The effect of domestic credit in the economic *development process

A commonly held view is that creation of excessive domestic credit may lead to inflation problems, however, many economists uphold the possibility that, generous domestic credit under appropriate conditions will result in increases of output. This hypothesis is examined for Japan and Colombia for the period 1950-1993.^ Domestic credit theories are reviewed since the times of Thornton and Smith, until the recent times of Lewis, McKinnon, Stiglitz and of Japanese economists like K. Emi, Tachi R. and others. It is found that in Japan of the Post-War period, efficient financial markets and the decisive role of the government in orienting investment decisions seem to have influenced positively the effectiveness of domestic credit as an output-stimulating variable. On the contrary, in Colombia the absence of the above features seems to explain why domestic credit is not very effective as an output-stimulating variable.^ Multiple regression analyses show that domestic credit is a strong explanatory variable for output increases in Japan and a weak one for Colombia's case in the studied period. For Japan the correlation depicts a positive relationship between the two variables with a decreasing rate very similar to a typical production function. Moreover, the positive decreasing rate is confirmed if net domestic credit is used in the correlations. For Colombia a positive relationship is also found when accumulated domestic credit is used, but, if net domestic credit is the source of correlations, the positive decreasing rate is not obtained.^ Granger causality tests determined causality from domestic credit to output for Japan and no-causality for Colombia at the 1% significance level; the differences are explained by: (1) The low development level of the financial system in Colombia. (2) The nonexistence of consistent domestic credit policy to foster economic development. (3) The lack of an authoritative orientation in the allocation of financial resources and the nonexistence of long range industrialization programs in Colombia that could channel productively credit resources. For the system of equations relating domestic credit and exports, the Granger causality tests determined no-causality between domestic credit and exports for both Japan and Colombia also at the 1% significance level. ^

Shoot architecture and growth in the south Florida wet prairie macrophyte, Eleocharis cellulosa

Eleocharis cellulosa is a dominant macrophyte in Everglades wet prairie communities. The development of the shoot system in the genus has been described as sympodial but with an unusual adnation of the horizontal and vertical shoots. The growth pattern of E. cellulosa was studied from field collected plants and plants grown in the greenhouse. Plants were extracted and measurements of horizontal and vertical shoot were taken. Dissections, paraffin sectioning and SEM's were used to examine shoot structure in early developmental stages. E. cellulosa was transplanted from the field to the greenhouse and different levels of Nitrogen and Phosphorus were added to determine how it responded phenotypically. Dissections and microscopy showed that growth of the vertical shoots of E. cellulosa is sympodial, while growth of the horizontal shoots is mixed, beginning monopodially then transforming to sympodial growth. Additions of nutrients did not have any effect on the morphology of E. cellulosa.

Rwanda's Miracle: From Genocide and Poverty to Peace and Economic Prosperity

The purpose of this thesis was to examine how liberalization and the introduction of pro-poor policies can be successful in post-conflict countries using the Rwanda coffee market as a case study. My research supports the notion that economic development, political stability and peace can be a result of liberalization when policies that are pro-poor and focus on the largest sector of the population are created. The study examines why and how Rwanda chose to liberalize their economy in the way they did by focusing on the intentions of the actors and the effects their actions have had on the coffee market and country as a whole. The findings suggest that Rwanda’s coffee market liberalization has been successful and has contributed to stability and economic development in Rwanda. The conclusion indicates that pro-poor liberalization policies with the assistance from a variety of actors and institutions can lead developing countries on the path to development in ways the international community has not seen before.

An Analysis of the Factors that Influence Regional Economic Development Cooperation

This dissertation is a comparative case study of regional cooperation in the field of economic development. In the 21st century global economy, proponents of regionalism have put forth fresh arguments for collective action. A regional approach to economic development activity presents a classic social dilemma: How can local officials collectively improve the economic prospects of a region, and remain autonomous to act in the best interest of the local community? This research examines the role of social capital in overcoming this social dilemma. Three (3) comparable Metropolitan Statistical Areas (MSAs) form the empirical basis of this research. The Houston MSA, the Atlanta MSA and the Miami MSA present distinct variations of regionalized economic development activity. This dissertation seeks to explain this disparity in the dependent variable. The hypothesis is that accrued social capital is crucial to obtaining economic development cooperative agreements. This qualitative research utilized secondary demographic and economic databases, survey instruments, interviews, field observations, and a review of legislative and administrative decisions to formulate a clear understanding of the factors influencing the current state of regional economic development cooperation within each region. The study concludes that the legislative and executive decisions of state government exert inordinate influence on the capacity of local officials to cooperate regionally for economic development purposes.