scholarly journals Institutional aspect of influence of the foreign direct investments on the economic growth

2020 ◽  
Vol 210 ◽  
pp. 13022
Author(s):  
Ekaterina Anoshkina ◽  
Elizaveta Markovskaya ◽  
Angela Mottaeva ◽  
Asiiat Mottaeva
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Capital Accumulation ◽  
Institutional Environment ◽  
Developed Countries ◽  
Negative Influence ◽  
Economic Environment ◽  
Foreign Direct Investments ◽  
The Impact

Authors analyze the differences between the influence of the foreign direct investments on the economic growth in the developed and developing countries. For the model of the gross domestic product (GDP) on the foreign direct investments for the developed countries the following data are used: observations for the 10 countries during 1983-2013. For the model of the GDP on the foreign direct investments (FDI) for the developing countries the following data are used: observations for the 11 countries during 1994-2013. Investigators conclude that the influence of the foreign direct investments on the economic growthdefinitely has the positive effect in both cases. However, the degree of this influence depends on the type of the country. The developing countries get the smaller effect from the foreign direct investments because of the non-transparent institutional environment and negative influence of other non-economic factors. These findings provide an opportunity to judge that in developed countries, institutional and economic environment and, most of all, human capital allow you to get the full effect of FDI, that is, as capital accumulation and spill-over effects. In developing countries, there should be thresholds to reduce effects of FDI, such as insufficient human capital and poor economic and institutional environment. Thus, the impact of FDI on economic growth is certainly positive, however the level of this effect depends on country characteristics. That is, the hypothesis that FDI affects developing countries less than developed, due to the existence of thresholds in the form of unhealthy institutional and economic environment were confirmed.

scholarly journals THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

2018 ◽  
Vol 16 (1) ◽  
pp. 29-41
Author(s):  
André Berardo Coelho ◽  
Nelson Leitão Paes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Health Sector ◽  
Point Of View ◽  
Retirement Age ◽  
Human Capital Accumulation ◽  
The Impact ◽  
Health Care Production

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

scholarly journals Coping with the Exceptional Economic Problems in Turkey: A Field Survey on SMES

2019 ◽  
Vol 12 (2) ◽  
pp. 109-126 ◽  
Author(s):  
Ercan Özen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Developed Countries ◽  
Business Owners ◽  
Important Place ◽  
Exchange Rate Fluctuations ◽  
The Exchange Rate ◽  
The Impact

Abstract Developing countries need higher economic growth to reach the level of developed countries. When developing countries exceed the potential economic growth, problems, such as, high external debt and high current deficit emerge. Such situations increase the financial risk of the country; in addition, international political risks, fluctuations in capital inflows and some manipulative movements have subjected countries to extreme exchange rate fluctuations. Purposes of this research: (1) to uncover the impact of high exchange rate volatility on small business activities and (2) to determine whether the level of exposure of the exchange rate shock on business owners varies by age. The methodology of the study involved a survey administered to 390 small and medium-sized enterprises (SMEs). The findings of the study show that after a period of significant exchange rate fluctuations, business activities were negatively affected, sales decreased, and job cuts increased. On the other hand, the exchange rate effect was mostly felt by all business owners of different ages. According to the study, it can be concluded that small enterprises are vulnerable to rising exchange rate volatility. The effect on SMEs with more work experience is not different. In order to alleviate the effects of adverse exchange rate movements, enterprises should be more cautious in their activities. Two suggestions can be made at this point: (i) Governments should follow optimal growth policies and (ii) Small businesses that have an important place in the economy should be made aware of the exchange rate risk and crisis management.

scholarly journals TRENDS RESEARCH OF THE INFORMATION ECONOMY BASED ON GLOBAL INTERNATIONAL INDICES

2021 ◽  
Author(s):  
Nadiia Morozova ◽  
◽  
Tetyana Novikova ◽  
Timur Malafeyev ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developed Countries ◽  
National Product ◽  
Information Economy ◽  
Development Index ◽  
The World ◽  
Information And Communication ◽  
Ict Development ◽  
The Impact

The article describes the uneven development of the information economy based on an analysis of the ICT development index in order to identify innovative growth at the national, regional, and global levels. The aim of the work is to develop a set of models for the analysis of the dynamics of the information economy, which makes it possible to determine the stages of the information economy development, groups of countries according to the level of ICT development, and to assess the factors impact of ICT development on the economic growth rate. The work considered the set of information indicators for assessing the level of the information economy development and analyzed development trends of the information economy by macro-region; developed a country profile model for ICT development and built a model for measuring the impact of ICT development on economic growth. Special empirical measures – international indices – are used to determine the extent of the impact of informatization on the countries’ development. All the indicators used in the work form the basis of the Information and Communication Technology (ICT) Development Index. This suggests that the ICT index is a universal tool for comparing world economies. Research has been carried out based on neural network modelling techniques, in particular the Kohonen network and econometric methods and models. The article discusses the use of ICT to analyze the information economy at the macroeconomic level to measure the impact of ICT on the gross national product. The author’s concept of research on the impact of ICT on the gross national product of the countries of the world has been developed. The author’s concept scheme consists of two blocks. The first block consists of the construction of country groupings based on the level of ICT development. Based on the Kohonen networks, the countries have been clustered according to the level of development of information and communication technologies, which will make it possible to compare the world economies and to highlight priority and problem areas in the implementation of ICT. The second block is to study the influence level of the ICT development index on countries' GDP using econometric models of macroeconomic indicators. The relationship between ICT and GDP has been confirmed. The simulation found that the potential for increasing GDP through ICT was greater for developing countries than for developed countries because for developed countries ICT using was routine and necessary. The impact of further ICT development in developed countries is such that, with an increase of 1% in ICT use, GDP increases by 0.6 %. For developing countries, however, the opposite is true. An increase of 1 % in the rate of ICT increases GDP by 1.2 % on average, i.e., such countries have the potential to develop and meet the targets of developed countries. The findings and results of the study can be used by policymakers and enterprises to ensure better ICT outcomes, which in turn can promote sustainable economic and social development, both in certain countries and globally.

