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Although scholars often portray Mexico as caught in the "middle-income trap," this description obscures important subnational variation in patterns of economic development. We leverage this variation by examining the case of Querétaro, a state with high levels of structural transformation and economic growth since the 1980s. We reconstruct the historical trajectory of its two leading industries, automotive and aerospace. We observe that while both have cumulatively delivered real developmental gains, each also exhibits a complex mix of strengths and weaknesses. We further find that these industries' advancements and hindrances over time appear closely related to the kinds of "partial" coalitions — groups of actors from the state, private firms, and civil society organizations such as labor unions — which participate in industry-level decision-making. Both industries saw periods of "upgrading" when the partial coalitions supporting them were expanding their cognitive diversity while avoiding gross imbalances in the distribution of power among their members. They likewise experienced periods of stagnation when either of those coalition conditions underwent major change. These findings suggest that debates on escaping the middle-income trap should consider how changes in partial political coalitions affect policy models and options. [ABSTRACT FROM AUTHOR]

University–Industry Collaborations (UIC) are increasingly recognized as crucial drivers of economic growth and development. While numerous studies have been conducted on this topic, this paper specifically focuses on UIC in the Arab World. The aim of this study is to explore the establishment of successful UIC by conducting a review of existing literature to identify and synthesize key factors that enable collaborative innovation between industry and universities. The findings are summarized into six main themes: the importance of UIC, barriers to UIC, gaps between universities and industry in the Arab World, partnerships and sustainable growth, current trends and perspectives, and future agenda for Arab countries. These themes are elaborated on and used to summarize results from the reviewed studies regarding facilitators of collaborative innovation. The contribution of this work lies in enhancing the existing body of literature and knowledge regarding collaboration between higher education and industry in the Arab World. This research presents specific measures that can be implemented to ensure successful UIC in the future. Its outcomes are significant for policymakers, academics, and industry experts in the Arab region, who aspire to form productive UIC partnerships that encourage economic development and innovation. [ABSTRACT FROM AUTHOR]

Scholars have given enormous attention to the roles of energy use and trade in economic growth strategies; however, recent international trade literature suggests that not merely the volume of trade but the diversification of goods may have a potential effect on economic growth. Thus, this paper uses the diversification of export goods and diversification of import goods as explanatory variables along with energy consumption and assessed the role of these important variables in economic development. The empirical results from Westerlund's (J Appl Econom 23:193–233, 2008) and Westerlund's (Oxf Bull Econ Stat 69:709–748, 2007) tests disclosed the existence of cointegration. The long-run estimations obtained from the CUP-FM technique revealed that both import and export product diversifications positively influence economic growth. This presents a vital opportunity for emerging nations to expand growth by diversifying export and import products. Likewise, energy use, labor, and capital contribute to increasing economic growth. The estimates from the causality test illustrated bidirectional causality between export diversification and economic growth and unidirectional causality from energy to export diversification. Finally, policy suggestions to expand economic progress are discussed. [ABSTRACT FROM AUTHOR]

Using the series of the top 1% income shares in 137 countries, I examine the relationship between top-end inequality and subsequent economic growth from the 1920s to the 2010s. These data enable a versatile exploration of various time horizons. To address concerns regarding chosen functional forms, I employ penalized spline methods to accommodate potential nonlinearities. Empirical findings suggest that the relationship between top-end inequality and subsequent growth is complex, contingent upon both the investigated time horizon and the level of economic development. I find some evidence for a positive link at medium levels of economic development, with this positive link being more pronounced in short- to medium-term associations. I also find that the positive medium-run association weakens as economic development advances. In advanced economies, a negative (or nonpositive) medium- to long-term relationship emerges between the top 1% income share and growth in many settings. Furthermore, I conclude that longer-run associations need to be investigated further. [ABSTRACT FROM AUTHOR]

