Two-tiered entrepreneurship and economic development

This paper argues that there are two tiers of entrepreneurship important for economic development. One is concerned with investments in productive technologies that improve productivity and better service consumer needs. The other is concerned with the creation of protective technologies that secure citizens’ private property rights vis-à-vis one another. In the developing world where governments cannot or do not protect citizens against predation, “institutional entrepreneurs” devise private mechanisms of property protection, providing the security required for productive entrepreneurship to grow. However, private protection technologies can be a double-edged sword. While private protection technologies enable some investment and exchange by securing citizens’ property where government does not, potential constraints on these technologies’ effectiveness may simultaneously limit their ability to expand investment and exchange beyond modest levels.     

From latent to emergent entrepreneurship: the knowledge spillover construction circle

The Journal of Technology Transfer - The process that turns knowledge into innovation is highly ambiguous and complex. This study merges economic and management perspectives to extend the knowledge...     

Nexus between defence spending,economic growth and development: evidence from a disaggregated panel data analysis

Economic Change and Restructuring - This study investigates the causal effect relationship between defence spending, economic growth and development in three regions for the period 1990–2018....     

Financial development and economic growth in India: some evidence from non-linear causality analysis

In the light of the recent observation that the relationship between financial development and economic growth is one of non-linear and limitations of granger test, this paper re-examined relationship in the framework of non-linear Granger causality employing (Diks and Panchenko in Stud Nonlinear Dyn Econ 9(2), 2006) test. The limitation of non-stationarity of earlier study is also addressed using the Toda and Yamamoto (J Econ 66:225–250, 1995) test. The present study attempts to undertake this exercise, as causal inference is sensitive to the twin limitations of non-stationarity and non-linearity. We used principal component analysis to construct index of financial development comprising alternative measures of financial development. The analysis has been carried out for the period 1990–2010. The results of Toda–Yamamoto and Diks–Panchenko tests reveal that financial development and economic growth bear no causal relationship, a finding contrary to the findings of several of the existing studies in the Grangerian framework.     

Italian women after development: Employment,entrepreneurship, and domestic work in the Third Italy

The highly successful economic development over the past 30 years of central and northeastern Italy, commonly referred to as the Third Italy, has created significant economic and social gains for the regions' women. The high historical prevalence of extended and multiple households among agricultural sharecroppers provided the social materials necessary for constructing a rapid and efficient engine of accumulation in the area's dynamic, small-firm-based economy. Though women have achieved some economic autonomy through employment and entrepreneurial activities, their achievement of greater economic equity is impeded by the continuing double burdens of employment inside and outside of the home. After examining the dimensions of women's status mobility with particular reference to the Marche region, one of the Third Italy's most economically dynamic, as well as socially conservative regions, it is argued that increasing state subsidies to families with children might increase women's options and help achieve greater equity between the sexes.     

Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis

Economic Change and Restructuring - This study examined the effects of both aggregate and disaggregated infrastructural development indices (such as transport, electricity, ICT, and water and...     

Household formation, institutions, and economic development: Evidence from imperial Russia

Household formation patterns have been adduced in recent years by historians and other social scientists to account for the economic development of western Europe. The so-called European Marriage Pattern, which prevailed throughout northwest Europe, is viewed as having been particularly conducive to early industrialisation and economic growth. But to what extent were household formation systems exogenous to the broader economic and social context in which they were located? Evidence from nineteenth-century Russia indicates that family systems were influenced by the same variables that determined the shape of the local economy; they were part of a complex web of institutions and thus cannot be viewed as independent determinants of economic development.     

Export diversification and economic performance: evidence from Brazil, China, India and South Africa

In this paper we discuss relationship between export diversity and economic performance, focusing on Brazil, China, India and South Africa (BCIS). Using time data on exports over the period 1962?C2000 and Applied General Equilibrium (AGE) models for each country, we note the similarities as well as differences in the patterns of diversification in these countries. We find evidence of a U-shape relationship between per capita income and export specialization in at least China and South Africa, and given that the results from Granger causality testing are inconclusive and not robust with regards to export diversification measures, some preliminary evidence from the results suggest that export diversification Granger causes GDP per capita in Brazil, China and South Africa, but not in India, where it is rather GDP per capita changes that are driving export diversification. From AGE modeling we find that South Africa differs from the other economies in that it is the only case where export diversification has an unambiguously positive impact on economic development while in contrast in Brazil, China and India, it is rather export specialization that is preferred. We show that the manner in which export diversification is obtained may be important: if it is obtained with less of a reduction in traditional exports, the impacts are better (less negative).     

