Pattern Of Economic Growth Research Articles

Saving less in China facilitates global CO2 mitigation

Transforming China’s economic growth pattern from investment-driven to consumption-driven can significantly change global CO2 emissions. This study is the first to analyse the impacts of changes in China’s saving rates on global CO2 emissions both theoretically and empirically. Here, we show that the increase in the saving rates of Chinese regions has led to increments of global industrial CO2 emissions by 189 million tonnes (Mt) during 2007–2012. A 15-percentage-point decrease in the saving rate of China can lower global CO2 emissions by 186 Mt, or 0.7% of global industrial CO2 emissions. Greener consumption in China can lead to a further 14% reduction in global industrial CO2 emissions. In particular, decreasing the saving rate of Shandong has the most massive potential for global CO2 reductions, while that of Inner Mongolia has adverse effects. Removing economic frictions to allow the production system to fit China’s increased consumption can facilitate global CO2 mitigation.

Economic Structure Transformation and Low-Carbon Development in Energy-Rich Cities: The Case of the Contiguous Area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China

Energy-rich cities tend to rely on resource-based industries for economic growth, which leads to a great challenge for its low-carbon and sustainable economic development. The contiguous area of Shanxi and Shaanxi Provinces, and the Inner Mongolia Autonomous Region (SSIM) is one of the most important national energy bases in China. Its development pattern, dominated by the coal industry, has led to increasingly prominent structural problems along with difficult low-carbon transition. Taking energy-rich cities in the contiguous area of SSIM as examples, this study analyzes the main drivers of CO2 emissions and explores the role of economic structure transformation in carbon emission reduction during 2002–2012 based on structural decomposition analysis (SDA). The results show that CO2 emissions increase significantly with the coal industry expansion in energy-rich cities. Economic growth and structure are the main drivers of CO2 emission increments. An energy structure dominated by coal and improper product allocation structure can also cause CO2 emission increases. Energy consumption intensity is the main factor curbing CO2 emission growth in energy-rich cities. The decline of agriculture and services contributes to carbon emission reduction, while the expansion of mining and primary energy processing industries has far greater effects on CO2 emission growth. Finally, we propose that energy-rich cities must make more efforts to transform energy-driven economic growth patterns, cultivate new pillar industries by developing high-end manufacturing, improve energy efficiency through more investment in key technologies and the market-oriented reform of energy pricing and develop natural gas and renewable energy to accelerate low-carbon transition.

Population shrinkage and economic growth in Russian regions 1998–2012

AbstractThis paper analyses the relationship between demographic decline and economic development in Russian regions in the period 1998–2012, demonstrating how shrinking regions undertook different economic growth patterns. In some cases, population decline was associated with an effective restructuring of the regional economic system. Successful shrinking regions appear to have, at the beginning of the period, a higher endowment of private capital and a higher share of the young population than the other shrinking regions. In 2012, these differences were even broader, suggesting the potential occurrence of a vicious cycle for the unsuccessful shrinking regions, for which the process of depopulation did not probably stop here.

The Sustainable Development Goals, climate crisis and sustained injustices

In 2015, the UN adopted the 2030 Agenda and the Sustainable Development Goals (SDGs), a set of universal goals in key areas of action linked to sustainable development. The SDGs address not only highly relevant socioeconomic issues, but also pressing environmental challenges associated with the Anthropocene, such as climate change. The integration of a specific climate goal – SDG 13 – into the SDGs is paramount as climate change is a global and urgent threat compromising the realisation of all the SDGs. However, the SDGs’ focus on issues linked to the current economic growth pattern and development paradigm may prevent them from addressing the climate crisis and the inequalities and injustices associated with it. This paper attempts to establish the extent to which the SDGs promote progress towards achieving climate justice or if, on the contrary, they maintain the status-quo and continue to fuel the climate crisis while leaving millions behind.

Searching for Factors of Accelerated Economic Growth: The Case of Ireland and Turkey

Purpose: This study analyses the determinants of economic growth acceleration in two completely different sets of institutions provided by two example economies, using a modified threshold error correction model (TECM). Design/Methodology/Approach: The contribution is based on an extended (sequential) methodology related to a set of two-regime threshold error correction models (TECM) that helps to investigate determinants of economic growth in both long run and short run. The validation of the results were prepared using Hansen and Seo test. Supportive role of structural breaks analysis is emphasized. Findings: There exists a set of variables that determine accelerated economic growth patterns. In the export-oriented Irish economy with a stable set of institutions and well educated society the growth has been led by net exports. In the case of Turkey, periods of accelerated growth appeared in short time so the results are much diversified, taking both factors and periods of growth. Practical Implications: It is possible to indicate a diversity of the growth patterns as well as evaluate the economic policy corresponding to them. Originality/Value: The study offers an in-depth insight into econometric modelling of economic growth as well as the fluctuations around it.

