• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.4
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• pp.35-45
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• 2018

Purpose - The operating mechanism between education input and economic growth is a mysterious proposition that has attracted a vast array of scholars' interests to study on it. Therefore, this paper sets China as an example to analyze the dynamic relationship between education input and economic growth. Research design and methodology - The annual time series from 1990 to 2017 will be employed to conduct an empirical analysis under the vector autoregressive model. The education input is treated as an factor that impacts the economic growth such as labor input and capital input. Meanwhile, the education input will be added to the Cobb-Douglas production function to form a new one so as to explore the dynamic relationship between education input and economic growth. Results - According to the results of empirical analysis, it can be found that the education input has an increasingly positive effect on economic growth. Simultaneously, the economic growth also has a positive effect on education input, but this kind of effect is not steady. Of course, the labor input and the capital input also can promote the economic growth to some degree. Conclusions - The education input is one of most important inputs for a country. Based on the empirical analysis, this paper suggests that the China's government should put more emphasis on the education input so to make its economy develop well.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.147-156
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• 2020

This study aims to analyze the effect of public spending, macroeconomic variables, and BPK opinion on economic growth. This study is motivated by the inequality of fiscal policy effectiveness between regions in Indonesia in influencing the economic growth of different regions, the ability of local governments to attract foreign investors, and the transparency of regional financial management in designing development programs to encourage regional economic growth. The analytical tool in this study is a dynamic panel regression model with data from 2008 to 2017. The results of this study show that, in the short term, the population affects regional economic growth, while in the long term, the economic growth is affected by the number of people, the poor, General Allocation Fund, health budget, foreign investment and BPK opinion. The findings of this study are that in the long term the General Allocation Fund becomes an obstacle to economic growth, this is because the general allocation funds is widely used to cover the lack of funds for routine regional activities, thereby reducing activities for development programs. Another research finding is that fiscal policies carried out by local governments make a small and ineffective contribution to promoting economic growth.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.33-42
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• 2021

This study aims to investigate the relationship between foreign direct investment (FDI) and economic growth at the provincial level by using time-series data in Binh Dinh from 1997 to 2019. We applied the quantitative approaches Vector Autoregression (VAR) and Autoregressive Distributed Lags (ARDL) in the model, which includes economic growth, real foreign direct investment capital, ratio of trained workers, and infrastructure. The results show that all these variables are stationary at the first difference. In ARDL analysis, we found that the economic growth positively affects FDI attraction. However, there is no evidence of the effect of FDI on economic growth in the condition of low capital implemented. Moreover, findings also show that the impact of FDI on economic growth is influenced by two factors: infrastructure and human capital. The lack of human capital, which is trained personnel and infrastructure, is the main barrier hindering and inhibiting FDI's contribution to local economic growth. In order to improve the efficiency of FDI on economic growth in the future, it is suggested that the Binh Dinh government should have proper policies in terms of the infrastructure, the human capital investment. They would allow Binh Dinh to enhance the capital absorptive capacity and capital efficiency.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.345-353
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• 2021

The impact of investment on economic growth has been studied by many authors around the world with different times and research methods. Therefore, there are conflicting opinions about the impact of investment on economic growth. To contribute empirical evidence, the objective of this study is to assess the impact of investment sources such as public investment, private investment, and foreign direct investment on economic growth in Vietnam in the short-run and long-run. The data used for the study is panel data from 63 Vietnamese provinces between 2000 and 2020. The inquiry method is PMG (Pool Mean Group) regression for economic growth (GDP) after testing the stationarity of the variables that meet the PMG regression condition as suggested by Pesaran et al. (1996) and Hamuda et al. (2013). The results show that: factors such as labor and trade openness have a negative impact on economic growth in the short term. In the long run, public investment has a negative effect on economic growth, while domestic private investment, foreign direct investment, trade openness, and labor have positive effects on economic growth. Labour contributes the most, followed by trade openness, foreign direct investment, and domestic private investment. Finally, the study provides policy implications for the Government of Vietnam.

• Journal of Koreanology Reviews
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• v.1 no.1
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• pp.25-29
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• 2022

Economic growth is one of the significant benchmarks determining a country's sustainable growth. Before WWII, most countries perceived their priority in terms of military strength as they dedicated most of their efforts and resources to creating weapons of mass destruction. The current research aims to establish some of the significant factors that may have contributed to the sustainable and progressive economic growth of South Korea within the 60-year timeframe. Multiple prior studies have attributed the economic growth in South Korea to policy reforms that opened the country to foreign markets. The outstanding increase in the percentage of exports stands out as an indication of the improvement in the quality of goods produced in the country. Finally, in recent years, China has dedicated more resources to research and developments as a strategy to improve innovation within the country and its overall economic growth. Other issues of concern likely to undermine the prospects of the country's economic growth include the limited geographical size, aging population, and limited natural resources. As such, South Korea needs to emphasize innovation and improve the business environment as its main strategy for sustainable economic growth in the future to maintain its continuous economic miracle.

