High Economic Growth Research Articles

Analysis of current trends in the development of the financial market in Russia

At the present stage, the Russian economy and the financial market have faced various challenges as a result of sanctions pressure, which has had a significant impact on their functioning. Given that the current circumstances are extraordinary and will have long-term structural implications, action needs to be taken to adapt and revise approaches, priorities and plans. It is important to keep only those that remain relevant and significant in the new conditions. In light of these changes, it is important to develop systemic solutions, the right strategy and take effective measures for the future development of the financial market and the economy of our country, which will help them become more sustainable and competitive. The deterioration of the economic situation in the financial market entailed the risk of a decrease in the level of profitability of financial instruments, as well as a loss of public confidence in investing free cash in securities. To maintain sustainable economic growth in our country, it is necessary to find an innovative solution to increase the activity of using financial resources through the mechanism of the financial market. The article discusses the theoretical and practical aspects of the functioning of the financial market, analyzes the dynamics of the level of profitability of various financial instruments and the degree of development of the financial market segments, and argues its place and role in the accumulation of investments to ensure high economic growth in the Russian Federation; the problems and factors hindering the development of the financial market and the directions for its improvement, taking into account national specifics, are identified.

Energy and Economic Growth Nexus: A Long-run Relationship in Indonesia

Energy plays an important role in economic growth in which it affects total factor productivity (TFP). Energy conservation efforts to address global climate change may adversely affect economic growth, particularly in the long run. This study analyses the short- and long-run relationship between energy consumption (both non-renewable (NREC) and renewable (REC)) and economic growth in Indonesia within the period of 1985 to 2019. Using the vector-error correction model (VECM), the paper discovered a short-run unidirectional causality from NREC and REC to economic growth. Economic growth in Indonesia is dependent on energy consumption. The finding proves the growth hypothesis in the energy and economic growth nexus (EGN). In the long run, only NREC has a unidirectional causality to economic growth, while REC is independent. REC supports the neutrality hypothesis rather than the growth hypothesis. The neutrality of REC in promoting economic growth in the long run indicates that Indonesia remains highly dependent on NREC to generate economic growth. Consequently, lowering NREC will adversely affect economic growth both in the short and long run. Nevertheless, Indonesia has signed a commitment to reduce carbon emissions vis a vis NREC in the context of climate change. The findings suggest that Indonesia should conduct energy transition toward REC, while conserving NREC in addition to accumulating physical and human capital to sustain high economic growth in the long run.

Simultaneous Relationship between Financial Inclusion, Economic Growth, and Income Inequality in Sulawesi Island, 2011–2019

Sulawesi Island has fairly high economic growth but is not followed by a significant decrease in income inequality. Therefore, a new strategy is needed to overcome these problems, one of them by increasing the role of the financial sector through financial inclusion. This study aims to analyze the relationship between financial inclusion, economic growth, and income inequality, as well as the factors influencing them in Sulawesi Island from 2011 to 2019. The analytical method used is the simultaneous equation model with panel data using the EC2SLS model. The results show that there is a simultaneous relationship between financial inclusion and economic growth and also between economic growth and income inequality. Economic growth has a positive and significant effect on financial inclusion. Financial inclusion, foreign direct investment, and government spending have a positive and significant effect, while income inequality has a negative and significant effect on economic growth. Financial inclusion and inflation have a positive and significant effect, while economic growth has a negative and significant effect on income inequality. Thus, this study can show that financial inclusion can reduce income inequality by promoting economic growth.

