Economic Growth Policy Research Articles

Youth, Quechua and neoliberalism in contemporary Perú

AbstractFramed within a critical and ethnographic approach to language policy, my study addresses the phenomenon of language commodification and the construction of neoliberal subjectivities in contemporary Perú. Specifically, I address a project of Quechua teaching in the city of Lima called Quechua para Todos, or Quechua for All, promoted by young Quechua activists developing interventions to change historically established imaginaries. Taking this project as a starting point, I analyze what is behind the extremely high demand these Quechua courses are having among youth in the capital city, where Quechua has been historically silenced. My argument is that a significant group of the young students from the courses have begun to integrate the Quechua language to the figure of the entrepreneurial subject for whom both personal and national branding is central. While speaking Quechua has historically indexed ‘indianness’ linked to backwardness, rurality, ancestrality and ignorance, it is now being associated with other linguistic and non-linguistic signs (such as being a professional and knowing English) to enregister a multicultural citizenship within a context of neoliberal economic growth and state policies of cultural branding. Although the demand to study Quechua in Lima is shifting the meanings and values of Quechua, at least within a domain of speakers, it may also be erasing ongoing processes of racialization of indigenous peoples in Peruvian society and fundamental gaps in access to education and economic resources.

Analysis of the Impact of Economic Policy Uncertainty on Environmental Sustainability in Developed and Developing Economies

The literature on the impact of policy uncertainty on climate change has grown rapidly in recent years as policymakers and researchers have become increasingly concerned about the potential adverse effects of policy uncertainty on environmental sustainability. This study aims to investigate the impact of economic policy uncertainty (EPU), GDP per capita, renewable energy consumption (REC), and foreign direct investment (FDI) on environmental sustainability from the perspectives of the environmental Kuznets curve (EKC) and pollution halo/haven hypotheses. The research employs panel data analysis techniques, including panel corrected standard errors (PCSE) and generalized least squares (GLS), to analyze the data from a panel of 19 developed and developing countries from 2001 to 2019. The results reveal that EPU, GDP per capita, REC, and FDI significantly impact GHG emissions, contributing to climate change. The results of the study confirm a U-shaped EKC and pollution haven hypothesis in the selected economies. The findings of this study provide valuable insights for policymakers, as they highlight the need to consider the interplay between economic growth, foreign investment, and environmental policy in addressing climate change. The results also suggest that reducing policy uncertainty and promoting sustainable economic growth can mitigate the effects of climate change and ensure environmental sustainability.

How can visual communications aid in renewable energy development?

The development of information and communication technology (ICT), a subset of many functions such as visual communication, can positively affect renewable energy development in different countries. In this paper, focusing on China as the world's largest emitter of greenhouse gases, the relationship between visual communication and the deployment of renewable energy is investigated using the dynamic ARDL (autoregressive distributed lag) method and annual data from 1990 to 2021. Regarding the empirical estimations, a 1% increase in green finance market size leads to an improvement of sustainable energy deployment by 0.01%. In addition, the ICT development index has a significant and positive effect only in the long term. Furthermore, there is evidence of uni-directional causality from ICT to renewable energy deployment in the medium and long term. The recommended practical policies by the research are developing green financing tools, green economic growth policies, and creating virtual portals for financial interactions.

Towards Inclusive Growth: Perspective of Regional Spatial Correlation Network in China

China’s economic growth has been impressive, but the persistent income inequality poses a threat to its sustainability. To address this issue, we use the complex network analysis method for the first time to explore the structural characteristics of the regional spatial correlation network of inclusive growth (RSCN) of 26 provinces (autonomous regions and municipalities) in China from 1999 to 2020. We use exponential random graph models to explore the internal mechanisms and driving factors that shape this network. Our results show that inclusive growth dependencies between regions are widespread and increasing. Beijing, Shanghai, Jiangsu, and Zhejiang serve as benchmark regions, while provinces in the middle reach of the Yangtze River play an increasingly important bridging role. The northwestern region mainly acts as a receiving region. Our study identifies transitivity, reciprocity, and high interaction tendency as critical microstructures. Furthermore, we find that infrastructure, digital economy development, financial marketization, fiscal expenditure linkages, and inter-provincial trade linkages are crucial factors in shaping network relationships. Our study provides theoretical support for the development of China’s regional coordinated development strategy and sustainable economic growth policies.

