Regional Economic Growth Research Articles

‘Gospel’ or ‘Curse’: How Tourism Resource Endowment Affects Human Capital

ABSTRACTTourism resources and human capital have an important impact on regional sustainable development. Based on the resource curse theory, this paper combines the characteristics of the industry to analyze in depth the role of tourism resources on the level of human capital and the mechanism of influence. The results show that tourism resource endowment significantly relates to regional human capital in an inverted U‐shaped. The mediating effect analysis suggests that industrial structure mediates the relationship. The heterogeneity test indicates this relationship is evident only in the eastern regions. This research expands the application scope of the resource curse theory and the three‐step test method. It helps understand how tourism resources affect human capital through industrial structure and offers suggestions for sustainable tourism development and regional economic growth in China.

SPATIAL FRUITS PRODUCTION CONCENTRATION ACROSS DISTRICTS IN SLEMAN REGENCY

Population growth and changes in consumption patterns make fruits a strategic commodity in supporting food security and independence, as well as regional economic growth. Fruit production tends to be geographically concentrated, creating efficient production clusters. Indonesia has edaphic and climatic conditions that support the development of fruit production. Data-based development strategies and agglomeration analysis are needed to strengthen production clusters and realize sustainable regional development. This study aims to identify and analyze the spatial concentration of fruit production in Sleman Regency. The research materials consist of fruit production data in quintal units. Data analysis includes Locational Quotient (LQ), Localization Index (LI) and Specialization Index (SI). The units of analysis are sub-districts in Sleman Regency. The results showed that Sleman Regency produced 802,998 quintals of fruit in 2023, with salak as the commodity with the highest productivity, especially in Turi District. Minggir District showed the highest LQ value for mango, Cangkringan for durian, Sleman District for orange, Godean for banana, Ngemplak for papaya, Mlati for jackfruit and rambutan for Berbah. In interpreting the concentration of fruit production based on LI and specialization or diversification based on SI, it is necessary to confirm the data on fruit products of the analysis material. Generally, fruit production is concentrated in certain districts and most districts have unique fruit commodities. Fruit production in Sleman Regency shows a concentrated spatial pattern with superior commodity clusters, especially salak in Turi District. This pattern opens up opportunities for the development of regional-based fruit center areas. Strengthening production, mitigating pest attacks, and improving infrastructure are needed for efficient collection and distribution of harvest results.

DAMPAK PENGOPERASIAN JALAN TOL TRANS SUMATRA (JTTS) TERHADAP DINAMIKA PERTUMBUHAN EKONOMI PULAU SUMATRA

Toll road development is one of the key instruments for driving regional economic growth through increased connectivity and accessibility. The development of the Trans Sumatra Toll Road (JTTS) is a strategic effort in realising economic transformation on Sumatra Island. The transformation occurs due to a shift in the economic structure from the dominance of the primary sector to a more competitive one, resulting in greater economic and social benefits of development. This study aims to identify the impact of JTTS operations, including their implications for regional economic growth on Sumatra Island. The quantitative descriptive analysis method is employed, which involves analysing the economic profile, regional network, and economic growth, as well as conducting correlation analysis. The results of the study show that the regencies/cities crossed by JTTS experienced an average increase in gross regional domestic product (GRDP) of 1.28% and contributed 3.3% to the GRDP of Sumatra Island. The study found no significant relationship between economic growth and the JTTS length variable (correlation coefficient of 0.092) or road network density (correlation coefficient of 0.305). This finding suggests that the toll road network development strategy should still prioritise creating new connectivity between regions as the primary approach to developing regional infrastructure. Kata Kunci: jalan tol, pertumbuhan ekonomi, pengembangan wilayah, produk domestik regional bruto, Pulau Sumatra, analisis statistik deskriptif Keywords: toll road, economic growth, regional development, gross regional domestic product, Sumatra Island, descriptive statistical analysis

The Role of BRICS in Shaping the New World Order: A Case Study of South Africa’s Influence and Opportunities in the African Continental Free Trade Area (AfCFTA)