Peran Mediasi Pertumbuhan Ekonomi pada Pengaruh Desentralisasi Fiskal terhadap Ketimpangan Pendapatan Daerah

This study aims to examine and prove the effect of fiscal decentralization on regional income inequality with economic growth as a mediating variable. This study is quantitative. The research population is provincial governments in Indonesia in 2017-2021. Sample selection using purposive sampling techniques. The research sample amounted to 15 provincial governments. Data analysis technique in this study using Structural Equation Modeling Partial Least Square (SEM-PLS) with WarpPLS 7.0 software. The results showed that fiscal decentralization has no effect on regional income inequality. Fiscal decentralization affects economic growth. Economic growth affects regional income inequality. Fiscal decentralization with economic growth as a mediating variable affects regional income inequality. The implication of this research is fiscal decentralization that has been running needs to be optimized. This is to realize equitable distribution of regional income and increase economic growth. In addition, the government needs to pay special attention to areas that have high economic growth rates. However, it is followed by a high income inequality.

Analisis Pengaruh Pertumbuhan Penduduk Terhadap Pertumbuhan Ekonomi Di Kabupaten Agam Tahun 2010 - 2021

This study aims to obtain data, process, and analyze the results of increasing the number of people with economic progress in Agam Regency in 2010 - 2020 can be seen from: 1) population growth in Agam Regency in 2010 - 2020. 2) Agam economic development in 2010 - 2020 3) the effect of population growth on economic progress in Agam Regency in 2010-2020. The type of research used in this research is descriptive quantitative research which is a quantitative research in the form of a description with numbers or numeric. The sample in this study is total sampling where all data are taken from population growth and economic growth in Agam district. The results obtained from this study: 1) from the last 10 years there has been a fluctuation in the population growth of Agam Regency. 2) Agam Regency's economic growth has increased and decreased where the highest economic growth was in 2012 as much as 6.18% and the lowest was in 2020 with a figure of -1.38%. 3) the increase in population has a significant positive impact on economic growth in Agam Regency.

Financial inclusion and financial development: implications for monetary policy effectiveness and economic growth in sub-Saharan Africa

PurposeThis paper explores the implications of financial inclusion and financial development for the conduct of monetary policy in achieving price stability and economic growth in sub-Saharan Africa (SSA).Design/methodology/approachThe paper employs the system-generalized methods of moment (GMM) estimation technique using panel data spanning 2004 to 2019 and sourced from Databases of (International Monetary Fund's) IMF's Financial Access Survey (FAS), IMF's International Financial Statistics (IFS), World Bank's Global Financial Development Database (GFDD) and World Bank's World Development Indicators (WDI).FindingsThe authors find that financial inclusion has a double-edge effect in SSA. That is, it increases economic growth and lowers inflation in SSA. Furthermore, the results show that a simultaneous increase in financial inclusion and financial development have restrictive effects on economic growth. On the evidence provided, the authors conclude that financial inclusion is an important predictor of economic growth and the conduct of monetary policy in the sub-region.Originality/valueThis paper expands and contributes to the frontier of knowledge how financial inclusion is important for the conduct of monetary policy by monetary authorities in achieving its intended objectives in SSA. The paper highlights the need for ongoing enhancement of financial inclusion of many governments in the sub-region to achieving high economic growth and price stability. Thus, there is the need for policy makers to ensure that a more stringent, effective and appropriate policies and measures are put in place to enhance financial inclusion while taking into consideration the extent of financial development in SSA.

THE ROLE OF INDUSTRY IN THE ECONOMIC GROWTH OF UZBEKISTAN: ANALYSIS, FORECAST AND DEVELOPMENT PROSPECTS

This article reveals the importance of the industrial sector in the economic growth of our country. Dynamic changes in the volume of industrial products in the regions of the country were analyzed and the specialization of regions in sectors was evaluated. The influence of the added values of economic sectors on the gross domestic product was analyzed based on econometric models. Also, a forecast was made on the main economic indicators, and scientific proposals were developed to ensure high economic growth.

