Latest Papers

The latest papers published in the World Economics Journal.



The NTV Model for Total Factor Productivity The NTV Model for Total Factor Productivity
Andrew Smithers, World Economics, June 2019
The consensus model for total factor productivity is unsatisfactory; the alternative, non-technology variables (‘NTV’) model resolves the objections to it and should therefore be preferred by economists. The key objections to the consensus model are that it is untestab ... More


National Output as Interest on National Capital National Output as Interest on National Capital
John Hartwick, World Economics, June 2019
Current national output can be consider as deriving from a collection of capital goods, including a natural capital good. A model is created which considers Net National Product as interest on capital in the economy: a new approach which touches in a non-trivial way on ... More


A Modest Challenge to GDP Reforms A Modest Challenge to GDP Reforms: An Economist’s View
Mitsuhiko Iyoda, World Economics, June 2019
This paper explores the importance and possibility of GDP reform by examining the weaknesses of the current GDP concept. The GDP concept itself involves flawed metrics; there are more effective measures of economic and societal well-being. Here we limit our argument to ... More


Did Rating Agencies Make the Euro Crisis Worse? Did Rating Agencies Make the Euro Crisis Worse?
Colin Ellis, World Economics, June 2019
There is a commonly held belief that the euro debt crisis was exacerbated by a spiral of higher yields resulting from rating agencies downgrading euro area sovereigns, but there has been little formal analysis of this hypothesis. Data on ratings and market signals on cr ... More


Estimating Loss-in-Output as a Cost of a Financial Crisis Estimating Loss-in-Output as a Cost of a Financial Crisis
Vighneswara Swamy, World Economics, June 2019
The global financial crisis caused a huge loss of economic output, depletion of financial wealth, extended unemployment, psychological consequences and other significant costs. A quantitative exploration of modelling loss-in-output as a cost of financial crisis using m ... More


How Accurate are Global Trade-Finance Data? How Accurate are Global Trade-Finance Data?
Brian Sturgess, World Economics, June 2019
Over 80% of international trade is financed by some form of credit, but the size of the trade finance market has received little attention by economists. It has been estimated that there is currently a world trade finance gap of around US$1.5 trillion acting as a drag o ... More


Income Inequality and Foreign Direct Investment in Australia Income Inequality and Foreign Direct Investment in Australia: A Comprehensive Review
Anna Ploszaj, Tarlok Singh & Jen-Je Su, World Economics, June 2019
Income, wealth and consumption are three main factors that determine people’s standard of living. Many organisations in Australia report that in recent years the Australian standard of living has been changing, with some people falling behind. This paper examines the ma ... More


Why Do Currency Crises Recur? Why Do Currency Crises Recur?: Lessons from Argentina and Turkey
Graham Bird, Graham Bird & Graham Bird, World Economics, June 2019
Argentina and Turkey experienced currency crises in 2018, having also had crises in 2001. Why do crises recur? There are three generations of model that help to explain in theory why currency crises occur, although in practice the theories need to be amalgamated. The re ... More


Inequality: Concepts, Data, Perspectives and Solutions Inequality: Concepts, Data, Perspectives and Solutions
Michael Chibba & John M. Luiz, World Economics, March 2019
A comprehensive treatise on inequality from economic, social, business and metrics/data perspectives is lacking in the literature and this treatise fills that void. We posit that: (a) neoclassical economics has failed to address inequality within nations; (b) the social ... More


On Measuring the Money Supply On Measuring the Money Supply
Steve H. Hanke, World Economics, March 2019
Oskar Morgenstern warned in The Limits of Economics (1937), that the formulation of economic policy was handicapped by the lack of relevant data and errors in its measurement. In this paper, the measurement of the money supply is used to illustrate Morgenstern's point. ... More


The Informal Economy: Who Wins, Who Loses and Why We Care The Informal Economy: Who Wins, Who Loses and Why We Care
Giovanna Maria Dora Dore, World Economics, March 2019
The informal economy is one of the most complex economic and political phenomena of our time. It exists in rich and poor countries alike, and currently employs almost half of the world’s workers, about 1.8 billion people. •At a value of US$10 trillion, the informal econ ... More


Mobility in Income Poverty Between 2010-2015 in Egypt Mobility in Income Poverty Between 2010-2015 in Egypt
Heba Farida Ahmed Fathy El-laithy & Dina Magdy Armanious, World Economics, March 2019
This study assesses poverty dynamics in Egypt during 2010-2015 and examines the characteristics of transient poor people. Reliability Index, Relative and Absolute mobility are used to assess mobility. The results showed that there is a substantial amount of mobility b ... More


The European Union Must Defend Andreas Georgiou The European Union Must Defend Andreas Georgiou
Nicolas Véron, World Economics, March 2019
In August 2010, Andreas Georgiou, former President of the Hellenic Statistical Authority, was charged with having harmed Greece's national interests. In this paper, Nicolas Veron argues that the relentless prosecutions against Georgiou are more than a matter of shamefu ... More


