Total Capital Formation Research Articles

The effect of fixed capital formation rate on gross domestic product in Iraq

The total fixed capital formation is one of the main and influential determinants of production function through its impact on production costs, competitiveness, and profits. The Iraqi gross domestic product depends on one sector (the oil sector) in financing the government budget, which may lead to crises in case of oil price collapse. Therefore, the study aims to clarify the imbalance in the production function and the real output of the Iraqi economy and to indicate the role of the total fixed capital formation in this imbalance. The econometric methods were used to measure the degree of influence of the total fixed capital formation (independent variable) on the gross domestic product (dependent variable) from 2004 to 2020. The results showed a robust relationship between fixed capital formation and gross domestic product, where the independent variable affects the dependent variable by 4.5%, while the oil sector dominated the total value added by its acquisition of the total fixed capital formation by 47.45%, and the productive sectors of agriculture and industry achieved value added of 3.8%. The study concluded that the distribution of total capital formation by sector has an impact on the gross domestic product. Therefore, it is necessary to distribute the total fixed capital formation to the productive and production-supporting sectors to achieve economic growth and diversify the structure of the gross domestic product.

Effects of Taxes on the Development of the Non-Oil Industry Sector: The Case of Azerbaijan

A panel analysis of the relationship between corporate tax rates and GDP per capita, economic growth rate, total capital formation, and non-oil product volume proves that these variables’ dependency on corporate tax rates is weaker. The main finding of the study is that there is a negative relationship between the volume of non-oil industrial products and taxes in Azerbaijan. Based on the results of the research, it can be argued that neither corporate taxes nor general taxes have a significant impact on the production volume of non-oil industrial products in Azerbaijan in the short term. However, there is a negative relationship between taxes and the volume of production of non-oil industrial products in the long run.

Carbon Emission of Global Construction Sector Using Grey Relational Analysis (GRA) Method

Construction industry is wide products of scale creates, and more companies equally different. However, involved in on-site construction most companies smaller and local. Globalization and internationalism balance of construction department despite that, construction most of the activities are carried out by local companies. Required in the manufacturing process goods and services outsource in construction of the doing (among other companies like businesses) a there is a trend. Construction materials, plant and equipment usually from other companies purchased or purchased hired. Special services by subcontractors are provided, and labor by labor agents. Design and engineering services are separate professional provided by companies. Construction industry in india by 2025 it would reach $ 1.4 tn expected. Cities driving growth - total 75% of domestic production% urban people to contribute to the contributing amount (63% currently), and 68 cities more than 1 mn contains the population. Construction industry in india market 250 sub-sectors with links to departments works. Environment and substantial in society global for outcomes the construction industry is responsible. Of our built environment construction and use global greenhouse gas 39% of emissions. Built environment year global co2 makes 40% of emissions. In those total emissions, building activities annually 27% cause, same building and infrastructure at the time materials and construction (generally packed carbon) they are referred to as 13% of the year's addition responsible. Working in the country about 16 percent of the population for people to live for its livelihood depends on construction. Indian construction industry 30 more than millions use people and ₹ 200 billion makes more assets. This is the country's gdp for 5 percent of the product, for total capital formation contributes more than 78 percent. Gray related analysis related to ash calculation degree and measurement or between computer factors the main behavior of the organization the level of contribution influence decides to be once. Between factors or between action for two systems of relationship two gray contact size called. G.mr. The basic of a method the principle is that, selected alternative in a positive-body solution from “large-scale ash relationship” and “small gray” of the relationship must have negative- the physical solution. Gray related huashong analysis science and technology deng of the university created by julang. This gray system theory very widely used one of the models. G.mr.a a specific information concept uses. It's black no information as situations and proper those who contain information defines white. Alternative taken as Unrenewable, Renewable, Nonenergy. Evaluation preference taken as China, European, India, Russia, US. From the result it is seen that US is got the first rank where as is the Russia is having the lowest rank. US is ranked first and Russia is ranked lowest.

The Impact of the Broad Money Supply (M2) on Economic Growth per Capita in Palestine

This study examines the effect of the broad money supply (M2) on the per capita economic growth in Palestine using time series data from 2000 to 2020. The study used autoregressive distributed lag model (ARDL), the cointegration approach and the error correction model to investigate the effect of money supply on gross domestic product (GDP) per capita. The model is determined by four macroeconomic variables, namely, gross domestic product (GDP) per capita, broad money supply (M2), gross fixed capital formation (GFCF), and inflation rate (INF). The results show that the money supply, the total capital formation, and the inflation rate have a positive impact on the economic growth in the short run. However, none of these variables affect the economic growth in the long term.