Entrepreneurship and Economic Growth: The Moderating Role of Governance Quality

The role of institutional quality is important for the development of entrepreneurship and economic growth. With this question in mind, it is crucial to understand why some countries have higher economic growth and more entrepreneurial activity than others, and what factors determine the relationship between entrepreneurship and growth. Hence, the aim of this research is to identify the moderating effect of governance quality in terms of 6 sub-indices, including voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption based on a sample of 54 countries participating in the Global Entrepreneurship Monitor (GEM) project during 2008–2020. The results show that the quality of governance increases the positive relationship between entrepreneurial activity and economic growth. In particular, all sub-indicators of governance quality seem to be moderators between entrepreneurship and economic growth. This study has implications both from a theoretical point of view (promoting the application of institutional economics in entrepreneurship–growth nexus) and from a practical point of view (providing insight into policies that improve the governance quality) promoting entrepreneurial activity and economic growth.

Is Higher Economic Growth Possible Through Better Institutional Quality? Evidence from Nigeria

Using an ARDL model, this study analyzes the impact of institutional quality on economic growth in Nigeria. Employing time series data from the World Bank from 2002 to 2020, it was found that the variable for controlling corruption has a negative impact on economic growth both in the short and long run. More specifically, a one percent rise in corruption results in over nine per cent loss or decrease in economic growth. However, it was shown that long-term political instability has a negative impact on economic growth. Simply put, a rise in political instability by one per cent would lead to over six per cent decrease in growth rate. The findings support the idea that corruption eventually weakens economic performance. As a step in economic policy, it is important to make efforts to fight corruption in every facet of the economy. Keywords: Institutions; growth; ARDL model; corruption, FDI. JEL Code: E22, O47, F23. DOI: 10.7176/JESD/14-8-05 Publication date: April 30 th 2023

Financial market spillovers and macroeconomic shocks: Evidence from China

With the development of China’s financial reform, Chinese financial markets have become closely linked. The cross-market spillover effect of financial risks is at the core of systemic risks. This paper’s marginal contributions include (1) a new method is proposed based on structure learning for Bayesian networks to measure the multilateral spillover effect of a multiasset financial system. Additionally, this paper discusses (2) the macroeconomic mechanism behind the linkage of financial markets. The empirical results show that (1) the linkages between financial markets significantly exist, (2) uncertainty and negative macroeconomic shocks enhance the spillover effect in financial markets, and (3) the impact of negative macroeconomic shocks on the spillover effect of the financial market is weakened at the high economic growth stage.

The causal nexus between innovation and economic growth: An OECD study

AbstractObjectiveInnovation contributes to economic growth by generating new ideas and improving production processes. At the same time, countries with high economic growth have the freedom to promote innovation. This article aims to examine the causal relationship between innovation and economic growth.MethodAn innovation index was constructed using factors of innovation, utilizing principal component analysis. The study used Granger causality to investigate the causal relationship between innovation and economic growth. The sample comprised 34 OECD countries during the period 1961–2018.ResultsThe results showed that the United States had the highest innovation index, while Luxembourg had the highest economic growth. The study found both unidirectional and bidirectional causal relationships between innovation and economic growth.ConclusionsThe study highlights the importance of innovation in driving economic growth and provides insights into the complex and dynamic relationship between these two variables. The findings could be useful for policymakers in designing effective strategies to promote innovation and foster economic growth in their respective countries.

Do economic growth target constraints affect firm innovation?

Compared with Europe and the United States, there has been a unique phenomenon of high economic growth and low investment in research and development by firms in China. Based on the promotion tournament theory, this study examines the influence of economic growth target constraints on firm innovation, using over 8654 listed manufacturing businesses in 230 prefecture-level cities in China. We demonstrate that hard constraints and top-down amplification significantly inhibit firm innovation, whereas soft constraints promote it. Additionally, the inhibitory effect is considerably pronounced on breakthrough innovations, as well as in eastern regions and for SOEs. There is also preliminary evidence that hard constraints inhibit firm innovation through two channels: crowding out science and technology innovation expenditures (neglecting innovation) and inhibiting industrial structure upgrades (preferring production). Overall, our study contributes to understanding how macroeconomic growth targets affect firm innovation. The conclusions of our study apply to policymakers in China and other economies that regularly set economic growth targets.

