Research and Development,Competitiveness and European Integration of South Eastern Europe

This article explores the relationship between research and development (R&D) and competitiveness of South East European (SEE) economies from the perspective of European Union (EU) integration. Specifically, the article addresses the question of whether South East Europe is a potential asset or liability to the enlarged EU. SEE countries are quite diverse in terms of levels of competitiveness, with visible effects on the role of R&D, which is confirmed by analysis of R&D demand and supply factors. Improvements in the national innovation systems of SEE countries have largely taken place through vertical linkages on the supply and demand sides. However, a wider role for R&D will depend increasingly on the strength of horizontal linkages within national systems of innovation and their key agent—the local innovative business enterprise sector. This calls for a rethinking of science and technology policy, traditionally defined as a sectoral activity.     

Political Institutions and Public R&D Expenditures in Democratic Countries

While research and development (R&D) expenditure is crucial in a nation's competitive advantage, factors determining levels of public investment in R&D have yet to be examined. This article seeks to fill this void, focusing on different democratic institutions such as presidential versus parliamentary systems, majoritarian versus proportional electoral systems, federal versus unitary systems, bicameral versus unicameral legislatures, and the effective number of parties. Building upon theories of political institutions and government size and utilizing public R&D appropriations data from 18 Organization for Economic Cooperation and Development (OECD) countries between 1981 and 2007, this article reports that democratic institutions do matter in the levels of public R&D spending. However, the effect is more complicated across the different types and performers of research than expected. Additionally, the effect of one institutional dimension is found to be moderated by the existence of the other dimensions, which makes it clearly more challenging to sort out different degrees and directions of the relationships between R&D expenditures and political institutions.     

Direct investment and industrial concentration

Cross‐national comparison of industrial concentration is considered here in terms of two hypotheses. The ‘technology/market size’ hypothesis [Merhav, 1969] predicts greater concentration in less developed countries than in the larger markets of developed countries. The ‘miniature replica’ hypothesis predicts that, when the degree of foreign ownership is high, industries in less developed countries may be less concentrated than their counterparts in advanced countries. Most cross‐national comparisons of firm size distributions support a predominance of ‘technology/market size’ effects. In this paper, data from the pharmaceutical industry in Brazil and other less developed countries are used to suggest that under certain conditions ‘miniature replica’ effects may prevail.     

Deficiencies in education and poor prospects for economic growth in the Gulf countries: The case of the UAE

Abstract

Our paper shows that the deficient educational system and the large share of unskilled foreign workers in the Gulf countries are serious impediments to a successful implementation of the strategies of these countries to reduce their dependence on foreign technologies and to restructure their economies in order to make them less dependent on oil exports. A novel element in our analysis is that we emphasise the role of the deficient educational system as an important problem, next to the well-documented quandary of a high incidence of unskilled foreign workers in the workforce. We use new survey data, both at an establishment level and economy-wide, to provide evidence on how the poor educational facilities lead to a poor provision of training, low skill levels, serious skills mismatch and deficient transfer of knowledge. These inadequate facilities and the lack of incentives to improve them also lead to low R&D efforts to promote local technologies and hamper a restructuring of the economy.     

Suicide in developing countries (2): risk factors

The majority of studies on risk factors for suicide have been conducted in developed countries, and less work has been done to systematically profile risk factors in developing countries. The current paper presents a selective review of sociodemographic, clinical, and environmental/situational risk factors in developing countries. Taken together, the evidence suggests that the profiles of risk factors in developing countries demonstrate some differences from those in developed countries. In some developing countries, at least, being female, living in a rural area, and holding religious beliefs that sanction suicide may be of more relevance to suicide risk than these factors are in developed countries. Conversely, being single or having a history of mental illness may be of less relevance. Risk factors that appear to be universal include youth or old age, low socioeconomic standing, substance use, and previous suicide attempts. Recent stressful life events play a role in both developing and developed countries, although their nature may differ (e.g., social change may have more of an influence in the former). Likewise, access to means heightens risk in both, but the specific means may vary (e.g., access to pesticides is of more relevance in developing countries). These findings have clear implications for suicide prevention, suggesting that preventive efforts that have shown promise in developed countries may need to be tailored differently to address the risk factor profile of developing countries.     

