Economic Reform and Inclusive Growth

2021 ◽  
pp. 206-253
Author(s):  
K. L. Datta
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Reform ◽  
Paradigm Shift ◽  
Market Mechanism ◽  
Decision Makers ◽  
Reform Process ◽  
Inclusive Growth ◽  
The Government ◽  
The Impact

This chapter discusses the backdrop against which economic reform measures were initiated in 1991, marking a paradigm shift in the approach to planning from that pursued in the previous four decades, 1951–90. It dwells on how market mechanism replaced different agents of the government as dominant decision-makers, and the manner in which different areas and sectors of the economy were integrated with the reform process. It analyses the features of growth in the two decades of reform, 1991–2011, identifies factors that drive the growth rate to a higher trajectory, and evaluates the impact of reform measures on the rate and pattern of growth and equity. Taking note of the concern about social problems arising from market mechanism, it makes an assessment of the measures taken by the government to strengthen income redistributive programmes, so as to ensure that economic growth becomes inclusive.

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals Efficiency of Scientific Companies and Formation of Innovative Dynamics

Federalism ◽  
2020 ◽  
pp. 44-65
Author(s):  
O. S. Sukharev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Development Model ◽  
Time Interval ◽  
Innovative Development ◽  
Innovation Dynamics ◽  
Innovative Firms ◽  
The Government ◽  
Labor Resources ◽  
The Impact

Different countries show differing patterns of economic growth and innovation dynamics. For a long time in Russia, it has not been possible to formulate an innovative model of economic growth, a debate about which lasts for more than a decade and government measures are being taken to stimulate innovation and stimulate growth, which do not yet allow us to move on to such the development model. However, this usually happens without taking into account the mode of innovative dynamics that has already taken shape at the current moment, both at the micro level (the effectiveness of science-intensive firms) and at the macro level – according to the dynamics of innovative development parameters, in particular, the growth rate of innovative agents, changes in the share of firms innovators. The current effectiveness of the functioning of science-intensive (innovative) firms undoubtedly affects the emergence of innovative firms and the number of agents in the economy. The clarification of such a relationship is important, which will allow us to better outline the outline of the model of the innovative type of economic growth. Thus, it was found that in Russia from the analyzed countries (USA, China, EU), the increase in GDP occurred simultaneously with a decrease in the number of innovative agents and the share of innovative companies, and the growth rate decreased with an increase in the growth rate of the number of innovative agents in the studied time interval. This is a conservative model of economic dynamics. The innovative development model assumes a situation where GDP increases with the growth in the number of innovative agents, the growth rate slows down with an increase in the growth rate of the number of innovative agents due to the relatively high share of these agents in the total, which is typical for China. Thus, the formation of an innovative Russian growth model will require changes in the government system of economic policy measures. In particular, it will be necessary to test the impact of changing the law of the relationship between GDP dynamics and the number of firms and innovative agents, as well as the conditions for moving labor resources from old to new industries and training personnel for new industries, take into account restrictions on the effectiveness of science-intensive firms, and introduce a stimulating tax mechanism innovation, and reduce the risks of introducing innovation.

scholarly journals Local government debt and regional economic growth in China

2019 ◽  
Vol 2 (2) ◽  
pp. 330-353
Author(s):  
Shiyi Chen ◽  
Wang Li
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Theoretical Model ◽  
Local Government ◽  
Regional Differences ◽  
Government Debt ◽  
Eastern Region ◽  
Content Type ◽  
The Government ◽  
The Impact

Purpose With China’s economic growth slowing down and the growth rate of fiscal revenue decreasing, the pressure on local government debts is further increasing. Under this background, it is of great significance to clarify the relation between local government debts and China’s economic growth in order to give full play to the positive role of local debts in stabling growth. The paper aims to discuss this issue. Design/methodology/approach Therefore, this paper explores the impact of Chinese local government debt on economic growth from theoretical and empirical aspects, respectively, and compares the regional differences between different debts and economic growth dynamics. Findings In the theoretical model part, this paper constructs a three-sector dynamic game model, under the two circumstances of whether local government is subject to debt constraints, and examines the relation between local government debt and economic growth and other variables through numerical simulation. Research shows that when the government is not constrained by debt, there is an inverted “U” relation between government debt and economic growth. When the government is constrained by debt, the economic growth rate gradually decreases as the government debt increases. Originality/value In the theoretical analysis part, this paper tries to estimate the amount of local debts under different calibers and examines the impact of different types of local government debts on China’s economic growth and their regional differences. The results show that excessive accumulation of government hidden debts in the eastern region is not conducive to economic growth, while explicit debts in the central and western regions significantly contribute to local economic growth. The results of empirical analysis are basically consistent with the predictions of the theoretical model.