Measuring Pollution Control and Environmental Sustainable Development in China Based on Parallel DEA Method

The purpose of this study is to explore the impact of pollution control on industrial production efficiency in 31 provinces and cities in the Yellow River and Non-Yellow River basins in China from 2013 to 2017, using the methods of the directional distance function (hereinafter referred to as DDF) and the technology gap ratio (hereinafter referred to as TGR) in parallel, while taking the industrial production sector (labor force, total capital formation, energy consumption and industrial water consumption) and the pollution control sector (wastewater treatment funds and waste gas treatment funds) as input variables. Undesirable outputs (total wastewater discharge, lead, SO2 and smoke and dust in wastewater) and an ideal output variable (industrial output value) are taken as output variables. It is found that the total efficiency of DDF in the Non-Yellow River Basin is 0.9793, which is slightly better than 0.9688 in the Yellow River Basin. Among the 17 provinces and cities with a total efficiency of 1, only Shandong and Sichuan are located in the Yellow River Basin. The TGR values of 31 provinces, cities and administrative regions are less than 1, and the average TGR value of the Yellow River Basin is 0.3825, which is lower than the average TGR value of the Non-Yellow River Basin of 0.5234. We can start by improving the allocation of manpower and capital, implementing the use of pollution prevention and control funds, improving the technical level of industrial production, improving pollutant emission, and increasing output value to improve overall efficiency performance. This study uses the parallel method, taking the industrial production department and the pollution control department as inputs, to objectively evaluate the changes in industrial production efficiency and technology gap in the Yellow River and Non-Yellow River basins, which is conducive to mastering the situation of pollution control and industrial production efficiency, and provides the reference for SDG-6- and SDG-9-related policy making.

Shared network and supply chain features for synergetic control of carbon and air pollutant emissions

The synergetic control of carbon and air pollutant emissions will be an unflagging effort for China in its dual pursuit of air quality improvement and carbon neutrality. The shared features of sectoral emissions from network and supply chain perspectives, as well as the evolution of these features under policy intervention remain to be investigated. This study develops four ecological networks for CO2 and SO2 emissions targeting the period 2010–2015 with strengthened emission control implemented. By fusing input-output analysis, Ecological Network Analysis and Structural Path Analysis, the shared intersectoral linkages of emissions are examined, and the key supply chains are identified. The results indicate that most sectors have control over Transportation Equipment, Electronic Equipment, and Construction, and almost all sectors have dependence on Power and Heat. Exploitative relationships induced by emission flows along supply chains are predominant, accounting for over 60% for four emission flow networks. Eight shared supply chains are identified among the top 20 that generally induce larger than 50% emissions in both 2010 and 2015. The one with the largest emissions is “Total capital formation → Construction → Nonmetals”. During 2010–2015, the critical evolution of network features is the decrease in the economy's control over Construction, dependence on Fossil Energy Mining, and emissions contained in the paths associated with exports. The findings help to more pertinently strategize on prescient regulation of key supply chains for a more effective carbon-pollution synergetic control.

Political Will and the Impact Assessment of the New Crown Epidemic on Economic and Social Development and Countermeasures.

Purpose. This paper aimed to study how to analyze and study economic and social development under the new crown epidemic based on the neural network and described the BP neural network. Methodology. Economic forecasts are affected by multiple influencing factors, the relationships between these factors are complex, and it is a nonlinear system with a high degree of uncertainty. The use of traditional forecasting methods has many limitations, and neural network methods can overcome these limitations and achieve good nonlinear forecasting. Research Findings. Through the analysis and statistics of the impact of the SARS epidemic and the new crown epidemic on the economy, by 2021, the economic contribution of final consumption expenditure, total capital formation, and net exports will be 65.4%, 13.7%, and 20.9%, respectively, and the impact of the current new crown virus epidemic on the economy will be greater than that of the SARS epidemic in 2003. Research Implications. The model applied to economic forecasting based on the BP network can achieve good forecasting effect, and scientific and reasonable forecasting methods depend on the in-depth understanding of economic activities and dominance of familiarity with economic theory. Practical Implications. Through the analysis of the economy in the context of political will and the new crown epidemic, it will give more reference to more and more complex emergencies in the future.

