Component Of Economic Growth Research Articles

Role of blockchain technology in changing the structure of a country's monetary base and GDP

This article explores the role of blockchain technology in changing the structure of a country's monetary base. Specifically, it examines the potential benefits and risks of using blockchain in monetary policy, such as efficiency, transparency, and new opportunities for managing the financial system. The article highlights changes in approaches to monetary policy through the use of blockchain-based digital currencies, as well as discusses challenges that may arise in implementing this technology. The conclusions of this article may be valuable for government agencies, central banks, and researchers interested in the impact of blockchain technology on the financial sector. In recent years, the adoption of blockchain technology as an alternative to fiat currencies in various countries around the world has significantly expanded globally, as a significant number of business organizations have recognized the importance of all the advantages that blockchain technology provides. Previously, the focus was on cost control to remain competitive, but lately blockchain technologies have somewhat shifted the significance and monetary mass, influencing the structure of a certain country's monetary base. Based on recent research and publications, the article emphasizes the importance of understanding economic principles that govern the determination of the impacts of various economic and financial indicators on components of economic growth and predicting the consequences of such decisions. It references the seminal work of economists P. Romer, R. Lucas, R. Barro, I. Salla y Martin, and R. Levine, who laid the foundation for studying endogenous economic development. The purpose of this article is to investigate the practice of implementing blockchain technology in the financial support of various economic processes of economic entities and their impact on the structure of a country's monetary base. Thus, it has been identified that the influence of blockchain on the structure of the monetary base itself has received little attention. Despite blockchain being used as an alternative to components of the monetary base, thereby changing its structure within a certain country, most studies focus on literature reviews and provide information for practitioners and academic communities. Therefore, this article aims to bridge the gap by developing a model to identify distortions in the structure of the monetary base under the influence of blockchain. The effective use of blockchain is still being explored. As a result, the operations of many companies using blockchain technologies for payments are vulnerable to technical issues. Blockchain technology is utilized to address this problem and facilitate data exchange among relevant stakeholders. This document presents a benchmark for the impact of blockchain technology on the structure and mass of the monetary base for a specific country, integrating blockchain for sustainable money functioning with the integration of the Internet of Things and big data. Finally, potential benefits and limitations are analyzed during the implementation of this framework. Methods. Macroeconomic analysis, econometric analysis, trend analysis. Results. Determination of the level of influence of blockchain technologies on the change in the structure and volume of the monetary base of a certain country. The study casts doubt on classical economic doctrines by establishing a strong correlation between the distribution of components of the monetary base in its structure and the use of blockchain technology for payments for goods, labor, and services. It emphasizes that the economic growth of a country and the structure of its monetary base depend on the proportion of blockchain technology usage in that country. This research opens up possibilities for further studies in this interdisciplinary field.

EKONOMİK BÜYÜME VE SAĞLIK HARCAMALARI ARASINDA LİNEER OLMAYAN PANEL VERİ ANALİZİ

In the 1960s, endogenous growth theories revealed that human capital as much effect as physical capital in economic growth. Then, it was focused on how to increase human capital accumulation, and it was determined that first of all, education and then health were two main components. There are a lot of studies in the literature trying to assess the relationship between health expenditures and economic growth. In the studies on the relationship between economic growth and health expenditures, which is the subject of this study, it has been observed that economic growth is increased by health expenditures generally, but there are some studies that show that it does not affect economic growth even decrease. In this study, the relationship between health expenditures and economic growth has been examined for OECD countries, including Turkey, with two different methods: dynamic panel data analysis and non-linear panel data analysis. In these methods, firstly, the relationship between health expenditures and economic growth is examined, then the other components of economic growth that are generally accepted in the literature, such as capital accumulation, total factor productivity and the democracy index, whose effects on economic growth are discussed, are included in the model to determine the effect of health expenditures on economic growth has been studied.

