GDP Growth Rate Research Articles

On the government revenue on economic growth of Sub-Saharan Africa: Does institutional quality matter?

As studies report inconclusive results, the linkage between government revenue and economic growth remains a topic of debate in economic literature. This study investigates the effect of government revenue on the economic growth of Sub-Saharan African countries with the main objective of whether institutional quality matters. The panel data for 43 SSA countries were obtained from dependable data sources: World Development Indicator and Heritage Economic Freedom Index for the period of 2012–2022. The result from system GMM estimation reveals that government revenue adversely affects economic growth while institutional quality positively enhances economic growth before interacting with each other. However, the interactive coefficient of government revenue and economic growth positively affected the real GDP growth rate of SSA countries over the study periods. Precisely, before interacting with institutional quality, a percentage change in government revenue, keeping all other things constant, leads to a 0.0866% decline in economic growth while it marks a 0.2329% upsurge in economic growth in the presence of institutional quality. The result of the study further revealed that government revenue promotes the economic growth of the region when combined with institutional quality. On the other hand, foreign direct investment and openness to trade were the key sources of economic growth whereas the population growth rate adversely impacted economic growth in SSA countries during the study period under consideration. The policy implication of the study is that SSA needs to strengthen government revenue management. Further, the finding of the study implies that SSA countries need to improve institutional quality through promoting efficiency of the regulatory quality and the size of the SSA governments. In addition to this, the fast real GDP growth rate of SSA countries demands improved institutional quality indicators such as the rule of law and extended access to the open market.

Основні вектори розвитку зеленої енергетики в Україні: тарифна політика

The aim of the article is to form a scientific and practical basis for determining the main vectors of development of green energy in Ukraine, related to the definition of tariff policy. According to the results of the carried out study, it is proved that the prospects for the development of the world energy sector and the associated threats of irreversible negative impact on the environment are among the most pressing problems of the globalization process. All countries of the world are faced with the practical task of changing the paradigm of development, changing the system of basic ideological foundations for the use of industrial energy and «transparency» of resource management that meet the requirements of open and transparent activities based on innovative and progressive knowledge and technologies. All this requires the development of alternatives that will ensure the transition of world economies to sustainable development. Programs for the development of renewable and alternative energy sources are formed and implemented in almost all developed countries. However, the unresolved number of methodological issues regarding the introduction of renewable and alternative energy sources, the lack of relevant experience, the insufficient development of the regulatory framework at all levels and bureaucratic obstacles hinder the introduction of renewable and alternative energy sources in Ukraine, which justifies the relevance of this study. The article states that the problems of renewable energy development are discussed at different institutional levels. The constant threat of a crisis in the supply of oil, the threats associated with the development of nuclear energy, and the concern of modern society about environmental, and therefore climate problems, have led to the emergence of modern energy policy, the purpose of which is to create renewable green energy without greenhouse gas emissions into the atmosphere. The most important role for the sustainable development of the world economy be played by energy, which is the basis for the functioning of the economy and society and should ensure the growth of the world’s population and economic development with an average annual GDP growth rate.

Capital flight from BRICS nations: Does every cloud have a silver lining?

This study investigates the potential determinants of capital flight from BRICS countries. We use the residual method to estimate capital flight and employ GMM testing approach. We find a surge in the volume of capital flight from BRICS especially in the aftermath of global financial crisis. The empirical results suggest that, past values of the capital flight, real GDP growth rates, exchange rate depreciation, unemployment rate, business confidence index and financial stability indicator as significant factors causing resident capital outflows from BRICS nations. These findings call for an effective policy framework by the fiscal and monetary authorities.

New growth priorities of European Union economic policy

The article deals with the analysis and implementation of the EU common economic policy in relation to approaches for ensuring economic growth. The objective of maintaining sustainable GDP growth rates of European countries has become especially important for the EU institutions since the mid-1980s, when the EU began to lag behind the United States and the newly industrialized countries. Despite the large-scale projects such the ambitious multiannual economic growth strategies, the higher growth rates have not been achieved. Against the backdrop of growing criticism in the scientific discourse regarding the GDP as an indicator to assess the effectiveness of macroeconomic policies, the question arises about a paradigm shift related economic growth. The article examines the GDP, which might turn out to be incompatible with the need to reduce greenhouse gas emissions as the EU top priority at the moment. Therefore a question arises whether the EU is going abandon economic growth in favour of the implementation of the environmental priorities. The author explores the motives and evolution of the economic policy of the EU aimed at stimulating economic growth and finds out how the very concept of assessing the results of the policy has changed. It’s been revealed that the EU institutions began to focus less on the idea of achieving economic growth. One can expect that economic growth will become secondary to addressing environmental and social issues, and the GDP might be supplemented by alternative indicators for measuring economic achievements.

