High Economic Growth Research Articles

КОНСТРУКТИВНЫЕ ОСНОВЫ УСТОЙЧИВОГО ЭКОНОМИКО-ГЕОГРАФИЧЕСКОГО РАЗВИТИЯ ИНВЕСТИЦИОННОЙ СРЕДЫ И ПРОИЗВОДСТВЕННЫХ СФЕР АЗЕРБАЙДЖАНА

One of the most urgent tasks facing every state in our modern era is to form an investment environment to achieve high economic growth rates. Favourable conditions should be createdfor the investment environment so that not only state and large companies, but also small and medium business owners could benefit from investments. From this point of view, developing the scientific and theoretical-methodological foundations of economic growth is considered one of the most critical tasks. Thus, investments are one of the essential factors for the progressive and positive functioning of the economy and economic development. Investments contribute to opening new production enterprises and creating additional jobs, applying advanced innovative technologies in production, increasing production, and ensuring integration into regional markets. This also benefits production-consumption relations, investors, and the country's budget. In this connection, the article provides the model of the formation of the investment environment in production areas, studies the investments allocated to Azerbaijan’s economy and production areas and the mechanisms of their influence on regional development, and analyses the importance of foreign investments and the threats they may create based on the principles of both regional and economic-geographic approaches.

US positions in world economy: Current conditions and prospects

There are several indicators which reflect the level of economic development of each country. Among most important — GDP, GDP per capita, scientific and technological potential human resources, the country’s positions in the world trade and capital transactions. The author makes a conclusion that the US positions remain strong in the world economy and international economic relations. The article aims to show the evolution of the American model of capitalism and its opportunities to adapt to new challenges of the 21st century. The author reviews the basic characteristics of this model and its distinction from other market economy models. It is demonstrated that in the USA, the leading role in economic development is played by private sector, and the government occupies much more modest positions. The author demonstrates that due to the liberal model the country has reached significant economic and social results, including high economic growth and high living standards. The advantages of the American model are quite obvious: commitment to high economic efficiency, development of science and innovations, economic growth and high living standards. The shortcomings of the American model are also quite evident. Among them there are: a problem of social and income inequality, the emergence of new economic challenges, including those connected with pandemics and climate change, which test the American model for its sustainability and effectiveness. Another issue is new emerging markets that are not liberal at all. Especially we can talk about China which became the real rival to the American economy. The modern stage of globalization puts several new problems before the American capitalism, such as the is exacerbation of contradictions between old industrial countries and emerging economies, between strengthened multinational corporations and the governments of the countries they came from. The author makes a conclusion that despite both internal and external challenges the existing potential of the American economic model is still not exhausted. At the same time, it is evident that the question of its adaption to all existing issues is quite real and demands solution.

НАЛОГОВЫЕ АСПЕКТЫ ПРОСТРАНСТВЕННОГО РАЗВИТИЯ: МОДЕЛИ, МЕХАНИЗМЫ И ПОДХОДЫ

This article examines spatial development from the point of view of tax incentives, approaches, methods of study and its aspects. This study examines issues in terms of the distinctive features of such definitions as «territorial development», «regional development» and «cluster development», their focus and strategic objectives that are interconnected with spatial development. The essence of spatial development is revealed through the evolution of tax instruments used for economic growth in terms of investment and innovation of specific entities and territories. Comparative analysis of spatial development links allows us to note the complexity of emerging relationships between various aspects of the economy, which indicates the need for an integrated approach to solving issues of innovation and investment policy of the state. This article presents an analysis of foreign practice in terms of using spatial development as a tool for tax incentives for various territories with low and high economic growth rates to minimize differentiation between regions and solve strategically important tasks.

AGROFORESTRY: ECONOMIC CONSIDERATION AND ECOLOGICAL PERSPECTIVES BASED ON FOREST FARMER IN CENTRAL SULAWESI, INDONESIA

In general, sustainable development has three dimensions, namely the economic, ecological and socio-cultural dimensions. The development of community activities especially farmers who need land is increasing very rapidly in line with the development of population and economic growth. To achieve high economic growth, the productivity of land is driven in such a way that it results in an increase in exploitation of natural resources which is reflected in the destruction of forests, land, water, air and biodiversity. The application of the concept of sustainable development faces various challenges because on the one hand economic development must continue to be encouraged while on the other hand cultural integrity, local wisdom and physical landscape must be maintained. This study aims to examine the economic, ecological and basic historical aspects of changes in forest land use and recommendations on land use models that provide the highest benefits and feasibility of farming. The results showed that farming that implemented cocoa-based agroforestry systems, especially cocoa and in fact gave the highest value of profit and feasibility based on economic considerations and an ecological perspective based on local wisdom for farmers around the forest.

