The dollar squeeze and economic growth

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.

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.

Nepal, like most developing nations, must overcome several economic obstacles in order to pursue sustainable economic growth and development through taxation. The issue over whether taxes are an effective instrument for fostering economic development and growth in the literature is still open since different studies have shown conflicting results on the impact of taxes on economic growth. The goal of the study is to determine the relationship between Nepal's economic growth and the tax revenue sources of the government, while also measuring the short and long run effects of changes in these revenue sources on economic growth. To forecast the change in economic growth due to changes in tax revenue sources, Autoregressive Distributed Lag (ARDL) is performed on time series secondary data for the period from 1974 to 2021. According to the findings, Non-Tax Revenue (NTR) have positive significant relationship, while Tax Revenue (TR) has a positive but insignificant relationship with Nepal's economic growth over the long run. Variables were found to be stationary at I (0) and I (1) using the Augmented Dickey-Fuller Test. According to the results of the bound test, Non-tax revenue is the cointegrated factor that affect Nepal's economic growth. The factor that has no impact on Nepal's economic growth is tax revenue. Non- tax revenue significantly affects Nepal's economic growth over the long run. As non-tax revenue has a positive impact on Nepal's economic growth and tax revenue have a negative impact on it, it is advised that policymakers concentrate on increasing the revenue collection from non-tax revenue sources in order to prosper and accelerate economic growth. In terms of economic growth, the study concludes that Nepal has experienced an increase over time. The study does find that the economic growth has been moderate. Key words: Tax Revenue, Non-Tax Revenue, ARDL, Gross Domestic Product, Nepal

This paper aims to examine the effects of public debt on economic growth by using a regression method of a fixed effect model with the data of 58 developed countries (high-income countries) and developing countries (low and medium income countries). The analysis shows that public debt (both in terms of scale and rate of increase), inflation, government spending and unemployment are negatively associated with economic growth. A reasonable expenditure plan (in this case, consumption expenditure) can control the impact of public debt on economic growth. More particularly, public debt has a positive impact on economic growth if consumption expenditure is larger than 14-16% of the GDP. Other factors such as TFP (Total-Factor Productivity), trade and public investment can stimulate growth in the observed sample. Interestingly, for high-income countries, economic growth rate in Assembly-elected President countries is higher than that in the Presidential countries.
 Keywords
 Public debt, consumption expenditure, economic growth, developing countries, fixed effect model
 References
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Objective: The main objective of this study is to assess the impact of Bank Indonesia's MSME Development program on economic growth, with a specific focus on the role of green economic policies as an intervening variable. This research seeks to identify key factors that contribute to the sustainability and growth of MSMEs in Indonesia. Theoretical Framework: This study draws upon theories of sustainable economic development, focusing on the role of green economics in business sustainability. The framework integrates concepts from corporate sustainability, economic growth, and environmental policy, exploring how MSMEs can leverage green practices to boost economic performance. Method: A mixed-method approach was employed, combining quantitative analysis of survey data and statistical tests with qualitative methods such as interviews and case studies. The quantitative analysis examines the direct and indirect effects of the MSME development program, while the qualitative analysis provides deeper insights into the processes and challenges faced by MSMEs in adopting green economic policies. Results and Discussion: The findings indicate that MSMEs that implement Bank Indonesia's MSME development program experience significant positive effects on economic growth. These effects are further enhanced when green economic policies are incorporated into MSME practices. Specifically, the research identifies several key factors contributing to growth 1.Corporate Structuring: Positive impact on economic growth through the establishment of stronger business foundations, 2.Capacity Building: Expansion of business capabilities leads to improved performance and sustainability,3. Market Expansion: Broader market access fosters economic resilience and growth, 4.Outboarding: The adoption of outboarding strategies leads to improved international competitiveness, 5.Intervening Role of Green Economic Policies: Green policies significantly enhance the effects of MSME development initiatives, contributing to greater economic stability and growth. Research Implications:. This research highlights the importance of integrating green economic policies in MSME development programs, providing a roadmap for policymakers to design sustainable growth strategies. By focusing on sustainability, MSMEs can not only contribute to economic growth but also support broader environmental and social goals.. Originality/Value: This study is one of the first to explore the intersection of MSME development, economic growth, and green economic policies in the context of Indonesia. It contributes valuable insights into how sustainable practices can be integrated into MSME strategies to foster long-term economic resilience..

