Effect Of Economic Performance Research Articles

Analysis of inclusive growth in ASEAN countries

There are 17 goals to achieve sustainable development in Sustainable Development Goals (SDGs) adopted by the United Nations. One of SDG that promote inclusive and sustainable economic growth is SDG number 8. Sustainable economic growth seeks to achieve goals that support the process of economic development. Inclusive growth is sought to support the process of economic growth and economic development to prevent future generations from suffering depletion of resources. The effort to achieve inclusive growth in line with the Sustainable Development Goals (SDGs). ASEAN was formed as an integration of any counties as a result of globalization,. The integrated economies of ASEAN countries form economic liberalization, giving rise to economic openness. The manifestation of economic openness is trade openness and financial openness. The panel regression method is used to see the effect of economic openness and macroeconomic variables on economic growth as a proxy for inclusive growth. The results found that inflation and unemployment as macroeconomic variables had a significant negative effect on economic growth. It means to achieve the inclusive growth; the ASEAN countries should keep the inflation stable and low unemployment rate.

PENGARUH KETERBUKAAN EKONOMI, NILAI TUKAR, PENANAMAN MODAL ASING DAN INFLASI TERHADAP CADANGAN DEVISA NEGARA INDONESIA

This study aims to see the effect of economic openness, exchange rates, foreign investment, and inflation on foreign exchange reserves in Indonesia. This study uses the Autoregressive Distributed Lag (ARDL) model analysis using the Eviews 12 analysis tool. This study uses secondary data consisting of economic openness, exchange rates, foreign investment, inflation, and Indonesia's foreign exchange reserves for the period 1980 to 2021. In this study, the results show that the variable exchange rate and foreign investment have an effect on Indonesia's foreign exchange reserves. For the variable economic openness, it has a negative effect, namely reducing Indonesia's foreign exchange reserves and inflation has no effect on foreign exchange reserves.

Pengaruh Kinerja Perekonomian dalam Penanggulangan Kemiskinan: Perbandingan Antara Daerah Berbasis Pertambangan dan Daerah Perkotaan (Studi Kasus Kabupaten Tabalong dan Kota Banjarmasin)

The aim of this research is (1) determine the difference in the effect of Economic Performance (Economic Growth, Government Expenditure, Unemployment Rate and HDI) on poverty between Tabalong Regency and Banjarmasin City; (2) to analyze the factors that most influence poverty in each of Tabalong Regency and Banjarmasin City.This research is quantitative descriptive. The analytical method used is multiple linear regression analysis with dummy variables, and time series data. Dummy variables are used in this model as a differentiator characteristics of the region and the resources owned between each region. The variables used are economic growth, government spending, unemployment rate, HDI, dummy variables and poverty.The results showed that (1) Economic Growth, Government Expenditure, Unemployment Rate, and HDI simultaneously had a significant effect on Poverty in Tabalong Regency and Poverty in Banjarmasin City, and there are differences between poverty in Tabalong Regency and Banjarmasin City ; (2) The results of this study also indicate that government expenditure was the most dominant factor affecting poverty in Tabalong Regency and Banjarmasin City.

What drives investment in renewable energy resources? Evaluating the role of natural resources volatility and economic performance for China

To cope with environmental degradation, countries around the globe are devising policies such as renewable energy, eco innovation and green financing, etc. Investment in renewable energy sources is crucial for achieving development. An increase in investment in renewable energy in the development goals are turn out to be the main concern of countries. This study examines the elements that influence the investment in renewable energy sources, as well as the importance of each aspect in case of China for the period of 1990–2020. We use Bayer-Hanck cointegration and Quantile Regression method to estimate the long run coefficients. To check the causal relationship among variables, this study employs Frequency Domain Causality (FDC) test. The results show that natural resource volatility is negatively related with investment in renewable energy. However, economic performance, technological innovation and energy efficiency have positive impact on investment in renewable energy. From results of quantile regression, it is inferred that as long as the effect of economic performance on investment in renewable energy loses trace of significance, the negative effect of natural resource volatility attains stronger statistical evidence. It implies that the positive impact of economic performance and negative impact of natural resource volatility on IRE changes its significance after a certain threshold level is achieved. There is evidence of uni-directional causality from GDP, TNR, TI and ENEF to IRE in all three runs. The findings of this study have important implications that can also be used by international organizations and other stakeholders in developing policies to improve the environment through renewable energies.

