Italian economy faces tougher challenges in 2022

Significance This fast growth will more than offset the impact of the pandemic, which pulled down real output by 8.9% in 2020. Nevertheless, there are significant downside risks associated with inflation, monetary policy and political uncertainty. Impacts Italy faces higher borrowing costs in the new year as the ECB gradually tightens its ultra-loose monetary policy. If the winter is cold and Russian energy supplies run short, Italy will have to tap its strategic reserves to slow the growth of prices. Skilled labour shortages, weak productivity and inefficient public bureaucracy will weigh on medium-to-long-term growth.

Governance, Real Output and Foreign Direct Investment in Asia: A Panel Data Analysis

This study intends to analyze the impact of governance (such as political, economic and institutional governance) on real output (GDP) and foreign direct investment (FDI) in 26 Asian countries during 1996 – 2019. Results of panel ARDL show the positive impact of capital, labor and trade openness on GDP and FDI. Institutional governance affects GDP and as well as FDI negatively and validates the notion that corruption greases the wheel of growth but when institutional governance is used with other indicators of governance in the model, it affects the FDI positively. Other dimensions of governance such as political and economic governance have a positive and significant impact on GDP and FDI in all model specifications. The results of the panel causality test that there is bi-directional causality from governance to GDP but evidence of bi-directional causality among governance indicators have also been found. The study emphasized on the policy making to improve the level of governance in Asian countries.

Analyzing the Role of Renewable Energy and Energy Intensity in the Ecological Footprint of the United Arab Emirates

Even though a great number of researchers have explored the determinants of environmental pollution, the majority have used carbon emissions as an indicator while only recent studies have employed the ecological footprint which is a broader and more reliable indicator for the environment. The present study contributes to the literature by exploring for the first time in the literature the role of real output, energy intensity (technology), and renewable energy in the ecological footprint under the STIRPAT framework for a Gulf Cooperation Council (GCC) country—the United Arab Emirates. By applying the novel bounds testing with dynamic simulations on the data from 1992–2017, the findings of this paper reveal that energy intensity and renewable energy have a negative and significant influence on the ecological footprint but real output has a positive and significant impact on it. In other words, the empirical results indicate that a rise in the real income increases environmental pollution while increases in renewable energy and advances in technology mitigate the level of emissions. The findings also suggest that the government should establish new programs, investment opportunities, and incentives in favor of energy intensity-related technology and renewable energy for the sake of environmental sustainability. The outcomes from this research analysis are useful for policymakers, industrial partners, and project designers in the United Arab Emirates.

Measuring and Analyzing the Impact of Investment Spending on Achieving Growth for the Real Iraqi GDP

The study aim to measurement Investment spending in economic activity Via its effect on the production of sectors of the national economy, and due to the fact that investment spending is linked to public revenues, especially petroleum, because of the economy’s direction, its direction has made investment spending allocations fluctuate with the fluctuation of these revenues and then Its weak impact on the real output in Iraq and then a weakness in achieving the real economic growth aims that are expected from this spending, as the research reached a significant weakness in the impact of investment spending on the real output with and without petroleum, as the increases did not match The big investment spending with real output growth with and without petroleum. which indicates weak efficiency and performance of the national economy in achieving the required real economic growth and a lot of use of the policy of transfer between expenditures as well as the lack of a long and short-term balance relationship between investment spending and real output with and without petroleum.

A neoclassical perspective on Switzerland’s 1990s stagnation

We study Switzerland’s weak growth during the 1990s through the lens of the business cycle accounting framework of Chari et al. (Econometrica 75(3):781–836, 2007). Our main result is that weak productivity growth cannot account for the 1993–1996 stagnation episode. Rather, the stagnation is explained by factors that made labour and investment expensive. We show that increased labour income taxes and financial frictions are plausible causes. Holding these factors constant, the counterfactual annualized real output growth over the 1993Q1–1996Q4 period is 1.93% compared to realized growth of 0.35%.

Informality will block poverty reduction in Argentina

Significance The informal sector, accounting for some 25% of real output and nearly half the workforce, undermines development prospects. A high tax burden and macroeconomic instability push many small and medium-sized enterprises (SMEs) into the informal sectors, while pandemic-related lockdowns accelerated the rising trend for informal, small entrepreneurs to offer their products on social media. Impacts Though medium-term prospects for comprehensive reforms are minimal, more modest sectoral reforms may advance. Poor educational attainment will continue to undermine many workers’ prospects for overcoming poverty and informality. Informality levels highlight the need for pension reform, given shortfalls in the pay-as-you-go system and the numbers lacking a pension.

Prices, Money Supply and Output Nexus in Pakistan – A Macro Econometric Model

This study is an endeavor to examine joint determination of prices, money supply and output in Pakistan during 1975-2019 by using macro-economic model and annual time series data. Three Stage Least Square (3SLS) method is utilized to estimate simultaneous model of prices, money supply and output nexus. Our results strongly support significant positive association between prices and money supply thus supports monetarist view that growth in money supply causes inflation and rising behavior of prices is detrimental to real output. The accelerated inflation has obstructed real output and reduced output levels has further caused jump in price levels during the investigated period. The empirical results also supports significant bi-directional relationship between prices and money supply. Prudent monetary policy is need of hour to stabilize prices in order to minimize its adverse impacts on real output.