Economic Growth Policy Research Articles

A Nexus Among Technology Input, Research Activity, Innovation, and Economic Growth: A vis-à-vis Analysis between Asia and Europe

This study attempts to analyze the influence of technological infrastructure development and the spill-over effect of dynamic growth of technological innovation on the Asian and European economies. Compared to European countries, the economic infrastructure of Asian countries has transformed significantly during the last three decades. Technological progress and higher growth of available engineers and researchers have become pivotal endogenous determinants in the aggregate production function and eventually became the key drivers of economic growth. Compared to European countries, rapid investment in technology import and a higher number of technologically competent available workforce galvanized uplifted and speedy productivity rates, causing positive economic growth in the Asian economy. The interrelation between technological progress and economic growth is summarized and analyzed by using quantitative methods. The paper stu­dies the nexus between technological progress, the availability of engineers and researchers, and economic growth by applying the dynamic Generalised Method of Moments (GMM) method to the available quantitative data (2013-2017) of chosen Asian and European countries. The econometric results show a significant effect of technological progress and innovation on economic growth. The empirical insight is of particular interest to policymakers as it helps to enhance internal and external technology and innovation development policies for sustainable economic growth in Asian and European countries.

Monetary Policy For Economic Growth In Russia: Accumulative Slowing Effect

The study is devoted to assessing the impact of monetary policy on economic growth in Russia in 2000-2020, with a separate analysis of the main directions of monetary policy in 2022, formulated with a perspective up to 2025. The purpose is to demonstrate the inhibitory effect of monetary policy, as well as to identify the conceptual contradictions embedded in the main legal documents. The methodology is based on the theory of economic growth and economic policy, empirical-statistical and regression analysis. The application of the methodology allows us to come to the conclusion that over the period under study, monetary policy aimed at reducing inflation, while achieving this goal, in general, contributed to the slowdown of economic growth in Russia, in no way ensuring balanced and sustainable growth. Thus, relatively low price dynamics was not a condition for sustainable growth. Monetary policy in Russia in 2000-2022 was characterized by a negative effect, that is, the elimination of the sensitivity of the main macroeconomic development goals to monetary policy instruments. This blocked new growth factors. The way out is to change the basic principles and postulates of monetary policy in Russia.

Trade liberalization, institutions, and economic growthin Malawi

The study provides an empirical assessment of how institutions and trade liberalization affect Malawi’s economicexpansion. It tackles the absence of empirical research into how institutions affect economic growth and howtrade liberalization policy affects institutions’ influence on growth (interaction effect). The study also seeks tofind out if economic growth, however, affects institutions as theories differ on causality. The study uses a timeseries analysis and autoregressive distribution lag (ARDL) technique to obtain short-run and long-run results. Thestudy was conducted from 1988, the official inception year of trade liberalization in Malawi, to 2014. The empiricalresults show that political and economic institutions, as well as trade liberalization, affect Malawi’s economicgrowth in both the short term and the long term. Trade liberalization and political institutions negatively affecteconomic growth in the short run and long run, whereas economic institutions positively affect economic growthin the short run and long run. The findings also show that when strong economic institutions rather than strongpolitical institutions are present, the effect of trade liberalization on economic development is more prominent(positive). Finally, the study also finds that it is institutions that affect economic growth in Malawi and not the otherway around.

A Comprehensive Study into the Dynamic of Inflation and Development for Informed Policy in India

Inflation and development are pivotal economic factors that profoundly influence the socio-economic landscape of any country, particularly in the case of emerging economies like India. Understanding the dynamics between inflation and development is crucial for formulating informed policy decisions that foster sustainable growth, stability, and prosperity. This research paper aims to conduct a comprehensive study into the interplay between inflation and development in India to provide insights for policymaking. The study employs a multi-dimensional approach, examining various facets of inflation and development dynamics. Firstly, it analyzes the historical trends and patterns of inflation and development indicators in India over a specified period. Secondly, it investigates the causal relationships and transmission mechanisms between inflation and development, considering factors such as economic growth, income distribution, and monetary policy effectiveness. Furthermore, the research delves into the implications of inflation on different sectors of the economy, including agriculture, industry, and services, and assesses its impact on poverty alleviation, income inequality, and overall welfare. Additionally, it explores the role of government policies, institutional frameworks, and external factors in shaping the inflation-development nexus in India. By synthesizing empirical evidence, theoretical frameworks, and policy perspectives, this study aims to provide valuable insights for policymakers, economists, and stakeholders seeking to address the challenges posed by inflation while advancing the developmental agenda in India. The findings and recommendations derived from this research contribute to the discourse on informed policymaking and sustainable economic development in the context of a dynamic and evolving global economy.

