Sectoral dimensions of Poland's investment development path revisited

The purpose of the present paper is to determine the changes of the sector and industry structure of FDI and to confront the observed patterns with the hypotheses or predictions derived from the IDP model. At the heart of the IDP model lies the concept of net outward investment (NOI). The NOI position (NOIP), broken down by the main sectors and component industries of the Polish economy, is analyzed for the period of 1996–2016. We develop a conceptual framework of the sectoral shifts in the composition of NOIP along its different stages. Subsequently, our panel regression analysis indicates that the relative share of a sector in inward and outward FDI stocks is positively related to its level of technological intensity and its level of service intensity.     

Sectoral linkages at the beginning of the 21st century: The role of Polish economy in global production structures

This paper provides a first attempt in analyzing the role of Polish economy in the production structure of the global economy in the early years of the 21st century. For the purpose of this analysis, we propose a new approach in which two most important aspects of interindustry linkages in a global input-output model are examined. Contrary to previous studies focused on output-oriented key sector analyses in post-communist CEE economies, we focus on a fundamental policy target variable – income per gross output. In order to analyze the issues in question in a dynamic framework, the empirical results are based on the 2000 and 2014 global intercountry input-output tables for the 28 EU countries as well as 15 other major countries in the world.     

Political Fragmentation and Fiscal Status: Evidence from Municipalities in Israel

Abstract

This article analyses the link between fiscal balance and political fragmentation. While a large body of literature states that political fragmentation leads to fiscal deficits, others suggest that political fragmentation is associated with political competition, which tends to improve fiscal balance. These hypotheses are tested using budgetary and political data of municipalities in Israel for the years 1998–2006. The results suggest that both hypotheses may be correct, depending on voting behaviour. In Arab municipalities, where residents vote according to clan affiliation, low levels of political fragmentation are associated with large debts. On the contrary, in Jewish municipalities, low levels of political fragmentation are associated with small debts, since in these cases, coalition formation requires less spending and is easier to sustain.     

A Deeper Look at the Relationship between Political Knowledge and Political Participation: Evidence from Presidential and Legislative Elections in Taiwan

This study examines the effects of political knowledge on various types of political participation by focusing on five recent presidential and legislative elections in Taiwan. The empirical findings indicate that political knowledge has positive effects on some types of political participation but the effects of political knowledge on different types of political participation vary by the types of electoral systems and elections. Besides, although the interviewer's assessment of the respondent's level of information has been widely used as an effective indicator of political knowledge, this study shows that the interviewers tend to rate men and partisans as politically knowledgeable, which might lead to a biased estimate of political knowledge. Overall, this study provides insight into the relationship between political knowledge and political participation in Taiwan.     

The Impact of Political Leadership on Organisational Performance: Evidence from English Urban Government

Many commentators view the political management reforms of English local government with some scepticism, raising concerns about the desirability of stronger leadership and the efficacy of institutional reform in encouraging stronger leadership. Using data from a five-year evaluation of the impact of the Local Government Act 2000, this paper reports evidence suggesting that institutional variation does influence the way that organisations operate and can have a positive impact on their performance, though the results are mixed with the internal decision-making elements showing most difference, whilst there is less evidence of effects in relation to partnership working and engagement with the public. In hung and balanced authorities an internal focus on managing coalitions and party competitors is judged to impede the role of leaders in partnership working. In the concluding section, the paper develops the concept of facilitative leadership, which will continue to influence reform of local government and the practice of political leadership in local government. Policy-makers, by giving leaders the right mix of resources and incentives, can improve the effectiveness of urban political leadership and encourage the trend towards facilitative leadership.     