The Spillover Effects of Institutional Quality and Economic Openness on Economic Growth for the Belt and Road Initiative (BRI) countries

Several studies have been conducted to investigate the factors that influence Economic Growth (EG). However, the spatial impact of Institutional Quality (IQ) and Economic Openness (EO) was primarily disregarded, especially in BRI countries; only a few research offered proof of institutions’ involvement in boosting economic development. In this article, we increase the existing research on whether neighboring countries’ EO and institutions may also affect EG. Thus, we examine the spillover impact of IQ and EO on EG in a panel of 86 BRI economies over the period 1995–2019 using a Spatial econometric model. Our findings first prove the existence of spatial dependence in EG across nations. Secondly, the results also provide an indication of indirect institutional and EO spillovers. Institutions and EO inside a country contribute to its prosperity and growth and, as a result, have a beneficial spillover impact on the economic development of its neighbors. The BRI policy positive spillover effect on EG in the BRI allied countries and, consequently, create positive spillover effects on the economic development of neighbors. The best model is interpreted with a direct and indirect impact. Finally, the study ends with various policy recommendations for BRI nations regarding the effects of institutions, EO, and spillovers on growth.

Convergence or divergence? The effects of economic openness on low-carbon innovation in Chinese manufacturing industry.

Low-carbon innovation can address both economic and environmental concerns; patterns of low-carbon innovation convergence can determine the effectiveness of mitigating the adverse consequences of climate change. Considering that economic openness has a huge impact on the development of innovation capability, this paper uses a conditional β convergence model to examine the convergence of low-carbon innovation in Chinese manufacturing industry and its relationship with economic openness. We incorporate the spatial spillover effect into the convergence function by constructing spatial error model, spatial lag model, and spatial Durbin model. Based on a panel data set of 30 Chinese provinces over the period 2004-2016, the results show that low-carbon innovation in Chinese manufacturing industry has a strong feature of conditional β convergence. The convergence rate of low-carbon innovation is slightly slowed down by economic openness, and the main reason is that the spillover effect is weak and the convergence rate is slow in lower open areas, so the convergence rate of the whole country is slowed down by that of the lower open areas. Although the economic openness in adjacent areas can contribute to the development of local innovation ability, but generally speaking, economic openness in local areas takes a stronger effect in promoting the convergence of low-carbon innovation than that in adjacent areas. The findings have important policy implications as they suggest the need for a more equal degree of economic openness among Chinese provinces to speed up the convergence of low-carbon innovation.

Foreign Direct Investment and Economic Performance Nexus in ECOWAS: Does Human Capital Matters?

Human capital is an important channel through which foreign investment impact on economic performance and this has either been neglected or not given adequate attention by researchers. This paper therefore examined the nexus between foreign direct investment (FDI) and economic performance of Economic Community of West African States (ECOWAS) considering the imperative of human capital channel. A panel of 13 ECOWAS countries from 1980 to 2018 was utilised in a panel cointegration and autoregressive distributed lag estimation. The results indicated that FDI had a positive effect on economic performance of ECOWAS sub-region in the short run, and the effect became significant in the long run. Findings also revealed that human capital hindered the economic performance effect of FDI in ECOWAS, in the short rum and long run through life expectancy, but with a very weak positive impact through education in both time horizons. The paper recommended, amongst others, that ECOWAS as a body and her member nations should establish and entrench policies that would encourage FDI inflow and promote human capital in the sub-region Keywords: foreign direct investment, human capital, economic performance, ECOWAS DOI: 10.7176/RJFA/12-8-07 Publication date: April 30 th 2021

The Effect of Economic Openness, Democracy, and Institutional Quality on Indonesia Exports to ASEAN Plus Three

The ASEAN Charter Agreement and the cooperation of the East Asia Free Trade Area ASEAN+3 provide momentum for ASEAN countries to increase economic openness, strengthen the application of democratic principles, and improve institutional quality to enhance trade cooperation. This study aims to explore the role of economic openness, democracy, and institutional quality in increasing Indonesia's exports to ASEAN countries plus three during the 1996-2017 period using the augmented gravity model. The results showed that the openness of ASEAN+3 to trade (trade% of GDP), democracy, and institutional quality of Indonesia and ASEAN+3 as Indonesia's export destination had positive effects in increasing Indonesia's exports to ASEAN+3. However foreign direct investment in Indonesia and ASEAN+3 does not affect the export.
 Keyword: trade gravity model, economic openness, democracy, governance institution, Indonesia's export, ASEAN+3

Effect of Economic Performance on Subjective Well-Being

The effect of Economics on the subjective well-being of people has been usually studied by treating country information in the same way as data from individuals. The objective of this paper is to analyze 17 Latin American countries with data from 2016, by including both effects handled into two different levels accordingly. This work contributes to extend the current debate regarding the impact of Economics on subjective well-being of people by applying the multilevel method. Some of the findings revealed that both the individual economic situation as well as the welfare state and the rule of law of a country generate effects on subjective well-being. Similarly, the effect of interaction between some variables was analyzed, and it was concluded that people with great economic difficulties have a stronger relationship with subjective well-being in areas of higher government spending and higher tax burden.

