Increase In Gross Domestic Product Research Articles

Indicators of the association of Unemployment in Indonesia with the Level of Employment Opportunity, GDP, and SER

Population inequality and the unequal distribution of income are indicators of unemployment in Indonesia, while unemployment plays an important role in economic growth. The increase in Gross Domestic Product (GDP) means that the level of public welfare improves in direct proportion to the gross domestic product (GDP) which is used as a measuring tool for economic conditions. School Enrollment Rates (SER) and employment opportunities are also identified as having an effect on economic growth, so it is important to conduct research using the ECM method using time series data for 1990-2019 sourced from the Central Statistics Agency (CSA). Based on the results of data processing, it can be seen that in the short and long term employment opportunities and GDP have a positive effect on unemployment. However, in the long term GDP and SER have no significant negative effect on unemployment.

Does renewable energy electricity and economic complexity index help to achieve carbon neutrality target of top exporting countries?

Despite extensive studies into international trade and CO2 pollution, a panel of only top exporting economies was not considered. As the current research is an endeavor to address the gap by exploring the impact of economic complexity index (ECI) and renewable energy electricity (RELC) on consumption-based carbon emissions (CCO2) in the presences of exports, imports, and gross domestic product (GDP) in the top exporting countries from 1990 to 2019. The results confirm a relationship between consumption-based carbon emissions, economic complexity index, renewable energy electricity, exports, imports, and economic growth in both the short-run and long run. Empirical evidence for cross-sectional auto-regressive distributed lags (CS-ARDL) estimates, confirms that economic complexity index imports and GDP are positively associated and have significant adverse short-run and long-run impacts on consumption-based carbon emission. Whereas, export and renewable energy electricity significantly reduce carbon emissions. To achieve carbon neutrality target, policymakers should make economic complexity reforms, import green products, and promote investments in sustainable sources.

THE RELATIONSHIP BETWEEN THE NUMBER OF TOURISTS ARRIVED IN ROMANIA'S DEVELOPMENT REGIONS AND THE GROSS DOMESTIC PRODUCT

At national level, the contribution of tourism to the formation of the Gross Domestic Product is quite significant, considering the year 2019, when the contribution of tourism was 6.1% (World Travel & Tourism Council, 2021). Thus, the connection between tourism and Gross Domestic Product is indisputable. The purpose of this study is to find out the influence of the number of tourists arriving in the development regions of Romania on the Gross Domestic Product. The regression method was applied for data processing, using the statistical program EViews. The highest increase in the Gross Domestic Product, depending on the increase in the number of tourists, is registered in the South-Muntenia Development Region, and the smallest increase is registered in the Bucharest-Ilfov Development Region. The results show that a large number of tourists does not necessarily mean generating a considerable increase in Gross Domestic Product.

Analysis of Factors Affecting Bangladesh’s Export to China: An Empirical Analysis

The importance of bilateral trade analysis between Bangladesh and China is increasing as Bangladesh constantly searches for opportunities to reduce the enormous trade deficit with China. This study analyzes Bangladesh’s export to China using the famous ‘Trade Gravity Model.’ The study examined Bangladesh’s exports to China from 1999 to 2020 using factors: Gross Domestic Product (GDP) of Bangladesh, Gross Domestic Product (GDP) of China, Population of Bangladesh, Population of China, Relative Distance between Bangladesh and China, Weighted Average Tariff Rate imposed by China and Relevant Trade Agreements between Bangladesh and China. The findings suggest that the exports of Bangladesh to China will rise with the increase of GDPs of Bangladesh and China, the populations of Bangladesh and China, and with the growth of number of trade agreements between Bangladesh and China. The study also shows that Bangladesh’s export to China will decrease with the increase of tariffs imposed by China on imports from Bangladesh and length of distance covered by the export order. The study’s findings provide policy implications for Bangladesh towards its successful graduation from the Least Developed Countries (LDCs) status. Journal of Business Studies, Vol. XLII, No. 1, April 2021 Page 73-86

