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Physical Capital (physical + capital)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	88%
Humanities and Social Sciences	11%

Selected Abstracts

Measuring Human Capital Like Physical Capital: What Does It Tell Us?

BULLETIN OF ECONOMIC RESEARCH, Issue 3 2002
Ruth Judson
In this paper, I develop a measure of human capital stock that is similar to measuring physical capital by its replacement cost. This measure builds on measures of average educational attainment of the labour force. While it is far from an ideal measure, it is an interesting complement to the educational attainment series and other existing measures of human capital accumulation. In cross,country panel regressions, use of this measure of human capital accumulation yields a positive and significant, but relatively small (about ten per cent) elasticity with percapita GDP growth. Unlike physical capital, the stock of human capital as a share of GDP increases with GDP. This is consistent with the Barro et al. (1995) model of growth with non,mobile human capital and with some predictions of Romer's (1990) model of endogenous growth, but it is not consistent with the predictions of some other growth models. [source]

Trade Liberalization and the Fiscal Squeeze: Implications for Public Investment

DEVELOPMENT AND CHANGE, Issue 3 2003
Barsha Khattry
This article examines the impact of trade liberalization on the level and structure of government expenditures across countries, with particular emphasis on low income countries. It develops the argument that the policies employed during trade liberalization have resulted in a fiscal squeeze as a result of declining tax revenues and rising interest expenditures. To surmount this fiscal hurdle, expenditures on physical capital, which have negligible political ramifications, have been reduced. Other more politically sensitive expenditures, such as spending on social capital, have been financed by incurring additional debt. However, additional debt has exerted upward pressure on interest payments, further exacerbating the fiscal situation. The statistical analysis carried out to examine the evidence uses panel data for eighty developing and industrialized countries over the period 1970,98 and employs a fixed,effects regression framework to account for country,specific characteristics. The results indicate that trade liberalization has indeed resulted in declining revenues and higher interest expenditures and that these factors have contributed to the observed decline in infrastructure spending. [source]

MIGRATION, GLOBALISATION AND THE SPIRIT OF PETER BAUER

ECONOMIC AFFAIRS, Issue 4 2003
Daniel T. Griswold
Lord Bauer understood that the human freedom of movement plays a vital role in development. Today, internal and cross-border migration generates hard-currency remittances that raise living standards and capital investment in the country of origin, promotes greater trade and investment ties between destination and origin countries, and raises a country's stock of human and physical capital when migrants return with new skills and investment funds. Immigration can also stimulate political and social reform when migrants return or foreign-born immigrants arrive with new ideas and experiences. Relaxing the pervasive controls on the international movement of people remains a huge piece of unfinished business on the market-driven development agenda. [source]

Does Entrepreneurship Capital Matter?

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 5 2004
David B. Audretsch
Economics has identified three types of capital as the drivers of economic growth,physical capital, human capital, and knowledge capital. This article introduces the concept of entrepreneurship capital and suggests that it is also an important factor shaping the economic performance of an economy. We define entrepreneurship capital as those factors influencing and shaping an economy's milieu of agents in such a way as to be conducive to the creation of new firms. The hypothesis that entrepreneurship capital is positively linked to economic growth is then tested by examining the relationship between several different measures of entrepreneurship capital and regional economic performance, measured as per-capita income for Germany. The empirical evidence suggests that there is indeed a positive link between entrepreneurship capital and regional economic performance. These results suggest a new direction for public policy that focuses on instruments to enhance entrepreneurship capital. [source]

Infrastructure and Rural Development: US and EU Perspectives Infrastruktur und Entwicklung des ländlichen Raums: Perspektiven aus den USA und der EU Infrastructures et développement rural : Perspectives aux États-Unis et dans l'Union européenne

