International Science Index
Understanding Innovation by Analyzing the Pillars of the Global Competitiveness Index
Global Competitiveness Index (GCI) prepared by World Economic Forum has become a benchmark in studying the competitiveness of countries and for understanding the factors that enable competitiveness. Innovation is a key pillar in competitiveness and has the unique property of enabling exponential economic growth. This paper attempts to analyze how the pillars comprising the Global Competitiveness Index affect innovation and whether GDP growth can directly affect innovation outcomes for a country. The key objective of the study is to identify areas on which governments of developing countries can focus policies and programs to improve their country’s innovativeness. We have compiled a panel data set for top innovating countries and large emerging economies called BRICS from 2007-08 to 2014-15 in order to find the significant factors that affect innovation. The results of the regression analysis suggest that government should make policies to improve labor market efficiency, establish sophisticated business networks, provide basic health and primary education to its people and strengthen the quality of higher education and training services in the economy. The achievements of smaller economies on innovation suggest that concerted efforts by governments can counter any size related disadvantage, and in fact can provide greater flexibility and speed in encouraging innovation.
The Sustainable Strategies Research for Renewal of “Villages in City”: A Case Study of Liuzhou in Southwestern China
Transformation under the reconfiguration of urban-rural relation in Liuzhou city has never been as radical and visible as it has been since the tremendous turn of the last century in China. Huanjiang village is located in Linhuashan Scenic Area in the middle east of Liuzhou city, with spectacular landscape and traditional features. Nowadays Huanjiang village has become a so-called "village in city", which is considered full of great potential for development because of the economic value of regional advantages during the urban sprawl. Communities of village found it difficult to acclimatize with the dramatic changes, which later led to numerous problems including ecological damage, unemployment of landless farmers and loss of traditional culture. Government has started up a series of renewal planings to resolve the problems, which are based on advanced technology and conform to sustainable and integrated strategies of city planning considering the original context and historical culture, superseding the traditional arrangements based on the guide of extensive economic growth. This paper aims to elaborate the context of Liuzhou city and Huanjiang village offered to both the traditional and sustainable planning approaches, in order to understand challenges and solutions of the rebuilding process. Through the analysis of the place relevant to architecture, society and culture, it will establish the corresponding systematic strategies. Considering the local features, it concludes with a comprehensive perspective on organic renewal in the case of Huanjiang village.
Stating Best Commercialization Method: An Unanswered Question from Scholars and Practitioners
Commercialization method is a means to make inventions available at the market for final consumption. It is described as an important tool for keeping business enterprises sustainable and improving national economic growth. Thus, there are several scholarly publications on it, either presenting or testing different methods for commercialization. However, young entrepreneurs, technologists and scientists would like to know the best method to commercialize their innovations. Then, this question arises: What is the best commercialization method? To answer the question, a systematic literature review was conducted, and practitioners were interviewed. The literary results revealed that there are many methods but new methods are needed to improve commercialization especially during these times of economic crisis and political uncertainty. Similarly, the empirical results showed there are several methods, but the best method is the one that reduces costs, reduces the risks associated with uncertainty, and improves customer participation and acceptability. Therefore, it was concluded that new commercialization method is essential for today's high technologies and a method was presented.
The Fiscal and Macroeconomic Impacts of Reforming Energy Subsidy Policy in Malaysia
The rationalization of a gradual subsidies reforms plan has been set out by the Malaysian government to achieve the high-income nation target. This paper attempts to analyze the impacts of energy subsidy reform policy on fiscal deficit and macroeconomics variables in Malaysia. The Computable General Equilibrium (CGE) Model is employed. Three simulations based on different groups of scenarios have been developed. Importantly, the overall results indicate that removal of fuel subsidy has significantly improved the real GDP and reduced the government fiscal deficit. On the other hand, the removal of the fuel subsidy has increased most of the local commodity prices, especially energy commodities. The findings of the study could provide some imperative inputs for policy makers, especially to identify the right policy mechanism. This is especially ensures the subsidy savings from subsidy removal could be transferred back into the domestic economy in the form of infrastructure development, compensation and increases in others sector output contributions towards a sustainable economic growth.
