scholarly journals Public Support of Private R&D–Effects on Economic Sustainability

2018 ◽  
Vol 10 (12) ◽  
pp. 4612 ◽  
Author(s):  
Jan Cadil ◽  
Karel Mirosnik ◽  
Ludmila Petkovova ◽  
Michal Mirvald
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Public Support ◽  
Value Added ◽  
Developed Countries ◽  
Innovation Activity ◽  
Substantial Part ◽  
Economic Sustainability ◽  
Sustainable Economic Growth ◽  
Positive Effect

A substantial part of contemporary R&D policy in developed countries is focused on the support of R&D in the private sector. Such intervention is theoretically justified by a higher propensity to innovation and consequently to higher competitiveness, which promotes sustainable economic growth. Most of the empirical research done so far focuses mainly on the leverage effect, the effect on innovation activity or on estimating the crowding out effect of public support. Although the outcomes of this research are quite contradictory, only a few studies focus on the effect of public support of private R&D on the private bodies’ performance indicators, which are naturally connected with a company’s economic sustainability. In this article we use counterfactual design and show that the R&D policy of supporting the private sector leads to higher innovation activity, but it does not lead to higher value added and productivity for supported subjects, at least in the short run. Such a finding suggests a possible flaw in R&D policy implementation—it is questionable if higher innovation activity is truly effective if it is not followed by a positive effect on production (value added) and productivity, and if it does not have a positive effect on competitiveness or lead to sustainable economic growth.

PENGARUH INFRASTRUKTUR SECARA SPASIAL TERHADAP KONVERGENSI PERTUMBUHAN EKONOMI DI INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 1 ◽  
pp. 17-28
Author(s):  
Anisa Fahmi
Keyword(s):  
Economic Growth ◽  
Regional Economics ◽  
Developed Countries ◽  
Road Infrastructure ◽  
Long Run ◽  
Catch Up ◽  
The Developed Countries ◽  
Positive Effect ◽  
Neoclassical Growth Theory

Motivated by inter-regional disparities condition that occurs persistently, this study examines the Indonesian economy in the long run in order to know whether it tends to converge or diverge. This convergence is based on the Solow Neoclassical growth theory assuming the existence of diminishing returns to capital so that when the developed countries reach steady state conditions, developing countries will continuously grow up to 'catch-up' with developed countries. Based on regional economics perspective, each region can not be treated as a stand-alone unit,therefore, this study also focuses on the influence of spatial dependency and infrastructure. Economical and political situations of a region will influence policy in that region which will also have an impact to the neighboring regions. The estimation results of spatial cross-regressive model using fixed effect method consistently confirmed that the Indonesian economy in the long term will likely converge with a speed of 8.08 percent per year. Other findings are road infrastructure has a positive effect on economic growth and investment and road infrastructure are spatially showed a positive effect on economic growth. In other words, the investment and infrastructure of a region does not only affect the economic growth of that region but also to the economy of the contiguous regions. 

scholarly journals Investigating the effects of environmental patents and climate change mitigation technologies on sustainable economic growth in the Middle East

2021 ◽  
Author(s):  
Sadegh Abedi ◽  
Mehrnaz Moeenian
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Middle East ◽  
Climate Change Mitigation ◽  
Developed Countries ◽  
Factors Affecting ◽  
Middle East Countries ◽  
Sustainable Economic Growth ◽  
Change Mitigation

Abstract Sustainable economic growth and identifying factors affecting it are among the important issues which have always received attention from researchers of different countries. Accordingly, one of the factors affecting economic growth, which has received attention from researchers in the developed countries over recent years, is the issue of environmental technologies that enter the economic cycle of other countries after being patented through technology transfer. The current research investigated the role of the environment-related patents and the effects of the patented technological innovations compatible with climate change mitigation on the economic growth and development in the Middle East countries within a specific time period. The required data were gathered from the valid global databases, including Organization for Economic Co-operation and Development and World Bank and have been analyzed using multi-linear regression methods and econometric models with Eviews 10 software. The obtained results with 95% confidence level show that the environmental patents (β = 0.02) and environment management (β = 0.04) and technologies related to the climate change mitigation (β = 0.02) have a significant positive impact on the sustainable economic development and growth rate in the studied countries. Such a study helps innovators and policymakers in policy decisions related to sustainable development programs from the perspective of environmentally friendly technologies by demonstrating the role of patents in three important environmental areas, namely environmental management, water-related adaptation and climate change mitigation, as one of the factors influencing sustainable economic growth.

