Economic Policy Strategies Research Articles

Function and Hierarchy of Settlement in Regional Development Corridor Malaysia: A Case Study of South-East Pahang Development Authority (DARA)

Frontier area development through rural development is one of strategy in the regional development corridors (RDC) that was formulated by the government. In line with the New Economic Policy (NEP) strategy, the development of RDC such as South-East Pahang Development Authority (DARA) in 1971 was focused on improving the living standards and productivity of the rural population through the process of modernizing rural and remote areas. The existence of DARA indirectly catalysed the development of new townships which drove the urbanization process in the South-East Pahang region. However, the dissolution of DARA in 2000 was occurred due to the successful in the development of DARA in South-East Pahang region. Nonetheless, a question emerges whether these new townships are fulfilling to the settlement’s function and hierarchy performances today that was planned in early setup of DARA. Hence, this paper aims to evaluate the settlement’s function of the township development in the DARA in Malaysia as a case study of RDC based on the level of readiness public and basic facilities in a settlement area with using 4 settlement services indicator such as function, economy, public / social facilities and convenience infrastructure and utility. The methodology used is a qualitative method using a case study method on the 11-existing settlement centers located in the DARA area. The findings highlighted that the settlement’s function of these settlement centers have undergone significant changes from the main goal of its establishment with today’s functions and performances due to the factor of population decline and shrinkage of economic opportunity. Therefore, immediate measures are required by the relevance government agencies to ensure the existence of these settlement centers in the future as well as to ensure that the settlement area meets the needs of the population equipped with adequate facilities for socio-economic activities.

Museums in the COVID-19 pandemic: the impact of economic stimulus policy and market strategy of the national palace museums in Taiwan

ABSTRACT This research examines the impact of the voucher-based economic stimulus policy and market strategy on museum traffic during the COVID-19 pandemic in Taiwan. We apply a univariate time-series model (ARMAX) to daily-visit data of the National Palace Museums in Taiwan during 2016–2021, showing results that the consumption voucher program effectively did boost the number of visitors amid overall declines in tourists due to the lockdown. A comparison among the National Palace Museum branches further reveals that holding more outdoor art events by one branch induced a more potent effect of the stimulus policy. The findings suggest that outdoor art events can be a helpful strategy for museums, which traditionally rely on indoor art exhibitions, to mitigate the impact of a pandemic.

Key Principles of Governing Business-Incubator in University

Efficiency of economy development directly depends on implementation of measures supporting business entities, including upgrading entrepreneurial infrastructure. This problem was repeatedly discussed at the highest level of state governance of the Russian Federation, in particular within the frames of the President of Russian address to the Federal Assembly in 2021. Business-incubators are a key element of such infrastructure. It should be pointed out that specialized literature has not thoroughly studied the issue of business-incubators functions in today’s economy. In general these functions can be differentiated in accordance with the stage of macro-economic development and overall strategy of finance and economic policy observed within the frames of a concrete state, depending on geopolitical situation, trends in global economy changes, possible foreign economic preferences and risks. Effectiveness of today’s incubator development, viewed both in finance and social aspect directly depends on the quality of methodological tools of their functioning efficiency appraisal. The article gives a classification of business-incubators by a number of important economic and managerial criteria, which gives a chance to find their most preferable type depending on strategic goals and objectives of developing the incubator’s founder and general functioning requirements of the relative territorial (federal, regional or municipal) system of entrepreneurial work support. The author underlines that today’s business-incubator should possess a multi-sectoral character, it should be set up for the conventionally unlimited period, provide system and various finance support to residents , be integrated into space of digital economy, realize its own education programs of different profile and have a preventive model of management. Business-incubator is considered in two aspects. In a wider sense it is a specialized social and economic institution oriented to provision of long-term rise in intensity and finance and economic efficiency of entrepreneurial activity at the expense of favorable conditions for locating potentially competitive businessstructures at the initial stage of their life cycles on special territories. In the narrower sense business-incubator is an entity of territorial (federal, regional or municipal) system of supporting entrepreneurial initiatives, which could ensure their progressive development at the expense of providing production, technological, finance, information, consultative and other resources on preference or free of charge basis.

