Abstract: In developing countries, one of the most important
restrictions about the economic growth is the lack of national savings
which are supposed to finance the investments. In order to overcome
this restriction and achieve the higher rate of economic growth by
increasing the level of output, countries choose the external
borrowing. However, there is a dispute in the literature over the
correlation between external debt and economic growth. The aim of
this study is to examine the effects of external debt on Turkish
economic growth by using VAR analysis with the quarterly data over
the period of 2002:01-2014:04. In this respect, Johansen
Cointegration Test, Impulse- Response Function and Variance
Decomposition Tests will be used for analyses. Empirical findings
show that there is no cointegration in the long run.
Abstract: This study utilizes a frequency domain approach over
the period of 1996 to 2013 to examine the causal relationship between
governance and economic growth in ten Asian countries, which have
different levels of democracy; classified as “Free”, “Partly Free”, and
“Not Free” countries. The empirical results show that there is no
Granger causality running from governance to economic growth in
“Not Free” countries and “Partly Free” countries with the exception of
Singapore. As for “Free” countries such as South Korea and Taiwan,
there is a one-way causality running from governance to economic
growth. The findings of this study indicate that policy makers in South
Korea, Taiwan, and Singapore could use governance index to improve
their predictions of the future economic growth.
Abstract: The paper discusses mineral water consumer market
and development policy in Georgia, the tools and measures, which
will contribute to production of mineral waters and increase its
export.
The paper studies and analyses current situation in mineral water
production sector as well as the factors affecting increase and
reduction of its export. It’s noted that in order to gain and maintain
competitive advantage, it’s necessary to provide continuous supply of
high quality goods with modern design, open new distribution
channels to enter new markets, carry out broad promotional activities,
organize e-commerce. Economic policy plays an important role in
protecting markets from counterfeit goods. The state also plays an
important role in attracting foreign direct investments. Stable
business environment and export oriented strategy is the basis for the
country’s economic growth.
Based on the research, the paper suggests the strategy for
improving competitiveness of Georgian mineral waters; relevant
conclusions and recommendations are provided.
Abstract: Living today in turbulent business environment forces
companies to distinguish from each other, securing sustainable
competitive growth and competitive advantage. The best possible
solution is to invest (effort and financial resources) within
companies’ different practices of human resource management
(HRM), more specifically in employees’ knowledge, skills and
abilities. Applying this approach companies will create enviable level
of human capital securing its economic growth. Employees become
human capital for their employers at the moment when they
contribute with their own knowledge and abilities in creating material
and non-material value of the company. The main aim of this
research is to explore the relations between human capital
investments and business excellence of Croatian companies.
Furthermore, the differences in the level of human capital
investments with regard to several companies’ characteristics (e.g.
size of the company, ownership and type of the industry) are
investigated.
Abstract: After recession that began in 2007 in the United States and subsequently spilled over the Europe we could expect recovery of economic growth. According to the last estimation of economic progress of European countries, this recovery is not strong enough. Among others, it will depend on economic policy, where and in which way, the economic indicators will proceed. Economic theories postulate that the economic subjects prefer stably, continual economic policy without repeated and strong fluctuations. This policy is perceived as support of economic growth. Mostly in crises period, when the government must cope with consequences of recession, the economic policy becomes unpredictable for many subjects and economic policy uncertainty grows, which have negative influence on economic growth. The aim of this paper is to use panel regression to prove or disprove this hypothesis on the example of five largest European economies in the period 2008–2012.
Abstract: The main objective of the research in this paper is to empirically assess the causal relationship of private savings and economic growth in the Republic of Croatia. Households’ savings are approximated by household deposits in banks, while domestic income is approximated by industrial production volume indices. Vector Autoregression model and Granger causality tests are used to in order to analyse the relationship among private savings and economic growth. Since ADF unit root tests have shown that both mentioned series are non stationary at levels, series are first differenced in order to become stationary. Therefore, VAR model is estimated with percentage change in private savings and percentage change in domestic income, which can be interpreted as economic growth in case of positive percentage change in domestic income. The Granger causality test has shown that there is no causal relationship among private savings and economic growth in Croatia. The impulse response functions have shown that the impact of shock in domestic income on private savings change is stronger than the impact of private saving on growth. Variance decompositions show that both economic growth and private saving change explain the largest part of its own forecast variance. The research has shown that the link between private savings economic and growth in Croatia is weak, what is in line with relevant empirical research in small open economies.
Abstract: The importance of MSMEs in India became crucial in rural areas because it promoted economic growth. MSMEs play a significant role in the economic growth of the country owing to production, exports and employment. Technology development reflect a critical way in which organization respond to either technological or market challenges. The present survey examines the characteristics of technology development in MSMEs. The results show that Indian MSMEs do not co-operate with universities and R&D institutes. Government policies also affect the technology development activities. The awareness about the R&D infrastructure is very low as shown by the results in the study. There is a need to understand and assess the real needs of the MSMEs and accordingly devise approaches that ensure their sustainable growth.