scholarly journals CONCEPTUAL MODEL OF INNOVATIVE ECONOMIC DEVELOPMENT

2021 ◽  
pp. 7-12
Author(s):  
Elena Kovalenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Conceptual Model ◽  
Innovation Policy ◽  
Current System ◽  
Innovation Activity ◽  
Innovative Development ◽  
Current Crisis ◽  
Innovative Economy ◽  
Sustainable Economic Growth

The article emphasizes that Ukrainian government must choose the way of widespread innovation and building a competitive state. Increasing the competitiveness of Ukraine is possible only providing the establishing of innovative development mechanisms and technological improvement of the national economy. The main obstacles of Ukraine's transition to an innovative model of development have been identified. Innovation processes in the economy have not gained significant scale, the number of enterprises implementing innovations is decreasing every year and today is 12-14 %, which is 3-4 times less than in innovative economies countries. It is concluded that the intensive development of innovation in modern conditions provides a basis for sustainable economic growth, which provides an opportunity to argue about the innovative type of economic development in contrast to the stagnant, evolutionary, extensive. The course for innovative development in Ukraine determines the transition of the economy to a new qualitative state. It is proved that in the current crisis situation in Ukraine, there is a problem to develop a model of sustainable economic growth, the solution of which will be the basis for a qualitatively new type of economic development. The qualitative characteristic of innovative economy and principles of its full-fledged effective functioning are resulted. The current system and level of financing of innovation activity in Ukraine, which requires both qualitative and quantitative changes, introduction of state and non-state financial methods aimed at intensification of innovation activity are analyzed. The necessity of transition to the innovative economy has been substantiated, which will give an opportunity not only to bring Ukraine's economy out of crisis, but also to accelerate economic growth, which will ensure further stable socio-economic development of society. A conceptual model of innovative economic development is proposed. The role of State innovation policy in Ukraine is defined, which would ensure the creation of socio-economic, organizational and legal conditions for the effective reproduction, development and use of the scientific and technical potential of the country.

scholarly journals Foreign direct investment as a stimulant in productivity convergence process between Visegrad Countries and UE-15

2017 ◽  
Vol 6 (326) ◽  
Author(s):  
Liwiusz Wojciechowski
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Value Added ◽  
Developed Countries ◽  
Real Convergence ◽  
Convergence Process ◽  
Savings Rate ◽  
Visegrád Countries

The explanation of reasons and degree of differentiation of wealth between countries remains an important issue in economics today. Theories of economic growth are focused principally on the identification of the long-term determinants of diversification of sources and economic growth, which in turn is associated with the notion of real convergence. Given the supply role of foreign capital that impacts on the economy, in the face of dynamic inflow of foreign direct investment (FDI) into developing countries’ economies, it seems reasonable to include it in convergence process modelling, especially in the modelling of the convergence of productivity. The productivity of the economy is in fact determined by the size of the capital accumulation (both domestic and foreign), savings rate and a number of other conditions. The author hypothesized that the presence of FDI contributes to the acceleration of pace of real convergence between Visegrad countries and EU-15. In this study we estimate interactions between FDI and productivity at both national and NACE level in the years 2000–2014. We concider, in panel data form, among others, productivity in terms of gross value added per employee, degree of penetration of FDI in the economy of the host country. Results suggest conditional β-convergence of productivity existence however they vary across countries, sectors and time. The analysis provides recommendations regarding the arguments for the sectoral policy aimed at encouraging foreign capital to increase its involvement, focusing on reducing productivity gap between the developing and developed countries belonging to European Union.

scholarly journals PRIVATE DEBT AND ECONOMIC GROWTH: TRENDS AND CHARACTERISTICS FOR UKRAINE

2021 ◽  
Vol 5 (1) ◽  
pp. 112-120
Author(s):  
L. Shkvarchuk ◽  
◽  
R. Slav`yuk ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Economic Activity ◽  
Direct Method ◽  
Developed Countries ◽  
Gdp Growth ◽  
Economic Downturn ◽  
Private Debt ◽  
Previous Period ◽  
Debt Market

