Stimulating Economic Growth Research Articles

The Belt and Road Initiative's impact on tourism and heritage along the Silk Roads: A systematic literature review and future research agenda.

This is a systematic review of the literature on the Belt and Road Initiative (BRI) and its impact on tourism and heritage in participating countries along the Silk Roads. China launched the BRI in 2013 with the aim of promoting global trade and stimulating economic growth through the development of infrastructure and cultural cooperation. This review examines studies for the period from 2013 to 2023, focusing on key themes such as tourist flows, destination development, urban renewal, heritage preservation, and cultural route revival. The systematic review follows the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, incorporating 56 relevant documents that cover both tourism and heritage domains. The findings highlight substantial potential for the development of new tourism products and destinations, improved urban renewal, and the preservation of cultural heritage, provided that integrated policies, public-private collaboration, and equitable community participation frameworks are implemented with attention to ecological limits. However, the review also identifies significant challenges, including financial imbalances, uneven access to benefits, social disruption, cultural commodification, and environmental degradation. Addressing these issues requires careful, context-specific planning. The study concludes with a proposal for a future research agenda that includes exploring underrepresented regions, developing sustainable tourism models, and fostering interdisciplinary research to ensure a balanced approach to economic development and heritage preservation. This review's findings provide valuable insight for policymakers, tourism officials, and cultural heritage managers, guiding the development of policies that balance economic growth with the preservation of cultural and natural heritage sites. This research contributes to the academic discourse by elucidating the complex interplay between the BRI and the Silk Roads' tourism and heritage, offering a pathway for sustainable and inclusive growth.

Stimulating Economic Growth through Investment Instruments

Stimulating Economic Growth through Investment Instruments

Інструменти грошово-кредитної політики воєнного часу

Wartime poses numerous challenges at the micro and macro levels. One of the key challenges in this context is macro-financial stability. The answer to this challenge can be provided by an effective transmission mechanism of the State’s monetary policy. The aim of the article is to analyze the features of a set of measures taken by the NBU in the period of 2022–2023 in response to the intensification of russian armed aggression in the plane of the transmission mechanism of monetary policy. The article analyzes the challenges of monetary policy in wartime, including financing military needs, ensuring the stability of the banking system, managing international reserves, and exchange rate flexibility. The key measures on the part of the NBU, such as the purchase of government bonds, ensuring the liquidity of the banking system and stimulating economic growth, are highlighted. A significant increase in international reserves, which has become an important factor in macro-economic stability in wartime, is indicated. The specifics of monetary policy in the conditions of wartime, its impact on investment, consumption, and inflationary pressure are considered; the need for close cooperation between the Central Bank and the Government in this area is underlined. Particular attention is paid to the financing of military expenditures and their impact on monetary policy. The measures taken by the NBU to prevent a liquidity crisis and maintain the solvency of banks are analyzed. The contradiction between the financing of the budget deficit and the stability of the national currency is considered. The need to maintain macro-financial stability through a high discount rate and exchange rate adjustment is indicated. The importance of maintaining the stability of the financial system in wartime conditions is emphasized. The proposed study can be useful for researchers and analysts of monetary policy, central banks, governments, and international financial organizations. Prospects for further research are proposed in the direction of integration of Ukraine’s monetary policy in the context of development of the national economy at the post-wartime stage of development.

Does Petroleum Products Pricing Stimulate Economic Growth in Nigeria? An Empirical Investigation Applying ARDL Approach

The rising prices of petroleum products and energy in Nigeria, coupled with a surge in poverty and a decline in living standards, necessitate an investigation into how the pricing of petroleum products has impacted Nigeria’s economic growth from 1990 – 2022. To achieve the purpose of the study, data on growth rate of gross domestic product, premium motor spirit price, automotive gas oil price, household kerosene price, compressed natural gas price and crude oil price were sourced from the World Bank and Petroleum Product Pricing and Regulatory Agency (PPPRA) and analysed by employing the Auto regressive Distributed lag (ARDL) method. Our results and findings revealed that: Prices of Premium Motor Spirit, automotive gas oil, dual purpose kerosene and crude oil were all negatively and marginally related to economic growth in the long run. Only price of compressed natural gas was positively but marginally related to economic growth. This implies that petroleum products prices had retarding effect on economic growth in Nigeria in the long run. In the short run, premium motor spirit and automotive gas oil had mixed effect on economic growth while price of household kerosene and price of crude oil were positively related to economic growth but price of compressed natural gas were negatively related to economic growth. Petroleum products prices proxied by prices of Premium Motor Spirit, Automotive Gas Oil, Household Kerosene, Compressed Natural Gas and Crude oil had less impact on economic growth in the long but had serious implications on economic growth in the short run in Nigeria over the period of the study. Based on this conclusion, the study recommended Increase investment in compressed natural gas, proper utilization of crude oil revenue and strengthening existing policies in the oil and gas sector as possible measures towards improving economic growth in Nigeria.

