Social organization and its impact on economic growth in China

2018 ◽  
Vol 45 (1) ◽  
pp. 126-143
Author(s):  
Yidan Chen ◽  
Lanying Sun
Keyword(s):  
Economic Growth ◽  
Social Organization ◽  
Growth Model ◽  
Capital Investment ◽  
Ordinary Least Squares ◽  
Added Value ◽  
Full Time ◽  
Content Type ◽  
Economic Growth Model ◽  
The Impact

Purpose The purpose of this paper is to analyze the direct and indirect impacts of social organization in promoting Chinese economic growth. It adopts empirical research to test the correlated hypotheses, and tries to put forward some policy suggestions. Design/methodology/approach Social organizations are measured by four indicators in this paper. It proposes five hypotheses about the impact of social organization on economic growth and builds an economic growth model including social organization. The ordinary least squares and stepwise regression methods are conducted to estimate the economic growth model with the data from 1999 to 2015. Findings Through the empirical analysis, it finds that the added value of social organization, human capital, investment and government budget expenditure affect economic growth significantly. The number of social organization at the end of each year has a positive significant effect on entrepreneurship, while the added value and growth rate of it have a negative effect on it. The numbers of social organization and full-time employee have significant effect on number to workers in the labor force. Only the number of social organization has positive significant effect on public education. Originality/value This paper conducts an empirical study on the impact of social organization on economic growth in China and fills a gap of the role of social organization on the economy in developing countries. The results provide referenced information for public policy-making.

scholarly journals The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

2020 ◽  
Vol 47 (9) ◽  
pp. 1143-1159
Author(s):  
Roseline Tapuwa Karambakuwa ◽  
Ronney Ncwadi ◽  
Andrew Phiri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
African Countries ◽  
Content Type ◽  
Econometric Approach ◽  
The Impact ◽  
The Relationship ◽  
Ssa Countries

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

Political instability and its impact on economic growth: the case of Jordan

2019 ◽  
Vol 18 (3) ◽  
pp. 366-380 ◽  
Author(s):  
Malak Samih Abu Murad ◽  
Nooh Alshyab
Keyword(s):  
Economic Growth ◽  
Design Methodology ◽  
Negative Impact ◽  
Positive Impact ◽  
Political Instability ◽  
Ordinary Least Squares ◽  
Small Country ◽  
Content Type ◽  
The Impact ◽  
Least Squares Approach

Purpose Political instability may have far-reaching implications for economic performance. This paper aims to analyze the impact of political instability on economic growth by focusing on the case of Jordan, a small country located in the Middle East, which represents a highly political instable region. Design/methodology/approach The analysis is performed by regressing different indicators for internal and external political instability on economic growth for the period from 1980 to 2015 using the fully modified ordinary least squares approach. Findings The results point at a significant impact of political instability on the economic growth of the country in all the specifications considered; in particular, the analysis reveals a positive impact of external political instability indexed by border countries’ political instability and a negative impact of internal political instability, as proxied by the number of crimes and cabinet changes. Further, regarding the effect of the level of freedom, the authors find evidence for the so-called conflict perspective. Originality/value This paper is original and relevant for two main reasons. First, it adds to the debate on the effects of political instability on economic growth, and hereby, disentangles the effects of internal and external political instability. Second, it makes an important contribution by focusing on the case of Jordan, which has received little attention in the literature on political instability so far, even though political instability is a constant threat to the country.

scholarly journals Economic growth and financial performance of Islamic banks: a CAMELS approach

2020 ◽  
Vol 28 (1) ◽  
pp. 47-62 ◽  
Author(s):  
Mohammed Ayoub Ledhem ◽  
Mohammed Mekidiche
Keyword(s):  
Economic Growth ◽  
Financial Performance ◽  
Endogenous Growth ◽  
Growth Model ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Model Framework ◽  
Content Type ◽  
Endogenous Growth Model ◽  
The Impact

PurposeThe purpose of this paper is to investigate the link between the financial performance of Islamic finance and economic growth in all of Malaysia, Indonesia, Brunei, Turkey and Saudi Arabia within the endogenous growth model framework.Design/methodology/approachThis study applied dynamic panel system GMM to estimate the impact of the financial performance of Islamic finance on economic growth using quarterly data (2014:1-2018:4). CAMELS system parameters were employed as variables of the financial performance of Islamic finance and gross domestic product (GDP) as a proxy of economic growth. The sample contained all Islamic banks working in the five countries.FindingsThe findings demonstrated that the only significant factor of the financial performance of Islamic finance, which affects the endogenous economic growth, is profitability through return on equity (ROE). The experimental findings also indicated the necessity of stimulating other financial performance factors of Islamic finance to achieve a significant contribution to economic growth.Practical implicationsThe analysis in this paper would fill the literature gap by investigating the link between financial performance of Islamic finance and economic growth, as this study serves as a guide for the academians, researchers and decision-makers who want to achieve economic growth through stimulating Islamic finance in the banking sector. However, this study may well be extended to investigate the link between the financial performance of Islamic finance and economic growth over the Z-score model as another measure for the financial performance of Islamic finance.Originality/valueThis paper is the first that investigates the link between financial performance of Islamic finance and economic growth empirically using CAMELS parameters within the endogenous growth model to provide robust information about this link based on a sample of the top pioneer Islamic finance countries.

