Force Of Economic Growth Research Articles

The consequence of the digital economy on energy efficiency in Chinese provincial and regional contexts: Unleashing the potential

The digital economy, driven by advanced technologies, is becoming a new force for economic growth and sustainable development. This study investigates how the digital economy influences energy efficiency and its spatial spillover effects across 30 Chinese provinces from 2011 to 2020 using spatial econometric models and Moran's index analysis. While prior research focused on industrial value and micro-mechanisms, this work examines geographical impacts and regional synergies overlooked previously.The findings reveal urbanization and digital economy growth significantly enhance energy efficiency. However, the effects of economic structure, education, infrastructure development, and patent activity exhibit more nuanced patterns. Notably, the spatial spillover effects of the digital economy on energy efficiency operate through a "market + geographical comprehensive mechanism" rather than direct geographic transmission between neighbors. This study contributes to the literature by uncovering the complex relationships between the digital economy, technological innovation, industrial structure, and energy efficiency while accounting for spatial dynamics. The results underscore the importance of focused policies supporting sustainable energy practices based on regional contexts. By providing insights into the intricate interplay of factors influencing energy efficiency, this research informs strategies for optimizing energy utilization and transitioning towards a sustainable, secure, and affordable energy future aligned with net-zero objectives.

Impact of Foreign Direct Investment on Economic Growth

Foreign direct investment (FDI) is a force of economic growth. FDI fills the gap between demand for capital and supply of capital that rise the productive investment and economic growth within the country. This paper aims to investigate the impact of FDI on economic growth of the country. Engel-Granger cointegration test is used by employing the time series data of 1995/96—2021/22 and error correction model. Neo-classical growth model is the main basis single equation model whereas real FDI is explanatory variable and GDP is the proxy for economic growth. Cointegration results confirms FDI makes the positive impact on economic growth in short-run as well as in long-run. The error correction term (0.67) indicates the disequilibria of GDP move towards the equilibrium at the speed of 65% in successive year. Therefore, this paper concludes to raise the FDI flows within the country. The Government should make the favorable environment — control money supply, direct remittance towards productive sector—for foreign investors which leads to rise economic growth within the country.

How does digital transformation drive green total factor productivity? Evidence from Chinese listed enterprises

Digital transformation is a critical paradigm for advancing the in-depth integration of the digital economy and the real economy that can drive enterprises' green and low-carbon transformation. Previous research has primarily analyzed the relationship between digital transformation and green total factor productivity (GTFP) at the macro level; however, the impact of digital transformation on enterprises' GTFP as a force of economic growth and pollution management has been neglected. To fill this research gap, we explored the effects of digital transformation and associated micromechanisms on GTFP using a sample of Chinese A-share listed enterprises from 2004 to 2020. Furthermore, we launched a conducted heterogeneity analyses of the research themes from enterprise, industry, and province perspectives. We elicit three notable findings. (1) Digital transformation enhances enterprise GTFP, a finding that holds after endogeneity and robustness tests, including difference-in-differences and instrumental variable methods. (2) At the enterprise level, the benefits of digital transformation are higher for lower-growth and state-owned enterprises. At the industry level, digital transformation in manufacturing, non-high-tech, and non-heavy polluting industries has a stronger GTFP improvement effect. At the provincial level, provinces with higher intensities of environmental regulation and intellectual property protection are more effective in improving GTFP through enterprises' digital transformation. (3) Structural optimization and green technology innovation effects are two critical paths through which digital transformation affects GTFP. This study confirms that enterprises’ implementation of digital transformation strategies can achieve the benefits of performance growth, energy saving, and emissions reduction at the micro level, providing relevant insights driving digital transformation more effectively and stimulating the “digital dividend.”

The impact of a new techno-nationalism era on eco-economic decoupling

This is the first study to examine the eco-economic decoupling process and the forces of economic growth, national security policies, and social stability that it entails within the discipline of techno-nationalism. It offers valuable starting points for evaluating and contrasting the environmental impacts of the United States, China, Germany, Japan, and the United Kingdom. It has several technological characteristics and underlying explanations for its behavior. Based on decoupling and weighted values from 2000 to 2019, we approached the ENTICE-BR model. One may calculate the percentage change in a portfolio's return using beta decoupling. Fossil fuels and carbon dioxide emissions are evaluated for their weighted returns and associated risks. In this study, we find further evidence that eco-economic indicators lead to greater use of resources, energy, and emissions into the environment. The countries with the best portfolio returns were found to be Germany, Japan, the United Kingdom, and the United States. The results collectively point to the emergence of techno-nationalism as a primary factor in the expansion of the industrial, energy, and service value-added.