Purpose. The purpose of the article is to determine the effects on economic activity of a pure temporary change in private debt and the relationship between the debt multiplier and the level of economic growth in Ukraine. Design/methodology/approach. In the article, the authors used the function of exponential growth for determining the GDP sensibility to the debt movements. There are also using the Granger approach for determining the direction of the relation between private debt and GPD. Rather than testing whether private debt causes GDP, the Granger causality has tested whether private debt forecasts GDP. The authors provided the calculation in the direct and indirect methods. The model of the direct method was based on the assumption that the GDP growth in the current period depends on the dynamics of GDP and increase of private debt in the previous period. The model of indirect correlation was based on the assumption that the increase of the amounts of private debt depends on the former dynamics of GDP and the amount of private debt accumulated in the previous period. Findings. The hypothesis that the GDP sensibility to the private debt movements is individual for every economy is proven. The households’ debt to GDP ratio and non-financial firms’ debt to GDP ratio for the conditions of economy of Ukraine is one of the lowest in Europe, which proves the low attractiveness of debt financing of the private sector growth. The authors show that elevated private debt sentiment in year t+3 is associated with a rising in economic activity in year t. Such conclusion is fair as for the sensitivity to the households’ debt movements and so to the firms’ debt movements. The increase in private debt causes the insufficient influence on the GDP increasing, so we cannot consider the debt market growth as a stimulator of the economy growth in Ukraine. The authors showed the existence of a relation between the GDP growth and increase of private debt only in indirect model. Private sector debt cycle more correlated with the business cycles: in the case of GDP growth the private debt rises also. But, the strength of influence of the GDP growth on the private debt growth is temperate: while the increase in the GDP by 1 % in the medium predicts 0.055 % subsequent private debt growth. Practical implications. The debt-growth nexus has received renewed interest among academics and policy makers. The results of this research are of interest to the government in its way of economic reform and generating effective tools to overcome the economic downturn. Also, the findings can help the financial market regulators to realize the effective monetary policy. Originality/value. This study represents a new evidence of relations between private debt and the real economy. In contrast to existing research the authors argued the reality of indirect impact of economical cycles to the private debt dynamic. But, the strength of influence of the GDP growth on the private debt growth is temperate. So it’s wrong to consider the debt market development as a stimulator of the economic growth in Ukraine. In contrast to the developed countries in Ukraine the main part of private debt belongs to firms.

Evaluation of export diversification on sustainable growth in Kazakhstan

2021 ◽  
pp. 49-63
Author(s):  
Olzhas Shaizandaevich Adilkhanov ◽  
Orazaly Sabden
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
International Organizations ◽  
State Level ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Export Diversification ◽  
The Past ◽  
Export Policies ◽  
Sustainable Economic Growth

Over the last ten years developing countries have achieved very fast economic growth comparing to the former developed countries and gained the opportunity to vastly widen their export basket. Kazakhstan over the past years is trying to diversify its export as well by becoming a member of international organizations and supporting its exporters by implementing different programs on a state level. Thus, the need for the deep research of Kazakhstan's export opportunity has appeared. The main purpose of the article is to determine the effect of export's diversification on sustainable economic growth and evaluate the potential of the processing field on the example of regions of Kazakhstan. The research has given important results, that is, in 4 regions of Kazakhstan are great opportunities to increase the export of metallurgy, engineering and chemical industry. The results of the study will be useful tool in applying export policies of the regions.

scholarly journals The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries

2019 ◽  
Vol 11 (21) ◽  
pp. 5895 ◽  
Author(s):  
Yu ◽  
Liu ◽  
Chen ◽  
Eti ◽  
Dinçer ◽  
...  
Keyword(s):  
Economic Growth ◽  
Industrial Development ◽  
Electricity Production ◽  
Annual Data ◽  
Var Analysis ◽  
Brics Countries ◽  
Vector Auto Regression ◽  
Sustainable Economic Growth ◽  
Auto Regression ◽  
Positive Effect

This study aims to evaluate the effect of electricity production on industrial development and sustainable economic growth. In this context, Brazil, Russia, India, China, and South Africa (BRICS), countries which have the highest increase in electricity production in the period of 2000–2018, are included in the scope of this study. Annual data of these variables in the period of 1991–2018 are used and three different models are created by using Vector Auto Regression (VAR) methodology. The findings state that electricity production in BRICS countries has a positive effect on both industrial production and sustainable economic growth. Hence, electricity production needs to be increased for them. For this purpose, it is important to encourage investors with tax advantages, location orientation and financing. Moreover, BRICS countries should give importance to renewable energy investments in order to increase electricity production. These issues have a contributing effect to sustainable economic growth.

scholarly journals Sales range and innovative activity in the manufacturing system of Poland

