Engine Of Growth Research Articles

What growth policies protect the environment? A two-engine growth model

This paper compares the effects of patent protection and subsidy policies on growth and the environment in a model where technology innovation and capital accumulation are both engines of growth. Pollution is a by-product of the intermediate goods, and can be reduced by public abatement activities. The results show that, compared to subsidies, stronger patent protection is a more promising tool for achieving a double dividend, i.e., simultaneously enhancing growth and improving the environment. By contrast, a uniform increase in the subsidy rate on R&D and capital stimulates growth but harms the environment, implying a trade-off relationship between growth and the environment. For sector-specific subsidies, an R&D subsidy is superior to a capital subsidy in terms of environmental protection, but this superiority fades away if the productivity of abatement labor or the public abatement expenditure is higher.

Pensions as an Engine of Growth. An Approach to the Spanish Case, Based on the Sraffian Supermultiplier

ABSTRACT In this paper, following Cesaratto's lead (Cesaratto, [2005]. Pension Reform and Economic Theory: A Non-Orthodox Analysis. Cheltenham: Edward Elgar, especially chapters 6-8), we measure the impact of pensioners' spending on output and employment in the Spanish economy in 2021 by means of the Sraffian supermultiplier, taking pensioners' expenditure as a component of autonomous demand. To do so, we follow another lead, from Dejuán (Dejuan, [2023]. The Supermultiplier. A Cornerstone of the New Macroeconomics. Cheltenham: Edward Elgar, chapter 10), who suggests using the Leontief inverse of an extended SAM (social accounting matrix) that also includes both induced consumption and expansionary investment as a multisectoral supermultiplier, or multiplier-accelerator. The weight of PAYG pensions to people aged 65 or older in 2021 is 8 per cent of GDP, and their expenditure ‘puts in motion’ 6,7 per cent of total production and total employment (directly, indirectly, and hyper-indirect or induced). The government recovers 42 cents in taxes for each euro spent on pensions. Pensions in 2050 are sustainable, either raising taxes on profits or if exports grow pari passu with pensions at a rate below historical records.

The Impact of Corruption on Unemployment in Indonesia

This research aims to analyze the impact of economic growth and corruption on unemployment in Indonesia from 1995 to 2023. The research results show that economic growth has no effect on unemployment because the engine of Indonesia's economic growth is a capital intensive sector. However, on the other hand, corruption has a positive impact on unemployment, so to reduce unemployment the government must enforce the law more firmly.

Relationship between trade and growth for developing countries at different levels of income

We explore the relationship between trade openness and economic growth for developing countries at different income levels using a simultaneous equations model from 2004-2019. The model is estimated using a full information maximum likelihood method for the developing high-income (HI), upper-middle-income (UMI), lower-middle-income (LMI), and low-income (LI) countries. We find that for developing HI, UMI, and LI countries, trade positively impacts growth which varies significantly in magnitude. Trade contributes significantly higher growth for developing HI countries when compared to developing UMI and LI countries. The results suggest that trade is positively related to growth, but it works as a handmaiden rather than a growth engine. On the other hand, for developing LMI countries, we find that trade negatively impacts growth. For developing LMI countries, trade contributes significantly to capital formation for these countries, leading to growth. Further, we also perform dynamic policy simulations based on the most advocated policies like increasing growth of exports, foreign capital inflows, curbing domestic inflation, etc. We find that these policies are not very effective in increasing the growth rate of the real per capita income.

PROSPECTS OF SMALL-SCALE RICE PROCESSING ENTERPRISE AMONG BENEFICIARY OF MICROFINANCE LOAN IN NIGERIA’S JIGAWA STATE

The present study empirically determined the prospects of rice value chain of paddy processors in Jigawa State of Nigeria. In spite of the role of small-scale paddy rice processors as the main engine of growth of upstream rice value chain; growth and development of rural economy in the study area, literature is undaunted with paucity of empirical information on the prospects of rice processing value chain in the study area. The study utilized cross-sectional data elicited through a well-structured questionnaire from a total of 200 processors (133 par-boilers and 67 millers) selected through a multi-stage sampling technique. An easy cost-route approach was used for data collection during the 2022 processing period and the collected data were analyzed using both descriptive and inferential statistics. Based on the empirical evidence, it is established that rice processing potential has not been fully exploited in the study area. In addition, it is evident that rice processing enterprise not only being viable and profitable; it holds a good prospect in the supply value chain of rice in the study area. However, for the prospects in the supply value chain to hold well, the target actors must adopt a defensive mechanism as inferred by the space matrix.

