Process Of Economic Growth Research Articles

Analysis of Exchange Rate Stability on the Economic Growth Process of a Developing Country: The Case of South Africa from 2000 to 2023

This study examines the impact of exchange rate stability on the economic growth of South Africa from 2000 to 2023, a period characterised by significant political and economic changes. Exchange rate stability is critical for developing countries, affecting key macroeconomic variables such as trade balances, foreign direct investment (FDI), and inflation. For emerging economies like South Africa, maintaining a stable exchange rate can reduce uncertainty in international transactions, foster investor confidence, and support sustainable economic development. This research explores whether consistent exchange rate management has positively influenced South Africa’s economic trajectory, particularly by mitigating the adverse effects of global shocks and domestic volatility. Using the EasyData online database, which contains yearly time series data, the method of analysis adopted by the research is the ordinary least squares (OLS) regression method. The findings show that while exchange rate stability positively impacts GDP, the influence of FDI and political risk is more substantial. These results underscore the importance of fostering a stable economic environment through sound exchange rate policies, political stability, and efforts to attract foreign investments to ensure long-term economic growth.

Is taxation a curse or a blessing? The case of Turkiye

This study aims to reveal whether taxes are blessings or curses based on the distinction between direct and indirect taxes. As in the past, taxation is an indispensable instrument of government policy in today’s modern state administration models. Since taxation is an inevitable phenomenon, designing an effective and efficient tax policy is an important decision process in economic development. This study will serve as a source for formulating an effective fiscal policy. Within the scope of the study, 1998/Q1 period and 2023/Q2 quarterly data for Turkiye are used. The tax curse hypothesis is analyzed using Prais-Winsten and Cumulative Fourier-frequency Toda & Yamamoto Test methods. In addition, the long-run performance of the relationship between the variables used in the model was evaluated by Wavelet Transform Coherence (WTC) analysis. The results of the analysis reveal that direct taxes have a negative impact on economic growth and thus the tax curse hypothesis is valid, while there is no tax curse in terms of indirect taxes. The study also reveals that direct taxes have a devastating effect in economies that are in the middle of the economic growth process and have a high growth rate, but this effect is not permanent and disappears after a while. The results are important in terms of guiding the formulation of government policies and the formulation of effective tax policies, especially for developing countries.

Effects of product and process innovation on growth and unemployment

In economic growth theory, product and process innovations are critical factors contributing to technological progress. This study constructs an economic growth model that considers product and process innovations and theoretically investigates how these two types of innovation affect economic growth and unemployment rates. Using our model, based on Zagler (Int Rev Appl Econ 18:209–224, 2004), we obtain the following three main findings: (1) an increase in the efficiency of product innovation increases both the economic growth and unemployment rates; (2) an increase in the efficiency of process innovation increases the economic growth rate but does not affect the unemployment rate; and (3) a decrease in labor allocation to product innovation and an increase in labor allocation to process innovation in the R & D sector increase the economic growth rate and decrease the unemployment rate depending on the conditions. These findings suggest that to simultaneously raise employment and increase economic growth, we need not only a policy for fostering product innovation but also another policy to improve employment.

Policy lessons from green gdp convergence over five decades: Enhancing sustainability and economic outcomes

This study analyzes the convergence of Green GDP among 160 countries from 1970 to 2019, emphasizing the pivotal role of environmental policies in shaping sustainable economic outcomes. By comparing traditional and Green GDP (includes environmental degradation), this paper identifies distinct economic clusters or “convergence clubs” and reveals how policy-driven changes influence these classifications. The findings highlight the significant impact of environmental policies on economic convergence and propose applicative policy recommendations to foster sustainable growth, making this study essential for policymakers engaged in economic and environmental planning. This study demonstrates the long-term convergence of the selected countries' economic growth, influenced by their disparate commitments to sustainable practices and regulatory frameworks that govern environmental protection. Thus, regardless of the variations across countries and their environmental policies, diverse economic strategies tend to produce similar outcomes in the long term.