Objective: The main objective of this study is to assess the impact of Bank Indonesia's MSME Development program on economic growth, with a specific focus on the role of green economic policies as an intervening variable. This research seeks to identify key factors that contribute to the sustainability and growth of MSMEs in Indonesia. Theoretical Framework: This study draws upon theories of sustainable economic development, focusing on the role of green economics in business sustainability. The framework integrates concepts from corporate sustainability, economic growth, and environmental policy, exploring how MSMEs can leverage green practices to boost economic performance. Method: A mixed-method approach was employed, combining quantitative analysis of survey data and statistical tests with qualitative methods such as interviews and case studies. The quantitative analysis examines the direct and indirect effects of the MSME development program, while the qualitative analysis provides deeper insights into the processes and challenges faced by MSMEs in adopting green economic policies. Results and Discussion: The findings indicate that MSMEs that implement Bank Indonesia's MSME development program experience significant positive effects on economic growth. These effects are further enhanced when green economic policies are incorporated into MSME practices. Specifically, the research identifies several key factors contributing to growth 1.Corporate Structuring: Positive impact on economic growth through the establishment of stronger business foundations, 2.Capacity Building: Expansion of business capabilities leads to improved performance and sustainability,3. Market Expansion: Broader market access fosters economic resilience and growth, 4.Outboarding: The adoption of outboarding strategies leads to improved international competitiveness, 5.Intervening Role of Green Economic Policies: Green policies significantly enhance the effects of MSME development initiatives, contributing to greater economic stability and growth. Research Implications:. This research highlights the importance of integrating green economic policies in MSME development programs, providing a roadmap for policymakers to design sustainable growth strategies. By focusing on sustainability, MSMEs can not only contribute to economic growth but also support broader environmental and social goals.. Originality/Value: This study is one of the first to explore the intersection of MSME development, economic growth, and green economic policies in the context of Indonesia. It contributes valuable insights into how sustainable practices can be integrated into MSME strategies to foster long-term economic resilience..

Environmental degradation is a primary indicator in reducing sustainability and causing many of the challenges faced by humankind, such as climate change, water scarcity, inequality, and hunger. One way to resolve the sustainable issue (environmental degradation) is to promote sustainable development through a commitment to social progress, environmental balance, and economic growth. In conjunction with the present issue, this study aims to analyse the nexus of human development index, economic and population growth on environmental degradation in South Aceh District, Aceh Province, Indonesia. This quantitative study uses secondary data that involved three main variables: environmental degradation, economic growth, and population growth. This study data were collected from the Central Bureau of Statistics, Aceh, Indonesia and related Regional Government Agency for 20 years started 1997 to 2017. This study found that the human development index and population growth positively and significantly affect environmental degradation. Also, economic growth has no significant impact on environmental degradation. In conclusion, this study identifies that when the human development index low and population growth high, it would increase environmental degradation. Surprisingly, whereas economic growth does not significantly contribute to environmental degradation, this study can provide an overview of the nexus of human development index, economic and population growth on environmental degradation and its impact on society.

The relationship between financial sector development and economic growth is a crucial issue for both developing and developed nations. To keep up with the changing world economy, there is need for developing countries like Kenya to develop their financial sectors. Kenya’s financial sector development has had a major role in its economic growth and this study provides a selected review of the literature and the relationship between Kenya’s financial sector and its economic growth. Numerous studies have been done on the effect of the financial sector on economic growth and the general conclusion is that the financial sector plays a central role in economic development and growth of the country. However, there is a limitation of empirical and theoretical work supporting the concept in developing countries. Most of the studies done focus on the direction of causality between finance development and economic growth and their relationship. For this reason, the study set out to analyze the influence of financial sector development on Kenya’s economic growth. The Neo-classical theory of growth was used to inform the study variables; banking sector, export market and economic growth. The study adopted an ex-post facto research design with Ordinary Least Square (OLS) method. The data used was secondary in nature obtained from the Kenya National Bureau of Statistics from the period 2010-2019. The findings revealed that there was a positive influence of financial sector development on economic growth. This implies that financial sector development promotes economic growth in Kenya. In policy terms, the findings, imply that Kenya can accelerate economic growth by improving the financial sector since financial development can be an engine of growth in this country. The study recommended that other major components of the financial sector development apart from the two studied; banking sector and export market, in this paper should be studied and put up in place well -structured policies that will support them and further develop the financial sector with the aspirations under the Kenya Vision 2030. Keywords : Financial sector development, Economic growth DOI: 10.7176/RJFA/12-2-01 Publication date: January 31 st 2021

