nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2022‒02‒21
24 papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Why is World Money World Money? A View from the Functions of Money By Jeremy Srouji
  2. Elements of an evolutionary approach to comparative economic studies: complexity, systemism, and path dependent development By Claudius Graebner-Radkowitsch
  3. Экономическая теория и формирование человеческих качеств By Polterovich, Victor
  4. Digitalization, copyright and innovation in the creative industries: an agent-based model By Alessandro Nuvolari; Arianna Martinelli; Elisa Palagi; Emanuele Russo
  5. When is the Long Run? – Historical Time and Adjustment Periods in Demand-led Growth Models By Ettore Gallo
  6. Factor Income Distribution and Capital Accumulation in Peru, 1940-2019 By César Castillo-García
  7. Structural change in the US Phillips curve, 1948-2021: the role of power and institutions By Mark Setterfield; Robert A. Blecker
  8. Industrial Feudalism and Wealth Inequalities By Hanna Szymborska; Jan Toporowski
  9. Wealth Inequality and Social Mobility: A Simulation-Based Modelling Approach By Yang, Xiaoliang; Zhou, Peng
  10. Ingreso relativo, identidad de género y brecha en el trabajo doméstico no remunerado: Evidencia para Colombia By Andrea Salazar-Díaz
  11. На пути к общей теории социально-экономического развития: к синтезу двух канонов By Polterovich, Victor
  12. Fair trade for the resilience of cooperatives: The case of a female argan cooperative in Morocco in the context of Covid-19 By Lahcen Benbihi; Abdelhaq Lahfidi
  13. The financial network channel of monetary policy transmission: An agent-based model By Michel Alexandre; Gilberto Tadeu Lima; Luca Riccetti; Alberto Russo
  14. Banks' structural power and states' choices over what structurally matters: The geo-economic foundations of state priority towards banking in France, Germany and Spain By Massoc, Elsa Clara
  15. What’s so troubling about ‘voluntary’ in family planning anyway? A feminist perspective By Nandagiri, Rishita
  16. Economic and Social Crisis Management Strategies by Prophet Muhammad (PBUH) in Medina By Alani, Usama
  17. Just transition in Southeast Asia: Exploring the links between social protection and environmental policies By Alexandre Berthe,; Pascale Turquet,; Huynh Thi Phuong Linh.
  18. What role for social policies in the framework of the just transition in South Africa? By Wendy Annecke; Peta Wolpe
  19. A systems approach for the sustainable development of coastal-rural regions By Alice Guittard; Ebun Akinsete; Phoebe Koundouri; Rachel Tiller; Peter Viaene
  20. Resilience to economic shrinking as the key to economic catch-up: A social capability approach By Andersson, Martin; Julia, Juan P.; Palcio Ch., Andrés F.
  21. Welfare poverty and human development By Antonio Villar
  22. Open Eco-innovation. The New Form of Cooperation for Sustainable Future. By Chistov, Valery; Tanwar, Sunita; Yadav, C.S.
  23. Resilience to shrinking as a catch-up strategy: a comparison of Brazil and Indonesia, 1964–2010 By Axelsson, Tobias; Martins, Igor
  24. Heterogeneidad estructural en la ciudad latinoamericana. Más allá del dualismo By Samuel Jaramillo

  1. By: Jeremy Srouji (Université Côte d'Azur, France; GREDEG CNRS; International Institute of Social Studies - Erasmus University Rotterdam)
    Abstract: The literature on currency internationalization, with its focus on the essential attributes of an international currency issuer, is largely inadequate for explaining what causes the currency of a country to be adopted and to remain as world money. This paper argues that embedded within the well-known framework of the functions of money – as a medium of exchange, unit of account and store of value – are fundamental assumptions about how Economics defines and understands money. Drawing on conventional and Post Keynesian approaches, it demonstrates that current theories of currency internationalization, and questions of international money more generally, are embedded in underlying theories of money that are very specific about the process through which currencies achieve and maintain an international position. It also finds that a better understanding of the functional approach to money can bring greater theoretical clarity to the positions of various authors on questions of international money. At the same time, it argues that shortfalls in both the conventional and Post Keynesian approaches to money are inevitably also transposed to the international level. These need to be addressed before a more comprehensive theory of currency internationalization can emerge.
