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By sustaining the required capital and investment, the financial sector plays a critical role in achieving economic growth and stability. This paper conducts a comprehensive examination of the relationships between stock market development and economic growth in 11 post-socialist countries and China. Unbalanced panel data from selected countries from 1995 to 2020 were used for this study. We wanted to disclose the cointegration of crucial variables in assessing Granger causalities using the Vector Auto-Regressive (VAR) model. Our findings confirm the Neutrality Hypothesis (NLH) when we investigated the existence of an independent association between Economic Growth (EG) and the Composite Index of Stock Market Development (SMD). The study's recommendations emphasize the significance of changing economic policies to account for disparities in economic growth and stock market development to ensure sustainable development in the selected countries. [ABSTRACT FROM AUTHOR]

A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2O22. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private -sector investment, which can sustain long-term economic growth. [ABSTRACT FROM AUTHOR]

This study examines the impact and its mechanisms of green finance on economic growth by using the green finance reform and innovation pilot zone (GFRIPZ) as a quasi‐natural experiment. Based on the panel data of 30 provinces in China from 2011 to 2019, we employ a difference‐in‐differences (DID) model and find that the GFRIPZ's construction has a positive effect on economic growth, resulting in real GDP growth of 2.2% in the pilot zones. Mechanism analysis shows that the GFRIPZ policy promotes economic growth by stimulating green technological innovation and increasing green fiscal expenditures. Further, the moderating effect result reveals that the more powerful the environmental regulation, the better the economic growth effect of the GFRIPZ policy. Additionally, heterogeneity analysis indicates that the GFRIPZ policy can contribute more in accelerating economic growth in Zhejiang, Jiangxi and Xinjiang. Our findings provide the latest empirical evidence that green finance promotes economic growth, as well as cross‐references for policymakers to scientifically execute green monetary policies and effectively balance green development and economic growth. [ABSTRACT FROM AUTHOR]

Amidst global sustainability challenges, green finance emerges as a crucial instrument for advancing sustainable development, garnering increasing attention for its pivotal role in fostering high-quality economic development (HQED), particularly within the dynamic economic landscape of China. This study delves into the nexus between green finance and HQED across 30 Chinese provinces from 2012 to 2021. Employing the entropy method, indices for green finance and HQED index system are calculated, and their interaction is analyzed through a panel data model, incorporating tests for moderating effects of FinTech and green technological innovation, as well as assessing the heterogeneity across diverse regions. The findings highlight green finance's significant role in enhancing HQED, with notable regional disparities. Specifically, the eastern region shows the strongest impact, followed by the central region, while the western and northeastern regions exhibit weaker influences. The study also identifies FinTech and green technological innovation as pivotal moderators, amplifying green finance's positive effect on HQED. These insights underscore green finance's importance in driving sustainable economic growth and highlight the necessity for region-specific strategies to optimize its impact. Policy recommendations based on these findings include prioritizing the development of green finance, formulating region-specific strategies, and leveraging the catalytic roles of FinTech and green technological innovation to enhance the efficacy of green finance in achieving HQED. [ABSTRACT FROM AUTHOR]

The objective of this study was to establish the relationship between certain institutional variables and the effectiveness of fiscal decentralisation in Latin America. To fulfil this objective, we took a sample of 15 Latin American countries for the years 1996 to 2020 to estimate the logarithm of GDP per capita based on the level of fiscal decentralisation, as well as its interaction with six institutional variables plus three control variables. The results show that institutional variables always modulate the effects of fiscal decentralisation, in most cases significantly and negatively, the exceptions being accountability with a positive result and government effectiveness with a non-significant result. It was concluded that in the presence of weak regulations, political conflicts, and corruption, fiscal decentralisation can worsen social or economic circumstances in Latin America. [ABSTRACT FROM AUTHOR]

Using a two-step approach GMM, this study examines the short- and long-term effects of fiscal deficit on the economic growth of 42 Sub-Saharan African nations between 2011 and 2021. The World Development Index, the most reliable source, is where the panel data is taken from. Using the Levin-Lin-Chu and Hadri LM tests for unit root, it was determined that there is no risk of a random walk in the data. The study's findings indicate that while the fiscal deficit has short-term, positive, and significant benefits on the economic growth of SSA countries, it has long-term, negative repercussions. According to the system GMM's results, an increase in the fiscal deficit of SSA countries is linked to a short-term increase in economic growth of 0.036 percent, while an increase in the fiscal deficit of one percentage point is linked to a long-term decline in economic growth of SSA countries of 0.013 percent, holding all other factors constant. The study's findings also showed that the budget deficit has a larger positive short-run coefficient than a negative long-run coefficient. The study also revealed that while real effective exchange rates and inflation short-term hinder economic growth, gross fixed capital creation and real interest rates are the primary drivers of economic expansion. Long-term economic growth in the SSA countries is also found to be positively and significantly impacted by gross fixed capital formation. According to the study, SSA nations should manage their fiscal deficits and, in the long run, provide more funds for gross fixed capital development. [ABSTRACT FROM AUTHOR]