Role of Non-Renewable and Renewable Energy for Sustainable Electricity Generation in Malaysia
The main objective of this paper is to give a comprehensive review of non-renewable energy and renewable energy utilization in Malaysia, including hydropower, solar photovoltaic, biomass and biogas technologies. Malaysia mainly depends on non-renewable energy (natural gas, coal and crude oil) for electricity generation. Therefore, this paper provides a comprehensive review of the energy sector and discusses diversification of electricity generation as a strategy for providing sustainable energy in Malaysia. Energy policies and strategies to protect the non-renewable energy utilization also are highlighted, focusing in the different sources of energy available for high and sustained economic growth. Emphasis is also placed on a discussion of the role of renewable energy as an alternative source for the increase of electricity supply security. It is now evident that to achieve sustainable development through renewable energy, energy policies and strategies have to be well designed and supported by the government, industries (firms), and individual or community participation. The hope is to create a positive impact on sustainable development through renewable sources for current and future generations.
Nonlinear Multivariable Analysis of CO2 Emissions in China
This paper addressed the impacts of energy consumption, economic growth, financial development, and population size on environmental degradation using grey relational analysis (GRA) for China, where foreign direct investment (FDI) inflows is the proxy variable for financial development. The more recent historical data during the period 2004–2011 are used, because the use of very old data for data analysis may not be suitable for rapidly developing countries. The results of the GRA indicate that the linkage effects of energy consumption–emissions and GDP–emissions are ranked first and second, respectively. These reveal that energy consumption and economic growth are strongly correlated with emissions. Higher economic growth requires more energy consumption and increasing environmental pollution. Likewise, more efficient energy use needs a higher level of economic development. Therefore, policies to improve energy efficiency and create a low-carbon economy can reduce emissions without hurting economic growth. The finding of FDI–emissions linkage is ranked third. This indicates that China do not apply weak environmental regulations to attract inward FDI. Furthermore, China’s government in attracting inward FDI should strengthen environmental policy. The finding of population–emissions linkage effect is ranked fourth, implying that population size does not directly affect CO2 emissions, even though China has the world’s largest population, and Chinese people are very economical use of energy-related products. Overall, the energy conservation, improving efficiency, managing demand, and financial development, which aim at curtailing waste of energy, reducing both energy consumption and emissions, and without loss of the country’s competitiveness, can be adopted for developing economies. The GRA is one of the best way to use a lower data to build a dynamic analysis model.
Omani Community in Digital Age: A Study of Omani Women Using Back Channel Media to Empower Themselves for Frontline Entrepreneurship
This research article presents the changing role and status of women in Oman. Transformation of women’s status started with the regime of His Majesty Sultan Qaboos Bin Said in 1970. It is always desired by the Sultan to enable women in all the ways for the balance growth of the country. Forbidding full face veil for women in public offices is one of the best efforts for their empowerment. Women education is also increasing rapidly. They are getting friendly with new information communication technology and using different social media applications such as WhatsApp, Instagram and Facebook for interaction and economic growth. Though there are some traditional and tribal boundaries, women are infused with courage and enjoying fair treatment and equal opportunities in different career positions. The study will try to explore changing mindset of young Omani women towards these traditional tribal boundaries, cultural heritage, business and career: ‘How are young Omani women making balance between work and social prestige?’, ‘How are they preserving their cultural values, embracing new technologies and approaching social network to enhance their economic power.’ This paper will discover their hurdles while using internet for their new entrepreneur. It will also examine the prospects of online business in Oman. The mixed research methodology is applied to find out the result.