    Keywords: international money, international reserves, US dollar, currency internationalization, cryptocurrency
    JEL: E12 E13 E42 E52
    Date: 2021–12
  2. By: Claudius Graebner-Radkowitsch (Institute for Socio-Economics, University of Duisburg-Essen, Germany; Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; ZOE Institute for future-fit Economies, Bonn, Germany; International lnstitute of Management and Economic Education, Europa-Universitaet Flennsburg, Germany)
    Abstract: This chapter delineates an evolutionary approach to the comparative analysis of economic systems and illustrates its usefulness via an exemplary application to recent developments in the European Union. The first part of the chapter describes the meta-theoretical foundations of the approach, i.e. its particular ontological and epistemological vantage points. This allows for an easier comparison (and, potentially, triangulation) with other approaches to comparative analyses, and already provides for some practical guidelines for applied work. The second part applies the approach and studies polarization patterns in the European Union. While this application is not meant as a fully self-contained analysis, it not only illustrates how the concepts of the approach can be operationalized and applied in practice, but also the application of several empirical methods that can be used fruitfully within such an evolutionary analysis. The chapter concludes with a non-exhaustive list of concepts and topics that are particularly insightful to consider when conducting an analysis in the spirit of an evolutionary approach to the comparative analysis of economic systems.
    Date: 2022–01
  3. By: Polterovich, Victor
    Abstract: It is shown that economic theory not only takes into account human qualities as factors influencing the evolution and efficiency of economic mechanisms, but also influences their formation, although indirectly. Scientific researches modify the dominant ideology on which economic policies that shape economic institutions depend. In the process of adjusting to the modification of formal norms of behavior, the human qualities of the participants change. The described scheme is confirmed by the example of the Chicago School of Economics, which gave birth to the ideology and policy of neoliberalism.
    Keywords: ideology, competition, morality, coordination mechanism
    JEL: A11 A12 A13 Z10
    Date: 2022–01–15
  4. By: Alessandro Nuvolari; Arianna Martinelli; Elisa Palagi; Emanuele Russo
    Abstract: The ambiguity of the empirical results on the relationship between copyright and creativity calls for a better theoretical understanding of the issue, possibly enlarging the analysis to other factors such as technology and copyright enforcement. This paper addresses these complex policy issues by developing an agent-based model (ABM) to study how the interplay between digitization and copyright enforcement affects the production and access to cultural goods. The model includes creators who compete in different submarkets and invest in activities that might lead to the generation of creative outputs in existing submarkets, new (to the creators) submarkets, or in newly 'invented' submarkets. Finally, the model features a copyright system that provides creators with the exclusive right to reproduce their original copies and a pirate market responsible for creating and distributing pirated copies.
    Keywords: Innovation; Intellectual property rights; Creative industries; Copyright; Agent-based models.
    Date: 2022–01–28
  5. By: Ettore Gallo (Department of Economics, New School for Social Research)
    Abstract: In recent years, Post-Keynesian models of growth and distribution have substantially shifted their focus from short to long-run analysis. While many authors have focused on the convergence of demand-led growth models to a fully-adjusted equilibrium, relatively little attention has been given to the time required to reach this long-run position. In order to fill the gap, this paper seeks to answer the question of when is the long run in demand-led growth models. By making use of numerical integration, it analyses the time of adjustment from one steady-state to the other in two well-known demand-led growth models: the Sraffian Supermultiplier and the fully-adjusted version of the neo-Kaleckian model. The results show that the adjustment period is generally beyond an economically meaningful time span, suggesting that researchers and policy makers ought to pay more attention to the models’ predictions during the traverse rather than focusing on steady-state positions.
    Keywords: Neo-Kaleckian model, Sraffian Supermultiplier, time, adjustment period, traverse, effective demand, growth
    JEL: B51 E11 E12 B41
    Date: 2022–02
  6. By: César Castillo-García (Department of Economics, New School for Social Research)
    Abstract: A current problem with Latin American economies is the lack of long-run official statistical data for income shares. Nevertheless, several proposals attempt to present estimations to proxy the evolutionary patterns of income distribution in different countries of the region. This study focuses on the factor income distribution for the Peruvian economy. It aims to show time series for the wage, profit, and mixed-income shares for the period 1942-2019 as reconstructed in Castillo (2015). I also present a brief history of the Peruvian macroeconomic regimes. Hence, the evolution of the wage and profits shares relate to the structural transformations of the Peruvian economy and the impact of economic policy in the distributive cycles. The paper ends with the estimation of a Kaleckian model and evaluates the economic growth regime for different time periods. While the whole 1940-2019 is a wage-led growth regime, economic growth in the Neoliberal era 1990-2019 is profit-led because of Peruvian structural changes and 1990s adjustment policies.