This research explores the pivotal role of BRICS in shaping the new world order, focusing specifically on South Africa’s influence and opportunities within the African Continental Free Trade Area (AfCFTA). As a key member of BRICS, South Africa leverages its strategic position to enhance regional integration, economic growth, and geopolitical influence in Africa. The study examines how South Africa’s participation in BRICS facilitates its leadership in AfCFTA, promoting trade liberalization, investment, and sustainable development across the continent. By analyzing South Africa’s diplomatic strategies, trade policies, and economic initiatives, this research highlights the potential for AfCFTA to catalyze broader economic transformation and regional stability. Additionally, the study evaluates the implications of BRICS’ collective agenda for global governance, multilateralism, and South-South cooperation, emphasizing the role of emerging economies in redefining international norms and power dynamics. Through a comprehensive case study approach, the research identifies key opportunities and challenges for South Africa within AfCFTA, offering insights into the broader impact of BRICS on the global economic landscape.

Government Strategy for Sembalun Tourism Destination in East Lombok Timur Regency to Support Mandalika as a Super Priority Tourism Destination

Sembalun should hold a significant position as part of the competitive tourism golden triangle of Mandalika–Sembalun–Senggigi, capable of rivaling Bali’s tourism within the Nusa Tenggara Islands. This is due to the fact that the Sembalun area in East Lombok possesses great natural and cultural potential. However, it has not been optimally developed to drive regional economic growth and support tourism in West Nusa Tenggara. The aim of this research is to analyze tourism development, identify supporting and inhibiting factors, and formulate strategies for the development of Sembalun tourism in support of the Mandalika Super Priority Tourism Destination (DPSP). A qualitative research design was employed as the research method. Data was collected through observation, document studies, and in-depth interviews with local government officials and tourism actors. Data analysis was conducted using descriptive techniques and SWOT analysis to formulate tourism development strategies. The research findings are as follows: 1) Tourism development in Sembalun has not yet been optimal in supporting the Mandalika Super Priority Tourism Destination (DPSP). Despite its wealth of natural and cultural attractions and the emergence of basic facilities, challenges remain in the aspects of amenities, accessibility, and supporting services that are not yet fully integrated; 2) Supporting factors include natural-cultural potential, community involvement, and government support, while inhibiting factors include the low quality of human resources, uneven infrastructure development, and weak collaboration among stakeholders; 3) The proposed development strategy is a diversification strategy for Sembalun tourism, including strengthening the competitiveness of tourism products, improving the quality of local human resources, optimizing infrastructure and amenities, enhancing inter-stakeholder collaboration, developing digital tourism, and controlling land-use conversion and environmental risks. The novelty of this study lies in the conceptualization of sustainable tourism governance as an approach to sustainable, collaborative, and innovative tourism development. This strategy is adaptive and applicable in regions with similar characteristics.

The Effect of Investment, Labor Absorption, Government Expenditure and Balancing Funds on Economic Growth in West Nusa Tenggara Province in 2013-2024

This study aims to analyze the effect of investment, employment, government spending and balance on economic growth in West Nusa Tenggara Province from 2014 to 2023. The research method used is Panel Data Regression analysis with secondary data collection method. The data used is secondary data from 2014 to 2023 sourced from BPS. The results showed that investment and balance funds had a positive and significant effect on economic growth. The variables of labor absorption and government spending have no significant effect. The coefficient value (R2) of 0.648735 shows that only 64.87% of the variability of economic growth can be explained by the four independent variables. This study concludes that increasing investment and equalization funds can increase economic growth, besides that employment and government spending have no effect on regional economic growth in West Nusa Tenggara Province in 2014-2023.

