Subsequent Economic Growth Research Articles

Strategies of the Investment and One-Stop Integrated Service Office in Increasing Investment in Jember Regency

Economic growth in a region is influenced by investment. So that the existence of business actors either on a macro or micro scale contributes to subsequent economic growth. Therefore, the government must be responsible for the investment process so that all parts of society benefit from investment. This research argues that an adequate licensing system is interesting to study. This is because an adequate licensing system has a huge impact. For example, investment growth can increase the amount of goods or services sold, create added value, increase labor, and other economic resources. One of the objectives of this research is to find the strategies used by the efforts of the One-Stop Investment and Integrated Services Agency (DPMPTSP) in increasing investment in Jember Regency. In addition, this study also wanted to find out the factors that support and hinder the efforts of the One-Stop Investment and Integrated Services Office to increase investment in Jember Regency. The results of this study state that the Jember Regency government has created an investment strategy and improved the quality and skills of the community through training. Investors and businesses will better understand their responsibilities to report investment activities and conduct complete investment promotion activities. An additional strategy proposed by the DPMPTS of Jember Regency is local regulations relating to the investment sector. This research uses Brayson's theory explaining that strategic planning is conducted using five indicators: establishing the vision, mission and goals of the organization; conducting an analysis of the internal and external environment; finding strategic issues; and then creating a strategy. The conclusion shows that of the five measurement criteria four of them run satisfactorily. While one of them is not good, namely the strategy developed by DPMPTSP Jember Regency is less than optimal as in the case of the absence of local regulations that can support future investment, the absence of a potential map and opportunity map, as well as limited internal and external human resources.

Relationship between capital accumulation and production growth in the interpretation of the R. Solow's model of economic growth

The study of economic growth factors is of greatest interest in modern economic science. The level of economic development is the key to solving social problems and improving the quality of life of the population. This study examines the impact of capital accumulation on economic growth. The author uses a neoclassical approach to the analysis of economic growth factors. Capital accumulation in the main sectors of the economy – mining, manufacturing, agriculture – is considered as a factor indicator. The main hypothesis of the study is that currently, the accumulation of fixed capital in important sectors of the Russian economy is not enough to significantly increase labor productivity and subsequent economic growth. This requires not only a qualitative, but also a quantitative assessment of the capital accumulation factor. Based on the results of the study, conclusions of practical importance were drawn. Firstly, an increase in capital per 1 worker by 1% leads to an increase in labor productivity by more than 1%, that is, the growth in labor productivity outpaces the growth in capital per 1 worker. Consequently, the capital-labor ratio can be considered as an important factor of economic growth. Secondly, a negative factor should be considered the lag in the pace of production renewal from the pace of withdrawal of fixed assets in industry and agriculture in some regions of Russia, which dictates the need to implement special programs in certain regions of Russia to intensify the development of manufacturing and agriculture. Thirdly, increasing the rate of capital growth per 1 worker for higher growth of labor productivity is advisable only in the manufacturing industry and agriculture, which is associated with the currently lower rates of capital growth per 1 worker in these industries compared to the mining industry.

The impact of the spatial population distribution on economic growth: Evidence from the United States

AbstractWe introduce a new class of measures called spatial population concentration (SPC) designed to quantify how many people live on average within a given radius of every person within a geographic area. The distinguishing feature relative to existing measures is that ours are the first to satisfy scale invariance, replication invariance, sensitivity to transfers, aggregativity, sensitivity to neighborhoods, invariance to uninhabited regions, concurrently. We calculate the SPC measure at the US county level for various radii and identify that the strongest relationship with subsequent economic growth can be found for a 25‐km radius. Interacting SPC with diverse infrastructure metrics does not alter the optimal radius. This indicates that regional policies such as infrastructure projects which influence density should strategically target the 25‐km distance range to maximize the growth impact. We also show that the importance of SPC has declined over time.

Top-end inequality and growth: empirical exploration of nonlinearities and the time dimension

AbstractUsing the series of the top 1% income shares in 137 countries, I examine the relationship between top-end inequality and subsequent economic growth from the 1920s to the 2010s. These data enable a versatile exploration of various time horizons. To address concerns regarding chosen functional forms, I employ penalized spline methods to accommodate potential nonlinearities. Empirical findings suggest that the relationship between top-end inequality and subsequent growth is complex, contingent upon both the investigated time horizon and the level of economic development. I find some evidence for a positive link at medium levels of economic development, with this positive link being more pronounced in short- to medium-term associations. I also find that the positive medium-run association weakens as economic development advances. In advanced economies, a negative (or nonpositive) medium- to long-term relationship emerges between the top 1% income share and growth in many settings. Furthermore, I conclude that longer-run associations need to be investigated further.

