Economic Growth Research Articles

Analysis of the Effects of Energy Consumption, Employment, Mining, Natural Resource Income, and Foreign Direct Investments on Economic Growth in the Central Asian Turkic Republics Using Panel Causality Tests

This study examines the impact of energy consumption, employment, mining and natural resource revenues, and foreign direct investments on economic growth in the Central Asian Turkic Republics, specifically Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, and Uzbekistan. A panel data analysis was conducted using annual data covering the period from 1993 to 2023. The relationship between the variables was investigated using the Dumitrescu- Hurlin panel causality test, while the Hsiao homogeneity test confirmed that the series were homogeneous. The findings indicate that foreign direct investments (FDI) have a one-way causal effect on economic growth and that these investments also lead to increased energy consumption. Conversely, no direct impact of energy consumption, employment, or natural resource revenues on economic growth was observed. While periodic fluctuations in energy consumption and natural resource revenues were noted among the countries, economic growth exhibited a more stable trajectory, particularly after 2000. These results highlight the critical role of foreign direct investments in fostering sustainable growth and underscore the importance of channeling these investments into the production sector. It is recommended that policymakers devise long-term strategies for energy and investment that will promote economic stability and growth.

Impact of Rainfall and Temperature on Economic Growth in Angola, Botswana, Tanzania and Zimbabwe

Research indicates that temperature and precipitation have a big impact on economic growth due to greenhouse emission, especially in areas that depend heavily on agriculture. While extreme weather events like droughts or extreme heat can have a negative effect on production and impede economic development, optimal precipitation levels typically result in higher crop yields and economic activity. The purpose of this study is to econometrically test the effect of rainfall and temperature on economic growth in Angola, Botswana, Tanzania and Zimbabwe. The study specifically aims to respond to the following queries: Are rainfall and temperature important indicators of economic growth in Angola, Botswana, Tanzania and Zimbabwe? The results of the study established that rainfall has a negative effect in Angola only in the long run among the selected countries. In Botswana, Tanzania and Zimbabwe rainfall has no effect on economic growth in the long run. Whilst in the short run rainfall retains has a negative effect on economic growth in Angola and Botswana but positive relationship in Tanzania. On the other hand, result shows that temperature has positive impact in Angola and Tanzania with a unit increase in temperature increasing economic growth by 0.6088 and 0.6955 percent in Angola and Tanzania respectively in the long run. In the short run, temperature has been established to have a positive effect in Angola, Tanzania and Zimbabwe, reflecting that temperature rises have a beneficial effect in these countries. The results imply that climate related variables have an implication for economic growth.

Relationship between Energy Consumption, Economic Growth and Population in Kazakhstan

This study examines the relationship between energy consumption, economic growth and population in Kazakhstan for the period 1991-2023. In the study, the Johansen cointegration test was applied to determine the long-term relationship between the variables and the results show that the variables are cointegrated. The Granger causality test was used to analyze the causality relationships. The findings reveal that there is a unidirectional causality from energy consumption to gross domestic product (GDP). This situation shows that energy consumption is an important factor driving economic growth in the Kazakh economy. In addition, a unidirectional causality relationship from GDP to the population variable was determined. This result shows that economic growth has an effect on population growth but there is no reverse relationship. The findings reveal that Kazakhstan should develop strategies to increase energy efficiency within the framework of sustainable growth policies. In addition, it is recommended to plan long-term development policies by considering the effect of economic growth on population growth. The study emphasizes that the relationship between energy consumption and economic growth should be examined in more depth.

