scholarly journals Economic and environmental convergence of transformation economy: the case of China

2019 ◽  
Vol 17 (3) ◽  
pp. 233-241 ◽  
Author(s):  
Li Rui ◽  
Lina Sineviciene ◽  
Leonid Melnyk ◽  
Oleksandr Kubatko ◽  
Oleksandra Karintseva ◽  
...  
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Convergence Rates ◽  
Environmental Parameters ◽  
Policy Recommendations ◽  
Economic Growth Rate ◽  
Endogenous Growth Model ◽  
Per Capita ◽  
Regional Transformation ◽  
Log Linear

Rapid economic reforms and proper GDP growth in China has affected the regional development of Chinese provinces. This study aims to estimate the degree of economic and environmental disparities within Chinese provinces for developing policy recommendations of regional transformation. The reduced log-linear specification of endogenous growth model is used for the estimation of convergence rates within Chinese provinces. The empirical results prove that an increase of 1% in GDP per capita basic year reduces the economic growth rate by 0.1% in the reference year. Thus, the ratio of the average per capita income in the wealthiest group to poorest provinces accounted for the factor 9.6 in 1995 and factor 4.1 in the year 2015, which means a reduction of disproportionate development. Environmental convergence trends were also found and less polluted provinces eventually increase emissions at higher rates than the initially polluted ones. With the pass of time, all provinces do move to the same steady state in environmental parameters. The speed of the economic and environmental convergence in China provinces is rather slow, and the economic growth was achieved by great sacrifices of an environment, since all provinces are striving to the same steady state in terms of pollution increase. The industrialized regions due to the presence of significant financial resources should pay more attention to the protection of the environment using all the available economic potential. At the same time, both initially poor provinces and rich have to develop more profoundly agriculture, tourism, recreation, and other environmentally friendly industries to improve economic performance.

scholarly journals The Evolution of Economic Activity in the Rural Area of Region 2 South - East

2021 ◽  
Vol 95 ◽  
pp. 01007
Author(s):  
Daniela – Lavinia Balasan ◽  
Dragoş Horia Buhociu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Economic Activity ◽  
Labour Force ◽  
Standard Of Living ◽  
Economic Growth Rate ◽  
Current State ◽  
Per Capita ◽  
The Impact

When we talk about economic development, we can refer to improve the standard of living and the prosperity of the population. This is due by increasing per capita income. In order to analyze economic activity, severe indicators must be studied, namely productivity, economic growth rate, labour force share, gross domestic product. In order to carry out as accurate an analysis as possible, it is required to discover the bottlenecks and problems that Region 2 South East makes and to develop a set of reservations and indications leading to the reduction and, why not, the removal of negative aspects. The main purpose of this work is to achieve a strategic plan by studying the current state and the impact of the economic system in recent times in all its forms, with a view to the development of the countryside of Region 2 South – East. I set out to create a website based on the advice of small rural entrepreneurs that evolves gathering information in realistically identifying all the strengths and concentrating them in the region’s potential innovation.

The Impact of Defense Investment on Economic Growth in the Perspective of Time Series

2014 ◽  
Vol 5 (4) ◽  
pp. 44-58
Author(s):  
Bin Pan ◽  
Shih-Yung Wei ◽  
Xuanhua Xu ◽  
Wei-Chiang Hong
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Private Investment ◽  
Investment Risk ◽  
Demand And Supply ◽  
Economic Growth Rate ◽  
Proposed Model ◽  
Endogenous Growth Model ◽  
The Impact ◽  
The Relationship

By considering the demand and supply effects of defense investment and the uncertainty of the stochastic process of the production and defense investment, this study proposes a stochastic endogenous growth model to explore the impact of defense investment on economic growth. The results suggest that the relationship between defense investment and economic growth rate is nonlinear and obtains the optimal percentage of defense investment to maximize economic growth. Moreover, the impact of defense investment volatility on economic growth rate is subject to production and defense investment interference term's covariance and representative private investment risk preference. Finally, the empirical data are used to illustrate the applicability of the proposed model.