Scientific research, technology, and economic growth in a cross section of countries

ABSTRACT This paper aims to investigate the role of scientific research in the development of technology advancement and subsequent economic growth. The publication data collected from Science and Nature consists of 31,615 lines in Excel. Scholars from 3,790 universities and research institutes in 118 countries have published in the two premier journals over the period 2012–2019. Using these publication data, we explore two transmission channels: first, research output can be used for the development of innovations and inventions; second, such a technological advancement promotes economic growth. Instrumental variable (IV) estimation suggests that scientific publications have a causal effect on the enhancement of advanced technologies; the technology enhancement, in turn, has a causal effect on economic growth. Empirical evidence in direct support of these two relationships provide major incentives for governments and business firms to invest more towards future research in the fields of science and technology.

Exploring residents’ perceptions of the socioeconomic impact of sport tourism

The main objective of this study is to investigate and assess critical factors related to the socioeconomic impact of sports tourism on territorial growth. The study highlights the significance of residents' perceptions regarding the economic and social consequences of hosting sporting events in gaining public support for such endeavours. This research relies on primary data collected from diverse regions throughout Italy via a specialized Google Module, with a particular focus on the intersection of sports and tourism. Notably, 84% of the sampled population expresses support for the idea that hosting sporting events can yield potential economic benefits for the hosting region. While these initial findings are preliminary, they strongly indicate that the population is inclined towards organizing sporting events in their own regions. This inclination creates opportunities to consider long-term investments in hosting sporting events, which can stimulate tourist influx and subsequent economic growth in the involved territories.

Fast and Curious: ‘The Swiss Development Puzzle’. The Institutional Roots of the Success of Industrialization

ABSTRACT The article investigates the institutional roots of the Swiss organized capitalism that contributed to the success of its industrialization and its subsequent economic growth during the second industrial revolution (1880–1913). Recent literature underlines the link between public and private actors and shows that the second industrial revolution in Switzerland owed its success to state-led organized capitalism. If the majority of studies analysed in detail one or more components of the Swiss organized capitalism, to our knowledge, there are no works seeking to explain the (institutional) construction of this organized capitalism by mobilizing a large number of factors in a single theoretical frame of reference. Using the Regulation Theory approach, this article sheds light on the institutional construction of the Swiss organized capitalism. We show that it rested on original institutional arrangements driven by the necessity to survive on external markets. We therefore demonstrate that these arrangements also enabled Switzerland to successfully deal with the production of essential public goods supporting both industrialization and national social bonds required to promote political unity.

Public social spending, government effectiveness, and economic growth: an empirical investigation

ABSTRACT This paper reports the results of an empirical investigation into the relationships between public social spending, government effectiveness, and economic growth. Using panel data covering 132 developed and developing countries over the 2008 to 2019 period, we find significant and complementary relationships among the variables through fixed effects, system GMM, and instrumental variable estimation. All three components of public social spending, including social security benefits, education expenditure, and health expenditure, have a significant and positive impact on subsequent economic growth. Government effectiveness has a direct growth-enhancing effect as well as a mediating and positive effect on the association between public social expenditures and economic growth. Thus, governments accelerate the positive impact of public social spending on economic growth. These relationships hold for countries at all income levels, while the channels predicting a positive social spending – growth relationship are stronger in high-income countries than lower-income countries. To stimulate inclusive growth, governments must actively design and implement social spending policies. These, however, should be complemented by concomitant efforts to strengthen the quality of public institutions, which exerts a substantial impact on the social spending – growth relationship.

Social reproduction process in colonial Hong Kong: The shifting gender relations of the intra-east Asian economy

The purpose of this paper is to discuss the shift of gender relations behind the reconfiguration of the social reproduction in colonial Hong Kong. To achieve this, the focus is on the cross-border transfer of labor, goods, services, and information in Hong Kong and neighboring areas of East Asia. Firstly, up to the 1950s, Hong Kong’s reproductive sphere attracted the spinster women who had worked for silk filatures in Canton before Japan’s invasion. While these women took care of the everyday needs of the colonial masters and other upper-class families, they formed trans-local and trans-generational sisterhoods in order to sustain their own lives financially and physically. By the 1960s, new waves of Chinese migrant women gradually replaced the spinsters, although they soon turned to the manufacturing sector for better working conditions. Meanwhile, consumerism was encouraging Hong Kong families to introduce home appliances, typically made in Japan. The installment payment system enabled people to realize their aspirations for modernity, which in turn resulted in the reallocation of women’s labor in the reproductive sphere. By critically tracing such historical trajectories, we can understand that colonial Hong Kong’s industrialization and its subsequent economic growth was conditioned in the gendered process of the social reproduction.

