Economic Growth Performance Research Articles

Does Fiscal Deficit Matter for Economic Growth Performance of Indian States?


 Considering a standard economic growth model, this study tries to empirically evaluate the effects of fiscal deficits on the economic growth of 14 major Indian states from 1980-81 to 2019-20. The panel fixed effect regression establishes that gross fiscal deficit (GFD), tax revenue, and inflation rates have a significant adverse impact on economic growth. In contrast, private investment, gross enrolment ratio (GER) in primary education, and the adoption of Fiscal Responsibility Legislations (FRLs) have favourable effects; non-tax revenues, GER in secondary education, and economic policy reform (EPR) didn't show any significant effect. Where FRLs were enacted, fiscal deficits showed a positive impact on growth in the post-FRL period. Further, we find a threshold effect of fiscal deficit on growth, implying that when GFD lies within a specified threshold, it has a positive impact; beyond this limit, it impedes states’ economic growth.

Explaining U.S. economic growth performance by macroeconomic governance, 1952–2018

Explaining U.S. economic growth performance by macroeconomic governance, 1952–2018

Sectoral Exports and Economic Growth Performance: Evidence from Nigeria

The paper seeks to investigate the contribution of key sectoral exports namely; Agricultural, Manufacturing and Services to the growth of Nigeria’s economy using annual data from 1980 to 2021. The Autoregressive Distributed Lag (ARDL) model was employed to estimate the long and short run relationships. The result proved that the Agricultural exports do not contribute to growth of Nigeria’s economy, thus the category of the primary exports from Nigeria may not be important in achieving economic growth of the country as compared to the Manufacturing and Service sectors which indicated a positive relationship in terms of contribution to growth in Gross Domestic Product (GDP). The study, however, suggests that; the Agricultural/primary Sector which provides food and raw materials could be more beneficial to the economy if utilized domestically to produce finished or semi-finished products for consequent exports; thus, government should provide more priority to infrastructural development to boost the development of the Manufacturing and Service Sectors. The Service Sector, if harnessed could have the potential of significantly generating foreign exchange earnings for the country through exported services to other countries and the development of domestic micro services companies.

The Role of Women in Rural Development in Bangladesh

Bangladesh has significantly maintained its robust economic growth performance. According to the World Economic Forum's Global Gender Gap Report 2022 Bangladesh is the most gender-equal country among South Asian nations. Bangladesh ranked 71st out of 146 countries on the Global Gender Gap Index 2022 with a score of 0.714. According to further information in the same report, Bangladesh has already reduced the gender gap by 72% from 2008 to 2020. Obviously the rural women have the contribution towards the development. This article is narrative reviewed by the author’s experience, existing theories, and models. Here the authors provide the information based on the reviewing concern book, scientific journal, national and international newspaper cutting as well as the concern websites. Results are based on qualitative rather than quantitative level. The paper based on the contribution of women in rural development that could be divided into the following three major categories- a) the role of women in agriculture; b) Food security; and c) The role of women in rural poverty alleviation. The paper reviled spontaneous participation of women in all developmental activities of the country is contributing to agricultural progress, food security, and assurance and poverty reduction, which is directly contributing to achieving Sustainable Development Goal one (Poverty Alleviation) and two (Hunger Free).

The impacts of fuel exports on sustainable economic growth: The importance of controlling environmental pollution in Saudi Arabia

