Terms Of Economic Growth Research Articles

Evaluating the efficiency of fiscal responses to COVID-19 pandemic in the OECD countries: a two-stage data envelopment analysis approach

This study examines the relative technical efficiency (TE) of the fiscal stimulus packages introduced by the governments of 38 OECD countries in response to COVID-19 pandemic, using a two-stage data envelopment analysis (DEA) approach. The DEA results indicate that OECD countries are inefficient as they have the potential to save around 54.8% of their fiscal packages while maintaining the same performance in terms of economic growth and unemployment. Costa Rica, Greece, Ireland, Italy, Mexico, and Turkey are found to be fully efficient whereas Canada, Germany, Japan, the USA, and the UK are found to be the least efficient. The Tobit findings indicate that belonging to the EU, public expenditure on education, and population density, are positively correlated to the TE scores. In contrary, general government final consumption expenditure, size of fiscal stimulus packages, and COVID-19 infections rate tend to affect efficiency negatively.

Management of Competitiveness in the EU Member States: The Main Strengths and Weaknesses

The paper's main objective is to investigate the differences in competitiveness among the EU member states. Each nation's competitiveness is determined by its government's management capabilities on the national, regional and local levels and thus poses substantial implications to economic growth. For this purpose, hierarchical clustering as the primary method of investigation was selected. The data mining process was based on extracting GCI score data about individual member states. Based on the GCI score evaluation, the cluster analysis showed two groups of EU member states, according to the 'traditional' division of old member states (OMS) and new member states (NMS). Results showed a statistically significant gap in GCI scores between the OMS and NMS. Furthermore, the within-class variability in the OMS cluster appears to be higher than in the NMS cluster, which underlines growing disparities among old member states. Most significant differences among both groups prevail in the field of institutions, ICT adoption, business dynamism and innovation. Finally, the link between achieved GCI score and average economic growth has been investigated. Contrary to expectations, more developed member states (OMS) showed, on average, relatively lower economic growth rates over the investigated period than the less developed member states (NMS). The results showed a moderately negative link between the GCI score and economic growth, which suggests that a higher GCI score does not mean achieving higher economic growth, whereas member states with lower total GCI scores could outpace the higher ones in terms of economic growth. In many aspects, the EU still resembles two rails in Europe, and a significant gap between OMS and NMS prevails. Relatively higher economic growth of NMS might help reduce the gap over time. However, it may prove a short-sighted, and significant lags in many crucial factors will stiff the competitiveness in the long term.

Trade Liberalization in Nepal: Analysis of Its Impact

The objective of this study is to examine the impact of trade liberalization on Nepalese economy over the period 1990-2018. As per studies, trade liberalization increases the areas and size of foreign trade. Nepal has introduced the economic and trade liberalization policy in mid-1980s and started to liberalize its trade and investment after 1990s. After the adoption of economic liberalization, the flow of foreign trade, economic growth of Nepal has been significantly increasing. The impact of trade liberalization on economy is measured in terms of economic growth, trade tax, industrial GDP and ratio of trade tax to total size of trade of Nepal by applying simple and multiple regression models. In Simple regression model, four equations show a positive correlation between INGDP and import, export, total trade, EOI inflation rate.

Economic Development Analysis: Implications оf Fiscal Independence

Abstract. Introduction. The performance of economic development viewed from a macro perspective has created a dilemma for the government, particularly in terms of economic growth and income inequality, which have an important role but are difficult to go hand in hand. Based on the Tiebout model, fiscal decentralization can be used as a tool to encourage regional fiscal independence in the implementation of economic development which is considered capable of increasing economic growth and holding down the income inequality. The data used are cross-sectional data from 34 provinces in Indonesia for the period 2012 to 2020. The analytical approach used is a panel data dynamic relationship model with PVECM granger causality. Purpose. This study aims to analyze the dynamic relationship between the fiscal independence, economic growth, and income inequality in Indonesia. Results. There’s a long-term causality between fiscal independence, income inequality, and economic growth. In the short term, fiscal independence only affects economic growth significantly but does not affect income inequality significantly. In the long term, economic growth has a positive significant effect on income inequality, while income inequality has an insignificant negative effect on economic growth. In the short-term balance, the variables of income inequality and economic growth have a two-way causality that can influence each other. Conclusions. Increasing the level of fiscal independence in the short term will encourage economic growth, but not significantly in reducing income inequality. However, if the regional fiscal independence continues to be improved and optimizing the absorption of local revenue, the benefits will be felt in the long term.

