Browsing Barney Barnett School of Business and Free Enterprise by Author "Connors, Joseph S."
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ItemThe impact of democracy on the transition through the middle income range(Springer, 2019) Buser, Whitney; Connors, Joseph S.This paper finds evidence in support of the view that democracy further facilitates growth through middle income thresholds defined between $8000 and $15,000 GDP per capita. Recent studies suggest that rapidly developing economies experience an economic slowdown when per capita income approaches this range. Prior research indicates that structural reforms supportive of democracy are needed to transition beyond these thresholds. Our analysis corroborates these findings and may have important implications for rapidly growing countries approaching these income levels, such as China and India. ItemThe rise and fall of worldwide income inequality, 1820–2035(Southern Economic Association, 2020-07-01) Connors, Joseph S.; Gwartney, James D.; Montesinos-Yufa, Hugo MoisesThe development process and the demographic changes that are a central element of it explain both the nearly two centuries of increasing income inequality prior to 2000 and the reversal of this trend that followed. There are at least four phases of the development process: (1) Malthusian pre-development, (2) initial growth, (3) improved productivity, and (4) receding growth. Prior to the industrial revolution, the entire world was in the Malthusian Phase 1. During 1820–1950, about 20 countries, mostly in Western Europe, North America, and Oceania, moved out of Phase 1 and began to grow more rapidly. But, per capita income levels in the rest of the world continued to stagnate and worldwide income inequality widened continuously for at least 150 years following the Industrial Revolution. Around 1960, developing countries began to escape the Malthusian trap and move into Phase 2 of development. By the latter part of the 20th century, many developing countries were achieving growth rates equal to or greater than the high-income countries, slowing the rise in inequality. By 2000–2015 most developing countries were in either Phases 2 or 3 of development, while most of the high-income countries were moving into Phase 4, leading to a sharp reduction in worldwide income inequality. The recent reductions in worldwide income inequality are likely to continue in the near term because of the continuation of the more favorable demographic changes in developing compared to high-income countries. ItemThe transportation-communication revolution: 50 years of dramatic change in economic development(Cato Institute, 2020-12-01) Connors, Joseph S.; Gwartney, James D.; Montesinos-Yufa, Hugo MoisesThe Industrial Revolution is a remarkable economic event in world history. It marked the dividing line between the old world of subsistence income levels and the new world of sustained economic growth. Beginning around 1800, technology, machines, and capital formation were finally able to outrun population growth, leading to sustained increases in both income levels and life expectancy. Currently, the world is in the midst of a second economic revolution that is both broader and stronger than the Industrial Revolution, but few are aware of it. During the past half century, expansion in international trade, increased entrepreneurial activities, improvements in economic institutions, and changes in demographics have triggered a remarkable increase in the living standards of people throughout the world. This article will explain the origins and impact of the current economic revolution—the Transportation-Communication Revolution—and compare it with the Industrial Revolution.