Assets Liability Management, Macro-Economic Factors and Performance of Pension Funds Administration in Nigeria

The paper aims to investigate the impact of macroeconomic factors on the performance of pension funds administration in Nigeria. The paper utilized a purposive and convenience sampling method, collecting secondary data from 12 pension fund administration (PFA) companies for the years 2010-2021. The availability of audited financial statements was crucial in selecting the sample. The research design adopted was ex post facto, and descriptive analysis and inferential statistics were conducted to assess the suitability of the data. The research question was addressed through regressions, with the Hausman test rejecting the null hypothesis of a random effect model. The findings indicate that the real GDP growth rate has a negative and insignificant relationship with the performance of PFAs, as measured by the return on assets (ROA). This study highlights the importance for policy-makers and regulators in the pension funds industry to recognize the varying contributions of different assets and liabilities to company performance. It is recommended that pension funds focus on managing their assets and liabilities creatively to maintain performance despite fluctuations in macroeconomic factors.

Neophodan nivo investicija za ubrzani privredni rast - stilizovane činjenice i politike

To close the gap in economic development relative to the EU average, Serbian economy has to achieve significantly higher growth rates in comparison to other European countries over the longer period. Theoretical and empirical literature indicates that the level of investment in physical capital is one of the key determinants of the dynamics of economic growth. In this paper, based on data on investments and savings in Serbia and in 37 countries that in the previous three decades achieved an average GDP growth rate of over 5% per year (so-called fast-growing economies - FGE), we present and analyze relevant stylized facts. In the observed period, FGE had average total investments of 25.6% of GDP, of which 69% was private and 31% public investments, whereby private investments were predominantly domestic, which is associated with a high rate of gross domestic savings (of 27.4% of GDP). On the other hand, total investments in Serbia were 9.7% of GDP lower than the FGE average, which was a consequence of significantly lower public and domestic private investments, which was, among other things, a consequence of significantly lower domestic savings (by over 20% of GDP). As in the recent period there has been a noticeable increase in public investments in Serbia, in order to accelerate economic growth, it is necessary, in addition to maintaining them at a high level, to encourage a considerable increase in domestic private investments through economic measures policy and wider reforms of the general institutional environment, with the aim of having the total level of investments of over 25% of GDP over the next few decades.

ANALISIS STRATEGI PT. TELEKOMUNIKASI INDONESIA, TBK MENGHADAPI PERSAINGAN GLOBAL

The significant contribution of information and communication technology (ICT) to Indonesia's economic growth, surpassing the national GDP growth rate. This growth is attributed to strategic determinations made by companies considering both internal and external factors. The study aims to analyze these influences on PT. Indonesian Telecommunications' competitive strategy to enhance competitiveness. Employing quantitative descriptive research, it utilizes Internal Factor Evaluation (IFE) and External Factor Evaluation (EFE) matrices. Primary and secondary data were collected through purposive and snowball sampling techniques, involving employees of PT. Telekomunikasi Indonesia, Tbk. Data collection methods included questionnaires and secondary data from company archives and statistical sources. SWOT analysis, IFE, and EFE methods were applied, revealing PT. Telekomunikasi Indonesia, Tbk's adeptness in leveraging strengths, addressing weaknesses, seizing opportunities, and mitigating threats. IFE and EFE scores averaged 3.44 and 3.15 respectively, indicating an aggressive growth stance. Positioned favorably, the company is poised for expansion and heightened growth amidst global competition.

재개발 사업기간의 영향요인 분석에 관한 연구

The primary goal of this research is to determine the impact of an amendment to the Urban Improvement Act on the duration of redevelopment projects. Basic statistics analysis results reveal an increased redevelopment project period since the amendment, high number of households and tenants of existing houses, and high ratio of general sales and rental of completed houses. Meanwhile, the results of multiple regression analysis, which uses the period from the establishment of the implementation union as a dependent variable, reveal that the amendment increases the project period, and the project period increases if the key interest rate rises and the GDP growth rate is high. With an increased key interest rate, GDP growth rate, and construction investment, the project period decreases. Meanwhile, when the Seoul land price and price index increase, the project period increases. The amendment has improved public interest by increasing the supply of rental housing, but administrative support for the redevelopment of unviable areas must be strengthened to prevent urban polarization.