Determinants of the CO2 emissions, economic growth, and ecological footprint in Pakistan: asymmetric and symmetric role of agricultural and financial inclusion.

In this study, the effects of financial inclusion (FI), agricultural innovation (AI), trade (TR), and forest rent (FR) on carbon dioxide emissions (CO2), economic growth (Y), and ecological footprint (EFP) for Pakistan from 1970 to 2017 are examined using symmetric and asymmetric cointegration approaches. These links are investigated using linear and non-linear autoregressive distributive lag (NARDL) techniques. In contrast to the asymmetry results, the symmetric results revealed no cointegration among the variables over the long run. Moreover, asymmetry results from the Y-model indicated that a positive shock in AI significantly affects Y over the long run while raising it over the short term. Furthermore, CO2 rises in the wake of positive shocks like AI, Y, and FR but falls in the wake of adverse shocks. A negative shock to FI raises CO2 temporarily, whereas a negative shock to FR causes CO2 emissions to fall over time. According to the EFP-model, long-term EFP is decreased by both positive shocks to AI and adverse shocks to FR with one-period lags. On the other hand, positive shocks to FI and FR cause the short-term EFP to rise. In addition to a bidirectional causal relationship between Y, EFP, and FI, we found a one-way causative relationship between Y, FR, AI, CO2, and EFP. The FMOLS estimator also supports NARDL estimations. The key recommendations to help Pakistan keep its environment and economy are to enhance green mechanization in agriculture, allocate adequate research and development funds, and initiate integrated environmental and economic growth policies by relevant institutions.

Estimation of causality in economic growth and expansionary policies using uplift modeling

Estimation of causality in economic growth and expansionary policies using uplift modeling

The Impact Of Fiscal Policy On Economic Growth

The relationship between fiscal policy and economic growth has attracted a great deal of attention in recent years. The growth experience of several countries during the last decades has generated a growing strand of theoretical and empirical literature trying to explain these events. Although one could argue that economic growth and fiscal policy influence each other. The aim of this paper is to review the research work conducted on fiscal policies and economic growth, noting that there are three tools of fiscal policy; the first type is government expenditure, the second type is taxation, and the third type is debts. In addition, according to previous research, the relationship between fiscal policy and economic growth is not clear and consistent, where in some cases a positive relationship, while in others it may be a negative relationship. In this paper, we will discuss the concept of fiscal policies, economic growth, and the relationship between those two variables through some of the previous research.

Comment on “Japan's Higher Education Policies under Global Challenges”

Comment on “Japan's Higher Education Policies under Global Challenges”

Reflections on Climate Finance in India and the Way Forward

Climate Change has acquired centre stage in all business and economic decisions globally after numerous studies have warned of its catastrophic impacts on humankind. The article is a commentary on the state of climate finance around the world and the key issues in India. It draws the latest data from credible sources to form the narrative. This analysis reflects on recent developments and trends in climate or green finance across the world as well as its impact on India. It aims at finding possible solutions to address the impediments in boosting the prospects of a vibrant green finance landscape. ESG finance has gained momentum around the world due to policy support, investor enthusiasm and innovative funding options as economic growth policies are being integrated with environmental sustainability. However, the pie is still small and a lot needs to be done to catapult it into mainstream business finance. The article also includes recommendations for rejuvenating the green finance landscape so that the market can reach its full potential for all stakeholders and help India fulfil its international commitments to reduce greenhouse gas emissions. JEL Classification: E44, E66, G1

The nexus between asymmetric financial inclusion and economic growth: Evidence from the top 10 financially inclusive economies

Financial inclusion is an important component of financial development because it provides low-cost financial services to people and, hence, fosters economic growth. This research assesses the asymmetric relation between financial inclusion and economic growth in the top ten financially inclusive countries. Previous research employs panel data approaches, yielding standard results on the link between financial inclusion and economic growth, even though not all economies indicate such a correlation individually. The current study, by contrast, employs a unique approach, quantile-on-quantile, which allows us to explore time-series dependency in each country independently to produce worldwide yet nation-specific knowledge about the interaction between the variables. The results suggest that financial inclusion boosts economic growth at different quantiles in all countries. Furthermore, the degree of asymmetry in the variables varies by country, highlighting the need for governments to pay close attention when they adopt financial inclusion and economic growth policies.