Editorial - Digital innovation – A driving force of change

In the contemporary landscape, the phrase “digital innovation” has become synonymous with transformation, revolutionizing the way individuals, businesses, and societies operate. The integration of digital technologies into various facets of our lives has not only accelerated the pace of change but has also emerged as a powerful driving force shaping the future. Digital innovation, at its core, refers to the application of digital technologies to create new or significantly improved processes, products, or services. The relentless evolution of technologies such as artificial intelligence, the Internet of Things (IoT), blockchain, and data analytics has unleashed a wave of transformative possibilities across diverse sectors. One of the key attributes of digital innovation is its inherent ability to disrupt traditional models, fostering a dynamic environment that rewards adaptability and forward-thinking. In recent years, innovation, especially innovation in technology has received great attention in business as a strategic way for resilience. Monge and Soriano (2023), after reviewing 119 articles published in the WOS over the period 2018-April 2022, provide the most complete and up-to-date review of digitalization from a global perspective, summarizing the current state of knowledge within an integrated framework. Ndesaulwa and Kikula (2016) have considered technological innovation as a major force in economic growth and are focused on some of the most distinctive features of innovation in the highly industrialized economies of the OECD area. Although the innovation is seen as a driver for economic growth, it is not certain if digitalization and other innovations will lead to full employment or to a long-term mass unemployment (Arsic, 2020). This author adds that “the employment will depend on the speed of adjustment of education system to technological changes and labor market requirements, as well as on the possibilities for vocational education and change in qualifications”.

Reviewing the role of cultural and creative industries in developing an urban cultural policy platform in Rasht city, Iran

Purpose In spite of controversies in academia, various nations around the world have been propounding the importance of cultural and creative industries (CCIs) as the driving force in economic growth and development strategies. Accordingly, this research aims to understand how these industries could contribute to forming a cultural and creative policy scheme in an urban context that is structured based on local cultural assets. Design/methodology/approach The case analysis of Rasht city, a UNESCO Creative City, assesses the planning policies from the national to the regional level to determine the cultural policy planning platform of Creative Rasht in four phases of urban cultural resources, municipal objectives, festival urban branding and the role of stakeholders, which are fashioned by the integrated cultural identity and sustainable city. This is followed by semi-structured interviews with experts and young researchers in the field of culture-led urban regeneration to evaluate different phases of the policy planning process. Findings By means of the qualitative method and ethnographic research, this paper argues that managerial regulations for local cultural industries contribute not only to the reinforcement of cultural resources but also to urban cultural sustainable development. Originality/value Building on empirical research, this paper attempts to argue the significant role of local CCIs alongside social values in creating a creative city platform, given the necessity for an urban cultural platform in Iran. It also emphasises the importance of local communities’ participation in the decision-making process and awareness-raising among different groups of stakeholders.

테러가 외국인직접투자의 유입에 미치는 영향

Foreign direct investment has been a driving force for economic growth in many countries around the world due to its many additional effects. Therefore, many countries around the world actively seek to attract foreign direct investment. Since the early 1990s, many studies have suggested that terrorism can have a negative impact on foreign direct investment (Kang and Lee, 2007; Shahzad et al., 2016; Shah and Faiz, 2015; Li and Vashchilko, 2010; Suliman and Mollick, 2009 et al.). However, although many studies have been conducted, the data on terrorism are from the early 2000s, and the number of research subjects is limited. This study empirically analyzed the effect of terrorism on foreign direct investment. Analysis shows that terrorism has a negative impact on foreign direct investment. In other words, as the number of victims of terrorism and the number of deaths from terrorism per number of terrorist attacks increased, the inflow of foreign investment was found to decrease. This suggests the need for a country to develop a policy to prevent terrorism and a means or policy to resolve disputes in order to attract foreign direct investment, which can become a driving force for economic growth.

Hazard Analysis of the German Car Manufacturing Industry and Related Business Eco Systems