МОДЕЛИ ИНДУСТРИАЛИЗАЦИИ ПРИ НАКОПИТЕЛЬНОМ ЭФФЕКТЕ ЭКОНОМИЧЕСКОЙ ПОЛИТИКИ, ПРОВОДИМОЙ В РОССИИ

In the pre-sanctions period in the development of the Russian economy, the task of its industrialization caused scientific and political discussions. However, the issue of organizing the growth of a new quality, open economic wars and sanctions only increased its relevance. The purpose of the study is to typify the models of industrialization of the Russian economy that would be consistent with the general task of stimulating economic growth, taking into account the cumulative effect of the ongoing economic policy, which manifests itself not only at the macroeconomic level, but also in the implementation of sectoral government measures. The task was also a theoretical substantiation of the cumulative effect of state policy on development goals. The research methodology is based on the theory of economic growth and economic policy, the author’s theory of economic system restructuring; it involves the use of econometric, taxonomic, comparative empirical analysis. The general result of the study is that, firstly, the introduction of a concept of various options for the cumulative effect and the strength of economic policy instruments; secondly, the confirmation of technological stagnation in the Russian economy, at least in civil industries, what is requiring active industrialization, reduced to technological re-equipment; thirdly, obtaining conditions for assessing the growth of the economy during its industrialization, which is reduced to the growth of the sector of means of production, which creates them for its own functioning and ensuring other types of activity. The model of industrialization as a restructuring is also shown, acceptable deindustrialization and passive industrialization are highlighted depending on the dynamics of the consumer sector. The ambiguity of the choice of the industrialization model at the theoretical level of analysis is confirmed, what provides a difficult choice when developing an appropriate policy, when it is necessary to take into account the cumulative effect. Thus, the perspective of the study is the refinement of specific instruments of industrial policy by industry with the identification of their current and potential force of use, in terms of achieving the goal of industrialization and economic growth.

ANALYSIS OF THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH FROM A FINANCIAL DEVELOPMENT PERSPECTIVE: THE CASE OF TURKIC STATES

Aim: This study aims to examine the economic growth processes and the role of foreign direct investments in economic development in Turkic states located in the Central Asia and Caucasus region, such as Turkey, Turkmenistan, Azerbaijan, Tajikistan, Kazakhstan, Uzbekistan, and Kyrgyzstan. Method: Annual data for the period 2003-2022 were analyzed using the panel data method, focusing on the variables of GDP and FDI. Model selection was conducted using the Limited F-Test, Likelihood Ratio Test, and the Hausman Test. Issues such as changing variances, autocorrelation, and inter-unit correlation were addressed during the analysis. The model was estimated with robust standard errors. Results: The analysis revealed that FDI has a positive and significant impact on economic growth. Additionally, the analysis showed that the GDP of Kazakhstan and Turkey is higher than that of other countries in the region. Conclusion: It is evident that Kazakhstan and Turkey stand out as economically dominant countries in the region, possessing stronger economies compared to others. These two countries have more successful economic growth and investment attraction policies compared to the rest. This study is important in understanding the economic growth processes of Turkic states in the Central Asia and Caucasus region and highlighting the role of foreign direct investments in economic development. The findings can provide guidance for the formulation of economic policies and the development of strategies to attract investments in these countries. Therefore, it is considered that similar analyses for other countries and increased regional cooperation and investments could be based on these findings.