PENGARUH TENAGA KERJA EKONOMI KREATIF DAN EKSPOR PRODUK EKONOMI KREATIF TERHADAP PERTUMBUHAN EKONOMI INDONESIA

<span lang="IN">Economic growth is a condition in which a country experiences an increase in gross domestic product (GDP). In this case, exports and employment are things that can affect economic growth. This study aims to analyze the effect of creative labor and exports of creative economy products on Indonesia's economic growth. This research was conducted in Indonesia. The variable is Indonesia's economic growth, the independent variables are creative economy workers and exports of creative economy products. The data used is secondary data. Secondary data were obtained from the yearbook and the official website of the Indonesian Central Statistics Agency and the Creative Economy Agency. The analysis tool used is multiple linear regression with the help of the Eviews 8 program. The results show that all independent variables have a significant effect on Indonesia's economic growth. The value of the coefficient of determination (R square) is 0.815076, which means that Indonesia's economic growth can be explained by the variable factor of creative economy labor and creative economy product exports of 81.5%. While the remaining 18.5% of Indonesia's economic growth is explained by other variables that are not included in the analysis model in this study</span><span lang="IN">.</span>

The Effect of the COVID-19 Pandemic on the Electricity Consumption in Romania

The COVID-19 pandemic obliged the Romanian government to take drastic measures to contain the virus. More than this, they imposed the heaviest restrictions in the EU. For more than a month, during the lockdown period, everything stopped: schools and universities had only online classes, national and international flights and gatherings were forbidden, and many restrictions for travel were imposed. This paper analyzes the changes that occurred in electricity consumption linked with economic growth, during the pandemic, in Romania. For a better understanding of the correlations between gross domestic product (GDP) and electricity consumption (EC) in different economic contexts, the period 2008–2020 was divided into three series: the 2008–2012 financial crisis and the post-crisis recovery period, the 2013–2019 period of economic growth, and the Q1–Q3 2020 pandemic period. Using correlation coefficients and regression analysis, the authors found that the GDP decoupled from EC in the first period. The increase in GDP led to an increase in the consumption of electricity and the electricity produced from RESs in the second period. In Q3 2020, the real GDP is different from the calculated GDP, due to the pandemic. In Romania, the electricity consumption decreased within the first nine months of the pandemic due to the economic contraction. The electricity that comes from coal and hydropower plants suffered the biggest decrease. If the electricity that comes from NRESs can be adapted to the economic demands, the quantity of electricity that comes from RESs will be influenced by the climate conditions.

Converging or diverging trajectories of mortality under one year of age in the Baltic States: a comparison with the European Union

BackgroundInformation about trends in perinatal and child health inequalities is scarce, especially in the Eastern Europe. We analyzed how mortality under 1 year of age has been changing in the Baltic States and the European Union (EU) over 25 years, and what associations occurred between changes in macroeconomic factors and mortality.MethodsData on fetal, neonatal, infant mortality, and macroeconomic factors were extracted from WHO database. Joinpoint regression analysis was performed to analyze time trajectories of mortality over 1990–2014. We also investigated how the changes in health expenditures and Gross Domestic Product (GDP) contributed to the changes in mortality.ResultsThe reduction of fetal, neonatal and infant mortality in the Baltic countries led to convergence with the EU. In Estonia this process was the fastest, and then the rates tended to diverge. The strongest effect in reduction of neonatal mortality was related to the annual increase in health expenditure and GDP which had occurred in the same year, and a decrease in fetal mortality associated with an increase in health expenditure and GDP in the 4th and 5th year, respectively, following the initial change.ConclusionsThese findings outlined convergences and divergences in mortality under 1 year of age in the Baltic States compared with the patterns of the EU. Our data highlighted a need to define health policy directions aimed at the implementation of effective intervention modalities addressing reduction of risks in prenatal and early life.

The Determinants of Sukuk Issuance: Evidence from Top Sukuk Issuing Countries

Macroeconomic variables may influence the issuance of Sukuk. The purpose of this study was to determine the relationship between macroeconomic variables namely Gross Domestic Product (GDP) per capita, inflation, rules of law, corruption of control and political stability. This study used a panel data study consisting of 11 countries that were mostly involved in the issuance of Sukuk. The countries are Bahrain, Brunei Darussalam, Indonesia, Kuwait, Malaysia, Pakistan, Qatar, Saudi Arabia, Singapore, Turkey and United Arab Emirates. The data was generated from 2006 until 2015 and collected from the authorized sources such as the Islamic Finance Information Services (IFIS), World Development Indicator and World Economic Outlook. This research employed several statistical methods like descriptive statistics, unit root test, and correlation analysis. In order to meet the objective of this research, an econometrics estimation of Pool Ordinary least square model, Fixed Effect Model and Random Effect Model were tested. The output from the Fixed Effect Model indicates that only GDP and control of corruption have a significant relationship to Sukuk issuance. It can be concluded that when the GDP increases, the number of Sukuk issued will increase accordingly. This is also applicable to corruption where better control of corruption will lead to an increase in Sukuk issuance. Therefore, good policies should in place to ensure a conducive economic environment that will encourage participation in the Sukuk market. Keywords: Sukuk, Islamic capital market, macroeconomic, panel data, least square model