Trade Policy Incentives and Economic Growth in Nigeria
This paper analyzes, using descriptive statistics and econometrics data which span the period 1981 to 2014 to gauge the effects of trade policy incentives on economic growth in Nigeria. It argues that the provided incentives penalize economic growth during pre-trade liberalization eras, but stimulated a rapid increase in total factor productivity during the post-liberalization period of 2000 to 2014. The trend analysis shows that Nigeria maintained high tariff walls in economic regulation eras which became low in post liberalization era. The protections were in favor of infant industries, which were mainly appendages of multinationals but against imports of competing food and finished consumer products. The trade openness index confirms the undue exposure of Nigeria’s economy to the vagaries of international market shocks; while banking sector recapitalization and new listing of telecommunications companies deepened the financial markets in post-liberalization era. The structure of economic incentives was biased in favor of construction, trade and services, but against the real sector despite protectionist policies. Total Factor Productivity (TFP) estimates show that the Nigerian economy suffered stagnation in pre-liberalization eras, but experienced rapid growth rates in post-liberalization eras. The regression results relating trade policy incentives to TFP growth rate yielded a significant but negative intercept suggesting that a non-interventionist policy could be detrimental to economic progress, while protective tariff which limits imports of competing products could spur productivity gains in domestic import substitutes beyond factor growth with market liberalization. The main constraint to the effectiveness of trade policy incentives is the failure of benefiting industries to leverage on the domestic factor endowments of the nation. This paper concludes that there is the need to review the current economic transformation strategies urgently with a view to provide policymakers with a better understanding of the most viable options that could make for rapid success.
Health Expenditure and its Place in Economy: The Case of Turkey
While health is a source of prosperity for individuals, it is also one of the most important determinants of economic growth for a country. Health, by increasing the productivity of labor, contributes to economic growth. Therefore, countries should give the necessary emphasis to health services. The primary aim of this study is to analyze the changes occurring in health services in Turkey by examining the developments in the sector. In this scope, the second aim of the study is to reveal the place of health expenditures in the Turkish economy. As a result of the analysis in the dataset, in which the 1999-2013 periods is considered, it was determined that some increase in health expenditures took place and that the increase in the share of health expenditures in GDP was too small. Furthermore, analysis of the results points out that in financing health expenditures, the public sector is prominent compared to the private sector.
Usage of Military Spending, Debt Servicing and Growth for Dealing with Emergency Plan of Indian External Debt
This study investigates the relationship between external debt and military spending in case of India over the period of 1970–2012. In doing so, we have applied the structural break unit root tests to examine stationarity properties of the variables. The Auto-Regressive Distributed Lag (ARDL) bounds testing approach is used to test whether cointegration exists in presence of structural breaks stemming in the series. Our results indicate the cointegration among external debt, military spending, debt servicing, and economic growth. Moreover, military spending and debt servicing add in external debt. Economic growth helps in lowering external debt. The Vector Error Correction Model (VECM) analysis and Granger causality test reveal that military spending and economic growth cause external debt. The feedback effect also exists between external debt and debt servicing in case of India.
Economic Impact of Rana Plaza Collapse
The collapse of the infamous Rana Plaza, a multi-storeyed commercial building in Savar, near Dhaka, Bangladesh has brought with it a plethora of positive and negative consequences. Bangladesh being a key player in the export of clothing, found itself amidst a wave of economic upheaval following this tragic incident that resulted in numerous Bangladeshis, most of whom were factory workers. This paper compares the consequences that the country’s Ready Made Garments (RMG) sector is facing now, two years into the incident. The paper presents a comparison of statistical data from study reports and brings forward perspectives from all dimensions of Labour, Employment and Industrial Relations in Bangladesh following the event. The paper brings across the viewpoint of donor organizations and donor countries, the impacts of several initiatives taken by foreign organizations like the International Labour Organization, and local entities like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in order to reinforce compliance and stabilize the shaky foundation that the RMG sector had found itself following the collapse. Focus of the paper remains on the stance taken by the suppliers in Bangladesh, with inputs from buying houses and factories, and also on the reaction of foreign brands. The paper also focuses on the horrific physical, mental and financial implications sustained by the victims and their families, and the consequent uproar from workers in general regarding compliance with work safety and workers’ welfare conditions. The purpose is to get across both sides of the scenario: the economic impact that suppliers / factories/ sellers/ buying houses/exporters have faced in Bangladesh as a result of complete loss of reliability on them regarding working standards; and also to cover the aftershock felt on the other end of the spectrum by the importers/ buyers, particularly the foreign entities, in terms of the sudden accountability of being affiliated with non- compliant factories. The collapse of Rana Plaza has received vast international attention and strong criticism. Nevertheless, the almost immediate strengthening of labourrights and the wholesale reform undertaken on all sides of the supply chain, evidence a move of all local and foreign stakeholders towards greater compliance and taking of precautionary steps for prevention of further disasters. The tragedy that Rana Plaza embodies served as a much-needed epiphany for the soaring RMG Sector of Bangladesh. Prompt co-operation on the part of all stakeholders and regulatory bodies now show a move towards sustainable development, which further ensures safeguarding against any future irregularities and pave the way for steady economic growth.