Identifying pathways relevant for achieving sustainable economic growth has been established as a major macroeconomic agenda for Saudi Arabia. Since this Arab nation is the largest crude oil exporter in the world, fuel export revenues can be assumed to substantially contribute to the growth of its economy. On the other hand, Saudi Arabia is also considered a natural disaster-prone country whereby further degradation of the environment can possibly limit the nation’s prospects of achieving economic growth sustainability. Hence, this study aims to assess the impacts of fuel exports, environmental pollution, capital formation, and labor force expansion on economic growth in Saudi Arabia during the 1969–2020 period. It contributes to the literature by innovatively investigating the independent as well as the joint impacts of fuel exports and environmental pollution on Saudi Arabia’s economic growth performances. Furthermore, an additional literature gap is addressed by predicting the growth response paths concerning both positive and negative shocks to the levels of the potential economic growth facilitators considered in this study. Overall, the regression findings reveal that higher levels of fuel exports, capital formation, and expanision in the labor force size boost economic growth in Saudi Arabia in the long run. In contrast, greater carbon dioxide emissions-related environmental pollution is witnessed to dampen the nation’s long-run growth level. Interestingly, fuel exports and environmental pollution are jointly evidenced to exert long-run growth-inhibiting impacts as well. Moreover, the regression outcomes also appear to be robust when ecological footprints are considered as an alternative indicator of environmental pollution. Finally, the causality estimates support the regression findings by exposing the existence of unidirectional causal influences of fuel exports, environmental pollution, capital formation, and labor force participation on the economic growth figures of Saudi Arabia. Therefore, considering these results, several sustainable growth-facilitating policies are suggested.

BRICS-T ÜLKELERİNDE POLİTİK İSTİKRAR VE EKONOMİK BÜYÜME İLİŞKİSİ ÜZERİNE BİR ARAŞTIRMA

In recent years, it is seen that studies on the strong relationship between political stability and economic growth have increased. Political stability is an important element in the policies that political actors or political parties will implement during their term of office. İn this study, 43 percent of the world's population and the world's economy is estimated to comprise 30% BRICS-T countries to investigate the relationship between political stability and economic growth performance is the main purpose of the study. For this purpose, the relationship between political stability and economic growth in the BRICS-T countries, which are among the developing countries, in the 1996-2020 period was tested with the panel data method. In the study, Durbin-Hausman cointegration tests were used for the cointegration relationship when determining the degree of stasis of variables with the second generation CIPS unit root test. Finally, the second generation AMG estimator test was used to determine the coefficient and direction of the long-term cointegration relationship of variables. According to the results of the analyzes, it was found that the impact of political stability, inflation and general government expenditures on economic growth in the BRICS-T countries is statistically significant and negative.

Bearing the Scars: Access to Growth and the Age of Knowledge

In this third paper in a series of four, the focus is to investigate the modern UK economy, considering a wider scope than economic growth and national performance. Since the beginnings of sustained economic growth, standard of living has increased dramatically in the UK and life expectancy and health outcomes have improved. Economic growth has proven itself throughout history, and globally, as a transformative force to lift people out of poverty and improve standard of living. However, significant inequalities, which are contributing to negative health, social and economic outcomes for groups of the population, persist. A growing nation has become a divided nation.

Nuclear energy consumption and energy-driven growth nexus: a system GMM analysis of 27 nuclear utilizing countries across the globe.

While the general environmental quality level continues to decline in today's global economy, aggregate energy consumption levels are often linked to countries' economic growth and environmental performances, thereby overlooking the specific roles of individual energy types. Thus, this study focuses on examining nuclear energy consumption-growth nexus in 27 selected nuclear energy-consuming countries across the globe. The system GMM estimator was applied to available post-2008 global financial crisis data spanning from 2010 to 2020 while accounting for influential factor inputs (labor and capital) within the framework of the traditional growth model. The results posit that both capital and labor significantly induce economic growth levels among the countries, while nuclear energy consumption is not a significant driver of growth levels despite some evidence of its positive roles. Hence, more investments in nuclear energy production are recommended to trigger an overall consumption level that will not only yield significant desirable economic growth impacts among the countries but also enhance possible environmental benefits in contrast to the growing environmentally detrimental fossil energy consumption among the countries.

