Economic Growth Strategy Research Articles

Gender in the crisis and remaking of Europe: re-gendering subsidiarity

This article analyses the gender dimension of the European Commission’s proposals to revise the governance of the European Union in response to the crisis by increasing the powers of the European Union level. The proposed change in the location of the subsidiarity boundary has significant gender implications: subsidiarity is gendered. The alternative strategies for economic growth and security have implications for democracy and gender equality. The concepts of ‘gender regime’ (and its social-democratic and neoliberal varieties) and ‘project’ are developed and applied. The possibility of the embedding of the gender-equality project in the new institutions proposed by the Commission is discussed.

Coordinating China's economic growth strategy via its government-controlled association for private firms

Scholars in economics and political science argue that one major function of government is to overcome coordination failure in economic development, especially during times of rapid environmental changes. But, how and through what means does the state coordinate firms to follow the changing directions of its economic objectives? This paper focuses on the case of a government-controlled business association, namely the All-China Federation of Industry and Commerce (ACFIC), and shows that the ACFIC may be serving, at least partially, as a means of avoiding the kind of coordination failures that are often associated with policy reform programs in authoritarian regimes like China when the government deems it necessary to radically and suddenly change its policy objectives. It does so by comparing the activities of firms that are members of ACFIC with non-members before and after the world financial crisis of 2008–09 which induced a significant change in government objectives. Before that crisis when priority in government objectives was “outward” (to stave off balance of payments crises that had befallen many other developing countries), ACFIC member firms were able to engage in exports and foreign investment to a greater extent than non-member firms, and even than those whose owners are members of the Congresses or Chinese Communist Party. After viewing the crises in international markets, and government objectives had turned more “inward”, ACFIC members were more likely to focus on domestic sales and investments.

The Green Factor of Economic Growth in Russia and the World

The article discusses the role of environmental and climate factors in the modernization of the global and Russian economies in the context of the challenges presented by the new industrial revolution. It is emphasized that a restraining effect of these factors on economic growth is primarily caused by qualitative characteristics of technologies used for resource utilization and the adaptation of population and facilities to global climate changes. The article considers a growing urgency of eco-innovations, as well as “green” technologies overall, as a factor affecting the economic growth and modernization of the economy; the unevenness of the development of these technologies in the countries of the world; and strategic risks of Russia’s lagging behind the leading world economies in this area. A special emphasis is placed upon (i) a substantiation of the significance of the mineral, raw material and fuel and energy complexes, as well as the forest-industryl and agro-industrial complex, as priority sectors for the development eco-innovations and green technologies in Russia and (ii) arguing that in Russian conditions a long-term development policy is in essence a strategy for green economic growth.

Natural Externalities of Economic Growth Stabilization in XXI Century: Geography Seeking Revenge

Studying the factors of national economic growth stabilization is especially topical and relevant under the conditions of growing economic interdependence of the states which objectively limits the regulatory functions of national governments, in parallel to which regionalization gradually establishes oneself as an alter-trend to globalism. In our research we stem from the analysis of the macroeconomic statistics and of the dynamics of economic progress in the selected countries of the world, so that to determine the correlation between the indicators of economic growth stability for a selected group of countries with their integration into the world markets. Conclusions of our analysis outline the regularities in stable economic growth strategies’ implementation along with the key factors contributing to economic stabilization under contemporary conditions. The important role of geography is emphasized, inter alia, since geography is the key precondition for development and implementation of the long-term strategies of economic progress for world regions.

Testing the role of tourism and human capital development in economic growth. A panel causality study of micro states

The tourism sector over the years has become an integral part of economic growth strategies and determinants. This study seeks to investigate the contribution of the tourism sector to economic growth of the micro states over the period 1995–2015, using second generation panel approach that accounts for cross-sectional dependence, by incorporating investment in human capital as an additional variable. The causal relationship and interaction between tourism, investment in human capital and economic growth is examined by employing the Granger causality testing approach introduced by Dumitrescu and Hurlin (2012). Our empirical results provide evidence in support of tourism-induced growth, tourism-induced human capital development and human capital development-induced growth. Over the sampled period, it appears tourism sector has not been contributing substantially to export earnings and economic growth. This might have led the policymakers in these states to diversify their economy from being tourism-dependent to human capital-based.