Economic agglomeration has played a key function in China's economic transformation. Meanwhile, structural adjustment and external pressure to reduce carbon emission necessitate a deeper investigation into its relationship with carbon productivity. This paper measures economic agglomeration and carbon productivity of 281 cities in China in 2003–2017. With the purpose of exploring the spatial effect of economic agglomeration on carbon productivity, a spatial Durbin model is constructed. In addition, the mediation effect model is also adopted for examining the transmission mechanism of economic scale and technological progress on economic agglomeration as well as carbon productivity. A heterogeneity test is also carried out to uncover the varying effects of economic agglomeration on carbon productivity. The empirical results suggest that economic agglomeration raises carbon productivity not only in the local cities but also in the neighbouring ones. The impact of economic agglomeration on carbon productivity becomes more potent as the level of economic agglomeration increases. For cities with low level of economic agglomeration, the effect is mainly achieved through the expansion of economic scale, but for cities with high level of economic agglomeration, the effect is mainly achieved through technological progress. Therefore, we suggest encouraging carbon productivity improvement through technology effect in cities with high economic agglomeration level, while enhancing carbon productivity through scale effect in cities with low economic agglomeration level. [ABSTRACT FROM AUTHOR]

Since its independence, Tunisia has embarked on monetary and financial sector reforms aimed at boosting economic growth. However, these reforms have not been effective due to inflation pressures in this country. Thus, this paper examines the nature of the relationship between financial development and economic growth between 1965 and 2019, using the non-linear logistic smooth transition regression model and considering inflation as a threshold financial development. The results show the existence of a non-linear abrupt relationship with an inflation threshold equal to 3.63%. Specifically, when inflation is below 3.63%, all variables, including inflation, have a significant and positive impact on economic growth. However, when inflation exceeds the estimated threshold, inflation has a significant and negative impact with an elasticity equal to − 0.365. To effectively manage inflation, the Tunisian authorities are encouraged to set and embrace specific inflation targets as a goal. This approach aims to mitigate inflationary pressures and foster a favourable environment for financial development in Tunisia, thereby promoting economic growth. Hence, it becomes imperative to implement such measures that alleviate inflationary pressures and drive economic growth through the facilitation of development finance by the banking sector. [ABSTRACT FROM AUTHOR]

This study identifies the key industries with latent comparative advantages which have the potential to stimulate economic growth and structural change in Turkey (Türkiye). The New Structural Economics asserts that factor endowment differences dictate systematic structural differences in the economy. This factor endowment evolves over time and determines the latent comparative advantages of the economy. For successful industrial upgrading, economic growth and catching up, the industrial structure should be chosen to fit the given factor endowment best. To identify industries with latent comparative advantages, this study exploited the growth identification and facilitation framework proposed by New Structural Economics for the Turkish economy. Along with the pure growth identification and facilitation framework methodology, this study also benefits from product space tools, namely PRODY, measuring the income/productivity level of goods; EXPY, measuring the income/productivity level of a country's export basket, and economic complexity and complexity outlook indices. The Baltic countries (Estonia, Latvia, Lithuania), and Poland and Slovakia, were identified and selected as benchmark countries for comparison. Based on the export structure comparison of benchmark countries, the results indicate that Turkey has latent comparative advantages in agricultural and some labor-intensive industries. The most binding constraints of the identified products and industries with latent comparative advantages were detected via growth diagnostic analysis. In light of the results, measures that ease latent comparative advantages have been proposed for certain industries to reduce production cost, enhance competitiveness in national and global markets, and foster the Turkish economy's economic transformation. [ABSTRACT FROM AUTHOR]

China's rapid economic development has attracted worldwide attention, but the resulting environmental problems also cannot be ignored. Whether environmental regulations can achieve a win–win situation between "green" and "economic growth" has become the focus of academic circles. While related studies have examined environmental regulation through the "Cost-following theory" and "Porter hypothesis", they have mostly focused on a particular region or province, thus neglecting the spatial effects. The spatial effects of environmental regulation are important to study because of the overall environmental correlation across regions and especially adjacent provinces. This paper extends the "cost-following theory" and the "Porter hypothesis" to the spatial perspective and proposes two hypotheses, respectively. Through the spatial expansion of environmental regulation theory, this paper not only analyses the direct effect of local environmental regulation on local economic growth, but also the spatial spillover effect of adjacent provinces' environmental regulation on local economic growth. The empirical results show that the relationship between environmental regulation and economic growth in China is consistent with the spatial perspective of "Cost-following theory", but not with the spatial perspective of "Porter hypothesis". Through the above analysis, this paper is able to address the issues of how to make environmental regulation policies in adjacent provinces or regions as a whole, and how to coordinate environmental regulation with economic growth in adjacent regions. The findings of this paper also suggest that spatial effects need to be sufficiently considered in future studies on environment-related issues. [ABSTRACT FROM AUTHOR]