Driving Local Productivity: The Interplay of MSMEs, Government Spending, and Economic Growth

The strategic development of Micro, Small, and Medium Enterprises (MSMEs) and government spending are pivotal drivers of local productivity and regional economic growth. However, existing empirical investigations often lack an integrated framework linking these crucial factors. This study addresses that gap by analyzing the influence of MSME growth and government spending on local sector productivity and their subsequent implications for economic growth dynamics in Lampung Province, Indonesia. Adopting a quantitative survey design, this research collected primary data from 190 purposively selected respondents, comprising MSME actors and government officials across key economic sectors. Supporting secondary data was also utilized. The study employed Structural Equation Modeling–Partial Least Squares (SEM-PLS) to test seven hypotheses. The findings unequivocally demonstrate that MSME growth and government spending significantly influence the dynamic of economic growth and local sector productivity. Moreover, local sector productivity also significantly influences economic growth. Last but not least, both MSME growth and government spending have significant indirect influences on economic growth through local sector productivity. This study advances the understanding of the causal mechanisms linking fiscal policy and MSME dynamics within regional development frameworks. It further emphasizes the critical importance of synergy between local governments and MSME stakeholders to ensure inclusive and sustainable economic growth. Future research is encouraged to explore sector-specific policy impacts through longitudinal and mixed-method approaches for more profound insights.

Assessing regional economic systems balance based on the dynamics of key social and economic indicators

The methodological approach to assessing the level of regional economic system balance (hereinafter referred to as RES), based on the principles of sustainability and stability of the key subjects of regional economy. Public authorities, business entities, and scientific and research organizations have been identified as the main participants of RES. Particular attention has been paid to the interrelationship of government decisions stability and business development indicators, as well as the role of science and innovation in ensuring sustainable growth of regional economy. The system of quantitative indicators and coefficients reflecting the stability of activity of various spheres of economy such as industrial production (KPR), small and medium entrepreneurship (KMS), innovation activity and technological development (KIT), as well as retail trade (KRT) has been proposed. On the basis of these indicators, the level of RES balance in three gradations (high, medium, and low levels) has been assessed. It allows us to promptly identify imbalances in individual sectors of regional economy. The calculated coefficients have been compared with the data on the constituent entities of the Russian Federation grouped by federal districts. The results of the analysis of the dynamics of key economic spheres development in the context of Russian regions have been presented, and the stable and unstable components of the RES have been identified. The algorithm for assessing the level of balance has been described, including the collection and analysis of statistical data, coefficients calculation and interpretation, and managerial decisions development based on the analysis results. The developed methodology makes it possible to conduct an objective and comprehensive assessment of the balance of the RES balance, identify problem areas, and form targeted economic policy measures to improve regional sustainability and competitiveness.

Cryptocurrency mining as an emerging industry: Prospects for the Russian Arctic

This article explores the potential of the emerging cryptocurrency mining industry in contributing to the development of the Russian Arctic. The study employs an original approach that emphasizes gross regional product (GRP) growth, digital and high-performance computing development, and the need to maintain a balance between ecological sustainability and economic progress. The novelty of this research lies in its evaluation of the risks and benefits of crypto mining from the perspective of regional economies in the Russian Arctic. The goal of the study is to conduct a comprehensive assessment of the conditions, opportunities, and consequences associated with the development of crypto mining in the Russian Arctic, in line with principles of sustainable and balanced territorial development. The methodology combines regulatory analysis, statistical methods, balance sheet analysis, comparative international review, and input-output modeling. The findings indicate that crypto mining has attained strategic significance for the Russian economy, with its advantages outweighing the associated risks. Drawing on international experience, the study highlights that unregulated crypto mining can hinder economic growth, regardless of resource availability. In Russia, regulatory mechanisms—including state registration, taxation, and tariff oversight—are implemented at the federal level, while regional initiatives remain underdeveloped. The centrally driven model of industrial crypto mining in the Russian Arctic faces challenges, including the absence of pricing mechanisms for energy consumption during the heating season and pressure on the fragile drivers of economic growth in resource-dependent regions. Nonetheless, the Russian Arctic offers favorable conditions for crypto mining, such as surplus electricity supply, low tariffs, cold average annual temperatures, available production infrastructure, access to associated petroleum gas, and renewable energy potential. A key conclusion of the study is that industrial-scale crypto mining—particularly by registered individual entrepreneurs and small to medium-sized enterprises—holds significant promise in the Russian Arctic. The article presents practical policy recommendations aimed at enhancing regional initiatives in developing the crypto-mining industry, and at strengthening regulatory and oversight tools at the regional and local levels. A promising direction for future research is the factor analysis of regional economic growth models in the Russian Arctic, incorporating indicators of crypto mining industry performance.