Power, capital, and artistic freedom: contemporary Chinese art communities and the city

ABSTRACTThis paper offers a critical review of the proliferation of the contemporary art colony in China since the beginning of the twenty-first century in the context of China's promotion of cultural creative industries as one of the strategies for urban development and economic growth. Through analyzing cases in Beijing, Xi’an, and Sanya, cities ranging from ‘first-tier’ to ‘third-tier’ in their size and status, the paper explores the challenges and opportunities many contemporary Chinese art professionals find themselves face amid the competitive city image building campaign, a top-down movement led by local state and private investors in cities across China. It is evident that contemporary art and alternative art spaces associated with it have been drawn into the process of commodification, inadvertently recruited to play an ancillary role in the reproduction of the hegemonic collusion between political power and capitalism in a rapidly urbanizing China. Nonetheless, I argue that the inclusion of contemporary art communities as a player in the production and reproduction of the urban space has provided critical-minded artists, critics, and curators opportunities to participate in the reconfiguration of the physical and cultural landscape of Chinese cities, albeit not always with positive outcomes. As such, some art professionals are able to appropriate the process of capitalist urbanization to create their own ‘infrastructures of resonance’ [Thompson 2015. Seeing Power: Art and Activism in the Twenty-first Century. Brooklyn: Melville House], which support artistic freedom and facilitate the growth of diverse forms of cultural creation and exchange despite the coming dominance of ‘power plus capital’ [X. Wang 2003. A Manifesto for Cultural Studies. In: C. Wang, ed. One China, many paths. London: Verso, 274–291].

Natural gas consumption of urban households in China and corresponding influencing factors

Driven by the impact of economic growth, urbanization, and national strategies for low-carbon development, the TNGC of urban households in China is growing rapidly. In this paper, the feasible generalized least square method is used to investigate the consumption of natural gas and the per capita natural gas consumption of urban residents in 30 provinces in China (not including central heating and the natural gas consumption of natural gas vehicles). We study the factors influencing natural gas consumption by urban residents in China and conduct scenario forecasting. The empirical results show that the impact coefficients of PNGs and household income on average natural gas consumption are − 0.895 and 0.222, respectively, while the impact coefficients of the NGP are − 0.603 and 0.346, respectively. The scenario forecast results show that the consumption of natural gas in Chinese households reached 75.469 billion cubic meters in 2025. China's natural gas season peak pressure will continue to increase. In response to this, the following three suggestions are proposed. (1) According to the price elasticity of natural gas, the Chinese government should adjust and improve the mechanism for the formation of PNGs for residents and promote the marketization of natural gas. (2) Accelerate the construction of natural gas reserves and allocate the natural gas supply according to regional differences in natural gas consumption to enhance China's natural gas peak shaving capacity. (3) Improve and optimize natural gas development plans to achieve coordinated development of natural gas supply and demand.

Impact of Exports on Economic Aggregates of Pakistan

The study employs CGE model, on the data provided in SAM 2001-02 for Pakistan designed by Dorosh et al. (2006), to investigate the impact of Pakistan’s exports on the major aggregates of the economy. To this end, three experiments have been conducted, exportsare increased by 5% in the first simulation (SIM-I), in the second simulation (SIM-II) by 10% and in the third simulation (SIM-III) by 15%. The findings of the study reveal that increase in exports has favourable impact on the performance of macroeconomic variables of the economy i.e. GDP, public and private consumption, savings and investment. Domestic output level of most of the commodities has risen except mine, food manufacturing and other manufacturing. Incomes and expenditures of all the households have risen that results in rise of utility level of all the households. Moreover, all the households have also recorded an increase in the values of compensating variation which implies higher level of welfare for households. However, the value of compensating variation for non-agriculture households has risen more than that of agriculture households indicating pro-urban effect. Equality among the households has improved as the inequality indices have registered declining trend. The study suggests that export promotion measures should be incorporated in poverty alleviation, income equality and economic growth strategies.