The governance architecture of transnational labor regulation

ABSTRACT Working conditions in a global context reveal a dramatic reality for workers in the Global South. In conjunction with the prevailing process of capital accumulation and economic growth and the new forms of poverty that accompany it, some contributions generate the image of an unregulated world of labor relations and a powerless workforce. Either the weaknesses and gaps in cross-border labor regulation are used to outline an almost insoluble problem, or a return to the salvation of the nation state is called for. The reaction to this view often leads to an exchange of blows and results in a dichotomous debate. Instead, this article sheds light on the historical complexities of national to transnational labor regulation, from the establishment of the first international trade union secretariats to modern multi-stakeholder agreements. Based on a historical analysis, this article argues that a gradual institutionalization can be observed over 130 years, while revealing a complex transnational regime-like governance architecture. Drawing on the Ecology approach, a framework is developed to capture this complex structure. It is shown that, despite the expansion of governance structures, there is a lack of legitimized control, sanction and enforcement mechanisms to comprehensively counteract labor rights violations.

A Year Older, A Year Wiser (and Farther from Frontier): Invention Rents and Human Capital Depreciation

Abstract We look at how the arrival of an invention affects wage returns and the probability of moving out of employment for white- and blue-collar co-workers of the inventor. First results suggest that older workers are hurt by the arrival of an invention. This negative effect disappears when we control for education and, in particular, for the time since obtaining the last formal degree, that is, distance to human capital frontier. If anything, this effect is slightly higher for non-STEM than STEM-educated co-workers. This result suggests that retraining programs could be helpful in making the process of creative destruction and economic growth more inclusive.

Study of the Impact of Inflation, Money Supply on Economic Growth

In a complex and volatile economic environment, the stability and sustainability of economic growth have always been the focus of attention for Governments and economists. Economic growth is not only a matter of national prosperity and stability, but also has a direct impact on the quality of life of the population and the overall well-being of society. However, the process of economic growth is often influenced by a variety of factors, among which inflation and money supply are two crucial economic variables. This paper selects the relevant data of China's consumer price index CPI, broad money and quasi-money supply M2 and gross domestic product GDP from 2003 to 2022 as the corresponding variable indicators, constructs the multiple linear regression model, and conducts the significance test for the model through statistical inference test, econometrics test, and other methods and makes relevant corrections to the model, and then arrives at the optimal model. The analysis shows that there is a close relationship between inflation and money supply, and inflation is an important factor driving China's economic growth, while changes in money supply have a relatively small impact on China's economic growth, and in the long run, inflation has a significant negative impact on economic growth, while money supply has a significant positive impact on economic growth.

Modelling the growth of the network value

We investigate the evolution of network effects, specifically focusing on the emerging paradigm of third-generation networks known as group-forming networks (GFNs). In contrast to traditional views where network value adheres to Metcalfe’s quadratic growth or Sarnoff’s linear growth, GFNs, such as social networks and community-centric platforms like Apple, Microsoft, and Google, exhibit a distinct exponential growth pattern in network value as postulated by Reed’s hypothesis.Unlike conventional network science, economic perspectives on network effects do not necessitate precise knowledge of the network topology. Instead, they often align with mean-field models akin to those found in statistical physics. Recent empirical studies challenge earlier assumptions, revealing that many GFNs have undergone exponential or notably superquadratic growth, deviating significantly from established models based solely on user and link counts.This paper introduces a simplified model aimed at capturing the growth dynamics of marketable groups within a network comprising n users. The model explores various hypothetical mechanisms governing the expansion of these groups, and through rigorous analysis and simulation, we uncover compelling evidence that the observed growth in GFNs surpasses traditional quadratic models. Our findings challenge existing notions, suggesting a new framework for understanding the intricacies of network growth dynamics, and providing solid analytical and conceptual foundations for the recent explosive processes of economic and financial value growth of networks that exploit the formation of groups.