A gateway towards a sustainable environment in emerging countries: the nexus between green energy and human Capital

The nexus between economic growth (EG) and carbon emission has been examined extensively, specifically in consumption-based CO2. However, the role of human capital, green energy, and sustainable economic growth in determining the carbon emission is yet to be explored specifically from emerging economies. This study aimed to examine the impact of human capital index, green energy, EG in terms of GDP, and square of GDP on carbon emission for long-short run with the help of CS-ARDL. The data for study variables was collected from 1995 to 2018. The study findings confirmed that there exists CSD, cointegration, and slope heterogeneity among the study variables. In contrast, the output through CS-ARDL indicated that the main reason for higher carbon emission in the targeted economies are economic growth under long-short run estimation. Additionally, the role of green energy and human capital index is also constructive in lowering the environmental degradation for both long-run and short-run estimation. Finally, some policy implications are also convassed at the end of the research.

Rethinking the Indirect Taxation of Trust in the Reform of the Italian Tax System

Abstract In Italy, among the priorities of the National Recovery and Resilience Plan (PNRR), a strategic position is taken by the tax reform, which is part of the actions to remedy the structural weaknesses of the country’s system and to stimulate economic recovery aft er the Covid-19 crisis. In this context, in order to design a new tax structure, in terms of economic growth and competitiveness, a legislative rethink of indirect taxation of trusts and other destination constraints is desirable. In fact, the current tax rules of these negotiation models, in addition to giving rise to numerous disputes, oft en discourage their use in regulating new interests and needs.

БІЗНЕС-КЛІМАТ РЕГІОНУ ЯК ЧИННИК ЗАБЕЗПЕЧЕННЯ СТІЙКОГО ЕКОНОМІЧНОГО ЗРОСТАННЯ

Despite a number of reforms, Ukraine has not created the necessary environment to stimulate entrepreneurial activity, active investment inflows and economic growth in the regions. The article analyzes the assessment of the business environment of Ukraine according to different world ratings and comparative assessment of the business environment of Ukraine and other countries. Risks for the development of the business environment in Ukraine have been identified. An assessment of the interdependence between the quality of the business environment in the regions of Ukraine and the growth rate of GRP. The analysis of regional features of the quality of the business environment in Ukraine shows positive changes in all regions in terms of ease of business registration, land registration, connection to the grid and difficulties with paying local taxes and the development of electronic services. However, the achieved results have not yet been converted into a stable dynamics of economic growth and increasing the level of Ukraine's competitiveness in the world economy. Among the main problems of business environment development are low level of protection of intellectual property and property of business entities, inefficiency of the judicial system in Ukraine, low level of financial and investment freedom of business, unavailability of credit resources for starting and conducting business. Interregional comparisons of the business environment and economic growth of Ukraine's regions prove that the leading regions in terms of economic growth are characterized by a relatively higher quality of business climate, moreover, in recent years they have increased their position in the regional ranking of ease of doing business. At the same time, the largest group of regions in Ukraine, which still manages to maintain a positive pace of economic development, are outsiders in terms of both the quality of the business climate and the loss of ranking positions. The most difficult situation with the business environment has developed in such industrial regions as Zaporizhia, Poltava, Kharkiv regions. That is, the regions, which have always focused on large enterprises in the industrial sector, have not yet been able to refocus on supporting entrepreneurship and stimulating entrepreneurial activity.

