Growth Theory through the Lens of Development Economics

Banerjee, Abhijit; Duflo, Esther

doi:10.2139/ssrn.651483

Cited by 399 publications

(537 citation statements)

References 152 publications

(152 reference statements)

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“…Moreover, for given Z , if the world economy is su¢ ciently skill-scarce, the skill premium may even turn negative. 8 Such an outcome does not seem realistic, as in that case skilled workers would be willing to take unskilled jobs. In particular, assuming that a skilled worker produces Z times as much as an unskilled worker regardless of the sector of employment, implies that there is lower boundw Z.…”

Section: Ipr (Licensing Of Technologies)mentioning

confidence: 99%

Structural Development Accounting

Gancia

Müller

Zilibotti

2013

Advances in Economics and Econometrics

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In this paper, we construct and estimate a uni…ed model combining three of the main sources of cross-country income disparities: di¤erences in factor endowments, barriers to technology adoption and the inappropriateness of frontier technologies to local conditions. The key components of our framework are di¤erent types of workers (skilled and unskilled labor), distortions to capital accumulation, directed technical change, costly adoption and spillovers from the world technology frontier. Despite its parsimonious parametrization, our empirical model provides a good …t of GDP data for up to 90 countries in 1970 and 2000. We use the model to assess the relative importance of alternative factors a¤ecting the world income distribution and to perform counterfactual experiments. Our results suggests that removing barriers to technology adoption would increase output of the average OECD economy relative to the US frontier from 68.3% to 92.5%. The average non-OECD country would instead increase from 17.4% to 53.8%. Slashing barriers would also lead to higher skill premia in all countries. We also study how globalization can shape income disparities. In the absence of global IPR protection, we …nd that trade in goods ampli…es income disparities, induces skill-biased technology adoption and increases skill premia in the majority of countries. These results are reverted if trade liberalization is coupled with international protection of IPR.JEL Classi…cation: F43, O11, O31, O33, O38, O41, O43, O47.

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Section: Ipr (Licensing Of Technologies)mentioning

confidence: 99%

Structural Development Accounting

Gancia

Müller

Zilibotti

2013

Advances in Economics and Econometrics

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“…While access to primary schooling has improved substantially, high dropout rates are still a critical problem 2 Studies specific to India have also shown similar results (Kingdon, 1998;Duraisamy, 2002; and Kingdon and Unni, 2001). On the other handsome other studies show that while the actual rate of return to primary schooling is high, parents believe that the first few years of schooling have lower returns than in the later years Duflo, 2005 and2011). These observations suggest that households may perceive education investment as lumpy;…”

Section: Introductionmentioning

confidence: 95%

“…Despite best attempts and significant rises in enrolment in most developing countries, recent findings suggest that the target is unlikely to be met 1 . While access to primary schooling has improved substantially, high dropout rates are still a critical problem 2 Studies specific to India have also shown similar results (Kingdon, 1998;Duraisamy, 2002; and Kingdon and Unni, 2001).…”

Section: Introductionmentioning

confidence: 99%

Does access to secondary education affect primary schooling? Evidence from India

Mukhopadhyay

Sahoo

2016

Economics of Education Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu This paper investigates if better access to secondary education increases enrolment in primary schools among children in the 6-10 age group. Using a household-level longitudinal survey covering 43 villages in a poor state in India, we find support for the hypothesis that better access to secondary education increases enrolment and attendance among children in the primary school-going age group. A 1 km decrease in the distance to the nearest secondary school increases the proportion of children in a household who are enroled in primary school by 6.5 percentage points. These results do not change significantly even after we account for endogenous placement of secondary schools and measurement error issues. Moreover, we find that the effect is consistent with what theory predicts: the marginal effect is larger for poorer households and boys (who are more likely to enter the labour force). Further, using a nationally representative survey for India (National Sample Survey 2007-08), we also provide some suggestive evidence that this effect may be quite widespread. This result gives support to the assertion that if the costs of post primary schooling are too high, as they would be if secondary schools are far away, parents have lesser interest in their children's education even at the primary stage. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: I2, I20, I21

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“…Banerjee and Duflo (2005) argue that the marginal product of capital differs widely among firms in India, potentially reducing overall output. Hsieh and Klenow (2009) present empirical evidence that misallocation across plants within 4-digit industries may reduce TFP in manufacturing by a factor of two to three in China and India.…”

Section: Introductionmentioning

confidence: 99%

Misallocation, Economic Growth, and Input–Output Economics

Jones

2013

Advances in Economics and Econometrics

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One of the most important developments in the growth literature of the last decade is the enhanced appreciation of the role that the misallocation of resources plays in helping us understand income differences across countries.Misallocation at the micro level typically reduces total factor productivity at the macro level. Quantifying these effects is leading growth researchers in new directions, two examples being the extensive use of firm-level data and the exploration of input-output tables, and promises to yield new insights on why some countries are so much richer than others.

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Growth Theory through the Lens of Development Economics

Cited by 399 publications

References 152 publications

Structural Development Accounting

Structural Development Accounting

Does access to secondary education affect primary schooling? Evidence from India

Misallocation, Economic Growth, and Input–Output Economics

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