nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2016‒07‒16
twenty-six papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. Internal R&D and External Knowledge Acquisition of Start-up Firms: Exploring the Role of Entrepreneurial Human Capital By Masatoshi Kato
  2. Measuring the Link between Public Procurement and Innovation By Silvia Appelt; Fernando Galindo-Rueda
  3. Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry By Tsvetkova, Alexandra
  4. Measuring policy-driven innovation in energy efficiency By Nabitz, Lisa; Plötz, Patrick; Braungardt, Sibylle; Reuter, Matthias
  5. Mining-related national systems of innovation in southern Africa National trajectories and regional integration By Judith Fessehaie; Zavareh Rustomjee; Lauralyn Kaziboni
  6. Relationship between past experience, social network participation and creative capacity: Vietnamese entrepreneurship survey By Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong
  7. Does Employee Stock Ownership Work? Evidence from publicly-traded firms in Japan By KATO Takao; MIYAJIMA Hideaki; OWAN Hideo
  8. A counting multidimensional innovation index for SMEs By Nuno Campos Pereira; Nuno Araújo; Leonardo Costa
  9. One size does not fit all : An analysis of the importance of industry-specific vertical policies for growing high technology industries in India By Mani Sunil
  10. Reassessing the link between firm size and exports By Hernández Martínez, Pedro Jesús
  11. Leading Leadership style to motivate cultural-oriented female employees in the I.T sector of developing country: I.T Sectors responses from Pakistan By Haque, Adnan ul; Faizan, Riffat; Zehra, Nasreen; Baloch, Akhtar; Nadda, Vipin; Riaz, Fayyaz
  12. Knowledge-Centric Practices of Performing Arts Organizations: New Directions for Organizational Resilience By Neville K. Vakharia; Marilena Vecco; Andrej Srakar; Divya Janardhan
  13. Innovation in Clean Coal Technologies: Empirical Evidence from Firm-Level Patent Data By Jürgen Kruse; Heike Wetzel
  14. The role of innovation and management practices in determining firm productivity in developing economies By Bartz, Wiebke; Mohnen, Pierre; Schweiger, Helena
  15. The Impact of Upper-Secondary Voucher School Attendance on Student Achievement: Swedish Evidence using External and Internal Evaluations By Tyrefors Hinnerich, Björn; Vlachos, Jonas
  16. Competitive Strategy, Performance Appraisal and Firm Results By Bayo-Moriones, Alberto; Galdon-Sanchez, Jose Enrique; Martinez-de-Morentin, Sara
  17. Firm Employment Growth, R&D Expenditures and Exports By Marco Di Cintio, Marco Di Cintio; Sucharita Ghosh, Sucharita Ghosh; Emanuele Grassi, Emanuele Grassi
  18. Chinese Returnees and High-tech Sector Outward FDI: The Case of Changzhou By Chen, Zhao; Fang, Tony
  19. Liquidity, innovation, and endogenous growth By Malamud, Semyon; Zucchi, Francesca
  20. Maintaining Teacher Quality in Higher Education Institutions By Aithal, Sreeramana; Kumar, Suresh
  21. Institutions, Innovation and Economic Growth in European Countries By d'Agostino, Giorgio; Scarlato, Margherita
  22. Entrepreneurship in Romania - Realities and Perspectives By Madalina Cristina TOCAN
  24. 'China's Increasing Global Influence: Changes in International Growth Spillovers' By Erdenebat Bataa; Denise R.Osborn; Marianne Sensier
  25. Reallocation of Resources between Tradable and Non-Tradable Sectors in Portugal: Developing a new Identification Strategy for the Tradable Sector By Ana Fontoura Gouveia; Filipa Canas
  26. Romanian Companies Adaptation to the Challenges of the "Green Economy" By Madalina Cristina TOCAN; Oana CHINDRIS-VASIOIU

  1. By: Masatoshi Kato (School of Economics, Kwansei Gakuin University)
    Abstract: This study explores internal research and development (R&D) and external knowledge acquisition of firms during the start-up period, using panel data from original questionnaire surveys conducted in Japan. In particular, the study highlights the role of entrepreneurial human capital in the adoption of internal R&D and external knowledge acquisition strategies (licensing-in and joint R&D). Based on estimates of a bivariate probit model, the analysis provides evidence that firms managed by entrepreneurs with a high level of human capital are more likely to engage both in internal R&D and external knowledge acquisition. More specifically, while generic human capital, such as educational attainment, plays a significant role in explaining internal R&D, specific human capital, such as prior work experience in a related field or innovation experience, tends to have a prominent in uence on external knowledge acquisition. As a supplementary analysis, the effectiveness of internal R&D and external knowledge acquisition strategies is assessed by examining the link with innovation outcomes (product innovations and patent applications). The results suggest that the two innovation strategies have positive effects on innovation outcomes.
