Application of the Samuelson — Hicks model in the conditions of modern economy Case of Bhutan

2021 ◽  
pp. 404-413
Author(s):  
Ekaterina Dmitrievna Myagotina ◽  
Ilona Vladimirovna Tregub
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Econometric Model ◽  
Economic Indicators ◽  
Econometric Modeling ◽  
Closed Economy ◽  
Key Factors ◽  
Managerial Decisions ◽  
Modern Economy

In modern conditions, the problem of determining the factors infl uencing such indicators of economic growth as the volume of consumption, the volume of investments in the economy, government spending and GDP can be solved by applying economic, mathematical, econometric modeling. In this article, to solve this problem of determining the key factors, it was decided to use the Samuelson — Hicks econometric model for a closed economy. This allows not only to identify the key factors that have a signifi cant impact on the development of the economy of the country under study, but also to make forecasts of such development. The article discusses the application of the Samuelson — Hicks model in modern conditions on the example of the economic indicators of Bhutan. After conducting this study, we concluded that although this model is not an ideal one for further investigation of the closed economy of Bhutan, the quality of the specifi cation of this model should be recognized as high. In this regard, the Samuelson — Hicks model can be used to make managerial decisions at the macroeconomic level. The conclusions obtained in the course of this study can be used to modernize this econometric model, as well as to make eff ective decisions to stimulate the development of a certain share of a closed economy.

scholarly journals How Does Export Diversification Impact Economic Growth?

10.28945/4232 ◽  
2019 ◽  
Vol 3 ◽  
pp. 041-054
Author(s):  
Marlo B Murphy-Braynen
Keyword(s):  
Economic Growth ◽  
Literature Review ◽  
Rule Of Law ◽  
Small Island ◽  
Export Diversification ◽  
Domestic Investment ◽  
Key Factors ◽  
Key Variables ◽  
Openness To Trade

The paper uses a mixed method approach to conduct a literature review of existing econometric studies to determine the key drivers of export diversification and economic growth, and to examine whether export diversification propels or hinders economic growth. The paper differs fundamentally from previous studies, as it focuses on identifying the key variables used, the frequency with which they are used and their degree of significance based on econometric studies that focused on measuring export diversification, economic growth and the linkage between diversification and growth in developed and developing countries, while highlighting a key gap in this literature, namely a lack of empirical studies focused on small island states. The paper finds that eight variables were used across all studies at a frequency of 10% or greater – namely, real GDP per capita, education, population, domestic investment, market distance, openness to trade, export concentration and rule of law. Based on the literature review, the key factors which support export diversification are human capital accumulation inclusive of higher education, domestic investment, population, quality of institutions, quality of infrastructure and market access. Conversely the factors that retard export diversification or increase export concentration are economic distance (remoteness from major markets), openness to trade, and declining terms of trade, foreign direct investment, exchange rate volatility and exchange rate overvaluation. Similarly, with regards to economic growth, the literature review suggests that the key factors which promote economic growth are rule of law, investment ratio, favorable movements in the terms of trade, technology, higher education and increased international openness while the factors that inhibit economic growth are fertility rate, the ratio of government consumption to GDP, and the inflation rate. In terms of the key variables used to link export diversification to economic growth, based on the literature, the six main categories of trade integration variables include export composition, trade orientation, export structure, geographic structure and trade strategy. After having reviewed the extant literature on export diversification and its relationship to economic growth, one of the overlooked areas of research is a lack of studies examining export diversification in small island developing states, and how export diversification may or may not contribute to economic growth in those particular contexts.

scholarly journals Effect of Energy Consumption and Economic Growth towards the environmental quality of Indonesia

2019 ◽  
Vol 125 ◽  
pp. 10007
Author(s):  
Shanty Oktavilia ◽  
FX. Sugiyanto ◽  
Firmansyah ◽  
Amin Pujiati ◽  
Andryan Setyadharma
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Quality Index ◽  
Development Process ◽  
Econometric Model ◽  
Environment Quality ◽  
The Impact

Economic development as a process of improving people's welfare in a country can also lead the declining of the environment quality. The degradation of the environment can be caused by the energy consumption required in the development process, as well as pollution. The main purpose of this study is to analyze empirically the impact of energy consumption and economic growth toward environmental quality which is measured by environmental quality index. This study employs the econometric model of panel data of 34 provinces in Indonesia along 2011-2016. The study finds the long-term relationship between energy consumption and economic growth on environmental quality in Indonesia.

scholarly journals PENGARUH BELANJA PEMERINTAH PUSAT UNTUK FUNGSI LINGKUNGAN HIDUP TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Wawan Hermawan
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
Government Spending ◽  
Budget Allocation ◽  
Growth Accounting ◽  
Accounting Model ◽  
The Government ◽  
The Impact ◽  
Environmental Functions

Economic development is measured by economic growth. Improving the economy can improve the quality of life in society, so a lot of effort from the government to stimulate the economy to grow better. The positive growth of economy has an impact on the environmental quality of life such as degradation of quality of air, water and land. The government allocates some funds to maintain the quality of the environment by the central budget allocation for environmental functions. The purpose of this study is to measure the impact of the budget allocation for the function of the environment to economic growth. The model used to achieve the purpose of the study is the regression of total government spending to economic growth. To bridge from the expenditure function of the environment against government spending and economic growth model is used Growth Accounting Model. Results of regression calculations and simulations using Growth Accounting, shows expenditures for environmental function has the effect to increase the economic growth of 0.01% if no additional growth in the rest of expenditures for environmental functions by 10% ceteris paribus.