    Date: 2022–02
  7. By: Mark Setterfield (Department of Economics, New School for Social Research); Robert A. Blecker (Department of Economics, American University)
    Abstract: This paper provides an institutional-analytical account of changes in the structure of the US Phillips curve (PC) during the post-war period. It does so by restoring conflict and power to the forefront of macro theory and, in particular, the wage- and price-setting behaviour of workers and firms. The resulting account is consistent with the main stylized facts that characterize the evolution of the US PC since 1948: the disappearance and subsequent reappearance of a ‘standard’ PC (relating the level of the inflation rate, not the change in this rate, to the rate of unemployment); and the flattening of the PC since the 1990s.
    Keywords: Phillips Curve, inflation, unemployment, natural rate hypothesis, bargaining power, institutions
    JEL: E12 E24 E25 E31 N12
    Date: 2022–01
  8. By: Hanna Szymborska (Birmingham City University); Jan Toporowski (SOAS, University of London)
    Abstract: The possibility, first raised by Rudolf Hilferding, of stabilizing a capitalist economy through the operations of a 'general cartel', leaving only social and political 'contradictions' to disturb the functioning of the system, gave rise to a discussion among Marxists not only on whether such a stabilization was at all possible, but also on the nature and scope of those contradictions. This discussion had been anticipated in the 1890s in the work of the Polish Marxist Ludwik Krzywicki (1859 - 1941). He put forward the idea that, in a capitalist economy stabilized in this way, a state of 'industrial feudalism' would prevail, in which society would become stratified into social classes without the possibility of mobility between those classes. This analysis was extended in 1940s by Oskar Lange (1904-1965) as he attempted to make sense of the American New Deal and rediscovered in the 1950s by Tadeusz Kowalik (1926-2012). This paper explains the concept of industrial feudalism and argues that the main mechanism for such a stratification today is the unequal distribution of wealth, in the context of declining welfare provision.
    Keywords: Industrial feudalism; social mobility; wealth distribution; Ludwik Krzywicki; Oskar Lange; Tadeusz Kowalik
    JEL: B14 B15 N3 P1 P16
    Date: 2022–01–18
  9. By: Yang, Xiaoliang (Zhongnan University of Economics and Law, Wuhan, China); Zhou, Peng (Cardiff Business School)
    Abstract: We design a series of simulation-based thought experiments to deductively evaluate the causal effects of various factors on wealth inequality (the distribution) and social mobility (dynamics of the distribution). We find that uncertainty per se can lead to a “natural” degree of inequality and returns-related factors contribute more than earnings-related factors. Based on these identified factors, we construct an empirical, hybrid agent-based model to match the observed wealth inequality measures of the G7 countries and China. The estimated model can generate a power-law wealth distribution for the rich and a positively sloped intra-generational Great Gatsby curve. We also demonstrate how this hybrid model can be extended to a wide range of questions such as redistributive effects of tax and finance.
    Keywords: Wealth Inequality; Social Mobility; Agent-Based Model
    JEL: D31 E21 J60
    Date: 2022–02
  10. By: Andrea Salazar-Díaz
    Abstract: Este articulo analiza el efecto de las normas sociales de identidad de género sobre el ingreso y el uso de tiempo relativo dentro de los hogares en Colombia. Se muestra que existe una discontinuidad en la distribución de la participación de la mujer en los ingresos del hogar, justo cuando excede los ingresos del hombre. Este fenómeno se ha observado en diferentes países, y en su mayoría, ha sido atribuido a las normas sociales de identidad de género que inducen una aversión a que la mujer perciba mayores ingresos que su pareja. En esta investigación se extiende este análisis y se muestra que la caída en esta distribución es mayor en las parejas menos educadas y en las más tradicionales, consistente con una percepción de roles de género más fuerte. Asimismo, se encuentra que en las parejas donde la mujer supera los ingresos del hombre, la brecha del trabajo doméstico no remunerado aumenta aproximadamente en una hora diaria. El incremento de esta brecha se explica únicamente por un aumento en el tiempo que destinan las mujeres a estas labores domésticas, lo que a su vez, resulta en una reducción de su tiempo libre para poder asumir esta carga extra dentro del hogar. Lo anterior sugiere que las mujeres incrementan su participación en el trabajo doméstico no remunerado para aliviar la desviación de roles de género cuando ganan más dinero que su pareja. ABSTRACT: This article studies the effect of gender identity social norms on relative income and time use in Colombia’s households. I find a discontinuity in women’s relative income distribution, precisely in the point when they exceed men’s income. This phenomenon has been observed in other countries and it has been mostly attributed to gender identity social norms that induce an aversion to women earning more income than their partners. I extend this analysis and show that the drop in the relative income distribution is greater in less educated and more traditional couples, consistent with a strong prescription of gender roles. In addition, I find that the unpaid domestic work gap increases by approximately one hour a day in those households where women exceed men’s income. This could only be explained by an increase in the time women dedicate to core domestic work, which also implies a reduction in women’s free time. The results suggest that women increase their unpaid domestic work participation to alleviate the gender role deviation when they earn more money than their partners.
