Constituting A Root Map Towards Inclusive Growth: A Comparative Analysis

Developing and emerging countries of Asia have shown a tremendous improvement in economic growth rates couple with the significant strides in extreme poverty reduction. However, most of the economies are still facing some challenges like income and non-income disparities in sharing benefits and participation into social and economic activities. It requires attention that economic growth must be accompanied by reduction in poverty and income & non-income inequalities, and promoting equitable participation, i.e. growth must be inclusive. To address these challenges, present study presents a pioneer work to construct a unique but comprehensive inclusive growth index (IGI) over the period of last two decades for 17 Asian and 8 developed countries. The study made a comparative analysis of inclusive growth performances of developing and emerging countries of Asia and compared their final score with the benchmark set by developed countries of the world. The study highlighted the clusters of variables which required attention in developing Asia to converge with emerging Asia, and in emerging Asia to converge with developed world. In short, the study provides a root map for developing countries to merge with emerging countries, and for emerging countries to merge with developed countries.

Determinants of substantial public debt reductions in Central and Eastern European Countries

Government debt development is a timeless issue in economics that has gained even more attention in light of the global financial crisis and the Covid 19 pandemic crisis. The following paper uses several specifications of a logistic probability model to examine the key determinants underlying substantial public debt reductions in Central and Eastern European EU Member States for the period 1996–2020. The results suggest that fiscal adjustments are more likely to be successful in reducing public debt if they are based on expenditure cuts rather than revenue increases. In this context, cuts in social benefits and government employee compensation prove to be particularly effective. In addition, favourable economic growth rates increase the probability of a substantial reduction in government debt.

Slowing Economic Growth and Falling Production in EU

The author examines the problems of economic growth of the EU in the period before the coronavirus pandemic, as well as during the 2020 economic crisis and gradual recovery. It is argued that the decrease in 2017‒2019 was caused by a number of long-term reasons, i.e. slow technological renewal of production base and narrowing of trade surplus due to loss of competitive advantages over producers from Southeast Asia. The author analyses the mechanics of pandemic’s impact on EU production volume, caused by decline in general demand and supply of goods and services. The EU economic policy is viewed as an appropriate instrument to protect citizens and companies from bankruptcy. It is outlined that the recovery will stem not from the economic policy, but from countering the pandemic with vaccines and sanitary restrictions. The author forecasts that economic growth rates in the region will slow down due to the reasons that emerged before the pandemic. Moreover, the growth will be negatively affected by the current EU policy of greater use of clean energy and technologies that preserve the environment, but inflate the production costs.

THE IMPACT OF LENDING TO NON-FINANCIAL CORPORATIONS ON ECONOMIC GROWTH

Acceleration of economic growth, especially in modern conditions, requires the use of stimulating measures of fiscal and monetary policy. Measures to stimulate economic growth should also maintain macroeconomic stability. Many emerging markets and developing economies are pursuing high interest rate policies to curb inflation, but this leads to a reduction in lending to non-financial corporations and to economic growth rates decline. The goal of the study is to show that pursuing high interest rates policy is insufficient. We tested several hypotheses: first, we assume that an increase in lending to non-financial corporations stimulates economic growth. Our second hypothesis, in contrast, suggests that increasing interest rates on loans dampen economic growth. Third, we assume that inflation has no significant effect on economic growth. Forth, we consider that lending to non-financial corporations does not spur inflation. We empirically assess the data for 13 countries related to emerging markets during 2001–2020. The results of the research confirmed all the hypotheses. The monetary policy of maintaining high interest rates used by many developing countries leads to low lending to non-financial corporations and reduced economic growth. We propose several policy implications aimed at stimulating the lending to non-financial corporations and scarce inflation.

Economic recovery in the world and in the United States at the beginning of the third decade

The speed of the economic is estimated to improve at the beginning of the third decade. After pandemic stress and economic restrictions of the last year, the domestic product of the world is expected to grow during the current year, with G 20 countries (as a whole), and especially China, doing better than the world and much better than for example the countries of the euro zone. The economic activities in the United States, after slowing at the end of the last year; tend to grow higher than the major advanced economies in Europe are projected. Different economic growth rates are also among the sectors, and the economies that most dependent on travel, tourism, other services suffer most. As to world merchandise trade it shows returning to pre-pandemic levels. But time is needed for consumer confidence recovering progress, labour market improving, losses due to increased poverty. Meanwhile the fiscal support continues growing with records leading, for example, in the United States to budget deficit exceeding one of the last year. The effects of the planned fiscal stimulus remain mainly uncertain concerning both economic activities and the prospects of raising tax revenues to moderate the speed of growing budget deficit.

