Positive Economic Growth Research Articles

The impacts of economic freedom on the environment: The case of carbon dioxide emissions in seven ASEAN countries

Global warming has been acknowledged as one of the main environmental issues, and economic freedom as one of the institutional factors is believed to be the key to protecting the environment. This study evaluates the proposition that countries with higher economic freedom will have a better environment than countries with a dictatorship government. This study uses panel data regression data from 2011 to 2017 and consists of seven ASEAN Countries. This study constructs an econometrics model with three main variables, i.e., economic freedom, Information, and Communication Technology (ICT), and real gross domestic products (GRDP) that have an impact on carbon dioxide (CO2) emissions. The main results show that (1) higher economic freedom leads to low CO2 emissions. (2) better Information and Communication Technology reduces the level of CO2 emissions. And (3) Positive economic growth influence a higher level of CO2 emissions. The policy implication implies that the governments in seven ASEAN countries should support more economic freedom to support a better environment, use efficient ITC that leads to the protection of the environment. Apply the environmental statistics into the calculation of GRDP to improve countries’ capacities to manage their economies and natural resources.

REUSE OF IMMOVABLE CULTURAL HERITAGE SITES WITH ADAPTIVE ELEMENTS AS A WAY OF PRESERVATION AND PROMOTION

cultural heritage. Cultural heritage is an exclusive and irreplaceable property and source, and its preservation, as well as its use, must be considered within a process of sustainable urban development planning, creating all the boundaries connected with its use in order to transfer this treasure to future generations in a way that preserves its authenticity. Although, since ancient times, the built environments have changed their purpose to fit modern social needs in a rather pragmatic way. The use of immovable cultural heritage for contemporary purposes, or its renovation and adaptation, today presents a great challenge for architects, urban planners, and relevant protection authorities. The application of technical protection measures on cultural heritage built environment can guarantee their conservation with a limited lifetime, but for long-term existence and ensuring protection it is more satisfactory if they have some modern socially justified use. One of the models of restoration and adaptation of immovable cultural heritage is the model of adaptive reuse, also known as renovation or conversion. The model implies a functional transformation of a building or group of buildings through the adaptation of its inherited physical construction. Based on the assumption that the main purpose of adaptive reuse of immovable cultural heritage is its regeneration and adaptation, as well as creating of a positive reputation, economic growth and promotion of a site, , this article considers the effects and benefits of new purposes that have been reached in the process of adaptation of the inherited built environment through analysis of three European fortifications - Hohenwerfen (Austria), Liubliana Castle (Slovenia) and Carcassona (France). In addition, the paper discusses preventive conservation methods for the restoration and adaptation of this type of properties and heritage in Germany.
 Today, the building of the Residence of Bukovinian and Dalmatian Metropolitans in Chernivtsi is used as the main building of Chernivtsi National University named by Yuriy Fedkovich. So, the model of reusing has been practicing her since 1875. But the building didn’t need any adaptation or intervention after its original destination. But after including the building of Residence into the UNESCO World Heritage List, some reorganization issues, connected with tourist infrastructure, became especially relevant. Therefore, study the positive European experience is actual for such type of heritage, where this adaptation process is extremely necessary.

Fixed Investment and Economic Growth: ARDL and Causality Exploration for SADC Countries

In assessing the short run and the long-run effects of fixed investment and economic growth among Southern Africa countries, we evaluated the economic progress of the SADC (Southern African Development Committee) region. Our objective is to determine how variables (GDP, purchasing power parity, inflation, electricity, balance-of-payments, and unemployment) can be affected by the fixed investment. In determining how fixed investment affects economic activities and policies among the states, the ADRL estimation approach is applied. Using data from 13 countries in the SADC region from the period 1992-2018, we enumerate the variables’ marginal returns against the fixed investment component. The results of diagnostic and other tests show that all statistical procedures are robust. The result proves that the benefits of fixed investment are yielded over a long period rather than short periods. As a result, the cost in the short term cannot be compared to the benefits that will be enjoyed later by an economy as it becomes productive. Furthermore, the lack of consistent fixed investment among countries will eventually lead to insufficient cash flow, which will negatively affect the currency. These results would seem to suggest that the introduction of policies that promote investment will massively contribute to increased productivity and positive economic growth in the region.

