scholarly journals The Effects of Budget Deficit on Economic Growth and Development: The Experience of Ghana (1994 – 2014)

2017 ◽  
Vol 13 (4) ◽  
pp. 211 ◽  
Author(s):  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Growth And Development ◽  
Budget Deficit ◽  
Private Investment ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Domestic Product ◽  
Empirical Literature ◽  
Economic Growth And Development

This paper surveyed and access the empirical literature on the sources of budget deficit and their policy implications on the processes of sustainable economic growth and development. The Ghanaian experience and evidence shows that the budget is not projected to be on a sustainable growth path under current socio-economic and political (governance) policies; the budget is projected to increase more quickly than the country’s Gross Domestic Product (GDP). The modeling of underlying variables (Inflation, Gross Domestic Product, Real Interest Rate, Gross Investment, Real Exchange Rate) to estimate the quantitative effect of continued budget deficit on the rate of economic growth, governance and development. The sample used for this study is based on panel data-sets between 1994 and 2014. Results obtained from the analysis pointed to an adverse impact of continued budget deficit on the processes of economic growth and development. The paper recommends the adoption and implementation of policies that could reverse the un-sustained budget deficit leading to crowding out of the private investment but rather, put the economic on a sustained path of growth and, development in the medium to long term.

SMEs Industry

2010 ◽  
pp. 39-53
Author(s):  
Stephen M. Mutula
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Growth And Development ◽  
The Philippines ◽  
Domestic Product ◽  
Asian Countries ◽  
Large Share ◽  
Economic Growth And Development ◽  
China’S Economy

There is a growing impetus internationally for the development of strong SME sectors as engines of economic growth and development. This impetus is driven by the recognition of SMEs as the backbone of most economies. For instance, there are about 30 million enterprises in Europe providing employment to around 122 million people, with the vast majority (99.8%) of these enterprises being SMEs (Riegebauer, 2004). These SMEs therefore generate a large share of the GDP (Gross Domestic Product) in most of the region’s countries. Asian countries are also investing significantly in SMEs. For example, during the 1980s and 1990s, China’s economy was largely driven by SMEs, while the Philippines invested heavily in the same (Gungen, 2003).

Индустријализација и раст бруто друштвеног производа // The Industrialization and Growth of Gross Domestic Product

2018 ◽  
Vol 13 (22) ◽  
pp. 151
Author(s):  
Брано Маркић ◽  
Сања Бијакшић ◽  
Арнела Беванда
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Gross Domestic Product ◽  
Industrial Production ◽  
Growth And Development ◽  
Manufacturing Sector ◽  
Domestic Product ◽  
Data Set ◽  
The Impact ◽  
The Relationship

Резиме: Рад је истраживање и емпиријска верификација закона Ницхолас Калдора о утицају индустријске производње на раст бруто друштвеног производа. Калдор је формулисао принципе економског раста у облику три закона који настоје утврдити кључне узроке економског раста. Први његов закон тврди да је стопа раста привреде позитивно корелирана са стопом раста њезина производног сектора. Индустрија као најважнија снага развоја привреде се поодавно анализира у литератури о привредном развоју: Hirschman (1961), Rosenstein-Rodan (1943), Th irnjall (2013), Cornnjall (1977). Циљ рада је емпиријски провјерити Калдоров приступ расту и развоју у Федерацији Босне и Херцеговине. Стога је обликован посебан скуп података кога чине дводимензионалне табеле и временске серије. Регресијском анализом је квантификована повезаност између стопа раста бруто друштвеног производа и стопе раста индустријске производње.Summary: The paper the industrialization and the growth of gross domestic product is a research and empirical verification of Nicholas Kaldor laws on the impact of industrial production to GDP growth. Kaldor has formulated the principles of economic growth in the form of three laws that tend to identify key causes of economic growth. His first law asserts that the rate of economic growth is positively correlated with the rate of growth of its manufacturing sector. Industry as the most important force of economic development is widely analyzed in the literature on economic development (Hirschman (1961), Rosenstein-Rodan (1943), Thirwall (2013), Cornwall (1977)). The aim is to empirically test the Kaldor’s approach to growth and development in the Federation of Bosnia and Herzegovina. It is therefore designed a special data set consisting of two-dimensional tables and time series. Using regression analysis was quantified the relationship between the growth rate of gross domestic product and the growth of industrial production. 

scholarly journals Economic Growth, Public and Private Investment: A Comparative Study of China and the United States

2020 ◽  
Vol 12 (6) ◽  
pp. 2243
Author(s):  
Ibrahim Ari ◽  
Muammer Koc
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Investment ◽  
The United States ◽  
Domestic Product ◽  
Public And Private ◽  
Macroeconomic Factors ◽  
Causal Relations ◽  
Sustainable Economic Growth ◽  
The U.S

Public and private investments play a central role in production functions by providing the required capital for development. There are many studies in the literature investigating the linear macroeconomic relations based on public and private investment in cross-country and country-specific analyses by focusing on various perspectives and methodologies. However, there is a gap in the literature in exploring nonlinear causal relations among public-private investment and economic growth, particularly in the U.S. and China, in order to comparatively discuss policy implementations and potential implications. To narrow the gap, this study investigates nonlinear causal relationships between public-private investment and gross domestic product in the U.S. and China, which are the largest economies comprising about 40 percent of the global gross domestic product (GDP) in 2018. These countries show a similar pattern in economic growth and implementing sustainable development goals, although they follow considerably different socio-economic regimes and fall into different development levels (i.e., developed and developing countries). Therefore, there should be a common underlying mechanism in macroeconomic factors that fosters economic development. In this regard, the motivation behind the study is to reveal a common, but hidden, behavior of the nonlinear causal relations of given macroeconomic factors in these countries to make recommendations about sustainable economic growth for policymakers. To this end, there are three main contributions of the paper. First, the research finds nonlinear dependencies in the related time series between 1960–2015, thereby nonlinear causality tests are performed to reach more reliable information than the linear causality. Second, the study formulates a feedback loop between public and private investment through economic growth, which indicates that public and private investment should stimulate each other directly or indirectly (i.e., through the GDP). Third, the direction of the causality does not affect sustainable economic growth as long as it exists directly or indirectly.

