Sustainble development and improvement of the economic system

One of the indicators of the country's economic growth is the gross domestic product, and one of the factors of economic growth is capital. The main criteria and source of economic development is economic growth. Economic growth is a sustainable increasing tendency of the main indicators of national theory production. Furthermore, absolute value and growth per capita are also considered. The objective and subjective aspects and components of the processes of formation and development of economic growth are investigated. The essence and characteristics of objective and subjective factors of the country's economic growth are given. In economics and statistics, various indicators are used to measure the volume of national production. The most important of these is the gross domestic product. Gross domestic product is expressed by the monetary unit of the final products and services produced in the economy. The fact that gross domestic product comprises final products and services produced within a particular country should be considered. Moreover, the most important is the diversification of sources of gross domestic product growth and ensuring the multiplier influence of the interconnected sectors of the country's economy to increase gross domestic product growth. In this work, the dynamic model that demonstrates the dependence of gross domestic product on investments in the case of the Azerbaijan economy is created. Based on this model, it is possible to more optimally plan and predict promising sources and strategic directions for developing the national economy and ensuring its intensive growth. This approach provides an opportunity for the country's strategic planning of the gross domestic product. In this work, to achieve the desired level of gross domestic product, the volume of investment is used as the independent variable in the dynamic model. However, as indicated above, many other factors affect the amount of investment in gross domestic product. Nevertheless, the dynamic model of the optimal gross domestic product trajectory yielded good results. In modern conditions, optimal and effective modelling is essential to ensure the dynamic development of the country's economies and gross domestic product based on global changes and factors. Similar approaches create opportunities to strengthen the immunity of the national economy to counter global impacts and risks. Further research will consider the other most influential factors on gross domestic product. In this case, a dynamic model of the optimal trajectory of the gross domestic product will give even more adequate results.

Beşeri sermaye faktörlerinden sağlık, ekonomik büyümeye etki eden bir unsur olarak ifade edilmektedir. Sağlık düzeyindeki gelişimin; nüfus, eğitim, işgücü verimliliği, yaşam süresi ve yaşam kalitesinin artmasıyla, gelecekte ortaya çıkabilecek hastalıkları önleyerek ekonomik istikrar ve büyüme üzerinde belirleyici bir etkisi ortaya çıkabilir. Yapılan araştırmalarda çoğunlukla sağlık ile ekonomik büyüme arasında çift yönlü ilişki tespit edilmesine rağmen, bazı çalışmalar bir ilişki olmadığı sonucuna da ulaşmaktadır. Çelişkili bulguların nedeni, çalışmalarda ülkeler arasındaki sağlık politikası farklarının göz ardı edilmesi olabilir. Literatürdeki diğer çalışmalardan farklı olarak bu çalışma, aynı sağlık politikası uygulanan bir ülkenin bütün illeri örneğinde sağlığın ekonomik büyüme üzerindeki etkisini panel veri analiz yöntemi ile araştırmaktadır. Bu amaçla Türkiye’nin bütün illerini kapsayan 2007-2017 dönemindeki gayri safi yurtiçi hâsıla, bebek ölüm hızı, hastane yatak sayısı, kamu yatırımları, ithalat, ihracat, lise mezunu ve lisans mezunu kişi sayısı değişkenlerini içeren model, sistem GMM analiziyle tahmin edilmiştir. Ulaşılan bulgulara göre, eğitim değişkenleri sağlık değişkenlerine göre ekonomik büyümeye daha fazla katkı sunmakla birlikte, sağlığın eğitim ve ekonomik büyüme için bir ön koşul olduğu gerçeği göz ardı edilmemelidir.

