MECHANISM OF INFLUENCE OF STRUCTURAL FACTORS ON ECONOMIC GROWTH

Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.

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.

The purpose of this research is to determine the effect of the revenue budget realization on economic growth in 2016-2020 period, to find out regional expenditure on economic growth in Enrekang Regency for 2016-2020 period, to find out theregional revenue and expenditure budgets realization has an effect on economic growth in 2016-2020 period. Quantitative (descriptive) analysis method, which analyzes data on the Regional Revenue and Expenditure Budgets realization on economic growth in Enrekang Regency. Quantitative method, multiple linear regression method, namely to see the effect of regional revenue (X1) and expenditure (X2) oneconomic growth (Y). The results of the study stated that from the table of results of the f-test analysis, namely the effect of regional revenue on economic growth obtained the value of t-count > t-table (-2,101 < -2,131) at a significant level of 0.05. Then there is a significant effect between revenue and the value of economic growth. So that hypothesis 1 is accepted. Based on the partial test results, on the table of t-test analysis, the effect of regional expenditure on economic growth is obtained by the value of t-count > t-table (-1.980 <-2.131) at a significant level of 0.05, so Ha is accepted, meaning that partially there is a significant effect between regional expenditure and economic growth. So that hypothesis 2 is accepted. In the study entitled the effect of regional revenue and expenditure budgets realization on economic growth in Enrekang Regency. The variable used in this study was the effect of regional revenue and expenditure budgets on economic growth being the independent and dependent variable, namely the regional revenue and expenditure budgets has a significant effect. So that hypothesis 3 is accepted.

This study aims to determine: (1) The Effect of Labour on Economic Growth in North Luwu Regency. (2) The Effect of Education Level on Economic Growth in North Luwu Regency. (3) The effect of labour and education level together on economic growth in North Luwu Regency. This type of research is quantitative. The type of data is secondary data. This study uses time series data issued by the Central Bureau of Statistics (BPS) of North Luwu Regency at constant 2010 prices, the data collected for the last 8 years. The data analysis method used in this research is Multiple Linear Regression. The results of this study indicate that: (1) Labour has a negative and significant effect on Economic Growth in North Luwu Regency. (2) Education level has a positive and significant effect on economic growth in North Luwu Regency. (3) Labour force and education level together affect economic growth in North Luwu Regency.

Banks credit by usage (working capital, investment and consumer credit) and by economic sectors (agricultural, mining, industrial, trade and services) on Indonesian economic growth explainedthe role of banks credit as a monetary transmission channel. Banks credit for investment, agricultural, industrial, trade and services, have a significant effect on economic growth. Thus, as a growth accelerating factor, investment credit aimed to financing agricultural, industrial, trade and services areable to promote qualified growth of Indonesian economy as well as reducing unemployment rate. This study uses bankscredit data by usage, economic sectors, economic growth and unemployment rate in the period of 1991-2014. Model estimation on the relationship between banks credit by usage on economic growth and unemployment using ECM (Error Correction Mechanism) model, while the relationship between banks credit by economic sectors oneconomic growth using in–difference regressionon OLS (Ordinary Least Square) model.Credit depth as the ratio between banks credit and economic growth is only appropriate for the analysis of banks credit relationship usage on economic growth, while by economic sectors, their role depend on the magnitude of credit portfolio to total banks credit. Keywords: credit by economic sectors; credit by usage; economic growth JEL Codes: E6, O2, O4

