bluuebunny/crossref_metadata_2025 huggingface dataset:
Price and Market Support: Contradictions and Dilemmas
Authors: Fennell Rosemary
Published: October 2023

The dominance of price policy and market regulation as the main instruments of agricultural policy in the 1950s was described in Chapter I. It was against such a background that, in 1956, the Spaak report was drawn up; naturally the authors gave some thought to the manner in which agricultural markets should be supported and managed in the proposed new Community. Their experts examined three systems: crop limitation, price intervention, and deficiency payments. The crop limitation system used as a model was the US soil bank or set-aside, under which farmers agreed not to plant a proportion of their land for a stated number of years and in return were paid compensation for the income forgone. This system was accompanied by a public storage scheme. It is quite surprising that the Spaak team were so forward thinking in the mid- I 950s, when surpluses were only just beginning to be discussed as a potential problem in Western Europe. Events were to prove how right they were.
Implications of the Choice of Particular Market Policy Instruments
Authors: Fennell Rosemary
Published: October 2023

The development of the market policy over the lifetime of the CAP was traced in Chapter 6; earlier chapters sought to establish the CAP in its policy context in post-World War II Europe. The purpose of the present chapter is to highlight some of the implications of the choice of particular policy instruments, especially for producers, consumers, and the Community Budget. The decision to support the farming sector-for whatever reason and to whatever purpose-is primarily a political one but with strong economic undertones, not least because the instruments chosen are usually economic in nature. The outcome of that choice can have far-reaching consequences. This chapter is not intended to provide a comprehensive account of all the instruments used in the market policy, rather it is a review of a few of the more important ones.
Introduction
Authors: Bergström Villy , Vredin Anders
Published: October 2023

Business-cycle research has had its ups and downs during this century. Recently, in the prolonged boom after the US recovery in the early 1980s, cycles seemed to have been overcome by the capitalist system. (At least, many people behaved as if they thought that there would never be a downturn again.) Earlier, especially between the world wars, cycles were the subject of intense research, because the developed capitalist economies were fluctuating heavily. In the inter-war period research was conducted in the same vein as the research undertaken for the papers presented in this volume. There were systematic empirical investigations on the characteristics of business cycles but also attempts at constructing general theories about them. The causes of business cycles were investigated within the framework of equilibrium theory, stressing either monetary factors (Hawtrey, Wicksell) or the time structure of production, based on Böhm Bawerk ‘s capital and production theory (Hayek, Lundberg). With the Keynesian revolution there was a shift of emphasis from the understanding of business cycles within the framework of economic equilibriwn theory to problems of policy remedies to the under-utilization of resources and the determination of output and employment in the short run. The theories of cycles that were developed were based on non-monetary multiplier-accelerator mechanisms (Samuelson, Hicks). Concomitantly there was a development, going back to Tinbergen, of empirically formulated models with increasing size and econometric sophistication. Keynesian demand-oriented econometric models continued to dominate business-cycle research until the beginning and middle of the 1970s.
Comment
Authors: Bergman Michael
Published: October 2023

Englund, Vredin, and Warne present an interesting paper. The purpose of the study is to analyse the impact of various shocks—transitory and permanent, domestic and foreign—on the Swedish economy during the period 1871-1990. The main question raised by them is whether the Swedish economy has been exposed to several different shocks or if there has been only one source of shocks. Specifically, their objective is to examine whether the main source of macroeconomic fluctuations is aggregate-demand shocks, as suggested by the traditional Keynesian-monetarist and rational expectations approach, or real productivity shocks as suggested by the real-business-cycle approach. Using a VAR framework, Englund et al. demonstrate how cointegration can help to identify orthogonal innovations that have permanent and/or transitory effects on the variables. The critical problem is to interpret the innovations as economic shocks such as domestic and foreign real shocks. This problem is nicely solved by Englund et al. In the empirical work they study a six-variable VAR system. They first test for the number of trends using the method developed by Johansen. Then they try to give ‘economically meaningful interpretations ‘ of the innovations to the cointegrating vectors and the resulting stochastic trends. In their six-variable VAR model they found four cointegrating relations. However, as they note, the model would be more prone to interpretation if there were only three cointegration vectors present.
Comments
Authors: Honkapohja Seppo
Published: October 2023

