Sources Of Long-term Economic Growth Research Articles

Formation of Innovative Components in the Hospitality Industry Enterprise

Purpose: The article is devoted to the formation of innovative technologies at enterprises of the hospitality industry. It is substantiated that innovative technologies will allow hoteliers and restaurateurs to a chieve certain advantages over competitors; innovation is a source of long-term economic growth, because those enterprises that constantly apply innovative approaches will always work successfully and obtain high results from their production and economic activities. The objective of the article is to generalize and systematize the formation of the main components of the innovative development of enterprises in the hospitality industry and their significance and use at the modern stage of management. Design / Methodology / Approach: To achieve the aim of the study, the following scientific methods were used: historiographical, comparative, analysis and synthesis methods. Findings: We are living in the most exciting time in human history. Technology is developing exponentially, not linearly as it used to be, and the use of modern technologies and innovations has become an integral part of the survival of businesses in a pandemic and martial law. Modern technologies allow maintaining a high level of service, expanding the range of services, improving the management system, strengthening control over the work of staff, and ensuring a high level of security for guests. Therefore, their study is an urgent task today. Today’s realities of life dictate working conditions for all enterprises of various forms of ownership. Businesses in the hospitality industry are the most vulnerable to these changes. Therefore, hotels and restaurants must focus on their audience, and their owners must do everything possible to expand the number of consumers and protect their business from risks and losses. An important condition for their implementation should be the ability of entrepreneurs to adapt to the new conditions that have developed at this stage of business and to be able to timely and effectively implement various types of innovations (technological, production, logistic, economic, social, informational), skilfully connect them in management activities. For many enterprises, the inability of managers to understand the need and achieve innovative renewal remains a problem, as there is a mis understanding of the role of information as a basic resource of enterprise management. Because innovative technologies today, more than ever before, are becoming a valuable resource for hotel and restaurant businesses. Originality / Value: It is proved that innovation is an integral element in the development of hospitality industry enterprises. Practical Meaning: A number of features of innovative activity in the hospitality industry are highlighted. Further Research: Development of methodological support for the analysing the effectiveness of innovations at enterprises of the hospitality industry.

Does trade liberalization improve child health? Evidence from China

Positive child health is an important development indicator and is also a source of long-term economic growth. Whilst there has been previous research on the relationship between trade liberalization and child health, the conclusion is mixed and the underlying mechanisms remain limited. This paper estimates the effect of reductions in export tariffs on child health by taking advantage of exogenous changes in export tariffs on Chinese products since the reform and opening-up in 1978. We apply the Bartik approach and refer to China Health and Nutrition Survey data from 1993 to 2009, and find that export expansion causes a significant deterioration in child health, with the more obvious effects among relatively vulnerable families in rural areas, individuals with a low level of education, and girls. In addition, the mechanism analysis shows that export expansion increases the income and employment level of working-age parents. However, the income effect does not offset the negative impact of export expansion on parental care, the children being left behind, and child labor.

Knowledge path dependence, external connection, and radical inventions: Evidence from Chinese Academy of Sciences

Public research institutes (PRIs) have played an increasingly prominent role in leading radical inventions, which are considered a major source of long-term economic growth. However, there is little empirical evidence on the factors affecting radical inventions in PRIs, which have been at the forefront of scientific research and technological development. This study fills this gap by providing an empirical analysis of radical inventions at the Chinese Academy of Sciences (CAS), a conglomerate of PRIs in China. Based on a newly compiled data set on CAS patents, this study explores the effects of knowledge path dependence, external network connections, and their interactions on radical inventions in PRIs. Our empirical findings reveal that knowledge path dependence negatively affects radical inventions; there is an inverse U-shaped relationship between external network connections and radical inventions, and weak external connections can alleviate the hindrance originating from knowledge path dependence, thus prompting radical inventions.

