scholarly journals Current Economic Situation of India: Impact of COVID-19

2020 ◽  
Author(s):  
Indubaran Mandal
Keyword(s):  
Growth Rate ◽  
Household Income ◽  
Small And Medium Enterprises ◽  
Gdp Growth ◽  
Health Crisis ◽  
Indian Economy ◽  
Gdp Growth Rate ◽  
Current Economic Situation ◽  
Medium Enterprises ◽  
The Impact

The outbreak of the COVID-19 pandemic has greatly impacted the Indian Economy. The economy was already in a parlous state before COVID-19 struck. The prolonged lockdown in India will have a sizeable impact on the economy mainly on consumption which is the biggest component of GDP. The magnitude of the economic impact will depend upon the duration and severity of the health crisis, the duration of the lockdown and the manner in which the situation unfolds once the lockdown is lifted. In this paper we will discuss the impact of COVID-19 on various sector economy such as Tourism, Micro, Small and Medium Enterprises: Education and analyze the situation by using some indicators like the GDP growth rate, unemployment rate, Industrial Production, household income etc. This work mainly focuses on the situation in India pre-crises and during the crises to help understand the downturns and challenges faced by Indian Economy.

Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

scholarly journals Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

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 INVESTMENT AND ECONOMIC GROWTH: THE EXAMPLE OF BOSNIA AND HERZEGOVINA

2021 ◽  
pp. 21-41
Author(s):  
Jelena Bjelić
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Bosnia And Herzegovina ◽  
Foreign Investment ◽  
Added Value ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Total Investment ◽  
The Impact ◽  
The Relationship

An investment is a factor of the economic growth and a mandatory constituent in the majority of development models. This study analyzes the impact of the gross investment on the economic growth in Bosnia and Herzegovina (BiH) for the period 2005-2017, and provides the assessment of the interdependence of investment and a newly added value in industry. The relationship between the foreign investment and the economic growth is also included. The dependent variables are the GDP growth rate and the added value in industry (as % of GDP). The independent variables are the total investment rate (as % of GDP) and the foreign investment rate (as % of GDP). The hypothesis is that the gross investment and the foreign investment are positively correlated with the GDP growth rate. The investments contribute to a higher newly added value in industry. The results show that the gross investment is a significant factor of the economic growth because there is a high significance and positive correlation between the observed variables (the total investment and the GDP growth). This shows that the investment growth stimulates the economic growth in Bosnia and Herzegovina. But the dynamic analysis as an investment-GDP ratio shows oscillations. The impact of investments on the share of the newly added value in industry is insignificant and negative. The results of the dynamic analysis are similar. The relationship between the variables of the foreign investment rates and the GDP growth is significant and positive. Although the foreign investments are not sufficient, they still contribute, to a certain extent, to the economic growth of BiH.

scholarly journals Impact of Foreign Exchange Rate and Inflation Rate on the Economic Growth of India

2019 ◽  
Vol 8 (4) ◽  
pp. 4333-4335
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Inflation Rate ◽  
Linear Regression Analysis ◽  
Foreign Exchange Rate ◽  
Gdp Growth ◽  
Economic Progress ◽  
Gdp Growth Rate ◽  
The Impact

This paper tries to investigate the impact of foreign exchange rate and inflation rate on the economic progress of India. In this study the economic progress has been measured by annual GDP ( Gross Domestic Product ) growth in India. Correlation analysis and multiple regression model have been designed to explore the relationship among the mentioned three variables. The annual GDP growth of India has been considered as the dependent variable and the other two macroeconomic variables ( Foreign exchange rate and inflation rate ) have been considered as the independent variables. Secondary sources of data have been gathered to arrive at a logical conclusion. The results show a positive correlation between GDP growth rate and the foreign exchange rate and a negative correlation between the GDP growth rate and the inflation rate. Results from the linear regression analysis show that inflation rate has a strong influence or impact on the GDP growth rate than the foreign exchange rate. It is expected that the present study will help the policy makers and the researchers to understand the impact of foreign exchange rate and inflation rate on the GDP growth in India

scholarly journals The Impact of Government Size on Inflation in selected Developing Countries (2006-2014)

2018 ◽  
pp. 71-90
Keyword(s):  
Growth Rate ◽  
Developing Countries ◽  
Panel Data ◽  
Interest Rate ◽  
Inflation Rate ◽  
Government Size ◽  
Gdp Growth ◽  
Money Growth ◽  
Gdp Growth Rate ◽  
The Impact