scholarly journals The Contribution of Technology Finance to the Quality of Economic Growth - Empirical Analysis Based on Spatial Econometric Model

2019 ◽  
Author(s):  
Yuming Xu ◽  
Xu Zhou ◽  
Zhiqiang Li
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Econometric Model ◽  
Entropy Method ◽  
Eastern Region ◽  
Promoting Effect ◽  
Spatial Econometric ◽  
Spatial Econometric Model ◽  
The Relationship

(1) Background: Most of the existing studies focus on the evaluation of technology finance; the relationship between technology finance and technology innovation. But there are few studies on the development of technology finance and the quality of economic development in our country; (2) Methods: Based on the panel data of 30 provinces in China, this paper constructs an index system to measure the development of technology finance through the improved entropy method, and tests the spatial correlation of the development of technology finance in China by Moran'I index. According to the test results, this paper constructs a spatial econometric model to empirically analyze the promoting effect of scientific, technological and financial development on high-quality economic development, and analyzes its promoting effect in different regions and different time periods; (3) Results: The results show that the quality of China's economic growth is spatially dependent, and the development of science, technology and finance can significantly promote the quality economic development in China. And the promotion coefficient of the central region is the largest, as well as the coefficient of the eastern region is the smallest. The promotion coefficient was small and not significant before 2015, and was significantly positive after 2015; (4) Conclusions: this paper puts forward the corresponding policy recommendations according to the research results.

scholarly journals ANALISIS KAUSALITAS PERTUMBUHAN EKONOMI, PENGELUARAN PEMERINTAH DAN KUALITAS SUMBERDAYA MANUSIA DI PROVINSI SUMATERA BARAT

2019 ◽  
Vol 1 (1) ◽  
pp. 97
Author(s):  
Hanifa Novela ◽  
Hasdi Aimon
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Government Spending ◽  
Descriptive Analysis ◽  
Government Expenditure ◽  
Secondary Data ◽  
Literature Study ◽  
Causality Test ◽  
Inductive Analysis

This study aims to analyze the causal relationship between economic growth, government expenditure and the quality of human resources in West Sumatra. This type of research is descriptive and associative research, where the data used is secondary data in the form of panel data from 2010 to 2017 with the technique of collecting documentation data and literature study obtained from related institutions and institutions. The data analysis used is the data used is descriptive analysis and inductive analysis. In inductive analysis there are several tests, namely: (1) Unit Root Test (2)Cointegration Test (3) Optimal Lag Determination (4) Granger Causality Test (5) PVAR Test. The results of this study indicate that (1) economic growth and government expenditure have a one-way relationship where economic growth affects government spending while government spending does not affect economic growth (2) economic growth and quality of resources humans have a one-way relationship where economic growth affects the quality of human resources and the quality of human resources does not affect economic growth (3) government expenditure and the quality of human resources do not have one-way or two-way relationships ( causality) where government spending does not affect the quality of human resources as well as the quality of human resources does not affect government spending during the study period

Economic Growth: New Problems and New Risks

2006 ◽  
pp. 20-37 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Driving Force ◽  
Structural Changes ◽  
Rate Of Growth

The economic growth, which is underway in Russia, raises new questions to be addressed. How to improve the quality of growth, increasing the role of new competitive sectors and transforming them into the driving force of growth? How can progressive structural changes be implemented without hampering the rate of growth in general? What are the main external and internal risks, which may undermine positive trends of development? The author looks upon financial, monetary and foreign exchange aspects of the problem and comes up with some suggestions on how to make growth more competitive and sustainable.

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

The Quality of Kazakhstan’s Economic Policy and Balance of Payments

2008 ◽  
pp. 120-132
Author(s):  
K. Arystanbekov
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Economic Development ◽  
Balance Of Payments ◽  
Foreign Investors ◽  
Negative Balance ◽  
Macroeconomic Efficiency

Kazakhstan’s economic policy in 1996-2007, its character and the degree of responsibility, the correlation between economic development and balance of current accounts are considered in the article. Special attention is paid to the analysis of their macroeconomic efficiency. It is concluded that in conditions of high rates of economic growth in Kazahkstan in 2000-2007 the net profits of foreign investors are 10-11% of GDP every year. The tendency of negative balance of current accounts in favor of foreign investors is also analyzed.

Norman Uphoff, Milton J. Esman and Anirudh Krishna. Reasons for Success: Learning from Instructive Experiences in Rural Development. New Delhi: Sage Publications, 1998. Paperback. Indian Rs 250.00. 233 pages.

1998 ◽  
Vol 37 (3) ◽  
pp. 305-307
Author(s):  
Afia Malik
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
Rural Development ◽  
Natural Resources ◽  
New Delhi ◽  
Rural Poor ◽  
Neoclassical Model ◽  
Rural People ◽  
Small Holders

Given the demographic realities in the developing world, it is not possible to solve the problems of poverty in these countries following the neoclassical model of economic growth. Since the majority of people are ruralites in these countries, the focus should be on rural development directly rather than on waiting for the benefits to trickle down to the rural poor. What is needed is to improve the quality of life and productivity of the small-holders or landless whose livelihood is based on natural resources which are depleting and require urgent attention. More options should be available for the rural people in their own area.

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