Financial Inclusion from the Perspective of Social Innovation: The Case of Colombia
Financial inclusion has become a crucially important
factor in debates on economic inequality posing challenges to the
financial systems of countries around the world. Nowadays
governments and banks are concerned about creating products that
allow access to wide sectors of the population. The creation of
banking products by the financial sector for people with low incomes
tends to lead to improvements in the quality of life of vulnerable parts
of the population. In countries with notable social and economic
inequalities, financial inclusion is a key aspect for equitable
economic growth. This study is based on the case of Colombia, which is a country
with a strong record of economic growth over the past decade.
Nevertheless, corruption, unemployment, and poverty contribute to
uncertainty regarding the country’s future growth prospects. This study wants to explain the situation of financial exclusion and
financial inclusion with respect to the Colombian case. Financial
inclusion is going to be studied from the perspective of social
Sectoral Energy Consumption in South Africa and Its Implication for Economic Growth
South Africa is in its post-industrial era moving from
the primary and secondary sector to the tertiary sector. The study
investigated the impact of the disaggregated energy consumption
(coal, oil, and electricity) on the primary, secondary and tertiary
sectors of the economy between 1980 and 2012 in South Africa.
Using vector error correction model, it was established that South
Africa is an energy dependent economy, and that energy (especially
electricity and oil) is a limiting factor of growth. This implies that
implementation of energy conservation policies may hamper
economic growth. Output growth is significantly outpacing energy
supply, which has necessitated load shedding. To meet up the excess
energy demand, there is a need to increase the generating capacity
which will necessitate increased investment in the electricity sector as
well as strategic steps to increase oil production. There is also need to
explore more renewable energy sources, in order to meet the growing
energy demand without compromising growth and environmental
sustainability. Policy makers should also pursue energy efficiency
policies especially at sectoral level of the economy.
The External Debt in the Context of Economic Growth: The Sample of Turkey
In developing countries, one of the most important
restrictions about the economic growth is the lack of national savings
which are supposed to finance the investments. In order to overcome
this restriction and achieve the higher rate of economic growth by
increasing the level of output, countries choose the external
borrowing. However, there is a dispute in the literature over the
correlation between external debt and economic growth. The aim of
this study is to examine the effects of external debt on Turkish
economic growth by using VAR analysis with the quarterly data over
the period of 2002:01-2014:04. In this respect, Johansen
Cointegration Test, Impulse- Response Function and Variance
Decomposition Tests will be used for analyses. Empirical findings
show that there is no cointegration in the long run.
Governance and Economic Growth: Evidence of Ten Asian Countries
This study utilizes a frequency domain approach over
the period of 1996 to 2013 to examine the causal relationship between
governance and economic growth in ten Asian countries, which have
different levels of democracy; classified as “Free”, “Partly Free”, and
“Not Free” countries. The empirical results show that there is no
Granger causality running from governance to economic growth in
“Not Free” countries and “Partly Free” countries with the exception of
Singapore. As for “Free” countries such as South Korea and Taiwan,
there is a one-way causality running from governance to economic
growth. The findings of this study indicate that policy makers in South
Korea, Taiwan, and Singapore could use governance index to improve
their predictions of the future economic growth.
Consumer Market for Mineral Water and Development Policy in Georgia
The paper discusses mineral water consumer market
and development policy in Georgia, the tools and measures, which
will contribute to production of mineral waters and increase its
The paper studies and analyses current situation in mineral water
production sector as well as the factors affecting increase and
reduction of its export. It’s noted that in order to gain and maintain
competitive advantage, it’s necessary to provide continuous supply of
high quality goods with modern design, open new distribution
channels to enter new markets, carry out broad promotional activities,
organize e-commerce. Economic policy plays an important role in
protecting markets from counterfeit goods. The state also plays an
important role in attracting foreign direct investments. Stable
business environment and export oriented strategy is the basis for the
country’s economic growth.
