Cross-country Level Research Articles

An approach to develop a collaboration platform for tool making industry

Critical point of the tool industry is data management considering that all applications are mostly based on the industrial data processing as well as the business process. Nowadays electronic collaboration platforms are unique environments that support synchronous and asynchronous communication through a variety of devices and channels within the toolmakers facilities This paper gives a brief overview of an approach to develop a collaboration platform for tool making industry focusing the goal to improve the collaboration along the entire life-cycle of both the tool and the customer’s product on a cross-company and cross-country level of relationship.

Stochastic semi-nonparametric frontier approach for tax administration efficiency measure: Evidence from a cross-country study

Under globalisation, countries all over the world have been impacted differently by both their macroeconomic conditions and other random factors particular to them. As such, governments and policymakers require a comparison of tax systems across different countries and, consequently, a study on the performance of Tax administration (TA) at a cross-country level would be a necessary reference for governments when designing tax policy. This paper seeks to measure the performance of TA across 44 countries, while considering the presence of contextual variables, using the recently developed and advanced frontier estimators, such as the semi-nonparametric StoNED (Stochastic Nonparametric Envelopment of Data) approach by Johnson and Kuosmanen (2011, 2012) and the conditional order-m (Daraio and Simar, 2005, 2007) approach, for two periods between 2008–2011 and 2012–2015. The results show that Tax agencies in these countries could have increased tax revenue, on average, by about 58.7% and 34.2% for the two periods, respectively. Equivalently, $7,737 and $4,667 PPP (purchasing power parity) per capita of tax revenue could have been increased for the two periods, respectively. It is also suggested, in general, the latter period (2012–2015) shows a higher level of efficiency than the former period (2008–2011), justified by both estimators.

Joint Prediction of Turning Points in Credit and Business Cycles: Cross-Country Analysis

This paper provides a joint analysis of business and credit cycles with a focus on unobservable factors affecting both cycles, at the cross-country level. Using quarterly data for 19 developed countries and Russia for the period from 1994 to 2018, we build a system of two dynamic probit models, which includes a cross-correlation between the errors of the equations governing the probability of a recession and the probability of credit crisis. The results show that, first, our system allows us to correctly predict 91% of episodes of joint realization of macroeconomic and credit crises and 89% of non-crisis periods in the training sample, and 92% and 95% respectively in the testing sample. Second, switching from two independent regression models to a system of correlated equations significantly (by 16 percent- age points) increases the share of correctly predicted crisis episodes while only slightly (by 7 percentage points) reducing the proportion of correctly predicted non-crisis episodes. Third, our system can predict an approaching crisis earlier, by 1–4 quarters, in comparison with similar single models. Our results complement the literature on forecasting recessions and credit crises. Fourth, it is revealed that the models which have been constructed on developed countries allow one to predict crisis events for Russia. The model we have constructed correctly predicts 100% of joint crisis episodes and 92% of joint non-crisis episodes in the training sample as well as 86% of joint crisis and 90% of joint non-crisis episodes in the testing sample for Russia.

Immigration Demand and the Boomerang of Deportation Policies

What causes the demand for migration into the United States? We argue for, and demonstrate the existence of, a vicious cycle of US immigration policy and migration between the United States and countries from Latin America and the Caribbean. Our argument is simple: deportation of convicts from the United States leads to violence in the deportees’ home country which, in turn, increases the demand for that country’s natives to seek entry into the United States. We test this argument utilizing a nested research design based on cross-country panel data for Latin America and the Caribbean as well as subnational administrative and individual survey data from the case of El Salvador. At the cross-country level, we first estimate the effect of deportations on home country violence and find a strong positive effect of the lagged inflow of convicts on violence, but not for the inflow of non-convicts. In the second step, we show that the predicted level of home country violence helps explain the demand for entry into the United States. Municipal level and survey data from El Salvador complement the cross-country study and illustrate the export of gangs from the United States as one specific mechanism of how the deportation boomerang works. In the first step regression, we predict the contagion of gangs along migration corridors following large-scale deportations to El Salvador. In the second step regression, we use survey data to explain migration intentions as well as high rates of actual migration as a result of gang-related violence in El Salvador.

