Doughnut Economics: Exploring a New Alternative Sustainable Model

자산가격 변화가 경제적 불평등과 대외경제 변수에 미치는 영향 분석 (Analysis of the Effects of Asset Price Changes on Economic Inequality and External Economic Variables)

This research investigates the impact of inflation on economic growth within the Ghanaian economy, a subject of ongoing debate among economists and policymakers. Eradication of purchasing power together with misdirected investment decisions has been noted by both Fischer and Mishkin as complex issues when examining macroeconomic goals for developing nations along with price stability and GDP growth promotion. A small amount of inflation may boost economic production and demand according to the authors but excessive inflation creates investment barriers and limits long-term development. The annual consumer inflation in Ghana rose to 23.8% during December 2024 based on data from Trading Economics which sparked economic worry. World Bank statistics indicate that this research seeks to guide policymakers through their development of monetary tools and fiscal instruments which sustain price stability and enduring economic expansion within Ghana. Studies about how inflation affects GDP expansion in Ghana show contradictory information. general inflation rates seem to foster GDP growth by motivating producers to boost production for increasing profits. Research findings show that high inflation generates negative effects on GDP expansion. The research studies show discovered co-integration between economic growth and macroeconomic factors alongside inflation in Ghana. The study discovered that inflation reduces Ghana’s economic growth since it requires powerful monetary policy intervention to address this issue. The discrepant research findings show that additional studies are needed to understand the particular effects that inflation has on Ghana’s economic expansion. The research used time series data spanning 2000–2018 while applying vector autoregressive (VAR) models for its analysis. Statistical analysis of the study showed that general inflation and low inflation levels foster GDP expansion yet high inflation rates together with government expenditure act as growth inhibitors (WJARR, 2021). The complex findings demand careful policy decisions which take into account both Ghana’s inflation situation and economic framework.

This study is carried out to investigate the impact of taxes on the economic growth of Pakistan. Tax is a compulsory payment to the government by the residents of the nation to cover the cost of services rendered by the government for the general welfare of its citizens. The debate and empirical results regarding the impact of taxes and specifically tax structure is highly controversial for researchers and policymakers. Economic growth is adversely affected by taxes, while some researchers claim a positive effect. Therefore it was felt to investigate the impact of tax structure on the economic growth of Pakistan. To test it empirically, the researcher took the time series data ranges from 1985 to 2021 on tax structure and economic growth. GDP growth is dependent, while tax structure, i.e., direct and indirect taxes, human development index, and income distribution, were selected as independent variables. After ensuring that the variables are stationary, the Autoregressive Distributive Lag (ARDL) approach to co-integration was applied to detect connections between variables. Results found that direct taxes have a positive and significant effect on GDP growth, while indirect taxes have a significant and negative impact on the GDP growth of Pakistan. Also, the impact of HDI on GDP growth is positive and significant, while the Gini coefficient has a negative and significant impact on the GDP growth of Pakistan. It is suggested that to increase the economic growth of Pakistan, direct taxes would be increased, as it will also reduce the Gini coefficient and unequal income distribution, While indirect taxes would be decreased to enhance economic growth. Also, the government should adopt such policies which could encourage human development, as it is crucial for the economic development of Pakistan.

Purpose- Financial inclusion means individuals and businesses have access to useful and affordable financial products and services to deliver their needs in a responsible and sustainable way. A financial sector is measured and compared on four main features; debt is the size of financial institutions, access is the access and use of financial services by the users, efficiency is the efficiency in the provision of financial services, and stability is the stability in the provision of financial services. The purpose of this paper is to measure the level of financial inclusion of Turkey and Greece from 2000 to 2020 and compare its relationship with the economic growth and income inequality of both countries. Methodology- The World Bank data covering the 2000-2020 period is extracted from Turkey and Greece from the world bank report. The whole financial system for both countries is defined as a combination of banks, nonbanks financial institutions, and stock exchange markets. The related indicators for each of the subsectors of the financial system are determined for banks, nonbanks financial institutions, and stock exchange markets. Thus, 32 indicators for banks, 6 indicators for nonbanks, and 16 indicators for stock exchange markets are determined for the financial inclusion index. All indicators are in percentages. All individual indicators are summed for the computation of subsectoral indexes and then the growth rate in each subsectoral indexes are computed. The growth rates of each subsectoral index are summed and weighted by the subsectoral asset sizes or trading volüme. Finally, the causal relationship between the financial inclusion index, Gini coefficient, Poverty Headcount ratio, and GDP per capita was examined. Findings- The average growth rate for the financial inclusion index for the 21 years is 2,83% for Turkey and 0,97% for Greece. According to the analysis, we found that the financial inclusion index Granger-cause GDP per capita, Gini index Granger-cause financial inclusion index and there is a bidirectional relationship between the financial inclusion index and Poverty Headcount ratio for Turkey. On the other hand, there is a bidirectional relationship between GDP per capita and the financial inclusion index and a bidirectional relationship between the financial inclusion index and the Poverty Headcount ratio for Greece. Conclusion- Financial inclusion simply means a larger size of financial institutions and a variety of financial products and services available for the use of adult individuals, businesses, and governmental agencies. Economic growth is supported and accelerated by an increase in financial inclusion. The empirical analysis supports the literature that the growth in the financial inclusion index enhances a higher growth in GDP and a much higher growth in GDP per capita for both Turkey and Greece. The project titled “Istanbul as an International Financial Center” may easily improve the level of financial inclusion in Turkey. Keywords: Financial inclusion, economic growth, income inequality, financial indicators, Turkish and Greek financial markets JEL Codes: G40, G41

