КОНСОЛІДОВАНІ БЮДЖЕТ ПІВНІЧНОГО РЕГІОНУ В УМОВАХ ЕКОНОМІЧНОЇ КРИЗИ

The formation and effective use of financial resources in the budgetary sphere is complicated by conditions characterized not only by an unforeseen deterioration in the economic situation, but also by the high uncertainty of the future dynamics of the factors affecting it. The purpose of this work was to assess the financial condition of the Russian regions in the context of the pandemic and to find opportunities for further development. Methods used in the research are: analysis and synthesis, induction and deduction, logical and historical method, scientific abstraction and statistical comparisons. The article studies the dynamics and structure of revenues and expenditures of the budgets of the constituent entities of the Russian Federation. The analysis becomes in a section of the consolidated budgets of territorial subjects of the Russian Federation. On the basis of forecast models, a tendency to reduce income and expenses of the regions in the medium term has been revealed and the problem of financial independence of the constituent entities of the Russian Federation is increasing. The shift of emphasis in the structure of federal transfers to the budgets of the constituent entities of the Russian Federation and the transition from non-targeted forms of support for regional budgets to targeted ones with an orientation on federal programs and projects are demonstrated. The dangers of transfer dependence of regional budgets have been identified. The directions of further development of inter-budget relations are systematized with an emphasis on increasing the size of inter-budget transfers and strengthening the tax autonomy of the regions. The originality and practical significance of the study is determined by the tools for ensuring sustainable economic growth, including the balance and fiscal sustainability of the region. The results of the study can be proposed for the development of priority areas of sub-federal fiscal policy, focusing on the formation of potential tax capabilities of the territories.KeywordsFinancial flowsBudget deficitBudgetary securityFinancial independenceTransfer dependenceIncomeExpensesJEL CodesH720H770

The study has investigated the growth in income of rural households in Bangladesh with a view to analysing distributional consequences in the post-liberalisation era. Using data from secondary sources, it has applied a quintile-growth approach by dividing each group of households into five income clusters (quintiles) to analyse the incidence of growth in real income. It has found that although all groups of rural households experienced a moderate to high increase in real income, non-farm households experienced a larger increase than farm households due to a large reduction in consumer price. Farm households gained from the increase in productivity but experienced losses from producer price reduction. The two opposite forces – increase in productivity and reduction in producer price – offset the effects of each other, thereby affecting the income growth of farm households. Amongst the farm households, large and medium farmers gained the most and small farmers gained the least from the growth in real income, indicating that rich households experienced a much higher increase in real income than poor households – thereby adversely affecting the distribution of income and widening the income gap between rich and poor households. These findings demonstrated that while agricultural trade liberalisation benefited rural households generally, the benefits were not distributed equally and in fact, inequality increased amongst rural households. This study argues that the growth in real income of rural household was not pro-poor during 1985- 86 to 2005. This study suggests that agricultural trade liberalisation contributed to higher growth in the rural economy but it contributed to greater inequality in income distribution amongst the rich and poor income groups (quintiles). Government should reduce inequality through policy interventions with income transfer from the rich to the poor.

This study investigated the impact of the people category of the Sustainable Development Goals (SDGs) on sustainable and conventional economic growth in Asia and the Pacific region, using a sample of 52 selected countries between 2000 and 2023. Employing two distinct models, model A1 for conventional economic growth and model A2 for sustainable economic growth, we explained the relationships between five SDG indicators: employed poverty rate, stunted children, expenditure on health, expenditure of education, and % of women MNAs on economic growth. This study employed a fixed-effect model and random-effect model to investigate the impact of the people category SDGs on traditional and sustainable economic growth. The comparative analysis of each SDG in both models revealed valuable insights. SDG 1, “employed poverty rate”, has a positive impact on economic growth in both models, while SDG 2, “percentage of stunted child”, did not significantly influence economic growth in either model. Moreover, SDG 3 and SDG 4, relating to “government’s health expenditure per capita” and “government’s Education education expenditure per capita”, respectively, exhibited a positive impact on traditional and sustainable economic growth. Conversely, SDG 5, “percentage of women members of national parliament”, displayed an insignificant impact on traditional and sustainable economic growth models. In conclusion, this study suggests that policymakers should prioritize targeted interventions to alleviate employed poverty, enhance healthcare, and boost education spending. Moreover, promoting women’s representation in national parliaments should be approached with context-specific strategies to maximize its impact on economic growth.