EUROCHOICES, Issue 1 2008
David Blandford
Infrastructure and Rural Development: US and EU Perspectives Infrastructural development remains a cornerstone of rural development policy in both the United States and Europe. It is evident that rural development objectives differ, but similar policy measures are used. The economic rationale for infrastructure development centres on efficiency and creation of competitive advantage. Policy intervention is justified because of the added costs of infrastructure provision in remote, sparsely populated areas. Although this policy focus does not guarantee success, regions leading in economic development typically have better physical infrastructure. In the United States, policy must adapt to challenges posed by an ageing rural infrastructure and demographic change that will increase demands on social infrastructure such as housing and health facilities. There will be greater local responsibility for funding, and expanded use of public/private partnerships. In the European Union, the major challenge is in redirecting resources to new member states, where there is urgent need for both large new investments in transport networks and small investments to improve local access. Although two current options for funding these diverse needs focus on European policies only, investments in non-farm physical capital and public infrastructure cannot be sustained without active national policies to complement the European efforts, perhaps through co-financing requirements. Infrastructures et développement rural : Perspectives aux États-Unis et dans l'Union européenne Le développement des infrastructures demeure un pilier de la politique de développement rural aux États-Unis comme dans l'Union européenne. Les objectifs de développement rural diffèrent bien évidemment mais des mesures semblables sont employées. La justification économique du développement des infrastructures repose sur l'efficience et la création d'avantages concurrentiels. L'intervention publique est justifiée par les coûts supplémentaires des infrastructures dans les zones éloignées à population clairsemée. Bien que ce type de politique ne garantisse pas le succès, les régions en avance de développement économique ont en général de meilleures infrastructures physiques. Aux États-Unis, la politique soit s'adapter aux défis que posent le vieillissement des infrastructures rurales et l'évolution démographique qui va augmenter la demande d'infrastructures sociales telles que les services de santé et de logement. La responsabilité du financement local va augmenter et les partenariats public/privé vont se développer. Dans l'Union européenne, le principal défi est de réorienter les ressources vers les nouveaux pays membres qui ont un besoin urgent de nouveaux investissement d'ampleur dans les réseaux de transport et d'investissement de plus faible ampleur dans l'amélioration des accès locaux. Deux options actuelles de financement de ces divers besoins se concentrent sur les seules politiques européennes, mais les investissements dans le capital physique non agricole et dans les infrastructures publiques ne peuvent pas se poursuivre sans des politiques nationales actives complémentant les efforts fournis au niveau européen, peut-être à travers des mécanismes de co-financement. Infrastruktur und Entwicklung des ländlichen Raums: Perspektiven aus den USA und der EU Bei der Entwicklung der Infrastruktur handelt es sich nach wie vor sowohl in den USA als auch in Europa um einen Eckpfeiler in der Politik zur Entwicklung des ländlichen Raums. Es ist offensichtlich, dass sich die Ziele bei der Entwicklung des ländlichen Raums unterscheiden, die Politikmaßnahmen ähneln sich jedoch. Die wirtschaftliche Begründung für die Entwicklung der Infrastruktur zielt auf die Effizienz und das Schaffen von Wettbewerbsvorteilen ab. Politikeingriffe sind gerechtfertigt, da die Bereitstellung von Infrastruktur in entlegenen, dünn besiedelten Gebieten höhere Kosten verursacht. Obgleich dieser Schwerpunkt der Politik den Erfolg noch nicht garantiert, verfügen die wirtschaftlich am weitesten entwickelten Regionen typischerweise über eine bessere physische Infrastruktur. In den USA muss sich die Politik an die Herausforderungen anpassen, welche eine in die Jahre gekommene Infrastruktur im ländlichen Raum und der demografische Wandel mit sich bringen, und wodurch neue Anforderungen an die soziale Infrastruktur, wie z.B. Wohnungsbau und Gesundheitseinrichtungen, gestellt werden. Bei der Finanzierung werden die Kommunen stärker in die Verantwortung genommen, und öffentlich-private Partnerschaften werden an Bedeutung gewinnen. In der EU besteht die größte Herausforderung darin, Ressourcen zu den neuen Mitgliedstaaten umzuverteilen, wo sowohl neue Großinvestitionen in die Transportnetzwerke als auch kleinere Investitionen zur Verbesserung des lokalen Zugangs dringend benötigt werden. Obwohl sich die beiden im Moment vorhandenen Optionen zur Finanzierung dieser vielfältigen Bedürfnisse ausschließlich auf europäische Politikmaßnahmen konzentrieren, können die Investitionen in außerlandwirtschaftliches physisches Kapital und in die öffentliche Infrastruktur nicht ohne wirksame Politikmaßnahmen auf nationaler Ebene (z.B. die Pflicht zur Kofinanzierung) als Ergänzung zu den Bemühungen auf europäischer Ebene aufrecht erhalten werden. [source]