The Comovement of Exchange Rates and Stock Markets in Central and Eastern Europe

This paper analyses the link between exchange rates and stock markets in four Central and Eastern European countries. We simultaneously explore the comovements of foreign exchange markets and stock markets at the cross-country level and the link between these two markets within each country while employing a Dynamic Conditional Correlation Mixed Data Sampling (DCC-MIDAS) model. Such an approach to financial markets conveys a much more visible picture of the existing patterns of financial integration between these markets that would otherwise be neglected. The estimates reveal significant differences between the patterns of correlation in our sample countries. First, the paper finds a quite low degree of convergence between foreign exchange markets, with rising correlations during some of the crisis episodes. Second, both the 2004 European Union enlargement and the European sovereign debt crisis underpin the stock market comovements in the Central and Eastern European countries. Third, the correlations between the exchange rate returns and stock markets rise mostly during the European sovereign debt crisis and to a lesser extent during the global financial crisis, revealing signs of contagion and lower portfolio diversification opportunities. These results are of utmost relevance for the process of financial integration and they also have important implications for policy makers, risk management, and investors.

Entrepreneurship and genetics: New Evidence

This paper seeks to better understand the differences in entrepreneurship rates across administrative regions and countries. Using several measures of entrepeneurship, as well as regional and panel data of countries, it finds that lactase persistence has a significant impact on entrepreneurship. Moreover, it shows that cross-country level variation in the frequency of lactase persistence found in the human body more than 500 years ago explains these observed differences across countries and regions today. Specifically, it finds that a one standard deviation increase in lactase persistence decreases regional self-employment by 7%. In addition, the estimates show that a one standard deviation increase in lactase persistence decreases total early-stage entrepreneurial activity (TEA) and established business ownership (EBO) by 4% and 1.58%, respectively. These findings remain robust to the introduction of the econometric method to deal with the mismeasurement of our historical variable, lactase persistence, as well as the introduction of several types of control variables such as per-capita GDP growth, education, culture, population density, urbanization, genetic diversity, institutions, geography, disease and banking structure.

Will Blockchain Bring an End to Corruption?

Blockchain technology is an electronic ledger of digital records that is distributed over a network of computers rather than located on single or multiple servers. As the technology is by itself transparent and secure even without a trusted third party involvement, many applications are being developed as a means of eliminating corruption around the world. This article examines how the blockchain technology could be used to curb corruption and take integrity to higher standards at a firm level, within-country level and cross-country level. Possible risks and challenges related to the technology were identified and found that without considering the data governance and security issues, the blockchain technology may not always lead to a socio-economic benefit.

Higher education in the EU countries: comparative geographical analysis

The article analyzes indicators of higher education in the European Union: the number of higher education institutions; the number of university students; changes in the number of faculty members, age structure; higher education expenses; cost of training one student. A similar study was conducted by the author in 2006. The article provides a comparative analysis of indicators for 2001-2016. The analysis uses data from EUROSTAT which were interpreted at the cross-country level.

Credit derivatives disclosure in banks’ risk reporting: Empirical evidence from four large European banks

This paper aims to analyze the derivatives disclosure in banks’ annual risk reports. In this paper, the author uses content analysis to examine the qualitative and quantitative profiles of the derivatives disclosure at a cross-country level, with particular reference to credit derivatives. The empirical research is conducted on a sample of large European banks. The paper also shows that there is room to improve various aspects of derivatives disclosure, and provides some useful insights for further research. The derivatives disclosure in banks’ annual risk reports has deep managerial, financial, regulatory and accounting implications at a firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive advantages in the banking industry and informational and allocative efficiency in the financial markets. Although the existence of substantial research on credit derivatives and financial statements in the literature, none have directly focused on credit derivatives disclosure at a cross-country level applying the content analysis based on an objective evaluation approach. It leaves a gap that the paper aims to overcome.

