The Educational Level of Rural Labor, Population Urbanization, and Sustainable Economic Growth in China

The paper investigates the role of infrastructure in promoting economic growth in China using ARDL and GMM techniques for the period 1975 to 2007. In this context, an attempt is made to understand growth accounting equations to investigate the impact of infrastructure development on output. Overall, the results reveal that infrastructure stock, labour force, public and private investment play an important role in economic growth in China. More importantly, the study finds that Infrastructure development in China has significant positive contribution to growth than both private and public investment. Further, there is unidirectional causality from infrastructure development to output growth justifying China's high spending on infrastructure development since the early nineties. The experience from China suggests that it is necessary to design an economic policy that improves the physical infrastructure as well as human capital formation for sustainable economic growth in developing countries.Keywords: China, Infrastructure Development, Investment, Output GrowthJEL classification: H4, H54, L9, O1(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONChina is the fastest growing country in the world for last few decades and accounts for nearly one fifth of the world population. Economic growth in China increased from 7.5% during 1970 to 1999 to over 10% per annum between 1999 to 2008. This has attracted many scholars to examine the major determinates of growth in China. Over the last two decades, academic research has devoted considerable attention to the role of trade and Foreign Direct Investment (FDI) in promoting growth. However, the role of infrastructure and human capital development has been neglected. Therefore, this paper offers an empirical assessment of the impact of infrastructure and human capital development on growth in the case of China.The role of infrastructure in enhancing economic development has been well documented both in the academic literature and in the policy debate (Aschauer, 1989; Munnell, 1990; World Bank, 1994; Calderon and Serven, 2003; Estache, 2006; Sahoo, 2006; Sahoo and Dash, 2010; and 2011). More recently, increasing attention has also been paid to the impact of infrastructure on poverty and inequality (World Bank, 2006). Further, it has been found that social infrastructure such as education, health, and housing are essential to promote better utilization of physical infrastructure and human resources, thereby leading to higher economic growth and improving quality of life (Hall and Jones, 1999).Over the past two decades, one of the defining features of China's growth has been investment led growth supported by domestic savings. China's sustained high economic growth and increased competitiveness has been underpinned by a massive development of physical infrastructure (Chatterjee, 2005; Stephane et al., 2007). The open economic policy made it possible for the inflow of foreign direct investment (FDI) mainly to the manufacturing sector. Cheap labour and better than adequate infrastructure were important pre-requisites that led to a successful the export-led growth strategy. With seemingly unlimited supply of cheap labour from the rural sector, public investment in infrastructure became the keystone in the strategy. A major focus by the government at all levels on infrastructure thus ensued.1Though infrastructure development certainly helped export-led economic growth in China, the Chinese economy started showing signs of overheating in recent years because of basic infrastructure constraints. Clearly, there is an increasing gap between the potential demand and the available supply of infrastructure to sustain high growth. Given the importance of infrastructure development for sustainable economic growth and poverty reduction in China, the present study examines the output elasticity of infrastructure development in China for the period 1970-2008. …

Under the situation of China’s economic development, the sustainability of innovative human capital flows on economic growth is closely related to the state of future economic growth. Based on the analysis of innovative human capital flows, the article measured the stock of human capital flows by combining the expenditure method and also measured the quality index of China’s sustainable economic growth by using the PPM-RAGA model. Based on the data from 30 provinces and cities in China from 2012 to 2022, a spatial econometric model was designed to analyze the impact mechanism of innovative human capital flows on China’s sustainable economic growth and a spatial autocorrelation test was carried out. There was a significant difference in the overall flow of innovative human capital from 2012 to 2022, and the quality index of sustainable economic growth increased from 1.812 to 2.137, with the quality index of sustainable economic growth increases from 1.812 to 2.137, with an increase of 17.94%. There is an obvious global spatial autocorrelation of sustainable economic growth, and every 1% increase in the flow of innovative human capital leads to 0.141% sustainable economic growth in China. The flow of innovative human capital not only promotes the economic growth of the region but also leads to knowledge and technology spillovers that promote the economic growth of neighboring regions.