Pengaruh Pemberdayaan Usaha Kecil dan Menengah terhadap Pembangunan Ekonomi Masyarakat Kabupaten Karo

As a component of economic growth, small and medium enterprises (SMEs) are in a strategic position to accelerate structural change and improve people's livelihoods, especially in the Kabanjahe region of the Karo region. This study uses descriptive research with a qualitative approach. To accomplish this, the researchers went directly to the scene and interviewed one of his staff members working at his UKM in Kabanjahe district of Karorigency. In its role, SMEs can increase their own employment and become a source of sustainable business development and smooth income growth. This motivated researchers to explore approaches that would lead to success in the Kabanjahe area of ​​the Karo region. The purpose of this study was to investigate the extent to which the strengthening of SMEs affects the economic development of municipalities.

Patterns of rural innovation processes along agro-processing value chains: The case of Mopani district, South Africa

Innovation is recognized as a critical driver and component of economic growth and development. While innovation is considered crucial to solve societal problems and create opportunities in rural areas, insufficient effort has gone into examining the nature of innovation processes as they unfold in rural areas. Consequently, our understanding of the patterns of innovation by rural-based enterprises remains limited. This study uses a qualitative approach to explore the patterns of rural innovation processes within two agro-processing enterprises in South Africa’s Mopani District Municipality. Data collection was conducted on-site using semi-structured interviews with a range of interviewees located along the agro-processing value chains of the enterprises. The analysis shows that enterprises increasingly engage in adoption and adaptation of different types of innovations. These innovations complement core business operations rather than completely change them. Rural innovation is predominant in non-R&D and non-technological areas such as commodity supply arrangements, production processes and marketing strategies. Our findings provide insights into the conditions that facilitate innovation. We suggest that innovation policy should strengthen and enhance existing local innovation capacity in rural areas. Future research on the origins and nature of rural innovation in emerging enterprises could incorporate large sample data to provide additional insight.

STUDY OF THE METHODS OF DETERMİNİNG AND MANAGİNG THE ENTERPRİSE'S EXPORT CAPACİTY BASED ON İNTERNATİONAL BUSİNESS PRACTİCES

STUDY OF THE METHODS OF DETERMİNİNG AND MANAGİNG THE ENTERPRİSE'S EXPORT CAPACİTY BASED ON İNTERNATİONAL BUSİNESS PRACTİCES

Financial Inclusion: A Panacea for Economic Growth in Nigeria (2004 – 2020): An Empirical Review

Financial inclusion has been considered as one of the most potent drivers of economic growth in countries across the globe, this is in view of the fact that financial inclusion creates access to financial resources which affords individuals the opportunity to participate in inclusive growth. The purpose of this paper was to provide a conceptual understanding of financial inclusion and the economic growth components, these variables were adequately reviewed and the relationship between both established. Empirical literatures on the subject matter were reviewed and the position of majority of the authors established. An empirical analysis was conducted to ascertain the relationship between financial inclusion and economic growth and the outcome revealed that financial inclusion promotes economic growth in Nigeria. The recommendations of this study includes the following amongst others; government should enact laws that will make financial services/resources readily accessible to those in the rural and remote communities in Nigeria so as to integrate them into the emerging financial order of the Nigerian financial system; Micro finance banks should be encouraged to intensify operations in remote communities as they can serve as intermediaries between the people in the local communities and the deposit money banks dominant in the urban areas.