Analysis of Wamz’s Economic Growth and Monetary Policy Using the Markov Switching Approach

This study investigates the impact of monetary policy shocks in two regimes of the business cycles (contractionary and expansion regimes) in 4 countries in the West African monetary zone (WAMZ). It employs the Markov switching model, using quarterly data for the period 1980Q1 to 2020Q4. Our findings show that the countries have common business cycles. In addition, the study offered enough evidence that the significant effects of the monetary instruments are significantly more potent in contractionary than expansionary regimes. Furthermore, on the aggregate, the zone appears to have an average business cycle ranging from 9.8 to 32.3 quarters, varying from country to country and comparatively shorter than the industrial countries. Hence, the designing of policies by the monetary authorities in this region should be tailored to shorten the duration of the contractionary period and must be meticulously formulated to avert the negative consequences of strict contractionary policy and ditto to expansionary policy.

AN EMPRICAL LITERATURE REVIEW ON FINNACIAL INCLUSION

The review of literature gives an outline of the study's main topics. An examination of the available literature is expected in order to determine the progress achieved in the subject area and the gaps that the researcher must fill. So far, a vast number of researches on financial inclusive growth have yielded useful insights and policy recommendations. Despite the fact that some of the researches are extensive, there are still significant gaps. Many issues concerning unbanked people's access to finance, credit, and resources have not been fully investigated or targeted. While the academics' results, analytical methodology, and policy recommendations are noteworthy, the current study is a diagnostic attempt to determine the state, pattern, and prospects of financial inclusive growth. As a result, the present paper seeks to offer a quick overview of the research on what methodologies are necessary to include the unbanked population at both the international and national levels. Theoretical analyses of economic growth, economic disparities, and the relevance of human capital for inclusive growth policies give a sound foundation for recognising the importance of a new route of economic growth policies to maintain nations. The nature, scope, and effects of financial exclusion/inclusion are presented in the empirical reviews. Financial innovations are also discussed in the context of Financial Inclusion in the empirical reviews.

FROM ABEYANCE TO A ‘STRONG’ SOFT POWER: THE PROGRESSION OF INDIA’S CULTURAL SUBTLETY

The study of power has been one of the main features of global politics. It is said that sometimes in the current era, states win the wars by telling a better story instead of the state who has power and can prevail in a battleground. Though India has constantly had several soft power tactics, they had limited success as they were not combined with hard power such as a strong army and developed defense skills, particularly nuclear ability. Nevertheless, the previous decade was an important turning point that showed India’s growing hard power, driven by strong economic growth and vigorous maritime policies, which reinforced its soft power projection. Soft power has come to be one of the foundation stones of the current Indian Prime minister Narendra Modi Doctrine and is an important theme in most of his state visits. This paper analyzes the different soft power components such as civilization and ancient heritage (Buddhism, yoga, Ayurveda, Sanskrit, democracy, and Bollywood used by the Indian governments. Soft power tools have raised importance, mainly as concerns culture and values, which mixed with peaceful policies made for a truly great opportunity of using soft power. The study evaluates India’s soft power assets and liabilities, thus presenting how the state has been trying its best to make better use of its potential to realize the state’s interests. Hence, the research has largely analyzed and described numerous ways in which all over the world states have resorted their selves to soft power in the face of interdependent world order to garner influence and for the attainment of foreign policy objectives which all depend upon state resources that what they have and side by side abilities to mobilize. Keywords: India’s soft power, Hindutva, Narendra Modi, Diplomacy

Effect of village funds and other variables on economic growth of Central Java Province 2015–2018

The Economic growth of Central Java Province from 2015 to 2018 experienced a slowdown compared to other provinces in Java. One of the main focuses on improving the economy is fiscal decentralization which is manifested in the form of village funds. This is in line with one of nine development priorities for the next five years agendas, or so- called Nawacita, namely to develop Indonesia from the periphery by strengthening regions and villages within the framework of a unitary state. The village funds data from the Ministry of Finance shows that Central Java Province receives the largest village funds each year, but this does not necessarily increase economic growth in the recipient districts. In addition to the economic growth policy, the government also plans through investment and government spending. The purposes of this study are to determine the effectiveness of the village fund budget and the effect of the realization of village funds, capital expenditure, goods and services expenditure, and the level of open unemployment on economic growth. The method used in this study is the panel data regression analysis method with the research locus of 29 districts receiving village funds in Central Java Province from 2015 to 2018. The results of the study using the selected panel data regression model that is the Fixed Effect Model FGLS SUR show that all independent variables influence significantly to economic growth (GRDP). The variable realization of village funds and goods and services expenditure has a significant positive effect, while the variable realization of capital expenditure and the variable open unemployment has a significant negative effect on economic growth (GRDP).