The measurement of development effort—A suggestion

A notable shortcoming of development economics has been a failure to design an objective indicator allowing for an evaluation of the effort made in particular developing countries. Own‐country effort has been noted in the literature to be an important ingredient in the illusive recipe of development‐success; and so the above problem is of considerable interest, both theoretical and practical. This paper analyses the interrelationships between three groups of commonly used ‘effort‐indicators’ ; and in addition studies the relationships between each and growth of per capita income of a sample of developing countries. The findings suggest that at the present time, effective development efforts tend to lie less in the area of belt‐tightening and mobilisation of domestic savings, and more in the area of explicit export promotion.     

What matters the most in curbing early COVID-19 mortality? A cross-country necessary condition analysis

COVID-19 represents a turbulent problem: a volatile, uncertain, complex, and ambiguous crisis, in which bounded-rational policymakers may not be able to do everything right, but must do critical things right in order to reduce the death toll. This study conceptualizes these critical things as necessary conditions (NCs) that must be absent to prevent high early mortality from occurring. We articulate a policy-institution-demography framework that includes seven factors as NC candidates for high early COVID-19 mortality. Using necessary condition analysis (NCA), this study pinpoints high levels of a delayed first response, political decentralization, elderly populations, and urbanization as four NCs that have inflicted high early COVID-19 mortality across 110 countries. The results highlight the critical role of agility as a key dimension of robust governance solutions—a swift early public-health response as a malleable policy action—in curbing early COVID-19 deaths, particularly for politically decentralized and highly urbanized countries with aging populations.     

The transition from limited access orders to open access orders in the post-communist Europe

This paper attempts to explain the process of institutional transition of post-communist countries applying conceptual framework proposed by D.C. North, J. J. Wallis, and B. R. Weingast. The first part of the article is devoted to outline the theory of North, Weingast, and Wallis. The second part the theory is used to analyze transformation processes in post-communist countries. An important conclusion of this paper is that cultural, religious and historical factors have crucial impact on formation of new coalitions of elites in the transitions countries. In the countries where Western values were present the transfer of the market and democratic formal institutions was easier. Also, the process of transformation was strongly influenced by external factors, especially the prospect of integration with the European Union, which encouraged elites to take action that benefited the opening of both political and economic markets. These observations suggest that, in general, the success of transformation in transition countries did not depend on the intentional actions of ruling elites.     

Confronting the Reality

SUMMARY

The most recent UNAIDS report (December 2003) estimates that approximately 5 million persons became infected with the HIV virus globally in 2003 alone, while 3 million persons died as a result of HIV/AIDS. What do these staggering numbers mean for the Caribbean population? Is the impact of HIV/AIDS the same among Caribbean immigrants in the United States as among the Caribbean population in the countries of origin? If so, what are the factors that promote the spread of HIV/AIDS among this population regardless of their geographic location? Finally, what can be done to reverse the growing infection rate that has made the Caribbean the second largest population to suffer from HIV/AIDS globally? In this paper the authors explore sociocultural, attitudinal and gender-specific factors that place the Caribbean population at risk of the ongoing spread of HIV/AIDS. The authors make recommendations for a community involvement response to the HIV/AIDS epidemic that targets the individual, family and community to address the problem of HIV/AIDS in the Caribbean population. A community involvement model with its potential to reduce the negative impact of socio-structural factors, and attitudes towards victims of HIV/AIDS is recommended as a meaningful response to HIV/AIDS among the Caribbean population.     

Debt crisis of the less developed countries and the transfer debate once again

In the perspective of substantial amount of net transfers from the debtor less developed countries (LDCs) to the creditor developed countries (DCs) in the recent debt crisis years, there is a renewed debate (that started in the context of German reparation payments after the First World War) on the question of transfer burden of debt. The present study assembles some evidence to show that the LDCs in general expanded their export‐volumes and faced losses in their export unit values in the process of their debt repayments. Many LDCs faced this transfer burden of debt irrespective of whether their export drive was in the field of primary products or manufactures. Thus the Keynesian analysis for German transfer problems seems to be relevant in the context of the present experience of the LDCs. For some debtor countries, the ‘insoluble’ transfer problem mentioned by Keynes exists as they are facing ‘Fisher's paradox’: The more the debtors pay, the more they owe.     