Economic Growth, Population, and Policy Strategies : Its Effects on CO2 Emissions

This research work has been focused on China and India. Both Countries has a big number in population in the world and the rate of economic growth has been increasing every year. However, this is still accompanied by air pollution (CO2 emissions). Therefore, this study aims to analyze the relationship of population and GDP to CO2 emissions in China and India in the 1984-2014 timeframe and provide policy recommendations related to the problem being analyzed. Estimates use VECM to analyze the data collected. The results of the study show that in China and India, GDP and population in the short and long term have a positive effect on CO2 emissions and provide policy recommendations on willingness to pay for industry and willingness to accept for the community. The Environmental Kuznets Curve hypothesis was not confirmed in the case of China and India.

Problems of geoecological economics in the context of the energy transition

The article is devoted to the problems of geoecology and geoecological economics in the perspective of transition to new energy conditions for the development of the economy. The conditions for integrating various types of capital are analyzed, as well as issues of sustainable development in the context of the energy transition. The issues of balancing the forms of natural capital should be considered both at the global and local levels. The ratio of the use of natural capital resources should be determined by the volume of resources, natural and climatic conditions, the strategy of economic, ecological and environmental policy of a particular country. Aspects, approaches and mechanisms of
 balancing between the economy and ecology in the new conditions of restructuring energy resources, taking into account climate change, are discussed.

Analysis of Causality among Tax Revenue, State Expenditure, Inflation, and Economic Growth in Indonesia between 1973 and 2019

This study aims to analyze the causality between tax revenue, state expenditure, inflation and economic growth in Indonesia during the 1973-2019 period to provide policy advice to the Indonesian government. This country was selected as an object with consideration that its economy has grown impressively and has been able to rise from the Asian economic crisis. A brief overview of the policies developed during the research period is presented to provide insight into the policies taken by the government. The use of quantitative methods through the Vector Error Correction Model and Granger causality test was carried out to provide an in-depth analysis. The result showed a positive long-term two-way causality relationship between tax revenues and state expenditures as well as tax revenues and economic growth. This indicates that the government's efforts to implement state expenditure have succeeded in increasing tax revenues. Conversely, an increase in tax revenue allows the government to make state expenditures, both in development and other activities, to improve people’s economy, leading to increased economic growth. The government must maintain an economic policy strategy during the COVID-19 pandemic to restore the national economy by considering potential sectors that are suitable for the climate, such as the agriculture or livestock sector. The result of tests on inflation show that this variable is caused by economic growth and does not apply the other way around, but this variable is has a negative effect on tax revenue, state expenditure and economic growth so its needs to be suppressed to ensure the stable economic growth.

The spatial analysis of digital economy and urban development: A case study in Hangzhou, China

The digital economy spatial distribution (DESD) analysis and urban development differ from the traditional pattern of a core-edge spatial model, highlighting the importance of a policy paradigm in a digital era. There are few empirical studies on the digital economy and urban development, especially urban development driven by the digital economy and the overall urbanisation. This paper attempts to reveal the policy guidance of DESD and its relationship with urban development. The primary objective is to figure out the DESD and urban development pattern, which could provide references for cities that want to realise city transformations through an upgrading process of both the economy and the city. Using an integrated approach that combines the policy analysis and several geographic outcomes, Hangzhou's DESD and urban development were studied based on three timestamps of 2001, 2010, and 2017. Subsequently, the spatial econometric and VAR methods were applied further to comprehend the digital economy and overall urbanisation. The discoveries reveal that the policy-oriented development strategy is conducive to breaking the constraints of the core-edge structure. However, the urban development driven by the digital economy and the urbanisation in general of Hangzhou is not entirely consistent. Under the dual role of economic policy and urban strategy, the digital economy plays a much more critical role in shaping urban spatial than urbanisation in general.