    Keywords: Start-up, entrepreneur, internal R&D, external knowledge acquisition, generic human capital, specific human capital
    JEL: M13 L26 O32
    Date: 2016–07
  2. By: Silvia Appelt; Fernando Galindo-Rueda
    Abstract: This paper presents the findings of a recent OECD project on the measurement of the link between public procurement and innovation that is intended to contribute to the review and implementation of the OECD measurement frameworks for R&D and innovation. The report highlights what concepts, definitions and measurement approaches can be used, with currently available data or suitably adapted sources, to produce policy-relevant indicators on the use of innovation procurement and carry out empirical analyses on the impact of public procurement on R&D, innovation and broader economic outcomes. Exploiting recent R&D and innovation survey data and administrative procurement records, it provides novel multi-country evidence on the incidence of public procurement of innovation. An exploratory analysis based on procurement, company account, R&D, patent and trademark data helps showcase the use of combined micro-data sources for analytical applications and points out important links between firm-level procurement activity, R&D and economic performance.
    Keywords: R&D, statistics, measurement, innovation, public procurement
    Date: 2016–07–07
  3. By: Tsvetkova, Alexandra
    Abstract: This paper tests the effect of diversity, creativity and localized competition on firm formation in US computer and electronic product manufacturing within the knowledge spillover theory of entrepreneurship (KSTE) framework. Fixed effects instrumental variable estimation results support the KSTE contention of a positive relationship between knowledge and entrepreneurship. Industrial diversity and diversity of knowledge tend to promote endogenous firm entry, whereas evidence on other factors is mixed. This points to sensitivity of conclusions in the KSTE literature to regional and industrial environments and calls for caution in interpreting and generalizing findings obtained in various settings.
    Keywords: innovation, entrepreneurship, firm formation, knowledge spillover theory of entrepreneurship, computer and electronic product manufacturing
    JEL: O1 O3 R1 R11
    Date: 2016–04–19
  4. By: Nabitz, Lisa; Plötz, Patrick; Braungardt, Sibylle; Reuter, Matthias
    Abstract: Innovation plays a crucial role in the transition towards a sustainable energy system. In order to simultaneously achieve the objectives of sustainability, energy security and competitiveness of the European economy, various energy policies are active. In recent years, the effect of energy policies on both technological and non-organisational innovations has gained interest. However, the complexity of the systems renders it difficult to disentangle the innovation effects of energy and innovation policies. Here, we outline a unifying framework based on the notion of technological innovation systems. It distinguishes between different phases of the innovation process, actors and functions in the innovation systems and allows studying the effects of policies on these in a systematic fashion. We apply our framework to case studies from the field of energy efficiency in industry for a technological and organisational innovation. Our results help to organise previous research findings and to identify gaps for further studies.
    Keywords: energy efficiency,innovation,policy measures,technology diffusion
    Date: 2016
  5. By: Judith Fessehaie; Zavareh Rustomjee; Lauralyn Kaziboni
    Abstract: This paper explores the linkages between the national systems of innovation of Botswana, South Africa, Zambia, and Zimbabwe and their respective mineral extraction and mineral processing value chains, including input industries. Our analysis reveals four individual national systems of innovation, with different outcomes in terms of engineering skills development, technical vocational education and training, research and development, innovation capabilities, and competitiveness of the domestic engineering consultancy services. These national systems of innovation are tentatively interconnected as an embryonic regional system of innovation, including institutional relationships, cross-border investment flows, flows of mining-related goods and services, and intra-Southern African Development Community flows of students, lecturers, technicians, and engineers. Notwithstanding important dynamics related to skills development and competence building happening across borders, more collaborative and synergistic initiatives between government, industry, and teaching and research institutions are required to shape a more balanced and coherent regional systems of innovation.
