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This paper explores whether happiness-led growth policies implemented in some countries are viable for achieving better economic well-being proxied by GDP per capita using a panel dataset covering 104 countries from 2006 to 2018. While past studies showed that economic growth promotes happiness, this paper applied the panel Granger causality test to show that GDP per capita is also determined by happiness. Accordingly, the pooled ordinary least squares, random-effects model, fixed-effects model, and two-step generalized method of moments were employed to estimate the effect of changes in happiness on economic growth. The empirical results suggest that economic growth of 1% to 3% can be obtained by increasing happiness. The positive effect of happiness is about four times greater in developed countries than in developing countries. This paper reveals that happiness should be included in conventional economic growth models to achieve a holistic approach in designing development policies. [ABSTRACT FROM AUTHOR]

This paper examined finance-growth nexus in the finance industry and the influencing factors of economic indicators which deliberate on the performance of the Solow Growth model to prove the actuality of financial development (FD) inside the economic growth (EG) model, based on the regional data from 1980 to 2017 in Africa. We applied the econometric method of GMM style panel vector autoregressive (PVAR) and panel quantile regression (PQR). With the optimal finance-growth outcome, the review shows that the economic indicators influence the finance-growth nexus. The quantile results show that high economic indicators help to strengthen the finance-growth nexus, whereas low economic indicators hinder it. The GMM style PVAR results present a mixed effect in terms of the connection and marginal significance, indicating that FD has a varied impact on economic growth. Last, the granger causality results show a two-way causal association amid finance-growth in Western, Central, Eastern, and Southern African economies and a unidirectional causal link of finance-growth in Northern Africa. The policy conclusion is that to gain the long-term economic benefits of FD, African countries should strive for low and steady economic stability. To attain the required economic stability, it may be important to use suitable fiscal and monetary policies. [ABSTRACT FROM AUTHOR]

This paper analyzes the nexus between energy consumption, financial development, and economic growth in twenty-one (21) sub-Saharan African (SSA) nations by using the nonlinear autoregressive distributed lag (NARDL) framework from 1990Q1 to 2014Q4. First, the study reveals that energy consumption and financial development have asymmetrical impacts on economic growth in most countries in the short and long term. Second, positive shocks to financial development favor economic growth in only a few nations compared to the negative shocks in the short term, whereas they have mixed effects in the long term. Third, we found that adverse shocks to energy consumption boost economic growth in several nations in the short term, unlike the positive shocks, but the scenario has reversed in the long term. We also found that gross fixed capital formation and labor force remain key factors promoting economic growth in many SSA countries, in contrast to the mixed effects of trade openness over time. Accordingly, our study recommends implementing energy-saving policies in specific SSA countries to stimulate sustainable development. Policymakers must embrace an effective credit allocation to the private sector supporting productive investments. Governments should also optimize domestic investments in physical capital, upgrade the labor force, and implement efficient strategies in international trade. These policy recommendations need to be implemented according to the unique socio-economic characteristics of each SSA country. [ABSTRACT FROM AUTHOR]

This paper explored the effects of urbanization and industrial structure change in contemporary China using the data of 26 cities in the Yangtze River Delta (YRD) between 2006 and 2017. We analyzed the spatial characteristics of the regional economic growth by calculating the Global Moran's I and the Local Moran's I. We investigated the relationship between urbanization, industrial structure upgrade, and economic growth through a spatial econometric approach and tested the panel thresholds. Our findings included: (1) spatial autocorrelation is an important driver of urbanization and industrial structure upgrade; (2) the upgrade of the industrial structure leads to a structural economic deceleration which slows down the regional economic growth in the YRD; however, the positive effect of industrial structure upgrade on the regional economic growth still exists; (3) a synergy effect of New-type Urbanization and industrial structural upgrade positively affects the economic growth in the YRD; (4) the empirical results indicate that only when urbanization and industrial structural upgrade develop coordinately, will they play better roles in promoting the economic growth. [ABSTRACT FROM AUTHOR]

This article examines the relevant relationship between transport infrastructure and foreign direct investment (FDI) in explaining economic growth from the road and air transport perspectives in Ethiopia over the period 1981 to 2017. To determine the economic effect of transport infrastructure, first, we assess the co-integration between transport infrastructure and economic growth using the autoregressive distributed lag bound test model. Once co-integration is established, the elasticity of economic growth is estimated using Ordinary Least Square estimation techniques. Second, we perform the hierarchical multiple regression to estimate the mediation impact of FDI in the association between transport infrastructure and economic growth. Initially, we have standardized all variables. Then, we estimate the mediating effect of FDI. To validate the consistency of our method, we check the robustness of our model. The obtained result shows that transport infrastructure has a significant long-term economic effect, and the short-run dynamics show the speed of adjustment is corrected by 81% each year toward the long-run path, and thereby transport infrastructure attracts FDI in Ethiopia. Moreover, FDI plays a significant mediating role, thereby increasing the economic growth performance of the country in Ethiopia. The study extends previous research and increases the validity of the findings by investigating the economic impact of transport infrastructure in the Ethiopian context. Moreover, this study is the first research study that explores the mediating role of FDI in the relationship between transport infrastructure and economic growth in Ethiopia. [ABSTRACT FROM AUTHOR]