Exploring the Relationship between Economic Growth, Renewable Energy and Carbon Emissions: A Case of Cuba

In the modern era, balancing economic growth and environmental sustainability has become one of the greatest challenges, especially for the emerging nations. As a case of examining the decoupling of economic growth from carbon emissions, Cuba’s historical reliance on fossil fuels, especially during the U.S. embargo, is quite interesting. In this article we have examined the impact of economic growth upon the carbon emissions of Cuba. We extracted annual time series data for the dependent variable (Carbon Emissions) and explanatory variables (Economic Growth and Renewable Energy Consumption) for the period spanning from 1990 to 2020. To determine the long run relationship between the variables, we used Auto regressive distributed lags (ARDL) bounds test of co-integration. The empirical findings revealed the existence of a long-run relationship among the variables of the model. We found that economic growth has a significant positive impact upon carbon emissions; furthermore, there is also a bi-directional causality between the economic growth and the carbon emissions. This research could help the policymakers to establish novel and efficient policies to tackle the environmental issues and move closer to the attainment of sustainable development goals.

Exploring the Linkages between ICT, Energy-Economic Growth in Mitigating Ecological Footprints: Evidence from D – 8 Member States

The member states of D-8 organization is facing various environmental challenges. There is a rapid environmental contamination caused by the usage of fossil fuels for energy. As a result, developed and developing nations alike are implementing a variety of approaches to address environmental issues. Therefore, the aim of this research is to examine the interrelationships among information and communication technologies (ICT), natural resource rent (NNR), economic growth, green technology innovation (GTI), green finance (GFI), and ecological footprints (EFP) in the D – 8 countries. Reliable methodologies and annual data covering the period from 1995 to 2022 were employed to present the results. To find out how the thing changes over short and long periods, we used a method called cross-sectional augmented autoregressive distributed lag (CS-ARDL). The results showed that the EKC theory is true in this specific area. Depletion of natural resources and economic expansion both contribute to an increased ecological footprint. Green finance, information and communication technologies innovations, and technological advancements all contribute to the reduction of the ecological footprints. A unidirectional causal relationship was established between economic growth, green finance, ecological footprints, and information and communication technologies via the D-H causality test. The present study incorporates novel insights from the D – 8 countries into the extant body of knowledge concerning the origins of environmental contamination. Furthermore, this research offers a standard by which policymakers and government agencies in these industries can assess their investments in information and communication technologies green finance, and environmentally friendly technologies, in an effort to reduce environmental contamination.

The Impact of Renewable Energy Consumption on Unemployment in Developed Countries

The utilization of renewable energy resources has been increasing in alignment with sustainable development goals, generating significant effects on economic indicators. In this context, examining the impact of renewable energy consumption on unemployment is of considerable importance for both economic policymakers and academic researchers. The primary objective of this study is to determine whether renewable energy consumption has a reducing effect on the unemployment rate. While investments in the renewable energy sector are generally believed to enhance employment, the direction and magnitude of this relationship may vary across countries. Therefore, this study investigates the relationship between renewable energy consumption and unemployment in a sample of developed countries. To conduct the analysis, fixed effects and random effects models were applied using a panel data set. The findings indicate that renewable energy consumption contributes to a reduction in the unemployment rate. Additionally, GDP and trade openness, included in the model as control variables, exhibit statistically significant negative effects on unemployment. However, the effect of inflation on the unemployment rate is found to be insignificant. The results of this study are expected to contribute to a deeper understanding of the impact of renewable energy policies on employment. Furthermore, these findings provide valuable insights for assessing the role of energy policies in economic growth and labor market dynamics.

Institutional Structure and Environmental Pollution: An Application within the Framework of the Environmental Kuznets Curve Hypothesis

The EKC hypothesis explains the relationship between economic growth and environmental degradation. However, criticisms of its fundamental assumptions suggest that this relationship should be examined more comprehensively. While the EKC hypothesis addresses the link between income levels and environmental quality, it may overlook the impact of institutional structures and policy factors. In this context, recent studies increasingly highlight the role of institutional structures in environmental degradation. Accordingly, this study aims to provide a comprehensive analysis of environmental sustainability by approaching the EKC hypothesis from the perspective of institutional quality. To determine the effects of institutional quality on environmental degradation, the study employs the Driscoll-Kraay estimation method. The analysis is conducted on a sample of SADC countries for the period 1990-2021. The findings indicate that institutional quality has a statistically significant and positive effect on environmental degradation; however, beyond a certain threshold, this effect reverses. Additionally, the impact of economic growth on environmental degradation is examined within the EKC framework, revealing that while per capita income initially increases environmental degradation, exceeding a certain income level leads to improvements in environmental quality. The findings confirm the validity of the EKC hypothesis in SADC countries and suggest that strong institutional structures can play a supportive role in promoting environmental sustainability.

