Composition Of GDP Research Articles

South Africa and BRICS: Assessing the Flying Geese Strategy as a Re-Distributional Mechanism for Inclusive Economic Gains

Almost a decade and a half has passed since South Africa joined BRICS in 2010 and it is yet to reap the full economic benefits and advantages which it was promised. For this reason, this article assesses the extent to which the ‘Flying Geese’ model can assist South Africa, as a late comer to BRICS, to catch up with the other members within the grouping by expanding its market presence. It will do so by examining the GDP composition of each of the original BRICS member states between 2010 and 2022 in order to identify which labour-intensive economic activities may be passed down from the so-called “lead goose”, being China, to the latecomer, South Africa. It will analyse the extent to which BRIC nations have shifted its production from consumer to capital goods and whether this is reflected in the grouping’ sexports, as suggested by the Flying Geese model. The article will also make brief use of the Cobb-Douglas production function to showcase the relationship between output and production inputs within BRICS. This article earmarks the textile manufacturing industry as one such sector for consideration. Textile manufacturing activitiesare already being relinquished from China to India, and indeed a newcomer, Ethiopia. It provides recommendations and caveats for the plausible adoption of this development strategy for the BRICS+ group as a means to strengthen South Africa’s manufacturing base, and thereby help address its pressing socioeconomic concerns of high youth unemployment, poverty and underdevelopment.

Researching the Influence of Rural University Campuses on Rural Economic Development: Evidence from Chinese Counties between 2001 and 2020

While there have been studies on the relationship between higher education institutions and regional economic growth, few have delved into the economic impact of decentralized higher education institutions at the county level and associated reginal disparities in terms of socio-economic development. Utilizing the data of the Chinese universities that started to establish their campuses in counties since the year 1999, this study investigates the influence of rural university campuses on county-level GDP and industrial composition spanning from 2001 to 2020. It also delves into the temporal dynamics and regional discrepancies associated with this impact. The findings of this study show that (a) rural university campuses wield a notable positive influence on the GDP of their respective counties, particularly shaping the structure and ratio of secondary and tertiary industries; (b) the magnitude of this effect is contingent upon the duration of campus establishment and growth, intensifying over time; (c) variations in this impact are evident across the eastern, central, and western regions of China, where there are vast socio-economic differences. This study underscores the significant spillover effect of higher education decentralization on county-level economies and advocates for the pivotal role of rural university campuses in propelling county-level economic progress. Additionally, it proposes coordinated policy support from national, regional, and rural university campus authorities; the establishment of requisite support structures; and the comprehensive consideration of regional nuances.

The local economic impacts of mega nuclear accident: A synthetic control analysis of Fukushima

The economic impacts of mega accidents are complex, and accurately quantifying these impacts poses a formidable challenge. Traditional methods often fall short in capturing the extensive consequences of such infrequent disasters, which may go beyond immediate damages to include long-term economic disruptions and indirect costs. This study sheds a light on the economic aftermath of the Fukushima nuclear disaster. Utilizing the synthetic control method (SCM), our analysis reveals a significant, albeit temporary, downturn in the economic performance of the affected region. Specifically, the prefectural per capita income of Fukushima declines by up to 14.4% in the two years following the disaster. This decrease is linked to the composition of Fukushima's GDP and a reduction in labor supply. Our findings demonstrate the effectiveness of SCM as a potent tool for performing counterfactual analyses of mega accidents, offering essential insights into their economic impacts and the pathways to recovery.

Measuring and Analyzing the Impact of ICT Applications on GDP using ARDL Methodology: Iraq Case Study

The fourth digital revolution is one of the most prominent events of the current century. One of the most prominent manifestations of this revolution is the progress made in ICT applications. ICT has a direct impact on human life, and the current study aims to clarify what ICT is by studying and analyzing some applications directly related to ICT and its impact on the composition of Iraq's GDP during the period. (2010-2022), as the study relied on a time-series analysis of ICT components (Number of personal computers used per 100 people, Internet usage density per 100 people, and finally number of mobile and wireless telephone lines activated). The study examined the time series of GDP at constant prices for the period in question. The study used the methodology of slowing down time gaps. (ARDL) to analyze the effects of ICT applications on the composition of GDP. The study showed a long-term moral impact relationship between the number of mobile and wireless lines and GDP. Between the Internet intensity index per 100 people and GDP. In the short term, measurement and analysis results showed that the independent variable (GDP) was only affected by the variable number of personal computers per 100 people and the effect was negative according to the results.