Public Finance on Economic Growth in Terms of Financial Literacy and Human Capital

The purpose of this study is to find out more about the role of public finances on economic growth in terms of financial literacy and human resources shown by the development of education and health infrastructure. We use data for the period 1995 to 2020 with annual data from the OJK and the world bank with adjusted calculations. Where monthly data from OJK related to financial literacy and budget infrastructure is one year and annual data from the world bank covering education development, GDP, and health infrastructure are used as the data we get. We use the ARDL model to understand the causal relationship of each variable. We find that the Indonesian government's infrastructure (IB) budget has a substantial beneficial relationship with GDP in both the short and long term. Development Education in the short term has a substantial beneficial effect on economic development but has a large beneficial impact on GDP in the long run. The same is true for health infrastructure, which has an insignificant positive effect on GDP temporarily but has a sizeable long-term beneficial impact. Financial literacy has a measurable beneficial impact both in the short and long term. Budget and financial literacy are closely related to public finances which have an impact on various sectors of people's lives and ultimately have an impact on economic growth and national economic development in Indonesia.

The Spatial Difference of “Internet plus Tourism” in Promoting Economic Growth

The “Internet plus Tourism” mode, which is the coordination of the internet and tourism, has become a new driving force for regional economic growth. In order to investigate the mechanism and superiority of “Internet plus Tourism” in terms of economic growth compared with the independent effects of the internet and tourism on economic growth, this paper uses the DEA model to calculate the tourism efficiency of 30 provinces in China from 2011 to 2019 and three spatial econometric models to comparatively analyze the independent effects of the internet and tourism with the synergized effect of “Internet plus Tourism” on economic growth. The results show that (1) the overall pattern of the internet is that coastal areas are ranked higher; (2) tourism efficiency presents a polarized hierarchical structure; (3) The effect of “Internet plus Tourism” on economic growth is significantly positive and is significantly greater than the independent effects of the internet and tourism on economic growth; (4) the internet, tourism, and “Internet plus Tourism” have different effects on economic growth in different regions. Therefore, the paper suggests that China should accelerate the integration of “Internet plus Tourism” and realize sustainable economic development.

Controversies and opportunities of two development measures for the advancement of women in Uganda: Formal education and Women entrepreneurship

Aim. The aim of the research is to investigate the relationship between formal education and female entrepreneurship in Uganda. This research hopes to contribute to the literature on education and women’s entrepreneurship in this country. Methods. Data is collected from 109 women through semi structured interviews. These are participants from the agribusiness sector and own businesses ranging from market stalls, retail shops to street businesses. Through the iterative process, emerging themes are analysed and discussed. Results. The research finds that formal education programs and macroeconomic policies negatively impact formal education and female entrepreneurship. Macroeconomic policies such as privatisation and the programs of universal formal education do not incentivize students (specifically female ones) to pursue a full formal education, influencing them to leave schools early for necessity entrepreneurship to meet immediate needs. Conclusions. Even though the study indicates that a formal education demonstrates high outcomes in terms of economic growth and development, the education level attained by women entrepreneurs is insufficient to meet true entrepreneurial success. Furthermore, the macroeconomic environment adds to the challenge of successful women entrepreneurship. Originality. Various economic initiatives have been implemented in the quest for gender parity in education and women empowerment in Uganda since its independence. Statistics have demonstrated an increase in women’s education and empowerment through entrepreneurship, however, such data do not necessarily reflect economic development. The results suggest that the relationship between formal education and women entrepreneurship is more complex and nuanced than previously believed.

