countries (Indonesia, Malaysia, and Philippines) and later it spreads to Korea and even crossing the continent to Russia and Brazil. The chronological pattern seems to indicate the contagious behaviour of the crisis. However, the sequential economic down‐turns that occurred in the Asia Pacific do look like a contagion effect. The idea that currency speculators contributed to the depth of the crisis is agreeable but to conclude that they are the roots of the problem would be misleading. This paper argued that the roots of the problems lie in current account deficit and loss of competitiveness, and moral hazard and over‐investment This paper also argued that the currency crisis is a symptom and not the cause of the Asian crisis.
Jesse Lee Brown and Tyechia Veronica Paul
Case information was mainly acquired through interviews with Richard Gammans, chief operating officer. Dr Gammans was a visiting professor at Fayetteville State University for a…
Abstract
Research methodology
Case information was mainly acquired through interviews with Richard Gammans, chief operating officer. Dr Gammans was a visiting professor at Fayetteville State University for a year, and two of the case authors developed personal friendships with Richard. Interviews were conducted over a two-year period as the accelerator got started. In addition, one author conducted a team-building session with the management team and one of the bio-startup researchers. An interview was also conducted with Clayton Duncan, chief executive officer, to gain his agreement with developing the case.
The Accele website included a write-up on each of the pharmaceutical startup companies. The write-up included a company summary, description of the science (disease and cure), the size of the market, results from testing, regulatory considerations and intellectual property. A literature review was conducted as the basis for the information on the pharmaceutical industry.
Case overview/synopsis
This case is about a biopharmaceutical accelerator founded in 2011 by two senior executives with experience in both large pharmaceutical companies and running biotech startup companies. The founders were successful in raising capital to start their first venture capital fund which they used to invest in four biotech startups. All four startups were working in very different disease areas. For example, one developed a drug to help with hearing loss that the department of defense was funding. Another of the startups discovered drug candidates that attack antibiotic-resistant bacteria. Biopharmaceutical accelerators were relatively new. They differed from business incubators because they invest in the startups and provide operational support, but the degree of support provided varies across accelerators. The Accele BioPharma accelerator operated in virtual, network type of organization, and Accele BioPharma provided primary strategic and operational management for the startups. The challenge in this case is to identify how the leaders managed the virtual network, and what additional resources were needed so that the management team could expand their ability to assist startups to get drugs approved by the food and drug administration.
Complexity academic level
This case is suitable recommended for undergraduate/graduate strategy, undergraduate/graduate organizational behavior, entrepreneurship and health-care management courses.