Asymmetric effects of China’s tourism on the economy at the city level: a moderating role of spatial disparities in top level tourist attractions

ABSTRACT This study complements the tourism literature by proposing an asymmetrical effect of the tourism-led growth hypothesis on the city-level economy using panel data from 331 cities in China from 2004 to 2015 (3,972 observations). The results, based on an augmented Solow model and the system-generalized method of moments (GMM), reveal that the impact of tourism on city-level economic growth is indeed asymmetric and heterogeneous, depending on the presence of top-level attractions (TL), which are proxied by the World Heritage Sites or AAAAA (5A) scenic spots. The dynamic panel threshold model’s results also corroborate the asymmetric threshold effect of tourism on city-level economic growth. Tourism, in particular, has facilitated positive and significant economic growth in cities with TL but has had an uncertain and statistically insignificant impact on cities without it. The findings indicate that the validity of tourism-led growth depends on the availability and number of TL in each city, which serve as a moderator. As a result, we confirm tourism’s asymmetric effect and spatial heterogeneity on urban economic growth.

Mitigating the externality of diseases of poverty through health aid.

Externality exists in healthcare when an individual benefits from others being healthy as it reduces the probability of getting sick from illness. Healthy workers are considered to be the more productive labourers leading to a country’s positive economic growth over time. Several research studies have modelled disease transmission and its economic impact on a single country in isolation. We developed a two-country disease-economy model that explores disease transmission and cross-border infection of disease for its impacts. The model includes aspects of a worsening and rapid transmission of disease juxtaposed by positive impacts to the economy from tourism. We found that high friction affects the gross domestic product (GDP) of the lower-income country more than the higher-income country. Health aid from one country to another can substantially help grow the GDP of both countries due to the positive externality of disease reduction. Disease has less impact to both economies if the relative cost of treatment over an alternative (e.g. vaccination) is lower than the baseline value. Providing medical supplies to another country, adopting moderate friction between the countries, and finding treatments with lower costs result in the best scenario to preserve the GDP of both countries.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PENGANGGURAN DI KABUPATEN/KOTA WILAYAH SARBAGITA

This study aims to analyze the effect of investment, minimum wages, contribution of the tertiary sector, and economic growth simultaneously and partially on the level of open unemployment in the Regency / City of the Sarbagita Region. This study uses panel data, namely a combination of time series data (2011-2019) and cross section (four districts / cities in the Sarbagita area) with a total of 36 observations. The data collection method is done through observation with secondary data. The analysis technique used in this research is multiple linear regression analysis. The results showed that investment, minimum wages, contribution of the tertiary sector, and economic growth simultaneously had a significant effect on the level of open unemployment in the district / city of the Sarbagita region. Partially, investment has a positive effect and minimum wages have a negative and significant effect on the open unemployment rate in the Regency / City of the Sarbagita Region, while the contribution of the tertiary sector and economic growth does not have a significant effect on the level of open unemployment in the Regency / City of the Sarbagita Region with the coefficient of the tertiary sector contribution positive direction and negative economic growth.

Public–Private Partnership Infrastructure Investment and Sustainable Economic Development: An Empirical Study Based on Efficiency Evaluation and Spatial Spillover in China

Public–private partnership (PPP), an innovative mode of infrastructure investment, has been widely applied in China and has become an essential policy tool with which to promote sustainable economic development. In order to comprehensively evaluate the economic consequences, using 31 provinces in China from 2003 to 2018 as samples, first, stochastic frontier analysis was performed to measure the input–output efficiency of infrastructure investment to evaluate the economic sustainability and efficiency of PPP compared to single government-led investment mode. Next, the overall economic growth effect of PPP was verified. Further, from the perspective of sustainable development of regional economies, the double-fixed effect spatial Durbin model was adopted to empirically test the spatial spillover effect of PPP and clarify its industrial heterogeneity. The results show the following. (1) The average input–output efficiency of infrastructure is 0.449, revealing a distribution law of decreasing from east to west and remarkable regional variation. However, a good trend of improvement emerged, reflecting the economic sustainability of infrastructure investment, and PPP has played a positive role in promoting it. (2) PPP has significant and positive economic growth and spatial spillover effects, which can promote regional economic integration, embodying its economic sustainability function. (3) The economic impact of PPP has significant industrial heterogeneity. Transportation PPP can bring greater economic benefits, confirming the vital position of transportation infrastructure in the sustainable development of regional economies. Energy and water PPP have positive externalities. All of this provides powerful and reliable proof of the realization of sustainable economic development under the regional virtuous circle driven by infrastructure investment through PPP.