International Tourism Policy and Development: Indian Tourism Policy

India is one of the worldwide tourist goals. The current study focused on it in the context of tourism policy and its industry, which is rapidly growing, particularly in Delhi and Mumbai. The rapid growth of India's tourism industry is affected by several factors, including the country's high economic growth rate over the past decade and the fact that it is now one of the more affordable destinations for foreign tourists. Additionally, several significant challenges are associated with developing the Indian tourism industry. To address these challenges and ensure that India's tourism industry continues to increase in the years to come, the government has introduced several new tourism policies aimed at improving the infrastructure available in the country and making it easier for tourists to come and visit. These policies include introducing a dedicated high-speed rail link between Delhi and Mumbai, developing a new visa policy for foreign visitors, and simplifying the process for acquiring permits for filming or photography in popular tourist attractions nationwide. Overall, these policies represent a significant step in developing the Indian tourism industry and will go a long way towards guaranteeing that the country remains a popular destination for tourists worldwide for many years; this study focused on it deeply based on earlier investigations.

Development of the Economic Growth Model Reducing Poverty in Central Java Indonesia

Purpose: Research purposes of analyzing the Human Development Index open unemployment rate to Poverty with intervening variables of economic development in Central Java Province in 2015-2020. Theoretical framework: Human Development measures human development achievements based on a number of basic components of quality of life. Unemployment is a macroeconomic problem that directly affects human survival. Poverty is the inability to meet the minimum standard of living, where the measurement of poverty is based on consumption. The major theory used relates to the Neo-liberal and Social Democracy paradigms. Economic growth has a correlation with the number of poor people, where high economic growth will have an impact on reducing the number of poor people, with the assumption that economic growth is pro-poor. Design/methodology/approach: This research uses a quantitative approach. The analysis uses the website's secondary data published by the Central Statistics Agency. The number of data is 210, processed using AMOS to determine the direct and indirect effects and a Sobel calculator to assess the impact of the intervening variables. Findings: The results showed that the Human Development Index did not significantly impact Economic Growth, the Open Unemployment Rate substantially influenced Economic Growth, and the Human Development Index significantly affected Poverty. Open Unemployment Rate has no significant impact on Poverty. Economic growth has no significant effect on Poverty. The Growth of Economic can not mediate impact human development index on Poverty. Economic growth can not mediate result of the open unemployment rate to Poverty Research, Practical & Social implications: the research can be carried out in different places with a broader objective. Provincial or district/city governments in Central Java Province as policy material and or policy projections in the future Originality/value: The findings of this study can be generalized to different provinces so that they can be used as material for government policies to increase the human development index, reduce unemployment, increase economic growth so that poverty will decrease.

Does the economic growth target overweight induce more polluting activities? Evidence from China.

In China, official promotion evaluation based on economic performance motivates local governments to develop high economic growth targets, which has played an active role in boosting China's economic growth in the past decades, whereas its environmental consequences have not been fully exploited. This paper finds that the economic growth target overweight has a stronger positive impact on the output of high-polluting industries than on the output of low-polluting industries, thus inducing more polluting activities. To deal with the issues of reverse causality and omitted variables bias, we take an instrumental variable approach. Examining mechanisms, we show that economic growth target overweight promotes polluting activities through the deregulation of the polluting activities in high-polluting industries. We also find an increase in the impact of the economic growth target overweight after the 2008 global economic crisis. Our study provides new evidence for explaining the dual presence of rapid economic growth and heavy environmental pollution in China.