Industrial Policy and the East German Productivity Puzzle

GERMAN ECONOMIC REVIEW, Issue 3 2000
Henning Klodt
Catching-up of East German productivity to West German levels has completely faded out since the mid-1990s. The remaining productivity gap cannot be attributed to an inferior capital endowment or qualification deficiencies of the East German labor force. Instead, it appears to be the result of an inappropriate design of industrial policy which concentrated on the subsidization of physical capital and largely ignored the advance of human capital- and service-intensive industrial structures. East Germany will have to face another wave of painful structural adjustment when capital-intensive industries are no longer protected from competition by public subsidies. [source]

The Economic Effects of Human Rights

KYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 4 2007
Lorenz Blume
SUMMARY There are three positions concerning the economic effects of human rights discussed among economists. Some economists argue that only property rights matter for economic growth and basic human rights can even make the legal system less efficient. Others argue that negative rights are generally welfare increasing while positive rights tend to reduce income and growth over time. Yet a third group of economists argues that elements of all groups of human rights are a precondition for making productive use of one's resources and are thus efficiency-enhancing. Based on a cross-country analysis, the effects of different groups of human rights on economic growth are estimated in this paper. The transmission channels through which the different rights affect growth are identified by estimating their effects on investment and overall productivity. Basic human rights have indeed a positive effect on investment, but do not seem to contribute to productivity. Social rights, in turn, are not conducive to investment in physical capital but do contribute to productivity improvements. None of the four groups of rights covered in this analysis ever has a significant negative effect on any of the economic variables included. [source]

The Interaction of Human and Physical Capital Accumulation: Evidence from Sub-Saharan Africa,

KYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 2 2005
Robin Grier
Summary In this paper, a simultaneous model of the evolution of human and physical capital in Sub-Saharan Africa is estimated. It can be shown that the two types of capital are jointly endogenous, in that increases in human capital significantly raise the per-worker physical capital stock, and increases in the physical capital significantly raise primary education levels. Unlike the implications of other recent papers, there is no evidence that tropical climates and ethnic diversity have a negative effect on the accumulation of capital in the region. [source]

Investment in Fixed Capital Stock: Testing for the Impact of Sectoral and Systemic Uncertainty*

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2004
Johannes Fedderke
Abstract This paper applies current theory recognizing the irreversibility of investment, in order to test for the impact of uncertainty on investment expenditure for a middle income country. The contribution of the paper is unique in two respects. First, it employs dynamic heterogeneous panel estimation techniques not previously applied to investment functions. Secondly, it explicitly tests for the impact of both sectoral and systemic uncertainty on investment expenditure. We find that both sectoral (as measured by output volatility) and systemic uncertainty (as measured by political instability) have a negative impact on investment rates in a middle income country context. Liquidity constraints and growth in total factor productivity are found to have no impact on investment, while trade liberalization has the impact predicted by Heckscher-Ohlin trade theory. Finally, we find complementarity effects between physical capital and skilled human capital, suggesting that South African educational policies may have hampered investment in physical capital as well as the growth performance of the economy. Policy implications emphasize the importance of lowering uncertainty for investors, and the need for sound human capital investment. [source]

Brain competition policy as a new paradigm of regional policy: A European perspective

PAPERS IN REGIONAL SCIENCE, Issue 2 2010
Christian Reiner
Brain competition policy; human capital; innovation; Europe Abstract The emerging knowledge economy has led to an increase of demand and locational competition for highly-skilled labour. Brain competition policy (BCP) is the reaction from national and regional policymakers. In short, BCP refers to the attraction, education and circulation of talent in and between regional and national economies. This new focus on human capital instead of physical capital indicates a paradigmatic shift in innovation policy and regional policy. While most of the contributions to this new policy approach come from the US, it can be demonstrated that different institutions in Europe prevent the simple copying of those strategies. The article contributes to the ongoing paradigmatic shift by conceptualizing a coherent framework for BCP from a European perspective. Abstract La emergente economía del conocimiento ha llevado a un aumento de la demanda y competencia en localización de mano de obra altamente especializada. Las políticas de competencia por talento (PCT) son la reacción nacional y regional de formuladores de políticas. En resumen, PCT se refiere a la atracción, educación y circulación de talento dentro de, y entre, economías regionales y nacionales. Este nuevo enfoque en cuanto a capital humano en lugar de capital físico indica un cambio paradigmático en políticas innovadoras y políticas regionales. Aunque la mayoría de aportes a este nuevo enfoque de políticas proviene de los EE.UU., se puede demostrar que las diferentes instituciones europeas impiden el copiar simplemente dichas estrategias. El artículo contribuye al cambio paradigmático continuo mediante la conceptualización de un marco coherente para PCT desde una perspectiva europea. [source]