Threshold Effect of the Government Intervention in the Relationship Between Business Cycle and Population Health: Evidence From China.

China is an emerging country, and government intervention is always considered as an important part of the solutions when people facing challenges in China. Under the impact of the coronavirus disease 2019 (COVID-19) epidemic and the global economic downturn, the Chinese government quickly brought the epidemic under control and restored the positive economic growth through strong intervention. Based on the panel data of provincial level in China and the government intervention as the threshold variable, this paper empirically analyzed the non-linear effect of business cycle on population health by using the panel threshold regression model. The empirical results show that the impact of the business cycle on population health is significantly negative, and government intervention has a single threshold effect on the relationship between business cycle and population health. When the government intervention is below the threshold value, the business cycle has a significant negative effect on the improvement of the population health level; when the level of government intervention exceeds the threshold value, the relationship between business cycle and population health becomes significantly positive. To some extent, the conclusions of this paper can guide the formulation and revision of government health policy and help to adjust the direction and intensity of government intervention. The Chinese government and other governments of emerging countries should do more to harness the power of state intervention in their response to the business cycle.

Scaling-up the installation of hybrid solar collectors to reduce CO2 emissions in a Mexican industrial sector from now to 2030

This work aims to study and analyze the technical and avoided CO2e emissions potential of scaling up a novel hybrid solar technology in the Food and Beverage (F&B) industrial sector in Mexico. The prospective analysis is developed establishing different economic and technological scenarios from 2020 to 2030, which are established based on energy demand historical data by location a local trends. A coupled Long-range Energy Alternatives Planning-TRNSYS (LEAP-TRNSYS) model is developed to determine the total hybrid solar collector capacity that need to be installed by 2030, and the CO2e abatement potential in the F&B industry. Valle de Mexico, Guadalajara, Monterrey, and Torreon were the identified regions with the greatest potential to deploy the proposed hybrid solar technology considering the F&B industry. The determined technical potential (total collector installation area) of the hybrid solar technology in the F&B sector was 7.25 million m2, 6.24 million m2, and 5.31 million m2 for the positive, stagnation, and negative economic growth scenarios, respectively. The deployment of the proposed hybrid solar technology has an excellent decarbonization potential in the studied sector, achieving by 2030 a CO2e emissions reduction of up to 51.7%, 43.51%, and 34.06% from the levels of 2018 for the negative, stagnation, and positive economic growth, respectively.

Turkey: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Turkey

In Turkey, as in other countries, the human and economic toll of the COVID-19 pandemic has been severe. Thousands of lives have been tragically lost and many livelihoods compromised. The initial policy response to the pandemic—and subsequent sharp growth rebound—set Turkey apart from its peers. Rapid monetary and credit expansion and large liquidity support meant that Turkey was among the few countries to experience positive economic growth in 2020. But these policies also aggravated pre-existing economic and financial vulnerabilities. Higher inflation, increased dollarization, and a large shift in the current account position increased pressure on the lira and gave rise to heavy foreign exchange sales, which led in turn to steep reserve declines from already-low levels. A policy shift in late 2020—mainly towards tighter and more transparent monetary policy and slower credit growth—was both welcome and necessary. But the durability and depth of the shift were called into question in March 2021, following the change in central bank leadership, as the lira weakened markedly and interest rate spreads widened.