Challenges of Enterprises Optimal Growth in Terms of the Covid-19 Pandemic

Challenges of Enterprises Optimal Growth in Terms of the Covid-19 Pandemic

ВПЛИВ ЕКОЛОГІЧНОЇ СЕРТИФІКАЦІЇ НА РЕЙТИНГ ГОТЕЛІВ З БОКУ КЛІЄНТІВ

Economic growth in modern conditions is accompanied increasing anthropogenic load on the environment, depletion natural resources, which generally limits the prospects for further development of agricultural formations as business entities. Given this is important acquires "greening" of economic activity, competitive development of socio-economic systems based on "green" economy. Economic levers today are not able to fully ensure the quality parameters of enterprise development, and therefore, need to be strengthened by other components of economic growth, in particular environmental growth. Current trends in society consider strengthening the interaction with the environment, growth demand for ecological housing, clothing made of natural fabrics, food from organic products etc. Thanks to awareness and environmental responsibility, most of the population directs its activities to the "natural" sphere, to organize environmentally friendly business. A promising direction for Ukraine's economy has now become the development of the tourism business, in particular eco-hotel entrepreneurship. The hotel industry is an integral part of the tourism industry. The rapid growth in the number of hotels and the exacerbation of problems associated with the development of the hospitality industry in Ukraine make us talk about the need for change and the search for new vectors of their development. In this article we will analyze the impact on hotels of the environmental certification system by customers based on a comparison of customer ratings of hotels in Ukraine with or without a certificate. Eco-enterprises of the hospitality industry of Ukraine mostly adhere to partial eco-certification. In general, guests rate hotels with a certificate higher than those that do not have an eco-certificate. The paper substantiates the most effective ways to increase the competitiveness of eco-hotels, namely the ability to inform the public about the significant contribution that the hotel makes to the welfare of the country, region, specific area, will increase the competitiveness of the hotel.

Scientific and Technological Progress and Economy of the USSR: Theory, Practice, Lessons for the Present

The article is devoted to the main approaches of Soviet economists to the issue of introducing the achievements of scientific and technological progress into production related to the experience of economic development of the USSR. Among the research provisions, general economic planning stands out as a key tool for the balanced dissemination of the elements of scientific and technological revolution in the interests of the entire population. Practice showed the validity of the advantages of socialism noted by researchers in a number of spheres. However, there were also significant imbalances in economic development, which were insufficiently worked out theoretically. The successes were concentrated mainly in the important strategic industries, while the production of consumer goods faced systemic difficulties. Ultimately, these imbalances started growing, and the intensive component of economic growth began declining. This tendency is substantiated by a system of motivations at different management levels, among employees. Public enthusiasm and intangible motives were substantial but limited, while economic incentives were insufficient. Nevertheless, despite the current dominance of an economic system being fundamentally different from the Soviet model, there are prerequisites of the growing relevance of turning to Soviet theories and practices in economic development based on advanced technologies. This is due to a significant degree of similar content of technologies attributed to the fourth industrial revolution, compared with the post-war stage of scientific and technological revolution. The new nature of technologies presupposes greater calculation possibilities in planning, the prospects for widespread automation of production, coupled with the need to form new, non-economic motives of work. Similar problems were widely discussed in the Soviet academic sources.

The impact of innovations on the efficiency of animal husbandry in Lviv region

Domestic agricultural enterprises do not have a high level of innovation activity, however, stable and competitive operation of an agricultural enterprise is impossible without its innovative activity. Stabilization of the situation in the agricultural sector with the current level of competition and constant technological variables, the innovative vector of development is the driving component of economic growth. Activation of innovation of domestic agricultural enterprises is one of the important prerequisites for stability and sustainable socio-economic development of the country. Consequently, the effective functioning of the livestock industry is possible only under the conditions of systemic and purposeful innovation aimed at finding a variety of new opportunities provided by the business environment. The innovation process in domestic animal husbandry is clearly aimed at the end result - a certain socio-economic, technical or environmental effects. The efficiency of animal husbandry is determined after the introduction of innovation, calculated by the method of evaluation of investment projects. On the example of Lviv region we analyzed the conditions of innovative activity in animal husbandry, assessed the modern innovative potential of the industry, established the features of its innovation and investment activities. SWOT-analysis is an important component of assessing the position of livestock enterprises in the region. It should be recognized that the innovative activity of livestock enterprises is mainly associated with the final stage of the innovation process – the development of innovations. In 2020, farms of all categories of Lviv region compared to 2019 decreased meat production (sales for slaughter of farm animals in live weight) by 1.6 %, milk – by 4.7 %, eggs – by 0.3 %. cattle on farms of all categories on January 1, 2021 amounted to 144.4 thousand heads (including cows – 86.2 thousand heads), pigs – 346.1 thousand heads, poultry – 10.5 million. heads. Compared to January 1, 2020, the number of poultry increased by 5.7 %, pigs – by 4.1 %, the number of cattle decreased by 8.2 % (including cows – by 8.6 %). Innovative activity of the livestock industry is formed under the influence of the domestic innovation system and has its own specifics, which is caused by the peculiarities of agriculture. Most innovative projects are aimed at introducing innovations that contribute to the intensification of animal husbandry and increase the competitiveness of products. Thus, on the basis of innovative development of animal husbandry it is possible to achieve a significant increase in the competitiveness of agricultural enterprises, which will allow Ukrainian producers to achieve significant results in world markets for agricultural products.

