Academic literature on the topic 'Economic growth; EPF investment; saving/investment-led-growth'

Over the years, Malaysia has progressively accelerated its economic development, thanks to the adherence to high rates of domestic savings and investment. Of which, the Employees Provident Fund (EPF) is one of the schemes that caters for the private sector workers. Specifically, this paper investigates the relationship between economic growth and EPF investment in Malaysia for the period of 1970 – 2014. The model, which is derived from the Cobb-Douglas production function, is tested by econometric techniques; Johansen cointegration and Granger causality within VECM. While the EPF investment is proven statistically insignificant in the short run, there is evidence of the saving/investment-led-growth hypothesis being the long run phenomenon for Malaysia. In view of the possible over-dependence on investment funds in generalgoing forward, the policy makers are recommended to reinforce the government’s initiative in facilitating more business ventures as means to attract incoming funds, including FDI flows, towards streaming into the country.    

The growing usage of artificial intelligence such as Robo-Advisor has become one of the biggest developments in the global economy and reduces the level of poverty in the country with a safe, affordable and frictionless environment. In practice, Malaysians have low awareness and not financial discipline about personal savings and financial management. Most of Malaysian people have problems with their retirement planning because they really rely on their EPF funds as their primary source of income. The purpose of this product is to create awareness about the importance of savings and investment for all generations, reduce future financial issues faced by consumers, and encourage people to build wealth based on customer preference. As a result, customers will be more likely to develop a good habit of saving their money for the future and achieving their financial goals. This study used quantitative and secondary data which is collected from The World Bank website. We develop an application of financial Robo-Advisor known as Savings2u that focus on savings and Shariah compliance investment features based on customer risk preference such as conservative or aggressive then let the money grow digitally. In conclusion, Savings2u will help the customer to create and manage the portfolio automatically using the data provided. On the other hand, an increase in total savings would have a beneficial effect on the economic growth, which includes significant investments and an improvement in GDP of the country. Furthermore, countries with deeper and established financial systems also experienced stronger economic growth.

Indonesia has received external debt as an external source of finance to fill in the investment-saving gap in achieving economic growth to improve social welfare. Despite Indonesian economy is able to recover to some extent, based on Bank Indonesia (2018), Indonesia’s external debt at the end of Q2/2018 still amounted to USD 355,7 billion; consisting of government and central bank external debt of USD 179.7 billion, as well as private sector (including state-owned enterprises) external debt of USD 176.0 billion. Therefore, this study aims to examine the trend and impact of external debt on economic growth in the context of Indonesia’s economy. If external debt is found to lead to debt trap, or already in the condition of growth-led debt, its benefits for economic development should be reviewed properly and government policies regarding external debt need to be redesigned. This study is a qualitative research in the form of case study of External Debt and its critical impact in Indonesia. Through observation, data comparison and literature study, it is found that external debt of Indonesia has been dominated by US Dollar and Japanese Yen, which assumed to cause surge in debt repayment.

The current economic crisis has long-term causes that are rooted in the economic dynamics of globalization. I argue that globalization (a) increases the world economic growth rate; (b) is consistent with development, underdevelopment and miracle growth; (c) increases inequality in leading countries; and (d) generates a transition path along which the interest rate diminishes if capital accumulates at a faster rate than technological change. This condition is generated by cheap-factor-seeking foreign direct investment (FDI), which by combining advanced technologies with low costs yields extraordinary profits and experiences lower incentives for innovation. Over the period 1980-2007, liberalization unleashed a wave of globalization, and the international sector experienced miracle growth. Profits rose to all time highs and global saving exceeded global investment. This savings glut or investment shortfall fueled a global housing appreciation, after which excessive risk in a deregulated financial market led to a financial meltdown. While restoring financial markets and reducing the housing market fallout have been immediate priorities for the U.S., economic growth can only be recovered by restoring global investment. Lowering interest rates cannot generate very much investment, nor will consumption flows from fiscal spending. To stimulate the global economy, whole new economic sectors and technologies must be developed in advanced countries, and economic development deepened in underdeveloped countries. At the same time, a global harmonization of corporate taxes, ending the corporate tax haven loophole, would raise funds for publicly provided goods that complement private investment and balance incentives between local and international production. It would also reduce the polarization between developed and underdeveloped countries, balance global markets with global governance, and strengthen global cooperation.