Causality analysis of the impacts of petroleum use, economic growth, and technological innovation on carbon emissions in Bangladesh

Bangladesh has traditionally relied on fossil fuels for meeting its energy demand whereby this South Asian nation has not been able to safeguard its environment from greenhouse gas emission-related adversities. Moreover, by ratifying several international environmental agreements, especially the Paris Accord and the Sustainable Development Goals, the government of Bangladesh has expressed its solidarity in abating greenhouse gas emissions through the deployment of relevant environmental policies. Hence, this study assesses the impacts of petroleum consumption, economic growth, and technological innovation on carbon emissions in Bangladesh using quarterly frequency data from 1972Q1 to 2020Q4. Overall, apart from confirming the cointegrating relationships among the variables, the regression findings reveal that higher petroleum consumption and economic growth stimulate environmental degradation by boosting carbon dioxide emissions while technological innovation reinstates environmental well-being by curbing the emission figures. Additionally, technological innovation is seen to moderate the relationship between petroleum consumption and carbon emissions by jointly reducing the emission with petroleum consumption. Lastly, the causality analysis shows that petroleum consumption, economic growth, and technological innovation causally influence carbon emissions. Based on these key findings, it is recommended that Bangladesh mitigates its petroleum dependency, blends environmental objectives into economic growth policies, and develops its technological stock.

The Environmental Kuznets Curve Hypothesis for Colombia: Impact of Economic Development on Greenhouse Gas Emissions and Ecological Footprint

Climate change has become a significant concern for developing countries given the risk that it poses to energy and food independence, and to general productivity. Despite having an energy system with low carbon intensity when compared to other Latin American countries, Colombia is already facing climate change impacts and requires urgent efforts to mitigate them. As a developing country, the challenge is bigger as policies for economic growth should be in line with the global commitment of reducing greenhouse gas emissions. With the aim of contributing to the design of climate policies by using data driven methodologies and scientific evidence, this study assesses the impact of economic development on the environment by examining the validity of the environmental Kuznets curve hypothesis for Colombia. Statistically validated and stable autoregressive distributed lag models are estimated for three different environmental indicators: carbon dioxide emissions, methane emissions, and the ecological footprint. Moreover, the effects of other variables such as urbanization, foreign direct investment, the value added by the agricultural and industrial sectors, and energy use are analyzed with dynamic simulations. To the best of our knowledge, there are no reports of EKC estimation using these variables in statistically validated models for Colombia; thus, this paper adds to the scientific evidence of the EKC hypothesis in developing countries. Empirical evidence supports a long-run equilibrium relationship among investigated variables and the existence of an inverted U-shaped EKC relationship between gross domestic product (GDP) and methane emissions, and GDP and the ecological footprint. The results of this paper show that shifting to renewable energy sources and leveraging the use of cleaner technologies in agricultural and industrial sectors are key factors for economic growth without harming the environment, which has important scientific value because of its evidence-based approach for public policy making in developing countries, particularly Colombia.

Are economic growth and environmental pollution a dilemma?

For the first time, this study introduces-proposes using the Armey curve hypothesis (ACH) for testing the environmental Kuznets curve hypothesis (EKCH) in the relevant literature. The rationale for this new proposed methodology is that both hypotheses are expected to have similar inverted U-shaped curves. Hence, we combine the aforementioned hypotheses to obtain a single composite model. This single model may allow us to calculate a maximum (optimum) level of government expenditures that will increase or decrease CO2 emissions for USMCA (the USA-Mexico-Canada Agreement) countries. To this end, our study employs an augmented mean group (AMG) estimator. The results demonstrate that the EKCH is verified by way of the AC model only for Mexico. Additionally, with the advantage of this approach, we calculated the optimal government spending level, which will increase both per capita real GDP (RGDPPC) and CO2 emissions in this country by around 26.4% of RGDPPC. This level of spending will be a kind of threshold point for the Mexican government's policymakers. Hence, they will know that if they continue to spend more than this level, both the RGDPPC and CO2 emissions will decrease, implying either a lower RGDPPC or a cleaner environment. The primary purpose of the proposed methodology in this study is to reveal the possible effects of the government's economic growth-oriented increased public expenditures on the environment in a single composite model. In other words, the relationship between economic growth and the environment is approached from the perspective of public spending, and it is reminded that governments should have harmonious and sustainable public spending policies for both economic growth and a cleaner environment.