THE RELATIONSHIPS BETWEEN FOREIGN DIRECT INVESTMENT, STATE-OWNED INVESTMENT, PRIVATE INVESTMENT, IMPORT, EXPORT AND ECONOMIC GROWTH IN VIETNAM

A key component for economic growth is the foreign direct investment (FDI), which drew the attention of researchers worldwide. This study aims to examine the relationship between foreign direct investment (FDI), state-owned investment (SOI), private investment (PI), import (M), export (X) and Vietnam’s economic growth (GDP) since the Renovation (1986) to now (2019). The Vector Autoregression Model (VAR) and Vector Error Correction Model (VECM) were utilized to realize the above-mentioned goals. The Johansen co-integration test confirmed that there exists a long-run relationship among the above variables. The Granger causal relationship test found one-way causal relationship from GDP to FDI and PI in the short-run. Besides, the similar causal relationship between export and GDP is confirmed. Also, the two-way causal relationship between PI and export in the short-run is also found in this study. In addition, the impact of a shock of SOI on GDP is more significant than that of an FDI or PI shocks on GDP. By contrast, the response of GDP to shocks of import and export seems are small. Finally, it is certain that FDI plays an essential role in Vietnam’s economy.

Udział kobiet w rynku pracy w Arabii Saudyjskiej i jego determinanty

Saudi Arabia's Vision 2030 recognized female labor force participation as an important component for economic growth. This study investigates the relationship between female labor force participation rate, female tertiary school enrolment, female life expectancy and per capita income measured quarterly between 1991 and 2017. The study employs traditional unit root tests of Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) complemented by Zivot and Andrews (ZA) test. Furthermore, for robustness check, combined cointegration test as prescribed by Bayer and Hanck (2013) and Pesaran ARDL bound tests were performed. Toda-Yamamoto causality test examined the causality flow among the variables. The result posits all independent variables have positive significant effect on female labor force participation rate within Saudi Arabia; rendering a policy recommendation: higher female labor participation can be achieved through investment in female education, health sector and achieving economic growth.

Role of Smart Cities in Optimizing Water-Energy-Food Nexus: Opportunities in Nagpur, India

The evolving concept of ‘Smart Cities’ (SC) is today gaining global momentum in scientific and policy arenas. With the rising potential for jobs and improved lifestyle, these fast-growing cities are witnessing an ever-increasing concentration of populations and economic activities. However, the core aspect of sustainability is often overshadowed in SC by the components of economic growth. In view of the rising water, energy, and food (collectively referred to as WEF) demands in cities and the interlinkages between WEF systems, this study aims to highlight the role of SC in enhancing WEF resource efficiency from a nexus perspective. To study the current trends of SC developments first, a specific case of proposed Nagpur smart city (India) is reviewed based on document analysis and preliminary discussions with local government officials. Thereafter, bibliometric analysis (based on Scopus data) is conducted to establish a comprehensive understanding of existing SC research in varying domains of interlinked WEF systems. While the proposed Nagpur smart city is observably focused on city-centric goals with a high emphasis on infrastructure development, this study underlines the need for environmental resource conservation at a transboundary level. The key opportunities for optimizing the WEF nexus in Nagpur are then highlighted in reference to the bibliometric analysis.

