Economic Development Strategy Research Articles

The Role of Green Sukuk (Islamic Bonds/ Shariah-Compliant Bonds) in Enhancing Indonesia Economic Development Strategy in The New Normal Era

This study aims to determine the significance of Green Sukuk in enhancing Indonesia’s economic development strategy in the new normal era. - The method employed was quantitative with forecasting. Furthermore, the researchers employed the least squares quantitative and historical analogy qualitative techniques. The study’s findings indicate Green Sukuk’s role in boosting Indonesia’s economic development plan in the new normal era. The implications of the study are likely to add to the body of knowledge linked to the function of Green Sukuk in enhancing Indonesia’s economic growth strategy in the new normal era. Increasing the number of issuances and contributions of State Sukuk (Islamic bonds/ shariah-compliant bonds) to APBN funding, with an annual average of roughly 30% of total Government Securities (SBN) financing. To the best of the researchers’ knowledge, this is one of the first attempts to empirically study the function of Sukuk in boosting Indonesia’s economic development strategy in the new normal era. Keywords: Green Sukuk, Development Strategy, Indonesian Economy, and the New Normal Era

Digital Economy Development, Common Prosperity, and Carbon Emissions: An Empirical Study in China

Under the new development model, the digital economy has become a new engine to promote the green development of the economy and realize the goal of “double carbon”. Based on the panel data of 30 provinces in China from 2010 to 2020, this paper empirically investigates the impact of the development of the digital economy on energy and carbon emissions using a series of econometric models such as baseline regression, a mechanism test, and the spatial Durbin model, etc. Common prosperity plays an intermediary role between digital economy development and carbon emissions; digital economic development optimizes resource allocation, effectively solves the problem of uneven resource distribution, and reduces energy and carbon emissions while achieving common prosperity. In addition, green innovation, industrial structure, urbanization level, R&D intensity, and the degree of marketization also have different degrees of influence on energy and carbon emissions. Therefore, the government should accelerate the construction of new digital infrastructure and implement the digital economy development strategy according to local conditions, so as to promote the digital economy to produce a more significant carbon emission reduction effect.

Local economic development strategies in a medium-sized city on the European periphery: a path to become an economic center of Eastern Central Europe importance

Large cities are becoming increasingly valuable in the spatial structure of globalized economies. Although these centers vary significantly regarding population, economic structure, and income conditions, they—compared to their surroundings—generally show a higher productivity level, a higher rate of employment, higher education, and higher innovation performance. However, this metropolization and concentration of the economy in large cities made the development of cities regarded as medium-sized on an international scale an issue of competitiveness in Europe, characterized by dense town networks, a small number of metropolises, and a significant weight of medium- and small-sized towns. However, one of the main preconditions for achieving success in this competition is to form a comprehensive and complex concept with a significant emphasis on economic development. Therefore, the aim of our study is to analyze the local economic development strategies for the last three decades, as elaborated in Debrecen. In the framework of our empirical analysis, we examined how different mainstream concepts appear in local development strategies and which development objectives are determined by the local strategies. Furthermore, we also aimed to identify possible changes in ideas about city roles by referring to the organization of economic space.

Structural Change in the 21st Century: The Role of the Modern Services Sector in the Economic Development Strategy

ABSTRACT Traditional literature on Economic Growth highlights the role of the manufacturing sector in fostering economic growth. This sector, characterized by increasing returns, plays a fundamental role in both static and dynamic scale gains within the economy. Recently, an increasing number of studies have suggested that the increased share of the modern services sector also significantly contributes to innovation, productivity, and increased output. The aim of this paper is to reevaluate growth theories in light of the emerging prominence of the services sector and to outline key components of a research agenda that encompasses this sector as a crucial area of investigation. To substantiate this argument, we apply a GMM (Generalized Method of Moments) model to a dataset spanning from 1990 to 2018, encompassing fifty-one (51) countries, in order to evaluate the impact of modern services on manufacturing performance. An interaction variable is employed to test whether a symbiotic relationship between industry and services is the driving force behind economic growth. The results demonstrate the relevance of the services sector. Finally, we suggest possible research lines to be developed.