The Efficiency of Government Health Expenditure in ASEAN Countries

Inefficiencies in health expenditure result in an estimated 1–1.4% of global Gross Domestic Product (GDP) being wasted across various regions, presenting a significant challenge for countries striving to optimize healthcare spending. This study aims to assess the efficiency of government health expenditure in six ASEAN countries with the lowest per capita government health spending, using the Data Envelopment Analysis (DEA) method. In addition, Tobit regression is employed to identify factors that influence the efficiency of government health expenditure. The results indicate that most countries have not achieved maximum efficiency scores over the years, underscoring the need for improved budget management and reforms in health policy implementation. The Tobit regression analysis reveals that economic growth, urbanization rate, and the proportion of government health expenditure in current health expenditure have a positive and significant effect on efficiency scores. This suggests that increased public investment and urban development contribute to improved efficiency in healthcare spending. Conversely, total carbon emissions have a negative impact on efficiency, emphasizing the influence of environmental factors on health system performance.

Pelatihan Pengembangan Industri Rumahan di Bidang Food and Beverage untuk Mendukung Pariwisata di Kampung Sawah, Kota Tangerang

This Community Service activity aims to empower women in Kampung Sawah Dalam, Kota Tangerang, through training in the field of food and beverage (F&B). This program supports the development of home-based businesses while fostering the growth of the local community economy. The materials covered include production techniques, packaging, product labeling, marketing strategies, and basic English training. The event was held on Friday, October 18, 2024, and was attended by 46 enthusiastic participants. The activity began with a preparation phase, including discussions with the neighborhood head to identify the specific needs of the participants. In the training sessions, participants received materials on tourism introduction, demonstrations on making appetizers and beverages, as well as training in marketing and English. During practice sessions, participants made canapés and fruit punch, which provided them with valuable hands-on experience. The evaluation showed positive results. Participants rated the training as highly educational, relevant to their needs, easy to understand, and interactive. The materials were considered useful for enhancing participants' skills in managing small businesses. This program successfully increased their understanding of business management, financial services, and motivated them to manage their businesses more effectively. Recommendations for future improvements include extending the training duration, expanding the number of participants, and adding more practical sessions to maximize the program's impact. Keywords: Training, Home-based Industry, Food and Beverage, Tourism, MSMEs

Crude Oil Price Volatility and the Nigerian Economy

This research analyzed crude oil price volatility and the Nigerian economy for the period 1990:Q1-2023:Q4. The independent variables were crude oil price, exchange rate and oil revenue while the dependent variables were GDP, government revenue, foreign exchange reserve and income level (per capita income). Four models were formulated. Data were analyzed using the Generalized Autoregressive Conditional Heteroskedasticity (GARCH). The results revealed strong evidence of volatility clustering in crude oil prices; the availability of new crude oil prices increased conditional volatility by a high magnitude. There was a significant negative effect of crude oil price volatility on the growth of the Nigerian economy while crude oil price volatility increased Nigeria’s foreign reserve, government revenue and income level. In addition, the exchange rate and oil revenue significantly increased the crude oil price volatility – an economic growth nexus in Nigeria. The study concluded that crude oil price hurts the Nigerian economy. However, crude oil price volatility exerted a positive effect on government revenue, foreign exchange reserve and income level in Nigeria during the period of the study. It was recommended that the government should devise a strategy to deviate the economy away from oil dependency to make the economy less vulnerable to oil price shocks.