Ping times: Relating economic growth to internet connectivity

Since the last decade of the twentieth century, internet access has become a sine qua non for businesses. IT as well as online commerce have been growing fast over the past decades, and many other sectors also depend more and more on internet access; even industrial services such as design and warehousing, to name but two examples, rely on and benefit from cooperation at a distance. The global boost in teleworking and particularly teleconferencing following the Covid-19 pandemic has shown how important reliable connections are. Governments have over the past decade invested in improving their connections to the worldwide internet. Yet it is not clear whether economic clustering in fact is attracted to well-connected locations. We therefore test empirically whether the level of connectedness to the global IT infrastructure has a correlation with subsequent economic growth in sectors that use such infrastructure, or even depend on it. We do this using a panel of US cities, in which we zoom in on a few sectors that can use the infrastructure and compare them against the background of other sectors in the same cities. As a measure for the quality of local connections, we employ a unique method: we use the latency (ping times), a network metric usually spurned in favour of the more common bandwidth.

Central planning casts long shadows: new evidence on misallocation and growth

ABSTRACT We analyze the link between resource misallocation resulting from central planning and subsequent long-term economic growth under a market-based system. We construct two novel data sets for Poland. We show that misalignment of resources under central planning coincides with lower subsequent economic growth, despite the fact that market mechanisms are reinstated. This result is robust even three decades after the collapse of central planning. We provide several explanations for these patterns.

МАССОВЫЕ НЕИНФЕКЦИОННЫЕ ЗАБОЛЕВАНИЯ ДЕТЕЙ И ФАКТОРЫ СРЕДЫ ОБИТАНИЯ В ПЕРИОД ПОСТСОЦИАЛИСТИЧЕСКОЙ ТРАНСФОРМАЦИИ

The contributions of environmental factors to the formation of long-term dynamics of the incidence of mass non-communicable diseases and the corresponding adaptation processes in children of industrial and non-industrial territories of the Irkutsk region during the reforms and transformational crisis of the 1990s and subsequent economic growth are analyzed. Proposed measures to reduce the incidence in the region

Women’s political empowerment and economic growth

We investigate whether and how women’s political empowerment relates to technological change, the main driver of long-term economic growth. We argue that three aspects of empowerment – descriptive representation, civil liberties protection, and civil society participation – advance technological change and thereby economic growth through (a) increasing the number and variability of new ideas introduced in the economy and (b) improving the selection of more efficient ideas. Drawing on data from 182 countries and 221 years, we test various implications from our argument. Women’s political empowerment is positively related to subsequent economic growth. This relationship persists across various model specifications and when accounting for different potential confounders. The three sub-components of empowerment are also, individually, related to growth, although not as strongly as the aggregated concept. The relationship is retained across different contexts, but is clearer for “Non-Western” countries and in earlier time periods. We also find evidence that women’s political empowerment enhances technological change.

Imported Intermediate Goods and Economic Growth

Purpose - This research aims to provide empirical evidence that highlights the importance of imported intermediate goods in long-term economic growth. To this end, this paper develops an index that measures the productivity gains associated with a country’s intermediate goods imports using highly disaggregated trade data. Design/methodology - The basic hypothesis is that countries sourcing higher-productivity (or higher-quality) inputs from developed economies derive a larger benefit from foreign R&D. To explore this hypothesis, standard cross-country growth regressions are performed using the highly disaggregated data from the United Nations (UN) Commodity Trade Statistics Database (COMTRADE). To address the endogeneity issue, I apply an instrumental variable (IV) approach. Findings - The results of this study demonstrate that the index predicts subsequent economic growth in middle- and low-income countries. This finding is consistent with previous studies that have argued that developing countries can achieve substantial productivity gains by importing intermediate inputs from developed countries. By contrast, there is no evidence of a significant association between the index and economic growth in high-income countries. Originality/value - This paper contributes to our understanding of the causal relationship between international trade and economic growth. From an economic policy perspective, the results suggest that developing countries with limited technology endowment can boost growth from input-tariff liberalization.

Impact of Institutions on Economic Growth Across OECD Countries

This paper provides empirical evidence in support of the view that quality of institutions is an important determinant of medium and long-term growth in OECD countries. Regarding the methodology, a panel data analysis with two-stage least squares (2SLS) estimation will be used to account for the endogeneity of the institutional variable. Besides institutional quality, we also consider other relevant determinants of potential growth such as the initial level of GDP per capita, public debt, and structural variables typically referred to in economic growth theory. Our estimation results show a positive impact of institutions on subsequent economic growth: an increase in 1 point in institutional quality leads to an estimated increase of 16.88 percentage points in potential GDP per capita growth, in the case of high-debt countries. With this, we notice a particular rel- evance of institutions in countries with high levels of debt. Therefore, our findings support the necessary attention to the institutional tissue of societies since improvements in institutional quality can subsequently improve economic growth.

