scholarly journals INNOVATION FOR GROWTH: EVIDENCE FROM CEE EUROZONE CANDIDATES

2020 ◽  
Vol 5 (Special) ◽  
pp. 124-134
Author(s):  
Otilia Georgiana Floroiu
Keyword(s):  
Economic Growth ◽  
Swot Analysis ◽  
Value Added ◽  
Clean Energy ◽  
Economic Convergence ◽  
Digital Innovation ◽  
Skilled Personnel ◽  
Development Levels ◽  
Performance Pattern

This paper analyzes the European innovation framework focusing on four Eurozone candidates: Romania, Poland, Hungary, and Czech Republic. In the last decades, almost two-thirds of Europe’s economic growth has been driven by innovation. This idea is supported by impressive scientific findings concerning the correlation between innovation and economic growth. We believe that better innovation performance stimulates economic convergence and in the long term, facilitates the candidates’ transition towards Euro currency adoption. The countries in the study demonstrate a low innovative performance pattern, as our SWOT analysis will show. First, the gross domestic expenditure on research and development levels are far below the Union average. Secondly, there is a lack of cooperation between the academic and business sector, leading to a decreasing number of skilled personnel in the innovation industries. Lastly, these countries are suffering from an incoherent strategy aimed at reducing the productivity gap between domestic and foreign-owned firms. In order for these CEE Eurozone candidates to improve their European Innovation Score and their competitiveness, we recommend increasing investments in R&D, infrastructure, education, healthcare, clean energy and shifting towards higher value-added activities. We are also suggesting supporting digital innovation hubs, the creation of new companies, and facilitating access to finance for small and medium-sized businesses.

scholarly journals Testing the Environmental Kuznets Curve Hypothesis for Turkey: The Role of Clean Energy Consumption and Ecological Footprint

2020 ◽  
Author(s):  
Suleyman Yurtkuran
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Capita Income ◽  
Environmental Kuznets Curve ◽  
Ecological Footprint ◽  
Clean Energy ◽  
Kuznets Curve ◽  
Per Capita ◽  
Environmental Kuznets Curve Hypothesis

Abstract This study aims to investigate the dynamic relationship between income, clean energy consumption, exports, imports, urbanization and ecological footprint for Turkey from 1973 to 2015 using the environmental Kuznets curve hypothesis. The long-term coefficients derived from the ARDL approach demonstrate that import increase the ecological footprint, whereas urbanization and clean energy consumption do not have an impact on environmental pollution in the long-term. In addition, the 2001 dummy variable is negative and statistically significant. The crisis in 2001 slowed down the economic growth rate. This situation also caused reduction of environmental pollution. Moreover, the long run estimates indicate that the EKC hypothesis is valid in Turkey. However, the turning point of per capita income was calculated as $16,045 that outside of the analyzed period. As economic activities increase, human pressure on nature continues to increase. Consequently, the only factor that reduces the ecological footprint has been determined as exports. In contrast, economic growth and clean energy consumption cannot be used as a tool to reduce the ecological footprint. Turkey needs a higher level of per capita income than the threshold level to improve environmental quality.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals Macroeconomic stability as the condition for Bulgaria to join the euro area

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 295-315
Author(s):  
Anna Moździerz
Keyword(s):  
Euro Area ◽  
Budget Deficit ◽  
Value Added ◽  
Economic Convergence ◽  
Convergence Criteria ◽  
Macroeconomic Imbalances ◽  
Macroeconomic Indicators ◽  
The Subject ◽  
Macroeconomic Stability

Research background: The subject of research is the macroeconomic situation of Bulgaria in the context of the country's preparations for joining the euro area. In 2018, the Bulgarian government approved a plan of preparations covering the period until the end of June 2019, which assumes that the country will join the ERM II mechanism in July 2019, and the euro area on 1 January 2022. Bulgaria meets four nominal convergence criteria regarding inflation, long-term interest rate, budget deficit and public debt. The national currency is pegged to the euro under the currency board arrangement. Despite this, the implementation of this optimistic scenario may be difficult because since the 2007 crisis, the European institutions pay more attention to macroeconomic stability and the sustainability of convergence. Purpose of the article: The aim of the article is to identify the factors destabilising macroeconomic equilibrium in Bulgaria, which are a potential obstacle to the adoption of the euro by Bulgaria on schedule. Methods: The research was based on the changes in selected macroeconomic indicators, as well as on the method used by the European Commission to detect macroeconomic imbalances. The observation and analysis covered the 2007–2018 period.  Findings & Value added: The research results indicate that the low level of socio-economic convergence of Bulgaria and macroeconomic imbalances may delay its membership in the monetary union. Therefore, while respecting the country's aspirations to join the euro area, one cannot ignore the risk of another destabilisation of the euro area. 

scholarly journals Economic growth and disparities: an empirical analysis for the Central and Eastern European countries