The Financial Sector and Economic Growth,

THE ECONOMIC RECORD, Issue 2009
ARUSHA COORAY
The Mankiw,Romer,Weil (1992) augmented Solow,Swan (Solow 1956; Swan 1956) model is extended to incorporate the financial sector in this study. Distinguishing between financial capital, physical capital and human capital, the research attempts to identify, in particular, the effects of financial capital on economic growth. The effects of financial sector efficiency on economic growth are also examined. The financial sector augmented model is tested on a cross-section of 35 economies. Strong support is found for the model. [source]

HUMAN CAPITAL ACCUMULATION, HOME PRODUCTION AND EQUILIBRIUM DYNAMICS*

THE JAPANESE ECONOMIC REVIEW, Issue 3 2008
YUNFANG HU
In this paper, we construct a three-sector endogenous growth model in which long-run growth is propelled by human capital accumulation. We show that although the addition of a home sector to the standard two-sector endogenous growth model preserves the well-behaved balanced growth equilibrium properties, it generates new transitional dynamics around the balanced growth path. It is shown that, when there is a positive shock to physical capital, our model is more likely to exhibit paradoxical growth than are standard multisector endogenous growth models that exclude home production. Our analysis adds new results to those from the related literature on leisure. [source]

Optimal Growth with Endogenous Technical Progress: Hicksian Bias in a Macro Model

THE JAPANESE ECONOMIC REVIEW, Issue 2 2000
Ryuzo Sato
If productivity growth is endogenous, the question of whether to allocate some resources to increase the efficiency of capital needs to be examined in spite of the conventional wisdom that only Harrod-neutral technical progress is compatible with the steady state. This paper describes the crucial role that the production technology and research sectors play in determining the allocation of resources for accumulating physical capital and enhancing the productivity of inputs. We develop a model of biased growth, where, even in the steady state, the efficiency of capital and labour are increasing due to the allocation of resources to the research sector. JEL Classification Numbers: C62, O31. [source]

Measuring Human Capital Like Physical Capital: What Does It Tell Us?

Is the Export-led Growth Hypothesis Enough to Account for China's Growth?

CHINA AND WORLD ECONOMY, Issue 4 2010
María Jesús Herrerias
F43; O40; O47; O53 Abstract One of the missing pieces preventing us from understanding recent Chinese economic development is the role played by openness and capital accumulation in this process. The question is whether the sharp economic growth that the Chinese economy has experienced is another case of export-led growth due to the open-door policy or whether, on the contrary, this growth has been caused by high domestic savings and investment rates (and the consequent capital accumulation). To answer this question, we employed an empirical framework of the cointegrated vector autoregressive model. The empirical results show that both investment (in physical capital and R&D) and exports, as well as the exchange rate policy, are relevant factors in explaining China's long-run economic growth over the past 4 decades. [source]

Corporate Governance and Intellectual Capital: some conceptualisations

CORPORATE GOVERNANCE, Issue 4 2001
James Keenan
One of the persistent problems facing corporate governance is the increasing shift toward knowledge-intensive organisations. This article focuses on the fiduciary responsibility of corporate governance for creating, developing, and leveraging the intellectual capital existing and embedded in the people, structures, and processes of the firm. Research and practice, traditionally concerned with governance responsibility for financial and physical capitals, has not much focused on the relations between governance and intellectual capital. Here, the authors' intellectual capital paradigm is overlayered on a recent taxonomy of systems and features of corporate governance. The result is an explication of the role and characteristics of corporate governance in relation to the intellectual capital of the firm. [source]