scholarly journals What determines the success of economic transition? Constructing regional advantage for Eastern and Western European regions

2020 ◽  
Vol 70 (2) ◽  
pp. 163-194
Author(s):  
Korneliusz Pylak ◽  
Elżbieta Wojnicka-Sycz ◽  
Piotr Sycz

AbstractThe aim of this paper is to identify the differences in the determinants of successful transition (understood as the creation of a new development path) between the eastern and the western EU Member States between 1994 and 2014 and elaborate assumptions for a strategy of constructing regional advantage for them at the NUTS2 level. We find that the regional transition requires individual approaches to using comparative advantage at the beginning of the process and then competing with specific advantages that can be consciously constructed throughout the process. Therefore, we hypothesise that a successful transition requires constructing regional advantages based on the knowledge-related factors, leading to specialisation in the knowledge-intensive industries. Furthermore, we state that the way of constructing such advantages differs across the regions. All of our hypotheses were confirmed. Both groups of regions had different comparative advantages at the beginning of the period and constructed competitive advantage based on related knowledge-intensive industries, leading to their specialisation. Interestingly, although the process of building regional advantage was similar, the factors used to create it were different, had a different impact on GDP growth and led to a different specialisation.

2021 ◽  
Author(s):  
Dalila Chenaf-Nicet ◽  
Betty Asse

Abstract For some authors (Rodrik, 2015 and 2017) deindustrialization process is premature in sub-Saharan countries. This means that the period of industrialization has been too short, with too little job creation and growth to guarantee a development trajectory. For these authors, the consequences for development are necessarily negative. However, in this work, the economic causes are: the global demand for services is growing faster than the demand for manufactured goods. This growth would leave too few development opportunities for industries in these countries that suffer from narrow domestic markets. Global demand for services and weak domestic demand are the causes of this deindustrialization. However, according to other authors (Loungani et al. 2017), if sub-Saharan African countries (SSA) deindustrialize, they should still be able to benefit from development opportunities through the services sector, which will be a new development path without factories (Ghani and O’Connel, 2014; Dihel and Grover, 2016). This article is part of the controversy. It tests the impacts of different sectors on growth, for a sample of 57 developing countries (Asia, SSA, and Latin America) in a panel data model over the period from 1984 to 2017. Our work shows that the services sector generates few spill-over effects on the income of SSA, which remains highly specialized in low-knowledge-intensive services.


2015 ◽  
Vol 37 (1) ◽  
pp. 48-65 ◽  
Author(s):  
Colin C Williams ◽  
Ioana Alexandra Horodnic

Purpose – The purpose of this paper is to evaluate critically the “marginalisation” thesis, which holds that marginalised populations disproportionately participate in undeclared work. Until now, the evidence that participation in undeclared work is higher in marginalised areas (e.g. peripheral rural localities) and marginalised socio-economic groups (e.g. the unemployed, immigrant populations and women) has come from mostly small-scale surveys of particular localities and population groups. There have been no extensive quantitative surveys. Here, the intention is to fill this gap. Design/methodology/approach – To do this, we report a 2007 survey of participation in undeclared work involving 26,659 face-to-face interviews conducted in 27 European Union (EU) member states. Findings – The finding is that the marginalisation thesis is valid when discussing younger people and those living in peripheral rural areas; they are more likely to participate in undeclared work. However, there is no significant association between immigrant populations and participation in undeclared work. Moreover, a reinforcement thesis, which holds that the undeclared economy reinforces the spatial and socio-economic disparities produced by the declared economy, applies when considering those with fewer years in education, women, the unemployed and less affluent European regions; they have lower participation rates than higher educated people, men, the employed and affluent European regions. Research limitations/implications – The outcome is a call for a more nuanced understanding of the marginalisation thesis as valid for some marginalised populations but not others. Whether similar findings prevail at other spatial scales and in other global regions now needs investigating. Practical implications – This survey displays that although it is appropriate to target some marginalised populations when tackling undeclared work, this is not valid for others (e.g. immigrant populations, the unemployed, those living in less affluent EU regions). Originality/value – The first extensive evaluation of whether marginalised populations are more likely to participate in undeclared work.