scholarly journals Analysis of the influencing factors on China’s forestry economic growth based on grey correlation model

2019 ◽  
Vol 1 (1) ◽  
pp. 17-31
Author(s):  
Shuifa Ke ◽  
Dan Qiao ◽  
Zhangchun Chen
Keyword(s):  
Economic Growth ◽  
Influencing Factors ◽  
Capital Investment ◽  
Labor Input ◽  
Positive Role ◽  
Content Type ◽  
Grey Correlation ◽  
Property System ◽  
China Forestry ◽  
The Impact

Purpose The purpose of this paper is to analyze the influence of different factors on forestry production, with an aim to explore the degree of connection between forestry economic growth and influencing factors such as forestry investment, labor input, afforestation area, scientific and technologies progress, and the reform of property-rights regimes. Design/methodology/approach According to the data of China Forestry Statistical Yearbook from 1978 to 2017, this paper uses the grey correlation analysis to observe and analyze the factors influencing China’s forestry economics growth. Findings The results show that capital investment demonstrates the largest impact on the forestry output value, followed by property system, afforestation area, labor input and technologies progress. The correlation coefficients of the above factors are 0.874451654,0.85827468,0.835138412,0.832985604 and 0.825747493. This means that forestry capital investment plays a major role in contributing to forest economic growth; forest property system also plays a positive role in the growth of forestry economy. Originality/value This paper uses continuous data collected during 1978‒2017, which are quite extensive as compared to data used in the existing research, considering the influencing factors are comprehensive, especially the impact of property right system reform on forestry economic growth.

How important is mobile telephony for economic growth? Evidence from MENA countries

Info ◽  
2016 ◽  
Vol 18 (3) ◽  
pp. 58-79 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Economic Growth ◽  
Ordinary Least Squares ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Financial Inclusion ◽  
Mobile Telephony ◽  
Content Type ◽  
Mena Countries ◽  
Cent Increase ◽  
The Impact

Purpose The explosion of mobile telephony in recent times has led to the emergence of a significant volume of literature. One area that has been relatively under-researched has been the role of mobile telephony in impacting economic growth and the relevance of financial inclusion in this respect. Using data on MENA countries during 2001-2012, this paper aims to examine this issue within an empirical framework. Design/methodology/approach The analysis is based on longitudinal data for the period 2001-2012 and examines the interrelationships among per capita income, financial inclusion and mobile telephony. To take on board this interrelationship, the authors use a simultaneous equation model. In contrast to the ordinary least squares, 3SLS exploits the information that the disturbance terms in the two structural terms are contemporaneously correlated, thereby producing consistent estimates. Findings The analysis suggests a significant relationship among these variables. In particular, a 1 per cent increase in the fraction of population using mobile telephony improves incomes by roughly 0.3 per cent points, whereas a similar 1 per cent increase in financial inclusion has double the impact on income. The findings also support a convex, non-linear relationship between income and cellular penetration. Robustness tests lend credence to these findings. Originality/value Although there are several studies on mobile telephony and growth, this paper provides a completely original contribution in the area of financial inclusion, linking the development of access to mobile communication to new channels for the unbanked population in the Arab economies.

scholarly journals The role of global value chains in the impact of the Covid-19 pandemic on the world economy

2020 ◽  
pp. 10-17
Author(s):  
Reyna Myrna Paredes-Medina
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
World Economy ◽  
Global Value Chains ◽  
Value Chains ◽  
Strong Impact ◽  
Health Crisis ◽  
Economic Growth Model ◽  
The World ◽  
The Impact

The biggest problem that this health crisis has presented is the strong impact it has had on the world economy. As never before, another phenomenon, the COVID-19 pandemic, has come to put world trade at serious risk. This article aims to expose that. The magnitude of the health crisis is a consequence of the development of the current economic growth model and the role that Global Value Chains, as a fundamental part of the structure of the economic growth model, have had on the impact that this health crisis has had on the worldwide economy.

scholarly journals Forecast of China’s economic growth during the COVID-19 pandemic: a MIDAS regression analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samet Gunay ◽  
Gökberk Can ◽  
Murat Ocak
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Foreign Exchange ◽  
Ordinary Least Squares ◽  
Superior Performance ◽  
Alternative Methods ◽  
Mixed Data ◽  
Gdp Growth ◽  
Content Type ◽  
The Impact