Abstract: The paper examines the impact of money market on economic growth in Nigeria using data for the period 1980-2012. Econometrics techniques such as Ordinary Least Squares Method, Johanson’s Co-integration Test and Vector Error Correction Model were used to examine both the long-run and short-run relationship. Evidence from the study suggest that though a long-run relationship exists between money market and economic growth, but the present state of the Nigerian money market is significantly and negatively related to economic growth. The link between the money market and the real sector of the economy remains very weak. This implies that the market is not yet developed enough to produce the needed growth that will propel the Nigerian economy because of several challenges. It was therefore recommended that government should create the appropriate macroeconomic policies, legal framework and sustain the present reforms with a view to developing the market so as to promote productive activities, investments, and ultimately economic growth.
Abstract: Innovations and innovative activity get the increasing
value for successful financial and economic activity of the countries
and regions. The level of innovative sphere development determines
place of a country or a region in world economy and forms a basis of
steady economic growth. This article is devoted to different aspects
of organization of the national economic safety in the conditions of
innovative development, its problems, risks and threats. Economy
can be considered as aspiring for transition to innovative way only
with finding of economic safety: financial independence, power
stability and technological progress. There are statistical indicators,
defining the level of economic security and factors, threatening
economic safety of the state. The research is based on the analysis of
factors and indicators in conditions of innovative development. The
paper is illustrated by the examples of possible estimated system of
the economic safety level.
Abstract: This study employs auto-regressive distributed lag (ARDL) bounds approach to cointegration for long run and errorcorrection modeling (ECM) for short run analysis to examine the relationship between revenue gap and economic growth for Pakistan using annual time series data over the period 1980 to 2008. The short and long run results indicate that revenue gap is statistical significant and negatively effect economic growth. The significant and negative coefficient of error correction term in ECM indicates that after a shock, the long rum equilibrium will again converge towards equilibrium about 10.406 percent within a year.
Abstract: The paper focuses on the implementation phase of the
strategy of the European Union and the national strategy of the
Czech Republic to promote academic and research staff with the
potential to produce results that provide innovation useful for
economic growth. It deals with the use of financial resources of the
Operational Program Education for Competitiveness at the
University of West Bohemia in Pilsen. The author presents an
example of two strategic projects in the field of human resources –
Excellence in Human Resources as a Source of Competitiveness and
New Excellence of Human Resources. The subject of this paper is the
potential contribution of newly recruited postdoctoral within these
projects for the University of West Bohemia in Pilsen and its internal
environment.
Abstract: Creation of information society, or in other words, a
society based on knowledge, has wide consequences, both on
individual and complete society, and in general – on a economy of
one country. Development and implementation of ICT represents a
stimulant for economic growth. On individual level, knowledge,
skills and information gathered using ICT, are expanding individual
possibilities of persons, enabling them to have access to timely
sensitive information, such as market prices or investment
conditions, possibilities to access Government-s or private
development funds, etc. By doing so, productivity is increased both
on individual and national level and therefore social wellbeing in
general. In one word, creation of information society - a knowledge
society is happening.
This work will describe challenges and strategies that will follow
the development as well as obstacles in creating information society
– knowledge society in Montenegro.
Abstract: This study examines causal link between energy use and economic growth for five South Asian countries over period 1971-2006. Panel cointegration, ECM and FMOLS are applied for short and long run estimates. In short run unidirectional causality from per capita GDP to per capita energy consumption is found, but not vice versa. In long run one percent increase in per capita energy consumption tend to decrease 0.13 percent per capita GDP. i.e. Energy use discourage economic growth. This short and long run relationship indicate energy shortage crisis in South Asia due to increased energy use coupled with insufficient energy supply. Beside this long run estimated coefficient of error term suggest that short term adjustment to equilibrium are driven by adjustment back to long run equilibrium. Moreover, per capita energy consumption is responsive to adjustment back to equilibrium and it takes 59 years approximately. It specifies long run feedback between both variables.
Abstract: The proposed paper examines strategies whose aim is
to counter the all too often sighted process of abandonment that
characterizes contemporary cities. The city of Nicosia in Cyprus is
used as an indicative case study, whereby several recent projects are
presented as capitalizing on traditional cultural assets to revive the
downtown. The reuse of existing building stock as museums,
performing arts centers and theaters but also as in the form of various
housing typologies is geared to strengthen the ranks of local residents
and to spur economic growth. Unlike the examples from the 1960s,
the architecture of more recent adaptive reuse for urban regeneration
seems to be geared in reinforcing a connection to the city where the
buildings often reflect the characteristics of their urban context.
Abstract: There are three distinct stages in the evolution of
economic thought, namely:
1. in the first stage, the major concern was to accelerate
economic growth with increased availability of material
goods, especially in developing economies with very low
living standards, because poverty eradication meant faster
economic growth.
2. in the second stage, economists made distinction between
growth and development. Development was seen as going
beyond economic growth, and bringing certain changes in
the structure of the economy with more equitable
distribution of the benefits of growth, with the growth
coming automatic and sustained.
3. the third stage is now reached. Our concern is now with
“sustainable development", that is, development not only
for the present but also of the future.
Thus the focus changed from “sustained growth" to “sustained
development". Sustained development brings to the fore the long
term relationship between the ecology and economic development.