The review by Jean-Michel Grandmont (JMG) has all the usual characteristics that one has come to associate with his expository skills: sweeping coverage, lucid discussion, and useful insights. In my comments I will add to it a few points of emphasis and also express some partly different views of what in my opinion is emerging from the current research. The paper falls into two parts. The first part of Chapter 18 is devoted to a review of models of ‘endogenous fluctuations ‘ and methods for analysing them. In Section 19.2 I will take up some aspects of this literature. Section 2 of Chapter 18 focuses on the very recent literature on learning behaviour. To an outside observer this might seem like a special topic, but in fact the analysis of learning behaviour is a central theoretical issue in the current discussion about business cycles, the subject matter of this book.
The Functions of Industrial Associations
Authors: Yonekura Seiichiro
Published: October 2023

Ongoing research into Japanese industrial policy has led to some modification of the former so-called ‘Japan Inc.’ theories, in which this policy was interpreted as the ‘fostering of industries under the guidance of the Ministry of International Trade and Industry (MITI)’. Now some of the more dynamic aspects of the policy have been highlighted, such as the way private-sector initiative and market mechanisms have coexisted with government planning. Particularly since the collapse of the centrally planned, command economies of the socialist countries, we need to clarify the major differences between planning in Japanese industrial policy and that in the socialist countries. More than ever, detailed, substantiating research into Japanese industrial policy is called for.
Country Bankers in Proto-industrial Japan: The Transformation of Credit
Authors: Toby Ronald P
Published: October 2023

Well before the opening of Japan’s ports to unlimited foreign trade, and the advent of the Meiji industrialization, Japan had entered an “age of proto-industrialization” in the late eighteenth and early nineteenth centuries. A money economy was so far advanced that in some regions even rural households derived half or more of their income from wage labor, cottage industry, and other nonagricultural pursuits.
Materials and Mineral Resources
Authors: Farinelli Ugo
Published: October 2023

Our views on the problem of raw materials and mineral resources are qualitatively very different today from what they were 40 or even 20 years ago; actually, it may seem that we speak of quite different subjects. The “classical” vision that prevailed some 40 years ago did not take into account the limited nature of material resources. The Earth’s crust, it was thought, contained enough of each mineral and material to satisfy any conceivable need of its in habitants. The challenge was rather how to extract and process these resources. The problem was one of capital investments, of manpower, and to some extent of technologies.
Approaching the Ultimate Constraint: Water Shortage in the Third World
Authors: Falkenmark Malin
Published: October 2023

This chapter addresses the relationships between natural resources and population from the perspective of water as fundamental to life. I start with the premise that a large number of the lowest-income countries suffer from water shortages. Since water-in spite of its renewable character--is a finite resource, I argue that population growth will exacerbate the problems of water deficiency. The presence of the water cycle constitutes a fundamental difference between Earth and other planets in the solar system. Life is made possible by the solar-driven circulation of water between three main spheres: the atmosphere, the lithosphere/ continents, and the oceans. The ecosystems are the results of complex biological interactions in the presence of solar energy, circulating water, and biogeochemical substances circulated by air and water. Because evaporative demand and therefore rainfall efficiency vary with air temperature, the same annual rainfall produces totally different ecosystems in different climatic zones. Rainfall seasonality also contributes to such differences.
The Impact of Technological Changes on Resources for Growing Populations
Authors: Rosenberg Nathan
Published: October 2023

In addressing the question implicit in the title of this article, it is necessary first to look carefully at the content of technological change as a human activity. (1) What specifically does it consist of? (2) What are its possible consequences? (3) What are the social and economic factors that shape the ability to use and exploit superior technologies-not necessarily technologies that are new, but ones that have never been successfully exploited in a particular country? Let me anticipate one of my main conclusions at the outset by stating that the third question is, in many respects, the most crucial of the three. For at present, the division of the world’s population into rich and poor is closely, although not com pletely, congruent with its division into countries with high levels and countries with low levels of technological capability. The third question is an exceedingly difficult one that raises fundamental issues of human organization, social institutions, and economic incentives.
Population Change: The Status and Roles of Women
Authors: Oppong Christine
Published: October 2023

This essay focuses on women’s occupational, maternal, conjugal, and domestic roles and ways in which they are altering in the context of economic and population changes. The latter include labor migration, changes in infant, child, and maternal mortality, fertility, and the age structure of populations. The geographical scope is the developing world, where more than one and a half billion women and girls live. They belong to several thousand ethnic groups, with as many languages and systems of kinship reckoning and customary marriage, childbearing, and childrearing practices.
The State of Children’s Health in the Developing World
Authors: Hanson Lars A
Published: October 2023

