Factors for the Formation of Adjusted Net Savings in the People’s Republic of China

  • Larysa V. RUDENKO-SUDARIEVA Department of International Finance, Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine
  • Yuliia A. SHEVCHENKO Department of International Finance, Kyiv National Economic University named after Vadym Hetman, Ukraine

Abstract

The study investigates the fundamental issues concerning Adjusted Net Savings (ANS) as one of the most objective indicators of modern country development assessment. Due to its complex structural nature, this indicator includes several groups of factors influencing the changing environment of countries or regions.


The purpose of this study was to identify the impact of factors on adjusted net savings as a major indicator of welfare and wealth in modern turbulent environment and to look for new measures of economic development in any country. The use of the adjusted net savings indicator is the result of long reflections, studies, comparisons of World Bank scientists, the European Commission, who acknowledge the loss of universality and diminished relevance of the GDP indicator and support the concept of sustainable development, which implies economic prosperity, closing the gap between the levels of income in different strata of the population, increasing environmental literacy and integrity, reducing energy dependency. It was found that each country had its own features and conditions for the formation of savings, which were selected with consideration of the impact on GDP and on adjusted net savings. But at this stage of the study, we have selected only the main factors that confirm the importance of considering the environmental and social component of sustainable development of the country.As a result, the following key factors in generating adjusted net savings are highlighted: education costs, energy depletion, and natural resource depletion, which is linked to sustainable development for future generations.

References

[1] Barbier, E.B., and Markandya, A. 1989. Blueprint for a Green Economy. Routledge.
[2] Belabed, C., Theobald, T., and van Treeck, T. 2018. Income distribution and current account imbalances. Cambridge Journal of Economics, 42(1): 47-94.
[3] Buckley, P.J., and Casson, M. 2010. The internalisation theory of the multinational enterprise: A review of the progress of a research agenda after 30 years. Macmillan, 40(9): 1563-1580.
[4] Buckley, P.J., and Casson, M. 2019. The internationalization theory of the multinational enterprise: Past, present and future. British Journal of Management. Available at: https://onlinelibrary.wiley.com/ doi/abs/10.1111/1467-8551.12344.
[5] Cieslik, A. 2017. Determinants of MNE activity in Poland: the case of firms from EU-15. Entrepreneurial Business and Economics Review, 5(1): 151-167.
[6] Dorożyński, T., Świerkocki, J., and Urbaniak, W. 2018. Determinants of investment attractiveness of Polish special economic zones. Entrepreneurial Business and Economics Review, 6(4): 161-180.
[7] Hamilton, K., and Clemens, M. 1999. Genuine savings rates in developing countries. World Bank Economic Review,13(2): 333-356.
[8] Lim, S., et al. 2018. Measuring human capital: A systematic analysis of 195 countries and territories, 1990-2016. Lancet, 392(24): 1217-1234.
[9] Lukianenko, D., and Poruchnik, A. 2008. Global Economy XXI Century: Human Dimension. KNEU.
[10] Mariz-Pérez, R., Teijeiro-Alvarez, M.M., and Garcìa-Alvarez, M.T. 2012. The relevance of human capital as a driver for innovation. Cuadernos De Economía, 35: 68-76.
[11] Mozgovyi, O., and Stukalo, N. 2008. Global financial crisis: Theory and practice of overcoming the consequences of financial shocks. Market of Securities of Ukraine, 11-12: 31-36.
[12] Pardi, F., Salleh, A.M., and Nawi, A.S. 2015. A conceptual framework on adjusted net saving rate as the indicator for measuring sustainable development in Malaysia. Journal of Technology Management and Business, 2(2): 1-10.
[13] Pearce, D., and Atkinson, G. 1993. Capital theory and the measurement of sustainable development: an indicator of weak sustainability. Ecological Economics, 8: 103-108.
[14] Rudenko-Sudarieva, L. 2016. Global regulation of international investment processes in the turbulent financial environment. Journal L'Association 1901 SEPIKE, 12: 161-166.
[15] Rudenko-Sudarieva, L., and Gurtov, R. 2010. The processes of globalization and transnationalization: a theoretical and methodological approach to integrated assessment. Redaktsiya.
[16] Rudenko-Sudarieva, L., and Krysiuk, R. 2015. Modern factors in the development of international investment. The Practical Science Edition ‘Independent Auditor’, 14(4): 27-36.
[17] Stiglitz, J., Sen, A., and Fitoussi, J. 2009. The Measurement of Economic Performance and Social Progress Revisited. IEP.
[18] Talberth, J. 2012. Contribution to beyond GDP virtual indicator expo. Available at: http://www.beyond-gdp.eu
[19] Tarabasz, A., Selakovic, M., and Abraham, Ch. 2018. The classroom of the future: disrupting the concept of contemporary business education. Entrepreneurial Business and Economics Review, 6(4): 231-245.
[20] Bloomberg Misery Index. 2019. Available at: https://www.bloomberg.com/news/articles/2019-04-17/the-world-s-most-miserable-economy-has-seven-figure-inflation
[21] Data base of World Bank. 2019. Available at: http://data.worldbank.org
[22] European Commission. 2019. Available at: https://ec.europa.eu/info/index_en
[23] Legatum Prosperity Index. 2019. Available at: https://www.prosperity.com/
[24] National Bureau of Statistics of China. Available at: 2020. http://www.stats.gov.cn/english/
[25] Report of World Bank. 2018. Available at: http://web.worldbank.org
[26] Reports from the Government of the Hong Kong Special Administrative Region. 2017. Available at: https://www.aud.gov.hk/pdf_e/2017eAccounts.pdf
[27] World development indicators 2007: Manual for calculating adjusted net savings, environment department. 2007. World Bank.
[28] World Economic Forum. 2020.Shaping the Future of Digital Economy and New Value Creation.Available at: https://www.weforum.org/platforms/shaping-the-future-of-digital-economy-and-new-value-creation
[29] World Investment Report. 2017. Available at: https://unctad.org/en/PublicationsLibrary/wir2017_en.pdf
[30] World Investment Report. 2018. Available at: https://unctad.org/en/PublicationsLibrary/wir2018_en.pdf
Published
2019-12-30
How to Cite
RUDENKO-SUDARIEVA, Larysa V.; SHEVCHENKO, Yuliia A.. Factors for the Formation of Adjusted Net Savings in the People’s Republic of China. Journal of Advanced Research in Law and Economics, [S.l.], v. 10, n. 8, p. 2497 – 2506, dec. 2019. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/5295>. Date accessed: 21 dec. 2024. doi: https://doi.org/10.14505/jarle.v10.8(46).27.