Toward a Microeconomics of Growth
What drives growth at the microeconomic level? The authors divide the factors that determine a location's growth performance into two groups, "1st advantage" and "2nd advantage." The term 1st advantage refers to the condit...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/04/3335352/toward-microeconomics-growth http://hdl.handle.net/10986/14750 |
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okr-10986-14750 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL PRODUCTIVITY AGRICULTURE ALTERNATIVE USE AVERAGE PERFORMANCE BUSINESS ENVIRONMENT BUSINESS SECTOR CAPITAL GOODS CIVIL LAW COMMON LAW COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CORRUPTION COUNTRY DATA COUNTRY REGRESSIONS COUNTRY SIZE DEBT DECENTRALIZATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DIMINISHING RETURNS DISECONOMIES DIVISION OF LABOR ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC THEORIES ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EMPLOYMENT EQUILIBRIUM EXCESS SUPPLY EXPENDITURES EXPLANATORY VARIABLES EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS GDP GOVERNMENT REGULATION GOVERNMENT REGULATIONS GROWTH PATH GROWTH PERFORMANCE GROWTH PROCESS GROWTH REGRESSIONS HOUSEHOLD DATA HUMAN CAPITAL IMPORT LIBERALIZATION INCOME INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INSTITUTIONAL ENVIRONMENT INTERMEDIATE INPUTS INVESTMENT CLIMATE JUDICIAL DECISIONS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LAND REFORM LANDLOCKED COUNTRIES LOCAL COMMUNITIES LOW-INCOME COUNTRIES MARGINAL PRODUCT MARKET FAILURES MEASUREMENT ERROR MEASUREMENT ERRORS MICRO DATA MICROECONOMICS NATIONAL LEVEL NEGATIVE IMPACT OPPORTUNITY COST PER CAPITA INCOME PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH PRIMARY SCHOOL PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PROPERTY RIGHTS RAPID GROWTH REGULATORY INSTITUTIONS RETURNS TO SCALE SECURITIES SKILLED WORKERS SOCIAL GROUPS SPILLOVERS STRUCTURAL CHANGE TRADE BARRIERS TRADE POLICY TRADE VOLUMES UNEMPLOYMENT UNOFFICIAL ECONOMY URBAN WORKERS URBANIZATION VALUE OF OUTPUT GROWTH DEVELOPMENT STRUCTURAL ADJUSTMENT CLUSTER ANALYSIS LABOR ECONOMICS PRODUCTIVE CAPITAL INSTITUTIONAL ENVIRONMENT EMPIRICAL ANALYSIS MICROECONOMICS SUBNATIONAL EFFECTS MANUFACTURING |
| spellingShingle |
AGRICULTURAL PRODUCTIVITY AGRICULTURE ALTERNATIVE USE AVERAGE PERFORMANCE BUSINESS ENVIRONMENT BUSINESS SECTOR CAPITAL GOODS CIVIL LAW COMMON LAW COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CORRUPTION COUNTRY DATA COUNTRY REGRESSIONS COUNTRY SIZE DEBT DECENTRALIZATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DIMINISHING RETURNS DISECONOMIES DIVISION OF LABOR ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC THEORIES ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EMPLOYMENT EQUILIBRIUM EXCESS SUPPLY EXPENDITURES EXPLANATORY VARIABLES EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS GDP GOVERNMENT REGULATION GOVERNMENT REGULATIONS GROWTH PATH GROWTH PERFORMANCE GROWTH PROCESS GROWTH REGRESSIONS HOUSEHOLD DATA HUMAN CAPITAL IMPORT LIBERALIZATION INCOME INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INSTITUTIONAL ENVIRONMENT INTERMEDIATE INPUTS INVESTMENT CLIMATE JUDICIAL DECISIONS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LAND REFORM LANDLOCKED COUNTRIES LOCAL COMMUNITIES LOW-INCOME COUNTRIES MARGINAL PRODUCT MARKET FAILURES MEASUREMENT ERROR MEASUREMENT ERRORS MICRO DATA MICROECONOMICS NATIONAL LEVEL NEGATIVE IMPACT OPPORTUNITY COST PER CAPITA INCOME PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH PRIMARY SCHOOL PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PROPERTY RIGHTS RAPID GROWTH REGULATORY INSTITUTIONS RETURNS TO SCALE SECURITIES SKILLED WORKERS SOCIAL GROUPS SPILLOVERS STRUCTURAL CHANGE TRADE BARRIERS TRADE POLICY TRADE VOLUMES UNEMPLOYMENT UNOFFICIAL ECONOMY URBAN WORKERS URBANIZATION VALUE OF OUTPUT GROWTH DEVELOPMENT STRUCTURAL ADJUSTMENT CLUSTER ANALYSIS LABOR ECONOMICS PRODUCTIVE CAPITAL INSTITUTIONAL ENVIRONMENT EMPIRICAL ANALYSIS MICROECONOMICS SUBNATIONAL EFFECTS MANUFACTURING Burgess, Robin Venables, Anthony J. Toward a Microeconomics of Growth |