Hazards and risks can endanger business systems and corresponding business eco systems (BES) in an existence-threatening way. Different reasons may cause technological changes, but stake holders should have a clear road map and strategy to guide through times of change and consider carefully the consequences. It is a matter of fact, that all industries are driven by changes in technologies, business models, processes, constellations, and systems. An appropriate response is a mandatory requirement for companies to survive. Innovativeness is the basis for competitiveness, profitability and sustainability of companies and corresponding industries. The car manufacturing industry is one of the most important industries in Germany and contributes about 12 percent to German GDP. This industry is a driving force for economic growth, employment and sustainability. This situation is endangered by various hazards and the German auto industry in particular shows strong signals, which indicate a radical technological and structural change. The hazard analysis points out an aggregate of threats and challenges for the business model and corresponding BES of the auto industry in Germany. The underlying thesis of this paper assumes that the existing business model is threatened. The question of research examines the influencing factors on the current business eco systems (BES) in this industry. The hazard analysis will disclose the various and complex impact factors. The transformation of the entire business system is inevitable due to the findings. Methodologically, theoretical, analytical and empirical approaches are used. Research on selected literature aligned at current national and international guidelines leads to a stable basis for the research. Statistical data, topical literature, surveys, and logical conclusions will lead to justified arguments. Keywords: Business system, Business eco system (BES), Car manufacturing industry, STEP-analysis, Hazard analysis JEL Codes: L91, M21, O14

The Sustainable Efficiency Improvement of Internet Companies under the Background of Digital Transformation

The digital economy is a driving force for economic growth in various countries. When the digital economy is deeply integrated with Internet companies, it also brings about great challenges to corporate innovation. This paper used the DEA-Malmquist model to measure the efficiency of the science and technology investment of 30 Internet-listed companies in China from 2011 to 2019, constructing a long-distance function and displaying the dynamic changes in the comparative efficiency of time and space. This research evaluated the digital maturity and digital experience of Internet companies under the continuous investment of science and technology, concluding that the investment in science and technology under the digital economy can improve the innovation efficiency of China’s Internet companies. Research shows that technology investment has a significant positive impact on the digitalization of Internet companies, but there is heterogeneity among different companies. Based on the theoretical research in this article and the empirical experience of in-depth digitalization, it also provides path suggestions for the in-depth development of digitalization of Internet companies. This research has important theoretical significance and practical value for further promoting the development of Internet companies and promoting the application of the digital economy.

Did Closing Borders to Tourists Save Lives? Tourist Arrival, Self-protective Leadership, and Covid-19 Casualties

International human mobility has been the driving force of economic growth and policy decisions for the tourism industry. However, the COVID-19 pandemic necessitated policy changes that explicitly limited mobility. Our research sought to examine whether closing borders to international tourists was related to the reduction in the number of COVID-19 fatalities, and the impact of country-level culturally accepted norms towards leadership in the implementation of these policy. This study builds on the call for further research on how tourism destinations plan for and respond to global crises and disasters. We used data from the World Bank and the GLOBE Project to test the direct effect of international tourist arrivals in 2019 on COVID-19 fatalities in 2020 and the moderating role of self-protective leadership on this relationship. Our findings supported our proposition that closing borders to tourists saved lives but selfprotective leadership is critical. In fact, a key contribution of our study is that attitudes towards leadership play an important role in the effectiveness of policy deployment during times of crisis; in particular, closing the border had a stronger impact in saving lives across countries where self-protective leadership is culturally acceptable and expected. Implications for destination management are also suggested.

Policies for Small and Medium Sized Enterprises’ Development in the Republic of Moldova: Results and Challenges

Small and medium sized enterprises (SMEs) are the main force for economic growth, but at the same time an extremely vulnerable sector, which constantly needs support from the state. Thus, one of the basic tasks in the state regulation of the activity of this sector involves the development of policies aimed to support small and medium business.

Factors affecting SMEs’ development in Vietnam

The enterprise's system, along with households and the government are the main factors in the production and consumption of the economy, which plays an extremely important role in the development of any country. Besides the large enterprises, which are often considered as the locomotives of the economy’s development, people are increasingly interested in a significant number of small and medium enterprises (SMEs) whose position and role has been confirmed through the actual economic development of many countries and economies. In Vietnam, the development of SMEs has been creating a driving force for economic growth and has become an important strategic direction in the country’s socio-economic development strategy. The article focuses on determining the factors affecting the development of small and medium-sized manufacturing enterprises in Vietnam. At the same time, the current paper evaluates factors affecting the development of these enterprises. The main factors expected to be focused on in the research include the level of production technology, government policies, raw materials, labor, management capacity, corporate social responsibility, green growth orientation, and global epidemics.