Study on the Impact of Digital Economy Enabling High-Quality Economic Development in Yunnan Province

This article aims to explore the role of digital economy and its mechanism in promoting the high-quality development of Yunnan Province's economy. By constructing an evaluation index system and applying econometric methods, the current situation of the digital economy in Yunnan Province and its impact on the high-quality development of the economy are comprehensively analyzed. It is found that the digital economy has a significant positive contribution to the high-quality development of Yunnan Province's economy, and indirectly affects the high-quality development of the economy by enhancing the level of entrepreneurship. In addition, there is a non-linear relationship between the digital economy and high-quality economic development, and the promotion effect of the digital economy on high-quality economic development varies significantly across different levels of economic development. Based on these findings, the article puts forward policy recommendations such as comprehensively promoting the development of the digital economy and implementing a differentiated digital economy development strategy in order to promote the sustainable development of Yunnan Province and the wider region in the era of the digital economy.

Digital economy and urban innovation level: A quasi-natural experiment from the strategy of “Digital China”

The digital economy is an essential engine of the innovation-driven development strategy and plays a valuable role in promoting the high-quality development of the regional economy. Based on the panel data of 286 cities in mainland China with the help of the digital economy strategic plans issued by local governments as a quasi-natural experiment, we use the multi-temporal double-difference (DID) method to examine the impact of the digital economy on the urban innovation level. Findings show that the digital economy can significantly improve the urban innovation level. After a series of robustness tests, such as parallel trend test, updating sample and period, and repeated placebo test, the innovation-driving effect generated by the development of the digital economy remains significant. Results of the mechanism analysis indicate that the digital economy enhances the level of innovation through upgrading industrial structures. In addition, we find through the heterogeneity test that the digital economy has a stronger effect on improving the quality of innovation. Meanwhile, the innovation output in the Middle Eastern region is more significantly affected by the “Digital China” strategy than the Western region. Therefore, we should accelerate the implementation of the local digital economy development strategy to realize the high-quality development of the regional economy.

Practical Strategies for The Economic Development of Mexico: Nearshoring Trend

This research aimed to suggest practical strategies for Mexico's economic development through the trend of nearshoring. It involved identifying, analyzing, and organizing the causes of the conflict between China and the USA over international trade and exploring the opportunities that nearshoring to Mexico can offer. Qualitative research methods were applied, and documentary research techniques were used based on two study objects: a) the Sino-American dispute over international trade and b) nearshoring to Mexico. Nearshoring to Mexico is driven by various factors, including tariff benefits from Free Trade Agreements, low labor costs in manufacturing companies, and a stable exchange rate. Therefore, Mexico needs to encourage the development of industrial parks, implement an effective Public Security Policy, offer tax incentives to attract Foreign Direct Investment and improve port, road, and air infrastructure to take full advantage of this trend.

‘One central purpose’? Tracking the Evolution of Strategic Approaches to Economic Development in Scotland

The Scottish Government’s latest economic strategy aims for a ‘transformation’ of the Scottish economy, with higher levels of aggregate economic performance combined with greater equality, reduced poverty and environmental sustainability. In doing so it echoes similar ambitions expressed in Scottish economic development strategies since devolution in 1999. This article provides a contextual analysis of the strategic approaches to economic development pursued by successive administrations and the institutional arrangements to deliver them. In particular, it provides an account of how ‘economic development’ and its aims have been understood, the shifting balance between a prioritization of growth and distributional concerns, and the attention given to questions of geographically uneven development within Scotland. While there is a degree of continuity across these strategies, the trend has been towards a broadening set of aims around the economy, influenced by growing international interest in looking beyond GDP, concern about regional inequality and a need to reduce carbon emissions. Overall, however, these shifts have not yet marked a radical departure from the traditional underlying goal of seeking increased economic growth at the national level.