Analysis of the Dependence on Economic Growth in China to Energy Consumption

Summary Cities, contributing more than 75% of global carbon emissions, are at the heart of climate change mitigation. Given cities' heterogeneity, they need specific low-carbon roadmaps instead of one-size-fits-all approaches. Here, we present the most detailed and up-to-date accounts of CO2 emissions for 294 cities in China and examine the extent to which their economic growth was decoupled from emissions. Results show that from 2005 to 2015, only 11% of cities exhibited strong decoupling, whereas 65.6% showed weak decoupling, and 23.4% showed no decoupling. We attribute the economic-emission decoupling in cities to several socioeconomic factors (i.e., structure and size of the economy, emission intensity, and population size) and find that the decline in emission intensity via improvement in production and carbon efficiency (e.g., decarbonizing the energy mix via building a renewable energy system) is the most important one. The experience and status quo of carbon emissions and emission-GDP (gross domestic product) decoupling in Chinese cities may have implications for other developing economies to design low-carbon development pathways.

It is widely recognized that trade and foreign direct investment (FDI) inflows are important factors in long-term economic growth. Trade openness enhances skills through the adoption of imported superior production technology and innovative processes, and thus exerts a positive and significant impact on economic growth. Similarly, FDI augments and stimulates domestic investment, enhances technology transfer, increases export capacity and foreign exchange earnings, and thus promotes capital formation and long-run growth. This paper examined the empirical relationship between economic growth on one hand and trade and FDI flows on the other hand for Saudi Arabia during the last four decades (1970-2010). The autoregressive distributed lag (ARDL) methods to cointegration and the associated error correction model (ECM) are adopted. The results suggest that human capital, government expenditure, trade openness and infrastructure are important determinants of long run growth in Saudi Arabia. In contrast, FDI together with domestic private investment has impacted negatively on real gross domestic product (GDP). This is attributed partly to the dominant role of the public sector in the economy emanating from the huge oil resources, thereby leaving little room for the domestic and foreign private investment to play their role in the economy, and partly to the concentration of FDI in unproductive sectors. Nonetheless, the interaction of FDI either with government expenditure or with domestic investment could impact positively on growth. Efforts should therefore focus on enhancing the integration between these factors on long-term growth. Privatization, economic liberalization, and diversification measures are expected to provide real opportunities for domestic and foreign investment to play an important role in economic activity and growth. Key words: Saudi Arabia, FDI, unit roots, ARDL cointegration, ECM, trade.

رشد و توسعه اقتصادی همواره از اهداف اصلی سیاست‌گذاران اقتصادی بوده است و آنها همواره به دنبال یافتن عواملی بوده‌اند که موجب تسریع در رشد اقتصادی شود. در این زمینه نظریهها و تئوری‌های مختلفی وجود دارد که هرکدام به یکسری از عوامل موثر بر رشد اقتصادی می‌پردازند. به‌طوریکه درنظریه‌های اولیه رشد، به دو عامل سرمایه فیزیکی و نیروی کار به عنوان عوامل بهبود دهنده رشد اقتصادی تاکید داشتند. اما این نظریات در توضیح تفاوت‌های سطح درآمد سرانه و میزان رشد اقتصادی کشورها توفیق چندانی نداشته لذا موجب شد به برخی عوامل سرمایه ای موثر و ظاهرا غیرمحسوس در مقوله رشد، توجه شود. ظهور اقتصاد دانش محور در ادبیات اقتصادی، حاصل این منظر جدید به مقوله رشد و توسعه است. به‌طوریکه در اقتصاد معاصر از دانش به‌عنوان عامل اصلی تولید یاد می‌شود. برای اندازه‌گیری میزان دانش به‌کار رفته در تولیدات یک کشور شاخص‌های مختلفی وجود دارد که یکی از این شاخص‌ها، شاخص پیچیدگی اقتصادی می‌باشد. این مقاله در نظر دارد تاثیر این متغیر را بر رشد اقتصادی مورد بررسی قرار دهد. برای این منظور با به کارگیری اقتصاد سنجی داده های پانلی 42 کشور منتخب (42 کشور برتر در تولید علم )، در یک دوره 17 ساله (2012-1996)، اقدام به برآورد و آزمون مدل رشد ارایه شده در تحقیق نموده است. نتایج تحقیق نشان دهنده نامناسب بودن استفاده از داده های پانلی در برآورد مدل این تحقیق، و البته تاثیر معنی دار و مثبت این متغیر بر رشد اقتصادی در برآورد مدل براساس داده های مقطعی کشورهای مورد مطالعه می‌باشد.