ПУБЛІЧНИЙ ІНТЕРЕС ЯК НЕВРАХОВАНИЙ ЧИННИК ПРИ ФОРМУВАННІ СТРАТЕГІЇ ТА ТАКТИКИ ДЕРЖАВНОЇ ЕКОНОМІЧНОЇ ПОЛІТИКИ УКРАЇНИ

Purpose. The purpose of the article is to determine the directions of improving the mechanism of taking into account the public interests of society in the formation of strategy and tactics of state economic policy of Ukraine. Methodology. The research methodology consists of general and special methods of scientific knowledge, in particular: comparative, system-structural, formal-logical methods: deduction, induction, analysis and synthesis. Their use allowed to analyze the researched issues in the unity of its legal form and social content, as well as to systematically and consistently approach the disclosure of the objectives of the study. Results. The first section of the article defines the conditions for taking into account the public interest in the formation of strategy and tactics of state economic policy of Ukraine. The conditions under which public interest is born have been studied. Specified requirement regarding the validity of the interest. Criteria for the erroneous interests of implementation, which are impossible in general or in the near future, are defined separately. Emphasis is placed on the variability of public interests, as well as the fact that public administration is the entity that accumulates public interests. The second section of the article is devoted to the degree of consideration of public interest in the formation of the National Economic Strategy for the period up to 2030. The third section of the article is devoted to determining the guidelines for the development of strategic planning of state economic policy of Ukraine. Conclusions. The conclusions to the article state that the state economic policy of Ukraine should be formed with due regard for the public interests of society in this area. They should become the central reference point in the formation of economic strategy and tactics. It is proposed to introduce in Ukraine a mechanism similar to the one existing in the economically developed EU member states of accumulation of such interests, which is based on the dialogue between civil society institutions and the state in the face of public administration.

Exploring the Convergence of Resilience Processes and Sustainable Outcomes in Post-COVID, Post-Glasgow Economies

Resilience and sustainability have each offered a path forward for post-COVID economic recovery and a post-Glasgow global financial order. Yet, the relationships between these two concepts are largely unexplored in economic policy and investment strategies. In light of emerging systemic risks and global demands for more resolute investments in resilience and sustainability, this perspective article took the position that policymakers must begin to draw greater conceptual, empirical, and practical linkages between sustainability and resilience. This perspective article provided a simplified framework for understanding the positively reinforcing, negatively conflicting, and neutral relationships between different types of resilience and sustainability consistent with two propositions. The Reinforcement Proposition argues (i) that various resilience processes may drive sustainable outcomes, and/or (ii) that an allocation of sustainable resources may reinforce resilience processes, as well as the transformative adaptation of markets. Conversely, the Conflict Proposition argues (i) that certain resilience processes may perpetuate stability features that may thwart an economic transition toward sustainability, and/or (ii) that certain sustainability outcomes associated with reorganized economic structures and relationships may undermine resources for resilience. This framework provides policymakers with an opportunity to evaluate the convergent and conflicting trade-offs of resilience processes and sustainable outcomes.

State support for food security: a kazakhstan case study

The article presents a study of assessing the effectiveness of individual instruments of state support to ensure food security in Kazakhstan, based on the indicators of the implementation of state programs. Information is provided on the implementation of strategic goals and the achievement of target indicators in conjunction with budgetary funds for the formation of this article.Purpose of the study. Based on the information provided on the implementation of strategic goals and the achievement of target indicators in conjunction with budgetary funds, it is necessary to analyze statistical data on the implementation of state programs related to ensuring the country's food security.Research methodology. The work uses a systematic approach to data selection, methods of quantitative and qualitative research of reality, methods of economic, statistical and comparative analysis as a methodological tool for solving problems.The analytical part of the work is based on offi cial statistics on agriculture published on the website of the Ministry of National Economy of the Republic of Kazakhstan.Originality of research. The problem of food security of the country is a key priority in the strategy of economic policy of each country, and its effectiveness depends on the social, political and international stability of society. The article provides an overview of the effectiveness of the implementation of state programs aimed at ensuring food security, on the basis of which a set of measures is proposed to improve state regulation of food security.Research results. The authors described the achievement of target indicators in relation to budgetary funds and the study of the role of state regulation of food security in the Republic of Kazakhstan.

