Capital Growth Research Articles

Human Capital and Growth in Arctic Regional Economies: Evidence, Policies and Institutional Perspectives

Abstract The Arctic is a region known for its natural resource endowments and challenging climate. However, evidence from elsewhere suggests that human capital development might also be vital to Arctic economic growth. This article explores the role human capital plays in economic development in the Arctic through analysis of Arctic regional demographic and economic data. The available data preliminarily suggests that human capital stock growth in Arctic regions – as represented by the population with higher education – correlates more closely with economic growth than growth in the general population. The analysis is less conclusive on physical capital development’s connection to economic development as it is with human capital growth. Based on these findings, the article also highlights Arctic-centered institutions and policies that seek to bolster the Arctic region’s human capital stock.

A Cybernetic Delay Analysis of the Energy–Economy–Emission Nexus in India via a Bistage Operational Amplifier Network

In analyzing the decoupling of emissions from economic growth, current literature foregoes the nonlinear complexities of macroeconomic systems, leading to ineffective energy transition policies, specifically for developing countries. This study focuses on the Indian energy–economy–emission nexus to establish a control system that internalizes inflation, trade openness, and fossil fuel imports with economic growth and macro-emissions to visualize the complex pathways of decoupling. Through long-term cointegration and vector error correction modeling, it was found that GDP and energy affect capital, inflation and energy imports, which are locked in a long-run negative feedback loop that ultimately increases emissions. Capital growth enables decoupling at 0.7% CO2 emissions reduction for every 1% capital growth, while 1% inflation growth inhibits decoupling by increasing CO2 emissions by 0.8%. A cybernetic fractional circuit of R-C elements and operational amplifiers was utilized to examine the delay of pulses from GDP to the loop elements, which revealed that capital is periodic with GDP pulses. However, inflation, being aperiodic with the clock pulses of GDP, causes the pulse-width of capital to decrease and fossil fuel imports to increase. Through the circuital model, it was possible to determine the exact policy intervention schedule in business cycle growth and recession phases that could build clean energy capital and limit inflation-induced recoupling.

Aperiodic Optimal Chronotherapy in Simple Compartment Tumour Growth Models Under Circadian Drug Toxicity Conditions

Cancer cells typically divide with weaker synchronisation with the circadian clock than normal cells, with the degree of decoupling increasing with tumour maturity. Chronotherapy exploits this loss of synchronisation, using drugs with circadian-clock-dependent activity and timed infusion to balance the competing demands of reducing toxicity toward normal cells that display physiological circadian rhythms and of efficacy against the tumour. We analysed optimal chronotherapy for one-compartment nonlinear tumour growth models that were no longer synchronised with the circadian clock, minimising a cost function with a periodically driven running cost accounting for the circadian drug tolerability of normal cells. Using Pontryagin’s Minimum Principle (PMP), we show, for drugs that either increase the cell death rate or kill dividing cells, that optimal solutions are aperiodic bang–bang solutions with two switches per day, with the duration of the daily drug administration increasing as treatment progresses; for large tumours, optimal therapy can in fact switch mid treatment from aperiodic to continuous treatment. We illustrate this with tumours grown under logistic and Gompertz dynamics conditions; for logistic growth, we categorise the different types of solutions. Singular solutions can be applicable for some nonlinear tumour growth models if the per capita growth rate is convex. Direct comparison of the optimal aperiodic solution with the optimal periodic solution shows the former presents reduced toxicity whilst retaining similar efficacy against the tumour. We only found periodic solutions with a daily period in one-compartment exponential growth models, whilst models incorporating nonlinear growth had generic aperiodic solutions, and linear multi-compartments appeared to have long-period (weeks) periodic solutions. Our results suggest that chronotherapy-based optimal solutions under a harmonic running cost are not typically periodic infusion schedules with a 24 h period.

Empirical insights into India's energy demand: unveiling elasticity dynamics for strategic policy initiatives.