The collective GDP of the G20 nations constitutes over 80% of the global GDP, making them pivotal recipients of significant economic investments in various forms including foreign direct investments. This study delves into the dynamic interplay of ICT development and foreign direct investment (FDI) and GDP nexus among the G20 economies. A comprehensive index is constructed using PCA to gauge ICT development across economies. The study further examines the relationships among FDI, ICT development, and GDP using panel data spanning from 2000 to 2019. The study finds that in the absence of interaction, FDI alone does not exhibit a statistically significant impact on GDP. However, considering the interaction between FDI and ICT, a nuanced pattern emerges. The study discerns that the influence of FDI on GDP is contingent upon the maturity of a country's ICT sector. This suggests the need for policymakers to adopt a more focused approach, tailoring strategies to leverage the interdependence of FDI and ICT for optimal economic growth. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Raising economic growth is the primary concern of most of countries especially the developing and emerging economies in order to enhance the living standard of people. However, increase in economic activities increases energy demand which rise carbon dioxide emissions and leads to environmental degradation. Technological innovations might be the remedy to overcome the issue of increased carbon dioxide emission by reducing energy use, raise energy efficiency and also push economic growth activities efficiently. In this regard, this study explores the interrelationship of technological innovation, carbon dioxide emissions, and economic growth from 1985 to 2019 in 35 Belt and Road countries. The study uses ordinary least squares, two-step system generalized method of moments, two-step difference generalized method of moments, seemingly unrelated regression, and three-stage least square models for analysis. The results indicate that technological innovations increase economic growth and enhance environmental quality. Foreign direct investment also increases economic growth while degrading environmental quality. Economic growth increases technological innovation while exerting harmful effects on the quality of the environment. The impact of trade on economic growth is positive, while financial development reduces economic growth. School enrollment has a significant and positive effect and increases technological innovation, while foreign direct investment and research and development reduce it. The results also confirm that research and development expenditures significantly reduce carbon emissions and enhance environmental quality. The findings of this study have considerable policy implications for the sample countries with respect to economic growth, technological innovations, and environmental quality. [ABSTRACT FROM AUTHOR]

This study aims to analyze the effect of banking stability, exchange rates, and external debt on economic growth in BRICS countries (Brazil, Russia, India, China, and South Africa) during the period 2011-2020. The data used in this study is panel data from five BRICS countries, obtained from the International Monetary Fund (IMF) and the World Bank. The method used is a panel data regression model using the Fixed Effect method. This model makes it possible to account for the fixed effects of time as well as the fixed effects of individual states in regression analysis. The results of the analysis show that banking stability has a significant negative influence on economic growth in BRICS countries. On the other hand, exchange rates and external debt have a significant positive impact on economic growth. These findings indicate that policies that promote banking stability, prudent exchange rate management, and effective use of external debt can support sustainable economic growth in BRICS countries. The results of the analysis show that banking stability has a significant negative influence on economic growth in BRICS countries. On the other hand, exchange rates and external debt have a significant positive impact on economic growth. These findings indicate that policies that promote banking stability, prudent exchange rate management, and effective use of external debt can support sustainable economic growth in BRICS countries. [ABSTRACT FROM AUTHOR]

Enterprise creation, destruction and evolution support the transition to modern economic growth, yet these processes are poorly understood in industrialising contexts. We investigate Imperial Russia's industrial development at the firm level by examining entry, exit and persistence of corporations. Relying on newly developed balance sheet panel data from every non-financial Russian corporation (more than 2,500 of them) between 1899 and 1914, we examine the characteristics of entering and exiting corporations, how new entrants evolved and the impact of founder identity on subsequent outcomes. Russian corporations evolved within a market environment, conditional on overcoming distortionary institutional barriers to entry that slowed the emergence of these leading firms in the Imperial economy. [ABSTRACT FROM AUTHOR]

This study aims to investigate the impact of the banking sector on economic growth and commodity prices. Through panel data analysis, the research explores the relationship between the banking sector and economic growth in Spain, France, and Romania from 2000 to 2020. The findings reveal a positive correlation between the strength of the banking sector and economic growth across these nations, underscoring its pivotal role in fostering economic expansion and subsequently improving commodity prices. Additionally, this study evaluates various regulatory measures crucial ensuring the banking sector's sustainability and preventing financial crises, including credit risk management, lending policies, liquidity constraints, and international financing and investment strategies. By analyzing the interplay between regulatory measures and banking sector performance, incorporating variables such as non-performing loans, household debt, liquid liabilities, government consumption expenditure, foreign investments, and trade openness, this research provides policymakers with valuable insights to formulate effective strategies for promoting economic stability and ensuring the sustainability and growth of the banking sector. [ABSTRACT FROM AUTHOR]

Population aging has become a social issue of concern to the whole world, and as the world's most populous country, how to cope with population aging will be a hot issue that all sectors of Chinese society must think about. This paper uses provincial panel data from 30 provinces in China from 2000 to 2021 to study the relationship between population aging and economic development based on the perspective of health expenditure. The DIFF-GMM model, the fixed effect model (FE), and fixed effect instrumental variable model (FE-IV) are used to test this study. The following two conclusions are drawn from the empirical study: (1) population aging has a significant inhibitory effect on economic development, while health expenditures have a significant promotional effect on economic development; and (2) increased health expenditures help to alleviate the negative impact of population aging on economic development. However, the deepening of population aging will likewise inhibit the positive effect of health expenditure on economic growth. Based on the conclusions of the study, it is recommended that the government and society should continue to increase spending in the field of health protection, encourage and guide residents to carry out self-care, and moderately increase personal health expenditure, to promote economic development with healthy bodies and realize the goal of "Healthy China". [ABSTRACT FROM AUTHOR]

This study investigates the relationship between Foreign Direct Investment (FDI) inflows and economic growth at sectoral levels in Bangladesh, employing a panel study framework. Utilizing sectoral-level panel data spanning six sectors from 2007–08 to 2018–19, the analysis is conducted using Panel Vector Error Correction Model (Panel VECM). Results from panel unit root tests confirm that all variables are integrated of order one I (1), indicating stationarity. The Pedroni panel co-integration test further supports the presence of co-integration among the variables. Notably, the Panel VECM reveals evidence of a unidirectional causal relationship from Real Gross Domestic Product (RGDP) to Real Foreign Direct Investment (RFDI) across all six sectors of Bangladesh. The findings underscore the significance of formulating pragmatic policies and implementing them effectively to attract FDI across sectors, thereby contributing to the overall economic growth of Bangladesh. [ABSTRACT FROM AUTHOR]

