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21 – 30 of over 149000Lilia V. Ermolina, Marine M. Manukyan and Ekaterina S. Podbornova
The purpose of the chapter is to specify effects of crises and to evaluate their influence on growth and development of socio-economic systems.
Abstract
Purpose
The purpose of the chapter is to specify effects of crises and to evaluate their influence on growth and development of socio-economic systems.
Methodology
The authors use the method of regression analysis, with the help of which dependence on growth of the global GDP of various indicators that reflect crisis effects is determined. The information and analytical basis of the research is statistical materials of the World Bank and the International Monetary Fund. Timeframe of the research covers 2007–2016. The research is performed at the level of global economy on the whole for provision of representativeness of data and authenticity of results.
Conclusions
It is determined that influence of crisis on socio-economic system is expressed in short-term, mid-term, and long-term periods, including the next phase of economic cycle (phase of rise). Growth and development of economy after crisis are predetermined by its influence – crisis creates in a socio-economic system the environment that makes economic subject and state regulators cooperate and stimulate more active state support for society and business. Comprehensive study of the wave of economic cycle allows determining crisis as an impulse for development of economy, which expands its traditional negative treatment as a source of recession. It is also shown that crisis leads not only to financial (reduction of total savings in economy) but also social (growth of unemployment rate) and other – e.g., ecological (post-crisis increase of the share of renewable energy in the structure of production of electric energy) – effects in the economic system.
Originality/value
It is substantiated that influence of crises on growth and development of socio-economic systems is contradictory. On the one hand, crisis leads to temporary decline of GDP and slows down the development of socio-economic systems. On the other hand, crisis opens new possibilities for further growth and development of these systems, preventing their stagnation.
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Ebikabowei Biedomo Aduku, Ogochukwu Christiana Anyanwu and Richardson Kojo Edeme
This chapter examines the relationship between the gender gap in labor force participation, intensive growth and economic welfare in Sub-Saharan African (SSA) from 1981 to 2020…
Abstract
This chapter examines the relationship between the gender gap in labor force participation, intensive growth and economic welfare in Sub-Saharan African (SSA) from 1981 to 2020 under the framework of the classical production function. The generalized method of moment (GMM) technique was employed in analyzing the data. The empirical result showed a negative and significant effect of the gender gap in labor force participation on intensive growth. It was also found that the gender gap in labor force participation had a negative and insignificant effect on economic welfare in SSA. Other findings showed that male labor force participation had a positive and insignificant effect on both intensive growth and economic welfare, while female labor force participation had a negative and significant effect on intensive growth and a negative and insignificant effect on economic welfare. Trade openness had a positive and significant effect on both intensive growth and economic welfare. Based on the findings, narrowing the gender gap in labor force participation has to be given more considerable attention in the SSA region.
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This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages…
Abstract
This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages, reserve army, and capital accumulation in his investigation of economic development. The Lewis 1954 development model is compared to other models advanced at the time by Harrod, Domar, Swan, Kaldor, Solow, von Neumann, Nurkse, Rosenstein-Rodan, Myint, and others. Lewis applied the notion of economic duality to open and closed economies.
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Basing himself on the premise that present economic progress cannot follow the ‘Business as usual paradigm’ and hope for continued and unlimited progress, the author holds that we…
Abstract
Basing himself on the premise that present economic progress cannot follow the ‘Business as usual paradigm’ and hope for continued and unlimited progress, the author holds that we need to look into the larger dimensions of growth and development, which include social, environmental and other complex factors. So in this chapter, the author makes some pertinent suggestions for a sustainable growth model inspired by green growth and degrowth.
The first section evaluates the salient features of green growth and its drawbacks. It is followed by a discussion on the notion of degrowth, with its challenge to change the direction of growth (economic, ecological, social and cultural), without which human civilisation, as we know it today, may not survive. Finally, in the concluding chapter, based on these two notions of green growth and degrowth, an all-inclusive and sustainable regrowth model is propounded.
By creating an awareness of the need to shift development goals and Corporate Social Responsibility (CSR), the author argues that we could use economic regrowth strategically and responsibly to make the world more sustainable and viable. Responsible corporates will make their contribution to such an organic, resilient and sustainable regrowth and their CSR activities could be the starting point for this change, without which humanity's future is seriously threatened.
Finally, the author acknowledges that humanity has profited from the tremendous technological and economic progress we have made in the last four centuries, learnt from its mistakes and are ready to reorient ourselves individually and collectively towards a sustainable economic regrowth.
