Factor Of Economic Growth Research Articles

The Use of Information Technology in SMEs: Advantages and Main Challenges

Abstract From the beginning of the 20th century, a lot of research has been conducted on how SMEs contribute to the development of innovative activities and vice versa, on how new technologies and innovation have the potential to influence small and medium-sized enterprises (SMEs). Nowadays, given the highly competitive and dynamic business environment, SMEs are constantly and actively trying to find ways to keep up with the latest developments, which is not always an easy task. Digital technologies and innovation in business administration and other related fields are key attributes that can be seen as essential elements in the field of entrepreneurship. Thus, digitization has become a crucial factor in the business world, and its impact on SMEs cannot be neglected. Nonetheless, company size, capital and resources seem to limit SMEs’ ability to adopt digital technologies. However, countless studies argue that a smaller firm size allows SMEs to be more flexible to change. Therefore, both digital progress and innovation have become highly relevant tools for businesses to improve their performance, reduce their costs and increase their efficiency, and are seen as key factors for competitiveness, development and economic growth. With this paper we understand how Romania, with its expanding economy and support for entrepreneurs, has the potential to be a relevant player in the digital economy, although its current ranking on the level of digitization and innovation is considerably lower than the EU average.

Public debt, investment and economic growth dynamics: Do geographical proximity and spatial spillover effects matter?

This study employed an innovative spatial econometrics approach to analyze the spillover effects of foreign public debt and foreign direct investment (FDI) on regional economic growth dynamics of Eastern Africa. Specifically, we utilize Spatial Durbin Fixed Effect (SDM-FE) Model, drawing on balanced panel data from the World Development Indicators (WDI) for the period 1992–2019. This study contributes by utilizing a spatial weight matrix and investigating its interactions with economic growth and various other macro-regional factors, thereby unveiling the presence of spatial spillover effects and the impact of geographical proximity of countries within the region. Our results indicate that foreign public debt, FDI, gross fixed capital formation, human capital development, inflation, and government expenditure, significantly have spatial spillover effects on regional economic growth. Additionally, the results underscore the presence of regional growth divergence and provide further evidence of substantial regional spatial dependence in economic growth. Based on these outcomes, it is evident that foreign public debt has a negative impact on economic growth, which is consistent with the debt overhang theory and the crowding-out hypothesis. Moreover, the foreign public debt and regional growth policies should be devised considering the geographical interconnectedness between countries in the region, as the research output has revealed the impacts of growth and debt spillovers among the countries studied. Policies that prioritize these objectives would promote long-term regional economic growth and prevent the effects of excessive foreign public debt by creating a favorable macroeconomic climate.

PENGARUH INVESTASI, JUMLAH PENDUDUK, DAN INFLASI TERHADAP PRODUK DOMESTIK REGIONAL BRUTO DI PROVINSI JAWA TENGAH PERIODE 2014-2018

Gross Regional Domestic Product is a variable to see developments inCentral Java Province, which is a province that has the potential for a high levelof economic growth. Investment plays an important role as a driving factor foreconomic growth, both investment in the form of fixed capital and human capital.In addition, the population as an economic actor plays an important role. Inflationplays an important role is there any effect of high inflation on GRDP.This study aims to analyze the effect of investment, population, andinflation on Gross Regional Domestic Product in Central Java Province in 2014-2018. The research data used is the value of the Regional Gross Domestic Product(GRDP), the Gross Fixed Capital Formation (PMTB), the total population, andinflation. The data was processed by regression analysis of the Eviews12 paneldata using the Random Effect Model (REM) approach.The results of the study show that increasing investment from year to yearwill significantly increase the GRDP in Central Java Province. increasingpopulation increases the GRDP of Central Java Province significantly, stableinflation has not significantly affected the GRDP of Central Java Province.

Analysis of Influencing Factors of Economic Development and Growth

This article is based on the background of economic development and economic development is an important factor for a country or region to achieve prosperity and sustained growth. With the advancement of globalization and the rapid development of science and technology, economic development has become one of the top priorities for many countries. and reviews 12 literature on the economic development of China and other countries. It provides detailed reviews and suggestions on the ARDL model, multiple linear review model, spatial analysis method, and DSDM model to analyze economic growth factors, economic growth factors in some regions of China and Europe, and economic growth factors in fisheries, coal industry, tertiary industry, and tourism, The conclusion was drawn that Chinas overall economic development prospects are good and there are great opportunities, and the economic specialization of the European Union cannot ensure economic growth. Suggestions were given for the economic development of some industries, environmental economy, and green economy in China.

