scholarly journals Sustainable Growth from a Factor Dependence and Technological Progress Perspective: A Case Study of East China

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Ying Liu ◽  
Wan-Ming Chen ◽  
Sheng-Yuan Wang ◽  
Xiao-Lan Wu
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Technological Progress ◽  
Path Dependence ◽  
Optimal Allocation ◽  
Malmquist Index ◽  
Physical Capital ◽  
Sustainable Growth ◽  
East China ◽  
Industrial Growth

The paper constructs an economic growth model that contains human, physical capital, innovation, and energy factors and estimates the output elasticity of seven provinces and cities in East China in the period of 2004–2018. Having calculated the contribution rate of these different factors to economic growth, the paper finds that factors of production have a different elasticity that impacts the growth of different regions and industries and notes that energy and physical capital are the most significant factors for the growth of primary and secondary industries. This highlights that industrial growth has not freed from the path dependence of extensive input, and the authors cite Shanghai and Jiangsu as typical regions in this regard. The former’s growth largely depends on physical capital and energy, and the latter’s growth depends on the input of diverse elements including innovation. The latter is better suited to the needs of the “new normal” economic growth. The authors construct a simulation model of economic growth based on system dynamics, and system simulation results show that energy and material capital investment not only have the most significant effect on economic growth in East China but also provide clear evidence of extensive economic growth. The paper then demonstrates that increasing the optimal allocation of input factors and the rational flow between regions is conducive to improving output efficiency and provides the results of the Malmquist index calculation: on the whole, there is no obvious technological progress in East China. Shanghai, Jiangsu, and Zhejiang are, however, provincial-level regions of this part of the country which demonstrate significant technological progress in East China. In conclusion, the paper suggests that this region of China will be unable to maintain its current level of economic growth because of the combined influence of factor input constraints and insufficient technological progress.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

scholarly journals The Impact of Tourism on the Local Economy in Malaysia

2018 ◽  
Vol 13 (12) ◽  
pp. 151 ◽  
Author(s):  
Chin-Hong Puah ◽  
Meng-Chang Jong ◽  
Norazirah Ayob ◽  
Shafinar Ismail
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Positive Impact ◽  
Economic Transformation ◽  
Tourism Industry ◽  
Local Economy ◽  
Sustainable Growth ◽  
Distributed Lag ◽  
The Government ◽  
The Impact

The local and international communities play an important role in the sustainable growth of the Malaysian tourism industry. The principle of sustainable growth in the tourism industry was proposed by the World Tourism Organization (WTO) in 1988. As the tourism industry is one of the largest and fastest growing industries in Malaysia, the government has poured considerable effort into promoting this industry consistent with the objective of the Economic Transformation Program (ETP) to transform from a resource-based economy to a service-based economy. This study aimed to test the hypothesis of tourism-led growth from Malaysia’s perspective. The tourism revenue earned by the government can be used to invest in industry to further promote economic growth in Malaysia. Hence, tourist receipts and capital investment in the tourism industry are important factors that can affect the nation’s economic growth. Utilizing Malaysian data from 1995 to 2016, the study employed the Autoregressive Distributed Lag (ARDL) approach to examine whether the tourism-led growth is valid in this study. Empirical findings indicated that both variables have a significant positive impact on economic growth and the hypothesis of tourism-led growth is accepted in Malaysia.

scholarly journals Trivariate Modelling of the Nexus Between Financial Development, Globalization and Economic Growth: Insight from African Countries

2021 ◽  
Vol 2 (3) ◽  
pp. 129-142
Author(s):  
Azeez Olarewaju Ahmed
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Investment ◽  
Physical Capital ◽  
External Financing ◽  
African Countries ◽  
Pooled Mean Group ◽  
Development Policies ◽  
Alternative Sources ◽  
Finance Growth Nexus

Financial development has been identified as main drivers of economic growth. However, empirical probe of this nexus remains inconclusiveness due use of an inappropriate proxy by previous studies, and the inability of previous studies to consider globalization in this nexus. To this end, we probe the finance-growth nexus in the presence of globalization by applying the Pooled Mean Group (PMG) estimator to a sample of 21 countries spanning 1990–2017. The empirical results affirm the supply-leading hypothesis which indicates that financial development spur economic growth. In addition, our estimate provides evidence of a positive linear relationship between globalization and economic growth. Further, results indicate that physical capital investment plays an important role in accelerating economic performance of African economies. Based on these findings, it is important for African countries to promote globalization-financial development policies in order to have access to alternative sources of external financing and attract foreign investment that can spur growth of African countries.

scholarly journals The Role of Fiscal Policy in Human Development: The Pakistan’s Perspective