Economic Growth, Inflation, and Monetary Policy in Pakistan: Preliminary Empirical Estimates

The recent increase in financial market volatility and the increased surge within developing world to become part of the global market have posed several challenges for policy-makers in the emerging markets to decide on a policy regime— monetary or exchange rate—that suits their needs and could also provide stability to the financial system. In view of the macroeconomic characteristics of these emerging economies, the choice of an appropriate policy becomes important to achieve certain targets such as sizeable domestic and foreign investment, reduced reliance on external borrowings, fiscal discipline, etc. These would require both price and exchange rate stability and country’s ability to deal with external shocks to maintain and achieve sustainable economic growth. Pakistan is no different and until recently had a history of macroeconomic imbalances with extremely high foreign (as well as domestic) debt, high budget and current account deficits, extremely low international reserves, high inflation, high nominal interest rates and low economic growth. The average economic growth over 40 years is around 4 percent. The main focus of any policy has been to achieve a sustainable growth pattern. However, due to a number of macroeconomic imbalances such as high budget deficits, extremely high indebtedness, low savings and investment rates, lack of fiscal discipline, undeveloped financial markets, unstable exchange rates along with high population growth and huge defence expenditure made this task almost impossible. Some of these macroeconomic imbalances contributed to episodes of high inflation and unemployment that the country experienced during most of the period since independence.

Development of economic processes utilizing solar energy

The concern of the electric utility companies to prioritize tight control on system performance is addressed in the paper as it immensely helps planning maintenance expenditure economically with customers’ expectations fully met. . The paper aims at making a comparative study of performance of the micro-grid power system with that of the interconnected micro-grid and national grid. A micro-grid that utilizes solar energy in sparse locations in hilly terrain for ensuring reliable electric supply to industrial houses engaged in product manufacturing processes has been considered. These manufacturing processes as a part of small and medium industries introduce goods and services necessary for securing economic growth and development in the country side where grid power supply is subject to frequent weather disturbances, and hence, very costly from the perspective of sustenance as well as maintenance. The solar energy trend has given scope for self-reliance and better livelihood of people who live away from cities but the products what they manufacture may be sent for consumption in the nearby cities. Thus, more and more dependence on the solar energy leads to nation’s economic growth policy. Moreover, it adds to uninterrupted and quality electric supply using clean energy in place of fossil fuels-based generation of electricity to protect environment; allows reducing health hazards and mitigating greenhouse gas emissions. Using reliability techniques, solar energy plant performance is quantitatively judged and compared with respect to the performance of the national grid supplying power supply to the remotely located population. The improved energy security, easy access and operational responses of the solar plant as a substitute to the grid power supply help develop economic growth of a nation.

Assessing the total factor productivity growth decomposition: the transformation of economic growth momentum and policy choice in China.

How to maintain the momentum of sustained economic growth has always been an important issue of concern to all countries in the world. Using a three-level progressive analysis framework, the article provides an in-depth analysis of the evolution of supply-side economic growth drivers in China from 2003 to 2021 and the magnitude of their roles. The results show that in terms of the composition of growth drivers, total factor productivity makes the largest contribution to economic growth, while the contributions of capital scale and labor scale rank second and third, respectively; in terms of the industrial dimension, the changes in the contributions of each factor to GDP growth mainly originate from the influence of secondary and tertiary industries. From the decomposition of total factor productivity growth, industrial capital productivity and capital allocation structure both play a positive pulling effect on overall capital productivity, but have a weak downward trend. Industrial labor productivity and labor allocation structure both play a slight negative pulling effect on overall labor productivity; from the deep decomposition of growth momentum, industrial factor productivity and industrial factor allocation structure play a major positive pushing effect and a weak negative pushing effect on economic growth, respectively. The conclusion of this paper provides a valuable reference for developing countries on how to maintain the momentum of economic growth.

