scholarly journals Economic Growth, Public and Private Investment: A Comparative Study of China and the United States

2020 ◽  
Vol 12 (6) ◽  
pp. 2243
Author(s):  
Ibrahim Ari ◽  
Muammer Koc
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Investment ◽  
The United States ◽  
Domestic Product ◽  
Public And Private ◽  
Macroeconomic Factors ◽  
Causal Relations ◽  
Sustainable Economic Growth ◽  
The U.S

Public and private investments play a central role in production functions by providing the required capital for development. There are many studies in the literature investigating the linear macroeconomic relations based on public and private investment in cross-country and country-specific analyses by focusing on various perspectives and methodologies. However, there is a gap in the literature in exploring nonlinear causal relations among public-private investment and economic growth, particularly in the U.S. and China, in order to comparatively discuss policy implementations and potential implications. To narrow the gap, this study investigates nonlinear causal relationships between public-private investment and gross domestic product in the U.S. and China, which are the largest economies comprising about 40 percent of the global gross domestic product (GDP) in 2018. These countries show a similar pattern in economic growth and implementing sustainable development goals, although they follow considerably different socio-economic regimes and fall into different development levels (i.e., developed and developing countries). Therefore, there should be a common underlying mechanism in macroeconomic factors that fosters economic development. In this regard, the motivation behind the study is to reveal a common, but hidden, behavior of the nonlinear causal relations of given macroeconomic factors in these countries to make recommendations about sustainable economic growth for policymakers. To this end, there are three main contributions of the paper. First, the research finds nonlinear dependencies in the related time series between 1960–2015, thereby nonlinear causality tests are performed to reach more reliable information than the linear causality. Second, the study formulates a feedback loop between public and private investment through economic growth, which indicates that public and private investment should stimulate each other directly or indirectly (i.e., through the GDP). Third, the direction of the causality does not affect sustainable economic growth as long as it exists directly or indirectly.

scholarly journals What Factors are Causal to Survival of a Startup?

10.28945/3845 ◽  
2017 ◽  
Vol 1 ◽  
pp. 097-114 ◽  
Author(s):  
Gilbert Gonzalez
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Visual Analytics ◽  
Survival Rates ◽  
The United States ◽  
External Factors ◽  
Domestic Product ◽  
Failure Rates ◽  
Industry Membership ◽  
The U.S

A summary of a qualitative and quantitative investigation into what factors are present at time zero that increase the probability that a startup will achieve long term sustainability. The findings of this study will empower advisors and founders on how to improve startup survival rates. Survival rates for startups in the United States (U.S.) are disappointingly low and economically inefficient. The data shows that the U.S. clearly lags its peer countries in the survival rates of startups. The U.S ranked an unacceptable 11th of 14 among its peer countries in first-year survival rates in recent years. Startup failure does not only impact the entrepreneur; it also impacts creditors, vendors, community stakeholders, and employees (Astrachan & Shanker, 2003). While it is commonly acknowledged that entrepreneurial businesses contribute to economic growth, the influential impact survival can have on economic growth within the community is often understated (Frick, 2016). Guzman and Stern (2016) clearly demonstrate the importance of improving startup survival rates. In their recent study, it was demonstrated that a doubling of entrepreneurial success led to an increase of 6.8% of the Gross Domestic Product. The economic impact of startups on the community makes this area of research even more vital. To avoid failure and improve the sustainability of startups requires an in-depth understanding of the factors that are causal and non-causal to sustainability. While there has been significant investment and support by communities, government, and private foundations, startup failure rates remain virtually unchanged in the last two decades. In spite of the many years of research in the field of entrepreneurship, U.S. failure rates within the first five years average 53% (DOL 2016), regardless of the industry membership or economic cycles (SBA Office of Advocacy, 2012). Identifying factors that are causal and non-causal to the sustainability of emerging businesses is crucial to the founders and stakeholders. Within this study, both internal and external factors that may be causal to the macro survival rate of U.S. startups were studied. The external factors were studied quantitatively, using data published by the Bureau of Labor Statistics (BLS), Federal Reserve Economic Data (FRED) and the Brookings Institute. A protocol of regression analysis and visual analytics were applied to evaluate the quantitative data. It demonstrated that external factors such as the change in real gross domestic product (RGDP), interest rates, and expansion of accelerators have had no significant effect on U.S. macro startup survival rates. Further, the findings confirm that neither geographic location nor industry membership impacted U.S. macro startup survival rates.