FISCAL STIMULATION OF SPATIAL DEVELOPMENT: THE EU COUNTRIES’ CASES

Abstract. The objective of this article is to form the basis for strengthening the fiscal stimulus spatial development of regional economic systems in the context of decentralization. The methods of research: dialectical, synthesis, analysis, generalizations and monographic, abstraction and generalizations. Results. The authors consider the «fiscal space» as a certain economic spatial formation, formed by elements of the regional economic system, which are involved in the construction of budget components and management of financial flows. The positive impact of the fiscal policy’s implementation in the context of decentralization is highlighted, as well as a certain imbalance of certain areas that provoke the search for ways of fiscal policy objectives intra-regional coordination. Summarizing the experience of European countries on fiscal stimulation of the development of regional economic systems, the following trends are highlighted: first, the main regulatory instruments are tax and budgetary policies, the level of their development and independence in the regions of countries; secondly, regional fiscal policy is always subordinated to the national economic development strategy; thirdly, taxes are becoming a tool for both stimulating and restraining the regions’ development. The article proposes the ways to smooth out negative challenges and the task of regional development’s fiscal stimulation is defined. The experience of European countries allows us to explore the prospects for developing tools for fiscal stimulus to ensure the sustainability and modernization of the regional space. Conclusions. The experience of European countries in the implementation of fiscal policy in the context of decentralization and the functioning of local self-government is studied. Despite the binding nature and dominance of European norms in fiscal policy, each country has formed its own strategic goals in economic development. This allowed preserving the national identity of individual territories, the specificity of the cultural value’s impact on the fiscal stimulation of regional economic systems. The authors come to the conclusion that the adaptation of the best practices in European countries in the Ukrainian economy’s conditions requires their reformatting under the goals and strategies of national economic policy. Directions of implementation of EU countries’ experience in fiscal stimulus of regional space in Ukraine are identified in the article. Keywords: fiscal space, fiscal stimulus, fiscal policy, European models of fiscal policy, tax system, budget system, decentralization, regional economic system. JEL Classification E63 Formulas: 0; fig.: 0; tabl.: 2; bibl.: 23

Crude oil market and stock markets during the COVID-19 pandemic: Evidence from the US, Japan, and Germany

We analyzed the return and volatility spillover between the COVID-19 pandemic in 2020, the crude oil market, and the stock market by employing two empirical methods for connectedness: the time-domain approach developed by Diebold and Yilmaz (2012) and the method based on frequency dynamics developed by Barunik and Krehlik (2018). We find that the return spillover mainly occurs in the short term; however, the volatility spillover mainly occurs in the long term. From the moving window analysis results, the impact of COVID-19 created an unprecedented level of risk, such as plummeting oil prices and triggering the US stock market circuit breaker four times, which caused investors to suffer heavy losses in a short period. Furthermore, the impact of COVID-19 on the volatility of the oil and stock markets exceeds that caused by the 2008 global financial crisis, and continues to have an effect. The impact of the COVID-19 pandemic on financial markets is uncertain in both the short and long terms. Our research provides some urgent and prominent insights to help investors and policymakers avoid the risks in the crude oil and stock markets because of the COVID-19 pandemic and reestablish economic development policy strategies.