Does Environmental Decentralization Affect the Supply of Urban Construction Land? Evidence from China

Against the background of Chinese decentralization, the preferences and choices of local governments significantly affect the scale and structure of urban construction land supply. Due to the shortage of financial funds and the political performance pursuit of local governments, environmental decentralization gives local governments greater autonomy in environmental management, and increases the possibility for local governments relying on land transfer income to make up for the financial gap and provide public goods and services. This paper analyses the impact of environmental decentralization on the construction land supply scale of local government based on the panel data of 30 provinces in China from 2003 to 2015. The results indicate that: (1) environmental decentralization has a positive effect on the increase in urban construction land supply scale; (2) environmental decentralization affects urban construction land supply by strengthening land financial dependence and distorting land resources misallocation; (3) there are regional disparities in the effect of environmental decentralization on urban construction land supply. The impact is greater in regions with high financial pressure, high economic growth pressure, and low environmental protection pressure. In summary, some policy suggestions are put forward to reasonably supply urban construction land against the background of Chinese decentralization.

Population and economic development: A counterintuitive relationship for a sustainable world

The world population continues to grow, generating a rapid consumption of the earth’s resources that do not have enough time to regenerate. On one side, some economists warn about restricting the population increase that penalizes countries favoring birth control. Conversely, the widespread way of thinking pushing toward galloping demography can be uneconomic. Is the straight correlation between solid demographics and high economic growth correct in a complex and highly nonlinear system? Is the assumption behind the quasi-postulate indicating infinite growth true? This paper attempts to explain the divergent viewpoints regarding the impact of population size on economic development by offering a holistic model instead of a linear cause-and-effect analysis and its variations we find in the majority of works on the subject that neglect the higher-order interactions between various factors, generating approximate, even biased answers due to a legitimate desire to simplify complex phenomena. A systemic model integrating population growth, technology, and economy in a fully endogenous way and in a finite world is proposed, simultaneously highlighting sustainability's role through two main variables, namely “Population” and “Carrying Capacity” of earth. The model tries to find the right balance between those, alarmists, who advocate a soon uncontrolled situation, and others, easygoing, and warn against any drastic form of growth limitation susceptible to plunging billions of people into poverty. It contributes to establishing the conditions for preserving the environment while stimulating the economy in a sustainable manner, with population evolution in the foreground.

Peace and Development in South Asia: Problems and Prospects

South Asia has been recognised by the World Bank as an important region in the Global South. It has achieved robust economic growth over the past 20 years which has helped in reducing poverty and improving standards of human development. On the other hand, 36% of the world’s poor live in South Asia, so a lot more needs to be done. This article argues that South Asian countries need peace and stability in order to be able to concentrate on their economic development and achieve the UN’s Sustainable Development Goals. Centuries of colonial rule had led to the impoverishment of the South Asian region and its people. It also created two states, India and Pakistan, that have never had good relations with each other. This has had an impact on regional cooperation and prevented the countries in the region from working together to achieve their developmental goals. The article concludes that while the region needs to sustain high economic growth rates, it does not automatically lead to the reduction of poverty. Other measures have to be adopted to promote the welfare of the people of South Asia.

Space Commercialization is Closing the Digital Divide, but Expanding Global Economic Inequality

Space-based broadband internet could prove trans-formative for half of the world's population, who are currently without access to broadband internet. There is a risk, however, that the economic benefits from space exploration and exploitation will flow to just a handful of countries where commercial space companies are concentrated, chiefly the United States, further widening global economic inequality. While more multilateral mechanisms are warranted, countries should proactively engage in cooperation with leading actors, lest they miss out on the high economic growth resulting from the space economy.

Who get paid higher? A study on wages decomposition between manufacturing and non-manufacturing workers in Indonesia

In 2008, Indonesia became a member of the G20, and it is estimated that in 2030 it will be in the top seventh economic countries if it can keep growing. Nevertheless, high economic growth was followed by an inequality problem. This study will analyze the wage gap between manufacturing and non-manufacturing workers. Using Sakernas 2020 and the Mincer wage model regression, the result showed that all independent variables: age, level of education, gender, region of residence, marital status, toddler, disability status, and certificate training influence wages for both manufacturing and non-manufacturing workers. Next, the Blinder-Oaxaca method decomposes the wage gap between both groups. It is shown that manufacturing workers get higher wages than non-manufacturing workers because of differences in the characteristic of workers and also industry attributes which, in this case, capital intensity.