scholarly journals Islamic Financing Portfolio and its Comparative Growth Potential

2020 ◽  
Vol 7 ◽  
Author(s):  
Noman Arshed ◽  
Sadia Yasmin ◽  
Muhammad Gulzar
Keyword(s):  
Economic Growth ◽  
Capital Structure ◽  
Risk Sharing ◽  
Strong Association ◽  
Physical Capital ◽  
Growth Potential ◽  
Growth Effect ◽  
Solow Model ◽  
Country Level ◽  
The Cost

Background – Growth has a strong association with financial sector development. As both micro and macro projects significantly count institutionalized financing contented to the access of finance and help to reduce the cost. Islamic finance development incorporates several benefits such as the transformation of the economy towards the Shari’ah compliancy, higher degree of risk-sharing, and integration of returns with the risk/performance associated with the investment venture thus ultimately leading to social prosperity. Objectives - This study envisages the exploration of the contribution of different type of Islamic banking financing which Islamic Banks are utilizing in their capital structure, on the economic growth. This assessment may help in empirically identifying the financing which has been fruitful to promote growth. This is because each of these Islamic financing products has their essence in the path of growth. Design/methodology/approach - Gross Domestic Product (GDP) is taken as the dependent variable. And the Solow model based controlling variables includes Labor Resource (L), and Physical Capital (K) while the base variable are the financing modes. The quarterly data is collected for 9 countries which are available between 2014Q1 and 2017Q4. Findings – The results indicate that other than Istisna financing, all other financings have a positive effect on economic growth, whereas Salam financing has highest growth potency. Originality/value – Previous studies lack in providing a country-level comparison of growth effect of country-level Islamic capital structure. While, considering financing as an input of economic growth within a panel data setup. This study is finding growth based weights on the popular Islamic financing options, which policymakers can use to find a particular financing which needs promoting in order to boost economic growth.

Infrastructure and Economic Transformation in Ethiopia

2019 ◽  
pp. 190-212
Author(s):  
Seid Nuru
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Poverty Reduction ◽  
Physical Capital ◽  
Well Being ◽  
Economic Transformation ◽  
Infrastructure Development ◽  
Rail Network ◽  
Development Agenda ◽  
The Cost

Investment in infrastructure has a central role in the development agenda and is critical for supporting economic growth and poverty reduction. Infrastructure affects growth through two channels: directly through physical capital accumulation and indirectly through improvement in productivity. Investment in infrastructure enhances private sector activities by lowering the cost of production and opening new markets. Infrastructure investment in power generation, water, sanitation, and housing improves the social well-being of citizens. This chapter examines the pace and scale of infrastructure development in Ethiopia in the post-1991 period. The unparalleled expansion of infrastructure since the EPRDF came to power in 1991 has had a significant influence on the trajectory of Ethiopia’s economic growth. Investment in infrastructure now accounts for more than 15 per cent of GDP annually. Heavy investments in power, roads, rail network, irrigation, aviation, and logistics have helped to unleash the country’s potential both economically and as a major manufacturing hub in Africa.

scholarly journals FORECASTING THE POTENTIAL OF THE ECONOMIC SYSTEM ON THE BASIS OF THE EXOGENIC GROWTH MODEL

2020 ◽  
Author(s):  
Sergiy Poznyak ◽  
◽  
Yurii Kolyada ◽  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Global Economy ◽  
Technological Progress ◽  
Growth Potential ◽  
Domestic Product ◽  
Solow Model ◽  
Economic Agents ◽  
The World ◽  
Macroeconomic Indicators

The paper considers models of economic growth and the possibility of modifying a suitable model to find the potential for economic growth for the economy of society. The world global economy is studied, presented in terms of societies of the world, in monetary terms and the growth potential of gross domestic product in relation to capital, labor, technological progress, population and other macroeconomic indicators that affect it. Theoretical and methodological significance lies in the description of a fundamentally new method of modeling, which can be used to assess the potential of economic development, proving the dynamics of the coefficients of elasticity of production factors, and proving the hypothesis of declining economic growth. The developed model effectively estimates the potential for economic growth for any country and can be used as a basis for forecasting indicators of potential capital intensity of production and potential gross domestic product. Regarding the practical significance of the obtained results, it should be noted that all changes and numerical values are supported by real data and are a consequence of economic, political or social phenomena in the economy of the country under consideration. In the further research it is possible to develop this model, adding to it new variables which influence economic growth, to update methodology of finding of coefficients as a result of actions of economic agents, instead of only their exogenous influence on economy. The work has three main sections. The first section contains theoretical aspects of estimating the evolutionary economy in the one-dimensional case, it describes the basic theoretical information about the Solow model and other neoclassical and endogenous models of economic growth. The second section describes the possibilities of the Solow model for estimating economic growth potential and theoretical aspects and derives the mathematical basis for estimating economic growth potential. Also in this section describes the implementation of the mathematical base. The third section comments on the results of modeling, based on which detailed conclusions are formed, which summarize the economic, mathematical, analytical and technical work. The simulation results well illustrate the degree of use of economic potential, as well as the impact of capital, technological progress, investment, natural population movement on the efficiency of the economy in terms of many countries. The developed software (as a product of the digital economy) can be used to further improve the model, taking into account more factors.

scholarly journals South Korea’s lift-off to development: The role of Human Capital and Productivity in economic growth, 1960-1979