The impacts of environmental regulation on regional green productivity growth in China: from the perspective of local-neighborhood effects

It is of great theoretical and practical implications for developing countries to achieve the win-win for economic growth and environmental performance. Extant studies focus on the local effect of environmental regulation, but ignore the neighborhood effect. This study tries to fill the gap from both the theoretical analysis and empirical test. We construct the theoretical framework of the local-neighborhood effect of environmental regulation on regional green productivity growth (GPG). Based on the panel data of 237 cities in China from 2011 to 2020, we employ the spatial panel models to empirically examine the local-neighborhood effects of environmental regulation on regional GPG. We further use the mediating effect models to examine the mechanism of environmental regulation affecting neighborhood GPG. The results demonstrate that both the local and neighborhood effect on regional GPG are U-shaped. The difference is that the inflection point of neighborhood effect is larger than that of local effect. The stringency of environmental regulations implemented by most cities in China is on the left side of the inflection point of the U-shaped curve, which leads to the inhibition of local and neighborhood GPG. Moreover, both green technology spillover mechanism and pollution transfer mechanism play a significant mediating role in the neighborhood effect of environmental regulation. The competition between these two mechanisms determines the U-shaped feature of neighborhood effect of environmental regulation. Finally, we put forward policy suggestions for the GPG from the perspective of local-neighborhood effect of environmental regulation.

Linking shadow economy and CO2 emissions in Nigeria: Exploring the role of financial development and stock market performance. Fresh insight from the novel dynamic ARDL simulation and spectral causality approach

First and foremost, the present study seeks to traverse the informal sector characterized by a shadow economy in the presence of financial development, economic growth, and stock market performance on environmental pollution in Nigeria from 1981 to 2019. The dynamic autoregressive distributed lag (DARDL) approach was used to measure the short- and long-run elasticities, while spectral causality is applied to categorize the causal directions. Findings from the study revealed that the structural break unit root test revealed that all variables are stationary at first difference. The ARDL bound test confirmed the existence of long-run association among the used variables. The ARDL long-run results reveal that economic growth, financial development, and stock market performance are significantly responsible for carbon emission in Nigeria, while the shadow economy significantly improves environmental quality in Nigeria. Findings from the spectral causality results show a unidirectional causal relationship between financial development, economic growth, trade, stock market performance, and shadow economy to carbon emission in Nigeria. The empirical findings of this study provide some perceptive policy recommendations to overcome the adverse effect of carbon emissions in the environment.

Analysis of the Spatial Adaptability of Gross Ecosystem Production, Gross Domestic Production, and Population Density in Chinese Mainland

As China is currently in a critical period of transition to green development, a quantitative analysis of the coupled synergy between economic growth, population migration, and environmental protection performance can provide a rational reference for the formulation of macro-policies in relevant regions. Based on these objectives, this study built a matching analysis framework between gross domestic production (GDP) density (GD), population density (PD), and gross ecosystem production (GEP) density (ED) to analyze the spatial heterogeneity of these three indicators among 362 municipal units in different regions of the Chinese Mainland from 2000 to 2020 based on satellite remote sensing images and statistical data. The spatial adaptability between them was explored by employing a center-of-gravity model. The findings of this study show that: (1) the GD, PD, and ED on the Chinese Mainland exhibited varying degrees of spatial heterogeneity on both sides of the Hu Line during the investigation period, with the general feature of being higher in the southeastern region and lower in the northwestern region; (2) the centers of gravity of GD, PD, and ED were all located in Hubei Province during the investigation period. The centers of gravity of PD and GD shifted 79.39 km and 109.72 km to the southwest, respectively, whereas the center of gravity of ED, remained relatively stable during the investigation period; and (3) the center of gravity distances between PD–GD, ED–PD, and ED–GD in 2020 were 99.31 km, 247.52 km, and 346.27 km, respectively, and the percentages of highly matched units ranked among the 362 samples were 72.93%, 23.48%, and 25.69% for GD–PD, GD–ED, and ED–PD, respectively. This study concluded that a synergistic spatial pattern of the population, economic layout, and land use on the Chinese Mainland has not yet been formed. Therefore, this study suggests that future policies should be committed to promoting the northwest Chinese Mainland movement of the center of gravity of GD and PD, as well as the southeast movement of the ED center.