This paper aims at investigating the interplay between inequality, innovation dynamics, and investment behaviors in shaping the long-run patterns of growth of a closed economy. By extending the analysis proposed in Caiani et al. [(2018) Journal of Evolutionary Economics], we explore the effects of alternative wage regimes under different investment and technological change scenarios. Experimental results seem to de-emphasize the role of technological progress as a possible source of greater inequality. Overall, simulation results are consistent with the predominance of a wage-led growth regime in most of the scenarios analyzed: A faster growth of low- and middle-level workers’ wages, relative to managers’, generally exert beneficial effects on the economy and allows to counteract the labor-saving effects of technological progress. Furthermore, a distribution more favorable to workers does not compromise firms’ profitability, but rather strengthen it by creating a more favorable macroeconomic environment, which encourages further innovations, stimulates investment, and sustains economic growth.

Resumo: O objetivo deste artigo é analisar as causas da desaceleração do crescimento econômico da China desde 2008. Duas hipóteses principais são apresentadas na literatura. A primeira é que a China teria caído em uma armadilha de renda média devido a uma suposta incapacidade de fazer a transição de uma economia liderada por investimentos para um crescimento baseado em inovação. Acreditamos que essa hipótese não é convincente, uma vez que muitas empresas de manufatura chinesas têm sido extremamente bem sucedidas em alcançar empresas de manufatura do mundo ocidental nos últimos 15 anos. Uma segunda hipótese é que a China, devido a uma taxa de poupança extremamente alta sustentada por mais de 40 anos, está agora enfrentando uma estagnação secular, ou seja, um esgotamento de oportunidades de investimento lucrativas. Isso significa que uma alta taxa de acumulação de capital, como a sustentada pela China até agora, está resultando em uma produtividade decrescente do investimento, o que pode ser comprovado pelo comportamento da relação produto-capital desde 2008. Nossa conclusão é que o ritmo decrescente de crescimento econômico da China se deve à estagnação secular combinada com uma supervalorização da taxa de câmbio que prejudica a expansão das exportações manufatureiras. Palavras- chave: crescimento econômico, China, abordagem novo-desenvolvimentista. Abstract: The aim of this article is to analyse the causes of growth deceleration of the Chinese economy since 2008. Two main hypothesis are advanced in the literature. The first one is that China had fallen in a middle-income trap due to a supposed incapacity to make a transition for a investment-led economy to an innovation based growth. We think that this hypothesis is not convincing, since many Chinese manufacturing companies are extremely successful to catch-up western-world manufacturing firms in the last 15 years. A second hypothesis is that China, due to an extremely high saving rate sustained for more than 40 years, is now facing a secular stagnation, that is, an exhausting of profitable investment opportunities. This means that a high rate of capital accumulation as the one sustained by China up to now is resulting in declining productivity of investment, what can be proved by the behaviour of output-capital ratio since 2008. Our conclusion is that China decelerating pace of economic growth is due to secular stagnation combined with an exchange rate over-valuation that harms the expansion of manufacturing exports. Key-words: economic growth, China, new-developmentalist approach.

This study aims to analyze the impact of the COVID-19 on the energy sector in Jordan. The steps taken by the Jordanian governments to mitigate the economic and financial impacts that would enhance the resilience of the energy sector was considered. Deductive and inductive analysis methods of were used. Such methods aided to systematically consider the economic consequences of the COVID-19. The results of this study showed that the COVID-19 led to a significant decrease in energy consumption, a decline in economic growth, a significant rise in unemployment, an increase in market instability, and a decrease in the financial position of companies. The recommendations concluded that Jordan should begin to change its policies according to the new data, and take Measures to advance the energy sector by reducing fuel consumption and directing investment in energy saving policies and infrastructure equipment in parallel with the population boom in Jordan.

