SUSTAINABLE ECONOMIC GROWTH - A CONDITION OF EXIT FROM EUROPEAN ECONOMIC CRISIS | Author : Dusanka Jovovic Ph.D | Abstract | Full Text | Abstract :European Union response to the challenges of the economic crisis, a document entitled "Europe 2020". It contains three mutually reinforcing priorities: smart growth (development of an economy based on knowledge and innovation), sustainable growth (promote the economy more efficient use of resources, which is greener and more competitive and inclusive growth (stimulating the economy, characterized by a high employment rate and which generates social and territorial cohesion) |
| DEVELOPMENT ECONOMICS OF NATURAL RESOURCES COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS | Author : Dragan Mihajlović Ph.D, Biljana Ilić MSc, Zoran Simonović MSc | Abstract | Full Text | Abstract :The environment, that surrounds the whole operation and activities on Earth, is necessary to consider for two reasons. The first aspect is the environmental component, while the second is linked to the economic system and economic component. Modern production must also be treated as a complex ecological-economic system. Ecological system includes elements of the environment that mankind use in activities, processes and adjusts it to meet owen needs. On the other side, the man often produce a lot of unwanted products, which burden the ecosystem. The natural environment is the totality of natural resources, as well as conditions that are closely related to the human society. Human economic activity is any activity of human society, which is the purpose to achieve a greater volume of production, but also the higher profits at the end of the production cycle. In such correlated, economy and ecology come up with conflicting interests. The purpose of the economy is the production volume and higher profit or a greater increase, while the purpose of ecology involves just limited growth and sustainable production in ecosystem for surviving. The paper deals with the sustainable economy of natural resources which are connected with environment, and it also presents a brief overview of some of the basic characteristics of these areas. |
| INNOVATION AND DEVELOPMENT CONVERGENCE OF COUNTRIES IN ROBERT SOLOW’S GROWTH MODEL | Author : Slobodan Cvetanović Ph.D, Igor Novakovic Ph.D | Abstract | Full Text | Abstract :Development convergence of countries implies the attitude according to which economies with low GDP per capita have marked economic growth rate only if they are under the point that represents long term economic balance, which is usually the case. This was at the same time one of the key messages of neoclassical growth model by the Nobel Laureate for economics Robert Solow in 1985. However, numerous researches show that there is no clear pattern of convergence of countries at the different development level. Empirics confirms that a number of initially underdeveloped economies have had high growth rates, while a great number of countries have revealed low growth rate in the long run. So, for a number of countries the hypothesis on development convergence has been proved right. In contrast, for the majority of countries, empirical research have not proved the tendencies that developing countries according to the criterion of the height of GDP per capita in time have legally come closer to economically developed countries. In short, the convergence of countries with different initial levels of economic development could be a reasonable hypothesis for some lesser-developed countries in a certain period of time, but that is not the case of most developing countries. |
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