Strong Economic Growth Research Articles

A firm-industry analysis of services versus manufacturing

In the literature on the firm-industry debate to explain organizational performance the firm effect has been more supported than the industry effect by empirical studies, mainly focused on manufacturing firms and long time periods. Unfortunately, little attention has been paid to the service sector. In this paper we study separately manufacturing and services in a broad sample of Spanish companies. We observe that in manufacturing the firm effect outweighs the industry effect while in services the opposite is the case in a ten-year period. However, when we split the time horizon into two five-year sub-periods, this behavior only remains in the second one, of moderate economic growth. In the first one, of strong economic growth, the firm effect prevails for both manufacturing and services. These findings underline the importance of the industry effect for services, suggesting that such effect may have been underestimated in the literature, as well as that of the level of economic growth specially for the decision-making of practitioners.

Small and medium enterprises and economic growth in Algeria through investment and innovation

Small and medium enterprises play a vital role in ensuring the continuity and sustainability of economic development as they constitute an important starting point for economic growth, through their ability to provide job opportunities and their role in diversifying the industrial structure and assisting the main structures in production. These institutions operate at the national level and push them towards facilitating and continuity of their work, which made them of great importance in achieving development and embodiment at the national level. This study aims to highlight the role of small and medium enterprises in pushing the economies of countries towards development, through their contribution in various areas of development, as these institutions have become a strategic option and the most practical alternative to achieve balanced growth, and this can only be achieved with real support for these institutions. Small, and medium enterprises are an important element in economic development, as they are considered a major driver of the countries’ economy and a source for creating wealth and satisfying economic and social needs. They contribute to reducing the unemployment rate, raising the gross domestic product, creating an added value to the economy, and increasing the proportion of international trade exchanges. In completing our scientific research, we relied on a questionnaire distributed to small and medium-sized enterprises in the state of Oran. We also used a set of tools represented in the interview and observation. The study was based on 38 small and medium enterprises in the state of Oran. The obtained result showed the validity of the hypotheses. These institutions contribute greatly to the economic and social growth of the state, as we extracted from the obtained results. 68% of the studied sample contributes to raising the gross domestic product by 95% to creating an added value by 95℅, and 11% of the studied sample exports its products outside Algeria, This is what prompted Algeria to rely on small and medium enterprises to ensure strong economic growth, but this sector still has not risen yet to be a source of wealth and an engine for development for Algeria because there are several obstacles facing small and medium enterprises.

Key factors of organizational and management structures in the formation of competitive strategy

The state of organizational and management structures and the expected development in this issue is the subject of research, the outputs of which are presented in the article submitted. The research period covers 2016 - 2020; the test sample of enterprises (about 460 entities) includes all size categories and the manufacturing and service sectors. The research started in a period of strong economic growth and continues in the current period of economic downturn. Three research hypotheses were formulated. The first hypothesis concerning the existence of statistical dependence between the organizational and management structure of the enterprise and its size was confirmed. The remaining two hypotheses were rejected. Specifically, business managers did not identify the dominant departmental organizational structure as an instrument of profitability and sustainability. Similarly, the hypothesis that the enterprise managers did not consider Research and Development, Quality, and Investment departments as pro-growth tools were not confirmed, as the identified pro-growth tools are the Economic and Production departments and controlling. This result demonstrates the managers´ misunderstanding of the objectives, mission, and especially the function of an individual organizational unit in the corporate system. The conclusion of the paper presents the prediction for further development. Based on the obtained outcomes, a pro-growth organizational rule is defined. The main objective of all new management tools must be to ensure the production and provision of services to ensure the maximum possible satisfaction of customer requirements and to maximize the achieved margin. As confirmed by the literary research, this process has already started in the European Union countries. Many companies are fully implementing these principles in their daily management and decision-making practices.