Enhancing Public Administration at the Union Council Level: A Pathway to Achieving Sustainable Development Goals (SDGs) in Hub

Public administration at the Union Council level is crucial for achieving the Sustainable Development Goals of the United Nations by ensuring efficient governance and service delivery. Union Councils in the Hub area encounter financial restrictions, administrative challenges, and limited public interaction. This research employs a mixed-methods approach, including surveys, interviews, and focus group discussions with key stakeholders, to examine the role of local governance in SDG implementation. Results indicate that while public officials demonstrate a good understanding of the SDGs (72%), community awareness remains low (38%). Officials rate policy creation and service provision higher (means = 4.2 and 3.8) compared to citizens (means = 3.1 and 3.2). Key challenges include financial limitations (25 percent), bureaucratic inefficiencies (27 percent), and limited public involvement. The study emphasizes the necessity for financial sustainability, administrative efficiency, and participatory governance to advance SDG development. Experts advocate for utilizing digital governance systems and public-private partnerships to improve transparency and funding. Well-designed reforms, the integration of technology, and the promotion of collaboration can help Union Councils foster sustainable development in the Hub area and significantly enhance sustainable social, economic, and environmental growth.

The Influence of Different Governance Models on Enterprise Performance under Platform Economy

Under the rapid development of the digital economy, the platform economy has become an important engine for global economic growth. As an important indicator to measure the scale of platform enterprises, the improvement of enterprise performance is significantly affected by the platform governance model. However, there is a lack of systematic analysis on how different governance methods affect the performance of platform enterprises. Therefore, this paper focuses on three main governance models in the platform economy, namely, independent governance, market governance, and platform governance, and deeply analyzes their impact on enterprise performance. This paper adopts the literature review method, systematically reviews the relevant literature of platform governance models, and sorts out the theoretical basis, advantages, and disadvantages of the three governance models and how they affect enterprise performance. In addition, this paper selects a representative typical platform enterprise as a case to deeply analyze the practical application effect of different governance models and their impact on enterprise performance. The results show that independent governance significantly improves corporate performance through the decentralization of decision-making power and governance. Although market governance reduces the transaction cost of enterprises, it is limited by the ability of enterprises to control the quality of transactions and has a relatively limited role in promoting the performance of enterprises. Platform governance has a positive impact on enterprise performance through incentive mechanisms and transparency rules.

Zero Emissions and Zero Unemployment: A Feasible Future or Conflicting Objectives?

Achieving high economic growth along with low unemployment rates and better environmental quality presents a key challenge for economic policy. The study investigates the validity of the Environmental Phillips Curve (EPC) and Environmental Kuznets Curve (EKC) hypotheses in India. This study utilizes a range of econometric methodologies, encompassing the Autoregressive Distributed Lag (ARDL) model, the combined cointegration test, and the Toda-Yamamoto causality test, to analyze annual time series data spanning the period from 1991 to 2022. The findings confirm the validity of the EPC in both the long- and short-run. However, the evidence does not provide strong support for the EKC hypothesis. Among control variables, capital formation and GDP per capita has adverse impacts on environmental quality, while renewable energy consumption has no significant impact. For India, with the world's largest young population, environmentally friendly job creation is crucial. Developing energy-efficient technologies and increasing investment in renewables are key to balancing zero-emission and zero-unemployment goals.