An analysis of the impact of investment in public transport on economic growth of metropolitan cities in South Africa

Background: Over the years, the South African government has emphasised improving the metros’ socioeconomic infrastructures because these form an essential catalyst that can boost grassroots development. Despite the considerable increase in investments in transport infrastructure in the metros, the contributions of the metros where all these transport investments are concentrated appear to be making little use of it to promote their grassroots development.Objectives: The study investigated the impact of public transportation on the output growth of South Africa.Method: One-way error component panel analysis is adopted to analyse disaggregated data from eight major metros in the country from 2003 to 2017. Data were mainly sourced on public transport expenditure, total social infrastructure expenditure, total capital formation, labour expenditure and output growth rate from each of the metros.Results: The results were a clear departure from what was obtained by previous studies on transport expenditure and the growth of South Africa. Six of the metros which are the big ones in terms of the population showed a result, which indicated that public transport expenditure did not influence their output significantly; but when combined with other social infrastructure, it exhibited significant impact. However, the results of the remaining two small metros showed that public transport expenditure and its combination with other social infrastructure all had a significant impact on their output growth.Conclusion: This confirms transport infrastructure investment conforms to the theory of the diminishing marginal product of capital. The six big metros should invest more in social infrastructure, which would complement the contemporary transport infrastructure investment. On the other hand, there is still a need to increase public transport infrastructure investments on the smaller metros.

Are Technological Innovation and Foreign Direct Investment a Way to Boost Economic Growth? An Egyptian Case Study Using the Autoregressive Distributed Lag (ARDL) Model

Both technological innovation and foreign direct investment have received widespread attention in the literature on their role in promoting economic growth. Therefore, this study aims to test the relationship between foreign direct investment, technological innovation, and economic growth of the Egyptian economy during the period between 1990–2019 using the autoregressive distributed lag model simultaneous integration test. Our findings show of the ARDL (Autoregressive Distributed Lag) model estimation a joint complementary relationship between the rate of growth of per capita gross domestic product (GDP) in US dollars and the independent variables in the model in the long and short term, which are statistically significant results. We found a positive significant relationship between the variables of incoming foreign direct investment and share of total capital formation in economic growth. Therefore, in the long term, the rate of inflation and the innovation index had a negative impact in the long term and the speed of adjustment towards equilibrium was very large, as it was estimated at 1.5 years (1/0.651). Furthermore, the study also provides valuable lessons and a strategic vision for the Egyptian government, which aspires to advance technology and attract more foreign direct investment.

Extracting critical supply chains driving air pollution in China

Tracing the air pollutant emissions along the supply is helpful to comprehensively understand the source of emissions embodied in final products and the destination of direct emissions from production sectors. Based on the harmonized datasets on China’s nitrogen oxides, sulfur dioxide, and soot & dust emissions and the input-output framework in 2015, we newly account the production-based and consumption-based emissions and adopt structural path analysis (SPA) to extract the critical sectors and supply chains for air pollution co-control. The findings indicate that the sectors of Power and Heat, Metals Smelting and Non-metallic Mineral Products are major contributors to production-based emissions; The sectors of Construction, Equipment and Services are major contributors to consumption-based emissions. The embodied emissions in production layer 0 account for only 11%–16% for three pollutants, with over 50% of emissions attributed to production layer 1. The paths “from total capital formation to Construction to Non-metallic Mineral Products” and “from total capital formation to Construction to Metals Smelting” are the top two critical paths for the emissions of three pollutants. The sectors of Equipment and Service are also critical sectors in the supply chains, which rely heavily on the inputs from themselves. As an attempt on combining SPA with multiple air pollutants, this study is expected to provide insights into the relationships among production sectors, final demand, supply chains and air pollutant emissions, and design policy interventions targeting air pollution co-control.

BP Neural Network Calculus in Economic Growth Modelling of the Group of Seven

In this paper, the adaptive lasso method is used to screen variables, and different neural network models of seven countries are established by choosing variables. Gross domestic product (GDP) is a function of land area in the country, cultivated land, population, enrollment rate, total capital formation, exports of goods and services, and the general government’s final consumption of collateral and broad money. Based on the empirical analysis of the above factors from 1973 to 2016, the results show that the BP neural network model has better performance based on multiple summary statistics, without increasing the number of parameters and better predicting short-term GDP. In addition, the change and the error of the model are small and have a certain reference value.

