Endogenous Economic Growth Model Research Articles

Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide

Purpose This paper aims to examine income convergence among the Euro members from 1995 to 2021. Design/methodology/approach This study uses Phillips and Sul’s test (2007, 2009) extended by Lyncker and Thoennessen’s (2017) algorithm jointly with β and σ – convergence analysis and a traditional growth equation. Findings This analysis identifies three clubs of countries in terms of gross domestic product (GDP) per capita with notable disparities between and within them, which implies that the theory of optimal currency areas has not been fulfilled. Originality/value These results rule out the core/periphery divide as presented in the literature to date. Finally, by estimating an endogenous economic growth model, this study finds the primary factors underpinning the differences between the three stationary states: labor productivity, physical and human capital, investment and international trade.

Accelerating decarbonized economic growth through net-zero entrepreneurship: Low-carbon economic development perspective

Net-zero entrepreneurship is a novel concept introduced in the context of carbon neutrality, and exploring whether it can catalyze decarbonized economic growth is a worthy pursuit. This study constructs a comprehensive, low-carbon endogenous economic growth model to scrutinize the intricate nexus between net-zero entrepreneurship and decarbonized economic growth. Empirical validation employs a series of multiple regression models to rigorously test the hypotheses derived from the theoretical framework using an extensive dataset spanning Chinese provinces. The results reveal a nuanced landscape. (i) Net-zero entrepreneurship plays a remarkable role in promoting decarbonization growth, with considerable regional heterogeneity. (ii) Green technology progress exhibits a notable mediating effect. (iii) Environmental regulation and industrial structure optimization have positive moderating effects. (iv) The results passed alternative dependent variable and one-phase lag regression robustness tests. In a distinct contribution to entrepreneurship literature, this study augments the discourse on strategies to steer low-carbon transitions. The research findings indicate that net-zero entrepreneurship can accelerate the global decarbonization process, and green technology progress is a significant driving mechanism in this process. Additionally, it is essential to strengthen environmental agencies’ regulatory oversight and optimize industrial structures to pave the way for transformative sustainable growth. In the future, more entrepreneurs should be encouraged to engage in green technology and business model innovation to contribute to global decarbonization efforts.

The characteristics and mechanisms of carbon finance development on green economic efficiency: an empirical analysis based on endogenous economic growth model

The characteristics and mechanisms of carbon finance development on green economic efficiency: an empirical analysis based on endogenous economic growth model

The implementation of Public-Private Partnership in China: A sustainable pathway?

The organizational forms of infrastructure in China are divided into two categories, the traditional Public Procurement Model (PUB) model and Public-Private Partnership(PPP) model. The main difference is the separation or binding of the construction and operation phases. A systematic understanding is needed of how Chinese local governments choose between these two models. In this paper, we take public capital congestion and local government objectives as the entry point to study the effects of both on PPP choice. Firstly, by constructing an endogenous economic growth model under the PPP model, and comparing it with the model under the PUB model, this paper initially explains how the rise in public capital congestion affects the choice of the PPP by growth-oriented local governments. Then the data from prefecture-level cities from 2009-2018 are utilized to conduct empirical tests. We find that urban economic growth pressures have a positive effect on the choice of PPP when the congestion of public capital increases. Furthermore, the implementation of PPP is indeed conducive to economic performance, and its core mechanism is to provide more infrastructure (like roads) rather than tax competition. The PPP model is more sustainable. We are the first to employ both modeling approach and the empirical research to address the implementation of Public-Private Partnership in China. And we have systematically analyzed the conditions and results of PPP selection by local governments. It formulates the Chinese PPP theory.

THE EFFECTIVENESS OF THE A2C ALGORITHM IN RELATION TO CLASSICAL MODELS OF THE THEORY OF ECONOMIC GROWTH

The relevance of the study is to identify the accuracy of the estimate obtained by the A2C algorithm, as well as the need for verification of reinforcement learning when working with optimization of economic processes. The purpose of the study was to analyze the effectiveness of the A2C algorithm, along with the specifics of its implementation, in solving optimization economic problems. The tasks considered were maximizing consumption in the Solow, Romer and Schumpeterian models of endogenous economic growth, and maximizing per capita income in the latter two, according to the consumption rate (in the latter two - saving rate) and the share of scientists in the economy, respectively. The results showed that for deterministic models (Solow model, Romer model), the variance of the parameter estimate is minimal and the average differs from the value obtained analytically by no more than a thousandth part with a sufficiently high number of time periods in the model. Nevertheless, in stochastic models (the Schumpeterian model), firstly, a high number of time periods in the model is required to match the estimate to the value obtained analytically, and secondly, the estimate obtained in this way, although biased by no more than a thousandth of a fraction, has a high variance.