Inclusive Growth of Jambi Province

Objective - Strong economic growth is an accomplishment that is always awaited and targeted by a country or region. However, whether or not this economic growth has been in line with the reduction in poverty, the decrease in unemployed people, and the provision of many and quality jobs is still in question. Hence, the problem that needs to be investigated is whether the province of Jambi has been in inclusive economic growth and what factors are calculated and analysed for inclusion. Methodology - The method and data used are the adaptation of the main variables used by the Asian Development Bank (ADB), and the measure of the quality of economic growth is assessed from the IGI (Inclusive Growth Index). There is no previous research that scrutinized the Inclusive Growth of Jambi Province. Findings - The results show that IGI of Jambi Province has an increasing trend during the 2016 – 2020 period, although it is stagnant at a satisfactory level of progress. In relation to the level of satisfaction in 2019, it experienced growth compared to the previous year accompanied by an increase in several sub-dimensions such as the sub-dimension of productive workforce, economic infrastructure, poverty, health, education, sanitation and social protection. Meanwhile, the level of satisfaction with economic growth grew negatively, as well as the sub-dimensions of gender equality and constant income inequality. Type of Paper - Empirical Keywords: Economic Growth; IGI; Inclusive Economic; Jambi JEL Classification: O11, O4

Environmental Regulations and CO2 Mitigation for Sustainability: Panel Data Analysis (PMG, CCEMG) for BRICS Nations

The relationship between income and pollution is contested, yet wealth alone is insufficient to regulate emissions, which necessitates environmental regulations. Even if inadequate environmental laws may overcome market failures produced by pollution’s negative externality, a thorough examination of their function in pollution management is critical. This research takes a step forward in offering a fresh viewpoint on the function of environmental laws in pollution reduction for BRICS (Brazil, Russia, India, China, and South Africa) nations to better understand the role of environmental regulations in CO2 emission mitigation. The research presented here uses panel data econometric methodologies to achieve this goal, using data from 1995 to 2018. In addition, to provide country-specific findings, the research employs a completely modified ordinary least squares estimator. Environmental laws provide a beneficial influence in reducing carbon emissions. According to the empirical findings, the present environmental regulation positively meets pollution reduction objectives in chosen nations. The environment Kuznets curve (EKC) between pollution and income is controlled by environmental restrictions. Climate change mitigation in BRICS nations is driven by strong environmental policies and economic growth.

What Factors Influence the Survival of Subsidised Start-ups for the Unemployed in Slovakia?

Purpose: The aim of the paper is to analyse the factors of sustainability of the public policy subsidising start-ups for the unemployed in Slovakia. Design/Methodology/Approach: The analysis assesses the sustainability of subsidies in the period 2012-2016 based on data provided by the Ministry of Labour and Social Affairs. Logistic regression was used to identify the key factors. Findings: Research shows that in times of economic growth, policies to support the self-employment of the unemployed are a particularly effective form of active labour market policy, especially in the more developed regions. On the contrary, when serving as a business support tool, they lead to very low survival rates of the subsidised companies compared to results of other studies. In terms of factors affecting this sustainability, the length of unemployment, the amount of support, as well as regional characteristics emerge as the most significant. Practical implications: The results allow for a better definition of the conditions for providing subsidies to the unemployed to start a business in the future, while also showing that this instrument leads to employment retention rather than to the promotion of entrepreneurial activities. Originality/value: The research was carried out under specific conditions that had been little explored so far. The policy was evaluated at a time of strong economic growth accompanied by a significant reduction in unemployment. Also worth noting is that it was carried out in a country with some of the most pronounced regional disparities, which made it possible to compare the impact of the policy in different starting conditions.

Australia’s superior skilled migration outcomes compared with Canada’s

AbstractAustralia and Canada are global exemplars of skilled migration policy, designed to have important effects on economic growth. This article assesses the development and outcomes of their permanent migration programmes for a range of regulated professions. We compare the matched census data from both countries in 2016 and then examine the key drivers of the major differences found through qualitative interviews. Although the trends in numbers and source countries and characteristics of skilled migrants are similar, their earnings relative to equivalent native‐born earnings are far lower in Canada than in Australia. This reflects the Australian government's greater power to initiate and drive policy reform agendas, early strategies designed to enhance foreign credential recognition and a heightened role for employers including through two‐step migration. Canada has recently announced significantly expanded migration intakes. These seem unlikely to lead to strong economic growth, unless entry requirements are tightened and more targeted support provided.