Relationships between sales of legal medical cannabis and alcohol in Canada,

The extent to which legalizing cannabis use might lead to increased or decreased alcohol use has important implications for public health, economic growth, and government policy. This study analyzed Canada's monthly per capita sales of alcohol and legal medical cannabis using fixed effect panel data linear regressions. The data covered seven Canadian regions from January 2011 to September 2018, and controlled for changing levels of retail activity, alcohol prices, tertiary education, unemployment, and impaired driving penalties. The analysis estimated that each dollar of legal medical cannabis sold was associated with an average alcohol sales decrease of roughly $0.74 to $0.84. This suggests that medical cannabis was an economic substitute for alcohol in Canada, and that the country's 2017–2018 alcohol sales were roughly 1.8% lower than they would have been without legal medical cannabis. The results therefore indirectly imply that reduced alcohol consumption might have partly offset cannabis legalization's health and economic impacts.

Fiscal Policy and Economic Growth in Sub-Saharan African Countries: A Systematic Review

The linkage between fiscal policy and economic growth has attracted the attention of empirical investigators in economic literatures. This study systematically reviewed sub-Saharan African literatures just to examine the relationship between fiscal policy and economic growth. To achieve the objective of the study, 11(eleven) empirical literatures in 7(seven) Sub-Saharan African literature studied between the year 2013 and 2020 were selected. As regard to sampling, random sampling was used to enhance the representatives of the sample. The criteria for selection were the relevance of the topic and the geographical area of studies. In this procedure, the first geographical area and then studies were selected. In the second stage relevance of the studies was considered as inclusion crateria. Descriptive statistics was used for data analysis. The result shows that the studies selected for review are more interested in the long-run relationship between fiscal policy and economic growth than its short-run effect. This implies that Sub-Saharan African countries are using fiscal policy for economic growth rather than stabilization. Regarding consensus on the relationship between the two variables, majority of the literature selected for review found that fiscal policy is positively and significantly affecting the economic growth of the Sub-Saharan African countries. The major fiscal policy tools used in the selected literature are government expenditure and tax reflecting the similarity of economic structures and compositions in sub-Saharan Africa. In conclusion, the compositions of fiscal policy instruments are almost similar in sub-Saharan Africa. The policy implication is that policymakers in sub-Saharan Africa should give due attention to the composition of fiscal policy tools.

The effects of state aid policy trade-offs on FDI openness in Central and Eastern European Countries

Scholarship suggests that much of the success of the FDI-led economic growth policies of Central and Eastern European Countries (CEECs) is due to investment incentives that national governments made available to multinational corporations, particularly in the form of state aid. Less attention has been given to how inward FDI policy among CEECs is affected by the policy trade-offs that the use of different state aid tools entails. This article builds on insights from qualitative case studies to argue that not all state aid is the same. It tests this proposition against those quantitative studies that failed to find a consistent effect of government incentive policy on the host country’s openness to – or reliance on – FDI on a sample of 11 CEECs between 2000 and 2018. The findings support the claim that those measures aimed at promoting regional development are associated with more openness to FDI, but also that this relationship has started to falter following changes in state aid control policy. The key policy implication is that the contradictions between the different levels of governance at which state aid is regulated affect the host countries’ use of this measure as a tool of investment attraction for economic growth policy.

Health in All policies: what do we mean and where are we now?

