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Эволюционная Теория Экономической Политики: Часть Ii: Необходимость Своевременного Переключения
[The Evolutionary Theory of Economic Policy: Part II: The Necessity of Timely Switching]

Author

Listed:
  • Polterovich, Victor
  • Popov, Vladimir

Abstract

This is the second part of the work on how economic policy of a developing country should change as it approaches the level of developed economies in terms of welfare (GDP per capita) and the quality of institutions. We focus on the impact of several policies to promote the catch up development: the speed of foreign exchange reserves accumulation ("exchange rate protectionism"); import tariffs; measures to attract foreign direct investment; import of technology versus indigenous R&D; regulation of migration and measures to support large versus small enterprises. The econometric analysis of the data on over 200 countries in 1975—1999 shows that the impact of these policies may be positive or negative depending on a stage of development; in each case we find threshold levels or critical combinations of GDP per capita and/or an institutional quality indicator. Thus, there is additional evidence to support the conclusions made in the first part of the article and based on the analysis of the evolution of economic policies in the Western countries and in the countries of successful catch up development ("economic miracles").

Suggested Citation

  • Polterovich, Victor & Popov, Vladimir, 2006. "Эволюционная Теория Экономической Политики: Часть Ii: Необходимость Своевременного Переключения [The Evolutionary Theory of Economic Policy: Part II: The Necessity of Timely Switching]," MPRA Paper 22170, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22170
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    References listed on IDEAS

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    1. Nolan, Peter, 1996. "Large Firms and Industrial Reform in Former Planned Economies: The Case of China," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 20(1), pages 1-29, January.
    2. Jeffrey G. Williamson, 2002. "Winners and Losers Over Two Centuries of Globalization," NBER Working Papers 9161, National Bureau of Economic Research, Inc.
    3. R. M. Auty, 1997. "Competitive industrial policy and macro performance: Has South Korea outperformed Taiwan?," Journal of Development Studies, Taylor & Francis Journals, vol. 33(4), pages 445-463.
    4. Wellisch, Dietmar & Walz, Uwe, 1998. "Why do rich countries prefer free trade over free migration? The role of the modern welfare state," European Economic Review, Elsevier, vol. 42(8), pages 1595-1612, September.
    5. Polterovich, Victor & Popov, Vladimir, 2003. "Accumulation of Foreign Exchange Reserves and Long Term Growth," MPRA Paper 20069, University Library of Munich, Germany.
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    Cited by:

    1. Simachev, Yuri & Kuzyk, Mikhail & Ivanov, Denis, 2012. "Fostering innovation in Russian companies in the post-crisis period: Opportunities and constraints," MPRA Paper 41284, University Library of Munich, Germany.
    2. Zaytsev, Alexander, 2015. "Межстрановые Различия В Душевых Ввп И Производительности Труда: Роль Капитала, Уровня Технологий И Природной Ренты [International differences in per capita GDP and labor productivity: role of capit," MPRA Paper 71606, University Library of Munich, Germany, revised May 2016.

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    More about this item

    Keywords

    development; economic growth; institutions; economic miracles;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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