Factors Affecting Credit Risk in Nepalese Commercial Banks

This study analyzes the factors affecting credit risk in Nepalese commercial banks. The study comprises data from 27 commercial banks from 2002 to 2020 A.D. For analysis, the Least Square Dummy Variable (LSDV) Regression for model I and Random Effect (RE) Regression Analysis for model II were performed. The effect of the independent variables on credit risk, using loan loss provision and non-performing loans, as proxies of it was examined. While comparing both models, the loan loss provisioning was found to better explain the credit risk. The growth rate of GDP, a macroeconomic variable, had a significant and positive effect on credit risk, which was unexpected whereas the control variable, the interbank interest rate, had a negative and significant effect on credit risk. Furthermore, the year dummy showed a relatively high requirement for loan loss provision, especially in the years 2019 and 2020, which may be due to COVID-19. The bank-specific variables like size, and government banks had significant and positive effects on credit risk. This implied that the merging of banks was not fruitful as it caused an increase in the total assets of banks, which would lead to an increase in the size of commercial banks. That increase in the size of commercial banks was found to increase credit risk. In addition, government-owned banks were found to have higher credit risk than other banks. The government should think about reforms through private sector participation in government-owned banks as another alternative to reduce credit risk.

The influence features of individual factors on EU countries’ energy markets

The energy consumption impact is an important factor in the development of countries' economies. The European region is energy-dependent due to a significant shortage of energy carriers and an energy crisis. The energy dependence weakens the energy market and increases its vulnerability to external influences. The subject of research in the article is the characteristics, objective laws, and trends of the development of energy factors that are relative to other influence factors on the economic development of European countries. And the purpose is to analyze and assess important factors influencing the energy markets on the modern economic development of European countries. The task is to analyze the current state of traditional energy resource consumption, to determine the specifics of the impact of energy markets on macroeconomic indicators. To assess the influence degree of energy market indicators on macroeconomic development, which allows to identify the important factors for analysis and to indicate the general position of energy markets in the economy there are used following general scientific methods: systematic, logical and descriptive; analysis and synthesis; statistical; economic-mathematical modeling, namely the construction of a correlation-regression model. Based on the conducted analysis, it was established that the energy markets of the EU have a general feature of increasing dependence, and therefore their sensitivity on external factors, which is associated with a significant decrease in domestic production, as well as a weak differentiation of markets. The production of the main energy resources in Europe has a downward trend for all energy markets, which leads to the increased importance of imports. The influence of energy market factors on the macroeconomic indicators of EU countries is determined. The conducted correlation analysis confirmed the significant impact of the oil market on the GDP growth rate in the EU. The high energy dependence of the EU countries indicates the increased dependence on external factors but no direct correlation between energy dependence and economic development was found. The high dependence of the EU on the import of energy resources is a significant problem, and the energy security factor is also important for investors in the EU. Conclusions: energy factors do not have a significant impact on the development of EU GDP at the current stage, and the quality use of energy resources is more important than their consumption, which emphasizes the importance of efficient use of resources for the further development of the EU economy.

HUMAN CAPITAL, PHYSICAL CAPITAL, AND ECONOMIC GROWTH NEXUS: A DESCRIPTIVE ANALYSIS

In formulating policies, no nation can dispute the significance of investing in human capital in attracting physical capital and fostering economic expansion. Economic Growth has a significant link with Physical Resources and Human Capital. The main aim of this study is to examine the relationship between economic growth and both physical and human capital. The study's main objective is to examine how Pakistan's economic growth has been impacted by both people and physical capital. This study attempts to evaluate the connection between Pakistan's total economic growth, human capital, and physical capital using World Bank time series data from 1990 to 2020. To determine the influence of physical capital and human resources on the nation's economic expansion, descriptive statistics are utilized. The significance of both human and physical capital for Pakistan's growth is highlighted by this study. life expectancy influences human capital, gross fixed capital formation influences physical capital. The average life expectancy in Pakistan is 63 years, according to the results. Politically related flux is also revealed by gross fixed capital formation. It increased to 4.9 percent in 2020. Variations were also seen in the GDP growth rate. The pandemic of 2019 causes a reduction in gross fixed capital formation and life expectancy. The policy implications indicate the need for increased gross fixed capital investment. It is also recommended that the government set aside a sizable portion of its budget. In addition, to achieve economic growth, public awareness campaigns about investments in human and physical capital should be conducted. Keywords: Physical Capital, Human Capital, Economic Growth, Descriptive Analysis, Pakistan

Globalisation and Pace of Economic Growth in Nepal

Nepal faced serious economic crisis during mid 1980s. Overall balance of payment of the country turned negative in 1982/83 and it remained in the same pattern for three consecutive years. Nepal approached the IMF and the World Bank for their support in solving the economic crises that were being experienced at that time. In response to Nepal's approach these institutions helped Nepal with financial assistance with conditions in order to tide over the external imbalance. These institutions made reformation policies and Nepal had to implement these policies. Nepal entered into the new era of international economic order termed as 'Globalisation'. Nepal formulated and implemented many economic reformation policies compatible with the process of globalisation, liberalisation and privatisation in order to accelerate the process of economic globalisation. This paper aims at studying and analyzing effects of globalisation of Nepalese economy on GDP growth rate and its composition during last three decades starting from 1991/92. The study finds that the globalisation of Nepalese economy has not been able to accelerate the pace of economic growth at desired level.

