Abstract: This paper addressed the impacts of energy consumption, economic growth, financial development, and population size on environmental degradation using grey relational analysis (GRA) for China, where foreign direct investment (FDI) inflows is the proxy variable for financial development. The more recent historical data during the period 2004–2011 are used, because the use of very old data for data analysis may not be suitable for rapidly developing countries. The results of the GRA indicate that the linkage effects of energy consumption–emissions and GDP–emissions are ranked first and second, respectively. These reveal that energy consumption and economic growth are strongly correlated with emissions. Higher economic growth requires more energy consumption and increasing environmental pollution. Likewise, more efficient energy use needs a higher level of economic development. Therefore, policies to improve energy efficiency and create a low-carbon economy can reduce emissions without hurting economic growth. The finding of FDI–emissions linkage is ranked third. This indicates that China do not apply weak environmental regulations to attract inward FDI. Furthermore, China’s government in attracting inward FDI should strengthen environmental policy. The finding of population–emissions linkage effect is ranked fourth, implying that population size does not directly affect CO2 emissions, even though China has the world’s largest population, and Chinese people are very economical use of energy-related products. Overall, the energy conservation, improving efficiency, managing demand, and financial development, which aim at curtailing waste of energy, reducing both energy consumption and emissions, and without loss of the country’s competitiveness, can be adopted for developing economies. The GRA is one of the best way to use a lower data to build a dynamic analysis model.
Abstract: This project uses panel regression analyses to investigate the relationships between geography, institutions, and economic development, as guided by the theories of the 18th century French philosopher Montesquieu. Contemporary scholars of political economy perpetually misinterpret Montesquieu’s theories on climate, and in doing so they miss what could be the key to resolving the geography vs. institutions debate. There is a conspicuous gap in this literature, in that it does not consider whether geography and institutors might have an interactive, dynamic effect on economic development. This project seeks to bridge that gap. Data are used for all available countries over the years 1980-2013. Two interaction terms between geographic and institutional variables are employed within the empirical analyses, and these offer a unique contribution to the ongoing geography vs. institutions debate within the political economy literature. This study finds that there is indeed an interactive effect between geography and institutions, and that this interaction has a statistically significant effect on economic development. Democracy (as measured by Polity score) and rule of law and property rights (as measured by the Fraser index) have positive effects on economic development (as measured by GDP per capita), yet the magnitude of these effects are stronger in contexts where a low percent of the national population lives in the geographical tropics. This has implications for promoting economic development, and it highlights the importance of understanding geographical context.
Abstract: Energy is a fundamental component in economic development and energy consumption is an index of prosperity and the standard of living. The consumption of energy per capita has increased significantly over the last decades, as the standard of living has improved. Turkey’s geographical location has several advantages for extensive use of wind power. Among the renewable sources, Turkey has very high wind energy potential. Information such as installation capacity of wind power plants in installation, under construction and license stages in the country are reported in detail. Some suggestions are presented in order to increase the wind power installation capacity of Turkey. Turkey’s economic and social development has led to a massive increase in demand for electricity over the last decades. Since the Turkey has no major oil or gas reserves, it is highly dependent on energy imports and is exposed to energy insecurity in the future. But Turkey does have huge potential for renewable energy utilization. There has been a huge growth in the construction of wind power plants and small hydropower plants in recent years. To meet the growing energy demand, the Turkish Government has adopted incentives for investments in renewable energy production. Wind energy investments evaluated the impact of feed-in tariffs (FIT) based on three scenarios that are optimistic, realistic and pessimistic with APLUS software that is developed for rational evaluation for energy market. Results of the three scenarios are evaluated in the view of electricity market for Turkey.
Abstract: The objective of this study is to analyze the evolution of some social and economic indicators of Mercosur´s economies from 1980 to 2012, based on the statistics of the Latin American Integration Association (LAIA). The objective is to observe if after the accession of these economies to Mercosur (the first accessions occurred in 1994) these indicators showed better performance, in order to demonstrate if economic integration contributed to improved trade, macroeconomic performance, and level of social and economic development of member countries. To this end, the methodologies used will be a literature review and descriptive statistics. The theoretical framework that guides the work are the theories of Integration: Classical Liberal, Marxist and structural-proactive. The results reveal that most social and economic indicators showed better performance in those economies that joined Mercosur after 1994. This work is the result of an investigation already completed.