The literature has mainly focused on analyzing the relationship of remittances with economic growth and social welfare, neglecting more complex aspects where remittances can have relevant implications. To contribute to the literature, the objective of this research is to examine the dynamic relationship between remittances, capital formation, structural transformation and economic growth in 15 Latin American countries during the period 1996–2019. To meet the objective, a panel vector autoregressive regression (PVAR) model was estimated, focusing on the analysis of the impulse-response function and variance decomposition. The results show a positive effect of remittances on economic growth and capital formation and a negative effect of remittances on structural transformation for initial periods and positive for later periods, framing a non-linear relationship. In addition, it was determined that structural transformation does not have a significant impact on economic growth. Finally, it was found that capital formation has a partial positive effect on economic growth. It is concluded that public policies should generate support mechanisms for the efficient channeling of these resources so that they become engines of growth. [ABSTRACT FROM AUTHOR]

We study the effect of euro adoption on various property crimes for a group of Eurozone countries with data from 1993 to 2019. We hypothesize euro adoption has a positive association with home burglaries and robberies as the euro is relatively more valuable and mobile than pre-euro currencies. We offer a simple theoretical model to motivate the hypothesis. A dynamic panel data model is estimated by generalized method of moments (GMM) to account for endogeneity, measurement error, heteroskedasticity, and serial correlation. Our results indicate some evidence of a positive relationship between euro adoption and property crimes. Other countries considering euro adoption may find the results of our study informative. [ABSTRACT FROM AUTHOR]

Purpose: Rehabilitation is a set of services designed to increase functioning and improve wellbeing across the life course. Despite being a core part of Universal Health Coverage, rehabilitation services often receive limited public expenditure, especially in lower income countries. This leads to limited service availability and high out of pocket payments for populations in need of care. The purpose of this research was to assess the association between macroeconomic conditions and rehabilitation expenditures across low-, middle-, and high-income countries and to understand its implications for overall rehabilitation expenditure trajectory across countries. Materials and methods: We utilized a panel data set from the World Health Organization's Global Health Expenditure Database comprising the total rehabilitation expenditure for 88 countries from 2016 to 2018. Basic macroeconomic and population data served as control variables. Multiple regression models were implemented to measure the relationship between macroeconomic conditions and rehabilitation expenditures. We used four different model specifications to check the robustness of our estimates: pooled data models (or naïve model) without control, pooled data models with controls (or expanded naïve model), fixed effect models with all controls, and lag models with all controls. Log-log specifications using fixed effects and lag-dependent variable models were deemed the most appropriate and controlled for time-invariant differences. Results: Our regression models indicate that, with a 1% increase in economic growth, rehabilitation expenditure would be associated with a 0.9% and 1.3% increase in expenditure. Given low baseline levels of existing rehabilitation expenditure, we anticipate that predicted increases in rehabilitation expenditure due to economic growth may be insufficient to meet the growing demand for rehabilitation services. Existing expenditures may also be vulnerable during periods of economic recession. Conclusion: This is the first known estimation of the association between rehabilitation expenditure and macroeconomic conditions. Our findings demonstrate that rehabilitation is sensitive to macroeconomic fluctuations and the path dependency of past expenditures. This would suggest the importance of increased financial prioritization of rehabilitation services and improved institutional strengthening to expand access to rehabilitation services for populations. [ABSTRACT FROM AUTHOR]

Driven by factors such as structural economic shifts, technological breakthroughs, policy changes, and global economic transformations, China’s economic growth drivers have continuously evolved. We constructed a panel dataset encompassing 31 provinces in China from 2002 to 2021 and utilized both panel data models and panel quantile models to delve into the underlying factors driving this transition. We further investigated the varying impacts of these factors across different temporal and geographical contexts based on the stage analysis and spatial cluster analysis. The findings revealed that capital accumulation, digital economy, and technological innovation were the major drivers shaping China’s economic growth momentum transition, exhibiting significant heterogeneity across different quantile levels. Additionally, we observed heterogeneity in the influencing factors across temporal periods and regions. [ABSTRACT FROM AUTHOR]

In many ECOWAS countries, the decision-making process for public service delivery has long remained shrouded in secrecy, rendering the general public largely uninformed. Integrating information and communication technology (ICT) into public service delivery seeks to break these barriers. This study, therefore, investigates the impact of e-governance on economic growth among ECOWAS countries, with the specific objectives of examining the effect of four components of e-governance as well as other postulated determinants on economic growth. By employing annual data across 16 ECOWAS countries spanning from 2003 to 2021, using system generalised method of moment (SGMM) and panel-corrected standard error (PCSE) techniques. The results from the PCSE and SGMM estimations show that e-governance positively influences economic growth among ECOWAS countries both in the long- and short-run. Furthermore, the study identifies the significant influence of various control variables on economic growth, persisting in both short and long-run analyses, except for the labour force variable in the short run. This underlines the intrinsic correlation between e-governance and economic growth. Consequently, it becomes imperative for stakeholders within the sub-region to meticulously link investments in e-governance with measurable economic growth outcomes. By doing so, these investments can substantiate expansive initiatives in public service delivery, while simultaneously bridging the historical gap of opacity that has separated citizens from effective government management. [ABSTRACT FROM AUTHOR]