PENGARUH PENGUNGKAPAN SUSTAINABILITY REPORT DAN LEVERAGE TERHADAP KINERJA KEUANGAN PERUSAHAAN (Studi Empiris pada Perusahaan Sektor Pertambangan yang terdaftar di BEI Tahun 2012 – 2017)

The Purpose of this research is to analyze (1) the effect of economic performance on corporate financial performance, (2) the effect of environmental performance on corporate financial performance, (3) the influence of social performance on corporate financial performance, (4) the influence of leverage on corporate financial performance using a ratio profitability (ROA). The population in this study are mining sector companies listed on the Stock Exchange in 2012 – 2017. The number of companies sampled in this study were 10 companies. The data collection method used is the documentation method. The technical analysis of the data used in this study is multiple linear regression. The results of this study indicate that the disclosure of economic performance partially does not affect financial performance in a positive direction, partial disclosure of environmental performance does not affect financial performance with negative direction, partial disclosure of social performance does not affect financial performance with positive direction and partial leverage significant effect on financial performance with negative direction. Simultaneously Sustainability Report disclosure and leverage have a significant effect on the company's financial performance

Transboundary water pollution and promotion incentives in China

This paper discusses the causes of water pollution at political borders in China from the perspective of promotion incentives. Officials are promoted based on the achievements of standards that are categorized into (1) the expected targets that should compete with other officials, such as economic performance, and (2) the binding goals that limit the minimum level of effort required, like pollution reduction. Using the dynamic panel and panel threshold model on cities along 18 major rivers in China, we analyzed how the government balances economic performance and pollution reduction targets and explained why the government neglects environmental regulation along political borders. We found relative economic performance is positively related to environmental enforcement effort. While the effect of economic performance on environmental regulation effort is non-linear. Relative economic performance is negatively related to the environmental enforcement effort when relative economic performance is lower than the threshold; for the other, relative economic performance is still positively connected to environmental regulation effort. The relative economic performance of downstream border cities is far below the panel threshold, and governments cannot obtain a competitive advantage regarding economic growth. The absence of promotion incentives results in the neglect of environmental supervision for governments at borders.

Analysis of Influencing Factors on Sustainability of Textile Wastewater: a Structural Equation Approach

The purpose of this study was the identification of the major factor for sustainable development in textile industries and preferred textile wastewater management practices for environmental protection. Moreover, a structural framework for sustainable textile wastewater management concept in the textile industry was developed, and further, the proposed model was examined based on the effect of economic performance, environmental impact, and operational performance in textile sectors. Therefore, to achieve the above issues, major factors were identified through exhaustive literature, and then a test was conducted for the reliability of the proposed constructs for validation. However, there was no specific study on the sustainability of textile wastewater management principle by using exploratory structural equation modeling (SEM). Finally, the proposed structural model was validated by confirmatory factor analysis (CFA) and structural equation modeling with the help of the SPSS software package.

Analysis of the Effect of Economic Performance and Population on Natural Disaster Death in Indonesia

Analysis of the Effect of Economic Performance and Population on Natural Disaster Death in Indonesia

Do economic openness and institutional quality influence patents? Evidence from GMM systems estimates

By using GMM estimators for unbalanced panel data, we examine the effects of institutional quality, trade openness, and FDI flows on innovation in 84 countries for the period between 1996 and 2014. Our results show that, although institutional quality appears as a vital driver for patent applications, FDI flows and trade openness have different influences. Precisely, higher inward FDI flows have a positive effect on the number of patents whereas trade openness might have a negative one. We afterwards discuss the influence of institutional quality on these two effects by showing that the effects of economic openness are enhanced by the improvement of institutional quality. These results are important for policy makers in setting-up the short-run and long-run policies to sustain economic growth.

(A Study on the Effects of Economic Openness on Korea's Income Distribution)

Korean Abstract: 본 연구에서는 한국의 분배구조에 대한 이해를 높이기 위하여 국내 소득불평등 현황과 원인을 정리하고 분배구조를 다양한 지표를 이용하여 분배구조를 측정하고 분해하였다. 또한 대외개방이 분배구조에 미치는 영향을 살펴보기 위해 이론분석과 실증분석을 실시하였다. 이를 통해 분배관련 자료정비, 중소기업 해외진출 활성화, 사회통합형 개방정책 추진, 무역조정지원제도 개선, 노동이동 활성화 등에 관한 정책을 제안하였다. English Abstract: The official statistics on income inequality in Korea are known as underestimated, the actual level of Korea is lower than that of the United States, but somewhat higher than those of Europe and Japan. Although their differences in the level of income inequality, government survey data show the same trends; inequality has risen since the mid 1990s, but it has been declining or stagnating since the beginning of 2010. The reasons for the changes in the income inequality in Korea include ① changes in the structure of the exporting industry, ② slowing of employment, ③ skill-biased technological change, ③ slowing of personal income growth, ④ proliferation of performance-based pay system, ⑤ population aging and changes in household composition.

