International Tourism and Economic Growth: Empirical Evidence from BRICS Countries

The aim of the study was to examine the tourism-growth nexus in the context of BRICS nations. For this purpose, the augmented neo-classical growth framework has been employed a panel data model approach over the sample period spanning from 1995 to 2019. The estimation was conducted using PMG based ARDL regression. The results lend support to the tourism-led growth hypothesis when the capital formation and human development exert a positive impact on the long-run real economic growth in BRICS economies. So, the policies meant for tourism sector development can contribute to long-run economic growth through an increase in the share of gross capital formation in the gross domestic product and with the help of improved human development. Therefore, the policy focus should be on infrastructure development, the promotion of investment opportunities, and the development of healthcare and education in BRICS countries. The use of a macroeconomic framework in the analysis is the novelty of this study.

The Dynamic Impact of Public External Debt on Capital Formation in Sub-Saharan Africa: The Pooled Mean Group Approach

The increasing reliance on public external debt stocks in Africa and other developing countries has raised the question of debt sustainability, especially in the face of Covid-19, which has forced many counties (both developed and developing) into an unforeseen and unplanned recession. This study contributes to the literature on debt sustainability by examining the effect of public debt on capital formation in Sub-Saharan Africa (SSA) from 2000 to 2008 using the pooled mean group estimation approach. The debt variables considered are external debt stock, debt service on external debt, and interest payment on external debt. Consistent with the overhang theory, our results show that increasing external debt stock and interest payment on external debts only have a marginal impact on capital formation in the short run and exerts a serious negative effect in the long run. Our results also show that debt service burden has a positive effect on gross fixed capital formation in the long run. Therefore, we argue that despite being faced with a huge debt service burden resulting from large external debt stock, SSA countries are not neglecting investments in critical infrastructures needed to drive economic growth. However, we recommend that increasing government revenue base, minimizing economic waste associated with public expenditure, and intensifying negotiations for debt relief may be a plausible way out.

On Exports and Capital Formation in Nigeria

One remarkable importance of exports is that it enables countries generate the required foreign capital needed to drive sustainable growth and development. This is to say that export earnings are capable of increasing capital formation through real investment. This study therefore focused on the impact of exports to capital formation in Nigeria for a 40-year time period spanning from 1981 to 2020. Related works on the subject matter were reviewed. The unit root test showed that all the variables attained stationarity after first difference. The Johansen cointegration test result showed that there exists a stable long run relationship between gross fixed capital formation, oil export, non-oil export and exchange rate in the model. Using the ordinary least square (OLS) estimation technique in analyzing the data sourced, the results showed that oil export had a negative and insignificant impact on capital formation in Nigeria. Similarly, non-oil export and exchange rate exerted insignificant negative influences on capital formation in Nigeria for the period covered by the study. Based on the findings from the study, the following recommendations were made. First is that the proceeds from crude oil export should be used to acquire capital assets for investment which will in turn drive growth in the economy. Also the government through the central bank of Nigeria (CBN) and relevant agencies should pay more attention to the non-oil sector in terms of the implementation of favourable policies, grants and loans, tax incentives, research and development, etc. to improve the export of the sector, making it compete favourably in the international market. This is because crude oil is an exhaustible asset that is liable to depletion. Finally, efficient exchange rate policies should be implemented by government through the relevant authorities to protect the value of the naira while ensuring that the products are not too dare in the international market.

Human Capital in Industry 4.0. Present and Future

The purpose of the article is to explore digital technologies that impose new requirements on the system of human capital formation, especially education. The authors have updated the concept of «human capital». They propose a scheme of its development as a successive transition from natural talents and gifts to higher values and meanings, accumulated individually throughout life. It is argued that digitalization has an increasing influence on this process: after the digitization of external physical objects and communications of the “man-technique” type, it is rapidly subordinating all communications of the “man-human” type and claims to digitize the functions of man himself. In this situation, man (if he wants to preserve his subjectivity) is required to develop personally ahead of the rapid evolution of the technosphere. As a result, man will find himself in a situation where he can only deal with values and meanings, while physical production will be carried out by the autonomous technosphere.The Government needs to promote the development of human capital with fundamentally new professional competencies codified by law. Training, in addition to professional sectoral knowledge, should be directed towards the development of digital competences and future metanautics. Access to digital information is governed by dynamic legal aspects of law.

Investigating The Environmental Kuznets Curve (Ekc) Hypothesis For India: Does India Have Enough Capital To Supplement Renewable Energy Usage In The Correction of Carbon Emissions?

India’s sustainable development goals consist of higher economic growth through strengthening of the manufacturing sector on the one hand and ambitious carbon emission reduction plans through increased renewables on the other. This paper studies the dynamic association between CO2 emissions, economic growth, renewable energy (RE) consumption and gross capital formation and tests for the existence of Environmental Kuznets Curve (EKC) hypothesis for India over the time period 1970-2018. It also tries to see if there is any possible conflict between the economic and energy goals using an interaction term between RE consumption and gross capital formation. The empirical results not only confirm long run relationship among the underlying variables but also indicate an ‘N’ shaped EKC in the long run for India indicating a departure from the traditional inverted U-shaped EKC hypothesis. RE consumption is found to reduce emissions, whereas gross capital formation and the interaction term between RE consumption and gross capital formation are found to raise emissions in the long run. The study concludes that India needs to align its economic policy of ‘Make in India’ with its energy policy so that investments under the former facilitate extensive penetration, adaptation and usage of renewable energy. A policy dichotomy between the two goals may defeat India’s INDC objective of drastic reduction in CO2 emissions through increased renewables by 2030.