Analysis of energy consumption structure on CO[formula omitted] emission and economic sustainable growth

This study investigates the relationship between sustainable economic growth and foreign direct investment (FDI) in Saudi Arabia from 1980 to 2023. The ARDL approach and VECM technique are employed to analyze the short-run and long-run dynamics. The short-run results show mixed effects. Sustainable economic growth has a positive impact on current and one-period lagged FDI but a negative impact on the two periods lagged. Trade openness and infrastructure negatively affect FDI in the short run. Interestingly, oil rents and real economic growth also have negative short-run impacts on FDI, but these effects become positive with a longer lag. Long-run analysis reveals a negative relationship between trade openness, infrastructure, and oil rents with FDI, suggesting a potential crowding-out effect. Trade openness has a positive long-run impact on most variables, including sustainable growth, FDI, real growth, and CO2 emissions. Oil rents also have a positive long-run impact on these variables. This study finds six bidirectional causal relationships in the short run, primarily between trade openness, infrastructure, oil rents, and FDI. Unidirectional causality runs from oil rents, trade openness, exchange rate, sustainable growth, and real growth to FDI and infrastructure. Additionally, CO2 emissions cause FDI, and trade openness causes sustainable growth. While sustainable economic growth benefits FDI in the long run, short-term policies regarding trade openness and infrastructure require reevaluation. Oil revenue and real economic growth may initially deter FDI, but this reverses in the long term. To attract sustainable FDI, policymakers should focus on long-term economic growth strategies and consider reforms in trade and infrastructure policies. A comprehensive FDI strategy that moves beyond oil dependence and leverages trade openness is crucial to long-term economic diversification.

The Indonesian government policy in encouraging sustainable economic growth to reduce unemployment, poverty and inequality is threatened to fail, because economic growth does not reach targets and is not of quality. The purpose of this research is to explain the four pillars of growth and development namely; human capital, social capital, institutional economics and entrepreneurship as the main drivers of quality and sustainable economic growth. This research method used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta. The correlational form of recursive model path analysis was used as analytical method. The research results show the very strong role of human capital as the main key in driving economic growth both directly and indirectly. The existence of human capital and social capital will further encourage new economic institutions, furthermore new economic institutions will encourage the competitiveness of productive entrepreneurship and high, quality, and sustainable regional economic growth. The policy implication is that high, quality, and fundamentally sustainable economic growth must be built on the four main pillars basis namely; human capital, social capital, institutional and entrepreneurship in order to be more successful in reducing development problems; unemployment, poverty and income inequality.

The Brundtland Commission Report of 1987 laid out the case for ongoing economic growth as an essential prerequisite for sustainable development. This paper identifies reasoning utilized in that Report to support the idea of ‘sustainable economic growth’. The paper then argues that this economic progrowth bias has continued to represent the dominant, mainstream viewpoint within the sustainable-development movement. In a similar vein, the paper suggests widespread support for the idea of ‘smart growth’ as a form of ‘sustainable urban growth’ capable of advancing the end of sustainable cities. The purpose of the paper is to make the case for the intrinsically unsustainable nature of economic and urban growth. Included among the results of the paper are references to publications from the 1990s and the current decade revealing mounting evidence of existent ecological limits to growth. As its central conclusion the paper argues that continued allegiance to the idea of ‘sustainable growth’ constitutes a major impediment to realizing the ends of sustainable development and sustainable cities.

SDG 8’s goal is to promote sustained, inclusive, and sustainable economic growth; full and productive employment; and decent work for all. This chapter examines the experiences of East Asian developing countries in achieving rapid and inclusive economic growth by focusing on the role of international tradeand foreign direct investmentnexus created through global value chains (GVCs)by multinational corporations (MNCs). GVCs enabled participating companies and countries to improve productivity, contributing to economic growth. The factors attributable to the participation in GVCs include high competitiveness of local companies and open business environment created by the Asian government. Moreover, construction and maintaining well-functioning soft (e.g., education and legal systems) and hard (e.g., transportation and communication systems) infrastructure by the government and international donors contributed to the creation of business-friendly environment. Faced with growing protectionism and the threats of growing US-China rivalry, infectious diseases, climate change, etc., maintaining an open and transparent rules-based business environment is crucially important to further achieving sustained, inclusive, and sustainable economic growth. In the light of absence of effective global economic order, exemplified by ineffectiveness of the World Trade Organizationin trade liberalization as well as dispute settlement, regional economic frameworks such as the CPTPP and RCEP in the Asia and Pacific region would be proven to be effective to achieve the goal.