2021 ◽  
Vol 10 (19) ◽  
pp. 25-43
Author(s):  
Francisco Quiero
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
South Korea ◽  
Growth Process ◽  
Physical Capital ◽  
Underdeveloped Country ◽  
Successful Outcome ◽  
Solow Model ◽  
Lift Off ◽  
The Impact

South Korea is a case of impressive economic growth: a previously underdeveloped country that, after the 1960s, embarked on a process to achieve development before other underdeveloped countries. South Korea is also a case where innovation processes move from imitation to self-creation thanks to a quick updating or “catching up” process. South Korea’s journey from underdevelopment to development has sparked a rich and well-founded debate within economic theory. These debates weigh the roles of productive factors (Physical, Human, Social, and Financial Capital, Labor, resources, environment), economic agents (State, Firms, Banks), and international trade factors (FDI, Imports, Exports) on its growth process. The central argument of this article establishes that Capital is the central variable that explains the successful outcome of the Korean growth miracle. However, Capital composition is even more important. The impact of Human Capital on the growth process evinces a synergy with Knowledge development. We modify the Solow model using Human, Physical Capital, and Total Factor Productivity as independent variables in a Multivariable Regression Model for the period between 1960 and 1979 on Output per worker. We conclude that Human Capital and Productivity are just as important as Physical Capital for explaining growth per worker in South Korea due their synergistic properties. The study is restricted to the years prior to Park Chung-Hee’s rise to power and ends with his assassination.

Solow economy model

2019 ◽  
pp. 150-157
Author(s):  
Oleksandr Synenko ◽  
Kateryna Yarema ◽  
Yuliia Bezsmertna
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Solow Model ◽  
Economy Model ◽  
Accelerated Depreciation ◽  
Basic Parameters ◽  
The Subject ◽  
Investment Process ◽  
The Impact ◽  
Model Algorithm

The subject of the research is the approach to the possibility of using the Solow model to perform the regression analysis on the example of the Ukrainian economy model. The purpose of writing this article is to investigate the notion of regres- sion analysis, Solow’s economy model, algorithm for performing regression analy- sis on the example of Ukraine’s economy model. This model can be adapted for the economy of enterprises. Methodology. The research methodology is system-struc- tural and comparative analyzes (to study the structure of GDP); monograph (when studying methods of regression analysis on the example of the Ukrainian economy); economic analysis (when assessing the impact of factors on Ukraine’s GDP). The scientific novelty consists the features of the use of the Solow model on the ex- ample of Ukrainian economy are determined. An algorithm for calculating the basic parameters of a model using the Excel application package is disclosed. The main recommendations on the development of the national economy and economic growth through the use of macroeconomic instruments are given. Conclusions. The use of the Solow model enables forecasting and analysis. The results obtained re- vealed the problem of low resource return of capital as a resource, along with the means of macroeconomic regulation of the investment process, using which can improve the situation. A special place in these funds belongs to the accelerated depreciation and interest rate policies.

Assessing social sustainability in the gig economy

2021 ◽  
Author(s):  
Muralidharan Loganathan
Keyword(s):  
Economic Growth ◽  
Social Protection ◽  
Social Sustainability ◽  
Decent Work ◽  
Sustainable Development Goal ◽  
Development Goal ◽  
Country Level ◽  
Gig Economy ◽  
The World ◽  
Sustainable Economic Growth

Sustainable Development Goal 8 to “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” necessitates country level measures across the world. We take forward a comparative analysis of India’s SDG 8 indicator list with both the UN and ILO measurements. We note inadequate measurements on social-protection and rights for non-standard forms of employment including gig work, that are intermediated by ICT platforms. From our analysis we identify some levers to broaden the current indicator measurements to include these non-standard workers as well, to improve social sustainability.

scholarly journals Rural Economic Development Based on Shift-Share Analysis in a Developing Country: A Case Study in Heilongjiang Province, China

2021 ◽  
Vol 13 (4) ◽  
pp. 1969
Author(s):  
Donghui Lv ◽  
Huiying Gao ◽  
Yu Zhang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Industrial Structure ◽  
National Level ◽  
Structural Evolution ◽  
Industry Structure ◽  
Growth Effect ◽  
Heilongjiang Province ◽  
Competitive Effect ◽  
Rural Economic Development

Identification of local priorities within each potential sector and implementation of a targeted development policy would definitely accelerate rural economic growth. In this sense, it is useful to examine each region’s industrial structural evolution compared to the whole economy and aggregate industries. Shift-share analysis has been confirmed as a useful method to measure regional economic differences and analyze the contribution of industrial structure. This paper selects five representative counties in Heilongjiang province and applies shift-share decomposition to analyze the change in rural economic development from 2000 to 2018. The change of economic growth in each selected county is decomposed into three components: national growth effect, industrial structure effect, and competitive effect, taking the national level as the reference. The results showed the following: (1) the trend of rural economic growth fluctuated greatly for nearly 20 years, distinguished by a mismatch of industrial structure with competitiveness for the selected counties; rural economies with an inappropriate industrial structure did not experience strong growth, despite high competitive potential. (2) The low-end agricultural structure and secondary industry structure led to the loss of each competitive effect; the tertiary industry structure based on economic structure servitization was rational, but the competitive effect did not work out. (3) Finally, this paper provided differentiated suggestions in accordance with local resources and priorities of the selected counties, so as to avoid excessive convergence and the lack of characteristics in industrial structure in rural transformation.

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