scholarly journals New Evidence for Romania Regarding Dynamic Causality between Military Expenditure and Sustainable Economic Growth

2020 ◽  
Vol 12 (12) ◽  
pp. 5053 ◽  
Author(s):  
Ran Tao ◽  
Oana Ramona Glonț ◽  
Zheng-Zheng Li ◽  
Oana Ramona Lobonț ◽  
Adina Alexandra Guzun
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Structural Changes ◽  
Private Investment ◽  
Military Spending ◽  
Military Expenditure ◽  
Crowding Out ◽  
Annual Growth Rate ◽  
Sustainable Economic Development ◽  
Sustainable Economic Growth

Military spending and sustainable economic development have been widely discussed in recent decades. Especially in Romania, the defense budget is valued at $4.8 billion, registering a compound annual growth rate (CAGR) of 23.57%. It is also expected to reach $7.6 billion in 2023, according to a report by Strategic Defense Intelligence. There is no consensus in current research and less attention is paid to Eastern European countries. Considering the significant increase in military spending in Romania in recent years, as well as the occurrence of political events, this paper focuses on the dynamic causal relationship between military spending and sustainable economic growth in Romania. The bootstrap rolling window causality test takes into account the structural changes, and therefore, provides more convincing results. The results indicate negative effects of military expenditure on sustainable economic growth between 1996–1999 and 2002–2004. It can be attributed to the crowding-out effect of public expenditure on private investment. The positive effect between the two variables analyzed is noticed with the accession of Romania to the North Atlantic Treaty Organization. Conversely, it is found that economic growth does not have a significant effect on military spending in Romania. Policymakers should guard against the crowding out of private consumption and investment due to excessive military spending and ensure to increase military expenditure on the premise of sustainable economic development.

A Systemic Approach towards Responsible and Sustainable Economic Development

2017 ◽  
pp. 208-227
Author(s):  
Thea Van der Westhuizen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Systems Theory ◽  
Systemic Approach ◽  
Economic Changes ◽  
Sustainable Economic Development ◽  
Collective Innovation ◽  
Sustainable Economic Growth ◽  
Innovation And Entrepreneurship

A possible way to increase responsible and sustainable economic development is to enhance collective innovation and entrepreneurship on various systemic levels in order to gain socio-economic developmental momentum. In an era which faces socio-economic changes on multiple systemic levels, especially within the mundosystem, collective and creative approaches towards systemic activities are necessary, not only to drive businesses forward, but to give momentum to global economies. In this chapter, the author philosophizes about entrepreneurship, systems theory and socio-economic momentum and how these play an important role to give momentum to responsible and sustainable economic growth.

scholarly journals Application of Multi-Criteria Decision-Making Model and GM (1,1) Theory for Evaluating Efficiency of FDI on Economic Growth: A Case Study in Developing Countries

2019 ◽  
Vol 11 (8) ◽  
pp. 2389 ◽  
Author(s):  
Wang ◽  
Le
Keyword(s):  
Economic Growth ◽  
Decision Making ◽  
Developing Countries ◽  
Economic Development ◽  
Exchange Rate ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Sustainable Economic Development ◽  
Sustainable Economic Growth

Foreign direct investment (FDI) and corporate social responsibility (CSR) spending are one of the major factors in improving sustainable economic development of a country. Therefore, this study focuses on the multi criteria application of FDI and sustainability factors (CSR spending) in various developing countries to explore its impact and decision making for sustainable economic growth. The study uses a case study methodology whereby FDI, exchange rate, and CSR expenditure data from 20 countries were used to assess the efficiency in sustainable economic growth. Data were collected from the World Bank for 20 Asian and African developing countries during 2012–2017 and analyzed using GM (1,1), mean absolute percentage error (MAPE), Malmquist productivity index (MPI)-data envelopment analysis (DEA), and the slacks-based measure of efficiency (SBM) model. Correlation analysis is used to find the relationship for FDI, CSR, exchange rate, gross domestic product (GDP), and GDP per capita (GDPPC). The results of the Malmquist productivity index and the frontier effect clearly highlight that a few countries have witnessed a great improvement in terms of productivity and technological progression. Therefore, the decision makers must adopt the model of those countries with respect to sustainable development of the nation. This study helps developing nations as well as researchers to benchmark efficient countries and follow their strategies to develop a new one for utilizing FDI and CSR spending in sustainable economic development. The study also helps policy makers in multi criterion application of FDI and CSR for decision making in economic development.

scholarly journals Travelers on the Railway: An Economic Growth Model of the Effects of Railway Transportation Infrastructure on Consumption and Sustainable Economic Growth

2021 ◽  
Vol 13 (12) ◽  
pp. 6863
Author(s):  
Congliang Wu ◽  
Ning Zhang ◽  
Liwen Xu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Growth Model ◽  
Transportation Infrastructure ◽  
Railway Transportation ◽  
Sustainable Economic Development ◽  
Railway Infrastructure ◽  
Production Behavior ◽  
Infrastructure Investments ◽  
Sustainable Economic Growth