scholarly journals Leveraging on the Urban Economy to Promote the Growth of Women-Owned Small Businesses in Bangladesh

2021 ◽  
Vol 3 (1) ◽  
pp. 15-23
Author(s):  
Nusrat Hafiz ◽  
Ahmad Shaharudin Abdul Latiff ◽  
Sazali Abd Wahab
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Developing Countries ◽  
Human Capital ◽  
Small Businesses ◽  
Urban Economy ◽  
Developed Countries ◽  
The City ◽  
Research Domain

Purpose: The contribution of small businesses to a country’s economic growth is vital. It makes sense to accentuate the small businesses by emphasizing the neglected segments. The present study aims to explore the women-owned small businesses (WOSB) and their various problems. The study also examines if the city-based features of the urban economy can be favorable to promote the growth of WOSB. Methods: The concept paper conducts secondary research by selecting sample literature on WOSB of Bangladesh from the manufacturing, and trading sectors.  The selection and classification of extant literature were conducted by emphasizing problems faced by WOSB, and the city-based amenities of developing countries. The extracted information is analyzed by categorizing and interpreting relevant issues to create a base-model of venture-growth. Results: Based on the literature review, a growth-framework is formulated that reflects the issues faced by WOSB categorized as financial illiteracy, inadequate human capital, insufficient social capital, and business environmental hiccups. Also, the substandard growth of WOSB is envisaged in the model if the problems are not addressed timely. The study also discovers that the urban economy could be leveraged to make these issues less coercing for the women owners. Implications: The paper creates a nexus with the WOSB and the privileges of urban platforms to ensure better growth of the firms. Originality:  As far as authors could determine, the aimed research-domain was mostly covered from the perspectives of developed countries, rarely covered in the context of developing countries, and almost absent in Bangladesh. This paper attempts to fulfill that gap.

The Impact of FDI Inflows and Outflows on Economic Growth: An Empirical Study of some Developed and Developing Countries

2019 ◽  
Vol 6 (1) ◽  
pp. 129-157
Author(s):  
Younis Ali Ahmed ◽  
Roshna Ramzi Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Developed Countries ◽  
Fdi Inflows ◽  
Panel Data Estimation ◽  
The Impact ◽  
Data Estimation

FDI is an investment including a long-term relationship and reflecting a lasting interest and control of a resident entity in one economy. FDI is a combination of capital, technology, marketing and management. Based on the Neoclassical, Exogenous and modern theories FDI has a positive role in accelerating economic growth and development. Many countries are improving their economy in order to attract FDI.  The main objective of this study is to examine the impact of FDI inflows and outflows on economic growth of developed countries such as (USA, UK and France) and developing countries such as (Malaysia, Turkey and Iran) from (1980 to 2017). To accomplish that, ARDL approach and panel data estimation were used. The empirical findings reveal that the FDI inflows and outflows for developed countries (US and UK) have a positive impact on economic growth (GDP), while the FDI inflows of France have a negative impact. Nevertheless, FDI inflows and outflows for developing countries of (Malaysia, Turkey, and Iran) have a positive impact on economic growth. The result of panel data estimation shows that Fixed effects model is appropriate for estimating the parameters. In conclusion, Developing countries should diversify their FDI inflows and outflows to cover all the sectors and they should benefit from the developed countries’ experiences with higher impact of FDI on economic growth.

scholarly journals Foreign Direct Investments and Economic Growth: The Primary Drivers

2015 ◽  
Vol 7 (2) ◽  
pp. 93
Author(s):  
Peter Githaiga ◽  
Josiah Nyauncho ◽  
Charles Githinji KABIRU
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Trade Openness ◽  
Financial Sector ◽  
Foreign Direct Investments ◽  
Human Capital Development ◽  
Financial Sector Development ◽  
Capital Development ◽  
Determinants Of Economic Growth