When China's leaders launched rural reforms in the late 1970s, they acknowledged the nation's need to modify its commitment to egalitarianism.1 Slogans such as Tt is glorious to be rich!' and 'Some areas will lead; others will follow!' signalled this fundamental shift in ideology. Leaders backed up these exhortations with a series of concrete policy actions ? establishing the Special Economic Zones and implementing the East Coast-first policy, introducing financial reforms, and initiating the rural industrialization movement. In China's version of the 'trickle down' theory, certain core areas were to take the lead in the modernization process and provide models for other areas to later emulate. Adopting strategies that had been employed

Analysis of energy consumption structure on CO[formula omitted] emission and economic sustainable growth

This study investigates the relationship between sustainable economic growth and foreign direct investment (FDI) in Saudi Arabia from 1980 to 2023. The ARDL approach and VECM technique are employed to analyze the short-run and long-run dynamics. The short-run results show mixed effects. Sustainable economic growth has a positive impact on current and one-period lagged FDI but a negative impact on the two periods lagged. Trade openness and infrastructure negatively affect FDI in the short run. Interestingly, oil rents and real economic growth also have negative short-run impacts on FDI, but these effects become positive with a longer lag. Long-run analysis reveals a negative relationship between trade openness, infrastructure, and oil rents with FDI, suggesting a potential crowding-out effect. Trade openness has a positive long-run impact on most variables, including sustainable growth, FDI, real growth, and CO2 emissions. Oil rents also have a positive long-run impact on these variables. This study finds six bidirectional causal relationships in the short run, primarily between trade openness, infrastructure, oil rents, and FDI. Unidirectional causality runs from oil rents, trade openness, exchange rate, sustainable growth, and real growth to FDI and infrastructure. Additionally, CO2 emissions cause FDI, and trade openness causes sustainable growth. While sustainable economic growth benefits FDI in the long run, short-term policies regarding trade openness and infrastructure require reevaluation. Oil revenue and real economic growth may initially deter FDI, but this reverses in the long term. To attract sustainable FDI, policymakers should focus on long-term economic growth strategies and consider reforms in trade and infrastructure policies. A comprehensive FDI strategy that moves beyond oil dependence and leverages trade openness is crucial to long-term economic diversification.

Sources of economic growth in China from 2000–2013 and its further sustainable growth path: A three-hierarchy meta-frontier data envelopment analysis

This study investigated the impact of the people category of the Sustainable Development Goals (SDGs) on sustainable and conventional economic growth in Asia and the Pacific region, using a sample of 52 selected countries between 2000 and 2023. Employing two distinct models, model A1 for conventional economic growth and model A2 for sustainable economic growth, we explained the relationships between five SDG indicators: employed poverty rate, stunted children, expenditure on health, expenditure of education, and % of women MNAs on economic growth. This study employed a fixed-effect model and random-effect model to investigate the impact of the people category SDGs on traditional and sustainable economic growth. The comparative analysis of each SDG in both models revealed valuable insights. SDG 1, “employed poverty rate”, has a positive impact on economic growth in both models, while SDG 2, “percentage of stunted child”, did not significantly influence economic growth in either model. Moreover, SDG 3 and SDG 4, relating to “government’s health expenditure per capita” and “government’s Education education expenditure per capita”, respectively, exhibited a positive impact on traditional and sustainable economic growth. Conversely, SDG 5, “percentage of women members of national parliament”, displayed an insignificant impact on traditional and sustainable economic growth models. In conclusion, this study suggests that policymakers should prioritize targeted interventions to alleviate employed poverty, enhance healthcare, and boost education spending. Moreover, promoting women’s representation in national parliaments should be approached with context-specific strategies to maximize its impact on economic growth.

