INFLATION TARGETING IN THE LONG RUN AS THE MOTIVATOR OF ECONOMIC DEVELOPMENT

2019 ◽  
Author(s):  
Artur Karapet Ayrumyan ◽  
Keyword(s):  
Economic Development ◽  
Inflation Targeting ◽  
Long Run

scholarly journals Fiscal and Monetary Policy of Economic Development

2021 ◽  
Vol 10 (1) ◽  
pp. 42
Author(s):  
Igor Chugunov ◽  
Mykola Pasichnyi ◽  
Valeriy Koroviy ◽  
Tetiana Kaneva ◽  
Andriy Nikitishin
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Inflation Targeting ◽  
Aggregate Demand ◽  
Functional Model ◽  
Policy Coordination ◽  
Policy Formation ◽  
Positive Effects ◽  
Long Run ◽  
Fiscal And Monetary Policy

Fiscal and monetary policy coordination should focus on increasing public welfare and maintaining long-term macroeconomic stability. This article aims to enhance the theoretical and methodological basis of fiscal and monetary policy formation and determine the priority areas for improving their coordination to ensure sustainable economic development. We developed an institutional approach to study the fiscal-monetary mix. It is advisable to create favorable monetary conditions for fiscal measures and form a balanced budget for monetary regulation. The authors proposed the structural-functional model that highlights both fiscal and monetary policies’ impact on aggregate demand. The results showed no positive effects of general government expenditures on the GDP per capita growth in 19 emerging economies from 1995 to 2018. The influence of public spending on economic growth depends on institutions’ quality, the composition of expenditures, and fiscal architecture. The expediency of increasing the share of productive expenditures that positively affect stimulating the economy is substantiated. In the long-run, monetary policy should ensure a comprehensive combination of inflation targeting conditions, the adaptive use of tools to achieve intermediate and final targets.

scholarly journals Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 18 (12) ◽  
pp. 6236
Author(s):  
Husam Rjoub ◽  
Chuka Uzoma Ifediora ◽  
Jamiu Adetola Odugbesan ◽  
Benneth Chiemelie Iloka ◽  
João Xavier Rita ◽  
...  
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Causal Effect ◽  
Sub Saharan Africa ◽  
Security Threats ◽  
African Countries ◽  
Significance Level ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

scholarly journals The role of diversity and tolerance in economic development

2021 ◽  
Author(s):  
Witold Kwasnicki
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Industrial Development ◽  
Evolutionary Process ◽  
Evolutionary Model ◽  
Industry Development ◽  
Radical Innovations ◽  
Long Run

AbstractThis paper presents an evolutionary model of industry development, and uses simulations to investigation the role of diversity and heterogeneity in firms’ behaviour, and hence industrial development. The simulations suggest that economic growth is increased with greater variety, in the sense of the evolutionary process approaching the equilibrium faster and also, in the long run, moving faster from one equilibrium to a new, more advanced, equilibrium. This occurs due to higher variety caused by a more tolerant environment, and due to the higher probability of emergence of radical innovations.

scholarly journals Tourism Industry and Economic Growth Nexus in Beijing, China

Economies ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 25 ◽  
Author(s):  
Yang Songling ◽  
Muhammad Ishtiaq ◽  
Bui Thi Thanh
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Strong Support ◽  
Growth Index ◽  
Strong Relationship ◽  
Tourism Industry ◽  
Var Model ◽  
Long Run ◽  
The Relationship ◽  
Beijing China

In the developing economy, tourism is the most visible and steadiest growing facade. Tourism is considered one of the rapidly increasing elements for economic development from the last two decades. Therefore, the proposed study used vector autoregression (VAR) model, error correction model (ECM), and the Granger causality to check the relationship between the tourism industry and economic growth based on the data of the Beijing municipal bureau of statistics from 1994 to 2015. Gross domestic product (GDP) is used as a replacement variable for the economic growth index, while internal tourism revenue is used as a tourism industry indicator. The study supports the tourism-led growth hypothesis proposed in the existing literature in a different survey of tourism and economic development. The results show that there is a strong relationship in the tourism industry and economic growth in the context of Beijing, and at the same time, tourism creates a more significant increase in long run local real economic accomplishments. The results of the VAR model confirm that in the long run, Beijing’s economic growth is affected by domestic tourism, while the ECM model shows unidirectional results in the short term. Similarly, there is a one-way causal relationship between the tourism industry and economic growth in Beijing, China. The empirical results are in strong support of the concept that tourism causes growth.