| relation |
Policy Research Working Paper;No.3257 |
| description |
What drives growth at the microeconomic
level? The authors divide the factors that determine a
location's growth performance into two groups,
"1st advantage" and "2nd advantage." The
term 1st advantage refers to the conditions that provide the
environment in which new activities can be profitably
developed, including most of the factors on which
traditional theory has focused, such as access to inputs
(labor and capital), access to markets, provision of basic
infrastructure, and the institutional environment. The term
2nd advantage refers to factors that increase returns to
scale and can lead to cumulative causation processes. They
may be acquired by learning, through technological
spillovers, or by the development of thick markets of
suppliers and local skills. The authors' analysis
suggests that empirical investigation of the drivers of
growth must shift down to a more microeconomic level. Such
an analysis has become more feasible as data at the
subnational level have become more available. By viewing
recent empirical evidence on drivers of growth through their
analytical framework, the authors are able to begin to
sketch out a microeconomic agenda for growth. They
emphasize that it is the manner in which 1st and 2nd
advantages interact that shapes the pattern of development.
The authors then turn to the example of how policy
has affected manufacturing growth performance in India.
They analyze links between the direction of state-level
labor regulation and growth in the organized manufacturing
sector, how state-led expansion of bank branches into rural
areas has affected unregistered or informal manufacturing,
and how the pre-reform technological capability of
industries affected their response to liberalization in
1991. The analysis suggests that policy choices at the
local level affect growth. Both theory and empirics need to
downshift to the microeconomic level if we are to make
advances in identifying specific means of encouraging
innovation and growth. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Burgess, Robin Venables, Anthony J. |
| author_facet |
Burgess, Robin Venables, Anthony J. |
| author_sort |
Burgess, Robin |
| title |
Toward a Microeconomics of Growth |
| title_short |
Toward a Microeconomics of Growth |
| title_full |
Toward a Microeconomics of Growth |
| title_fullStr |
Toward a Microeconomics of Growth |
| title_full_unstemmed |
Toward a Microeconomics of Growth |
| title_sort |
toward a microeconomics of growth |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/04/3335352/toward-microeconomics-growth http://hdl.handle.net/10986/14750 |
| _version_ |
1764430044500852736 |
| spelling |