Spatiotemporal Evolution of Lakes under Rapid Urbanization: A Case Study in Wuhan, China

The impact of urbanization on lakes in the urban context has aroused continuous attention from the public. However, the long-term evolution of lakes in a certain megacity and the heterogeneity of the spatial relationship between related influencing factors and lake changes are rarely discussed. The evolution of 58 lakes in Wuhan, China from 1990 to 2019 was analyzed from three aspects of lake area, lake landscape, and lakefront ecology, respectively. The Multi-Scale Geographic Weighted Regression model (MGWR) was then used to analyze the impact of related influencing factors on lake area change. The investigation found that the total area of 58 lakes decreased by 15.3%. A worsening trend was found regarding lake landscape with the five landscape indexes of lakes dropping; in contrast, lakefront ecology saw a gradual recovery with variations in the remote sensing ecological index (RSEI) in the lakefront area. The MGWR regression results showed that, on the whole, the increase in Gross Domestic Product (GDP), RSEI in the lakefront area, precipitation, and humidity contributed to lake restoration. The growth of population and the proportion of impervious surface (IS) in the lakefront area had different effects on different lakes. Specifically, the increase in GDP and population in all downtown districts and two suburb districts promoted lake restoration (e.g., Wu Lake), while the increase in population in Jiangxia led to lake loss. The growth of RSEI in lakefront area promoted the restoration of most lakes. A higher proportion of IS in lakefront area normally resulted in more lake loss. However, in some cases, the growth of IS was caused by lake conservation, which contributed to lake restoration (e.g., Tangxun Lake). The study reveals the spatiotemporal evolution of multiple lakes in Wuhan and provides a useful reference for the government to formulate differentiated protection policies.

Do managers sleep well? The role of gender, gender empowerment and economic development.

Work demands often disrupt sleep. The stress of higher status theory posits that workers with greater resources often experience greater stress. We extend this theory to sleep and ask: do managers report more disrupted sleep and does this vary by gender and country context? Data come from the 2012 European Social Survey Programme and our sample comprised those currently employed in their prime working age (n = 27,616; age 25–64) in 29 countries. We include country level measures of the Gender Development Index (GDI) and gross domestic product (GDP). We find that workers sleep better, regardless of gender, in countries where women are empowered. For managers, women sleep better as GDI increases and men as GDP increases. Our results suggest that men experience a sleep premium from economic development and women from gender empowerment.

Greenhouse Gas Emissions from Solid Waste Management in Saudi Arabia—Analysis of Growth Dynamics and Mitigation Opportunities

The continuous growth in population, urbanization, and industrial development has been increasing the generation of solid waste (SW) in the Kingdom of Saudi Arabia. Consequently, the associated greenhouse gas (GHG) emission is also following an increasing trend. The collection and use of greenhouse gases emitted from solid waste management practices are still limited. A causality analysis examined the driving factors of the emissions from solid waste management. The methane (CH4) emissions from municipal solid waste (MSW) increased with an increase in gross domestic product (GDP) per capita and urban population, and an increase in foreign direct investment (FDI) inflows and literacy rate was likely to reduce CH4 emissions from municipal solid waste and vice versa. The CH4 emission generated from industrial solid wastes was found to be positively related to GDP per capita, urban population, and FDI inflows. However, a decrease in the unemployment rate was likely to increase CH4 emissions from industrial solid wastes. The future greenhouse gas emissions were projected under different possible socio-economic conditions. The scenario analysis based on different variations of population and GDP growth revealed that methane emission from total waste would increase at an average annual rate of 5.13% between 2020 and 2050, and is projected to reach about 4000 Gg by the end of the year 2050. Although the Kingdom has been taking some initiatives towards climate change mitigation, it has significant opportunities to adopt some of the best practices in solid waste management including reduction, recycling, composting and waste-to-energy, and carbon capture and utilization. This study also put emphasis on developing appropriate policy approaches for climate change mitigation based on the circular economy which is gaining momentum in the Kingdom.