Determinants of Private Investment in the Agricultural Sector of Mozambique (2003-2017)

Shortly after independence, Mozambique's economy was characterized predominantly by a public investment over private investment until roughly 1986. In this period, the public sector was seen as the main economic agent, centralizing most of the available resources. Bearing in mind that investment is one of the main components of aggregate demand and source of long-term economic growth, its fluctuations affect significantly the overall functioning of an economy and agriculture in particular. It's in this perspective the study comes in to unfold and understand the major determinants of the private investment in agriculture, as well as the constraints that represent the main challenges to invest in this sector due to the scarcity of capital. The study carried out an analysis of a theoretical approaches from exploratory, bibliographic combined with quantitative method based on the macroeconomic models (the neoclassical model, the flexible accelerator model, and the options model) to address the question of the study. And to achieve our objectives, the sample referred to the period of 2003-2017 and the choice of that period is associated, among several factors the consistency and availability of data on the variables included in the model such as the real GDP; GDP of the agrarian sector; public investment (government spending on infrastructure, electricity, water, between others); real interest rate; inflation rate (a variable capturing the effects of uncertainty from macroeconomic instability on the level of investments) and arable land. The results showed that the agrarian sector is influenced by the wealth produced from engineering sector (infrastructure). Keywords: Determinants, Investment, Private Investment, Agricultural Sector, Economy

The 14th Five-year plan and the development of education in China

Over the past two years, the world economy has been severely affected by the COVID-19 pandemic, the processes of globalization and regional international economic integration have faced new challenges, trade protectionism has intensified, international labor migration and international technology exchange have slowed down. Under such conditions, it is difficult to maintain China's former economic model based on imitation of innovation, cheap and mass labor of average qualification, and orientation towards export of products. China's response to the current trends and problems of economic development is the implementation of the "14th Five-Year Plan" (2021-2025), as well as the longer-term perspective of the PRC’s Vision 2035. This period is a preparatory stage in China's realization of its long-term goal of achieving the income level of developed countries and becoming a developed and sustainable economy by 2035. Education is undoubtedly the most important factor in human capital development, increasing national prosperity, and a source of long-term economic growth. Over the past 20 years, China has caught up on key education indicators with many middle-income and high-income countries. Based on the results of the 14th Plan, we predict that by 2025 China will be able to meet its educational targets and come close to achieving the long-term goals of 2035. Despite the success in some quantitative indicators, the Chinese government should pay attention to the objective problems of current national educational system, in particular its overall basic quality level which is lower than the average one of OECD countries, some hidden inequities such as the more than five-fold gap in financial investment in education between regions and the level of education which is 15 years behind that of the developed countries.

Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model

Human capital, as an important factor of production, directly promotes economic growth. On the other hand, it indirectly promotes economic growth by stimulating the accumulation of physical capital and improving the level of technological innovation. Therefore, human capital is the fundamental reason for economic growth. The key to make human capital play a long-term role is to correctly set the human capital accumulation equation. Different from the existing articles that set human capital accumulation equation from the perspective of human capital investment and physical capital investment, this paper focuses on the marginal output of physical capital. Based on the marginal output of physical capital, this paper makes human capital accumulation subject to a regulation that can completely offset the diminishing effect of physical capital marginal output and keep it at a reasonable level. This way of human capital accumulation is called “regulated” accumulation. The derivation of theoretical model proves that the regulated human capital accumulation, which is based on constant marginal output of physical capital, enables the growth rate of output to be constant and positive. Therefore, this paper finds the source of long-term economic growth from aspect of human capital. As the embodiment of a country’s comprehensive strength and core competitiveness, human capital has important strategic significance and great potential in China’s sustainable economic development. Regulated human capital accumulation can provide a new driving force for China’s economic growth and promote long-term development.

Теория роста на основе трудовой теории стоимости

Even though there has been accumulated a substantial amount of evidence on the disparities in different countries’ rates of economic growth, the question as to the roots of these disparities still remains open for debate. Historically, one of the first formalized models of economic growth was the two-sector scheme of expanded reproduction proposed by Karl Marx in the second volume of Das Kapital. The source of growth in this scheme was surplus value while the prices were determined by the cost of labour. In the following periods, however, the labour theory somewhat receded to the background in the studies of economic growth. This article seeks to address the task of formulating a theory of economic growth by drawing on the labour theory of value. To this end, three models are considered: a model with constant population and no technological progress; a model with endogenous population growth; and a model with endogenous economic growth and technical progress. These models can be used to explain the dynamics of economic growth and in some cases to predict the future growth rates. The model with endogenous population growth describes the development of the global economy between 1850 and 1970. The model with endogenous economic growth demonstrates that fundamental research is the source of long-term economic growth. The model with constant population and no technological progress shows the downward trend in the profit rate. The proposed methodological framework based on these three models can be used to predict further trajectories of growth for the Russian and Japanese economies.