The article focuses on the level and dynamics of innovation financing in Azerbaijan and Ukraine compared to the world level and the places of Azerbaijan and Ukraine in the Global Innovation Index and trends in their positioning in the dynamics. The analysis reveals negative dynamics in both countries in this sphere. The innovation financing structure's role as a factor of economic growth and international reproductive relations development is substantiated. The dependence of the country's economic growth level (GDP growth per capita) on the value of expenditures on innovation financed by various sectors of the economy (government, the private non-profit sector, foreign investors and the higher education sector) is studied. The study consists of data for 12 European countries for 2007-2017 (limited calculations in 2017 due to the availability of information on open portals of the World Bank, the EU Statistical Office). At the first stage, the distribution of the relevant indicators was evaluated using the Shapiro-Wilk test. Based on these results the method of calculating the correlation coefficient is chosen: Pearson – for indices that are subject to the ordinary distribution law or Spearman – for indices that are not subject to the ordinary distribution law. A correlation analysis regarding the strength and nature of the relationship between relevant indices and the dynamics of GDP per capita in these countries is performed to identify the duration of time lags, after which this relationship is the most statistically significant. In the second stage, there are three types of regression models for estimating panel data to identify the impact on the economic growth dynamics of innovations financed by different economic sectors: 1) with fixed effects (based on the least-squares method); 2) with random effects (based on the general least squares method (GLS); 3) dynamic model for estimation of Arellano-Bond panel data, which considers time lags (based on the general method of moments (GMM)). In the third stage, using Wald's tests, Breusch-Pagan and Hausman, the adequate model specification is chosen. When choosing a dynamic model of Arellano-Bond, the Sargan test is performed to validate the parameters. The control variables in all three types of models consider net inflows and outflows of foreign investment, inflation (GDP deflator) and labour force participation rate (% of total population ages 15-64). The second and third stages of the study obtained the results as follows. It is empirically confirmed that a 1% increase in the share of government sector-funded R&D expenditures leads to a decrease in annual GDP growth per capita by an average of 0.15% (excluding time), business sector – to the increase by 0.13% with a time lag of 2 years, thanks to foreign sources – to the increase by 0.1% (without time lag); higher education sector – to the decrease by 0.78% (without time lag). It is substantiated that the state should reduce the share of direct investment in innovation. At the same time, it should focus on effective legislation, motivating the business sector and foreign investors to increase investment in research and development to stimulate economic growth in Azerbaijan and Ukraine and the development of international reproductive relations. Keywords business sector, correlation analysis, dynamic model, economic growth, financial regulations, financing structure, foreign sources, GERD, government sector, influence formalization, innovation, regression model, R&D.

<abstract> <p>The success of East Asian countries in economic growth since the 1960s and the rapid development of China's economy in the past four decades have caused debates on whether these countries have found a new path of development and the role of government in economic growth. The present study investigates whether orthodox growth theories can explain East Asian growth by examining the impact of saving rates on economic growth in Asian countries. Using panel data analysis based on a dataset of 46 Asian countries and regions during the period 1969–2021, we find that gross domestic saving rate, GDP per capita, and urban population growth rate all significantly impact the annual GDP growth rates of Asian countries. The positive effect of the gross saving rate is very significant in the period 1960–1990 but insignificant in 1991–2021, while the positive impact of the urban population growth rate is more significant in the period 1991–2021 than in 1960–1990, and GDP per capita has a very significant negative effect during both 1960–1990 and 1991–2021. We further find that the saving rate has a very significant positive impact on economic growth in East and South Asian countries during 1960–2021. GDP per capita has a significant negative impact in East, South, Southeast, and West Asian countries; the urban population growth has a significant positive impact on GDP growth in East and West Asian countries during 1960–2021. The saving rate has a very significant positive impact on GDP growth in high-income countries, a significant positive impact in upper-middle-income countries, and an insignificant impact in lower-middle-income countries. Our present results show that a high saving rate is one of the critical factors for rapid economic growth in developing countries. Urban population growth and GDP per capita also have significant impacts on economic growth.</p> </abstract>

