Quantifying the Impact of Innovation-Driven Supply Factors on Economic Growth and Innovation-Development Security

The study examines the resources of economic growth in the Czech Republic in the course of years from 1992 until 2004. Using the growth accounting method, it analyses the contribution of individual factors to economic growth. Special attention is given to total factor productivity, which, apart from labour, also includes a fixed capital stock at constant prices. Compared to the previous period, the acceleration of the growth of total factor productivity decisively contributed to the speeding up of economic growth in the years 1999-2004. Furthermore, the study examines growth resources in six national economy sectors and analyses the contribution of individual sectors to the growth of macroeconomic total factor productivity. The analysis has shown that namely industry, transport, communications, and other services were involved in the speeding up of the growth of macroeconomic total factor productivity. A comparison of the dynamics of total factor productivity of the CR and EU-15 at the macroeconomic level has shown that while in 1992-1998, the growth of total factor productivity was slower in the CR, after 1998, it was faster (in 1999-2004, the average annual growth rate in the CR was 2.2% and 0.6% in EU-15). In the years 1996-2004, for which revised data are available for the CR, the average annual growth rate of total factor productivity in the CR was 1.5%, compared to 0.7% in EU-15. The analysis indicated that since 1999, total factor productivity in the CR has been converging to the EU-15 level, accelerating in 2003 and 2004, thereby achieving 63% of the EU-15 level in 2004.

Purpose This paper aims to analyze the spatiotemporal heterogeneity of regional total factor productivity (TFP) growth and explores how haze pollution and different levels of new-type urbanization affect China’s economic growth. Design/methodology/approach This paper constructs an index for evaluating the TFP growth of China’s 31 provinces by integrating slack-based measures and the Global Malmquist (GM) productivity index. Meanwhile, the panel threshold estimation method is used to examine the complex relationships among haze pollution, new-type urbanization and TFP growth. Findings The results reflect conspicuous spatiotemporal heterogeneity in TFP growth in China. Interestingly, the influence of haze pollution on TFP growth is limited by the “critical mass” of new-type urbanization in China. When new-type urbanization does not cross the first threshold, haze pollution has a negative but non-significant effect on TFP growth. When new-type urbanization crosses the first threshold but not the second, haze pollution has a significant positive impact on TFP growth. When new-type urbanization crosses the second threshold, haze pollution significantly and positively affects TFP growth with the strongest positive effect. Originality/value This study innovates by combining haze pollution and TFP growth and proposing an integrated framework from the perspective of new-type urbanization, providing insight into how different degrees of new-type urbanization impact the mechanism between haze pollution and TFP growth. Using panel data in China and emphasizing green development, a sustainable economy and new-type urbanization, this study contributes to the current studies on haze pollution and economic development based on developed countries.

This paper examines the impact of the technology frontier on the Total Factor Productivity (TFP) growth in African countries. The paper includes the human capital channel (i.e., low and high education) in the TFP growth function. The model also adds net foreign direct investment inflows and financial development as control variables. The long-run estimations indicate that the technology frontier hampers the TFP growth. The technology frontier adversely affects the TFP growth in a low education channel. Surprisingly, high education has a positive and insignificant impact on TFP growth. It is also found that financial development decreases the TFP growth while net foreign direct investment inflows have mixed effects. These findings suggest that educated labour embodied in rich technology frontier should also require the proper training for enhancing the TFP growth in African economies.

The study examines the resources of economic growth in the Czech Republic in the course of years from 1992 until 2004. Using the growth accounting method, it analyses the contribution of individual factors to economic growth. Special attention is given to total factor productivity, which, apart from labour, also includes a fixed capital stock at constant prices. Compared to the previous period, the acceleration of the growth of total factor productivity decisively contributed to the speeding up of economic growth in the years 1999-2004. Furthermore, the study examines growth resources in six national economy sectors and analyses the contribution of individual sectors to the growth of macroeconomic total factor productivity. The analysis has shown that namely industry, transport, communications, and other services were involved in the speeding up of the growth of macroeconomic total factor productivity. A comparison of the dynamics of total factor productivity of the CR and EU-15 at the macroeconomic level has shown that while in 1992-1998, the growth of total factor productivity was slower in the CR, after 1998, it was faster (in 1999-2004, the average annual growth rate in the CR was 2.2% and 0.6% in EU-15). In the years 1996-2004, for which revised data are available for the CR, the average annual growth rate of total factor productivity in the CR was 1.5%, compared to 0.7% in EU-15. The analysis indicated that since 1999, total factor productivity in the CR has been converging to the EU-15 level, accelerating in 2003 and 2004, thereby achieving 63% of the EU-15 level in 2004.