This study utilizes panel data from 30 provinces in mainland China from 2011 to 2020 to investigate the impact of carbon-neutral development on economic high-quality development by constructing an economic high-quality development index and a carbon-neutral development index. Firstly, the study examines the effects of carbon-neutral development on economic high-quality development using baseline regression and spatial Durbin regression. The results indicate that carbon-neutral development has a positive direct effect on economic high-quality growth, but there are negative spatial spillover effects. Secondly, this study employs total factor productivity (TFP) as an intermediate variable in the mediation model regression. The findings demonstrate that carbon-neutral development significantly improves TFP, and the significant improvement in TFP promotes high-quality economic growth. Lastly, the study conducts regional heterogeneity analysis and finds a significant promoting effect of carbon-neutral development on economic high-quality development in the eastern and central regions of China, while it is not significant in the western region. Therefore, it is recommended that China, in the process of achieving carbon-neutral growth, consider the geographical connections between different regions to prevent negative spillover effects. Additionally, regional heterogeneity should be taken into account when formulating relevant policies to promote economic high-quality development. [ABSTRACT FROM AUTHOR]

This study examined the relationship between Islamic financial inclusion and economic development in Indonesia and Iraq using panel data from 2000 to 2014. The study used variables such as GDP per capita growth, education, inflation, government consumption, trade openness, domestic credit, loans by Islamic financial institutions, the rule of law, and regulatory quality. The findings showed significant variation across countries and periods regarding economic development, education, and the adoption of Islamic finance. Correlation analysis revealed both positive and negative relationships between the variables. Panel unit root and cross-sectional dependency tests highlighted the need for advanced methods to analyze panel data. Panel co-integration tests suggested evidence of a long-term relationship between Islamic financial inclusion and economic development. The FMOLS estimators demonstrated the significance and direction of the relationships. The study provided insights into the role of Islamic financial inclusion in promoting economic development in Indonesia and Iraq, emphasizing the potential benefits of integrating Islamic finance into the financial systems of these countries. [ABSTRACT FROM AUTHOR]

Stunting is a critical issue affecting children under five years old, characterized by inadequate growth due to chronic malnutrition and recurrent infections, especially during the crucial first 1,000 days of life (from age 0 to 23 months). Stunting impacts not only height but also vital functions such as brain development and the immune system, potentially leading to decreased intelligence levels and increased susceptibility to diseases later in life. This study examines the impact of the growth of the Gross Regional Domestic Product (GRDP) in the primary, secondary, and tertiary sectors and the level of rural poverty on stunting in Indonesia. This research, which covers time series data from 2015-2020 across 32 provinces in Indonesia, employs a panel data regression model analysis method. The findings indicate that primary sector GRDP growth has a positive effect, whereas secondary sector GRDP negatively impacts stunting. However, the tertiary sector GRDP and rural poverty do not significantly affect stunting rates in Indonesia. [ABSTRACT FROM AUTHOR]

Economic growth is deemed to be a conducive factor in attracting foreign direct investment (FDI) as it often confers location advantage to host countries and fosters business confidence. This paper examines the short-run and the long-run effects of economic growth on FDI inflows. The empirical analysis is conducted through the Generalized Method of Moments (GMM) System estimator for dynamic panel models. The main results show significant positive effects of economic growth on FDI inflows, and they indicate that the magnitudes of these effects are statistically comparable over time and do not diminish with higher economic growth levels. They also reveal important variations in the magnitude of these effects across geo-economic regions and over pertinent economic variables such as economic development level, international trade and foreign investment openness, and endowment in natural resources. These findings underscore the significance of developing growth-enhancing policies that are designed on the basis of the economic and geo-economic characteristics of host countries. Such policies could be coupled with international trade and foreign investment openness directions to stimulate stronger responses of FDI inflows to economic growth and mitigate the implications of unfavorable global and regional political conditions. [ABSTRACT FROM AUTHOR]

The relationships between foreign direct investment (FDI), trade openness, and economic growth are complex and analyzed by many researchers. Still, there are some gaps in our knowledge as literature documents positive, negative, and ambiguous impact of FDI and trade openness on economic growth. This paper addresses one of these gaps and focuses on the similarities and differences among countries from Central and Eastern Europe and West Africa. The econometric analysis covers the 1995-2022 period and employs panel data methods to reveal the long-term positive impact of FDI and trade openness on economic growth in West African countries and long-term positive impact of FDI on economic growth in Central and Eastern European countries. We also demonstrate that apart from cross-border linkages captured by FDI and trade flows, economic growth in Central and Eastern European countries positively correlates with global economic development, however, in case of West Africa this effect is statistically insignificant. [ABSTRACT FROM AUTHOR]

Purpose – The theoretical debate of corruption’s impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption’s effect on BRICS countries’ economic growth. Design/methodology/approach – A panel dataset on BRICS countries spanning 1996 to 2020 was used. Bias-corrected estimators in small dynamic panels were employed to estimate a growth model as a linear-quadratic function of corruption that accounts for cross-sectional dependence, endogeneity and unobserved heterogeneity due to country and time-specific characteristics. Findings – The results indicate that corruption is detrimental to economic growth in BRICS countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance. Originality/value – An important limitation of corruption studies is the difficulty in measuring real corruption experiences due to the secretive nature of corruption and the fact that corruption is known not to leave a paper trail. For the uncertainty of the index estimates, the analysis used a continuous corruption composite score measuring the standard deviation of the extent to which public power is exercised for public gain. Furthermore, estimation and inference are robust to small dynamic panels with a general form of cross-sectional dependence. [ABSTRACT FROM AUTHOR]