Vietnam has transitioned from one of the poorest countries globally into a middle-income nation in three decades since the 1986 Economic Renovation (Doi Moi). However, this economic reform miracle has been widely supported by extensive urbanization and industrialization, leading to severe deterioration in environmental quality. While the effect of economic growth on environmental degradation has been extensively investigated, previous studies on Vietnam have largely ignored the role of urbanization and industrialization, the two key pillars in supporting economic growth in Vietnam. As such, this study focuses on the effect of urbanization and industrialization on environmental quality from 1985 to 2021 using the ARDL estimation. Our overall finding confirms that urbanization in Vietnam leads to further environmental degradation in the short run. However, this negative effect disappears in the long run. However, industrialization deteriorates environmental quality in both the short- and long-run. Our empirical results confirm the validity of the environmental Kuznets curve (EKC) hypothesis in the presence of urbanization and industrialization in the Vietnamese context in the long run, implying that Vietnam's environmental quality may be improved in the long run when a certain income level is met. These findings imply that the Vietnamese government should reconsider the priority of its industrialization strategy to ensure that sustainable economic growth is not at the expense of environmental quality in the long run. [ABSTRACT FROM AUTHOR]

This study focuses on how remittance outflow shapes the economic growth (EG) performance in leading remittance-sending nations, considering the role of trade, ICT, and human and physical capital as control variables. It utilizes panel data from 1990 to 2021 and utilizes second-generation econometric methods. Our findings reveal a cointegration among variables and show that remittance outflow is growth-enhancing in leading remittance-paying countries. Trade, capital formation, and ICT deployment positively impact economic performance and appear to be a blessing for EG. While the role of HC is insignificant, indicating that it does not affect EG. The outcome suggests that remittance outflow is not an economic problem for the remittance-paying nations; instead, they must utilize the talent and skills of migrant labor to achieve EG. Our results suggest that policymakers should concentrate on using the talent and skills of migrant labor, consider trade as a source of growth, develop policies to improve the skills and competencies of the local workforce and deploy and utilize ICT facilities effectively to achieve sustainable EG. [ABSTRACT FROM AUTHOR]

The focus of governments around the globe to accelerate economic growth through market-driven policies has resulted merely in increasing GDP while deterring certain groups from becoming a part of their development agenda. This turned the focus of leading international developmental communities toward the concept of inclusive growth that strives to reduce poverty and inequality by creating equitable and productive opportunities for all sections of society, including the often-excluded ones. Considering its profound and wide-ranging impacts on the destination's economy, the tourism industry has been identified as a harbinger of inclusive growth. The conception of tourism-led inclusive growth remains contended in the academic literature. Therefore, as an attempt to contribute to the existing debate, the present study has been undertaken to explore the rapport between tourism and inclusive growth by systematically reviewing the scientific literature and the evolutionary nuances of this research field. The literature for this purpose was derived from the two most renowned databases viz. Scopus and Web of Science. The content analysis of 27 systematically selected articles performed in the present study highlighted a set of seven noteworthy research areas/themes and a variety of topics under each theme that shape the knowledge structure of the underlying research field. The overall analysis calls for further investigations in the tourism sectors of lowincome nations to find significant empirical evidence that may validate the hypothesis of tourism-led inclusive growth and signals a need for evidence-based frameworks to harness inclusive growth through tourism development. [ABSTRACT FROM AUTHOR]

While entrepreneurship has been extensively studied worldwide, scant empirical research evidence has been found in Vietnam. Building upon the institutional economics perspective, this study empirically investigates the tripartite relationship between formal institutions, entrepreneurial activity, and socio-economic outcomes. A fixed effects model is employed to test the proposed hypotheses using a 5-year strong balanced panel data. The findings indicate that provinces are heterogeneous along multiple dimensions of institutional quality, leading to different entrepreneurial rates. Concurrently, it highlights the vital role of entrepreneurial activity in explaining the differences in economic performance, unemployment rate, and living standards across Vietnam's regions. The results also confirm that the entrepreneurial rate exerts a mediating effect on the relationship between institutional quality and socio-economic outcomes. This study contributes to the entrepreneurial literature in Vietnam and provides practical implications for Vietnamese policymakers. [ABSTRACT FROM AUTHOR]