Implications of the energy transition for government revenues, energy imports and employment: The case of electric vehicles in India

Whereas the environmental benefits of transitioning away from fossil fuels are becoming indisputable, the implications for government revenues, employment, balance of trade, and employment appear less clear. Using an accounting-like framework, we analyze the potential near to medium-term implications of electric vehicles displacing internal combustion engine (ICE) vehicles. Total cost of ownership (TCO), imports, government revenues, employment and greenhouse gas (GHG) emissions are each lower with EVs under different market and policy scenarios considered. An exception is a steep fall in oil prices (say by 50% from current levels), which increases net energy imports when battery cells are imported. Targeting high usage vehicles for EV adoption amplifies reduction in TCO, GHG emissions and imports but also leads to greater reduction in tax revenues. Furthermore, foregone tax revenues from avoided fossil fuel consumption is several times greater than the subsidies to EVs in the form of preferential tax rates. On a per vehicle basis, each fossil fuel vehicle generates over six-fold greater taxes over its life relative to an EV. Whereas economic growth and public policy can mitigate adverse impacts on government revenues and employment, simultaneously reducing total emissions as well will, if history is a guide, be more challenging.

Economic growth, foreign investment, tourism, and electricity production as determinants of environmental quality: empirical evidence from GCC region.

Each economic factor generates both positive and negative externalities regarding environmental quality. Owing to this, the current study aims to explore the impacts of various economic variables on the environmental quality of the Gulf Cooperation Council (GCC) region. By sampling the 24years (1996-2019) financial statistics of six GCC region countries, we investigate the impact of economic growth, foreign investment, trade volume, tourism investment and revenue, and electricity production on CO2 emissions. The empirical analysis is based upon dynamic least square and fully modified ordinary least square model due to the existence of cointegration. Following the results, economic growth, foreign investment, tourism investment, electricity production, and population density have a positive impact, while trade volume and banking development have a negative impact on the volume of CO2 emissions. The results support the pollution haven hypothesis in the GCC region and have many policies for environmental economists regarding the protection of the natural environment in the long run. In parallel to economic growth, the policy officials from the GCC region should focus on environmental sustainability. They should exert more effort for developing sustainable economic growth policies. The current analysis offers new insights regarding the dynamic role of various economic factors in establishing the CO2 emission volume in the GCC region.

The Maastricht Treaty 1992: Taking stock of the past and looking at future perspectives

Aim: The article contains a personal view of the history as well as the future of the European Union‟s (EU) health policy. Describing and evaluating the developments on the road from the Treaty of Maastricht to a new Europe it asks and tries to answer the question if weespecially the EU Member States – really know where we want to go to and how to get there. Method: Based on personal experiences, countless EU documents, as well as scientific publications the paper shows the impact EU Health policy has had in the Member States in the past. Historical development: Considering that the legal basis for health has been and remains to be very weak limiting EU action to support, coordinate, and supplement actions of Member States – which, as a rule, still consider health to be first and foremost a national responsibility and therefore do not want interference from international institutions – the amount and content of EU health activities in the past years has been quite remarkable. Health policy may not be an EU priority and as a crosscutting policy sector it is dominated by many other EUpolicies. However, especially the “hard law” regulations and directives of the Internal Market give EU the power and competence to achieve health objectives. The size of this growing influence is shown by direct interventions, made possible by the legal acts to improve economic policy coordination. Health and health care in this context are considered as a key policy area for economic growth and EU macroeconomic policy. On the other hand, there isrisk that such regulations affecting health policy and population health may be dominated too much by economic institutions and their interests, whereas health authorities play onlyminor role to date. Conclusion: For the future of EU health policy it is essential that its position is considerably strengthened, in order to assure that health interests of the EU population are sufficiently safeguarded.