    Keywords: Ingreso Relativo, Normas sociales, Identidad de género, Brecha de género en el trabajo doméstico no remunerado, Relative Income, Social Norms, Gender Identity, Unpaid work gap
    JEL: D10 D91 J16 J22
    Date: 2022–01
  11. By: Polterovich, Victor
    Abstract: In a number of works, the author has shown that economic theory is in a permanent crisis due to fundamental reasons, and that a possible way out of it is the formation of a general social analysis based on the synthesis of various social disciplines. Relying on the concept of two canons, this article attempts to reveal the structural features of the emerging synthetic theory. At present, the first canon is being implemented within the framework of the equilibrium school, and the second - within the framework of the institutional-historical school. It is shown that the differences between them are manifested mainly in attempts to create a general theory of socio-economic development. While pursuing common goals, they use different methodological guidelines. The synthesis of the two canons is possible; it will be an important step in the improvement of the science of society.
    Keywords: marginalism, historical school, equilibrium, economic policy, general social analysis
    JEL: B10 B15 B25 N01
    Date: 2022–01–15
  12. By: Lahcen Benbihi (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], Université Ibn Zohr [Agadir]); Abdelhaq Lahfidi (Université Ibn Zohr [Agadir])
    Abstract: Abstract: The cooperative model is widely recommended for small producers who wish to integrate into fair trade (ICA, 2020; Nicholls, 2015; Tadros & Malo, 2004). If fair trade certified cooperatives have been able to show significant resistance to the negative effects of the Covid-19 health crisis (Ribeiro-Duthie et al., 2020), how does fair trade certification contribute to the resilience of cooperatives in the context of crises? A case study (Yin, 2018) was carried out with a fair trade certified women's argan oil production cooperative. The cross-analysis of the results shows that the cooperative integrated into the international fair trade network is capable of improving the adaptive capacity of their women members. The results of the research show the reactions of the cooperative to the effects of covid-19 in two levels: at the first level are presented the solidarity and social reactions of the cooperative thanks to the fair trade certification, at the second level are presented the entrepreneurial reactions of the cooperative to maintain the activity of its women members. Research shows that fair trade contributes to improving the resilience of cooperatives through the innovation of solutions to social problems and the guarantee of the best trading conditions allowing the organization to maintain its entrepreneurial activity during the crisis. Keywords: fair trade, social innovation, entrepreneurship, cooperative, resilience.
    Abstract: Résumé: Le modèle coopératif est largement recommandé aux petits producteurs qui souhaitent s'intégrer dans le commerce équitable (ICA, 2020; Nicholls, 2015; Tadros & Malo, 2004). Si les coopératives certifiées commerce équitable ont pu montrer une résistance importante aux effets négatifs de la crise sanitaire Covid-19 (Ribeiro-Duthie et al., 2020), comment la certification commerce équitable contribue-t-elle à la résilience des coopératives dans le contexte des crises ? Une étude de cas (Yin, 2018) a été menée auprès d'une coopérative féminine de production de l'huile d'argane certifiée commerce équitable. L'analyse croisée des résultats montre que la coopérative intégrée dans le réseau international du commerce équitable est capable d'améliorer la capacité d'adaptation de leurs femmes membres. Les résultats de la recherche font apparaitre les capacités d'adaptation de la coopérative aux effets de covid-19 en deux niveaux : au premier niveau sont présentés les réactions solidaires et sociales de la coopérative grâce à la certification commerce équitable, au deuxième niveau sont présentés les réactions entrepreneuriales de la coopérative pour maintenir l'activité de ses femmes membres. La recherche montre que le commerce équitable contribue à améliorer la résilience des coopératives à travers l'innovation des solutions aux problèmes sociaux et la garantie des meilleures conditions commerciales permettant à l'organisation de maintenir son activité entrepreneuriale pendant la crise. Mots-clés : commerce équitable, innovation sociale, entrepreneuriat, coopérative, résilience.