Postgraduate Professional Education in China: Control Mechanisms and Learning Process

China’s strong economic growth is undoubtedly due to a set of government initiatives, among which the priority projects are the reform of the higher education system. Since the 80s of the last century, the state has paid special attention to the training of scientific personnel. Thanks to far-sighted state planning and strong budget financing, China has created a competitive national system of postgraduate professional education almost from scratch. As a result, if only 9 postgraduate students were trained in 1978, then in 1985 – already 17004, in 1998 – 47077, and in 2018 – 604368. The number of doctorates degrees awarded from 2005 to 2018 more than doubled: from 27,677 to 60,700.The important factors in the formation of the system of postgraduate education is the promulgation of national laws and regulations governing this area of educational activity, a well-built mechanism for managing the work of postgraduate studies and a strict system to control all stages of the educational process for masters and doctoral students. Therefore, this article focuses on the organization of the learning process in Chinese universities and academic institutes, as well as the management mechanism of the national system of training scientific personnel.In addition, according to the data of China's Ministry of education, official statistical information, publications that are publicly available on the Chinese Internet, as well as scientific articles published in major publications around the world, it is shown how the number of universities and academic institutions that train masters and doctoral students, as well as the number of students, admission and graduation of specialists have changed over the past ten years.

СУТНІСТЬ ПОТЕНЦІАЛУ ПОДОЛАННЯ НАСЛІДКІВ ГЛОБАЛЬНОЇ ЕКОНОМІЧНОЇ КРИЗИ

The technical structure of society and the existing concept of capitalist economic development cannot meet the current challenges of the XXI century, so it is important to consider the anti-crisis potential of countries, taking into account the conditions of its formation and use. Radical changes in the conditions of formation and attraction of anti-crisis potential require clarification of its essence taking into account the adaptability of public administration, technical capabilities of social production, as well as the human ability to make complex decisions on more efficient combination of resources in uncertainty. In terms of the 6th and 7th technological system, the "potential of regional development" is proposed to be defined as the ability of societies of certain territories to create metacognitive technologies to increase resource efficiency and the ability of societies to quickly integrate into the digital world. The development potential provides the system's ability to adapt to crisis phenomena and maintain the trend of economic growth. The anti-crisis potential (as additional), is involved in the impact of crisis phenomena and helps to overcome the negative impact that has led to a sharp decline in economic growth. A characteristic feature of the "crisis potential" concept is the ability to attract additional resources during the crisis, with the decisive role played by the level of adaptability of public administration, technical capabilities of social production, as well as the ability of labor to make complex decisions in uncertainty. Anti-crisis potential is an opportunity that in the process of anti-crisis management is transformed into an effective mechanism for counteracting crisis phenomena. In countries with strong economies (USA, Austria, Germany, France, Spain) there is a significant drop in GDP per capita during the global financial crisis of 2020, which was triggered by the coronavirus SARS-CoV-2. At the same time, there are countries (Israel, China), whose economic condition not only has not deteriorated, but undergone even further sustainable development. This trend is due to the fact that for some systems the crisis is not only a threat, but also provides opportunities for the formation of new combinations of resources, which leads to a significant economic effect and further development. If we conduct research the trends of countries' response to global crises and exit from crises, we can see different trajectories. It has been proven that some countries in the world are strengthening their economies after economic crises, so the term "economic potential of the global crisis" has been proposed. The economic potential of the crisis is the possibility for strong economic growth in the region, the ability of the national economy to achieve a strategic goal by using changes in the international market, changing the positions on the international arena.

