Force Of Economic Growth Research Articles

LMDI decomposition analysis of total electricity consumption growth in Hunan province

In the past decade, as an important driving force of economic growth, the China’s electricity consumption growth rate has been decoupled from GDP growth rate. The economic reasons behind this abnormal phenomenon are worthy of further study. Based on the LMDI method, this paper built a model to decompose the total electricity consumption in Hunan province from 2010 to 2017 from the industrial and residential perspective. The results showed that: integrally, scale effect was the main driving factor of electricity consumption growth, intensity effect was the main inhibiting factor, and structure effect had no obvious influence; there are significant differences between the results of industrial and residential sectors, for the industry, the productive consumption intensity effect was the most significant factor that inhibited the growth of electricity consumption, while all the effects of residential sector were shown as promotion, and the increase of electricity consumption in the residential sector played a key role in the growth rate of electricity consumption in Hunan province.

Over-The-Top Media in Digital Economy and Society 5.0

Indonesia has entered global economic development based on innovation, technology and knowledge. This is the first point where it becomes the driving force in economic growth. In this, in Indonesia there is a population of millennials who have new creativity and innovation that makes the potential that can increase economic growth based on the digital economy and pursue the Society 5.0.. Nowadays, innovation and creativity are the key to success in economic development in the era of globalization. It is also closely related to the intellectual property system. In the era of globalization, developed countries are those who are able to utilize intellectual property as a driving force for the economy through new science, technology, creativity and innovation. One of the changes in the media is Over The Top (OTT), which is quite popular either in the world of telecommunications, world governance or academic world. In the digital era, some companies implemented a system that will change the company's digital revolution. Some companies need to restructuring their type of business based on digitalisation.

Analysis of Superior Commodities in Agricultural Sector in Some Districts of North Sumatera Province

Realization of regional economic development requires policies that are endogenous development. Each region has a base sector as the main driving force in economic growth. The base sector must have resilience between other sectors and have a high contribution to the formation of total regional economic output. North Sumatra is one of the provinces in Indonesia which has a tendency towards economic structure in the agricultural sector. Viewed from the field of business, the agricultural sector provides the highest contribution in the formation of GRDP. North Sumatra has 25 districts with a variety of geographical conditions having varied natural resources that need to be intensified and explored. The purpose of this study is to analyze the leading commodities of the agricultural sector and find out how much the impact of the leading sector on the growth of North Sumatra GRDP in the period 2014 - 2018. The method of analysis in this study uses the Location Quotient (LQ) analysis, Revelead Comparative Advantage (RCA) analysis, and Panel Data Regression Analysis. The estimation results show that the agriculture, livestock, hunting and services sub-sectors, the forestry sub-sector and the fisheries sub-sector have a positive and significant effect on the economic growth of the province of North Sumatra. The economic growth variables can be explained by 89 percent by the variables of the agriculture, livestock, hunting and service subsectors, the forestry subsector and the fisheries subsector while the rest are explained by variables not included in this study.

ANALISIS INDUSTRI OTOMOTIF DI PROVINSI DKI JAKARTA, JAWA BARAT, JAWA TENGAH, DAN JAWA TIMUR

The automotive industry is one of the most important driving forces of economic growth. The development of the automotive industry in the provinces of DKI Jakarta, West Java, Central Java and East Java is very strategic, so the purpose of this study is to test and analyze the inputs that have a significant effect on the output of the automotive industry in the area. The method used is panel data regression for the period 2010-2014 because it follows the 2009 KBLI. The automotive industry ISIC code is 29100-29300 and 30911-30912. Estimation results show that capital, labor, raw material and energy inputs have a significant positive effect on the output of the automotive industry. This means that Cobb Douglas's theory can be used to explain automotive production in the area.

Meta-Understanding of Environmental Perception in Tourism: Implications for China’s Tourist Attractions

Tourism is a global force in economic growth. To provide policy suggestions for advancing the tourism industry, we adopt a primary indicator, environmental perception, to examine tourism development. We conduct a nationwide meta-analysis to collect the environmental perceptions of residents and tourists in China, i.e., the satisfaction of an attraction’s environment. We analyze the collected information about the environmental perceptions, score the information, either negative (0) or positive (1), and sort these scores according to four socioeconomic classes (administrative units, attraction rating, ticket price, and attraction type). Our results show that residents’ and tourists’ degrees of satisfaction with environmental perception vary significantly among different classes and that unsatisfactory environmental perception indicates potential problems in the environment, products, and services provided by tourist attractions. Accordingly, we propose suggestions to address unsatisfactory environmental perceptions in each class, aiming to improve the degrees of satisfaction with environmental perception and to promote sustainability in tourism development.