Emerging pathways to sustainable economic development: An interdisciplinary exploration of resource efficiency, technological innovation, and ecosystem resilience in resource-rich regions

This chapter determines and compares the responses of South African economic growth to positive (i) foreign economic policy uncertainties (ii) foreign GDP growth uncertainties and (iii) foreign GDP growth shocks. Does South African economic policy uncertainty act as an inward transmitter and conduit of foreign economic policy uncertainty shock to the domestic GDP growth? Do foreign GDP growth uncertainties act as transmitters and conduits of foreign economic policy uncertainty shock to the South African GDP growth? Does a combination of economic growth uncertainty and policy uncertainty impact domestic exports growth? Evidence in this chapter confirms that economic policy uncertainty tends to exert negative effects on foreign economic growth in this chapter. The negative spillover of foreign policy uncertainty results in a contraction in South African economic growth. In addition, the South African economic policy uncertainty acts as an inward transmitter and conduit of foreign economic policy uncertainty shock to domestic GDP growth. At the same time, foreign GDP growth uncertainties transmit foreign economic policy uncertainty shock to South African GDP growth. However, the big decline in the actual GDP growth than the counterfactual responses implies that South African policy uncertainty leads to the worsening in economic growth contraction following the foreign policy uncertainty shock. Furthermore, positive European GDP growth raises South African exports to the Euro area and the increases are much higher in the long run when South African policy uncertainty is shutoff than when operating in the model. This shows that the exports channel explains why South African economic growth may not benefit to the maximum from the improvement in European GDP growth impulse.

Global economic growth has hovered around 2-3% over the past decade, resulting in stagnant GDP growth for Indonesia at approximately 5%. This research aims to analyze the effects of macroeconomic conditions, specifically money supply (M2), foreign debt, and international trade activities, on Indonesia's GDP growth from 1994 to 2023. Utilizing a linear regression method with 30 observations, the study finds significant impacts of the independent variables on GDP growth. M2 influences GDP growth by 93%, foreign debt by 76.6%, and net exports by 92.3%. Simultaneously, changes in these variables explain 93.7% of the variation in Indonesia's GDP. The theoretical foundation of this research is built upon previous studies on economic growth and macroeconomic factors, emphasizing the role of monetary policy, debt management, and export diversification. The findings indicate that the careful management of M2 is critical to fostering investment and consumption, while excessive reliance on foreign debt may hamper long-term growth. Non-oil and gas exports significantly contribute to GDP, underscoring the importance of export diversification. The study concludes that these macroeconomic factors are vital for sustainable economic growth and improving welfare in Indonesia, and recommends policy interventions to optimize their effects.

Economic development in the traditional economy is only measured using GDP growth, both in aggregate and per capita. Further increases in GDP will create the necessary conditions for a more equitable distribution of economic and social growth results. However, orientation only to economic growth in building national economy has drawn considerable criticisms. From this point, new economic views have emerged. According to Todaro (2006), the main objective of the new views is GDP growth with simultaneous improvements in poverty alleviation and inequality reduction. High economic growth is often followed by high poverty. Therefore, sustainable economic growth, known as the inclusive growth, is required. In Indonesia, there are still provinces that have not achieved a good level of inclusiveness, one of which is East Java. The rate of its economic growth is very high, but the number of poor people in the area is above the national average. This study aims to analyze the effect of labor and human capital on economic growth in poverty alleviation in East Java using the case study method of 38 regencies and cities during the 2011-2020 period. The panel data was analyzed simultaneously in E-views. This study finds that labor does not affect economic growth, but human capital described by health and education affects economic growth. Further, negative economic growth positively and significantly affect poverty, which means that increasing human capital has a good impact on economic growth and will further reduce poverty.

E nergy is one of the main and essential factors in economic growth. Electricity as one of the most important resources of energy supply for economic sectors on one hand, and as an index of welfare, on the other hand, is one of the economic development benchmarks. The growth of GDP will increase the demand for energy resources, including electricity. Hence, policymakers should pay attention to secure electricity supply in their economic planning process. In this study, due to the different structure of each economic sector and the impact of geographical and climate conditions, the electricity demand function in different economic sectors (industry, agriculture, and services) between 31 Iranian provinces during the period of 2010-2014 is estimated in which different panel data method was employed. The results of this study show that the value-added (income) elasticity of electricity demand in all economic sectors is significant, positive and smaller than unity. The elasticities estimated for the industry, agriculture, and service sectors are 0.39, 0.6 and 0.53, respectively. Also, the own price elasticity of electricity demand for industry and service sectors is significant and smaller than unity and is not significant for the agricultural sector. Additionally, the results indicate that the value-added of the Iranian economic sectors has a positive and significant effect on the electricity demand of each sector.

