The traditional view of growth and fluctuations implies that aggregate demand shocks result in only transitory departures from trend or “normal” output, which is determined exclusively by aggregate supply factors. Using a simple dynamic framework for a less-developed economy, a series of models is developed to show that aggregate demand can have a permanent effect on economic growth. It is show...

Is there a 'new' economic geography of Information Technologies driven industries? Does the fast growth of the Digital Economy shape new regional specialization and industrial concentration? How do the different theories of agglomeration externalities contribute to the understanding of clustering dynamics in IT industries? This paper uses geographical data from 1992 and 1997 Census to examine s...

This paper studies the effect of population aging on economic performance in an overlapping-generations model with international migration. Fertility is endogenized so that immigrants and natives can have different fertility rates. Fertility is an important determinant to the tax burden of social security since it affects the quantity and quality of future tax payers. We find that introducing i...

In this paper, we address the question that does FDI alone affect economic growth or interaction of FDI and human capital is required to boost economic growth. We develop the model with an expanding variety of products. We estimate the model using some advanced tests utilizing data on FDI flows from developed countries. We find stronger complementary effects between FDI and human capital on the...

In this forecast, we examine the future Japanese economy to FY2015. Major assumptions made in the forecast are: The world economy will grow by about 4%, oil prices would drop to $28/barrel, and the yen would gradually appreciate by about 10%. In other words, the terms of trade that have deteriorated significantly this fiscal year will gradually look better. We also assume that to recover sustai...

COMPUTING IN SCIENCE & ENGINEERING Semiconductors are indispensable to the modern economy. The semiconductor— through its synchronous increase in power and decline in price—has contributed significantly to the United States’ economic growth over the past decade.1,2 The technological advances spurred by this regular and predictable rate of growth in power (as described by Moore’s law) have enhan...

The recent developments and adoptions of digital technologies give rise to the growth of information economies, understood as an aggregate of economic activities that produce informational outputs. Several key characteristics of an information economy differ to the conventional economic wisdom derived from the industrial age, which may impose governmental policy implications and therefore const...

This paper develops a uni ̄ed growth model that captures the historical evolution of population, technology, and output. It encompasses the endogenous transition between three regimes that have characterized economic development. The economy evolves from a Malthusian regime, where technological progress is slow and population growth prevents any sustained rise in income per capita, into a Post-M...

Despite her small size and late industrialization, Singapore has managed to capture a significant share of the global information economy over the last three decades. This paper analyzed the structure and growth dynamics of Singapore’s information industries using an analytical framework that integrates the four key components of an information economy: IT goods industry, content industry, netw...

2 Solow’s ‘shocker’ 5 2.1 Details of the model . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2 Steady state growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.3 Technological change . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.4 Growth accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.5 Decentralised economy . . . . . . . . . . . ...