scholarly journals The importance of technological progress in measuring economic growth in Bosnia and Herzegovina

2020 ◽  
Vol 12 (1) ◽  
pp. 35-55
Author(s):  
Faruk Hadžić
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Social Services ◽  
Technological Progress ◽  
Value Added ◽  
Well Being ◽  
Economic Thought ◽  
Domestic Product ◽  
Knowledge Based ◽  
Gross Value Added

Economic growth is one of the most important concepts in the world economy. Although some authors critically believe that the level and rates of economic growth do not necessarily reflect the actual standard of living, it still remains the main way to measure a country's well-being. Different views on the topic of economic growth, as well as the factors that influence it, have been present throughout the history of economic thought from the very beginning. Unlike many theories of economic growth, which believe that in the long run there will be diminishing returns on factors of production such as labor and capital, Paul Romer in his theory of endogenous growth believes that technological progress, through knowledge accumulation, idea creation and innovation, leads to increasing returns, and thus contributes more to long-term economic growth, unlike other factors. In this paper, on the example of economic growth in B&H, the hypothesis that the activities of knowledge-based services contribute more to the gross domestic product, compared to other sectors was tested. To prove the hypothesis, a multiple linear regression model was made based on a time series of 48 consecutive quarterly values of B&H gross domestic product and sectoral gross value added according to the income and production approach. In the model, activities were grouped into those that are predominantly labor-intensive, knowledge-based services, personal and social services, and other activities. The results showed that the average value of gross value added per worker employed in the sectors of knowledge-based services has a 2.5 higher contribution compared to a worker in the labour-intensive sectors and a 2.47 higher contribution compared to one worker in the personal and social services segment. Also, tests of the implemented model show that additional employment in the sectors of knowledge-based services leads to accelerated economic growth in B&H.

Estimating the direct contribution of tourism to Rwanda’s economy: Tourism satellite account methodology

2019 ◽  
Vol 20 (3) ◽  
pp. 259-271
Author(s):  
Pius O Odunga ◽  
Geoffrey Manyara ◽  
Mark Yobesia
Keyword(s):  
Gross Domestic Product ◽  
Informal Sector ◽  
Value Added ◽  
Capital Formation ◽  
Tourism Industry ◽  
Fixed Capital ◽  
Domestic Product ◽  
Gross Value Added ◽  
Fixed Capital Formation ◽  
Economic Contribution

The tourism industry is poised to command a significant role in the economy of Rwanda, a low-income developing country that is rapidly transforming into a service-oriented economy. However, the industry does not exist as a distinct entity in a country’s national accounts leading to difficulties in estimating its role. Besides, the existence of a significant informal sector aggravates the situation. This study used tourism satellite accounts approach to estimate the economic contribution of tourism. Using primary data from various tourism surveys, six core tables of the tourism satellite accounts framework are presented to estimate the direct economic contribution of tourism to Rwanda’s economy in 2014. In this year, a total of 1,219,529 international tourists visited the country while 560,000 residents took part in domestic tourism trips resulting in internal tourism expenditure/consumption amounting to RWF 261.2bn. This generated an estimated RWF 197.5bn as gross value added by the tourism characteristic industries. Direct tourism gross value added was estimated at RWF 120.0bn while direct tourism gross domestic product, a measure of the direct effects of internal tourism consumption on gross domestic product of the economy was computed at RWF 128.3bn (or 2.5% of Rwanda’s gross domestic product) in the year. In addition to the core six tourism satellite accounts tables, the levels of tourism employment (about 89,000 jobs) tourism gross fixed capital formation (slightly over RWF 200bn) and tourism collective consumption (over RWF 7bn) were estimated. Under this study, the international methodological recommendations on tourism satellite accounts were implemented for Rwanda. The contribution of tourism to gross domestic product, employment, investment, and collective consumption was quantified and estimated. Informal sector tourism activities were included in these estimates. Gross fixed capital formation and collective consumption estimates are tentative due to conceptual considerations documented by the methodological framework.

scholarly journals Perspectives Measuring more than just economic growth to improve well-being

