Regional Economic Development Research

Modelling the Determinants of Coal Consumption in China

2024-06-03T11:49:09+08:00

This study investigates the determinants of coal consumption in China, contributing to the ongoing debate on whether to replace coal or remain the dominant energy source. The study examines data extracted from different reliable sources including British Petroleum (BP), world Bank Data Indicator (WDI) and International Monetary Fund (IMF) ranging from 1985 to 2020. Autoregressive Distributed Lag (ARDL) model set was employed to estimate the short-term and long-term dynamics of the variables. Unit root tests were performed to assess the stability of variables, and Granger causality test was employed to investigate directional links. The findings revealed that GDP, Government Expenditure and Industrialization have a positive significant marginal relationship with Coal consumption in both the short and long run, whereas Crude Oil Prices and Domestic Credit have a negative impact on Coal Consumption. The analysis also reveals unidirectional causality flow of all considered variables from economic growth rates. The results suggest that coal and oil should remain the dominant energy sources in the Chinese economy to increase energy efficiency while recommending gradual investment and research in energy they are also renewed, with attention to population growth.

Does Exchange Rate Undervaluation Have a Symmetric or Asymme-tric Effect on Economic Growth?

2024-07-23T15:10:23+08:00

This paper investigates the asymmetric pass-through of real exchange rate undervaluation (Underval) on economic growth. The study using the autoregressive distributed lagged (ARDL) and non-linear autoregressive distributed lagged (NARDL) models reveals the complex and asymmetric effects of Underval on economic growth across different economies for the period 1984-2022. In developing countries, particularly those with floating exchange rate regimes, undervaluation can enhance economic performance by boosting exports and attracting foreign investment. However, in developing countries with fixed exchange rate regimes, undervaluation poses significant challenges and can lead to negative economic outcomes due to the rigidity and financial burdens associated with maintaining a fixed exchange rate. Conversely, developed countries and emerging markets exhibit a more muted response to underval, reflecting their greater economic stability and resilience. These findings highlight the importance of tailoring exchange rate policies to each country's specific economic context and exchange rate regime to optimize their impact on economic growth.

Initiation of Financial Inclusion in Rajasthan: Implication of the Pilot Project Launched in Rajsamand District of Rajasthan (India)

2023-10-16T08:46:34+08:00

A vast part of the population in India is standing on the margins of the financial system of India. These 'under-banked' people have attracted great concern from the policymakers in India. Financial inclusion (FI) is an important key factor in the economic development of a nation and the development of society by reducing the gap between the haves and the have-nots, by channelling the money flow into the economic system. It gives people easy access to the financial stream, which they would otherwise not have access to. This research article establishes the importance of financial inclusion for a country like India where various stakeholders are likely to play a crucial role in the development of the whole initiative. FI improves the economy. To develop self-reliance in the economy, the State should create a congenial atmosphere for individuals, households, and institutions to avail banking-related services easily. The banking system as a whole plays a crucial role in economic growth, and a robust financial service system is the foundation for spectacular growth and all-around development. India needs to focus on financial inclusion in order to stand out on the global platform. FI needs to go a long way to reach the core poor. Despite several drives of FI initiated by various Governments, Banks, and other Institutions, nearly 30 percent of the active population of India is still excluded from the formal channel of financial services. Merely opening no-frill bank accounts Jan-Dhan accounts will not serve the purpose. Formal financial institutions should be able to create trust and connect with those below the poverty line and who are on the borderline of poverty by developing strong bonds and linkages with system-based financial organs. Financial Inclusion is yet to deliver the warranted outcomes in India and much is to be done here, but it is undoubtedly playing an important role and yielding desired results.