Purpose This research investigated the relationship between market power, economies of scale and total factor productivity (TFP) growth for the Indonesian food and beverage industry. Design/methodology/approach This research used firm-level data of 23 subsectors for the period from 1990 to 2021. The data was sourced from a manufacturing survey conducted by the Indonesian Bureau of Central Statistics (BPS). The Solow Residual-Based Model was applied to explore the relationship between market power, economies of scale and TFP growth. Findings The results show that most of the subsectors were characterized by strong market power having a markup parameter exceeding the value of 1. Furthermore, the results show that the food and beverage industry is characterized by diseconomies of scale. This research found negative relationships between market power and TFP growth as well as TFP growth and economies of scale. Also, a positive relationship was reported between market power and economies of scale in the Indonesian food and beverage industry. Originality/value Our research contributes to the literature by exploring the relationship between TFP growth, economies of scale and market power. The existing literature often focuses only on the assessment of TFP growth and/or market power, while studies that examine their relationship with economies of scale are lacking.

ABSTRACTChina seeks to encourage farmland leasing to stimulate new economic growth and make agriculture more attractive to young laborers. This paper analyzes panel data from Jiangsu province, employing a stochastic frontier cost function to calculate total factor productivity (TFP) growth and its components. Additionally, a two‐stage least squares model is used to assess the impacts of farmland leasing on TFP growth. The findings indicate that TFP growth significantly contributes to output growth, averaging 2%, and exhibits a fluctuating yet upward trend. Notably, the contributions of technological progress and technical efficiency change to TFP growth remain relatively stable at approximately 1.5%–2%, while changes in scale efficiency are the primary drivers. Farmland leasing markedly enhances TFP growth and scale efficiency change, as opposed to technological progress and technical efficiency change. An increase of 1 mu in farmland leasing size results in a 1.565% and 1.569% enhancement in TFP growth rate and scale efficiency change, respectively. The enhancement effects on TFP growth and scale efficiency change are more pronounced for large‐scale farmers, particularly following the TRS reform. This study also draws some policy implications.

This study investigates the sources of economic growth for Latin American economies. With two centuries of data and extended growth accounting methods, the study shows that poor total factor productivity (TFP) growth is the key to understanding Latin America's low economic growth relative to other economies. Using a functional form of TFP growth, based on second‐generation growth models, furthers analyses to show some empirical evidence for growth induced by R&D, knowledge spillovers, educational attainment and the distance to the frontier. However, the magnitude effect is very small and when compared to the OECD countries, the gap between the TFP growth generating factors is very substantial. An intricate policy structure should be implemented for Latin America to foster an environment that is conducive to aid permanent TFP and economic growth.

Based on the analysis of the quantitative assessment of the influence of the factors of innovative activity on the dynamics of economic development and the endogenous determination of its contribution to the economic growth of the country, it is revealed that in foreign researches it is identified with the concept of the influence of scientific and technological progress. However, the impact of innovative factors on economic growth is not considered separately. Attempts of such a definition in Ukrainian researches are limited to well-known approaches: methods of integral assessment, methods of expert assessments, the method of multipliers, econometric models. Most of the approaches considered are focused on defining the innovative impact on economic development, rather than on economic growth. The main tool for assessing the role and innovative contribution to economic growth is the aggregate supply function model, usually based on the Cobb-Douglas production function. The analysis of the approaches used revealed a number of comments on econometric approaches. In contrast to this, an approach is proposed based on the neoclassical production function of Cobb-Douglas with a constant return to scale in the form of J. Tinbergen, with technical progress neutral according to J. Hicks, decreasing marginal productivity of macrofactors with limited interchangeability, which provides a causal functional (and not a statistical) relationship between input and output variables; does not require long time series. It is characterized by dynamic coefficients of elasticity, capital utilization rate and taking into account the innovation factor in each separate period. The innovation factor includes: the gross domestic expenditures on research and development, the expenditures on innovation, general expenditures on education. To define the contribution of formal innovation factor in economic growth applied "method of Solow residual", which by taking the logarithm and obtaining logarithmic derivatives in the production function, provides a formalized information about the contribution of each factor to economic growth and allows to develop the necessary regulatory measures. The method has been tested at the level of the country and old industrial regions of Ukraine: Dnepropetrovsk, Zaporozhye and Kirovograd regions of the Dnieper economic region of Ukraine. The role, importance and influence of the main factors of economic growth along with innovative ones on the part of the aggregate supply are considered and the cost-effectiveness of innovative factors is estimated.