The Economical and Financial Impact of COVID-19 Epidemic on Migrant Labor Force

The objective of this study is to investigate the economic and financial effects of COVID-19 epidemic on migrant labor force. Literature review is the research design of this study. It is possible to achieve economic growth in the short term with some productivity-enhancing measures. However, what matters is the long-term economic growth. This is because, as the source of long-term economic growth and technological innovations, skilled labor force is more concrete. Therefore, for long-term economic growth, supply of skilled workforce is an indispensable precondition. Results are analyzed by comparing different resources, evaluating the literature and taking advantage of International Labor Organization (ILO) and Organization for Economic Co-operating and Development (OECD) statistics. According to study results, COVID-19 poses an unprecedented negative impact on working conditions of migrant work force. Migrant workers are among the most vulnerable in the global labor force affected by the COVID-19 epidemic. But, COVID-19 lock downs will particularly have the highest negative impact on low paid and low skilled (unskilled) migrant work force. Unskilled migrant workers are often excluded from national COVID-19 policy responses in hosting countries, such as wage subsidies, unemployment benefits or social security and social protection measures. Also, access to COVID-19 testing or medical treatment might not be available to unskilled migrant workers. Concerning conclusion and recommendations, migrant workers, should be integrated into risk pooling mechanisms to guarantee social insurance and universality of coverage and solidarity in financing. Health care related benefits can also assist to protect both migrant workers and their host countries.

Corruption, Taxation and the Impact on the Shadow Economy

While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow economy as well as on the individual sources of long-term economic growth, making use of a transmission channel through which corruption affects the tax burden components. Using the method of an extended DSGE model, it confirms the initial assumption that an increase in perceived corruption supports the shadow economy’s growth, but at the same time, it demonstrates that corruption and especially its perception has a significantly different effect on two key areas—the capital accumulation and the labour force size. It further identifies another sector of the economy representing taxes which are prone to tax evasion while asserting that corruption has a much more destructive effect on this sector of the economy, offering generalized implications for other post-communist EU member states in a similar situation.

Development of a digital model for public administration quality of real estate in the Russian Federation based on international experience

The authors studied the issues of recent changes in the system of state management of real estate.According to the authors it is necessary to use digital technologies of big data, neurotechnologies, artificial intelligence, new production technologies, and distributed registry systems for the formation of a digital economy.This will allow defining digitalization as the main source of long-term economic growth. The authors analyzed scientific research on the competition for global digitalization trends and determined the following: mobile Internet, e-commerce, artificial intelligence, however Blockchain technologies and visual identity are considered to be more promising and breakthrough trends. In order to assess the growth rate of the digital economy in the Russian Federation, the authors conduct the analysis in the studied area on the basis of quantitative and qualitative indicators of foreign leading countries. The authors come to the conclusion that the main result of digitalization is the increase in revenue, the increase in the speed of provision of services and their quality and the decrease in resource intensity.

Генезис современного информационного общества и основные мировые характеристики

We consider the historical aspect of the formation of the modern information society as a result of the world information revolution. The main stages of the world information revolution are: the Neolithic revolution, iron revolution, the emergence of writing, the invention of printing; the appearance of the telegraph, telephone, radio and television; the emergence of electronic computers, the creation of the Internet. The idea of the information society was formulated in the late 60s — early 70s of the XX century. However, in the 70s of the 20th century there was a convergence of two simultaneously emerging ideologies — the information society and post-industrialism. To date, Information economy is a sector of the information industry of the economic system of the country. The new economic system is highly dynamic, leading to the growth of economic inequality countries, becomes a potential source of conflicts of a different nature. Information, as a reproducible resource, becomes an object of sale and purchase and a source of long-term economic growth. We consider the stages of the world information revolution. The Internet revolution is comparable in its value to the Neolithic and iron revolutions, with the industrial revolution that made the world economy leader England in the 19th century. We distinguish eight characteristics of the modern information society: unique knowledge, strengthening the role of entrepreneurship, digital technologies, creative highly qualified specialists, the growth of the global online population, the lack of ICT skills, the rapid development of the mobile world, the lack of a unified methodology for measuring ICT skills. The authors come to the conclusion about necessity of creation of uniform world information educational environment for people from all over the world due to the low global level of ICT-skills and the lack of a common methodology for the measurement ICT-skills.