Relatedness and product complexity meet gravity models of international trade

Researchers have long used gravity models to analyze international trade patterns, identify export opportunities, and negotiate trade agreements. Recent research has emphasized the significance of relatedness and product complexity research in developing robust economic development strategies. This paper presents a novel approach, incorporating relatedness and product complexity as integral elements for interpreting export potential within gravity models powered by machine learning. Our approach stands out for its proficiency in accurately predicting bilateral trade values at a detailed product group level, providing valuable insights for policymakers and other stakeholders. The research leverages random forest machine learning models for predictions and incorporates relatedness and complexity to reveal new dimensions in international trade analysis.

Small countries facing the technological revolution: fostering synergies between economic complexity and foresight research

Purpose Although the significance of technological progress in economic development is well-established in theory and policy, it has remained challenging to agree upon shared priorities for strategies and policies. This paper aims to develop a model of how policymakers can develop effective and easy to communicate strategies for science, technology and economic development. Design/methodology/approach By integrating insights from economic complexity, competitiveness and foresight literature, a replicable research framework for analysing the opportunities and challenges of technological revolutions for small catching-up countries is developed. The authors highlight key lessons from piloting this framework for informing the strategy and policies for bioeconomy in Estonia towards 2030–2050. Findings The integration of economic complexity research with traditional foresight methods establishes a solid analytical basis for a data-driven analysis of the opportunities for industrial upgrading. The increase in the importance of regional alliances in the global economy calls for further advancement of the analytical toolbox. Integration of complexity, global value chains and export potential assessment approaches offers valuable direction for further research, as it enables discussion of the opportunities of moving towards more knowledge-intensive economic activities along with the opportunities for winning international market share. Originality/value The research merges insights from the economic complexity, competitiveness and foresight literature in a novel way and illustrates the applicability and priority-setting in a real-life setting.

DAMPAK DARI INVESTASI DALAM MEMAJUKAN KOMUNITAS LOKAL DI INDONESIA

Investment is one of the important factors in a country's economic development strategy in order to meet the needs and achieve the goals of the founding of the nation. The importance of investment for the development of the country then makes the impact and impact unavoidable by the government and local communities. In return for the profits obtained by the company from investment activities, the company has obligations or social responsibilities that must be fulfilled for the development of local communities. This is done as an effort so that the local community does not fall behind and is able to achieve progress in various fields of life.

Enhancing carbon emission performance in resource-based cities through technological innovation under China’s digital economic development strategy

As indispensable contributors to the energy and resource sectors, resource-based cities have played a pivotal role in shaping China’s carbon emission landscape. The carbon emission performance of these cities directly impacts the overall carbon footprint of the country, thus highlighting the significance of enhancing carbon emission efficiency within resource-based urban areas to drive nationwide carbon reduction initiatives effectively. The digital economic development strategy presents a promising avenue for improving carbon emission efficiency in resource-based cities. This study employs the super efficiency epsilon-based measure model to assess the carbon emission performance of 103 resource-based cities over the period from 2011 to 2019. Additionally, it utilizes an intermediate effect model to analyse the impact mechanism of digital economic development on carbon emission performance. The findings reveal a substantial 6.3% enhancement in carbon emission performance in resource-based cities attributed to the implementation of the digital development strategy, primarily driven by technological innovation. Furthermore, the study identifies significant dual-threshold effects within economic growth and environmental regulation, shedding light on the complex interplay between these factors. These insights offer valuable guidance for regional carbon reduction endeavors and serve as a valuable supplement to the understanding of the environmental implications of digital economic development in resource-based cities.