Equilibrium ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 613-631 ◽  
Author(s):  
Wojciech Kisiała ◽  
Katarzyna Suszyńska
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Eastern European ◽  
Regional Inequalities ◽  
Country Level ◽  
Research Procedure ◽  
Development Levels ◽  
Eastern European Countries ◽  
The Relationship ◽  
Economic Inequalities

Research background: The processes of economic convergence observed in many devel-oping countries are characterized by reduction of economic differences on the cross-country level, which are accompanied by growing internal economic inequalities. This may stem from the fact that in the catching-up countries a more dynamic growth pattern is observed in the economically strongest regions, which is initially reflected in spatial polarization and increasing regional inequalities. However, just as the countries reach higher levels of devel-opment, the diffusion of growth-inducing impulses to less-developed areas should lead to the spatial equalizing of the development levels and reducing regional inequalities. Purpose of the article: The aim of the paper is to determine the relationship be-tween the level of economic growth and observed economic inequalities in Central and Eastern European (CEE) countries. The theoretical framework adopted to describe and explain those relations is the so-called Williamson’s hypothesis in which the relationship between the scale of regional inequalities and economic growth is illustrated by a curve shaped like an inverted U. Methods: The research procedure was intended to verify William-son’s hypothesis by estimating parabolic econometric models. Indicators of economic growth along with measure of regional inequalities (Williamson’s coefficient of variation) were used in the regression modeling. The research period spanned the years 1995-2014. Findings & Value added: In the light of the study of CEE countries, it was possible to observe both convergence symptoms as well as divergence tendencies. It can be thus stated that the analyzed CEE countries followed a similar path to the one observed earlier by Wil-liamson in other developing countries. However, the analyses conducted by the authors at the national and regional levels of CEE countries were equivocal and did not fully support the theoretical assumptions of Williamson’s hypothesis.

The Causal Relationship Between Foreign Debt and Economic Growth: Evidence from Commonwealth Independent States

2021 ◽  
pp. 001573252110183
Author(s):  
Nermin Yasar
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Economic Transition ◽  
Foreign Debt ◽  
External Debt ◽  
Value Added ◽  
Transition Process ◽  
Jel Classification ◽  
Independent States

This study investigates the relationship between external borrowing and economic growth in the Commonwealth Independent States during the period 1995–2018. Autoregressive distributed lag (ARDL) model is employed to determine the co-integration relationship among the series and then vector error correction model (VECM) is used to analyse the causality between external debt and income. The obtained results suggest that there is a negative long-term unidirectional causal relationship running from external debt to GDP presenting a strong evidence of existence of debt overhang hypothesis. The possible reasons for this unidirectional causal relationship can be explained by poor management of provided financial resources and incomplete governance in economic transition process along with structural rigidities and immature institutions in these countries which, in the long term, resulted in insufficient capital charged to service external debt. The policymakers in these post-Soviet countries should not use foreign loans to capitalise the deficits in the economies; instead, they should be more determined in employing these funds in the areas that will create national value-added production and, thus, future income. JEL Classification: C10, F34, H63

scholarly journals Financial Development, Clean Energy, and Human Capital: Roadmap towards Sustainable Growth in América Latina

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3763
Author(s):  
Pablo Ponce ◽  
José Álvarez-García ◽  
Johanna Medina ◽  
María de la Cruz del Río-Rama
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Clean Energy ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Renewable Energy Consumption

The consumption of renewable energy has become a substitute for fossil fuels to mitigate environmental degradation. However, this substitution of energy raises many questions regarding its possible impact on economic growth. In this context, this research aims to examine the long-term relationship between economic growth and financial development, non-renewable energy, renewable energy, and human capital in 16 Latin American countries. Panel data techniques during the period 1988–2018 and statistical information compiled by the World Bank and Penn Word Table databases were used. Second-generation econometric techniques (cross-sectionally augmented Dickey–Fuller (CADF) and cross-sectionally augmented IPS (CIPS) were used in the work methodology, which allow the presence of cross-sectional dependence between sections to be controlled. The main results indicate that there is a long-term equilibrium relationship between financial development, non-renewable energy consumption, renewable energy consumption, human capital, and economic growth. The results show that the consumption of renewable energy does not compromise economic growth; the 1% increase in renewable energy consumption is related to the 1% increase in economic growth. The policy implications suggest some measures to ensure economic growth considering the role of green energy and human capital.

scholarly journals Is agriculture an engine of economic reconstruction and development in the case of the Republic of Burundi?

2021 ◽  
Vol 905 (1) ◽  
pp. 012071
Author(s):  
J B Aboyitungiye ◽  
D Prasetyani
Keyword(s):  
Economic Growth ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Arable Land ◽  
Value Added ◽  
World Population ◽  
Long Run ◽  
Ardl Approach ◽  
The Republic

Abstract Despite its importance for the economy, the agricultural sector faces many constraints that hamper its growth. With the increase in the world population and the demand for food production, farmers need to produce more with less arable land. This study used the ARDL approach to model the long-term and short-term dynamics and proposed examining the agricultural sector’s contribution to Burundi’s economic growth. Econometric estimations revealed that the gross domestic product per capita, agricultural, and exports (value-added) have long-run relationships but at different levels. The study, therefore, revealed that inflation persists in the short and long term. The consumer price of agricultural products reduces the country’s economic growth. Major adjustments in agricultural, environmental, and macroeconomic policy at national levels will have to be made to create the conditions for sustainable agricultural development.