The Comparative Analysis on the Population Control Policies in China and India The Comparative Analysis on the Population Control Policies in China and India
Min-kyung, KIM, World Economics, March 2019
Population is a source of a nations’ strength and national security, but some overpopulated countries in Asia are trying to lower their population growth, even implementing population control policies. This paper conducts a comparative study of China and India to explor ... More


Davos 2019 in the Uncharted Waters of Digital Globalization Davos 2019 in the Uncharted Waters of Digital Globalization
Theodore Pelagidis, World Economics, March 2019
Western world leaders in Davos 2019 seemed unable to handle changes propelled by the wave of digital globalization. Geopolitical tensions and “wealth gap politics” are among the major concerns for the current global economy. Risks are related to the extent of the expect ... More


Saudi Arabian Labour Market Data Outlines the Challenges of Reform Saudi Arabian Labour Market Data Outlines the Challenges of Reform
Brian Sturgess, World Economics, March 2019
Saudi Arabia’s Council of Ministers approved an ambitious National Transformation Programme (NTP) in June 2016 with the aim of carrying out a complete restructuring of the economy. The implementation of Vision 2030 has major implications for the structure of Saudi Arab ... More


How Can Sovereign Wealth Funds Mitigate Natural Capital Depreciation in Developing Countries? How Can Sovereign Wealth Funds Mitigate Natural Capital Depreciation in Developing Countries?
Edward B. Barbier & Jo Burgess, World Economics, December 2018
Key indicators of economic performance for resource-rich developing economies are net national income and savings that are adjusted for natural capital depreciation. These indicators vary inversely with the reliance of developing countries on primary product exports, su ... More


Leveraging the African Private Sector to Enhance the Development Impact of the African Continental Free Trade Area Agreement Leveraging the African Private Sector to Enhance the Development Impact of the African Continental Free Trade Area Agreement
Hippolyte Fofack, World Economics, December 2018
By July 2018 the African Continental Free Trade Area had been signed by 49 African governments, accounting for over 86% of total African trade and 77% of combined GDP, and a total population of 1.2 billion. The Agreement has the potential to accelerate the process of di ... More


Analysing Intra-African Trade Analysing Intra-African Trade: AFCFTA: Much Ado About Nothing?
Peter Draper, Habtamu Edjigu & Andreas Freytag, World Economics, December 2018
In March 2018, most African heads of state gathered in Kigali to sign the African Continental Free Trade Agreement (AfCFTA), marking the culmination of intense negotiations. A number of central issues remain unresolved: it is an agreement with a substantial sensitive/ex ... More


Growth in Oil- and Non-Oil-Producing Countries Growth in Oil- and Non-Oil-Producing Countries: Domestic Policies and External Spillovers
Magda Kandil, World Economics, December 2018
Using data for a sample of oil- and non-oil-producing countries this article studies determinants of growth to assess the relative importance of domestic policies and external spillovers. For net oil exporters, a higher price of oil helps increase resources for spendin ... More


Designing a Global Financial Safety Net Designing a Global Financial Safety Net
Graham Bird, World Economics, December 2018
It often is neither possible nor sensible to immediately correct the underlying macroeconomic disequilibria that a financial and economic crisis reveals. To cushion the process of adjustment a global financial safety net is needed: owned reserves, regional financing and ... More


CryptoRuble: From Russia with Love CryptoRuble: From Russia with Love
Zura Kakushadze & Jim Kyung-Soo Liew, World Economics, December 2018
A large number of decentralized cryptocurrencies has emerged since the inception of Bitcoin in 2009, with a total market size exceeding $170bn. Recent reports suggest that Russia will issue its government-backed cryptocurrency, CryptoRuble, in the middle of 2019. Russi ... More


US-China Trade War Data: Truth and Post-Truth US-China Trade War Data: Truth and Post-Truth
Anirban Sengupta & Siddhartha K. Rastogi, World Economics, December 2018
Data on the importance of US–China trade and fundamental trade theory suggest that the USA is in a relatively weak position in its trade war. Not only will the protectionist measures of the Trump administration reduce the welfare of American citizens (theory of competi ... More


An Economic Comparison of Greece and Italy An Economic Comparison of Greece and Italy
Theodore Pelagidis, World Economics, December 2018
In Greece and Italy, populist parties have taken power in recent years, a result of coalition between radical left and far-right parties. Both countries are of concern to the European Commission—Greece’s ‘enhanced surveillance’ could end in another bail-out program; It ... More


David Henderson: 1927-2018 David Henderson: 1927-2018: A Personal Memorial
Ian Byatt, World Economics, December 2018
David Henderson was both a scholar and a practising economic adviser. He was always concerned with what was going on in policy analysis and in the technical economics, or other thinking, which lay behind economic policy. He was widely and deeply read, not only in econom ... More