The differences between the so-called population pyramids in developing and developed worlds form a good basis for understanding the differences in disease patterns in the two types of societies. In industrialized countries the tall pyramid with a thin base, reflecting an increase in the aged population and a decrease in the young, is connected with the predominance of chronic conditions like cardiovascular diseases, tumors, diabetes, allergies, and arthritis. In contrast, the population pyra mid of poor countries is typically broad-based because the majority of the population is young. The patterns here are dominated by the diseases of the young and poor: frequent infections caused by inadequate hygiene with lack of potable water and sewage control, aggravated by crowding; and undernutrition due to lack of sufficient nutrients and to infections. These infections initiate host defense factors, one effect of which is that the sufferer loses appetite; and common diarrheas cause poor uptake and loss of nutrients. Undernutrition impairs host defense mechanisms, although the clinical consequences are difficult to evaluate, but for vitamin A deficiency.
Introduction
Authors: Livi-Bacci Massimo
Published: October 2023

To consider the relationship of space and settlement is to assess the impact of popu lation growth on environment. A thorny subject, as everybody knows; opinions (those of scientists as well as those of the general public) are polarized between two extreme positions. The cornucopians assume that population growth plays only a minor role in the deterioration of the environment; what matters are the modes of development, the nature of the technologies used, and the regulations governing the use of resources. Population growth, if sustained by the development of adequate energy-saving and resource-saving technologies, and occurring in the framework of a system that internalizes the environmental cost of private and public activities and regulates access and use of primary resources, may be neutral in impact on the environment. Adherents of this position also state that a decline in the population-such as could occur during the next century in the rich countries should their current reproductive patterns remain unchanged-may ultimately result in a slowdown of economic growth, a decline of aggregate investment, and, consequently a decline in the pace of development of resource-saving, energy-saving technologies that minimize the negative environmental impact of human activities.
Internal Migration and Urbanization
Authors: KEYFITZ NATHAN
Published: October 2023

Civilization in its very etymology means urbanization, cities being the points of political and cultural progress through 6,000 years, the places where modern econ omies started to be built in the nineteenth century. One cannot imagine economic, political, or social development taking place over a countryside that has no cities. Yet cities have also been seen as evil. They were the places, said Oliver Goldsmith in the eighteenth century, “Where wealth accumulates, and men decay” and Shelley in the nineteenth century, “Hell is a city much like London-A populous and smoky city,” at a time when London was not yet a large city by modern standards. For Dickens the poverty of the city mass drove many to a nasty life of crime.1 And yet notwithstanding Goldsmith, Shelley, Dickens, and many other critics, it was those cities that gave birth to the modern industrial achievements of the West.
Government-Business Relations and Competitiveness: The Japanese Case
Authors: Kosai Yutaka
Published: October 2023

Japan’s promotion of industrial competitiveness is often regarded as having rewarded cooperation between the public and private sectors. As is usual with a ‘success story,’ however, myth and reality are so mingled that it is difficult to determine whether the competitiveness of Japanese industries has been improved because of, irrespective of, or in spite of, governmental involvement, and, if so, to what extent. A quick glance at the theories presented and facts documented by previous researchers makes one hesitant to draw a simplistic conclusion.
Institutionalizing the Local System: The Ministry of Home Affairs and Intergovernmental Relations in Japan
Authors: Akizuki Kengo
Published: October 2023

The central argument I advance in this chapter is that Japan’s intergovernmental system, which has had many consequences, has most importantly provided stable institutions, the infrastructure for political and economic activities throughout the postwar period.
Economic Development in Comparative Perspective
Authors: Hall Peter A
Published: October 2023

As a result of the extraordinary success of the Japanese economy especially in the years after 1945, there is growing interest in the institutional conditions that have underpinned its development. This volume explores one dimension of those conditions, namely the character and behavior of the Japanese civil service. The purpose of this chapter is to provide an overview of the findings reported here from the perspective of one who specializes in the economic and political development of other nations.
Chicken or Egg? A Theory of the Relationship between Feminist Movements and Family Change
Authors: Chafetz Janet Saltzman
Published: October 2023

A variety of changes over the past 25 years in women’s lives and basic social institutions in industrial nations, especially trends involving the family, have often been attributed to the effects of feminist activism that began in the late 1960s. My research on women’s movements (Chafetz and Dworkin 1986, 1989) and on changing gender systems (Chafetz 1989, 1990) leads me to conclude that this explanation is simplistic and that a complex relationship exists in industrial nations between macro-structural social change, changes within families, attitudes towards gender and the family, and feminist movement activism. Moreover, the critical linchpin that connects these phenomena is an increase in female labour force participation rates, especially those of married women. Unravelling the processes by which these factors are related to one another leads to a more complex and satisfying intellectual understanding of the role of feminist activism in producing change and provides a potentially cogent basis for strategy development by activists and policy-makers. In this chapter I will explicate a theory of the relationship among increased labour force participation by women, the re-emergence of feminist activism, and certain kinds of family changes, specifically as they occurred during the 1960s and 1970s. This theory draws from and expands upon my prior work with A.G. Dworkin on women’s movements (1986, 1989), and my own work on gender system change (1989, 1990).
Intra-EU Multinationality of Industries
Authors: Davies Stephen , Lyons Bruce
Published: October 2023

