On the micro level, infrastructure has a direct interface on the quality of life concerning provision of health care systems, education, housing, civic, utilities, transport, corrections and justice systems. Thus, providing infrastructure plays a dynamic role in in? uencing socio-cultural and economic determinants. (Oxford, 1994) As a ? rst step, this paper tries to identify social infrastructure as a subset of socio-economic facilities provided by institutions and government policies. This is then used to legitimate social infrastructure as a most important growth affecting determinant on the basis of Hall and Jones (1998).
As the theoretical framework is build up, this leads to the main part of the paper focusing on the empirical aspects of social infrastructure in? uencing economic growth in Austria as a case example for developed countries. In order to interpret the in? uences of the chosen variables as elasticities, variables having constant increasing growth rates and to limit heteroscedasticity, a Log Log ordinary least square time series estimation is used. Based on this, Dataset, estimated model, the variables, transformation and their coe? cients will all be discussed and analyzed in the last chapters, summing up with a resume. Building up the theoretical framework Infrastructure can broadly be de? ned as long-term physical assets that operate in markets with high barriers to entry and enable the provision of goods and services. These essential services should be provided to enable development to 2 BUILDING UP THE THEORETICAL FRAMEWORK 5 occur. By the presence of social and economic infrastructures, socio-economic development can be facilitated and accerlated. Not having these facilities in place, development will be very di? cult and in fact can be likened to a very scarce commodity than can only be secured by a very high price. Familoni, 2005) As basic step, ? rst social infrastructure is di? erentiated from economic infrastructure. Then, as this paper is interested in social facilities and their in? uence on economic growth, a next step will be the legitimization of social infrastructure as a main determinant accerlating economic growth on basis of the work of Hall and Jones (1998).
The Term Paper on Economic/Social transitions in literature
The great plays staged in London and its more modern counterpart, the films, that are accessible to all, depict the social issues, biases and struggles of not only the characters in the plays or the films, but also the society of that time. As for instance, the acquisition of wealth as a social activity, which is very primitive to man, as primitive as his quest to survive, has been portrayed in ...
2. 1 Economic Infrastructure Economic infrastructure can broadly be identi? ed as internal facilities of a country that make business activity possible, such as communication, transportation, and distribution networks, ? ancial institutions and markets, and energy supply systems provided by institutions or government policies. Aigbokan (1999) states the e? ect of providing economic infrastructure in the following way: 1. Provides services that are part of the consumption bundle of the residents 2. Increases aggregate demand and provides short-run stimulus to the economy 3. Augments output and productivity through serving as an input into private sector production Further, the provision of economic infrastructure expands the productive capacity of the economy by rising quantity and quality of given infrastructure.
Produciton Possibility Frontier shifts with the expansion of the economic infrastructural base by accerlating economic growth and enhancing the pace of socio-economic development. (Aigbokan, 1999) 2. 2 Social Infrastructure Social Infrastructure can be de? ned as a subset of the infrastructure by typically including assets that accommodate social services. Provided by central or local government or related entities, capital movements ? ow into health, education, housing, civic and utilities, transport, justice and correction sectors. One can see, social capital can be ascribed enormous externalities.
The Term Paper on The Social Economic And Legal Impact Resulting From EBusiness
This project is to investigate and analyse the social, economic and legal impact resulting from the adoption and growth of eBusiness. The project also investigated the web-based business of Rosenbluth and Dell. eBusiness is not just the buying and selling of goods and services it is also servicing customers, collaborating with business partners and conducting electronic transactions within an ...
Especially education and health are goods in which social marginal productivity exceeds marginal productivity. (Familoni, 2005).
Further more, Social infrastructure affects the amount and type of investment by the creation of new ideas, investment 6 in physical capital, foreign investment that transfers technology. (Hryshko, 2009) Therefor development of social infrastructure is instrumental in contributing to substantial improvements in human resources development which, in turn, initiate and accelerate economic development. 2. 3 Determining the role of Social Infrastructure
Hall and Jones (1998) asked themselves in their working paper why output per worker varies enormously across countries. They tried to show on an accounting basis that di? erences in physical capital and educational attainment is only limited in its ability to explain the variation in output per worker by ? nding large amounts of variation in the level of the Solow residual across countries. Going to a deeper level, they tried to document the di? erences in capital accumulation and productivity through the in? uence of institutions and government policies providing social infrastructure.
Because of achieving higher rates of investment in physical capital and human capital and therefor achieving higher levels of output per worker in the long run, their empirical analysis suggests that success of each of this fronts is driven by social infrastructure. Their major ? ndings can be summarized by the following statements: • Income across countries is largely driven by di? erences in social infrastructure causing large di? erences in capital accumulation, educational attainment and productivity. • Predictions of growth theory can successfully be considered in a crosssection by examining the levels of income across countries. Relating to the growth accounting literature, levels accounting ? nds a large residual that varies considerably across countries. • Large variations in output per worker across countries is only partially explained by di? erences in physical capital and educational attainment. The purpose of their paper was to call attention to the strong relation between social infrastructure and output per worker by summarizing their analysis of the determinants of di? erences in economic performance among countries as: Output per Worker Productivity) 3 THE MODEL 7 itself and it’s in? uence of the describing determinants a? cting growth in the last 42 years. The work of Hall and Jones (1998) therefor forms the theoretical basis of a detailed analysis of social infrastructure a? ecting economic growth, which this paper is willing to accomplish. 3 The Model We use a log-log model – the dependent variable as well as all explanatory variables is transformed to logarithms, because each of the variables has constant increasing growth rates and the appearance of heteroscedasticity, when the standard deviations of a variable monitored over a speci? c amount of time, are nonconstant, will be limited. The variables have an interpretation as elasticises.
The Term Paper on Social Capital in Australia
Social capital is the political, economic and social benefits derived from relationships, norms and co-operation between individuals and groups. This shapes the quality of social cohesion that is crucial for economic and social development (Woodhouse, 2006). The interaction between people of different social network increases community productivity by reducing the cost of carrying out business ...
Private health expenditure includes direct household (out-of-pocket) spending, private insurance, charitable donations, and direct service payments by private corporations. The highest PHS was in the year 2011 with 8, 97billion US-Dollars and the average PHS is 3,73billion US-Dollars. Figure 3: PHS 4. 1. 4 Absolute Public Health Spending (PUHS) Public health expenditure consists of current and capital spending from government (central and local) budgets, external borrowings and grants (including donations from international agencies and nongovernmental organizations), and social (or compulsory) health insurance funds.