Policymakers and stakeholders can use insights from price elasticity and income elasticities of energy demand to devise targeted interventions that promote energy efficiency, reduce reliance on fossil fuels, and drive the transition to more sustainable and resilient energy systems. This study seeks to examine how changes in income elasticity and price elasticity affect energy consumption over time using the ARDL model and a time-varying parameter technique, state-space Kalman filter. The study's findings reveal that energy prices have a negative and significant impact on energy consumption, whereas GDP per capita and population growth have apositive and significant impact on energy consumption in both the short and long run. The findings underline the importance of economic growth and increasing population in driving growing energy demand in India, which is consistent with the country's energy-intensive development aspirations. The time-varying analysis shows that the price elasticity of energy consumption follows a U-shaped pattern across time. However, from the onset of the new millennium decade, the elasticity of energy consumption with regard to its price has continually decreased, reaching - 0.54 by 2020. Furthermore, the findings imply that the income elasticity of India's energy demand has stabilized around unity, indicating that the country is currently near the middle of the energy intensity-GDP inverted-U trajectory. Given these evolving elasticities, policymakers should take a flexible and forward-thinking strategy to achieve optimal energy consumption levels.

Analysis of Factors Affecting CO2 Emissions in Türkiye Using Quantile Regression

This study aims to show how the impact of factors on carbon dioxide (CO2) emissions differs at the quantile level and to demonstrate the superiority of the quantile regression method over the OLS method by using quantile regression and ordinary least squares (OLS) methods in order to examine the factors affecting CO2 emissions in Türkiye in depth. Covering the period 1990–2021, this study evaluates the relationship between CO2 emissions and GDP per capita growth, population growth, and renewable energy consumption. One of the important findings of the study is that the increase in the population ratio, which is insignificant according to the OLS method, positively affects CO2 emissions at the 0.25 quantile point. According to both OLS and quantile regression methods, GDP growth does not affect CO2 emissions, while renewable energy consumption has a significant and negative effect according to both models. These results demonstrate that economic growth has no discernible impact on CO2 emissions in Türkiye, while investments in renewable energy can significantly lower emissions and open the door for quantile regression to be used more widely in related research. Unlike traditional methods that focus only on the conditional mean, the quantile regression method provides a comprehensive framework for Türkiye’s sustainable development policies by exploring factor effects at different emission levels.

Time zones

In this response to the forum, I argue that if we think of zones not so much as spatial zones but as time zones, a new way of understanding the pixelated decentralization of politics comes into view. By explicit intention, the zone is designed to punch people out of a shared horizon or a space of capture in the quintessentially modern metrics of per capita growth or standard of living. While offering peculiar usable pasts often related to creative not to say anachronistic understandings of indigenous politics, the zone is also a better iconic scale for the end of history in the grand sense than the nation or even the world in its sloughing off the injunctions of mass politics and popular sovereignty.

The influence of macroeconomics, banking performance, investment and international trade on public welfare with economic growth variables as intervening variables in G-20 countries

Social welfare can be interpreted as a condition that shows a state of community life that can be seen from the standard of living of the community while what is meant by social welfare is a state of fulfillment of basic needs that can be seen from a decent house, the fulfillment of clothing and food, education, and health, or it can also be said that social welfare is a state in which a person is able to maximize his utility at a certain budget limit level and a condition in which physical and spiritual needs are met. The G-20 was formed because the international community was disappointed with the failure of the Group of Seven (G7) to find solutions to the global economic problems faced at that time . The need to improve banking performance, as well as increase capital with an adequate level of capital because it has a positive effect on Economic Growth but does not significantly have a positive effect on Social Welfare. And foreign direct investment (FDI) needs to be encouraged by G-20 countries to increase FDI so that it can provide new resources and technology, encourage economic growth because it has a positive effect, Investment does not significantly have a positive effect on improving social welfare. The international trade variable, measured by goods exports (X₄) and economic growth, measured by GDP growth (Y1) have a significant influence on GDP per capita growth (Y2) as an indicator of Public Welfare in G20 countries. This shows that increasing exports of goods can drive economic growth and public welfare in G20 countries. Through a deeper understanding of the factors that influence public welfare in G20 countries, more effective economic policies can be designed and implemented.

Is Schumpeter right? Fintech and economic growth

ABSTRACT The rise of fintech is revolutionizing the financial landscape, with products and companies advancing innovative technologies to improve and automate financial services. In this paper, I use a novel dataset to investigate the relationship between fintech and economic growth in a panel of 198 countries over the period 2012–2020. This approach – utilizing direct measures of fintech – provides interesting empirical insights. First, the impact magnitude and statistical significance of fintech on real GDP per capita growth depend on the type of instrument (digital lending vs. digital capital raising). While digital lending has a statistically significant positive effect on economic growth, digital capital raising has a large but insignificant effect. Second, the overall impact of fintech including all instruments is positive and statistically significant because of the overwhelming share of digital lending in total. Finally, while the positive relationship between fintech and growth is stronger in magnitude in advanced economies, the statistical significance of this effect is higher in developing countries. Taken as a whole, these results confirm Schumpeter’s prediction that financial innovation can promote growth, but not every type of fintech becomes an accelerator.