Macro Governance and Profitability around the World: A Methodological Improvement

There is a multitude of country studies between 2000-2018 that focus upon the relationship between corporate governance and profitability, with mixed results because studies have generally focused upon historic book value ratio measures of profitability such as Return on Assets (ROA) and Return on Equity (ROE), rather than based on market values. Thus, the purpose of this paper is to examine the effect of macro governance environments upon aggregate dividend yield and earnings per share for developed and emerging stock markets as measures of profitability and to provide a useful methodology for correctly incorporating risk measures in a more controlled manner than many current papers undertake. Using an augmented version of the dividend growth model and allowing for the control of risk factors, we find that macro governance environments have a significant influence upon dividend yield and earnings per share. The results have policy implications for government policy setters as improvements to governance environments may induce portfolio equity inflow, which is increasingly seen as a driving force for economic growth. Future research papers should use our methodology to better model firm profitability and corporate governance within a market value context and recognise the limitations of ROE and ROA as they rely upon less relevant book market values. Further, studies need to better capture interaction effects between macro (country-specific) and micro (firm-specific) governance.

Enhancing Entrepreneurship in Rural Tourism for Sustainable Development: A study on Hirapur Village of Odisha

Tourism is one of the largest and fastest growing industries today. With rapid tourism growth, a diversification of tourism products and destinations is taking place with increased demand for new alternative types of tourism. Rural development is increasingly associated with entrepreneurship, which is considered as a central force of economic growth and development. Tourism's role in rural development is basically an economic one and can help to sustain and improve the quality of life in rural areas. Tourism involves mostly small enterprises, so the role of tourism entrepreneurs can be important for the development of rural tourism. Of all economic sectors, tourism is perhaps the one in which the greatest degree of involvement is needed by the entrepreneurial sector in formulating sustainable strategies. Especially in rural tourism, entrepreneurship has gained an increasing importance as it is seen as a major driving force behind rural tourism. Hirapur village is located at a distance of 15 km southeast of Odisha capital Bhubaneswar in Khurda district of Odisha. Hirapur is best known worldwide for the famous 64-Yogini tantric temple. Though the smallest of nine such Yogini shrines discovered in India, this ninth century shrine has been the best preserved temple of its kind in the country for undertaking any study on tantra cult. For its proximity to the capital city apart from its historical, archaeological and cultural relevance, it received a large chunk of travellers and researchers from abroad. This paper aims to increase an understanding of the importance of entrepreneurship in rural tourism in Hirapur village and to identify the ways of enhancing entrepreneurship in tourism, which can contribute to the sustainable rural development.

Increasing and Diminishing Returns – Africa’s Opportunity to Develop

Marshall’s observation also applies to today’s migration patterns: from countries where most activities are subject to constant or diminishing returns to countries whose key economic activities are subject to increasing returns to scale. Diminishing returns occur when one factor of production is limited by nature, which means that it occurs in agriculture, mining, and fisheries. Normally the best land, the best ore, and the richest fishing grounds are exploited first, and – after a point – the more a country specializes in these activities, the poorer it gets. OECD (2018) shows how this occurs in Chilean copper mining: every ton of copper is produced with a higher cost than the previous ton. In Alfred Marshall’s theory, the ‘Law of Diminishing Returns’ is juxtaposed with ‘The Law of Increasing Returns’, also called economies of scale. Here we find the opposite phenomenon; the larger the volume of production, the cheaper the next unit of production becomes. Traditionally economies of scale were mainly found in manufacturing industry, and increasing returns combined with technological change has for centuries been the main driving force of economic growth. Increasing returns creates imperfect competition, market power and large barriers to entry for challengers – companies or nations – making it difficult for them to enter these industries. In contrast to the rents produced under conditions of increasing returns, raw materials – commodities – on the other hand, are subject to perfect markets, and productivity improvements spread as lowered prices. This is the essence of the theory which explains why former World Bank Chief Economist Justin Yifu Lin was correct when he asserted that ‘Except for a few oil-exporting countries, no countries have ever gotten rich without industrialization first’ (Lin 2012 : 350).