This study considers the economic importance of export activities, logistics performance and transportation services as key agents of sustainable development. Considering this aspect of economic development, this study investigates the mediating role of logistics performance in determining the effects of export and transportation on the economic growth of the panel data of 35 emerging upper-middle-income countries over the period 2008-2018. By employing the economic growth model and considering essential indicators, this investigation addresses key aspects of development in the examined economies. The empirical results show that logistics performance, exports, human capital, and population have a statistically significant impact on economic growth with respective elasticities of 0.28, 0.36, 1.25, and negative 0.05. Importantly, the study reveals that logistics performance moderates the effect of export and transportation on economic growth, thus aiding the sustainable development of upper-middle-income countries by increasing export-economic growth elasticity from 0.36 to 1.26. Although transportation services do not influence economic growth independently, its economic importance became significant with elasticity of 1.113 when logistics performance is improved. Therefore, policy makers in upper-middle-income countries should maintain strict macroeconomic policies that could effectively engineer the sustainable export of goods and services and ensure high-quality logistics performance even in the transport sector. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the effect of the gross domestic product growth rate on inflation in these four selected ASEAN countries. This study is worthy as there is a need to understand the variance of national inflation for these ASEAN countries, particularly when Singapore's inflation rate is the lowest among them. The Keynesian Theory and Static Panel Data analysis are put to the test in this empirical study. The investigation is carried out on yearly balanced panel data involving four ASEAN member countries. The secondary data is extracted from the World Bank database over a study period of sixty years from 1961 to 2020. The methodology is based on static panel data analysis involving both Fixed Effect and Random Effect models. The empirical results show that there is a negative significant relationship between economic growth and inflation within the four countries sampled. As such, the policy implication from this study may suggest that it is important for ASEAN-4 governments to continue beefing up their economic growth in order to curb inflationary pressure. [ABSTRACT FROM AUTHOR]

More than 40 years of urbanization in China has brought rapid economic growth, but the uneven development of region and how to achieve common prosperity through urbanization remain a serious concern. This paper analyzes the effect of the urbanization mode of population aggregation in central cities on common prosperity in China. Using panel data of 283 cities from 2004 to 2019, the study constructs a common prosperity index based on the coupling coordination degree of economy, ecology, and society. The Spatial Durbin Model is used to analyze the influence of population aggregation in central cities on common prosperity and the moderating effect of financial self-sufficiency rate. The results show that population aggregation in central cities has a positive effect on common prosperity. There is also a spatial spillover effect, but the impact exhibits an inverted U-shaped characteristic. Moreover, the fiscal self-sufficiency rate has a negative moderating impact on the effect of population aggregation on common prosperity in the early stage, but a positive moderating impact in the later period. This paper concludes by suggesting that the government should promote urbanization, control the size of large cities, accelerate the reform of household registration, and pay attention to the coordinated development of economy, society, and ecology to promote the realization of common prosperity. [ABSTRACT FROM AUTHOR]

The 14th Five-Year Plan stated that China should accelerate green development and promote a comprehensive green transition in economic and social development. As China's economic growth slows, green development becomes greatly significant for the high-quality development of the economy. Based on China's provincial panel data from 2005 to 2021, this study applies fixed effects model and mediating effect model to explore the influence of the government environmental investment on green development. The results indicate that (1) the government environmental investment was conducive to green development, but such effect weakened with time. (2) The government environmental investment indirectly promoted green development through the application of green patents and economic agglomeration. (3) The promotional effect of the government environmental investment varied according to region and time. Specifically, investment exerted the most significant effect on the green development of eastern China, which became more evident after 2015. The government should promote green development by implementing long-term assessment and accountability mechanisms, expanding the scale of economic agglomeration, improving the efficiency of the application of green patents, and improving the accuracy of environmental investment. [ABSTRACT FROM AUTHOR]

Research and Development (R&D) in particular and innovation in general are the best drivers of long-run sustainable economic growth and spending in R&D has been recognized as one of the means to the economic accomplishment of both developed and developing countries. However, the sustainability of the association between R&D & economic growth exclusively depends upon the performance of other macroeconomic determinants. Hence, we examine the effect of R&D on economic growth in the existence of five important macroeconomic determinants. The study focusses on 151 selected countries, including both developed and developing, over the period 1996-2020 and focused on the macro-level analysis. Our research is based on the deployment of system Generalized Method of Moments (GMM) technique. The GMM technique encompasses longitudinal data; and is gathered by pooling time-series across a pool of cross-sectional units, specifically countrywise. The biggest advantage of using the GMM technique is that it allows for addressing the endogeneity problem using lagged explanatory variables as instrumental variables. We have three samples in our analysis, namely pool of developed countries, pool of developing countries, and the pool of both developed and developing countries. Our study deploys four proxies of R&D to work the nexus between R&D and economic growth in presence of five important macroeconomic determinants. In each of these three samples, we run four GMM models, depending upon the deployment of four R&D activities that we used in this study. We observe an evidence that R&D plays a significant role in economic growth when the selected macroeconomic determinants are used as control variables. Our findings are mostly robust to R&D specifications, country specifications, model specifications, and estimation strategies. Most importantly, the effect of lagged economic growth is highly positive, signifying that economies with higher economic growth in the previous years tend to grow faster in presence of R&D intensity. The behaviour of other macroeconomic variables is having diverse nature. Some of these variables behave positively, while others behave negatively. This study suggests that policymakers should focus on improving R&D activities and strengthening the chosen macroeconomic determinants to facilitate economic development. Hence, it contributes to the ongoing policy debate, that is with reference to R&D effect on economic growth, on the finest strategies for attaining sustainable economic growth in all these selected countries. Hence, we can use these findings to develop a targeted policy that promotes R&D intensity in the phases of economic development. [ABSTRACT FROM AUTHOR]