Формирование методологических подходов к инвестиционной политике в стратегии социально-экономического развития регионов

This article examines the application of scientific methodological approaches to the study of investment policy in the strategy of socio-economic development of regions: aspectual, conceptual, systemic, teleological, institutional, as well as economic growth. Analysis of the stated topic from the perspective of methodological approaches makes it possible to study the problems of the issue from various sides, identify problem areas, and formulate conceptual provisions of scientific research. In the process of applying a systematic approach, it is impossible to consider investment policy without taking it into account at the macro level. It is also necessary to work out the issue from the standpoint of the conceptual apparatus for the correct interpretation of future research results. It is worth noting that the study of investment policy as a factor in regional economic growth allows for the formulation of an identical methodological approach. Without an institutional methodological approach, the exploration of the issues outlined in this article is also impossible. The main conclusion is the importance of using the complexity of the applied scientific methodological approaches in the ongoing research. This comprehensive approach facilitates the identification of key challenges, formulation of strategic recommendations, and enhancement of policy effectiveness in achieving desired development outcomes.

Ways of Upgrading Macro-Economic Stimulation of Labour Productivity in View of Neo-Keynesian Economic Theory

The article analyzed the experience of economic system functioning in view of researching trends acute for resolving problems of labour productivity in Russia. The research goal is to find ways of optimizing economic policy of labour productivity stimulation. The author conducted theoretical research in raising labour productivity within the frames of neo-Keynesian theory and studied retrospective ideas concerning this problem in the previous classical economic theory. The research showed the emergence of ideas dealing with the role of labour in value creation, macro-economic balance between investment and remuneration in labour productivity. The author identified in theory and proved in practice the importance of raising labour productivity as a factor of economic growth. Based on empiric research results of economic policy were analyzed in certain fields, such as wages, investment macro-economic policy and technological policy of state. By using post-soviet economy of Russia as an example the author proved key economic theses about trends of economic policy necessary for stimulating labour productivity. The importance of macro-economic regulation and innovation was highlighted in view of foreign-economic sanctions and trade restrictions. Findings of the research demonstrate key trends needed to resolve the problem of raising labour productivity and put forward steps necessary to reach positive results.

Tax policy and activation of internal factors of economic growth: EU experience for Ukraine

The state policy of Ukraine aims to promote sustainable economic growth and improve its quality through economic activity, particularly through the optimization of the tax system, which is particularly relevant both during the period of martial law in Ukraine and the post-war recovery. The purpose of the study is to assess the formation and implementation of the state tax policy to activate the internal factors of economic growth in Ukraine under martial law. The study of tax policy in Ukraine and EU countries has shown that the EU countries are characterized by a consistent and transparent tax policy that stimulates investment, innovation, and entrepreneurship to activate internal factors of economic growth. The paper uses fiscal analysis based on the Cobb-Douglas production-institutional function; its main concept is the mutual location of the Laffer points of the first and second types and the actual level of the tax burden. The results show a noticeable adjustment of the real fiscal climate in Ukraine in line with changes in threshold fiscal standards. Considering martial law in Ukraine and the need for the state’s ability to post-war recovery, the study suggests changing the rates of specific taxes, after which it is necessary to make a transition from private fiscal instruments with inherent rate values to the aggregate fiscal burden.

The long-term effects of R&D subsidies on firm performance: evidence from a regression discontinuity design

ABSTRACT Innovation is the most important factor for economic growth, but the government’s ability to affect innovation outcome is contested. This paper presents quasi-experimental evidence on the long-term effects of R&D subsidies for small businesses. We use firm level data on Swedish applicants of the Eurostars R&D program during the period 2008–2019. We find that R&D subsidy has a positive and significant effect on turnover, employment and the number of scientific and technology workers. We also find positive effects on export but with some time lags. The effect is stronger on firms that are expected to be financially constrained, such as small and younger firms. We find that the subsidy effect on turnover, employment and export last for more than 7 years after the end of the project, which is consistent with explanations based on long-term channels such as improved competitiveness through the market introduction of innovative products.