    Keywords: national system of innovation, linkage development, human capital and industrialization, southern Africa, resource-based industrialization, Southern African Development Community
    Date: 2016
  6. By: Quang-Hoi Vu; Thu Trang Vuong; Quan-Hoang Vuong
    Abstract: The notions of entrepreneurship and creativity in developed economies, despite having gained attention among researchers, remain embryonic in numerous emerging economies. Being focused on entrepreneurs in a typical transitional and emerging market economy, Vietnam, this paper aims to empirically explore the influence that past entrepreneurial efforts may exert on the perceptions of entrepreneurs about their own creativity performance. The study also seeks to understand how entrepreneurs social networks contribute to perceived creativity capacity by entrepreneurs who participate in those societies. The empirical research results suggest that entrepreneurs with business experience and active networking engagement are more likely to believe in their own creativity. This knowledge and insights in turn offer some implications for addressing the lack of radical creativity among Vietnamese entrepreneurs.
    Keywords: Creativity/innovation; entrepreneurship; emerging economy; Vietnam
    JEL: M13 O33 P21 P27
    Date: 2016–07–08
  7. By: KATO Takao; MIYAJIMA Hideaki; OWAN Hideo
    Abstract: This paper provides novel evidence on the effects of employee stock ownership (ESO), using new panel data on Japanese ESO plans for a highly representative sample of publicly-traded firms in Japan (covering more than 75% of all firms listed on Tokyo Stock Exchange) over 1989-2013. Unlike most prior studies, we focus on the effects of changes in varying attributes of existing ESO—the effects on the intensive margin. Our fixed effect estimates show that an increase in the strength of the existing ESO plans measured by stake per employee results in statistically significant productivity gains. Furthermore, such productivity gains are found to lead to profitability gains since wage gains from ESO plans are statistically significant yet rather modest. Our analysis of Tobin's Q suggests that the market tends to view such gains from ESO plans as permanent. We further find that increasing the stake of the existing core participants is more effective in boosting gains from ESO plans than bringing in more employees into the trust. Reassuringly, our key results are found to be robust to the use of instrumental variables to account for possible endogeneity of ESO plans. Finally, we explore possible interplays between ESO plans and firm characteristics such as ownership structure and firm size/age. First, the positive effects on productivity, profitability, wages and Tobin's Q are found to become larger as the proportion of powerful institutional investors and foreign investors rises, implying that the growing importance of such powerful outside shareholders may be reducing the adverse managerial entrenchment effect of ESO plans. Second, productivity gains from ESO plans are found to be more limited for smaller and younger firms. We interpret the finding as evidence in favor of the institutional complementarity view that ESO plans are an integral part of the Japanese High Performance Work System (HPWS)—a complementary cluster of human resource management practices which are more pervasive among larger and older firms in Japan.
    Date: 2016–06
  8. By: Nuno Campos Pereira (Católica Porto Business School, Universidade Católica Portuguesa); Nuno Araújo (CATIM - Centro de Apoio Tecnológico à Indústria Metalomecânica); Leonardo Costa (Católica Porto Business School and CEGE, Universidade Católica Portuguesa)
    Abstract: We developed a Counting Multidimensional Innovation Index (MII) framework for measuring and benchmarking innovation of Small and Medium Enterprises (SMEs), groups of SMEs, industries, regions, and countries. The methodology behind the MII is similar to the methodology behind the United Nations Multidimensional Poverty Index and follows the innovation definitions stipulated by the OECD Oslo Manual, covering dimensions and partial indicators suggested by this Manual and/or adapted from the Innovation Union Scoreboard (IUS) and from the Global Innovation Index (GII). To illustrate the MII framework, a survey was conducted among SMEs of the metalworking industry in Portugal.
    Keywords: Innovation, SME, Multidimensional Innovation Index, Portuguese Metal working Industry
    Date: 2016–07
  9. By: Mani Sunil (National Graduate Institute for Policy Studies, Centre for Development Studies, Trivandrum, KeralaCentre for Development Studies, Trivandrum, Kerala, India)
    Abstract: India is one of the fastest growing countries of the world at present. Currently she is attempting to raise the share of her manufacturing sector to at least a quarter of her GDP by 2022 through variety of proactive industrial policies. This has led to a debate of sorts on the role of industrial policies when the economy is moving towards a free market economy where the discretionary role of government is reduced to a minimum. India's small manufacturing sector, although now sixth largest in the world, is slowly moving towards high and medium technology industries, both in terms of manufacturing value added and in terms of share of manufactured exports. India is now slowly becoming an important player in selected high and medium high technology sectors such as aerospace, pharmaceuticals, and automobiles while her attempts at developing a telecommunications equipment manufacturing industry has failed. The paper identifies the vertical policies that have been crucial for the development or lack of it of each of these four high tech industries. While these vertical policies are shown to be one of the necessary conditions for the growth of these high technology sectors, the sufficient conditions depend on the existence of firm strategies that can take advantage of these proactive vertical policies. The paper thus underscores the importance of specific vertical policies be it is the case of the offset policy in the case of the aerospace industry, the patent policy in the case of the pharmaceutical industry and so on.