Development Mechanisms of Nansha Economic and Technological Development Zone Within the Guangdong-Hong Kong-Macau Greater Bay Area

Nansha Economic and Technological Development Zone, as a key strategic platform within the Guangdong-Hong Kong-Macau Greater Bay Area (GBA), serves as a vital engine for regional economic growth and industrial upgrading. This paper delves into the integration pathway of port logisticsport-proximate industrytechnological innovation in Nansha and the pivotal role of policy instruments in spurring regional economic transformation and upgrading. It unveils the rationale underpinning Nanshas evolution from a conventional industrial base to a hub for new productive forces. The analysis reveals that Nansha must refine policy execution, bolster cross-regional collaboration, and enhance industrial chain coordination. The paper provides recommendations such as streamlining policy procedures and upgrading education and healthcare infrastructure, offering insights into institutional innovation and industrial integration within regional development zones. Furthermore, Nanshas strategic significance lies not only in its role as a driver for regional economic growth, but also in its potential to serve as a model for innovation and cooperation in the global economic landscape. Additionally, it underscores the significance of Nanshas strategic advantages in the context of Chinas dual circulation development strategy, providing a reference for other regional development zones striving for high-quality development through policy and industrial integration.

PENERAPAN PRODUK BRANDING PADA UMKM PEMBUATAN SABUN MOM’S CLEAN DI DESA RIDOGALIH

Micro, Small and Medium Enterprises (MSMEs) have an important role in regional economic growth, but still face challenges in expanding markets and increasing competitiveness. One solution to overcome these problems is to implement an effective product branding strategy. This study aims to improve the understanding and skills of liquid soap MSMEs in Ridogalih Village in implementing product branding as a marketing strategy. The methods used include socialization and training for MSMEs on creating logos using the Canva application and utilizing Instagram social media as a means of digital marketing. The results of the activity showed that participants experienced an increase in understanding of the importance of branding, and were able to create logos and manage social media to support their product marketing. The evaluation conducted after the activity showed an increase in participants' understanding of digital marketing strategies. The main obstacle faced was the limited knowledge of technology for some participants, which was overcome by providing printed materials as a reference.

The challenge of modelling and forecasting Regional Economic growth in Spain

Econometric modelling has become a key tool for evaluating public policies, formulating economic strategies, and preparing forecasts, and it is widely available in most countries and regions. This development has been driven by technological advances in the processing and analysis of economic data and by the evolution of theoretical and methodological approaches. In Spain, the Hispalink University network stands out, celebrating, in 2025, thirty-five years of uninterrupted activity in regional modelling, establishing itself as a benchmark in generating and disseminating economic forecasts. The publication of these forecasts not only contributes to academic knowledge but can also influence the decisions of economic agents. A comparison is made between different sources available in Spain to assess the usefulness and accuracy of regional forecasts, analyzing the predictive capacity of various methodological approaches applied to regional modelling.

China–Pakistan Strategic Partnership and Its Impact on Global Power Dynamics: Analyzing the Role of the Shanghai Cooperation Organization

The strategic relationship between China and Pakistan, marked by comprehensive diplomatic, military, and economic collaboration, profoundly impacts global power dynamics. This study examines the developing relationship between China and Pakistan, emphasizing their cooperation within the Shanghai Cooperation Organization (SCO) and its geopolitical ramifications. Utilizing organizations such as the SCO, both countries advance their strategic objectives, with the China–Pakistan Economic Corridor (CPEC) acting as a premier project to increase regional connectivity and economic growth. The authors assess the manner in which the SCO strengthens Sino-Pakistani relations, promotes regional security collaboration, and opposes Western-led coalitions. It also analyzes the partnership’s influence on the U.S.-China competition, India’s strategic apprehensions, and Russia’s involvement in the SCO. This paper examines the problems and opportunities presented by the China–Pakistan alliance, particularly in relation to regional instability and economic interdependence, thereby enhancing the comprehension of how this cooperation influences global power realignment in a multipolar context. The findings underscore the SCOs importance as a strategic platform for both nations, facilitating their navigation of intricate global dynamics and the assertion of their influence internationally.

