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An analysis on economic opportunity

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  • Kui-Wai Li

Abstract

Although economic opportunity is considered as a latent variable, it can serve as another factor in promoting growth and development. Through the construction of an economic opportunity index, this article identifies the extensity and intensity channels through which economic opportunity is created. Data on 24 variables for 184 world economies for the period 2000 to 2010 are collected for the empirical analysis. The methodology involves the use of principal component analysis in constructing three indices for the parametric and nonparametric regression analyses. The country sample is divided into OECD and non-OECD economies so as to examine their different performances. Extensity seems to be the more important channel to all economies, but for non-OECD economies, a higher performance in intensity can enrich the effect of extensity on economic opportunity.

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  • Kui-Wai Li, 2014. "An analysis on economic opportunity," Applied Economics, Taylor & Francis Journals, vol. 46(33), pages 4060-4074, November.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:33:p:4060-4074
    DOI: 10.1080/00036846.2014.950795
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    2. Tung Liu & Kui-Wai Li, 2015. "The Empirics of Economic Growth and Industrialization Using Growth Identity Equation," Working Papers 201501, Ball State University, Department of Economics, revised Jun 2015.

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    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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