    Date: 2021–10–29
  13. By: Michel Alexandre (Central Bank of Brazil and Institute of Mathematics and Computer Science, University of Sao Paulo, Sao Carlos, Brazil); Gilberto Tadeu Lima (Department of Economics, University of Sao Paulo, Brazil); Luca Riccetti (Department of Economics and Law, University of Macerata, Italy); Alberto Russo (Department of Management, Università Politecnica delle Marche, Ancona, Italy and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: The purpose of this paper is to contribute to a further understanding of the impact of monetary policy shocks on a financial network, which we dub the “financial network channel of monetary policy transmisión”. To this aim, we develop an agent-based model (ABM) in which banks extend loans to firms. The bank-firm credit network is endogenously time-varying as determined by plausible behavioral assumptions, with both firms and banks being always willing to close a credit deal with the network partner perceived to be less risky. We then assess through simulations how exogenous shocks to the policy interest rate affect some key topological measures of the bank-firm credit network (density, assortativity, size of largest component, and degree distribution). Our simulations show that such topological features of the bank-firm credit network are significantly affected by shocks to the policy interest rate, and this impact varies quantitatively and qualitatively with the sign, magnitude, and duration of the shocks.
    Keywords: Financial network, monetary policy shocks, agent-based modeling
    JEL: C63 E51 E52 G21
    Date: 2022
  14. By: Massoc, Elsa Clara
    Abstract: Since the 2008 financial crisis, European largest banks' size and business models have largely remained unchallenged. Is that because of banks' continued structural power over States? This paper challenges the view that States are sheer hostages of banks' capacity to provide credit to the real economy - which is the conventional definition of structural power. Instead, it sheds light on the geo-economic dimension of banks' power: key public officials conceive the position of "their own" market-based banks in global financial markets as a crucial dimension of State power. State priority towards banking thus result from political choices over what structurally matters the most for the State. Based on a discourse analysis of parliamentary debates in France, Germany and Spain between 2010 and 2020 as well as on a comparative analysis of the implementation of a special tax on banks in the early 2010s, this paper shows that State's Finance ministries tend to prioritize geo-economic considerations over credit to firms. By contrast, Parliaments tend to prioritize investment. Power dynamics within the State thus largely shape political priorities towards banking at the domestic and international levels.
    Keywords: structural power,States,banks,geo-economics,institutions
    Date: 2022
  15. By: Nandagiri, Rishita
    Abstract: Voluntary family planning is a key mainstay of demographic work and population policies. The 1994 International Conference on Population and Development (ICPD) signalled a decisive shift away from a focus on fertility reduction and target-setting to an emphasis on voluntary family planning as a part of a broader reproductive health and women’s empowerment approach. Yet, criticisms of voluntary family planning programmes persist, particularly in interrogations of how ‘voluntariness’ is understood and wielded or assertions of the instrumentalization of women’s fertilities in the service of economic and developmental goals. In this paper, I reflect on these debates with the aim of contesting the notion of voluntary family planning as an unambiguous good that enables equitable empowerment and development for all. Drawing on literature from cognate disciplines, I highlight how voluntariness is linked to social and structural conditions, and I challenge the instrumentalization of voluntary family planning as a ‘common agenda’ to solve ‘development’ problems. Engaging with these interrogations of voluntariness can expand and contribute to understandings of key concepts (e.g. ‘voluntary’) and measurements (e.g. how we measure autonomy or voluntariness in family planning), strengthening the collective commitment to achieving the aims of the ICPD and contributing to reproductive empowerment and autonomy. Through this intervention, I aim to help demographers see why some critics call for a reconsideration of voluntary family planning and encourage a decoupling of interventions from fertility reduction aims, instead centring human rights, autonomy, and reproductive empowerment.