Exploring Opportunities and Challenges of Destination Branding of Pokhara

The tourism industry is one of the fastest growing industry and has been a key factor for economic growth in several developing countries. But in the present era of globalization, due to rapid technological changes and increased global competition, destinations are now also directed towards branding themselves to deliver the correct brand image in the global arena. Pokhara has been the pioneer tourism destination and the market leader destination in Nepal. Due to the unique and stunning view of mountains, lakes and other natural, cultural as well as cultural amenities, Pokhara has been the first choice of tourists coming to Nepal and so it has been living with its self-made destination brand. This research has been carried on the same background to find the real essence of destination branding in an exploratory approach using In-depth Interview as the methodology of data collection. The opportunities and challenges of destination branding of Pokhara have been discussed using the various determinants. 5 experts were taken as the key informants from diverse fields in order to get the valid and reliable data. The research has provided with some framework of destination branding of Pokhara under the brand name ‘Paradise Pokhara’ and tagline/slogan ‘Nature, Culture and Adventure’.

“FDI AND ITS IMPACT IN INDIA”

A major factor in India's economic growth and development, foreign direct investment (FDI) is a game-changer. In this article, we take a look at how foreign direct investment (FDI) has affected different parts of India's economy and how it has affected things like job creation, technology transfer, and GDP growth. The paper explores the main factors that attract foreign direct investment (FDI) to India and the obstacles that stand in the way of this trend through an extensive analysis of previous research and empirical data. Keywords: Foreign Direct Investment, India, economic growth, employment, technology transfer

Development of Gresik – Mojokerto Railway Infrastructure to Accelerate Economic Growth in Gerbangkertosusila

The most important economic area in East Java is the Gerbangkertosusila (GKS) area. The GKS area between Gresik – Mojokerto is not yet connected directly, almost all goods have to go through Surabaya and Sidoarjo first. This results in high logistics costs and long travel times. The research method used in this research is a qualitative research method on economic growth factors in the GKS area. The factors considered in economic growth are population, number of people of productive age, number of people who are not yet working, minimum income/month, number of poorer people, percentage of poorer people, length of roads, number of people accessing the internet, number of telecommunication towers, length of roads damaged, investment value, export value, import value, and gross regional domestic product (GRDP). The analytical tool used in the research is a descriptive method to measure and assess the quality of economic growth and changes in regional economic growth factors, assisting strategic planning for the construction of new railway lines as the right solution for developing regional economic growth. Therefore, to accelerate economic growth and reduce logistics costs in the GKS area, a new railway line between Gresik - Mojokerto should be built. If logistics costs are low, it will reduce the price of goods and increase the opportunity to order goods and open up new jobs. If new job opportunities are opened, it will be possible to reduce the number of unemployed people by 375,392 people and the poorer population by 719,944 people. So it is hoped that it will increase economic growth to reach 7%. Only the Gresik and Sidoarjo regions have met this economic growth. Mojokerto’s economic growth is still 5.56% and lags behind other regions. If the construction of the new Gresik – Mojokerto train line is realized, then economic growth in the GKS region of at least 7% will not be difficult to achieve.

The Impact of Organizational Culture on the Innovation and Performance of SMEs: A Comparative Study between Germany and Thailand

Innovation is recognized as one of the key factors for economic growth and building a competitive advantage for small and medium-sized enterprises (SMEs) in today’s world. The purpose of this research is to investigate how innovation is related to organizational culture and performance of SMEs located in Germany and Thailand. Based on an extensive literature review, the authors propose a comprehensive research model that integrates the competing values framework, organizational innovation and the balanced scorecard framework. Data from 213 respondents across both countries were collected and analyzed utilizing structural equation modelling. Results show that despite their contrasting national cultures, adhocracy culture is a key driver of organizational innovation in both countries, leading to enhanced overall organizational performance, particularly in financial and customer dimensions. This study enriches organizational behaviour research with unique cross-cultural perspectives and equips leaders of SMEs with practical strategies for cultivating an adhocracy culture across diverse cultural landscapes.