The Influence of Monitoring Practices on Agricultural Projects: A Case of Selected Donor Funded Projects in Kisii County, Kenya

The Performance of projects is considered a source of concern to both public and private sector. In Kenya Counties are useful engine and force of economic growth and recovery through provision of public goods and services. However, poor service delivery due to corruption, lack of accountability, nepotism and gross mismanagement in counties has increased the country’s cost of production there by adversely affecting Kenya’s external competitiveness and leading to loss of jobs and economic opportunities. Studies already done agree that monitoring practices is a determinant to project performance. Currently monitoring practices of projects in Kenya at counties are weak due to poor practices in place. The purpose of this study was to determine the influence of monitoring practices on the performance of donor funded agricultural projects in Kisii County. The objectives of the study were to determine: the influence of auditing on the performance of agricultural projects; the influence of progress review on the performance of agricultural projects; the influence of scheduled follow ups on the performance of agricultural projects; and influence of management by exception on performance of agricultural projects in Kisii County. The study employed theory of change to draw theoretical constructs that enhanced description of monitoring practices. Mixed research methods were adopted in the study which combined quantitative and qualitative techniques. The study adopted descriptive survey design since it enhanced use of quantitative and qualitative methods to investigate one or more variables. The study targeted projects staff and beneficiaries (N=215) working of various agricultural projects in Kisii County since they were deemed to have relevant attributes, such as knowledge on monitoring practices applied to determine progress of ongoing projects. The target population for this study included: Project Donors/Sponsors, Project Managers, Monitoring and Evaluation Officers, Project Officers, Project Coordinators, Finance Officers, Project Communication Officers, Team Assistants, Sub County Agricultural Sector Managers, County Agricultural Sector Managers, Project Consultants and beneficiaries. A sample of 140 projects staffand beneficiaries working in various agricultural projects participated in the study. Data collection was done using questionnaires, whereas SPSS version 24 was used to run descriptive and inferential statistics. Analysis of collected data revealed that donor organizations regularly use audit practice to assess and track progress of projects. In addition, the study established that donor organizations undertake a participatory oriented auditing process, where majority of the donor organizations have the capacity to effectively cope with dynamic auditing. Furthermore, the study established that donor organizations use progress review tools to assess performance of projects, where routine progress assessment augments timely delivery of projects. In addition, donor organizations undertake data verification to enhance monitoring credibility and objectivity in addition to use of key performance indicators to review progress of projects. Results indicated that donor organizations have adequate capacity in form of skills to undertake scheduled follow-ups. Besides, the study established that donor organizations regularly involve stakeholders when undertaking scheduled project assessment, where scheduled follow-ups ensure realization of project sustainability related goals. Evidently, it was clear that donor organization use M&E when undertaking scheduled follow-ups. Notably, the study established that progress review reports have a statistically significant relationship with performance of agricultural projects (p<.05), while auditing, scheduled follow-ups and management by exception are not statistically significant (p>.05). These study results are expected to inform policy and form important entry points in enhancing monitoring practices in Kisii County.

TOOLS OF INNOVATIVE DEVELOPMENT OF THE FINANCIAL MARKET OF UKRAINE

Topicality. The urgency of the prospects for the development of the financial market of Ukraine through the introduction of financial innovations today is growing due to the need to build a stable financial system in modern conditions, which is a crucial factor in socio-economic development of any state. This explains the special attention to the development of the financial market, which is a key conductor of financial resources in the real sector of the economy, ensures the movement of capital in the areas most responsible for the economic security of the country.Globalization of the financial space and competition in financial markets increase the importance of tools for the formation of competitive advantages of national financial markets, creating conditions for sustainable and efficient development of the national economy. As a result, the role of financial innovations is growing, because without them it becomes impossible to develop the financial market in today's competitive environment. That is why the study of this topic is extremely relevant and extremely necessary.Aim and tasks. The aim of the article is to develop theoretical, methodological provisions and practical proposals that should justify the need for financial innovation as a major component of further development of the financial market of Ukraine by identifying problems of the state financial market, the necessary prerequisites and ways to develop in modern market conditions.Research results. Ukraine's financial sector has long been a driving force for economic growth and financial development, as well as a source of financial and economic crises. In Ukraine, the development of the financial market is possible through the introduction of radically new financial management tools that would solve the main problems. However, it is necessary to meet some preconditions for their solution, namely to make institutional and infrastructural compliance in the processes and rules of mechanisms for development, implementation and control of financial innovations, to prepare the structure of economic sectors and households to use new financial services, tools and products and pay attention to the financial culture of the population. Fulfillment of these preconditions for the development of the financial market and the introduction of innovations is necessary, they form the foundation for global changes in the country's financial system and the disclosure of financial potential.Conclusion. For Ukraine, the formation and further development of the financial market is a prerequisite for the emergence of a powerful source of investment that will be directed to sectors of the economy through the accumulation of free cash. The functioning of the financial market is impossible without the work of the financial system and the course of innovative development of the financial sector, which ensures the normal existence and development of the state. To do this, it is necessary to develop a comprehensive approach to solving existing problems, which is why further research on the financial market of Ukraine and prospects for its development through the introduction of financial innovations should be devoted.