Economic Growth and Social Equity: An Empirical Analysis of Inclusive Growth in Pakistan

In this thesis, we look at how IG works in Pakistan. Inclusive growth enhances social chances for all segments of society throughout economic development. The study main objective was the measurement of the inclusive growth in Pakistan from 1980 to 2019 in the light of the Asian Development Bank's methodology. Economic growth, job creation, improved transportation, easier access, and a healthier natural environment are all indicators of inclusive growth. Pakistan has accomplished sufficient inclusive growth, according to the statistics. Government health spending, GDP growth, and the share of agriculture and industry in GDP are all positively connected. These variables enhance inclusion, as demonstrated. Employment, income disparity, and poverty all act as roadblocks to inclusive growth. All members of society benefit from economic development, as the growth history found a strong correlation between inclusive growth and GDP growth rate per capita. Therefore, real GDP per capita growth may help achieve equitable development by improving living standards and opening new economic opportunities, especially for the poor. Economic growth can improve people's lives for the better if we put an emphasis on investing in people, social safety nets, and new business creation and entrepreneurship. Poverty reduction measures should be put in place to allow the poor increased access to education, training, and employment opportunities. Equal access to social safety nets and educational and professional development opportunities may help bring income inequality down. Promote initiative, capital expenditure, and the development of high-quality jobs. Prioritizing healthcare infrastructure, accessibility, and quality is essential for equitable growth.

Impact of Bank-specific and Macroeconomic Factors on Non-Performing Loans in the Banking Sector of Nepal

Non-performing loans (NPLs) in the banking sector serve as a crucial indicator for assessing the performance of banks, as the effective management of credit risk stands as a pivotal challenge for lending institutions. The study aimed to determine the significant determinants of bank-specific factors including bank types and macroeconomic factors that determine the magnitude of NPLs in the context of Nepal. The study has included 11 years of strongly balanced panel data of 16 commercial banks consisting of seven domestic private banks, six joint venture banks, and three government-owned banks and macroeconomic data for the period of 2011/12 to 2021/22. The study applied the Pool OLS regression model including bank-dummy variables to assess the impact of the bank-specific factors and macroeconomic factors. The results revealed that the non-performing loan is higher in government-owned banks with a high level of variability compared to domestic private banks and joint venture banks. The study concluded that capital adequacy (CAR), operating efficiency (OCR) and remittance (Remit) have a significant negative impact on NPLs whereas, credit mobilization (CDR) has a significant positive impact on NPLs. It also revealed that the presence of joint venture and domestic private sector banks significantly decreased the size of non-performing loans compared to the presence of government-owned banks in the banking industry. Moreover, ROA, the rate of inflation, and lending interest rates have a positive but insignificant effect on NPLs. Similarly, the GDP growth rate has a negative but insignificant effect on NPLs.

Impact of COVID-19 Pandemic and Russo-Ukrainian War on Tunisian Stock Exchange Performance and Volatility

The purpose of our study was to investigate the impact of COVID-19 pandemic and the Russo-Ukraine (RU) war on the return volatility and value of the Tunisian Stock Exchange proxied by TUNINDEX. We applied GARCH (1,1) to assess the impact on the index return volatility, using daily observations from January 2019 to December 2022, and a multiple linear regression to determine the effect on the index value, based on monthly observations for January 2018 to December 2022. GARCH output revealed that both exogenous shocks led to higher stock market return volatility. The regression results disclosed statistically significant though opposite impacts on the index price. The pandemic exerted a positive, though extremely mild impact on the Index value, while the war had a negative effect on its performance. As for the control variables, both inflation rate and industrial production index exhibited positive effects on the TUNINDEX values, while trade balance had a negative impact. GDP growth rate and interest rate however, showed no significant influence on the index performance during the study period. We faced some difficulty accessing data, in addition to the scarcity of data on other potentially relevant factors, along with a short study period. Incorporating new variables i.e. mortality rates, unemployment due to the lockdown, travel bans effect, trade dependence with Ukraine and Russia, and using Time-Varying Vector Auto Regressive model may add additional value to our work. The paper contributes to the literature on external shocks impacts on stock markets, specifically on the Tunisian stock exchange. In addition, it offers insights on the potential expected economic effects of unpredicted events, and may help identify appropriate strategies to mitigate their dramatic effects. Finally, this research presents the first investigation on the impact of the Russian invasion on Ukraine on the Tunisian stock exchange by probing into the impact on both volatility and performance of the market’s index.