This research examines the causal impact of institutional quality on economic development from a novel perspective. At the country level, we exploit variation in the natural malaria prevalence in 1900, just before vector-control methods were developed, to instrument for institutional quality using a two-stage least squares instrumental variables framework. Our instrument is a population-weighted average of malaria endemicity estimates for the year 1900 developed by the World Health Organization scientists in the 1960s. We argue that this measure of historical malaria offers more expansive geographic information about the disease environment, and our baseline IV estimates reveal that greater institutional quality causes greater contemporaneous economic growth. Next, we investigate the robustness of these baseline results to alternative explanations, including the role of geography and the role of early colonizers' experiences, as the causal link between the early disease environmental, institutional quality, and contemporary growth. As an additional test of the explanatory power of malaria endemicity in 1900 as an instrumental variable, we replace our instrument for settler mortality and replicate the core results from the seminal study on colonial origins of comparative development by Acemoglu et al. (2001). In summary, we propose that malaria endemicity estimated for 1900 holistically explains the legacy of early disease on institutional quality development and contemporary economic development, thus significantly contributing to the resolution of the geography versus institutions debate. [ABSTRACT FROM AUTHOR]

There has been much research undertaken over the years to better identify the factors leading to both firm and economic growth. These range from building an understanding of innovation, particularly of non-rivalous goods to better examining the increasing returns present in increasingly networked economies. In Central Asia, studies of firm and accompanying economic growth have been more on the quantitative side in examining aggregate factors such as industry productivity and the resulting impact on GDP. The current research seeks to review the economic growth literature and its links with innovation and human capital in the context of a Central Asian economy. Top down and particularly bottom up policy implications are also examined. An Interpretive Phenomenological Analysis (IPA) is also taken in interviewing Iranian researchers and experts from the areas of economics, entrepreneurship, science and technology, and public policy. They are interviewed to illustrate how innovative human capital can contribute to firm development and economic growth in a major Central Asian economy not normally associated with innovative human capital and new ventures. Potential implications for firm growth through innovation and enhanced human capital are identified and linked to the Central Asian context and its traditional, historical attention to individual development and the freedom to "have a go." [ABSTRACT FROM AUTHOR]

This study investigates the effects of military expenditure, final consumption expenditure, gross national expenditure, net income, broad money, and total reserves on Pakistan's economic growth. The nonlinear autoregressive distributed lag (NARDL) and robust regressions methods are used to examine the relationship among variables. The outcomes revealed that total reserves positively impacted the economic growth during positive and negative short- and long-run shocks. Final consumption expenditure and gross national expenditure negatively influenced the economic growth. Similarly, military expenditure and net income positively and negatively impacted the economic growth, while broad money has adverse and positive relation to economic growth. The results of the robust least squares and stepwise least squares approaches showed that all variables except military expenditure and reserves have positive impact on economic development. This study suggests that government should carefully monitor defence-related investment to maintain economic development. [ABSTRACT FROM AUTHOR]

Research and Development (R&D) is the common denominator of innovation and technological progress, supporting sustainable development and economic growth. In light of the availability of new datasets and innovative indicators, in this work, we introduce a novel perspective to analyse the international trade of goods through the lenses of the nexus R&D-industrial activities of countries. We propose two new indices, RDE and RDI, summarizing the R&D content of countries' export and import baskets—respectively—and investigate their evolution in time, during the period 1995–2017, and space. We demonstrate the potential of these indices to shed new light on the evolution of R&D choices and trade, innovation, and development. In fact, compared to standard measures of countries' development and economic growth (e.g., the Human Development Index among the others tested), these indices provide complementary information. In particular, tracing the trajectories of countries along the RDE-HDI plane, different dynamics appear for countries with increased HDI, which we speculate can be reasoned with countries' availability of natural resources. Eventually, we identify two insightful applications of the indices to investigate further countries' environmental performances as related to their role in international trade. [ABSTRACT FROM AUTHOR]