Impact of New Energy Industry Agglomeration on Green Innovation Efficiency—Based on the Regulative Effect of Green Finance

With the implementation of China’s innovation-driven high-quality economic development strategy, green and innovation are already the key factors of economic development. Therefore, developing green industry and improving regional green innovation have attracted wide attention and are of great significance to the sustainable development of China’s economy. Therefore, starting from China’s provincial panel from 2012 to 2021, this paper first uses the super-efficiency relaxation data envelopment analysis model (Super-SBM) to estimate green innovation efficiency (GI) and then uses the location entropy to measure the regional agglomeration level of the new energy industry (agg). Then, the generalized estimation of moments (GMM) model is used to explore the impact of agg on GI and verify the regulatory mechanism of green finance (GF). The results are as follows: (1) agg presents a distribution of “the highest in the eastern region, followed by the central region, and the lowest in the western region”, (2) agg can facilitate the improvement of GI, and in accordance with the threshold model, moderate GF will further amplify this effect. Therefore, the state and government should further promote the green finance policy, guide new energy enterprises to gather and contribute to the sustainable development of China’s economy.

Analysis of the Role of Agribusiness in the Indonesian Economy

Agribusiness is an important support in national economic development. This research aims to determine the complete agribusiness system that is interrelated with economic activities. This research methodology is a literature review which is based on Indonesian government regulations. The results of this research show that agribusiness has a strategic role in the formation of GDP, employment, international trade, regional economic development, national food security, environmental preservation, and equal distribution of development results. In the development and implementation of agribusiness that is already underway, there are still many obstacles. To solve very complex economic problems, especially in the agricultural sector, Indonesia requires sharpening (focusing) economic development strategies which are expected to be able to provide solutions to existing problems. So synergy is needed in the agribusiness sector, namely between agriculture, plantations, animal husbandry, fisheries, and forestry with the development of upstream and downstream agricultural industries as well as the development of related service sectors therein.

Evaluating the effectiveness of local economic development strategies within UMhlathuze Local Municipality

Local Economic Development strategies were formulated in response to the stipulations made by the national government of South Africa. The national mandate placed the responsibility on the local sphere of government to promote economic progression from a grassroots level and to contribute to developmental activities within the state. The National Framework LED has been created as a basis for the effective practice of LED in terms of implementation. This paper focused mainly on evaluating the effectiveness of Local Economic Development strategies in uMhlathuze Local Municipality within Empangeni town. This paper and its problem were developed by the researcher due to the growing unemployment rate in South Africa which mostly affects young people, more especially at the municipal level. The researcher was convinced to evaluate how the economic development strategies or initiatives addressing the issue of unemployment and assisting economic development within the uMhlathuze Local Municipality, intending to come up with mechanisms that may be put at hand to ensure the effectiveness of these strategies provided to address economic issues with the municipality. This paper employed qualitative methods to collect and analyze data. Qualitative data were collected from community members and staff of the municipality within the Department of Economic Development through the use of questionnaires. The analysis of qualitative data was done through thematic analysis. The findings of the research revealed that there is a communication breakdown between the community and the municipality to enable the community to use the opportunities for economic development. This paper recommends that the municipality needs to develop/advance communication methods to ensure that the community is informed and aware of the development opportunities that are provided by the community.

Economic Impact of Tourism in Developing Countries

Tourism stands as a beacon of vast economic growth potential, offering immense opportunities for emerging and developing nations to bolster their economies. Despite the attraction of exotic locales and cultural richness, there exist regions within developing countries, notably in India, which remain quite underexplored and significantly underutilized in the tourism sector. This research aims to shed light on the economic ramifications of this untouched potential by delving into states in India that have yet to capitalize on their tourism assets. This research aims to propose action-oriented strategies and policy recommendations aimed at harnessing the latent tourism potential of these often-neglected states. By understanding the complex interplay between economic development, cultural heritage, infrastructure, and marketing strategies, policymakers and stakeholders can pave the way for sustainable tourism growth, which, in turn, fosters socioeconomic upliftment and inclusive prosperity in these regions. Ultimately, this study aspires to contribute to the discourse on tourism development in developing countries, offering valuable insights into the economic impact of tourism and charting a course towards unlocking the latent potential of marginalized regions in India and beyond. KEYWORDS Tourism development, Economic Growth, Developing countries, Tourism potential, Cultural heritage, Sustainable tourism, Policy recommendations, Socioeconomic upliftment.