Fiscal policy and national saving in emerging Asia: challenge or opportunity?

Emerging Asian economies have been acknowledged with a relatively high saving rate for several decades compared to other parts of the world. Higher saving presents an opportunity for this region since it is considered a source of sustainable economic growth. However, average national saving rate in emerging Asia is on the verge of decline. If this is true, then governments in the region could face great challenges in pursuing their sustainable growth path. This paper investigates whether governments can use their traditional tool of fiscal policy to influence national saving, and counteract the declining trend. Using a panel data set of 16 emerging Asian markets from 1990 to 2016, the empirical findings point out several problems in the region. Fiscal authorities do not seem to be concerned about stabilizing the national saving rate. However, the national saving rate behaves in a Keynesian manner to fiscal policy. There is a lack of evidence that the region has effectively used the savings as a force of economic growth. Policy implications are also discussed.

China’s Supply-side Reform: Background, Theoretical Models and Implementation Paths

Everything is changing. Drastic changes also take place in the international situation. This paper elaborates that human being is currently in the downward phase of the fifth long-term cycle after the industrial revolution, which is the global political and economic background of China’s supply-side reform. Seen from the supply-side, the author thinks that the main driving force for economic growth is the combination of labor, capital, land and natural resources, technological innovation, and system and also their comprehensive efficiency therefrom. From the viewpoints of these five major factors and their motion rule, the paper establishes a theoretical model for these factors and their motion rule in the supply-side structural reform and then clarifies the position of the government and the enterprise clearly. Further, based on long-term view and the theoretical model, the paper put forward that the main driving force to promote economic and social development and upgrading under the background of China’s supply-side structural reform is to release the potential of supply-side factors, to foster the “new economy” with new technological revolution as the core and to optimize the overall economic structure in China. The paper also suggests that China’s supply-side structural reform shall be based on the current situation, take a long-term view and implement the “three step” strategy.

Стимулирование внутреннего спроса как фактора экономического роста (на примере сферы внутреннего туризма)

Стимулирование внутреннего спроса как фактора экономического роста (на примере сферы внутреннего туризма)

: (Digital Innovation and Policy Challenges: Focused on Major Countriess Cases and Their Implications)

Korean Abstract: 인터넷과 ICT가 산업 혁신을 촉진하는 핵심요소로 크게 주목받으면서 디지털 산업혁신을 위한 각국의 정책적 노력이 확대되고 있다. 본 보고서는 디지털 산업혁신의 이론을 체계적으로 제시하고, 범용기술로서 ICT의 산업별 생산성 파급효과를 검증하는 한편, 주요국의 디지털 산업혁신 역량을 요인별로 비교분석하였다. 그리고 디지털 산업혁신을 주도하는 미국, EU 및 독일, 일본, 중국의 정책을 체계적으로 분석·평가하였으며, 이상의 연구결과와 한국의 정책에 대한 검토를 토대로 디지털 산업혁신의 정책방향을 제시하였다. English Abstract: The digital transformation, which is often called as the Fourth Industrial Revolution, is attracting attention as a new driving force for economic growth. Digitalization is emerging as a measure to mid- and long-term trends, such as demographic change and transition to a low-carbon economy, while leading economic and industrial innovation. It is confirmed empirically that for high-income countries including the United States, digitization contributes to productivity improvement in other industries. However, these effects differ from country to country depending on the capabilities of digital innovation such as ICT infrastructure, R&D investment, ICT industry competitiveness, legal system, human resources, business use of ICT, and entrepreneurial activities. In Korea, ICT infrastructure is world-class, and ICT adoption and utilization are highly competitive. However, the competitiveness of ICT services, the effectiveness of R&D investment, contribution to innovation, legal system, human resources and entrepreneurial activities are far behind. By contrast, the United States has the highest level of competitiveness in ICT export, R&D investment and innovation, human resources and entrepreneurial activity. These factors are key concerns of the countries' digital innovation policy, and each country is making a policy effort centering on it. The digital innovation policies of the United States, EU, Germany, Japan and China are similar due to the general characteristics of digital transformation, but they vary according to the capabilities and circumstances of each country. As in our analysis, the United States most clearly demonstrates the general purpose technology hypothesis that ICT capital contributes to increased productivity in the industry. In the United States, ICT has been a key driver of economic growth since the 1980s, and digital innovations led by Internet platform companies have become a source of mid- and long-term economic growth in the Obama administration. Recently, in the United States, innovation in the digital innovation is dominated by ICT or Internet service companies, and traditional manufacturing companies are also reviving through digitization. The US government is constantly investing in strategic research areas and advanced technologies required for digital innovation based on Strategy for American Innovation or NITRD, a government-level IT research and development program. In addition, the federal government operates a Chief Information Officer (CIO) and a Chief Technology Officer (CTO) to improve digital-based government management and to accelerate industrial innovation. The private sector is leading digital innovation while the government focuses on R&D investment in digital industry platforms and basic technologies such as big data and Internet of Things, solving public problems using ICT, and building consumer information protection systems.

