<b>Regional Competitiveness: Theories and Methodologies </b><b>for Empirical Analysis</b>

A significant forum of scholarly and practitioner-based research has developed in recent years that has sought both to theorize upon and empirically measure the competitiveness of regions. However, the disparate and fragmented nature of this work has led to the lack of a substantive theoretical foundation underpinning the various analyses and measurement methodologies employed. The aim of this paper is to place the regional competitiveness discourse within the context of theories of economic growth, and more particularly, those concerning regional economic growth. It is argued that regional competitiveness models are usually implicitly constructed in the lineage of endogenous growth frameworks, whereby deliberate investments in factors such as human capital and knowledge are considered to be key drivers of growth differentials. This leads to the suggestion that regional competitiveness can be usefully defined as the capacity and capability of regions to achieve economic growth relative to other regions at a similar overall stage of economic development, which will usually be within their own nation or continental bloc. The paper further assesses future avenues for theoretical and methodological exploration, highlighting the role of institutions, resilience and, well-being in understanding how the competitiveness of regions influences their long-term evolution.

The study examined the relationship between external financial flows, domestic savings and economic growth in the SADC region for the period from 1980 to 2009 specifically looking at the role played by institutions. The majority of countries in the SADC region are experiencing low levels of savings, which has led to them relying more on external financial flows to bridge the gap between domestic demand for finance and domestic supply. However the relationship between external finance and economic growth is still a contentious issue. Given this, the study has thus examined the link between growth and external finance in the region, specifically focusing on the impact of the different forms of external financial flows on economic growth in the region incorporating the role played by institutions. The empirical results revealed that three types of external financial flows have a significant impact on economic growth in the SADC region except ODA; however when all the different types of external financial flows were interacted with the measure of institutions, they all become significant and more enhanced in explaining economic growth in the region. This supports the hypothesis that good institutions are necessary in promoting economic growth in developing countries. The empirical results also suggest that foreign capital is another channel through which a crisis in developing countries can be transmitted to the SADC region.

This research work examined The Nexus among Human Capital Development, Institutions and Economic Growth in West African Sub-Region. It focused on the impact of human capital development, institutions, and economic growth variables such as human capital, voice of accountability, social security, government effectiveness, rule of law. The study used secondary data obtained from the world development indicator, 2018. The ordinary least square (OLS) econometric techniques were employed. The result of the analysis reveals that human capital exerts a positive and significant influence on economic growth in the region, while the effect of physical capital on GDP is positive, indicating a positive effect of physical capital on economic growth in the region. However, the institutional quality on economic growth is negative and insignificant at the same time. Based on the findings, the study suggests strong investment in Education and Health being significant contributors to economic growth in the sub region to further enhance economic growth and development.

The main purpose of the current study is to investigate if tourism affects economic growth of China. The data set has been acquired from the Beijing Municipal Bureau of Statistics, and the time span of the data set takes into account a 20-year time period, from 2000 to 2019. To determine the strength of the above-mentioned relationship previous models that have been used for this research are mainly VAR (vector auto-regression) and VECM (vector error correction) models. The VAR and VECM models have been conducted together with the Granger causality test. The internal revenue generated from tourism-related activities is taken as being the main indicator for the tourism industry, while economic growth is determined by GDP (gross domestic product). We support the above-mentioned notion, as we found that a strong relationship exists between the development of the tourism industry and economic growth. Moreover, our analysis also indicates that this industry has a major impact on long-term economic growth in the region as well. This study thus provides further support to the existing literature on the topic of tourism and the impact that tourism-related activities have upon economic development and growth. The existence and the impact of tourism-related activities upon long-term economic growth were confirmed by the results of the VAR models. At the same time, the unidirectional results of VECM models have confirmed the existence of economic growth in the short term. In our case, the cardinal relationship between the development of the tourism industry and the economic growth in the Beijing region of China have managed to provide strong empirical support to the earlier stated notions and to the literature alike.