Abstract: Small and medium enterprises (SMEs) are regarded as the engine for economic development, notwithstanding their continuous financing conundrum. In the case of developing countries, access to finance is a reflection of the effectiveness of government policy. The widely accepted perspective to assess small businesses’ access to finance is that of economic view. The existing body of literature presents access to finance in three dimensions; they are accessibility, eligibility and affordability. Within this perspective, the role of socio-cultural has not explored. This study is aimed at investigating the existence of any socio-cultural factors within access to finance issue in Asian countries where governance is enriched by countries’ values and beliefs. The significance of this study is the instigation of supplementary dimension to assess access to finance that eventually contributes to the development of micro-finance policy. Indonesia and Thailand are selected as cases in point, where distinction is drawn on the level of cultural diversity and micro-finance policy in respective country. A questionnaire is used to collect information related to the three dimensions of access to finance as well as to explore alternative financing reasoning to elaborate the issue from the demand side. Questionnaires are distributed to 60 small business owners operating in Indonesia and the same number in Thailand. In order to present a complete understanding on the matter at hand, interviews with banks are conducted to capture the perspective as presented by the supply side. Research findings show that small business owners and banks in Indonesia and Thailand are in agreement that access to finance is not deemed as an issue. However, trust issue that exists mutually between financing users and providers leads small business owners in Indonesia to look for alternative financing other than banks. The findings contribute to the refinement of micro-financing policy in Indonesia and Thailand.
Abstract: Enterprise growth is generally considered as a key driver of competitiveness, employment, economic development and social inclusion. As such, it is perceived to be a highly desirable outcome of entrepreneurship for scholars and decision makers. The huge academic debate resulted in the multitude of theoretical frameworks focused on explaining growth stages, determinants and future prospects. It has been widely accepted that enterprise growth is most likely nonlinear, temporal and related to the variety of factors which reflect the individual, firm, organizational, industry or environmental determinants of growth. However, factors that affect growth are not easily captured, instruments to measure those factors are often arbitrary, causality between variables and growth is elusive, indicating that growth is not easily modeled. Furthermore, in line with heterogeneous nature of the growth phenomenon, there is a vast number of measurement constructs assessing growth which are used interchangeably. Differences among various growth measures, at conceptual as well as at operationalization level, can hinder theory development which emphasizes the need for more empirically robust studies. In line with these highlights, the main purpose of this paper is twofold. Firstly, to compare structure and performance of three growth prediction models based on the main growth measures: Revenues, employment and assets growth. Secondly, to explore the prospects of financial indicators, set as exact, visible, standardized and accessible variables, to serve as determinants of enterprise growth. Finally, to contribute to the understanding of the implications on research results and recommendations for growth caused by different growth measures. The models include a range of financial indicators as lag determinants of the enterprises’ performances during the 2008-2013, extracted from the national register of the financial statements of SMEs in Croatia. The design and testing stage of the modeling used the logistic regression procedures. Findings confirm that growth prediction models based on different measures of growth have different set of predictors. Moreover, the relationship between particular predictors and growth measure is inconsistent, namely the same predictor positively related to one growth measure may exert negative effect on a different growth measure. Overall, financial indicators alone can serve as good proxy of growth and yield adequate predictive power of the models. The paper sheds light on both methodology and conceptual framework of enterprise growth by using a range of variables which serve as a proxy for the multitude of internal and external determinants, but are unlike them, accessible, available, exact and free of perceptual nuances in building up the model. Selection of the growth measure seems to have significant impact on the implications and recommendations related to growth. Furthermore, the paper points out to potential pitfalls of measuring and predicting growth. Overall, the results and the implications of the study are relevant for advancing academic debates on growth-related methodology, and can contribute to evidence-based decisions of policy makers.