What determines whether leading EU firms spread their production across member states, as opposed to concentrating production in their home bases? How is the scale of such intra-EU multinational operations related to the structure of industries--in particular, concentration? And what is the role of multinational operations in the European integration process? These are the questions motivating this chapter, which turns to the third dimension of struc ture identified in the core decomposition of Chapter 4. Our estimates on the degree of industry multinationality provide the first ever evidence of cross-member-state production observed at the relatively dis aggregated 3-digit level. This opens up a wider range of questions than those usually explored in previous literature on multinational enterprises (MNEs), especially in the EU context. Very often, empirical studies have had to focus on the determinants of foreign direct investment flows, in the absence of produc tion statistics; and they have often used aggregate national data (derived from balance of payments accounts). Alternatively, where firm-level studies have been attempted, they have usually been confined to only the very largest con glomerate firms, using only crude and over-aggregate industrial breakdowns. Inevitably therefore, industry-level characteristics have tended to play relat ively minor roles in the analysis.
Determinants of Diversification Patterns
Authors: Davies Stephen , Lyons Bruce
Published: October 2023

For a long time diversified firms have played a major role in both production and distribution activities in almost all industrialized countries. It is hardly surprising then that answers to questions such as why they exist and what ef fects they have on economic welfare can be traced back to the economic liter ature of the late 1950s and early 1960s. In the Penrose (1959) tradition, the firm isseen as a collection of specific assets that can beexploited in related activities. In the managerial theory of the firm (Marris, 1964), managers pursue di versification strategies to maximize growth and to reduce risks. More recently, the concept of the multi-product firm has been fully incorporated into neo classical production theory and the implications of diversified entry, multi market contacts, tie-in sales, etc. have become important issues in modern industrial organization theory. On the empirical side, the focus has progress ively widened from the measurement of the extent of diversification and its general causes, to the study of diversification patterns and directions.
Multinationality at the Firm Level
Authors: Davies Stephen , Lyons Bruce
Published: October 2023

Thischapter moves our examination of corporate strategy from the product to the spatial dimension. Any large firm potentially faces choices on how to arrange its production across the member states within the EU: should it con centrate operations in its home base, or expand into other member states? Just as there may be a trade-off in product space between increasing market shares and diversification, so, in geographic space, increasing spatial dispersion may be an alternative to an increasing share in the home economy Naturally, this chapter overlaps to some extent with the industry-level ana lysis of multinationality in Chapter 7: undoubtedly, some firms will be more multinational than others because of the types of industries in which they operate. However, a firm-level analysis widens the perspective. For example, it is possible that a firm may have multinational operations across industries, whilst being uninational within individual industries. This might happen when a vertically integrated firm locates its production of an intermediate product, A, and the finished product, B, in different countries.
Public Procurement lndustries
Authors: Davies Stephen , Lyons Bruce
Published: October 2023

Purchases by the public sector account for a sizeable part of total demand in the European Union-somewhere in the range of 15 % to 20 % of total GDP. The importance of public procurement varies greatly across industries, and in some cases, government purchasing policy has been highly instrumental in forming industry structure. Before the Single European Market measures came into effect, public procurement was still very fragmented with a different procurement system in place for each member state. This created high (often prohibitive) barriers for the exports of manufacturers based in other EU mem ber states or outside countries: only 2-3 % of all public procurement contracts were awarded to enterprises from other member states. Of course, to the extent that these barriers were only trade related, foreign’ manufacturers could resort to establishing local production units in order to become ‘indigenous’ manufacturers. However, other discriminatory measures, or strategic behavi our by national champion firms in collusion with their national governments, could also sometimes block this kind of market entry.2 It is probable, therefore, that measures to eliminate public procurement bias will have a considerable effect in the reorganization of the industries concerned.
The Increasing Role of the Urban Non-formal Sector in Indonesia: Employment Analysis within a Multisectoral Framework
Authors: Azis Iwan J
Published: October 2023

The analysis of employment and labour movements often stresses the growth of the urban formal sector vis-a-vis the expanding commercial agriculture (farm) sector. Yet, various problems in developing countries more often than not involve issues such as rapid urbanization versus limited expansion of industrial employment, suggesting the potential growth of the less visible non-formal sector in the overall development process. It is in this context that the multi sectoral framework approach could be very useful for analysing employment patterns and estimating labour movements.
Conclusion: The Prospects
Authors: Jones Gavin , Visaria Pravin
Published: October 2023

