Employment Effectiveness of China's Economic Stimulus Package

The improved performance of the financial sector through its process of financial intermediation between savers and investors and between lenders and borrowers as well as the guidance of the funds those are available to the optimal investments lead to achieve the desired stable economic growth. Economists generally believe that high rates of inflation cause problems to some individuals and as well as for the whole economic performance. In general, low inflation rate with financial sector development plays a crucial and essential role in achieving sustained and stable economic growth. Therefore, maintaining inflation rate at low level and improving the financial sector performance are considering themain targets for policy makers to promote sustained and stable economic growth. So, the main purpose of this paper was to investigate empirically the relationship between inflation and financial sector development in Saudi Arabia for the period of 1982-2013.This paper used the autoregressive distributed lag (ARDL) bound testing approach suggested by Perasan et al. (2001) to examine the existence of the long-run relationship between the inflation rate and financial sector development. The advantage of the bounds testing approach is in its applicability irrespective of whether the underlying variables are purely I (0), purely I (1) or mutually co-integrated.All data were tested for stationarity using Augmented Dickey-Fuller (ADF) test and the Phillip-Perron (PP) test to determine the order of integration. The variables included in this study are: The credit to the private sector as percentage of GDP was used as a proxy of financial development and inflation rate measured by the consumer price index. The study also included two more control variables: trade openness and real gross domestic product. The main findings are as follows. First, tests results of the Augmented Dickey-Fuller (ADF) and Phillips – Perron (PP) showed that consumer price index (LCPI), real gross domestic product (LGDP) and trade openness (LOPEN) did not seem to be stationary at their level but they were at first difference. Accordingly, they were integrated of order one I (1). On the other side, both tests results of financial development (LFD) seemed to be stationary at its level. Accordingly, it was integrated of order zero I (0). Second, results showed that there was a statistically significant long-and-short run negative relationship between inflation and financial development. Third, there was statistically significant positive impact of previous financial sector’s policies on financial sector development.Forth, results indicated that there was statistically significant positive impact of economic growth on financial development. Fifth, there was a statistically significant negative impact of trade openness on financial development.Accordingly, inflation and trade liberalization policy are the main obstacles facing financial sector performance. Therefore, the policy makers can reduce inflation through the use of appropriate fiscal and monetary policies.

The paper investigates the role of infrastructure in promoting economic growth in China using ARDL and GMM techniques for the period 1975 to 2007. In this context, an attempt is made to understand growth accounting equations to investigate the impact of infrastructure development on output. Overall, the results reveal that infrastructure stock, labour force, public and private investment play an important role in economic growth in China. More importantly, the study finds that Infrastructure development in China has significant positive contribution to growth than both private and public investment. Further, there is unidirectional causality from infrastructure development to output growth justifying China's high spending on infrastructure development since the early nineties. The experience from China suggests that it is necessary to design an economic policy that improves the physical infrastructure as well as human capital formation for sustainable economic growth in developing countries.Keywords: China, Infrastructure Development, Investment, Output GrowthJEL classification: H4, H54, L9, O1(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONChina is the fastest growing country in the world for last few decades and accounts for nearly one fifth of the world population. Economic growth in China increased from 7.5% during 1970 to 1999 to over 10% per annum between 1999 to 2008. This has attracted many scholars to examine the major determinates of growth in China. Over the last two decades, academic research has devoted considerable attention to the role of trade and Foreign Direct Investment (FDI) in promoting growth. However, the role of infrastructure and human capital development has been neglected. Therefore, this paper offers an empirical assessment of the impact of infrastructure and human capital development on growth in the case of China.The role of infrastructure in enhancing economic development has been well documented both in the academic literature and in the policy debate (Aschauer, 1989; Munnell, 1990; World Bank, 1994; Calderon and Serven, 2003; Estache, 2006; Sahoo, 2006; Sahoo and Dash, 2010; and 2011). More recently, increasing attention has also been paid to the impact of infrastructure on poverty and inequality (World Bank, 2006). Further, it has been found that social infrastructure such as education, health, and housing are essential to promote better utilization of physical infrastructure and human resources, thereby leading to higher economic growth and improving quality of life (Hall and Jones, 1999).Over the past two decades, one of the defining features of China's growth has been investment led growth supported by domestic savings. China's sustained high economic growth and increased competitiveness has been underpinned by a massive development of physical infrastructure (Chatterjee, 2005; Stephane et al., 2007). The open economic policy made it possible for the inflow of foreign direct investment (FDI) mainly to the manufacturing sector. Cheap labour and better than adequate infrastructure were important pre-requisites that led to a successful the export-led growth strategy. With seemingly unlimited supply of cheap labour from the rural sector, public investment in infrastructure became the keystone in the strategy. A major focus by the government at all levels on infrastructure thus ensued.1Though infrastructure development certainly helped export-led economic growth in China, the Chinese economy started showing signs of overheating in recent years because of basic infrastructure constraints. Clearly, there is an increasing gap between the potential demand and the available supply of infrastructure to sustain high growth. Given the importance of infrastructure development for sustainable economic growth and poverty reduction in China, the present study examines the output elasticity of infrastructure development in China for the period 1970-2008. …