    Date: 2016–06
  10. By: Hernández Martínez, Pedro Jesús
    Abstract: The small average size of Spanish firms has been put forward as the main impediment to their international competitiveness. This paper re-examines the link between firm size and exports. The new theories of international trade emphasize firm heterogeneity as the theoretical basis of export behavior. In the context of this heterogeneity, the paper uses the quantile regression methodology to analyze the effect of firm size on firm export propensity (percentage of exported sales). The paper confirms the existence of a positive relationship between firm size and export intensity but finds that the conventional estimates of the elasticity of export propensity with respect to firm size on the average of the export propensities distribution underestimate the effect at the bottom of the distribution and overestimate the effect on most of it. Consequently, policies aimed at increasing exports should concentrate their efforts on increasing the size of those firms with lower export propensity.
    Keywords: exports,firm size,quantile regression,firm heterogeneity
    JEL: F14 L25
    Date: 2016
  11. By: Haque, Adnan ul; Faizan, Riffat; Zehra, Nasreen; Baloch, Akhtar; Nadda, Vipin; Riaz, Fayyaz
    Abstract: This empirical study explores different Leadership styles' dimensions influencing culturaloriented female employees' motivation in rapidly improving Pakistan's I.T sector. Hypothetico-Inductive-Deductive model was adapted to construct theoretical framework by opting mixed method under realism philosophy. Sample size is 357 female employees working in software houses of Pakistan's 10 cities selected by combining convenience sampling and stratified sampling techniques. Survey questionnaire contained close-ended questions based on Bass and Avolio (1994) Full Range MLQ Model and WMS. Moreover, 36 female employees were interviewed selected from top five business cities' of Pakistan's software houses through convenience sampling. Results indicate transformational leadership style's dimensions are dominant in motivating female employees scoring overall 0.75. Moreover, transactional has moderate positive relation (0.38) with sub-motivational variables. Though, 'Management-By-Expectation (Passive)' along with Laissez-faire leadership style has no relationship with sub-variables of motivation. In I.T sector of Pakistan, female employees are mainly motivated by interpersonal relations with supervisors, peers, and subordinate, friendly environment, flexibility, socialization, recognition, responsibility, social rewards, and most importantly improved working conditions. It is essential to motivate female workers through 'walk-the-talk' approach along with coerce and accurate vision.
    Keywords: Transformational Leadership, Transactional Leadership, Laissez Faire Leadership, Dimensions of Leadership Styles, Cultural-oriented female workforce, I.T Industry
    JEL: L0 L2 L29 L8 L86 M1 M12
    Date: 2015–10–18
  12. By: Neville K. Vakharia (Drexel University, USA); Marilena Vecco (Erasmus University Rotterdam, The Netherlands); Andrej Srakar (Institute for Economic Research, Faculty of Economics, University of Ljubljana, Slovenia); Divya Janardhan (The Ohio State University, USA)
    Abstract: This paper explores the concepts of knowledge-centric organizations in the performing arts sector as a means to understand how specific organizational practices relate to measures of financial and operational performance. Using the authors’ prior framework of a knowledge-centric arts organization, a quantitative study of 368 small and mid-sized non-profit performing arts organizations in the United States was conducted via primary data on 36 organizational practices and secondary data on 21 performance metrics. A statistical analysis using structural equation models found several distinct performance metrics’ dimensions that are statistically associated with knowledge-centric practices, in particular related to board contribution, the resilience of the organization and attendance. On the other hand, no relationship was confirmed with monetary performance measures. We were also able to show some important correlations between demographic characteristics of organizations and their usage of knowledge-centric practices. These findings can serve as a basis to further investigate how organizations can remain sustainable and operate effectively in a knowledge-driven society.