Does Renewable Energy Consumption Successfully Promote the Green Transformation of China’s Industry?

The trade-off between economic growth and ecological improvement has always become an important and difficult issue for many countries, especially for developing countries. Due to a long-term extensive economic growth pattern, the regional resource allocation deviates from the optimal, especially the existence of energy misallocation, which hinders the maximization of economic output. Therefore, considering the characteristics and heterogeneity of resource endowments in different regions and increasing renewable energy consumption, that is, promoting energy transition, is it capable of sustainable development under China’s actual conditions? The exploration of the issue is a core step in the research of the impact of renewable energy on industrial green transformation. Based on the panel data of 30 regions in China from 2009 to 2016, this paper constructs a threshold model from the perspective of regional energy misallocation and empirically tests the nonlinear mechanism of renewable energy consumption to promote industrial green transformation. The results show that China’s energy allocation efficiency is low, there is a certain misallocation phenomenon, and the improvement effect in recent years is not satisfactory. Further, the relationship between renewable energy consumption and industrial green transformation is not a simple linear relationship, but a double threshold effect due to regional energy misallocation. In areas with severe energy misallocation, renewable energy consumption does not have a significant boost to industrial green transformation. Finally, this paper proposes the policy enlightenment of promoting industrial green transformation from the aspects of performance evaluation, market reform, and factor flow.

Path Dependence in Regional Structural Change: Implications for the EU Cohesion and Innovation Policy

The key purpose of this paper is to measure the similarity of regional economic fabrics based on their structure. We propose a new mapping of European regions based on structural proximity; the representation takes the shape of a network, which is also useful to define clusters of regions according to the similarity of their economic structures and, hence, in the endowment of productive competences. We show that there is a high persistence in the relative positioning of regions according to their economic structure and that this is markedly associated with patterns of economic growth and convergence. The spectrum of regional performance range from virtuous urban agglomerates characterized by the presence of advanced services, with enhanced institutional quality, endowed with efficient transport infrastructures and highly educated and productive workforce, to regions characterised by scarce service or industrial activity, sometimes with a cumbersome role of tourism-related business, with poor institutions and transport infrastructure and low endowments of human capital and productive workforce. To richer pools of productive competences are associated faster paces of economic growth. The findings of this paper suggest that place-based policies should be implemented to support territorial development in the short/medium term, but these policies can be effective for the long run growth only when they are meant to leverage on the regional pool of competences to trace trajectories of structural change.

Energy Consumption, Economic Growth, and Environmental Degradation in OECD Countries

The world is governed by the issues of environmental degradation, climate control, pollutant emissions and other such phenomena due to the increasing dilapidation of environmental resources. For a while now, the focus has been on the production of green technologies, clean energy solutions and the development of a sustainable module that will aid in the restoration and protection of the environment. In this scenario, the dependence on consumption patterns of energy, economic growth (EG), and environmental degradation (ED) have become the focus of many researchers and policymakers. The Organization for Economic Co-operation and Development (OECD) countries are understandably characterized as the fastest developing nations of the world. However, literature evaluating the influence of energy consumption (EC) and economic growth (EG) on environmental degradation has presented conflicting results. This study aims to solve this conflict by presenting a panel dataset comprised of 35 OECD between 2000–2014. The Generalized Method of Moments Panel Vector Autoregression (GMM-PVAR) has been used to estimate the impact and causal relationship between the variables. The results of the study indicate that EG and consumption patterns of energy are vital for the improvement of the environmental performance of the firms. In contrast to other empirical literature, this study finds that the economic development of the country or countries and the patterns of consumption have started to coagulate with set environmental performance parameters. Environmental policies, consumption patterns and plans for EG are all being aligned in OECD countries. The results of this study are robust, as different methods for the evaluation have been used.

An Intelligent Energy Management System using IOT

The energy demand is increased day by day. To consume energy in an efficient way is very important. Increasing economic growth and consumption patterns are leading to ever growing demand for energy. The system aims to develop an Energy Management System (EMS) based on the emerging technology, IOT. Here each electric appliance is connected to the center server. The center server controls all other nodes connected to it based on the current and temperature value measured.