Savings provide the most important economic link between the past, present and future of a country. An adequate rate of national saving is regarded as an essential condition for achieving targets in the investment and growth rates. For these reasons,· the literature relating to savings and consumption with particular emphasis on their determinants-demographic, monetary, fiscal etc., has shown a phenomenal growth during the last half century. An up-to-date and comprehensive review of theoretical and empirical literature on savings made in Kazmi (1991) led to the conclusion that while literature on the determinants of savings (private, corporate and public) had proliferated over time, there was little work on the 'quantification offactors' causing a differential in the savings rates of two particular countries. This paper makes an attempt to fill this gap by a~opting a simple but innovative methodology which has been used for analysing the national savings rates of India and Pakistan and constitutes the following steps: (a) A regression model incorporating the major macroeconomic variables relevant for explaining the national saving behaviour was specified. (b) The estimation· of the model was instrumental in identification of the signs and magnitudes of coefficients of the variables of the model. Thus the variables could be classified in terms of their negative or positive correlation with the national saving rates. (c) The difference in the average values of the relevant macro variables of the two countries was estimated. This information as given in Table 1 for India and Pakistan for 1960-88 indicates that on an average basis Pakistan performed better than India in real growth rate, export ratio,

Abstract This paper is concerned with the role of effective demand in Malthus’s theory of accumulation expounded in his Principles of Political Economy. As is well known, Keynes praised Malthus for being a forerunner in identifying a lack of effective demand as a cause of depression in economic activity and a constraint on growth. There have since been many interpretations in the literature of Malthus’s position by reference to his arguments against Say’s Law in contending the possibility of “general gluts” and to his theory of capital accumulation. We begin by examining Malthus’s conception of the supply-side factors that determine what we call, “potential accumulation”, being accumulation that is not constrained by demand. The paper then considers the role of effective demand in Malthus’s well known contention of the possibility of “general gluts” and, connectedly, in his theory of demand-constrained capital accumulation. On this basis, we then appraise whether Malthus’s theory anticipates Keynes’s principle of effective demand by reference to the debate on this question in the literature, showing that while Malthus lacked a meaningful saving-investment analysis, he does provide insights important to the modern demand-led approach to growth.

With the growth of the global population, energy demand continues to rise, making cross-regional energy transportation less viable as a sustainable solution. As a result, the construction of facilities for agriculture in cold regions has become increasingly important in the development of modern agriculture. However, cold region facility agriculture faces significant energy and environmental challenges, necessitating the advancement and application of energy saving technologies. This study addresses the high energy consumption in cold region facility agriculture by experimentally evaluating the integrated effects of geothermal heat pumps, solar collectors, intelligent light control systems, LED plant lamps, and smart ventilation systems in saving energy. The focus is on analyzing the technical adaptability and economic feasibility of these technologies under extremely cold conditions in Heilongjiang. The research findings indicate an overall energy saving rate of 17.8%, with energy savings in heating, lighting, and ventilation systems being 17.6%, 18.6%, and 17.4%, respectively. Economic analysis shows that geothermal heat pumps and high efficiency insulation materials have a short investment payback period and are suitable for widespread adoption, while solar collectors and intelligent light control systems are more appropriate for long-term application. This study demonstrates that intelligent and integrated energy saving technologies have significant potential in cold region facility agriculture, providing both data support and technical references for the efficient, low-carbon development of agriculture in cold climates. This study not only provides scientific evidence for the sustainable development of cold region facility agriculture but also highlights the practical implications of these technologies for reducing energy consumption and promoting low-carbon agriculture.