Can Economic Growth and Environmental Protection Achieve a "Win-Win" Situation? Empirical Evidence from China.

Achieving a “win–win” situation regarding economic growth and environmental protection has become a common goal for sustainable development in all countries around the world. As the world’s largest developing country and the second largest economy, China has been striving to maintain economic growth while improving environmental quality to achieve its sustainable development goals. Applying the decoupling approach, a model widely used to quantify the relationship between the environment and the economy, this study analyzed the relationship between the economy and the environment, examining the decoupling performance of economic growth and environmental impacts in 30 Chinese provinces, autonomous regions, and municipalities to investigate whether economic growth and environmental protection have achieved a “win–win” situation. Nighttime light (NTL) data were used to measure the performance of economic growth. In addition, an environmental pressure index (EPI) assessment framework covering 6 primary and 11 secondary indicators was constructed to measure the environmental quality of China over time. First, NTL data proved to be a valid data source for assessing decoupling performance; second, environmental pressure at both the national and provincial levels significantly decreased during the study period; third, the relationship between the economy and the environment has been further improved, and economic growth and environmental protection have achieved a “win–win” situation. These findings offer an in-depth analysis of the decoupling of the economy and the environment in China and serve as a guide for future implementation strategies for sustainable development in various regions.

Oil Subsidy, Economic Growth and Environmental Concerns in the Brics Countries

This research examined the relationship existing between subsidies, economic growth and environmental performance and also tested empirically; the existence or otherwise of Environmental Kuznets Curve (EKC) in four of the BRICS’ countries using the method of Panel Least Squares and Fully Modified Least Squares (FMOLS). The data for this study spanned from 1990 to 2018. The study found among others; the non-significant EKC for the BRICS countries analysed. Trade openness did not increase economic growth of the BRICS significantly, but it significantly fuelled emissions. Capital formation however, positively contributed to economic growth. Subsidies and transfers significantly increased productivity in the BRICS. Subsidy exerted no significant impact on carbon dioxide emission in the BRICS. The study recommends that BRICS countries must reorganise their economies so as to gain more from trade while putting up measures towards reducing the environmental impacts of trade liberalisation. Capital formation needs boosting so as to encourage growth. In addition to the above, more beneficial subsidies which do not raise environmental concerns may be encouraged so as to enhance further economic growth.

The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal

The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal

Does money buy health? evaluation of stock market performance and economic growth in the wake of the COVID-19 pandemic.

The novel coronavirus pandemic of 2019 (COVID-19) has significantly harmed numerous social and economic activities worldwide, drawing researchers and governments’ attention to the problem and tackling it via persistent healthcare measures. The study’s primary purpose is to examine the effects of total coronavirus cases, total fatalities, total recovered cases, unemployment, and trade openness on stock prices and economic growth in the world’s top 39 affected nations. An analysis of the coronavirus outbreaks found that wealthier countries had a well-established healthcare infrastructure, but they were disproportionately affected by the virus. Conversely, the less wealthy nations had inadequate healthcare infrastructures, but they were not as affected as the wealthier countries. Is it possible to buy health with money? That was the question at the heart of the study’s money-and-health curve. The robust least square regression results indicate that an increase in coronavirus cases influences economic growth and stock market performance due to massive healthcare funding distributed globally, sustaining economic and financial activities for a shorter period. However, a continuous increase in coronavirus fatalities depresses the stock market, resulting in financial depression worldwide. Additionally, a rise in overall coronavirus recovered cases has a negative effect on the country’s economic development and stock market performance because of greater uncertainty in economic and financial activities. Case fatality ratios influence economic growth, whereas case recovery ratios decrease economic and financial performance due to greater healthcare concerns across countries. Finally, trade openness is critical in sustaining the country’s economic development and stock market performance in the wake of the COVID-19 epidemic.

Can the economic growth of interwar Latvia be estimated by contemporary national accounts?