Analysis of the optimal inflation rate in the economic growth process of a developing country: The case of South Africa

The consensus is that price stability promotes sustainable economic growth while excessive inflation harms growth. This study assesses the linkage between inflation and economic growth in South Africa to determine the optimal inflation rate threshold for the sustainable growth of the economy. Quarterly data from 1995 to 2022 was analysed through the ARDL and threshold regressions. The ARDL and threshold regressions estimate established a relationship between inflation and economic growth and computed the optimal inflation rate threshold for economic growth at 6 percent. The results also established that both the repo rate (repurchase rate) and real effective exchange rate have a negative relationship with economic growth. The Toda-Yamamoto causality test result indicated a unidirectional causality runs from inflation to economic growth. These results are crucial for the South African Reserve Bank to discharge its monetary policy functions to attain and maintain price stability. Therefore, this study offers the Bank a roadmap for targeting an inflation rate that aligns with the nation’s long-term objectives for sustainable economic growth.

Does financial development and economic growth matter for services export? Cross-country evidence from OECD countries

The unprecedented growth in the export of services and its accompanying economic incentives has invited discussions on service export determinants. Against this background, the present article is an attempt to test whether the contemporary theories on causal links between exports, financial development and growth hold for services export. For realizing the objective, we employed the panel cointegration technique for Organization for Economic Co-operation and Development (OECD) countries over a period of 23 years (2000–22). Findings of both first and second generation cointegration test indicate a long run equilibrium between services export, financial development and growth. However, there are differences in the short and long association, as outcomes of panel auto autoregressive distributed lag (ARDL) approach show financial development to be significant determinant of services export only over long run. Additionally, granger causality test suggests a feedback mechanism prevalent between services export-financial development, services export-growth and financial development-growth. The empirical evidence offered in the study elucidates the significance of continuously developing the financial markets and institutions for achieving sustained growth in export of services. The bi-directional relationship between the variables also presents an opportunity to strengthen economic growth and financial development process through policies aimed at expanding services export.

ECONOMIC GROWTH, RENEWABLE ENERGY, AND INFLATION: INTERCONNECTIONS OF A TRIANGLE

The primary objective of any nation's economy is to achieve economic stability and a high standard of living. This can be attained through sustainable economic growth. However, global economic competition often brings about challenges, one of which is the increasing demand for energy products driven by population growth. Historically, this demand has been predominantly met by fossil fuels, but due to resource depletion and environmental concerns, there has been a growing interest in alternative energy sources. This shift towards renewable energy has become a global trend. The energy sector serves as a key indicator of a nation's prosperity and development, with renewable energy production, transportation, and costs being vital metrics of development. For Turkey, like many developing nations, investing in renewable energy is crucial for sustainable growth. This study explores the relationship between renewable energy, economic growth, and inflation in Turkey from 1975 to 2022. It examines the process of economic growth in the first part, followed by an analysis of energy dynamics and inflation in subsequent sections. The study employs unit root tests such as ADF and PP, along with the Toda-Yamamoto causality test, using available data. The final results are then interpreted.

شرایط تشکیل شرکت‌های سهامی در نظام حقوقی افغانستان

In Afghanistan's legal system, after the approval of the Law of Commerce in 1336 AH and the creation of numerous facilities in trade sector, various commercial companies were established, one of which is a corporative company. After the implementation of the law on corporative and limited liability companies in 2015, corporative companies compared to other commercial companies, considering the purpose and subject that the legislator has considered for it and the special attention that he paid to their introduction and legalization, and also the reception of these forms in economic and commercial activities, they have a distinguished and worthy position. Therefore, due to the important role that these companies have in economic development, they have attracted the attention of many people in society, but unfortunately, the lack of knowledge about how to form and align it with the needs of the society has created problems for some members and businessmen and the process of economic growth has been delayed. In this article, an attempt has been made to clearly explain the obligatory conditions for the establishment of corporative companies, which include the consent of partners, the preparation of statute, and formal procedures, in order to increase the level of awareness of businessmen regarding the creation of such companies.

