IDEAS home Printed from https://ideas.repec.org/a/fip/fedder/y1993iaprp25-40.html
   My bibliography  Save this article

What determines economic growth?

Author

Listed:
  • David M. Gould
  • Roy J. Ruffin

Abstract

Does increased investment in education enhance long-run economic growth, or does it simply reduce current consumption? Will free trade stimulate growth, or will it merely increase imports? ; For a long time, economists relied on an economic growth theory that offered little scope for understanding long-run growth movements. Recently, however, the study of economic growth has been reinvigorated by new developments in theory and empirical findings that suggest how long-run growth evolves. ; Because economic growth determines whether our grandchildren will have better lives than ours or whether poor nations will catch up with or fall further behind rich nations, David Gould and Roy Ruffin investigate recent lessons learned about growth and apply them to the above issues. Gould and Ruffin report on recent research suggesting that investment, particularly human capital investment, increases economic growth. They also investigate evidence showing that political stability, well-defined property rights, low trade barriers, and low government consumption expenditures enhance growth through positive effects on investment.

Suggested Citation

  • David M. Gould & Roy J. Ruffin, 1993. "What determines economic growth?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Apr, pages 25-40.
    • Handle: RePEc:fip:fedder:y:1993:i:apr:p:25-40
    as

    Download full text from publisher

    File URL: https://www.dallasfed.org/~/media/documents/research/er/1993/er9302b.pdf
    File Function: Full Text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Quah, D., 1990. "Galton'S Fallacy And The Tests Of The Convergence Hypothesis," Working papers 552, Massachusetts Institute of Technology (MIT), Department of Economics.
    2. Garey Ramey & Valerie A. Ramey, 1991. "Technology Commitment and the Cost of Economic Fluctuations," NBER Working Papers 3755, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ford, John B. & Karande, Kiran W. & Seifert, Bruce M., 1998. "The role of economic freedom in explaining penetration of consumer durables," Journal of World Business, Elsevier, vol. 33(1), pages 69-86.
    2. Niles Hansen, 1995. "Regional Science, Regional Policy, and the “New†Regional Economics: Future Possibilities in Historical Perspective," International Regional Science Review, , vol. 17(3), pages 337-342, July.
    3. Rohman, Ibrahim Kholilul, 2013. "The globalization and stagnation of the ICT sectors in European countries: An input-output analysis," Telecommunications Policy, Elsevier, vol. 37(4), pages 387-399.
    4. Ghazouani KAMEL, 2005. "Growth, private investment and reforms : A comparative perspective," GE, Growth, Math methods 0507012, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin, Philippe & Ann Rogers, Carol, 2000. "Long-term growth and short-term economic instability," European Economic Review, Elsevier, vol. 44(2), pages 359-381, February.
    2. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    3. Sebastian Weber, 2009. "European Financial Market Integration: A Closer Look at Government Bonds in Eurozone Countries," Working Paper / FINESS 1.1b, DIW Berlin, German Institute for Economic Research.
    4. JOrge Alonso Lotero Contreras & Sergio Restrepo & Liliana Yaned Franco Vásquez, 2000. "Modelos de desarrollo y convergencia interregional de la productividad industrial en Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 52, pages 51-85, Enero Jun.
    5. Wang, Ke & Yang, Kexin & Wei, Yi-Ming & Zhang, Chi, 2018. "Shadow prices of direct and overall carbon emissions in China’s construction industry: A parametric directional distance function-based sensitive estimation," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 180-193.
    6. Phiri, Andrew, 2018. "Is Swaziland on a path of convergence towards her main trading partners?," MPRA Paper 88790, University Library of Munich, Germany.
    7. Vos, Rob & Frenkel, Roberto & Ocampo, José Antonio & Palma, José Gabriel & Marfán, Manuel & Ros, Jaime & Taylor, Lance & Correa, Nelson & Cimoli, Mario, 2005. "Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability," IDB Publications (Books), Inter-American Development Bank, number 347.
    8. Mulder, Peter & de Groot, Henri L.F. & Pfeiffer, Birte, 2014. "Dynamics and determinants of energy intensity in the service sector: A cross-country analysis, 1980–2005," Ecological Economics, Elsevier, vol. 100(C), pages 1-15.
    9. James Proudman & Stephen Redding & Marco Bianchi, 1997. "Is International Openness associated with faster economic growth?," Bank of England working papers 63, Bank of England.
    10. Ramesh Chandra Das & Soumyananda Dinda & Frank Martin, 2018. "Defence Outlays Across Countries: Are They Converging?," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(1), pages 109-129, June.
    11. K Blackburn & A Pelloni, 2001. "On the Relationship Between Growth and Volatility in Learning-by-Doing Economies," Centre for Growth and Business Cycle Research Discussion Paper Series 01, Economics, The University of Manchester.
    12. Carlos Mendez & Felipe Santos‐Marquez, 2021. "Regional convergence and spatial dependence across subnational regions of ASEAN: Evidence from satellite nighttime light data," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1750-1777, December.
    13. Michelacci, Claudio & Zaffaroni, Paolo, 2000. "(Fractional) beta convergence," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 129-153, February.
    14. Victor Zarnowitz, 1997. "Business Cycles Observed and Assessed: Why and How They Matter," NBER Working Papers 6230, National Bureau of Economic Research, Inc.
    15. Catherine Fuss, 1999. "Mesures et tests de convergence : une revue de la littérature," Revue de l'OFCE, Programme National Persée, vol. 69(1), pages 221-249.
    16. Frederick van der Ploeg & Steven Poelhekke, 2007. "Volatility, Financial Development and the Natural Resource Curse," Economics Working Papers ECO2007/36, European University Institute.
    17. Kounetas, Konstantinos & Stergiou, Eirini, 2019. "Examining eco-efficiency convergence of European Industries.The existence of technological spillovers within a metafrontier framework," MPRA Paper 94286, University Library of Munich, Germany.
    18. David Shepherd & Robert Dixon, 2008. "The Cyclical Dynamics and Volatility of Australian Output and Employment," The Economic Record, The Economic Society of Australia, vol. 84(264), pages 34-49, March.
    19. Geert Bekaert & Campbell R. Harvey & Christian Lundblad, 2004. "Does Financial Liberalization Spur Growth?," Working Paper Research 53, National Bank of Belgium.
    20. Zhao, Xueting & Burnett, J. Wesley & Lacombe, Donald J., 2014. "Province-level Convergence of China CO2 Emission Intensity," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169403, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Economic development; Human capital;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedder:y:1993:i:apr:p:25-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Amy Chapman (email available below). General contact details of provider: https://edirc.repec.org/data/frbdaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.