АСПЕКТИ ІДЕНТИФІКАЦІЇ АНАЛІЗУ ТА УПРАВЛЯННЯ РИЗИКАМИ

In today's changing, economic, market conditions, under the influence of external and internal factors, the analysis of existing and potential risks is a very important element in the activities of economic entities. This problem is relevant in any sector of the economy. Each of the subjects of market relations at all levels feels the impact of unforeseen circumstances and risk situations, an adequate response to which allows to save resources, and market position. In addition, risk management involves risk analysis and active search for various tools to influence them. Thus, it can be noted that no risk management system can exist without a structured risk model that currently poses a threat. Analysis of potential and known risks is a very important area in planning the activities of the enterprise. Assessing risks, taking into account their likely effects on the state of the enterprise, and applying methods to minimize them is very important to ensure the effective operation of economic entities. In addition, it is important to add that risks are present in any field of activity. That is why the topic of risks is relevant for both economists and business leaders and managers. In modern economic conditions, the importance of the risk category for domestic enterprises is growing. The state of uncertainty makes it almost impossible to avoid risk. However, this does not mean that you should look for solutions in which the result is known in advance - they are usually ineffective. It is important for the company to have the ability to anticipate risk, critically assess its size, immediately plan preventive measures and do not exceed acceptable limits. Risk identification is a very important step in the risk management process. The relevance of effective consideration of possible risks in the course of the enterprise is beyond doubt, given that risk becomes an integral part of the strategy and tactics of economic policy of most enterprises. The problem of risk management is extremely broad and important, because it arises in a variety of areas of human activity. Moreover, the content of risk is determined depending on the scope in different ways. In the course of the enterprise there are a variety of risk situations. Analysis of the theoretical foundations of risk management allows you to identify and select those methods and stages of the risk management process that would allow the most effective work with them. Risk management in business is based on risk analysis and finding tools to help influence them. The risk management system is impossible without a structural model, the factors of which, in turn, will depend on the specifics of business. Risks are inherent in any activity and any business entity.

Global trends in employment changes and their impact on professionalisation

Research background: Globalization has determined the orientation of transformations in the labour market and employment: on the one hand, blurring of borders has led to an increase in interstate and remote employment (out staffing, freelance), lower costs for the wage fund and increased professional competition for the self-employed, on the other hand, there is an increase in information and digital inequality leading to discrimination in the labour market and high professional mobility of the workforce.. Purpose of the article: The purpose of the article is to analyse and systematize the main trends in the global labour market that affect the process of professionalization of various categories of employees in the Russian Federation. Methods: As the main research methods there were the analysis of documents, analysis of statistical data, secondary data analysis and expert survey used. Findings & Value added: The analysis described global trends in the labour market, as well as their impact on the process of professionalization of various categories of employees in the Russian Federation. Various options for modern professionalization are considered - traditional (based on formal vocational education) and non-traditional. The acquired and relevant professional competencies and professional reputation, rather than the level of knowledge and qualifications, prove to be economic and valuable. The study contributes to the development of the theory of professional socialization and the concept of modern employment, at the same time it can be useful in determining economic policy strategies in the field of labour market and employment regulation.

THE CHALLENGES OF STRATEGIC INNOVATION: ACHIEVING OPERATIONAL EFFECTIVENESS IN DEVELOPING COUNTRIES

Organisations are spending substantial resources on implementing product and process innovations. It is, therefore, important to evaluate if the implementation of those innovations substantially improves the effectiveness of business operations, meets the organisation’s expectations, and gains a sustainable competitive advantage. Quantitative data from 250 questionnaires were analysed using structural equation modelling. Respondents were selected from several industries in Colombia. Initial findings suggest that strategies have an indirect impact on operational effectiveness through the success of the organisational learning process. However, the organisations investigated lack the appropriate application of linkages and process innovation to achieve operational effectiveness and, therefore, sustainable competitiveness. The paper offers useful insights for organisations when implementing innovation initiatives. It also provides information for Colombian Government institutions on developing mechanisms, economic policy strategies, and business support services for enhancing the economic and commercial viability of Colombian companies in the manufacturing and service sectors. The studied organisations need to redefine the role of linkages and process innovation to complement organisational learning, as all the three dimensions together are required to foster operational effectiveness.

NEOTERIC TECHNOLOGIES AS DRIVERS OF NEW INTERNATIONAL ECONOMIC ENVIRONMENT

Abstract. The article analyzes the influence of the latest technologies on the formation of key characteristics of the modern international economic environment and its individual components. Using the concept of "post-industrial society" and its economic features as a characteristic of the modern, most developed economies of the world, the revolutionary role of the latest technologies in their accelerated socio-economic transformation, as well as the transformation of the global international economic system, of which these economies are elements, is emphasized. The influence of the basic technologies of Industry 4.0 on international economic relations is investigated, the need to take them into account in the process of the development of the economic policy strategy of Ukraine is argued.