Operating Performance of Privatized Firms in Europe: Organizational and Environmental Factors

This article analyzes the role of organizational changes and contextual factors in explaining the operating performance of European privatized firms. We find that smaller and non-regulated firms and companies privatized by public offer perform better than bigger, regulated, and privatized by private sale companies. Also, privatized Eastern European companies are less profitable than privatized companies from other European countries. Our findings suggest that organizational changes are more difficult to introduce in privatizations by private sale and in bigger and regulated companies. They also suggest that less developed institutional contexts limit performance improvements after privatizations.     

Patterns of energy consumption and economic growth and structure

The role of energy utilization in economic growth has received much attention in recent years. The distinctive characteristics of our analysis are that this role is dealt with in a quantitative way and that both cross‐section and time‐series approaches are utilized. We confirm earlier findings that energy consumption tends to be more responsive to economic growth in less developed than in advanced countries. We conclude, however, that the relationship between energy and economic growth activity is affected by a variety of other factors. Multivariate tests suggest that the industrial structure of the economy and the composition of energy consumption are especially significant additional variables.     

Lost in transition,found in recession? Satisfaction with democracy in Central Europe before and after economic crises

For decades, research on democracy has produced evidence that the peoples of countries in Central Europe are less satisfied with the way democracy works in their countries than people in Western Europe. Using the data from the European Social Survey (ESS) I explore, how satisfaction with the way democracy works (SWD) changed in these countries between 2004 and 2014 and test the impact of satisfaction with the present state of the economy and trust in parliament on SWD. Results of the analysis reveal that people in Central Europe are still less satisfied with the democratic performance on average than people in Western Europe, but their satisfaction is on the rise especially in countries where the economy performs well, economic performance brings better standard of living, and people share a sense of economic optimism. Results also suggest that in countries where economic optimism is low, political evaluations of “crises in democracy” may play a larger role in explaining satisfaction with democratic performance.     

The use of export projections in allocating foreign aid among and domestic resources within developing countries

Foreign exchange shortages have been considered by many economists as the effective restraint to growth in the developing world. This is especially the case insofar as less developed countries (LDC's) are limited in their capacity to purchase imports from abroad that are needed to complement domestic factors of production. Exports obviously play an important role in this context since they constitute the primary source of foreign exchange for most LDC's. It is for this reason that a number of projections of future export earnings of LDC's have been made. These projections are presumably useful in decision making of various kinds. However, there is not much evidence that would indicate ways in which the projections have been or might conceivably be used. The purpose of this paper, accordingly, is to examine two such possible uses of export projections in connection with: (i) the allocation of foreign aid by donor countries among LDC's; and (2) the allocation of resources over time in individual LDC's.     

International Trade,R&D Spillovers and Productivity: Evidence from Indian Manufacturing Industry

This paper examines the effect of trade facilitated R&D spillovers on the productivity of manufacturing firms in India, inter-sectoral variation in the effect on productivity and the importance of firms' investment in R&D, technology imports and plant and machinery in enhancing the productivity effect. Using firm level panel data, the study shows that R&D spillovers have a significant effect on productivity and that this effect is greater in technology-intensive industries. The paper also shows that firms' investment in plant and machinery enhances the productivity effect of R&D spillovers. The paper provides detailed micro-level evidence on the argument that trade openness promotes technological progress in developing countries.     