    Keywords: Knowledge Centricity, Organizational Performance, Knowledge Management, Performing Arts, Structural Equation Models
    JEL: D80 D83 G31 G32 C38 C43
    Date: 2016–07
  13. By: Jürgen Kruse (University of Cologne); Heike Wetzel (University of Kassel)
    Abstract: This article empirically analyzes supply-side and demand-side factors expected to affect innovation in clean coal technologies. Patent data from 93 national and international patent offices is used to construct new firm-level panel data on 3,648 clean coal innovators over the time period 1978 to 2009. The results indicate that on the supply-side a firm’s history in clean coal patenting and overall propensity to patent positively affects clean coal innovation. On the demand-side we find strong evidence that environmental regulation of emissions, that is, CO2, NOX and SO2, induces innovation in both efficiency improving combustion and after pollution control technologies.
    Keywords: clean coal technologies, innovation, patents, technological change
    JEL: C33 O31 Q40 Q55
    Date: 2016
  14. By: Bartz, Wiebke (Centre for Development Finance, Frankfurt School of Finance and Management); Mohnen, Pierre (UNU‐MERIT, Maastricht University); Schweiger, Helena (European Bank for Reconstruction and Development)
    Abstract: In this paper, we compare the impacts of management practices and innovation on productivity, using data from a unique firm-level survey covering 30 mostly developing countries in Eastern Europe and Central Asia in the period 2011-2014. We adapt the well-established three-stage model by linking productivity to innovation activities and management practices. Results suggest that both returns to innovation and returns to management practices are important drivers of productivity in developing economies. However, productivity in lower-income economies is affected to a larger extent by management practices than by innovation while the opposite holds in higher-income economies. These results imply that firms operating in less favourable business environments can reap large productivity gains by improving the quality of management practices, before engaging in innovation through imitating and adapting foreign technologies.
    Keywords: innovation, management practices, productivity, developing countries
    JEL: M21 O12 O32
    Date: 2016–06–16
  15. By: Tyrefors Hinnerich, Björn (Department of Economics); Vlachos, Jonas (Department of Economics, Stockholm University)
    Abstract: Sweden has a school voucher system with universal coverage and full acceptance of corporate providers. Using a value added approach, we find that students at upper-secondary voucher schools on average score 0.06 standard deviations lower on externally graded standardized tests in first year core courses. The negative impact is larger among lower achieving students (but not among immigrant students), the same students who are most prone to attend voucher schools. For high achieving students, the voucher school impact is around zero. Comparing internal and external evaluations of the same standardized tests, we find that voucher schools are 0.14 standard deviations more generous than municipal schools in their internal test grading. The greater leniency in test grading is relatively uniform across different groups, but more pronounced among students at academic than vocational programs. The findings are consistent with voucher schools responding more to differences in educational preferences than municipal schools.
    Keywords: Voucher schools; Student achievement; Grading standards
    JEL: H40 I21 I22
    Date: 2016–06–30
  16. By: Bayo-Moriones, Alberto (University of Navarra); Galdon-Sanchez, Jose Enrique (Universidad Pública de Navarra); Martinez-de-Morentin, Sara (Universidad Pública de Navarra)
    Abstract: In this study, we address the relationship between performance appraisal and competitive strategy, as well as the impact of this relationship on firm performance. The results indicate that the adoption of developmental performance appraisal and the use of administrative performance appraisal are higher among firms that pursue differentiation strategies compared to those competing on costs. Regarding firm performance, the interaction between a developmental appraisal system and a quality strategy displays higher return on equity and sales per employee. Those firms that combine a focus on innovation with administrative performance appraisal also enjoy higher performance. Finally, when the firm competes on the basis of cost reduction, the use of administrative appraisal increases the sales per employee.
    Keywords: performance appraisal, competitive strategy, firm performance, developmental appraisal, administrative appraisal
    JEL: M12 M52
    Date: 2016–07
  17. By: Marco Di Cintio, Marco Di Cintio; Sucharita Ghosh, Sucharita Ghosh; Emanuele Grassi, Emanuele Grassi
    Abstract: This paper studies firms’ decisions to export and invest in R&D and their effects on employment growth and labor flows for a sample of Italian SMEs operating in the manufacturing industry. After accounting for the under-reporting of R&D in SMEs, our quantile regressions reveal that (i) R&D is associated with higher employment growth rates, higher hiring rates and lower separation rates; (ii) R&D-induced exports are negatively related to employment growth and accessions and positively related to separations; and (iii) pure exports are not a driver of employment growth and labor flows.