Analysis and Strategy of Economic Development Policy for SMEs in Indonesia

This study analyzes the strategy of determining economic development planning on SME improvement in Indonesia. A qualitative approach was conducted through interview questionnaires with twenty respondents, including sixteen Regional Apparatus Work Unit, Fisheries and Marine Office lecturers, subdistrict heads, and development observers. The method used is Analytical Hierarchy Process (AHP). AHP prioritizes criteria and sub-criteria to increase economic growth, reduce poverty, and increase community participation, while indicating the sub-criteria to optimize resource potential, strengthen micro-economy, develop tourism potential, utilize fishery potential and cultivation, and improve institutional performance. The AHP weighting results based on competitiveness and regional development of Bantaeng Regency is the priority in policy-making for a solution. The research shows that the government strategy, based on the perception of the stakeholders, is: optimizing resources strategy with priority to maximize the resource-carrying capacity that includes agriculture and farm, tourism development potential strategy, self-reliance of community groups and coaching and management. Strategies to strengthen micro economy include: industrial control, SMEs, community cooperatives and infrastructure improvements, strategies to improve institutional performance work capacity and work ethic, and strategies to utilize fisheries and cultivation potential technological development, provision of processed industries of fishery products, and improvement of the quality of the environment.

Stationary bubble equilibria in rational expectation models

A linear rational expectation model with current expectations admits a unique linear stationary dynamic equilibrium only under specific restrictions on the parameter values. This paper shows that, in general, there is a multiplicity of stationary dynamic equilibria due to the existence of nonlinear stationary equilibria. These nonlinear stationary equilibria are consistent with the self-fulfilling prophecies that characterize the rational expectation equilibria, and can display speculative bubbles, volatility induced mean reversion and/or stochastic autoregressive patterns. They are also compatible with the transversality conditions when the model involves intertemporal optimization. The stationary nonlinear dynamic equilibria are economically relevant. Their analysis requires revised methods of identification for the stationary equilibrium, impulse response analysis, and estimation techniques, which are presented in this paper. Standard econometric and economic methods, which ignore the nonlinear stationary solutions provide misleading outcomes, which may affect the validity of an economic policy or portfolio strategy.

Why Business Schools Must Teach “Arthashastra Related Karma” Lessons? A Study on Awareness regarding Kautilya's Arthashastra amongst B –School Students

Most of the MBA Colleges and Business Schools are not imparting Arthashastra, karma lessons apart from the formal courses, case studies and classwork on finance, marketing, accounting and economics' B-School students in India deserve to learn about Kautilya's Arthashastra, an ancient treatise on statecraft, economic policy and military strategy. “The scandals like Sahara, Satyam, Chit fund Scams, Kingfisher Airlines and Nirav Modi, further increasing trend of wilful loan defaulters to banks, huge deposits made by a few business firms/individuals during demonetisation expose the weak foundations of ethics and values in Indian business scenarios,” therefore Business Schools must come forward to teach beyond Business Ethics i.e.., Karma Lessons and Socio Economic Development process as mentioned in Arthashastra. This article highlights Socio, Economic and Development thoughts of Kautilya's Arthashastra that is relevant to Business Schools.

Explaining the Euro crisis: current account imbalances, credit booms and economic policy in different economic paradigms

The paper proposes a post-Keynesian analysis of the Eurozone crisis and contrasts interpretations inspired by New Keynesian, New Classical, and Marxist theories. We analyze the role different paradigms attribute to current account imbalances, fiscal policy and monetary policy. Remarkably, opposing views on the relative importance of cost and demand developments in explaining current account imbalances can be found in both heterodox and orthodox economics. Regarding the assessment of fiscal and monetary policy there is a clearer polarization, with heterodox analysis regarding austerity as unhelpful and large parts of orthodox economics endorsing it. We conclude that there is a weak mapping between post-Keynesian, New Classical, New Keynesian and Marxist theories and different economic policy strategies for the Euro area, which we label Keynesian New Deal, European Orthodoxy, Moderate Reform and Progressive Exit respectively.