Populations with Higher Average Intelligence Are Healthier, but Do They Smoke Fewer Cigarettes?

Societies with high intelligence quotient (IQ) practice healthier lifestyles, which results in enhanced health status and higher life expectancy. This paper attempts to examine the impact of national average IQ on level of cigarette consumption at a cross-country level. Since smoking is detrimental for human health and causes about ten percent of the total number of deaths every year worldwide, this research is deemed important. Regression analysis with robust standard errors was employed to scrutinize the effect of national IQ on cigarette consumption. After controlling for demographic factors, IQ was found to have significantly positive associations with all measures of cigarette consumption. Unlike the control variables, the positive effect of IQ on smoking was found to be robust to spatial dependence. Nevertheless, the positive effect gradually reduced as the IQ level increased. The proposed explanation is that cigarette smoking is an evolutionarily novel activity that did not previously exist in human ancestral environments. Therefore, as the IQ level rises, societies initially are more likely to appreciate and adopt the novel behavior of smoking. In high-IQ societies, the positive relationship eventually weakens as people become more aware of the health hazards of smoking.

Does Good Governance Strengthen the Intelligence-Happiness Nexus?

A positive connection between intelligence (measured as IQ) and happiness at the country level has been described repeatedly. The present study treats IQ as an important source of human and social capital, and ultimately of happiness and life satisfaction. Considering that the public institutions are responsible to serve the needs of the majority, this study specifically examines the moderating effect of governance quality on the relationship between national average IQ and happiness at a cross-country level. The results of robust regression analysis revealed that national IQ was highly significant in raising the level of happiness. Furthermore, the interaction between IQ and governance quality contributed a positive and significant effect on happiness. The conclusion is that governance quality enhances the positive impact of intelligence on happiness. Good governance appears to create the conditions under which higher national IQ can be used towards achieving a higher level of well-being.

Mobilising evidence to improve nursing practice: A qualitative study of leadership roles and processes in four countries

BackgroundThe approach and style of leaders is known to be an important factor influencing the translation of research evidence into nursing practice. However, questions remain as to what types of roles are most effective and the specific mechanisms through which influence is achieved. ObjectivesThe aim of the study was to enhance understanding of the mechanisms by which key nursing roles lead the implementation of evidence-based practice across different care settings and countries and the contextual factors that influence them. DesignThe study employed a qualitative descriptive approach. SettingsData collection was undertaken in acute care and primary/community health care settings in Australia, Canada, England and Sweden. Participants55 individuals representing different levels of the nursing leadership structure (executive to frontline), roles (managers and facilitators), sectors (acute and primary/community) and countries. MethodsIndividual semi-structured interviews were conducted with all participants exploring their roles and experiences of leading evidence-based practice. Data were analysed through a process of qualitative content analysis. ResultsDifferent countries had varying structural arrangements and roles to support evidence-based nursing practice. At a cross-country level, three main themes were identified relating to different mechanisms for enacting evidence-based practice, contextual influences at a policy, organisational and service delivery level and challenges of leading evidence-based practice. ConclusionsNational policies around quality and performance shape priorities for evidence-based practice, which in turn influences the roles and mechanisms for implementation that are given prominence. There is a need to maintain a balance between the mechanisms of managing and monitoring performance and facilitating critical questioning and reflection in and on practice. This requires a careful blending of managerial and facilitative leadership. The findings have implications for theory, practice, education and research relating to implementation and evidence-based practice.

Religious discrimination and religious armed conflict in sub-Saharan Africa: an obvious relationship?