An Alternative Understanding of Political Participation: Challenging the Myth of Political Indifference in Hong Kong

Abstract

The characterization of Hong Kong's political culture as one of indifference deserves further examination as the inquiries conducted by proponents of the indifference framework have all used a narrow definition of political participation. This paper begins with a critique of the inherent narrowness of orthodox definitions of political participation: political participation as acts making demands on a government; as lawful activities; and as activities vis‐a‐vis one government. Contrast these assumptions, the author contends that political participation needs to be understood as activities that include both making demands on and showing support for a government, as well as both lawful and unlawful activities. Furthermore, the author refutes the one‐government‐locus theme of the orthodox concept and proposes a three‐government‐loci theme that is more relevant to the historical experience of the colonial Hong Kong. The political relevance of the social domain and its implications on broadening the definition of political participation are discussed. Finally, the author argues for the importance of considering discursive participation as a form of political participation in Hong Kong.     

The Political Economy of Familial Relations: The Japanese State and Families in a Changing Political Economy

This article explores the ongoing negotiation over the boundaries between the world of political economy and families by analysing the reactions and responses of the Japanese government and feminists to changes in the political economy as well as popular patterns of family forming since the 1990s. This negotiation has occurred through the transition in the political economy brought about by globalisation and neo-liberal political reforms, and the re-calibration of family and gender roles has emerged as its primary ground. As a result, Japanese women are being required to make a hasty leap from the Fordist model of family life to a more self-steering idea of the individual. This ineluctably re-calibrates the bio-political arrangement into a more advanced mechanism, while discussion of the ‘ethics of care’ has been left relatively absent. Taking up these issues, this article discusses the implications of a changing political economy on Japanese families.     

Globalization and catching-up: from recession to growth in transition economies

The transitional recession in countries of Eastern Europe and the former Soviet Union has lasted much longer than expected. The legacy of the past and recent policy mistakes have both contributed to the slow progress. As structural reforms and gradual institution building have taken hold, the post-socialist economies have started to recover, with some leading countries building momentum toward faster growth. There is a possibility that in the wider context of globalization several of these emerging market economies will be able to catch up with the more advanced industrial economies in a matter of one or two generations.     

Belonging and Political Participation: Evidence from the 2011 President Election in Kyrgyzstan

Abstract

This study examines the effects of social embeddedness on interest in politics and electoral behaviour using data from a nationally representative survey conducted shortly after the 2011 presidential election in Kyrgyzstan. We find that interest in politics is positively associated with community trust, public sector employment and a sense of national belonging. Controlling for the effects of interest in politics, community trust and public sector employment are also positively associated with voting in this election, whereas evidence on ethno-cultural inclusion is mixed. These findings highlight the role of social embeddedness in political participation in young post-communist democracies.     

Trust,mental models and community participation in transition: Evidence from rural Ukraine

As participatory governance approaches find their way into the development agendas in transition countries, a key question is how to increase citizens’ participation rates. This study examines how social trust and mental models inherited from the communist past shape individual decisions to participate in rural collective action. Using unique data from rural Ukraine, I approach these questions empirically distinguishing different types of participation. I find that social trust and mental models about the roles of communities and the state stemming from the Soviet past affect participation with some reservations. Results suggest that community-driven initiatives should invest more in educational and awareness-raising activities.     

Contested National Identity and Political Crisis in Bangladesh: Historical Analysis of the Dynamics of Bangladeshi Society and Politics

This paper develops the theme that the ongoing political polarization and political crisis in Bangladesh since its independence from Pakistan in 1971 reflect the fundamental weaknesses of the pillars of Bangladeshi society and national identity. The paper adopts an historical approach to explain why and how Muslim nationalism, which was the basis for the establishment of Pakistan, has re-emerged in contemporary Bangladeshi society and politics and is competing against Bengali ethnicity, language, culture and secularism (‘Bengali nationalism’) within an emerging ‘two-party’ political system. However, instead of establishing a stable political system following the Hotelling–Downs principle of democracy, the Bangladeshi society/polity has been polarized and divided almost vertically on the question of national identity and political philosophy and created sustained political instability and uncertainty. This has stifled the formation and consolidation of a national identity based on ethnicity/language/culture or religion/territory/political history or that have elements of both. Neither ethnicity/language/culture/secularism-based nationalism (Bengali nationalism) nor predominantly Muslim-territorial nationalism (‘Bangladeshi nationalism’) alone can dominate and flourish in Bangladeshi society and polity; instead, the objective conditions in the country dictate that a competitive democratic system of politics which accommodates aspects of secularism, language, Muslim identity and Islamic ethical–moral codes remains the feasible political discourse for forming and consolidating the country's multi-racial, multi-religious national identity over the long run and its survival as a sovereign state.     