Does Internet Use Affect Air Pollution? Evidence from OECD Countries

This study aims to analyze the relationship between the use of the internet, which has an important place in information and communication, and air pollution (Carbon Dioxide Emissions-CO2). In this context, the relationship between the variables for the 1994-2019 period in 28 OECD countries selected was tested with the help of a panel data analysis with Fourier functions (Fourier unit root test, panel Fourier cointegration test and panel Fourier causality test). The results of the analysis show that internet use reduces air pollution, while economic growth increases air pollution. The results of the Panel Fourier Granger Causality test revealed a bidirectional causality relationship between internet use and air pollution and a unidirectional causality relationship from air pollution to economic growth throughout the panel. The analysis results present a policy proposal to the governments of OECD countries that they can reduce air pollution by investing in information and communication technologies (ICT) in their economic growth processes.

Relationship between banking infrastructure, innovation and economic growth in Kazakhstan

Today, the development of financial technologies and their application in the banking sector have changed the processes of economic growth in general and commercial banks in particular, giving them an innovative orientation. The aim of this study is to investigate the relationship between the banking infrastructure, innovation, and economic growth in Kazakhstan based on panel data. The study relies on information extracted from annual publications issued by the National Bank of Kazakhstan, the World Bank Database, and the Bureau of the National Statistics of Kazakhstan from 2004 to 2022, and also uses a regression model. Within this framework, variables used in the study, the number of ATMs, the number of bank branches, and the share of innovative products, are explanatory variables, and the gross domestic product per capita is the dependent variable. The study showed that both business innovations and the prevalence of ATMs have a significant and noticeable impact on the economic landscape of Kazakhstan, as evidenced by the impressive value of the R-square of 0.890. Moreover, the regression model demonstrates reliable stability and reliability, which is confirmed by the p-value of 0.001. In light of these findings, it is important to contribute valuable insights and evidence-based recommendations to enhance Kazakhstan’s economic growth strategy by leveraging the synergistic potential of its banking infrastructure and innovation ecosystem. AcknowledgmentsThe study was funded by the Committee Science of the Ministry of Science and Higher Education of the Republic of Kazakhstan “Investigating the impact of macroeconomic, political, and digital processes on financial sustainability of Kazakhstan” No. AP19674948.

India’s Economic Growth since the 1980s and the Role of the State: An Alternative Perspective

It is imperative to explore the contribution of the Indian state to the country’s impressive long-term growth performance during the free-market era, given the looming demand deficiency problem arising from this iniquitous growth process. Drawing on Marx’s idea of circuit of capital, this article investigates the various ways in which the state contributes to the process of accumulation and economic growth, especially in the context of India during the period of market-oriented reforms. Additionally, this study aims to trace the changing nature of interventions of the Indian state to ascertain the domain and extent of its withdrawal and continued presence. Furthermore, it investigates the interventions undertaken by the Indian state to sustain or cushion the growth momentum at times of economic downturn during the free-market era. JEL Classification: B51, E62, O11, P16

Toda-Yamamoto Causality Test Between SMEs Loans And Economic Growth: Evidence From Turkiye

In Turkey, SMEs make up the great majority of businesses. Due to their contributions to production, employment, innovation, and export, SMEs are crucial to the process of economic growth. Yet, SMEs' production operations are hampered by financial insufficiencies, which weaken the link between them and economic expansion. For SMEs, who must depend on external financing because of equity capital deficiencies, the loan system is crucial. With the use of Turkey as an example, this study examines the connection between SME loans and economic growth. Analysis was conducted for three different categories, namely loans extended to micro, small, and medium-sized enterprises. Quarterly data for the 2007Q1-2022Q2 period were considered and the Toda-Yamamoto causality test was used. It was determined that the causal relationship between SME loans and economic growth differs depending on the size of the enterprises. The relationship between loans extended to micro-enterprises and economic growth is unidirectional and the direction of the relationship is from growth to loans. Although there is a bidirectional relationship between loans extended to small enterprises and economic growth, it has been found that there is no causal relationship between loans extended to medium enterprises and economic growth.