Equilibrium ◽  
2018 ◽  
Vol 13 (4) ◽  
pp. 725-740 ◽  
Author(s):  
Arkadiusz Świadek
Keyword(s):  
Manufacturing System ◽  
Innovation Policy ◽  
Value Added ◽  
International Market ◽  
Developed Countries ◽  
Innovative Activity ◽  
Spatial Distance ◽  
Innovation Activity ◽  
Main Hypothesis ◽  
The Government

Research background: In the literature, there is a discussion on the importance of the spatial distance from the user in the context innovation activity. However, most of this kind of studies concentrate on exporting enterprises and compare them to domestic ones. Exporting activity is very important for catching-up countries, because of technology transfer in its background. Purpose of the article: The aim of this paper is to determine whether the innovative activity in Poland’s manufacturing system is a consequence of close interactions (local and regional), or perhaps conditioned by the imperative of functioning on the national and international market. The main hypothesis was that on the current development level of Poland, the relationship between the range of sales and innovation activities are different from those in the more developed countries. Methods: Empirical studies was created in 2006–2012 as a result of the systematic collection of questionnaires filled by manufacturing enterprises in Poland from all regions (5209 correct fulfilled questionnaires). Methodical analysis was based on the theory of probability — probit modeling, because dependent variables were binary (0 or 1). Findings & Value added: Local and regional space is not stimulating innovation activity in opposite to national one. High intensity observed only when the company has been working on the international market. It means that the industry maturity level in Poland is good enough for creating a domestic innovation environment. This kind of an aggregation level should be stimulated by the government innovation policy.

scholarly journals Effect of Deepening Finacial Sector on Income Gap in Six Asia Countries 2012-2016

2020 ◽  
Author(s):  
Lizzy Dominica ◽  
Zeisha Shabrina ◽  
Hanna Octavianie ◽  
Sindy Septiani
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Private Sector ◽  
Financial Sector ◽  
Middle Income ◽  
Market Capitalization ◽  
Income Gap ◽  
Middle Income Countries ◽  
Negative Effect ◽  
Positive Effect

The financial sector has an important role in increasing a country’s economic growth, but the income gap is one of the main problems in economic growth in various countries. The financial sector has a strong influence on economic development, poverty alleviation and economic stability. This study aims to determine the effect of financial sector deepening on income inequality by using panel data from six countries, namely Malaysia, Indonesia, Philippines, Singapore, China and Korea which are divided into two groups, namely lower middle income countries, namely Indonesia and the Philippines and upper middle / high income, namely Malaysia, Singapore, China and Korea in 2012-2016. By using the Panel Least Squares analysis technique, this study found results that were upper middle / high income; bank assets, money supply, stock traded have a positive effect; lending to the private sector; domestic money bank assets, private sector debt securities and stock market capitalization have a negative effect. Whereas in lower middle income countries; bank assets, money suply, stock market capitalization have a negative effect; stock traded has a positive effect; however, lending to the private sector, domestic money bank assets, government debt and private sector debt does not affect the income gap.   Keywords: Financial Deepening, Income Gap, Asia

scholarly journals Does Smart City Development Promote Urbanization in India?

2021 ◽  
Author(s):  
Sabyasachi Tripathi
Keyword(s):  
Smart City ◽  
Urban Population ◽  
Smart Cities ◽  
Developed Countries ◽  
The Other ◽  
City Development ◽  
The World ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Positive Effect

The recent explosion of urbanization is mainly driven by the developing countries in the world. Therefore, urban planners in less developed countries face huge pressure to create planned urbanization which includes the higher provision of infrastructure and basic public services. The part of this planned urbanization ‘smart city’ development is one of the important initiatives taken by many countries and India is one of them. In terms of the size of the urban population through India ranked the second position in the world but in terms of the percentage of the urban population, it ranks very low. Therefore, to promote the urbanization Government of India (GoI) has taken ‘Smart Cities Mission’ initiatives for 100 cities in 2015. In this context, the present chapter quantitatively assesses the impact of smart city development on the urbanization in India. Urbanization is measured by the size, density, and growth rate of the population of the smart cities. On the other hand, we use factor analysis to create infrastructure index by considering city level total road length, number of latrines, water supply capacities, number of electricity connections, hospitals, schools, colleges, universities, banks, and credit societies. OLS regression analysis suggests that infrastructure has a strong positive effect on urbanization. Therefore, the smart city mission is very much essential for the promotion of urbanization in India. Finally, we suggest that we need to have more smart cities in the future so that a higher rate of urbanization promotes higher and sustainable economic growth.

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