Since the reform and opening up, China's economy has shown a steady upward momentum of development and how to maintain sustained and stable economic growth is our concern. Using the annual data of 2013 China's 31 provinces as samples to set up the structural equation model. The author divide into three aspects for these factors which are effect the economic development of the city, which include transportation, urban construction and people's life. The results show that all of the three aspects have significant effect to urban economic development. Then we put forward constructive opinions to promoting the economic development of the city.

Sustainable and stable economic growth is a key goal for many countries. As times change and global challenges become more complex, it is important for countries to develop effective strategies to promote economic growth. One sector that has an important role in this regard is the public sector. This research aims to analyse the public sector development strategy as a driver of economic growth. The current research type is qualitative. Data collection techniques include listening and recording important information to conduct data analysis through data reduction, data display, and conclusion drawing. The study results show that the public sector development strategy as a driver of economic growth plays an important role in creating a conducive environment for sustainable and inclusive economic growth. In the context of endogenous growth theory, the government has the ability to influence the determinants of economic growth through appropriate policies and actions.

Goal – The aims of the research are to identify the most significant internal and external factors affecting the economic security of China and assess the importance of the Belt and Road Initiative for China's future development. Research methodology – In order to organize internal and external determinants of economic security of China, SWOT (strengths, weaknesses, opportunities and threats) analysis was applied. Moreover, an important element of the research process was an attempt to verify hypothesis that the Belt and Road Initiative is a key instrument of China’s economic security strategy. Score – China has transformed from a poor rural country into one of the main economic powers as a result of the economic reforms initiated in the late 1970s. However, we can observe that the economy of China is slowing down. In order to ensure economic security and maintain a stable economic growth as well as avoid the middle income trap China has introduced the Belt and Road Initiative. Since its announcement, the concept has been gradually gaining in importance and has finally become the key instrument of the Chinese foreign policy and a major element of economic development strategy. The main motive behind this project is to develop transport and energy infrastructure which will allow China to gain access to natural resources and new markets. An efficient transport network will facilitate trade, while energy infrastructure will prevent problems with energy and resource supply, which the Chinese economy needs. The Belt and Road Initiative is a way of boosting economic development of China through improving infrastructure from Asia to Africa and Europe and the establishment of trade links among all partner countries. The New Silk Road concept aims to use the advantages of the Chinese economy and the states participating in the initiative to stimulate its economic growth. Therefore, it is a strategy of providing long-term economic security. Originality/value – The paper raises the issue of the Chinese economic security understood as a long-term ability of the economy to achieve a relatively fast and sustainable economic growth. In this paper, the author defines the concept of economic security and with the help of SWOT analysis presents the strengths and weaknesses of China’s economy as well as opportunities and possible threats to its stability. Moreover, the paper includes comprehensive analysis of China’s motives behind the Belt and Road Initiative in the context of economic security of China.

This article aims to explore the complex relationship between social inequality and economic growth. From the perspective of international comparison, this article analyzes the differences and commonness of social inequality and economic growth in different countries and regions, and reveals the potential influence of social inequality on economic growth. Firstly, the article reviews the relevant theories and makes clear the internal relationship between social inequality and economic growth. Then, using international data, the degree of social inequality and economic growth performance in different countries and regions are compared and analyzed. It is found that countries with higher social inequality are often constrained in their economic growth, while countries with higher social equality are more likely to achieve sustained and stable economic growth. This article further discusses the influence mechanism of social inequality on economic growth, including income distribution, educational opportunities, medical and health services, political system and legal environment. Based on these analyses, a series of targeted policy suggestions are put forward, aiming at reducing social inequality and realizing social sustainable development.

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.