We investigate the empirical nexus between financial inclusion and economic growth for an extended sample of 21 Asian countries spanning over a period from 2004 to 2019. Further, we also conducted a sub-sample analysis by dividing the overall samples into developed and developing countries. Our results reveal a significant positive long-term impact of financial inclusion on economic growth in Asia. Our pair-wise causality test shows bidirectional causality between financial inclusion and economic development. Our robust results are consistent across various estimation techniques. Our findings suggest that the influence of financial inclusion on economic growth is more pronounced in developing countries compared to developed countries. Our results hold across subsamples. These findings posit important policy insights to enable the policy-makers in designing policies that ensure efficient and inclusive financial system on an equitable basis to achieve sustainable economic growth. [ABSTRACT FROM AUTHOR]

Though the impact of foreign aid on economic growth has been examined in several studies, the roles of human and physical capital in aid-growth nexus has not been investigated. This is important because the effectiveness of foreign aid could be contingent upon the absorption capacity of the recipient country. We fill this research gap by examining the moderating roles of human and physical capital on aid-growth nexus in Nigeria during 1980 to 2020. Our study deploys the Autoregressive Distributed Lag approach on the interaction models. It shows that the variables are cointegrated. Though aid has a positive impact on growth, human and physical capital have significant moderating roles on the impact of aid on growth. Precisely, the marginal effect of aid on growth varies with the levels of human and physical capital. However, if human and physical capital surpass the threshold levels of 55% and 65%, respectively, an increase in aid cannot accelerate growth. These findings are robust to alternative proxies, structural breaks as well as diagnostic tests. This research implies that, given the requisite levels of human and physical capital, foreign aid can complement domestic capital to enhance growth. Hence, for nations to obtain the long-term benefits of aid, they should create the enabling environment by adequately investing in human and physical capital to attain sustainable economic development. [ABSTRACT FROM AUTHOR]

This study examines the complex interaction between Financial Development (FD) and Economic Growth (EG) in Algeria from 1980 to 2020 using nonlinear modeling techniques. We apply the Non-Linear Causality test with Transfer Entropy, a novel method in this literature, to confirm the nonlinear causality from FD to EG. We also use the Nonlinear Autoregressive Distributed Lag (NARDL) model and the Cumulative Dynamic Multiplier (CDM) to establish the long-run equilibrium and the short-run dynamic relationship between FD and EG. The NARDL results support the Transfer Entropy findings and show that FD has a symmetric impact on EG in both the short and long term. Positive and negative shocks on FD affect EG similarly and the imbalance is corrected in about 6 years. This study provides useful information for policymakers and stakeholders to design policies that promote (EG) and development in Algeria by enhancing FD and mitigating shocks. JEL Codes : C45, C32, E44, O16, O53 Plain Language Summary: Finance and economy in Algeria: a stable long-term relationship with short-term shocks We wanted to know how the financial sector and the economy affect each other in Algeria over the past 40 years. We used new and advanced methods to analyze the data. We found that the financial sector and the economy have a one-way relationship that is stable in the long run but can change in the short run due to shocks. We also found that the financial sector and the economy adjust to each other in about 6 years after a shock. Our study can help policymakers and stakeholders improve the financial sector and the economy in Algeria. [ABSTRACT FROM AUTHOR]

This study examines the association between fiscal sustainability indicators and Egypt's economic growth from 1980 to 2018. Fiscal sustainability refers to a government's ability to generate sufficient revenue to cover its costs and debt obligations in the long run without excessive borrowing or money creation. Egypt's economic growth has slowed, raising questions about fiscal sustainability. This study aimed to analyze the dynamic relationship between fiscal sustainability indicators (government revenue, expenditure, external debt) and economic growth in Egypt. The autoregressive distributed lag (ARDL) bounds testing approach and unrestricted error correction model were applied to annual data from 1980 to 2018. A dynamic link was found between fiscal sustainability indicators and economic growth. Government expenditure and external debt significantly impacted economic expansion in the long term, while government revenue did not. Fiscal sustainability, measured by growth in total government expenses, external debt obligations, and revenue, significantly influences Egypt's economic growth. Prudent fiscal management is crucial for sustained economic development. Policymakers should focus on controlling government spending, limiting external debt, and improving revenue generation to promote long-term economic growth in Egypt. Fiscal sustainability must balance critical investments in public services. Carefully managing fiscal deficits is key to unleashing Egypt's economic potential. This study provides valuable insights into the connection between fiscal policy and economic growth in Egypt, informing policymakers' decisions. Plain Language Summary: Economic development potential in Egypt The research examines the relationship between long-term fiscal policy and economic growth. We used data from 1980 until 2018 to determine Egypt's capacity to cover its spending. The slowdown of economic development is a major reason for this research. The development trend of a country is an important signal of its further potential of being sustainable. Added value is crucial for ensuring equitable behavior across generations. Multiplying debts instead will diminish the capacity of the next generation to benefit from the same conditions as the generation before. Policymakers should decide on the implementation of strategic goals for this to happen. Our results highlight a dynamic link between fiscal sustainability indicators and economic growth. In the long term, government expenditure and external debt significantly impact economic expansion. Government revenue has a different impact. Prudent fiscal management is crucial for sustained development. Policymakers should focus on controlling government spending, limiting external debt, and improving revenue generation to promote long-term economic growth in Egypt. Additionally, fiscal sustainability must balance critical investments in public services. Carefully managing fiscal deficits is key to unleashing Egypt's economic potential. [ABSTRACT FROM AUTHOR]