THE EFFECT OF THE SHADOW ECONOMY AND ECONOMIC FREEDOM ON ENTREPRENEURSHIP: AN EMPIRICAL STUDY IN ASIAN COUNTRIES

This study examines the effect of the shadow economy, economic freedom and other macroeconomic factors on formal entrepreneurship in Asian countries. The dataset encompasses 28 countries over the period from 1995 to 2018. The Fixed Effect Model (FEM) and Generalized Least Squares (GLS) methodologies are employed for regression analysis. The results indicate a nonlinear relationship between the shadow economy and formal entrepreneurship. Economic freedom, particularly trade freedom, significantly enhances entrepreneurship. Positive macroeconomic influences on formal entrepreneurship include financial development, political stability, GDP per capita growth and foreign direct investment net inflows, while government spending and unemployment negatively affect entrepreneurship. The findings suggest that a substantial shadow economy does not inherently impede formal entrepreneurship. Consequently, governments should prudently consider the role of the shadow economy in fostering entrepreneurial growth. Moreover, policies aimed at improving economic freedom, especially trade freedom, can create a conducive environment for boosting formal entrepreneurship.

Model of “secular” cycle of financial capital accumulation

Crises hitting the world economy since the end of the previous century need a deeper explanation than effects of numerous sudden shocks. According to G. Arrighi’s theory, they manifest the final phase of North-American cycle of capital accumulation. Although analytically promising, the theory doesn’t meet broad recognition. A reason could be its weak formalization. This article addresses this problem by developing a mathematical model of capital growth rates. They are measured by nominal yield and interest rates which represent increments of capital in its general, financial form. If capital level follows a logistic path then its growth rate should be described by logistic differential equation. The model is brought to data on government bonds yields in Great Britain in XVIII– XIX centuries and USA — in XX century up to now. The study provides evidence for the pivotal role of financial-capital accumulation in systemic cycles and its S-shaped form. Besides, it reveals importance of trade balance in specifying cycle phases of domestic and global capital expansion.

Moderating effect of business environment on the relationship between fiscal science and technology expenditure and venture capital

This study examines the nexus between fiscal science and technology (S&T) expenditure and venture capital growth using panel data from 293 prefecture-level cities from 2005 to 2022. Findings reveal that fiscal investments in S&T promote the development of venture capital. Furthermore, favorable business and financial environments positively moderate the stimulatory effect of fiscal S&T expenditure on venture capital. The impact of fiscal S&T expenditure on venture capital varies by region. This study bridges the theoretical gap in understanding the implications of the government's indirect support policies for venture capital and offers a fresh perspective on the dynamics between government and market forces.

Effects of agricultural carbon footprints and malnutrition on life expectancy in China.

This study explored the impact of carbon footprints and malnutrition on life expectancy in China over the periods of 2000 and 2021. Data from the World Bank Indicators database was utilized, and Dynamic Ordinary Least Squares (DOLS) was employed to analyse the extracted data. The results show that over the periods of 2000 and 2021, agricultural carbon footprints in China experienced a first sharp decline in 2015. In contrast, per capita food production in China rose from 88.29% in 2011 to over 108% in 2021. Within a space of a decade, the undernourished population in China was reduced by 78.8%. Moreover, per capita food production had a positive impact on life expectancy in China. Conversely, malnutrition exerted a negative and significant influence on life expectancy. Agricultural carbon footprints contributed a positive but insignificant impact on life expectancy, and GDP per capita growth increased life expectancy significantly in the country. We conclude that policymakers in China are should ensure that all citizens have access to food necessary to improve life span of the country`s population.

