Theory Of Economic Development Research Articles

Cultural Innovation in Indonesia as a Development of the Creative Economy

Culture is a part of life that regulates the norms and habits of society. Culture takes two forms: material culture and non-material culture. Through the Creative Economy Agency, the creative economy has been promoted as one of the new pillars of the Indonesian economy. This study aims to analyze the culture-based creative industry as an option for advancing the creative economy in Indonesia. This study applies the theory of economic development by Joseph Alois Schumpeter to emphasize the creativity of entrepreneurs in using existing production factors to support economic activity. Data was collected from secondary data related to the cultural and creative economy. The results show that the creative industry in Indonesia has emerged as the answer to the creative economy system and has also shown rapid development. Practically, in Indonesia, abundant opportunities exist for a culture-based creative economy, spanning various sectors such as arts and tourism, awaiting innovation by industry actors. Government facilitation and increasing engagement from individuals further support this burgeoning creative landscape, aligning with the Ministry of Tourism and Creative Economy/Tourism and Creative Economy Agency’s mission to bolster Indonesia's economy by 2030 through successful synergy between government and industry

FORMATION AND EVOLUTION OF THE THEORY OF REGIONAL ECONOMICS IN CHINA

Improving the efficiency of China's regional economy is inseparable from the development of regional economic theory. The article periodizes European regional economic theories and analyzes in detail the role of the traditional theory of location, the theory of regional economic development and the theory of new economic geography. It has been proven that the European scientific school had the strongest influence on the formation and development of the Chinese theory of regional economics. A periodization of the development of the theory of regional economics in China has been carried out. Four periods are identified and studied: the period of the theory of balanced development of regional plans (1949–1977); the period of the theory of unbalanced development of the regional economy (1978–1999); period of development of the theory of coordinated regional economic development (2000–2011); a period of high-quality regional economic development (from 2012 to the present). The formation and development of Western and Chinese regional economic theories are separately outlined, their comparative characteristics are carried out from the point of view of research perspective, research paradigm, research content and development model.

Pareto’s legacy in the Italian tradition: the case of mathematical economics

AbstractPareto’s personality had a great influence on the evolution of economic theory in the last century at least in the Italian context. At the beginning of the twentieth century a small but combative circle of followers aimed to defend and spread the new Paretian approach based on the idea of general economic equilibrium. Paretian scholars were well recognizable in the Italian context for their contributions to mathematical and statistical aspects. The purpose of this contribution is to outline the essential features of the Italian Paretian school in the field of pure economics or as we would say today of mathematical economics. This favorable position of the Italian tradition in the field of mathematical economics was basically due to two circumstances. The first was represented by the legacy of Pareto and his school while the second was to be found in the fact that among the students of Pareto there was a pure mathematician of great value Luigi Amoroso. We see then that an important voice even if poorly valued was that of Bruno de Finetti who published a remarkable series of articles on mathematical economics in the second half of the 1930s. After World War II the Paretian tradition in this field weakened considerably and effectively disappeared internationally.

CONTEXTUALISING ENTREPRENEURSHIP AS A PANACEA TO YOUTH UNEMPLOYMENT IN SOUTH AFRICA

Youth unemployment has bewildered governments across the globe, both in developed and emerging economies countries, with South Africa being no exception. This is captured through the accelerating youth unemployment rate in the country. Considering the positive contributions of excessive youth entrepreneurship policies in other countries, this paper, through the lenses of Schumpeter’s 1934 economic development theory, demonstrates that through entrepreneurship, the South African government should strive to accelerate the already implemented and discard the less effective youth policies. Consequently, creating an innovative environment centered around the youth eradicates the exacerbating percentage of inactive or discouraged youth due to unemployment. Longer spells of inactivity threaten their human development and their contribution to the South African economy. Therefore, a youth-driven entrepreneurship economy can assist the government in counter-solving upcoming and persistent negative effects of unemployed youth. Keeping the youth productive, and innovative, creating jobs and incomes.

