This posting shows
similarities in the wording of the following article by Dr. Douglas Agbetsiafa
and the works of other, earlier published authors:
Agbetsiafa, Douglas
(2008) Examining the Trade-Growth Nexus in the Economic Community of West
African States, Journal of African Development, 10(1): 51-69.
Available at: http://www.afea-jad.com/JAD-Spring-08.pdf
Douglas Agbetsiafa is Professor of Economics and Chair of the Economics Area at Indiana University South Bend (IUSB). He holds a PhD in Economics from the University of Notre Dame. That PhD also contains wording that is similar to earlier published authors.
Douglas Agbetsiafa is Professor of Economics and Chair of the Economics Area at Indiana University South Bend (IUSB). He holds a PhD in Economics from the University of Notre Dame. That PhD also contains wording that is similar to earlier published authors.
The journal itself claims
that:
The goal is to make the JAD an open-minded, fair,
and receptive vehicle for high quality, innovation development concepts and
policy recommendations, regardless of the method, theory, or disciplinary
origin.
…
ORIGINAL MANUSCRIPTS ONLY
Submission of a manuscript to JAD implies that the
manuscript is original, is not being considered for publication elsewhere, and
has not been published elsewhere in its current form or in a revised version.
Aside from having wording in
common with that of other, earlier published authors, some of the text here is
similar to ...
Agbetsiafa, Douglas (2004) Long-Run Relationship Between Domestic Saving
and Investment in Ten African Countries: Further Evidence from Cointegration Models,
Southwestern Journal of Economics, Vol. VI No. 1 pp. 1-19, March 2004.
From Agbetsiafa article, page
51:
First, many of the studies employed single equation ordinary
least squares regression methodology to examine the relationship between
openness to trade and economic growth, and are therefore, likely to suffer from
simultaneous equation bias. Secondly, those studies that employed ordinary
least squares regression analysis did so without examining the time series
properties of trade and growth series. Indeed, Nelson and Plosser (1982) have
shown that most macroeconomic time series data are nonstationary in their levels,
but stationary when differenced.
Compare this to:
First, most of the studies used single
equation ordinary least squares (OLS) regression method to examine the
relationship between saving and investment. These studies are likely to suffer
from simultaneous equation bias leading to fallacious conclusions. Second,
studies that employed OLS regression analysis did so without first examining
the time series properties (unit roots) of saving and investment. Nelson and
Plosser (1982) have shown that most macroeconomic time series data are
nonstationary in their levels but stationary when differenced.
Emmanuel Anoruo (2001) The Savings-Investment Connection: Evidence from
the ASEAN Countries. The American Economist, 45(1): 46-53, at
page 47.
From Agbetsiafa article, page
51:
Fourthly, most of the studies in extant literature
concentrated on developed and developing regions of the world with little focus
on the West African sub-region with its unique characteristics of low growth,
high external indebtedness, and macroeconomic
and structural imbalances.
Compare this to:
Fourth and finally, most of the studies
in the literature concentrated on the relationship between saving and
investment in the developed countries [mainly for the members of the
Organization for Economic Cooperation and Development (OECD)] with little or no
attention devoted to countries with nascent economies.
Emmanuel Anoruo (2001) The Savings-Investment Connection: Evidence from
the ASEAN Countries. The American Economist, 45(1): 46-53, at
page 47.
From Agbetsiafa article, page
52:
The classical and neoclassical theory seeks to explain
the benefits from trade by contrasting the likely outcomes that might prevail
with free trade than with autarky. Central to the classical and neoclassical
theory is the notion of comparative advantage that would lead to an efficient
reallocation of international resources, largely due to specialization and
division of labor.
Compare this to:
The conventional trade theory seeks to explain the
benefits from trade by contrasting the likely outcomes of free trade with those
of autarky. Central to the neoclassical theory is the notion of the comparative
advantage that, if exists, will lead to an efficient reallocation of
international resources, largely due to specialization and the division of
labor.
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 306.
From Agbetsiafa article, page
52:
In the conventional theory, the gains from trade come
from the import side.
However, exports have an indirect but pivotal role as
“exports allow the country to “buy” imports of intermediate goods on more
favorable terms than if produced at home” (Meier, 1995, p. 459). The
neoclassical theory is essentially supply oriented (Federici and Marconi,
2002), though the link between exports and growth can be traced from some
earlier works. In his demand-oriented theory of growth, Kaldor (1970) identifies
foreign demand as the ultimate constraint on growth in an open economy. In the staple
theory of growth, extensive growth of export of primary or staple product
having comparative advantage is regarded as a source of higher growth rates of
output.