EFEKTIVITAS TENAGA KERJA DAN INVESTASI ASING DALAM PERTUMBUHAN PDB PERKAPITA NEGARA ASEAN

Increase in Gross Domestic Product (GDP) is a major problem that results in any economic development in all countries. Developing countries always have difficulty getting high economic growth, this is because developing countries have not achieved economic stability. Supporting factors, including labor and foreign investment, are factors that greatly affect the country's GDP growth. The samples of Asean countries used include Indonesia, Malaysia, the Philippines, Thailand, Myanmar, Vietnam and Cambodia with vulnerable years from 2000 to 2018. Using data on X1 Labor and X2 Foreign Investment (FDI) and processed using the panel data method on E-views and the results show that foreign labor and investment have a significant effect on GDP per capita growth in Asean countries. It is proven that the increase in foreign investment (FDI) each period will have an impact on labor demand so that the GDP per capita produced by each country will also increase.

THE IMPACT OF MACROECONOMIC DETERMINANTS ON COMMERCIAL BANK PROFITABILITY IN CENTRAL AND SOUTHEASTERN EUROPEAN COUNTRIES

The purpose of this paper is to investigate the impact of macroeconomic variables on bank profitability indicators in Central and Southeastern European countries (CESE). The research sample includes 13 countries of CESE countries: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia, for the period 2008-2015. The core idea is to empirically evaluate the impact of the main macro indicators, such as gross domestic product, inflation and the real interest rate on bank profitability and their potential relationship. The subject of this paper applies a two-step model: model 1 includes return on asset (ROA), while model 2 includes return on equity (ROE) as the dependent variable. On the other hand, independent variables are gross domestic product (GDP), inflation (INF) and real interest rate (RIR). The results of the panel study indicate that there is a significant effect of GDP and INF on bank profitability indicators in selected countries. Namely, the 1% increase in GDP and INF rise ROA for 0.47% and 0.48%, where inflation has a greater influence on ROA and ROE compared to GDP. The results of the random effect model show that the 1% increase in GDP and INF raise ROE for 0.49% and 0.42%. Likewise, real interest rate has no significant effect on ROA and ROE in selected countries. Based on empirical findings, policymakers should focus on rapid economic growth with controlled inflation that will enhance bank profitability in Central and Southeastern European countries.

Multiobjective restructuring aimed at green economic growth

This research introduces an approach to the structural optimization of national economies resulting in green economic growth. This study considers the comparative advantages of the sectors of the economy in the final product ratio, energy intensity, and carbonization of the gross output. The input–output model is transformed to a structured form, and the projected gradient of the gross domestic product (GDP) is derived. Factorial models of energy consumption and carbon dioxide (CO2) emissions are developed and used to obtain the projected antigradients of these indicators. Each of these vectors determine the locally optimal structural change for each dimension. Their components are found to be proportional to the sectoral deviations from the national average, thus revealing a sectorwise comparative advantage or disadvantage. This observation allowed us to characterize these components as Ricardian gradients. Although it is not possible to move in each of the three vectors concurrently, it is possible to direct the economic restructuring to make the least possible acute angles with each vector. Thus, the locally Pareto-optimal vector of structural change is formed. At each moment in time, the system is directed to move alongside this vector or by the boundary. The suggested approach is applied to simulate the economies of China and the United States. The obtained results reveal that the suggested changes in the structure of the gross output simultaneously allowed for an increase in GDP, a decrease in energy consumption, and the mitigation of CO2 emissions. Applications to international cooperation and trade are discussed.

Essential diabetes medicines and health outcomes in 127 countries.

Diabetes is the ninth leading cause of death. Improving access to diabetes medicines may decrease mortality. Diabetes medicines on national essential medicines lists (NEMLs) vary considerably. We examine the association between diabetes population health outcomes relating to mortality and the listing of diabetes medicines on national essential medicine lists for 127 countries. We conducted a cross-sectional study. We determined the number of diabetes medicines on NEMLs and used multiple linear regression to analyse the association between diabetes health outcomes and the number of medicines on NEMLs. We used linear regression to assess the association between diabetes health outcomes and the listing of or not listing of medicines that were listed by 25-75% of countries. Diabetes prevalence, gross domestic product (GDP) per capita and mean expenditure per person with diabetes were controlled for in all analyses. The total number of diabetes medicines listed on NEMLs ranged from 0 to 16 (median: 4; interquartile range: 3-6). Diabetes health outcome scores were associated with the number of diabetes medicines on NEMLs [1.3-point increase (95% confidence interval, 95% CI 0.5-2.1) for every additional medicine on NEMLs; P = .002] and GDP per capita [19.5-point increase (95% CI 5.4-33.6) for every 10-fold increase in GDP; P = .003]. Diabetes expenditure was not associated with health outcome scores (P = .23). Increases in diabetes health outcomes score were associated with the listing of glimepiride (7.9-point increase, 95% CI 2.3-13.5, P = .006) and glipizide (5.8-point increase, 95% CI 0.03-11.6, P = .049) on NEMLs. Listing of diabetes medicines on NEMLs has the potential to improve population health outcomes related to mortality in countries with diverse incomes and diabetes prevalence without necessarily increasing diabetes health expenditure.