Natural resource governance and strategic economic resources: The perspective of Indonesia Raya Incorporated

The study aims to identify and describe the theory of economic development according to the thinking of Indonesia Raya Incorporated (IRI) in managing the interest of natural resources included in strategic economic resources. This study used a qualitative method through a grounded theory approach with constructivism and criticism as the interpretation approach. The data collected through the Focus Group Discussion (FGD) technique was processed using a componential analysis approach. The study results reveal the content of the main variables of economic development, namely the role and function of the government and state enterprises, namely State-Owned Enterprises (SOEs) and Regional-Owned Enterprises (ROEs), related to the potential of managing natural resources and other strategic economic resources which are determinants of the economic strata of population or for improving the welfare of the people. These novel findings highlights the significance of natural resource governance and strategic economy, namely the IRI’s perspective on economic development. The theory and conception contribute to deepening knowledge previously proposed in IRI and Murakabi economics. So, this knowledge has implications for natural resources management practices by the government and corporate strategies within the body of SOEs and ROEs in Indonesia and the global world. This includes the possibility of strategies for national and multinational private companies whose main business positions are based on natural resources and strategic economics.

Operational Excellence Strategy and Firm Performance in Insurance Companies in Kenya

In Kenya, the insurance industry is one of the major sectors of the economy. The government has identified this sector as one of the components needed to stimulate and support economic growth. However, the sector faces numerous challenges. According to AIC Capital Ltd, the main challenges facing the insurance sector in Kenya are the low penetration and the high level of competition. The average level of insurance penetration in Kenya during the period 2013-2022 stood at less than 3% in an industry with approximately 56 firms. To increase penetration levels and enhance competitiveness, the insurance firms in Kenya have introduced operational excellence strategies. The aim of this study was to determine the effect of operational excellence strategy on firm performance in Insurance Companies in Kenya. Operational excellence strategy was indicated using customer-centric strategy, innovation, agility, and developmental capabilities. Firm performance was indicated using the growth of market share, growth in customer base, and penetration level. The study was anchored by the dynamic capabilities theory, the theory of economic development, and the Deming theory. The study used a descriptive research design. The target population for the study were all licensed insurance firms in Kenya. The study used a census sampling technique and sampled 44 firms. The unit of observation in the study was the managers in charge of corporate strategy and firm performance. The study sampled one hundred and sixteen managers working at the respective insurance firms. The study data was collected using closed-ended questionnaires. The study data were analysed using descriptive and inferential analysis. The study established that the firms used customer-centric strategies because the firms' activities were focused on the customers' needs and expectations. The study established that the firm was continuously innovating its products, product mix, and services to better serve the customers. The study found that the firm has measures in place that were meant to adapt it to changing circumstances, including dynamic capabilities to detect external threats, competitive, responsive techniques, continuous adjustment and adaptations, and new strategic initiatives that rapidly respond to changing circumstances. These are indicators of agility. The study established that the insurance firms had various development capabilities, including research, training programs, increasing expertise and knowledge acquisitions. The results of the inferential analysis indicated that customer-centric, innovation, agility and development capabilities strategies had positive and statistically significant effects on the performance of the insurance firms surveyed in this study.

Understanding the Failures of Public Enterprises and Re-Engendering the Pursuit for Development in the Contemporary Nigeria

Over the years, there have been a vacuum on service delivery, governance and citizens welfare in Nigeria. Alot of factors could be responsible for it. However, it seems the agencies set up by government to provide public goods and services are not in anyway performing near mediocre level. It is against this backdrop, this study focused on understanding the failures of Public enterprises and re-engendering the pursuit for development in the contemporary Nigeria. We made use of the historical design, which is a qualitative research method. Our data was collected from secondary means like journals, articles, text books, publications, internet, etc. The tenets of the economic development theory were used to explain our argument. From the study, it was discovered that, the public enterprises created by government to provide public goods and services have failed in many regards, despite some actions taken by the government to addressing the problems it looks like it is a step forward and two steps backwards, that the Nigerian economy is a developing one as there are some minor breakthroughs recorded overtime, privatization though a very strong solution to addressing the public enterprises failure should not be considered a blanket solution, the government must be deliberate in providing the enabling environment for private companies to thrive.