2020 ◽  
Author(s):  
Shaun Danielli ◽  
Patrice Donnelly ◽  
Tom Coffey ◽  
Schellion Horn ◽  
Hutan Ashrafian ◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Gross Domestic Product ◽  
Well Being ◽  
Good Health ◽  
Domestic Product ◽  
Economic Prosperity ◽  
Sustainable Economic Development ◽  
The Uk ◽  
Health And Well Being

Abstract It’s official: The UK is in a recession. The economy has suffered its biggest slump on record with a drop in gross domestic product (GDP) of 20.4%. 1 This is going to have a significant impact on our health and well-being. It risks creating a spiralling decay as we know good health is not only a consequence, but also a condition for sustained and sustainable economic development. 2 In this way, the health of a nation creates a virtuous circle of improved health and improved economic prosperity. How we measure prosperity is therefore important and needs to be considered.

scholarly journals Tourism contribution to Gross Domestic Product (GDP) and Gross Value Added (GVA)

2020 ◽  
Vol 10 (3) ◽  
pp. 176-182
Author(s):  
Milin Ioana Anda ◽  
Merce Iuliana Ioana ◽  
Iancu Tiberiu ◽  
Pet Elena ◽  
Tigan Eugenia
Keyword(s):  
Gross Domestic Product ◽  
Value Added ◽  
Tourism Industry ◽  
Domestic Product ◽  
Data Series ◽  
National Accounts ◽  
Tertiary Sector ◽  
Goods And Services ◽  
Gross Value Added ◽  
Macroeconomic Indicators

The overall evolution of the economy is usually appreciated by two macroeconomic indicators GDP and GVA, which by their value gives us clear information on the state of the economy.  Gross domestic product (GDP), the main macroeconomic aggregate of national accounts, is the final result of the production activity of resident producer units and which corresponds to the value of goods and services produced by these units for final consumption. Gross Value Added (GVA) is the balance of the production account and is measured as the difference between the value of the goods and services produced (valued at basic prices) and the intermediate consumption (valued at the buyer's prices), thus representing the new value created in the production process. GVA is calculated before calculating the consumption of fixed capital. Since 1990, we have been confronted with a major restructuring of the way GDP and GVA are created due to the intensive process of restructuring the economy. In the paper we will analyze the basis of the processing of national statistical data, how the tourism component of the tertiary sector contributes to the formation of the aggregate indicators presented above. In 2016, Romania had a GDP of 169.6 billion euros, below the Czech level (174.4 billion euros), Greece (175.9 billion euros) and Portugal (184.9 billion euros). Data series published by the European Statistical Office show that in the first quarter of this year, Romania's GDP adjusted for seasonal influences was 44.2 billion euros, while the value of GDP- Greece was 43.96 billion euros, the Czech Republic's 44.85 billion euros, and Portugal's 47.37 billion euros. In terms of GVA training, Romania is included in the European Union's Statistical Yearbook 201 6 as the country with the largest contributions to the Gross Value Added  in the economy from industry, agriculture and construction, simultaneously with the lowest Public sector contribution (administration, defense, education, health and social welfare, etc.) Although professional, scientific and technical activities have seen the largest increase in the share of Gross Value Added  training, they remain below the average of 10.4% Registered on the whole EU. There is an increase in the art, entertainment, recreation and other activities related to tourism - which brought us near the European customs and contributed to the "structural convection" of the Romanian economy. Touristic activity, particularly complex, with upstream and downstream implications, generates a tourism industry, whose components contribute to the formation of GDP and national  Gross Value Added   We will analyze the share of tourism in Romania's Gross Domestic Product in the period 2008-2014, gross value added in the tourism industry  direct gross value added from tourism  and gross domestic product of tourism  in 2013 and 2014.   Keywords: macroeconomic indicators, tourism industry, Gross Domestic Product, Gross Value Added economy

scholarly journals Analysis of the Nexus of CO2 Emissions, Economic Growth, Land under Cereal Crops and Agriculture Value-Added in Pakistan Using an ARDL Approach