Economists are still groping for an explanation of economic growth processes, particularly the processes that will help underdeveloped countries. Regional economic growth in the United States is a special case of a more general growth process, and what causes regional economic growth is also debated [3; 4]. Moreover, the role that money plays in the growth process for developing countries as well as in regions of countries is open to question.' There has been little effort to measure regional financial flows and to discover the role that financial markets and institutions play in regional economic growth. This is so partly because of the paucity of data on money capital flows on a regional basis but mostly because money capital markets are assumed to be perfect in most regional models and therefore not a significant deterrent to growth per se. For example, regional interest rate differentials are usually attributed to information cost rather than capital immobility [15]. Thus, while the supply of saving is given a critical role in regional growth models [13, 28] the concomitant roles of monetary phenomena in the guise of availability of funds and/or the structure of financial institutions rightly or wrongly are ignored or given minimal consideration [13, 38, 72]. This is unfortunate since much public policy, e.g., liberal branching laws, is based on the assumption or implied evidence that banks and bankers are a significant influence in the regional and/or state growth process (e.g., see footnote 6).2 With the concern over regional growth in the United States that developed in the 1960s, some interest developed in regional finance. The Checchi Study [1] was commissioned by the Appalachian Regional Commission because of the lack of information about subregional financial flows and structures. Studies on the role of banks in the growth of the South have been made although these have serious limitations when applied to relatively small regional areas.3 Income and employment multipliers have been computed by Miernyk, et al. for in West Virginia in their input-output study Simulating Regional Economic Development [9]. These and most other studies have failed to look at subaggregate bank data and at the individual bank and banker to see how regional growth is affected at the micro level. This paper attempts to broaden our knowledge of how countywide financial flows and banker behavior influence economic growth in specific parts of Appalachia and to test a variety of hypotheses about this relationship. The findings suggest that it is unlikely that banks or bankers play a significant or distinct role in regional growth. This conclusion is circumscribed by the difficulty found in the study of isolating the banking role in regional growth from a myriad of possible growth determinants.

This paper examined the impact of financial integration on economic growth in Southern African Development Community (SADC) and Economic Community of West African States (ECOWAS) countries over the period 1993–2013. Using the Panel ARDL PMG Model developed by Pesaran and Shin, other control variables (trade openness, inflation, government expenditure, and institutional quality) were captured in the model. It was found that there is a significant and positive impact of financial integration on economic growth in the ECOWAS region in the long run. Whereas, even after controlling for necessary variables, financial integration exacerbates negative and insignificant effects in determining economic growth in the SADC region, both in the short run and long run. The insignificant and negative impact of financial integration on the region’s economic growth was attributed to several possible factors, including the low level of financial development in the SADC region, which is unconnected with the poor level of governance, unstable and fragile financial stability, or low creditworthiness, that are prevalent in developing countries like those in SADC countries. The findings suggest, amongst others, that increasing financial integration could improve the productive capacity of the economy, including more investments and the efficient allocation of capital, thus enhancing economic growth in these regions. This paper sheds new insights on a better evaluation of the past and present theorizing on the subjects of financial integration and economic growth, especially in comparing the separate effects on the economies of the SADC and ECOWAS countries.

Research purpose. This research paper delves into the threshold effects of public debt on economic growth in Central and Eastern European countries, both before and after the COVID-19 pandemic. Its primary aim is to pinpoint critical thresholds of the public debt-to-GDP ratio that either stimulate or hinder economic growth in these regions. Design / Methodology / Approach. Data spanning from 2010 to 2022 are analysed using a variety of advanced econometric techniques including OLS, Fixed-Effects models, Random-Effects models, Hausman Taylor Estimation, GMM Dynamic Panel Data, and the Threshold model. Findings. The study reveals significant findings: before the COVID-19 pandemic, the optimal debt-to-GDP ratio threshold stood at 42.5%. However, considering the combined impact of the COVID-19 pandemic and the Ukraine crisis, this threshold adjusts to 33.69%. This indicates that Central and Eastern European countries can safely increase their debt levels up to these points without detriment to economic growth. Beyond these thresholds, however, further increases in public debt yield negative economic effects. These findings offer invaluable insights for policymakers in Central and Eastern European countries, equipping them with evidence-based guidance on managing public debt levels effectively. Originality / Value / Practical implications. This study offers original insights into public debt thresholds' effects on economic growth in Central and Eastern European developing countries before and after the COVID-19 pandemic. It highlights how debt thresholds shifted due to the pandemic and geopolitical events, providing practical guidance for policymakers. These findings support evidence-based debt management strategies to ensure economic stability and growth in the CEE region.