scholarly journals „Pénzügy és gazdasági fejlődés hosszú távon” Shin, Yongseok (2018): Finance and Economic Development on the Very Long Run: A Review Essay (Journal of Economic Literature, 56(4), 1557-1586.)1

2021 ◽  
Vol 16 (1) ◽  
pp. 185-190
Author(s):  
Domonkos Bajkán
Keyword(s):  
Economic Development ◽  
Review Essay ◽  
Economic Literature ◽  
Key Factors ◽  
Main Hypothesis ◽  
Financial History ◽  
Financial Regulations ◽  
Long Run

Yongseok Shin esszéjében Goetzmann Money Changes Everything: How Finance Made Civilizations Possible című könyvéről ír bemutatót, majd a könyv hipotézisét továbbgondolva vizsgálja, vajon az egyes pénzügyi találmányok hatást gyakorolnak-e a hosszú távú gazdasági fejlődésre. Shin Goetzmann művét további gazdaságtörténelmi elemzésekkel is összeveti. Arra a következtetésre jut, hogy a pénzügyek jelenléte fontos összetevő egy jól működő gazdaságban, azonban nem lehet az egyetlen fejlődést előidéző tényező. Shin a pénzügyi történelem további alapos tanulmányozását javasolja, és azt a jelenlegi pénzügyi szektor szabályozásainak kialakítása során is hasznosnak véli. Yongseok Shin reviews Goetzmann’s book, titled Money Changes Everything: How Finance Made Civilizations Possible. He reinterprets its main hypothesis, and analyses how the presence of financial tools affect economic development in the very long run. He also compares Goetzmann’s viewpoint to other economic historians’ results. He concludes that financial advancement is certainly one of the key factors leading to a prosperous economy, but cannot be the single one. Shin argues that financial history lessons might enable us to create more adequate financial regulations.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI INVESTASI DALAM NEGERI DI JAWA TENGAH TAHUN 1980-2002

2007 ◽  
Vol 8 (1) ◽  
pp. 62
Author(s):  
Eni Setyowati ◽  
Siti Fatimah NH
Keyword(s):  
Economic Development ◽  
Development Process ◽  
Research Model ◽  
Domestic Investment ◽  
Correction Model ◽  
Central Java ◽  
Long Run ◽  
Short Run ◽  
Research Benefit ◽  
One Year

Investment is one of important component for sustainable economic development process. The research objective that want achieved is to estimate influence of labour, inflation, PDRB, and interest rate to domestic investment (PMDN) in Central Java. The research benefit was to clarify factors that influenced domestic investment and gave insight and input for local government in formulating economy policy.One of method for analysing long-run and short run influence was by using dynamic model. In this research, model which applied was ENGLE GRANGER ERROR CORRECTION MODEL (EG-ECM) based on granger representation theoremResult of this research indicated that domestic investment one year ago was variable which influenced significantly in short run while rate of interest influenced in long run.

scholarly journals Economic Development

2019 ◽  
Author(s):  
Dhina Vadyza
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Urban Areas ◽  
Gini Index ◽  
Production Factor ◽  
Real Economy ◽  
Long Run ◽  
Per Capita ◽  
Capita Output

Economic growth is a process of increasing per capita output that occurs continuously in the long run. Economic growth is one indicator of the success of development. Increasingly increasing economic growth usually increases people's welfare. While economic development is an effort to increase per capita income by processing potential economic forces into the real economy through investment, increasing knowledge, increasing skills, using technology, adding management skills and organizing.Economic growth is also related to the increase in "per capita output". The theory must include theories about GDP growth and theories about population growth. Then the third aspect is economic growth in a long-term perspective, that is, if for a long period of time the per capita output shows an increasing tendency.The distribution of income distribution in Indonesia is increasingly uneven. This can be seen from the increasing Indonesian Gini Index. As is known, the Gini index measures the income distribution of a country. The size of the Gini index Between 0 (zero) to 1 (one), the Gini index Equal to 0 (zero) indicates the index that the income distribution is perfectly equal, while the Gini index is 1 (one ) shows that the income distribution is totally uneven. Based on the data, the Indonesian Gini index continues to increase from year to year.The state of income distribution in Indonesia since 1970 can be said not to improve, this is caused by many factors, including the First production factor market (input market) which is the increase in labor supply which results in excess labor, low labor wages and limited employment opportunities in urban areas resulting in unemployment and urban slums.Second, land ownership. Land distribution is the main determinant of the extent of poverty and income distribution.

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