Spatial Estimation of Regional Economic Growth Heterogeneity During 2014‒2021

Introduction. The aggravation of socio-economic heterogeneity among Russian regions is one of the main challenges for sustainable development of the country. The main task of spatial policy is to ensure advanced rates of development of geostrategic and lagging behind territories as well as increasing competitiveness of regional economies. However, the events of the past decade substantially adjusted plans on regional economic growth enhancement. The aim of the study is to estimate spatial economic growth heterogeneity and interdependence of bordering entities of Russia over 2013‒2021. Materials and Methods. The main research method is Moran’s methodology for assessing local and global indices characterizing the inter-regional relation and A. Anselin’s approach for local indices of spatial autocorrelation and spatial clusters identification. The research uses regional data on real GRP per capita growth rates for 85 Russian regions for five annual intervals. Results. The results confirmed that geopolitical tensions significantly enhance the regional economic growth heterogeneity. The most developed regions, including main hydrocarbon producers, are found being most exposed to external economic shocks, which reduced their spatial interrelation. Southern and eastern regions demonstrated an upward growth trend. The COVID-19 pandemic shaped the appearance of western and eastern clusters. Regional economies demonstrated the decreasing heterogeneity through enhancing the economic growth rates in the post-crises period. Coincidently, we document that economic development of the regions influences the growth in bordering entities. Discussion and Conclusion. The research allows defining three stages of regional economic growth rates heterogeneity during 2013‒2021. The derived conclusions are recommended for actualizing state policy in reducing regional heterogeneity and strengthening the national economic space.

Possibilities of Changes in Energy Intensity of Production Depending on the Scale of Farm Investments in a Polish Region

The purpose of this paper was to analyze the possibility of changes in energy intensity of production in the context of farm investment scale. The empirical section relies on unpublished FADN microdata. The study answers the question of whether investments and fixed capital growth can contribute to improvements in environmental performance of agricultural production. As it turns out, the group of farms with the greatest amount of investments saw an increase in energy consumption costs, though at a much slower rate than growth in production value. As a result, there was a drop in energy intensity of production, defined as the ratio between energy costs and production value. These findings corroborate the hypothesis advanced in this study, namely that upon reaching a sufficiently large amount of investments, farms can become capable of reducing the energy intensity of their production activity. Hence, higher levels of capital productivity are attained when the farms invest in more energy-efficient fixed assets. Conclusions cannot be universal, as the analysis involved a portion of selected farms. However, the research indicates a trend in the study of energy intensity of production depending on the scale of investment and the validity of the investment comprehensiveness approach. These conclusions provide a basis for recommendations for an agricultural policy which should include support for investments that are large and comprehensive (in relation to the farm’s assets) and go beyond the simple renewal of assets. Therefore, in its investment-oriented measures, the agricultural policy should take the innovativeness (including energy efficiency) criterion into account.

Factors Affecting the Growth of Micro and Small Enterprises: The Case of Daro Lebu and Hawi Gudina Districts of West Hararghe Zone, Oromia, Ethiopia

The purpose of this study was to identify factors affecting the growth of micro and small enterprises operating in Daro Lebu and Hawi Gudina districts of west hararghe zone, oromia region, Ethiopia. The study adopted both Quantitative and Qualitative research designed with arrangement of primary data collection via a cross-sectional survey. Survey Data collected through structured questionnaires from a sample of 197 MSEs selected using stratified sample techniques. The result of regression analysis revealed that access to credit, government support, Education, gender and enterprises’ age were positively significant effects on MSEs' growth. But, Initial capital and infrastructure were negatively associated with capital growth rate of MSEs. However, Recordkeeping, access to technology, access to market and labor found to be insignificant variable in determining enterprises’ growth. More evidence desired on factors affecting the growth of micro and small enterprises before any generalization of the results can be prepared. In addition, the empirical tests conducted only on 197 sampled enterprises employee in Daro Lebu and Hawi Gudina Districts since 2024. Therefore, the results cannot be taken as uniform to generalize for MSEs in the country. The study might help the entrepreneurs, donated to the body of knowledge on the factors affecting the growth of micro and small enterprises to take some corrective action for both planners and policy implementation in government organizations toward developing their performance and in turn contribute to employment creation, poverty alleviation, and economic development. This paper adds to the literature on factors affecting the growth of micro and small enterprises. In particular, it tests the influence of access to credit, government support, Education, gender, enterprises’ age, Initial capital and access to infrastructure on growth of enterprises. The result forward key policy implications to take a corrective action that alleviates the existing challenges of the sector and calls for further MSEs bearing evaluation research.

