Economics Commons^™

The Choice Of Technology In Economic Development, Lei Wen, Haiwen Zhou

Economics Faculty Publications

The impact of capital accumulation on job creation is an important and interesting issue in economic development. This model provides a general-equilibrium framework for studying technology choice with unemployment in a developing economy based on micro-foundations. Unemployment in the urban sector results from the existence of efficiency wages. Manufacturing firms engage in oligopolistic competition and choose technologies to maximise profits. A more advanced technology uses more capital and less labour. In the steady state, an increase in the amount of capital induces firms to choose more advanced technologies and the wage rate increases. While a higher capital stock always induces …

The Partition Of Production Between Households And Markets, Christopher Colburn, Haiwen Zhou

Economics Faculty Publications

The process of industrialization was accompanied by the switch from household production to firm production. The industrialization process was also a process of population growth, the appearance of general-purpose technologies, and the expansion of international trade. This paper studies the partition of production between households and firms in an analytically tractable general equilibrium model with a continuum of goods. We show that population growth, development of general-purpose technologies, and the opening of international trade increase the percentage of goods produced by firms. However, with the appearance of a technology biased toward home production, the percentage of goods produced by households …

An Overlapping-Generations Model Of Firm Heterogeneity In Economic Development, Yu Chen, Haiwen Zhou

Economics Faculty Publications

We study firm heterogeneity in economic development in an overlapping-generations general equilibrium model in which manufacturing firms engage in oligopolistic competition. Individuals differ in their productivities in the manufacturing sector and choose to become entrepreneurs or workers. The model is surprisingly tractable. In the steady state, an increase in the entry barrier in the manufacturing sector or an increase in the percentage of income spent on the agricultural good decreases the wage rate, but the level of output in the manufacturing sector does not necessarily decrease. An increase in the degree of patience of an individual increases the steady state …

The Big Economic Development Project Question: Is It New Revenue Or A Spending Transfer?, Paul Harris, Ronald Berkebile, Julia Martin, Larry Filer

Economics Faculty Publications

Most local governments pursue some degree of economic development activity to strengthen their economy by adding jobs and generating tax revenue. Witness the growth in tax increment financing, property tax abatements, tax credits, and exemptions for economic development. These state and local incentives totaled more than $80 billion in 2012. Economic development projects can represent a significant boon for a local economy. Estimating how much money they might generate, however, is not as easy as it initially seems, and jurisdictions can receive far less net new revenue than developers predict. Most consumers have finite incomes, which limits their discretionary spending. …

A Dynamic Model Of The Choice Of Technology In Economic Development, Haiwen Zhou, Ruhai Zhou

Economics Faculty Publications

In this overlapping-generations model, there is unemployment in the manufacturing sector. Manufacturing firms engage in oligopolistic competition and choose technologies to maximize profits. With capital as a fixed cost of production, increasing returns in the manufacturing sector exist. In the unique steady state, first, when individuals become more patient, the savings rate increases while the level of an individual’s income decreases. Second, an increase in population or percentage of income spent on manufactured goods does not change steady-state technology while the level of an individual’s income decreases. Third, an increase in the wage rate leads manufacturing firms to choose more …

Institutions Of Higher Education And Cultural Heritage Tourism: A Case Study Of The Crooked Road, Virginia's Heritage Music Trail, Terence Michael Gilley

Educational Foundations & Leadership Theses & Dissertations

The southwest region of Virginia has an unstable economy, which cycles through periods of growth and decline. The strategic plans for southwest Virginia propose cultural heritage tourism as a sustainable industry for economic development of this rural region. Institutions of higher education provide education and training for a qualified workforce and community service. This qualitative, single case study on The Crooked Road, Virginia’s Heritage Music Trail examines the roles of institutions of higher education with regard to cultural heritage tourism for sustainable community and economic development in rural areas. The data sources for this study are the administrators of …

Unemployment And Economic Integration For Developing Countries, Haiwen Zhou

Economics Faculty Publications

While financial or trade integration between countries may increase the size of the market and aid the adoption of more advanced technologies, will it also increase the level of urban unemployment for a developing country? In this model, there is unemployment in the urban sector. Manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Financial firms provide capital to manufacturing firms and they also engage in oligopolistic competition. We show that an increase in the wage rate in the manufacturing sector changes neither the level of technology nor the level of employment in the manufacturing …

The Choice Of Technology And Rural-Urban Migration In Economic Development, Haiwen Zhou

Economics Faculty Publications

This paper studies a general equilibrium model of rural-urban migration in which manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Urban residents incur commuting costs to work in the Central Business District. Surprisingly a change in the size of the population or an increase in the exogenously given wage rate will not affect a manufacturing firm’s choice of technology. This helps to explain why firms in developing countries may not adopt labor intensive technologies even under abundant labor supply. An increase in the number of manufacturing firms increases both the employment rate and the …

Social Capital In Rural China: Its Impact On Economic Development, Grassroots Governance, And Democratic Participation, Min Xia

Graduate Program in International Studies Theses & Dissertations

Does social capital generate positive influences on economic development and democratic governance? This question has important theoretical and policy implications for the contemporary world, especially for the developing countries. The primary goals of this study are to investigate the stock of two types of social capital—bridging social capital and bonding social capital—in rural China, and furthermore to examine the impacts of these two types of social capital upon economic development, grassroots governance, and democratic participation in rural China.

In this study bridging social capital has been measured by the participation in inclusive social networks and general trust among villagers, and …

Leadership: The Missing Variable In The Economic Development Of Sub-Saharan Africa, Osei K. Bonsu

Graduate Program in International Studies Theses & Dissertations

Contemporary economic theories, modernization and dependency, have overlooked the fact that the development process depends on the interaction of social factors. Specifically, the theories have ignored the role of leadership in analyzing economic development. This dissertation seeks to incorporate the importance of leadership into the analysis of development. It argues that sub-Saharan African countries have not developed economically because leaders in the region have been less than successful in establishing a culture conducive to industrialization. African leaders have failed to establish the high moral and scientific cultures necessary to promote economic progress. In place of those cultural attributes, the leaders …

The Regional Public-Private Civic Infrastructure Of Hampton Roads And Its Impact On The Implementation Of Economic Development Initiatives, James Andrew Probsdorfer

Theses and Dissertations in Urban Services - Urban Management

This study analyzes the effectiveness of a network of five regional organizations to promote economic development in Hampton Roads, Virginia. Using a case study methodology, data collected from organizational documents, media reports, and personal interviews was categorized and triangulated to determine how many regional economic proposals were implemented from 1990 to 2000. This analysis created a regional timeline from which was produced a regional inventory of economic proposals. This study concluded that the regional economic development organizations in Hampton Roads have a fragmented network and their output has been influenced by regional factors.

Specifically out of a total of nineteen …

Institutions, Developmental Alliances, And Economic Development In Korea And Brazil (1950-1985), Charles Paul Winebarger

Graduate Program in International Studies Theses & Dissertations

This paper compares the development of Korea and Brazil, 1950-85. These newly industrialized countries developed at above-average rates among less developed countries. Korea developed more rapidly than Brazil. The paper contends that institutions, interest groups (especially firms) and the state, enter into developmental alliances. Alliances affect policies. Policies, then, affect development.

Findings reveal interesting trends in the 1950s' democracies of the cases. Both countries had semi-autonomous states, equivocally committed to industrialization. Industry was the growth point in each. Korea used local firms to industrialize; Brazil used foreign firms. In both cases, the state allied itself with firms. Policy mostly favored …

An Economic Base Study Of The Southeastern Virginia Planning District, Toby Lee Jarman

Economics Theses & Dissertations

No abstract.