ABSTRACT The paper provides an examination of interwar Latvia’s national accounts, checking their usability for estimating interwar economic growth performance. According to the authoritative account of Roses and Wolf [(2010). Aggregate growth, 1913–1950. In S. Broadberry, & K. H. O’Rourke (Eds.), The Cambridge economic history of modern Europe, vol 2. 1870 to the present (pp. 183–207). Cambridge UP.], based on indirect estimation methods, Latvia’s GDPpc growth rate from 1929 to 1938 was the highest in Europe. However, according to Aizsilnieks [(1968). Latvijas saimniecības vēsture, 1914–1945. Daugava.] interwar national income estimates show that the Latvian economy stagnated in the 1930s. This paper’s main findings are that applying historical price indices to the existing interwar output estimates supports the stagnation thesis. However, the national income estimates lack validity and reliability due to unpersistent or unknown methodology. Hence, changes in real output cannot be established without new calculations according to the contemporary System of National Accounts (SNA 2008) framework.

EVALUATING MACROECONOMIC FACTORS AND THEIR INFLUENCE ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM WESTERN BALKAN ECONOMIES

This research aimed to identify and evaluate the impact of some macroeconomic components on economic growth performance. The data applied in the analysis were secondary data, including six countries from 2005 to 2020. The econometric approach applied was the fixed effect regression approach to economic growth as a dependent variable. The study also applied several diagnostic tests and the Hausman test to select between fixed and random effects. The data provided after the analysis show that inflation and foreign direct investment have a significant positive impact, while public debt has a significant negative impact. Moreover, unemployment and population growth have shown statistically insignificant results. The study from the aspect of the original contribution provides arguments and applies two variables that are very little addressed in the context of economic growth. The study results provide critical information for policymakers, economists, and researchers and provide arguments for a sound and proactive debate on these variables.

The political consequences of dependent financialization: Capital flows, crisis and the authoritarian turn in Turkey

Recent debates on financialization in emerging market economies highlight the terms of unequal exchange that they are embedded in, where international capital flows steered by powerful financial actors and transnationalized banks have a major impact on economic growth performance. As a result, many of the small open economies in the Global South have become increasingly sensitive to international market volatilities, as the post-2008 Global Financial Crisis (GFC) episode has shown. Yet, we know much less about the political implications of these interactions. How do unequal financial relations influence political trajectories in emerging market economies? Using process tracing and based on original evidence from Turkey, we find that when GDP growth is dependent on financial inflows under a credit-led growth model, the constraints on the domestic policy space following an economic crisis allowed the ruling party to instrumentalize monetary and regulatory institutions as financial agents of political repression.

Global value chains over business cycles

Global Value Chains (GVCs) now represent a key aspect of economic interdependence across countries. This paper makes two methodological contributions. First, it proposes a framework with which to decompose total production activities at the country, sector, or country-sector level into different types depending on whether they are for pure domestic demand, traditional international trade, simple GVC activities, and complex GVC activities. Second, this work proposes a set of GVC participation indices that improves on measures used in the literature. Upon applying this framework to Inter-Country Input-Output Tables, we find a number of interesting patterns connecting value chains and business cycles. First, the composition of global production has evolved dramatically since 1995. Second, production activities of complex GVC activities comove with global business cycles more than other types of production activities. Third, the level of GVC participation affects the performance of economic growth.

The impact of the digital economy on China’s economic growth and productivity performance

ABSTRACT China’s digital economy experienced a rapid development over the past two decades. How can we systematically measure the contribution of the digital economy to China’s economic growth? Has the digital economy contributed to an increase in China’s total factor productivity? This paper analyzes the impact of the information and communication technology (ICT) development on China’s economic growth since its WTO accession in an aggregate production possibility frontier framework. Our empirical analysis shows that the digital economy has been the most significant contributor to China’s economic growth and productivity improvements over the past two decades. Nevertheless, due to severe capital misallocation across industries and persistent inefficient performance of some non-ICT industries, industries with high investment growth have not been matched by industries with high TFP growth.