okr-10986-147502021-04-23T14:03:20Z Toward a Microeconomics of Growth Burgess, Robin Venables, Anthony J. AGRICULTURAL PRODUCTIVITY AGRICULTURE ALTERNATIVE USE AVERAGE PERFORMANCE BUSINESS ENVIRONMENT BUSINESS SECTOR CAPITAL GOODS CIVIL LAW COMMON LAW COMPARATIVE ADVANTAGE CONSUMERS CONTRACT ENFORCEMENT CORRUPTION COUNTRY DATA COUNTRY REGRESSIONS COUNTRY SIZE DEBT DECENTRALIZATION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DIMINISHING RETURNS DISECONOMIES DIVISION OF LABOR ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC THEORIES ECONOMICS LITERATURE ECONOMIES OF SCALE ECONOMISTS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL WORK EMPLOYMENT EQUILIBRIUM EXCESS SUPPLY EXPENDITURES EXPLANATORY VARIABLES EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL DEVELOPMENT FINANCIAL MARKETS GDP GOVERNMENT REGULATION GOVERNMENT REGULATIONS GROWTH PATH GROWTH PERFORMANCE GROWTH PROCESS GROWTH REGRESSIONS HOUSEHOLD DATA HUMAN CAPITAL IMPORT LIBERALIZATION INCOME INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL SECTOR INSTITUTIONAL ENVIRONMENT INTERMEDIATE INPUTS INVESTMENT CLIMATE JUDICIAL DECISIONS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LAND REFORM LANDLOCKED COUNTRIES LOCAL COMMUNITIES LOW-INCOME COUNTRIES MARGINAL PRODUCT MARKET FAILURES MEASUREMENT ERROR MEASUREMENT ERRORS MICRO DATA MICROECONOMICS NATIONAL LEVEL NEGATIVE IMPACT OPPORTUNITY COST PER CAPITA INCOME PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH PRIMARY SCHOOL PRIVATE SECTOR PRODUCERS PRODUCTION COSTS PROPERTY RIGHTS RAPID GROWTH REGULATORY INSTITUTIONS RETURNS TO SCALE SECURITIES SKILLED WORKERS SOCIAL GROUPS SPILLOVERS STRUCTURAL CHANGE TRADE BARRIERS TRADE POLICY TRADE VOLUMES UNEMPLOYMENT UNOFFICIAL ECONOMY URBAN WORKERS URBANIZATION VALUE OF OUTPUT GROWTH DEVELOPMENT STRUCTURAL ADJUSTMENT CLUSTER ANALYSIS LABOR ECONOMICS PRODUCTIVE CAPITAL INSTITUTIONAL ENVIRONMENT EMPIRICAL ANALYSIS MICROECONOMICS SUBNATIONAL EFFECTS MANUFACTURING What drives growth at the microeconomic level? The authors divide the factors that determine a location's growth performance into two groups, "1st advantage" and "2nd advantage." The term 1st advantage refers to the conditions that provide the environment in which new activities can be profitably developed, including most of the factors on which traditional theory has focused, such as access to inputs (labor and capital), access to markets, provision of basic infrastructure, and the institutional environment. The term 2nd advantage refers to factors that increase returns to scale and can lead to cumulative causation processes. They may be acquired by learning, through technological spillovers, or by the development of thick markets of suppliers and local skills. The authors' analysis suggests that empirical investigation of the drivers of growth must shift down to a more microeconomic level. Such an analysis has become more feasible as data at the subnational level have become more available. By viewing recent empirical evidence on drivers of growth through their analytical framework, the authors are able to begin to sketch out a microeconomic agenda for growth. They emphasize that it is the manner in which 1st and 2nd advantages interact that shapes the pattern of development. The authors then turn to the example of how policy has affected manufacturing growth performance in India. They analyze links between the direction of state-level labor regulation and growth in the organized manufacturing sector, how state-led expansion of bank branches into rural areas has affected unregistered or informal manufacturing, and how the pre-reform technological capability of industries affected their response to liberalization in 1991. The analysis suggests that policy choices at the local level affect growth. Both theory and empirics need to downshift to the microeconomic level if we are to make advances in identifying specific means of encouraging innovation and growth. 2013-08-01T20:03:13Z 2013-08-01T20:03:13Z 2004-04 http://documents.worldbank.org/curated/en/2004/04/3335352/toward-microeconomics-growth http://hdl.handle.net/10986/14750 English en_US Policy Research Working Paper;No.3257 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |