Determinants Of Economic Development Research Articles

Human capital quality and its impact on economic growth of Russian regions

Purpose: is to empirically substantiate the impact of human capital quality on the economic growth of the regions of Russia on the basis of theoretical and methodological generalization of its main aspects.Methods: along with traditional methods, specific methods were used, such as content analysis, methods of expert assessments and comparative analysis, and the calculation and graphic technique of Xiang-Yeaple, which allowed to identify the state of human capital quality, as well as establish its optimal structure suitable for dynamic economic development.Results: the cognitive and non-cognitive parameters of human potential are established as a realistic factor in the dynamics of gross regional product that determines the future pace of economic development. A comparative analysis of the labor demand and supply elasticity coefficients has revealed the degree of impact of its quality in ensuring the corresponding trends of economic growth. It was proven that significant investments in human capital and high levels of its development represent only a factor of ensuring economic growth and don’t guarantee its achievement. Recommendations for ensuring the development of labor potential as determinant of economic development, the growth rates of which largely depends on the human capital quality.Сonclusions and Relevance: the Russian economy should focus on the formation and development of high-quality human capital through talent-fueled innovation by reforming the existing education system and assessing scientific potential in order to optimize the labor and branch structure suitable for high-quality economic growth. Human capital should be structured considering the parameters of its quality, the level of available labor potential, and the types of activities that require advanced knowledge for systemic economic growth.

DETERMINANTS OF UKRAINIAN ECONOMIC AND FOOD SECURITY DEVELOPMENT UNDER THE CONDITIONS OF MARTIAL LAW

The aim of the study is to find out the determinants of economic development and food security in Ukraine under martial law. The relevance of this topic is determined by the agricultural orientation of the Ukrainian economy and the problems of exporting under war conditions, which can lead to famine all over the world and a decrease in cash receipts in the budget of Ukraine. The main results of the research showed that until now Ukraine was focused on the production of law value-added goods. In addition, a significant decrease in GDP during the war and the study of the experience of the Second World War made it possible to assume that the economic decline was caused not only by war factors but also by structural imbalance and the raw nature of the economy. The agro-industrial complex of our country, on the one hand, can ensure food security, both within the country and in the world, but taking into account recent events, this is not always possible. It is worth noting that russia increased wheat exports, and Ukraine, on the contrary, was forced to reduce it. Also, a ban on the export of Ukrainian agricultural products in some countries of the EU until June 5, 2023, caused a great resonance in society due to negative economic consequences. It was proposed to extend this ban, which cannot have a positive effect on the economy of our country. Taking this into consideration, it is necessary to change the entire economic course of the country, which should take into account national economic interests, security determinants, reduce dependence on external factors, and balance the structure of the economy. The export of agricultural products should be carried out not only due to the interests of the EU but also the national interests of Ukraine.

Determinants of Economic Development in the Pacific Alliance: an empirical approach using Panel Data 2004-2020

Determinants of Economic Development in the Pacific Alliance: an empirical approach using Panel Data 2004-2020

Economics of investment projects in the field of biomass power plants

Economics of investment projects in the field of biomass power plants

Formirovanie konkurentnyh preimushchestv predpriyatij na osnove innovacij: teoriya i mirovaya praktika

The growing importance of innovation as a determinant of economic development is becoming increasingly evident not only in developed countries, but also in developing countries and countries with economies in transition. Consequently, the revenues of innovative companies are growing, forcing other organizations to change their business models to innovative ones. Innovation affects capitalization, and as a business grows, its impact also increases, encouraging companies to accelerate their innovation processes. The mechanism of influence of innovations on financial results is mediated by the market, where competitive advantages are formed. Despite the fact that in a knowledge economy the ability of an organization to learn becomes an extremely important factor, it can be assumed that it is the innovation that determines the competitive advantage and market success.

EFFICIENCY DIVERGENCE BETWEEN FORMAL AND INFORMAL MICROENTERPRISES DURING THE TRADE LIBERALIZATION OF MEXICO

Efficiency is a crucial determinant of economic development, especially among microenterprises, which tend to be the prevalent economic units. This article estimates the efficiency of both formal and informal microenterprises in Mexico in the context of NAFTA (North American Free Trade). The Oaxaca-Blinder decomposition method is used to explain the factors behind the observed differences. Additionally, a detailed analysis with a decomposition by quantiles is provided. Formal microenterprises are found to be more efficient than their informal counterparts, with a narrow difference in 1994 widening by 2012. At the same time, the efficiency level declined for both groups of microenterprises over time. Two main conclusions are derived. First, microenterprise size distribution and the characteristics of the private sector influence the success of trade liberalization policies. Second, the overall decrease in efficiency, regardless of whether microenterprises are formal or informal, supports recent studies suggesting that economic, institutional and social constraints limit firm performance.

An Empirical Analysis on the Determinants of the Philippine Economic Growth: 1987-2018

The impending unemployment situation in the Philippines is dreadful to the economic development. The study aims to formulate an econometric model for the determinants of economic development. This paper may be a new approach in understanding the inter-dependencies between the economic forces, but using a local region does prove that there are new insights regarding the economic factors in the Philippines. The results show that an increase/decrease in Labor Force Participation Rate (female) and General Government Final Consumption Expenditure increases/decreases in Unemployment Rate Among Female approximately. In contrast, an increase in the Inflation Rate decreased in Unemployment Rate Among females. The analysis uses E-views version 11 and 12. The results show a significant relationship between Unemployment Rate Among females and Labor Force Participation Rate (female), Inflation Rate, and General Government Final Consumption Expenditure using Multiple Linear Regression Analysis and Autocorrelation. Moreover, Johansen Cointegration Test proves a long-run relationship among the variables. The authors suggest that the analysis is imperative to help the economy maintain a high standard level and can be used by the government to implement policies that specifically highlight the role of women in economic growth.

Do the Effective Tax Incentives Reduce Tax Revenues? Investigating the Paradox of Corporate Income Tax in Serbia

The aim of this paper is to examine the impact of tax incentives as determinants of economic development on revenues from corporate income tax in Serbia. The study uses data from secondary resources of the Ministry of Finance for the period 2007–2018 by employing regression and factor analysis. The research includes 10 tax incentives that were used in Serbia in the analyzed period. The methodology of empirical verification involves the implementation of correlation analysis, regression analysis and factor analysis. We opted for the application of Principal Component Analysis (PCA) because this method extracts the important data in order to present a set of new variables called main components. The model obtained in this way formed the determined components of tax incentives as independent variables. The model considers tax incentives grouped into four components. The results of empirical research indicate that there is a positive impact of certain tax incentives on revenues from corporate income tax and proved the paradox of tax collection initiated by tax incentives. The model proved that tax incentives explaining the first component had a positive effect on revenues from corporate income tax. Namely, the incentives for investments, incentives exempting the taxpayer from paying corporate income tax for work training, professional rehabilitation and employment of disabled persons, as well as a reduction based on the elimination of double taxation have a positive effect on revenues from corporate income tax. The positive impact of tax incentives can be explained by their effectiveness. The results show that tax incentives policy must be defined in detail for the purpose of achieving the economic and social goals.

FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON ECONOMIC AND ENVIRONMENTAL DEVELOPMENT

In the development of the national economy investment plays a crucial role, and the investment process is a determinant of economic development. The investment process is understood as the process of investing resources into real objects in order to achieve the expected level of profitability in the form of material income or social benefits. The investment process does not exist by itself, its role and importance is manifested both in a specific sphere of activity and in the system of economic relations as a whole. The study of the investment process as an integral economic system is possible through the reflection of its constituent elements: the subject, the object of investment, the interaction between them and the environment in which these elements interact. And by analyzing the stages of the investment process, it is possible to understand at what stage problems arise that reduce the likelihood of attracting investment, that is, one can clearly identify a specific problem and easily fix it. In addition, in order to better understand the investment process, it is necessary to consider the methods of its regulation, because the methods and mechanisms of regulation are extremely important: they can both stimulate investment activity and reduce it. It is said that investment always has a positive effect, but this is not true. The article examines the positive and negative effects of attracting foreign direct investment. The investment process through the prism of the amount of FDI in the economy of Ukraine is also considered, the main directions of investment are defined. Since investment is the basis for the development of various levels of the economic system and is necessary for the modernization of the economy and increasing the rate of production, their attraction contributes to the development and expansion of the country's potential. In turn, attracting investment depends on the quality of implementation and regulation of the investment process. The results of the investment process improve the overall macroeconomic indicators of the country's economic development, it has a positive impact on the country's image on the world arena. Thus, investments are the basis of effective functioning of the country and the investment process deserves attention.

Knowledge Management and Economic Growth: The Assessment of Links and Determinants of Regulation

Purpose: In order to make an informed choice of the most effective tools for ensuring the development of a competitive economy, it is important to take into account the links between macroeconomic indicators of progress and the most important components of knowledge management. In this regard, the aim of our study is to assess the relationship between knowledge management factors and economic growth in order to select the factors that most determine the positive changes in Gross national income per capita. Methodology/results: As a result of the systematization of the main international indices, which use knowledge management factors and the authors’ correlation analysis of their relationships with GNI per capita, conclusions are made about the greatest effectiveness at the present stage of action, which results in skills development (such as the ability to work with new technologies and with people, flexibility and cooperation), innovative capacity, access to information and means of communication. Findings: The perception of these factors as determinants of economic development and the appropriate direction of the levers of economic policy will result in achieving the greatest economic efficiency on the basis of the development of the knowledge economy.

Assessing the impact of higher education competitiveness on the level of socio-economic development of a country

The study is devoted to the investigation of the educational determinants as components in shaping the level of socio-economic development of countries around the world, including assessment of the impact of national higher education system development indicators on the determinants of economic development, in particular macroeconomic, innovation, and technology determinants.Based on the grouping of 50 countries, a matrix of relationships between the Universitas 21 index and global competitiveness index was constructed. It is determined that despite the close correlation between the indices as a whole (0.96), there is a certain differentiation of influence in groups. The high impact of education on global competitiveness (0.76) was found in the group of countries with a medium level of competitiveness, moderate impact (0.54) – in the group of highly competitive countries, weak impact (0.38) – in the group of countries with a low level of competitiveness. Based on the correlation-regression analysis, the study proposes a structural-logical graph of the relationship between educational and economic indicators and quantifies it accordingly. The results show that the level of higher education competitiveness is closely correlated with such indicators as the level of global innovation development (0.8 over the period 2012-2020), the level of the knowledge intensity of GDP (0.73), and the level of socio-economic development (0.75). The results will allow changes in education indicators to be taken into account in the context of their impact on economic development and global development strategies.

The Rule of Law and Its Social Reception as Determinants of Economic Development: A Comparative Analysis of Germany and Poland

Abstract The rule of law is not just a necessary condition for a modern liberal society but also an important prerequisite for a stable, effective and sustainable market economy. However, relevant legal norms may be more or less successful depending on their social reception within a particular country. This study explores the connection between the rule of law, especially in terms of how it is viewed socially, and the functioning of market economy in the examples of two geographically contiguous yet often-diverging countries, namely Germany and Poland. We utilise two approaches to examine this issue, first studying societal perceptions of the various dimensions of the rule of law by way of standardized surveys and in-depth interviews conducted in both countries to determine the de facto state of the rule of law in the economic context. Secondly, we measure the effect of the de jure and de facto rule of law on economic outcomes using a multivariate panel analysis. Combining new institutional economics and sociology of law, our analysis finds that Polish firms perceive the rule of law and its execution by the state in a restrictive perspective, contributing to insecurity. German interviewees, however, showcase the supportive and transaction cost-reducing properties of the rule of law, displaying higher trust in the state. These findings are supported by an econometric analysis of the drivers of rule of law in both Poland and Germany, which shows the importance of rule of law in terms of a level playing field contributing to higher levels of investment.

Argument for Evidence-Based Development of Sustainable Normative Framework for Nautical Tourism Ports: Case of Croatia

Optimization of nautical tourism development largely depends on national normative frameworks since the use of maritime property is highly regulated in every country. This paper argues that the normative regulation of nautical tourism should take into consideration the historical relation between the key determinants of economic development. The paper analyzes a 15-year period (2005-2019) with respect to six crucial indicators of nautical tourism development: the number of ports, marinas, berths, employees, coast size (aquatorium), and revenues. Our research found very strong positive relationship between: the number of nautical tourism ports and revenues(r = 0.931); number of marinas and revenues (r = 0.985); number of employees in nautical tourism ports and generated revenues (r = 0.960); number of nautical tourism ports and number of employees (0.987); number of marinas and number of employees (r = 0.965). In addition, an intermediate level of relationship was found between: size of the aquatorium used by nautical tourism ports and income(r = 0.454), and size of the aquatorium and number of employees (r = 0.652). Finally, the paper reports weak relationships between the number of ports and number of berths (r = 0.353); number of berths and number of employees; number of berths and size of aquatorium used (r=0.335). The research results related to size of aquatorium are especially important since the current Croatian regulations based on the system of concessions have a discouraging effect on this aspect of the development of nautical tourism ports.

ВЛИЯНИЕ ЭКСПОРТА И ИМПОРТА НА ЭКОНОМИЧЕСКОЕ РАЗВИТИЕ ПРИГРАНИЧНЫХ РЕГИОНОВ В РОССИИ

The border regions of the Russian Federation play a very important role in the territorial structure of the country, as well as in ensuring its foreign economic relations with neighboring countries. Meanwhile, it is the border regions in our country that have an extreme degree of heterogeneity of economic development and sectoral specialization, an insufficient level of economic diversification and the effectiveness of territorial development. Therefore, the study of the main determinants of economic development of the economies of border regions is of particular importance. These determinants include, in particular, indicators of foreign trade of border regions. Thus, the purpose of this article is to assess the impact of foreign trade on the socio-economic development of border regions. The analysis showed that this influence is insignificant. It can be assumed that attempts to develop foreign economic activity of border regions may lead to an even greater differentiation of territorial development in Russia. This result is very important for adjusting the leveling regional policy of the federal center and developing regional development strategies.

Utjecaj plaća na tržište rada u Republici Hrvatskoj

Tržište rada, vrijednost plaća i životni standard neraskidivo su povezane odrednice gospodarskog razvoja. Hrvatski BDP, životni standard i kupovna moć stanovništva među najnižima su u Europi. Rast plaća u Republici Hrvatskoj postoji, ali, kao i u većini zemalja srednje i istočne Europe, nije popraćen porastom produktivnosti radne snage. Glavnina dohotka hrvatskoga stanovništva otpada na prehranu, što se povezuje sa slabom produktivnošću gospodarstva. U strukturi dohotka stanovništva primjećuje se i znatna ovisnost o socijalnim transferima koji, za znatan udio stanovništva, predstavljaju razliku između siromaštva i relativno normalnog života. Republika Hrvatska je podbacila u kreiranju ekonomskih modela koji omogućuju gospodarski rast kroz tehnološki napredak i jačanje produktivnosti radne snage. Kako bi se poboljšao životni standard u Republici Hrvatskoj, nužno je riješiti strukturne probleme prisutne na tržištu rada i kreirati ekonomske politike koje potiču gospodarski rast. U ovome radu analizira se veza između vrijednosti plaća, tržišta rada i životnog standarda u Republici Hrvatskoj. Postavljena hipoteza glasi: strukturni problemi na hrvatskom tržištu rada utječu na vrijednost plaća, a posljedično i na životni standard hrvatskih građana. Cilj rada jest analizirati strukturne probleme na tržištu rada u Republici Hrvatskoj i njihov utjecaj na vrijednost plaća. Svrha rada je ukazati na važnost efikasnog tržišta rada u nacionalnom gospodarstvu Republike Hrvatske.

The Rule of Law and its Social Reception as Determinants of Economic Development. A Comparative Analysis of Poland and Germany

The Rule of Law and its Social Reception as Determinants of Economic Development. A Comparative Analysis of Poland and Germany

Do economic freedom matters for finance in developing economies: a panel threshold analysis

ABSTRACT Economic freedom is an important determinant of economic development, yet little academic research has considered its financial perspectives. Using a relatively new measure of finance, we find that a high-freedom environment fosters finance in developing economies. Unlike prior literature, the advanced panel threshold estimator shows a single significant economic freedom threshold level of 4.282 as a benchmark, where the relationship turns positive. The findings are robust to alternative estimators and split-sample analysis. The findings are useful for policymakers to attain optimal financial benefits by assuring a high-freedom environment.

Analysis of Factors Influencing Adoption of Human Resource Practices by Small and Medium Scale Enterprises in Nigeria

In the XXI century, one of the most valuable resources of any organization is human capital. The effectiveness of the organization and the use of other resources depend on the formation quality and the use of the human capital. Today, many factors affect small and medium scale enterprises that lead to their rapid bankruptcy and liquidation, significant staff turnover, and reduced productivity. Under these conditions, attracting and retaining highly qualified personnel as the primary determinant of economic development and growth of small and medium scale enterprises is significantly relevant. Minimizing the negative impact of external and internal factors made by small and medium scale businesses requires recognition of the value of the human resources in improving the enterprise’s competitiveness and the effective management tools implementation. The study identifies the main factors influencing the implementation of human resource management practices in small and medium scale enterprises in Kwara, Nigeria. Methodological tools of this study are methods of analysis and synthesis, comparative and regression analysis. The study covers 200 small and medium scale enterprises in the Kwara Central Senatorial District and registered in the National Association of Small and Medium Enterprises (NASME). The factors influencing the use of human resources by small and medium scale enterprises in the article are studied in the following logical sequence: using a structured questionnaire developed in the form of the Rensis Likert scale, an array of primary data is forme. The hypothesis (at the level of 5% of weight) regarding the relationship between the efficiency indicators and human resources management policy is tested using multiple regression analysis with statistical software STATA 11.0. The results of the survey are analyzed, summarized, and interpreted using descriptive statistical methods. The results of multiple regression analyses confirm a statistically significant relationship between the analyzed indicators (p = 0.000 and R2 = 0.8128). The study shows a significant impact of financial security of the organization (β = 0.76; t = 8.63; p) and its size (β = 0.46; t = 4.66; p) on the implementation of personnel management practices on the example of small and medium scale enterprises in Kwara). The study results confirm that the small and medium scale enterprises in Kwara actively use personnel management under the influence of environmental factors. The study empirically confirms and theoretically proves the feasibility to consider such variables as the funding availability, the size of the firm, and the type of ownership in the business management process. Keywords: Human Resources, Human Capital Theory, Management, Nigeria, Small and Medium Scale Enterprises.

Fiscal policy and foreign trade as a determinant of economic development – focus Kosovo


 The purpose of this paper is to identify the role of fiscal policy in Kosovo, comparing with the Western Balkan countries, in the trends of economic development, which are related to the international market, and how to achieve the objectives of the economy of Kosovo, penetrating the foreign market of local companies, using fiscal policy instruments. Data processing is performed using deductive-analytical methods, describing and comparing research findings by commercial companies, extracting data and comparing official reports of national and international institutions on the role of policies analyzed in the Western Balkan countries and in Kosovo, and the results of the research are based on these analyzes. Each sovereign state has its own fiscal policy operating within the financial system of that country, which also influences the development trends of international trade, the same applies to Kosovo and the Western Balkan countries, where this policy includes customs tax, VAT, tax in personal income, etc. The government of the country, through fiscal policy instruments, creates conditions for companies to be as present in the foreign market as possible with their products, which impacts on the overall economic development of the country. achieved. The paper provides insights into the state of the fiscal system in Kosovo, how fiscal policy affects the creation of conditions for foreign trade development, where is Kosovo's economy is in relation to the Western Balkan countries and what are the steps needed to improve it. The paper provides real data on the state of the fiscal system in Kosovo and its full role in the development of foreign trade in relation to the Western Balkan countries.

Insurance and Insurance Risks in Health Economics

Health Economics is a significant field of economy. Development of a nation is crucially connected with the condition of health of its people, and health is now been accepted as an important determinant of economic development of a nation. Here, we will discuss about many topics of Health Economics.