Write a short description of the following:
Purposes that the introduction accomplishes. In particular, which "moves" are used in each introduction.
What words and phrases are used to introduce these moves?
- Raise a Question for move 2-
However, ..... - Move 2Identify verbs used to describe Move 3 (e.g., “This paper will describe,” or “This paper will analyze.”)
- The aim of this study is to analyze.... and investigate....- In this paper, we consider...- This paper contributes to a comprehensive approach....As part of Move 3, does the paper discuss its methodology, approach, or theoretical framework.
- Exactly for example in "Finance VS Growth", they use many frameworks.Korea’s Information and Technology Boom and Transformation After the CrisisI. Introduction
In 1998 the Korean economy appeared to be hopeless in the aftermath of the financial crisis. When in October 1998 the Ministry of Finance and Economy (MOFE) predicted 2 percent growth for the next year, criticism of government’s rosy prediction rained down. At the time, most private research institutions predicted negative economic growth for the next year. Even at the end of 1998, most predictions were for less than 1 percent growth in gross domestic product (GDP) at best. The International Monetary Fund (IMF) predicted a 1 percent contraction in its report, World Economic Outlook, and the World Bank predicted 1 percent growth in its Global Economic Prospects, each published in December 1998. Private predictions remained between –1.8 and 1.0 percent growth for 1999.
The composite index of leading indicators, which predicts economic conditions several months in
advance, made negative economic growth seem inevitable; most variables in the composite index recorded dramatic declines compared with the previous year. For example, the producers’ shipment index, which predic ts durable consumption about 6 months in advance, fell from –20.3 to –26.5 percent. The floor area indicated in building construction permits foretold a decline in construction investment from –63.4 to –72.1 percent, and the industrial production index for intermediate construction fell from – 30.2 to –32.7 percent between July and October 1998. Predictions based on econometric models, eventhose using the optimistic assumption of huge inventory adjustments, suggested a maximum of 1 percent growth.
One year later, however, the picture was very different. In fact, in 1999 the GDP growth rate registered a 10.9 percent increase, compared with negative 6.7 percent in 1998. The next year, 2000, saw 9.3 percent growth – two strong years in succession. It had been impossible to predict such strong growth and rapid recovery from the economic data in 1998. In view of the unpredictability of the recovery, some have labeled it another “miracle.” The key to Korea’s miracle recovery was the emergence of a new industry based on information and communication technology (ICT), an area that had not been significant in national accounting previously. The year 1998 and the first part of 1999 had been the worst in terms of unemployment and bankruptcy in the modern history of Korea’s economy. Business
activity had all but come to a halt, unemployment rates were high, a series of bankruptcies emerged in the wake of a credit crunch, and so on. The miracle recovery raised a number of questions including the biggest puzzle of all --
why the new ICT industry began to emerge, to put forth its blossoms, in this very dark economic period.The aim of this study is to analyze the progress of Korea’s recovery during 1999 and 2000 and
investigates the momentum of the rapid development of the new ICT industry. Not only the economic factors that spurred the recovery, but also the philosophical and cultural factors that influenced Korea’s recovery from its worst economic conditions in modern times are considered. Non-economic factors are important to a complete analysis of the recovery progress because the “miracle” cannot be explained by economic factors alone. Section II examines the progress of recovery by tracing the economic situation from 1998 to 2000, and Section III describes the rapid development of information and communication technology and the boom of venture firms. Section IV reviews the momentum of the emerging new industry from the traditional economic viewpoint, and Section V introduces additional cultural factors to explain Korea’s rapid recovery through the development of the ICT industry. Conclusions are presented in Section VI.
Finance Causes Growth: Can We Be So Sure?1. Introduction
In recent years, there has been a revival of interest in the role played by financial development in longterm economic growth. A host of studies carried out over the past decade, beginning with King and Levine (1993), have found evidence in favour of the Schumpeterian view that a well-developed financial system promotes growth by channelling credit to its most productive uses. This has now become the conventional wisdom.
In this paper, we consider whether the empirical foundations upon which the conventional wisdom has been built are sufficiently secure to allow us to draw policy-oriented insight. If one is to base policy on this body of work, it is essential that we have a clear understanding of how, when and under what circumstances, finance will affect economic growth. Closer scrutiny of some of the most important empirical work on this topic, however, reveals that the relationship between financial development and growth may be more complex than is implied by the approach generally adopted in the literature.Our interest is in establishing how well the empirical literature captures the theoretical link between finance and growth.
Using the data and methodologies adopted in the influential papers of Rajan and Zingales (1998a) and Levine and Zervos (1998), we undertake some additional econometric analysis in order to shed light on two key issues. First, motivated by the early literature on finance and development (Gershchenkron, 1962) as well as recent theoretical (Boyd and Smith, 1998) and empirical contributions (Rousseau and Wachtel, 1998; Carlin and Mayer, 2003), we
examine whether the estimated effect of finance upon growth is stable across countries at different stages of economic development. In this regard we ask whether it might, in fact, be inappropriate to pool countries with different levels of industrialisation. Second, we examine the extent to which the methodologies employed successfully isolate the impact of financial development, recognising that there may be a host of correlated institutional, legal, cultural and political factors that have an independent impact upon growth.