The Role of Research and Development in Renewable Energy Consumption - Sustainable Human Development Nexus: Evidence from EAC Member Countries

The pressing challenges of climate change and energy access in the East African Community (EAC) necessitate a strategic focus on research and development (R&D) to enhance renewable energy consumption and support sustainable human development. This study investigates the critical role of research and development (R&D) in promoting renewable energy consumption and its impact on sustainable human development within the East African Community (EAC). As global climate change intensifies, the transition from conventional energy sources to renewable alternatives is essential for fostering economic growth and improving human development indicators. Despite the recognized potential of renewable energy, EAC nations face challenges, including inadequate funding for R&D, limited technological capabilities, and ineffective policy frameworks. This paper analyzes the intricate relationship between R&D investments and renewable energy adoption, utilizing a comprehensive econometric approach with data spanning from 1996 to 2021. The study employs advanced econometric estimators, including Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE), alongside robustness tests such as Driscoll-Kraay standard errors and Fully Modified Ordinary Least Squares (FMOLS). The findings reveal that enhancing R&D is vital for overcoming barriers to renewable energy implementation, ultimately contributing to sustainable development goals. The study underscores the necessity for targeted policy interventions that leverage R&D to facilitate technological advancements, improve energy efficiency, and promote equitable access to renewable energy resources in the EAC region.

Islamic Financing Mechanisms for Renewable Energy Projects: Mapping Research Trends and Future Directions

This paper discusses the emergent trends in Islamic financing mechanisms for renewable energy projects, highlights their role in promoting economic growth, and discusses sustainability. By applying bibliometric analysis, cluster analysis (VOSviewer), and co-citation analysis, this study explores literature between 2008 and 2024 on the impact of Islamic finance on renewable energy projects. Data is collected from two major databases; Scopus and Web of Science Core Collection; key trends; influential publications; and future research directions. Findings show that Islamic financing mechanisms; including green sukuk and impact investing; are essential in supporting renewable energy investments. The study identifies key contributors such as Saudi Arabia; Malaysia; UAE; and Malaysia; with research focusing on the relationship between Islamic finance; ESG performance; renewable energy; and climate change mitigation. Future research may explore the integration of digital technologies; green innovation; and technological advancements in Islamic financing for renewable energy projects. The limitations include the reliance on Scopus and Web of Science databases, with further suggestions for incorporating additional databases and expanding keyword searches. This paper contributes to a better understanding of the intersection between Islamic finance and renewable energy, hence providing a good foundation for further research and practical applications in the field.

Tourism-Induced Environmental Degradation ASEAN Countries: Causes and Consequences

The existence of digitalization and technological advancements causes information to spread quickly. In fact, information about the tourism sector among countries like ASEAN is very easily accessible, which leads to an increase in people's mobility for tourism activities. ASEAN is one of the regions in the Asia Pacific with the highest CO2 emissions. Tourism is considered to be an important indicator in explaining a country's environmental pollution. This is based on the Tourism-Led Growth hypothesis, which states that the expansion of tourism activities impacts economic growth, while on the other hand, the Environmental Kuznets Curve hypothesis explains that economic development triggers environmental degradation. This study aims to analyze the influence of GDP per capita, the number of international tourists, and the volume of international flight passenger traffic on CO2 emissions and the relevance of the EKC hypothesis in 5 ASEAN countries (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam). The data processing method uses panel data regression analysis. The selected model in this study is the fixed effect model with cross-section weight estimation. The results of the study indicate that GDP per capita and the volume of international flight passenger traffic have positive coefficients with probabilities of 0.0000 and 0.0171, respectively. Meanwhile, the number of foreign tourist visits has a negative coefficient with a probability of 0.0216. This study also shows that the EKC hypothesis is relevant to the case of the 5 ASEAN countries with a turning point at an income level of USD 9,937 per capita.

The Role of Financial Technology in Improving Credit Inclusion for Small and Micro Enterprises in Poor Areas

This paper analyzes the role of financial technology in improving the credit inclusion of SMEs in poverty-stricken areas. First, the concept and characteristics of financial technology are defined, also the connotation of credit inclusion is explained. Secondly, the financing difficulties of SMEs and enterprises in poverty-stricken areas are analyzed, problems such as insufficient coverage of traditional financial institutions, high loan costs as well as imperfect credit evaluation systems are pointed out. With the help of technologies such as big data, artificial intelligence and blockchain, financial technology reduces the cost of financial services, expands the scope of credit coverage and optimizes the credit evaluation system, so that SMEs without traditional credit records can also obtain loan support and improve financing availability. Finally, combined with empirical research, a strategy of policy-driven, technology-enabled, cooperative collaboration is proposed to promote the development of credit for SMEs in poverty-stricken areas, provide theoretical support and practical guidance for regional economic growth.