Examining the determinants of renewable energy deployment: Does the choice of indicator matter?

Comprehending the determinants of renewable energy (RE) deployment has preoccupied the energy literature as well as policymakers internationally due to countries' overall shift away from fossil fuels in the energy mix. As stated in the literature, empirical studies that analyze the determinants of RE deployment use a number of different indicators for RE. The effect of an ambiguous choice of the proxy might produce various outcomes and thus create inconsistencies in the policy recommendations. This study aims at filling this gap in the literature comparing and contrasting not only the use of RE indicators but also, for robustness purposes, using indicators at aggregate and per capita forms for a global sample, developed countries, and developing countries. For the empirical purpose, this study employs two econometric techniques: the pooled ordinary least squares with robust SEs and the augmented mean group estimator, which account for cross-sectional dependence in the dataset. The results show that a 1% increase in gross domestic product (GDP) or GDP per capita leads to an increase in RE between 0.05% and 1.01% and a 1% increase in energy price causes an increase in RE between 0.07% and 0.99% with respect to various proxies, implying that the magnitudes of impacts of income and oil price are quite smaller when RE is proxied with RE consumption than when it is proxied with RE production. In addition, their impacts dramatically change across the choice between the share of RE and the levels of RE. More interestingly, not only the size of the effect of carbon emissions but also its direction changes across indicators. Overall, the choice of RE indicator is of great importance in putting forward reliable and consistent policy suggestions. Highlights This study uses a number of renewable energy indicators to analyze the determinants of renewable energy deployment. Impacts of income and oil price are smaller when renewable energy is proxied with consumption. Not only the size of the effect of carbon emissions but also its direction changes across indicators.

Chronic respiratory disease mortality and its associated factors in selected Asian countries: evidence from panel error correction model

BackgroundChronic Respiratory Diseases (CRDs) in Asian countries are a growing concern in terms of morbidity and mortality. However, a systematic understanding of the increasing age-adjusted mortality rate of chronic respiratory disease (CRD) and its associated factors is not readily available for many Asian countries. We aimed to determine country-level factors affecting CRD mortality using a panel error correction model.MethodsBased on data from the Global Burden of Disease Study 2017, we estimated the trends and distribution of CRD mortality for selected Asian countries from 2010 to 2017. Furthermore, we evaluated the relationship between CRD mortality and Gross Domestic Product (GDP) per capita, average years of schooling, urbanization, and pollutant emission (PM2.5 concentration) using a fixed-effect model. We corrected the estimates for heteroscedasticity and autocorrelation through Prais-Winsten adjustment along with robust standard error.ResultsBetween 2010 and 2017, approximately 21.4 million people died from chronic respiratory diseases in the countries studied. Age-standardized crude mortality rate from CRDs in the period had minimum and maximum values of 8.19 (Singapore in 2016) and 155.42 (North Korea in 2010) per 100,000 population, respectively. The coefficients corrected for autocorrelation and heteroskedasticity based on the final model of our study (Prais-Winsten), showed that all explanatory variables were statistically significant (p < 0.001). The model shows that the 1% increase in GDP per capita results in a 20% increase (0.203) in the CRD mortality rate and that a higher concentration of air pollution is also positively associated with the CRD deaths (0.00869). However, an extra year of schooling reduces the mortality rate by 4.79% (− 0.0479). Further, rate of urbanization is negatively associated with the CRD death rate (− 0.0252).ConclusionsOur results indicate that both socioeconomic and environmental factors impact CRD mortality rates. Mortality due to CRD increases with rising GDP per capita and decreases with the percentage of the total population residing in urban areas. Further, mortality increases with greater exposure to PM2.5. Also, higher years of schooling mitigate rising CRD mortality rates, showing that education can act as a safety net against CRD mortality. These results are an outcome of sequential adjustments in the final model specification to correct for heteroscedasticity and autocorrelation.