ABSTRACT Relative deprivation theory suggests that discrimination increases the risk of violence. While religious armed conflicts have been increasing in sub-Saharan Africa, effects of religious discrimination have rarely been investigated. Using the new Religion and State dataset and other sources, this contribution investigates this question in a two-level analysis. The analysis yields three main results. First, religious discrimination has been increasing over the last 15 years but in interregional comparison sub-Saharan Africa has a low level of discrimination. Second, at the cross-country level there is a significant correlation between religious discrimination and armed conflict over religious content. Third, looking closer at four pertinent country cases (the Comoros, the Gambia, Mali and Mauritania) reveals that discrimination is probably not a direct driver of religious conflicts. High levels of discrimination are embedded in problematic state-religion relations and existing cleavages become mobilised along religious lines through transnational influences and geography.

Adherence to chronic medication in older populations: application of a common protocol among three European cohorts.

PurposeThe purpose of this study was to evaluate and compare medication adherence to chronic therapies in older populations across different regions in Europe.MethodsThis explorative study applied a harmonized method of data extraction and analysis from pharmacy claims databases of three European countries to compare medication adherence at a cross-country level. Data were obtained for the period between January 1, 2010, and December 31, 2011. Patients (aged ≥65 years) who newly initiated to oral antidiabetics, antihyperlipidemics, or antiosteoporotics were identified and followed for over a 12-month period. Main outcome measures were medication adherence (medication possession ratio, [MPR]; implementation) and persistence on index treatment. All country-specific data sets were prepared by employing a common data input model. Outcome measures were calculated for each country and pooled using random effect models.ResultsIn total, 39,186 new users were analyzed. In pooled data from the three countries, suboptimal implementation (MPR <80%) was 52.45% (95% CI: 33.43–70.79) for antihy-perlipidemics, 61.35% (95% CI: 52.83–69.22) for antiosteoporotics, and 30.33% (95% CI: 25.53–35.60) for oral antidiabetics. Similarly, rates of non-persistence (discontinuation) were 55.63% (95% CI: 35.24–74.29) for antihyperlipidemics, 60.24% (95% CI: 45.35–73.46) for antiosteoporotics, and 46.80% (95% CI: 36.40–57.4) for oral antidiabetics.ConclusionMedication adherence was suboptimal with >50% of older people non-adherent to antihyperlipidemics and antiosteoporotics in the three European cohorts. However, the degree of variability in adherence rates among the three countries was high. A harmonized method of data extraction and analysis across health-related database in Europe is useful to compare medication-taking behavior at a cross-country level.

Assessing the Association between Late Career Working Time Reduction and Retirement Plans. A Cross-National Comparison Using the 2012 Labour Force Survey ad hoc Module

As public policies are focusing on retaining the ageing workforce, flexible working time arrangements in late career have gained visibility over the past decades. However, given the institutional nature of these arrangements, little is known about the extent to which older workers reduce working hours at a cross-country level. Using data from the 2012 Labour Force Survey ad hoc module, the article aims to provide estimates about the number of workers aged fifty-five to sixty-nine reducing working time in a move towards retirement (before and after the first old-age pension) and assessing, using a multilevel modelling, whether these arrangements play a role in explaining the decision to work beyond the pension age in thirty European countries. Descriptive results show important variations among countries and between genders. The multilevel model shows that the impact of working time reductions in late career varies from one country to another.

Does financial literacy improve financial inclusion? Cross country evidence

Abstract While financial inclusion is typically addressed by improving the financial infrastructure, we show that a higher degree of financial literacy also has a clear beneficial effect. We study this effect at the cross-country level, which allows us to consider institutional variation. Regarding “access to finance”, financial infrastructure and financial literacy are mainly substitutes. However, regarding the “use of financial services”, the effect of higher financial literacy strengthens the effect of more financial depth. The causal interpretation of these results is supported by IV-regressions. Moreover, the positive impact of financial literacy holds across income levels and several subgroups within countries.