Trade Openness and Economic Growth of Nepal: An Econometric Analysis

Background: The relationship between trade openness and economic growth has been a subject of empirical investigation- a multifaceted and evolving issue in the context of Nepal which is a highly import-based economy. In this background, the results of the exploration of the relationship between trade openness and economic growth would be relevant to suggest that policymakers in adopting the policies and boosting the available capital and labour to attain the benefits of trade openness. Objectives: This study examines the impact of trade openness on the economic growth of Nepal considering GDP, human capital, real gross capital formation, and trade openness employing both descriptive and econometric methods. Methods: This study incorporated the annual time series data published by the government of Nepal from the year 1990 to 2021 and analyzed employing the vector error correction model (VECM) along with the descriptive analysis. Results: Descriptive statistics reveal that the model follows a normal distribution, as indicated by the results of JarqueBera, where the p-values of the variables exceed 0.05. The variables demonstrate stationary at the first order and are cointegrated as such vector error correction model (VECM) is employed. The presence of a negative and significant error correction term (ECT) indicates that the variables are adjusting towards long run equilibrium. Furthermore, the stability of the model is confirmed by the cumulative sum (CUSUM) test as the residual plots remain within acceptable boundaries of a 5 percent significance level. Finally, the results indicate that trade openness does not have a significant and pivotal influence on economic growth. Conclusion: Trade openness does not have a significant influence on economic growth. Capital has a significant and positive relationship with stimulating economic growth, however, human capital has a significant but negative relationship with economic growth in the long run in Nepal.

ФАКТОРЫ УПРАВЛЕНИЯ СТРУКТУРНЫМИ ТРАНСФОРМАЦИЯМИ РЕГИОНАЛЬНЫХ ПРОМЫШЛЕННЫХ СИСТЕМ

The article analyzes the management of structural transformations in regional industrial systems. In the conditions of globalization and technological progress, regional industrial systems face the need to adapt to changing economic realities. The purpose of this article is to develop a comprehensive approach to the management of structural transformation of regional industrial systems, taking into account both theoretical foundations and practical aspects. The research analyzes modern theories of economic development and industrial policy; identifies key factors affecting the efficiency of structural change management; develops practical recommendations for managing these processes. The research focuses on the study of factors and methods that can contribute to the effective management of these transformations, taking into account the specifics of the regional context. The results of the study show that successful management of structural transformations requires an integrated approach that includes strategic planning, innovation, human resource development and active government regulation. Various strategies and mechanisms that can be applied to improve change management are discussed, including industrial modernization, improving competitiveness and stimulating economic growth. The article concludes that a comprehensive understanding of the factors influencing structural transformation, as well as the development of effective strategies and policies, is key to successfully managing these processes in regional industrial systems. The need for further research to adapt these strategies to specific regional conditions and peculiarities is emphasized.