• Journal of Korea Trade
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• v.25 no.1
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• pp.18-33
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• 2021

Purpose - This paper investigates the causal relationship between logistics infrastructure development and the economic growth of Korea. Considering the industrial and economic structure of Korea, it is likely that logistics infrastructure is positively associated with the economic growth of the country. Design/methodology - The causal relationship between logistics infrastructure and economic development is estimated using Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) considering long-run equilibrium between the two factors. To this end, a dataset consisting of 7 logistics infrastructure proxies and 5 economic growth indicators covering the period of 1990-2017 is used. Findings - It was found that causality, in general, runs from logistics infrastructure development to economic growth. Specifically, the results indicate that maritime transport is positively associated with the economic growth of Korea in terms of GDP and international trade. In addition, other modes of transport also have a positive impact on either the GDP or international trade of Korea. Originality/value - While existing studies in this area are based on either regional observations or a specific mode of transport, this study presents empirical evidence on causality between logistics infrastructure and the economic growth of Korea using a more comprehensive dataset. In addition, the findings in this paper can provide valuable implications for transport infrastructure development policies.

• Korea Trade Review
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• v.44 no.2
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• pp.173-188
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• 2019

The purpose of this study is to investigate the causal relationship between the logistics industry and the economic growth in Korea, and to provide implications for the contribution of the logistics industry to economic growth. Unlike Previous Related Studies, we derive short-term and long-term effects through dynamic panel analysis such as panel Granger causality test and impulse response function estimation using panel vector error correction model. The results of the empirical analysis are as follows: Labor input of the logistics industry has the greatest positive impact on economic growth. And capital input and total sales of the logistics industry have a negative effect on economic growth. This means that Korea's logistics industry features labor-intensive growth. In addition, We have also found that the growth (sales) and capital input of the logistics industry have not yet had a direct positive impact on economic growth. Therefore, the results of this analysis provide implications for the direction of logistics industry policy to enhance contribution of the logistics industry to economic growth.

• Korean System Dynamics Review
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• v.10 no.1
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• pp.5-32
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• 2009

This paper revisited the key advances on System Dynamics modeling about traditional macro-economic models and economic growth structures, and then tries to elaborate a new model based on the endogenous growth theory that incorporates new growth factors, relevant to knowledge/technology as well as the Environment, into traditional growth models. Accordingly, the new model augments the acceleration and multiplier loops and the balancing ones representing market clearing mechanism with a simple numerical example. The authors thus provides macroeconomic System Dynamics analysts with a milestone to model macro-economic structures reflecting on traditional and cutting-edge theories on sustainable economic growth and general equilibrium modeling.

• Korea Trade Review
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• v.41 no.4
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• pp.41-59
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• 2016

Given the increasing importance of entrepreneurship in a nation's economic growth, this study empirically examined the effect of entrepreneurial behavior and environment on economic growth based on country level data. While previous studies have centered on entrepreneurship as a dominant variable that impacts economic growth, this study has extends the discussion by empirically testing the effects of two entrepreneurial variables, which are entrepreneurial behavior and entrepreneurial environment, on economic growth. Furthermore, the study attempted to examine the moderating effects of trade and innovation on the relation between the independent variables and economic growth. According to the panel analysis using data from GEM and World Bank, both entrepreneurial behavior and environment affected national economic growth, completely or partly. Results showed that opportunity-driven entrepreneurial behavior has a significant effect on economic growth, suggesting that qualitative aspect of entrepreneurial activities are critical to economic growth. The results also indicated that both trade and innovation have significant moderating effects on the relationship between governmental support program and economic growth.

• Asian Journal of Innovation and Policy
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• v.6 no.1
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• pp.94-110
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• 2017

This paper approaches knowledge capital as social infrastructure and analyzes its impact on economic growth. To this end, we constructed a panel dataset for 120 countries for the years 2000-2014 and estimated the economic growth function using the panel analysis. As proxies for knowledge capital, we used the R&D expenditure per capita and the number of patent applications per thousand people in each country, both measured in stock. Economic growth was measured in terms of real GDP per capita and real value added per capita at the industry level. The empirical findings demonstrate that knowledge capital accumulated in a society significantly promotes economic growth. Especially R&D stock increases real value added per capita in all industries-not only manufacturing, but also services and agriculture-implying substantial inter-industry spillover effects. The findings of this study suggest that knowledge capital boosts economic growth as core social infrastructure.