One of the three countries covered in this book-Brazil-has reached a high level of urbanization, with about 75 per cent of its population resident in urban areas. The percentage is not likely to increase beyond 85 per cent. Moreover, natural increase of Brazil’s population has been declining rapidly in recent years. This, allied with the limited scope for further rural-urban migration as a result of the contraction of the rural population, implies that growth rates of urban populations will not be very high in future.
Introduction
Authors: Bacci Massimo Livi
Published: October 2023

Even in the most backward contemporary population infant and child mortality is low by historical standards; indeed the main demographic revolution has been the increased survival of children and the gradual elimination of biological waste linked to the high mortality of the past. For contemporary populations, reducing infant mortality to one death every thousand births is not an impossible target, as it is within reach of the ten per thousand target for less favoured populations. But no historical population could approach the hundred per thousand level for significantly long periods and a loss of between one-fifth and one-third was common. How populations and societies could cope with appalling mortality levels, managing to survive, reproduce, expand, and accumulate, is still a matter of won der for demographers and social scientists.
The Fight Against Infant Mortality in the Past: An International Comparison
Authors: Rollet Catherine
Published: October 2023

Historical and demographic research in the past twenty years has yielded a reli able overview of trends in infant mortality over the past two centuries (Vallin, 1991).
Infant and Child Mortality in the Indian Subcontinent, 1881-1947
Authors: Dyson Tim
Published: October 2023

The population under birth and death registration in British India in 1901 was slightly in excess of 220 million people-that is, roughly one in seven of the world’s entire population. This registration system regularly produced a veritable mountain of detailed official publications and statistics. Indeed, for the period 1881-1947 examined here, it may well be that the quantity of official published registration statistics for the Indian subcontinent (covering large areas of con temporary India, Pakistan, Bangladesh, Myanmar (Burma) and Sri Lanka, which as ‘Ceylon’ was administered by Britain, although not as part of British India) is only exceeded by that for the whole of Western Europe combined.
Infant Mortality in Pre-Transition Japan: Levels and Trends
Authors: Saito Osamu
Published: October 2023

The study of mortality has long been an underexplored area in the field of the historical demography of Japan. This is largely because no reliable estimates of infant mortality are available for either Tokugawa or Meiji times. For the Tokugawa period (the period before the Meiji Restoration of 1868 and subsequent reforms), village population registers, the chief source material so far utilized by historical demographers, do not give us information about infant deaths. As for the period between the Restoration and the year 1920, when the first national census was taken, it has long been believed that both births and deaths were seriously under recorded. With lack of evidence, therefore, a view that infant mortality must have declined as time went on has been shared by many scholars, especially by demographers.
For a History of Prematurity
Authors: Dupaquier Jacques
Published: October 2023

To understand the causes of infant mortality in the past, it is probably not enough to distinguish between endogenous mortality and exogenous mortality. Instead, one should attempt to operationalize the concepts of neonatal mortality-mortality during the first month-and perinatal mortality-late foetal mortality + mortality during the first week of life.
The Death of Foundlings: A Tragedy in Two Acts
Authors: Bardet Jean-Pierre , Dufour, Corinne , Renard Jacques
Published: October 2023

In the 1760s, doctors and administrators became aware of and began to measure the demographic cost of, child abandonment; in other words, they began to evaluate the incapacity of child welfare institutions to assure the survival of their charges. In France, this sudden awareness translated into a fervent exchange of ideas and information, as well as ill-fated attempts at artificial breast-feeding.
Infant Mortality in Late Nineteenth Century Canada
Authors: Mcinnis Marvin
Published: October 2023

Little has been written about infant mortality in nineteenth-century Canada. That is unfortunate since the Canadian case reveals great diversity in the pattern of infant mortality rates and offers interesting possibilities for the exploration of influences and relationships. True, no readily available and manifestly reliable national series of statistics on infant mortality exists for Canada prior to the 1920s, and that may have deterred investigators. A substantial body of usable and interpretable data exists for late nineteenth-century Canada, however, and by utilizing that it may be feasible to gamer a look at a particularly interesting pat tern of rates of infant deaths.
Gender Inequality And Women’S Agency
Authors: Dréze Jean , Sen Amartya
Published: October 2023