The tourism industry is a dynamic sector for the economies of Mediterranean countries. The aim of this study is to investigate the relationships between tourism revenues, employment rates and economic growth of two selected Mediterranean countries in the 1997-2020 period. In this study, panel data analysis method was used. In the analysis of panel data regression models, it was seen that the random effects model was appropriate. The model was estimated with Driscoll/Kraay resistant standard estimators developed against deviations from the assumptions. The results show that there i s a positive relationship between tourism revenues, employment rates and economic growth in the two Mediterranean countries. Accordingly, an 1% increase in tourism revenues increases economic growth by 0.54%, while a 1% increase in employment rates increases economic growth approximately 1.5 times. [ABSTRACT FROM AUTHOR]

Digital village construction is the key to future rural development in China. This study has empirically examined the impact of digital village construction on county-level economic growth in China, utilizing non-balanced panel data from 16 provinces and 622 counties for the years from 2018 to 2021. The study also investigated the underlying mechanisms and conducted heterogeneity and robustness tests using various analytical methods, including instrumental variables and the difference-in-differences (DID) approach. The findings reveal that digital village construction significantly enhances county-level economic growth, with a more pronounced effect observed in southern regions, eastern regions, and non-agricultural counties. The primary mechanism through which digital village construction drives economic growth at the county level is by promoting entrepreneurship. This study not only points out the key to digital village construction in China, but also enriches the theoretical research on digital village construction for economic growth. However, due to data limitations and the short time span of digital village construction, the results of the study are correct only for the period 2018–2021 in China. As digital village construction continues to progress, its impact on economic growth is likely to be even greater. [ABSTRACT FROM AUTHOR]

In this paper, we use panel data containing all EU27 countries from the 2010 to 2022 period to investigate the impact exhibited by the shadow economy on the level of NPLs. Based on a Panel GMM approach we reveal a negative connection, indicating that Countries with larger informal sectors often exhibit lower reported NPLs, possibly due to less stringent oversight. Additionally, economic growth correlates negatively with NPLs, while rising unemployment is associated with increased NPL levels. However, factors like inflation, political stability, and government debt did not show significant correlations with NPLs in our analysis. The topic holds significant relevance for both macro-stability policymakers and commercial banks aiming to understand how changes in fiscal and budgetary conditions impact the quality of credit portfolios. [ABSTRACT FROM AUTHOR]

Capital misallocation is a serious threat to economic growth, and digital economy may have the potential to help curb capital misallocation. Based on the provincial panel data from 2006 to 2019, this study calculates digital economy and capital misallocation in 30 provinces of China. The classical econometric model and the spatial panel model are used to test the impact of digital economy on capital misallocation. The moderating effect model is constructed to analyze the moderating effect of innovation environment (financial development and talent agglomeration). The results show that digital economy significantly inhibits capital misallocation, this conclusion still holds after a series of robustness tests. In addition, there is a spatial spillover effect of digital economy on capital misallocation. Digital economy can inhibit not only local capital misallocation, but also neighboring capital misallocation. Financial development and talent agglomeration have a moderating effect in the relationship between digital economy and capital misallocation. Promoting financial development and talent agglomeration are conducive to enhancing the inhibitory effect of digital economy on capital misallocation. [ABSTRACT FROM AUTHOR]

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This study aimed to analyze the impact of external debt on economic growth and inflation for emerging market economies for the period 1995-2020 using the panel data method. To this end, the study used the data on 12 countries listed in the Morgan Stanley Capital Index (MSCI) Emerging Markets Index. The results of the panel cointegration analysis showed that changes in external debt stock affect economic growth in the opposite direction and inflation rate in the same direction. According to the country-specific results of the panel cointegration analysis, external debt had a negative impact on economic growth in all countries except Mexico, Egypt, India, and Türkiye. External debt increased inflation in all countries except China, Egypt, India, South Africa, and Thailand. The Bootstrap panel causality test results showed a unidirectional causality from economic growth to external debt stock in China, India and Thailand, and a bidirectional causality in China. A unidirectional causality was also found from external debt stock to inflation in Colombia, and a unidirectional causality from inflation to external debt in China, India, Peru, and Thailand. Based on the cointegration analysis results, it is recommended that external debt should be used to finance more productive investments in order to ensure sustainable economic growth in Brazil, China, Colombia, Indonesia, Peru, Philippines, South Africa, and Thailand. The panel causality test results also showed that economic growth in China, India, and Thailand requires more external resources. Based on these results, it is recommended to reduce external debt in order to reduce inflation in Brazil, Colombia, Indonesia, Mexico, Peru, Philippines, and Türkiye. [ABSTRACT FROM AUTHOR]

It is crucial to examine the impact between foreign direct investment (FDI) and net exports (NE) for unveiling international trade dynamics, and the economic development of different geographical regions. It yields sharp insights into how FDI inflows, driven by theories such as backward linkage, export platform, and knowledge transfer, enhance a host country's export capacity and contribute to economic growth. Moreover, studying the reciprocal linkages between FDI and NE helps recognise the aspects of domestic factors, such as productivity and the product life cycle, in attracting FDI and increasing export performance. Based on those theories, the study aims to ascertain the dynamic causality or correlation between FDI and NE across all regions with the utilisation of panel data gathered from 110 countries, considering the period from 2002 to 2020. The Wavelet coherence method is used to investigate the relationship between these variables across different frequencies and periods, followed by a Granger causality test. The findings demonstrated that FDI and NE have a significant relationship in most regions, with a bidirectional relationship between FDI and NE across all continents. The results could assist respective governments and policymakers in formulating policies related to FDI flows and offer insights into how a host country can attract more FDI and boost NE. [ABSTRACT FROM AUTHOR]