Peningkatan Kapasitas Sumber Daya Manusia Melalui Pembangunan Inklusif Dalam Mendukung Desa Wisata Budaya Di Desa Plunturan

Desa Plunturan merupakan salah satu desa yang terletak di Kabupaten Ponorogo memiliki banyak produk budaya dan masih dipertahankan. Salah satu produk budaya desa tersebut adalah Reog Ki Onggo Pati. Reog Ki Onggo Pati adalah kesenian yang dijadikan ikon Desa Plunturan karena masih menjunjung tinggi orisinalitas Reyog. tujuan penelitian ini adalah untuk menganalisis peningkatan kapasitas sumber daya manusia (SDM) melalui pembangunan inklusif dalam mendukung Desa Wisata Budaya di Desa Plunturan Kecamatan Pulung Kabupaten Ponorogo Jawa Timur. peneliti menggunakan jenis penelitian kualitatif dengan pendekatan deskripstif. Fokus penelitian yang menjadi batasan penelitian merupakan hasil dari beberapa kajian literatur yang sesuai dengan kondisi eksisting Desa Plunturan yaitu a) sumberdaya untuk pembangunan; b) ketenagakerjaan yang layak; c) pertumbuhan ekonomi yang kuat dan berkelanjutan, dan d) meningkatnya standar penghidupan. Berdasarkan hasil penelitian dan pembahasan yang dilakukan oleh peneliti, dapat ditarik kesimpulan bahwa upaya pengembangan kapasitas SDM melalui pertumbuhan inklusif dalam mendukung Desa Wisata Budaya di Desa Plunturan sudah berjalan tetapi masih sangat lambat. Sumber daya untuk pembangunan Desa Wisata Plunturan belum siap dalam segala aspek. Jika sumber daya kuat, maka pertumbuhan ekonomi yang berlangsung akan berkelanjutan sehingga terciptanya redistribusi jangka panjang. Sedangkan dilihat dari aspek ketenagakerjaan, belum terkoordinasi dengan baik oleh Pemerintah Desa, BUMDes dan Pokdarwis serta lembaga pemerintah desa lainnya dalam ruang lingkup pengembangan Desa Wisata Plunturan sehingga pertumbuhan ekonomi di desa sangat lambat. Hal ini berakibat lemahnya daya saing antar desa dan/atau daerah dalam hal wisata budaya. Aspek-aspek tersebut jika berjalan dan terkoordinasi dengan baik, maka outputnya adalah dapat meningkatkan standar penghidupan Desa Plunturan.

Air Quality over China

The strong economic growth in China in recent decades, together with meteorological factors, has resulted in serious air pollution problems, in particular over large industrialized areas with high population density. To reduce the concentrations of pollutants, air pollution control policies have been successfully implemented, resulting in the gradual decrease of air pollution in China during the last decade, as evidenced from both satellite and ground-based measurements. The aims of the Dragon 4 project “Air quality over China” were the determination of trends in the concentrations of aerosols and trace gases, quantification of emissions using a top-down approach and gain a better understanding of the sources, transport and underlying processes contributing to air pollution. This was achieved through (a) satellite observations of trace gases and aerosols to study the temporal and spatial variability of air pollutants; (b) derivation of trace gas emissions from satellite observations to study sources of air pollution and improve air quality modeling; and (c) study effects of haze on air quality. In these studies, the satellite observations are complemented with ground-based observations and modeling.

Direct flights and cross-border mergers & acquisitions

Prior evidence indicates that proximity increases investments resulting in stronger economic growth. The introduction of a non-stop direct flight between two locations in different countries allows for faster travel and a lower cost of acquiring information, potentially facilitating acquisitions abroad. We examine this channel by considering cross-border mergers and acquisitions (M&A) activity between China and the U.S. Our results suggest that direct flights matter most in target selection. Direct flights are more important for M&A activity where information asymmetry is greater and for first time acquirers in the market. We demonstrate that endogeneity is unlikely to drive the results.