Characteristics of Export-oriented Technological Progress and Total Factor Productivity of China's Manufacturing Industry

Since the reform and opening up, it is an important means of industrial technology innovation in China to realize technology upgrading by introducing and imitating innovation. The characteristics of the supply of technical elements and the demand of technical products "both ends are outside" constitute the export-oriented technological progress mode of China's industrial technological innovation .In this paper, the export-oriented technology progress of China's manufacturing industry from 1992 to 2020 is divided into three stages, and the DEA-Malmquist method is used to measure the total factor productivity changes of 26 manufacturing industries in China during this period. The results show that from 1992 to 2000, the total factor productivity index of China's manufacturing industry showed a fluctuating trend during the period of high economic growth driven by accelerated export expansion. During the period of optimizing commodity structure and promoting industrial upgrading from 2001 to 2011, the total factor productivity index of China's manufacturing industry first increased steadily, and then decreased from 2008 to 2011. Since 2012, in the stage of building a trade powerful country and promoting innovation, the total factor productivity of China's manufacturing industry has entered the growth stage again in 2016 after a period of decline. Finally, this paper puts forward some suggestions.

An application of the LASSO and elastic net regression to assess poverty and economic freedom on ECOWAS countries.

The study of poverty has been studied from several different research approaches over the years. This analysis intended to determine which variables tell us about poverty in the Economic Community of West African State (ECOWAS) countries. Many ECOWAS countries have recorded high economic growth rates in the past few decades. However, a recent trend is that this progress is reversing, and poverty rates are increasing. In this analysis, we examined the variables describing poverty in ECOWAS. We used a statistical approach coupled with economic theory to justify the inclusion of the variables used to assess poverty. Furthermore, we include the use of the Fraser Institute's Economic Freedom index for each of the West African States. As far as we know, the economic freedom and poverty of West African states have not been presented for consideration toward African growth rates and poverty rates. With few exceptions, economic freedom research suggests that economic freedom is the foundational ingredient for increasing prosperity and reducing poverty. Then, we interpreted the empirical results and assess the validity of the model as applied to the ECOWAS countries. More specifically, we use the LASSO and elastic net regression to obtain sparse solutions to regression problems. LASSO and elastic net are computational methods that rapidly inform us about the relevant variables for the model. These computational methods' performances will in the context of the number of variables exceeds the number of observations by generating a low mean squared error (MSE).

The role of improving tax relation for the growth of agricultural production

Considering taxes to be the universally recognized regulator of the economy, related ideas on the proper organization of tax relations are being promoted in various scientific papers. The relevance of this problem is caused, firstly, by the choice of a model of tax regulation within the framework of the general economic situation, by thoughts that are about “tax relations”, “principles of taxation”, “mechanism taxation”, “about the nature of the tax”, and secondly the within the framework of the tax system operating in the Republic of Uzbekistan, the instruments of tax relations are characterized by high economic inefficiency. The purpose of this research is to generalize the works on tax relations, improve tax regulation, develop the necessary proposals and recommendations to enhance the role of tax regulation mechanisms in the framework of improving tax policy that aimed at ensuring high economic growth. The paper also analyzes theories of tax regulation in the framework of using tax regulation mechanisms in order to ensure the growth of income (profit) of economic entities with a simultaneous decrease in the share of tax revenues in GDP. By defining the economic boundaries of tax policy, it is possible to solve not only the problems of economic growth of the country as whole, but also social issues in changing economic conditions. The paper also analyzes the opinions of various domestic and foreign economists on tax relations.

Greening the GDP——Exploration of the Relationship between Economy and Environment

GDP has always been regarded as a significant indicator to measure the overall economic volume of a country. However, blindly pursuing high economic growth may cause waste of natural resources and damage to the ecological environment, which is not conducive to the long-term and sustainable economic development of the country. This paper aims to explore the deep relationship between economy and resources and environment through the study of Green GDP. Using CoalProducts, Fossil fuels (% equivalent primary energy), PM2.5 air pollution, mean annual exposure (micrograms per cubic meter) and other effective indicators, we developed a TOPSIS model based on The System of Environmental Economic Accounting (SEEA) to assess impacts on climate mitigation. It collects data from reliable sources, including around 42 countries and 18 statistical indicators. In addition, through the forecast of future resource consumption, population and GDP changes, it is further concluded that it is worthwhile to choose Green GDP as an indicator to measure the economy. This study takes China as an example, and the empirical results show that using Green GDP instead of GDP to calculate the national economy can effectively mitigate the negaitve impact of climate, which has certain reference value for the sustainable development and green economy construction of countries around the world.