Purpose This study aims to examine the effect of the COVID-19 pandemic in comparison to the global financial crisis (GFC) on the gross domestic product (GDP) growth rate of China. Design/methodology/approach Empirical analyses are conducted through alternative methods such as ordinary least squares, Markov regime switching (MRS) and mixed data sampling (MIDAS) regressions. The flexibility of MIDAS regression enables us to use different variables with quarterly (GDP), monthly (export sales and foreign-exchange reserves) and daily frequencies (foreign exchange rates and Brent oil price). Findings The results indicate that the COVID-19 pandemic has had a considerable negative effect on China’s GDP growth, while the dummy variables used for the GFC are found to be insignificant. Further, the forecast accuracy test statistics exhibited a superior performance from MIDAS regression compared to the alternative models, such as MRS regression analysis. According to the forecast results, the authors expect a recovery in China’s economic growth in the second quarter of 2020. Originality/value This is one of the earliest studies to examine the effect of the COVID-19 pandemic on the Chinese economy, and to compare the impact of COVID-19 with the GFC. The authors provide further evidence regarding the performance of MIDAS regression analysis vs alternative methods. Findings obtained shed light on policymakers, corporations and households to update their consumption, saving and investment decisions in the chaotic environment of this pandemic.

scholarly journals Domestic demand-based economic globalization and inclusive growth

2019 ◽  
Vol 2 (1) ◽  
pp. 136-156 ◽  
Author(s):  
Jianghuai Zheng ◽  
Chunmiao Shen
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Growth Model ◽  
Economic Globalization ◽  
Domestic Demand ◽  
Moderating Effect ◽  
Value Chains ◽  
Inclusive Growth ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective. Design/methodology/approach How will economic globalization based on domestic demand affect economic growth and income distribution in an open and large country? With the aim of discussing the mechanism of the impact of expanding domestic demand on the inclusive growth from an open perspective, this paper incorporates the Global Value Chains vs National Value Chains (GVC-NVC) competition, which is triggered by foreign investments attracted by the domestic demand scale into an endogenous growth model with “Schumpeterian Innovation.” Findings Theoretical analysis indicates the following findings: although domestic demand-based economic globalization can promote transnational inclusive growth across countries, it is not conducive to national (domestic) inclusive growth; the impacting effect of domestic demand scale on inclusive growth across countries is subject to the moderating effect of the development maturity of the labor market; and the impacting effect of domestic demand scale on national inclusive growth is subject to the joint moderating effect of the development maturity of the labor market and labor skill structure. Originality/value First, this paper examines the impact of domestic demand-based economic globalization on the inclusiveness of economic growth from an open perspective, which deepens the existing theory of intra-product specialization and inclusive growth. Second, the paper puts the sequential production process into Schumpeterian growth model and reveals the mechanism that domestic demand affects inclusive growth. Third, the study finds that the enhancement of labor market efficiency, transfer payments to low-skilled labor and the creation of a fair competitive market environment will contribute to the globalization of a domestic demand-oriented economy, which provides a policy-making basis for government sectors.

scholarly journals Does Sukuk financing boost economic growth? Empirical evidence from Southeast Asia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Ayoub Ledhem
Keyword(s):  
Economic Growth ◽  
Southeast Asia ◽  
Financial Markets ◽  
Endogenous Growth ◽  
Growth Model ◽  
Generalized Method Of Moments ◽  
Optimal Estimation ◽  
Content Type ◽  
Endogenous Growth Model ◽  
The Impact

Purpose This paper aims to investigate empirically whether Sukuk financing is boosting the economic growth in Southeast Asia within the framework of the endogenous growth model. Design/methodology/approach This paper applied dynamic panel one-step system generalized method of moments as an optimal estimation approach to investigate the impact of Sukuk financing on economic growth in Southeast Asia spanning from 2013Q4–2019Q3. Sukuk financing was proxied by the total issued Sukuk holdings, while economic growth was proxied by gross domestic product. The sample covered all full-fledged Islamic financial institutions in the most developed Sukuk financial markets countries in Southeast Asia (Malaysia, Indonesia and Brunei). Findings The findings demonstrated that Sukuk financing is boosting economic growth in Southeast Asia, which reflects the significant role of the Islamic financial markets of Sukuk as a vital contributor to economic growth. Practical implications This paper would fill the literature by investigating the link between Sukuk financing and economic growth in Southeast Asia within the framework of the endogenous growth model, as the outcome of this paper serves as a guide for financial researchers, decision-makers and policymakers to improve the Sukuk market globally as an alternative financing source for the best contribution to economic growth. Originality/value This paper is the first that investigates empirically the link between Sukuk financing and economic growth in Southeast Asia with a new theoretical context of the endogenous growth model to gain robust information about this link.

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.

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