Excerpt from Chapter 5. The New Evolutionary Economic Growth Theory of Entrepreneurial Capitalism

Excerpt from Chapter 5. The New Evolutionary Economic Growth Theory of Entrepreneurial Capitalism

ФАКТОРЫ УПРАВЛЕНИЯ СТРУКТУРНЫМИ ТРАНСФОРМАЦИЯМИ РЕГИОНАЛЬНЫХ ПРОМЫШЛЕННЫХ СИСТЕМ

The article analyzes the management of structural transformations in regional industrial systems. In the conditions of globalization and technological progress, regional industrial systems face the need to adapt to changing economic realities. The purpose of this article is to develop a comprehensive approach to the management of structural transformation of regional industrial systems, taking into account both theoretical foundations and practical aspects. The research analyzes modern theories of economic development and industrial policy; identifies key factors affecting the efficiency of structural change management; develops practical recommendations for managing these processes. The research focuses on the study of factors and methods that can contribute to the effective management of these transformations, taking into account the specifics of the regional context. The results of the study show that successful management of structural transformations requires an integrated approach that includes strategic planning, innovation, human resource development and active government regulation. Various strategies and mechanisms that can be applied to improve change management are discussed, including industrial modernization, improving competitiveness and stimulating economic growth. The article concludes that a comprehensive understanding of the factors influencing structural transformation, as well as the development of effective strategies and policies, is key to successfully managing these processes in regional industrial systems. The need for further research to adapt these strategies to specific regional conditions and peculiarities is emphasized.

Predictive Modeling of Insurance Claims in Rwanda

Purpose: The aim of the study was to examine the predictive modeling of insurance claims in Rwanda.
 Methodology: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library
 Findings: Predictive modeling of insurance claims in Rwanda found key predictors such as age, gender, and policy type. Regional variations in claim frequency and severity were evident, emphasizing the importance of localized risk assessment. Historical claims data was instrumental in building effective predictive models for insurers. Data-driven approaches were identified as valuable tools for improving underwriting and pricing strategies in Rwanda's insurance market. Continuous data collection and model refinement were underscored for enhanced accuracy and adaptability in the evolving Rwandan insurance landscape.
 Unique Contribution to Theory, Practice and Policy: Actuarial Science Theory, Behavioral Economics Theory & Economic Development Theory may be used to anchor future studies on the examining the predictive modeling of insurance claims in Rwanda. Predictive modeling can help insurers better understand their customers' needs and preferences. Policymakers can establish guidelines and regulations to ensure the responsible use of personal data in the insurance industry.

Structure of Labor: Toward a New Theory of Community and Economic Development

Abstract In the United States, the rise in income inequality and downward intergenerational social mobility since the 1970s represent twin problems facing community and economic development today. This paper proposes a Structure of Labor theory to apply at the local and regional level to address these development challenges. The objective is to provide a simple local approach to development that maximizes upward economic mobility and enables individuals and communities to achieve their development goals in the 21st century development landscape of the United States. The proposed theory fuses free-enterprise principles with state-planned dirigiste efforts to maximize the best of both theoretical perspectives. After reviewing pertinent literature and articulating the Structure of Labor theory, the latter sections of the paper explicate its implications for community and economic development practice.

Tourism and Socio Economic Development in Ibeno Local Government Area of Akwa Ibom State Nigeria