루마니아 내 한국학 교육에서의 북한학

Interest in Korean studies in Romania is gradually increasing. This is largely due to the heightened national status associated with the rapid growth of the Korean economy and the Korean Wave, which has rich and high-quality cultural contents. With this trend, Korean studies in Romania have created a large demand for education within a short period of time and are accumulating various research achievements. At this point, a more strategic attitude and effort are required to find long-term and stable growth engines for Korean studies. In addition to the development of human resources, which have played a central role in Korean studies education, communication from various perspectives for Korean studies research must be achieved. For the desirable development of Korean studies in Romania, where language education is the center, it seems that much discussion will be needed on what kind of educational contents are required and how these should be prepared and delivered to learners. The way to continue to raise the awareness of Korean studies, which has been heightened by the Korean Wave, is to operate Korean studies with rich educational contents. From this perspective, providing education on North Korean studies, especially their history, is considered necessary to build more diverse educational contents. The need for history education has been emphasized for overseas Korean language learners, but in fact, education about the history of North Korea, which is part of the Korean studies, has been taboo. We need to approach history more freely from ideological views and prejudices and instill in students a correct understanding of history. This is believed to be one of many problems that must be resolved for the development of Korean studies education.

Digital transformation and green innovation: firm-level evidence from China

The technological source of green innovation has been a persistent theme in environmental economics. In more recent years, digital technology has triggered a new round of social changes and is viewed as the emerging growth engine, leading to significant improvements in productivity and innovation. However, whether digital technology can promote green innovation remains an unknown issue. This study elucidates the causal relationship between digital transformation and green enterprise innovation for Chinese companies during 2009–2019. The findings indicate that digital transformation positively affects the quantity and quality of green innovation performance. Each standard deviation increase in the degree of digital transformation increases the quantity and quality of green enterprise innovation by 2.924% and 2.124%, respectively. Additionally, digital transformation drives green innovation by alleviating financing constraints and information asymmetries and improving human capital. This effect is more pronounced among enterprises in regions with high levels of environmental investment, clean industries, and stringent environmental regulations. By highlighting the linkage between firm-level digital transformation and green innovation, this study contributes to our understanding of the positive environmental externality associated with the diffusion of digital technology and offers valuable insights for the sustainable development of emerging economies.

Promoting culture and creativity in Ghana: bottom-up strategies for creative industries development

ABSTRACT The neoliberal turn in the cultural and creative industries has led to two distinct bodies of work. Global North scholars focus on the tension between the emphasis on the creative industries as an engine of growth and the unequal access to the means of cultural production and consumption that neoliberalism presents. Global South scholars face a different reality; the increasing inability of governments to provide institutional support, particularly finance, for growing these industries. This article documents grassroots alternatives to financial support from the state for growing a cultural and creative industry in the global South. Drawing on data generated from multiple sources about the work of two private institutions in Ghana, this article shows how private institutions and individuals can fundamentally shape the creative and cultural industries in ways that allow them to make their mark globally, even in the absence of financial support from the government.

Spatial analysis of digital economy and its driving factors: A case study of the Yangtze River Delta City Cluster in China.

The digital economy (DE) has become a major breakthrough in promoting industrial upgrading and an important engine for high-quality economic growth. However, most studies have neglected the important driving effect of regional economic and social (RES) development on DE. In this paper, we discuss the mechanism of RES development promoting the development of DE, and establish a demand-driven regional DE development model to express the general idea. With the help of spatial analysis toolbox in ArcGIS software, the spatial development characteristics of DE in the Yangtze River Delta City Cluster (YRDCC) is explored. We find the imbalance of spatial development is very significant in YRDCC, no matter at the provincial level or city level. Quantitative analysis reveals that less than 1% likelihood that the imbalanced or clustered pattern of DE development in YRDCC could be the result of random chance. Geographically weighted regression (GWR) analysis with publicly available dataset of YRDCC indicates RES development significantly promotes the development of DE.

Research on the Gatekeeper Mechanism of Data Platforms under the Perspective of Data

Since the fifth technological revolution, represented by artificial intelligence, emerged, data has become an essential driving force for social operation and an important engine for economic growth. Data analysis activities based on artificial intelligence big data analysis models have significantly improved social productivity, especially in promoting the tertiary industry. Data analysis enables precise user targeting, thereby making services more rational and refined. However, while these platforms apply and analyze data, non-compliant usage, illegal usage, and even criminal activities are prevalent. Consequently, the gatekeeper mechanism has been introduced in China as a safeguard mechanism for data compliance, serving as a baseline system to protect people's fundamental rights. This paper aims to explore the rationality of the "gatekeeper mechanism" and how to ensure the smooth implementation of this measure.