The Politics of Discontinuity and Its Medium Term Policy Outcomes: Evidence from Ghana

ABSTRACT

It is common knowledge in Ghana that during political transitions, programs set in previous Medium Term Development Plans (MTDP) by prior governments are abandoned without regard for their wider national implications. While the economic impacts of these political transitions have been researched, till date no known studies have taken a holistic look at the relation between political transition and the level of MTDP target achievement. This article attempts to fill this research gap using Ghana as a case and the policy learning and political business cycle literatures as organizing frames. Using annual MTDP data and semi-structured interviews with 25 officials who were involved in the implementation of MDTPs at the national and local government levels, this article finds that aberrations in target achievements across the entire period between 2001 and 2016 were the result of financial constraints and the pressures to adjust to political change.     

The Theory of International Media Diffusion: Political Socialization and International Media in Transitional Democracies

Despite the long-standing normative assumption that, for individuals in transitional states, exposure to Western media cultivates stronger attachments to Western political and economic values, the evidence presented here suggests otherwise. Using mass public survey data from the mid-1990s in five Central and Eastern European countries, this article demonstrates a general lack of support for international media’s positive contributions to individuals’ democratic attitudes and preferences for market economies. This finding is particularly unexpected because the countries under investigation represent ideal cases based on their proximity to Western democracies and international (Western) media sources’ capacities for extensive transnational media penetration into the region. Yet this failure to find persuasive evidence of the influence of international media diffusion on the development of Western political values sharpens our understanding of the process of political socialization in democratizing countries by eliminating an assumed source and is thus relevant to students of democratization, international development, and mass media.

The Political Economy of Bad Data: Evidence from African Survey and Administrative Statistics

Abstract

Across multiple African countries, discrepancies between administrative data and independent household surveys suggest official statistics systematically exaggerate development progress. We provide evidence for two distinct explanations of these discrepancies. First, governments misreport to foreign donors, as in the case of a results-based aid programme rewarding reported vaccination rates. Second, national governments are themselves misled by frontline service providers, as in the case of primary education, where official enrolment numbers diverged from survey estimates after funding shifted from user fees to per pupil government grants. Both syndromes highlight the need for incentive compatibility between data systems and funding rules.     

Innovation and growth in traditional agriculture of the lower Volta,Ghana

This article addresses the important question of whether foreign direct investment enhances economic growth and labour productivity in Mexico, both from a theoretical and empirical perspective. After briefly reviewing the Mexican experience with net FDI inflows during the 1990s, the article presents a simple endogenous growth model which explicitly incorporates any positive (negative) externalities generated by additions to the foreign capital stock. Using cointegration analysis, the article estimates a dynamic labour productivity function for the 1960-95 period that includes the impact of the growth rate in the stocks of both private and foreign capital (as opposed to the flows) and the economically active population (EAP) (rather than the rate of population growth). The error correction model (ECM) estimates suggest that increases in both private ad (lagged) foreign investment spending, as well as the rate of growth in exports, have a positive and economically significant effect on the rate of labour productivity growth. In addition, the results show that increases in the EAP have a negative and statistically significant effect on the rate of labour productivity growth, while changes in the government consumption variable have a negative but marginally significant impact. The error correction terms of the estimated models are negative and statistically significant, thus suggesting that deviations of actual labour productivity growth from its long-run value are corrected in subsequent periods. Finally the article generates historical simulations from the estimated ECM's and offers some policy recommendations to enhance the positive externalities associated with FDI inflows.     