NATIONAL SYSTEM OF INNOVATION AND ECONOMIC DEVELOPMENT: A CASE STUDY FROM CHINA

This article aims to elucidate the debate between the National Innovation System (SNI) and its interaction with economic development, emphasizing the characteristics that allowed the prosperity of the Chinese economy and how innovations are capable of affecting the institutional organism and the socioeconomic structure of a country. The research is divided into two sections: i) literature review on the emergence and understanding of the national innovation system, and ii) analysis of economic policies, the role of the State and other institutions that collaborated with the national innovation system or national system of learning from China. Data were collected from the year 2000 onwards, emphasizing that the role of technological progress in Chinese economic development tends to be more linked to its institutional transformation than to the abundance of productive factors with low market value. Contrary to what is usually advocated in the conventional literature, the workforce in China represents a small portion of the GDP composition when compared to the other analysis factors. This characteristic reflects on the country’s level of high technology exports, which is a clear indicator of its ability to innovate.

Sectoral composition of GDP and greenhouse gas emissions: an empirical analysis in EU27

Sectoral composition of GDP and greenhouse gas emissions: an empirical analysis in EU27

Structural Transformation and Export Diversification: A Case Study of Pakistan

Aim of the study: Structural transformation plays a significant role in a country’s economic growth and development. There are many economies around the world which have experienced structural transformation, however, this phenomenon had not been rigorously analyzed for Pakistan. This study examined the process of structural transformation in Pakistan’s economy through two dimensions. Methodology: The first dimension is the study of structural transformation with reference to export diversification using traditionality index. For this, industry-specific data at 2-digit SITC from 1972 till 2021 was collected, using which the aggregate and average cumulative export experience functions were calculated. The traditionality index was further utilized to construct the structural change index by calculating medium-term structural change. The second dimension is the investigation of sectoral shifts, for which sectoral composition of GDP and sectoral % growth data were taken for 6 countries, including Pakistan. This data was then scrutinized in a comparative analysis approach. Findings and conclusion: The findings of the study show that in context of export diversification, the top 10 export industries of Pakistan are traditional, and no significant structural change has been observed. According to the comparative analysis, the industrial sector’s contribution to Pakistan’s GDP is one of the lowest while growth of all three sectors lags behind other countries. Services sector is the highest contributor to Pakistan’s GDP but is dominated by only 2 categories. Study implications: This study can be helpful for law makers, the state, and industrialists to understand that the way forward is to diversify and shift to value adding exports to increase share of the industrial sector in GDP via appropriate reforms.

Are western sanctions so terrible and how to contain their impact on the economy and population of Russia?

Subject. The article considers the impact of US and Western sanctions on the economy and citizens of the Russian Federation after the start of the special military operation in Ukraine. Objectives. Our aim is to analyze the impact of sanctions on the Russian economy and its financial system, to identify economic determinants enabling to restrain this impact. Methods. The study draws on methods of scientific and information base, synthesis, grouping of obtained data. The methodological and theoretical basis consists of works of domestic and foreign scientists on the impact of economic sanctions on the development of individual countries and the world economy. Results. The study shows that the Russian economy has proved to be much more resilient to the impact of sanctions. The sustainability of Russia's economic system rests on four main factors: (1) sales of our export goods, due to price hikes and the absence of a complete embargo; (2) sustainable domestic consumption through extensive support to businesses and citizens, and tightening the State regulation; (3) structure and composition of GDP (the real sector of the Russian economy in GDP is almost 38%); (4) preservation and expansion of friendly relations with major powers that refused to join the restrictive measures of Western countries. Conclusions. The Bank of Russia should stimulate the country's economy, annually increase the amount of money supply, reduce the key rate up to 3% per annum by the end of 2023. This will increase investments in the economy and provide annual GDP growth.