A Study on How Urban Rail Operators Can Secure New Growth Engines for the Future Approach: The Case of Underground Urban Logistics System

A Study on How Urban Rail Operators Can Secure New Growth Engines for the Future Approach: The Case of Underground Urban Logistics System

Structural Evolution and Its Determinants of Domestic Value-Added Network of Digital Service Exports Based on Temporal Exponential Random Graph Model

ABSTRACT Digital service trade has become an important engine of world economic growth, and its competitive landscape is also evolving. We construct domestic value-added networks of digital service exports (DVAN-DSEs) from 1995 to 2018 based on the world input-output table, and explores their structural evolution and determinants using Temporal Exponential Random Graph Model. We find that (a) the DVAN-DSEs present the features of agglomeration, heterogeneity, reciprocity and unevenness. (b) The United States and European countries are the core in DVAN-DSEs. (c) Preference attachment, structural embeddedness, delayed reciprocity, stability, variability, Matthew effect in GDP, population and Internet coverage, geographical proximity, cultural similarities, and regional trade agreements play important roles in the evolution of DVAN-DSEs. (d) Structural embeddedness and geographic proximity only facilitate new relationship construction, while other factors influence both relationship establishment and maintenance. Countries should build network facilities, expand trading partners and promote trade agreement negotiations to facilitate the development of digital service trade.

An Exploration of the Relationship Between Public Infrastructure and Economic Growth in Northeast India: A Panel Data Approach

In this article, we have used a panel data approach to explore the relationship between public infrastructure and economic growth in Northeast India using data from all eight states from 2004–05 to 2018–19. The findings reveal that all public infrastructures do not contribute productively to economic growth. Certain infrastructure sectors, such as agriculture-related and healthcare-related infrastructure, affect the growth prospects of the northeastern region of India. One plausible reason could be the current level of some public infrastructure, which is not developed sufficiently enough. Therefore, India must address the infrastructural gap in its northeastern region in order to leverage the region’s trade potential and establish it as the country’s growth engine. To meet the infrastructure demand with limited fiscal space, the government needs to foster an environment that encourages public–private partnerships in infrastructure. Sharing benefits with private participation could be another way to attract private investment in the infrastructure sector of the region. JEL Codes: C23, H54, O47, R53

A MODEL FOR CONSTRUCTION SECTOR DEVELOPMENT IN MIDDLE-INCOME SUB-SAHARAN AFRICAN COUNTRIES

Buildings and other constructed facilities form the essential framework of a country’s physical and economic infrastructure. Construction serves as a key capital input to production, driving economic growth and wealth generation. This impact can be particularly transformative in low-to-middle-income countries. Physical infrastructure, including construction, is a powerful engine of economic growth and is closely related to national economic performance. However, not all studies agree with the commonly held belief that construction investment has a positive impact on economic growth, particularly concerning the amount of investment and the relationship between construction investment and economic growth. So far, cross-country studies dealing with the construction sector-economic growth relationship have used indicators of national output and construction that are not strictly comparable between countries. This article reviews the main strands of the literature on the role that the construction sector plays in the national economy and economic development. It also uses novel data drawn from the “capital file” of the PENN World Table (version 10.1) to assess the development pattern of the construction sector in two groups of sub-Saharan African (SSA) countries on the middle-income status of economic development, for the period between 1990 and 2019. The study reveals that construction shares, measured as the proportion of gross fixed capital formation attributable to construction in the gross domestic product, revolve around a norm determined by the level of built assets preceding the reference period. The results of the study could have policy implications for the economic sustainability of the construction industry in SSA.

A Study on Strategies for Promoting Regional Economic Development through the Cultural Industry

With the vigorous development of the cultural industry across various regions, it is influencing regional economic development in unprecedented ways. As an emerging industrial form, the cultural industry, characterized by innovation, high added value, and low energy consumption, has injected new vitality into regional economic development. In recent years, the importance of cultural development to regional economic growth has been increasingly recognized. The development of the cultural industry not only enhances the cultural soft power of a region but also creates job opportunities, promotes industrial upgrading, and optimizes the economic structure, thereby driving the sustainable and healthy development of regional economies. In the new era, to promote economic development within regions, local areas should fully utilize and explore their cultural characteristics, making the cultural industry a key engine for regional economic growth. By integrating local cultural features and developing cultural industries with local characteristics, the competitiveness of the cultural industry can be enhanced, and the attractiveness and cohesion of the regional economy can be strengthened, thus promoting the common development of the cultural industry and regional economy, and achieving comprehensive progress in economy and society.

Internal control systems of SMEs in Nigeria: a proactive or reactive strategy against employees’ fraud?