Breaking up is hard to do: the economic impact of provisional funding contingent upon evidence development

Funding contingent upon evidence development (FED) has recently been the subject of some considerable debate in the literature but relatively little has been made of its economic impact. We argue that FED has the potential to shorten the lag between innovation and access but may also (i) crowd-out more valuable interventions in situations in which there is a fixed dedicated budget; or (ii) lead to a de facto increase in the funding threshold and increased expenditure growth in situations in which the programme budget is open-ended. Although FED would typically entail periodic review of provisional or interim listings, it may prove difficult to withdraw funding even at cost/QALY ratios well in excess of current listing thresholds. Further consideration of the design and implementation of FED processes is therefore required to ensure that its introduction yields net benefits over existing processes.     

The economic effects of judicial accountability: cross-country evidence

Judicial independence is not only a necessary condition for the impartiality of judges, it can also endanger it: judges that are independent could have incentives to remain uninformed, become lazy or even corrupt. It is therefore often argued that judicial independence and judicial accountability are competing ends. In this paper, it is hypothesized that they can be complementary means towards achieving impartiality and, in turn, the rule of law. It is further argued that judicial accountability can increase per capita income through various channels one of which is the reduction of corruption. First tests concerning the economic effects of JA are carried out and on the basis of 75 countries, these proxies are highly significant for explaining differences in per capita income drawing both on OLS as well as TSLS.

Innovation capacity and economic development: China and India

Decomposing the GDP growth from 1981 to 2004, this paper finds that innovation capacity has contributed significantly to the economic growth of China and India, especially in the 1990 s. Outputs of the national innovation system, measured by patents and high-tech/service exports, demonstrate the considerable progress China and India have made in innovation capacity. The enhanced innovation capacity of China and India is primarily due to their heavy investment in the inputs of innovation system, i.e., R&D expenditure and R&D personnel, in recent decades. This paper emphasizes the role that the governments have played in promoting innovation capacity and their contribution to economic development. Both governments have transformed their national innovation systems through linking the science sector with the business sector, providing incentives for innovation activities, and balancing import of technology and indigenous R&D effort. Using case studies of domestic biotech firms in China and India, this paper also offers micro-level insights on innovation capacity and economic development: (1) innovation capacity has become essential for domestic firms?? market success and (2) global institutional factors and national government policies on innovation have considerable influence on the choice of innovation at the firm level, i.e., to conduct indigenous R&D or to import foreign technology.     

Crime,youth gangs,and urban transition: The social dislocations of postindustrial economic development

On the basis of a multivariate analysis of quantitative data from all U.S. cities of 25,000 or more in 1970 and 1980, this paper investigates the impact of recent economic changes and population shifts on the levels of violent and property crime. Further investigation of a subset of cities yields information on the effect of these shifts for the development of youth gangs. The findings illustrate the criminogenic consequences of transition from a manufacturing to a service economy, where changes in technological conditions undermine the comparative locational advantages of cities as industrial centers and worsen economic opportunities for the unskilled urban poor. The results suggest that higher crime rates and more youth gangs are among the unintended consequences of the nation's patterns of postindustrial development.     

Bankruptcy systems and economic performance across countries: some empirical evidence

This paper examines the relationship between the insolvency systems and the investment share of GDP across countries. The objective is to find out the relationship between bankruptcy procedures and economic performances around the world. Empirical evidence suggests that: (1) the investment share of GDP is higher in those countries characterized by highly efficient bankruptcy system; the more efficient the insolvency procedures in terms of time, cost and recovery rate, the more readily available debt is and the higher the Investment/GDP ratio is; (2) the investment share of gross domestic product is positively associated with the degree of sophistication of the Bankruptcy Law, at least below a certain level of legal production; (3) data suggest some complementary effect between Bankruptcy Law and Enforcement for rich countries, while the interaction term indicates some substitution effect when poor countries are considered. Some policy implications conclude the work.     

The dynamic interactions among foreign direct investment, economic growth, exports and unemployment: evidence from Taiwan

The vector autoregression (VAR) method of variance decomposition and impulse response function analysis was applied to analyze dynamic relationships among foreign direct investment (FDI), economic growth, unemployment, and trade in Taiwan. The analysis results show that both economic growth and exports have positive impacts on FDI inflow; however, export expansion has a negative impact on FDI outflow. FDI inflow also has an obvious positive impact on exports and economic performance. The evidence also shows that there is no relationship between FDI inflow and unemployment. In addition, we found that a positive relationship exists between economic growth and exports while a negative relationship exists between unemployment and economic growth.     

Government expenditure on public order and safety,economic growth and private investment: Empirical evidence from the United States

The analysis begins by using annual data for the US from 1959 to 2003 to examine the macroeconomic relationship between government expenditure on public order and safety, output and investment. In practice, total spending on public order and safety is divided up into four categories (police force, fire service, law courts and prison service) so in the second part of the analysis we test for Granger causality between output, investment and each category of spending. But the division of aggregate spending may give rise to trade-offs/complementarities so in the final part of the analysis Granger causality tests are used to investigate this issue. Among other things, the results suggest that changes in output Granger cause changes in total spending on public order and safety. In particular, when total spending is disaggregated the findings suggest that changes in output Granger cause changes in spending on the police force and the law courts.