Comparative Economic Systems and the New Comparative Economics: Foes, Competitors, or Complementary?

The field of comparative economic systems has been recently enriched by the arrival of the new comparative economics. This approach is in the line of the law and finance tradition and presents an important contribution under different perspectives. In the paper I present the most important propositions of this new approach and I evaluate them in the light of the problems that the comparative study of economic systems traditionally considers. The conclusion is that this new approach can give important contributions to the development of the discipline in particular fields, but falls short of its pretended general validity.Comparative Economic Systems, Comparative Economics, New Comparative Economics

Analysis, interpretation, and the local dimension of economic transformation: What went wrong and why?

Transformation has been put in motion by a variety of both endogenous and exogenous forces. Although not any process was under the control of those countries, their choice of goals and instruments was anyway particularly great, at least theoretically. However, transformation was implemented as a rather narrowly defined and technically circumscribed problem-solving process aiming at applying sound general principles of economics and management to reach well-defined goals. It turned out to generate new problems and resulted in different outcomes in different countries and, within individual countries, in different territories. This paper treats transformation as innovation and considers that it had to deal with different dimensions, including both general principles and local features, opportunities, and constraints, and both analysis based on problem-solving, and interpretation of the new situation. These dimensions should have been managed simultaneously, but failed to do so. The paper provides a general explanation for the failure in managing simultaneously the various components of transformation and considers what the 2008 international crisis has revealed of the implementation of 20 years of transformation.Transformation, Local development, Reform, Analysis, Interpretation, Crisis, Washington Consensus, Innovation

The Eurozone Crisis: Institutional Setting, Structural Vulnerability, and Policies

The unfolding of the crisis in the Eurozone can be explained by the interaction of institutional features and policy failures, and by their interconnection with real and financial imbalances. The crisis has shown that internal divergence in the EZ is based on important structural components which are unsustainable in the long run. Indeed, the crisis has magnified the gap between the vulnerable peripheral member countries and a more resilient core. The paper analyses those factors that opened the way to the diffusion of the financial and economic crisis in the Eurozone. It also discusses the structural consequences of these events and critically analyses the institutional and political reforms which the Eurozone is facing in order to enhance its capability to cope with external shocks.Eurozone; European Union; European Monetary Union; euro; Common fiscal parameters; Real convergence; Productivity

The role of universities in local development

The paper deals with the role that universities can have in promoting innovation in general and at local and regional level in particular. In doing this, the nature of universities and the quality of their relations to industry and governments is of paramount importance. During the last three decades university-industry relationships and the supportive role of governments moved from more general, upstream approaches in line with the traditional public role of universities to more specific, downstream focused approaches. The latter approaches lead to universities playing directly an economically useful role. This move is complementary to the move in the dominant relationship between universities and industry from large transnational companies and few large and prestigious universities to mostly small and medium size enterprises and regional universities. Universities contribution to local development is thus increasingly important, although not without dangers for the integrity of universities. Yet it turns out that producing knowledge is not enough and also the absorptive capacity of the local context and its actors is necessary. The concept of learning regions is aimed to stress this relationship and is therefore particularly useful and productive to analyze and understand the role of universities in innovation

The Future of the Eurozone: Towards a European Benchmark*

The European sovereign debt crisis has demonstrated the need for a rethinking of the European Integration Project. The strong variety between member countries prevented the Eurozone to become a fiscal and political union and the asymmetric architecture of the European Monetary Union (EMU) revealed different weaknesses. The outbreak of the Covid-19 emergency may represent a turning point for the EU and makes even more evident that the future of the Eurozone will depend also on the ability of member countries to make their institutional frameworks coexist. Helping member countries to achieve sustainable and stable outcomes, although in idiosyncratic ways, is the task of the European benchmark. It is a framework, inspired by European treaties, that aims to identify inefficiencies in terms of market, state and social failures and negative externalities inside economic, social, and political institutions. This benchmark represents a new tool for a correct evaluation of the economic, social, and political performance of the European member countries.   Note: * A non peer-reviewed version of this article was published as TIGER Working Paper Series No. 143, Warsaw, February 2021).   Cite this paper: Casagrande, Sara; & Dallago, Bruno (2022). "The Future of the Eurozone: Towards a European Benchmark" Journal of World Economy: Transformations & Transitions (JOWETT) 1(03):14. DOI: https://doi.org/10.52459/jowett1314012

The future of European integration and Brexit: Is Brexit only Brexit?

Abstract The consultative referendum held on June 23, 2013, showed that a majority of British voters are in favour of leaving the EU. Markets reacted and adapted, and politics made the first steps towards a UK outside the EU and an EU without Britain. This paper looks at the expected effects of Brexit in different fields: political and social effects, consequences for production and trade, and financial and fiscal effects. It then presents the institutional process of leaving the EU, stressing its indeterminacy, and considers the first steps undertaken so far. It concludes that the EU negotiation position is weak because of its internal problems and calls for the priority given in reforming the EU

SME Policy and Competitiveness in Hungary

Small and medium-sized (SMEs) enterprises in Hungary account for 99.9% of all enterprises and for more than two thirds of employment. Since transformation started in 1989 they have been the only net makers of employment. In spite of such remarkable importance, results have been modest compared to the amount of Hungarian and foreign, mostly EU resources poured into the sector. Less than a sixth of SMEs are fast-growing and only a tiny minority of SMEs make use of bank credit. According to various indicators and in spite of bright spots, the SMEs context is problematic and SMEs features are often unfavourable and hardly competitive. In recent years the goal of upgrading SMEs and strengthening their contribution to the economy has acquired central position among policy goals and activity. Although progress has been made, the results are weak and in some cases drawbacks have happened. The paper starts from analysing the SMEs situation, reviews the main features of the recently implemented policy strategies, assesses whether these strategies are appropriate to address the situation, including the effects of the domestic and international crises, and considers whether the targets pursued are realistic and important, and the instruments considered in line with the target

Comparative economics, globalisation and the eurozone in the quest for a new eurozone paradigm

The Eurozone is at a crossroads. Its neoliberal and ordoliberal construction proved to be unworkable and, after the crisis, made the macroeconomic adjustment slow and costly – causing financial and real divergence among the member countries. Kolodko’s writings offer interesting insights. This article considers Kolodko’s study of Poland and Greece and adds two other paradigmatic cases, those of Germany and Italy. Kolodko’s case studies and criticism of neoliberalism lead him to propose a New Pragmatism in policy making. This proposal offers important insights, but neglects two fundamental problems: moral hazard and institutional differences. These have to be included in the New Pragmatism to give this the strength and ability to contribute to solve the Eurozone problems