scholarly journals Inclusive growth through creation of human and social capital

2014 ◽  
Vol 41 (10) ◽  
pp. 878-895 ◽  
Author(s):  
Soumyananda Dinda
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Human Capital ◽  
School Enrollment ◽  
Inclusive Growth ◽  
Content Type ◽  
The Social ◽  
The Government ◽  
Human And Social Capital ◽  
The Impact

Purpose – The purpose of this paper is to analyse inclusive growth that focuses on the creation of opportunities for all. Inclusive growth allows people to contribute to and benefit from economic growth, while pro-poor growth approaches focusing on welfare of the poor only to reduce inequality. Design/methodology/approach – Social capital forms with the development of human capital through schooling. Educated individuals are interested in dialogue and conversation. Interaction enables people to build trust, confidence and cooperation, to commit themselves to each other (i.e. reciprocity), and thereby to knit the social fabric. This study deals with the formation of social capital through development of human capital that is created through improvement of schooling and/or social inclusion. Creation of human and social capital is the basis for inclusive growth. Findings – Recently, economics literature incorporates social capital for explaining regional disparities. Economic development of country depends on the impact of social capital which includes social culture, norms and regulations that promote economic reforms and development activities. Social capital forms with the development of human capital through schooling. Research limitations/implications – More detail regional levels data are required for empirical findings. Practical implications – This paper definitely suggests a clear policy for inclusive growth model in less developed regions/countries. Briefly and specific few policies are suggested as: first, improve productive consumption providing nutritional intake to all the excluded people of the society; second, dismal the social blocking and create the base for bridging social capital formation; third, improve school enrollment and strengthen the feeling of togetherness; fourth, design school curriculum as per need base; and fifth, develop institutions and improve capacity building. Social implications – The Government expenditure policy should be focused more on productive consumption rather than unproductive consumption. The government should concentrate on the development of education and health sectors. Originality/value – The inclusive economic growth process overcomes low-level equilibrium trap. The predictions of the model are examined empirically for a cross-section of countries and have substantial support in the chosen sample data.

scholarly journals The Impact of Capital Flight on Economic Growth and Financial Stability in Palestine

2021 ◽  
pp. 85-101
Author(s):  
Nemer Badwan
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Financial Stability ◽  
Production Costs ◽  
Capital Flight ◽  
Series Data ◽  
Investment Environment ◽  
Economic Growth Rate ◽  
The Government ◽  
The Impact

This study examined the impact of Capital Flight on Economic Growth and Financial Stability in Palestine from the period (2000-2020). The time series data of Capital Flight, Foreign Exchange Reserves, Foreign Debt, and Real GDP used in the study, and the use of ordinary least squares estimation technology to analyze the research data. Carried out Johansen co-integration and error correction mechanism. The evidence of the research results shows that there is a co-integration relationship between the research variables, and Capital Flight has harmed the Economic Growth of the Palestinian case. Based on these findings, the study recommends that the government should provide a favorable investment environment to encourage investment and prevent Capital Flight from Palestine. In addition, the Palestinian Government should also prevent Capital Flight because these Infrastructure Projects/Programs will reduce the country’s production costs. The government should create a suitable investment environment for foreign investment and encourage entrepreneurs and equity owners to invest these funds domestically. In addition, the government should use all Foreign Aid funds in appropriate places to increase the Economic Growth Rate and create job opportunities for the unemployed, thereby increasing the National Economic Growth Rate.

Growth and Development Planning in India

2021 ◽  
Author(s):  
K. L. Datta
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Development Strategy ◽  
Growth And Development ◽  
Poverty Reduction ◽  
Development Planning ◽  
Reform Process ◽  
The People ◽  
Standards Of Living ◽  
The Impact

The central theme of this book is to appraise the role of planning to maximize the rate of economic growth, and improve the standards of living and quality of life of the people in India since Independence. The book addresses four core areas. First, it delves into the circumstances which led to the adoption of planning and presents a comprehensive analysis of the economic scenario that unfolded in the six decades between 1951 and 2011, documenting shifts in growth and development strategy. Second, it explores the rate and pattern of economic growth, and traces reasons behind the shortfall in growth rate from the target. Third, the book contextualizes the backdrop against which economic reform measures were introduced to understand how different areas and sectors of the economy were integrated with the reform process. Fourth, it analyses the transition from growth measures pursued until the 1970s, to a mix of growth and redistribution from the 1980s, and then to inclusive growth in the 2000s, and finds out how income, especially of the poor and marginalized sections of the population increased. It makes an assessment of the level and change in poverty over time, and the impact of economic growth on poverty reduction. These four thematic areas of the book are essential to understand the process of economic growth and its impact on the lives of the people in India's rapidly changing socio-economic environment. Finally, it assesses the economic scenario in the 2010s, when planning was abandoned, and pinpoints the reasons behind dipping growth rate, and suggests measures for its revival.

