Session 30--Modern Economic Growth and Distribution in Asia, Latin America and the European Periphery: A Historical National Accounts Approach

Title: Modern Economic Growth and Distribution in Asia, Latin America and the European Periphery: A Historical National Accounts Approach

Contact Information: Prof. Luis Bértola, Economic and Social History Programme, Faculty of Social Sciences, Universidad de la República, Box 7045, Correo Central, Montevideo, Uruguay. Ph: (5982) 4088560/61. Fax: (5982) 4000871. Email: lbertola@fcsum.edu.uy

Other Organizers: Prof. Konosuke Odaka (Hosei University, Japan); Dr. Bart van Ark (Dept. of Economic and Social History, Faculty of Economics, University of Groningen, The Netherlands)

Description: The phenomenon of modern economic growth as described by Kuznets goes together with an increasing complexity in patterns of income and expenditure distribution. Firstly, there are important changes in personal income distribution. In this respect the "inverse U hypothesis", which outlines the rise in income inequality in early phases of modern economic growth followed by a subsequent decline, has been widely tested and debated. Secondly, economic growth changes the expenditure pattern as expenditures on food decline in favour of expenditures on durable goods and investment goods. Thirdly, economic growth is accompanied by important structural changes, as resources move from low to high productivity sectors under the influence of technological change and difference in output and input growth between sectors. Fourthly, the share of labour and capital compensation in value added changes under the influence of growth. Most studies on the relationship between growth and distribution have concentrated on a limited number of advanced countries, and the small number of studies which include low income countries either lack a historical dimension, or measure the relation between growth and inequality along only one of the lines outlined above. This session is proposed to assess the progress on Historical National Accounts reconstruction in Asia, Latin America, the European periphery and other developing regions. Contributors are specifically invited to link growth and distributional issues in the mentioned regions, even though comparisons with advanced countries are encouraged.

Participants:
André Hofman (Chile); David Greasley (Scotland); Debin Ma
(USA); Gabriel Porcile (Brazil); HRH Raja Nazrin (Malaya); Jean-Pascal
Bassino (France); Less Oxley (New Zealand); Magnus Lindmark (Sweden); Mar
Rubio (UK); Myung Soo Cha (Korea); Peter Vikström (Sweden); Pierre van der
Eng (Australia); Roberto Patricio Korzeniewicz (USA); Shaharil Talib
(Malaya); Socrates Petmezas (Greece); Tarik Yousef (USA); Timothy P. Moran
(USA); Tsong-Min Wu (Taiwan); Yuru Wang (China). Commentators: Gabriel
Porcile; Bart van Ark; José Antonio Ocampo (Chile); Luis Bértola; Debin Ma;
David Greasley.

Discussants:
José Antonio Ocampo (ECLAC, Chile)
Angus Maddison

Call for Papers:

The Central Theme: The phenomenon of modern economic growth as described by Kuznets goes together with an increasing complexity in patterns of distribution. Firstly, economic growth is accompanied by important structural changes, as resources move from low to high productivity sectors under the influence of technological change and difference in output and input growth between sectors. Secondly, the share of labour and capital compensation in value added changes under the influence of growth. Thirdly, economic growth changes the expenditure pattern as expenditures on food decline in favour of expenditures on durable goods and investment goods. And fourthly there are important changes in personal income distribution. In this respect the ?inverse U-hypothesis?, which outlines the rise in income inequality in early phases of modern economic growth followed by a subsequent decline, has been widely tested and debated.

Background: Most studies on the relationship between growth and distribution have concentrated on a limited number of advanced countries, and the small number of studies which include low income countries either lack a historical dimension, or measure the relation between growth and inequality along only one of the lines outlined above. What is still missing in most developing countries is an integrated historical national accounts framework, which allows comprehensive comparisons of distributional and growth issues simultaneously from the income, expenditure and output perspectives. Fortunately, partly under the influence of recent leaps forward in historical national accounting in Europe, North America and Japan, some progress is now being made in reconstructing historical national accounts in Asia, Latin America and the European periphery.

This session is a follow-up on sessions held at the two previous IEHA conferences. During the 11th Congress in Milan (1994), a session was held on ?Economic growth and structural change? (Maddison and van der Wee, 1994). This included few papers on low income countries. The same was true of the follow-up session at the 12th Congress in Madrid (1998) on ?Historical Benchmark Studies of Income and Productivity? (Buyst, van Ark and van Zanden, 1998). In contrast, this session concentrates on papers from countries and regions in Asia, Latin America, the European periphery and other developing regions, even though comparisons with advanced countries are encouraged. Commentators from Europe, North America and Japan are invited as experts.

In a pre-conference of this session recently held in Tokyo (March 2001), 14 papers covering the three regions were discussed (8 on Asia, 3 on Latin America and 3 on Europe). These papers showed the significant advances achieved in HNA in medium and low income countries in the recent years, as well as the limits that still exist for such an approach to the discussion of growth and distributional issues (the papers are downloadable from the following website: http://www.eco.rug.nl/GGDC/tokyohna2.html.) Thus, following the criteria defined for this pre-conference, many papers presented advances on limited aspects of the HNA approach and the discussion of the relation between growth, structural change and distributional issues was only preliminary.

Towards the Buenos Aires Session: At the end of the pre-conference some criteria were agreed, which were to guide the works and the presentation of proposals towards the Buenos Aires session:

1. Papers are encouraged to be comparative in character. Even if based on long-run national studies, where institutional aspects play a decisive role, the session searches for debate and analysis which may enlighten general development issues. If concentrated on one country, the papers might include comparative aspects in the conclusions. Cooperation between researchers working on or coming from different countries is strongly encouraged in order to write comparative papers.
2. The session is not closed or limited to the participants of the pre-conference. Both participants at the pre-conference and other scholars are called to send paper proposals to the organisers until July the 2nd 2001. The organizers will communicate acceptance of proposals by July the 27th 2001.
3. Even lacking (parts) of an HNA-framework should not be a constraint to the analysis, it should at least be used as a reference, which, among other advantages, makes international comparisons much easier.
4. Papers should concentrate to a higher extent on the analysis of the relation between growth, structural change and distributional issues. The theoretical discussion should be deepened and structural change specified and qualified.
5. Final versions of the papers must be delivered by April the 30th 2002.

The Organisers:

Prof. Luis Bértola
Economic and Social History Programme
Faculty of Social Sciences
Universidad de la República- Uruguay
Box 7045, Correo Central, Montevideo
Phone: (5982) 4095322
Fax: (5982) 4000871
E-mail: lbertola@fcsum.edu.uy

Prof. Konosuke Odaka
Institute of Comparative Economic Studies
Hosei University
4342 Aihara, Machida
Tokyo 194-0298, Japan
Fax 81 42 783 2330
E-mail: kodaka@mt.tama.hosei.ac.jp

Prof. Bart van Ark
Dept. of Economic and Social History
Faculty of Economics
University of Groningen
PO Box 800
9700 AV Groningen
The Netherlands
Tel 31 50 363 3674
Fax 31 50 363 7337
E-mail: h.h.van.ark@eco.rug.nl




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