THE MACROECONOMIC EFFECTS OF ENHANCED REFORMS IN CHINA

2019 ◽  
Vol 65 (06) ◽  
pp. 1619-1644
Author(s):  
ZHIHONG JIAN ◽  
YEQING YANG
Keyword(s):  
Economic Growth ◽  
Adverse Effect ◽  
Growth Rate ◽  
Steady State ◽  
Average Intensity ◽  
Potential Growth ◽  
Economic Growth Rate ◽  
Short Run ◽  
Macroeconomic Effects

Motivated by the idea that substantive reforms in China always happen intermittently and randomly, this paper constructs an RBC model, augmented with a shock that reflects the role of reforms and its randomly occurring character, to investigate the macroeconomic effects of enhancing the reform intensity. An increase in the average intensity of reforms leads to a higher economic growth rate permanently and provides sustainable support for economy when the potential growth rate declines. But it decreases the ergodic steady state of the detrended output, and this could have an adverse effect on economic growth in the short run.

FACTOR SUBSTITUTION AND ECONOMIC GROWTH: A UNIFIED APPROACH

2012 ◽  
Vol 16 (4) ◽  
pp. 625-656 ◽  
Author(s):  
Jianpo Xue ◽  
Chong K. Yip
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Growth Models ◽  
Elasticity Of Substitution ◽  
Unified Approach ◽  
Factor Income ◽  
Factor Substitution ◽  
State Income ◽  
Per Capita ◽  
Relative Scarcity

This paper provides a unified approach to characterizing the relation between factor substitution and economic growth in different one-sector growth models (namely, the Solow, Ramsey, and Diamond models). Our main finding is that if better factor substitution raises savings in the steady state, then a higher per capita income results. There are two channels by which factor substitution affects savings: the positive efficiency effect via income and the ambiguous distribution effect via factor income shares. If the efficiency effect dominates, then a higher elasticity of substitution leads to a higher level of per capita steady-state income. In transition, factor substitution affects the rate of convergence both directly and through the equilibrium profit share. The former arises from diminishing marginal productivity of capital whereas the latter reflects its relative scarcity. Depending on the interaction of these effects, the net outcomes are characterized.

scholarly journals Does the “Belt and Road Initiative” Promote the Economic Growth of Participating Countries?

2019 ◽  
Vol 11 (19) ◽  
pp. 5240 ◽  
Author(s):  
Sun ◽  
Zhang ◽  
Xu ◽  
Yang ◽  
Wang
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Statistical Data ◽  
Policy Recommendations ◽  
The World Bank ◽  
The World ◽  
Belt And Road ◽  
Per Capita ◽  
Global Economic Growth ◽  
The Belt And Road

With the slowdown of global economic growth, how to stimulate economic growth has become a hot topic in recent years. The “Belt and Road (B&R) Initiative,” as a newly proposed global economic stimulus plan, has attracted widespread attention from scholars. In this study, the research used the propensity score matching difference in difference (PSM-DID) method to evaluate whether the “B&R” Initiative has promoted the economic growth of the countries along the route. Objectively assessing the effect of its implementation is not only important for its completion and improvement in the future but also to verify whether the “B&R” Initiative promotes economic growth in participating countries. A logistic regression is constructed using the statistical data obtained by the World Bank on 110 countries from 2011 to 2016. The results show that the “B&R” Initiative has effectively promoted the rapid growth of the GDP of participating countries but the improvement of per capita GDP growth is not significant. Through the analysis of the selected variables, corresponding policy recommendations are proposed. Moreover, objective proofs are provided to encourage all the countries in the world to participate in the “B&R” Initiative.

A NOTE ON SKILL-STRUCTURE SHOCKS, THE SHARE OF THE HIGH-TECH SECTOR, AND ECONOMIC GROWTH DYNAMICS

2016 ◽  
Vol 20 (7) ◽  
pp. 1906-1923 ◽  
Author(s):  
Pedro Mazeda Gil ◽  
Oscar Afonso ◽  
Paulo B. Vasconcelos
Keyword(s):  
Economic Growth ◽  
Technical Change ◽  
Growth Dynamics ◽  
High Tech ◽  
Economic Growth Rate ◽  
High Tech Sector ◽  
Directed Technical Change ◽  
Endogenous Growth Model ◽  
Positive Shock ◽  
Knowledge Bias

By means of an endogenous growth model of directed technical change with vertical and horizontal R&D, we study a transitional-dynamics mechanism that is consistent with the changes in the shares of the high- versus the low-tech sectors found in recent European data. Under the hypothesis of a positive shock in the proportion of high-skilled labor, the technological-knowledge bias channel leads to unbalanced sectoral growth with a noticeable shift of resources across sectors. A calibration exercise suggests that the model is able to account for up to from 50 to about 100 percent of the increase in the share of the high-tech sector observed in the data from 1995 to 2007. However, the model predicts that the dynamics of the share of the high-tech sector has no significant impact on the dynamics of the economic growth rate.