Based on the research, the paper suggests the strategy for
improving competitiveness of Georgian mineral waters; relevant
conclusions and recommendations are provided.
Relations between Human Capital Investments and Business Excellence in Croatian Companies
Living today in turbulent business environment forces
companies to distinguish from each other, securing sustainable
competitive growth and competitive advantage. The best possible
solution is to invest (effort and financial resources) within
companies’ different practices of human resource management
(HRM), more specifically in employees’ knowledge, skills and
abilities. Applying this approach companies will create enviable level
of human capital securing its economic growth. Employees become
human capital for their employers at the moment when they
contribute with their own knowledge and abilities in creating material
and non-material value of the company. The main aim of this
research is to explore the relations between human capital
investments and business excellence of Croatian companies.
Furthermore, the differences in the level of human capital
investments with regard to several companies’ characteristics (e.g.
size of the company, ownership and type of the industry) are
The Relationship of Private Savings and Economic Growth: Case of Croatia
The main objective of the research in this paper is to empirically assess the causal relationship of private savings and economic growth in the Republic of Croatia. Households’ savings are approximated by household deposits in banks, while domestic income is approximated by industrial production volume indices. Vector Autoregression model and Granger causality tests are used to in order to analyse the relationship among private savings and economic growth. Since ADF unit root tests have shown that both mentioned series are non stationary at levels, series are first differenced in order to become stationary. Therefore, VAR model is estimated with percentage change in private savings and percentage change in domestic income, which can be interpreted as economic growth in case of positive percentage change in domestic income. The Granger causality test has shown that there is no causal relationship among private savings and economic growth in Croatia. The impulse response functions have shown that the impact of shock in domestic income on private savings change is stronger than the impact of private saving on growth. Variance decompositions show that both economic growth and private saving change explain the largest part of its own forecast variance. The research has shown that the link between private savings economic and growth in Croatia is weak, what is in line with relevant empirical research in small open economies.
How Do Crisis Affect Economic Policy?
After recession that began in 2007 in the United States and subsequently spilled over the Europe we could expect recovery of economic growth. According to the last estimation of economic progress of European countries, this recovery is not strong enough. Among others, it will depend on economic policy, where and in which way, the economic indicators will proceed. Economic theories postulate that the economic subjects prefer stably, continual economic policy without repeated and strong fluctuations. This policy is perceived as support of economic growth. Mostly in crises period, when the government must cope with consequences of recession, the economic policy becomes unpredictable for many subjects and economic policy uncertainty grows, which have negative influence on economic growth. The aim of this paper is to use panel regression to prove or disprove this hypothesis on the example of five largest European economies in the period 2008–2012.
Factors Contributing Towards Technology Development in Small Firms
The importance of MSMEs in India became crucial in rural areas because it promoted economic growth. MSMEs play a significant role in the economic growth of the country owing to production, exports and employment. Technology development reflect a critical way in which organization respond to either technological or market challenges. The present survey examines the characteristics of technology development in MSMEs. The results show that Indian MSMEs do not co-operate with universities and R&D institutes. Government policies also affect the technology development activities. The awareness about the R&D infrastructure is very low as shown by the results in the study. There is a need to understand and assess the real needs of the MSMEs and accordingly devise approaches that ensure their sustainable growth.
The Link between Money Market and Economic Growth in Nigeria: Vector Error Correction Model Approach
The paper examines the impact of money market on economic growth in Nigeria using data for the period 1980-2012. Econometrics techniques such as Ordinary Least Squares Method, Johanson’s Co-integration Test and Vector Error Correction Model were used to examine both the long-run and short-run relationship. Evidence from the study suggest that though a long-run relationship exists between money market and economic growth, but the present state of the Nigerian money market is significantly and negatively related to economic growth. The link between the money market and the real sector of the economy remains very weak. This implies that the market is not yet developed enough to produce the needed growth that will propel the Nigerian economy because of several challenges. It was therefore recommended that government should create the appropriate macroeconomic policies, legal framework and sustain the present reforms with a view to developing the market so as to promote productive activities, investments, and ultimately economic growth.