Bond market development and economic growth nexus in developing countries: a GMM approach

PurposeThis study examines the nexus of bond market development and economic growth from 2015 to 2022.Design/methodology/approachThe system-generalized method of moments (GMM) is employed on economic growth, government market capitalization, corporate market capitalization, bond yield, interest rate spread, trade openness and investment level.FindingsThe findings show that the government bond market, corporate bond capitalization and bond yield positively impact the gross domestic product (GDP). The results equally reveal a causal link between the corporate bond market, bond yield and GDP.Research limitations/implicationsGovernments should emphasize creating, developing and sustaining bond markets in the economies of developing countries to boost economic activity by promoting structural transformation. Policymakers should improve the implementation of existing rules and regulations while complementing them with new ones since well-developed bond markets provide alternative sources of financing that make economies financially resilient. Policymakers should encourage the issuance of corporate bonds to enhance the efficiency of the capital markets and mobilize funds for economic growth stimulation. Governments and corporations should diversify their sources of funding into the bond markets since the bond yields are favorable to economic growth.Originality/valueEarlier studies presented arguable results on the bond market development and economic growth nexus. Several findings indicate a positive link; others give a negative link between bond market development and economic growth. Some show causal directions, while other reveal none. The contradictory results motivate research. This research results contribute to the literature in that the government bond market, corporate bond capitalization and bond yield positively impact the GDP of developing nations.

Uganda’s Debt Sustainability: Testing The Efficacy of Debt Overhang Theory

The primary objective of this paper is to discern the impact of key economic variables, including primary balance, real interest rate, GDP growth rate, real effective exchange rate, and current account balance, on the long-term and short-term sustainability of the country's debt. Drawing on an array of econometric analyses within the Auto Regressive Distributed Lag framework, the study establishes that a fiscal surplus and sound management positively influence debt sustainability in the long run. However, it reveals that higher real interest rates pose challenges, leading to increased debt loads. While GDP growth's impact remains inconclusive, a fluctuating real effective exchange rate and the influence of the current account balance on debt dynamics emerge as crucial determinants. The study recommends a cautious fiscal approach, interest rate management, economic growth stimulation, exchange rate stability, and a focus on achieving and maintaining current account surpluses as pivotal strategies for ensuring Uganda's long-term debt sustainability. Nonetheless, the study acknowledges limitations related to sample size and endogeneity, encouraging further research to enhance generalizability and address potential omitted variables.

The Research of Comparative Characteristics and Functional Features of the Co-integration of Technological Innovations and business Activity and their Impact on the Formation of Macroeconomic Dynamics

The subject of the study is the causal relationship between the co-integration of technological innovations and business activity, and their impact on the formation of macroeconomic dynamics in the short and long-term. The purpose of the paper is to propose a comprehensive approach to determining the conditions for the co-integration of technological innovations and business activity for their subsequent stimulation of economic growth. The practical examination of the impact of changes in the dynamics of complex indicators of creative development and commercial activity on economic growth is the research’s scientific contribution and novelty. Using vector error correction models, modular root testing models and other econometric methods, the author demonstrated that both business activity and innovation stimulate economic growth in the long-term. In the short-term, there are strong causal relationships, but they are not always homogeneous. The main conclusion is the fact that the results obtained by the author confirm the correctness of using the approach of determining the order of integration and the presence/absence of co-integration between indicators of innovative development, business activity and economic growth. The summary results confirm the existence of a close long-term equilibrium relationship between innovation, business activity and economic growth.

The Strategic Role of the State in Stimulating and Supporting Economic Growth: Tools, Policies and Influence on the Modern Economic Paradigm

"The article examines issues related to the state’s role in economic growth stimulation in the context of the dynamics of global economic and technological development. Even though measures for state regulation of the economy are intended to create favourable conditions for accelerating economic growth, this process is closely related to numerous factors that can have both positive and negative effects on the results of stimulating and supporting economic growth. Also, the article touches on international models in the field of government regulation of the national economy, examines their main features, as well attempts to outline the peculiarities and uniqueness of economic development and the government’s role in the economy in the era of information society."

The Impact of Covid-19 Pandemic on the Financial Performance of Go Public Companies During the PSBB and New Normal Phases

The decline in state tax revenue in 2020 can be attributed to the implementation of tax reductions aimed at stimulating economic growth. This measure primarily aims to provide support to the sectors of the economy that have experienced significant negative impacts due to the COVID-19 pandemic. The government expects that the economic difficulties resulting from the pandemic will result in a decrease in the financial performance of multiple businesses. The Slovin Formula is used for sample size determination. The data underwent analysis through the utilization of the Wilcoxon Signed Rank Test. The study findings suggest that the PSBB measures implemented during the COVID-19 pandemic resulted in higher average DER and receivable turnover, but lower average current ratio and ROA. No significant difference was found in the current ratio and debt-to-equity ratio (DER) among all industrial sectors. Significant variations were observed in the return on assets (ROA) and receivable turnover. No statistically significant variation was found in the current ratio, debt-to-equity ratio (DER), return on assets (ROA), and receivable turnover across all industrial sectors. The Consumer Goods Industry experienced improvements in the current ratio, return on assets (ROA), and receivable turnover, while witnessing a decline in the debt-to-equity ratio (DER). In contrast, the Property, Real Estate and Building Construction, Finance, Trade, Services, and Investment sectors observed a decline in both the current ratio and return on assets (ROA).