Do Public and Private Project Infrastructure Expenditure in States Contribute to the Economic Growth of Nation? Evidences from India

2019 ◽  
Vol 67 (1-2) ◽  
pp. 9-29
Author(s):  
J. C. Edison ◽  
Harish Kumar Singla
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Service Sector ◽  
Private Investment ◽  
Dynamic Panel Data ◽  
Domestic Product ◽  
Regression Equations ◽  
Dynamic Panel ◽  
Public And Private ◽  
Power Construction

The purpose of the article is to find the effect of public expenditure (GI) and private project expenditure (PI) in different states on state gross domestic product (SGDP) and national gross domestic product (NDGP). The study also attempts to examine the sectors that contribute the most in growth of state and nation. The selected sectors in the study include manufacturing, mining, services, power, construction and infrastructure and irrigation. Data of all states and four union territories (UTs) for GI and PI in selected sectors are collected and a panel is formed. Four different regression equations are developed. The estimation is done using two-step Arellano–Bover/Blundell–Bond’s dynamic panel data to account for endogeneity and heteroscedasticity. The results suggest there exist two clusters of states in India. First cluster is of 13 states, which contributes towards the economic growth of nation and the other cluster is 16 states and UTs that do not contribute towards the economic growth of nation. The states that contribute towards the economic growth of nation do it primarily through private investment in the service sector.

scholarly journals The Coming Revolution: The Healthcare Challenge

2018 ◽  
Author(s):  
John Halamka
Keyword(s):  
United States ◽  
Gross Domestic Product ◽  
World Economy ◽  
The United States ◽  
Domestic Product ◽  
The World ◽  
The Right ◽  
The U.S

The United States spends nearly 17% of its gross domestic product on healthcare,1 almost double that of any other industrialized country,2 and achieves worse outcomes by many measures.3 The U.S. may have the most healthcare in the world, but we do not have the best healthcare. Today, Healthcare in the U.S. is a poor value. If we are going to remain competitive in the world economy, we must deliver the right care in the right setting at the right time at the right cost.

scholarly journals The Effects of Budget Deficit on Economic Growth and Development: The Experience of Ghana (1994 – 2014)

2017 ◽  
Vol 13 (4) ◽  
pp. 211 ◽  
Author(s):  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Growth And Development ◽  
Budget Deficit ◽  
Private Investment ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Domestic Product ◽  
Empirical Literature ◽  
Economic Growth And Development

This paper surveyed and access the empirical literature on the sources of budget deficit and their policy implications on the processes of sustainable economic growth and development. The Ghanaian experience and evidence shows that the budget is not projected to be on a sustainable growth path under current socio-economic and political (governance) policies; the budget is projected to increase more quickly than the country’s Gross Domestic Product (GDP). The modeling of underlying variables (Inflation, Gross Domestic Product, Real Interest Rate, Gross Investment, Real Exchange Rate) to estimate the quantitative effect of continued budget deficit on the rate of economic growth, governance and development. The sample used for this study is based on panel data-sets between 1994 and 2014. Results obtained from the analysis pointed to an adverse impact of continued budget deficit on the processes of economic growth and development. The paper recommends the adoption and implementation of policies that could reverse the un-sustained budget deficit leading to crowding out of the private investment but rather, put the economic on a sustained path of growth and, development in the medium to long term.

scholarly journals The Role of TNCs in U.S. Economic Strategy

2021 ◽  
Vol 5 (520) ◽  
pp. 42-48
Author(s):  
O. V. Chernova ◽  
◽  
D. H. Zaiats ◽  
Keyword(s):  
United States ◽  
Gross Domestic Product ◽  
Multinational Corporations ◽  
United States Of America ◽  
Transnational Corporations ◽  
The United States ◽  
Domestic Product ◽  
Economic Strategy ◽  
The Impact ◽  
The U.S

The article is aimed at analyzing the impact of American transnational corporations (TNCs) on the economic strategy of the United States of America. During the research, the essence of the category of «transnational corporation» is considered and the peculiarities of functioning of the leading TNCs are defined. The key vectors of U. S. economic strategy at the present stage are specified. The activities of transnational (multinational) corporations in the United States of America is analyzed. The article carries out a comprehensive analysis of the existing ratings of American transnational corporations. The key indicators of their activity in various spheres of public production and sectors of economy are analyzed. The impact of transnational corporations on the U.S. economy is evaluated by analyzing the dynamics of exports, imports, indices of gross domestic product (GDP) and gross domestic product per capita. The activities of American TNCs in the territories of foreign countries is studied. The analysis of the dynamics of direct foreign investment of the United States of America abroad and the scale of investment in the national economy of the country from abroad is carried out. The geographical structure of foreign direct investment from the United States of America is considered. Existing threats to the U.S. economy caused by transnational corporations are identified, and their consequences are estimated. Conclusions have been drawn on the future prospects of transnationalization of the US economy and the impact of global companies on the economic strategy of the United States of America.

