Demand-based structural change and balanced economic growth

Alonso-Carrera, Jaime; Raurich, Xavier

doi:10.1016/j.jmacro.2015.10.005

Cited by 23 publications

(17 citation statements)

References 22 publications

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“…Structural changes may significantly affect sustainable economic growth because of technological progress and the element of uncertainty [6]. However, a higher level of energy consumption requirements, especially in emerging economies, may distort the notion of such sustainable growth [7]. Structural change in the economy may influence the bell-shaped relationship, which we call the environmental Kuznets curve (EKC), between economic growth and environmental degradation [8].…”

Section: Introductionmentioning

confidence: 99%

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

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Section: Introductionmentioning

confidence: 99%

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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“…These departures are not supported by empirical estimates of the long-run sectoral production functions. 2 Second, the value of the ratio between the two sectoral LIS consistent with the process of structural change is completely di¤erent from actual estimates of this ratio, which set its value at approximately equal to 0.68. 3 This suggests that the two features of structural change cannot be explained if we assume that wages are equal across sectors.…”

Section: Introductionmentioning

confidence: 86%

“…2 In any case, the main results of our numerical analysis still hold under di¤erent initial values of z:…”

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confidence: 83%

“…The labor mobility cost accounts for any cost that workers moving to another sector must pay. This may include reallocation expenses (transport and housing costs), formal training to acquire the skills used in another sector or an opportunity cost (the time 2 Herrendorf et al (2014) estimate the elasticity of substitution between capital and employment and show that it is 1.58 for the agriculture sector, 0.8 for the manufacturing sector and 0.75 for the service sector. They then conclude that Cobb-Douglas sectoral production functions capture the main technological forces in the US postwar structural change.…”

Section: Introductionmentioning

confidence: 99%

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Labor mobility, structural change and economic growth

Alonso-Carrera

Raurich

2018

Journal of Macroeconomics

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This paper develops a two-sector growth model in which the process of structural change in the sectoral composition of employment and GDP is jointly determined by non-homothetic preferences and labor mobility cost. This cost, paid by workers moving to another sector, limits structural change. Our model can explain the following patterns of development of the US economy throughout the period 1880-2000: (i) balanced growth of the aggregate variables in the second half of the last century; (ii) structural change in the sectoral composition of employment between agriculture and non-agriculture sectors; (iii) structural change process in the sectoral composition of GDP between these sectors; and (iv) wage convergence between the two sectors. We outline that the last two patterns can only be explained if labor mobility cost is introduced. Results reveal that mobility cost generates a misallocation of production factors. This implies a loss of GDP which amounts to over 30% of the GDP throughout initial periods according to the calibrated model. During the transition, the loss of GDP decreases and eventually vanishes. Thus, the elimination of the misallocation explains part of the increase in the GDP. Additionally, this study points out that misallocation introduces a mechanism through which crosscountry differences in sectoral composition may account for crosscountry income differences.. JEL Codes: O41, O47.

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“…Broadly speaking, the balance in economy is an equilibrium and proportion of its basic parameters, in other words, a situation when the participants of economical activity have no stimuli to change the existing situation (Alonso-Carrera, & Raurich, 2015).…”

Section: The Concept and Signs Of Socio-economic Equilibriummentioning

confidence: 99%

Well-being of Russian citizens in terms of socio-economic balance

Yakimova¹

2017

The European Proceedings of Social and Behavioural Sciences

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The article addresses problems of the content of and the key components to the well-being of citizens. The concept of a socio-economic balance has been explained, the analysis of which makes it possible to research the conditions of the growth in the well-being of citizens in more detail. The features of a socio-economic balance and the problems which must be solved to achieve it have been researched. The current situation in the economic and social sphere of Russia is analyzed using such indicators of economic well-being of citizens as real household income, their structure, size of regional discrepancy in living standards of the population, and the level of poverty. In the context of a socio-economic balance, the issues of the achievement of well-being by Russian nationals have been considered. Attention is given to the fact that as an economic category, well-being can become one of the main criteria of evaluating the socio-economic balance in a country.

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Demand-based structural change and balanced economic growth

Cited by 23 publications

References 22 publications

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Labor mobility, structural change and economic growth

Well-being of Russian citizens in terms of socio-economic balance

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