Pollution sensitive global crude steel production–transportation model under the effect of corruption perception index

This article explores global crude steel production transportation problem under the effect of corruption perception index of major steel producing countries. Also, pollution from production process as well as from the transportation system plays vital role towards sustainable development of any country. The development by means of reduction of health hazards, increase of gross domestic product (GDP) in real sense of several country, minimize the number of hungers and also controlling the corruptions in industrial sectors throughout the world. First of all, we have developed functional dependencies among the decision variables like production rate, consumption rate, corruption perception index and pollution indexes of different countries. However, we incorporate pollution due to rail freight transport in a simple production-supply model so as to minimize the average system cost with respect of several constraints for global sustainability in production-consumption-pollutions-corruptions process. In this study we have shown how GDP relates to corruptions, production, and pollution and reduce poverty exclusively. Taking secondary data of 61 countries from world steel annual report 2017, utilizing MATLAB software and LINGO software for data analysis and numerical computation we have come to several decision points. Using fuzzy system, we have shown how human resource development is possible by taking a considerable limit of corruption and pollution indexes. Graphical illustrations and sensitivity analysis are made to show the model validation by means of consumer’s adaptations with such global production set-up.

The effect of digital technology development on economic growth

The article simulates the impact of the digital technologies’ development on economic growth, which makes it possible to find ways to improve the quality of various spheres of life and identify areas of the economy, the accelerated digitalization of which will ensure an increase in gross domestic product (GDP). The research used groupings of economic activities that directly influence the development of the digital economy. Using the data of regression models, the coefficients of GDP elasticity from the development of the studied sectors were calculated and used to forecast GDP under the development influence of the studied sectors while maintaining the existing trends. The dynamics of the e-commerce market development in Ukraine, the dynamics of production volumes of products (services) of the main types of economic activities in the field of digital transformation of the economy in Ukraine, the dynamics of financial results of enterprises in the information and telecommunications sector in Ukraine, the dynamics of capital investments in the field of information and communications of Ukraine, the dynamics of foreign investment in the development of the type of economic activity “information and telecommunications” in Ukraine, the dynamics of the development of the main areas of digitalization of the Ukrainian economy in 2010-2018 and the dynamics of GDP in actual prices were revealed. A correlation and regression analysis of the impact of the main indicators of the digital technologies sectors development on Ukraine's GDP is also carried out. The forecast extrapolation trend of production growth volumes of products and services in the information sector of Ukraine was built. A forecast of GDP growth in Ukraine has been constructed, taking into account the processes of digitalization of the economy in accordance with certain trends. The forecast dynamics of changes in GDP under the influence of the IT sector development until 2023 was also illustrated. It was found that Ukraine lags significantly behind most developed countries in terms of the level of industrial production development of information and communication technologies and equipment, Ukraine is completely import-dependent in this area. It has been proved that stimulating the development of information and communication technologies has significant prospects for activating digitalization processes in all spheres of the economy and society and increasing GDP.

Transition of the Chinese Economy in the Face of Deep Greenhouse Gas Emissions Cuts in the Future

AbstractChina joined the Paris Agreement, and the global 2°C and 1.5°C warming targets will be supported by China. In order to achieve these targets, China's CO2 emissions need to be cut deeply by 2050. The present paper presents studies from the integrated policy assessment model for China (IPAC) team about the impact on China's economic development of deep cuts in greenhouse gas (GHG) emissions, in order to realize the Paris climate change targets. With the requirement of deep cuts in GHG emissions in China, China's economic development will also be impacted in moving toward a low‐carbon or zero‐carbon emission‐based economy by 2050. This means the Chinese economy needs a strong transition over the next three decades, a relatively short time. All sectors in the economy need to seek ways to reduce GHG emissions, and this could change activities, industry processes and technologies in order to make the deep cuts in GHG emissions happen. This is the meaning of the economic transition toward to a low‐carbon economy. The findings of the present paper include: a significant transition in the energy supply sector; a high rate of electrification in all end‐use sectors; and a technology transition in the transport sector. Transitions will also occur in the traditional industrial sectors, including steel making, cement manufacture, and the chemical sector. The availability of low‐cost renewable energy could change the allocation of industries, which could potentially have a strong impact on regional economic development. Deep cuts in CO2 emissions in China need not be a burden for economic development, as the IPAC results show there will be a more than 1.5% increase of gross domestic product by 2050 in the deep cut scenario compared with the baseline scenario.