Thailand: Post-Crisis Rebalancing

2012 ◽  
Vol 11 (1) ◽  
pp. 1-26 ◽  
Author(s):  
Chalongphob Sussangkarn ◽  
Deunden Nikomborirak
Keyword(s):  
Economic Growth ◽  
Private Investment ◽  
The United States ◽  
Asian Financial Crisis ◽  
Fiscal Sustainability ◽  
Production Structure ◽  
Regional Trade ◽  
Public And Private ◽  
Regional Markets ◽  
Main Engine

Since the Asian financial crisis in 1997, Thailand has become highly dependent on exports as the main engine of economic growth. In 2008, the ratio of export to GDP was about 76.5 percent. The global economic crisis triggered by the sub-prime loans debacle in the United States has prompted Thailand to rethink its high dependence on export. This paper examines the options for external and internal economic rebalancing strategies for Thailand. External rebalancing will require Thailand to rely more on regional markets and less on the Western markets for its exports. The paper examines the possibility of promoting greater intra-regional trade and Thailand's regional trade strategies. As for internal rebalancing, the paper emphasizes the need to boost domestic public and private investment in terms of both quantity and quality to narrow the current saving–investment gap, bearing in mind the need to ensure fiscal sustainability. Finally, the paper examines broader rebalancing strategies that will help Thailand to become less dependent on exports. These include the need to (1) improve productivity; (2) increase economic efficiency; (3) deepen the production structure and create new dynamic industries; and (4) generate new growth poles.

scholarly journals PENGARUH KURS, GROSS DOMESTIC PRODUCT DAN SOLVABILITAS TERHADAP RETURN SAHAM INVESTOR PADA PERUSAHAAN PERTAMBANGAN

2019 ◽  
Vol 8 (10) ◽  
pp. 6262
Author(s):  
Martina Carissa Dewi ◽  
Luh Gede Sri Artini
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Exchange Rates ◽  
Stock Returns ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Domestic Product ◽  
Mining Company ◽  
Macroeconomic Factors ◽  
Regression Test

The level of return obtained by investors is influenced by microeconomic and macroeconomic factors. This study aims to obtain empirical evidence regarding the effect of exchange rates, Gross Domestic Product and solvency on stock returns. This research was conducted at the mining company in the coal sub-sector on the Indonesia Stock Exchange. All the coal mining sub-sector companies listed on the Stock Exchange for the period 2014-2017 used as the population. The method of determining the sample used is using a saturated sampling technique. Multiple linear regression test used as the data analysis on this research. Based on the results of the analysis of this study it was found that the exchange rate and GDP had a negative and significant effect on stock returns. The solvency proxied by DER has a positive and significant effect on stock returns. Keywords: Exchange Rate, Gross Domestic Product, Solvability and Return.

scholarly journals Managing the Dollar Over Its Cycles

2021 ◽  
Author(s):  
Lawrence L. Kreicher ◽  
Robert N. McCauley
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Private Investment ◽  
The United States ◽  
Exchange Market ◽  
Foreign Exchange Intervention ◽  
Traded Goods ◽  
Service Production ◽  
Withholding Tax ◽  
The U.S

AbstractThe United States has ceded to the rest of the world managing the dollar’s value. For a generation, the U.S. authorities have all but withdrawn from the foreign exchange market. Yet the dollar does not float freely as a result of this hands-off U.S. policy. Instead, other authorities manage the dollar exchange rates, albeit separately. These authorities make heavier purchases of dollars in its downswings than in the upswings, damping its decline. Thus, the Fed finds that accommodative monetary policy transmits less to U.S. manufacturing and traded services, and relies on still lower rates to stimulate interest-sensitive housing and auto demand. The current U.S. dollar policy of naming and shaming surplus-running countries accumulating foreign exchange reserves does not seem to work. Three alternatives warrant consideration. First, the U.S. could reinstate its withholding tax on interest income received by non-residents and even add policy criteria to bilateral tax treaties. Second, the U.S. authorities could retaliate by selling dollars against the currencies of dollar-buying jurisdictions running chronic surpluses. However, either the withholding tax or such retaliatory foreign exchange intervention pose huge practical challenges. Third, the U.S. authorities could re-enter the foreign exchange market, making large-scale asset purchases in foreign currency when the dollar rises sharply against its average value. Such a policy would encourage private investment in U.S. traded goods and service production. The challenge is to set ex ante foreign exchange intervention rules to guide market participants’ expectations, even positioning them to do the authorities’ work.

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