Abstract: This study investigates the relationship between external debt and military spending in case of India over the period of 1970–2012. In doing so, we have applied the structural break unit root tests to examine stationarity properties of the variables. The Auto-Regressive Distributed Lag (ARDL) bounds testing approach is used to test whether cointegration exists in presence of structural breaks stemming in the series. Our results indicate the cointegration among external debt, military spending, debt servicing, and economic growth. Moreover, military spending and debt servicing add in external debt. Economic growth helps in lowering external debt. The Vector Error Correction Model (VECM) analysis and Granger causality test reveal that military spending and economic growth cause external debt. The feedback effect also exists between external debt and debt servicing in case of India.
Abstract: In this paper, we study the relationship between the military effort and pollution. A distinction is drawn between the direct and indirect impact of the military effort (military expenditure and military personnel) on pollution, which operates through the impact of military effort on per capita income and the resultant impact of income on pollution. Using the data of 121 countries covering the period 1980–2011, both the direct and indirect impacts of military effort on air pollution emissions are estimated. Our results show that the military effort is estimated to have a positive direct impact on per capita emissions. Indirect effects are found to be positive, the total effect of military effort on emissions is positive for all countries.
Abstract: Energy is a fundamental component in sustainability, the access and use of this resource is related with economic growth, social improvements, and environmental impacts. In this sense, energy efficiency has been studied as a factor that enhances the positive impacts of energy in communities; however, the implementation of efficiency requires strong policy and strategies that usually rely on individual measures focused in independent dimensions. In this paper, the problem of energy efficiency as a multi-objective problem is studied, using scientometric analysis to discover trends and patterns that allow to identify the main variables and study approximations related with a further development of models to integrate energy efficiency and MCA into policy making for small communities.
Abstract: The collapse of the infamous Rana Plaza, a multi-storeyed commercial building in Savar, near Dhaka, Bangladesh has brought with it a plethora of positive and negative consequences. Bangladesh being a key player in the export of clothing, found itself amidst a wave of economic upheaval following this tragic incident that resulted in numerous Bangladeshis, most of whom were factory workers. This paper compares the consequences that the country’s Ready Made Garments (RMG) sector is facing now, two years into the incident. The paper presents a comparison of statistical data from study reports and brings forward perspectives from all dimensions of Labour, Employment and Industrial Relations in Bangladesh following the event. The paper brings across the viewpoint of donor organizations and donor countries, the impacts of several initiatives taken by foreign organizations like the International Labour Organization, and local entities like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in order to reinforce compliance and stabilize the shaky foundation that the RMG sector had found itself following the collapse. Focus of the paper remains on the stance taken by the suppliers in Bangladesh, with inputs from buying houses and factories, and also on the reaction of foreign brands. The paper also focuses on the horrific physical, mental and financial implications sustained by the victims and their families, and the consequent uproar from workers in general regarding compliance with work safety and workers’ welfare conditions. The purpose is to get across both sides of the scenario: the economic impact that suppliers / factories/ sellers/ buying houses/exporters have faced in Bangladesh as a result of complete loss of reliability on them regarding working standards; and also to cover the aftershock felt on the other end of the spectrum by the importers/ buyers, particularly the foreign entities, in terms of the sudden accountability of being affiliated with non- compliant factories. The collapse of Rana Plaza has received vast international attention and strong criticism. Nevertheless, the almost immediate strengthening of labourrights and the wholesale reform undertaken on all sides of the supply chain, evidence a move of all local and foreign stakeholders towards greater compliance and taking of precautionary steps for prevention of further disasters. The tragedy that Rana Plaza embodies served as a much-needed epiphany for the soaring RMG Sector of Bangladesh. Prompt co-operation on the part of all stakeholders and regulatory bodies now show a move towards sustainable development, which further ensures safeguarding against any future irregularities and pave the way for steady economic growth.
Abstract: This article considers the problems of economic growth
and Russian energy strategy. Also in this paper, the issues related to
the economic growth prospects of Russian were discussed. Russian
energy strategy without standing Russia`s stature in global energy
markets, at the current production and extraction rates, will not be able
to sustain its own production as well as fulfil its energy strategy.
Indeed, Russia’s energy sector suffers from a chronic lack of
investments which are necessary to modernize its energy supply
system. In recent years, especially since the international financial
crisis, Russia-EU energy cooperation has made substantive progress.