    Keywords: Exports, R&D, Firm Growth, Quantile Regression, Research Methods/ Statistical Methods, J63, M51, O31, F14,
    Date: 2016–07–04
  18. By: Chen, Zhao (Fudan University, China); Fang, Tony (Memorial University of Newfoundland)
    Abstract: The rapid growth and high levels of internationalization by Chinese firms, raise a natural interest in the study of the factors which have led the notable international presence of Chinese firms. To contribute to this effort, we use data from the 2008-10 survey of China's High-tech firms, conducted by the Chinese Ministry of Science and Technology, to estimate the determinants of Chinese firm outward FDI (OFDI). In our analysis, the primary independent variables include high-tech intensity, human capital acquisition, and institutional factors. We have also controlled for various firm characteristics such as firm age, total value of fixed assets, and firm ownership. Estimation from our fixed-effects model uncovers a number interesting patterns in OFDI outcomes. Most notable, among the significant determinants of OFDI, the number of Chinese returnees employed by a firm seems to be more important than tax reduction policies. Further, the effects of the Chinese returnees have a stronger effect on non state-controlled firms than they do for state-controlled firms. This finding is intuitive, since the Chinese returnees who were trained in the West have an understanding of product markets, labour markets, financial markets, language and business culture, and trade laws in both China and the West. Their unique skill sets and knowledge appear to serve as an important catalysts in the growth of OFDI and internationalization by Chinese firms.
    Keywords: OFDI, Chinese firm internationalization, panel data
    JEL: F21 M16 F23
    Date: 2016–07
  19. By: Malamud, Semyon; Zucchi, Francesca
    Abstract: We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that financing constraints lead firms to decrease production but may spur investment in innovation (R&D). We characterize which firms should substitute production for innovation in the face of constraints and thus display a "gambling" type of behavior. We embed our firm dynamics into a model of endogenous growth and show that financing frictions have offsetting effects on economic growth. JEL Classification: D21, G31, G32, G35, L11
    Keywords: cash management, endogenous growth, financial constraints, innovation
    Date: 2016–06
  20. By: Aithal, Sreeramana; Kumar, Suresh
    Abstract: ‘Teacher quality’ is a composite term to indicate the quality of teachers in terms of explicit qualification of the faculty and implicit teacher characteristics such as ability, commitment, motivation supported by the adequacy of hiring procedures, faculty availability, professional development and recognition of teaching abilities. Teachers take initiative to learn and keep abreast of the latest developments, innovate, continuously seek improvement in their work and strive for individual and institutional excellence. This paper aims to outline the education service model developed by Srinivas Institute of Management studies (SIMS) for maintaining teacher quality. Backed by the presumption that knowledge is power and information is fundamental to knowledge building and knowledge sharing, the college aims to provide quality education to its students for improved academic performance. By providing under graduate and post graduate education in Business Management, Computer Applications and Social Work, the college has been providing education service in major areas of importance to the society. In this paper, we have analysed the strategies followed by Srinivas Institute of Management Studies, Mangalore in planning and management of its human resource to meet the changing requirements of the curriculum, student, and learning and challenges of time and strategies adopted by the institution in enhancing the teacher quality.
    Keywords: Teacher quality in higher education institution, Quality in higher education.
    JEL: I21
    Date: 2016–06
  21. By: d'Agostino, Giorgio; Scarlato, Margherita
    Abstract: This paper provides an empirical analysis of the linkages between the quality of government institutions and economic growth in the European context, highlighting innovation as the intermediate variable that drives this interplay. We use a standard non-scale R&D-based growth model as a theoretical framework and estimate the balanced growth path of per capita GDP for a sample of European countries and the transitional dynamic after a technological shock. Empirical analysis confirms the importance of technology as an instrument for increasing economic growth and suggests that inclusive institutions strongly affect this impact across the European countries. The magnitude of the effect is high: inclusive institutions redouble the effect of a technological shock on the growth rate of per capita GDP. This result suggests that innovation policies should carefully take into account the institutional setting of the contexts in which they are implemented in order to be effective.