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This study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how…
Abstract
Purpose
This study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how changes in capital regulation can impact banking lending practices and subsequently influence economic growth, while also investigating the reciprocal effects of banking lending on economic growth.
Design/methodology/approach
The author follows several previous studies such as Shrieves and Dahl (1992), Beck and Levine (2002), Altunbas et al. (2007), Saeed et al. (2020) and Stewart et al. (2021) to identify a system of three equations, regarding economic growth, capital and banking financing growth, respectively. The author estimates the parameters of all equations simultaneously using the seemingly unrelated regression method (Zellner, 1962) for a sample of 46 Islamic banks and 113 conventional banks during 2002–2022. These banks operate in 13 Muslim countries from Middle East and North Africa and Southeast Asia.
Findings
The author’s findings demonstrate that in the case of Islamic banking, an increase in loan growth stimulates economic growth, while an increasing capital ratio positively influences economic growth but is accompanied by a reduction in loan growth. This result corroborates the findings of Stewart et al. (2021), which indicate that regulatory capital reduces unstable credit while improving gross domestic product growth. However, in the case of conventional banks, the response to an increase in loan growth on Gross Domestic Product Per Capita Growth (GDPCG) is ambiguous, while the capital ratio improves GDPCG and promotes LOANG, which, in turn, increases risk.
Practical implications
The Islamic banks can continue to significantly contribute to economic growth by effectively directing their available capital toward viable investment opportunities and supporting sustainable financial practices, even in the presence of potential constraints on loan growth. As for conventional banks, they are invited to increase their capital levels to ensure a strong and resilient financial system that can support lending and facilitate economic growth.
Originality/value
To the best of the author’s knowledge, this paper is the first to explore the triple relationship between capital requirements, Islamic bank lending and economic growth.
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Biswajit Patra and Narayan Sethi
This paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on…
Abstract
Purpose
This paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on economic growth for all Asian countries.
Design/methodology/approach
A fixed-effect model with Driscoll–Kraay panel corrected estimators was employed to find the direct and mediating impact of financial developments on growth for all 47 Asian economies from 1980 to 2020. The bootstrapped panel-quantile regression (BPQR) model is used to check how this effect varies for different income groups of countries.
Findings
The results demonstrated that financial development positively impacts countries' economic growth. The interaction effect of financial development with FDI, foreign aid and foreign trade negatively impacts economic growth. The BPQR results showed that FDI and foreign aid help in the growth of lower quantile economies; however, the impact is negative for middle- and upper-income countries. Trade impacts growth positively for all the quantiles of economies.
Research limitations/implications
The results suggest that the Asian economies must continue to provide thrust on the financial development of their own countries to achieve better growth. It also implied that the dependence on external finance is good for low-income countries and not advisable for middle- and upper-income countries.
Originality/value
To the best of the authors’ knowledge, the current study is the first to provide empirical evidence on analyzing both the direct and interaction effect of financial development on economic growth by considering all the Asian economies.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2022-0587
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Vandana Goswami and Lalit Goswami
The purpose of this paper is to analyse the relationship between foreign direct investment (FDI) inflows and economic growth with a special focus on the institutional environment…
Abstract
Purpose
The purpose of this paper is to analyse the relationship between foreign direct investment (FDI) inflows and economic growth with a special focus on the institutional environment at the state level. FDI-led economic growth and economic growth-led FDI have two dominant theoretical foundations, but empirical research supports contradictory findings. These perspectives largely ignore the institutional environment, assuming institutions to be background information.
Design/methodology/approach
To examine the causal relationship between FDI, the Granger causality method has been used. The impact of FDI inflows and other institutional factors on economic growth has been examined using the panel data regression method. The principal component analysis (PCA) method has also been used to develop indexes for some variables.
Findings
Results indicate a two-way Granger causality between FDI inflows and economic growth at the state level. Infrastructures, education expenses, labour availability and gross fixed-capital formation (GFCF) are positive and significant determinants, whilst corruption and FDI inflows are leaving negative impact on state-wise economic growth.
Originality/value
This study contributes to the body of the literature in four different ways: first, it empirically examines the trends and patterns of subnational FDI inflow and economic growth disparity in India; second, it examines the causality between FDI and economic growth. Third, with the institution-based paradigm in international business, it investigates how institutional variables affect the expansion of the economy. Fourth, it extends prior research by examining the link at the state level using a large panel data set made up of 29 states and 7 union territories (UTs) over the years 2000–2019.
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