Are Metropolitan Areas Primed for Success? A Prosperity Risk Index for Evaluating Economic Development Patterns.

Urban areas differ greatly in their exposure to economic change, their trajectory toward recovery and growth, and the extent to which development and equity are paired. Some of this differentiation can be explained by regional dynamics, policies, and migration flows that influence the composition of economic activity, land use, and population characteristics. Simultaneously, the fortunes of center cities are known to often correlate with metropolitan characteristics, yet the interaction of socio-spatial conditions with multi-level governance and development processes—particularly with respect to how prosperity is shared across municipal lines and is distributed among communities—is under-researched. In this article, we use a GIS-based and quantitative approach to characterize such patterns and evaluate regional differences among 117 mid-sized metropolitan areas in the Eastern US with a population between 250,000 and 2,500,000. Our analysis rests on initial GIS-based inquiries to define city, urbanized area, county, and core-based statistical area-level measures of municipal fragmentation, geographic sprawl, racial segregation, economic inequality, and overall poverty. These five characteristics are combined to propose a prosperity risk index for each region. Further, indicators of economic performance such as job and population growth are inverted to create an economic vulnerability index. An interaction model is run to determine relationships among the indices to highlight both the regional differences in these characteristics that became noticeably significant in the analysis and the linkages of spatial patterns of economic growth and social equity. Analyzing these multi-scalar regional dynamics illuminates the socio-spatial patterns that deserve attention in urban economic development theory and, subsequently, offers a framework for evaluating public policy and development practices. We likewise offer two comparisons of outliers as a means of illustrating potential directions urban areas can take toward economic development. These findings are valuable for local economic development practitioners who may be seeking further contextual/comparative information on urban regions, or for others interested in understanding the dynamics behind urban planning that may drive regional competitiveness and prosperity.

Trajectories to High Income: Growth Dynamics in Japan, the People’s Republic of China, and the Republic of Korea

We analyze and compare the patterns of economic growth and development in the Japan, the People’s Republic of China, and the Republic of Korea in the postwar period. The geographical proximity and cultural affinity between the three countries, as well as the key role of the development state in the economies, suggest that an analytical comparison would be a meaningful and valuable exercise. Furthermore, Japan and the Republic of Korea are two of the few economies that have jumped from middle income to high income in a short period and thus offer potentially valuable lessons for the PRC. We use Cobb–Douglas production functions to assess the long-run equilibrium relationships between per capita gross domestic product, capital, and labor by means of cointegrated vector autoregressive models. We show that such equilibrium relationships cannot be rejected for all three countries, while the evidence is stronger for the PRC and the Republic of Korea than for Japan. Our hypothesis tests show that the estimated Cobb–Douglas production functions display coefficients of capital and employment that sum up to 1 and broken linear trends that can be attributed to structural breaks and (changes in) total factor productivity growth. We observe a striking similarity between the experience in the Republic of Korea and the PRC, which gives some optimism that the PRC may be capable of graduating to high income, like the Republic of Korea.

Role of Political Instability in Trade Pattern and Economic Growth: A Case of Pakistan

Economic growth is based on the foreign investments and international trade based on stable and consistent policies. Stable political and economic policies attract the foreign investments and international trade. Political instability affect the foreign investment and economic growth. The role political instability has been tested on the pattern of international trade and economic growth. The results shows that terms of trade insignificant while trade restriction indication a significant impact on economic growth. Trade patterns indicates a significant relationship with economic growth. The results indicates that political instability affect the relation of trade pattern and economic growth adversely as moderating factor. It has been observed that political instability is quite high in case of Pakistan. Since last ten years political system of Pakistan is improving after the revival of democratic system and trade with neighboring and developed countries is improving and a positive signals has been observed in economic growth of Pakistan

FinTech and Sustainable Development: Evidence from China Based on P2P Data

In the current international context, the ways in which financial technology (FinTech) affects sustainable development need to be urgently identified. However, relevant studies are rare and there is no consensus on the optimal indicator system for sustainable development. Therefore, this study proposes an indicator system to evaluate sustainability and conducts in-depth analysis of the relationship between FinTech and sustainable development based on data of peer-to-peer platforms (P2P) in 31 Chinese provinces. The empirical results show the existence of a U-shaped relationship between FinTech and sustainable development, mainly determined by the pattern of extensive economic growth. Furthermore, heterogeneity analysis indicates that there are significant regional differences in its impact on sustainable development, being significant in China’s eastern and central regions and insignificant in the western region; moreover, the impact on the central region is significantly higher than that on the eastern region. Our research not only has strong practical significance but also contributes significantly to the literature on FinTech and sustainable development.