MINIMUM CONSUMPTION REQUIREMENTS: THEORETICAL AND QUANTITATIVE IMPLICATIONS FOR GROWTH AND DISTRIBUTION

1999 ◽  
Vol 3 (4) ◽  
pp. 482-505 ◽  
Author(s):  
Satyajit Chatterjee ◽  
B. Ravikumar
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Steady State ◽  
Wealth Distribution ◽  
Household Wealth ◽  
Elasticity Of Substitution ◽  
Positive Dependence ◽  
Per Capita ◽  
State Growth ◽  
The Impact

We study the impact of a minimum consumption requirement on the rate of economic growth and the evolution of wealth distribution. The requirement introduces a positive dependence between the intertemporal elasticity of substitution and household wealth. This dependence implies a transition phase during which the growth rate of per-capita quantities rise toward their steady-state values and the distributions of wealth, consumption, and permanent income become more unequal. We calibrate the minimum consumption requirement to match estimates available for a sample of Indian villagers and find that these transitional effects are quantitatively significant and depend importantly on the economy's steady-state growth rate.

scholarly journals A growth model with qualities, varieties, and human capital: stability and transitional dynamics

2014 ◽  
Vol 18 (5) ◽  
Author(s):  
Tiago Neves Sequeira ◽  
Alexandra Ferreira-Lopes ◽  
Orlando Gomes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Steady State ◽  
Population Growth ◽  
Growth Model ◽  
Transitional Dynamics ◽  
Quality Ladders ◽  
Endogenous Growth Model ◽  
The Stability

AbstractThis article analyses the stability properties of the steady-state and the transitional dynamics of an endogenous growth model with human capital, increasing-varieties R&D, and quality-ladders R&D [Strulik, H. 2005. “The Role of Human Capital and Population Growth in R&D-Based Models of Economic Growth.”

scholarly journals Methods for Optimal Separation of Income in Consumable and Accumulated Parts

2020 ◽  
Vol 8 (6) ◽  
pp. 797-801 ◽  
Keyword(s):  
Economic Growth ◽  
Capita Consumption ◽  
New Production ◽  
Optimal Method ◽  
Economic Growth Rate ◽  
Optimal Separation ◽  
Integrable Functions ◽  
Per Capita ◽  
Production Capacities ◽  
Per Capita Consumption

The effectiveness of a particular type of business is determined by the terms of planning and management. The study is devoted to the urgent problem of finding the optimal method for dividing a product into consumed and accumulated parts. Various macro models of economic growth are considered. An optimality criterion is proposed in the form of utility per capita consumption. Growth rates of producers and economic characteristics are considered integrable functions arbitrarily time-dependent. At the same time, per capita consumption is optimized either in terms of utility or in its pure form. Income can be used either as consumer income to meet the needs of the population, or capital-forming to create new production capacities and compensate for old production capacities that are out of order. The results can be used to assess the economic growth rate of the national economy.

scholarly journals Endogenous growth effects of environmental policies

2015 ◽  
Vol 62 (5) ◽  
pp. 607-629
Author(s):  
Oscar Afonso ◽  
Ana Afonso
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Endogenous Growth ◽  
Environmental Policies ◽  
Technological Knowledge ◽  
Stable Steady State ◽  
Scale Invariant ◽  
Endogenous Growth Model ◽  
State Growth ◽  
The Impact

To analyse the impact of the environmental policies, we start by reviewing the literature on the environment, technological knowledge and economic growth. Then, we build a general equilibrium endogenous growth model where final goods are produced either in the skilled-labour intensive Clean sector or in the unskilled-labour intensive Unclean sector. By solving numerically transitional dynamics towards the unique and stable steady state, we observe that environmental policies encourage scale-invariant technological knowledge bias. This, in turn, promotes environmental quality, the skill premium and economic growth. Moreover, the impact of population growth on the steady-state growth rate is higher under strong households? environmental conscientiousness with future generations.

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