Методология расчета ВВП: теоретический и практический подходы

The article focuses on the distinction between theoretical and practical approaches to GDP calculation. One of its main provisions is that all costs in the economic society are ultimately aimed at the production of final goods. The theoretical approach takes into account only direct labour, while the practical approach takes into account the costs of both living and past labour embodied in capital goods. The difference is explained, on the one hand, by the special nature of participation of capital goods in the creation of the value of a new product, on the other hand, by the need to have reliable estimates of the produced product. It is demonstrated that the special participation of past labour in the creation of a new product leads to a temporary shift in the cost of new products by the year of production of the capital goods, which does not allow obtaining correct estimates of the produced product in any of the years of use of the capital good. At the same time, taking into account the costs of both living and embodied labour makes it possible to have accurate estimates of the product produced throughout the entire period of use of the capital good, with the exception of the production year of the capital good. The practical approach is linked to the presence in the GDP composition the value of goods which are not directly related to the welfare – gross accumulation, which requires adjustments of the obtained GDP estimates before using them to estimate the well-being of the members of the economic society.

Tourism, Employment, and Economic Expansion in Baltics

This article examines whether or not an increase in the relative weight of tourism sector in overall economic activity can lower the unemployment rate and enhance the process of economic growth in the Baltic States. The analysis employs two alternative methodologies: Toda-Yamamoto causality testing and Impulse Responses. The most radical insight obtained from the empirical analysis is the idea that even though the causality test results have produced the evidence of the causal effect of such a change in the sectoral composition of GDP on unemployment and economic growth in all Baltic states, the results of impulse responses functions reveal that while Estonia and Latvia are likely to benefit favorably from such a change, both income growth and unemployment rates are adversely affected in Lithuania.

Economic vulnerability assessment of EU countries to the impact of COVID-19 pandemic with the revised CEV index

The COVID-19 pandemic had a wide range of detrimental consequences for the global and national economies. It is vital to identify particularly susceptible areas to adopt effective strategies to alleviate the adverse effects of a pandemic. The objective of the paper is to assess the economic vulnerability of EU countries to the COVID-19 pandemic impact using the revised CEV Index. In the study, methods of multivariate statistics were used to analyse the effects of the pandemic. The revised CEVI replaces the 20-dimensional set of features with one aggregate measure, estimated for 27 EU Member States. According to the study, the economic vulnerability of EU countries to the COVID-19 pandemic varies significantly. The most vulnerable countries are in southern Europe, where the tourism sector plays a significant role in GDP composition. Highly susceptible are also Baltic countries: Latvia and Lithuania. The pandemic's harmful impact was the least seen in Germany and Scandinavian countries. The results of this study can be used as a tool for the formulation of policies aimed at overcoming the adverse consequences of economic vulnerability. The CEVI indicates certain areas in the country's economy that make it more fragile. Thus, it can play a significant role in the decision-making process. In the event of a pandemic shock, the CEVI, in combination with other tools, can be an effective instrument for improving the economy's resilience and helping it recover faster.

Industry sector role in the Brazilian GDP and Exportation Share

With the advent of more complex technologies, a new industrial revolution has approached, which leads to changes in several processes and the industrial sector might have a crucial role in the present days since the advanced products the society uses are all manufactured and need well develop industrial plants to be produced. At the same time during the last 20 years, the world experienced the economical emergence of new countries, and among them one was Brazil. The current essay intends to investigate the powers behind the Brazilian growth during this period, dividing the GDP composition and comparing it with other similar countries. The focus will be the manufacturing sector’s role in the Brazilian economy, and whether the country is walking towards the modern advancements in society.

The effect of public expenditures on economic growth of Kosovo: An econometric analysis

Public spending as an important component of the composition of GDP has an impact on economic growth and development. The main purpose of this paper is to analyze the effects of disaggregated public expenditures, to measure the impact of current expenditures, transfers and subsidies, and capital expenditures as part of total government expenditures on economic growth and development of the Republic of Kosovo. To achieve the main goal of the paper was used the multiple linear regression model (OLS) and Pearson. The regression model has been modified and adapted to measure the regression of public spending on economic growth in Kosovo. The data used in the paper are secondary and collected from the Ministry of Finance of Kosovo, Agency of Statistics, and the Tax Administration of Kosovo. Data processing was done with SPSS. The results of the analysis show that the trend of Kosovo public spending for the analyzed period is increasing. According to Pearson correlation analysis, the results show that current public spending; transfers, and subsidies have a strong positive correlation to Gross Domestic Product. Whereas capital (investment) expenditures have a weaker positive correlation with GDP. The results of OLS regression, in our case, did not show the significance of independent variables, which means that the pubic expenses do not have an impact on economic growth in Kosovo.

Convergence stories of post‐socialist Central‐Eastern European countries

AbstractThis paper views the growth and convergence process of five Central‐Eastern European economies between 1996 and 2019—the Czech Republic, Hungary, Poland, Slovenia and Slovakia—through the lens of an open economy, stochastic neoclassical growth model with simple financial frictions. Our main question is whether shocks to the growth rate of productivity (‘trend’) or shocks to the external interest premium are more important to understand the volatility of GDP growth and its components. We find that while GDP growth fluctuations can be traced back to productivity shocks, the composition of GDP—and consumption in particular—was driven particularly by premium shocks. Investment‐specific and labor market shocks are also important. Our panel estimation allows us to separate global and local components for the productivity‐trend and interest premium shocks. Results indicate that the global trend component is well approximated by the growth rate of the advanced European Union economies, and we also find tentative evidence that recent investment behavior is driven to a large extent by European Union funds.

Conflict and cooperation with trade partners

ABSTRACT Escalating political conflict between major trade partners such as the US and China appears puzzling given theories linking trade to pacific international relations. We reconsider theories on bilateral trade, exposure to the global economy, and politics in order to explain contemporary events. Our approach departs from previous work in three key ways: we examine a broader range of conflictual and cooperative interactions together; we assume leaders are responsive to interests opposed to trade as well as to those who benefit; and we reconceptualize what it means to be a “major trade partner,” presenting a new definition that varies with the dispersion of a state’s trade across partners rather than merely dollar value or GDP composition of trade. We demonstrate that states generally initiate more conflict and more cooperation with major trade partners; and while higher exposure to the global economy reduces conflict initiation against major trade partners, it also reduces cooperation. Simultaneously, higher exposure to the global economy is associated with more initiation of cooperation with non-major trade partners. Using events data spanning 1995–2012, we find empirical support for our expectations.

Covid-19 Economic Vulnerability Index: EU Evidence

The COVID-19 pandemic outbreak caused many negative effects on both the global and national economies. To implement effective policies to mitigate the negative impact of a pandemic, it is necessary to identify particularly vulnerable areas. The objective of this paper is to rank the EU countries in terms of the level of vulnerability of their economies to the impact of the pandemic. For this purpose, the COVID-19 Economic Vulnerability Index (CEVI) was constructed. It replaces the 15-dimensional set of characteristics of the countries with one aggregate, synthetic indicator estimated for 27 EU member states. In the study multivariate statistical methods, including agglomerative clustering and multi-attribute methods of object assessment were used to analyse the effects of the pandemic. The research shows that EU countries have different levels of economic vulnerability to the impact of the COVID-19 pandemic. The southern European countries (Spain, Croatia, Greece and Italy), where the tourism sector plays an important role in GDP composition, are the most fragile. Germany and the Scandinavian countries proved to be the least sensitive to the negative impact of the pandemic. The CEVI can be an important part of the decision support system. It enables the identification of countries that show greater vulnerability to the economic impact of the COVID-19 pandemic and may help support countries that need help the most. The proposed index also indicates certain areas in the country’s economy that make it more vulnerable. The CEVI in combination with other instruments can be a very useful tool to improve the economy’s resilience and help it recover faster in the event of a pandemic shock.

A seca e seus desdobramentos: reflexões a partir da realidade da Microrregião de Pau dos Ferros

A região Nordeste sempre foi vista como a região da seca, do subdesenvolvimento, do homem desamparado e de diversos outros estereótipos que consagraram a caracterização de sua configuração humana, econômica e espacial pelas outras regiões do país. A ausência de água é um aspecto marcante, que além de flagelar o nordestino, é utilizada como aporte político para muitos representantes governamentais adotarem discursos de “solução à seca” com a finalidade de adquirirem apoio popular. O objetivo deste trabalho é apresentar a perda de importância das atividades rurais na microrregião de Pau dos Ferros/RN e discutir as medidas emergenciais adotadas para amenizar a escassez de água com ênfase neste município. Para tanto, foi realizado levantamento de dados com foco nas variáveis População e Produto Interno Bruto Agropecuário, extraídos das bases de dados do IBGE; coletados dados na Secretaria de Desenvolvimento Rural de Pau dos Ferros/RN; e realizadas buscas acerca da questão hídrica deste município em portais online. Diante disso, o que se observou foi a relativa perda de participação do PIB agropecuário na composição do PIB Municipal, redução da população rural nessa microrregião e a implantação de ações paliativas de combate à seca.