Does green finance policy help to improve carbon reduction welfare performance? Evidence from China

Evaluating whether the green finance policy helps to enhance welfare performance in the context of carbon reduction is significantly important to low-carbon economic development transformation, while few studies have explored its environmental effects from the perspective of welfare. This paper theoretically analyzes the impact and corresponding mechanism of the green finance policy on carbon reduction welfare performance(CWP) by introducing green financial policy into endogenous economic growth model with environmental constraints. Treating the establishment of National Green Finance Reform and Innovation Pilot Zone (GFPZ) as a quasi-natural experiment, the difference-in-differences(DID) model is applied to empirically investigate the impact of green finance policy on CWP based on the panel data of cities and listed companies of A-share market in China during 2005-2019. The results show that the GFPZ policy significantly improves the CWP of pilot cities, compared with that of non-pilot cities, especially in the areas with advanced external conditions in financial development and innovation. Regarding the mechanisms, there are both "high-carbon contraction" and "green expansion" in capital allocation, but there is a differentiated effect among industries, which shows that the "high-carbon contraction" affects the scale and cost of financing simultaneously, while the "green expansion" only affects the financing cost. A squeezing-out effect rather than a forcing effect is characterized by the innovation compensation effect in high-carbon industries, which reflects that green finance policy has not yet exceeded the "optimal ratio" and "minimum intensity". In addition, the green finance policy has a positive spillover effect on the surrounding 200-700 km radius, but agglomerate shadowing is also observed. Overall, these results provide valuable insights into effective ways for green finance to support regional low-carbon economic transformation.

The Impact of Cultural Capital on Economic Growth Based on Green Low-Carbon Endogenous Economic Growth Model

This paper incorporates cultural capital, urbanization development level and carbon emission reduction input as endogenous factors into the endogenous economic growth model. By using optimal control theory and based on empirical analysis, this paper explores the relationship between cultural capital and green low-carbon endogenous economic growth. This paper finds that at the company level, cultural capital improves the technical efficiency and institutional efficiency of firms and then promotes economic growth. At the government level, cultural capital and government investment in urban fixed cultural assets promotes economic growth. At the resident level, the transformation of cultural capital into environmental protection awareness promotes firms and residents to independently practice green low-carbon behaviors. Firms can independently research and develop green low-carbon digital science and technology and produce green low-carbon digital goods, and residents can engage in green digital consumption, thereby reducing carbon emissions and carbon emission input and promoting economic growth. This paper explores the role of cultural capital in firms’ R&D, then promotes green low-carbon transformation of firms by exploring the role of cultural capital in government investment, promoting the government to increase investment in green low-carbon cultural education, exploring the impact of cultural capital on the thinking and behavior of firms and residents, and promoting the independent practice of green low-carbon behavior by firms and residents, ultimately promoting the development of a green low-carbon economy.

The impact of digital economy on the upgrading of manufacturing structure.

The global economic situation is in a downturn, and the upgrading of manufacturing structure is a necessary transformation path for the manufacturing industry to achieve high-speed and stable development. The article analyzes the theoretical mechanism of the digital economy affecting the upgrading of manufacturing structure through the endogenous economic growth model, constructs a three-stage mediation effect model, and empirically researches the path of the digital economy affecting the upgrading of manufacturing structure in the Pearl River Delta. The study finds that the digital economy has a significant positive promoting effect on the upgrading of manufacturing structure. In terms of the influencing mechanism, the enhancement of the level of independent innovation and the advancement of the human capital structure are the important paths of the digital economy in promoting the upgrading of manufacturing structure. Among them, the mediating effect is 17.5% for the level of independent innovation and 17.4% for the level of the advancement of the human capital structure. The results of the study also found that the upgrading of manufacturing structure cannot be separated from government support, and the influence of government support on t the upgrading of manufacturing structure reaches 44.9%, and government deployment and control is conducive to accelerating the process of advanced manufacturing structure.