Стратегирование коммерциализации инноваций в условиях отечественной экономики данных

Professor A.G. Aganbegyan defines a new transport and logistics infrastructure as a key factor of economic growth, welfare, and transformation of Russia’s socio-economic system. This new infrastructure should include two-way highways, high-speed railways, regional airports, and major logistics centers in key transport hubs. Unfortunately, such projects have a very long payback cycle that may last up to 20–25 years. Moreover, the investments may be as high as 3 trillion rubles annually. As a result, transport and logistics suppliers alone cannot support such a large-scale initiative. Domestic logistics is currently going through all the stages from 1PL to 5PL, which places very high requirements on the multimodality of transport and logistics in physical infrastructure, software, and hardware. These processes encourage research cooperation between industries aimed at developing novel interoperable R&D solutions. Russian transport and logistics infrastructure depends heavily on the railway industry: its main operational task is to maintain passenger and cargo traffic, as well as to provide safety. Under the current sanctions, Russian railroads face the challenge of developing and scaling advanced scientific and technical reserves. Technological independence relies on end-to-end production technologies, e.g., artificial intelligence algorithms, digital twins, etc., which impose requirements on data interoperability. This article describes the potential that domestic railway enterprises have for improving commercialization of innovations and technology transfer. The authors used the theory of strategy and the methodology of strategizing developed by Professor V.L. Kvint to design several recommendations on how railroad companies may increase their economic motivation to overcome various barriers.

Влияние корпоративной культуры на удовлетворенность сотрудников трудом

The article analyzes the impact of corporate culture on employee job satisfaction in a particular company. A general description of the concept under consideration is given, the relationship between the level of corporate culture, competitiveness of the enterprise and the prospects of using its employees to catalyze the growth of the organization is established. It is emphasized that employee labor satisfaction is a condition for achieving the company’s success in the market. It consists of many components that together determine an employee’s abil-ity and desire to develop and along with his own professional development to promote the company in the business community, ensuring its competitiveness. In modern conditions of rapid development of society and changing needs of citizens the focus of competition has shifted from technologies and products to corporate culture, human resources and psychological capital. In this regard, employee job satisfaction is presented in the article as a key factor of economic growth of any company.

Legal Protection of Investors in Investment Activities to Support Development in Indonesia

Achievements in the economic field can be done in several ways, one of which is investment. Developments in investment are one of the factors in Indonesia's economic growth. Economic growth can support development in Indonesia. For the right investment to occur, it can affect the welfare of the people in Indonesia. Legal protection aims to protect the public from all arbitrary actions that can violate the rule of law. The purpose of legal protection is to create order and peace in society

Russian fast-growing companies: Strategic analysis and assessment of their development potential

Subject. This article discusses the factors of economic growth and the development of innovative technologies and the labor market. Objectives. The article aims to develop tools to maintain economic growth rates and maintain competitive advantages in the market. Methods. For the study, we used the general scientific research methods. Results. Based on the analysis of the criteria for the inclusion of Russian fast-growing companies in various ratings, the article proposes alternative development strategies formed taking into account the strengths and weaknesses of economic entities, external opportunities and threats. Conclusions. For companies looking to maintain or accelerate growth, a flexible strategy for responding to environmental factors is an important prerequisite for success.

Unequal impacts of urban industrial land expansion on economic growth and carbon dioxide emissions

AbstractIndustrial land drives economic growth but also contributes to global warming through carbon dioxide emissions. Still, the variance in its impact on economies and emissions across countries at different development stages is understudied. Here, we used satellite data and machine learning to map industrial land at 30 m resolution in ten countries with substantial industrial value-added, and analyzed the impact of industrial land expansion on economic growth and emissions in 216 subnational regions from 2000 to 2019. We found that industrial land expansion was the leading factor for economic growth and emissions in developing regions, contributing 31% and 55%, respectively. Conversely, developed regions showed a diminished impact (8% and 3%, respectively), with a shift towards other economic growth drivers like education. Our findings encourage developing regions to consider the adverse effects of climate change during industrial land expansion and that developed regions prioritize human capital investment over further land expansion.