Role of trade in natural rubber and palm oil in the composition of GDP in Ivory Coast

Purpose. This paper discusses the effect of natural rubber and palm oil exports on economic growth in Ivory Coast from 1980 to 2016 using World Bank data.
 Methodology / approach. The analysis involved the use of Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests and the ARDL model. 
 Results. This paper discusses the effect of natural rubber and palm oil exports on economic growth in Ivory Coast from 1980 to 2016 using World Bank data. The analysis involved the use of Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests and the ARDL model. The results of the study show that there is a positive and non-significant relationship between natural rubber exports and short-term economic growth. On the other hand, in the long term, they have a positive and significant influence on economic development. However, in the short and long term, palm oil exports have a positive and significant impact on gross domestic product. Finally, labour, investment and market opening have a positive and significant effect on economic growth in the short and long term respectively. Therefore, the Ivorian government needs to promote good agricultural practices and agricultural financing in order to increase the competitiveness of the Hevea –Oil palm sector. 
 Originality / scientific novelty. Previous studies in natural rubber and palm oil focused mainly on its production, constraints to production and processing. However, very few studies on its effects on economic growth have been done so far. This study fills that gap. It expanded the existing literature and the subject of the causal relationship between natural rubber and palm oil exports and economic growth in Ivory Coast and shed light on required efforts to enhance the production and utilization of natural rubber and palm oil at larger scale to bring economic development in Ivory Coast. At last, the ARDL model is used to address this issue.
 Practical value / implications. The generated information will be useful to a number of organizations including: research and development, marketers, producers, policy makers, government and non-governmental organizations to assess their activities and improve their mode of operations, to help better guide the design and implementation of policies and strategies. Finally, knowing the existing relationship between natural rubber and palm oil exports and economic growth, together with impediments faced by natural rubber and palm oil exports, the study provides the various ways to improve these exports by increasing exports capacity of local producers. Research on this issue is too important to inform policymakers regarding resource allocation in the natural rubber and palm oil sector to achieve economic growth.

GDP OF THE SUGAR AND ALCOHOL SECTOR IN BRAZIL AND NORTHEAST: AN INPUT-OUTPUT APPROACH

Under the traditional classification into primary, secondary and tertiary sectors, the value of Agriculture Gross Domestic Product – GDP – is underestimated since upstream and downstream relations are not computed in this statistic. In order to solve this problem, several recent studies, using the concept of Agribusiness, a term coined by Davis and Goldberg in 1957, and representing the sum of all activities related to agriculture, have sought to estimate the value of agricultural GDP considering this activity as the core of a much larger economic system and called Agribusiness and Agro-industrial Complex (CAI). In this work, we attempted to quantify the GDP of the sugar and alcohol sector both for the Northeast and for Brazil, and the participation of the region in GDP composition of this sector in Brazil. The results show that the GDP of this sector accounts for 9.21% of regional GDP. In Brazil, this share is 6.91%. The industry in the Northeast account for 15.57% of the national GDP of activity.

Regional Economic Base Analysis of 20 Regions of Bangladesh Based on Industrial Sector

Bangladesh economy has been growing for the last few years (World Bank, 2018). It has 34th largest GDP across the world (Global Edge, 2017). In 2016, 7.1% GDP growth has made it the 2nd largest growing country in the world (Chowdhury and Hossain, 2019). This GDP growth does not represent the development of all sectors and regions of the country rather a few sectors and regions have the major contribution behind high rate. Though having 45% of the labor force work in agricultural sector, it lies at the bottom of the GDP composition in sectors (Global Edge, 2017). Again, the country’s economy, education, commerce, industry etc. are highly centralized in Dhaka (Siddiqui. K et al. 2016). The study tries to find out the discrepancies in this regard. The study is based on twenty broader regions of Bangladesh and their regional economy. The economy of these regions depends on different industrial sectors. The shares of basic and non-basic industries are also different for these regions. The study has also revealed the strength of different industrial sectors in different regions playing both roles either basic or non-basic. It finds that despite centralization, some regions have potential in some specialized sectors. The study also finds that different economic factors are instrumental for the development of regions and sectors. JBIP, Vol. 11, 2018 (Printed in June 2020), pp. 55-66