Economic Performance in a Cross-Section of U.S. Native American Economies

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Economic Performance in a Cross-Section of U.S. Native American Economies

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Voxi Heinrich S Amavilah (Glendale College & REEPS)

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Voxi Heinrich S Amavilah

Abstract

Institutions either promote or constrain economic performance, but which parts of institutions advance or restrict performance, and why do economies sharing similar institutions sometimes perform differently? This paper is a modest attempt at addressing a small part of these questions. It applies a novel model that is capable of separating infrastructural and superstructural effects of institutions on aggregate and average income across 84 U.S. Native American economies (USNAEs). It finds that USNAEs have much in common with developing countries inasmuch as their aggregate and average incomes depend mainly on the accumulation of physical capital and exogenously-given labor. However, resources and resource productivity are necessary but insufficient determinants of income for institutional reasons. Because of the apparent scarcity of physical capital, infrastructures that aid human capital formation (schools, hospitals, and the like) are inadequate, so that even when the local superstructure is generally accepting of external technology, the impact of human capital on performance remains modest. Clearly infrastructural and superstructural aspects of institutions are competitive rather than complementary, which weakens the Nelson-Phelps channel for transmitting external technology into USNAEs. One obvious policy implication is to improve extant infrastructures; another is to align the competing forces. How best to go ahead is left to further investigations.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0405003.

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Length: 39 pages
Date of creation: 10 May 2004
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Handle: RePEc:wpa:wuwpge:0405003

Note: Type of Document - wpd; pages: 39. Comments will be appreciated.
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Find related papers by JEL classification:
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications
P47 - Economic Systems - - Other Economic Systems - - - Performance and Prospects
P47 - Economic Systems - - Other Economic Systems - - - Performance and Prospects
P17 - Economic Systems - - Capitalist Systems - - - Performance and Prospects
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-05-26 (All new papers)
NEP-GEO-2004-05-26 (Economic Geography)

Cited by:
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Voxi Heinrich Amavilah, 2005. "Solow and the Native Americans: Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0505008, EconWPA. [Downloadable!]
Voxi Heinrich Amavilah, 2004. "Apparent Solow- and Solow-like Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0406004, EconWPA. [Downloadable!]

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