Alternative strategies of overcoming stagnationand a “new growth model” of the Russian economy

2017 ◽  
pp. 121-137 ◽  
Author(s):  
V. Manevitch
Keyword(s):  
Economic Growth ◽  
Oil And Gas ◽  
Raw Materials ◽  
Value Added ◽  
Net Income ◽  
Russian Economy ◽  
Short Run ◽  
Monetary And Fiscal Policy ◽  
Rate Of Accumulation

The export-raw materials model of the Russian economy has exhausted its potential to induce economic growth and has become one of the main reasons for prolonged stagnation. The profit of oil and gas complex concentrates a significant part of the value added created in other activities. The mechanism ensuring such concentration is lowed ruble exchange rate and monopoly pricing. From 40 to 60% of foreign exchange earnings from oil and gas exports is used for the export of capital and payment of net income of non-residents. The reduction of net exports to the minimum will bring the rate of accumulation to the saving rate. Reallocation of investment in favor of infrastructure and processing industries will increase their effectiveness. Thus the tasks of creating new centers of income, forming a new mechanism of economic growth will be solved. Monetary and fiscal policy will be effective not only in the short run but also in the long-term period.

scholarly journals Formulating a Long Term Strategy for Sustainable Palm Oil Biodiesel Development in Indonesia

2016 ◽  
Vol 9 (4) ◽  
pp. 124 ◽  
Author(s):  
Beny A. Purwanto ◽  
Erliza Hambali ◽  
Yandra Arkeman ◽  
Hendri Wijaya
Keyword(s):  
Palm Oil ◽  
Swot Analysis ◽  
Technology Development ◽  
Driving Forces ◽  
Value Added ◽  
Raw Material ◽  
High Price ◽  
The Government ◽  
Palm Oil Biodiesel

<p class="abstract-1"><strong></strong>Indonesia, the largest producer of palm oil, has been developed palm oil biodiesel as renewable energy in the last decade. Indonesia biodiesel development policies aim to increase domestic value added of palm oil product and reduce the reliance on fossil fuel. Indonesia has embarked on a comprehensive palm oil biodiesel program since 2006 and targeted the 20% biodiesel blend (B20) in 2016. This article explores the strategy formulation by accommodate the stakeholder perspective in the problems and the solutions. This research analyzes the information from in depth interview with biodiesel stakeholders (government, industry and researcher) in Indonesia by combine Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis with a Multi Actor Analysis approach. The results show the problems of biodiesel development are mainly on the high production cost due to high price of raw material, production technology and distribution infrastructure. The government policy, technology development and raw material supply are the driving forces of the biodiesel development in Indonesia. In the long term strategy, government of Indonesia should secure the biodiesel raw material, develop an environmental friendly technology in biodiesel processing, and accommodate any improvement idea from other stakeholders.</p>

scholarly journals Analysis on the Influence of China’s Energy Consumption on Economic Growth

2019 ◽  
Vol 11 (14) ◽  
pp. 3982 ◽  
Author(s):  
Maolin Cheng ◽  
Bin Liu
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Natural Gas ◽  
Great Influence ◽  
Clean Energy ◽  
Marginal Effect ◽  
Contribution Rate ◽  
Coal Consumption ◽  
Rate Analysis

Many studies have shown that energy consumption has a great influence on economic growth. This paper divides China’s energy into coal, oil, natural gas and clean energy (hydroenergy, nuclear energy, wind energy and solar energy), and then studies the influences of China’s coal, oil, natural gas and clean energy on economic growth quantitatively using econometric models. This paper uses three methods. The first method is correlative degree analysis. The paper calculates the correlative degrees between four energy consumption and economic growth (GDP), and then compares the influences of four different kinds of energy consumption on economic growth in terms of the correlative degree. The second method is multiplier analysis. The paper uses the lagged variable regression model to calculate four energy consumption’s current multipliers, dynamic multipliers and long-term multipliers for economic growth, and then compares the influences of four kinds of energy consumption on economic growth in terms of marginal effect. The third method is contribution rate analysis. The paper calculates the rates of contribution of four kinds of energy consumption to economic growth and then compares the influences of four energy consumption on economic growth in terms of input and output. The paper makes an empirical analysis on influences of China’s energy consumption on economic growth. Analysis results show that in terms of correlative degree, natural gas has the greatest influence on GDP, followed by clean energy, oil and coal; in terms of the multiplier effect, natural gas has the biggest current multiplier and long-term multiplier, followed by clean energy, oil and coal; in terms of contribution rate, clean energy has the biggest contribution rate, followed by natural gas, oil and coal. Overall, China’s natural gas consumption and clean energy consumption have more influence on economic growth than coal consumption and oil consumption, and show a rising trend.

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