Since the creation of UNEP in 1972 it has worked for
development without destruction for environmentally sound and
sustained development. It was realised that the environment cannot
be viewed in a vaccum, it is not separate from development, nor is it
competing. It suggested for the integration of the environment with
development whereby ecological factors enter development planning,
socio-economic policies, cost-benefit analysis, trade, technology
transfer, waste management, educational and other specific areas.
Industrialisation has contributed to the growth of economy of
several countries. It has improved the standards of living of its people
and provided benefits to the society. It has also created in the process
great environmental problems like climate change, forest destruction
and denudation, soil erosion and desertification etc.
On the other hand, industry has provided jobs and improved the
prospects of wealth for the industrialists. The working class
communities had to simply put up with the high levels of pollution in
order to keep up their jobs and also to save their income.
There are many roots of the environmental problem. They may be
political, economic, cultural and technological conditions of the
modern society. The experts concede that industrial growth lies
somewhere close to the heart of the matter. Therefore, the objective
of this paper is not to document all roots of an environmental crisis
but rather to discuss the effects of industrial growth and
development.
We have come to the conclusion that although public intervention
is often unnecessary to ensure that perfectly competitive markets will
function in society-s best interests, such intervention is necessary
when firms or consumers pollute.
Abstract: This study utilizes the panel vector error correction
model (PVECM) to examine the relationship among corruption,
economic growth, and income inequality experienced within ten Asian
countries over the 1995 to 2010 period. According to the empirical
results, we do not support the common perception that corruption
decreases economic growth. On the contrary, we found that corruption
increases economic growth. Meanwhile, an increase in economic
growth will cause an increase in income inequality, although the effect
is insignificant. Similarly, an increase in income inequality will cause
an increase in economic growth but a decrease in corruption, although
the effect is also insignificant.
Abstract: Limited competition has been a serious concern in infrastructure procurement. Importantly, however, there are normally a number of potential bidders initially showing interest in proposed projects. This paper focuses on tackling the question why these initially interested bidders fade out. An empirical problem is that no bids of fading-out firms are observable. They could decide not to enter the process at the beginning of the tendering or may be technically disqualified at any point in the selection process. The paper applies the double selection model to procurement data from road development projects in developing countries and shows that competition ends up restricted, because bidders are self-selective and auctioneers also tend to limit participation depending on the size of contracts.Limited competition would likely lead to high infrastructure procurement costs, threatening fiscal sustainability and economic growth.
Abstract: South Africa is facing a crisis with not being able to produce enough graduates in the scarce skills areas to sustain economic growth. The crisis is fuelled by a school system that does not produce enough potential students with Mathematics, Accounting and Science. Since the introduction of the new school curriculum in 2008, there is no longer an option to take pure maths on a standard grade level. Instead, only two mathematical subjects are offered: pure maths (which is on par with higher grade maths) and mathematical literacy. It is compulsory to take one or the other. As a result, lees student finishes Grade 12 with pure mathematics every year. This national problem needs urgent attention if South Africa is to make any headway in critical skills development as mathematics is a gateway to scarce skills professions. Higher education institutions initiated several initiatives in an attempt to address the above, including preparatory courses, bridging programmes and extended curricula with foundation provisions. In view of the above, and government policy directives to broaden access in the scarce skills areas to increase student throughput, foundation provision was introduced for Commerce and Information Technology programmes at the Vaal Triangle Campus (VTC) of North-West University (NWU) in 2010. Students enrolling for extended programmes do not comply with the minimum prerequisites for the normal programmes. The question then arises as to whether these programmes have the intended impact? This paper reports the results of a two year longitudinal study, tracking the first year academic achievement of the two cohorts of enrolments since 2010. The results provide valuable insight into the structuring of an extended programme and its potential impact.
Abstract: R&D risk management has been suggested as one of
the management approaches for accomplishing the goals of public
R&D investment. The investment in basic science and core technology
development is the essential roles of government for securing the
social base needed for continuous economic growth. And, it is also an
important role of the science and technology policy sectors to generate
a positive environment in which the outcomes of public R&D can be
diffused in a stable fashion by controlling the uncertainties and risk
factors in advance that may arise during the application of such
achievements to society and industry. Various policies have already
been implemented to manage uncertainties and variables that may
have negative impact on accomplishing public R& investment goals.
But we may derive new policy measures for complementing the
existing policies and for exploring progress direction by analyzing
them in a policy package from the viewpoint of R&D risk
management.
Abstract: Technology transfer by international trade and
foreign direct investment is the most important positive
outcome of open economy. It is widely accepted that new
technology and knowledge have an important role in
enhancing economic growth. Human capital is the other
important factor assisting economic growth. In this study, the
role of human capital in the growth process is examined in a
view of new endogenous growth theory emphasizing on the
technology transfer resulting from international trade. Using
the panel data of 10 developed and 10 developing countries,
impact of human capital and openness on the rate of economic
growth of different countries is analysed. Evidence suggests
the view that human capital and openness contribute to the
economic growth in both developing and developed countries,
but with different rates.