Economic growth incorporating women's participation opens many economic opportunities for women which not only upgrade women's status in society but also make growth more inclusive. Improved condition and position of women in society play an important role in developing women along with enhancing their economic role. Besides explaining the significant role of women in an economy. This paper also throws some light on the need for good governance to enhance their economic role. In this context to evaluate the effect of the development of women on inclusive growth panel data models named the Fixed-Effect and Random-Effect Models have been used. Moreover, the models of White, Rogers, and Driscoll-Kraay estimators are also applied for robustness considering the three selected South Asian countries for the period between 2000-2021. The study finds that developing women play an influential role in inclusive growth and this relationship becomes more significant in the presence of good governance. Thus, it has been recommended that there should be a special focus on government policies towards women's education, health, and political representation to make economic growth more inclusive by enhancing their economic role through their development. [ABSTRACT FROM AUTHOR]

Innovation and investment are critical to economic growth. In this article, we address the complex task of evaluating the capacity of regional innovation to increase investment and generate spillovers in regions of the European Union (EU) from both spatial and temporal perspectives. Using panel data estimation methods and exploring the effects of dynamic spatial autocorrelation, our findings show a positive spatial autocorrelation at the level of EU regions. We also observed spatial competition, both in terms of the distribution of investments and in terms of the diffusion of short-term innovation gains. We argue that, in the short term, EU regions tend to behave as competitors for investment fixing, but in the long run, innovation has the potential to generate spillover effects on neighbouring regions. Furthermore, we find that investment patterns were characterized by a significant temporal autocorrelation, showing that shocks to investment in regions tend to be absorbed in a few periods. This paper attempts to fill existing gaps by using estimation methods for dynamic spatial panel data to identify and explore the effects of regional innovation on investment for the 154 European Union regions, and reports original findings as regards the knowledge spillover across European regions. [ABSTRACT FROM AUTHOR]

Financial inclusion is critical element of economic growth as it makes financial services available to all facets of society and hence has an influence on environmental quality. Using data from 2004 to 2019, this research evaluates the asymmetric nexus between financial inclusion and environmental quality in the top-10 polluted nations (China, India, Russia, USA, Japan, Iran, Germany, Saudi Arabia, South Korea, and Indonesia). Previous research used panel data approaches, which resulted in usual findings of the connection between financial inclusion and environmental quality, even with the reality that numerous nations did not show such a linkage individually. This research, conversely, utilizes an exclusive method 'Quantile-on-Quantile (QQ)', which permits us to probe each nation distinctly to provide multilateral yet country-specific information about the relation between the variables. The estimations demonstrate that financial inclusion degrades environmental quality in 7 out of the 10 economies at many quantiles of data distribution. Additionally, the outcomes reveal that the degree of asymmetry between financial inclusion and carbon emissions differs by nation, stressing the need of governments giving particular attention while implementing policies related to financial inclusion and a sustainable environment. [ABSTRACT FROM AUTHOR]

The article explores the impact of economic growth pressure on carbon emissions based on panel data from China's 277 cities. Moreover, the article analyzes the underlying influence mechanisms as well as regional heterogeneity. The results demonstrate that economic growth pressure significantly increases carbon emissions. Technological innovation and foreign trade constitute the channels through which economic growth pressure affects carbon emissions, but the mediating mechanism of industrial structure upgrading does not exist. Concretely, economic growth pressure increases carbon emissions by reducing technological innovation and foreign trade. In Western China, economic growth pressure has the highest impact on carbon emissions. In central and western China, economic growth pressure has a significant positive effect on carbon emissions. On the contrary, the effect of economic growth pressure on carbon emissions is significantly negative in Eastern China. In Northeast China, the positive effect of economic growth pressure on carbon emissions is statistically insignificant. [ABSTRACT FROM AUTHOR]

The role of the digital economy in economic transformation is increasingly prominent. This paper empirically examines how the digital economy affects TFP and its mechanism using Chinese provincial panel data. The results show that the impact of the digital economy on regional TFP is U-shaped. Further studies show that digital economy development may improve regional TFP through two channels: stimulating innovation and promoting entrepreneurship. In addition, we also discuss the role of active government, effective market, and high-level judicial protection in digital economic policies improving economic growth. Based on our research results, we put forward some policy recommendations. [ABSTRACT FROM AUTHOR]

Innovation networks promote regional innovation and economic growth. Using the patent data of cooperative inventions and the panel data of socio-economic statistics for 2010–2019, this study quantitatively analyzes the spatial structure evolution of intra-city and inter-city innovation networks for 41 cities in the Yangtze River Delta and their influence on economic growth. This study shows that these networks are increasingly connected and have a highly similar Z-shaped spatial structure. City economic growth is generally high, relatively stable, and mainly positively influenced by inter-city innovation networks. Intra-city innovation networks have no significant effect on economic growth; however, they are complementary to the inter-city ones. [ABSTRACT FROM AUTHOR]

Following the upsurge of external debt in SSA countries, the effect of external debt on economic growth has captured the attention of empirical studies during the last two decades of the twenty-first century. This study investigated the short- and long-run effect of external debt on the economic growth of 39 SSA countries during the last decade for the periods of 2011–2021. The annual balanced dynamic panel data for the study were sourced from a recognized trustworthy data source, the world development indicator. The result of the study divulged that external debt has a significant negative impact in both the short and long run. Unequivocally, other things remaining constant, a percentage change in total external debt is associated with a 0.034 percent decline in the real GDP of SSA in the short run, while it leads to 0.65 percent shrinkage in the real GDP of SSA in the long run. The study concludes that the negative impact of the long run is greater than that of the short run. The policy implication is that SSA countries should allocate the external debt on the projects that bring other investment opportunities to amortize external debt. Further, the strategies that improve domestic revenue mobilization sources that compliment external debt such as improving informal sectors to broaden tax bases and minimizing domestic revenue leakages need to be established in SSA countries. [ABSTRACT FROM AUTHOR]