Recently the break-through progress has been made, resulting mainly
from long-term contributing factors between the countries and recent
international economic and political situation changes. Analytical
material presented in the article is intended for a more detailed or
substantive analysis related to foreign economic relations of the
countries and Russia as well.
Abstract: This study aimed to explore the relationship between
energy consumption and value-added in Iran’s industry sector during
the time period 1973-2011. Annual data related to energy
consumption and value added in the industry sector were used. The
results of the study revealed a positive relationship between energy
consumption and value-added of the industry sector. Similarly, the
results showed that there is one-way causality between energy
consumption and value-added in the industry sector.
Abstract: Present empirical paper investigates the relationship
between FDI and economic growth by 10 selected industries in 10
Central and Eastern European countries from the period 1995 to
2012. Different estimation approaches were used to explore the
connection between FDI and economic growth, for example OLS,
RE, FE with and without time dummies. Obtained empirical results
leads to some main consequences: First, the Central and East
European countries (CEEC) attracted foreign direct investment,
which raised the productivity of industries they entered in. It should
be concluded that the linkage between FDI and output growth by
industries is positive and significant enough to suggest that foreign
firm’s participation enhanced the productivity of the industries they
occupied. There had been an endogeneity problem in the regression
and fixed effects estimation approach was used which partially
corrected the regression analysis in order to make the results less
biased. Second, it should be stressed that the results show that time
has an important role in making FDI operational for enhancing output
growth by industries via total factor productivity. Third, R&D
positively affected economic growth and at the same time, it should
take some time for research and development to influence economic
growth. Fourth, the general trends masked crucial differences at the
country level: over the last 20 years, the analysis of the tables and
figures at the country level show that the main recipients of FDI of
the 11 Central and Eastern European countries were Hungary, Poland
and the Czech Republic. The main reason was that these countries
had more open door policies for attracting the FDI. Fifth, according
to the graphical analysis, while Hungary had the highest FDI inflow
in this region, it was not reflected in the GDP growth as much as in
other Central and Eastern European countries.
Abstract: South Africa is in its post-industrial era moving from
the primary and secondary sector to the tertiary sector. The study
investigated the impact of the disaggregated energy consumption
(coal, oil, and electricity) on the primary, secondary and tertiary
sectors of the economy between 1980 and 2012 in South Africa.
Using vector error correction model, it was established that South
Africa is an energy dependent economy, and that energy (especially
electricity and oil) is a limiting factor of growth. This implies that
implementation of energy conservation policies may hamper
economic growth. Output growth is significantly outpacing energy
supply, which has necessitated load shedding. To meet up the excess
energy demand, there is a need to increase the generating capacity
which will necessitate increased investment in the electricity sector as
well as strategic steps to increase oil production. There is also need to
explore more renewable energy sources, in order to meet the growing
energy demand without compromising growth and environmental
sustainability. Policy makers should also pursue energy efficiency
policies especially at sectoral level of the economy.
Abstract: This paper tries to answer to the questions whether or
not trade openness causes economic growth and trade policy changes
are good for Turkey as a developing country in global economy
before and after 1980. We employ Johansen co-integration and
Granger causality tests with error correction modeling based on
vector autoregressive. Using WDI data from the pre-1980 and the
post-1980, we find that trade openness and economic growth are cointegrated
in the second term only. Also the results suggest a lack of
long-run causality between our two variables. These findings may
imply that trade policy of Turkey should concentrate more on extra
complementary economic reforms.
Abstract: Financial inclusion has become a crucially important
factor in debates on economic inequality posing challenges to the
financial systems of countries around the world. Nowadays
governments and banks are concerned about creating products that
allow access to wide sectors of the population. The creation of
banking products by the financial sector for people with low incomes
tends to lead to improvements in the quality of life of vulnerable parts
of the population. In countries with notable social and economic
inequalities, financial inclusion is a key aspect for equitable
economic growth. This study is based on the case of Colombia, which is a country
with a strong record of economic growth over the past decade.
Nevertheless, corruption, unemployment, and poverty contribute to
uncertainty regarding the country’s future growth prospects. This study wants to explain the situation of financial exclusion and
financial inclusion with respect to the Colombian case. Financial
inclusion is going to be studied from the perspective of social
innovation.
Abstract: Main purpose of this study is to identify the impact of
government expenditure on economic growth in Asian Countries.