Increase Success by Decreasing Admission for Maths– Fairytale or Reality?
South Africa is facing a crisis with not being able to produce enough graduates in the scarce skills areas to sustain economic growth. The crisis is fuelled by a school system that does not produce enough potential students with Mathematics, Accounting and Science. Since the introduction of the new school curriculum in 2008, there is no longer an option to take pure maths on a standard grade level. Instead, only two mathematical subjects are offered: pure maths (which is on par with higher grade maths) and mathematical literacy. It is compulsory to take one or the other. As a result, lees student finishes Grade 12 with pure mathematics every year. This national problem needs urgent attention if South Africa is to make any headway in critical skills development as mathematics is a gateway to scarce skills professions. Higher education institutions initiated several initiatives in an attempt to address the above, including preparatory courses, bridging programmes and extended curricula with foundation provisions. In view of the above, and government policy directives to broaden access in the scarce skills areas to increase student throughput, foundation provision was introduced for Commerce and Information Technology programmes at the Vaal Triangle Campus (VTC) of North-West University (NWU) in 2010. Students enrolling for extended programmes do not comply with the minimum prerequisites for the normal programmes. The question then arises as to whether these programmes have the intended impact? This paper reports the results of a two year longitudinal study, tracking the first year academic achievement of the two cohorts of enrolments since 2010. The results provide valuable insight into the structuring of an extended programme and its potential impact.
European Union Funds at Public Universities in the Czech Republic – Example of Promoting Human Resources for New Research Infrastructure
The paper focuses on the implementation phase of the
strategy of the European Union and the national strategy of the
Czech Republic to promote academic and research staff with the
potential to produce results that provide innovation useful for
economic growth. It deals with the use of financial resources of the
Operational Program Education for Competitiveness at the
University of West Bohemia in Pilsen. The author presents an
example of two strategic projects in the field of human resources –
Excellence in Human Resources as a Source of Competitiveness and
New Excellence of Human Resources. The subject of this paper is the
potential contribution of newly recruited postdoctoral within these
projects for the University of West Bohemia in Pilsen and its internal
Housing Rehabilitation as a Means of Urban Regeneration and Population Integration
The proposed paper examines strategies whose aim is
to counter the all too often sighted process of abandonment that
characterizes contemporary cities. The city of Nicosia in Cyprus is
used as an indicative case study, whereby several recent projects are
presented as capitalizing on traditional cultural assets to revive the
downtown. The reuse of existing building stock as museums,
performing arts centers and theaters but also as in the form of various
housing typologies is geared to strengthen the ranks of local residents
and to spur economic growth. Unlike the examples from the 1960s,
the architecture of more recent adaptive reuse for urban regeneration
seems to be geared in reinforcing a connection to the city where the
buildings often reflect the characteristics of their urban context.
Corruption, Economic Growth, and Income Inequality: Evidence from Ten Countries in Asia
This study utilizes the panel vector error correction
model (PVECM) to examine the relationship among corruption,
economic growth, and income inequality experienced within ten Asian
countries over the 1995 to 2010 period. According to the empirical
results, we do not support the common perception that corruption
decreases economic growth. On the contrary, we found that corruption
increases economic growth. Meanwhile, an increase in economic
growth will cause an increase in income inequality, although the effect
is insignificant. Similarly, an increase in income inequality will cause
an increase in economic growth but a decrease in corruption, although
the effect is also insignificant.