The debate on economic stability, viewed from the perspectives of economic growth and equitable income distribution, remains a crucial issue. The discussion between economic growth and income inequality has been long and complex and often includes a discussion of the trade-offs and relationships between these two economic phenomena. Studies have shown that more equal societies frequently experience more sustainable and stable economic growth. High inequality can trigger other risks that can prevent economic progress. Reducing inequality through investment in education will increase labour productivity and innovation. Therefore, it is necessary to provide policies that can satisfy both objectives. Macroprudential policies that are well calibrated can promote long-term economic growth by preventing financial crises. While macroprudential policies promote financial stability, their design and implementation may unintentionally affect income inequality. Therefore, with the complexity of achieving the objectives of stabilizing economic growth and reducing income inequality, effective policies that can address both are required. This study aims to systematically examine the linkages between macro-prudential policies, income inequality, and economic growth. To provide a systematic review of the literature, this study adopts a Prisma-based flowchart model to achieve a deeper understanding. The study formulates three research questions regarding the relationship between these variables. The research findings show that emerging studies include macro-prudential policy measures, including loan-to-value (LTV) ratios and debt-to-income (DTI) ratios; authorities can control overborrowing and excessive speculation, making housing more accessible and prevent wealth accumulation, thereby enabling wealth distribution.

Abstract. The future of economic growth is projected by solving differential equations describing growth rate date. Analysis was carried out for 12 countries representing the leading economies responsible for around70% of the global economic output. Out of all these countries, the most secure and stable economic growth is in Japan, Germany and France. In contrast, economic growth in China, India and Brazil are strongly insecure and potentially leading to the economic collapse. Economic growth in the United States, United Kingdom, Canada and Australia are on the border line. They also might become unsustainable. Economic growth in the remaining two countries, Italy and Russian Federation, is unpredictable. As for the preventive measures, for Japan, Germany and France, growth rate should be, if possible, maintained at a small value below 1%. Economic growth in these countries is described by logistic trajectories. Their asymptotic approach to a maximum value is hard to control but the growth rate should not be allowed to be substantially increased. For China, India and Brazil, growth rate should be now decreasing sufficiently fast to avoid the potential economic collapse. For the USA, UK, Canada and Australia, it would be also advisable to decrease their growth rate faster than in the recent years. For two countries, Italy and Russian Federation, it is essential to stabilise, if possible, their economic growth. Keywords. Gross Domestic Product; Future Economic Growth; Sustainable Economic Growth; Economic Collapse; USA, China, Japan, Germany, France, UK, Brazil, India, Italy, Canada, Russian Federation, Australia. JEL. A10, B41, C02, C20, C50, F00, F01.

The purpose of this paper is to clarify the convergence pattern of China’s regional economies, explore the driving force of their coordinated development, and provide policy suggestions for coordinated and high-quality development. We used nighttime light data from 1992 to 2020 and combined an exploratory spatial data analytical method and a log-t test of a nonlinear time-varying factor model to identify the spatial convergence clubs of regional economic growth and the economic growth drivers of different clubs based on a spatial econometric model. We found that the eastern region is strong while the development of the central, western, and northeastern regions follows China’s long-term trend. Three high-level economic clubs (Shanghai, Jiangsu, and Zhejiang belong to Club 1; Shandong, Hebei, Anhui, Henan, and Liaoning belong to Club 2; Hainan, Fujian, and Guangdong belong to Club 3) have formed in the eastern coastal and central regions, while a low-level one (Inner Mongolia, Hubei, Chongqing, Qinghai, Guizhou, Sichuan, Guangxi, Yunnan, Xizang, Shaanxi, Gansu, Hunan, Ningxia, Xinjiang, Jiangxi, Heilongjiang, and Jilin) has formed in the central, western, and northeastern regions. Beijing, Tianjin, and Shanxi are not convergent. The coordinated development of these regions requires improving the levels of economic growth in the western and northeastern regions to give full play to the role of the Yangtze River Delta as a growth pole and its economic radiation capacity. An analysis of the influence mechanism and spatial spillover effects shows that industrial development and market vitality are the most important driving forces for economic growth. For the low-level club, service industry development, human capital, and resource consumption are also key factors for achieving sustained and stable economic growth.