Abstract: The paper analyses the role of small farms in socio-economic development of agriculture in Georgia and evaluates modern concepts regarding the development of the farms of this size. The scale of farms in Georgia is studied and the major problems are revealed. Opportunities and directions of diversification are discussed from the point of increasing the share of Georgian grapes and wine both on domestic and international markets. It’s shown that the size of vineyard areas is directly reflected on the grape and wine production potential. Accordingly, vineyard area and grape production dynamics is discussed. Comparative analysis of small farms in Georgia and Italy is made and the major differences are identified. Diversification is evaluated based on cost-benefit analysis on the one hand and on the other hand, from the point of promoting economic activities, protecting nature and rural area development. The paper provides proofs for the outcomes of diversification. The key hindering factors for the development of small farms are identified and corresponding conclusions are made, based on which recommendations for diversification of the farms of this size are developed.
Abstract: In subjective terms, Polish SME sector occupies a
prominent position in the national economic development, in which
planning of the management strategies should be primarily based on
identifying and meeting the innovation needs. As a research sample, there is chosen a printing sector of industry.
SMEs share in printing sector in Poland is estimated at the level of
81% of all enterprises. In recent years, the printing industry achieved
one of the highest levels of EU support in Poland. There is a
relatively high increase in the development of technological
innovations in equipment and the associated significant increase in
production capacity. It can be also noticed that on average, every
third enterprise belonging to the printing industry has implemented
innovations, but not all of them effected in better economic results.
Therefore, the aim of this article is to evaluate the impact of the
implementation of innovation projects financed from the EU funds
for performance of SMEs in the printing industry. As the results of research of EU funds co-financing effects on the
development of innovation in the printing industry, it was specified
that examined SMEs prefer to implement product innovation to
receive a grant to the project at a level between 40% to 60%, the
remaining part of the investment is usually covered with equity. The most common type of innovation had indicated a single
implementation, related only to the change in process, technology, or
organization. The relationship between variables of the EU funds and
management of innovative activities was verified. It has been
observed that the identified variables arising from the support in a
form of the EU funds had a positive effect on the level of earned
revenue, the increase in margin and in increase in employment as
well. It was confirmed that the implemented innovations supported
by the European funds have a positive impact on the performance of
the printing companies. Although there is a risk that due to the
decreasing demand for printing services such a high level of funding
the companies in this sector will significantly increase competition in
the long term, that may also contribute to the economic problems of
the enterprises belonging to the analyzed branch.
Abstract: It is very important for a developing nation to
developing their infrastructure on the prime priority because their
infrastructure particularly their roads and transportation functions as a
blood in the system. Almost 1.1 billion populations share the travel
and transportation industry in India. On the other hand, the Pakistan
transportation industry is also extensive and elevating about 170
million users of transportation. Indian and Pakistani specifically
within bus industry are well connected within and between the urban
and rural areas. The transportation industry is radically helping the
economic alleviation of both countries. Due to high economic
instability, unemployment and poverty rate both countries
governments are very serious and committed to help for boosting
their economy. They believe that any form of transportation
development would play a vital role in the development of land,
infrastructure which could indirectly support many other industries’
developments, such as tourism, freighting and shipping businesses,
just to mention a few. However, it seems that their previous
transportation planning in the due course has failed to meet the fast
growing demand. As with the span of time, both the countries are
looking forward to a long-term, and economical solutions, because
the demand is from time to time keep appreciating and reacting
according to other key economic drivers. Content analysis method
and case study approach is used in this paper and secondary data
from the bureau of statistic is used for case analysis. The paper
focused on the mobility concerns of the lower and middle-income
people in India and Pakistan. The paper is aimed to highlight the
weaknesses, opportunities and limitations resulting from low priority
industry for a government, which is making the either country's
public suffer. The paper has concluded that the main issue is
identified as the slow, inappropriate, and unfavorable decisions which
are not in favor of long-term country’s economic development and
public interest. The paper also recommends to future research
avenues for public and private transportation, which is continuously
failing to meet the public expectations.