The paper examined the impact of tourism on the socio-economic development of Ibeno Local Government Area of Akwa Ibom State, Nigeria. Despite the huge potential of tourism in the study area, its contribution to the transformation is not encouraging. A qualitative study, it adopted the Malthusian theory of economic development as the theoretical framework for analysis. Amongst others, the paper discovered that the tourism industry as it has done in other climes can generate incomes for households through engagement in various economic activities, generate of revenue for the government, create of employment for a coterie of persons as well as the capacity for rural development. However, this depends on the development of tourism. The challenges bedevilling tourism as a tool for socio-economic transformation in the study area included government negligence of the industry as a revenue and other multiplier effects spinner, as the government of Nigeria and the state of Akwa Ibom concentrate so much on the petroleum sector for revenue; lack of organisation on the part of government authorities in revenue collection in the lone tourist site available in the local government area; and a lack of adequate strategy by government agencies at the development of tourism. It has been recommended that the necessary government authorities put in necessary measures for the development and marketing of the tourism potentials of the local government area; efforts should also be directed at eco-tourism as well as creating an enabling environment for tourism to thrive unfettered.

Reinforcing path marginalization: revealing the unaccounted labour organization at a mining frontier in Indonesia

Abstract How could we conceptualize path development taking place in regions dominated by extracting industries and subsistence economies? The article expands existing Evolutionary Economic Geography theory by focussing on extractive economies in a peripheral region that has, thus far, barely been covered. It challenges existing conceptualizations by highlighting a tin producing island in Indonesia. The article introduces the concept of path marginalization and its reinforcing mechanisms that explain the dynamics between large and artisanal mining activities. It examines how the mining path is reproduced by the interaction between multiple forms of labour organization that are normally unaccounted for.

FROM “TIRED MUSCLES” TO “MIGHT-HAVE-BEENS”: A DEBATE ON THE NATURE OF COSTS IN THE LATE NINETEENTH CENTURY

This article explores a debate on the theory of cost that occurred in the 1890s between economist Silas MacVane and Austrian economists. MacVane defended the idea of objective “real cost” and the Austrians argued for subjective opportunity cost. Although this debate is rarely mentioned, it represents a noteworthy episode of active contrast between ideas on value and on cost, with implications that are relevant for contemporary economists. By highlighting the incompatibility of the objective and subjective conceptions of cost, this debate sheds light on the evolution of economic theory. The contributions of relatively unknown authors, such as MacVane and David Green, are also discussed. We interpret the debate in terms of the contrast between research programs based on wealth and on exchange, and note that the gradual shift in the period regarding the fundamental problem that informs economic theory is key to understanding the modern concept of cost.

An assessment of sustainable wellbeing and coordination of mountain areas: A case study of Qinba Mountain Area in China

Old economic development theories no longer adequately explain development issues as the world moves toward the Sustainable Development Goals (SDGs). The key to solving this problem lies in shifting from economic wellbeing with wealth at its core to sustainable wellbeing with equitable development at its core. However, there is a lack of systematic methods and applications for assessing sustainable wellbeing, which leaves policy makers unsure of how to optimize policies for sustainable wellbeing enhancement. Therefore, this research aims to establish a sustainable wellbeing measurement system connection with the SDGs, to value and index sustainable wellbeing, and to explore the progress of sustainable wellbeing in 46 counties in the Qinba Mountain Area from 2009 to 2020, taking the Qinba Mountain Area, which is the most concerned area in China. Methodologically, Genuine Progress Indicator (GPI), Ecosystem Services Vuale (ESV), and Life Satisfaction (LS) are valorized separately to represent economic capital, ecological capital, and social capital, thus valorizing sustainable wellbeing, and get the Sustainable Wellbeing Value (SWV). Based on this, we follow the principle of “the best system is one that achieves a simultaneously prosperous” advocated by the theory of sustainable wellbeing, and calculate the Sustainable Wellbeing Index (SWI) by the method of coupling coordination, so as to build up the interconnection of the three capital accounts of sustainable wellbeing: economic, ecological and social. We investigate the spatial and temporal dynamics dynamic changes of sustainable wellbeing in the Qinba Mountain Area based on the valuation and indexation of sustainable wellbeing. The results of the research show that, first, the value of sustainable wellbeing in the Qinba Mountain Area fluctuates upward, with economic capital contributing the most, ecological capital fluctuating the most, and social capital contributing most smoothly. Although economic capital is necessary for the development of all counties, it is obvious that developing counties rely on it more. The SWI in the Qinba Mountain Area fluctuates and rises, and it is overall in a stage of coordinated transition, showing strong social and economic capital and weak ecological capital. By county, the proportion of dysfunctional economic, ecological, and social capital interrelationships declined significantly in all counties. However, some counties still suffer from ecological lag, mainly stemming from an imbalance between human activities and the required ecosystem services. Therefore, it is crucial to clarify the functional territorial zoning of regions and promote the structural transformation of development. This research will provide a valuable reference for the refinement research of Sustainable Development Goals and the optimization of rural development policies in mountainous areas.