The impacts of transportation infrastructure on sustainable economic development are multifaceted. The existing literature works on the assumption that transportation infrastructure influences sustainable economic development by influencing production behavior. By observing the increasingly common phenomenon of family tourism, this paper finds that transportation infrastructure not only affects production behavior, but also directly impacts residents’ consumption behavior. Based on this, this paper constructs a growth model in which the traffic infrastructure affects both production and consumption in order to reveal the mechanism by which railway infrastructure changes residents’ consumption structures and ultimately promotes sustainable economic growth by promoting private tourism. In order to verify this theoretical proposition, this paper also constructs panel data from the provinces of China from 2008 to 2018 and conducts an empirical study. It was found that railway and railway infrastructure investments can not only directly promote sustainable economic development through the multiplier effect, but can also indirectly promote economic growth by increasing the amounts of private tourism and their proportions.

scholarly journals Assessment of the Industrial Structure and its Influence on Sustainable Economic Development and Quality of Life of the Population of Different World Countries

2020 ◽  
Vol 12 (5) ◽  
pp. 2072 ◽  
Author(s):  
Inna Gryshova ◽  
Mykola Kyzym ◽  
Viktoriia Khaustova ◽  
Volodymyr Korneev ◽  
Hennadii Kramarev
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
Economic Development ◽  
Service Sector ◽  
Structural Changes ◽  
Industrial Structure ◽  
Positive Influence ◽  
Sustainable Economic Development ◽  
The World

The article proves that despite a significant growth in the service sector in recent years, industry remains the main engine of economic growth. Moreover, using the analysis of statistical data, it is shown that the development of industrial complexes of countries of the world is accompanied by corresponding structural changes, which in turn determines their economic development in general. The study aims to solve the following issues: which structure of the national industry can be considered progressive under modern conditions, i.e., can lead to progress and sustainable socio-economic growth; whether there is a correlation between the progressive structure of the country’s industry and its economic development and the quality of life of its population; how the approach of the country’s industrial structure to its progressive state influences the country’s economic development and quality of life of its population. The purpose of the study is to justify or refute the hypothesis about influence of progressiveness of the industrial structure on sustainable economic development and quality of life of the population. The main methods used in the study are cluster analysis and integral assessment. The statistical basis of the study is the data on inter-branch balances for 36 countries of the world for 2009, 2011 and 2014. The results obtained in the study allowed confirming the hypothesis about the positive influence of approach of the industrial structure of countries of the world to its progressive state on the sustainable economic development and quality of life of their population. This conclusion can be considered as the basis for forming the state policy of the world’s countries to develop their economies and improve the quality of life of their population.

A Systemic Approach towards Responsible and Sustainable Economic Development

2017 ◽  
pp. 429-447
Author(s):  
Thea Van der Westhuizen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Systems Theory ◽  
Systemic Approach ◽  
Economic Changes ◽  
Sustainable Economic Development ◽  
Collective Innovation ◽  
Sustainable Economic Growth ◽  
Innovation And Entrepreneurship

A possible way to increase responsible and sustainable economic development is to enhance collective innovation and entrepreneurship on various systemic levels in order to gain socio-economic developmental momentum. In an era which faces socio-economic changes on multiple systemic levels, especially within the mundosystem, collective and creative approaches towards systemic activities are necessary, not only to drive businesses forward, but to give momentum to global economies. In this chapter, the author philosophizes about entrepreneurship, systems theory and socio-economic momentum and how these play an important role to give momentum to responsible and sustainable economic growth.

Determinants of socio-economic transformations of technological systems: theoretical and methodical aspects

2020 ◽  
pp. 102-111
Author(s):  
Svitlana Shults ◽  
Olena Lutskiv
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Structural Changes ◽  
Member States ◽  
Social Transformations ◽  
Technological Basis ◽  
Eu Member States ◽  
Technological Paradigm ◽  
Technological Paradigms ◽  
The Eu

Technological development of society is of unequal cyclic nature and is characterized by changing periods of economic growth, stagnation phases, and technological crises. The new wave of technological changes and new technological basis corresponding to the technological paradigm boost the role of innovations and displace the traditional factors of economic growth. Currently, intellectual and scientific-technical capacity are the main economic development resources. The use of innovation and new knowledge change the technological structure of the economy, increase the elements of the innovative economy, knowledge economy, and digital economy, i.e. the new technological paradigm is formed. The paper aims to research the basic determinants of technological paradigms’ forming and development, and determining their key features, as well as to analyze social transformations of the EU Member States and Ukraine. The paper focuses attention on the research of the features of social transformations. The structural transformations are analyzed based on the Bertelsmann Transformation Index that estimates the quality of democracy, market economy, and political governance. The transformation processes are assessed on the example of the EU Member States and Ukraine. The authors argue that social transformations and structural changes in the economy are related to the change of technological paradigms that boost the economic modernization and gradual progressive development of humanity in general. The nature and main determinants of 5 industrial and 2 post-industrial technological paradigms are outlined. Their general features and main areas of basic technologies implementation emerging in the realization of a certain technological paradigm are explained. The conclusions regarding the fact that innovative technologies and available scientific-technological resources define the main vector of economic development are made. The new emerging technological paradigm is of strategic importance for society development.