The Pashtun Borderlands, 1944–1947

In the 1940s the Afghan dynasty in Kabul and newly independent rulers in Pakistan did not meet the challenges of building enduring representative political institutions and sustainable national economies. The dynamics of post-war globalized political and economic relationships undermined perceived elements of colonial-era stability. Borderland individuals and communities buffeted by post-war uncertainties and traumas from the Partition of British-India in August 1947 often ignored or resisted state-building efforts too often seen as lacking political legitimacy or local benefit. State institutional failures of governance in the 1970s that preceded subsequent decades of regional instability were foreshadowed in the 1940s. By 1950, the working of global capital, including in the form of American corporate interests, complicated any state notions that foreign funded economic development schemes might substitute for substantial structural political and social reforms.

CHALLENGES WITH THE TRANSITION TO A RESEARCH-BASED ECONOMY IN KAZAKHSTAN

This study offers several qualitative and mixed approaches to explore the challenges with the transition to a research-based economy in Kazakhstan. Some findings have been drawn from a doctoral study of science policymaking in Kazakhstan focusing on experts’ involvement in agenda setting.
 According to the results of this study, despite the significant structural transformation and numerous economic development strategies, the economy of Kazakhstan remains dependent on extractive industries. It is mainly because the structure of the economy of Kazakhstan is more export-oriented than service-based. The macroeconomic situation is characterized by an unpredictable business environment.
 The findings of this research highlight that the business sector is not interested in R&D activities and relies most on accelerated foreign technologies. The Kazakh Government likely needs to facilitate specific subsidies and tax preferences for business enterprises involved in research and development activities. This kind of state support may encourage business representatives to invest more in scientific activities that could help the country move smoothly to a research-based economy.

The non-linear dynamics of South Australian regional housing markets: A machine learning approach

Traditional linear models often struggle to capture regional housing markets' complex, non-linear dynamics. This study addresses this gap by developing and applying advanced machine learning algorithms to unlock unique insights into South Australian housing price behavior. Leveraging a comprehensive dataset of over 10,000 regional house sales from 2010 to 2021, we explore the non-linear relationships between housing prices and microeconomic factors (e.g., house size, land area, building quality) and socioeconomic characteristics (e.g., proximity to amenities and income levels). Our analysis employs a multi-step approach, including feature engineering, spatial data integration, correlation tests, multilevel modeling, and non-linear machine learning algorithms including Decision Tree, Random Forest, Gradient-Boosted Tree, and Artificial Neural Network. The key finding is that machine learning models outperform traditional econometric models in predicting regional housing prices, with higher accuracy and greater goodness of fit. Furthermore, we identify specific non-linear relationships, such as the increasing marginal impact of proximity to the sea on house prices as distance decreases. These findings offer valuable insights for policymakers, real estate professionals, and stakeholders, informing regional planning, infrastructure provision, and economic development strategies. This study sheds light on the complex dynamics of South Australian housing markets and lays the foundation for further research.

Determinants of Health Expenditures: A Case of High Populated Asian Countries

This study investigates the determinants of health expenditure in high-populated Asian countries, focusing on Pakistan and India, as well as the short and long-term effects of health expenditure on economic growth. The main objectives are as; to identify the determinants of health expenditure in Pakistan and India, and to analyze the short-run determinants of health expenditure on economic growth in high-populated Asian countries. Panel data from 2001 to 2019 sourced from the World Development Indicator (WDI) is utilized. The study employs various variables, including health expenditure, population, urban population, unemployment, GDP growth, and school enrollment. Estimations are conducted using the Autoregressive Distributed Lag (ARDL) approach. Findings reveal a significant long-run relationship between health expenditure and population, GDP growth, school enrollment, and unemployment across Asian countries, while the urban population exhibits insignificance. In the short run, population and school enrollment demonstrate a significant relationship with health expenditure, whereas urban population, unemployment, and GDP growth exhibit insignificance. These findings contribute to understanding the dynamics of health expenditure and its impact on economic growth in high-populated Asian countries, informing policymakers on effective strategies for healthcare investment and economic development.