scholarly journals Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World

2021 ◽  
Vol 13 (23) ◽  
pp. 13126
Author(s):  
Victor I. Espinosa ◽  
Miguel A. Alonso Neira ◽  
Jesús Huerta de Soto
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Growth And Development ◽  
State Intervention ◽  
Sustainable Growth ◽  
Market Process ◽  
Economic Growth And Development ◽  
Genuine Savings ◽  
Coercive State ◽  
Sustainable Economic Growth

The analysis of sustainable economic growth and development often focuses on how to control the market process through coercive state intervention. While state interventionism may play a significant role in countries’ progress, entrepreneurship is the driving force behind sustainable growth and development. Entrepreneurship is the people’s judgment on ideas, plans, and projects, which promises profit in uncertain times. Its effects are the creation and transmission of information and social coordination as a dynamic process of identifying and solving human problems. Sustainable development is the widening range of entrepreneurial alternatives open to people, and sustainable growth is a phase of sustainable development that depends on genuine savings to finance increasingly capital-intensive production structures. The degree to which people are entrepreneurs and the direction genuine savings take depend on institutional arrangements. Some institutions are more conducive to sustainable growth and development than others. After reviewing principles of growth and development sustainability, how coercive state intervention influences economic performance is discussed, proposing novel policy conclusions and research avenues to cultivate entrepreneurship and genuine savings in a post-COVID-19 world.

scholarly journals Impact of Monetary Policy on GDP of India

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Om Prakash Agrawal ◽  
Prateek Kumar Bansal
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Gross Domestic Product ◽  
Growth And Development ◽  
Positive Impact ◽  
Economic Growth And Development ◽  
Credit Supply ◽  
Independent Variable ◽  
Tools And Techniques ◽  
The Impact

Monetary policy is a measure which is decided by the Apex bank to regulate currency supply and credit control in the Indian economy where as gross domestic product (GDP) is an indicator of growth and development of the economy. Monetary policy and its components i.e. CRR, SLR, BR, RR, RRR and MSF (Marginal Standing Facility) have impact on the inflation, credit supply in market and GDP of the country. The purpose of this study is to examine the impact of various financial components of monetary policy on the GDP, which is an index of economic growth and development of the economy. It has been observed during the study that monetary policy of the nation has positive impact on the GDP by applying the various tools and techniques with the help of Econometrics. In this study, GDP is used as dependent variable while components of monetary policy are used as independent variable to examine the impact.

scholarly journals Tax burden in EU countries

2020 ◽  
Vol 9 (17) ◽  
pp. 58-66
Author(s):  
Branimir Kalaš
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Domestic Product ◽  
Tax Burden ◽  
Annual Growth Rate ◽  
Economic Growth And Development ◽  
Eu Countries ◽  
Indirect Taxes ◽  
Average Share ◽  
The Subject

The degree of tax burden in the economy is a significant issue for every country. The state and fiscal authorities should provide a stimulating but sustainable tax environment that will cause positive implications for economic growth and development. The aim of this paper is to determine the degree of tax burden from the aspect of direct taxes and indirect taxes, as well as the correlation level with the annual rate of gross domestic product. The subject of this paper is the analysis of the tax burden in EU countries for the period 2006-2018. The results of the analysis indicate that average share of total taxes is 38.18% of gross domestic product, where the average share of direct taxes is 12.77% and the average share of indirect taxes is 13.42% of gross domestic product. Also, the results of correlation matrix show a statistically significant and negative correlation between tax burden and economic growth measured by the annual growth rate of gross domestic product.

Do Public and Private Project Infrastructure Expenditure in States Contribute to the Economic Growth of Nation? Evidences from India

2019 ◽  
Vol 67 (1-2) ◽  
pp. 9-29
Author(s):  
J. C. Edison ◽  
Harish Kumar Singla
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Service Sector ◽  
Private Investment ◽  
Dynamic Panel Data ◽  
Domestic Product ◽  
Regression Equations ◽  
Dynamic Panel ◽  
Public And Private ◽  
Power Construction

The purpose of the article is to find the effect of public expenditure (GI) and private project expenditure (PI) in different states on state gross domestic product (SGDP) and national gross domestic product (NDGP). The study also attempts to examine the sectors that contribute the most in growth of state and nation. The selected sectors in the study include manufacturing, mining, services, power, construction and infrastructure and irrigation. Data of all states and four union territories (UTs) for GI and PI in selected sectors are collected and a panel is formed. Four different regression equations are developed. The estimation is done using two-step Arellano–Bover/Blundell–Bond’s dynamic panel data to account for endogeneity and heteroscedasticity. The results suggest there exist two clusters of states in India. First cluster is of 13 states, which contributes towards the economic growth of nation and the other cluster is 16 states and UTs that do not contribute towards the economic growth of nation. The states that contribute towards the economic growth of nation do it primarily through private investment in the service sector.

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