The maritime industry is significant to the growth and development of nations. The relationship between shipping trade and economic growth in Nigeria is acknowledged in the literature. Still, the need to emphasise the role of shipping import and export volume and exchange rate volatility in Nigeria's economic growth remains. The economic growth and development level that a maritime nation will derive from its ocean depends on its import and export volumes in the face of exchange rate volatility. Using the Vector Error Correction Model, this study analyses the effect of shipping trade on economic growth in Nigeria from 1970 to 2020. The study examines the effect of seaport imports, exports, and real exchange rates on GDP to determine if Nigeria's economic growth is sustainable, that is if the current pattern of shipping imports and exports for economic growth will not hamper future economic development. The cointegration test established a short- and long-term causality from import, export and exchange rates to GDP. The result showed that Nigeria's economic growth is import-dependent and that, in the long run, import and exchange rates significantly affect GDP. The study further indicates that the present export volume does not significantly contribute to GDP growth. The results imply that building an economic system on an import-dominated trade system is not sustainable for future development. The study recommended strategic initiatives to maintain the economic growth rate while promoting export through local production. [ABSTRACT FROM AUTHOR]

This research examines the potential impact of economic growth, carbon emissions, trade, and energy use on tourism development in Pakistan from 1980 to 2018. This study employed the Autoregressive Distributed Lagged technique for the simultaneous estimations of short and long-run associations. The study found a positive impact of energy use, economic growth, and trade openness on tourism development in the short and long run. On the other hand, the study reveals a negative impact of CO2 emissions on tourism development in Pakistan. The study further applied an innovative accounting approach for robust results of the study. The study based on Toda Yamamoto causality approach revealed unidirectional causal association among the study variables. The results, thus, suggest the change in investment decisions as the government and policy makers should encourage investments in services sector rather than polluting industrial sector as the services sector is less polluting and leading sector of the economy. This, in turn, could help attract tourists due to environmentally and economically sustainable growth. [ABSTRACT FROM AUTHOR]

Road infrastructure development in a country has been considered an important predictor of economic development and prosperity. Hence applying a systematic analysis approach, this study aims to project the future role of the central government in developing road infrastructure and its significance in the country's economic growth. The main data sources were the literature review and expert opinions in the form of self-administrative surveys and interviews. Besides, the Cross-impact Direct Influence (CDI) matrix was applied to formulate the questionnaire. For the data analysis purpose, MICMAC analysis and Scenario Wizard software were used. The MICMAC analysis results revealed the dominant role of 9 important/key variables in developing the Indonesian road infrastructure. Simultaneously 24 positive states of the important variables what identified via the Scenario-Wizard Method. Findings also depicted stronger consistency among the four scenarios. Whereas Scenario 1 showed the most ideal 9 key features related to Indonesia's road infrastructure developments with a high intensity of concentrating the efforts on planning road infrastructure development in big cities and use of smart and modern technology. Moreover, presenting a group of constructs for developing road infrastructure and resultant economic growth in the country, the current study adds value to the existing literature. [ABSTRACT FROM AUTHOR]

Experiences worldwide indicate that the relationship between energy consumption and economic development is complex. Guangdong Province has experienced a more than threefold increase in GDP since 2005, but it is not clear whether rapid economic growth is at the cost of a large amount of energy consumption. In this study, we employ spatial autocorrelation and hotspot analysis to discover the spatial agglomeration of GDP per capita and energy intensity in Guangdong, China, from 2005 to 2018. Furthermore, panel vector autoregression coupled with a system generalized method of moments is performed to examine the dynamic causal relationship between energy consumption and economic growth under the framework of the Cobb–Douglas production function. We used a multivariate model and grouped studies based on the differences in regional economic development and the results with similar research. The results show that the GDP per capita of the Pearl River Delta (PRD) is significantly higher than that of the peripheral municipalities. However, energy intensity shows an entirely different spatial distribution. The development of the regional economy depends on its own "assembling effect". In regions with significant differences in economic development, it is necessary to conduct grouping studies; otherwise, the overall results will not represent partial results. GDP explains approximately 68.3% of the total variation in energy consumption in the PRD but only approximately 34.5% of that in the peripheral municipalities. We do not confirm Granger causality between energy consumption and economic development. Guangdong can decrease its energy consumption growth without substantially sacrificing its economic growth. The contribution of this study is to propose an analytical framework of the relationship between energy consumption and economic development that integrates time and space perspectives to account for spatial effects in panel analysis. [ABSTRACT FROM AUTHOR]

