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
- EP ID EP543480
- DOI 10.1080/1331677X.2018.1498008
- Views 54
- Downloads 0
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...
Difference or not to difference an integrated time series? An empirical investigation
This paper uses the gross domestic product growth rates of Malaysia, Thailand, Indonesia and China in an empirical examination to determine whether an integrated time series should be differenced before it is used for fo...
Upgraded data envelopment analysis model application for total productivity comparison in major airports of the European Union
In order to compare the productivity of airports different scientific approaches are used by various authors. Previous research has shown wide application of the data envelopment analysis (D.E.A.) model for productivity...
An empirical analysis of factors affecting competitiveness of C.E.E. countries
This paper analyses the main economic factors that are influencing the competitiveness of Central and Eastern European (C.E.E.) countries. The research was carried out on a sample of ten countries (Bulgaria, Czech Republ...
Drivers of entrepreneurial intentions among business students in Macedonia
Studies find that entrepreneurial intentions determine the likelihood of starting a business whereas the Theory of Planned Behaviour suggests that intentions capture the motivational aspect of behaviour and are dependent...