Managing Digital Economic Corridors: International Cooperation and Regional Integration in the Digital Age

This study explores the complexities of managing Digital Economic Corridors (DECs) within the framework of international cooperation and regional integration. It highlights the necessity of multi-level governance structures that coordinate national, regional, and international stakeholders to ensure effective corridor management. The research identifies critical challenges including policy misalignment, regulatory fragmentation, digital sovereignty conflicts, and significant capacity gaps in developing countries. Public–Private Partnerships (PPPs) are underscored as key drivers of infrastructure development, but require robust oversight to ensure inclusivity and accountability. The study emphasizes that digital sovereignty issues complicate multilateral cooperation by creating competing regulatory regimes and geopolitical tensions. Moreover, capacity limitations in developing nations impede equitable participation in DECs, necessitating sustained international support in digital literacy, policy development, and institutional strengthening. Ultimately, the findings suggest that balanced governance, harmonized regulations, and inclusive capacity-building are essential to unlocking the full potential of DECs as instruments for regional economic growth and digital integration.

Exploring knowledge spillovers: innovation strategies in resource-rich countries

Abstract Exploring innovation strategies within the knowledge spillover theory is key to understanding how knowledge generated in one context can unintentionally flow or "spill over" into other contexts, leading to new insights, ideas, and innovations. Resource-rich countries face unique challenges and opportunities when applying this theory, which primarily focuses on the influence of external factors on entrepreneurial behaviour and the innovation process. While abundant natural resources can provide a strong economic base, they also pose the risk of a resource curse, where overreliance on resource extraction hampers diversification and innovation in other sectors. This study aims to unravel how and why the knowledge spillover theory can facilitate regional economic development and growth in resource-rich countries. We do so by performing a systematic literature review of relevant peer-reviewed articles published between 1996 and 2024 and discussing the mechanisms and conduits of knowledge spillover in countries rich in natural resources.

Social cost of carbon and the potential for forest carbon credits

ABSTRACT This study evaluates the potential of forest carbon credits to mitigate forest-to-urban land conversion in central and southern Appalachia, quantifying credits based on the social costs of carbon under different U.S. administrations. We use a land use model to identify eligible forestland by assessing conversion threats, incorporating geophysical variables and economic returns from forest and urban land uses. Using this data, we forecast areas at risk of conversion and construct a supply curve for forest carbon credits, representing the cost of avoiding forest loss. By intersecting this supply curve with demand informed by social cost of carbon projections from three U.S. administrations, we estimate equilibrium points resulting in between 462 and 743 million tonnes of carbon credits in 2050. While this represents the total potential supply at that future point, it corresponds to 17%-42% of 2022 U.S. annual emissions, providing a benchmark for scale. These credits could generate $229–$571 million in revenues for landowners in 2050, while Trump-era projections suggest only 8.2 million tonnes, yielding $740,000 in landowner revenue. Our findings highlight policy’s role in shaping forest carbon markets and landowners’ incentives. Forest carbon credits could drive regional economic growth and climate mitigation, influencing future U.S. environmental and land use policy.

Regional Specialization and Labor Productivity of Food Industry in South Sumatra

SMEs became the leading sector contribute to Gross Domestic Product (GDP) in Indonesia. The role of SMEs not only can give positive impact encourage potential development sectors. This paper is to investigate the relationship between the characteristics of regional specialization and labor productivity of small enterprises in the Food industry using the regency or city level data of South Sumatra from 2008-2018. The study used secondary data from the Department of Trade and Industry of South Sumatra for 17 regencies/cities in South Sumatra. Our study proceeds in two steps. First, we used Location Quotient (LQ) to identify the regional specialization. Second, we measured the impact of regional specialization on labor productivity including other regional variables; investment, a total of enterprises, size of employment, Gross Domestic Product Regional (GRDP), and Gross Enrolment Rate based on the panel data of regencies or cities. In the first step, we found that eight regencies specialized in the Food industry. Those typically concentrated near of big city where few enterprises dominate. Next, the LQ, investment, average size of employment, GRDP, and a total of enterprises have a significant effect on labor productivity while the education variable does not influence regional economic growth. According to this result, it should be cautioned that agglomeration may cause undesirable competition for raw materials leading to a detrimental result. This strongly suggests that to fully achieve labor productivity in South Sumatra, there is a need for the implementation of appropriate policy measure to overcome this issue.