Energies ◽  
2019 ◽  
Vol 12 (23) ◽  
pp. 4590 ◽  
Author(s):  
Ali ◽  
Liu ◽  
Shah ◽  
Tariq ◽  
Ali Chandio ◽  
...  
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Gross Domestic Product ◽  
Carbon Dioxide Emissions ◽  
Value Added ◽  
Domestic Product ◽  
Series Data ◽  
Cereal Crops ◽  
Long Run ◽  
Integration Test

The present study attempts to explore the correlation between carbon dioxide emissions (CO2 e), gross domestic product (GDP), land under cereal crops (LCC) and agriculture value-added (AVA) in Pakistan. The study exploits time-series data from 1961 to 2014 and further applies descriptive statistical analysis, unit root test, Johansen co-integration test, autoregressive distributed lag (ARDL) model and pairwise Granger causality test. The study employes augmented Dickey–Fuller (ADF) and Phillips–Perron (PP) tests to check the stationarity of the variables. The results of the analysis reveal that there is both short- and long-run association between agricultural production, economic growth and carbon dioxide emissions in the country. The long-run results estimate that there is a positive and insignificant association between carbon dioxide emissions, land under cereal crops, and agriculture value-added. The results of the short-run analysis point out that there is a negative and statistically insignificant association between carbon dioxide emissions and gross domestic product. It is very important for the Government of Pakistan’s policymakers to build up agricultural policies, strategies and planning in order to reduce carbon dioxide emissions. Consequently, the country should promote environmentally friendly agricultural practices in order to strengthen its efforts to achieve sustainable agriculture.

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 EVALUATION OF THE CORRELATION BETWEEN THE LIVING STANDARDS LEVEL, SOCIO-ECONOMIC AND DEMOGRAPHIC PROCESSES IN UKRAINE

2021 ◽  
Vol 2 (37) ◽  
pp. 482-492
Author(s):  
S. Burlan ◽  
N. Katkova ◽  
S. Marushchak
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Population Growth ◽  
Demographic Change ◽  
Well Being ◽  
Living Standards ◽  
Disposable Income ◽  
Social Progress ◽  
Domestic Product ◽  
Demographic Indicators

Abstract. The aim of the study is to quantify the correlation between economic growth, social progress, demographic change, and living standards. To establish the correlation between social and economic processes the indicators were selected, using correlation-regression analysis the correlation between them was determined. The dynamics and connections tightness of 72 social and economic and demographic indicators based on official statistics for 17 years were analyzed in aggregate. As a result of the study revealed a close ligament between population’s lifetime, population growth and economic development and well-being, in particular, between gross domestic product per capita and total fertility rate, average population age, quintile ratio of funds that differentiate the degree of differentiation of funds people. The tight correlation between the average age of population, the «monetary» well-being indicators of population (the average amount of the assigned pension, the average monthly wage, the disposable income per person) and consumption (the volume of industrial production, retail turnover) were also determined. It has been found that the change in disposable income per person is closely related to a number of demographic indicators, such as population, natural population growth (reduction), and average age of population. The study also found that the growth of gross domestic product does not depend directly on the population and the number of people employed in the economy. It is determined that there is a medium correlation between indicators of crimes detected and the number of higher education institutions and the number of students in these institutions. There is also a lack of correlation between unemployment and crime rates with socio-economic indicators, although they should be. Keywords: correlation, correlation coefficient, indicators, living standard, social progress, economic growth, demographic change, evaluation. JEL Classification O11, O15, P36 Formulas: 0; fig.: 1; tabl.: 4; bibl.: 16.

Economics of Subjective Well-Being

2018 ◽  
Author(s):  
Anke C Plagnol ◽  
Lucia Macchia
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Well Being ◽  
Domestic Product ◽  
Subjective Well Being ◽  
Easterlin Paradox ◽  
Individual Level ◽  
Seminal Article ◽  
The Individual ◽  
Over Time

In 1974 economist Richard A. Easterlin asked in his seminal article “Does economic growth improve the human lot?” His answer to this question was a resounding no. The paper described what was later to be known as the Easterlin paradox, which is the observation that at one point in time rich nations are on average happier than poor nations, but over time there is no relationship between happiness and gross domestic product (GDP). The Easterlin paradox can also be found at the individual level. Easterlin’s paper is often described as starting the field of the economics of subjective well-being. The Easterlin paradox has been the topic of many published articles, with numerous studies supporting the original findings and some refuting them. This chapter describes the Easterlin paradox and recent evidence confirming or rejecting its existence. Other developments in the economics of subjective well-being are also discussed.