The purpose of this study is to estimate the relationship and influence between regional inequality variables, human capital, the open unemployment rate, and economic growth in Indonesia using panel data. The panel data consists of a combination of time series data from the 2010–2020 period, based on information from 32 provinces in Indonesia. The estimation model employed in this study is a panel regression model utilizing three methods: the common effect model (CEM), fixed effect model (FEM), and random effect model (REM). The findings of the study reveal a positive and significant effect of the ETI factor on the LOG (GRDP) factor. Additionally, the HDI variable exhibits a positive and significant impact on the LOG (GRDP) variable, while the UNR variable also shows a positive and significant effect on the LOG (GRDP) variable. Furthermore, the ETI variable is found to have a positive and significant influence on the UNR variable, while the HDI variable has a negative and significant impact on the UNR variable. Finally, the LOG (GRDP) variable demonstrates a positive and significant effect on the UNR variable. [ABSTRACT FROM AUTHOR]

The study examined the effects of agricultural trade openness on economic growth in the EAC. We empirically analyzed the issue in five countries from 2000 to 2021. Panel data estimation methods were used in the study. The variables were found to be integrated of order one and zero. There was presence of cointegration, cross-sectional heterogeneity and cross-sectional dependence. The CS-ARDL results revealed that agricultural trade openness and economic growth enjoyed a long-run relationship. The empirical results indicated that the effect of agricultural trade openness on economic growth was positive and significant in the long run. Bootstrap panel granger causality analysis was applied in testing the nature and direction of causal relationships between variables. The results indicated that a unidirectional causal relationship existed between agricultural trade openness and economic growth. This implies that an increase in trade openness promotes economic growth. Based on the findings of the study, we recommend that strategies aimed at promoting trade openness should be complemented with strong policies to enable EAC countries to reap more growth benefits associated with open trade. [ABSTRACT FROM AUTHOR]

Our research study aims to analyze the effect of government expenditure on goods and services and capital toward regional economic growth in Indonesia. We position local tax effort as a moderating variable between economic growth and government expenditures. Using a panel data set of 24 provinces in Indonesia from 2006 to 2015, a dynamic model of GMM was applied to estimate the effect of public expenditure on growth. The research study provides empirical evidence that the two kinds of public spending positively and significantly affect economic growth. Conversely, local tax efforts negatively affect economic growth. Besides, local tax efforts also reduce the positive impact of capital expenditure on economic growth. In other words, local tax efforts negatively moderate the influence of government expenditure on the output growth of the regional economy. [ABSTRACT FROM AUTHOR]

Research background: The role of human capital in modern economy development is as important as that of material growth factors. According to the three-sector model theory, economic growth is associated with the process of labour force leaving the primary sector. The research issue addressed in this paper was the human capital level estimation in European NUTS 2 regions and the relationship between the human capital level and sectoral structure of the economy. Purpose of the article: The article aimed to verify the hypotheses of absolute and conditional human capital convergence in European NUTS 2 regions. The analysis covered the 2005-2020 period for European NUTS 2 regions and two subgroups: the CEE regions and the Western European regions. Methods: A composite indicator approach was adopted to measure human capital levels in NUTS 2 regions. In order to verify the absolute and conditional b-convergence hypotheses, dynamic panel data models were estimated. The Blundell and Bond system-GMM estimator with parameter standard errors robust to heteroscedasticity was used. Findings & value added: The study positively verified the hypotheses of absolute and conditional convergence in each group of regions. Percentages of employees in sectors proved to be the steady-state determinants. The time needed to reduce differences occurring in human capital levels by half (a half-life) was about 11 times greater for the CEE regions than for the Western European ones. The value added of the article lies in proving the relationship between the sectoral structure of employees and the pace of human capital convergence in European NUTS 2 regions. [ABSTRACT FROM AUTHOR]

Green growth is sometimes seen ambivalently, either as requiring economic degrowth, a stingy administration of resources and consumption, or as supporting a robust economic growth but with a dramatic paradigm shift (sustainability, circularity, regenerability etc). The war in Ukraine presents humanity, and especially Europe, with a choice - a world in continuous moral degradation, wildly fighting for resources, or a world in search of viable longterm solutions, in which respect for nature and people it goes without saying. In this context, the article discusses econometrically, using panel data, what could be the contribution of some indicators of the green economy on economic growth at the level of the European Union (EU27) for the period 2011-2021. The results, although not spectacular, still show us which are the areas of vulnerability, but also the areas that deserve to be boosted, both through private and public investments, so that the green economy to mean more and more, in the close future, in relation to the classic GDP. [ABSTRACT FROM AUTHOR]

Territorial cohesion and improved accessibility are among the main objectives of the European Union (EU) Cohesion policy. Although there is a wealth of literature on the impact of investment in transport infrastructure on overall accessibility levels, only a few studies have tried to evaluate the possible link between transport infrastructure investment (TII) and economic growth in the EU. Our research aims to evaluate the impact of TII on economic growth in the EU. The methodology is based on nonlinear neoclassical specification, which includes a multiplicative term to evaluate if the absence of corruption mediates the effect of TII on growth. Our unbalanced panel data covers 27 EU countries (Cyprus is excluded due to missing data and the United Kingdom is a part of the sample) from 2000 through 2019. Our research confirms a positive and statistically significant impact of TII on economic growth but with a diminishing return. Estimating the absence of corruption as a possible moderator of the effect that TII has on growth shows that control of corruption plays a significant role in the TII growth nexus. We find that in countries with a low level of control of corruption, TII has a statistically significant negative effect on growth. [ABSTRACT FROM AUTHOR]