Since the reform and development, China’s economy has grown rapidly and the national income level has been continuously improved. This is closely related to China’s policy of reform and opening up, especially with the large-scale inflow of foreign direct investment under the reform and opening up policy. However, at the same time of rapid growth, China’s regional economic imbalance has become increasingly serious. Due to factors such as policy, market, location, labor force and clustering effects, the scale of FDI use in eastern, central and western China is also significantly different.Since China’s reform and opening up, FDI has flowed into coastal areas in large quantities, which has promoted the rapid development of the economy in the eastern region. However, it is also an indisputable fact that the regional economic development gap has been widened. Coupled with the sloping FDI regional preferential policy arrangement, it has led to the growing economic growth gap between the east and the west and the increasingly uneven regional economic development. These problems will inevitably affect the long-term development and virtuous circle of the Chinese economy. Therefore, under the strategy of “Western Development” and “Rise of Central China”, rational and effective use of foreign direct investment can promote the growth of the central and western economy and narrow the regional economic development gap. Studying the differences and contributions of foreign direct investment to China’s regional economy has certain theoretical and practical significance. First of all, FDI and economic growth have always been hot issues for scholars in macroeconomic research. However, FDI research started in developed countries. Most of the theories about FDI are analyzed from the perspective of the investment home country. The research on the relationship between FDI and economic growth in developing countries is relatively rare. And the research angles are qualitatively researching the status quo of FDI regional differences, the causes of formation, the mechanism of impact on economic growth, and solutions. Moreover, the role of foreign direct investment in economic growth in different regions has also changed due to differences in macro environment and policies. Therefore, studying FDI has far-reaching theoretical significance for China’s economic growth.China’s research on FDI originated in the 1990s, most of them study the relationship between FDI and economic growth through two perspectives. First, under the framework of the neoclassical economic growth theory, the role of FDI as a form of capital in China’s economy is studied. Second, the role of FDI in economic growth through technological spillovers is studied under the framework of the new growth economic theory. Based on the new growth theory, this paper sorts out nearly 10,000 data from 1998 to 2016. Through data analysis and empirical analysis, it provides case experience for FDI and economic growth theory in developing countries, which is beneficial to further research on FDI and economy. Secondly, this paper studies the relationship between FDI, human capital and China’s regional economic growth. It is not only a summary of the use of foreign direct investment in the past 30 years, but also an exploration of the rational use of foreign direct investment in the future. Rational use of foreign investment, with the goal of narrowing regional disparities and promoting balanced development of the regional economy, strive to maximize the role of foreign direct investment in promoting the economy. Based on these research implications, we use the cobb-dauglas production function as a theoretical model to study the relationship between foreign direct investment, domestic investment, human capital and China’s economic growth using panel data from 30 provinces and cities in China from 1998 to 2016.

Purpose: This research looked into debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education.
 Methodology: The research used a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1986–2018. The research used Microsoft excel to record all the data gotten from the world indicator data base from world bank, penn world table data base and CANA database. The analysis was presented in a tabular form.
 Findings: This study found that human capital has an overall positive and statistically significant impact on economic growth in the SSA region, although, democracy has a negative and statistically significant impact on economic growth in the region. This finding shows the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital.
 Unique contribution to theory, practice and policy:Generally, the finding emphasised that both education and health measures of human capital are important, and that policymakers must consider the level of economic development while formulating policies that can enhance the impact of human capital on economic growth in the Sub-Saharan Africa region.

Regional infrastructure competitiveness is highly influential in regional development. This research aims to: (1) compile the infrastructure competitiveness index for regencies or cities in Java, (2) assess the level of infrastructure competitiveness disparity between regencies or cities, and (3) analyze the relationship between the regional infrastructure competitiveness index and economic growth. In investigating the regional infrastructure competitiveness index, five infrastructure groups were assessed, namely social infrastructure, information technology, transportation, economy, and culture. The infrastructure competitiveness between regions (regencies and cities) was determined by scoring and standardization. The Gibbs & Martins index was used to measure the infrastructure competitiveness gap. Meanwhile, the relationship trend between the infrastructure competitiveness index and regional economic growth was analyzed using crosstabs. For the competitiveness of regional infrastructure in Java, this research observed spatial variations between regencies or cities. Besides, the regional infrastructure competitiveness index is not distributed concentrically and tends to have a diffuse pattern. Different distributions of the competitiveness index were also observed in every group of infrastructure. In general, clusters of high infrastructure competitiveness were observed in each province on the island of Java. The Gibbs & Martins index measurement illustrates Java's high regional infrastructure gap. The gap is due to the infrastructure in development centers and activity centers not being accompanied by infrastructure development in the hinterland areas. The social infrastructure has the highest level of inequality. Besides, this research also found a different relationship between infrastructure competitiveness and economic growth in the provinces.