Theory and model optimisation of rural creative economy development in less developed regions based on endogenous growth model

Abstract By constructing an endogenous growth model, this paper reveals the inner path of its development based on the rural cultural and creative economy. Secondly, by rationally allocating social resources and combining physical capital and cultural and creative capital, the inter-period optimization of consumption utility can be realized to the greatest extent. Finally, the endogenous economic growth model analyzes the economic effects of GDP and the H-village cultural creative tourism model in Guizhou Province. The results show that the correlation coefficient of the endogenous growth model of rural cultural creativity and economic development is R=0.979. The goodness of fit is R 2 = 0.967, and the adjusted goodness of fit is R 2 = 0.983, which indicates that the degree of proximity of the fitted equations to reality is extremely high. This paper provides the theoretical basis and practical guidance for developing a rural cultural and creative economy, which is of great significance for promoting the sustainable development of the regional economy.

The dynamic impact of digital finance on green innovation: evidence enterprise-level empirical data in China.

The digital finance generated by technology empowerment profoundly affects the innovative behavior of micro-enterprises. To estimate how digital finance influences the quantity and quality of green technological innovation, this paper introduces digital finance into endogenous economic growth model and further conducts correlation analysis with the combination of fixed effects model (FE) and panel threshold model (PTM). Moreover, this paper investigates the action mechanism from the perspective of financial constraint and financial cost. The empirical results indicate that digital finance improves the quantity and quality of green technological innovation significantly. Compared with the coverage of digital finance and digital services, the impact of usage depth on green innovation accumulates dynamically superimposed in the long term. The digital finance contributes to correct the mismatch of financial resources and further induces inclusive green innovation in the dimension of ownership, growth cycle, and enterprise scale. Mechanism analysis shows that the relief of financial constraint, environmental information disclosure, and increase of R&D investment are the main paths for digital finance to drive green innovation. With the different thresholds, the dynamic evolution process of green innovation driven by digital finance is characterized by "first quantitative change and then qualitative change." This paper suggests that the integration of technological innovation and digital financial services needs to build an inclusive digital financial service system, cultivate diversified financial formats, and improve the market environment of digital financial services.

Management of the productiveness of higher education in the development of branches of the national economy

The scientific problem of the article is the need to create scientific approaches to the formation of a higher education output management model for the sectors of the national economy. The relevance of the problem is caused by absence of direct positive influence of separate results formed by higher education sphere on indicators of national economy output. The article is devoted to the formation of conceptual approaches to managing the effectiveness of higher education from the position of national economy branches output growth. The methodological basis of the study is the theories of economic growth factors, including innovation theory and models of exogenous and endogenous economic growth, human capital theory, knowledge economy theory, management theory, methodological and experimental studies confirming a significant impact of the results of university educational and scientific activities on national economy output. The results of the effects produced by higher education sphere in the implementation of national economy sectors output has been analyzed. The analysis allows to determine the directions of improving the mechanisms of higher education producibility management for national economy – changing the forms of university teachers’ scientific attestation, systems of graduates’ regional distribution, and algorithms concerning international activity of universities.

Protection of Intellectual Property Rights, Financial Development and Green Low-Carbon Endogenous Economic Growth

This paper considers the protection of intellectual property rights and financial development in the green low-carbon endogenous economic growth model, and also considers the total financing scale of the firms in the financial development sector, the transformation ability of the R&D sector to the advanced technology of developed countries, and the intensity of intellectual property protection, which gives the household utility function to a household. After maximizing the utility function, this paper analyzes the economic growth rate and mainly finds that the economic growth rate increases with the increase of technological transformation capacity parameters, two kinds of production efficiency parameters, and the total financing scale of the firms, and in addition it decreases with the increase of the technical level of developing countries relative to developed countries. Then, considering the improvement degree of intermediate goods, R&D efficiency and financial frictional coefficient, the relationship between it and the economic growth rate is obtained. This paper finds that the economic growth rate increases with the increase of the degree of improvement; R&D efficiency parameter; the probability that any R&D project can bring positive returns; technical level; the investment in reducing carbon emissions; the amount of energy invested in the final goods production sector; and it decreases with the increase of the financial frictional coefficient.