Banks credit by usage (working capital, investment and consumer credit) and by economic sectors (agricultural, mining, industrial, trade and services) on Indonesian economic growth explainedthe role of banks credit as a monetary transmission channel. Banks credit for investment, agricultural, industrial, trade and services, have a significant effect on economic growth. Thus, as a growth accelerating factor, investment credit aimed to financing agricultural, industrial, trade and services areable to promote qualified growth of Indonesian economy as well as reducing unemployment rate. This study uses bankscredit data by usage, economic sectors, economic growth and unemployment rate in the period of 1991-2014. Model estimation on the relationship between banks credit by usage on economic growth and unemployment using ECM (Error Correction Mechanism) model, while the relationship between banks credit by economic sectors oneconomic growth using in–difference regressionon OLS (Ordinary Least Square) model.Credit depth as the ratio between banks credit and economic growth is only appropriate for the analysis of banks credit relationship usage on economic growth, while by economic sectors, their role depend on the magnitude of credit portfolio to total banks credit. Keywords: credit by economic sectors; credit by usage; economic growth JEL Codes: E6, O2, O4

The study investigated the effect of macroeconomic variables on economic growth in Nigeria covering 1990-2024. Expost-facto research design was adopted for the study. To achieve this, the researcher employed secondary data on included variables to carry out the analysis. The data were collected from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS). Auto regression Distribution lag (ARDL) model adopted with modification for the study. The data were subjected to diagnostic test which include Unit root test and Cointegration test before estimating the model. The findings of the study showed that the coefficient of Foreign Exchange Rate (FER) was statistically significant at 5% level, while Interest Rate (IR), Inflation Rate (INF) and Foreign Direct Investment (FDI) were no statistically significant at 5% level. It was concluded from the result analysis that Foreign Exchange Rate (FER) has positive and strong influence on economic growth, Interest Rate (IR) and Inflation Rate (INF) has a positive and weak influence on economic growth, while Foreign Direct Investment (FDI) has a negative and weak influence on economic growth in Nigeria during the period under review. The study recommended that Nigeria government and other policy maker/ key players should ensure to have sound macroeconomic policies that would formulates good policies towards growth. And that the environment should be conducive for domestic investors and companies towards indigenous productivity which will facilitate export economy and discourages import economy. This, by implication, would contribute immensely to economic growth in Nigeria.

The emigration of highly skilled individuals from their home countries, also known as the brain drain, has been a concern for policymakers and economists worldwide for a long time. The aim of the paper is to examine the effect of the emigration of highly skilled individuals on the economic growth in both source and recipient countries. The paper examines how the brain drain affects the economic growth in both the source and recipient countries, and it also considers factors such as the educational opportunities and the economic and social conditions. The study analyzes data from 2006 to 2022 for 25 OECD countries using the AutoRegressive Distributed Lag (ARDL) approach to estimate the effects of the brain drain on the economic growth. The results show that the emigration of highly skilled individuals from their home countries has a negative impact on the economic growth in the source country while a positive impact on the recipient country. The results contribute to the ongoing brain drain debate and offer valuable insights for policymakers and governments. By quantifying the effects of the brain drain on the economic growth, this research provides a basis for formulating strategies to mitigate its negative consequences and maximize its potential benefits.

Different researchers have different views on the exact contribution of foreign direct investment in the discourse on economic growth in several developing countries. Supporters believe that Foreign Direct Investment increases domestic capital and improves productivity and growth by filling economies; foreign currency; performance and management gaps, cross-border credit and risk swaps, technology and skills transfer, job creation. Opponents also believe that Foreign Direct Investment exposes domestic markets to external volatility, the increase in dependence and the transformation of domestic savings can bring macroeconomic stability. The Government of Mali attaches great importance to the contribution of Foreign Direct Investment to economic growth, as evidenced by the many deliberate actions taken to exploit Foreign Direct Investment flows into the economy, including legislation and trade incentives. However, previous studies of the real contribution of FDI to economic growth or the conditions under which FDI stimulates economic growth have produced mixed results. Given the level of importance attributed to FDI related to economic growth in Mali, this study investigates the effect of foreign direct investment on the growth of the Malian economy using data on FDI inflows and GDP from 1985 to 2015. In order to achieve our main objective, we have developed the function Cobb Douglass production and regression of ordinary least squares. In the regression calculations we had to use such as gross domestic product (GDP) is represented as the dependent variable while foreign direct investment (FDI), public expenditure (GE), and human capital (HC) are the independent variables, to evaluate the impact of FDI on economic growth in Mali. The results show that when FDI inflow increase by 1% ,that will increase GDP by 0.061%, all things being equivalent, however it is statistically very significant at 5% of 0.000%, this means that when the government of Mali attracts more investors that will likely increase economic growth. The main conclusion is that 0.061% of the evolution of the economic growth in Mali during the period is due of the foreign direct investments. In itself, FDI is significant to influence economic growth in Mali, but must interact with infrastructure development and the openness of the economy to produce the desired impact on economic growth. Therefore, for the economy to achieve its medium- and long-term goals, whose success depends on FDI inflows, these conditions must be exploited or explored.

