Technology upgrading of middle income economies: A new approach and results

We explore issues of measurement for technology upgrading of the economies moving from middle to high-income status. In exploring this issue, we apply theoretically relevant and empirically grounded middle level conceptual and statistical framework based on three dimensions: (i) Intensity (ii) breadth of technological upgrading, and (iii) technology and knowledge exchange. As an outcome, we construct a three-pronged composite indicator of technology upgrading based on 35 indicators which reflect different drivers and patterns of technology upgrading of countries at different income levels. We show that technology upgrading of middle-income economies is distinctively different from that of low and high-income economies. Our results suggest the existence of middle-income trap in technology upgrading - i.e. countries' technology upgrading activities are not reflected in their income levels. Based on the simple statistical analysis we show that the middle-income trap is present in all three aspects of technology upgrading, but their importance varies across different aspects. A trap seems to be higher for 'breadth' of technology upgrading than for 'intensity' of technology upgrading and is by far the highest for the dimension of knowledge and technology interaction with the global economy. Finally, our research shows that technology upgrading is a multidimensional process and that it would be methodologically wrong to aim for an aggregate index

Classic and spatial shift-share analysis of state-level employment change in Brazil

This paper combines classic and spatial shift-share decompositions of 1981 to 2006 employment change across the 27 states of Brazil. The classic shift-share method shows higher employment growth rates for underdeveloped regions that are due to an advantageous industry-mix and also due to additional job creation, commonly referred to as the competitive effect. Alternative decompositions proposed in the literature do not change this broad conclusion. Further examination employing exploratory spatial data analysis (ESDA) shows spatial correlation of both the industry-mix and the competitive effects. Considering that until the 1960s economic activities were more concentrated in southern regions of Brazil than they are nowadays, these results support beta convergence theories but also find evidence of agglomeration effects. Additionally, a very simple spatial decomposition is proposed that accounts for the spatially-weighted growth of surrounding states. Favourable growth in northern and centre-western states is basically associated with those states’ strengths in potential spatial spillover effect and in spatial competitive effect

Innovation as a factor of regional economic growth: evidence from Russia

The paper analyses the concentrations of knowledge as agglomerations of expenditure on Research and Development, and on science and technology; empirically evaluates the impact of innovation factors on the economic growth in the regions and proposes a strategy to improve the efficiency of the regional innovation systemyesBelgorod State Universit

Measurement of Specialization – The Choice of Indices

This paper compares nine common specialization indices, discussing their properties, strengths and weaknesses. In order to unravel the differences between the indices they are applied to European employment structures in 2005, spanning 51 industries and 24 European countries. The resulting heterogeneity levels differ largely between relative and absolute specialization measures, but also within these two groups of indices. As results are highly dependent on which measure is employed, it is important to be aware of carefully choosing appropriate indices in empirical studies in order to attain appropriate conclusions and conduct sound economic policy.specialization indices, industry structure, comparison of indices

A review of measures of competitive balance in the "analysis of competitive balance" literature

This paper presents a review of measures of the competitive balance of sports leagues proposed in the line of literature which Fort and Maxcy (2003, p. 155) call “ ... the analysis of competitive balance (ACB) literature itself”. They describe this as\ud the literature which “... focuses on what has happened to competitive balance over time or as a result of changes in the business practices of pro sports.” A number of boo ks and articles have provided surveys of these measures of competitive balance. This review consolidates that work and augments it by adding details to facilitate the appropriate application and interpretation of the measures. This paper also considers the applicability of the measures of competitive balance in the literature to the professional leagues of association football

Scope of Electricity Efficiency Improvement in Switzerland until 2035

This study uses Markowitz mean-variance portfolio theory with forecasted data for the years 2005 to 2035 to determine efficient electricity generating technology mixes for Switzerland. The SURE procedure has been applied to filter out the systematic components of the covariance matrix. Results indicate that risk-averse electricity users in 2035 gain in terms of higher expected return, less risk, more security of supply and a higher return-to-risk ratio compared to 2000 by adopting a feasible minimum variance (MV) technology mix containing 28 percent Gas, 20 percent Run of river, 13 percent Storage hydro, 9 percent Nuclear, and 5 percent each of Solar, Smallhydro, Wind, Biomass, Incineration, and Biogas respectively. However, this mix comes at the cost of higher CO2 emissions.Efficiency Frontier, Herfindahl-Hirschman Index (HH), Power Generation, Mean-Variance Portfolio Theory, Seemingly Unrelated Regression Estimations (SURE), Shannon-Wiener Index (SW)

Institutional organization of banking supervision: lessons for Ukraine

В статті розглянуто питання організації та здійснення банківського нагляду в Україні на основі вивчення світових тенденцій. Також обгрунтовано питання можливої модернізації інституційної бази банківського нагляду з урахуванням практики наглядових органів та досвіду функціонування банківської системи в деяких європейських країнах. Обговорюється роль центральних банків у роботі національних наглядових систем. Зроблено висновок, що єдиного чіткого напрямку щодо моделі нагляду не існує, а вибір країною прийнятної інституціональної структури залежить від особливостей національної економіки, фінансового ринку та кредитної системи.The paper addresses the issue of banking supervision organization and realization in Ukraine based on world’s experience on the subject. Also the problem of potential modernization of banking supervision institutional base is explained taking into account the supervision authorities practices and banking system functioning in some European countries. The impact of central banks on the national systems of banking supervision is discussed. The conclusion is drawn that there is no clear tendency in relation to supervisory models; every country chooses an acceptable institutional structure depending on the specifics of its national economy, development trends in the credit system and its financial market

Evidence from cross-border mergers and acquisitions

Funding agencies: European Research Council, Fundacao para a Ciencia e Tecnologia (grant nr.: PTDC/IIM-FIN/2977/2014) and Mayo Center for Asset ManagementWe test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data from 64 countries during the period 2005-2014, we find that cross-border M&A activity is associated with subsequent improvements in the governance of nontarget firms when the acquirer country has stronger investor protection than the target country. The effect is more pronounced when the target industry is more competitive. Cross-border M&As are also associated with increases in investment and valuation of nontarget firms. Alternative explanations, such as access to global financial markets and cultural similarities, do not appear to explain our findings.authorsversionpublishe

Corporate governance and Competition: A Case Study of India.

The aim of this paper is to show the interaction effect of product market competition and corporate governance variables on firm performance. While the linkage between internal governance mechanism and firm performance is well established in several studies, the interaction between internal and external governance mechanism has received very little attention in emerging market economies. Here we have shown the independent and interaction effect of ownership and competition variable on firm level productivity. Contrary to conventional wisdom, we document that competition has in reality become a discernible force in developing economies. The econometric modeling result confirms while the standalone effect of ownership variable on productivity is mostly insignificant, there is a strong positive interaction effect with competition variables.