THE EFFECTIVENESS OF SYSTEMIC URBANISM

The relevance of the study is due to the need to assess the effects of urbanization in the regions of Ukraine that are beneficial to both consumers and producers. The evolution of spatial econometric models of economic growth is analyzed. It is revealed that urbanization affects the growth of labor productivity in cities. The theoretical and practical significance of research on urbanization is great, especially for the development of territorial development programs and fiscal policy. The basis of the study is the analysis of the spatial effects of urbanization of labor productivity as the main source of long-term economic growth. The effects of urbanization for economic development depend on the development of the country, its density and structure, as well as on the functions of large cities.Keywords: Urbanization effect, the economic growth, economic systems, town planning project, city structure, city economy, the economy of the intellectual city, intelligence products, intellectual rent, economy of transport cities.

Some estimates of human capital and its role in the economic development of Russia

Innovation is the main source of long-term economic growth, the basis of competitiveness in world markets and the source of solutions to social challenges, and human capital (HC) is the driver of economic efficiency and achievement of the country’s competitive advantages. Unfortunately, Russia is far behind the capacity not only of the developed world, but also to fast-growing economies, in most indicators that characterize the level of development of scientific and technical potential. This problem is further exacerbated by the negative dynamics of the HC. The technological inferiority can lead the country to dependence on highly developed countries, and, consequently, to worsening of its security situation and loss of sovereignty, to weakening and “diluting” the country’s HC. To address these problems, Mr. Vladimir Putin, President of the Russian Federation, signed the “May decree” defining the national development goals of the country until 2024. There was carried out data analysis of the reports of the UN, the World Bank, WEF in Davos, Russian Federal State Statistics Service and other sources to explore the level of the development of the Russian HC and its role in the national development. There were completed the calculations of the Human Development Index (HDI) according to the UN methodology for 2025 and 2030 on their basis. Econometric models for analyzing and forecasting the development of the Russian HC in the near future under different scenarios were constructed with the Eviews 9.5. The forecasting calculations of the HDI showed that if the “May Decree” is implemented at least to a greater extent, many of the Presidential instructions to the Federal Assembly will be fulfilled, and the digitalization of the Russian economy will contribute to “the country’s entry into the top 10 countries with economic growth rates higher than the world”.

Labour productivity growth slowdown: An effect of economic stagnation rather than its cause?

This paper reports the results of an econometric examination on the links between labour productivity and output growth for 22 countries (for which long-term data are available). It turns out that, generally, labour productivity does not “cause” output. In more cases, the causation seems to be running in the opposite direction: from output to productivity. This finding, though inconsistent with the “mainstream” ideas on the sources of long-term economic growth, is reminiscent of the classical Kaldor-Verdoorn Law. The progressing slowdown in output growth on the global level, initiated around the mid-1970s (when the process of discarding the earlier economic policy paradigms set in), may have been mirrored by the progressing slowdown in productivity growth (and that despite the hardly disputable acceleration of technological progress).

Stocks for the long run: the definitive guide to financial market returns & long-term investment strategies

This is the stock-investing classic - updated to help you win in today's chaotic global economy. Much has changed since the last edition of Stocks for the Long Run. The financial crisis, the deepest bear market since the Great Depression, and the continued growth of the emerging markets are just some of the contingencies directly affecting every portfolio in the world. To help you navigate markets and make the best investment decisions, Siegel has updated his bestselling guide to stock market This new edition of Stocks for the Long Run answers all the important questions of today: How did the crisis alter the financial markets and the future of stock returns? What are the sources of long-term economic growth? How does the Fed really impact investing decisions? you hedge against currency instability? Stocks for the Long Run, Fifth Edition, includes brand-new coverage of: the financial crisis - Siegel provides an expert's analysis of the most important factors behind the crisis; the state of current stability/instability of the financial system and where the stock market fits in; and the viability of value investing as a long-term strategy; China and India - The economies of these nations are more than one-third larger than they were before the 2008 financial crisis; you'll get the information you need to earn long-term profits in this new environment. Global markets - Learn all there is to know about the nature, size, and role of diversification in today's global economy; Siegel extends his projections of the global economy until the end of this century; market valuation - Can stocks still provide 6 to 7 percent per year after inflation? This edition forecasts future stock returns and shows how to determine whether the market is overvalued or not. Essential reading for every investor and advisor who wants to fully understand the forces that move today's markets, Stocks for the Long Run provides the most complete summary available of historical trends that will help you develop a sound and profitable long-term portfolio. Praise for Stocks for the Long Run: Jeremy Siegel is one of the great ones. (Jim Cramer, CNBC's Mad Money). [Jeremy Siegel's] contributions to finance and investing are of such significance as to change the direction of the profession. (The Financial Analyst Institute). A simply great book. (Forbes). One of the top ten business books of the year. (Businessweek). Should command a central place on the desk of any 'amateur' investor or beginning professional. (Barron's). Siegel's case for stocks is unbridled and compelling. (USA Today). A clearly written, neatly organized, highly persuasive exposition that lifts the veil of mystery from investing. (John C. Bogle, founder and former Chairman, The Vanguard Group). A book that all investors-nervous Nellies in particular-should read. (Investing.com).