One of the serious challenges facing developing countries that are facing is the issue of inflation. Inflation creates serious challenges for economic agents as a result of the greatly damaging effects of economic and economic growth. Despite the general understanding of the concept of inflation, there is still no agreement between economists on the causes of its creation. The present study examines the impact of government size on inflation in 16 selected developing countries (Afghanistan, India, Iran, Malaysia, Mexico, Argentina, Qatar, Singapore, Kuwait, Pakistan, Uruguay, Benon, Nepal, Mali, Vietnam and Bhutan) will be tested during the period from 2006 to 2014. The pattern examined for this purpose, using the combination (panel) data in the least squared method completely, for the investigated pattern for this purpose, using generalized least squares panel data, toinvestigate the effect of each of the variables of government size, the index of import value, interest rate, Money and quasi money growth rate and GDP growth rate used on the Inflation rate. The results of this research indicate that the Money and quasi money growth rate, interest rate and growth rate of the import value index had a positive and significant effect on the inflation rate, and the GDP growth rate had a negative and significant effect on the inflation rate. Also, the main independent variable of government size model has had a negative and significant impact on inflation in the studied countries.

scholarly journals Interaction of GDP Growth Rate and FDI in Service Sector - Case of Croatia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Mario Pečarić ◽  
Tino Kusanović ◽  
Antoni Šitum
Keyword(s):  
Growth Rate ◽  
Critical Analysis ◽  
Service Sector ◽  
Mutual Influence ◽  
Recipient Country ◽  
Var Model ◽  
Gdp Growth ◽  
Fdi Inflows ◽  
Gdp Growth Rate ◽  
The Impact

Croatia is characterised by a foreign direct investment (FDI) inflow, mainly in the service sector, which is partly understandable owing to the country's orientation towards tourism. On the other hand, theoretical and empirical research indicates a weak impact of FDI in the service sector on the economic growth of the recipient country. Following the theoretical framework and critical analysis of previous research, the paper, on the example of Croatia in the period q1/2000 - q3/2020, uses the VAR model to analyse the mutual influence of GDP growth rate and FDI in the service sector. The results show that the impact of the GDP growth rate on the FDI inflow into the service sector is more significant and longer lasting than vice versa. The paper emphasises the importance of the adopted growth model for the type of FDI inflows into the recipient country, which in this case is characterised by the appreciation of the real exchange rate as an indicator of the country's competitiveness, whose impact on FDI inflow into the service sector is positive and long lasting.

scholarly journals Investigating the Impact of External Debt on Economic Growth: A Case Study of Pakistan

2021 ◽  
Vol 4 (2) ◽  
pp. 41-51
Author(s):  
IRUM SAJJAD ◽  
IRUM SAJJAD ◽  
DR. MUHAMMAD AZAM KHAN
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
External Debt ◽  
Gdp Growth ◽  
Policy Makers ◽  
Explanatory Variables ◽  
Gdp Growth Rate ◽  
Augmented Dickey Fuller ◽  
The Impact ◽  
Adf Test

This article is an attempt to evaluate the effect of external debt on economic growth for during the period of 1980–2016. The Augmented Dickey Fuller (ADF) test is used for determining stationarity, whereas the ADF test results exhibit that the variables used found are . The empirical results indicate that external debt and total debt service have deleterious and statistically significant impacts on GDP growth rate. The other explanatory variables namely human capital by life expectancy, exports, and Foreign Direct Investment (FDI)reveals significantly positive significant influence on GDP growth rate. Appropriate policy should be adopted by the policy makers to reduce external debt, increase volume of exports and enhance more foreign investment, it will boost economic growth in the country.

scholarly journals The Impact of Macroeconomic Conditions on the Instability and Long-Run Inequality of Workers’ Earnings in Canada

2005 ◽  
Vol 60 (2) ◽  
pp. 244-272 ◽  
Author(s):  
Charles M. Beach ◽  
Ross Finnie ◽  
David Gray
Keyword(s):  
Growth Rate ◽  
Unemployment Rate ◽  
Earnings Inequality ◽  
Gdp Growth ◽  
Macroeconomic Conditions ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Earnings Instability ◽  
Rate Effects ◽  
The Impact

This paper examines the variability of workers’ earnings in Canada over the period 1982‑1997. Using a large panel of tax file data, we decompose total variation in earnings across workers and time into a long-run inequality component between workers and an average earnings instability component over time for workers. We find an increase in earnings variability between 1982‑89 and 1990‑97 that is largely confined to men and largely driven by widening long-run earnings inequality. Second, the pattern of unemployment rate and GDP growth rate effects on these variance components is not consistent with conventional explanations and is suggestive of an alternative paradigm of how economic growth over this period widens long-run earnings inequality. Third, when unemployment rate and GDP growth rate effects are considered jointly, macroeconomic improvement is found to reduce the overall variability of earnings as the reduction in earnings instability outweighs the widening of long-run earnings inequality.

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