Typology and inequality between island clusters and development areas in Maluku Province

This study aims to analyze patterns of economic growth and island cluster inequality in Maluku Province during the period 2010-2016. The data in this study are secondary data using quantitative descriptive methods and analytical typology analysis tools and theil index. The results showed that the VIII-IX island cluster which was classified as advanced and fast growing but had a very high inequality compared to other island cluster groups was Tual City, Southeast Maluku Regency and Aru Islands Regency. The division of the Maluku region in the Klassen typology is based on the center of growth with the hinterland area. Southern Maluku as a development area is classified as developed and fast-growing where Tual City is a center of growth but has a very high inequality compared to Maluku in the northern region.

Pattern of Government Recurrent Expenditure and Economic Growth in Nigeria

The main objective of this study is to examine the effects of recurrent expenditure components; namely, Administration, Social and Community Services, Economic Services and Transfers, on economic growth in Nigeria. The VAR methodological framework is employed while the empirical data cover from 1981 to 2016. The results show that while GDP responded positively to a one standard deviation shock to recurrent expenditure on administration, it responded negatively to a one standard deviation shock to recurrent expenditure on both social community services and transfer. GDP has almost zero response to a one standard deviation shock to recurrent expenditure on economic services. The results further show that most of the GDP shock are due to own effect. Compared to other components of recurrent expenditure, the relative contribution of recurrent expenditure on transfer to GDP innovation is highest in the second period while the relative contribution of recurrent expenditure on administration is highest in the third and fourth periods. However, the Granger Causality test shows that recurrent expenditure components none has a causal impact on GDP both individually and collectively. Therefore, the Keynesian view that public expenditure is a veritable fiscal tool for promoting and enhancing economic growth is not supported. The policy implication of our findings is that Federal government can only achieve the desired growth in economic activities using fiscal policy if the recurrent expenditure component of public expenditure is reduced. Further, the proportion of recurrent expenditure that is allocated to economic services should be increased while the proportion that is allocated to bot social community services and transfer should be decreased.

Viewpoint: Cooperating in Africa’s sustainable structural transformation: policymaking capacity and the role of emerging economies

Most African countries today are pursuing one or both of the following policy agendas as they strive towards a sustainable transition: 1) a global normative agenda moving away from traditional patterns of economic growth and toward a greater emphasis on sustainable development (2030 Agenda for Sustainable Development), and 2) a regional context-dependent development policy agenda that entails the achievement of a more radical structural transformation (Agenda 2063). Having identified these two overlapping policy agendas, both of which are aimed at moving away from an exclusive focus on economic growth, this article explores these development viewpoints with particular focus on capacity building in policymaking (the non-financial aspect), and the need for these to be further supported by more aggressive global partnership efforts (the financial aspect). By doing so, we are able to examine some transformation experiences in Africa as well as policy options that envisage greater inclusiveness, equality and sustainability.

Determinants of cross-border mergers and acquisitions in the freight and logistics industry of South Africa

Orientation: The article reports on applied and practical research that focuses on the understanding of the motivation and actions of Multinational Enterprises in Africa as far as mergers and acquisitions (MAs) are concerned.Research purpose: This study examines developments in the freight and logistics industry through MAs in South Africa.Motivation for the study: It is necessary to gain a better understanding of MAs from a firm-level perspective in the South African context. Little research exists on the dynamics of MAs, and even less relating to the logistics industry that plays such a large role in trade in the region. This research adds substantial and significant original work to the scarce body of meaningful literature on foreign direct investment (FDI) in Africa.Research design, approach and method: This study used a case study approach employing structured interviews. The population was freight and logistics companies that were involved in MA activities in South Africa. Quantitative data and other information from various databases, published MA data and financial statements were analysed to obtain background views of the companies’ where after, three companies were eventually selected. Direct unstructured interviews were then conducted with the main decision makers and a qualitative thematic analysis of the companies’ responses. Related themes and patterns were identified through the frequency of occurrence, similarities, differences and general patterns observed. This method yielded the most insight into the processes and company dynamics involved.Main findings: International MAs in the freight and logistics industry provide companies with international scale and effectively link to international markets. Companies benefit from expanded market opportunities across national borders, which generate substantial revenues, geographical growth and business expansion. It renders synergy and additional competitive advantage.Practical/managerial implications: Theoretical and practical aspects of FDI, such as motives for market entry, ownership, location and entry barriers within the context of multinational enterprises, globally, were investigated. Little data exist on the freight and logistics industry in Africa and also on MAs, which presented limitations. Companies are inexperienced and need to involve more expertise in MA processes. The results also found that South African companies need to expand their cultural intelligence and negotiation skills, especially within a diverse cultural realm, before entering into MA deals with foreign companies.Contribution/value-add: Services are determinants of trade volumes and offer distributional effects and patterns of economic growth, development and FDI inflows. Little research exists on the dynamics of MAs in the freight and logistics industry, especially within the African context. This study also makes some contribution in that regard.