STUDY ON THE INVESTMENT APPROACHES OF RURAL REGIONAL ECONOMIC DEVELOPMENT IN CHINA

In the modern conditions of globalization and economic development, the management of investments in agricultural production has become an important issue in the development of China's national economy. Understanding the relevant concepts of agricultural investment, analyzing its environment, building a scientific and sound structure, determining the proper scale and implementing an effective agrarian economic investment strategy scheme are very important to promote the modernization of agricultural production processes, increase the productivity of agriculture as a sector of social production in which people use the natural conditions of the environment, rely on the physiological functions of animals, plants and microorganisms, and strengthen and control the life of organisms through labor to obtain the material products needed society and farmers' incomes. Research and improvement of the theory of management of agricultural investments can help in making management decisions, increase the efficiency of commodity producers and strengthen the stability of rural areas. This article examines in detail the theoretical foundations and practical application of agricultural investment management, with the aim of providing useful recommendations and reference materials for decision-makers in the agricultural sector by defining basic concepts, analyzing the foundations of theory and research methods. Thus, relevant concepts and main problems of agricultural investment management and theories of economic growth of rural areas by investing in the agricultural sphere were presented. Various views of the classical theory of economic growth and development of rural areas were collected; the main obstacles to the development of agricultural investment are identified, including state macro-control at various stages of regional development.

Dampak Pembangunan Keberadaan Kampus II IAIN Ponorogo Dan Dampaknya Terhadap Perekonomian Masyarakat Di Kabupaten Ponorogo

Development is a continuous improvement process in society and its social system towards a better standard of living. Development is a change in the level of welfare that is measurable and occurs naturally. The changes affect not only one aspect of life but also fundamental aspects. Changes can be seen in the economic status of the people in the area, like the construction of a higher education institution in a place that will impact changes in its surroundings. The changes that occur are not only the hustle and bustle of activities but also changes in the economic field of the surrounding community because other developments around it will also follow the construction of a higher education institution. So that The main objective of this research is to find out how the influence of the development of higher education institutions has on the economy of the surrounding community. The changes brought about by the establishment of a tertiary institution certainly have an impact on the lives of the surrounding community. The impact in question is an impact that can improve the lives of the surrounding community, especially in the economic sector. The most obvious change is that in the area around the campus, many business establishments have been established, such as boarding houses, restaurants, shops, workshops, laundries, photocopiers, and so on. Establishing these businesses will open up many job opportunities for the community so that the community's economy will also improve. This research is expected to contribute to the development of economic development theory and can be helpful suggestions and references for future research.

Methodology of nonlinearity in the research of the phenomenon of the innovation space of higher school expansion