    Keywords: fertility; voluntary family planning; population policy; feminist demography; reproduction; T&F deal
    JEL: N0
    Date: 2021–12–13
  16. By: Alani, Usama
    Abstract: Reviewing the actions of the Prophet (peace and blessings of Allah be upon him) represent a divine order should be followed, even though it has a devotional and transaction reflection in Muslim's life. His actions (PBUH) do not represent a novel, but a method that should be followed and learned. Muslims during their migration to Medina faced a lot of crises, Prophet (PBUH) realized it and turned them into an opportunity, so the paper tries to follow the strategies, which the Prophet (PBUH) used to solve the crisis The goals of the research are determining the characteristics of the economic and social crisis of migrants, explaining the crisis management strategies exercised by the Prophet (PBUH) to address the crisis and the place of these strategies in crisis management theory today. The research will cover the transitional stage that confronted the Muslims in establishing their state in Madina by managing the economic and social crisis of migrants.
    Keywords: Sunnah, Economic crisis, Social crisis, Crisis management strategy.
    JEL: B0
    Date: 2021–06
  17. By: Alexandre Berthe,; Pascale Turquet,; Huynh Thi Phuong Linh.
    Abstract: The link between social protection and the environment is expected to become a growing policy intervention area in Southeast Asia. Based on a systematic review of the academic and institutional literature, this article proposes identifying the different possible visions of the link between social protection and environmental issues and their operationalization. By clustering the papers based on a reading grid proposed by the authors, the research shows this literature for the Mekong area is not very developed to date and most of the selected papers’ approach seem only to leave room for disaster response and assistance. The article also raises the question of the perimeter and very definition of social protection in these changing contexts and shows it is becoming necessary to build multilevel common socio-ecological systems.
    Keywords: Asie et Pacifique
    JEL: Q
    Date: 2022–01–27
  18. By: Wendy Annecke; Peta Wolpe
    Abstract: This paper explores the extent to which social policies in South Africa might serve as mechanisms to enhance the transition to a low carbon economy and contribute to mitigating some of the negative impacts towards ensuring a holistic and just transition. It attempts to contribute to the fluid and contested nature of the debate on a just transition in South Africa by mapping the entrenched historical implications of coal use, overlaying these with a description of some of the policies developed to address energy and climate change and analysing the extent to which current social protection policies, designed to facilitate well-being, might be harnessed towards a more equitable society and a just transition.
    Keywords: Afrique du Sud
    JEL: Q
    Date: 2022–02–11
  19. By: Alice Guittard (ICRE8); Ebun Akinsete (ICRE8); Phoebe Koundouri; Rachel Tiller; Peter Viaene
    Abstract: Tools and approaches to support evidence-based policy making and strategic planning are central to achieving long term sustainable development. In particular, where coastal communities are concerned, their complex nature demands methods capable of capturing a holistic picture of the socio-ecological interactions at play. This paper presents a system approach, combining qualitative and quantitative methodologies - participatory stakeholder engagement tools with system dynamic modeling - within a co-creation process, in order to identify problems and set up evidence-based business roadmaps and policy actions. These actions are focused on coastal-rural synergies and cross-sectoral collaborations in order to drive coastal-rural regions towards a sustainable future. The paper outlines the process by which researchers work collaboratively with local stakeholders to co-produce business roadmaps and policy actions, to be used as strategic guideline for local development.
    Keywords: system thinking, systems dynamics, cross-sectoral collaborations, stakeholder engagement, coastal-rural development
    Date: 2022–01–27
  20. By: Andersson, Martin (Department of Economic History, Lund University); Julia, Juan P. (Unit for Economic History, University of Gothenburg); Palcio Ch., Andrés F. (Department of Economic History, Lund University)
    Abstract: Economic growth is usually considered the main driver of convergence – the attainment by developing countries of income levels similar to those of industrialised nations. Although it has been recognised that achieving economic growth is not the same as sustaining it, analyses of the role of economic shrinking in the catching-up process, and how to build resilience to shrinking, are in short supply. The objective of this paper is to understand how emerging economies can limit the frequency and magnitude of economic shrinking and thus increase the probability of catching up. To this end, we analyse the role of social capabilities as determinants of resilience to shrinking in 26 developing countries during the period 1964– 2018. As a representation of a broad spectrum of capabilities, we construct an Index based on five interrelated social and economic capabilities: (i) transformation of the economic structure, (ii) market inclusion, (iii) social stability, (iv) accountability and (v) autonomy of the state. We demonstrate that countries with better social capabilities are more resilient to shrinking than countries with poor capabilities. Poorly endowed countries do not necessarily lack the ability to generate growth, but their limited resilience prevents them from catching up. In addition, the paper shows that social capabilities are highly relevant in smoothing the negative effects of international trade shocks in developing countries. The main implication of the paper is that improvement of social capabilities should be regarded as a key instrument to promote long-term, sustainable economic development, and it should be emphasised over short-term maximization of economic growth. This could be done by conciliating socioeconomic transformation with other concerns, such as the sustainable use of natural resources.