Bangladesh's economy has flourished a great deal during recent years, establishing itself as an enthralling market. This country's remarkable growth trajectory can be attributed to technological innovation, foreign direct investment, trade and human capital, all of which have significant impacts on its economic growth. Bangladesh's economic development has been poorly explored in previous studies due to the lack of integration between these dynamics. Does the question arise whether this growth factors have a symmetrical or non-symmetrical effect on Bangladesh's economic growth and policymaking? We conducted this study with the primary objective of evaluating how technological innovation, foreign direct investment, trade, and human capital affect Bangladesh's economic development. Based on time series data years spanning 1990 to 2020, this study used the dynamic ARDL simulation method to accomplish its objective. This novel approach allows users to examine possible counterfactual changes in variables based on the ceteris paribus theory, as well as to test cointegration, long- and short-run symmetric associations between variables. Research findings indicate that technological innovation and human capital have a long-run symmetric relationship with Bangladesh's economic development. There is a significant correlation found between economic growth and all variables in the short run. To further check the robustness of the study we employed the nonlinear ARDL approach. Therefore, this study can undoubtedly be used by policymakers and the government as a basis for prioritizing and encouraging critical policy changes that will improve Bangladesh's economic development. [ABSTRACT FROM AUTHOR]

Ecological degradation is a major challenge for all nations. The problem is particularly worrying for South Africa, which has recently suffered from various ecological catastrophes. Thus, the empirical study evaluates the nexus between CO2 emissions and financial development, renewable energy, economic growth and environmental-related technologies in South Africa utilizing data between 1980 and 2020. We employed autoregressive distributed lag (ARDL) and time-varying causality to evaluate these connections. The results from the ARDL show that financial development and environmental-related technologies lessen CO2 emissions while economic progress intensifies CO2 emissions. Surprisingly, renewable energy does not mitigate CO2 emissions. Furthermore, the time-varying causality shows that all the independent variables can forecast CO2 emissions at different sub-periods. Finally, our results are resilient to various policy ramifications useful in reducing CO2 emissions and associated adverse ecological consequences. [ABSTRACT FROM AUTHOR]

Is it possible to protect the environment while aiming at economic growth, one of the most critical factors in increasing the welfare of societies and individuals, and financial development, which is also essential for economic growth? Our study addresses this question for the example of Azerbaijan, using the ARDL bound test with structural breaks over the period from 1996 to 2017. Our study aims to contribute to the growing literature body investigating the relationship between economics and the environment by: (i) using ecological footprint as an indicator in the examination of the effect of financial development and economic growth on the environment, (ii) investigating the relationship between the related variables with the structural break econometric method that can produce results that vary over time, (iii) carrying out the study for Azerbaijan. While the study results showed an inverted U-shaped environmental Kuznets curve between economic growth and ecological footprint, it was concluded that financial development also reduced the ecological footprint. When evaluated in this context, it is emphasized that while targeting economic and financial development, public authorities, financial institutions, producers, and individuals should act with a pro-environmental consciousness in the production, consumption, and decision-making processes. [ABSTRACT FROM AUTHOR]

It is a global challenge to achieve sustainable economic growth by improving the environment. The present study discussed the role of the financial development sector in achieving sustainable economic growth and environmental quality in South Asian countries from 1990 to 2020 by controlling labour force participation, globalization, industrialization, and the education sector. A feasible generalized least squares (FGLS) panel data econometric technique has been used to check the relationship among the variables. The results show that financial development has a U-shaped relationship with carbon emissions and economic growth. Furthermore, labour force participation, industrialization, globalization, and educational school enrolment significantly increase CO2 and economic growth. This study suggests that the governments of South Asian countries should take steps to increase economic growth. For this purpose, effective supervisory mechanisms of financial development through financial innovation, improving financial efficiency, maintaining financial stability, and reducing the environmental pollution. [ABSTRACT FROM AUTHOR]