Sustainable economic growth and reducing unemployment stood at the heart of each monetary policy. Despite controversial discussions among scholars, Okun's Law remains a valuable tool for measuring the relationship between economic growth and the unemployment rate. The study covers the six Western Balkan (WB) countries using quarterly unemployment and economic growth data from 2005 to 2019. The results were obtained from the Vector Autoregressive Model, Granger Causality Test, and Impulse Response Function. The findings show that the GDP growth rate has no influence on the unemployment rate in the case of six Western Balkan countries. From the policy perspective, the outcomes of this study provide valuable indications for the policymakers in WB countries on the importance of economic growth in reducing the unemployment rate. [ABSTRACT FROM AUTHOR]

Women's empowerment (WE) is one of the main challenges to economic development in African countries. Scholars have criticized national development initiatives to focus on well-being issues and treat women as the passive beneficiaries of welfare-enhancing assistance. This study uses panel fully modified least square and vector error correction model to investigate the impact of interactive effects of WE and financial development (FD) on employment and economic growth based on the World Bank income group as follows: upper-middle-income countries (UMIC), lower-middle-income countries (LMIC), and low-income countries (LIC). The findings show that the interactive effects of WE and FD on output and employment is not significant in the long run in LMIC and LIC. Despite the significance of these interactive effects in UMIC, the coefficient is less than one. Also, the causality result in the UMIC shows feedback between WE and economic growth. And that FD has a direct influence on growth in LMIC, while WE has a direct influence on employment in LIC. [ABSTRACT FROM AUTHOR]

There is a difference between the ways investment in general and advanced education affects human capital accumulation. Based on the endogenous economic growth model, this study considered the impact of hierarchical education investment on human capital accumulation and economic growth. Using Provincial Panel Data, the empirical analysis found that only investment in general education had a significant effect on economic output per capita, while the effect of investment in advanced education was insignificant. Increasing investment in general education could promote technological progress. However, increasing investment in advanced education does not, which means that the human capital accumulated as a result of advanced education does not have the expected benefit. Furthermore, the expansion of enrolment in colleges and universities promoted the effect of advanced education on economic output and technological progress. [ABSTRACT FROM AUTHOR]

This study intends to examine the influence of trade openness on economic growth in the Kingdom of Saudi Arabia including government consumption and labor force as control variables. Using time-series yearly data from 1985 to 2019, the study applies the Auto-Regressive Distributed Lag (ARDL) cointegration regression and the Toda-Yamamoto (T-Y) Granger causality check to achieve the objective of the study. The ARDL model estimation discloses the positive contribution of trade openness and labor force to economic growth in the short and long run as well; government consumption causes economic growth positively in the short-run, while in the long its impact is insignificant run. The T-Y Granger causality test outcomes have demonstrated several bidirectional and unidirectional causalities. There are three feedback relations; "trade openness-economic growth," "economic growth-government consumption," and "government consumption-labor forces." Three are an equal number of unidirectional causalities; "labor forces to economic growth," "labor forces to trade openness," and "trade openness to government consumption." The outcomes have implications for the policymaker to boost the Kingdom's trade openness to benefit further from trade, rationalize its government's size to promote private sector growth to raise the latter's effective contribution to GDP, and accelerate income growth. [ABSTRACT FROM AUTHOR]

The study examines the dimension of financial inclusion from the beneficiaries' perspective (on the demand side). In addition, the present study seeks to determine the relationship between financial inclusion and the disposable income of Pakistani households. The results revealed four significant dimensions to predict financial inclusion (access, availability, usage, and cost). Furthermore, the results also revealed that financial inclusion significantly and directly and indirectly impacts disposable income. Thus, this research emphasizes that inclusion in the formal financial system can enhance the disposable income of low-income urban households and assist them in combating poverty. Further, this investigation is among the earliest to provide a demand-side perspective to measure the financial inclusion dimensions of the "most financially excluded" group (low-income urban households in Pakistan). Besides, this study advances the literature on financial inclusion and disposable income. It attempts to adequately bridge the gap in the literature by examining the relationship between financial inclusion and disposable income among low-income urban households by employing the structural equation modeling approach. [ABSTRACT FROM AUTHOR]