A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies

The relationship between growth and trade has been argued many times in the literature. The topic is still current, dealing with different methodologies and countries by researchers. In this frame to understand the relationship theoretically and empirically better, the topic is examined again with a different approach which is explaining export-led growth (ELG) and domestic-demand-led growth (DLG) strategies comparatively for European transition economies. The annual data for the period between 1990 and 2015 were taken from Data Stream for 16 European (Central and Eastern Europe, Southeastern Europe and Balkans) transition economies and because data include both cross section and time dimension, it is necessary to apply dynamic panel data techniques. Second-generation unit root test (multifactor), Westerlund ECM panel co-integration test and heterogeneous panel causality test are applied, and long-term coefficients are estimated with common correlated effects (CCE) model. According to test results, not only ELG but also DLG strategy is accepted for European transition economies, and the direction of the relationship between growth and trade is bilateral. But the contribution of domestic demand on growth is seven times bigger than net export. The leading countries for ELG strategy are Romania, Bosnia and Herzegovina but for Poland and Czech Republic DLG strategy contributes more on economic growth. It is a better macroeconomic policy to have the balance between export-led and domestic-demand-led growth strategies for a sustainable economic growth. The key approach of high growth rate is to produce high technology with competitive price according to domestic demand and export it to the foreigner markets. JEL Codes: F14, C01, C33

Coordinating China's Economic Growth Strategy via Its Government-Controlled Association for Private Firms

Scholars in economics and political science argue that one major function of government is to overcome coordination failure in economic development, especially during times of rapid environmental changes. But, how and through what means does the state coordinate firms to follow the changing directions of its economic objectives? This paper focuses on the case of a government-controlled business association, namely the All-China Federation of Industry and Commerce (ACFIC), and shows that the ACFIC may be serving, at least partially, as a means of avoiding the kind of coordination failures that are often associated with policy reform programs in authoritarian regimes like China when the government deems it necessary to radically and suddenly change its policy objectives. It does so by comparing the activities of firms that are members of ACFIC with non-members before and after the world financial crisis of 2008-9 which induced a significant change in government objectives. Before that crisis when priority in government objectives was “outward” (to stave off balance of payments crises that had befallen many other developing countries), ACFIC member firms were able to engage in exports and foreign investment to a greater extent than non-member firms, and even than those whose owners are members of the Congresses or Chinese Communist Party. After viewing the crises in international markets, and government objectives had turned more “inward”, ACFIC members were more likely to focus on domestic sales and investments.

Urban poverty, economic restructuring and poverty reduction policy in urban China: Evidence from Shanghai, 1978–2008

AbstractThis article uses the city of Shanghai as a case study to analyze the changing institutional mechanisms for the new urban poverty stratum in China. Specifically, the article examines urban poverty in relation to economic restructuring and the transformation of the welfare provision system in three stages of market reforms. The article first examines the overall economic growth strategies at the national level, and then examines local government policy outcomes at the city level. The impacts of institutional changes on urban poverty and social inequality are subsequently. Finally, the article assesses the current poverty reduction policies and proposes a “social inclusion” framework to alleviate urban poverty in China.

The Construction of Development Zones by Local Governments: A Looking-around Choice?

Xi Jinping’s report to the 19th CPC National Congress profoundly expounded that ‘China’s economy has shifted from high speed growth stage to high quality development stage’, emphasizing the implementation of regional coordination development strategy. As an important carrier to promote local economic growth and national regional development strategy, the development zones have made important contributions to the rapid development of China’s economy, and also provide a unique perspective for understanding local governments’ behavior and China’s economic growth mode. The repeated construction and disordered expansion of development zones are the severe problem that has plagued the sustained and healthy development of China’s economy for a long time. Based on the data of 100 cities from 2004 to 2014, the spatial panel model is used to study the motivations for the establishment of the development zones by the local governments from the perspective of spatial strategy interaction. It arrives at the conclusions as follows: firstly, the local governments fully consider and refer to the decisions of their ‘neighbors’ when taking the construction of development zones into account; if the number of adjacent development zones increases, the number of local development zones increases accordingly, explaining the nature reason for repeated construction of development zones to a certain extent; secondly, after investigating the regional differences of strategic activities in the development zones, we find that the spatial strategy interaction of constructing development zones is stronger in the central and western cities than that in the eastern cities; the scattered distribution of the central and western development zones causes the waste of resources and reduces the factor allocation efficiency; thirdly, industrial structure, infrastructure, land prices and other factors have significant impacts on the establishment of development zones, and constitute important constraints on setting up development zones by local governments; the course of development zones is not a natural growth subjecting to resource constraints, but a result of regulation by the local government policy interaction and national policy control; fourthly, further empirical evidence shows that fiscal decentralization and the competition of attracting investment under the incentive of political promotion of local governments have strengthened local governments’ motivations for competitive strategies in the establishment of development zones. Consequently, effective reform measures should be taken in aspects of political performance appraisal system, fiscal and tax system, and local debt management system, so as to strictly control the blind competition of excessively constructing development zones among local governments. The central government should encourage local governments to shift from economic growth mode driven by preferential policies and factor input to new development mode driven by reform and innovation. Hence, local governments can promote the development and upgrading of development zones, and further play an important role in the construction of modern economic system.