Ensuring sustained real growth in national income is a primary concern to both developed and developing countries. It is that sustained growth in real national income to potentially explain an economy’s development path and people’s wellbeing. Though Ethiopia records double digit growth rate for last few years, it has been found to be unstable due to various internal and emerging global influences. Besides, recent home side political condition is also another challenge to the economic sector of the country at large. The present study examines factors potentially explaining the economic growth of Ethiopia using annual time series observations for the period running from 1981 to 2016. Individual variables were all subjected to both the ADF and PP unit root tests; and that, the existence of mixed order of integration has been confirmed with both approaches. For Cointegration issues, the ARDL approach was employed and the existence of long run relationship among variables entered the growth model has been confirmed too. Besides, none of the diagnostic tests was revealed invalid thereby ensuring the relevance of inferences made based on the ARDL estimates. The current and lagged impact of foreign aids is found to be important in explaining the economic growth of Ethiopia. Its current period impact was estimated to be positive and significant too as expected. Besides, the last year economic status of the country has also been suggested significant determinant of the current economic growth rate. Therefore, economic benefit of aids should be recognized and policy focus must be directed towards its efficient utilization. Keywords: , ARDL, Cointegration, Determinant Economic Growth, Ethiopia, Stationarity DOI : 10.7176/DCS/9-1-05

The article examines the financial institution of development, which directly affects the prosperity of entrepreneurship in Kazakhstan. Based on our research, an analysis of the development of entrepreneurial activity in Kazakhstan is provided, funded by a financial development institute of this level. During the research, the impact of this national institution on stimulating the medium and small businesses’ development was assessed, financial support’s key mechanisms and tools provided to entrepreneurs were also considered. The results obtained may well be used to prepare proposals for improving financial support for entrepreneurship. The research is based on real statistical data. The authors conducted a comprehensive analysis of the structure and quality of funds of financial development institutions in the Republic of Kazakhstan allocated to small and medium-sized enterprises. The most important aspect of the study is the analysis of the use of funds’ effectiveness in economy’s favor. Based on the analysis, the article shows the effective use of financial resources to strengthen entrepreneurial positions in the state and improve financial mechanisms. This leads to a decrease in social and economic differences in the country, and sustainable economic growth.

As the global financial and economic crisis hit the European Union, no country was left unharmed. To this day, the Member States share the burden of excessive foreign debt, inflation, budget deficit, high unemployment levels, shaken stability of the currency, and many more. Multiple responses were introduced to these damaging effects, including adopting changes to the use of the Globalisation Adjustment Fund, enabling a Financial Stability Mechanism for the Euro zone and introducing a number of micro-financing instruments, particularly to support SMEs. Nevertheless, these have all been short-term actions, which will not suffice to ensure a long-term, sustainable economic growth of the European economies and maintain the EU's position among global political and economic leaders. European leaders have adopted the Europe 2020 strategy for economic growth, which addresses all key-areas of economic growth - from innovations to employment and environment. Yet, the greatest challenge to this goal remains regional cohesion - namely, full economic and social convergence of the regions and Member States of the European Union. After thirty six years of a common Regional policy and over twelve years since the creation of the Cohesion policy, the remaining economic and social disparities within the Union are striking. What is more, the distribution of cohesion financing, similarly to the Common Agricultural policy direct payments, continues to portray a significant weakness in the common objectives of fair competition and solidarity among Member States. Within the next multiannual financial framework of 2014-2020, Regional and Cohesion policy of the EU will have a fundamental importance in eliminating existing disparities among regions, providing for a sustainable economic growth, increasing the EU's competitiveness and implementing the ambitious Europe 2020 goals. It can therefore be considered as a key element in Europe's economic recovery. This paper provides an analytical examination of the goals, strategies and current trends in the Regional and Cohesion policy as a tool of economic growth of the European Union. It provides a brief insight into the history, objectives and functioning of the policy in order to continue with analysis of its results and provide recommendations for improvement of the policy and increase its positive impact on the EU's economic development. Materials, statistics, working documents and analysis provided by EU and national institutions, as well as independent analysts have been used in the production of this paper. Results and conclusion are presented in a descriptive, logically constructive manner of synthesis. More specifically, the paper concludes by stating that in order to achieve full convergence and be able to ensure sustainable economic recovery and growth throughout the EU, greater flexibility and sovereignty need to be employed in political decision-making and regulations on allocation of funds. To raise the positive effects on Member States' economies, equality must be ensured to attain the Union's strategic goals without harming the weakest Member States' economies and competitiveness. It is therefore essential that the convergence objective be formulated as the leading goal of the Regional and Cohesion policy. Policies under the upcoming multiannual financial framework must be results-oriented. The EU's economic recovery, hence, also its Regional and Cohesion policy and allocation of funds, have to reflect the practice of fair competition, solidarity and equality. Only then will the European Union be able to fulfil its political and economic ambitions. DOI: http://dx.doi.org/10.5755/j01.eis.0.5.1092