This study analyses the influence of economic digitalization on economic growth in MENA region. We applied a system GMM estimator on a sample composed of 15 MENA countries from the period of 2012 to 2016. We used the Networked Readiness Index (NRI) to capture the economic digitalization. The results show that the digitalization is positively associated with economic growth. All the NRI sub-indexes variables seem to be positively significant; however, skills and education variables are not significant. This study recommends the MENA governments to invest more in ICT, especially in ICT human capital to enhance economic growth in the region, and use efficiently labor force when adopting the frontier technology.

Banking intermediation in Indonesia is crucial because it directly affects economic growth to accommodate and channel capital from depositors to debtors to be used for production activities, encouraging economic growth in a region, in a certain period. The increase in economic growth caused by banking intermediation will directly or indirectly affect various aspects, one of which is the poverty rate. This paper aims to look at the effect of banking intermediation on economic growth directly and its effect on poverty levels both directly and indirectly through economic growth in East Kalimantan Province. The dataset used in this study comprises secondary time series data spanning from 2011 to 2022, sourced from the East Kalimantan Province’s BPS (Central Bureau of Statistics) and the Indonesian Financial Services Authority. To analyze these relationships, this study employed path analysis with SPSS 25. The findings of this research revealed that banking intermediation in East Kalimantan Province had a direct impact on economic growth in the same region. However, the relationship between banking intermediation and economic growth in East Kalimantan Province did not have a direct effect on poverty levels in the region. Instead, the influence of banking intermediation in East Kalimantan Province on poverty levels operates indirectly through its impact on economic growth. Keywords: financial intermediary, economic growth, poverty

The paper presents an empirical study of the relationships between financial development, economic growth, urbanisation and energy consumption in the Southern African Development Community for the years 1980 to 2023. The researchers applied the Bayesian approach via Metropolis-Hasting and Gibbs samples as the MCMC methods, and Dumitrescu and Hurlin (2012) and Diagnostic tests to check the causality among all the variables in question and accuracy of the data and model. Over time, there has been a significant positive correlation between financial development, economic growth, industrialization, urbanization, and energy consumption. The results of the Granger causality test showed a unidirectional causal relationship between financial development, urbanization, and energy consumption supporting the alternative hypothesis that there is a relationship between financial development and energy consumption in the Southern African Development Community. It has been found that there is a Bi-directional (feedback) Granger causal relationship between economic growth and energy consumption in the Southern African Development Community; this also supports the alternative hypothesis. The results align with endogenous growth theory, which emphasizes that economic growth is driven by internal factors such as capital accumulation, innovation, and improved efficiencies, where energy plays a significant role. This also supports the view that energy infrastructure development is vital for sustaining economic growth in the region. The diagnostic tests confirm that the model is correct.

Decoupling relationship between energy consumption and economic growth in China's provinces from the perspective of resource security

This research aims to measure the regional disparities in Jordan’s economic growth during 2010-2017. As an indicator to measure the economic growth in each region is the regional factor (R) adopted, and for estimation the regional factor is the Shift and Share method used. This method is widely used by geographical economist. The annual average of household income, as economic indicator, to estimate the regional factor in this study will be adopted. Data on annual household income were taken from the expenditure and income surveys prepared by the Jordanian General Statistics Department in year 2010 and year 2017. The results of this study indicate that economic growth in Irbid region and Mafraq region was greater than the national growth, while the rest of the regions have had much slower economic growth compared to national growth during the study period. Expect Amman region, the capital of Jordan, showed similar economic growth to national level. The results of the research indicate that the region’s share of income increased for regions that achieved high economic growth and in return this share was reduced to the values that showed low growth and lower than the rate of national economic growth. The least economically developed regions are the regions in the south of the country, despite the development policies in the field of balanced regional development, but because of the lack of infrastructure, they are still unable to reduce the development gap between the regions in Jordan. The study recommended the need for the government to enable the regions to accelerate regional development as well as reduction in the development gap between them by devolving administrative and financial powers from the central level to the regional level. It also recommended the need to support investment, especially in the less developed regions. Keywords: economic growth, regional economics, income distribution, development planning, decentralization.