Macroeconomic Dynamics of the Total Factor Productivity of the Russian Economy

The growth rate of Russia’s total productivity has been slowing down significantly since 2008. The majority of relevant publications either describe an economic methodology or specifically focus on labour productivity. However, economic growth rates, as well as community welfare, largely depend on total factor productivity. The paper aims to determine the reasons for the slowdown in the growth of total factor productivity after 2008. This negative dynamics was assessed using a macroeconomic econometric model and estimates for Russian regions and types of economic activity. Elasticity of dependent variables was calculated based on econometric equations as well as multipliers of exogenous variables presented in the model. Ordinary and rank correlations between the variables were also examined. The calculations revealed that the stagnation of total factor productivity was caused by the misallocation of resources across industries and regions, de crease in aggregate demand, increase in capital goods prices (primarily due to rouble devaluation) and a slowdown in digital economy development. In turn, these trends were influenced by a decline in public investment and export prices, as well as a slowdown in population growth and liquidity. Simultaneously, growth of the world economy contributed to the demand for Russian export goods, preventing a decrease in productivity. The findings can be used for forecasting Russian economic trends and developing relevant policy measures. Further research will examine the role of human capital, energy intensity, climate and institutional factors in increasing the total productivity.

Financial Technology: Development of Innovative Fintech Start-Ups and Its Application in Banking System of Uzbekistan

In the context of globalization, labor migration, trade and capital movements, tourism, foreign investment, IT are affected by the economic growth rates of countries. Periodic disclosure of reforms in the new Uzbekistan, the beginning of socio-economic relations provided opportunities for modernization, technical and technological re-equipment of the industrial sector. In particular, the need for financial technology in commercial banks is important to conduct research in this area. The influence of fintech is beginning to be felt in the banking sector and capital markets. This article surveys its development and its impact on efficiency, banking market structure, strategies of incumbents and entrants, and financial stability.

THE BIRTH OF A “NEW” ECONOMY: OVERCENTRALIZATION OF THE INDUSTRY MANAGEMENT SYSTEM OF THE USSR (SECOND HALF OF THE 1920s-1930s)

The economy of modern Russia is in rather unfavorable conditions for its development. Economic growth rates have lagged behind the world average for a long time, and production indicators are falling. And all this is taking place in the context of growing international isolationism, which does not allow the full use of external loans and technologies. In turn, this situation is sensitively reflected in the quality and standard of living of the population, which are declining every year. The reasons for the current difficulties must be sought not only in modern phenomena, but also in those processes that took place in the past. Simultaneously with them, it is necessary to identify examples of successful development of statehood, which allowed the country to achieve significant, in certain periods - exponential, growth of the domestic economy. In this regard, an example of such a period is the second half of the 1920s - 1930s, when in a short period of time the USSR was able to achieve a colossal increase in the gross indicators of the economy and take its rightful place among the leading industrial states. It seems to us that the reasons for such a powerful rise were the over-centralization of the economy. It helped to reveal the hidden reserves of Soviet society, to streamline the activities of all elements of the management system. This aspect determined the goal of our study as a study of the emergence of a super-centralized system of industrial management in the USSR.

Happiness and Criminal Victimization: A Study of Relationship and Restoration

Even well-developed nations with the highest economic growth rates have failed to bring happiness amongst their citizens. Consequently, recent studies have shifted their focus from economic variables, such as Human Development Index (HDI), gross development product (GDP) per capita, etc., to happiness as an indicator of growth, development and social progress. Amidst others, criminal victimization is one of the important indicators of happiness. The present article intends to study the relationship between happiness using the happiness measurement index and criminal victimization using the crime statistics of selected nations. It consists of a descriptive statistical analysis of six nations selected based on their happiness score, including two nations each with a high, average and low happiness measurement index. The results show that people living in nations with high crime rates were less happy and satisfied than individuals living in nations with comparatively lower crime rates. However, the article could not conclusively establish the relation between the happiness level and the nature of crime.

Using a Standard Model to Identify the Saving Determinants in the Kingdom of Saudi Arabia

Low savings are an important factor in low economic growth rates. Saudi Arabia faces many future challenges, e.g., maintaining the gross domestic product, improving economic growth rates, providing job opportunities, as well as decreasing unemployment and nationalization rates. Therefore, the present research paper aims to identify the most important factors affecting domestic savings in Saudi Arabia by building a simultaneous equations model to measure interactions and interrelations between variables using 3SLS. The results showed a significant positive interaction between variables. Increasing domestic savings by 1% increased local investment by 0.957%, whereas increasing the investment coverage ratio by 1% increased local investment by 0.971%. Moreover, increasing local investment by 1% increased gross domestic product by 0.136%, while decreasing the rate by 1% increased gross domestic product by 0.334%. Increasing population by 1% increased gross domestic product by 1.520%. In short, these factors conveyed high rates of response.