The Political Economy of Private Sector Development in Communist China: Evidence from Zhejiang Province

This article investigates a natural experiment in China’s Zhejiang province in order to identify why local officials across the province had varying motivations and capacities for protecting and promoting private entrepreneurship after 1949. As the result of communist revolution before 1949, all Zhejiang’s counties were divided into two categories in 1949: guerrilla counties and non-guerrilla counties. In guerrilla counties, local cadres were marginalized by the newly established provincial power structure and faced huge political insecurity, while their counterparts in non-guerrilla counties could rely on the patron–client network that was built by the provincial leadership for promotion. The local cadres in guerrilla counties were forced to cultivate popular support from below in order to guarantee their political survival, i.e., they looked after local economic interests by supporting local private sector development in exchange for the grassroots’ support. This mutual protection between local elites and potential private entrepreneurs explains why, relative to the non-guerrilla counties, the private sector was effectively protected after 1949 and therefore better developed in the long run. We argue that the analytical framework developed by this research can go beyond Zhejiang to apply to other provinces.     

Contending eurocentric theories: the case study of Thailand's economic regionalism in ASEA

ABSTRACT

The Eurocentric theory of economic regionalism, as demonstrated by the empirical case of the European Union, has been widely recognized as the pathfinder, role model, and inspiration for other regional organizations, including ASEAN, due to its continuous attempts at deepening economic integration, formalizing the decision-making process, and legalizing the administrative body. Despite this concordant movement, it is evident from Thailand that ASEAN has evolved differently from the rationale, process, and prediction that Eurocentric theory dictates.

The purpose of this article is to argue that the economic regionalism of ASEAN has not developed in accordance with an economically-oriented rationale. Moreover, the process of economic integration has not necessarily derived from the free trade agreement itself, particularly when a country lacks continuity in terms of its development of regionalist projects. In addition, Thailand has not followed the path of economic integration due to spillover effects. This is because member countries have not given up their sovereignty in favour of the regional institution. Economic regional activities have been broadened within a limited scope, and the expansion has been conducted through bilateral talks, rather than a strengthening of regional solidarity.     

Myanmar: analyzing problems of transition and intervention

Myanmar's State Peace and Development Council touts the 2010 elections as an important milestone on the roadmap to democracy. While the consensus among scholars is that the result is a foregone conclusion, these elections may also mark the beginning of a transition. As a transition from authoritarian rule may lead to internal chaos and result in calls for external intervention, the relevant dimensions of intervention are explored. The capabilities, interests and approaches of key external players in the context of Myanmar are identified. Both India and China have capabilities and multiple interests in Myanmar. However, the India–China rivalry and the lack of consensus around the responsibility to protect the doctrines are identified as risk factors. In spite of its shortcomings, the ASEAN Regional Forum remains the most appropriate venue to explore possible responses in case of chaos in Myanmar, which would be a tough test of its aptitude and relevance. The forum should upgrade organizational and practical capacities to respond to major crises such as a hypothetical collapse of central authority in Myanmar.     

Management Discretion and Political Interference in Municipal Enterprises. Evidence from Italian Utilities

The attention of scholars and policy-makers is shifting from full privatisation to alternative measures as a means to improve the efficiency of public services. This article focuses on three restructuring measures adopted by local governments: partial privatisation (without transfer of control rights), inter-municipal joint ventures, and the presence of outside directors on the Board. Divergent hypotheses on these measures have emerged from two economic theories, namely public choice and the agency perspective. An empirical analysis investigates the effects of restructuring processes on a sample of Italian municipal utilities. Partial privatisation has been shown to play a significant and positive role, while Board independence from management has a less significant influence. Multi-government utilities have been found to suffer from severe coordination costs, which are not outweighed by scale benefits. Our findings reveal that management discretion is a significant source of inefficiency in municipal enterprises.