Consequently, main objective is to analyze whether government
expenditure causes economic growth in Asian countries vice versa
and then scrutinizing long-run equilibrium relationship exists
between them. The study completely based on secondary data. The
methodology being quantitative that includes econometrical
techniques of cointegration, panel fixed effects model and granger
causality in the context of panel data of Asian countries; Singapore,
Malaysia, Thailand, South Korea, Japan, China, Sri Lanka, India and
Bhutan with 44 observations in each country, totaling to 396
observations from 1970 to 2013. The model used is the random
effects panel OLS model. As with the above methodology, the study
found the fascinating outcome. At first, empirical findings exhibit a
momentous positive impact of government expenditure on Gross
Domestic Production in Asian region. Secondly, government
expenditure and economic growth indicate a long-run relationship in
Asian countries. In conclusion, there is a unidirectional causality
from economic growth to government expenditure and government
expenditure to economic growth in Asian countries. Hence the study
is validated that it is in line with the Keynesian theory and Wagner’s
law as well. Consequently, it can be concluded that role of
government would play a vital role in economic growth of Asian
Countries. However; if government expenditure did not figure out
with the economy’s needs it might be considerably inspiration the
economy in a negative way so that society bears the costs.
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: 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: Nowadays, technological progress is one of the most
important components of economic growth and the efficiency of
R&D activities is particularly essential for countries. This study is an
attempt to analyze the R&D efficiencies of EU countries. The
indicators related to R&D efficiencies should be determined in
advance in order to use DEA. For this reason a list of input and
output indicators are derived from the literature review. Considering
the data availability, a final list is given for the numerical analysis for
future research.
Abstract: The causality between energy consumption and
economic growth has been an important issue in the economic
literature. This paper studies the causal relationship between
electricity consumption and economic growth in Mexico for the
period of 1971-2011. In so doing, unit root and causality tests are
applied. The results show that energy consumption and economic
growth series are stationary and there is also a causality relationship
running from economic growth to electricity consumption. Therefore,
any energy conservation policy would have little or no impact at all
on economic growth in México.
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 provides a comprehensive analysis of the
sustainable development in the Belgrade Metropolitan Region - BMA
(level NUTS 2) preliminary evaluating the three chosen components:
1) economic growth and developmental changes; 2) competitiveness;
and 3) territorial concentration and industrial specialization. First, we
identified the main results of development changes and economic
growth by applying Shift-share analysis on the metropolitan level.
Second, the empirical evaluation of competitiveness in the BMA is
based on the analysis of absolute and relative values of eight
indicators by Spider method. Paper shows that the consideration of
the national share, industrial mix and metropolitan/regional share in
total Shift share of the BMA, as well as economic/functional
specialization of the BMA indicate very strong process of
deindustrialization. Allocative component of the BMA economic
growth has positive value, reflecting the above-average sector
productivity compared to the national average. Third, the important
positive role of metropolitan/regional component in decomposition of
the BMA economic growth is highlighted as one of the key results.
Finally, comparative analysis of the industrial territorial
concentration in the BMA in relation to Serbia is based on location
quotient (LQ) or Balassa index as a valid measure. The results
indicate absolute and relative differences in decrease of industry
territorial concentration as well as inefficiency of utilizing territorial
capital in the BMA. Results are important for the increase of regional
competitiveness and territorial distribution in this area as well as for
improvement of sustainable metropolitan and sector policies,
planning and governance on this level.
Abstract: Past literature on business incubators distinguished incubators based on their mission statements. However, more and more mission statements become a slogan rather than a reality. It is therefore more appropriate to identify business incubators based on their real activities, rather than the missions they declared. With a sample of technology business incubators (TBIs) in China, we try to investigate business incubators’ real activities by examining the incubation efficiency along the following five dimensions, i.e., survival of new ventures, technology transfer, local economic growth, job creation, and profit generation. Furthermore, we identified six types of business incubators. The results indicate that generally Chinese TBIs have a greater preference for acquiring profits over other dimensions.
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: The research of juice flavor forecasting has become
more important in China. Due to the fast economic growth in China,
many different kinds of juices have been introduced to the market. If a
beverage company can understand their customers’ preference well,
the juice can be served more attractive. Thus, this study intends to
introducing the basic theory and computing process of grapes juice
flavor forecasting based on support vector regression (SVR). Applying
SVR, BPN, and LR to forecast the flavor of grapes juice in real data
shows that SVR is more suitable and effective at predicting
performance.