<p>In order to achieve the Global Millennium Development Goals (MDGs) there is need for enhanced global partnerships in areas such as trade, health, security, environmental sustainability, food security and education. Owing to these initiatives Foreign Direct Investments (FDIs), Official Foreign Development Assistance (ODAs) and other external capital flows are increasingly considered as drivers of economic growth for developing countries. By year 2000 FDIs flow to developing countries accounted for 19% of the total global FDI flow compared to 52% in 2010. Collectively FDI equates to 11% of global GDP and generates close to 80 million jobs globally. Global FDI totaled to US$ 1.2 trillion in 2010, US$ 1.4 trillion in 2011 and US$ 1.8 trillion in 2012. Similarly, the developing countries received half of the FDI and only invested a quarter of the FDI out flow. Studies show that FDIs contributes to economic growth by stimulating several macro-economic and demographic variables which are major agents of economic growth. This paper sought to explain the effect of FDI on the determinants of economic growth human capital development, financial sector development and trade openness. A sample of 30 African countries was used for the study. The data used was retrieved from UNCTAD and World Bank online databases for the period between 1980 and 2012 and analyzed through a fixed effect regression model. The results of the study show that FDI had a positive impact on measures of financial sector development and trade openness. However the effect of FDI on human capital development was negative. The study recommends the need for favorable monetary policies that elicit more FDI for enhanced economic growth. The study also suggests increased global trade liberalization and integration to boost trade. Finally the study recommends that additional FDI flows should be directed towards human capital development. </p>

scholarly journals Relationship Between Foreign Direct Investments and Economic Growth: The Azerbaijan Sample

2017 ◽  
Author(s):  
Serap Ürüt Kelleci ◽  
Emine Fırat
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Soviet Union ◽  
Direct Investment ◽  
Developed Countries ◽  
General Information ◽  
Economic Effects ◽  
Foreign Direct Investments ◽  
The World

Today, foreign direct investment is very important for both developed and developing countries. It is seen as an opportunity to overcome the inadequacy of capital, especially in developing countries. It is expected that these investments will make a serious contribution in solving the problems related to the balance of payments, in the realization of the investments that will enable the growth of the economies, in increasing the employment. The study will examine the size, development and effects of foreign capital in Azerbaijan economy. Azerbaijan, which is also known as transition economies, has gone from the Soviet Union in 1991 to regulating its economic structure from the beginning. At this point, they have undertaken various reforms to improve their inadequate investment capabilities and to attract foreign direct investment into the country. In this respect, they tried to have a share of this great pasty shared by the developed countries in the world. In this study, firstly foreign direct investments and economic effects will be examined. Then, general information about Azerbaijani economy will be given and the dimensions and effects of foreign direct investments in Azerbaijan will be revealed. After the literature review on the subject has been made, the relationship between economic growth and foreign direct investment in Azerbaijan will be empirically analyzed. The figures for Azerbaijan during the period 1995-2015 were obtained from the World Bank.

scholarly journals Do Governance, Foreign Direct Investment and Human Capital Matter to Bolster Trade Liberalization? Fresh Insight from Developing Countries

2021 ◽  
Vol 7 (3) ◽  
pp. 325-341
Author(s):  
Muhammad Umar ◽  
Imran Sharif Chaudhry ◽  
Muhammad Faheem ◽  
Fatima Farooq
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Trade Liberalization ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Lower Income ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Impact

This study aims to explore the impact of governance, foreign direct investment and human capital on trade liberalization in developing countries (lower income, middle income and upper middle income). The study employed fixed effect for the period of 2000 to 2019. Results show governance, foreign direct investment and human capital are highly significant with trade liberalization in the case of lower-income countries. In the case of middle-income countries, empirical findings demonstrate governance and foreign direct investment are highly significant with a negative sign, while human capital has positive on trade liberalization. In the case of upper-middle-income countries, results show human capital and foreign direct investment affect positively, while governance has a negative effect on trade liberalization. On the behalf of results it is suggested that in the countries where human capital is high, most of the inflows of foreign direct investment happen. It means that the government can develop human resources to attract more foreign direct investments. The governments of developing countries should also concentrate on education, including training facilities and other quality educational facilities for human skill development.

scholarly journals The Currency of Knowledge: Education and economic growth in Latin America

2011 ◽  
Vol 4 (2) ◽  
pp. 1-15
Author(s):  
Andrew Thomas Bosz ◽  
Andrew Anthony Rufatt
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Latin America ◽  
East Asia ◽  
Brain Drain ◽  
Capital Accumulation ◽  
Labour Force ◽  
Developed Countries ◽  
Economic Prosperity ◽  
Level Of Education

In the early 1960s, Latin America was on the brink of significant economic growth, withschool attainment and income levels well ahead of East Asia. However, by 2000, despitegreater financial and political efforts to develop their education system to the standard offully developed countries, Latin America had already been well surpassed by East Asia. Byconsidering the influence of education and human capital accumulation, this paperendeavours to rationalise the disparities between the economic failures of Latin America bycomparison to the economic prosperity of East Asia. Internationally standardised cognitivetesting consistently shows Latin America below East Asia, indicating a greater quality ofeducation in East Asia. Moreover, Latin America appears to experience some degree ofdifficulty in retaining its human capital due to ‘brain drain’. As such, whilst the LatinAmerican labour force continues to grow, the average level of education is deteriorating,which in turn adversely affects economic prosperity.

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