Abstract: Economic development and growth are significantly
linked to the consistent and sustainable sector of small and medium
enterprises (SMEs). Banks are the frontrunners in financing and
advising SMEs. The main objective of the study is to assess the
tendency of SMEs to use the Islamic bank. Model was developed
using quantitative method with a hypothetical-deductive testing
approach. Model (N = 364) used primary data on the tendency of
SMEs to use Islamic banks gathered from questionnaire. It is found
by Mann-Whitney test that the tendency to use Islamic bank varies
between those firms which consider formal financing with the ones
relying on informal financing with the latter tends more to use
Islamic bank. This study can serve academic researchers, policy
makers, and developing countries as a model of SMEs’ desirability to
Islamic banking.
Abstract: Evolutionary Algorithms (EAs) have been used
widely through evolution theory to discover acceptable solutions that
corresponds to challenges such as natural resources management.
EAs are also used to solve varied problems in the real world. EAs
have been rapidly identified for its ease in handling multiple
objective problems. Reservoir operations is a vital and researchable
area which has been studied in the last few decades due to the limited
nature of water resources that is found mostly in the semi-arid
regions of the world. The state of some developing economy that
depends on electricity for overall development through hydropower
production, a renewable form of energy, is appalling due to water
scarcity. This paper presents a review of the applications of
evolutionary algorithms to reservoir operation for hydropower
production. This review includes the discussion on areas such as
genetic algorithm, differential evolution, and reservoir operation. It
also identified the research gaps discovered in these areas. The results
of this study will be an eye opener for researchers and decision
makers to think deeply of the adverse effect of water scarcity and
drought towards economic development of a nation. Hence, it
becomes imperative to identify evolutionary algorithms that can
address this issue which can hamper effective hydropower
generation.
Abstract: A biosphere reserve is developed to create harmony
amongst economic development, community development, and
environmental protection, through partnership between human and
nature. Giam Siak Kecil Bukit Batu Biosphere Reserve (GSKBB BR)
in Riau Province, Indonesia, is unique in that it has peat soil
dominating the area, many springs essential for human livelihood,
high biodiversity. Furthermore, it is the only biosphere reserve
covering privately managed production forest areas. In this research, we aimed at analyzing the threat of deforestation
and forest fire, and the potential of CO2 emission at GSKBB BR. We
used Landsat image, arcView software, and ERDAS IMAGINE 8.5
Software to conduct spatial analysis of land cover and land use
changes, calculated CO2 emission based on emission potential from
each land cover and land use type, and exercised simple linear
regression to demonstrate the relation between CO2 emission
potential and deforestation. The result showed that, beside in the buffer zone and transition
area, deforestation also occurred in the core area. Spatial analysis of
land cover and land use changes from years 2010, 2012, and 2014
revealed that there were changes of land cover and land use from
natural forest and industrial plantation forest to other land use types,
such as garden, mixed garden, settlement, paddy fields, burnt areas,
and dry agricultural land. Deforestation in core area, particularly at
the Giam Siak Kecil Wildlife Reserve and Bukit Batu Wildlife
Reserve, occurred in the form of changes from natural forest in to
garden, mixed garden, shrubs, swamp shrubs, dry agricultural land,
open area, and burnt area. In the buffer zone and transition area,
changes also happened, what once swamp forest changed into garden,
mixed garden, open area, shrubs, swamp shrubs, and dry agricultural
land. Spatial analysis on land cover and land use changes indicated
that deforestation rate in the biosphere reserve from 2010 to 2014 had
reached 16 119 ha/year. Beside deforestation, threat toward the
biosphere reserve area also came from forest fire. The occurrence of forest fire in 2014 had burned 101 723 ha of the
area, in which 9 355 ha of core area, and 92 368 ha of buffer zone
and transition area. Deforestation and forest fire had increased CO2
emission as much as 24 903 855 ton/year.
