scholarly journals The Role of Social Capital on Rural Enterprises Economic Performance: A Case Study in Indonesia Villages

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110441
Author(s):  
Adiwan Aritenang
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Rural Economy ◽  
Policy Implications ◽  
Enterprise Management ◽  
Legal Documents ◽  
Content Analysis Method ◽  
The Government ◽  
Rural Enterprises

Following the nationwide implementation of the Village Funds, the government attempted to accelerate rural economic growth through rural enterprises ( Badan Usaha Milik Desa/BUMDes). This study aimed to analyze how social capital affects village-owned enterprise management to accelerate rural economy. This study was conducted in 2018 and applied a qualitative approach and case study design with a content analysis method derived from interviews, observations, and legal documents. The analysis shows that stakeholders’ development visions to initiate the establishment are critical to determining the management and cooperation of rural enterprises, especially regarding the common direction of development. This study’s results show that, presently, rural enterprises have a low impact on rural economic growth. This study also argues for policy implications by highlighting the importance of social capital and village local assets to determine BUMDes development in Indonesia. Specifically, local policies should also aim to enhance community participation and improve BUMDes’ human capital on management and marketing.

scholarly journals Impacts of Economic Structural Change on Economic Growth: Forecasting Models and Policy Implications (A Case Study of Bến Tre Province)

2013 ◽  
Vol 218 ◽  
pp. 20-36
Author(s):  
Hổ Đinh Phi ◽  
DUY NGUYỄN KHÁNH
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
National Development ◽  
Quantitative Model ◽  
Policy Implications ◽  
Causality Test ◽  
Policy Makers ◽  
Service Sectors ◽  
The Government

During the past ten years, economic growth in Vietnam changed positively in the direction of a modern industrial economy. Accordingly, economic structure also experienced changes in which manufacturing and service sectors accounted for a bigger share in the GDP. The government and most researchers are therefore very interested in economic structural change. This structural change in Vietnam as a whole requires the same change in local economies. However, some provinces did not catch up with the national development yet. Thus, in order to facilitate structural change on the whole economy, it is necessary to clarify what economic structural change aims at, and identify a quantitative model for measuring impact of such change, which becomes a real challenge to Vietnam?s researchers and policy makers. To help solve this problem, the authors conducted a case study in B?n Tre to seek practical evidence. The results, based on regressive model, VAR model and Granger causality test, show that economic structural change impacts on the level of economic growth, labor productivity and the quality of life. This research also lays the foundation for a model for forecasting impacts of economic structural change.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals Revisit coal consumption, CO2 emissions and economic growth nexus in China and India using a newly developed bootstrap ARDL bound test

2017 ◽  
Vol 36 (3) ◽  
pp. 450-463 ◽  
Author(s):  
Feng-Li Lin ◽  
Roula Inglesi-Lotz ◽  
Tsangyao Chang
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Policy Implications ◽  
Coal Consumption ◽  
Causality Test ◽  
Ardl Model ◽  
Empirical Results ◽  
China And India ◽  
The Government ◽  
Bound Test

This study revisits coal consumption, CO2 emissions and economic growth nexus for both China and India using a newly developed Bootstrap ARDL model over the period of 1969–2015. Empirical results indicate no long-run relationship among these three variables for both China and India, and Granger causality test based on Bootstrap ARDL model indicates a feedback between coal consumption and economic growth, between economic growth and CO2 emissions and between coal consumption and CO2 emissions in China. However, we find a one-way Granger causality running from coal consumption to economic growth and the feedback hypothesis is confirmed between economic growth and CO2 emissions and between coal consumption and CO2 emissions in India. The coefficients signal that coal consumption is an important factor towards the promotion economic growth in both China and India. For China, higher economic growth reduces CO2 emissions, while for India, it further increases CO2 emissions. Our empirical results have important policy implications for the government conducting effective energy polices to promote economic growth in both China and India.

scholarly journals All for All: Equality, Corruption, and Social Trust

2005 ◽  
Vol 58 (1) ◽  
pp. 41-72 ◽  
Author(s):  
Bo Rothstein ◽  
Eric M. Uslaner
Keyword(s):  
Social Capital ◽  
Social Trust ◽  
Equality Of Opportunity ◽  
Two Dimensions ◽  
Policy Implications ◽  
Economic Equality ◽  
The Social ◽  
Market Opportunities ◽  
Low Levels ◽  
The Government