Impact of Social Environment on Economic Development in the Baltic States
The Baltic States regained independence and started
the pathway from command economy to market economy and
entered European Union at the same time. Latter internationally
recognized evaluations for the countries are diverse. The present
diversity of the Baltic States -Economic Development is a subject of
interest because of the similarities – all three are small, open
economies, countries have similar geographic location and initially
likewise historical and political backgrounds. This article explains
relationship between social environment, business environment and
economic growth. It argues that the elements of social environment
underlie more successful economic development. It researches the
causes, why Estonia has performed better in economic outcomes and
development. The article analyses selection of socio-economic
indicators of all three Baltic States – Latvia, Lithuania and Estonia
for the time period of ten years to include the influence of economic
State Economic Safety in the Conditions of Innovative Economy Formation
Innovations and innovative activity get the increasing
value for successful financial and economic activity of the countries
and regions. The level of innovative sphere development determines
place of a country or a region in world economy and forms a basis of
steady economic growth. This article is devoted to different aspects
of organization of the national economic safety in the conditions of
innovative development, its problems, risks and threats. Economy
can be considered as aspiring for transition to innovative way only
with finding of economic safety: financial independence, power
stability and technological progress. There are statistical indicators,
defining the level of economic security and factors, threatening
economic safety of the state. The research is based on the analysis of
factors and indicators in conditions of innovative development. The
paper is illustrated by the examples of possible estimated system of
the economic safety level.
The Impact of Revenue Gap on Economic Growth: A Case Study of Pakistan
This study employs auto-regressive distributed lag (ARDL) bounds approach to cointegration for long run and errorcorrection modeling (ECM) for short run analysis to examine the relationship between revenue gap and economic growth for Pakistan using annual time series data over the period 1980 to 2008. The short and long run results indicate that revenue gap is statistical significant and negatively effect economic growth. The significant and negative coefficient of error correction term in ECM indicates that after a shock, the long rum equilibrium will again converge towards equilibrium about 10.406 percent within a year.
Energy Consumption and Economic Growth in South Asian Countries: A Co-integrated Panel Analysis
This study examines causal link between energy use and economic growth for five South Asian countries over period 1971-2006. Panel cointegration, ECM and FMOLS are applied for short and long run estimates. In short run unidirectional causality from per capita GDP to per capita energy consumption is found, but not vice versa. In long run one percent increase in per capita energy consumption tend to decrease 0.13 percent per capita GDP. i.e. Energy use discourage economic growth. This short and long run relationship indicate energy shortage crisis in South Asia due to increased energy use coupled with insufficient energy supply. Beside this long run estimated coefficient of error term suggest that short term adjustment to equilibrium are driven by adjustment back to long run equilibrium. Moreover, per capita energy consumption is responsive to adjustment back to equilibrium and it takes 59 years approximately. It specifies long run feedback between both variables.
Industrial Development, Environment And Occupational Problems: The Case Of Iran
There are three distinct stages in the evolution of
economic thought, namely:
1. in the first stage, the major concern was to accelerate
economic growth with increased availability of material
goods, especially in developing economies with very low
living standards, because poverty eradication meant faster
2. in the second stage, economists made distinction between
growth and development. Development was seen as going
beyond economic growth, and bringing certain changes in
the structure of the economy with more equitable
distribution of the benefits of growth, with the growth
coming automatic and sustained.
3. the third stage is now reached. Our concern is now with
“sustainable development", that is, development not only
for the present but also of the future.
Thus the focus changed from “sustained growth" to “sustained
development". Sustained development brings to the fore the long
term relationship between the ecology and economic development.
Since the creation of UNEP in 1972 it has worked for
development without destruction for environmentally sound and
sustained development. It was realised that the environment cannot
be viewed in a vaccum, it is not separate from development, nor is it
competing. It suggested for the integration of the environment with
development whereby ecological factors enter development planning,
socio-economic policies, cost-benefit analysis, trade, technology
transfer, waste management, educational and other specific areas.
Industrialisation has contributed to the growth of economy of
several countries. It has improved the standards of living of its people
and provided benefits to the society. It has also created in the process
great environmental problems like climate change, forest destruction
and denudation, soil erosion and desertification etc.
On the other hand, industry has provided jobs and improved the
prospects of wealth for the industrialists. The working class
communities had to simply put up with the high levels of pollution in
order to keep up their jobs and also to save their income.
There are many roots of the environmental problem. They may be
political, economic, cultural and technological conditions of the
modern society. The experts concede that industrial growth lies
somewhere close to the heart of the matter. Therefore, the objective
of this paper is not to document all roots of an environmental crisis
but rather to discuss the effects of industrial growth and
We have come to the conclusion that although public intervention
is often unnecessary to ensure that perfectly competitive markets will
function in society-s best interests, such intervention is necessary
when firms or consumers pollute.