Combining low-carbon economic development and oil exploration in Brazil? An energy–economy assessment

ABSTRACTBrazil's nationally determined contribution (NDC) pledged under the Paris Agreement has marked a new stage in its climate policy towards strengthening low-carbon economic development beyond the recent drastic cuts in emissions from deforestation. Brazil especially means to limit oil consumption driven by future economic growth and to increase energy efficiency and biofuel use in the transport sector. On the other hand, Brazil still aspires to become a major petroleum province given its huge reserves of ‘pre-salt’ oil. This article aims to clarify under what conditions low-carbon economic development and oil exploration can possibly be combined in Brazil and what would be the energy system, environmental and macroeconomic implications of enabling policies for doing so. To address these questions, an energy–economy computable general equilibrium (CGE) model of the Brazilian economy is used to simulate alternative scenarios up to 2030. The results first show that implementing the most recent energy plans, which take into account the new economic reality in Brazil, should lead to over 20% lower domestic CO2 emissions in 2030 than the indicative NDC target, and to the export of the bulk of newfound crude oil. Second, with the same level of oil production, deeper domestic decarbonization, triggered by additional carbon pricing and sustainable efficiency measures, appears achievable with very small gross domestic product (GDP) loss and maximum oil exports, while being aligned with a 2°C emission pathway. However, (i) extra oil exports may induce net additional emissions outside Brazil and be seen as a perverse incentive and (ii) the economic growth strategy based on high oil exports may hinder the necessary diversification of the Brazilian economy.Key policy insightsLow-carbon development goals will strongly interact with oil policy in Brazil.The 2030 NDC target should be easy to achieve considering the new economic reality in Brazil.Deeper domestic decarbonization is achievable with very limited GDP loss and significant oil exports, while being aligned with a 2°C emission pathway.A broad strategic vision is needed to reconcile climate policy, energy policy and other economic development objectives.

Productivity change and decomposition analysis of Japanese regional economies

ABSTRACTThis study examines the productivity growth and its four components for Japanese regional economies by analyzing 47 prefectures for the period 1995–2012. The productivity changes are measured by the Hicks–Moorsteen–Bjurek productivity growth, and the four components consist of technical change, efficiency change, scale change, and input and output mix effects. Data envelopment analysis (DEA) is applied to the measurement. From the results, this study provides two policy recommendations for Japan’s new economic growth strategy, which are associated with (1) government support for the diffusion of advanced technology over regions and (2) the creation and development of unique innovation by regional industries.

Structural Analysis of Technological Changes and the Strategy of Economic Growth

The paper discusses the content of the concept “digital economy” and its main characteristics. It reveals and analyses scientific approaches to treatment of the concept “digital economy”. The authors prove that digital economy marks the dawn of a new information era and the goal of building digital economy in Russia sounds highly realistic. The paper justifies the necessity to align the formation processes of the digital economy with new industrial development of the country and improvement of the quality of life in the coming years. The authors devote particular attention to the role and importance of higher education in formation of the digital economy. They prove that every Russian region should determine which industries, sectors of the digital economy to develop in the first place in its territory proceeding from the regional specifics. The researchers arrive at the conclusion that digital technologies, which are taking their shape in Russia, are completely able of making the national economy high-tech intensive, competitive and bring it to the wave of growth.

Actual Trends and Features of Organizational Models of Providing Innovative Development of Regions Application

The importance of the research, science and innovation as the key factors in prosperity is becoming increasingly relevant because humanity is on the verge of a new wave of transformational innovations, a new era in which digital technology is ever closer to the physical world. There is an urgent need to prioritize investments and to fill the gap with breakthrough innovations. It is important to formulate regulatory frameworks that will encourage, but not interfere innovation, and promote business innovation and business environments. A better understanding of the changes in the dynamics of science, research and innovation and their impact on the country will strengthen the response to a rapidly changing world, providing timely interference in the formation of innovation policy. The article presents the main features of nature of innovation changing: speed, complexity, concentration of benefits, consumers, costs. Identified and noted the most influential problems that hamper innovation development: hardware frameworks, blocked problems, inefficient multilevel governance. The advantages of introducing the concept of smart specialization in the regions are highlighted: the study of new market opportunities, the formation of easy knowledge sharing between different fields of knowledge, the use of appropriate diversity in the fields of knowledge, incentives for structural adjustment of the economy through the introduction of innovative practices in the economy and society. The innovation management model based on the interaction of Triple Helix, as synergy between all the innovation-related areas of social activity: research institutions, business, and government on regional level is presented. Social innovations as an instrument for implementing complex inter-sectorial interactions within the framework of strategies for sustainable development and economic growth of the region are noted.