Impact of Financial Inclusion and ESG on the Sustainable Growth of the Nation: Moderating Role of Poverty

The literature has a strong foundation for the contributions that financial inclusion (FI) and environment social governance (ESG) provide to the sustainable growth (SG) of the nation. This study looks at the relationships between FI and ESG with SG through moderating role of poverty in the nation. The study performs a quantitative analysis by utilizing the panel data regression model on 140 countries with a time period of nine years, that is 2011–2019. In this study, models have been tested for consistency with FE (fixed effect) or RE (random effect). In it, ATMs are used as a proxy of FI, DW_EG is a proxy of statistical performance indicators (SPI), Agr_Land are used as a proxy of Environment Social and Governance (ESG) and Pov_surv are used as a proxy of poverty. GDP_grw are used as a proxy of GDP growth (GDP per capita growth) and RP are used as a proxy of rural population. This study establishes three models, that is, Models 1, 2 and 3. The empirical findings demonstrate a significant linkage between ESG, FI and SG, whereas poverty is found insignificant. Further research confirms that the development of careful co-curation of ICT infrastructure, FI programmes and economic growth strategies is necessary to promote nation’s SG.

Examining the contribution of globalization, renewable energy, and economic growth towards CO2 emissions in the G‐7 countries

AbstractMost of the world's developed countries have negative consequences of unbalanced economic growth and environmental sustainability. The current study contributes to the literature by investigating the impacts of sub‐indices of globalization, renewable energy, and economic growth on CO2 emissions in G‐7 countries of United Kingdom, United States, Japan, Canada, France, Italy, and Germany. The article demonstrates the correlation between numerous variables in the G‐7 countries between 1990 and 2020, including GDP per capita growth, CO2 emissions, globalization, and renewable and non‐renewable energy. The Pooled Mean Group (PMG) technique performs significant tests for cross‐sectional dependence, panel unit root, co‐integration, and descriptive statistics. The study results show that environmental pollution rises with economic growth and falls in the presence of renewable energy sources. Renewable energy use, political globalization, and economic globalization lower environmental harm. From the finding, we indicate that we reduce the environmental pollution in the given countries by lowering or raising the factor affecting the country. A globe map was used in the current study to assign the G‐7 nations. Based on the findings, we addressed several policy initiatives.

Legal Challenges through the Theory of Harmony of Labor and Capital Interests

This article explores the relationship between labor and capital interests through the lens of Frederick Winslow Taylor’s scientific management theory and Georgian legal frameworks. It examines how harmonizing these interests can address organizational conflicts and enhance labor efficiency and capital growth. The concept of “interest” plays a critical role in this analysis. In a broader sense, interest reflects an individual’s motivation and engagement with various subjects, shaped by their legal, social and economic context. Interest pertains to production relationships and the distribution of resources, influencing how labor and capital interact within a corporate setting. Optimizing work processes can align employee and employer goals, fostering a more equitable distribution of wealth. The analysis highlights the role of interest in legal contexts and the importance of compliance in managing conflicts. Organizations can improve governance and achieve a balanced, productive work environment by integrating scientific management with fiduciary duties and ethical practices.

Role of Family for Under-aged Working Children

This study aims to explain the role of the family in child labor that occurs at the Balong Cangkring intersection in Mojokerto, seeing the phenomenon of child labor as a public concern for the weakening of human resources in the future era for the next generation. It is necessary to re-reflect the awareness of the role of parents that this child labor system becomes a capitalist system as the growth of family economic capital. This research method uses a qualitative case study analysis approach, the data collection methods used are interviews, observation and documentation. The results of the study show that child labor as buskers, car glass cleaners, hawkers that occur at the Balong Cangring intersection is influenced by an environment far from civilization, human resources and education which are difficult for children to access due to the weakening role of parents. The lack of the role of parents towards children and the pattern of sustenance that is not optimal so that child labor still occurs in Mojokerto. Human capitalism against child labor in Balong Cangkring is carried out by parents to earn money by employing underage children at school age.

A Lucas island model to analyse labour movement choice between cities based on personal characteristics

The labour movement has been a key factor for cities’ development and caused regional inequality between cities. Although empirical studies have been conducted to investigate it, little theoretical evidence has been provided to find out the underlying mechanism. This paper describes and derives a Lucas-Prescott style island model to study the location choices of the heterogeneous agents by utilising endogenous technology growth, which in turn influences personal human capital growth. It leads to the U-shape curve of the inequality of wage income with the technology of these islands but not in terms of total income. In the extended two-goods model, the magnitude of the implications is increased by the impact of non-tradable goods price. Together with empirical research using the US census data, this paper finds that skilled labours with less endowed wealth tend to live in large cities for its high salary. On the other hand, those less-skilled but with more endowed wealth tend to live in cities with better environment, which drives up the price level of non-tradable goods in these cities. This explains the population concentration in the super cities and the high housing price-wage ratio in some beautiful cities, which provides theoretical basement for further empirical studies about labour movement in other cities