‘[La casa] non è più sexy in Italia.’ The absent politicization of housing in Italy, insights from Turin

During the years of economic crisis and austerity, and the subsequent economic growth dependent on real estate and tourism, housing has returned into the spotlight on the political agenda in Southern European countries and cities, where activists and social movements scaled up their struggles and created bridges with institutional actors, fostering policy change. The latter, however, did not happen in Italy. In this article, based on exploratory case study research carried out in the city of Turin, we present three themes that help explain what we call the 'absent politicization' of housing in Italy during the last decade: a multi-actor, multilevel housing policy capable of defusing specific problems; the absence of bridges between politicized and institutional actors; and the role played by party-politics, with attention to 'populist' Movimento 5 Stelle in power in Turin. By focusing on differences with Southern Europe, we contribute to overcoming dichotomies that have long dominated comparative housing studies; and contribute to linking housing studies with contentious urban politics in the post-crisis years.

Innovation‐adjusted economic complexity and growth: Do patent flows reveal enhanced economic capabilities?

AbstractUnderstanding economic growth has been a primary pursuit for generations of economists. Hidalgo and Hausmann (2009) (Proceedings of the National Academy of Sciences, 106, 10570–10575) charted new territory in this pursuit by using bipartite international trade networks to characterize the economic complexity of a country based on the capabilities implied by the products it exports. The resulting Economic Complexity Index (ECI) correlates strongly with income levels and predicts subsequent economic growth with some statistical precision. We propose an innovation‐adjusted ECI (i‐ECI) that uses a high‐resolution patent–trade concordance to construct trade networks weighted by domestic and international patent application flows. The i‐ECI thus reflects firms’ decisions about where to seek patent protection on industry‐specific inventions, allows for heterogeneity in the relative importance of patenting across industries, and implicitly captures firms’ perceived innovation potential in the recipient countries. Although the i‐ECI is highly correlated with the ECI (correlation coefficient greater than 92%), it is a stronger and more statistically precise predictor of economic growth than the unadjusted ECI.

Анализ современного состояния инвестиционного климата в России

The general economic situation of the countries can be characterized by one important factor – the investment climate. A favorable investment climate is the most important condition for attracting investment flows and subsequent eco-nomic growth in the country. Important criteria for making decisions in the field of investment activity are the assess-ment of the investment climate at the macro level. The article analyzes the current state of the investment sphere and the investment climate in the Russian Federation. The study provides an assessment of the dynamics of the number of foreign direct investment projects in the country from 2015 to 2019, the main investment donor countries for Russia as of 2019, and the most attractive industries and sectors of the Russian Federation for 2010–2019. The article considers the main regions-recipients of foreign investments. The study contains an analysis of the implementation of investment projects in the Russian Federation as of 2019. When studying the investment climate of the Russian Federation, it is necessary to take into account the corona virus pandemic, since this crisis could not but affect the volume of invest-ments and the implementation of investment projects. That is why the data for 2020 are considered separately: the impact of the corona virus infection on the implementation of investment projects, the factors of the corona crisis af-fecting investment flows, and the forecast state of the investment market at the end of 2021. The article presents the megatrends that have intensified after the pandemic and affect the investment climate of countries.

Impact of 1998 Economic Crisis on the Dynamics of Market Reforms and the Privatization Process in Russia (on the Example of St. Petersburg)

The impact of the 1998 financial crisis on the dynamics of market reforms and the privatization process in Russia and St. Petersburg is examined in the article. The activity of the government aimed at curbing the crisis tendencies in the first half of 1998, as well as the activity of the Cabinet of E. M. Primakov on the reanimation of the Russian economy in September — December 1998, is analyzed. The main reasons for the default, the impact of the crisis on privatization activity, the state of industrial enterprises, the banking sector, the transformation of integrated business groups, the level of welfare of the population, the state of relations “center-regions” are considered, and the social reaction to these changes is investigated. The state of the industry is revealed on the example of St. Petersburg enterprises. The approaches of the government of E. M. Primakov to the privatization policy are investigated. The features of personnel policy in the Ministry of State Property of the Russian Federation and the Committee for the Management of City Property of St. Petersburg are considered. The study of the causes and consequences of the default showed that this event became a key event in the development of the Russian economy, significantly influenced the pace of privatization activity and the state of financial and industrial groups, and also became the starting point for subsequent economic growth.

Was China’s Send-down Movement Really a Blessing for Rural Education and Economic Development?

Chen et al. (2020) claim to have found a positive causal effect of the send-down movement on rural education during China’s Cultural Revolution. The paper also infers that the movement made the contribution of human capital accumulation in rural areas to China's subsequent economic growth in reform era. We demonstrate that the claimed finding and its inference can be challenged on both factual and methodological grounds. In particular, once the educational attainment is coded by actual schooling-year requirements set during the Cultural Revolution, the estimated effects of send-down youths on rural education become negative and statistically insignificant. We also question the authors’ choice to only consider marginal gains in rural schooling without assessing the trade-off of the much larger losses in human capital and social economic costs of the movement.