nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2013‒09‒25
six papers chosen by
David J. Pollard
Leeds Metropolitan University

  1. Substitution or overlap? The relations between geographical and non-spatial proximity dimensions in collaborative innovation projects By Hansen, Teis
  2. Институциональный эксперимент By Polterovich, Victor
  3. The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective By Liu, Ju; Chaminade, Cristina; Asheim, Bjørn
  4. Trade reforms and current account imbalances By Ju, Jiandong; Shi , Kang; Wei , Shang-Jin
  5. Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on their R&D? By Ejermo, Olof; Bergman, Karin
  6. Self-employment and the local business cycle By Svaleryd, Helena

  1. By: Hansen, Teis (CIRCLE, Lund University)
    Abstract: Traditionally, economic geographers stress geographical proximity’s positive impact on collaboration processes. Recently, effects of cognitive, organisational, social and institutional proximity dimensions have been emphasised. This paper examines the relations between geography and these non-spatial dimensions by distinguishing two mechanisms: the substitution mechanism, where non-spatial forms of proximity substitute for geographical proximity, and the overlap mechanism, where geographical proximity facilitates non-spatial proximity. The two mechanisms’ importance is analysed in collaborative innovation projects in the Danish cleantech industry. Regression models are complemented by a qualitative analysis of the relationship between the geographical and institutional dimensions, which is the only relation where the substitution mechanism is of little importance.
    Keywords: Proximity; cleantech; collaboration; knowledge linkages; innovation
    JEL: L69 O31 R11
    Date: 2013–05–10
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_018&r=cwa
  2. By: Polterovich, Victor
    Abstract: I discuss goals of institutional experimentation as well as obstacles for its realization. The special attention is given to regional experiments. Institutional experiment reduces transformation costs, in particular, by diminishing probability of formation of erroneous reforms trap. The analyses of introduction of a pay-as-you-go pension component in several tens of countries and the history of introduction of the Unified State Examination in Russia show the importance of planning the experiments in advance and using objective procedures of assessment of their results. The reasons for adopting a law on the institutional experiment are given.
    Keywords: interim institution; transformational cost; line of institutions; Unified State Examination; pension reform; evaluation of an experiment
    JEL: D02 E02 H75 L85 O1 P5
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:50071&r=cwa
  3. By: Liu, Ju (CIRCLE, Lund University); Chaminade, Cristina (CIRCLE, Lund University); Asheim, Bjørn (CIRCLE, Lund University)
    Abstract: This paper explores the geography and structure of global innovation networks (GINs) of two multinational companies belonging to industries with different knowledge bases. It contributes to existing literature on knowledge bases, by studying both intra-firm and inter-firm GINs. By means of social network analysis based on primary data, we identify two different forms of GINs, namely the globallyorganised model and the locally-organised model. The paper finds that, in addition to influencing the geographic spread of a GIN, the knowledge base also influences the way that a GIN is organised.
    Keywords: global innovation network; multinational companies; knowledge base; structure; geography; social network analysis
    JEL: F23 O32
    Date: 2012–09–15
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_015&r=cwa
  4. By: Ju, Jiandong (BOFIT); Shi , Kang (BOFIT); Wei , Shang-Jin (BOFIT)
    Abstract: In partial equilibrium, a reduction in import barriers may be thought to lead to an increase in imports and a reduction in trade surplus. However, the general equilibrium effect can go in the opposite direction. We study how trade reforms affect current accounts by embedding a modified Heckscher-Ohlin structure and an endogenous discount factor into an intertemporal model of current account. We show that trade liberalizations in a developing country would generally lead to capital outflow. In contrast, trade liberalizations in a developed country would result in capital inflow. Thus, efficient trade reforms can contribute to global current account imbalances, but these imbalances do not need policy "corrections".
    JEL: F32 F49
    Date: 2013–09–04
    URL: http://d.repec.org/n?u=RePEc:hhs:bofitp:2013_025&r=cwa
  5. By: Ejermo, Olof (CIRCLE, Lund University); Bergman, Karin (AgriFood Economics Centre, Lund Sweden)
    Abstract: While the distinction between manufacturing and services becomes increasingly blurred to some observers, we find, using a panel of Swedish firms, clear evidence that foreign sales (exports) are more important than domestic sales for stimulating R&D. This is particularly clear for manufacturing and this importance of foreign sales has increased over time, simultaneous to an opening up of the Swedish economy. Even though service industries have seen an increase in both R&D and trade over time, it is thus mainly manufacturing that has benefited from increased possibilities for absorptive capacity. This result suggests a clear dichotomy between manufacturing and services in terms of how they react to trade and how they turn towards the foreign market vs. the domestic market to find stimuli for innovation
    Keywords: Research and Development; Foreign and domestic sales; services; manufacturing
    JEL: D22 F14 F43 L60 L80 O14 O31 O33 O52
    Date: 2013–06–15
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_022&r=cwa
  6. By: Svaleryd, Helena (Department of Economics)
    Abstract: The business cycle is likely to be of importance for self-employment rates. When the economy is growing, business opportunities open up and encourage the set-up of new firms. In downturns, self-employment may be a way to avoid unemployment. The strength of these pull and push factors may depend on the amount of human capital a person has. The findings in this paper show that although the local business cycle is of minor importance for total self-employment rates in Sweden, there are heterogeneous effects across groups. People with higher human capital endowments are more likely to be pulled into self-employment, while those with lower human capital endowments are to a larger extent pushed into self-employment. This pattern is particularly strong for women.
    Keywords: Self-employment; local business cycle; panel data
    JEL: J21 J24
    Date: 2013–08–28
    URL: http://d.repec.org/n?u=RePEc:hhs:uunewp:2013_015&r=cwa

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