Macroeconomic conditions of Russia’s transition to high growth rates: China’s experience

Taking China’s economy as an example, some macroeconomic characteristics of the new economic world order, which ensure GDP growth rate ahead of the US, acceleration of innovation activity and growing influence on the structure of global finances are considered. Attention is drawn to the little-studied effect generated by the difference in financing fixed capital investment: while in China the direct use of budgetary resources for that purpose plays a major role, in the United States the indirect use of similar resources dominates. As a result, there is a lag effect, which allows China (given equal rates of the issue of money) generate a higher growth rate and lower inflation. It is shown that in Russia in 2023—2025 no changes towards China’s macroeconomic characteristics are expected. One reason lies in selective attitude of monetary authorities to the economic theory. First, the hypothesis of the neutrality of money in the long term still prevails. With the help of the shifting mode of reproduction model it is shown that this hypothesis is incorrect: in the long run, money can be both neutral and non-neutral, what matters is how a single cash flow is distributed between investment activities and the production and consumption of non-productive goods. Therefore, the possibility of switching to a policy of monetary stimulation of economic growth is ignored. Second, the macroeconomic theory of managing the transitional processes arising from a sharp acceleration in the rate of GDP is insufficiently developed. Calculations of nonstationary trajectories of GDP rates and inflation have been made, as well as ways to minimize the duration of the transition process and to mitigate inflationary fluctuations have been developed. This largely removes the problem of uncertainty in the transition process, and also makes it possible to control it. As a result, it is possible to transit to accelerated economic growth in Russia.

Recreational Value of Mangrove Ecotourism: A Case Study in Jerowaru East Lombok, Indonesia

Mangrove forest ecosystems confer various advantages to human populations, including but not limited to safeguarding against tsunamis and abrasion, sequestering carbon, serving as fish breeding grounds, and providing recreational opportunities. The provision of welfare and stimulation of economic growth for local population can be facilitated by the recreational or tourism value. Nevertheless, the significance of mangrove forests, encompassing their recreational value, is sometimes overlooked. This research examines the various elements that impact tourists' inclination to engage in the preservation of Mangrove Ecotourism, using Jerowaru Village in East Lombok as a case study. This study employed the Contingent Valuation Method (CVM) to determine the average Willingness to Pay (WTP) of tourists in Mangrove Ecotourism, which was determined to be IDR 10,416.67 (0.68 USD) per visit. The total amount is contingent upon factors such as environmental awareness, educational attainment, and income level.

Rush Farming of Konjac (Amorphophallus Muelleri) Among Novice Farmers in Ciamis Regency, West Java Province, Indonesia: a Descriptive Study

Rush farming among novice farmers because of incomplete information on konjac crop management needs further investigation. Nonetheless, the rush in West Java province has positively impacted farmers and rural economic improvement. This study is intended to identify the factors responsible for the farming of konjac, its implications, and the necessary response. The survey was conducted in Jelegong, Ciamis district, West Java province, using the triangulation method to interview 37 farmers. The finding was that rush farming was triggered by the misinterpretation of incomplete information on cultivation technology and the inaccurate projection of market demand due to excessive forecasting of profits. This rush is probably a phenomenon that is supposed to be maintained carefully because such farming still provides additional income and does not require specific skills. The rush also successfully attracted the interest of new investors to be involved in konjac business and government attention in distributing various incentives. Despite the rush stimulating economic growth in the village, it threatens the supply of other agricultural commodities because konjac has replaced other crops on the same land. This research also found that there are two types of konjac farming in rural society i.e., (i) cultivating konjac without shade is better suited to smallholder farmers with less capital and less maintenance. (ii) Cultivating konjac in the shade is better suited to rich farmers or industries requiring intensive maintenance. Therefore, we suggest that the government issue a map about the site suitability of various crops for the West Java region, allowing farmers to seek advice on the appropriate crop types to grow by region. To meet future demand, it is necessary to combine traditional knowledge mainly on collecting corms (ngabolang) and planting methods with scientific knowledge.