A Comparative Time-Series Investigation of China and U.S. Manufacturing Industries’ Global Supply-Chain-Linked Economic, Mid and End-Point Environmental Impacts

Manufacturing activities of China and the U.S. account for a substantial portion of the global manufacturing output and environmental sustainability impacts. The two countries’ economies account for one third of the global economic output. Their supply chains are critically linked with and serve most of the production and service industries across the globe. Recent global trends in manufacturing necessitate a study that comparatively analyzes the two countries’ manufacturing industries from an economic and environmental perspective. In this paper, U.S. and China manufacturing industries were investigated to analyze the economic and mid and endpoint environmental impacts over a 20-year study period. The literature is abundant with single period and single country focused works, and this study contributes to the state-of-art by extending the temporal dimension to 20 years and spatial focus to the global economy (40 countries and rest of the world). In terms of the methodology, Multi-region input-output (MRIO) models were built using the World Input-Output Database (WIOD) as the primary database, global input-output tables, environmental impact and economic output multipliers, and manufacturing industries’ final demand. Twenty MRIO models, each comprised of 40 major economies and the rest of the world (ROW), were built to cover the global trade linkages, which yielded the global supply chain linked cradle-to-gate life cycle inventory (LCI) of economic outputs and environmental impacts. The environmental LCI was extended to midpoint (Global Warming Potential (GWP) and Ozone Depletion Potential (ODP)) and endpoint (human health and ecosystem) impact dimensions by ReCipe framework. Lastly, the relative impact of a unit change in Leontief inverse, final demand and Green House Gas (GHG) emission multipliers on the total economic output and environmental impacts were explored with structural decomposition analysis (SDA). Results indicated that both countries’ manufacturing industries experienced positive economic output growth, in which China was more dominant in recent years. Both countries’ manufacturing industries’ midpoint and endpoint impacts were found to be steeply rising despite the negative growth observed in emissions intensities. The amount of GHG emissions and related midpoint (global warming and ozone depletion) and endpoint (damage to ecosystems and human life) impacts seemed to be quickly worsening in China compared to the USA.

Analysis of China’s Economy in the 21st Century

China, being the country with the largest population, inevitably influences the processes taking place in the world economy. In terms of GDP, the Chinese economy has been the first economy in the world over the past several years, being among the most important economic indicators such as GDP, industrial production, and export of goods in leading positions. Under the influence of the pandemic crisis, a deep recession occurred in industrially developed countries, where the reproduction system is based on the “TNC economy”, with the exception of China, which managed to transfer the economy into a state of reproductive expansion, while maintaining the positive dynamics of the country’s economic development on an annualized basis. The aim of the paper was to analyze data that gives an idea of the potential of the Chinese economy. The main indicators characterizing the development and dynamics of the Chinese economy are considered. Materials and methods. In the course of the work, a dynamic, structural analysis of analytical and statistical information was used; methods of analytical, logical, system analysis were used. Results. The paper examines certain macroeconomic indicators that characterize the state and development of the Chinese economy, taking into account the achievements in the context of the global economic crisis caused by the COVID-19 pandemic. The GDP of China was analyzed, calculated in national currency or PPP. Conclusion. The country was faced with a difficult international situation, difficult tasks in search of reform, development and stability within the country and, in particular, with the heavy blows of the COVID-19 epidemic. Steps taken to stabilize employment, financial transactions, foreign trade, foreign investment, domestic investment and market expectations, as well as ensuring fully guaranteed employment, basic living needs, functioning of market actors, food and energy security, stability of production and supply chains, helped to restore the economy making China the only major economy with positive economic growth in the world in 2020.

The Growth in the Albanian Banking Sector in the Global Financial Crisis Period and Its Reflection to the Local Economy