Many scholars have researched the connection between fiscal policy and economic growth and how fiscal policy can be a crucial factor for economic development and growth. Despite this, it still remains a critical debate amongst policymakers and scholars. Thus, this study fills the gap by analyzing the impact of fiscal policy on economic growth in Malaysia spanning 1990 to 2022. The secondary data from World Bank Indicators (WDI) is collected. This study examines the impact of fiscal policy (government expenditure) on Malaysia's economic growth by adding more macro factors such as unemployment, tax revenue, and inflation. This study employs the Autoregressive distributed lag (ARDL) model to examine the long-run correlation to meet this objective. Furthermore, various econometric models are employed, including the ARDL bound test and the error correction model (ECM), to check the relationship between the variables. Based on empirical results and findings, the study suggests that there is a strong relationship between GDP and expenditure, unemployment, tax revenue and inflation since the probability value is less than significant in the short-term relationship with constant and unrestricted constant form. Additionally, with the ARDL Model boundary test, government expenditure, unemployment, tax revenue, and inflation have a long-term relationship with GDP in Malaysia, where the F-statistic value is smaller than the lower boundary. Moreover, the Error correction method with restricted constant suggests a long-term link between the expenditure and GDP. Notwithstanding the results, fiscal policymakers must carefully evaluate the efficacy of government expenditure allocation to ensure that it is consistent with the long-term economic growth goals. The potential limitation of this study is its dependency on secondary data from the World Bank Indicators (WDI), which may not capture all relevant nuances of Malaysian fiscal policy and economic dynamics.

Vocational education can be seen as an important tool in leveraging India’s demographic dividend. Given the labor surplus in terms of the young population, it is important to examine how vocational education and training can serve as a critical driver of economic growth. This study aims at examining the impact of vocational education and training on economic growth in India, using the framework of the augmented Solow growth model by decomposing human capital into vocational education, along with primary, secondary and higher education. Using an ARDL model based on the annual data from 1990 to 1991 and 2019 to 2020, the study analyzes the short-run and long-run impact of vocational education. The results indicate that in the case of India, the impact of vocational education on economic growth is both a short-run and long-run phenomenon exhibiting a stable positive relation. Other control variables used in this study, such as Investment, Population, Openness and Inflation are found with a significant impact on economic growth. The study suggests that it is necessary to upgrade vocational education programs to create high-quality workers with a view to improving productivity and macroeconomic outcomes in India.