East Asia (EA) is conventionally defined to comprise China and Japan, the four newly industrialized economies (NIEs) of South Korea, Taiwan, Hong Kong and Singapore, and the Association of Southeast Asian Nations (ASEANs) economies. The EA region is well known for its dynamic economic growth through the past 50 years. The first wave of EA's high growth was led by Japan, and it soon spread to the four NIEs and some ASEAN economies. This marks the first rise of EA or EA-I. Japanese economists used to explain such a phenomenon as the ‘flying geese pattern’. The second wave of EA's high growth was led by China, and it is currently spreading into the whole of the EA region. The second rise of EA or EA-II is economically much more formidable than EA-I because of China's vast economic scale compounded by its high rates economic growth. The China-led EA-II today accounts for 24.4% of global GDP (higher than the US share of 21.5%), as compared to 15.2% of the Japan-led EA-I. Increasingly, China's economy operates not just as an engine of growth for the EA region but also a catalyst for regional economic integration. After the 2008 Global Financial Crisis, global economic gravity has clearly shifted to EA. However, individual EA economies are still beset by problems of structural imbalance. Above all, the future of EA-II critically depends on the continuing economic rise of China, i.e. the ability of China's economy to sustain its dynamic economic growth without falling into the ‘middle-income trap’. EA economic growth has been taking place in the kind of regional order that is, from time to time, undermined by bilateral discord and regional conflict. China as the region's largest economy will no doubt continue to lead the region's economic growth and shape the pattern of economic relations among the EA economies. Increasingly trade and investment in the region are gravitating towards China. However, for a long time, China will not be able to shape the region's geo-political landscape. China's message of ‘peaceful rise’ has not been unequivocally accepted in the region. China's overall relations with other EA economies will continue to be ‘hot in economics and cold in politics’. The growing political and strategic role of the USA has further complicated China's relations with other EA economies in the region. For years to come, China's geo-political leverage in the region will remain limited as opposed to its expanding geo-economic influence. The existing regional order in EA will, therefore, continue to be marred by uncertainty and instability. It is still a long way from the East Asian Community, which is to be based on not just sustainable economic growth and increasing integration, but also harmonious political and security relations.

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.

This paper aims to propose policy implications to improve firm performance across various economic sectors in Vietnam by assessing the impact of economic growth, public investment, and private investment on firm performance in several sectors. To achieve this, the study employs the System Generalized Method of Moments (SGMM) with panel data from the General Statistics Office of Vietnam, covering 14 sectors from 2011 to 2022. Data analysis was conducted using Stata software, version 17. Empirical findings indicate that economic growth and public investment negatively affect firm performance in some sectors, whereas private investment has a positive impact in certain sectors. These findings have practical significance for Vietnamese state management agencies aiming to enhance firm performance. Specifically, Vietnam should focus on maintaining stable and sustainable economic growth across sectors. Additionally, improving the efficiency of public investment by addressing delays in project progress and capital pooling, as well as tackling inefficiencies in state-owned enterprises, is essential. Furthermore, the government should promote and facilitate private investment to support sector development.

"Stable economic growth is usually a factor of several indices. Modern economists generally believe that economic growth is principally and primarily influenced by factors around it thus, the paper studied the relationship between human rights and stable economic growth observing that these variables could affect directly on corporate social responsibility initiatives. The study examined the nexus between human rights, stable economic growth and corporate social responsibilities. Explorative research design was adopted. The study adopted secondary sources of data. The study sample size was the 19 countries in the population of G-20. The study explanatory variable is human right, measured by Best Countries Index, while the dependent variable is stable economic growth, measured by Gross Domestic Product per capital and Human Development Index. Ordinary least square regression analysis was adopted. The findings of the study exposed that measuring a country’s human rights does not immediately translate to an improved economy. There is a need to improve the measurement criteria of human rights and make it more economical and quantitative to aid scientific testing. The study concludes that a country that monitors and improves its human rights indicators and encourages formal and informal businesses to embark on corporate social responsibilities would improve its ratings. The study recommends that countries should make a conscious effort to improve the defense of human rights to reflect the country’s perception and its image. The study would assist policymakers in measuring human rights and formulate policies that would assist the government in pursuing these factors deliberately to improve economic growth."

This study explored the interaction between private and public investments and its effect on economic growth in Nigeria over the period 1986 to 2021. The analysis utilized annual time series data, including real Gross Domestic Product (GDP), private investment (proxied by gross fixed capital formation), public investment (proxied by government capital expenditure), exchange rate, and interest rate spread. The Autoregressive Distributed Lag (ARDL) Bounds Testing approach was employed to examine the existence of both short-run and long-run relationships among the variables. The objective was to assess the effect of the interaction between private and public investment on economic growth. The empirical results revealed that the model variables were cointegrated, suggesting a stable long-term equilibrium relationship. Furthermore, the interaction between private and public investments were found to have a statistically significant impact on economic growth in both the short run and the long run, highlighting the complementary nature of these investment types. The study recommends that government policy should focus on enhancing the synergy between public and private investment through the provision of critical infrastructure at reduced economic costs. Also the creation of a business-friendly environment fosters sustainable economic growth in Nigeria.