Inequality between men and women is one of the most crucial disparities in many societies, and this is particularly so in India. Differences in female and male literacy rates, discussed in the last chapter, are one aspect of this broader phenomenon of gender-based inequality in India. In much of the country, women tend in general to fare quite badly in relative terms compared with men, even within the same families. This is reflected not only in such matters as education and opportunity to develop talents, but also in the more elementary fields of nutrition, health, and survival. Indeed, the mortality rates of females tend to exceed those of males until the late twenties, and even the late thirties in some states, and this-as we know from the experiences of other countries-is very much in contrast with what tends to happen when men and women receive similar nutritional and health care. One result is a remarkably low ratio of females to males in the Indian population compared with the corresponding ratio not only in Europe and North America, but also in sub-Saharan Africa. The problem is not, of course, unique to India, but it is particularly serious in this country, and certainly deserves public attention as a matter of major priority.
Introduction
Authors: Bergström Villy
Published: October 2023

The neoclassical growth model represented a great step forward from the ‘Keynesian’ models of Harrod and Domar. By introducing factor prices and substitution of factors of production capital deepening was possible within the model framework and the ‘knife edge’ instability of the Harrod-Domar scheme was overcome.
Introduction
Authors: Bergström Villy
Published: October 2023

The literature on the political economy of growth is immense: both political scientists and economists have written extensively on this topic. In this paper we do not even attempt to provide a comprehensive survey of the literature; our more modest purpose is to evaluate what we have learnt from the recent out burst of research on the political economy of growth that has occurred in the last few years. This recent literature has developed at the intersection of the new ‘endogenous growth theory’ and the new ‘macro-political economy’.
Political Instability, Quality of Governments and Growth
Authors: Bergström Villy
Published: October 2023

Researchers studying the relationship between political instability and growth have to tackle two major issues. First, how to define political instability. Second, does political stability foster growth or vice versa, or both? Political instability can be measured in two different ways. The first uses some index of socio-political unrest The second approach focuses on the frequency of government changes, namely on executive instability.
Conclusions
Authors: Bergström Villy
Published: October 2023

We conclude by summarizing the main results and puzzles of this literature and by indicating which are, in our view, the next steps in this area of research. Several results appear fairly robust. First, political instability is harmful for growth, and to some extent low growth fosters political instability. This result is not overly sensitive to different measures of political instability. Second, income inequality is harmful for economic growth, but the exact channels linking these two variables are less clear. One possible channel is political instability and mass violence. We presented evidence consistent with the hypothesis that income inequality creates social discontent which in tum fuels unrest, violence and political instability. The latter has negative effects on growth. Evidence on the other political channel, fiscal redistribution, is for the moment less clear. Part of the problem is the variety of different policy instruments that can be used to achieve the desired redistribution.
Government Expenditure and Economic Growth
Authors: Bergström Villy
Published: October 2023

Does government expenditure have a positive or negative effect on economic growth? A priori, we do not know. Arguments can be made in both directions. To the extent that the well-known effects of the existence of collective goods, externalities and natural monopolies are important impediments to growth, the types of government expenditure that rectify these problems can be expected to have growth-enhancing effects. Following Barro (1990) we may label this ‘productive’ government spending. Another problem is that the valuation of government output may lead to an overestimation of measured growth. In the different accounts, government goods and services are valued at their cost of production. This procedure gives rise to a number of difficulties which bias the researcher to find that increased government spending results in increased economic growth.
Country Classifications and Government Policies
Authors: Bergström Villy
Published: October 2023

I have shown that inflation variability and government consumption growth are consistently negative and significant variables in OECD economic growth models. I have also argued that the direct evidence for the importance of bargaining arrangements or union density or corporatist governance is rather weak.
Recent Growth Experience
Authors: Bergström Villy
Published: October 2023

Fig. 26.1 shows the annual average real GDP growth in the last five years of the Summers & Heston data (1984-8) for the sixteen countries for which I have union density data. The sample average growth rate is 3.14 per cent There are eight countries with below average growth, Austria, Belgium, Denmark, France, Germany, the Netherlands, Sweden and Switzerland.
Conclusion
Authors: Bergström Villy
Published: October 2023

The empirical work reported here reveals three things. First, government policies affect economic growth in the OECD countries. The growth of government consumption and the variability of inflation are negative and significant factors in every regression reported in the paper. I believe that Levine and Renelt’s rejection of this hypothesis is due mainly to their poor experimental design that forces drastically different countries to share a common set of coefficients.
Introduction
Authors: Bergström Villy
Published: October 2023

This paper attempts to interpret the experiences of some successful late industrializers in the light of economic ideas. Whether economic growth and successful structural transformation occur because of skilful public policies or on the basis of private activities coordinated only by a decentralized price system is of course a classic controversy within political economy. Many economists seem at least implicitly to read the empirical literature on growth in the light of this normative question.
Common Characteristics of the Four Late lndustrializers
Authors: Bergström Villy
Published: October 2023