The Brundtland Commission Report of 1987 laid out the case for ongoing economic growth as an essential prerequisite for sustainable development. This paper identifies reasoning utilized in that Report to support the idea of ‘sustainable economic growth’. The paper then argues that this economic progrowth bias has continued to represent the dominant, mainstream viewpoint within the sustainable-development movement. In a similar vein, the paper suggests widespread support for the idea of ‘smart growth’ as a form of ‘sustainable urban growth’ capable of advancing the end of sustainable cities. The purpose of the paper is to make the case for the intrinsically unsustainable nature of economic and urban growth. Included among the results of the paper are references to publications from the 1990s and the current decade revealing mounting evidence of existent ecological limits to growth. As its central conclusion the paper argues that continued allegiance to the idea of ‘sustainable growth’ constitutes a major impediment to realizing the ends of sustainable development and sustainable cities.

DOI: 10.1355/ae23-2k China: Is Rapid Growth Sustainable? Edited by Ross Garnaut and Ligang Song. Canberra: Asia Pacific Press at the Australian National University, 2004. Pp. 249. This publication is partly based on papers presented at the China Update Annual Conference held in Canberra, in October 2004, organized by China Economy and Business Program and the Asia Pacific School of Economics and Government of the Australian National University. The book discusses some important issues surrounding China's economic growth and transition, especially after China's post-WTO era. These include domestic marketization and market integration, further reform of state-owned enterprises (SOEs), regional disparity and poverty reduction, financial market development, employment situation, and international trade. It is increasingly clear that the sustainability of its rapid economic growth has become a central concern for China. As shown in the book, economic growth has contributed significantly to the rising average standard of living and the reduction of poverty in the country. Continued economic growth is, therefore, essential to maintain social stability in China while the economy has been undergoing fundamental transformation. Moreover, China's rapid economic growth has been an important factor in recent years in the positive economic dynamism in Asia and in the world. As a result, the sustainability of China's economic growth has captured increasing attention from both within and outside China. The book is a much-welcome addition to the literature on China's growth and its sustainability. The opening chapter starts with a useful discussion on the origins of China's economic reform and the pressing challenges that China faces, including a flawed financial system, growing development gap, macroeconomic fluctuations, and problems with the international trading system. This provides readers with a general overview of not only China's past reform and performance but also the issues that needs to be addressed. The chapter also introduces and links the remaining chapters together. The following chapters focus on various issues considered central for China's sustainable growth. The first issue, China's market development, is discussed from various aspects in three chapters. Chapter 4 focuses on the grain market. Chapter 8 on the labour market, and Chapter 7 on marketization in general. Chapter 4 gives a thorough and insightful overview of China's domestic grain market development. It concludes that after twenty-five years of effort, reforming China's grain market has been reformed with a substantial degree of success. However, many features of the centrally planned system have survived till today, which suggests the difficulties still facing full marketization of the sector. On the labour market, Chapter 8 finds some evidence of increasing labour market integration and that the non-state sector played a major role in facilitating the process. The chapter suggests that China's gradualist approach, where the state sector was gradually liberalized and restructured, and nonstate sector greatly encouraged, helped to develop a unified labour market. Chapter 7 depicts a positive general assessment of China's overall marketization process, while recognizing areas for further improvement. One valuable insight is that regional development and the degree of marketization were positively correlated across provinces. Overall, though, there are plenty of room for further improvement. Another area of emphasis is the growing gaps in development and in income, both inter-regional and inter-personal. Chapter 9 takes the issue of regional policy and economic growth, giving particular attention to the recent campaign to develop China's western inland region. The chapter discusses the policy dilemma the Chinese government faces to narrow regional gaps while maintaining the growth dynamism of the east coast. It concludes that increased government investment and policies favouring the West are important but so far the impact has been limited. …

Exploring the nexus between mineral policies, natural resource utilization, and green reforms for driving economic growth in China

The Indonesian government policy in encouraging sustainable economic growth to reduce unemployment, poverty and inequality is threatened to fail, because economic growth does not reach targets and is not of quality. The purpose of this research is to explain the four pillars of growth and development namely; human capital, social capital, institutional economics and entrepreneurship as the main drivers of quality and sustainable economic growth. This research method used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta. The correlational form of recursive model path analysis was used as analytical method. The research results show the very strong role of human capital as the main key in driving economic growth both directly and indirectly. The existence of human capital and social capital will further encourage new economic institutions, furthermore new economic institutions will encourage the competitiveness of productive entrepreneurship and high, quality, and sustainable regional economic growth. The policy implication is that high, quality, and fundamentally sustainable economic growth must be built on the four main pillars basis namely; human capital, social capital, institutional and entrepreneurship in order to be more successful in reducing development problems; unemployment, poverty and income inequality.