Hutanomics: Digital Economy Innovation for Strengthening Forestry Economic Resource Management

This research trying to explains the management of the nation's economic development based on preserving the environment, which is the forest. This is because economic development has always been identified with environmental damage, including deforestation. As one of the countries with the largest tropical rainforest globally, Indonesia is automatically one of the focuses on its economic development is utilizing existing forestry resources. This causes a massive deforestation process, so the international community pressures Indonesia by accusing Indonesia of being one of the world's countries that cause climate change. Therefore, currently, the Government of Indonesia has established a Green Economy Development Program to overcome the problem of climate change caused by economic activities. The idea of Green Economic Development is essential to discuss because of the nation's priority for strong economic growth and sustainable development. One form of green economic development is to introduce the hutanomics concept, a concept of economic development management that is harmonized and based on the interests of forests and nature, which the author has adopted as the theme of this research. With a qualitative approach, the descriptive method, the researcher explains the management of the nation's economic development based on preserving the environment, which is the forest. Research findings show that economic development does not always have to come at the expense of the environment like deforestation. One of the concepts introduced is Hutanomics (Forest Economic), a management concept of economic development by aligning economic interests with the interests of forests and nature. Environmental impact analysis is critical to Hutanomics because it involves the claims of nature and the necessity of a collaboration between the government, the corporate world, and the community, each with their own functions

Links between White Settler Colony in Quebec and the Barriers to the Economic Integration of Skilled Latin American Immigrants

Although Quebec has gone through a period of strong economic growth, it is now struggling with a new labour shortage caused by the shrinking labor pool. Ironically, many foreign-educated immigrants face difficulties associated with entering the labour market and integrating into the workforce. Specifically, recent immigrants from African, Asian, and Latin American countries, who are considered part of visible minority groups, have faced barriers to entry. This paper focuses on the Latin American economic immigrant group and argues that the gap on human and social capital of minority group immigrants and majority group Quebecers cannot be explained simply by analyzing racially motivated actions. Rather, Quebec as a White colonial settler society plays a much more important role in making it very difficult for skilled immigrants to get equal levels of income. By analyzing postcolonial concepts, this document underlines how language politics, notions of citizenship and global neoliberal capitalism have shaped a harsh labour market that contributes to structural causes for inequality among skilled Latin American immigrants in Quebec.

Policies to Help the Working Class in the Aftermath of COVID-19: Lessons from the Great Recession

The COVID-19 pandemic and the associated government-mandated shutdowns caused a historic shock to the U.S. economy and a disproportionate job loss concentrated among the working class. While an unprecedented social safety net policy response successfully offset earnings losses among lower-wage workers, the risk of continued and persistent unemployment remains higher among the working class. The key lesson from the Great Recession is that strong economic growth and a hot labor market do more to improve the economic well-being of the working class and historically disadvantaged groups than a slow recovery that relies on safety net policies to help replace lost earnings. Thus, the best way to prevent a “k-shaped” recovery is to ensure that safety net policies do not interfere with a return to the strong pre-pandemic economy once the health risk subsides and that progrowth policies that incentivize business investment and hiring are maintained.

The great stagnation and environmental sustainability: A multidimensional perspective

AbstractSince the 2008/09 Great Financial Crisis, we have witnessed a prolonged period of persistent global economic slowdown termed the “Great Stagnation”. This study examines how this “new normal” is associated with critical environmental dynamics (i.e., biodiversity, water, forest, agriculture, emissions) in areas and groups with different socio‐environmental characteristics (i.e., income groups, continents, forest cover, biome, environmental performance index). Mixed results are shown. For instance, we find a deterioration in terrestrial and marine biodiversity, especially in middle‐ and high‐income countries in Africa and Europe. This includes a reduction in the global fish stock, driven by countries in Africa. In contrast, the Great Stagnation is associated with reductions in PM2.5 (lower‐ and upper mid‐income countries), CH4 emissions (upper mid‐income countries and Europe), forest loss (upper mid‐income countries and Asia), and increases in species habitat index (across most groupings). Our evidence indicates that periods of economic slowdown, such as the great stagnation, on their own cannot ensure a transition to a sustainable socio‐environmental system and may be associated with significant negative environmental effects. Managing our transition to sustainability will require concerted policy efforts across multiple environmental domains, not only on carbon emissions, and during periods of both strong and weak economic growth rates.

