Download PDF by Moheb A. Ghali (auth.): Empirical Explorations in Regional Growth

By Moheb A. Ghali (auth.)

ISBN-10: 9400981562

ISBN-13: 9789400981560

ISBN-10: 9400981589

ISBN-13: 9789400981584

1 a couple of monetary factors for the method of neighborhood progress were proposed within the literature. except natural scholarly curiosity, less than­ status the criteria that experience promoted development in a few areas whereas others were left lagging is of an important significance for the layout of coverage geared toward supporting "depressed" areas or selling balanced development between areas. the aim of learning the method of nearby development is to delineate the variables that experience the most important impression on development, to lower than­ stand the mechanisms during which those variables exert their forces, and to figure out if the interactions of those forces adjust the magnitudes of reaction or the way within which a local economic system responds to stimuli. step one during this strategy is the decision of the first forces chargeable for the expansion or stagnation of a zone. those forces can be few in quantity if the analyses of the mechanisms that transmit their results and the interactions between these mechanisms are to be quite tract­ capable. nearby economists can't draw on the various result of experiences of the industrial improvement of countries, for lots of of the forces remoted by means of improvement economists, reminiscent of tradition, culture, or limitations to unfastened flows of products and components of construction, don't have any workable position to play within the clarification of the range of progress event inside of a process of regions.

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01 MICH. I. 87 COLO. 61 MINN. C. 96 CONN. 80 MISS. D. 41 DEL. 74 MO. 64 TENN. C. 08 MONT. 58 TEX. 94 FLA. 53 NEBR. 81 GA. 54 NEV. 47 VER. H. 14 VA. 07 ILL. J. 92 WASH. 76 IND. M. VA. Y. 44 WIS. 32 KANS. 75 WYO. 37 KY. D. 56 LA. 53 ARIZ. ARK. 19 for 1958 resulted in explosive oscillations and were therefore judged unrealistic. If we replace the values of v by those of v', which we have argued is more consistent with the logic of the model, the model produces a more plausible dynamic behavior characterized by damped oscillations.

To obtain the estimates of kit we need to know the coefficients p and [) of the production function. These are not known, for it will be recalled that our objective in constructing the data on kit was to estimate the coefficients of the production function. We shall, therefore, follow Borts and Stein's approximation and construct the rate of growth of the capital stock as the rate of growth of nonwage income between the years 1958 and 1963, calculated from the data reported in the Survey of Current Business.

Arkansas is subject to two cycles during the period of twenty-five years, with troughs being reached in 1954 and 1965. It should be noted that these simulations are given as examples of the types of behavior generated by the model. They are not forecasts of the growth of income in these regions. For one thing, the growth of autono- DEMAND AND REGIONAL GROWTH 33 mous expenditures in each of the regions did not proceed at the constant rate observed from 1947-1958, as assumed in the simulations. In addition, it is unlikely that the parameters of the model would remain unchanged over a period of a quarter century.

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Empirical Explorations in Regional Growth by Moheb A. Ghali (auth.)


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