On the impossibility of sustainable growth in a manufacturing based economy

Journal Title: Economic Research-Ekonomska Istraživanja - Year 2018, Vol 31, Issue 1

Abstract

This paper investigates a possibility of sustainable growth in a multi-output endogenous growth framework where the capital accumulation takes place mainly through the production of the dirty manufactured goods. It is shown that in a closed economy, economic growth is not environmentally sustainable, even under an optimal pollution tax unless the consumption elasticity of substitution between clean and dirty goods approaches infinity as in a small open economy which exports dirty goods. There exists a minimal threshold level of the ratio of clean to dirty capital that ensures sustainable growth in a closed economy.

Authors and Affiliations

Sang Won Yoon, Chang-Ho Yoon

Keywords

Related Articles

Investigating operations of industrial parks in Beijing: efficiency at different stages

Industrial parks enjoy significant importance in many countries and regions. This study presents a multi-stage operational process to evaluate the efficiency of parks at each stage using an empirical study of Beijing. Th...

The danger of long-term unemployment and measures for its reduction: the case of Croatia*

Long-term unemployment (when a person is jobless for more than 12months) can have serious negative consequences for the individual, society and its economic system. People who are unemployed for a long-term period find i...

Stress and burnout of human resources at the level of Mehedinti County – Romania organisations

The evolution of human society as a whole has generated, in addition to the positive aspects (growth of living standards, improving communication, easy access to breakthrough technologies and information, etc.), a number...

The impact of institutional quality on foreign direct investment inflows: evidence for developed and developing countries

This study examines the impact of institutional quality on foreign direct investment (F.D.I.) by categorising the countries as developed or developing. We measured institutional quality by the sum of control of corruptio...

The effect of presidential election in the USA on stock return flow – a study of a political event

The subject of this paper is to determine the statistical significance of abnormal return that appeared on the New York Stock Exchange after the presidential election in the USA in November 2012. The analysis is focused...

Download PDF file
  • EP ID EP543480
  • DOI 10.1080/1331677X.2018.1498008
  • Views 55
  • Downloads 0

How To Cite

Sang Won Yoon, Chang-Ho Yoon (2018). On the impossibility of sustainable growth in a manufacturing based economy. Economic Research-Ekonomska Istraživanja, 31(1), 1526-1538. https://europub.co.uk/articles/-A-543480