Ponte Academic JournalJul 2017, Volume 73, Issue 7 ASYMMETRIC EFFECT OF OIL PRICE UNCERTAINTY ON ECONOMIC GROWTH BY GMMAuthor(s): Naser seifollahiJ. Ponte - Jul 2017 - Volume 73 - Issue 7 doi: 10.21506/j.ponte.2017.7.31 Abstract:Abstract The purpose of the study was to investigate the effect of oil price fluctuations and the asymmetric effects of oil price fluctuations (asymmetric effects of oil shocks on the difference between the effects of its positive and negative impacts) on economic growth in the seven selected countries exporter of oil (OPEC) based on the maximum information available during the 1961-2015 period Use of generalized torque model (GMM panel data). In this research, the oil price asymmetry is firstly estimated using a non-uniformity model of the conditional exponential variance. EGARCH model shows that the model is asymmetric and the effect of positive shocks than negative shocks. The effect of shocks is positive and negative on positive economic growth, but the effect of positive shocks on negative shocks has a greater impact on economic growth in these countries. there is a negative relationship with economic growth and oil price uncertainty. Based on the Pedroni co-integration test, there is a significant relationship between the variables of the model that is due to the nature of each country. Based on oil price uncertainty coefficient, the GMM model to increase economic growth in selected countries of OPEC to reduce oil price volatility and reduce oil price volatility increases economic growth.the results of panel EGLS using as short-term results, in the long run the show that between oil prices uncertainty and economic growth there is a negative relationship. the economic growth with a lag period, the highest share in its economic growth. Download full text:Check if you have access through your login credentials or your institution Username Password

The human development index and education are one of the benchmarks for the success of economic development. Each country seeks to improve development achievements both monetary and non-monetary. This study aims to examine the effect of the Human Development Index and education as proxied by Average Years of Schooling, Expected Years of Schooling, Literacy Rate on economic growth. This study uses a panel data analysis method consisting of five districts/cities in the Province of the Special Region of Yogyakarta with an interval of 2015-2020. The data used is secondary data originating from the Central Statistics Agency. The results of this study indicate that HDI and AMH variables do not affect economic growth. While the variables RLS and HLS have a significant positive effect on economic growth. This research can be a reference for optimizing education and human development policies to increase economic growth in Yogyakarta.

This paper investigates the impact of remittances on economic growth for the ten MENA countries for the MENA region over a period from 1980 to 2021. Our contribution consists in decomposing the effect of remittances on economic growth into a direct effect and an indirect effect which are transmitted through the domestic investment channel and human capital channel. To do so, our econometric approach is based on dynamic panel data (GMM diff and GMM sys) in order to overcome endogeneity and inverse causality bias. Two main results can be identified: First, the results show that remittances negatively affect economic growth. Second, we show that the interaction terms between remittances and human capital ([Formula: see text]) and remittances and domestic investment ([Formula: see text]) are positive and statistically significant in the dynamic panel approach. These results show that the effectiveness of migrant remittances in terms of economic growth depends heavily on improving human capital and orienting remittances to the most productive investments for MENA countries. The policy implications of our study are that governments of the most remittance-receiving countries in the MENA region must give great importance to improving domestic investment and the level of human capital in order to enhance remittances and promoting economic growth.

Over the past decade, growing attention has been devoted to the evolving relationship between the European Union and the countries of the Western Balkans, particularly in relation to economic growth and development. Through a range of strategic initiatives, these ties have been progressively strengthened, with regional cooperation increasingly recognized as a key driver of economic advancement. The aim of this paper is to examine the impact of macroeconomic conditions on the economic growth and development of the Western Balkans, with particular emphasis on the role of education as a fundamental catalyst for innovation, economic transformation, and social cohesion. The importance of collaboration among Western Balkan countries is widely acknowledged, and several policy measures have been proposed to create a more supportive environment for regional development. These include strengthening legal and institutional frameworks, establishing mechanisms for financial incentives, enhancing capacity building, developing comprehensive information systems and regional infrastructure, and promoting knowledge transfer through education systems aligned with regional economic priorities. This paper employs a desk research methodology—encompassing synthesis, analysis, deduction, and induction of secondary data—to analyze key macroeconomic indicators at both the regional level and within individual Western Balkan countries, highlighting common trends as well as notable national differences. Despite some divergence in economic trajectories, the region exhibits common structural characteristics, including open, service-based, and developing economies. In conclusion, the article outlines the key challenges and strategic priorities that must be addressed to enhance the region’s competitiveness and ensure sustainable economic progress, highlighting the role of education as an important catalyst for innovation, economic advancement, and social cohesion.