Rush Farming of Konjac (Amorphophallus Muelleri) Among Novice Farmers In West Java, Indonesia: A Descriptive Study

Rush farming among novice farmers because of incomplete information on konjac crop management needs further investigation. Nonetheless, the rush in West Java province has positively impacted farmers and rural economic improvement. This study is intended to identify the factors responsible for the farming of konjac, its implications, and the necessary response. The survey was conducted in Jelegong, Ciamis district, West Java province, using the triangulation method to interview 37 farmers. The finding is that rush farming was triggered by the misinterpretation of incomplete information on farming technology and the inaccurate projection of market demand due to excessive forecasting of profits. This rush is probably a phenomenon that is supposed to be maintained carefully because such farming still provides additional income and does not require specific skills. The rush also successfully attracted the interest of new investors and government attention in distributing various incentives. Despite the rush stimulating economic growth in the village, it threatens the supply of other commodities because konjac has replaced other crops on the same land. This research also found that there are two types of konjac farming in rural society, i.e., (i) cultivating konjac without shade is better suited to smallholder farmers with less capital and less maintenance. (ii) cultivating konjac in the shade is better suited to rich farmers or industries requiring intensive maintenance. Therefore, we suggest that the government issue a map about the site suitability of various crops for the West Java region, allowing farmers to seek advice on the appropriate crop types to grow by region. Because the agro-climatic conditions in most areas of West Java are like those in the Ciamis district, the cultural patterns found in this study can be scaled up to other districts in West Java.

The impact of oil price and COVID-19 pandemic on clean energy stocks: an empirical approach using ARDL

PurposeOver the last decade, investments in green energy companies have witnessed noticeable growth rates. However, the glacial pace of the world economic restoration due to COVID-19 pandemic placed a high degree of uncertainty over this market. Therefore, this study investigates the short- and long-term relationships between COVID-19 new cases and WilderHill New Energy Global Innovation Index (NEX) using daily data over the period from January 23, 2020 to February 1, 2023.Design/methodology/approachThe authors utilize an autoregressive distributed lag bounds testing estimation technique.FindingsThe results show a significant positive impact of COVID-19 new cases on the returns of NEX index in the short run, whereas it has a significant negative impact in the long run. It is also found that the S&P Global Clean Energy Index has a significant positive impact on the returns of NEX index. Although oil has an influential effect on stock returns, the results show insignificant impact.Practical implicationsGovernments have the chance to flip this trend by including investment in green energy in their economic growth stimulation policies. Governments should highlight the fundamental advantages of investing in this type of energy such as creating job vacancies while reducing emissions and promoting innovation.Originality/valueFirst, as far as the authors are aware, the authors are the first to examine the effect of oil prices on clean energy stocks during COVID-19. Second, the authors contribute to studies on the relationship between oil prices and renewable energy. Third, the authors add to the emerging strand of literature on the impact of COVID-19 on various sectors of the economy. Fourth, the findings of the paper can add to the growing literature on sustainable development goals, in specific the papers related to energy sustainability.

Youth Employment Recovery in the Post-Covid-19 Economy: The Potential Role of Education and Training