The experiences of the four case countries exhibit at least the following common characteristics that may have been associated with ‘mechanisms’ of success in state-led industrialization. TI1e subsequent discussion will then present an attempt to make sense of these observations: (1) In all of the four countries, the state has been very powerful and interventionist, so that the practical organization of new investment has at times resembled that of the planned economies. (2) All have been extremely organized, corporatist economies where strategic decisions of economic and industrial policy have been taken in concert between the state and organized interest groups of business and labour. (3) In all of them, and in spite of the extensive statist planning, the state and the political establishment have been ultimately committed to the liberal market order and respect of private property as a principle. (4) In all of them, for various historical reasons, the state has been politically strong and has also been endowed with a large and competent bureaucracy.
Further Mechanisms of Success
Authors: Bergström Villy
Published: October 2023

The discussion has hopefully so far made some sense of the first two stylized facts of Chapter 31. The extensive state intervention obeys a sound economic logic-provided one is willing to buy the basic assumptions of externalities. However, what has been said hitherto should apply to almost any small economy. What has made the four countries successful? Why have the states been willing and capable to act in ways conducive to success? This section discusses stylized facts 3--6 and suggests at least some ways in which they may have contributed to good performance.
An Overview of Country Experiences
Authors: Bergström Villy
Published: October 2023

This chapter briefly describes the individual experiences of each country case in the light of the foregoing discussion. We pay relatively more attention to Finland and Austria, since many excellent analyses (especially Wade, 1989; Amsden, 1989) have already been devoted to the two Asian miracles. Korea illustrates most of the elements outlined above. The Korean state has been very strong not only towards labour but also towards business. The Korean state has offered large rewards for successful entrepreneurs, but it has also had the ability to discipline business: ‘where Korea differs from most other late industrialising countries is in the discipline its state exercises over private firms’ (Amsden, 1989, p. 14).
Conclusions
Authors: Bergström Villy
Published: October 2023

We have tried to understand the political and economic determinants of successful state intervention in industrialization. Can they be generalized to produce ‘recipes’ for success? It must be emphasized that these experiences relate to specific stages of economic development. Forces that generate long-run growth are different and still largely unknown. However, many theoretical and empirical arguments emphasize the importance of thresholds and qualitative leaps. The study of particular phases of industrialization and structural change is therefore an extremely important task for development economics.
Labour Markets and Wages Policies during Economic Transition
Authors: Rostowski Jacek
Published: October 2023

Arguments in favour of wage controls in post-communist economies have changed considerably since the issue was first addressed in the late 1980s (Chapters 2 and 3). Then it was suggested that Latin American experience showed that wage controls were necessary during stabilization (Fischer, 1988). Two kinds of argument were put forward: the first centring on the danger of increases in the real wage upon stabilization (discussed in Section 2), the second on controls (both wage and price) as a mechanism for coordinating expectations (Section 3). Indeed, it was believed that if such controls were combined with the fixing of the exchange rate, balancing the budget and bringing monetary emission under control, then ‘virtually cost less stabilization is possible’.
Introduction to Part Two
Authors: Rostowski Jacek
Published: October 2023

Part II deals with inflation and economic disintegration in the former Soviet Union. Chapter 7 analyses the reasons for the failure of Gaidar’s 1992 attempt at stabilization. Apart from weaknesses in the design and implementation of policy, the main cause of failure was the combination of a particularly high level of structural distortion (over-consumption of raw materials, above all energy, a particularly large military industrial complex) with the collapse of key state structures (customs borders, monopolised money creation at the central bank). Russia has shown that the populist policy of ‘transformation without stabilization’ is possible. However, this has happened at a particularly high cost in terms of income inequality, capital flight, criminality, and output depression. Moreover, the chaos which high inflation brings strengthens authoritarian, anti-democratic politicians. Chapter 8 deals with the inter enterprise debt explosion which has a key factor in forcing Gaidar to retreat from stabilization.
The Inter-Enterprise Debt Explosion in the Former Soviet Union: Causes, Consequences, Cures
Authors: Rostowski Jacek
Published: October 2023

Inter-enterprise debt (IED) has long been perceived to be a problem in market socialist economies, and it has resurfaced as an acute anxiety for policy makers in many post-communist economies attempting to implement so-called ‘big bang’ liberalization/stabilization programmes. However, it is in the states of the former Soviet Union (FSU) that the phenomenon has attained truly epic proportions. Between 1 January and 30 April 1992, IED in Russia grew from a few dozen billion roubles to 1800 billion roubles, the equivalent of total GNP generated in the first four months of the year. Roughly the same relationship of IED/GDP held in Latvia in June 1992. This suggests that in both countries about half of transactions were not being paid for. By the end of June the stock of IED in Russia had reached 3000 billion roubles.
Universal Banking and Economic Growth in Post--Communist Economies
Authors: Rostowski Jacek
Published: October 2023