Simultaneous confidence bands for growth incidence curves in weighted sup-norm metrics

ABSTRACTThe so-called growth incidence curve (GIC) is a popular way to evaluate the distributional pattern of economic growth and pro-poorness of growth in development economics. The log-transformation of the the GIC is related to the sum of empirical quantile processes which allows for constructions of simultaneous confidence bands for the GIC. However, standard constructions of these bands tend to be too wide at the extreme points 0 and 1 because the estimator of the quantile function can be very volatile at the extreme points. In order to construct simultaneous confidence bands which are narrower at the ends, we consider the convergence of quantile processes with weight functions. In particular, we investigate the asymptotic convergence under specific weighted sup-norm metrics and compare different kinds of qualified weight functions. This implies simultaneous confidence bands that are narrower at the boundaries 0 and 1. We show in simulations that these bands have a more regular shape. Finally, we evaluate real data from Uganda with the improved confidence bands.

Spatiotemporal Dynamics of Ecological Total-Factor Energy Efficiency and Their Drivers in China at the Prefecture Level.

Improvement of ecological total-factor energy efficiency (ETFEE) is crucial for transformation of China’s economic growth pattern, energy conservation and emissions abatement. Here we combined the epsilon-based measure (EBM) and the Global Malmquist-Luenberger (GML) productivity index to evaluate ETFEE and ecological total-factor energy productivity (ETFEP) and its decompositions for 283 prefecture-level cities in China between 2003 and 2013. A spatial econometric model is used to investigate factors influencing ETFEE and ETFEP. Results indicated that ETFEE, ETFEP and corresponding trends differ significantly depending on whether environmental constraints are considered. No convergence trend was found in ETFEE between prefecture-level cities. Technical progress plays the largest role in increasing ETFEP growth. Pure efficiency change and scale efficiency change, however, are the main hindering factors. Boosting cumulative technological progress, cumulative scale efficiency growth rate and cumulative pure efficiency growth rate are important means of increasing ETFEP. I also found that areas with high levels of economic development do not completely overlap with areas of high ETFEE. Surprisingly, the fiscal expenditure on scientific undertakings and technological spillover effects from foreign direct investment (FDI) have not substantially increased ETFEE. Whereas increased industrialization hinders the improvement of ETFEE. Furthermore, reducing per capita energy consumption help boost ETFEE. In addition, endowment advantages of factors of production have a positive overall effect on improving ETFEE. Lastly, important policy implications are inferred.

FDI in Africa: potential implications of Brexit on South Africa’s financial sector

Purpose This paper aims to investigate whether any potential weakening of the UK’s financial sector, as a result of Brexit, will have a negative impact on South Africa’s financial sector given the close ties between the countries’ financial systems. This paper seeks to also argue that Brexit may provide an opportunity for South Africa to pursue new trade linkages with other countries in Africa and Asia. Design/methodology/approach This paper is a review of relevant sources from foreign direct investment (FDI) and international economic literature. It analyses comparative and cross-disciplinary research and examines the current trends in the legal and economic climate in South Africa – within the context of economic growth and FDI inflows patterns. Findings This paper finds that Brexit does not pose a systemic risk to South Africa’s financial system. This paper also finds that South Africa’s recent policy changes may serve as obstacles to South Africa attracting new FDI. Research limitations/implications The implications of Brexit on the investment in the economy of African countries are under-researched, and this paper provides an additional contribution to the euro-centric discussion of the ramifications of Brexit on the economic developments in the financial sector after Britain’s exit. Originality/value This paper argues for an enhanced FDI system for South Africa and its policy proposals can be used to further the independence of African countries from European investment streams.