South Africa has one of the highest reported rates of youth unemployment coupled with poverty and inequality in the world. These challenges have recently been worsened by the impact of the Covid-19 crisis on the economy. Unemployment rates have remained stubbornly high in the country and have been a consistent concern for government and policymakers. In light of the South African Economic Reconstruction and Recovery Plan, the purpose of this paper is to analyse South African youth employment recovery in the post-Covid-19 economy. In particular, this paper analyses the potential role of education and training in the recovery of youth employment. Document analysis and a critical literature review were conducted to address the objective of this paper. In the research that informed this paper, firstly, a Google search was conducted to obtain relevant documents and publications on the South African Economic Reconstruction and Recovery Plan. Secondly, a comprehensive literature search across 10 scholarly databases was conducted to obtain relevant recently published articles. Documents and scholarly articles were analysed through thematic analysis. The results indicate that Covid-19 has contributed to the overall surge in job losses. However, the impact of the pandemic on youth unemployment itself is minimal, as youth unemployment was already high in the pre-Covid-19 economy. Further results show that addressing youth unemployment largely depends on economic growth. In particular, “appropriate” education and training, as part of the recovery plan, can play a key role in economic growth stimulation and job creation. These results call for collaborative efforts from different stakeholders, not only to implement programmes and policies that contribute to economic growth, but also to develop an education system that addresses the labour market needs.

Роль инструментов Банка России в современном российском государственном управлении

The present paper examines the political and economic role of the Bank of Russia in the structure of public administration, studying its impact on the country’s economy and the welfare of the population. It argues for the idea that the Bank of Russia’s key rate is used as a tool for achieving domestic policy objectives, such as con-trolling inflation, stimulating economic growth and supporting financial stability. It is noted that the key rate of the Bank of Russia is used by it as a tool to achieve domestic political goals, such as controlling inflation, stimu-lating economic growth and supporting financial stability. As a foreign policy tool, it is a means of soft power, especially in the context of global financial markets, where global actors are largely guided by the actions of the Bank of Russia. The results of the analysis of academic research, theoretical models and practical examples related to the policy of the Bank of Russia and its impact on the country’s economy are presented. In addition, the experience of application of key rate instruments by credit and financial institutions in other countries is also considered. Conclusion dwells upon the fact that the results of the study are of great importance for the devel-opment of effective economic policy of the state and making informed decisions in the sphere of monetary policy.

Efficacy of Fiscal Policy in Stimulating Economic Growth During Recession in China

Fiscal policy involves decisions related to government expenditures on public goods and services, as well as the collection of revenue through taxes and other sources. The government can use fiscal policies to adjust its spending and taxation levels to stimulate or restrain economic activity, influence consumer and business behavior, and achieve desired macroeconomic outcomes. A recession is characterized by a contraction in output, income, employment, and trade, usually accompanied by a general decline in business activity and a decline in consumer spending. During recessions, when economic activity declines, policymakers often turn to fiscal policy as a tool to boost aggregate demand, create jobs, and promote recovery. The study noted that China has experienced various economic downturns and has implemented fiscal policies to address them. Like during the global financial crisis in 2008-2009, China implemented a massive fiscal stimulus package to counter the economic downturn. Structural reforms, such as improving market competition, reducing administrative burdens, and enhancing the business environment, can amplify the impact of fiscal policy measures. Combining fiscal policy with structural reforms had a more significant effect on stimulating economic growth in China. In conclusion, timely and targeted fiscal interventions can have a positive impact on economic growth during recessions. Large-scale infrastructure projects, when implemented efficiently, have the potential to boost employment, drive domestic demand, and contribute to long-term economic development. The study recommended that policymakers should carefully identify and target sectors with high multiplier effects, such as infrastructure, innovation, and technology, to maximize the impact on economic growth. To maintain long-term fiscal sustainability, China should carefully manage public debt levels and ensure responsible fiscal practices. Continuous evaluation and monitoring of fiscal policy measures are essential to assess their effectiveness and make necessary adjustments. Keywords: Fiscal Policy, Economic Growth, Recession, China

Does Sukuk Sector Stimulate Economic Growth? Empirical Evidence from MENA and Southeast Asia Region

The main objective of this paper is to examine the impact of Sukuk sector development on economic growth. This study focuses on a sample comprising some Sukuk-issuing countries in the MENA and Southeast Asia regions over the period 1995-2015. To address potential problems of endogeneity and simultaneity, we employ the generalized method of moments (GMM) system proposed by Blundell and Bond (1998). The obtained results indicate that the development of the Sukuk market significantly affects economic growth, even after controlling various measures of the financial market development and classical determinants of economic growth. Furthermore, the findings suggest that the financial and service sectors have a greater impact on economic growth compared to other sectors. Additionally, there is a significant difference observed between the various sectors of Sukuk in the two regions.