The productivity of the agricultural sector and industrial sector as a driving force of economic growth and community welfare in Indonesia

Purpose This study aims to examine the effect of trade liberalization on welfare, directly or indirectly, through the productivity of the agricultural sector and the productivity of the industrial sector, which affects economic growth and the welfare of the community.Design/methodology/approach This study is explanatory as it looks at causal relationships between one variable with another (causality relationship). The data used in this study are secondary data from various sources, such as the International Financial Statistics (IFS) from the International Monetary Fund (IMF), World Bank, Bank Indonesia reports, Central Bureau of Statistics and several other sources. All data used in this study is annual data for each research variable from 1986 to 2016.Findings Based on the results of the analysis, there is a significant direct and negative influence of the agricultural sector productivity on economic growth, a significant direct and negative influence of the industrial sector productivity on economic growth.Originality/value Considering the diverse effects of trade liberalization both on economic growth and people's welfare in developing countries, the researcher was interested in knowing how trade liberalization affects Indonesia. This study tries to observe and analyze those relations.

Dynamic Structural Changes in Economic Growth Determinants, Industry Change and Economic Transformation

This study investigates the transformation in economic growth based on the unified growth theory, using a sample ofcross-sectional data over the period 2003-2018. The results show that physical capital, labor, and human capital ofsample country have significant effects on economic growth measured by per capita gross domestic product,especially the impact on the growth of industrial industries; however, their contribution to economic growth haschanged over time. Human capital has become the primary driving force in economic growth, the effect of physicalcapital cannot be ignored, and the role of labor has taken a back seat. The growth rate of total factor productivityimproves economic growth, but its effect on growth has weakened since 2009, suggesting that the sample country istransforming from a post-Malthusian growth stage to a modern economic growth stage. Policy implications of thefindings are discussed.

The Seismic Coat: A Sustainable and Integrated Approach to the Retrofit of Existing Buildings

Within the EU’s environmental policy, redevelopment strategies must be designed by adopting an integrated approach. This approach considers energy savings in buildings and seismic safety as driving forces of economic growth. The recent technological evolution experienced by the construction sector has aimed to define a new building element, the seismic coat. This term refers to a structural “skin” that improves both the seismic safety and the energy efficiency of existing buildings according to standards identified by current regulations. With this regard, research was started with the aim of defining a sustainable seismic coat consisting of dry-assembled panels of natural stone blocks that are prestressed with the use of steel reinforcements. The experimentation carried out on the panel so far has shown significant results as the test building improved in terms of energy savings, seismic safety, sustainability, functionality, and aesthetic quality. By taking a case study of a 1960s building as reference, this paper highlights the findings obtained by the feasibility study of the panel, with a special focus on its technical and construction aspects, and to facilitate its manufacture with the use of industrialized processes. Furthermore, this research provides the installation procedures for the panel components and all relevant details regarding the connections with the existing structure of the building.

State regulation of the sphere of small and medium-sized businesses in the Russian Federation in order to increase its efficiency

Particular attention in the economy of any country is paid to the small and medium-sized enterprise (SME) sector, since it is this sector that is the driving force of economic growth, which is confirmed by a number of studies. Obviously, the numerical superiority of small and mediumsized companies over large ones. Consequently, SMEs provide a significant share of the population with income and jobs. The quantitative growth of the sector contributes to the creation of new jobs, an increase in competition and labor productivity, an improvement in product quality, the development of innovations, an increase in the welfare of the population and structural transformations in industries, that is, qualitatively favorable changes in the markets and in the country’s economy.

The Scientific and Research Forces of Society as the Driving Force of Economic Growth of the Territory

The Scientific and Research Forces of Society as the Driving Force of Economic Growth of the Territory

Innovation and innovation activities of Bulgarian small and medium-sized enterprises (SMEs)

Small and medium-sized enterprises are the key driving forces of economic growth and play a decisive role in determining the development of the country’s economic structure. They tend to respond swiftly and adapt quickly to the changes that occur in the economic environment by introducing such innovations and innovation activities that address and fulfill their customers’ requirements. The primary purpose of the proposed paper, therefore, will be to explore the innovation and innovation activities of SMEs in Bulgaria, and therefrom, to draw the appropriate conclusions and make the relevant scientific generalizations. To that effect, a survey was conducted among 68 SMEs from the food and beverage industry on the territory of Bulgaria, in view of which further guidelines were formulated as to the improved efficiency of their innovation activities.