Assessing the dynamic impacts of climate change adaptation and clean energy innovations on economic growth in OECD countries

AbstractThis paper examines whether accelerating climate change adaptation and clean energy innovations is an effective way to promote sustainable development and mitigate environmental risks. Based on this, the main purpose of this study is to investigate the potential effect of climate change adaptation and clean energy innovations with casual factors of social, political, human development, environmental, and climatic determinants as drivers of economic growth in 38 Organization for Economic Co‐operation and Development (OECD) countries from 1990 to 2020. Employing the system‐generalized method of moments (GMM) method, this study shows that causal factors of social, political, educational, and environmental development have a positive effect on the economic growth process. Additionally, the interaction between climate change adaptation and temperature has a constant positive impact on economic growth. The findings highlight that policymakers should thoroughly evaluate the potential impacts of the climate change adaptation process and clean energy innovations in all aspects and implement measures and approaches that promote sustainable development, increase the adoption of environmentally friendly technologies, and address the challenges posed by climate change.

Moderating role of government effectiveness and innovation in sustainable economic growth relationship in Middle East & North Africa countries

AbstractThis article examines the impact of government effectiveness (GE) and technological innovation on economic growth and environmental degradation in Middle East & North Africa countries. The study utilizes panel data from the period of 2002–2020. The findings indicate that there is a significant and positive relationship between innovation (INV) and CO2 emissions (0.0244), while GE has a significant and negative impact on CO2 emissions (−0.5753). In a similar vein, it can be observed that both INV and government efficacy exert a substantial and favorable influence on the process of economic growth (0.0353 and 0.0773). Furthermore, the interaction of INV and GE showed a noteworthy moderating effect on CO2 emissions (−0.1581). Conversely, it exhibited a more pronounced positive influence on economic growth (0.1122). The study highlights that synergizing INV with GE is essential for attaining sustainable economic growth in the studied area.

Should We Pursue Green Economic Growth?

Environmentalists have long claimed it is unjust for the state to prioritize economic interests over environmental ones by sacrificing ecosystem integrity and functioning to unsustainably expand the economy. Recently, mainstream environmentalists have moved to a more conciliatory approach highlighting the common ground between environmental and economic goals. They today claim processes of economic growth and development can be made just if they become green. This paper explores the question: should states pursue “green growth”? Although some critics claim green growth is impossible, I maintain it is. I theorize three conditions that must be met for an instance of growth to be truly considered green. That a development project is green, however, does not automatically ensure it is just. Justice considerations remain in adjudicating the competing interests of different groups of stakeholders. I then examine four reasonable approaches to resolving controversies over the pursuit of green growth: cost-benefit analysis, sufficientarianism, democracy, and pluralism. I conclude a liberal pluralist form of decision-making is best for ensuring fairness.

Private Sector Financing of Public Infrastructure, Exchange Rate Dynamics and, Economic Growth Process in Nigeria

This study examined the nexus between private sector financing of public infrastructure, exchange rate dynamics and economic growth in Nigeria through the application of unit root, cointegration test, and granger causality. The result of the cointegration techniques suggests the existence of long run relationship among the variables. Granger causality result show that economic growth plays a pivotal role in driving infrastructure investment. However, the immediate feedback loop from infrastructure investment to economic growth is less clear, possibly due to the time lag inherent in the realization of infrastructure benefits. Other economic factors like interest rates, exchange rates, inflation, and FDI are influenced by broader macroeconomic and global conditions, showing less direct causality with infrastructure investment and economic growth in the short term. It is therefore recommended that Government at all levels must promote Public-Private Partnerships (PPP) to leverage private sector expertise and financing in infrastructure projects. Clear and transparent PPP frameworks will attract more private investments. Additionally, the Central Bank of Nigeria (CBN) should carefully manage interest rates to balance economic growth with inflation control. High interest rates can deter private investment, so a balanced approach is necessary