SMEs and product mix decisions: fact or fiction

Research over the years has shown that in order for any business to survive, the correct product mix must be offered to the market. If the product does not satisfy the needs of the market, its reason for existence can be questioned. This principle applies to all businesses – big or small. The question arises if SMEs adhere to this fact and, if so, how they go about doing this. SMEs over the world make huge contributions to economic growth and job creation and are seen to be a driving force for economic growth and development in any economy. In the highly competitive environment that SMEs operate in, selecting the right merchandise for the right customer is important and, in most instances, its ability to survive or perish. This study aimed to determine if SMEs in South Africa make decisions regarding the product mix and, if so, if they conform to different profiles regarding the decisions that they make. A questionnaire was used to collect the data and was sent to SMEs around South Africa operating in different industries. The results indicated that SMEs in South Africa consider product characteristics, consumer behavior and strategic aspects when making product mix decisions. Keywords: merchandising, product, SMEs, product mix, business, South Africa. JEL Classification: M00, M300, M310

Entrepreneurial Growth Ambitions: The Case of Finnish Technology Startups

Technology startups are expected to be a major driving force of economic growth in Europe. The search for new high-growth startups has been particularly topical in Finland, the country that is known for its high-tech products – and the fall of Nokia’s mobile phone business. Although a record number of startups has been established in recent years, the previously identified challenge is that only a small percentage of entrepreneurial businesses are responsible for the lion’s share of economic benefits typically associated with entrepreneurial activity. Hence, we need better understanding of what level of growth technology entrepreneurs aim to create and why there may be differences in growth ambitions among them. In this study, we undertook interpretivist case study research in pursuit of rich, empirically grounded understanding of entrepreneurial growth ambitions in the context of Finnish technology startups. We interviewed entrepreneurs at a Finnish startup event and supplemented this information with data available publicly on the Internet related to the growth ambitions of startups. Our study sought to increase understanding of the different aspects of entrepreneurial growth ambitions, and to explore the relationship between context and growth. Based on the findings, we suggest that growth ambitions should be seen as a complex, socially constructed concept. The growth ambitions of entrepreneurs in our study were influenced, at least in part, by their startups' institutional and market contexts, the scalability of their business models, their personal characteristics and experience, and their perceptions of the barriers and constraints of the field. We conclude that startups have very different growth pathways: although the growth of one startup may depend on the talent of a few software developers, the growth of another startup may be based on its success in building international sales networks. As a result, to get most out of the support provided for a startup ecosystem, support activities should be tailored to different types of high-growth startups. Growing up is losing some illusions, in order to acquire others. Virginia Woolf (1882–1941) Author, publisher, and critic

Knowledge Capitalism, Globalization, and Hegemony: Toward a Socio-Spatial Approach

Within a socio-spatial theoretical approach, Knowledge Capitalism is a new capitalist phase of development emerging in the eighties of the 20th century, in which knowledge valorization becomes the principal productive force of economic growth. Globalization is understood as an essentially spatial concept, which refers to the spatial dimension of Knowledge Capitalism, that takes place accordingly with a new socio-spatial tendency in which it is the (global) geography of capital, which molds the geography of national states, implying thus a new pattern of geographical uneven development. The discussion of Gramscian hegemony concept is introduced to analyze the two hegemonic projects actually struggling for a supranational supremacy: (1) the crisis of the neoliberal project, which implies its own geopolitical economy spatiality; and (2) China, the BRICS, and the Global South asymmetrical hegemonic project and its geopolitical economy spatiality. Thus, globalization is an open process, which is actually and will be the result of different forms of re-articulation and re-hierarchization of spatial scales, depending on the hegemonic projects that prevail in the actual global struggle.

Services in Developing Economies: A New Chance for Catching-Up?