The importance of social trust has become widely accepted in the social sciences. A number of explanations have been put forward for the stark variation in social trust among countries. Among these, participation in voluntary associations received most attention. Yet there is scant evidence that participation can lead to trust. In this article, the authors examine a variable that has not gotten the attention it deserves in the discussion about the sources of generalized trust, namely, equality. They conceptualize equality along two dimensions: economic equality and equality of opportunity. The omission of both these dimensions of equality in the social capital literature is peculiar for several reasons. First, it is obvious that the countries that score highest on social trust also rank highest on economic equality, namely, the Nordic countries, the Netherlands, and Canada. Second, these countries have put a lot of effort in creating equality of opportunity, not least in regard to their policies for public education, health care, labor market opportunities, and (more recently) gender equality. The argument for increasing social trust by reducing inequality has largely been ignored in the policy debates about social trust. Social capital research has to a large extent been used by several governments and policy organizations to send a message to people that the bad things in their society are caused by too little volunteering. The policy implications that follow from the authors' research is that the low levels of trust and social capital that plague many countries are caused by too little government action to reduce inequality. However, many countries with low levels of social trust and social capital may be stuck in what is known as a social trap. The logic of such a situation is the following. Social trust will not increase because massive social inequality prevails, but the public policies that could remedy this situation cannot be established precisely because there is a genuine lack of trust. This lack of trust concerns both “other people” and the government institutions that are needed to implement universal policies.

No Exaggeration: Truthfulness in the Lobbying of Government Agencies by Competing Interest Groups

2013 ◽  
Vol 14 (4) ◽  
pp. 499-520 ◽  
Author(s):  
HYOUNG-GOO KANG ◽  
THOMAS T. HOLYOKE
Keyword(s):  
Interest Groups ◽  
Large Body ◽  
Policy Implications ◽  
Government Officials ◽  
Strategic Behaviors ◽  
Tax Returns ◽  
Competing Interest ◽  
The Government ◽  
Present Case Study

AbstractIntense competition can compel lobbyists to exaggerate the benefits the government would see in tax returns and social welfare if agency officials allocate such resources to the lobbyist's members. This incentive to misrepresent grows when information asymmetry exists between lobbyists and government officials. A large body of literature has investigated how interest groups compete and interact, but it disregards the interdependency of interests between competing groups and associated strategic behaviors of other players. Our signaling model of lobbying reveals ways in which agency officials can compel lobbyists for competing interests to lobby truthfully and what the policy implications of this compulsion can be. We also present case-study evidence of how this works in practice.

scholarly journals Contribution of Islamic Social Capital on Green Economic Growth in Malaysia

2020 ◽  
Author(s):  
Nazrah Abdul Hamid ◽  
Ruhaini Muda ◽  
Md. Mahmudul Alam ◽  
Normah Omar ◽  
Farah Aida Ahmad Nadzri
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Well Being ◽  
Policy Implications ◽  
Annual Data ◽  
Green Growth ◽  
Vector Error Correction ◽  
Growth Measurement ◽  
Distributed Lag ◽  
Short Run

This paper studies the relationship between social capital on the green growth in Malaysia, with the aim of ascertaining whether faith based social capital has a role in sustaining economic growth. The study utilizes the annual data over the period of 1970-2015. This study employs the Autoregressive Distributed Lag (ARDL) model and causality using the Vector Error Correction Model (VECM). The findings demonstrate the long and short-run associations between social capital and green growth in Malaysia. The causality only runs in a unidirection from social capital to the green economic growth. The findings have important policy implications for green economic growth measurement to account for social well-being and to fulfil the objectives of Islamic Sharia.

scholarly journals Sustainable Local Economic Development in Tanzania: Exploring Economic Challenges in Growing the Economy

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Kaihula P. Bishagazi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Local Economic Development ◽  
Local Development ◽  
Economic Policies ◽  
Economic Activities ◽  
Top Down ◽  
Growth Center ◽  
The Government

The failure of macro-economic policies to deliver meaningful reductions in poverty and achieve basic needs in Tanzania has provoked a deep questioning of the relevance of economic growth center policies in Local Economic Development (LED). The government and development partners are increasingly shifting from the traditional top down approaches to the all-inclusive bottom up approaches for effective local development. The concept of sustainable Local Economic Development is thus examined in the context of economic activities and challenges using a case study of Shinyanga region in Tanzania. 