    Keywords: Innovation, Economic growth, Institutions
    JEL: O30 O41 O43
    Date: 2016–07–09
  22. By: Madalina Cristina TOCAN (Faculty of Economics, Ecological University of Bucharest)
    Abstract: The terms "Entrepreneurship" and "Entrepreneur" became increasingly used worldwide because the entrepreneurship tends to be associated with the economic development and well-being of a nation. Entrepreneurship is a powerful driver of economic growth and job creation: it creates new companies and jobs, opens up new markets, and nurtures new skills and capabilities. According to EU Entrepreneurship Action Plan 2020 “Entrepreneurship makes economies more competitive and innovative and is crucial in achieving the objectives of several European sectorial policies” 'The objective of this paper is to present an analysis of the Romanian entrepreneurial ecosystem and the factors which influence it. Development of the present paper has been carried out through the analysis of the Romanian entrepreneurial business environment, using data supplied by the Global Entrepreneurship Monitor 2014, European Commission and Ernst & Young study “Entrepreneurs Talk”.
    Keywords: Entrepreneurship, skills and capabilities, entrepreneurial system
    JEL: L26 L31
    Date: 2015–11
  23. By: Tuncer Bulutay (Turkish Economic Association); Deniz Karaoğlan (Middle East Technical University, Ankara, Turkey (Visiting Scholar))
    Abstract: This study provides causal effect of education on health behaviors in Turkey which is a middle income developing country. Health Survey of the Turkish Statistical Institute for the years 2008, 2010 and 2012 are used. The health behaviors considered are smoking, alcohol consumption, fruit and vegetable consumption, exercising and one health outcome namely, the body mass index (BMI). We examine the causal effect of education on these health behaviors and the BMI Instrumental variable approach is used in order to address the endogeneity of education to health behaviors. Educational expansion of the early 1960s is used as the source of exogenous variation in years of schooling. Our main findings are as follows. Education does not significantly affect the probability of smoking or exercising. The higher the education level the higher the probability of alcohol consumption and the probability of fruit and vegetable consumption. Higher levels of education lead to higher BMI levels. This study provides a baseline for further research on the various aspects of health behaviors in Turkey.
    Date: 2016
  24. By: Erdenebat Bataa; Denise R.Osborn; Marianne Sensier
    Abstract: In the light of China's increasing importance in the global economy, we investigate changes in the international spillovers of quarterly GDP growth rates since 1975 in a system consisting of the USA, Euro area and China. Utilizing an iterative procedure for detecting structural breaks in the VAR coefficients and covariance matrix, we find dynamics to be unchanged, but volatilities change in 1983, 1993 and 2007, with cross-country correlations markedly increasing around the time of the Great Recession. This recent period consequently shows increased international growth spillovers, measured through generalized impulse responses. Although largely isolated from the other large economies until 2007, growth in China is subsequently important for both the US and the Euro area. At the same time, the volatility of China's growth becomes more closely associated with these other large economies, especially the US in terms of net volatility spillovers.
    Date: 2016
  25. By: Ana Fontoura Gouveia (Gabinete de Planeamento, Estratégia, Avaliação e Relações Internacionais / Office for Economic Policy and International Affairs - Ministério das Finanças / Ministry of Finance); Filipa Canas
    Abstract: Portugal implemented a large number of structural reforms in the recent years, which are expected to enhance the allocation of resources in the economy, namely from the non-tradable to the tradable sector. We argue that the methodology to identify the tradable sector used by some international institutions is outdated and may hamper an accurate assessment of the structural progress achieved so far. Based on an enhanced methodology to identify the tradable sector of the economy, we provide more solid ground for future assessments of structural economic developments. By looking at some standard economic indicators, we show that our new criterion provides a different picture of the resource allocation in the Portuguese economy and of the adjustment of the recent years as compared to the one provided by commonly used criteria.
    Keywords: Allocative Efficiency, Trade, Microeconomic Policy
    JEL: D61 F14 E D04
    Date: 2016–02
  26. By: Madalina Cristina TOCAN (Faculty of Economics, Ecological University of Bucharest); Oana CHINDRIS-VASIOIU (Faculty of Economics, Ecological University of Bucharest)
    Abstract: The economy, in different historical stages and development in any part of the Terra planet, develops and grows between two coordinates, namely: production and consumption. Their relationship is interdependence, reciprocity. This relationship production-consumption which means savings in relation to the environment (initially natural environment) has two aspects: the environment is the economy support and a supplier of raw materials - support is established by the necessary energy production process for finished products and their distribution, waste results; Environmental structure at one time is changed by technological production processes actually determining ecological imbalances. The present paper tries to present the core concepts regarding green economy, the eco- economic decisions, environmental management system and the present situation of the environmental management within the Romanian companies.
    Keywords: green economy, eco-economic decisions, Environmental Management System, Sustainable Development
    JEL: O44 Q57
    Date: 2015–11

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