Suicide on the Indian subcontinent

The Indian subcontinent comprises eight countries (India, Pakistan, Bangladesh, Nepal, Sri Lanka, Afghanistan, Bhutan, and the Maldives) and a collective population of more than 1.3 billion people. 10% of the world's suicides (more than 100,000 people) take place in just three of these countries, viz. India, Sri Lanka, and Pakistan. There is very little information on suicides from the other four countries. Some differences from suicides in Western countries include the high use of organophosphate insecticides, larger numbers of married women, fewer elderly subjects, and interpersonal relationship problems and life events as important causative factors. There is need for more and better information regarding suicide in the countries of the Indian subcontinent. In particular, studies must address culture-specific risk factors associated with suicide in these countries. The prevention of this important public health problem in an area of the world with myriad socio-economic problems, meager resources, and stigmatization of mental illness poses a formidable challenge to mental health professionals, policy makers, and governments of these countries.     

Why Are Some States More Generous in Offering R&D Tax Credits than Others? An Empirical Answer

This article examines political cost factors that affect a state's propensity to adopt a corporate income tax credit to encourage research and development (R&D) activities in the United States. Assuming state elected officials are vote-maximizers, this article hypothesizes that politicians' consideration of potential revenue losses and influence from organized interests are critical in a state's decision to provide a R&D tax credit. To test the hypothesis, two statistical models are specified. With a dichotomous dependent variable of whether or not a R&D tax credit is offered, a Logit regression model is utilized. For the interval level dependent variable of effective R&D credit rates, this article specifies a Tobit model. The results show that politicians' concerns about revenue losses loom much larger than private organized interests.     

The relation between rate of growth and level of development

The paper tests the hypothesis that countries pass through three successive phases of development: an initial phase of stationary or slow growth; a phase when the growth rate is increasing (accelerating growth), and finally, a phase of decreasing (decelerating) growth. Since the regressions turn out to be significant at the 0.1 per cent level, it may be taken that the hypothesis is confirmed. An explanation is offered and deviant cases are discussed. One of the consequences of the established regularity is that the gap is widening between the least developed and other countries, but the countries at the intermediate level of development are catching up. Thus the usual twofold classification of countries will have to be replaced by a threefold one: less developed, developing and developed countries.     

Effects of Budgetary Constraints on HR Reforms in Central Public Administrations and the Importance of Institutional Context

A standard criticism toward New Public Management has been its focus on efficiency and cost saving. As a consequence, other important reform objective aspects and administrative values such as quality, fairness, engagement, trust, and sustainability would be neglected. In the field of HRM, this again would result in many (un-)intentional reform effects, such as more demotivation, less engagement, and less trust of the workforce in leadership. Unfortunately, many of these claims have not been tested empirically.Especially in the field of HRM, there is very little comparative evidence on how costs are being cut on a grand scale in different institutional contexts, Human Resource Management policies, with regard to different HR instruments and how these cuts impact on Human Resource Management.This study investigates the current HR reforms in central public administration in 32 OECD countries. Using recent OECD data (OECD Data Set, 2015), the study analyses the impact of budgetary constraints with regard to 40 HR issues and HR instruments. These issues were grouped into different HR bundles. The analysis reveals a strong correlation between budgetary constraints and cost-cutting measures. As a consequence, HRM as such is changing dramatically in some countries. Whereas the past reform trends in most OECD countries were characterized by a move away from the classical bureaucratic model, the present focus is on the implementation of ad hoc reforms in order to save resources. Neither is there a common trend toward one alternative high-work performance model nor a reformed universal “bureaucracy-lite mode.” Overall, data show that HR management is not seen as a strategic factor in the reform process in many countries. In fact, most countries have focused on cost reductions and downsizing and not on responsible restructuring.     

Natural resources and corruption in post-war transitions: matters of trust

Many ‘post-conflict’ countries face difficulties in reaping the full benefits of their natural resource wealth for reconstruction and development purposes. This is a major issue given these countries’ needs and the risk of seeing ‘mismanaged’ primary sectors undermine a transition to peace. Bringing together debates about the ‘inequality-mistrust-corruption’ trap and relationships between natural resources and corruption, this paper suggest that some resource sectors may be more likely to foster inequalities, and thereby increase corruption and distrust, while others are less likely to do so. Reviewing arguments and empirical evidence, I point to the relative importance of transition contexts, stakeholder incentives and resource sector characteristics, and suggest how resource-related corruption may be better understood in relation to trust-building and reconciliation processes.