Managing research and development process in conditions of economic growth of Kazakhstan: Methods and analysis

This study aims to assess the relationship between R&D and economic growth in terms of their ability to understand R&D management. In the paper, the algorithm of actions was used, which allows ensuring interconnection, sequence of work, validity of the choice of the methods used, and defining key factors over a long period. The following methods of the empirical study were used: analysis of the provision of level development; regional analysis of the data; correlation analysis. Based on correlation analysis the impact of economic growth on R&D was investigated, which is expressed by such variables as the number of organizations engaged in R&D, internal expenditures in R&D, expenditures for technological innovations, number of employees in R&D. The data were obtained from the World Bank, the Eurasian Economic Union, and the statistical yearbook of Kazakhstan for 2009–2019. The results obtained show that all determinants correlate not only with the GDP but with each other as well. According to the findings, viewing the GDP level, there is a positive and negative correlation link between such two factors as ‘the number of research organizations’ and ‘R&D technological innovations’. These coefficients of correlation between GDP and independent factors selected for the analysis are significant, i.e. they can significantly affect the value of the GDP. The obtained results are useful in formulating the R&D development management strategy. AcknowledgmentsThis study has been funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (grant IRN AP08052800 “Intellectual potential of the regions of the Republic of Kazakhstan: assessment and development prospects”).

Potentials of the African Continental Free Trade Area: A combined partial and general equilibrium modeling assessment for Central Africa

AbstractThis study evaluates the potential impacts of the implementation of the African Continental Free Trade Area's (AfCFTA) tariff modalities on tax revenues, industrial production, trade flows, welfare and consumption for seven central African countries. Drawing on data from member states and the Global Trade Analysis Project (GTAP) database, two methodologies are applied in the study. Computable general equilibrium (CGE) and partial equilibrium (PE) are used to evaluate the long‐ and short‐term effects respectively. The results show that the reduction in tariff barriers provided by the AfCFTA will lead to a decrease in tariff revenue in some Central African countries in the short term. However, in the long term, these losses remain largely offset by the socio‐economic benefit issues generated by the implementation of the agreement, particularly in terms of economic growth and the well‐being of the region's population. To cub these revenue deficits, this paper encourages Central African countries to ratify and implement the AfCFTA. Also, they should diligently adopt all necessary reforms that could help reap the potential long‐term gains.

INVESTIGATING THE N-SHAPED ENERGY-ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS IN SAUDI ARABIA

The Environmental Kuznets Curve (EKC) is extensively investigated in the literature, but testing of energy-EKC is scarce in the literature. The testing of energy-EKC is very important for extensive nonrenewable energy users. This research investigated the energy and growth cubic relationship in Saudi Arabia to verify the N-shaped energy EKC from 1970-2019. The estimated long-run parameters of linear, quadratic, and cubic terms of economic growth are found positive, negative, and positive, respectively. Hence, energy-EKC is corroborated in Saudi Arabia in the long run with the first turning point of N-curve at Gross Domestic Product (GDP) per capita of 19277 constant US dollar and the second point at 30880. Hence, the increasing GDP per capita before 19277 and after 30880 would increase energy use and have environmental consequences. The increasing GDP per capita between 19277 and 30880 would decrease energy consumption and is pleasant for the environment. The same behavior of energy usage is found in the short run. Hence, the energy-EKC is also validated in the short run. Keywords: The energy EKC, energy consumption, economic growth, cointegrationJEL Classifications: Q42, O44, C22 DOI: https://doi.org/10.32479/ijeep.11573

Social Startups are growing as well as other startups: evidence from Italy

This paper aims at analysing the economic performance of Social Startups and the other startups to understand if there are any differences. To do this, a population of more than 10000 Italian innovative startups was analysed. Based on specific legislations, these Italian innovative startups were divided into two samples: Social Startups and other startups. Thanks to the data regarding Social Startups and the other startups from 2017 to 2018, this study presents several regression analyses to compare their revenue and employment growth. The regression analyses explain that Social Startups are as efficient as other startup in terms of economic growth, notwithstanding the Social Startups do not pursue only economic objectives. Some explanations of this result are presented in this study.