The article relates to the formation of a methodology of nonlinearity for nonlinear cognition of the spatial expansion of higher education in the innovation sphere, which manifests itself as the implementation of its innovative activities and the spread of innovations not only inside, but also outside its own national states. This trend of embedding higher education in the global innovation process has a stable and long-lasting character, due to its all-round innovatization and globalization.The article offers a rationale of the relevance and presentation of the methodology of nonlinearity as the most effective tool for understanding the expansion of the innovation space of higher education and its integration into the worldwide innovation process. The proposed methodology of nonlinear research is opposed to the so-called linear logic, a linear method often used in economics that considers objects and phenomena with predictable behavior and is not able to give a complete picture of the development of open nonequilibrium systems. The methodology of nonlinearity includes the principles of the theory of systems self-organization and the theory of evolutionary economics. It allows combining both stationary and dynamic components of the nonlinear process under study in one model, revealing the nature of changes in both spatial and temporal properties accompanying the modification of higher education integrated into the global innovation space.The study’s results are presented as the parameters of the nonlinearity of the university innovation space expansion. Theirs disclosed using a nonlinear methodology. There are: the openness of higher education to the import-export of information, energy and material flows; the state of instability, disequilibrium under the influence of external and internal factors; updating the structure through self-organization, leading to the replacement of obsolete parts of the system with new ones; the ability to make qualitative leaps, once at the bifurcation points.The article offers a rationale of the relevance and presentation of the methodology of nonlinearity as the most effective tool for understanding the expansion of the innovation space of higher education and its integration into the worldwide innovation process. The proposed methodology of nonlinear research is opposed to the so-called linear logic, a linear method often used in economics that considers objects and phenomena with predictable behavior and is not able to give a complete picture of the development of open nonequilibrium systems.The methodology of nonlinearity includes the principles of the theory of systems self-organization and the theory of evolutionary economics. It allows combining both stationary and dynamic components of the nonlinear process under study in one model, revealing the nature of changes in both spatial and temporal properties accompanying the modification of higher education integrated into the global innovation space.The study’s results are presented as the parameters of the nonlinearity of the university innovation space expansion. Theirs disclosed using a nonlinear methodology. There are: the openness of higher education to the import-export of information, energy and material flows; the state of instability, disequilibrium under the influence of external and internal factors; updating the structure through self-organization, leading to the replacement of obsolete parts of the system with new ones; the ability to make qualitative leaps, once at the bifurcation points.

THE ROLE OF TRADE AND ECONOMIC RELATIONS IN FORMING OF THE REGION DEVELOPMENT POTENTIAL: THEORETICAL AND APPLIED ASPECT

The article investigates the impact of trade and economic relations on the development potential of the region formation in the context of regional theoretical concepts’ evolution. At the same time, with the use of systemic and synergistic approaches, methods of analysis and synthesis, induction and deduction, historical and comparative analysis, it was established that there are two approaches to economic growth and development in relation to the study of the development potential of the region: economic growth associated with an increase in gross product per capita, and its volumes. On the other hand, economic development is a broader concept and means an increase in the standard of living of a person, some of which have an immeasurable (qualitative) nature. At the same time, the list of regional development concepts given in the work gives an objective opportunity to assert that these are processes caused by differentiated factors. The influence of which accumulates during the period of determining the potential of the economic state of the region. However, it should be remembered that the factors considered in the theories of economic development are based mainly on the description of its regular processes that take place in the conditions of established, developed market economies. At the same time, the application of such factors from the point of view of modern changes taking place in the world economy, to clarify the trends of regional development in the countries of Eastern Europe, the economic processes of which are subject to the transformation of the economy in accordance with the requirements of European integration, definitely requires their expansion and adaptation.

Теория экономического развития: эволюция подходов и современная парадигма

Introduction. The relevance of scholarly justification of approaches to economic development is caused by the insufficient study of the economic development phenomenon, its nature and qualitative characteristics of the factors influencing the implementation of qualitative structural changes in the economy of the country. Theoretical analysis. The article summarizes the evolution of economic thought and historical transformation of attitudes concerning the study of economic development. Scientific approaches and studies of leading foreign and domestic scholars, which constituted the theoretical and methodological basis of the economic development theory, are consistently presented. The tendencies that served the modern theories of economic development formation are considered. Empirical analysis. Based on statistical data analysis the difference between the categories of «economic growth» and «economic development» is justified. The concept of economic complexity as a phenomenon that contributes to the qualitative transformation of the economic development factors is considered. The dynamics of the economic complexity index in the Russian Federation is analyzed. Results. The analysis of qualitative changes in the economic development factors in the modern mixed economy is conducted. The relevance of sustainable development theory and the concept of economic complexity application in the study of the economic development of states are demonstrated. The criteria of economic development in modern socio-economic conditions are formulated.