2012 ◽  
Vol 51 (4II) ◽  
pp. 381-396
Author(s):  
Syed Ammad Ali ◽  
Hasan Raza ◽  
Muhammad Umair Yousuf
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Purchasing Power Parity ◽  
Labour Productivity ◽  
Physical Capital ◽  
Sustainable Growth ◽  
Standard Of Living ◽  
Power Parity ◽  
Life Expectancy At Birth ◽  
Per Capita

Human development considered as the engine of the economic growth as it improves the economy’s strength and increases the standard of living of the people, increases the choices and maximises the welfare of the society that is the prime objective of any government. The development of the human capabilities is also necessary for the sustainable growth, as there are many channels through which human development foster the economic growth. It increases the labour productivity, labour demand, employment and output. On the other hand, human capital also attracts physical capital.1 Empirically, it is very difficult to have an exact measure of human development and social welfare. Several proxies used to measure human development, e.g. GNI per capita as a measure of standard of living, Purchasing Power Parity (PPP) criterion to measure the cost of living and to measure the welfare, average year of schooling, school enrolment rate and health expenditures as a percentage of GDP to capture this composite welfare and development indicator. A fair index of Human Development Index (HDI) was developed by United Nations Development Programme in 1990. This index based on the standard of living (natural logarithm of GDP PPP per capita), access to knowledge (adult literacy rate with two-third weighting and the remaining is the gross enrolment ratio) and a healthy life (life expectancy at birth). The value of index varies from 0 to 1, lower the HDI, lesser would be the human development and welfare in the country or vice versa.

Enhancing Human Capital Investment - Key to Unlock China's Economic Plight of Unbalanced Development

2011 ◽  
Vol 347-353 ◽  
pp. 2745-2748
Author(s):  
Yuan Zhang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Investment Strategy ◽  
Capital Shortage ◽  
Investment Structure ◽  
Sustainable Economic Growth ◽  
The Relationship

In recent years, it is very important for China to maintain the strong and sustainable economic growth, and we believe enhancing human capital investment is the key. According to the statistics, China's current human capital investment has fallen into the low-level trap, which means that the economic growth heavily depends on labor-intensive and resource-driven investment, and the relationship between human and physical capital investment becomes imbalanced. In addition, the coexistence of human capital shortage and employment pressure, the mismatch between human capital investment structure and talent demand, and insufficient human capital investment caused by unfair income distribution are becoming more and more serious. We advise a re-examination of our human capital investment strategy as the main policy to solve the problems.

scholarly journals Nominal and Real Stochastic Convergence of the BRICS Economies

2017 ◽  
Vol 10 (2) ◽  
pp. 9-28 ◽  
Author(s):  
Pin You ◽  
Yunpeng Sun ◽  
Lei An
Keyword(s):  
Technological Progress ◽  
Price Level ◽  
Malmquist Index ◽  
Physical Capital ◽  
Panel Data Models ◽  
Economic Convergence ◽  
Stochastic Convergence ◽  
Monetary Aggregate ◽  
Real Convergence ◽  
Monetary Convergence

AbstractThis study sheds light on the real and nominal economic convergence and the time-varying convergence speed of Brazil, Russia, India, China, and South Africa (BRICS). This paper also employs panel data models and a Malmquist index to analyze the mechanism of real economic convergence. The study finds evidence of real convergence in monthly growth of output (industrial production) of the BRICS economies, where the speed of convergence increases in the post-crisis period. Economic convergence is also witnessed by physical capital per capita and total factor productivity (TFP). However, lack of monetary convergence is apparent in nominal interest rate spreads, monetary aggregate M2, and the price level. Although the BRICS economies are converging to a fully-fledged economic and trade union, such convergence is not echoed by their monetary aggregates and price levels. Finally, the evidence of technological progress is expected to promote labor productivity and to further accelerate economic convergence.

scholarly journals Pengaruh Modal Fisik dan Sumber Daya Manusia terhadap Indeks Inklusif di Indonesia

2019 ◽  
Vol 17 (2) ◽  
pp. 109-124
Author(s):  
Reza Rizki Ramadhan ◽  
Yaya Setiadi
Keyword(s):  
Economic Growth ◽  
Human Resource Development ◽  
Capital Investment ◽  
Capital Expenditure ◽  
Physical Capital ◽  
Education And Health ◽  
Poverty And Inequality ◽  
Panel Data Regression ◽  
Index Value ◽  
Capital Development