Sustainable economic growth and identifying factors affecting it are among the important issues which have always received attention from researchers of different countries. Accordingly, one of the factors affecting economic growth, which has received attention from researchers in the developed countries over recent years, is the issue of environmental technologies that enter the economic cycle of other countries after being patented through technology transfer. The current research investigated the role of the environment-related patents and the effects of the patented technological innovations compatible with climate change mitigation on the economic growth and development in the Middle East countries within a specific time period. The required data were gathered from the valid global databases, including Organization for Economic Co-operation and Development and World Bank and have been analyzed using multi-linear regression methods and econometric models with Eviews 10 software. The obtained results with 95% confidence level show that the environmental patents (β = 0.02) and environment management (β = 0.04) and technologies related to the climate change mitigation (β = 0.02) have a significant positive impact on the sustainable economic development and growth rate in the studied countries. Such a study helps innovators and policymakers in policy decisions related to sustainable development programs from the perspective of environmentally friendly technologies by demonstrating the role of patents in three important environmental areas, namely environmental management, water-related adaptation and climate change mitigation, as one of the factors influencing sustainable economic growth.

Do Municipal Governments Need More Tax Powers? A Background Paper on Municipal Finance in Alberta

Since the 1978 economic reform, China has undergone a historical process of rapid urbanization. Although this process has been recognized as a key factor in the development of sustainable growth in China, low quality rural labor continues to limit the effectiveness of the country’s urbanization. Our study uses a spatial analysis framework to explore how the education level of rural laborers moderates the effect of urbanization on economic growth with provincial data collected from 1996 to 2015. Our results reveal that the influence of population urbanization on sustainable growth is mediated by the improvement of consumption capacity of urban dwellers and the industrial structural changes. The education level of rural laborers adjusts the urbanization’s influence on the consumption capacity of residents, which further affects economic growth. Empirical evidence indicates that the educationally limited rural population negatively moderates the impact of urbanization on sustainable economic growth by restraining the consumption capacity of migrating rural labor. It is also found that in some provinces with less-qualified rural labor, such as Gansu, Yunnan and Qinghai, population urbanization has not contributed to a corresponding economic growth, indicating that these provinces may have undergone urbanization without growth. These findings suggest that basic education is critical to the growth of income and consumption capacities of rural labor when laborers are migrating to urban areas. To achieve a valid urbanization process and sustainable growth, state and local governments must improve the basic education scheme, especially the nine-year compulsory education in Chinese rural areas through public financial investment and policy support.

PurposeThe purpose of this paper is to empirically analyze the impact of remittance inflows on sustained economic growth in India.Design/methodology/approachThis study has taken a time series dataset for the period of 1976–2021, and a nonlinear autoregressive distributed lag model technique (NARDL) has been applied to check the impact of remittance inflows along with other control variables, including broad money and service sector performance, on the sustained economic growth of India.FindingsThe results of the study indicated that in both the short and long runs, any positive shock in remittance inflows has a positive impact on the economic growth of India, while negative shocks do not affect economic growth.Practical implicationsThe economic policymakers of India can use the findings of the study by implementing remittance-friendly policies. Moreover, NITI Aayog, the body working toward achieving sustainable development goals (SDGs) in India, can also use this study as a reference while making strategies to achieve SDG.Originality/valueEconomic growth has always been an area of interest among economists, researchers and policymakers. However, achieving sustained economic growth requires an analysis of those factors that themselves have sustained performance over a long period of time and have the potential to sustain it over the upcoming years. This study has taken remittance inflows as one such factor and investigated its impact on the sustained economic growth of India. At present, there is an evident gap in the literature that very little attention has been given to sustained Indian economic growth. Moreover, there is no study available in which the nonlinear impact of different variables has been tested on the economic growth of India.