The Outlook for Endowment and Pension Funds

Because the 60–40 allocation is very simple to implement (subject to rebalancing rules)—and because it has generated strong absolute and relative risk-adjusted returns over time (i.e., it had a significantly higher Sharpe ratio than did an allocation to either equities or bonds alone)—it has long been a benchmark asset allocation method for endowment and pension fund managers. Thus, it is likely that endowment and pension funds will perform well if the 60–40 allocation performs well (and vice versa). This article provides evidence that the drivers of US equity market returns have changed over time. Specifically, while equity returns are more rate driven in earlier periods (i.e., lower rates are better for equities), they are more economically driven in more recent periods (i.e., a stronger economy is more compatible with equities). Therefore, if the US economy remains sluggish and rates are still low, the 60–40 allocation is likely to perform more poorly in the future than in the past, and, by extension, so are endowment and pension funds. <b>TOPICS:</b>Foundations &amp; endowments, portfolio theory, portfolio construction, performance measurement <b>Key Findings</b> ▪ In the future, endowment and pension fund returns will be primarily driven by the performance of risk assets. It follows that endowment and pension funds will only be able to achieve their objectives if the future environment is favorable to equities. An analysis of recent years’ returns reveals that the only environment in which equities are expected to perform well in the future is one of sustained strong economic growth coupled with accommodative monetary policy. In the absence of such an environment, endowments and pension funds may be unable to sustain planned spending levels. ▪ Individual investors’ future asset allocation choices will necessarily involve real trade-offs. In the past, the 60-40 allocation generated equity-like returns with bond-like volatility, so investors who chose the 60-40 allocation had ‘it all’: high returns and low volatility. However, in the future, the 60-40 allocation will likely generate sharply lower volatility but also meaningfully lower returns, relative to a 100% equity allocation. Investors focused on reducing risk may still find the 60-40 allocation useful, but investors with funding needs and higher returns targets will need to increase their allocation to risk assets. ▪ Individual investors allocating to illiquid risk assets need to be aware that endowments and pension funds will likely significantly increase their allocations to illiquid risk assets in an attempt to achieve their required returns. The magnitude of these institutional inflows may lead to lower returns for illiquid risk assets, as is often the case when large amounts of capital chase a more limited opportunity set.

Macroeconomic Research in Low-income Countries

Despite strong economic growth since 2000, many low-income countries (LICs) still face numerous macroeconomic challenges, even prior to the COVID-19 pandemic. Despite the deceleration in real GDP growth during the 2008 global financial crisis, LICs on average saw 4.5 percent of real GDP growth during 2000 to 2014, making progress in economic convergence toward higher-income countries. However, the commodity price collapse in 2014–15 hit many commodity-exporting LICs and highlighted their vulnerabilities due to the limited extent of economic diversification. Furthermore, LICs are currently facing a crisis like no other—COVID-19, which requires careful policymaking to save lives and livelihoods in LICs, informed by policy debate and thoughtful research tailored to the COVID-19 situation. There are also other challenges beyond COVID-19, such as climate change, high levels of public debt burdens, and persistent structural issues.

Global Financial Crises and Its Impact on India

Indian economy is experiencing a downturn after a long spell of growth. Industrial growth is faltering, the current account deficit is widening, foreign exchange reserves are depleting and the rupee is depreciating because of financial crises .The crises originated in United States but the Indian Government has a reason to worry because there is a potential adverse impact of the crises on India. The global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market. Currently India has one of the largest Developing countries in the world. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. This paper provides an overview of global financial crisis (GFC) and its impact on the Indian Economy.

Foreign Direct Investment and Economic Growth in Kenya: An Empirical Investigation

ABSTRACT In this paper, the casual relationship between foreign direct investment (FDI) and economic growth in Kenya during the period 1980–2018 is examined. In an attempt to address the omission-of-variable bias, which has been detected in some previous studies, two variables, namely money supply and trade, are used as intermittent variables, thereby leading to a system of multivariate Granger-causality equations. Using the ARDL bounds testing approach, the results show that there is a unidirectional causal flow from economic growth to FDI in Kenya. These results apply, irrespective of whether the causality is conducted in the short run or in the long run. Based on these results, it can be concluded that the current burgeoning FDI inflows that Kenya has attracted in recent years are largely driven by the strong economic growth and prudent macroeconomic policies that the country has been pursuing in recent decades. Policy implications are discussed.