Directions of development of the public finance management system

Relevance of the research topic. In modern conditions of society development, the restoration of balanced economic growth to improve the standard and quality of life of the population is an important strategic priority of the public financial management system. Achieving this priority involves the implementation of a set of consistent and interconnected institutional changes in the public finance system, aimed at systematically increasing the level of competitiveness of the domestic economy, reducing its dependence on external conditions. Formulation of the problem. The impact of adverse external and internal factors on the domestic public finance system has led to increasing macroeconomic imbalances, reduced domestic consumption and investment. This highlighted the issue of adapting the public financial management system to the new socio-economic conditions of the country's development. Analysis of recent research and publications. The problem of improving the quality of public finance management system is revealed in many scientific studies of domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, S. Kucherenko, L. Levaeva, L. Lysyak, I. Lukyanenko, L. Marmul, V. Makogon,V. Fedosov, I. Chugunov and others. Selection of unexplored parts of the general problem. A new wave of negative external and internal factors, in particular the COVID-19 pandemic, is exacerbating Ukraine's rapid economic recovery. Against the background of the recession, the prospects for economic growth are difficult. There is a high level of uncertainty about the stability and stability of the public finance system. In this regard, an important task is the rapid implementation of adaptive measures of the public financial management system aimed at activating new factors of economic growth. It is necessary to ensure balanced economic development by increasing the level of factor productivity, increasing the efficiency of financial and budgetary tools, improving the institutional structure of the public finance system. Problem statement, research goals. The objectives of the study are: to substantiate the role of public financial management in enhancing the country's economic growth in terms of increasing the impact of negative internal and external factors; identify the features of the public finance management system; to analyze and evaluate the operations of the general government sector of Ukraine. The aim of the study is to reveal the vectors of development of the public financial management system in modern conditions. Method or methodology of the study. To achieve the goal of the article, a set of general scientific and special methods was used: theoretical generalization and comparison; systemic; comparative analysis; scientific abstraction. Presentation of the main material (results of work). The role of the public financial management system in intensifying the pace of economic growth of the country in the conditions of increasing influence of negative internal and external factors is revealed. The peculiarities of the public finance management system are determined. The analysis and assessment of operations of the general government sector of Ukraine is carried out. The vectors of development of the public finance management system in modern conditions are revealed. Field of application of results. The results of the study can be used in the process of reforming the public financial management system. Conclusions in accordance with the article. Public finance management at a qualitatively new level in the context of increasing negative external and internal factors, in particular the COVID-19 pandemic will ensure macroeconomic stability in the country through a combination of tools of the public administration system. An effective public financial management system will create conditions for the country's economic growth.

Spurring Economic Growth in Terms of Happiness, Human Development, Competitiveness and Global Innovation: the ASEAN Case

Happiness, human development, level of competitiveness, and capacity in innovation all play an important role in spurring long-term sustainable economic growth. This study presents the relationship between these factors—happiness, human development, competitiveness, and innovation in the ASEAN region—in how they influence economic growth. To date, there has been a lack of research on this specific issue, and thus it is an interesting and little-known one to study. Panel data were used comprising a combination of time series and cross-sections. The object of the study was ASEAN member countries using the multiple linear regression method. For the years of 2013–2019, we found that overall economic growth had a real impact. The results showed that human development and global innovation are two-way related to economic growth (positive and significant). Conversely, there was an insignificant influence of happiness and competitiveness on economic growth. Competitiveness, in particular, can reduce the level of economic growth. The policy considerations pursued by countries in ASEAN are through the respective governments’ strategic steps to improve the productivity of their populations, because human resources are needed not only as objects but actors in economic activities themselves in managing development.