Compare this to:
The conventional trade theory seeks to
explain the benefits from trade by contrasting the likely outcomes of free
trade with those of autarky. Central to the neoclassical theory is the notion
of the comparative advantage that, if exists, will lead to an efficient
reallocation of international resources, largely due to specialization and the
division of labor. Specialization in line with comparative advantage helps
optimize the production of a trading country. In the conventional theory, the
gains from trade come from the import side. However, exports have an indirect
but pivotal role as “exports allow the country to ‘buy’ imports (of
intermediate goods) on more favorable terms than if produced at home” (Meier,
1995, p. 459). The neoclassical theory is essentially supply-oriented (Federici
and Marconi, 2002).
However, some earlier studies shed
light on the exports growth link. In his demand-oriented theory of growth,
Kaldor (1970) identified foreign demand as the ultimate constraint of growth in
an open economy. In the staple theory, extensive growth of export of the staple
or primary product having comparative advantage is regarded as an important
source of growth.
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 306.
From Agbetsiafa article, pages
52-53:
The two basic differences between the new growth theory
and the neoclassical theory are: (a) various social and economic policies are
tipped to affect the growth rate in the new growth theory, while in the
neoclassical theory, these policies affect only the level of real income not
the growth rate; and (b) in the neoclassical theory, physical capital is deemed
as a transitory source of growth as it is subject to diminishing returns, while
in the new growth theory, both physical and human capital are assumed to
exhibit increasing returns to scale.
Compare this to:
Two basic differences between the new
growth theory and the neoclassical theory are:
a) in the new growth theory, various
social and economic policies are tipped to affect the growth rate, while in the
neoclassical theory, these policies affect only the level of real income not
the growth rate; and b) in the neoclassical theory, physical capital is deemed
as a transitory source of growth as it is subject to diminishing returns to
scale while in the new growth theory, both physical and human capital are
assumed to exhibit increasing returns to scale.
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 307.
From Agbetsiafa article, page
53:
The source of increasing returns is knowledge, which is
created by acquisition of skills through education and training, learning by
doing and innovation or research and development (Grossman and Helpman, 1991). Aghion
and Howitt (1992) hold that industrial innovations resulting in new and
improved intermediate products have positive implications for changes in
technology that in turn stimulate growth. Further, the secondary effects of
learning by doing or investment in education may even exceed the direct effects
on growth (Coe and Helpman, 1995).
Compare this to:
The source of increasing returns is
knowledge, which is created by the acquisition of skills through education and
training, learning by doing and innovation or research and development (Grossman
and Helpman, 1991). Aghion and Howitt (1992) held that industrial innovations
resulting in new and improved intermediate products have positive implications
for changes in technology that in turn stimulate growth. Further, the secondary
effects of learning by doing or investment in education may even exceed the
direct effects of trade on growth (Coe and Helpman, 1995).
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 307.
From Agbetsiafa article, page
53:
Grossman and Helpman (1991) describe interactions with
the outside world as the most important mechanism for promoting innovation and
growth in a small economy. The exchange of ideas can occur through personal
contacts and use of imported intermediate products. Romer (1993) also holds a
similar view. Roemer explains the poorness of a developing country in terms of
its lack of physical objects such as factories, and roads (`Object gaps’) and
lack of ideas or knowledge (`Idea gaps’) to create values compared to a
developed country. An object gap is manifested in savings and capital
accumulation while an idea gap includes insights about packaging, marketing,
distribution, payment systems, quality control as well as the technology gap
among others.
Compare this to:
Grossman and Helpman (1991) described
interactions with the outside world as crucial to promoting innovation and
growth in a small economy. The exchange of ideas can occur through personal
contacts and use of imported intermediate products. Romer (1993) also held a
similar view, and explains the poorness of a developing country in terms of its
lack of physical objects such as factories and roads (“object gaps”) and lack
of ideas or knowledge (“idea gaps”) to create values compared to a developed
country.
An object gap is manifested in savings
and accumulation while an idea gap “directs to the patterns of interaction and
communication between a developing country and the rest of the world”(Romer,
1993, p. 544). Idea gaps include insights about packaging, marketing,
distribution, payment systems, quality control, and the technology gap, among
other things.
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 308.
From Agbetsiafa article, page
54:
Support for the trade-led growth theory is not, however,
universal. As Young (1991) argues, learning by doing effects may slow down at
later stages of economic development and can even stop eventually if not
reinforced by new technical progress. This echoes the general sentiment that in
an uncertain world market, reliance on exports alone may not necessarily lead
to a sustained long-term growth in a developing country and that the markets in
the industrialized world may not be large enough to absorb these additional exports
from the developing countries (Adelman, 1984; Cline, 1984). Furthermore, export
promotion and import substitution policies may be complementary with the latter
being a springboard for export-based growth (Hamilton and Thomson, 1994;
Grabowski, 1994).