The work provides assessments of trends and factors of economic growth in modern Russia. The research was carried out on the basis of constructing econometric models using Rosstat data. Research results show that the main trends in economic development consisted of a decrease in the rate of economic growth and the rate of growth in labor productivity. The main factor of economic growth was the growth of labor productivity. There were no significant trends in changes in the growth rate of employment and the growth rate of accumulated fixed capital. The growth in labor productivity was achieved, to a large extent, due to an increase in the capital intensity of production. The basis for economic development was largely an ineffective archaic mechanism, the mechanism for the formation of an industrial economy. Employment growth had a negative impact on economic growth rates. The results obtained indicate that the most important factors of competitiveness and economic growth - human capital and new technologies - are insufficiently and ineffectively used. They did not ensure an increase in labor productivity due to investing in outdated technologies, attracting workers who do not have high qualifications, which is due to a decline in the quality of education and a reduction in the scale of scientific research and development. Education has largely lost its function of forming human capital. The research and development system does not sufficiently serve as a source of new technologies. The identified problems are obviously due to shortcomings in economic policy, shortcomings in financial management and investment processes, insufficient funding and ineffective management of the education system, research and development.

This paper describes the relation between Greek imports and exports of paper and paperboard and a number of major macroeconomic variables, such as population, gross domestic product, the industrial production index and domestic round wood production. The Pearson correlation coefficient and multiple regression analysis were employed in the analysis of the data. The study shows that there is no significant relation between paper and paperboard imports as a dependent variable and population, gross domestic product and domestic round wood production as independent variables. Despite this, an acceptable model is constructed using only gross domestic product as an independent variable. The study also shows that there is a significant relation between the export of paper and paperboard and gross domestic product, the industrial production index and round wood production. The results indicate that gross domestic product as an independent variable has the greatest effect on wood imports and exports in Greece during the period studied. Using these models is confirmed that the use of socioeconomic variables and the construction of future scenarios for the Greek forest sector is very efficient considering the special characteristics of the Greek economy. These models could help the establishment of economic growth, the reduction of the financial and ecological deficit, the implementation of economic reforms and to increase new investments.

The article identifies the need for structural change as a priority area of regional economic policy, which is determined not only by the level of accumulated research potential in the region, but also the depth of the economic challenges it faces. It is determined that the strongest incentives for socio-economic transformations arise in economically disadvantaged regions, especially in periods of global economic instability. The transition to building a new economic system in the regions is the most effective for overcoming their subsidies and weak dynamics of regional gross domestic product. The peculiarities of the formation of regional gross value added in Ukraine and the output of regional products and services in the basic prices of economic activities in the total area of the region were studied. The analysis showed that the existence of strong market incentives for innovation is an important factor in technological and economic progress. Such market incentives arise primarily as a result of increasing resource constraints (associated not only with a lack of resources, but also with rising prices for them), with the emergence of new aggressive competitors in the traditional for the country and its regions. Economic growth is really sustainable only when it is accompanied by a process of qualitative improvement in the structure of the economy. In this sense, only the economic growth that takes place simultaneously with the process of economic development is qualitative, sustainable and reflects the positive dynamics of the evolutionary development of the national economic system. It is proved that the manifestation of market incentives not only «pushes» national enterprises beyond the already mastered production and technological activities, makes the transition to innovation an important condition for their survival in the market, but also shows the direction of concentration and even joint efforts of all national actors to overcome them. It is proved that when forming a new, more progressive approach to regional development instead of the factor «investment» the main, dominant factor of economic growth is the factor «technological innovation» and this radically changes the whole paradigm of economic development of the region and the country as a whole.