Abstract This presentation sets what HiAP is and is not, and its evolution since it was conceived. It also addresses how HiAP can be mobilised in practice via the use of tools such as HIA and the key role that enabling structures and contexts - both politically strategic and locally operational- to ensure that health, wellbeing and equity is promoted in the European region. It discusses the enabling context of Wales, with the Future Generations (Wales) Act 2015, which provides political leverage for the implementation of HiAP in practical terms, enabling addressing health considerations intersectorially by non-health policies and projects. This Act along with supporting documents, guidance and legislation implicitly incorporates the principles of HiAP so the rest of non-health sector understand (and also have the statutory obligation) to address the health considerations of policies and plans. It does this by requiring all public bodies in Wales to strive to maximise 7 Well-being Goals - which include ‘A healthier Wales’, ‘A more equal Wales’ - and requires that they do so by working with other agencies in order to prevent negative impacts and promote participation, long-term thinking and integration to ensure that inequalities are minimised. These are key public health principles from which to have conversations. Wales also provides a good example with its advocacy and policy in respect to Economies of Wellbeing - a critical challenge for HIAP is that HiAP is, by its nature, political, and may challenge some policy proposals. Although the focus is on identifying ‘win:wins’ and co-benefits, sometimes there is a conflict between health and other outcomes. There may be a need to balance health gains against economic growth or other policy aims. The following debate intends to discuss the challenges and enablers to achieve that aim, and how public health can make its voice heard.

Economic growth of India and the impact of direct and indirect tax : An ARDL approach

This paper examines and portrays the impact of direct and indirect tax revenue on economic growth in India. Numerous studies were conducted earlier to study taxation from various perspectives, but very few have discussed the impact of taxation on economic growth. Various tax revenue reports from 1990 to 2021 were collected to conduct the present research. An ARDL inbound and outbound tests were applied to continue the investigation further. The study identifies tax variables that have a positive relationship with economic performance. Finally, an in-depth analysis was conducted between variables with the help of ARDL long-run trend analysis. The outcome reveals that direct and indirect tax growth rates positively impact GDP growth. It was suggested that government should focus on corporate tax policies, and more incentives for upcoming and existing entrepreneurs must be provided. The present study is limited only to tax and GDP revenue; it does not focus on economic or corporate policies. However, this research forms a base for further study in taxation, which will support designing policies for economic growth. It is known that the Indian government has introduced nation-one tax policy and implemented GST. Hence, further study can be conducted on the dynamics of GST and its impact on GDP or revenue growth rates.

Impact of Monetary Policy on Economic Growth in Nepal: An Empirical Analysis

This research study investigates the impact of monetary policy on economic growth in Nepal. Data was taken from the sources of national account of World Bank from the year 1965 to 2020 for this purpose. Augmented Dickey- Fuller unit root test was performedto avoid spurious regression. Johansen co-integration test was applied after conforming all variables were integrated in order I (1) then Vector Error Correction model was used to find out the speed of adjustment towards long run equilibrium. The coefficient of VECM was negative and significant that shows long run relationship between monetary policy and GDP Growth. Granger Causality results show two-way causality between money supply andGDP Growth. The result supports the impact of monetary policy on economic growth of the country. It can reduce unemployment, promote investments and stabilize the economy so monetary authorities and policy makers should focus on healthy monetary policy for economic growth of the country.

Spatiotemporal pattern and driving forces of ecological carrying capacity during urbanization process in the Dongting Lake area, China

Ecological carrying capacity (ECC) is a key indicator for assessing the sustainable urbanization. The Dongting Lake area, as a national eco-economic zone, is urgently required to focus on the spatiotemporal pattern of ECC based on interactive mechanism of urbanization and ECC, which is revealed through quantitative research method in 2001–2019. The results show the ECC value appeared a fluctuating downward trend from 1.4645 to 0.8527, and the bearing state changed from under-loading to overloading. The bearing states of 17 counties showed spatially higher heterogeneous with Moran’s I value from 0.2635 to 0.3194. Yuanjiang City, Nanxian County and Taojiang County were in an under-loading state and the remaining 14 counties in an overloading state. The spatial distribution pattern displayed an “M”-type spatial differentiation pattern from southwest to northeast, the central region was evidently better than the surrounding regions. The bearing state had a positive global spatial autocorrelation. Spatial distribution of hot spots showed that the central area was a cold spot area, the edge area was a hot spot area, and the peripheral area was a sub-cold and sub-hot area. Factor detector results reveal that the urban population concentration, economic growth, land expansion, technology levels, and government policies were the main driving factors that formed the spatiotemporal pattern of ECC. The results could make up for the research shortcomings of spatiotemporal pattern of ECC, provide support to control ecological protection red line and urban exploitation boundaries, and help Chinese government formulate effective measurements to optimize the spatiotemporal pattern of ECC.