Compare this to:
The support for the export-led growth
theory is not, however, universal. Young (1991) argued that the learning by
doing effects may slow down at later stages and can even stop ultimately if not
reinforced by new technical progress. Some argue that, in an uncertain world
market, reliance on exports may not lead to a sustained long-term growth in a
developing country and that the markets in the developed world may not be large
enough to house additional exports from the developing countries (Adelman,
1984; Cline, 1984). Export promotion and import substitution policies may as
well be complementary, with the latter being a steppingstone for export-based
growth (Grabowski, 1994; Hamilton and Thomson, 1994).
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New
Engine of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 308.
From Agbetsiafa article, pages
55-56:
Other studies like Jung and Marshall (1985) reviewed a
total of eleven empirical studies published between 1967 and 1982, and found
them supporting the trade–led growth hypothesis. In their review of the findings
of 14 empirical studies published between 1977 and 1983, Greenaway and Sapsford
(1994) found twelve of the studies supported the export-led growth hypothesis.
Similarly, Giles and Williams (2000) compile more than 150 studies that include
cross-country studies between 1963 and 1999 and time series studies between
1972 and 1999. Their results show that only four out of a total of fifty-seven
cross-country studies show evidence of no significant causal relationship
between trade and growth. Similarly, in only 10 of the 102 time-series studies,
the findings indicate no clear causal relationship between exports and growth.
In about as many cases, the evidence supports only the growth-led trade
hypothesis.
Compare this to:
Jung and Marshall (1985) examined a
total of 11 empirical studies published between 1967 and 1982. All these
studies support the export-led growth hypothesis. Greenaway and Sapsford (1994)
reviewed 14 empirical studies published between 1977 and 1993. In 12 of them,
the findings supported the export-led growth hypothesis. Giles and Williams
(2000) compiled the findings of more than 150 cross-country and time series
studies published between 1963 and 1999. In only 4
out of the 57 cross-country studies and
10 out of the 102 time series studies, the findings indicate no clear causal
relationship between exports and growth. In about as many cases, the evidence
supports only the growth-led export hypothesis. All other studies support the
export-led growth hypothesis, of which a total of 12 suggest bi-directional
causality.
Mohammad A Hossain & Neil Dias Karunaratne (2004)
Exports and Economic Growth in Bangladesh: Has Manufacturing Become a New Engine
of Export-Led Growth?, International
Trade Journal, XVIII(4), 303-334, at page 309.
Agbetsiafa article, pages
56-57:
It is known that cointegration relationships are unstable
in small samples (Berg and Borensztein 200a [sic]), but as Granger (1987) stresses,
models estimated in first differences while the data are actually cointegrated
will be misspecified (which will produce an omitted–variable bias). Here the
VEC model uses Maximum Likelihood (ML) method in the Johansen procedure to find
cointegrating relationship(s) becomes essential, because in small samples
ordinary estimation of cointegrating regressions becomes sensitive to the
choice of the dependent variable. With the Maximum Likelihood method, this
problem does not arise (Maddala 1992).
Compare this to:
It is known that cointegrating relationships are
unstable in small samples (Berg and Borensztein 2000a), but as Granger (1987)
stresses, models estimated in first differences while the data are actually
cointegrated will be misspecified (we will have the case of the
omitted-variable bias). Here VEC model in EViews (it uses Maximum Likelihood
(ML) method in the Johansen procedure to find cointegrating relationship(s))
becomes essential, because in small samples ordinary estimation of
cointegrating regressions becomes sensitive to the choice of the dependent
variable. With the ML method, this problem does not arise (Maddala 1992).
From Agbetsiafa article,
pages 57-58:
Granger causality test based on vector error-correction
model is implemented. This procedure is preferred to the standard vector
autoregressive model because it permits temporary causality to emerge from (a)
the sum of the lagged coefficients of the explanatory differenced variables and
(b) the coefficient of the lagged error-correction term. In addition, the
error-correction model allows causality to emerge even if the lagged differences
of the explanatory variables are not jointly significant (see Granger 1988,
Miller and Russek 1990, Miller 1991, and Garcia and Zapata 1991).
Compare this to:
The causal relationship between gross
saving and investment is explored with Granger-causality test based on VECM.
This procedure is particularly attractive over the standard VAR because it
permits temporary causality to emanate from (I) the sum of the lagged
coefficients of the explanatory differenced variables and (2) the coefficient
of the lagged
error-correction term. In addition. the
VECM allows causality to emerge even if the lagged differences of the
explanatory variables are not jointly significant [see Granger ( 1988), Miller
and Russe
(1990),
Miller (1991), and Garcia and Zapata
(1991)].
Emmanuel Anoruo (2001) The Savings-Investment Connection: Evidence from
the ASEAN Countries. The American Economist, 45(1): 46-53, at
pages 48-49.
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