The debate of the finance-growth nexus can be classified into three dimensions. First, a critical factor innovation that is interacted with financial institutions and thereby should have impact on economic growth is highly ignored. Second, most studies do not differentiate the effect of finance–growth nexus at different stages of economic development. Third, in relationship to the long-run finance-growth nexus, the short-run association has received less attention. This paper synthesizes the above three aspects and explores the long- and short-run effects of innovation and financial development on real economic sectors considering different levels of income. By analyzing a panel of data for 48 countries from 1971 to 2015, this study contends that the finance–growth and innovation–growth relationships vary with the time horizons and income levels. This paper highlights the critical role that innovation can play in the growth process and states that financial development is no longer a panacea for real economic growth. [ABSTRACT FROM AUTHOR]

This study re-examines the impact of financial structure on economic growth for 24 advanced OECD countries from 1980 to 2017 using dynamic panel estimators. Previous literature suggests that financial development can promote economic growth; however, recent literature has expressed skepticism toward the finance-growth nexus. This paper employs financial development indices that capture the multidimensional nature of finance, which considers the accessibility, depth and efficiency of financial markets and institutions, as well as alternative financial development measures such as financial globalisation. The results show that financial markets and financial institutions promote economic growth; however, the effect of financial markets on growth is weaker. Interestingly, the results indicate an inverse U-shaped relationship between overall financial development and economic growth. Equally important, financial globalisation is also positive and significant to growth and indicates a nonlinear relationship. However, the impact of external finance from financial globalisation is weaker compared with overall financial development. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

This study investigates the causal effect relationship between defence spending, economic growth and development in three regions for the period 1990–2018. It further estimates the trivariate impacts of defence spending, growth and development in three regions. To measure growth, we used real gross domestic product as the proxy, while economic development was measured by the Human Development Index. The empirical results suggest the existence of a bidirectional long-run relationship between defence spending, economic growth and development in the entire sample and the three regions of sub-Saharan Africa, the Middle East and North Africa, and Latin America and the Caribbean countries. The causality results reveal that there is feedback causality between defence spending, economic growth and development. There is thus a need to promote holistic policies to reduce the defence spending necessary for the enhancement of inclusive economic growth and development in these three regions. A decrease in defence spending in the three regions will encourage aggregate output and the standard of living to increase, and move simultaneously in the same direction. [ABSTRACT FROM AUTHOR]

Carbon dioxide emissions have been the primary source of extreme environmental pollution and have detrimental consequences on human life, irrespective of an economy being developed or underdeveloped. For the developing economies, in particular, it is imperative to reduce such emissions in order to sustain the growth of the respective economies. However, for designing appropriate emission reduction policies, it is appropriate to identify the sectors which contribute the most to carbon dioxide emissions and dampen the growth of overall economy. Against this background, the key intention of this study was to examine the influence of carbon dioxide emissions generated from various sources on the economic progress in Pakistan between 1971 and 2017. This study is important for Pakistan to sustain its economic progress and enable the nation to comply with commitments of the Paris Agreement and Sustainable Development Goals. The econometric analysis conducted in this study considers a nonlinear autoregressive distributed lag model which is applied to ascertain the short- and long-run economic growth impacts associated with positive and negative shocks to CO2 emissions generated from various sources. The choice of this model is driven by its capacity to perform an asymmetric analysis which is relevant for suitable policy-making purposes. The overall results, in a nutshell, reveal that carbon dioxide emissions from Pakistan's transportation sector influence the country's economic progress. Positive shocks to such carbon dioxide emissions are originate to reduce economic progress in the long run while negative shocks are evidenced to boost economic growth both in the short and long run. In contrast, carbon dioxide emissions from other major sectors are found to be ineffective in influencing Pakistan's economic growth both in the short and long run. Hence, keeping into consideration the prospects of attaining sustainable economic growth, the Pakistan government must prioritize the implementation of CO2 emissions-inhibiting policies within the transportation sector. Simultaneously, the traditional fossil fuel dependency within this sector should also be phased out. [ABSTRACT FROM AUTHOR]