COOPERATIVE LINKS BETWEEN BUSINESSES IN THE CONTEXT OF LOCAL SYSTEM RESILIENCE. ACASE STUDY OF POLANDS PERIPHERAL REGIONS

his study investigates the extent and nature of cooperative links between businesses in the analysed administrative units (communes) in peripheral regions in terms of their effect on strengthening the resilience of local economy. Empirical research was carried out in 2018 in three peripheral regions of Poland on a sample of 240 entrepreneurs. Entrepreneurs participated in creating local (commune-level) supply chains while reporting connections with suppliers outside of local systems. Businesses analysed in this study played a key role in enhancing the diversity of local (commune-level) goods and services markets while time taking into account their customers requirements. Local cooperation promoted strengthening of the competitive edge of cooperating businesses, becoming a local resilience factor. The characteristics of cooperative links presented in the study revealed that the benefits of local cooperation were appreciated more often in the group of businesses with inferior conditions for running and growing a business. Local economic growth policies in peripheral regions should take into account the assumptions arising from the smart village concept. A vital component of these policies in the context of fostering local innovativeness is the focus on the possibility of stimulating cooperation processes within local business sectors. Such focus of local policies may be seen as aimed at enhancing the resilience of local socio-economic systems.

The role of government spending within the environmental Kuznets curve framework: evidence from G7 countries.

This study assesses the role of government spending on environmental sustainability based on a framework that combines the environmental Kuznets curve (EKC) hypothesis with the Armey curve hypothesis. Specifically, the inverted U-shaped relationships between carbon (CO2) emissions and economic growth (EKC hypothesis) and between government spending and economic growth (Armey curve hypothesis) are analyzed using a composite EKC model tested for cross-sectional dependence and heterogeneity, panel unit root, panel co-integration, and the augmented mean group estimation. In so doing, this study pursues a potential transmission mechanism leading from government spending to CO2 emissions through the growth channel and presents a novel way to develop a better understanding of how economic growth policy and energy policy can be synchronized. Empirical results show that economic growth acts as a transmitter between government spending and CO2 emissions in the USA, UK, and Canada. However, the composite EKC hypotehesis is confirmed only for the USA and Canada, where the optimal level of government spending that maximizes CO2 emissions is 29.87% and 29.22% of GDP, respectively. In contrast, the optimal level of government spending equivalent to 28.30% of GDP minimizes CO2 emissions in the UK. The key policy implication is that governments can achieve sustainable economic growth by setting standards for their spending levels.

Can financial globalization and good governance help turning emerging economies carbonneutral? Evidence from members of the BRICS-T.

Since turning carbon neutral is regarded as a major macroeconomic agenda worldwide, this study examines whether financial globalization and good governance can help Brazil, Russia, India, China, South Africa, and Turkey in achieving carbon neutrality. Considering the period of analysis from 2000 to 2020 and utilizing robust econometric methods, it is observed that the environmental consequences vary across different components of financial globalization. In particular, the results validate the pollution haven hypothesis by confirming the carbon emission-boosting effect of de facto financial globalization indicators. In contrast, the pollution halo effect hypothesis is verified by the finding of the carbon emission-abating effect of de jure financial globalization indicators. Besides, promoting good governance is evidenced to impose carbon emission-mitigating impact in the long-run. The findings also authenticate the existence of the Environmental Kuznets Curve (EKC)hypothesis for the emerging countries of concern. Finally, for both the short and long runs, it is found that the non-renewable to renewable energy transition contributes to lower discharges of carbon dioxide, while urbanization results in the amplification of thecarbon emissionfigures. Considering these critically important findings, it is necessary for these countries to impose restrictions on the influx of unclean foreign directinvestment, facilitate and ease the investment process for foreign investors for investing in environment-friendly projects, promote good governance, and adopt green economic growth and sustainable urbanization policies by developing their respective renewable energy sectors.

The impact of economic growth and fiscal policy on poverty rate in Uzbekistan: application of neutrosophic theory and time series approaches

The aim of this paper is to analyze how economic growth and fiscal policy impact on poverty rate in Uzbekistan. To reach this aim neutrosophic-AHP method was applied together with two time series models, namely Autoregressive Distributed Lags (ARDL) and Vector Autoregression (VAR) models. The statistical data of Uzbekistan over the period of 2000-2021 was used. Neutrosophic-AHP served as a basis for time series analysis. In accordance with AIC and BIC criteria, VAR was chosen as the most adequate model. Results of VAR model showed that a poverty rate has a delay effect on two years, when the increase of the second lag of poverty difference by one unit also increased current poverty difference by 0.501 units. Also, it was revealed that economic growth affects poverty adversely with delay in one lag, whereas taxes – with two lags. Interesting situation occurred with government expenditures, which impacted negatively on poverty after a one-year lag, but positively after two lags.