Abstract: The increasing volume of solid waste generated,
collected and disposed daily complicate adequate management of
solid waste by relevant agency like Niger State Environmental
Protection Agency (NISEPA). In addition, the impacts of solid waste
on the natural environment and human livelihood require
identification of cost-effective ways for sustainable municipal waste
management in Nigeria. These signal the need for identifying
environment-friendly initiative and local solution to address the
problem of municipal solid waste. A research field was secured at
Pago, Minna, Niger State which is located in the guinea savanna belt
of Nigeria, within longitude 60 361 4311 - 4511 and latitude 90 291
37.6111 - .6211 N. Poultry droppings, decomposed household waste
manure and NPK treatments were used. The experimental field was
divided into three replications and four (4) treatments on each
replication making a total of twelve (12) plots. The treatments were
allotted using Randomized Complete Block Design (RCBD) and
Data collected was analyzed using SPSS software and RCBD. The
result depicts variation in plant height and number of leaves at 50%
flowering; Poultry dropping records the highest height while the
number of leaves for waste manure competes fairly well with NPK
treatment. Similarly, the varying treatments significantly increase
vegetable yield, as the control (non-treatment) records the least yield
for the three vegetable samples. Adoption of this organic manure for
cultivation does not only enhance environment quality and attainment
of food security but will contribute to local economic development,
poverty alleviation as well as social inclusion.
Abstract: This study analyzes the critical gaps in the
architecture of European stability and the expected role of the
banking union as the new important step towards completing the
Economic and Monetary Union that should enable the creation of
safe and sound financial sector for the euro area market. The single
rulebook together with the Single Supervisory Mechanism and the
Single Resolution Mechanism - as two main pillars of the banking
union, should provide a consistent application of common rules and
administrative standards for supervision, recovery and resolution of
banks – with the final aim of replacing the former bail-out practice
with the bail-in system through which possible future bank failures
would be resolved by their own funds, i.e. with minimal costs for
taxpayers and real economy. In this way, the vicious circle between
banks and sovereigns would be broken. It would also reduce the
financial fragmentation recorded in the years of crisis as the result of
divergent behaviors in risk premium, lending activities and interest
rates between the core and the periphery. In addition, it should
strengthen the effectiveness of monetary transmission channels, in
particular the credit channels and overflows of liquidity on the money
market which, due to the fragmentation of the common financial
market, has been significantly disabled in period of crisis. However,
contrary to all the positive expectations related to the future
functioning of the banking union, major findings of this study
indicate that characteristics of the economic system in which the
banking union will operate should not be ignored. The euro area is an
integration of strong and weak entities with large differences in
economic development, wealth, assets of banking systems, growth
rates and accountability of fiscal policy. The analysis indicates that
low and unbalanced economic growth remains a challenge for the
maintenance of financial stability and this problem cannot be
resolved just by a single supervision. In many countries bank assets
exceed their GDP by several times and large banks are still a matter
of concern, because of their systemic importance for individual
countries and the euro zone as a whole. The creation of the Single
Supervisory Mechanism and the Single Resolution Mechanism is a
response to the European crisis, which has particularly affected
peripheral countries and caused the associated loop between the
banking crisis and the sovereign debt crisis, but has also influenced
banks’ balance sheets in the core countries, as the result of crossborder
capital flows. The creation of the SSM and the SRM should
prevent the similar episodes to happen again and should also provide
a new opportunity for strengthening of economic and financial
systems of the peripheral countries. On the other hand, there is a
potential threat that future focus of the ECB, resolution mechanism
and other relevant institutions will be extremely oriented towards
large and significant banks (whereby one half of them operate in the
core and most important euro area countries), and therefore it remains
questionable to what extent will the common resolution funds will be used for rescue of less important institutions. Recent geopolitical
developments will be the optimal indicator to show whether the
previously established mechanisms are sufficient enough to maintain
the adequate financial stability in the euro area market.
Abstract: This paper concludes that, for economic development,
and to ensure survival, Kenya and similar countries must industrialize
their economy and mechanize their agriculture using modern large
scale methods.
Abstract: Remote arid areas of the vast expanses of the African
deserts hold huge subterranean reserves of brackish water resources
waiting for economic development. This work presents design
guidelines as well as initial performance data of new autonomous
solar desalination equipment which could help local communities
produce their own fresh water using solar energy only and, why not,
contribute to transforming desert lands into lush gardens. The output
of solar distillation equipments are typically low and in the range of 3
l/m2/day on the average. This new design with an integrated, water
based, environmentally-friendly solar heat storage system produced 5
l/m2/day in early spring weather. Equipment output during summer
exceeded 9 liters per m2 per day.