The last global economic and financial crisis of 2007-2008 affected Albania considerably. However, it managed being one of the few countries with positive economic growth in Europe. But, the more remarkable event has happened in the country’s banking system: the amount of its assets has almost doubled in the period of 2008-2020, from 845 billion to 1.581billion Albanian LEK. This huge enlargement in the sector’s balance sheet has occurred by the increase in the deposits. Moreover, it has happened in the period where the deposit interest rates saw the historically low levels by the continual decreases from year to year. In addition to economic slowdown, some country-specific factors, such as lack of alternative financial instruments, difficulties in reaching some of them, and unawareness of many savings holders about the existing choices- except putting in bank account- have played role in this happening. Meanwhile, the banks have generally preferred buying bond/obligation to giving loan in the same period, which caused the loans’ share in the total assets to decrease from 48 percent to 39 percent and the securities’ share in it to increase from 32 percent to 35 percent. The decline in credit demand is one of the factors of this change, but the credit-less economic recovery, which started in 2013 and continued till the Pandemic period, implies that it is mostly due to the banks’ reluctance in making new loans. The huge rise in bad loans in the period of 2008-2013, and the limited effect of the following recovery on liquid assets as well as the increasing debt need of the government have led the banks to choose this way.The current structure of the banking sector’s assets should change in favor of the private sector. The banks should have more desire to give credit to the economy, but this requires some positive changes in the potential borrowers’ behaviors and management sense as well as improvement in non-performing loans issue. Meantime, the government should perform its functions more properly, and tend to meet its financial needs from outside, and thus a bigger part of the domestic resources will be presented to usage of the business enterprises and households. This change is crucial to launch a sustainable economic growth after the Pandemic period, and for the banking system’s soundness in the long-run, which requires having strong and diversified relations with the clients, including meeting their financial needs. Keywords: Albania, banking sector, financial crisis, asset allocation. DOI: 10.7176/RJFA/12-10-03 Publication date: May 31 st 2021

The effects of cross-border electricity trade on power production from different energy sources

In this study, we provide empirical evidence to emphasize the crucial role of cross-border electricity trade for decreasing the use of fossil fuels in power industries and attaining higher electricity supply from solar and wind energy sources. We collected data for 48 countries across three continents (Americas, Europe and Asia) from 1991 to 2018 to create a world sample that would reflect the diversity of various energy mixes in different electricity markets. We showed the existence of long-term relationships between power production from natural gas, solar, wind and the level of cross-border electricity trade. Later on, we conducted panel data analyses that utilize the fixed-effect approach with interactive variables. The empirical evidence reveals that when electricity production from solar and wind energy sources interacts with cross-border electricity trade, the rate of power production from natural gas decreases statistically significantly. Furthermore, we created efficiency indices for solar and wind energy sources and to provide evidence for the increased utilization of solar and wind electricity production in the presence of cross-border electricity trade. The resulting empirical evidence reveals that for countries with positive economic growth, a rise in the levels of cross-border electricity trade leads to more efficient electricity production from solar and wind energy sources.

Пространственное развитие: опыт Китая

Increased interest in China is due not only to its successes in combating the pandemic — the PRC is the only major country in the world that has managed to maintain a positive economic growth dynamics. Moreover, more than 40 years of successful reforms certainly make the Chinese experience deserving special attention and study. The present article analyzes the spatial development of China over the past decades, which in addition to a component purely economically measured by percentage of GDP growth of the country and individual regions, has got important social, demographic, cultural, historical and ethnic components

The asymmetric nexus of renewable energy consumption and economic growth: New evidence from Rwanda

Existing studies on the impact of renewable energy consumption on economic growth, which was conducted in either middle/high-income countries or mixed sampled countries, produce the effect, but unfeasible in low-income countries. This study examines the asymmetric nexus of renewable energy consumption and economic growth, and the impact of agriculture and capital on economic growth by employing a non-linear autoregressive distributed lagged model (NARDL) and causality test from 1990 to 2015 in Rwanda. The results show evidence that renewable energy consumption affects economic growth. Asymmetric causality relationship, which is running from positive shocks renewable energy consumption to economic growth is noted. Furthermore, the unidirectional causality effect flowing from both agriculture and capital to economic growth for both positive and negative shocks is obtained. Therefore, the Government of Rwanda needs to realize positive economic growth from its investment in renewable energy consumption and agriculture as prior sectors of development.

Development of Infrastructure And Economic Growth of Papua Province

Efforts are being make equitable development through accelerated infrastructure development by providing quality infrastructure facilities and services. The government continues encourage the development of damaged infrastructure in order to increase economic growth, especially areas do not have good access. The purpose this study is determine the effect of infrastructure development on economic growth Papua Province. This study uses panel data regression with the Random Effect Model. Infrastructure data used this study are road infrastructure, educational infrastructure, health infrastructure from 29 districts / cities period 2011-2018. The results is road infrastructure and educational infrastructure have a positive and significant influence economic growth, while health infrastructure have a positive but not significant effect economic growth Papua Province. The regional government must be increase the quantity and quality of teaching staff, services and health facilities at regions isolated.

