DOI: 10.32609/j.ruje.11.128519

Authors: Bhagirath Baria, Ria Kusumaningrum, Anggita Suryana, Devanshi Mehta

Abstract: This paper addresses a significant gap in the existing literature on financial inclusion — namely, the dynamic instability of the impacts generated by its determinants in four major emerging market economies: Brazil, Russia, India, and China. A time-varying coefficients framework is applied to examine whether the factors shaping financial inclusion at the aggregate level produce nonlinear effects over time. The analysis covers the period from 2000–2001 to 2022–2023. A composite financial inclusion index is constructed to capture inclusion across three key dimensions — availability, access, and usage — using the distance function approach. Three classes of determinants are modeled: socio-demographic, infrastructural, and macroeconomic variables. Evidence indicates structural instability in the financial inclusion process for the BRIC economies, with several determinants exerting nonlinear impacts over time. The findings challenge the conventional assumption of time-invariant relationships between financial inclusion and its dominant determinants. The results reveal considerable temporal volatility in the effects of macroeconomic factors, including growth and inflation, on financial inclusion across emerging markets. Policymakers should adjust strategies, moving beyond assumptions of linear processes and managing dynamic, nonlinear factors more effectively to achieve universal financial inclusion.

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DOI: 10.32609/j.ruje.11.164511

Authors: Zainab Mourad, Mert Gül

Abstract: Despite the growing emphasis on the nexus between growth and macroeconomic indicators, research on the influence of cryptocurrencies on economic performance remains limited. This study compares the impact of two leading cryptocurrencies, Bitcoin and Ethereum, on economic growth, alongside inflation, market uncertainty, and oil and gold prices, using panel data from 14 countries between Q3 2015 and Q3 2023. The results demonstrate robust cross-sectional dependence, indicating that economic shocks in one country affect the entire group. Therefore, second-generation tests are employed to confirm the presence of stationarity in the variables. Except for Bitcoin’s trading volume, panel fully modified ordinary least squares estimations reveal a significantly positive impact of cryptocurrencies on growth. Cointegration is present in the long run, while in the short run, strong bi- and unidirectional causality is found for all cryptocurrency proxies. The study provides insights that can help policymakers develop strategies to align economic growth with the crypto market, benefiting the broader economy.

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DOI: 10.32609/j.ruje.10.105745

Authors: Tijani Forgor Alhassan, Eugenia Owusu Ansah, Shakizada U. Niyazbekova, Tatiana K. Blokhina

Abstract: This study outlines the features of financing investment development in Sub-Saharan African countries. Using the financial determinants of GDP, a model was developed based on the method of least squares employing data covering 2004–2018. It was revealed that a positive correlation exists between economic growth and bank loans as well as official development assistance. The results of the model indicate that bank loans and remittances significantly increase economic growth. However, both foreign direct investment and official development assistance (ODA) were found to be ineffective in promoting development, and this is attributable to its investment model (resource-seeking) and the conditions under ODA financing, respectively, in the region. Bank loans were found to be the most influential in promoting sustainable growth in the region. Hence, it is instructive that the reforms are needed and incentives are to be developed to improve the level of the region’s financial and banking sector development and facilitate the sustainable socioeconomic development of these economies.

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DOI: 10.32609/j.ruje.5.35233

Authors: Valeriy V. Mironov, Liudmila D. Konovalova

Abstract: The article considers the problem of the relationship of structural changes and economic growth in the global economy and Russia in the framework of different methodological approaches. At the same time, the paper provides the analysis of complementarity of economic policy types, which, on the one hand, are aimed at developing the fundamentals of GDP growth (institutions, human capital and macroeconomic stabilization), and on the other hand, at initiating growth (with stable fundamentals) with the help of structural policy measures. In the study of structural changes in the global economy, new forms of policies of this kind have been revealed, in particular aimed at identifying sectors — drivers of economic growth based on a portfolio approach. In a given paper a preliminary version of the model of the Russian economy is provided, using a multisector version of the Thirlwall’s Law. Besides, the authors highlight a number of target parameters of indicators of competitiveness of the sectors of the Russian economy that allow us to expect its growth rate to accelerate above the exogenously given growth rate of the world economy.

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DOI: 10.3897/j.ruje.4.27743

Authors: Vladimir Mau

Abstract: The paper discusses the main challenges of Russian economy at the turning period from contraction to growth. The analysis is based on comparison of global economic trends and special features of Russian performance. Among global problems, it concentrates on prospects of “non-inflation growth”, perspectives of global currencies and the role of cryptocurrencies, central banks independence and their role in economic growth stimulation, new tasks and patterns of government regulation, inequality and growth. In the Russian case, the key topics are prospects of macroeconomic stimulation of growth, inflation targeting, new fiscal rule, social dynamics and new challenges to welfare state. The paper concludes that the main obstacles for economic growth in Russia are concentrated in the non-economic area.

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DOI: 10.1016/j.ruje.2016.11.002

Authors: Evsey Gurvich

Abstract: This article is an attempt to find a grounded answer to the question of why many large-scale economic development programs worked out in Russia from 2000 through 2010 have failed to yield the expected results. To this end, the author has diagnosed the Russian economy, including a comparative analysis against 20 countries at similar levels of development and analyzed both the Russian and global experience in developing and implementing economic programs. The author concludes that the development of the Russian economy is currently hindered by a rigid institutional framework and that growth cannot accelerate without removing it as part of the political process. Based on the analysis of various types of institutional reforms, specific measures are proposed that can ensure the country's evolutional development and can mitigate the economic and social risks threatening Russia if the status quo is maintained.

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