아프리카의 발전국가모델에 대한 연구

This study analyzed the similarities and differences between countries achieving high economic growth in Africa and the East Asian model, and examined the implications of developmental states in Africa through comparison. Today, African states share many similarities with the developmental states of East Asia in the past, and express their willingness to follow the development experience of East Asia. However, in the past, developmental states in East Asia did not follow the Western and Japanese models as they were, but made successful developments by applying them according to the characteristics of each country. Developmentalism contributed to growth in East Asia, but inequality between classes remains a serious problem to this day. Considering the diverse ethnic composition and long colonial experiences of African states, the follow-up of the East Asian model is likely to lead to other problems, such as increased corruption. African states need to consider the limitations and side effects that have emerged in East Asian states through flexible “application” rather than “reconstruction” existing models.

Administrative Reform and Administrative Responsibility

In this paper, I introduce the history of major administrative reforms of Japan and elucidate the views to administrative responsibilities in these administrative reforms.
 The central government of Japan has implemented major administrative reforms three times. These reforms covered various areas, including cabinet system, administrative organization system, civil service system, and inter-governmental system. The plans of these reforms have been formulated by the councils which were established temporarily. These councils were the First Extraordinary Administration Research Council (the First Council, established in 1963), the Second Extraordinary Administration Research Council (the Second Council, established in 1981) and the Administrative Reform Council (established in 1996).
 In this paper, I examine, among various meanings of administrative responsibilities, how the three councils had evaluated each meanings. For this purpose, I classify the various responsibilities into the three concepts which are derived from the theories of administrative responsibilities dating back to Friedrich and Finer debate. The three concepts are (1) responsibility as ability, (2) responsibility as extent, and (3) accountability. Responsibility as ability is the responsibility of each administrative organ fulfilled by resolving public issues actively and autonomically. Responsibility as extent means the extent of each administrative organ to have a responsibility for dealing with public issues within society. Accountability is the external type of responsibility in which the public and the congress hold administrative organs accountable for their activity through formal institution.
 Considering the views to administrative responsibilities of each council, I note the impact of the socioeconomic contexts. Each council had been established under different socioeconomic contexts including the scale of revenue, the degree of trust in the government, and the demands from other countries. I show these contexts influenced not only the contents of the reform but also the views on administrative responsibilities.
 The overview of the results of this study is following.
 The First Council emphasized responsibility as ability and responsibility as extent. Due to high economic growth and strong need to improve social infrastructure, the First Council expected administrative organs to actively improve social structure using increasing revenue.
 The Second Council recommended improving responsibility as ability, but reducing responsibility as extent. During this period, the central government of Japan, like other developed countries, faced the oil shock. The government decided to adopt such views in order to sustain the welfare state.
 The Administrative Reform Council focused on the introduction of accountability. The reasons for the high commitment were the criticisms of unclear administration from other countries, administrative failures and scandals, and the change of government.
 Lastly, I briefly summarize the view towards administrative responsibility from 2000 to 2020 in Japan. During this period, the government has expanded responsibility as extent through establishing agencies and improved responsibility as ability based on introducing various methods.
 This presentation contributes to the clarification of the relationship between the socioeconomic environment, the views of the person in charge of administrative reform and the content of administrative reform.

A Revisit of Energy Consumption Preferences and Economic Growth in Developing Economies

Clean and green energy consumption has become a global challenge for all developing countries and international organizations. Not many studies have examined the impact of energy consumption preferences on economic growth particularly in developing counties. Due to the rapid increase in population and the desire for achieving high economic growth, the demand for energy is on the upswing in developing counties. The main objective of this study is to develop an empirical model that measures the impact of energy mix on economic growth in 82 developing countries. PQR and FGLS estimation techniques have been used for examining the impact of energy mix on economic growth for the period 1990-2020 in developing economies of the globe. The results of the study confirm the existence of an inverted U-shaped relationship between the energy mix and economic growth. The study concludes that developing countries should use more renewable energy than fossil fuel energy for achieving rapid economic growth without environmental degradation.