Strane direktne investicije, izvoz i ekonomski rast u Srbiji

In the last decades, foreign direct investments and export have generally been considered key drivers of global economic integration. This paper pays special attention to analysis of possible impact and relationship between foreign direct investment, exports and economic growth of countries. When looking at Serbia as a country that is still in the process of transition, due to its characteristics in terms of impact on long-term economic development, the main purpose of this paper is the research and analysis of connectivity between foreign direct investments, export and economic growth measured by gross domestic product of Serbia in the period from 1998 to 2016. With the use of statistical-quantitative analysis, the paper has produced the results that indicate that foreign direct investments and export positively influence the economic growth of Serbia. Having in mind that the impact of foreign direct investments and export is positive, the conclusions of the research can be useful in creating appropriate policies and strategies for further economic growth and development of Serbia.

Investigating Economic Growth, Trade Issues and Future Energy Strategies for Central Asian Countries

We examine the economic growth, energy development policies and strategies for the CAC from various perspectives. We apply statistical data analysis techniques and mathematical modelling methodologies focusing upon regression model analysis in order to deal with the economic and energy related data during the period 1990-2014, and to investigate the relationship among economic growth, energy production, and the trade of energy resources in order to find future desirable policies and strategies for the CAC. Findings show that energy production growth would bring statistically significant positive impact on GDP growth in fossil-fuel rich Kazakhstan, Uzbekistan, and Turkmenistan while we also find negative impact of GDP growth on the trade balance of the CAC except for Turkmenistan. Another finding follows that the foreign direct investment has a significant influence on the trade balance in the cases of Uzbekistan and Turkmenistan, which institute import substitution policies right from their initial years of independence. Based on these quantitative investigations on economy, energy, and trades we propose future energy strategies for the CAC, stressing the importance of diversification of economies.

Aspects of Economic Growth Strategy Development for the Oil Upstream Sector

Aspects of Economic Growth Strategy Development for the Oil Upstream Sector

Spatial Agglomeration, Human and Social Capital: The Case of Turkey Manufacturing Industry

Over the last three decades, new economic theories explode the factors depending on space and spatial characteristics. In this process, it is developed the theories on social-cultural aspects and spatial characteristics of regions instead of traditional economic theories. These theories have been main strategy for economic development and growth. Economic development has not been considered independently from space by these theories and economic performance of a region was emphasized importance of economic actors, institutional and economic infrastructure as well as geographic features. Geography or spatial features contribute to increase not only skilled workforce, knowledge spillover and distribution but also social relations and interaction. In other words, the social-cultural and humanity factors relating with spatial and geography are major factors affecting on the development and also growing of economic activities. Especially, while industrialization as engine of regional development has been benefiting from the advantages offered by spatial features, clustering of economic activities and relationships among actors are shaped according to socio-cultural and human factors revealed spatial features. In this context, clustering of economic activities has been one of the new areas of interest in the theory of economic geography. Therefore, clustering of economic activities and human-social-spatial resources has been emphasized to play a major role in growth and development of regions by essays of the new economic geography. In that context, the aim of this paper is to determine the effects of human and social capital in the spatial agglomeration of economic activities in case of Konya-Turkey. In this study, the agglomeration tendencies for manufacturing industry in Konya, which have major potentials in terms of human and social capital and manufacturing industry potential, is analysed comparatively depending on secondary resources and using statistical. In this paper, it is answered a question: can the spatial agglomeration tendency be more dominant in the regions with higher human and social capital potential than the regions with low human and social capital potential. In this framework, the paper is composed of four chapters. At first, it is involved theoretical background including theoretical evaluating and also conceptual explaining about terminology such as new economic geography theories, agglomeration/clustering, human and social capital. Secondly, it is called methodological chapter that it involves the determination of variables, explanation analytic methods and techniques, and also giving information relating with the development of Konya manufacturing industry. Thirdly, it is evaluated data getting from analyse and methods techniques. And last, it presents results and evaluations relating with the study findings.