This study explored the impact of the stock market on economic growth in Nigeria over the period from 1996 to 2023, focusing on indicators such as market capitalization, the All-Share Index (ASI), total value of traded shares, number of listed securities, and number of deals. The research design employed was ex-post facto (causal-comparative), analyzing pre-existing data to explore cause-and-effect relationships between stock market variables and GDP growth. The study used the Vector Error Correction Model (VECM) for time series analysis to assess both short-term and long-term dynamics. Additionally, stationarity tests (Augmented Dickey-Fuller test) and Johansen cointegration tests were applied to examine the long-run equilibrium and short-run relationships. The data for the analysis were sourced from the Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), National Bureau of Statistics (NBS), and the Central Bank of Nigeria (CBN). All computations and analyses were carried out using EViews 12.0 software. The findings revealed that in the long term, market capitalization (MCA) had a negative impact on economic growth, with a coefficient of -2.42, suggesting that a 1% increase in market capitalization led to a 2.42% decrease in GDP growth. On the other hand, the All-Share Index (ASI) had a positive effect on economic growth, with a coefficient of 1.47, indicating that a 1% increase in the ASI resulted in a 1.47% rise in GDP growth. Similarly, the total value of shares traded (TVS) and the number of deals (NOD) were positively associated with GDP growth, with coefficients of 0.79 and 0.66, respectively. However, the number of listed securities (NOS) showed a negative relationship, with a coefficient of -15.76, meaning that a 1% increase in listed securities led to a significant 15.76% drop in GDP growth. In the short run, stock market variables had limited effects on GDP growth, with the error correction term (ECT) indicating that 26.4% of short-term disequilibrium was adjusted in the following period. The study concluded that while stock market variables have a long-term effect on economic growth, their short-term influence is less significant. It recommended improving market capitalization quality, enhancing market liquidity, ensuring the listing of high-quality securities, and fostering a more robust financial ecosystem to support long-term growth. Addressing these issues could help Nigeria’s stock market play a more significant role in its economic development.

The paper investigated the relationship between the growth of highways and economic growth. We tested for mutual causality between the growth of road networks (which were functionally divided as state highways and national highways) and growth in investment and GDP. We employed time series data set containing observations of growth in road route kilometres by type for India over the period from 1972 - 2016 to fit a vector autoregressive model with exogenous variable describing the growth in road networks, GDP, and gross capital formation. We also checked if the establishment of National Highway Authority of India (NHAI) had any significant impact on the economy. The results indicated the existence of bidirectional causality between growth in GDP and growth in national highways and a unidirectional causality was seen from growth in national highways to growth in gross capital formation. Additionally, it was observed that the growth in state highways led to subsequent growth in national highways as well. The NHDP programme had a significant impact on the expansion of national highways, but no causal influence could be empirically identified on GDP and gross capital formation.

Economic landscape of Pakistan is determined by an extremely complex interaction of domestic and global forces; navigating it successfully requires a clear understanding of its character. The paper explores the dynamic relationships between macroeconomic variables and GDP growth in Pakistan using the Autoregressive Distributed Lag (ARDL) model and other stability tests using time series data from 1980 to 2022. The analysis includes variables representing GDP per capita, inflation, imports, total debt as a percentage of GDP, total population, and forestry and agricultural output. The correlation matrix shows a positive association between GDP growth rate and GDP per capita, total debt service is inversely correlated with total population, and GDP demonstrates a significant negative correlation. The ARDL results indicate that GDP per capita and the agriculture and forestry sectors are significant drivers of economic growth. Over the period in question, inflation only marginally affected GDP growth showing how important it is to maintain price stability through effective policies. Imports provide short-term benefits by enhancing productivity through capital goods and technology inflows but they may pose long-term challenges due to trade imbalances. The influence of population growth appears to be ambivalent: in the short term it contributes to economic growth by increasing labor supply and consumption; in the long term, however, its effect may become detrimental owing to resource constraints. Public debt shows little influence in the short term but negatively impacts growth over time by increasing the fiscal burden of debt servicing. These findings suggest that to achieve long-term economic stability and growth, the country needs targeted policy interventions that should help it control inflation, manage the debt sustainably, optimize imports, and invest in agriculture, which is an important determinant of GDP growth. Future research should concentrate on sector-specific studies and the effects of political stability on economic growth in order to provide deeper insights contributing to Pakistan’s sustainable economic development.

A study of the impact of military expenditures on economic growth and development examines the differences in the results of previous studies which led to contradictory conclusions. The authors find that these differences are due to sample variations, specificational choices, and the different time periods examined. The data indicate that there is no consistent, statistically significant connection between military spending and economic growth. Augmentation of the models suggests that military expenditures neither help nor hurt economic growth to any significant extent. 2 tables.