Synergistic Development of Vocational Education and Regional Economy in the Era of High-Quality Growth

This paper examines the symbiotic relationship between vocational education and regional economies in the context of high-quality development. It outlines the research's context, objectives, and significance, emphasizing the concept of high-quality development and its theoretical underpinnings. It reviews international and domestic research, exploring vocational education's essence, prerequisites, functions, and importance within high-quality development. The paper analyzes the co-evolution of regional economies and vocational education, examining their dynamic interplay, the regional economy's vocational education needs, and the reciprocal impacts. Case studies illustrate successful development in specific regions, offering insights and lessons. Policy recommendations and future prospects encompass policy support, reform challenges, and future research directions within high-quality development. In conclusion, the paper synthesizes key findings, providing practical insights and policy guidance on harmonizing vocational education and regional economic growth.

Catalyzing prosperity: how palm oil drives inclusive local and regional economic growth in Indonesia

Indonesia's palm oil sector is a cornerstone of rural economic transformation, yet its role in promoting inclusive and regionally distributed prosperity remains underexplored. This study aims to investigate how palm oil development contributes to local and regional economic growth through inclusive mechanisms involving employment, smallholder integration, infrastructure development, and institutional reforms. Employing a qualitative literature review approach, this research synthesizes findings from 80 peer-reviewed journal articles, government reports, and policy documents published between 2015 and 2025. Data were collected using systematic document analysis, focusing on empirical evidence relevant to socioeconomic impacts, governance mechanisms, and spatial development patterns associated with palm oil. Data analysis was conducted using thematic synthesis to identify recurring patterns and draw interpretive insights from existing studies. The results reveal that the palm oil industry significantly enhances rural livelihoods by creating over 4 million direct jobs, increasing household incomes, and empowering smallholders through plasma schemes and inclusive contract farming. Infrastructure development and public service improvements in palm oil regions further amplify these benefits. Institutional innovations, notably the One Map Policy, have resolved spatial conflicts and streamlined permitting processes, while sustainability certification schemes have improved market access and labor standards. In conclusion, the palm oil sector holds transformative potential when inclusively governed. Future studies should examine longitudinal impacts, spatial inequality, and potential environmental trade-offs using mixed-method approaches to enrich policy design.

The Economic Impact of Flexible Work Arrangements on Labour Productivity and Regional Economic Growth: An Indian Perspective

This research endeavors to analyze the scope of the economic impact caused by Flexible Work Arrangements (FWAs) on the labor productivity and GSDP of five Indian States: Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Delhi for the years 2020–2025. The Ministry of Labour & Employment, CMIE, NSO, PLFS, and RBI provided secondary information which was utilized along with primary data to assess economic performance before and after the implementation of FWAs through percentage change analysis, correlation, and trend evaluation. The findings demonstrate an increase in labor productivity and GSDP with greater gains in Karnataka and Delhi where digital infrastructure and services enabled higher adoption of flexible work arrangements. Gujarat also exhibited remarkable growth associated with the gradual adoption of hybrid work models in the manufacturing sector. This sectoral analysis indicates that the services and IT sectors experienced the most gains, while the agricultural sector was stagnant in terms of productivity growth. The above findings suggest that FWAs have the ability to spur economically inclusive growth when adequate technological, policy, and organizational systems are in place along with supportive frameworks. Additionally, the study also aims to fill the gap found in researching the long-term sustainability, the role of FWAs in the informal economy, and the socio-economic impact on the working population.