A Study of Trends in India’s Economic Growth since 1951: The Inclusive Growth Approach

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Arjun. Y. Pangannavar
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Model ◽  
Economic Reforms ◽  
Inclusive Growth ◽  
Economic Growth Rate ◽  
Economic Growth Model ◽  
High Level ◽  
The Impact ◽  
Double Digit

This paper focuses on the saga of India’s economic growth under the ‘Nehru-Mahalanobis Economic Growth Model’ (NMEGM) and ‘Narsimhrao-Manmohan Singh Economic Growth Model’ (NMSEGM). The NMEGM continued till 1990 unceasingly; Indira Gandhi’s social control had supported the model to place India’s economic growth at a high level. After becoming a member of World trade Organization (WTO), India entered the epoch of world new economic order and initiated new economic reforms. It followed globalisation, liberalisation and privatisation policies to achieve double digit economic growth rate. This model is popularly known as ‘Narsimhrao-Manmohan Singh Economic Growth Model’. Based on past trends and new changes, this paper attempts to assess the impact of NMSEGM on future economic growth. India has practiced both endogenous and exogenous models of economic growth. The endogenous model was in operation from 1956-57 till 1990-91 that placed economic growth rate at more than 5%. However, from 1990-91, the new economic reforms have followed the exogenous model that has raised economic growth rate to nearing double-digit; but, the decadal economic growth rate has shown a declining trend. This paper attempts to assess the growth rate trends of Indian economy by using the measuring tool called ‘Inclusive Growth’ to get a fair and true picture.

Cuba's “Equity without Growth” Dilemma and the 2011 Lineamientos

2012 ◽  
Vol 54 (03) ◽  
pp. 157-184 ◽  
Author(s):  
Javier Corrales
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Internet Access ◽  
Economic Reforms ◽  
Political Rights ◽  
Bicycle Industry ◽  
The Government ◽  
The Impact ◽  
Two Sectors

Abstract Cuba faces a development dilemma: it promotes equity and human capital while failing to deliver economic growth. For the government, the country's equity and human capital achievements are a source of pride, a sign that its priorities are right. This essay argues instead that this “equity without growth” dilemma is a sign of malaise. Theory and evidence suggest that high levels of equity and human capital should produce high levels of economic growth. Because growth is often weak or negative, some onerous barriers to development must be present. These barriers, it is argued, are restrictions on property and political rights. By comparing Cuba and China across two sectors, the bicycle industry and Internet access, this article shows how these restrictions have hindered growth. It also assesses how Cuba's latest economic reforms, the so-called Lineamientos, will address Cuba's development dilemma. The impact may be minimal, but perhaps more lasting than previous reforms.

Kazakhstan: Assessment of Renewable Energy Support and a Green Economy

2021 ◽  
Vol 12 (3) ◽  
pp. 631
Author(s):  
Sergey BESPALYY
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
The State ◽  
Green Economy ◽  
Energy Sources ◽  
Environmentally Sustainable ◽  
The Government ◽  
The Impact

The growth of renewable energy sources (RES) shows the desire of the government of Kazakhstan to meet challenges that affect the welfare and development of the state. National targets, government programs, policies influence renewable energy strategies. In the future, renewable energy technologies will act as sources of a green economy and sustainable economic growth. The state policy in the field of energy in Kazakhstan is aimed at improving the conditions for the development and support of renewable energy sources, amendments are being made to provide for the holding of auctions for new RES projects, which replaces the previously existing system of fixed tariffs. It is expected that the costs of traditional power plants for the purchase of renewable energy will skyrocket, provided that the goals in the field of renewable generation are achieved. This article provides an assessment of international experience in supporting renewable energy sources, as well as analyzes the current situation in the development of renewable energy in Kazakhstan and the impact on sustainable development and popularization of the «green» economy. The study shows that by supporting the development of renewable energy sources, economic growth is possible, which is achieved in an environmentally sustainable way.

scholarly journals Government Expenditure and Economic Growth Nexus: Evidence from Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Least Square ◽  
National Bureau ◽  
Fiscal Discipline ◽  
Secondary Sources ◽  
Economic Development And Growth ◽  
The Government ◽  
The Impact

The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations. It is against this background that this paper examined the antecedent effect of government spending on the Nigerian economic growth. The general objective of the study is to ascertain the relationship between government expenditure and economic growth in Nigeria; specifically, the study examined: (i) the significance influence of government capital expenditure on economic growth in Nigeria and (ii) the significance influence of government recurrent expenditure on economic growth in Nigeria. The study employed ordinary least square (OLS) multiple regression analysis in estimating the specified model, with the Gross Domestic Product (GDP) as the dependent variable, while Capital Expenditure (CAPEXP) and Recurrent Expenditure (REXP) are the independent variables. Data between 1980 – 2013 were collected from secondary sources through the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Results showed that in Nigeria, there exist a significant relationship between the government expenditure and economic growth. The study therefore recommends instilling fiscal discipline in government expenditures, and putting in place structural mechanisms to act as surveillance on capital spending so as to boost the nation’s human and social capital.

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