PurposeThe purpose of this study is to determine the strategy adopted by small- and medium-scale enterprise (SME) owners in setting up internal control systems, examine the relationship between the numbers of employees’ fraud and strategy adopted in setting up internal control and evaluate the difference between proactive and reactive strategies in employee’s fraud prevention among SMEs.Design/methodology/approachA survey research approach was adopted to determine whether proactive or reactive strategies were adopted by the SME owners. Specifically, a survey questionnaire was used to gather primary data from selected respondents in Lagos and Oyo States. Descriptive statistics, Spearman correlation and the Mann–Whitney test were used to analyse the primary data.FindingsThe study found that most of the SME owners used reactive internal control strategies in setting up their internal control systems after they suffered financial losses occasioned by employees’ fraud. Also, the study found a positive relationship between the number of employees’ fraud and reactive strategy. Finally, the study found a significant difference in the number of employees’ fraud occurrences between proactive and reactive internal control strategies in SMEs.Research limitations/implicationsThe study provides further confirmation that where internal control is properly set up and strengthened, a lower number of employee frauds will occur. Thus, giving credence to the fraud theory. The study was, however, conducted in six selected local government areas in two states.Practical implicationsThe study provides recommendations on the adoption of a proactive strategy for curbing employees’ fraud at the onset of business operations and not until devastating events of employees’ fraud become a reality.Originality/valueThe study is original, as it focuses on the strategy adopted by SME owners in setting up internal control systems, which is rare in fraud empirical studies, particularly for studies conducted in emerging markets like Nigeria. It provides the need for the sustainability of SMEs as engine of growth and employment through the adoption of appropriate strategies in setting up internal control systems.

Analysis of the Potential and Performance of the Tourism Sector towards the Community (Study on Pasir Kencana Beach Tourism Area in Pekalongan City)

Purpose: Tourism has become a major growth engine in Indonesia and has helped the local economy and government. One of Indonesia's emerging economic sectors is tourism. Pekalongan is one of the most central cities in Java and has many natural and man-made tourist spots. To increase the attractiveness and sustain tourism, Pasir Kencana tourism in Pekalongan city should be properly managed. The objective of this investigation is to determine the extent to which community-based tourism (CBT) is being used, how it is implemented, and what obstacles are encountered in implementing CBT in tourism. Method: Data were collected through observations, interviews, and documentation. Data analysis was conducted through the use of the descriptive narrative method. Result: These results show that although the community has participated in tourism management, it has not reached the desired level. Pasir Kencana Beach is a good example of community-based tourism, evidenced by the activities of a good tourism outreach group (Pokdarwis). Constraints of community-based tourism management development strategies include promoting tourism, adding qualified human resources based on the field of education, using information technology to introduce and promote tourism to a wider audience; it is also possible to attract investors to help improve tourism-related infrastructure and develop tourism destinations by making the best use of available space and leveraging local uniqueness and culture to generate more revenue from visitors. Contribution: This research contributes to developing scientific concepts about community participation in developing tourist destinations.

Unlocking Urban Potential

This Survey highlights the role of urbanisation as a growth engine for Indonesia. With the country’s economy growing steadily, including by 5.11% in the first quarter of 2024, this Survey highlights the vital contribution of urban productivity to national income. Despite growth driven by non-tradable sectors and relatively strong consumption patterns due to Idul Fitri and general election events, urbanised areas face problems that hinder their productivity. Constraints in urbanisation—such as congestion, housing and pollution—decrease urban potential. Further, this Survey discusses institutional policies and alternative urban financing to improve urban productivity and foster sustainable urban development to help strengthen national economic growth.

Could a Logistics-centric Airport Serve as New Growth Engine in Provincial Areas?: The Case Study of Korea’s Southeastern Area

Could a Logistics-centric Airport Serve as New Growth Engine in Provincial Areas?: The Case Study of Korea’s Southeastern Area

THE EFFECTS OF MONETARY POLICY SHOCK: EVIDENCE FROM SYSTEMICALLY IMPORTANT ECONOMIES

In the paper, we explore the effects of monetary policy shock on the economic growth in systemically important countries such as the US, the Euro Area and China and their impact on Ukraine. Thus, the war in Ukraine and the rise of key policy rates by central banks to curb inflation have had a significant negative impact on economic activity. There has been both a significant decrease in trade activity and a slowdown in the services sector growth, which was the main engine of global economic growth at the beginning of 2023. Based on the vector autoregression model results, we demonstrated a slight initial decline of GDP growth with following stabilization in response to the rise of key policy rates in the US. In China, this decline is much bigger and constitutes 11% after the shock. In the Euro Area, we also observe a similar pattern as in the US with an initial decline up to 2% and a further return to equilibrium. Analyzing the results of the forecast error variance decomposition, we should note that GDP fluctuations in systemically significant economies are mainly explained by their own fluctuations. The key policy rate’s contribution ranges from 1% in the US to 11% in China. At the same time, economic growth in China is less vulnerable to inflation fluctuations, in the Eurozone we observe the most sustained one among the considered economies. In addition, the study shows that the key policy rate in the United States has a positive effect on the one in Ukraine.