A STUDY ON THE IMPACT OF CRIPPLING CHINESE ECONOMY ON MULTINATIONAL CORPORATIONS: INDIA’S FDI APPROACH

This project explores the multifaceted impact of a crippling Chinese economy on Multinational Corporations (MNCs) and examines their strategic responses. As disruptions in China ripple through supply chains, reshaping market dynamics, and introducing regulatory ambiguities, MNCs must skillfully navigate these challenges to uphold resilience and pursue sustained growth. Concurrently, India also emerges as a potential alternative for MNCs seeking stability and growth opportunities beyond China. This research paper delves into understanding the factors of Chinas economic growth over years, the cause for the downfall, and strategic measures that India can adopt to harness the potential inflow of FDI amidst the evolving global economic landscape, such as policy reforms, infrastructure development, and sector-specific incentives. The analysis section examines the major factors that determine the economy such as GDP growth rate, Population, FDI, Youth unemployment rate, GDP Per capita income and forecast of Indias momentum in FY25 based on secondary data. The conclusion emphasizes the central theme of harnessing Indias vast growth potential while confronting the key challenges that impede its expansion. By implementing strategic policies and precise reforms, India can sustain its robust growth trajectory, surpassing the $5 trillion threshold. KEYWORDS: Economic Landscape, Crippling Chinese economy, Indias measures, Multinational Corporations (MNCs), FDI, Sustained growth, Strategic policies, Challenges.

MACROECONOMIC FACTORS OF ECONOMIC GROWTH IN LOW DEVELOPING COUNTRIES FOR EXAMPLE ZAMBIA

Currently, the issue of the influence of economic growth factors in low-development countries on the policy of improving economic well-being is widely discussed. The study showed that to the extent that government spending and rents on natural resources have a beneficial effect on GDP growth per capita, private direct investment affects economic growth significantly more than public investment. On the contrary, the increase in labor resources and inflation are holding back economic growth in these countries. This article examines the dynamics of Zambia's economic development, which has historically faced various problems, including dependence on copper exports, severe economic fluctuations and a low level of human capital quality. The authors emphasize the importance of diversification beyond the copper industry, as well as initiatives that promote agriculture, tourism, cultural development and renewable energy sources become potential paths for sustainable growth. The article also reviews the role of technology and innovation in moving Zambia towards a knowledge-based economy, contributing to increased competitiveness on the global stage. The Government should focus on improving infrastructure, especially in the fields of education and health, which play a key role in building up the country's human capital and export potential.

The Influence of Entrepreneurial Spirituality and Social Media Adoption on the Sustainability of MSME Performance Mediated by Innovation Capability (Survey on MSMEs in the Tourism Area Sunan Drajat Lamongan)

Technological advancements, computerization, and globalization have made businessescompetitiveacrossallindustries. Micro, small, and medium-sizedenterprises (MSMEs) continue to encounter difficulties with resource scarcity and technology adoption, although accounting for over 80% of employment and contributing to 61.97% of the GDP (gross domestic product). The Sunan Drajat Lamongan Religious Tourism Area is a home to hundreds of MSMEs, ranging in size from apparel and souvenir shops to restaurants. The number of visitors rises dramatically throughout the holiday season before becoming quiet, as is common with tourism in general. Entrepreneurship is a key factor in economic growth and serves as the primary driving force for innovative and long-term growth. By leveraging social media to enhance a company’s competitive advantage throughout the entrepreneurship and operation phases, entrepreneurs who possess an entrepreneurial mindset can aid their organizations in efficiently adapting their organizational framework and processes, thereby mitigating environmental conflicts and tensions within the intricate framework of a dynamic business environment. By using social media, MSMEs may reach their target audience with content and information without having to personally meet them. Social media also offers information in the form of customer reviews of goods, services, and even new ideas for sustainable MSMEs. This study aimed to determine how MSMEs’ use of social media and their ability for innovation can impact their success in Sunan Drajat Lamongan’s religious tourism industry. The data were obtained from 132 small and medium-sized enterprises using questionnaires. Path Least Square (PLS) and descriptive analysis were the methods utilized to analyze the data.
 Keywords: entrepreneurial spirituality, social media adoption, innovation capability, sustainability of MSMEs performance