How The Energy Sector Is Affecting Economic Growth? – Comparing The United Kingdom with India (Published)
A country’s economy depends heavily on energy. Economic productivity and industrial growth depend on the use of energy in modern economies. In a modern economy, energy is responsible for more than one-tenth of the cost of production but accounts for most industrial growth, according to Barney and Franzi (2002). The economy’s need for energy has grown at about the same rate as that of wealth. It is a fact that wealth creation is predominantly calculated based on the usage of energy by society. At the beginning of the 19th century, biomass is the preferred choice of fuel. Energy demand in the west and advanced economies increased more rapidly because of rising standards during the end of the 20th century. In most production and consumption activities, energy plays a significant role in economic growth. An analysis of the energy sector components and their impacts on economic progress in two countries, the United Kingdom and India, was conducted based on an analytical approach. It is found in both countries that energy efficiency and foreign direct investment (net inflows) are positively correlated. Both the United Kingdom and India have significant correlations between energy efficiency and GDP (percentage of GDP). Employment rates and energy efficiency go hand in hand in both countries. India’s GDP per capita growth (annual %) is positively correlated with energy efficiency (0.447). This study followed only the economic indicators from the World Bank Development Indicators report.
Citation: Merlin Atchuthen, and S. Sankara Muthu Kumar (2022) How The Energy Sector Is Affecting Economic Growth? – Comparing The United Kingdom with India, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.13-23
Keywords: Consumption, Energy Efficiency, GDP, Inflation, Unemployment, per capita growth
Accounting Implications of Oil Price, Interest Rate and Unemployment on Nigeria’s Economic Growth (Published)
Holding other variables constant, exchange rate and unemployment are supposed to have an inverse relationship. Is this really the case in the Nigerian economy? Does oil price have an impact on unemployment in Nigeria? Our study analyzed the accounting implications of oil price, interest rate and unemployment on Nigeria’s economic growth using data from 1981 to 2019. Using ARDL and VEC models, our finding revealed that all variables had a short and long term association and were statistically significant, hence we recommended better economic policies should be put in place by government to curb unemployment because this has a long and short run implication on GDP, and that if not properly managed can lead to economic and social vices. The government should formulate policies that are economically friendly in order to encourage local production to boost our export and improve our local currency (Naira) and the exchange rate. This will increase local production and firms will create employment opportunities for our teeming population. Increased oil price has really helped in boosting our GDP. However, the economy should be diversified because any drop in oil price will definitely affect our GDP drastically, both in the short and long run.
Keywords: Gross Domestic Product, Interest Rate, Oil price, Unemployment, accounting implication, and economic policy, efficient wage model
The role of Islamic lending institutions in the economic development in Palestine (Published)
The study aimed to identify the role of Islamic lending institutions in the economic development in Palestine. The study examined the most important fields of economic development in Palestine, namely GDP, poverty and unemployment. The researcher used the analytical descriptive method. The study society consisted of two groups. The first was the employees of the Islamic lending institutions, and the second consisted of the beneficiaries of the services of the Islamic lending institutions. The study found many results. the most important of which was that the contribution of the Islamic finance institutions to the increase in the Palestinian GDP was high from the point of view of the employees in the institutions. In addition, its role was high in reducing the rate of unemployment in Palestine from the point of view of both employees in institutions and beneficiaries of its services. However, its role was moderate in reducing the poverty rate from the point of view of employees in institutions, but from the point of view of beneficiaries was high role. The study recommended the need for attention in the Palestinian areas with a high poverty rate, especially the Palestinian camps and the Palestinian countryside. As well as work on building a unified database for the distribution of poverty and unemployment. Also the need to activate the role of the unified Sharia’s supervisory board for Islamic banks to include Islamic lending institutions.
Keywords: GDP, Islamic lending institutions, Poverty, Unemployment, economic development in Palestine