Abstract: Socio-economic development, which is seen around
the world today, has contributed to the emergence of new problems
of a social nature. Different political, historical, geographical or
economic conditions cause that, in addition to global issues of social
policy such as an aging population, unemployment, migration,
countries, regions, there are also specific new problems that require
diagnosis, individualized approach and efficient, planned solutions.
These should include, among others, digital addiction, peer violence,
obesity among children, the problem of ‘legal highs’, stress,
depression, diseases associated with environmental pollution etc. The
central authorities, selected most often with the tools specific to
representative democracy, that is, the general election, for many
reasons, inter alia, organizational, communication, are not able to
effectively diagnose their intensity, territorial distribution, and thus to
effectively fight them. This article aims to show how in Poland,
citizens influence solving problems related to the broader social
policy implemented at the local government level and indicates the
possibilities of improving those solutions. The conclusions of
theoretical analysis have been supported by empirical studies, which
tested the use of instruments of participatory democracy in the
planning and creation of communal strategies for solving social
problems in one of the Polish voivodeships.
Abstract: In this study, firstly democratic thoughts which
directly or indirectly affect economic development and/or the
interaction between authoritarian regimes and the economic
development and the direction and channels of this interaction were
studied and then the study tried to determine how democracy affects
economic development. It was concluded that the positive
contributions of democracy to economic development were more
determinant than the effects that were either negative or restrictive in
terms of development. When compared to autocracy, since
democracy is more successful in managing social conflicts, ensuring
political stability and preventing social disasters such as famine, it
contributes more to economic development. Democracy also
facilitates delegation of authority, provides a stable investment
environment and accelerates mobilization of resources in accordance
with economic growth/development. Democracy leads to an increase
in human capital accumulation and increases the growth rate through
reducing income inequality. It can be said that democratic regimes
are the most appropriate ones in terms of increasing economic
performance and supporting economic development through their
strong institutional structures and the assurance they will ensure in
property rights.
Abstract: This paper argues nation-building theories that
prioritize democratic governance best explain the successful postindependence
development of Botswana. Three main competing
schools of thought exist regarding the sequencing of policies that
should occur to re-build weakened or failed states. The first posits
that economic development should receive foremost attention, while
democratization and a binding sense of nationalism can wait. A
second group of experts identified constructing a sense of nationalism
among a populace is necessary first, so that the state receives popular
legitimacy and obedience that are prerequisites for development.
Botswana, though, transitioned into a multi-party democracy and
prosperous open economy due to the utilization of traditional
democratic structures, enlightened and accountable leadership, and an
educated technocratic civil service. With these political foundations
already in place when the discovery of diamonds occurred, the
resulting revenues were spent wisely on projects that grew the
economy, improved basic living standards, and attracted foreign
investment. Thus democratization preceded, and therefore provided
an accountable basis for, economic development that might otherwise
have been squandered by greedy and isolated elites to the detriment
of the greater population. Botswana was one of the poorest nations in
the world at the time of its independence in 1966, with little
infrastructure, a dependence on apartheid South Africa for trade, and
a largely subsistence economy. Over the next thirty years, though, its
economy grew the fastest of any nation in the world. The transparent
and judicious use of diamond returns is only a partial explanation, as
the government also pursued economic diversification, mass
education, and rural development in response to public needs.
As nation-building has become a project undertaken by nations
and multilateral agencies such as the United Nations and the North
Atlantic Treaty Organization, Botswana may provide best practices
that others should follow in attempting to reconstruct economically
and politically unstable states.
Abstract: In the paper, information on economic development
trends in developed countries are analyzed. The current status of
information society and economy of the country is reviewed and
some recommendations are given for future development.
The problems of Information Society and establishment of its
innovative economy are studied. In this turn, development trends
information economy in developed countries are analyzed.