Monetary Policy Targets and Macroeconomic Equilibrium. Some Theoretical Remarks

Purpose: The article attempts to systematize the strategies undertaken by individual countries (groups of countries) after the 2007+ crisis with regard to stabilizing prices and supporting economic recovery. It is about highlighting the strengths and weaknesses of particular types of strategies as well as opportunities and threats related to their implementation.
 Methodology: In the theoretical analysis, three types of economies were distinguished, using as a criterion the orientation of a given economy towards securing price stability or supporting economic recovery. The classical dynamized AD-AS model, commonly used in macroeconomics, and the SWOT analysis were used as a research tool.
 Findings: The basis for differences in the approach of economic authorities of individual countries to the problem of stabilizing prices or supporting economic recovery is the mandate of the central bank. Depending on the type of strategy implemented by the central bank, individual countries and groups of countries react diametrically to exogenous shocks, which results in different results in terms of economic growth and employment.
 Practical Implications: The results can be utilized by central authorities (central banks) in formulating assumptions and forecasts of monetary policy.
 Originality / Value: The paper contains an original division of countries / groups of countries due to their orientation in the field of medium-term stabilization policy. The analyzes of these countries are also original, having no equivalent in the world literature on this subject.

Analysis of the role of universities in supporting sustainable growth: The case in Indonesia

Indonesia is predicted to experience a demographic bonus period in 2030. For Indonesia to get the maximum benefit from this demographic bonus, the availability of abundant productive-age human resources must be balanced by improving the quality of education and skills. Educated and competitive human resources need to be developed in terms of the number and quality of competitiveness in supporting sustainable growth. In this research, the authors want to see the role of universities in influencing economic growth. The role of universities can be measured by the number of universities, college enrolment rate, and the Human Development Index (HDI). The analysis used in this study is the multiple linear regression analysis. The research data used are panel data from 34 provinces in Indonesia with the studied year of 2015 - 2018. The result shows that the role of universities in Indonesia is not yet optimal in supporting Indonesia’s economic growth in terms of the number of universities and college enrolment rate.

Immigration diversity and regional economic growth

The present paper empirically examines the impact of international immigration on the growth of Italian provinces over the period 2003–2017 by analysing the impact of two main components of international immigration: the share and the diversity of immigrants. The main findings reveal that increases in birthplace fractionalisation and in the share of immigration significantly fostered output per capita. Moreover, we investigate whether the economic effects of these two dimensions of international immigration differ across Centre-North and South provinces. The analyses indicate that in the high-income Central-Northern provinces, both dimensions of immigration lead to benefits in terms of economic growth, while in the South, where there is still a lower socio-economic and institutional level of development, only the size effect related to the share of immigration seems to have growth-enhancing effects. In contexts characterised by a strong internal dualism, such findings are especially relevant as they give evidence of self-reinforcing dynamics, which contribute to further widening internal disparities.

Maluku Economic Recovery During the Covid-19 Pandemic and Entering the New Normal Era

Covid-19 globally has affected all sectors, and the lock down has aggravated world economic conditions, including Maluku Province. The research objectives are (1) to describe the sectors affected by the Covid-19 pandemic in terms of economic growth; (2) Describe the impact of covid-19 on the workforce; (3) Knowing the policies carried out by local governments in handling the socio-economic impacts of Covid-19; (4) Formulating a strategy for economic recovery from the impact of covid-19 and entering the new normal era. The method used in this research is descriptive quantitative, from the data published by competent government agencies. The results showed (1) out of 17 sectors, there were 13 sectors that experienced a contraction in economic growth, showing that the initial impact of Covid-19 in Jakarta had contributed to the economic contraction in Maluku in tw 1 and tw-2, economic growth declined due to PSBB in the city. Ambon. (2) the number of unemployed increases with the number of layoffs and workers who are laid off. (3) Regional government policies are very maximal in terminating the chain of transmission but have not been able to reduce the level of spread, the longer efforts to deal with the transmission chain through PSBB will have an increasingly impact on the economy and (4) Economic recovery strategies can be implemented through five activities in 2020 in the third quarter to to IV and in the year 2021