ABSTRACTThe present study provides the nexus between green technology, renewable energy systems and sustainable economic growth in China by assessing comprehensive time series data from 1990 to 2021. It employs quantile‐on‐quantile regression and the Augmented Dickey–Fuller test to assess how policies promoting green technology and renewable energy systems impact China's sustainable economic trajectory towards building a low‐carbon economy for climate change mitigation. The results reveal that all variables become stationary at first difference, except for green technology. There is a positive correlation between green technology, renewable energy systems and sustainable economic growth. Notably, an increase in the rate of green technology and resource management efficiency tends to increase economic growth, emphasising their transformative potential for fostering sustainability. In contrast, the increase in interest rates hinders economic growth. Furthermore, inflation and gross capital formation exhibit positive associations with sustainable economic growth. Policymakers should focus on transition to a low‐carbon economy through targeted resource allocation for low‐carbon technologies and the policies promoting energy efficiency, especially in the urban and industrial sectors. The current study also identifies limitations, like data constraints, methodological challenges and policy interaction complexity. By highlighting these limitations and further exploration can assist multi‐criteria decision making and policymakers to foster green, prospect and sustainable climate change.

The impact of digital inclusive finance on sustainable economic growth in China

The stability and sustainability of economic growth have always been a hot topic of concern in the academic and practical circles around the world. The purpose of this study is to examine the stability and sustainability of China's economic growth. For over 200 economies around the world, ensuring the stability and sustainability of their economic development in the face of sudden and catastrophic events is a great challenge. The COVID-19 epidemic in 2020 is just an emergency to test the economic development of each economy. The method adopted in this study is to observe the economic growth of more than 200 countries and regions in the world in 2020, visually measure the economic growth of each economy after being impacted by the COVID-19 epidemic, and then further explain the reason for the robustness of China's economic growth with the help of shock theory, statistical methods, including variance coefficient, nonlinear econometric model, shock entropy and other quantitative indicators. This study found that although the impact of the COVID-19 epidemic on China's economic growth is huge on the whole, the resilience of China's economic growth is significant, and the original trend of economic growth has not changed because of the impact of the COVID-19 epidemic. Its average variance coefficient is only 0.42, and the shock entropy is almost 0. The conclusion is that China's economic development is not only robust, but also sustainable. The practical significance of this study is that the perfect industrial economic structure and the Chinese style COVID-19 epidemic prevention and control model can still maintain the existing track of economic development at a certain cost of economic development, ensuring that the overall trend of economic growth remains strong, which lays a solid foundation for economic and social development after the COVID-19 epidemic.

Econometric evaluation of economic growth sustainability of various regions
 is provided. As it is stated, for the period of 1998–2012 economies of the North
 Caucasian and the Far Eastern federal districts tended to develop more sustainably,
 while economies of the Central and the Urals federal districts tended to
 develop less sustainably. Within the North Caucasian federal region, it was the
 Kabardino-Balkar Republic, that showed the most sustainable economic growth.
 Similarly, during the same period the Republic of Sakha (Yakutia) within the Far
 East federal district, the Krasnoyarsk Region within the Siberian federal district,
 the Leningrad Region within the North-West federal district and the Republic of
 Adygea within the Southern federal district were leaders in terms of sustainable
 development within their federal districts. As for the Volga federal district,
 the most sustainable economic growth was observed in the Republic of
 Bashkortostan; within the Urals federal district the most sustainable growth was
 observed in the Sverdlovsk Region and within the Central federal district —
 in Belgorod Region. The need to differentiate anti-crisis economic policy towards
 separate regions, dependant on the propensity of a regional economic system for
 sustainable economic growth, is emphasized.