A number of authors with otherwise very different views on the transition of PCEs have postulated an important role for banks in the corporate governance of non-financial firms (e.g. Lipton and Sachs, 1991, and Corbett and Mayer, 1992). The idea is that banks in PCEs should follow the model of universal banks in Germany: owning, and controlling as proxies, large equity stakes in non-financial firms, and having significant representation on their supervisory boards (most PCEs have a two board structure of the German kind for their larger joint stock companies).
Introduction
Authors: Rauscher Michael
Published: October 2023

Starting with Adam Smith (1776) and David Ricardo (1817), economists have always viewed free international trade as a source of wealth and welfare gains. The voluntary exchange of commodities induces favorable patterns of specialization and, therefore, leads to an improvement in the international division of labor. Since each country is driven to utilize its comparative advantage and to produce what it can produce most efficiently, the global output is increased and gains from trade accrue to all countries. This optimistic view of free trade has been challenged both from inside the body of mainstream economic theory (e.g. the optimal-tariff and infant-industry arguments) and by outsiders like dependence theorists. It has survived these critiques, albeit with some qualifications. Knowing that there are some exceptions to the rule, most economists now accept the general validity of the free-trade principle, at least as a good rule of thumb e.g. see Krugman (1987). This view is now being challenged again, this time by environmentalists. ‘ Free Trade: The Great Destroyer’ is a title of a recent article by Morris (1990) in the Ecologist.
Basic Concepts
Authors: Rauscher Michael
Published: October 2023

Neoclassical economists view environmental disruption as a problem of negative externalities. A negative externality occurs whenever an agent has to bear a part of the cost of another agent’s activity without being compensated. The agent causing the externality does not take this into account. She bears only the private costs of the activity. The social costs, i.e. the total costs that are borne by society, exceed the private costs. Since a part of the social costs is external and does not enter the agent’s optimization calculus, too much of the activity is performed. Too much pollution is generated and environmental disruption exceeds its socially acceptable level. This is illustrated by Figure 1.1 where a market of a commodity is considered whose production causes environmental damage. Thus, the social costs exceed the private costs of production. Let pand qdenote the price and quantity of the commodity under consideration, and let Dbe the demand curve. The private and social supply of the good are given by the private and social marginal cost curves, PMC and SMCThe social marginal cost exceeds the private marginal cost since damages that accrue to the rest of society are not taken into account by the individual supplier.
International Trade in Hazardous Waste
Authors: Rauscher Michael
Published: October 2023

International trade in toxic waste is a controversial issue. The extreme positions are those of the free-trade advocate and of the environmentalist. The liberal position is that the acceptance of toxic waste in exchange for goods must be mutually beneficial. Otherwise the exchange would not take place. The exporters benefit since they get rid of the problem of storing the waste; the importers gain because they are compensated in terms of better-consumption possibilities.2 Environmentalists argue that the recipients of the waste are not free to choose. Usually these countries are relatively poor and, therefore.. have a weaker position than the waste exporters. Moreover, it is often argued that the storing facilities in poor countries are unsafe compared to those existing in the exporting countries and the worldwide pollution problems may be aggravated for that reason. On top of that, there may be information asymmetries in that the exporter has better information about the composition of the toxic waste and about its least damaging treatment. Thus, trade in toxic waste tends to be inefficient-at least in the technical meaning of the term. Another green argument is that the possibility to export environmental problems reduces the incentives to solve them. If trade in hazardous waste were banned, the main ex porters would have to find ways to avoid the creation of waste, and this would be beneficial to the environment.
Imperfect Coinpetition, Foreign Trade, and the Environinent
Authors: Rauscher Michael
Published: October 2023

In the previous chapters, models have been discussed that are based on the assumption of perfect competition in all goods and factor markets. This assumption simplifies the analysis considerably and in many cases it is also a satisfactory approximation to real markets. However, not all markets are ap proximately competitive and this limits the applicability of perfect-competition models. For example, traditional models fail to explain the large share of intra industry trade, i.e. trade in similar commodities between similar countries. Moreover, some of the policy implications derived from these models depend decisively on the assumption of price-taking behavior and zero profits. In the late 1970s and early 1980s, a ‘ new’ trade theory was established and one started to use the tools of modern industrial economics to look at non-competitive market structures. In the meantime, this approach has been incorporated into the main body of modern international trade theory.