Economic growth figures are one indicator to assess economic success. During the period of 2011-2017, Indonesia's economic growth rate was quite good, with at an average of 5,4 percent per year. However, these conditions have not been matched by a significant reduction in the level of poverty and inequality, and the level of employment has not been optimized. This indicates that the growth that has occurred has not been inclusive. This study to find out how the level of inclusive growth in Indonesia, measured by the inclusiveness index and the factors of development of physical capital and human resources that influence. The method of this study use panel data regression approach. The findings show that in the period 2011-2017, the level of inclusiveness index value in Indonesia is in the middle category. The variable of physical capital development in the form of government capital expenditure is statistically significant influencing the inclusiveness index in Indonesia, while the value of private capital investment has no significant effect. Human resource development variables, in the form of LFPR, RLS, and health complaints were statistically significant for the inclusiveness index in Indonesia, while government spending on education and health not significantly affected the inclusiveness index in Indonesia.

scholarly journals Resource Price Fluctuations, Resource Dependence and Sustainable Growth

2019 ◽  
Vol 11 (22) ◽  
pp. 6371 ◽  
Author(s):  
Hua Wang ◽  
Shi Wang ◽  
Cheng-Fu Yang ◽  
Sheng-Nan Jiang ◽  
Yun-Juan Li
Keyword(s):  
Economic Growth ◽  
Indirect Effects ◽  
Capital Investment ◽  
Resource Dependence ◽  
Generalized Method Of Moments ◽  
Resource Curse ◽  
Sustainable Growth ◽  
Price Fluctuations ◽  
Transmission Mechanisms ◽  
Sustainable Economic Growth

The previous literature on the resource curse has not taken resource price fluctuations into account. Using panel data covering the period from 1993 to 2017 from 28 provinces in China and dynamic generalized method of moments (GMM), this article takes a fresh look at the relationship between resource dependence and sustainable economic growth and the potential transmission mechanisms taking resource price fluctuations into consideration. We find that resource price fluctuations represent an important factor when researching the resource curse, and there is a U-shaped relationship between resource dependence and sustainable economic growth. However, over the past 20 years, provinces in China remained on the left of the U-shaped curve, and there is a single negative correlation between resource dependence and sustainable economic growth. This means that resource curse occurs in nearly all provinces in China. The analysis of transmission mechanisms of indirect effects taking resource price fluctuations into consideration shows that human capital investment and physical capital investment are more important than other mechanisms, and there are considerably more indirect effects than direct effects when taking into account the total effects of the resource curse.

scholarly journals Research on the contribution rate of scientific and technological progress to Chongqing’s economic growth Based on the Solow Growth model

2021 ◽  
Vol 235 ◽  
pp. 01012
Author(s):  
Yixin Zheng ◽  
Yucheng Wang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Capital Investment ◽  
Technological Progress ◽  
Labor Input ◽  
Contribution Rate ◽  
Development Mode ◽  
Capital Input ◽  
High Level ◽  
The Impact

In the context of current proposed transformation of economic development of the region are actively rely on capital from investment to promote economic growth mode to a mode relying on technological progress to promote economic growth up. Therefore, this paper selects the sample data of Chongqing from 2010 to 2017, and based on the empirical analysis of the Solow residual value model, using SPSS statistics 25 software, studies the contribution of Chongqing’s capital investment and labor input, especially technological progress, to economic growth. The research shows that the contribution rate of Chongqing’s capital input to economic growth has always been at a relatively high level, but it has shown a general downward trend. At the same time, the elasticity coefficient of capital input is small, indicating that its contribution to economic growth is small; the contribution rate of labor input fluctuates greatly but the impact is small; the contribution rate of scientific and technological progress to economic growth shows an overall upward trend, which has become an important factor for driving Chongqing’s economic growth after capital investment. Therefore, governments must accelerate the transformation of the economic development mode, vigorously promote the development of science and technology, and rely more on scientific and technological progress to promote economic growth and achieve sustainable economic development.

scholarly journals ON THE (NONMONOTONIC) RELATION BETWEEN ECONOMIC GROWTH AND FINANCE

2018 ◽  
Vol 24 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Alberto Bucci ◽  
Simone Marsiglio ◽  
Catherine Prettner
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Investment ◽  
Nonlinear Models ◽  
Physical Capital ◽  
Long Run ◽  
Financial Depth ◽  
Short Run ◽  
Per Capita

We analyze the simplest possible model of endogenous growth to account for the role of financial development. In our setting, financial development affects productivity and determines the amount of resources subtracted to capital investment. We show that under very general assumptions, the relation between economic growth and financial depth is nonmonotonic, and eventually bell-shaped. We empirically assess our results in a framework that allows to distinguish between long-run and short-run effects. We establish a cointegrating relation and derive the long-run elasticities of per capita gross domestic product (GDP) with respect to employment, the physical capital stock, and financial depth–relying on linear as well as nonlinear models for the finance-growth nexus. We employ the results of the first step estimation to specify an error–correction model and find that there is strong evidence for a nonlinear relationship between financial depth and per capita GDP, consistently with what was predicted by our theoretical model.

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