External debt and economic growth in selected sub-Saharan African countries: The role of capital flight

The paper estimate an augmented endogenous economic growth model to investigates the extent to which capital flight affects the impact of external debt on economic growth in selected sub-Saharan African countries. The estimations was done with the aid of a dynamic system generalized method of moments technique with data from 2000 to 2015. The direct impact of both capital flight and external debt as well as their combined effect on economic growth was found to be negative and statistically significant. Additionally, the marginal effects results show that a low level of capital flight has no noticeable effect on the negative impact of external debt on economic growth. In contrast, a high incidence of capital flight exacerbates the negative impact of external debt on economic growth. Based on the findings, we conclude that efforts to promote efficient external debt management should focus on reducing capital flight in sub-Saharan African.

Health-education-disaster green low-carbon endogenous economic growth model and its new accompanying effects

When considering that health, education and sudden disaster are transformed into endogenous factors at a specific period, what is the law of endogenous economic growth? This paper studies this law from three aspects which are production, household and government, takes health and education as endogenous factors into production and consumption, and runs sudden disasters through the whole paper. This study divides human capital into healthy human capital and educational human capital in order to explore the relationship between them, then, this paper obtains the health risk effect and capital contribution constraint effect. After constructing the Hamilton function and maximizing the utility function, the economic growth rate is obtained. The empirical analysis is carried out according to the 2020 China Statistical Yearbook, and the positive growth and negative reduction effects are obtained. After analyzing the types of government expenditure, the government financial distribution regulation is obtained.

Hierarchical Education Investment and Economic Growth in China

There is a difference between the ways investment in general and advanced education affects human capital accumulation. Based on the endogenous economic growth model, this study considered the impact of hierarchical education investment on human capital accumulation and economic growth. Using Provincial Panel Data, the empirical analysis found that only investment in general education had a significant effect on economic output per capita, while the effect of investment in advanced education was insignificant. Increasing investment in general education could promote technological progress. However, increasing investment in advanced education does not, which means that the human capital accumulated as a result of advanced education does not have the expected benefit. Furthermore, the expansion of enrolment in colleges and universities promoted the effect of advanced education on economic output and technological progress.

Numerical Simulation-Based Model for Analyzing the Correlation between GDP Index and Quality of Life

As the information carrier of the social economy, the quality of statistical data has become more concerned and sensitive in the society and the data quality of GDP, as one of the core aggregate indicators of national economic accounting, has received more extensive attention. Government statistical departments have placed data quality in a strategic position in the development of statistical undertakings, and the assessment of GDP data quality is an important part of their data production management process. This paper uses the livelihood index to represent the survey data of quality of life level and theoretically analyzes and empirically tests the importance of improving quality of life in the current development stage, the relationship between improving people’s livelihood and economic development, and the population distribution of public service satisfaction and the influence of public service satisfaction on life satisfaction. In response to the major real-life problems in the development of economic and social quality of life, many research institutions have carried out in-depth survey and research work at various levels and in various fields, with large samples and a wide range, accumulating a large number of survey and research reports with detailed data and unique content, the same as thematic research reports with standardized analysis based on survey data. Taking mathematical economics as the basic starting point, this paper conducts an in-depth study on the relationship between GDP index and quality of life from the analysis of the operation law, inner operation mechanism, stability, and other relevant aspects of the model itself. Taking the classical endogenous economic growth model as the starting point, the endogenous theoretical nonlinear dynamical system of GDP index and quality of life, the nonlinear dynamical system of GDP index and quality of life, and the theoretical nonlinear system of GDP index and quality of life supply and demand are constructed; and the stability analysis is conducted for the constructed nonlinear dynamical system, the situation when the model starts to destabilize is discussed and the model is addressed. The theoretical analysis and numerical simulation results are presented for the conditions of existence, bifurcation direction, and stability of the bifurcation period solution of the Hopf bifurcation that may occur.