Does financial inclusion and ICT influence the economic growth: an evidence from ‎select emerging economies using panel data estimates

Information Communication Technology (ICT) 's contribution to financial ‎services and economic growth is extensively researched. With technological development, the ‎financial systems are converging with ICT platforms, thereby leading to digital financial systems‎, creating opportunities that bridge the gap between affluent and disadvantaged sections in ‎emerging economies. In this study, we employ the panel data estimation method to evaluate the ‎impact of ICT in providing financial services that would lead to sustainable economic growth in ‎‎12 emerging economies from 2010 to 2024. The findings emphasize the critical role ‎of digital financial services and ICT infrastructure in boosting financial inclusion and driving ‎inclusive economic growth. The Random Effect model has inferred that there exists a moderate ‎effect of fixed telephone lines and mobile cellular subscribers on GDP by simplifying digital ‎applications, integrating regional languages. By ensuring secure systems in places, the regulators ‎and service providers can contribute to the sustainable economic growth of both the country ‎and the underserved communities‎.

The asymmetric Granger causality between banking-sector and stock-market development and economic growth in quantiles considering Fourier

ABSTRACT Utilizing an asymmetric causality test and a bootstrap procedure in conjunction with quantile VAR and Fourier functions, this study considers the rate of banking sector over GDP and the rate of stock market capitalization over GDP as bank-based development and market-based development, respectively. Using this approach, we examine the simultaneous causation between both measures of financial development and economic growth. Our samples include Germany, Japan, the United States and the United Kingdom for the period of 1975–2019. Expectedly, our findings of asymmetric Quantile VAR Granger causality present that bank-based development is better at raising long-term economic growth in Germany and Japan and that stock-based development is more likely to drive economic output in the U.K. and the U.S. Asymmetric Granger causality is adopted since positive or negative shocks can exhibit diverse causal effects. The bootstrapping simulation technique can overcome nonnormal distributions and time-varying volatility through leverage adjustment. The simultaneous consideration of quantile causality and the Fourier function can identify which part of the output distribution is predicted and can lead the smooth breaks in the deterministic parts to be controlled by Fourier expansions.

Mapping Economic Condition of Bangladesh: A Formal Regionalization Based on Socioeconomic Indicators

The economic circumstance of Bangladesh is crucial for the attainment of its development objectives, as globalization has prompted apprehensions regarding regional development. Bangladesh, the second-largest economy in South Asia, is currently ranked 35th in nominal GDP and 25th in nominal GDP based on purchasing power parity. The country's GDP increased by 5.82 percent in 2023-24, compared to 5.78 percent in 2022-23. The purpose of this investigation is to determine the formal regions of Bangladesh concerning their economic circumstances and to identify the factors that either promote or hinder economic development in different districts. The research was analysed across 64 districts using the Composite Weighted Index Method, which considered both economic and non-economic factors such as remittance inflow, literacy rate, solvency head count ratio (HCR), bank deposit, and employment rate. The study analysed key economic indicators such as employment, income, revenue, budget allocation, infrastructural development, educational opportunities, and healthcare facilities. It found a loop connectivity between government revenue, budget allocation, employment, and income across different districts, which is crucial for overall economic growth. This allows policymakers to more effectively allocate resources and to personalize interventions, thereby facilitating targeted efforts to stimulate economic growth. The findings can be a source of help for future policy decisions and contribute to the nation's development objectives. JBIP, Vol. 17, 2024, pp. 119-136