Fostering Sustainable Growth in Ukraine

Introduction. Economic growth and economic development of any socio-economic space is the key to a decent standard of living in the state. These categories should be considered as irreversible and targeted qualitative changes in a complex system that develops itself through the prism of the formation of institutional preconditions and risks. Theoretical and methodological problems related to the new model of economic growth and development in Ukraine need scientific attention. Goal. Identification of tendencies and factors of unstable economic growth and establishment of causal relations of satisfactory development of the national economy of Ukraine and delineation of theoretical and applied bases concerning change of economic model and its management. Method. Theoretical and methodological tools based on the traditional approach and methods of logical generalization, analysis, comparison and synthesis to assess the volume, rate and structure of economic growth based on a number of macroeconomic indicators. Results. The article examines the dynamics of national economic growth in Ukraine for the period 2000-2019 on the basis of empirical indicators. The key factors that, together with the structural, demographic, currency and banking crises and galloping inflation, caused sharp economic fluctuations in economic growth rates, have been identified and classified. The tendencies of the production structure of the gross domestic product (GDP) of Ukraine by the main types of economic activity and its influence on economic growth are considered. The comparison of GDP per capita in Ukraine with other European countries was made, and significant differences in the level of this indicator were revealed. The factors of inflation and devaluation processes, as well as the policy of public debt on the dynamics of economic growth are analyzed. A classification has been developed and groups of institutional barriers (concentration-ownership, managerial-institutional-leadership, regressive-anti-innovation, military-political and foreign economic) have been identified, which prevent economic growth in the national economy of Ukraine. The main tasks that need to be solved in parallel in the national economy of Ukraine in the medium term to ensure domestic growth and development are outlined.

Natural resources are a major contributor to the formation of the national and domestic gross product, serving as a primary source of employment and being one of the dominant sectors in generating community income. Natural resources play a crucial role as supporting factors for economic growth in Tanjung Jabung Timur Regency. Despite consistently making significant contributions to the Regional Gross Domestic Product (PDRB) from 2013 to 2022, the economic growth rate of the Natural Resources Sector in Tanjung Jabung Timur tends to be slow. This research aims to investigate the influence of natural resources on economic growth in Tanjung Jabung Timur during the period 2013-2022. The study uses purposive sampling for its sample selection. The data utilized comprises time series data from 2013 to 2022. The results of this research indicate that variable X does not have a significant impact on variable Y at the 0.05 significance level. Therefore, the null hypothesis stating that there is no significant influence from variable X1 (Sector A) and X2 (Sector B) on variable Y (Growth Rate) is accepted. The statistical test results show that the p-value for variable X is greater than the predetermined significance level (p > 0.05). This indicates the insignificance of the relationship between variable X and variable Y. In other words, the variation in variable X cannot significantly explain the variation in variable Y in the context of this study.