A Structural Equation Model (SEM) of Leading Factors Influencing the Quality of Sustainable Development: A Case Study in the Southern Province of Sri Lanka

The Sri Lanka government which assumed office in 1977 embarked on economic liberalization reforms. The main thrust of the liberalized economic reforms has been to standardize private sector investment by providing infrastructure facilities through public investment with the aim of achieving high economic growth and employment levels. All these efforts were not as successful as the expected level since some policies were implemented without appropriate prior examinations. With the objective to fulfill the targets of sustainable development in a county, there should be equal distribution of the benefit of the development among the people. Thus, decentralization could be identified as the path to enhancing sustainable development. On this basis, the study makes an effort to offer government officials and decision-makers insights to better comprehend and raise the caliber of sustainable development in the area, as well as to bridge the knowledge gap. The suggested model is experimentally evaluated using data analysis from 1000 survey units representing all divisional secretariats' divisions in Sri Lanka's Southern region using a two-stage systematic sampling technique and the structural equation modeling method using the R tool. The findings demonstrate a strong and positive relationship between the constructions of the scales of economic, social, human, and environmental development and the quality of sustainable development. The findings of this study provide government officials and decision-makers in Sri Lanka, in particular, with valuable recommendations for understanding how various elements impact the execution of the quality of sustainable development.

Interrogating sub‐Saharan Africa's high economic growth rate and low poverty reduction rate: A poverty paradox?

Sub‐Saharan Africa's (SSA) high economic growth coincides with an increase in the level of poverty. In a panel of 40 SSA countries over a 30‐year period, while accounting for the potential spillover effect of poverty in the region. The study found that economic growth recorded over the years has not translated to poverty reduction, particularly, in resource‐rich economies of SSA. The result also shows that income inequality worsens the effect of economic growth on poverty and that the poverty‐reducing effectiveness of growth varies considerably across sectors, across space, and over time. The research findings suggest that governments across the region, particularly, in oil‐exporting countries in SSA must diversify the economy away from oil (toward the service sector) to reduce poverty in the region.

Analysis of Economic Improvement to Reduce Poverty in 2016-2020

Being helpless, unwelcome, and lacking a sense of freedom are the three characteristics of poverty. A country that is said to be prosperous can be seen from high economic growth. Economic growth influences reducing the problem of poverty. The lower the level of poverty will cause various kinds of socio-economic problems in a country. This study aims to find the direct and indirect effect of the independent variables, namely the effect of the General Allocation Fund (DAU), Regional Original Income (PAD), and Special Allocation Fund (DAK) on Poverty through Economic Growth. The research is a quantitative study using the regression analysis method by combining cross-section and time series data using Eviews 9.0 Software. This study took the object of research in 29 regencies in West Java Province for the period 2016 - 2020. Panel data source from the provincial annual report, Director General of Balance, Ministry of Finance, West Java BPS. The results of the study show that general allocation funds have a significant effect on economic growth. Special allocation funds have a significant effect on economic growth. However, local revenue does not have a significant effect on economic growth. This study contributes that the economic improvement plays an important role in reducing poverty.

Informalität im regionalen Wachstumsprozess. Einblick in eine „Black Box“ der Planungspraxis am Beispiel Luxemburgs

This paper deals with the management of settlement growth in the Grand Duchy of Luxembourg from the perspective of informality. Luxembourg is subject to high demographic and economic growth pressures across all parts of the country (capital, old-industrialized South, rural North), which strongly challenges the current planning system. At the same time, there is no formal regional planning, apart from approaches of inter-municipal cooperation, which are mainly voluntary in nature. Drawing on empirical case studies in two high-growth municipalities (Junglinster, Schuttrange), the paper outlines planning decisions in the institutional triangle between municipality, state and private institutions. Informality serves here not only to compensate for a lack of planning control, but also to deal with the country’s complex legal framework conditions. The vital interests of landowners come into play informally as well: since parts of the country’s wealth emerge from the valorization of property, speculative interests are immanent, and thus block development processes. In this context, the paper addresses elements of a regional growth management that could close the gap that exists between state planning and municipal autonomy.

The Impact of Real Government Spending in Physical and Social Infrastructures on Economic Growth

Most countries in the world undertake to achieve a high and sustainable economic growth due to it represents the economic welfare of countries. This study aims to analyze the effect of government spending in the physical and social infrastructures on economic growth, particularly in Indonesia by using secondary panel data 33 provinces during the period 2005-2018. Theoretically, usual economic growth model is highly affected by capital with flow characteristics. This study employs the capital stocks divided by physical and social infrastructures (public goods) consisting of Road and Bridge (BR), Irrigation, airport, port, health, and educational infrastructures as dominant variables. This study uses Panel ARDL model to investigate the functional relationship of economic growth and the public capital stocks in the short-term and long-term. The results show that all variables show a negative effect, except the road and bridge (RB) has a significant effect on economic growth in the short term. In the long term, roads and bridges (RB) and irrigation channel (IC) have a positive and significant effect on economic growth, but the others are not. These results are supported by the Pedroni Cointegration Test and KAO Cointegration Test which show a short-term and long-term balance. These findings underline that public infrastructure as capital stocks of each region with the appropriate infrastructure development play important role in sustaining the economic growth in Indonesia.