The paper analyses the potential contribution of services as a driving force of economic growth in developing countries within a Kaldorian framework. In doing so, we revisit Kaldor Growth Laws and econometrically test them for a number of economic activities (including four service branches) across twenty-nine developing countries from Asia, Latin-America and Sub-Saharan Africa during a time span of three decades (1975-2005). Panel data estimations are complemented with a decomposition of labour productivity growth by means of a shift-share analysis. The results induce to question the traditional role posed to services as unlikely drivers of productivity growth in developing economies. As a matter of fact, business services seem to allow productivity growth by the same Kaldorian mechanisms that have traditionally made manufacturing the key driver of growth.

The Impact of Technology and Innovation (Technovation) in Developing Countries: A Review of Empirical Evidence

Over the period since 1970s, developed countries have improved its relative productivity performance, but there remains a significant gap in market sector productivity between Developed and developing countries. Much of the gap between them is due to lower levels of capital intensity and skills. However, even taking these into account, there remains a significant gap. This reflects not just a weakness in high tech areas but an inability to absorb best-practice techniques and methods in wide swathes of the market sector. Part of this is due to a weakness in technological innovation despite a high quality science base. This includes comparatively low and falling levels of R&D and patenting as well as a distinct lag in the diffusion of innovations relative to other countries. This paper illustrates why technological innovation is considered as a major force in economic growth and focuses on some of the most distinctive features of innovation in the highly industrialized economies of the OECD area. In particular, the paper attempts to examine a primary single feature, “uncertainty” that dominates the search for new technologies by drawing several cases on the developed countries experience. It also touches on the impact of technological innovation in the developing countries and how it is transforming their business.

Does VC Spur Regional Innovation?

Studies of domestic and foreign scholars found that technological innovation is one of the key driving forces for economic growth. Venture capital (VC) had a new investment mechanism accompanied by the emergence technological innovation, and invested in a unique way and in a special operation mode, which determined the effective promotion of technological innovation. In this paper, the effect of VC on technological innovation was examined in two perspectives—“capital- increase effect” and “innovation propensity-increase effect”. Chinese provincial unbalanced panel data from 2009 to 2013 were gathered to verify the two effects above. And we also explored how VC affected regional innovation and its mechanism. The results showed that VC had a positive role in regional innovation promoting, and “capital-increase effect” can be verified. VC was to produce more innovations while reducing blind innovation input so as to improve innovation efficiency. The “innovation propensity-increase effect” can be verified.

Globalization and Pest Control: Equipping Nigerian Entomologists for Global Impact.

Globalization is defined as the integration of economic, political, and cultural systems around the world and it is recognized as a force for economic growth. It is powerfully driven by advances in science and technology, information and communication technology, anthropogenic activities of which the most dynamically expanding in frontiers are commerce, tourism, and humanitarian aids. As a consequence, trans-boundary insect pest species are increasing. We enumerate the consequences, economic, ecological and environmental impacts of insect pests on a global scale and posit that the competitiveness of the Nigerian Entomologist as a key player in the knowledge economy that drives national and international trade policies and regulations, national, regional, international pest management programmes is still at a very low ebb. To equip the Nigerian Entomologist for global impact requires designing educational programmes to enhance ability to shape, evaluate and implement policies designed to mitigate challenges of globalization; build both research and management capacity; strengthen and make more impactful contributions to national, regional, and international legal framework on phytosanitation; create and uphold public awareness; and promote international co-operation. We advocate commencement of an Entomology 1st degree programme premised on education for knowledge-driven development and entrepreneurship. Furthermore, the National Executive Council of the Entomological Society of Nigeria is urged to expedite action on the legal framework required to establish the Nigerian Institute of Entomology for the regulation and control of the profession.

Race to the top and the fear of falling

The rapid rise of a growing African middle class is one of the most dramatic transformations of the post-1994 period. Its emergence has long been a cornerstone of African National Congress (ANC) policy - the 'patriotic bourgeoisie'- with its rise being a central feature of former President Mbeki's economic policies. This middle class has long been the focus of considerable political, popular and scholarly interest. Much has long been placed on the shoulders of this newly expanding vibrant and powerful class. A class that is viewed as : central to de-racialising the political economy of apartheid; the driving force in economic growth; key to the ANC's continued power in government (a very senior member of the ANC alliance and government minister presented his PhD on the very question of the patriotic-bourgeoisie); the bulwark against revolutionary threats; and more.