The aim of this paper is to examine the impact of national competitiveness, measured by GCI 4.0, on the economic growth of European economies within the CEFTA free trade zone, the European Single Market, and the European Monetary Union. The impact of GCI 4.0 on economic growth is analyzed collectively at the level of European economies (34 countries observed), and then analytically per levels of economic integration in CEFTA, EU, and EMU. Panel regression models are used in the paper to assess this impact, namely the Pooled OLS model, fixed effects model (FEM), and random effects model (REM), which increase the number of observations and thus alleviate the research limitation related to a short observation period. The obtained values of the F-test and Breusch-Pagan LM test show that for all 4 observed groups of countries there are significant fixed and random effects. Based on the results of the Sargan-Hansen test, the FEM model was used to estimate the parameters and predict the values of the dependent variable lnRBDP_pc based on changes in the values of the independent variable lnGCI4_0 for the observed European economies collectively as well as at the European Union and the European Monetary Union integration levels. The REM model was used for the CEFTA integration level. Research results show that there exists a positive and statistically significant impact of national competitiveness on real economic growth at the level of the observed European economies collectively as well as analytically within the CEFTA free trade zone, the European Single Market, and the European Monetary Union in the period 2018-2019. The results further show that an increase in the value of the global national competitiveness index 4.0 by 1% leads to increase in real GDP pc by 1.659% within the 34 European economies observed (CEFTA, EU, and EMU). An increase in the value of GCI 4.0 by 1% within CEFTA leads to increase in the value of real GDP pc by 2.183%; at the level of the European Union it leads to increase in the value of real GDP pc by 1.772%, while at the level of the European Monetary Union the growth of GCI 4.0 by 1% leads to increase in the value of real GDP pc by 1.256%. The results show that the strength of the impact decreases with a higher level of economic integration of countries, higher average value of GCI 4.0, and higher average real gross domestic product per capita, because within the observed economies the lowest value of GCI 4.0 and real GDP per capita is within the CEFTA free trade zone, followed by the European Union, while the highest values of GCI 4.0 and real GDP pc are at the level of the European Monetary Union. The cause of this can be found in the fact that when all analytical pillars of national competitiveness that will lead to an increase in economic growth are significantly improved, in order to ensure further growth it is necessary to identify and improve new factors of economic growth.

The article considers the main trends and factors of US economic growth. Economic and technological reasons for slowdown of US Gross Domestic Product (GDP), GDP per capita and productivity are discussed. The author focuses on the estimates of key macroeconomic indicators published by the Bureau of Economic Analysis, Bureau of Labor Statistics and other government agencies for analyzing historical growth and identifying factors contributions. Also, the article discusses points of view on the potential factors for continued economic growth in the future, including the statistics and calculations of the American economists. It is shown that the United States is nowadays facing fundamental problems of productivity, not just a cyclical downturn. A number of disturbing tendencies in the US economy, such as negative trends in both labor productivity and multifactor productivity (MFP) emerged well before the economic and financial crises of 2008 (Great Recession). As the author note, the US has entered into a period of relatively low GDP growth rate in comparison with 1990 – early 2000s. A reduction also occurred in the growth rate of GDP per capita, labor productivity and other indicators. Special attention is addressed to the roles of the Information and Communication Technologies (ICT). Since mid-1990 the large-scale investments into the ICT provided a great portion of US economic growth and productivity. However, in the last 10 years the contribution of ICT to productivity growth noticeably reduced from its maximum value in 1995–2004. Nonetheless, it remains sizable and still contributes about one-fifth of the GDP growth and more than 40% of the growth in labor productivity. The author’s general conclusion is that, despite the existing problems in economic growth, United States remains the world’s most productive economy and the largest market for ICT goods and services. This is likely to continue encouraging the nation’s economic growth and productivity, although at a slower pace.

MSMEs, infrastructure and cooperatives were the determining factors for economic growth. Good and stable economic growth would have an impact on people's welfare. Economic growth was a process not an economic picture at a dynamic time of an economy. This study aimedd to describe the influence of MSMEs on economic growth, describe the influence of infrastructure on economic growth, describe the effect of cooperatives on economic growth and described MSMEs, Infrastructure and cooperatives on the economic growth of DKI Jakarta. The method used is a quantitative method. The data was taken from the national statistical center for the period 2015, 2016, 2017, 2018 and 2019. The data was processed using SPSS 21. Prerequisite tests include normality test, homoenity test and heteroscedasticity test. Hypothesis testing includes t test, F test and coefficient of determination. The results showed that MSMEs had an effect on economic growth, Infrastructure had an effect on economic growth, cooperatives had an effect on economic growth and MSMEs, infrastructure, cooperatives had a simultaneous effect on economic growth in DKI.The implication of the result was Expansion of job opportunities and employment. Formation of Gross Domestic Product (GDP). Provision of safety nets, especially for low-income people to carry out productive economic activities.