Impact of governance on economic growth in developing countries: a case of HIDC vs. LIDC

The purpose of this study is to find whether governance contributes to positive or negative economic growth in developing countries. The connections between the Worldwide Governance Indicators were examined in 111 high- and low-income developing countries (HIDC and LIDC) between 1996 and 2018 to determine which, if any indicators, have a positive or negative effect on the per capita GDP, and therefore the economy. We use fixed effects and perform three different regressions in our analysis. One for the entire sample then another two regressions, one for HIDC and one for LIDC. We find that two governance indicators, Rule of Law and Control of Corruption have positive effects on developing countries’ GDP per capita where Voice and Accountability had a small negative effect on developing counties’ GDP per capita. We find that controlling for corruption and accounting for rule of law is of paramount importance to drive economic growth for developing economics. Within the existing literature, there is neither a theoretical consensus nor consistent empirical evidence that would lead us to believe the relationship is positive, negative or non-existent, for low- and high-income developing countries. We find strong evidence that voice and accountability exacerbate per capita income in LIDC, while it helps promote higher per capita income in HIDC.

Nexuses Between FDI, Human Capital And Infrastructure Quality On Economic Growth: Empirical Analysis In South Asia

About the world’s 40% population belong to the South Asia region which economy is gearing to rise through 7.2% in 2021 and 4.4% in 2022 which is mounting since significant lows in 2020 and bring into mark the region to a pathway of retrieval. The basic objective of this study is to regulate the nexus of Foreign Direct Investment (FDI), Human Capital, and Infrastructure Quality with economic development in South Asian Countries: Bhutan, India, Srilanka, Pakistan, and Bangladesh. To examine the impact of FDI, human capital, and infrastructure quality, the ARDL test with 2 and 1 lag is used to evaluate the impact of 25-year data extracted from WDI (World Development Indicator) of these countries. The results indicated that FDI and infrastructure quality negatively affect the economic growth of these South Asian countries whereas Human Capital has a positive impact on economic growth. The GDP is used as a proxy to amount the economic growth in the model. Interestingly this study results suggest investment in Human Capital to improve the quality of life which may contribute towards the positive economic growth of Bhutan, India, Srilanka, Pakistan, and Bangladesh. This study also suggests that the government of these countries should devise time effective policies for the development of human capital. The researchers may study comparative analysis of developed and developing countries to further examine the impact of FDI.

Country diagnostics for low carbon development: Can developing countries pursue simultaneous implementation of the Sustainable Development Goals and the Paris Agreement?

AbstractThe Sustainable Development Goals (SDGs) in the 2030 Development Agenda and the Paris Agreement, both agreed in 2015, call for the world to simultaneously address development and climate change. Some researchers argue that the SDGs put more emphasis on the value of economic growth, and if so, it would pose a challenging situation, especially to developing countries considering the nexus among economic growth, energy consumption, and CO2 emissions. In order to understand to what extent the SDGs advancement accompanies CO2 emissions increase, a study is needed to investigate development pathways of various countries during the past decades. This study aims to empirically identify well‐performing countries, in terms of both the SDGs implementation and CO2 emission mitigations, and investigate causes of the difference from the others through the decomposition analysis. The results confirm a good number of well‐performers, particularly among the Latin American and the transition countries. It is found that well‐targeted policy interventions for expanding the essential public services such as health, education, energy, water, and sanitation, are effective for advancing the SDGs. The decomposition analysis shows that the countries which made significant advancements in the SDGs had tangible positive economic growth effects on their per‐capita CO2 emissions. But if policy attention is paid to reduce the energy and carbon intensities, especially in the energy‐intensive sectors, such as the industry, energy, and transport sectors, the increases of per‐capita CO2 emissions can be minimized. Proper private sector engagements are considered effective to this end.