Mortgage Lending as a Component of Economic Growth

The purpose of the article is to reveal the role and importance of the mortgage lending development to overcome the financial and economic crisis and ensure the positive dynamics of macroeconomic indicators. The article reveals the essence of mortgage lending, substantiates the necessity of its development and improvement to create an effective mortgage lending system in Ukraine, which helps to solve the problems related to providing housing for the population and accelerating the development of not only the construction industry but also related areas of the activity. It is proven within the study that the volume and dynamics of the investment in housing has a significant impact on the macroeconomics, and therefore, by improving the mortgage lending system, it is possible to transmit positive impulses to the real sector of the economy and bring the country out of crisis. The article outlines the features of a mortgage lending which distinguish it into a separate sphere in the credit market. Based on these features, the functions of mortgage lending in modern conditions are defined, namely: investment, social, stimulating, and formation of the fictitious capital in the securities market. The research proves the importance of developing and improving mortgage lending by identifying the benefits and disadvantages of all credit entities. On the basis of statistics, the main parameters of the domestic mortgage market, which indicate a conservative approach to the formation of lending conditions and the reluctance of banking institutions to provide long-term mortgages, are determined. The main reason for this situation is the imperfect legal base of real estate lending. It has been concluded by the study results that mortgage lending is an important tool for ensuring the social and economic growth of a country, and its role and importance have increased significantly since the financial and economic crisis. JEL classіfіcatіon: G21 Manuscript received 27.04.2020

PERAN INVESTASI TERHADAP PEREKONOMIAN DAERAH : STUDI KASUS DI KABUPATEN GARUT

High economic growth shows an increase in productivity, the impact of which can increase employment opportunities. Besides increasing productivity can also increase community income, reduce unemployment and reduce poverty. One component of economic growth is investment, which is needed to increase productivity. The aims of this paper was to determine the description or condition of the investment climate in Garut Regency viewed from the ICOR value coefficient. The results showed that the ICOR value illustrates the efficiency of investment in an area. The ICOR value of Garut Regency in 2018 is 5.7. By using the standard method, the results show that investment in Garut Regency needs lag (t + 4) so that an investment reaches full capacity

CУЧАСНИЙ СТАН ТА ПРОБЛЕМИ ФОРМУВАННЯ ДЕРЖАВНОГО БЮДЖЕТУ В УКРАЇНІ

A significant place in the social and economic development of each country belongs to the problems of the budget, because the budget belongs to the sphere of public life that directly affects the interests of all members of society. The budget of any country reflects the important economic, social and political problems of the state and each person in particular. At the same time, the successful solution of budget problems is possible only if a proper understanding of its essence, role and place in the system of economic relations. For any country, the state budget is the main link in the financial system. As part of this system, it combines the main financial categories: income and expenditure of the country, the tax system, public credit, public debt in their closest coexistence. The budget as a financial plan of public expenditures and sources of their coverage plays an important role in the activities of the state. It determines its capabilities and development priorities, its role and forms of implementation of the functions assigned to it. It is an effective regulator of that economy reflects the amount of financial resources required by the state, determines specific areas of use of funds, directs the financial activities of the state. The peculiarity of the budget as a financial plan is that it has the force of law. The legislative nature of the budget provides appropriate conditions for monitoring the use of budget funds and strengthening its impact on the efficiency of social production. Financial imbalances as an objectively existing reality are an integral determinant of modern development, and the form of their manifestation is the crisis phenomena, which in retrospect of global development have repeatedly led to sovereign defaults. At the present stage in Ukraine the problem of analysis of factors and components of economic growth is quite acute in order to level the main macroeconomic imbalances and imbalances and stabilize further economic development. This article considers the main problems of imbalance of the state budget of Ukraine, analyzes the objective and subjective factors of revenue and expenditure of the State Budget of Ukraine. The essence of the concept of "state budget" is highlighted. The article examines the problems of imbalance of the state budget. The statistical data of expenditures and revenues of the state budget of Ukraine for 2019-2020 are analyzed. Ways to improve the balance of the state budget are proposed. It is considered that it is rather difficult to ensure equality of revenue and expenditure parts of the budget. It can be achieved if we constantly restrain the growth of government spending and establish a level of taxation in the country that will be sufficient to generate income to cover public needs. It is investigated that an important factor in the stability of the budget system is the balance of local budgets.