Bargaining Power, Banking Deregulation, and Innovation

We show that finance influences innovation by young private firms, an important source of long-term economic growth. We develop a simple theoretical model that predicts that a decrease (increase) in banks' bargaining power vis-a-vis entrepreneurs increases (decreases) both the volume and riskiness of innovation. Using staggered banking deregulation by U.S. states as shocks to the bargaining power of banks, we find that, consistent with our hypotheses, inter-state banking deregulation increased both the level and riskiness of innovation by young private firms while intra-state deregulation decreased them. Further, banking deregulation primarily impacted riskier explorative innovation by young private firms than the less risky exploitative innovation. In contrast, banking deregulation did not affect public firms and mature private firms that are relatively less dependent on bank financing. These results have important policy implications by demonstrating how financial development, through its impact on innovation by young private firms, can have a first order impact on economic growth.

The sources of long-term economic growth in Indonesia, 1880–2008

This paper presents new time series estimates of GDP, capital stock and education-adjusted employment, and uses a growth accounting approach to analyze GDP growth during 1880–2008. The growth of capital stock, employment and educational attainment explained almost all of GDP growth. During key growth periods 1900–29 and 1975–97, Total Factor Productivity (TFP) growth was on balance negative. TFP growth was substantial during some sub-periods, particularly 1933–41, 1951–61, 1967–74 and 2000–08. Each followed a major economic downturn that slowed capital stock growth and required a more efficient use of productive resources, supported by changes in economic policy that enhanced productivity and efficiency.

The Unbearable Lightness of A Useful Knowledge and Economic Growth

Economists usually sing with the same nose when they answer questions about the role of technology in economic growth. They generally agree that sustained long-term growth in productivity, which began in Western Europe some two centuries ago, could not have been maintained in an environment of stagnant production technologies. Whether we consult Karl Heinrich Marx, Joseph Alois Schumpeter or Robert Merton Solow, the answer is the same: new technologies are the source of long-term economic growth. Economists, as we know, usually argue that the production and utilization of new technologies depend critically on appropriate social institutions, such as competition, decentralized markets, secure property rights, enforceable contracts, and norms of trust and reciprocity. Yet virtually no one argues that long-term growth in output per worker is possible in an economy with stationary production techniques.

Sources of long-term economic growth for Turkey, 1880-2005

This article considers the sources of long-term economic growth for Turkey over the period 1880–2005. The period in question covers the decline and eventual dissolution of the former Ottoman Empire and the emergence of the new Turkish Republic in 1923. Hence, the article provides a unique look at the growth experience of these two different political and economic regimes. The article examines in detail the evolution of factors that led to growth in output across broad periods, including the post-World War II period and the era of globalization beginning in the 1980s. It also considers output growth in the agricultural and non-agricultural sectors separately and allows for the effects of sectoral re-allocation. The lessons from this exercise have important implications for Turkey's future economic performance, for its ability to converge to per capita income levels of developed countries, and for the viability of its current bid for European Union membership.

Global Growth Centres 2020

Substantiated, long-run growth forecasts are in the limelight following the New Economy disappointments and repeated crises in the emerging markets. With the help of Formel-G, we identify the sources of long-term economic growth and generate forecasts for 34 economies until 2020. India, Malaysia and China will post the highest GDP growth rates over 2006-20 according to Formel-G. Strong population growth, a rapid improvement in human capital and increasing trade with other countries allow average GDP growth of more than 5% per year. Ireland, the USA and Spain are the OECD economies expected to grow most quickly.