Insurance industry and China’s regional economic development

With the development of the financial industry market, China’s attention has been drawn to the role of insurance and economic development in the insurance industry. The aim of the paper is to determine the impact and development of the insurance industry of the regional economy; formulate an appropriate policy for the insurance industry. The tasks of the study are to analyze the contribution of the insurance industry to the economic development of China and the impact of property and life insurance on economic growth in the region. The author applies methods such as literature analysis and empirical research. Reference samples selected for the study form a theoretical basis. The paper defines the study model, study variables, and statistics. Based on the research on the economic growth theory, the author uses the endogenous economic growth model to conduct empirical research and test the data of various regions in China from 2013 to 2019. The author uses statistics to conduct empirical analysis and report research findings and interprets empirical results using comparison methods and graphs. The study reveals that life insurance and property insurance are conducive to the steady growth of China’s economy, reduce economic risks, promote the development of investment and exports, and promote economic growth. The development of the insurance industry has realized the collection of funds and supported the development of regional industries, and has improved the efficiency of the use of funds. The author concludes that the development of policies of the insurance industry in different regions and the development of the adaptive insurance business are more conducive to economic stability and growth. The findings of the study can be applied to countries with different economic development by region, such as Russia.

ЭКОНОМИЧЕСКИЙ ПОТЕНЦИАЛ КАК КОНЦЕПЦИЯ СТРАТЕГИЧЕСКОГО УПРАВЛЕНИЯ ПРОМЫШЛЕННЫМ ПРЕДПРИЯТИЕМ

The article is devoted to the problems of improving the industrial enterprises management which are becoming relevant due to dynamic changes in the operating environment under the challenges of the fourth industrial revolution, structural transformation of socio-economic and technological processes. The main objective of the work is to find and develop a concept of strategic management which is the most reasonable and appropriate for the modern conditions. This concept should synchronize in-house transformations with the permanent changes in the external environment; provide a timely response to the emerging concerns and opportunities in all aspects of activity, proactive managerial decision-making. Methodologically, the research arises from the classical and modern theories of strategic planning and management, models of sustainable development and endogenous economic growth. The authors offer an approach to the development of a strategic management system. The approach is novel thanks to the integration of the concept of the industrial enterprise economic potential and modern management tools (Balanced Scorecard, Foresight, Benchmarking, Life-cycle Management, Value-Based Management, etc.). Special attention is paid to the strategic planning as the main link of the management system: the company’s strategy is logically designed and described; the vectors of foresight research and prospects of Balanced Scorecard are highlighted; balanced indicators are systematized by the key elements of the company’s economic potential; the methodology for calculating the partial and integral Balanced Scorecard indicators is clarified. The approach to the strategic management proposed in the paper and the presented set of methodological developments can be used in the practices of industrial companies, which is confirmed by the testing results at textile enterprises.

Green Economic Efficiency Evaluation Based on the GMM Model

This paper uses a panel data sample of 30 resource-based cities (hereinafter referred to as R-B cities) in China from 2009 to 2019, constructs the green economic efficiency level (hereinafter referred to as GEE) using the super-SBM model, incorporates the GEE value into the endogenous economic growth model, combines the difference equation and the level equation, and estimates the relationship between the green efficiency level and economic growth using the systematic GMM method. The study came to the following major conclusions: First, green development in Chinese resource-based cities is moderately high, and green economic efficiency varies by region, with a relatively low level of GEE in the central region and a relatively high level of GEE in the eastern and western regions. Second, on both static and dynamic dimensions, Chinese resource-based cities can be classified into seven types based on their level of green development. Third, the GEE of Chinese resource-based cities has a significant positive relationship with economic growth, with the effect of green economic efficiency on economic growth being stronger in the central and northeastern regions.

Application of regression function model based on panel data in bank resource allocation financial risk management

Abstract Based on the traditional form of the endogenous growth model, and for it to increase the micro-foundation that includes the homogeneous and representative bank resource allocation, this paper constructs an endogenous economic growth model that includes the investment structure of the residential sector and financial deepening. Using China’s prefecture-level data proves that due to the inherent difference between the central planner’s single equilibrium solution and the family’s decentralised equilibrium solution, when the residential sector’s preference for real estate investment causes the investment structure to deviate from the optimal level of society, the increase in the proportion of real estate investment The allocation efficiency of financial resources has a significant inhibitory effect and drags down the realisation of long-term potential economic growth. In the absence of a central planner in a market economy, increasing leverage may not mean financial deepening, but may reduce financial efficiency (FEt) and accumulate systemic financial risks.