Multi-vector management model of decentralization program management in Ukraine

Multi-vector management model of decentralization program management in Ukraine

Information and Communication Technology (ICT) and youth unemployment in Africa.

Africa is lagging in infrastructural development including Information and Communication Technology (ICT). As there are rising employment opportunities in the ICT-intensive industries globally including Africa, enhanced knowledge and use of ICT may tend to reduce youth unemployment in Africa. Thus, this study investigates the effect of ICT on youth unemployment in Africa using a sample of 41 African countries between 2003 and 2018. The study employs a dynamic Generalized Method of Moment (GMM) approach and constructs a composite ICT index to combine key indicators of ICT, using the principal component approach. We also account for the interactive role of education in the ICT-youth unemployment nexus. Relying on the Phillip curve theoretical model, the effect of inflation, physical capital accumulation, level of corruption, and economic growth are also examined. The results show that youth unemployment in Africa can be reduced by higher ICT deployment and usage, which confirms our hypothesis in this study. There is also evidence that education enhances the potential of ICT usage to reduce youth unemployment. Furthermore, we find that the Phillip curve hypothesis holds, as the inflation rate has a negative effect on youth unemployment. More so, there is evidence that youth unemployment in Africa can be reduced by higher physical capital accumulation, lower level of corruption, and higher economic growth. With falling economic growth and looming economic recession in many African countries, governments would need to revise educational curricula to include ICT-based training to reduce the level of youth unemployment in the medium to long term period.

Solving Pakistan’s Poverty Puzzle: Whom Should We Believe? What Should We Do? (The Omer Asghar Khan Memorial Lecture)

Understanding Pakistan’s economic performance has never been easy. Its capacity to generate impressive rates of economic growth in the 1960s and 1980s with low levels of savings, investment and very poor human development indicators confounded its critics. Indeed during the overall period 1960-1990 Pakistan’s growth performance would place it in the top ten countries in the world. This made an eminent economist Professor Richard Eckaus remark, “Pakistan is a puzzle, a miracle of levitation. With one of the lowest domestic savings rate in Asia, its economy has performed quite creditably. Since we do not believe in miracles, we have to wonder whether the capital inflows that have sustained this growth will last”.1 Unfortunately they did not. Pakistan’s growth rate in the 1990s came tumbling down, the result of a number of factors of which a decline in capital inflows also played a significant part. If Pakistan’s growth performance has been in part difficult to justify then understanding or explaining changes and wide fluctuations in its poverty levels has posed even a more challenging task. Pakistan has witnessed over the last three decades periods of high economic growth, as in the 1960s, accompanied with increasing poverty levels, periods of low economic growth, as in the 1970s, accompanied by reductions in poverty levels, periods of high economic growth leading to a decline in poverty as in the 1980s and periods of low economic growth as in the 1990s accompanied by as we shall see by increasing poverty levels.

Growth-Poverty Linkage and Income-Asset Relation in Regional Disparity: Evidence from Pakistan and India (The Allama Iqbal Memorial Lecture)

The purpose of this paper is to discuss the importance of incorporating asset holding and its distribution into the study of growth-equity relationship in the context of regional disparity. We have tried to discuss this issue by taking the Inclusive Growth Strategy (IGS) introduced by the Union Government of India in 2006. Although it is too early to assess the impact of IGC at this stage, the followings are some of the important findings of our analysis. First, the performance of the post-reform period is characterised by the higher economic growth and declining poverty ratio on one hand, and the increasing disparity in terms of consumption, income and asset holding on the other. Second, the magnitude of poverty and disparity is much more evident in asset holding, notably land, as compared with consumption and income, among economically and socially disadvantageous segments of rural communities. Third, if the inherent social inequality were overcome in the growth process, access to asset, notably land, has to be facilitated either by political process or through market transaction. In either case, the prospective is not yet bright. The paper strongly advocates, among others, the necessity of incorporating incomeasset relationship and structural aspects in discussing poverty and disparity issues in development. Keywords: Growth-Poverty Linkage, Income-Asset Relationship, Inherent Social Inequality, Inclusive Growth Strategy, Land Market, Capital Gain, Land Reform, Rent-land Price Ratio, Ginicoefficient.