Economic Development, Nutrition Transition and Gender Discrimination in China

This paper examines the effects of the regional economic environment and technology diffusion on China's regional total factor productivity (TFP) growth. We build a model of TFP growth in which Chinese regions achieve growth in TFP by making use of technology spillovers from the world technology frontier. We hypothesize that given the world frontier level of TFP, China's regional TFP growth is positively related to regional openness and negatively related to the current level of regional TFP. Empirical analysis in this paper of 29 province-level regions in China strongly supports our hypothesis. By using a nonlinear least squares regression method, we show that regional openness has a significantly positive effect on regional TFP growth. As a by-product, we also estimate a value of the output elasticity of capital that conforms to its traditionally accepted values. The findings of this paper lend strong support to the claim that the opening up process of China promotes the country's economic growth.

An aggregate demand - aggregate supply framework is used to analyze the effects of Japanese monetary policy, 1973:1-1990:8. It is found that money supply shocks contribute relatively little to output variability over the sample as a whole. Nor do these shocks seem to be particularly marked during business cycle contractions. The effects of monetary policy on prices and output appear to be quite similar to those of a constant money growth rule.

This article studies the effects of remittances on economic growth and the sources of growth:capital accumulation and Total Factor Productivity (TFP) growth. This approach is different from previous studies, in that, it focuses on the transmission mechanism instead of the impact of remittances on economic growth. We find that remittances have conflicting effects on the two sources of growth: capital accumulation and productivity growth. Remittances have a significantly positive impact on capital accumulation while the impact on TFP growth is insignificant. These findings suggest that while remittances enhance investment and contribute to physical capital accumulation, the lack of efficiency enhancing effect or possible adverse impact on TFP growth would make the net effect on economic growth ambiguous.

Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world

The present paper discusses total factor productivity (TFP) in China, including its past success, the current slowdown, and the potential for future growth. It begins by documenting the development of TFP growth over the past three and a half decades, its driving forces and its contribution to the economic growth of the country. It then analyses the reasons for the current slowdown of TFP and economic growth, addresses the institutional imperfections that hinder growth, and explains the government policies and strategies aimed at fostering TFP. Next, it explores the potential for TFP growth from the perspective of institutional reform, investment in research and development and human capital. The paper concludes that although the resources of the past successful TFP have decreased or diminished, further institutional reform, increasing investment in research and development and human capital, and strategies promoting indigenous innovation will become new engines for future TFP growth in China. As the country’s TFP is still at a low level compared with advanced economies, there is large scope for China to maintain relatively high TFP growth, although uncertainty and risk are associated with this process.

In our first progress report, Bloch and Tang (2001), we examined the importance of the ‘Solow residual’, or total factor productivity growth (TFPG), in the process of economic growth, particularly in the context of the East Asian economic growth ‘miracle’. We demonstrated that while TFPG has been less important in explaining growth in East Asia than in the advanced industrial economies, it still has played an important role in the susceptibility of some of these economies to shocks, particularly the crisis of 1997 (see Tang, 2002, for application to a broader set of countries). In our second report, Bloch and Tang (2003), we focused on the role of financial development and its link to capital accumulation and economic growth. We concluded that while financial development is clearly an essential part of the growth process, it has not been demonstrated, particularly in the context of East Asian growth, that such development is a precondition for economic growth. We are left with a view that both TFPG and financial development are important to economic growth, but that neither is necessary. More importantly, we are left without an explanation of the underlying forces behind economic growth and development. Knowledge of the process of economic growth and development has evolved substantially over the past five decades. In particular, there is now a general view that the neoclassical model of growth that emerged in the 1950s, particularly Solow’s (1956 and 1957) path-breaking contributions, offers neither an explanation of the experience of the Third World countries nor practical guidance for sustained economic development. The main problem is that the neoclassical model focuses on the ‘proximate determinants’ of growth that appear in the neoclassical growth equation, particularly capital accumulation and TFPG. We learn little from the model about what drives TFPG and how to improve it. Moreover, the same problems