The Relationship Between the Human Capital and Economic Growth: A Case of Vietnam

Human capital are not only the engine of economic growth but also increase the global competitiveness for countries. Improving labor quality helps countries improve long-term economic efficiency. This article uses annual data in the period 1990 - 2017 in Vietnam, which attempts to explore the relationship between total capital formation, the labor quantity, education levels and life expectancy with economic growth. By using OLS regression, the analysis results shown that the gross capital formation, the labor quantity, education levels and life expectancy are positive and have a significant impact on GDP in Vietnam. Furthermore, the Granger causality test indicates that there is a two-way causal relationship between labor and economic growth (GDP) in Vietnam. Keywords: Human capital, Economic growth, Education levels, Granger causality DOI : 10.7176/IEL/9-5-04 Publication date :June 30 th 2019

Comparative study on the influence of final use structure on carbon emissions in the Beijing-Tianjin-Hebei region

The Beijing-Tianjin-Hebei region's rapid economic development has led to a dramatic increase in its CO2 emissions, which is closely related to various regions' consumption habits and structures. In this paper, the decomposition analysis method based on input and output (IO-SDA) was applied to decompose the CO2 emissions change of the Beijing-Tianjin-Hebei region from 1997 to 2012 into five driving factors: population, carbon emission efficiency, production structure, final use structure and per capita regional GDP, and then the final use structure factor was further analyzed. The results show that: (1) the population and per capita regional GDP promote the CO2 emissions of all regions; Carbon emission efficiency is the biggest offsetting factor; The effect of final use structure changes on the growth of CO2 emissions in Beijing and Hebei remains unchanged. The effect on Tianjin was from 0.7Mt offset to 0.8Mt promotion. (2) Urban household consumption is the most important factor offsetting CO2 emissions in Beijing. Investment and export are the most important final use types for promoting the growth of CO2 emissions in Tianjin and Hebei, with the contribution of 95.78% and 88.09%, respectively. (3) From the sectoral perspective: The construction sector has the greatest impact on the total capital formation of the three regions. In terms of exports, Beijing's tertiary industry has the largest offsetting effect, while Tianjin and Hebei mainly rely on the promotion of metal smelting and other manufacturing industries. Finally, some policy implications for low carbonization are proposed in the Beijing-Tianjin-Hebei region.

Spatial–Temporal Modeling for Regional Economic Development: A Quantitative Analysis with Panel Data from Western China

The objective of this research is to analyze regional economic difference and explore the influencing factors, which would eventually provide an effective foundation to narrow the regional economic differences. In this paper, a new regional economic difference model is established considering the interactions between the spatial weight and human capital and foreign direct investment (FDI). With the panel data from twelve western provinces in China, the empirical research is conducted by adopting feasible generalized least squares (FGLS) fixed effects model. The preliminary results show that: (1) the spatial spillover effect of human capital and FDI is significant to the formation of regional economic difference; and (2) the total capital formation, government expenditure, FDI, human capital and patent application authorization are positively correlated with GDP growth per capita, while the number of medical institutions is negatively correlated with GDP growth per capita. In addition, the robust test is carried out for validation by using the filter variable method, spatial lag model and spatial error model. The robustness test results show that the results of the FGLS fixed effects model are validated by the filter variable method. The other two robust test results show that: (1) the total capital formation and the fixed asset investment is of 99.9% significance, which represents that they play a key role in the formation of economic development difference; and (2) the coefficients’ symbols of the other variables are consistent with the FGLS fixed effect model but a little different on the significances, which enhance the effectiveness of the proposed regional economic difference model.

Impact of Energy Consumption on Environmental Pollution a Case Study of Pakistan

This study investigated that impact of energy consumption on the environment in Pakistan by using a single equation model. The use of energy consumption E depends on the selected variables, and carbon dioxide emissions GDP, total capital formation and foreign direct investment are independent variables that collect data from 1980 to 2008. Results show that GDP and energy consumption impact directly on foreign investment climate is negative and insignificant. As the effects of carbon dioxide and energy consumption of the capital, is positive. Rising energy consumption and the emission of carbon dioxide is increasing environmental pollution in Pakistan. This research shows that the government should take appropriate policies to control environmental pollution.