DEMOCRACY, ECONOMIC COMPLEXITY AND SOCIO-ECONOMIC DEVELOPMENT: PROBLEMS OF INTERCONNECTION AND WAYS OF THEIR INCREASE IN UKRAINE

2018 ◽  
Author(s):  
Anna Smahliuk ◽  
◽  
Tetiana Pokotylo ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Democratic Institutions ◽  
Economic Complexity ◽  
Multiplier Effect ◽  
Socio Economic Development ◽  
National Production ◽  
Level Of Knowledge ◽  
Sustainable Economic Growth

The article explores the factors that allow the economies of the countries of the world to achieve sustainable economic growth at different stages of the country's economic development, depending on the level of GDP per capita. Among which are highlighted: basic factors, efficiency factors and innovative factors. For the Ukrainian economy, which is at the stage of focusing on efficiency, the issues of the place, significance and level of economic complexity of the Ukrainian economy and ensuring sustainable economic growth on this basis are considered. Economic diversification and complexity are defined as key drivers of long-term growth. The dynamics of the index of economic complexity in Ukraine is analyzed, modern trends are revealed. Directions and strategic approaches to the diversification of national production are proposed, which could have a significant multiplier effect, increase the complexity and level of knowledge in the economy. It also provides evidence on the relationship between socio-economic development, values of self-expression and democratic institutions. The conclusion is formulated: socio- economic development leads to the spread of the values of self-expression, and they, in turn, to the establishment and strengthening of democratic institutions.

scholarly journals Research on strategic emerging industries boosting high quality economic

2021 ◽  
Vol 235 ◽  
pp. 02011
Author(s):  
He Jiang ◽  
Yonghui Cao
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Industrial Structure ◽  
Decisive Role ◽  
High Quality ◽  
Emerging Industries ◽  
National Economic ◽  
Countermeasures And Suggestions ◽  
Sustainable Economic Growth

With the development of knowledge economy and the advancement of economic globalization, strategic emerging industries have become the leading industries for a country or region to achieve sustainable economic growth in the future. They are the high integration of emerging technologies and emerging industries, and the driving force of national economic growth. They play an important guiding and decisive role in the national economic growth and the transformation and upgrading of industrial structure. In recent years, China’s strategic emerging industries continue to grow rapidly, and have made remarkable achievements in innovation and development, which play an important role in the national economic growth and the transformation and upgrading of industrial structure, but there are also shortcomings. Based on the current situation of the development of strategic emerging industries, this paper analyzes the role of strategic emerging industries in economic development, and puts forward countermeasures and suggestions for strategic emerging industries to boost high-quality economic development.

scholarly journals Impact of Public Debt on the Economic Growth of Pakistan.

2011 ◽  
Vol 50 (4II) ◽  
pp. 599-615 ◽  
Author(s):  
Naeem Akram
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Relationship ◽  
Private Investment ◽  
Crowding Out ◽  
Per Capita Gdp ◽  
Debt Overhang ◽  
Positive Effects ◽  
Domestic Debt ◽  
Per Capita

Over the years Pakistan has failed to collect enough revenues for financing of its budget. Consequently, the problem of twin deficits emerged and to finance the developmental activities government has to rely on public external and domestic debt. The positive effects of public debt relate to the fact that in resource-starved economies debt financing if done properly leads to higher growth and adds to their capacity to service and repay public debt. The negative effects work through two main channels—i.e., ―Debt Overhang‖ and ―Crowding Out‖ effects. The present study examines the consequences of public debt for economic growth and investment in Pakistan for the period 1972-2009. It develops a hybrid model that explicitly incorporates the role of public debt in growth equations. As the some variables are I (1) and other are I (0) so Autoregressive Distributed Lag(ARDL) technique has been applied to estimate the model. Study finds that public external debt has negative relationship with per capita GDP and investment confirming the existence of ―Debt Overhang effect‖. However, due to insignificant relationships of debt servicing with investment and per capita GDP, the existence of the crowding out hypothesis could not be confirmed. Similarly, domestic debt has a negative relationship with investment and per capita GDP. In other words, it seems to have crowded out private investment. JEL classification: H63, O43, E22, C22 Keywords: Public Debt, Economic Growth, Investment, ARDL

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