This dissertation is composed of three essays and analyzes the effects of both health outcomes and international trade on economic development and growth. In the first chapter, I develop a theoretical model using a Nelson-Phelps framework in order to establish a causal relationship between health outcomes and economic growth. I also econometrically test this approach to quantify the magnitude of the effects observed. Using the international epidemiological transition as a baseline and instrumental variable regression, I find that both life expectancy growth rates and initial levels of life expectancy are the main drivers of economic growth, and improvements in both indicators lead to significant, positive changes in the income per-capita growth rate. In the second chapter, I design an overlapping generations model that showcases how individuals determine their optimal fertility, education, labor supply, and life-cycle consumption decisions under uncertain survival probabilities. Under partial equilibrium, exogenous shocks in mortality lead to explicit changes in economic growth and development through the above mechanisms, but under general equilibrium, predictions are ambiguous due to offsetting substitution and income effects. I complement the theory with an empirical analysis, constructing age-specific birth rates, age-specific death rates, and life expectancies from the Demographic and Health Surveys in 36 Sub-Saharan African countries. Using system-GMM estimation, the results show that improvements in health will have a positive and statistically significant impact on economic growth and development. In the third chapter, I develop an analysis similar to Hausmann, Hwang, and Rodrik (2007), whose main argument is that what countries export has significant predicting power on its economic growth and development. Giving greater transparency to both the data collection and the empirical methodology, I replicate their research and instead use imports as a robustness check. The results confirm previous studies and shows that exports, not imports, matter for economic growth. Thus, we conclude that the type and quality of goods in which a country specializes and exports is directly related to its subsequent economic performance.

This study explored the relationship between stock market development and Nigerian economic growth. This was done to look at Nigeria's stock market and economic growth from 1984 to 2020. The analysis relied on secondary data. The Central Bank of Nigeria statistical bulletin for 2021 presented data on stock turnover ratio, stock market capitalization ratio, total value of shares exchanged ratio, all share index, and GDP. Granger causality, Augmented Dickey Fuller Unit root test, Johansen cointegration test, and error correction model were used to analyze the data. Granger causality was shown. There is no reverse causality between stock market development metrics such as stock market capitalization ratio, turnover ratio, or total value of shares exchanged ratio and economic growth. All share index, stock market capitalization ratio, turnover ratio, and economic growth were integrated of order 1, while total value of shares traded ratio was integrated of order zero, according to unit root test results. The Johansen cointegration test showed that the All-Share Index, Stock Market Capitalization Ratio, Turnover Ratio, and Economic Growth all have four cointegrating relationships. Changes in the all-share index have a positive and significant impact on changes in economic growth, whereas changes in the stock market capitalization ratio and its lag have a negative but insignificant impact on changes in economic growth (p>0.05). Changes in the turnover ratio have a positive but insignificant impact on changes in economic growth (p>0.05), while its lag has a negative but insignificant impact on changes in economic growth (p>0.05). Changes in lagged GDP have a positive and important effect on changes in economic present-period growth (p0.01), and economic growth and the independent variables in our model have a long-run relationship as indicated by the negative and statistically significant error correction term in the model (p<0.01). Based on the results, the study recommends that the Federal Government intervene through the Asset Management Corporation of Nigeria (AMCON)/Ministry of Finance Incorporated, that more indigenous quotable companies be encouraged to pursue listing by offering incentives such as tax holidays, tax rebates, and other incentives, and that stock broking firms be encouraged to join forces, either through mergers or outright acquisition amongst other recommendations.