The place of human capital development in today's economy: further evidence from Nigeria

The place of human capital development in today's economy cannot be over-emphasised. This study uses the augmented Solow human-capital-growth model to empirically determine its role in enhancing economic performance in Nigeria as well as relate the findings to similar studies in Sub-Sahara Africa countries. The results indicate that gross total capital formation, total stock of human capital and total government health expenditure are all significant growth drivers. However, the contribution of total government education expenditure to growth remains meagre in relations to other variables within the periods under review. The elasticity of output with respect to the explanatory variables returns relatively inelastic measures for all the variables.

Transportation–Communication Capital and Economic Growth: A VECM Analysis for Turkey

This paper analyses the short- and long-term relationships between the transportation–communication capital and the output for Turkey. The study applies a Cobb–Douglas production function under the assumption of constant returns to scale and employs co-integration analysis by estimating a vector error correction model (VECM). As a result of the VECM estimation, one co-integrating relationship is detected. The results based on the impulse response function analysis imply that per labour transportation–communication capital appears both to have been a crucial input in the Turkish productive process and to have had a positive crowding in effect on the per labour non-residential total capital formation. Moreover, the results support the argument that the transportation–communication capital has a lagged impact on economic growth. The long-term accumulated elasticity of output to transportation–communication capital has been found to be 0.59. The long-term accumulated marginal product was also calculated. It implies that a 1 Turkish Lira increase in per labour transportation–communication capital results in a long-term rise of 1.45 Turkish Liras in per labour output. All these findings suggest that transportation–communication capital may be a powerful tool for policy-makers to promote long-term per labour real output growth in Turkey.

THE IMPACT OF FOREIGN DIRECT INVESTMENT ON INDONESIA'S MANUFACTURING SECTOR

Though FDI accounted for a quarter of manufacturing production in Indonesia in the late 1990s, its contribution was rather moderate in total capital formation, generating net export revenues, creating manufacturing employment, developing supplier and support industries, transferring technology and generating tax revenues. FDI had a negative impact on the balance of payments, and contributed to the persistent deficit in manufacturing goods due to its larger propensity to import production inputs from abroad. This does not mean that FDI should be restricted. Implications for maximizing the positive contribution that FDI can make to development, while minimizing its negative effects, include the provision of world-class infrastructure, education and skills; focused investment promotion; public-private partnerships to build local manufacturing capabilities; technology-based collaboration between foreign and domestic firms; lowering bureaucratic hurdles; monitoring mergers and acquisitions; instituting effective competition policies; avoiding an incentive race between regions; adopting minimum environmental and labour standards; and restoring stability and security in the country.

Stabilization and adjustment in a small open economy: Ireland, 1979-1995

At the end of the 1970s, the Irish economy was faced with an unsustainable current account deficit, rising unemployment, high inflation, and a rapidly increasing public debt. By the mid-1990s Ireland's growth rate was the highest in the OECD, unemployment was declining rapidly, the current account was in surplus, and the country seemed likely to meet the Maastricht financial and fiscal convergence criteria. Domestic absorption has been sharply reduced despite a mild appreciation of the real exchange rate. External competitiveness, measured in terms of relative unit wage costs in a common currency, improved dramatically owing to the sharp increase in the share of foreign direct investment (FDI) in total capital formation. While the fiscal correction of the late 1980s helped restore private-sector confidence and was indispensable for progress on financial convergence, the boost to labour productivity given by the increased inflow of FDI is credited with the key role in the economy's transformation. Copyright 1996 by Oxford University Press.

Australian Public and Private Capital Formation, 1901–75*

We present new estimates of Australian public capital formation as a reasonably consistent time series for 1901 to 1975 and comment on some issues they raise. The series is disaggregated by level of government and by function and separates public enterprises from other junctions. Primarily because we recognize internal funding of capital formation by public enterprises the new estimates differ quite radically from existing estimates. After 1930 the government share of total capital formation declined from a traditional average of one half to less than 40 per cent. Associated with this relative restraint since the early 1950s were an increasingly ‘business‐like’ management of public enterprise and a growing pressure on the private sector to provide additional infra‐structure.