ECONOMIC GROWTH MODELS AND GOVERNMENT EXPENDITURE IN SOUTH AFRICA: A DISAGGREGATED IMPACT ANALYSIS

This study examined the effects of government expenditure on different components of economic growth in South Africa. The six key policy variables employed in the analysis were derived from the Solow neoclassical growth model and the New Growth Path (NGP), a macroeconomic framework designed to address the main challenges (unemployment, poverty and inequality) facing the economy as a result of its political past. The analysis of the relationship was carried out using the cointegration model, longrun estimates and the VECM, because assessing the effects of government expenditure on economic growth goes beyond the short-term period, due to the fact that it takes time before government outlays have an effect on the economy. The findings from the analysis revealed that though there exists a long-run equilibrium relationship among the variables with the cointegration results, the long-run estimates showed that aggregate private consumption expenditure and employment-to-population ratio are significantly, but negatively, related to economic growth, while net inflows of foreign direct investment and gross fixed capital formation are negatively related to gross government expenditure. This implies that government needs to direct most of its spending towards human capital development, in order to overcome the challenges. However, government expenditure needs to be monitored, since excessive public capital expenditure might reduce the positive impact of foreign direct investment on economic growth. The study therefore suggests that government should consider increasing its expenditure on the significant variables that support labour and capital development, in order to enhance economic growth in South Africa.

Electricity consumption and economic growth: empirical evidence from a resource-rich landlocked economy

This paper unfolds the short run and the long run causality between per capita electric power consumption (LEPC) and per capita gross domestic product (LGDP) for Nepal during the 1971–2010. The conventional Augmented Dickey Fuller (ADF) unit root tests indicate that the series are integrated of order independently and Johansen cointegration test confirms the presence of one cointegration among the variables. A vector error correction model (VECM) is then employed. It is found that LGDP Granger causes LEPC in the long run and weakly Granger causes in the short run. While reverse causality is found not to be true. Furthermore, impulse responses are included, which estimate how each variable behave upon the policy shock and variance decompositions segregate the portion of each variable on total variation. Finally, with a tight 67% confidence interval, in sample forecast and out of sample forecasts were made from 2011 till 2020. The results indicate that total electricity consumption has no causal role as a component of economic growth in Nepal. Thus, the electricity consumption policy should be designed and implemented as a cohesion to growth but not as cohesive to growth.

Economy management with a focus to the productivity

Knowing the essence of productivity and its importance for the economy of the company, but also for the national economy is a prerequisite for successful management in these spheres, as well as the implementation of productivity principles as one of the basic principles of economy. Productivity is viewed as a component of economic growth with the help of production function. Many theoretical interpretations point to the differentiated concepts of factor productivity at the enterprise level. The analyzed complex models for measuring the productivity of enterprises indicates that the productivity has been placed in the focus of economic management. The paper highlights the theoretical methodological problems in the application of certain models and ways to overcome them. The main goals of institutionalization in this area are harmonization the methodology for measuring the productivity of enterprises and national economy and enabling affirmation and importance of the productivity. The productivity of the national economy is most often measured by the real GDP per capita, often being the subject of analysis and composition of the GDP as different types of expenditures. The main goal of this paper is to enable better management to the economy of industrial enterprises, especially the mining companies, through improvement the productivity measurement.

On Measurement of Economic Growth

This article continues the discussion raised in the pages of the journal on the methodological problems of justifying economic policy [1]. Problems of measuring the inflationary component of economic growth and in product competitiveness in the internal market and external markets are considered. A procedure to measure economic growth, taking into account the balance of interests of the current and future generations, is proposed.