Our investigation reveals that the evidence in favour of a linkage between finance and growth is
strongest for countries at an earlier stage in their economic development, with bank finance of particular importance. For measures of stock market and broad financial development, however, the estimated linkage appears to be highly influenced by just a few countries; namely those East Asian economies in the peak-growth phase of their early industrialisation during the periods covered by these studies. We conclude that, for such countries, it is difficult to separate the role of finance from other potentially correlated institutional factors.
Our focus on the work of Rajan and Zingales (1998a) and Levine and Zervos (1998) reflects the fact that these authors have successfully steered the empirical literature towards the adoption of more sophisticated measures of financial development. Levine and Zervos (1998) took us beyond the traditional focus on the intermediation sector, capturing, in their specifications, the independent effects of both banks and stock markets upon growth. Furthermore, recognising that measures of the size of the financial sector cannot capture the efficiency with which financial institutions and markets carry out their functions, the authors introduced a number of innovative measures, such as stock market turnover, as a proxy for stock market liquidity. Rajan and Zingales (1998a) also took a broader view of financial development, introducing accounting standards as an indicator of a country’s financial sophistication.
The empirical work in this paper, therefore, draws upon the domestic credit and accounting standards measures adopted by Rajan and Zingales (1998a), and the bank credit, stock market capitalisation and stock market liquidity measures employed by Levine and Zervos (1998).
The paper is organised as follows. In Section 2, we review the key contributions to the empirical
literature, focussing on how authors have sought to measure financial development and establish causality. In Section 3, we outline some stylised facts, going on in Sections 4 and 5 to present the results from our additional econometric tests. We employ Rajan and Zingales’ (1998a) dataset and methodology in Sections 4.1 and 4.2 to test first for the stability of the results across OECD and non-OECD samples, and then for omitted variables. We then adopt Levine and Zervos’ (1998) data and methodology in Sections 5.1 and 5.2 to explore the robustness of the role of stock market development. Section 6 concludes. Details of data and sources are provided in the Data Appendix.
Toward a Dual Education System: Poverty Reduction in BoliviaI. INTRODUCTION AND OVERVIEW
Despite the implementation of a series of stabilisation and structural
adjustment measures since 1985, Bolivia’s poverty level has not changed as much
as expected by the advocates of these reforms. To this date, Bolivia remains one
of the poorest countries in Latin America. The
limited success of development
strategies on efficiency as well as on equity grounds is no exception among the
countries that followed the recommendations of the World Bank and the
International Monetary Fund (IMF) in the 1980s and 1990s. The tendency of the
Washington institutions to promote rapid market liberalisation as the
panacea of
economic development seemingly irrespective of a country’s specific
circumstances has become increasingly under attack. “
Give them an inch of
nuance, and they’ll take a mile of the status quo” (Kanbur and Vines, 2000, p.
101) seems to be an appropriate description of their stance and attitude. By the
mid-1990s, they were regarded by the public in many developing countries as an
enemy of the poor (Kanbur and Vines, 2000, pp. 100-101). Liberalisation was
considered as the basis of growth, and growth combined with the provision of
basic educational, health, and social services would reduce poverty. The
dissatisfaction with the results of the free-market approach, in particular in the
aftermath of the East Asian crisis, has led to a more comprehensive
understanding of poverty and poverty reduction measures in recent years. In
particular, institutional aspects are stressed more frequently, going beyond the
state-versus-market dichotomy. The structural characteristics of developing
economies are recognised and emphasised (for example Meier, 2000, p. 39). On
an operational level, an example for this new thinking are the Poverty Reduction
Strategy Papers (PRSPs) demanded from the participants in the Highly Indebted
Poor Countries (HIPC) Initiative, e.g. from Bolivia.
This paper contributes to a comprehensive approach to poverty reduction,
which takes into account the structural conditions prevailing in the labour market
of a developing economy. The labour market transmits technological and
structural changes and policies into employment and incomes. In contrast to rural
areas, people in urban economies rely on market exchanges and, consequently,
on cash income. The poor generate cash income almost exclusively on the labour
market. Thus, the understanding of the labour market is crucial to the analysis of
urban poverty. The central policy themes in urban poverty reduction, such as
education, social protection, and microenterprise development, are closely related
to the labour market. Thus, a labour market perspective yields important insights
for comprehensive poverty reduction strategies. This contrasts with the view of
many analysts, who still address labour market issues under the label of
liberalisation and flexibilisation (Guasch, 1999).Segmentation and the presence of an informal sector have often been
referred to as the principal characteristics of the labour market in developing
countries. In the second chapter, a labour market view is developed that
emphasises structural features and constraints. The guiding ideas will be
informality as a descriptive and segmentation as an analytical concept.
Different approaches to labour markets in developing economies are reviewed.
Segmentation is found to be driven by divergent demand-side developments
combined with limited labour market mobility. In segmented labour markets,
which exhibit an important degree of informality, vicious circles will be
identified that keep people trapped in jobs with low incomes and, therefore, in
poverty. The third chapter analyses the structural characteristics and the
functioning of the Bolivian labour market. To this end, the degree of informality
in the labour market is explored. Empirical studies are reviewed that support the
hypothesis of a segmented labour market with vicious poverty circles. The policy
implications for poverty reduction efforts in Bolivia are formulated in the fourth
chapter. The last chapter concludes with an outlook with regard to future
theoretical and empirical research, and policy formulation.