    Keywords: economic shrinking; social capabilities; resilience; economic growth; catching up; developing countries
    JEL: O47 O57
    Date: 2021–12–20
  21. By: Antonio Villar (Department of Economics, Universidad Pablo de Olavide)
    Abstract: This paper proposes an approach to poverty measurement based on the interpretation of poverty as a welfare loss. A multidimensional poverty index is derived here from a social evaluation function and a vector of poverty thresholds. A welfare poverty index is defined as the relative welfare loss due to the insufficient welfare of those agents whose achievements do not reach the minimum established. Under standard assumptions, this index can be expressed as the product of the incidence and the intensity of poverty. We include an application to the measurement of poverty among the countries that appear in the last Human Development Report, using the variables that conform the Human Development Index.
    Keywords: welfare poverty; multidimensional poverty; human development; social evaluation function
    JEL: I32 O15
    Date: 2022
  22. By: Chistov, Valery; Tanwar, Sunita; Yadav, C.S.
    Abstract: This chapter is dedicated to the concept of Open Eco-innovation - an emerging form of cooperation for sustainable development, particularly for environmental sustainability. Our society currently faces a number of environmental challenges that cannot be solved individually and require a collaborative approach. One of the ways to harness the power of collaboration and access the external resources to foster internal eco-innovation capabilities is Open Eco-innovation. This chapter gives an overview of the quickly arising concept, the historical perspective, and the current state of the research. In addition, it draws to the literature on stakeholder theory, industrial symbiosis, and knowledge management to give a theoretical context for this emerging phenomenon. Our research shows that OEI is a critical tool to foster eco-innovation in organizations and sustainable development in our society. Nevertheless, more profound research is needed to prove empirically the viability of the concept and explore its real-life application in the industry.
    Date: 2021–11–30
  23. By: Axelsson, Tobias (Department of Economic History, Lund University); Martins, Igor (Department of Economic History, Lund University)
    Abstract: Development economics has long focused on growth patterns to explain countries’ ability to catch up and forge ahead. We argue, however, that resilience to economic shrinking matters more. Using the examples of Brazil and Indonesia, we propose that a framework consisting of social capabilities – namely structural transformation, autonomy, and inclusion – can explain why Indonesia is more resilient to economic shrinking than Brazil and why the country is more likely to be successful in its catching-up process.
    Keywords: economic shrinking; income convergence; natural states; social capabilities; Latin America; Asia
    JEL: N10 O20 O43
    Date: 2022–01–19
  24. By: Samuel Jaramillo
    Abstract: Uno de los rasgos característicos de las ciudades latinoamericanas consiste en los agudos contrastes que muestran tanto en lo físico como en lo social y económico. Distintas tradiciones teóricas se disputan en la región la interpretación del origen y de las repercusiones de este fenómeno, lo que ha alimentado un largo y rico debate en los estudios urbanos, económicos y sociales por casi medio siglo. Este volumen reúne cuatro ensayos de Samuel Jaramillo González, uno de los investigadores marxistas más destacados sobre la urbanización en el subcontinente. En el marco de la tradición marxista, plantea un esquema de interpretación que busca superar el dualismo positivista, al tiempo que da cuenta de las heterogeneidades y los entrelazamientos de sus componentes. Esto está planteado de una manera novedosa en tanto establece una articulación con las versiones actuales de la teoría marxista del valor trabajo abstracto, lo que amplía de manera muy auspiciosa las interpretaciones sobre el tema y multiplica las propuestas de acción.
    Keywords: Heterogeneidad, dualismo
    Date: 2021–09–07

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