ICT4D in China and the Capability Approach

2015 ◽  
Vol 7 (1) ◽  
pp. 58-72 ◽  
Author(s):  
Carol Ting
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Capability Approach ◽  
Rural China ◽  
Well Being ◽  
Policy Implications ◽  
Chinese Government ◽  
The Past ◽  
The Government ◽  
The Capability Approach

For more than a decade, the Chinese government has poured copious resources into rural informatization as a means to increase agricultural productivity and rural economic growth. Such efforts so far have not produced definite results in rural areas, but increasing economic inequality and rising environmental threats have already forced the government to rethink its growth-centered development policy. Indeed, recent government releases clearly state the resolve to departure from the “GDP obsession” of the past. Meanwhile, the past three decades saw the rise of a powerful alternative development approach—the Capability Approach (CA), which focuses on empowering individuals and sees economic growth as one element of well-being. Given that the CA can potentially help devising a more coherent and holistic framework for Information and communications technologies for development (ICT4D), this paper examines the compatibility between the Capability Approach and the top-down socialist approach towards rural informatization in China. Built on two case studies of rural informatization in rural China, the present paper identifies potential obstacles to the adoption of the Capability Approach and discusses policy implications and suggestions.

scholarly journals Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake

2018 ◽  
Vol 10 (12) ◽  
pp. 4409 ◽  
Author(s):  
Renjie Zhao ◽  
Shihu Zhong ◽  
Aiping He
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Wenchuan Earthquake ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Policy Implications ◽  
Economic Recovery ◽  
Obvious Effect ◽  
2008 Wenchuan Earthquake ◽  
The Government

How disasters have affected economic growth has often been a subject for economic debate, and empirical studies of the experience in China are clearly inadequate. Using the panel data from 181 county-level cities in Sichuan province from 2003 to 2013, this paper investigates the direct and dynamic effects of the Wenchuan earthquake disaster on economic growth, as well as how national rescue affected postdisaster economic recovery. The econometric results show that earthquakes significantly reduce real GDP in the affected areas after controlling for the national rescue variables, and this negative effect exists in the affected area over a long time. In addition, our empirical findings suggest that the postdisaster national rescue can promote economic recovery in the affected areas by increasing government expenditure, improving traffic conditions, and enhancing the urbanization process and the level of industrialization. Besides, state financial aid has no obvious effect on the development of tertiary industries and the accumulation of human capital in affected areas. These results were found to be robust after applying several approaches to alleviate the potential endogeneity problem. Findings in this study carry several important policy implications. As well as providing national rescue to promote postdisaster reconstruction, the government should also develop policies that will provide direct aid funding to tertiary industries and boost postdisaster economic reconstruction and human capital accumulation, thus improving the efficiency of relief funding and reducing the long-term adverse effects of the disaster on economic growth.

scholarly journals Rural Diversification Strategies in Promoting Structural Transformation in Zimbabwe

2018 ◽  
Vol 7 (2) ◽  
pp. 123-138
Author(s):  
Mathew Svodziwa
Keyword(s):  
Structural Transformation ◽  
Rural Economy ◽  
Rural Households ◽  
Rural Livelihoods ◽  
Small Scale ◽  
Structured Interviews ◽  
Income Sources ◽  
Diversification Strategies ◽  
The Government

Abstract Rural diversification strategies in Zimbabwe are wide in nature but the environment plays an important role in ensuring that sustainability and structural transformation are achieved. A good understanding of the diversity of rural livelihoods choices and income sources among rural households would therefore inform policy makers on appropriate policy interventions. This paper delves to establish the role of rural diversification strategies in promoting structural transformation in Zimbabwe using Insiza district as a case study. A mixed methods research design was used. Both qualitative and quantitative data collection methods were applied. The study utilized semi-structured interviews with key informants who were purposively sampled to take part in the study. A total of 100 questionnaires were distributed and 86 were returned thus giving the researcher a response rate of 86%. The study’s findings noted that rural diversification is an important component of the rural economy and it plays an important component in order to achieve structural transformation using Insiza district in Zimbabwe as a case study. The study also noted that though climate was negatively impacting on the Insiza district residents, households that diversified their income sources had enhanced income compared with farming households which do not diversify their income sources being vulnerable. The study recommends that the government should intervene by financing and educating the rural folk. Micro-policy should be targeted on rural households incomes that facilitate the provision of widening income options through small scale group schemes.

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