scholarly journals SPECIFICS OF SECTORAL TRANSFORMATIONS ECONOMY OF UKRAINE

2021 ◽  
Author(s):  
Olga Sokolova
Keyword(s):  
Comparative Analysis ◽  
Gross Domestic Product ◽  
National Economy ◽  
Structural Changes ◽  
Value Added ◽  
Domestic Product ◽  
Modern World ◽  
Tertiary Sector ◽  
Sectoral Structure ◽  
Gross Value Added

The article examines the sectoral transformations in the economy of Ukraine for 2010-2019 and their specifics. The sectoral structure is a generalized characteristic of the qualitative level of development of the national economy, and sectoral transformations have a clear both economic and social manifestation. The sectoral proportions of national economies are constantly monitored by international institutions. Comprehensive research of sectoral transformational transformations at the level of the national economy allows to improve the quality of management decisions in substantiating the state structural policy and mechanisms for its implementation. The aim of the article is to analyze the sectoral transformations in the economy of Ukraine for 2010-2019, based on gross domestic product, gross value added and relative indicators of structural changes. The following research methods were used in the article: dialectical, analysis and synthesis, grouping and classification, economic-statistical, comparative analysis, logical generalization. An analysis of the dynamics of change in the structure of Ukraine's economy in terms of three sectors based on indicators of gross domestic product and gross value added. The quadratic coefficient of "absolute" structural shifts of Kazynets is calculated. The main trends of sectoral changes in the economy of Ukraine during the analyzed period are clarified. Emphasis is placed on the rapid growth of the tertiary sector, mainly due to a decrease in the share of the secondary (industrial) sector. A comparative analysis of the sectoral structure of the distribution of gross value added of Ukraine by the level of gross domestic product per capita with the economies of seventy-two countries. It is emphasized that the transformations that have taken place in the sectoral structure of Ukraine's economy increase its instability and vulnerability to cyclical and other shocks. In order for sectoral changes in Ukraine's economy to be positive and ensure long-term economic growth, it is necessary to change priorities and directions of development in line with modern world trends.

scholarly journals Making Nature Count

2021 ◽  
Vol 4 (2) ◽  
pp. 5-12
Author(s):  
Umesh Srinivasan ◽  
Kartik Shanker
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Natural Resources ◽  
Economic Thought ◽  
Domestic Product ◽  
Economic Success ◽  
Natural Habitats ◽  
The Way

Earth’s biodiversity is the ultimate engine of local and global economies and compromising the renewability of our natural resources will ultimately halt economic growth. Despite this, humankind has continued to exploit natural resources such as fisheries and forests at highly unsustainable rates in the pursuit of flawed development paradigms and simplistic metrics such as gross domestic product (GDP). This has already led to the loss of natural habitats and the decline and extinction of species as well as consequences such as an increase in zoonotic pandemics. The Economics of Biodiversity, a recent report by Sir Partha Dasgupta, addresses how the failure of our current institutions has brought us to where we stand and suggests ways by which we may reform our economic thought to mitigate the impacts on biodiversity. The report identifies important first steps: changing the way we measure economic “success”...

Trends of Private Consumption in the Restructuring of China’s Economy

2015 ◽  
Vol 07 (04) ◽  
pp. 52-64
Author(s):  
Chien-Hsun CHEN
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Consumption ◽  
Decisive Role ◽  
Domestic Product ◽  
Domestic Consumption ◽  
Labour Income ◽  
Rapid Economic Growth ◽  
Labour Share ◽  
China’S Economy

The benefits deriving from rapid economic growth have chiefly accrued to capital returns. Consequently, the decline in the share of Chinese gross domestic product (GDP) accounted for by labour income has been most pronounced. To sustain growth, China will have to ensure robust consumption. Increasing the labour share in GDP and hence promoting domestic consumption will play a decisive role in rebalancing China’s economy.

Sign in / Sign up

Export Citation Format

Share Document