The effect of Real Exchange rate on Unemployment Evidence from Egypt

This paper aims to investigate the effect of real exchange rate on unemployment in the Egyptian economy during the period 1985-2015. There are three channels of effect real exchange rate on unemployment; these channels are macroeconomic channel, development channel, and labor intensity channel. We used three methods to estimate this relationship. They are Autoregressive Distributed Lag Model (ARDL), Fully Modified OLS (FMOLS), and Dynamic OLS (DOLS). The results reveal that real exchange has a positive and significant effect on unemployment. There is no significant effect of economic openness on unemployment. Furthermore, the correlation between unemployment and the growth is negative and significant. Also, the effect of labor productivity on unemployment was positive and significant. We can conclude the depreciation the real exchange rate will decrease the unemployment.

Getting Ahead by Getting On the Right Track: Horizontal Mobility in China’s Political Selection Process

Political selection in China has received increasing scholarly attention. Conventional measures of political promotion may suffer measurement error because of an (implicit) assumption that the chance of cadre promotion is constant across government and party units after controlling for their hierarchical rank. In this article, the validity of this assumption is tested. Based on the analysis of the biographical data of thousands of provincial bureau leaders, a strong agency effect is identified; leaders coming from politically important bureaus—defined by their connections to the Central Committee of the ruling party—stand a significantly higher chance of promotion than those coming from the less important ones. Incorporating the agency effect, the authors develop a continuous measure of political turnover. Using this refined measure, the authors revisit the effect of economic performance on provincial cadre promotion. While a positive relationship is found, the effect is arguably too small to be substantively significant.

Conditional Motivated Reasoning

Using motivated reasoning, voters rely on partisanship as a heuristic for evaluating the economy in belief-preserving ways. Yet recent findings show that these motivations may be restricted by a range of contextual factors. We argue that partisan motivations in economic perceptions are moderated by the local economic context. As conditions worsen, a negative information environment leads in-partisans to political ambivalence that reduces confidence in party cues when evaluating the economy. As conditions improve, the motivation for in-partisans to rely on party cues is restored. As positive information has been shown to be less influential for opinion formation than negative information, and out-group members tend to be most prone to motivated reasoning, the economic context should moderate the political motivations of out-partisans to a lesser extent than in-partisans. A multilevel analysis of the 1980 to 2012 American National Election Studies supplemented with state-level data on unemployment and per capita disposable income supports this argument. The effects of in-party attachments on economic perceptions are diminished as economic conditions deteriorate and grow stronger as conditions improve. Moreover, the conditional effects of economic performance on subjective perceptions are stronger for in-partisans than for out-partisans.

Hard‐line Euroscepticism and the Eurocrisis: Evidence from a Panel Study of 108 Elections Across Europe

AbstractThe 2014 European elections led to a sharp rise in the electoral consensus of parties and independent parliament members perceived as eurosceptic. This paper analyzes the interconnections between distressed economies and the electoral success of hard‐line eurosceptic parties. On a panel of 108 elections between 2008 and 2015, the random‐effects model shows the relative effect of long‐ and short‐term political trust, economic performance indicators, and institutional variables in determining the rise of hard‐line eurosceptic parties. In contrast with previous studies, which have tended to de‐emphasize the effect of economic performance in determining the success of eurosceptic forces, the results of this paper detect both a direct and a mediated effect of the economic crisis on the electoral success of hard‐line eurosceptic parties.

The Impact of Globalization on Subnational Expenditures: Efficiency and Compensation Effects

The aim of this paper is to study the effects of economic openness and globalization on the structure of provincial government expenditures in Argentina. In particular, we are interested in the effects on social expenditures and its components, as an expression of the welfare state. Much of the existing literature has examined this relationship at the country level. This work contributes to this literature by extending analysis to the subnational sector. A dynamic panel data model is estimated using GMM – both in Differences and in Systems for the 24 jurisdictions of Argentina (23 provinces and the city of Buenos Aires) over the period 1993-2010. The paper includes a measure of globalization adapted from the KOF index proposed by Dreher (2006) which is estimated at the level of sub-national governments. Results indicate that economic openness and globalization have a negative impact on the participation of social expenditures. This is the expected result taking into account the “efficiency” effect versus the “compensation” effect.