The main objective of this study was to assess the impact of economic indicators on the economic growth of Nigeria.The specific objectives were to: Ascertain the impact of the balance of trade on Nigeria's economic growth; Verify the impact of taxation on Nigeria's economic growth; Evaluate the effect of consumer prices on Nigeria's economic growth; and investigate the effect of the unemployment rate on Nigeria's economic growth.The study adopted the ex post facto research method and a sample of 10 years was drawn (2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020)(2021)(2022).The data used for the analysis were collected through secondary sources.The method of analysis is the linear regression model whereby the dependent variable was economic growth (proxy by real GDP) while the independent variables were proxy by the balance of trade (BOT), inflation rate (INFL), consumer price index (CPI), and unemployment rate (UR).Findings from the study revealed that: (i) p-value = 0.784 > 0.05, therefore we did not reject hypothesis H1 but concluded that balance of trade has no significant impact on Nigeria's economic growth; ii) p-value = 0.022 < 0.05, hence we rejected H2 and concluded that inflation rate has significant impact on economic growth in Nigeria; iii) p-value 0.000 < 0.05, we did not accept H3 but we concluded that CPI has a significant impact on economic growth in Nigeria; and iv) p-value = < 0.002 we did not accept H4 but we concluded that unemployment rate has a significant impact on economic growth in Nigeria.The study recommended that: i) Nigeria should intensify effort to improve on her exports and make it bigger that its imports; ii) The government should address the challenge of the inflation rate in Nigeria by using appropriate fiscal and monetary policies that will address excess liquidity in the system; iii) The high costs or prices of goods should be checked; iv) Government and individual firms should encourage job creation for the teeming youths of this country.The contribution to knowledge is that the concepts of economic indicators and economic growth have been empirically adjudged as useful measures of performance of the Nigerian economy.The study concluded that there is a tendency that some levels of risk in the economy could be reduced when the behaviour of these variables are estimated correctly.

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.

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

This study investigates the relationships between foreign trade, employment and economic growth in Sudan over the period 1970-2017, with inflation and budget deficit as policy variables. Two autoregressive distributed lags (ARDL) models were estimated with trade and economic growth as determinants of youth employment and total employment. Two other models were estimated to investigate how trade and each type of employment affect economic growth separately. The empirical results from the four models revealed existence of long run relationships between foreign trade, employment and economic growth. In the short run, trade, economic and population growth rates have stronger effects on youth employment than on total employment. In the long run, youth employment is found to be positively affected by economic growth and investment but negatively affected by population growth and the budget deficit, while total employment is only affected by population growth rate. Economic growth is found to be much explained by youth employment than by total employment and foreign trade. The study concludes that the internal factors in terms of inflation, budget deficit, investment and salaried workers are more important to employment and economic growth than the performance of foreign trade sector of Sudan. The policy implication is that youth employment should be given priority in labor and trade openness policy than targeting employment as a whole. For trade openness to play positive roles on employment and economic growth in Sudan, corrective policies for volumes and types of exports and imports are urgently needed.

Concerns about the incessant rise in emissions and their attendant effects on climate change, which is ravaging the globe, are on the ascendency. The literature has almost concluded that economic activities and growth contribute significantly to environmental degradation. Despite the plethora of studies on the effect of economic growth on environmental degradation, empirical studies examining the reverse – i.e., how environmental degradation affects economic growth – are limited. However, the associated literature postulates that attaining economic growth is accompanied by increased environmental degradation. To guide the development of non-conflicting environmental and structural policies, this study examines whether the rise in environmental degradation is associated with economic growth. It also examines the potential channels through which environmental degradation could affect economic growth. Using a global panel comprising 140 countries from 1980 to 2021 and the two-step dynamic system-generalized method of moment technique to control endogeneity, the findings generally indicate a retarding effect of environmental degradation on economic growth. Further analysis, however, reveals that emissions exhibit an inverted U-shaped relationship with economic growth. However, ecological footprint indicators of environmental degradation have a U-shaped relationship with economic growth. Pathway analysis highlighted that health, foreign direct investment, and technological innovation are the potential channels through which environmental degradation could retard economic growth. The policy implications are discussed.