Determinants of Non-performing Loans in Non-Bank Financial Institutions: Evidence from Sri Lanka

This study investigates the factors affecting non-performing loans of non-bank financial institutions in Sri Lanka, employing a panel regression model on data from ten firms from 2011 to 2020. The sample comprises five licensed finance companies and five specialized leasing companies, accounting for 65 percent of the NBFIs industry. The regression model includes profitability, operating efficiency, capital adequacy, company size, GDP growth, inflation, and interest rates as explanatory variables. The results show that capital adequacy and interest rates are positively related, and GDP growth and inflation are negatively related with non-performing loans. Further, it was found that firm size, profitability, and efficiency do not have a significant relationship with NPLs. These findings underscore the important influence of the firm’s capital ratio and macroeconomic factors on non-performing loans of non-bank financial institutions in Sri Lanka.

The Impact of Financial Sector Development on the Sustainable Economic Growth of Pakistan

Purpose: The study examine the impact of financial Institutions and markets development on the sustainable economic growth of Pakistan.
 Design/Methodology/Approach: Time series data of Pakistan is analyzed from 1985 to 2022 by using OLS.
 Findings: Financial institutions development particularly banks are playing positive role in the real GDP growth rate of Pakistan. Financial openness has neutral effect, intermediation and liquidity has positive effect and financial institutions expansion has negative effect on the real GDP. The financial markets development is playing negative role in the real GDP growth rate in Pakistan due to weak, fragile and inefficient market institutions.
 Implications/Originality/Value: Our study findings suggest that for a sustainable economic growth Government should encourage and support financial institutions particularly banks to increase economic activities in the country.

Economic Resilience of Polish Regions and its Determinants in the Period of Covid-19 Pandemic

The aim of the research was to identify, based on available literature, factors determining the level of economic resilience of Polish regions and then verify whether they actually contributed to a more effective amortization of the demand and supply shock caused by the COVID-19 pandemic. The thesis was put forward that regions with a diversified and competitive production and employment structure experienced the negative effects of the economic slowdown to a lesser extent in the initial period of the pandemic and built their production potential faster in the following years. Based on the results obtained, the relationship between the level of diversification of the production structure and the economic resilience of the studied regions was not confirmed. On the other hand, it was noticed that voivodeships with a competitive production structure were more likely to experience a decline in the growth rate of GDP per capuita in the year of the outbreak of the pandemic. At the same time, in subsequent periods they returned to a relatively dynamic path of economic growth more quickly.

Labour incomes and economic activity in Poland

ObjectivesThe purpose of the paper is to examine the impact of labour incomes on economic activity and growth in Poland.Material and methodsThe thesis of the paper is rooted in the hypothesis of underconsumption and it claims that a proportion of labour incomes to the domestic product exerts an influence on the structure and the value of the aggregate demand and thus it eventually has an effect on economic activity. Empirical analysis provided refers to macroeconomic data for the period 2010-2019.ResultsThe results support the thesis; relatively low growth of labour incomes is followed by low rates of economic growth and investment and higher rates of unemployment.ConclusionsThe analysis of changes in real production per employee, real wages, the rate of unemployment, the rate of GDP growth and changes in households’ consumption spending strongly support the claim that low wages at least periodically stand behind a demand constraint in the Polish economy and that they impair economic results.

GDP Impact on the Digital Economy in European Union Countries

This article explores issues relating to the development of the digital economy in the countries of the European Union. Its aim is to assess the impact of a country’s GDP on its DESI index. In this study, the research problem involves finding answers to the following questions: 1) Why does the development of the digital economy in different EU countries show such a substantial variation? 2) Which DESI index indicators have the greatest impact on its final score? 3) Does the overall development of the domestic economy have an impact on the development of its information society? The research conducted with these goals in mind warrants the conclusion that the pace of development of the digital economy in the less developed EU countries is higher than in the leader countries. Furthermore, it has been found that the indicators within the “4 Digital public services” and “1 Human capital” dimensions have the greatest impact on the DESI index. The direct influence of GDP per capita on the DESI index has been demonstrated experimentally. In contrast, the assumption that the growth rate of GDP and the share of the ICT sector in GDP correlates with the development of the digital economy and information society has not been confirmed.