2016 ◽  
Vol 40 (4) ◽  
pp. 405-439 ◽  
Author(s):  
Attila Varga ◽  
Tamás Sebestyén

Framework Programs (FPs) of the European Union (EU) finance collaboration among research units located in different parts of Europe and as such they mediate the flow of a significant amount of knowledge across distantly located European regions. Contrary to expectations, no evidence has been found in the literature on the supposed positive regional innovation impact of FP participation. We assume in this article that the overall missing impact of EU FP participation on regional patenting masks an important spatial regime effect. Our results are supportive of this assumption. While FP research subsidies act as a substitute for funding from other sources in regions of old EU member states, innovation in lagging regions in Central and Eastern Europe tends to rely more on the external knowledge transferred via FP-funded research networks to compensate for their less developed local knowledge infrastructures. Our findings are important, as they suggest that, in combination with other policies, strengthening research excellence and international scientific networking in relatively lagging regions could be a viable option to increase regional innovativeness.


Author(s):  
Esra Ballı ◽  
Muammer Tekeoğlu

This study analyses how real GDP growth, inflation, employment, foreign direct investment inflow and income equality for Russia and Ukraine changed during the process of economic transition from 1991 to 2011. Most opinions agree that initial conditions and economic situation of a country, natural resources, historical background and institutions affect the process of economic transition. We see that both Russia and Ukraine experienced a transitional recession in the early 1990s at the start of the transition and an increase in the inflation rate. The Gini indexes of Russia and Ukraine have increased dramatically. The unemployment also went up in both countries until 1999s and reached a peak 13% during the 1998 Russian crisis in Russia. The growth rates of both countries were below 1% until 1997-1998, although it started to increase, after 2000, it decreased sharply in 2008 because of the Global Economic Crisis experienced the same year.


2021 ◽  
Vol 9 ◽  
Author(s):  
Xin Zhang ◽  
Xiaojia Dong ◽  
Xinyu Li

As an important form of clean energy generation that provides continuous and stable power generation and is grid-friendly, concentrated solar power (CSP) has been developing rapidly in recent years. It is expected that CSP, together with wind and solar photovoltaic, will constitute a stable, high percentage of renewable energy generation system that will be price-competitive with conventional energy sources. In this study, a dynamic programming approach based on minimum cost was used to explore the optimal development path of CSP generation in China by 2050. A learning curve model and a technology diffusion model were used as constraints. The impact of factors such as Gross Domestic Product (GDP) growth, incentive policies, technological advances, grid absorptive capacity, and emission regulation schemes on the development of CSP generation was discussed in the context of sensitivity analysis and scenario comparison. This study has reached the following conclusions: 1) the government cannot achieve the target for cumulative installed capacity in 2050. Considering the interaction of relevant factors, the target would be hard to achieve even under favorable conditions; 2) as a key factor affecting the development of CSP, the incentive policy is closely related to construction cost. It is noteworthy that although the target can be achieved with a higher investment ratio, the CSP industry has failed to create a good ecological environment in the early stage of development; 3) GDP growth and learning rate are important factors influencing the development path in later stages; and 4) although they operate as potential factors affecting construction costs, grid absorptive capacity and carbon permit prices have limited impact on the development of CSP generation.


Ekonomia ◽  
2018 ◽  
Vol 23 (4) ◽  
pp. 95-109
Author(s):  
Ewa Sobolewska-Poniedziałek

The financial well-being of people in mature and old age in selected countries of the European UnionThe dynamic nature of demographic changes taking place on the European continent implies the necessity of their analysis, both in the context of causes and effects. The scope of the analysis of these works will take into account first of all the consequences of changes in the age structure of the population, as a result of which the percentage of older people increases. This, in turn, determines that the socio-economic effects of these changes may be on the one hand a barrier to development, and on the other, a chance for new development opportunities. The purchasing power of people in mature and old age, combined with their growing share in the overall population structure, may inspire and cause the emergence of new industries and market segments focused primarily on meeting the needs of older people. The aim of the article is a comparative analysis of financial well-being of older people as a factor affecting the quality of life. The analysis will cover the situation of older Poles in the context of the situation of citizens of other EU Member States. The research will use the method of desk research, data from international statistics, in particular from Eurostat, will be used. In addition, the research methods used in the work will be the description method and critical analysis of domestic and foreign literature.


2011 ◽  
Vol 6 (1-2) ◽  
pp. 35-41
Author(s):  
Balázs Kotosz

The collapse of communist economies in Eastern Europe and former Soviet Union, as well as their subsequent transition towards market economies, was arguably one of the most far-reaching economic events of the 20lh century. Pain accom panied the economic transition process; all countries experienced a major fall in output after the start of reforms. The growth performance in transition economies was widely different by countries. The paper is looking for the reasons of the growth differences. Even if the initial conditions did not give the same possibilities to governments, early reforms has opened the way to market processes, which seems to be more efficient than state owned institutions in transition economies. In this context, the lower is the state participation, the highest is growth. Empirical analyses justify that GDP growth is higher in countries where state reallocation is decreasing and where tight fiscal policy has been kept.)


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