The determinants of anti-money laundering compliance among the Financial Action Task Force (FATF) member states

PurposeThis paper aims to compute a measure for anti-money laundering/counter-financing of terrorism (AML/CFT) compliance and investigate its determinants.Design/methodology/approachUsing the Financial Action Task Force (FATF) recommendations and assigning weights to them, the study computes a measure for AML compliance. Further, the determinants of AML compliance were investigated using ordinary least squares (OLS) data of 155 countries between 2004 and 2016.FindingsThe findings suggest that AML compliance have slightly improved over the years. Further, the OLS regression results show that technology, regulatory quality, bank concentration, trade openness and financial intelligence center significantly determined and improved AML compliance.Practical implicationsFrom the findings, it is evident that countries that wish to improve the AML compliance should focus more on technology, regulatory quality, structure of the banking sector, size of the economy and institution of financial intelligence center so as to enhance AML compliance.Originality/valueTo the best of the author’s knowledge, this paper reveals a first AML/CFT compliance index that measures the cross-country level of AML/CFT compliance from the year 2004 to 2016. Subsequently, this paper adopted an OLS econometric model to identify the key determinants of AML/CFT compliance among member states of FATF.

PHP81 - Estimation of Supply Side Cost Effectiveness Threshold in Ukraine: Perspective Use in Health Care Decision-Making

Estimate supply side cost effectiveness threshold (CET) and develop recommendations to guide reimbursement decision-making in Ukraine. Literature review was conducted to identify methods and data sources required to estimate the supply side CET in Ukraine. Methods identified: empirical estimation of CET and evaluation of the effect of health care expenditure on mortality outcomes using cross country level data; analysis of the previous reimbursement decisions; estimates of CET for lower and middle income countries by Ochalek et al. (2015); revised WHO recommendation on setting the CET. The following data sources were used to estimate Ukraine specific CET: mortality rates provided by World Bank, empirical analysis of UK CET by Claxton et al. (2013), expected GDP per capita of USD 2,700 in year 2018. The estimates of Ukraine CET were benchmarked against CET estimates for Ukraine neighbouring countries and countries with similar level of economic development. The cost per QALY CET was estimated at 19%-66% of GDP or USD 513-1,782. The updated WHO recommendation on setting CET indicated that local data needs to be taken into account and that the 1-3 GDP per capita threshold should not be used as a rule of thumb, as this can potentially lead to a wrong reimbursement decision and forgone health. The local analysis of effects of health care expenditures on health gains can't be performed due to lack of detailed country level data in Ukraine. As of 2018 the results reported by Ochalek et al. (2015) is a sole source of CET data for Ukraine. Multi-criteria decision analysis frameworks have also been suggested by WHO. Ukraine should consider establishing a context-specific process for decision-making that is supported by legislation, has stakeholder buy-in and is consistent, fair and transparent.

A Dialogue between a Populist and an Economist

In this imaginary dialogue, a populist and an economist discuss the role of economic shocks to explain populism. A simple correlation between economic shocks and populism is weak. However, economic shocks can explain well the phenomenon of populism in countries with low pre-existent level of trust. This is confirmed both at the macro cross-country level and also by micro evidence obtained from surveys. Finally, this finding is consistent with the “ideational approach” in political science, which emphasizes how the populist narrative opposes the “corrupt elite” to the “virtuous people.”

Youth minimum wages and youth employment

This paper performs a cross-country level analysis on the impact of the level of specific youth minimum wages on the labor market performance of young individuals. We use information on the use and level of youth minimum wages, as compared to the level of adult minimum wages as well as to the median wage (i.e., the Kaitz index). We complement these data with variables on the employment, labor force participation, and unemployment rates of 5-year age interval categories—all derived from the official OECD database. We distinguish between countries without minimum wages, countries with uniform minimum wages for all age groups, and countries with separate youth and adult minimum wages. Our results indicate that the relative employment rates of young individuals below the age of 25—as compared to the older workers—in countries with youth minimum wages are close to those in countries without minimum wages at all. Turning to the smaller sample of countries with minimum wages, increases in the level of (youth) minimum wages exert a substantial negative impact on the employment rate for young individuals.JEL Classification: J21, J23, J31