Different Levels Of Economic Development Research Articles

CORRELATION ANALYSIS OF THE INTERDEPENDENCE OF ECONOMY'S INNOVATION AND CREATIVITY INDICES

Creativity and the generation of innovative solutions are means of solving the problems of slow economic development and resistance to instability that have been observed in recent years. The key role of creativity of individuals and groups of workers as a defining feature of modern economic life is increasingly recognised. There is a consensus that people, as a source of creativity, are now a critical resource of the new era. In the new model of economic development, creativity, knowledge and free access to information are seen as powerful drivers of development and catalysts of globalisation. The subject of the research is to study the relationship between innovation and creativity in the economic sphere. In particular, the article examines how the creativity of various economic subjects affects the level of innovative indicators, which synthetically reflect the possibilities of achieving the goals of innovative development. The research methodology includes the use of global reports on innovation and creativity indices, as well as scientific sources on this topic. The study uses the methods of critical analysis of scientific papers and international rankings, comparison and correlation of interdependent indicators. The purpose of the research is to assess the relationship between creativity and the level of innovative indicators, which synthetically show the possibilities of achieving the goals of innovative development. Creativity of business entities and mechanisms for generating innovative solutions are determining factors of success of modern post-industrial societies. In most developed countries, long-term economic growth is supported by innovation and creativity of various economic entities. To create the research algorithm, the authors defined the chain of concepts "sustainable development – innovation – creativity". To assess and analyse creativity, the study uses methodological tools that can be applied in global and local contexts. The most well-known indices are the Global Innovation Index (GII), the Global Creativity Index (GCI), the City Creativity Index (CCI), and the Hong Kong Creativity Index (HKCI). The general correlation coefficients between the global innovation index and the creativity indices of some countries have been calculated. According to the results of the calculations, the correlation coefficients of creativity and innovation are very positive. They are closely related and belong to the group of significantly correlated indicators. This means that there is a very high correlation between innovation and creativity in the economies studied. Conclusions. The positive correlation between innovation and creativity indices confirms, in general and in specific terms, a close relationship between innovation and creativity in the economies of different countries. This may indicate that countries or regions with a higher level of economic development have higher rates of creativity and vice versa. The research demonstrates the importance of innovation for the development of creativity in the economy. Understanding this interaction can serve as a basis for designing strategies and policies aimed at promoting innovative development and the growth of creative potential. The economies of Poland, Bulgaria and Ukraine, which were studied in detail, are not innovative enough. The countries studied represent different levels of economic development and are in the phase of post-industrial development, which requires effective innovation policies and measures to support creativity. In order to increase the level of innovation and creativity, it is necessary to involve national governments and organisations (especially the European Union) that can contribute to this. The conclusions point to the need to develop comprehensive approaches to support innovation and creativity in the economies of the countries studied. This may include not only effective strategies to stimulate research and development, but also policies aimed at the cultural environment, education and other areas.

ASSESSING THE IMPACT OF CORRUPTION ON INCOME INEQUALITY

This article is devoted to the study of the impact of corruption on income distribution. The study reveals statistically significant associations between the level of corruption and income inequality in Kazakhstan by applying least squares linear regression models. The paper uses the Corruption Perception Index as a measure of corruption and the Gini Index as a measure of income inequality. The paper also analyzes the impact of corruption on income inequality in other countries. This made it possible to determine the specifics of such an impact in countries with different levels of economic development. The results of the study showed that a decrease in the level of corruption, expressed as an improvement in the Corruption Perception Index, is associated with a decrease in income inequality, expressed as the Gini Index. The study also found that population growth has high statistical significance and is associated with a significant reduction in the level of social inequality in Kazakhstan. This confirms that population growth is predominantly observed among the less well-off strata of society, which leads to an increase in the Gini coefficient.

A Model for Describing the Management Processes in the Scientific Sector. Verification

The model of management in the scientific sector presented in the previous article, as well as some alternative models applied to the organization of science management are used to interpret various statistical data. The article also considers intersectoral comparisons of science financing in countries of different levels of economic development, including the costs of basic research. It is shown that the correlation between science costs and gross domestic product (GDP) is 32.9% in more than 120 countries of the world and GDP per capita is 50.9%. They are not statistically significant. On average, the share of basic study costs in domestic research and development expenses does not depend on the level of wealth of countries. This allows us to conclude in favor of a mutually consistent management model in the scientific sector. The author analyzes the dynamics of the number of researchers and small enterprises in the sector of science and scientific services, as well as the dynamics of the number of academic employees in the sectors of science in the 1990s. It is demonstrated that the decrease in their number mainly occurred in the applied sectors and to a lesser extent in the fundamental research sector. These data are described more fully by the proposed mutually consistent model of science than by the alternative models. Possible adjustments in the organization of the scientific sector management system are examined, including in terms of changes in input impacts on the science sector, output indicators characterizing its effectiveness, as well as changes in the organization of the scientific sector and management bodies, which follow from the considered mutually agreed management model in this sector of the economy.

Policy Tourism and Economic Collaboration Among Local Governments: A Nonparametric Matching Model

Policy tourism is an important, widespread, but understudied aspect of the networking efforts of public managers. Few studies have investigated how the official and purposeful interactions between public managers in the context of policy tourism affect collaboration. To fill this gap, this article aims to explore the question: To what extent does policy tourism channel economic collaboration? We argue that leaders’ visit paths provide a direct channel for collaboration through information exchange, trust building, and integration of regional policies, but the consequences vary between jurisdictions at different levels of economic development. We adopt a newly developed nonparametric matching method to estimate the marginal average treatment effects of policy tourism on interprovincial trade flows in China from 2000 to 2013. Results demonstrate that policy tourism channels interprovincial trade flow significantly and that the impacts decrease over time. Also, policy tourism affects interprovincial trade flow more significantly when initiated by less-developed jurisdictions.

Impact of climate risk on financial stability: Cross-country evidence

There is a growing awareness that climate change is a new source of risk to the financial system, but cross-country evidence on the impact of climate risk on financial stability is lacking. This study empirically investigates the impact of climate risk on financial stability using panel data from 2007 to 2019 in 53 countries. The findings of this study reveal that climate risk negatively affects financial stability, and this adverse impact will show differences due to the different levels of economic development, financial development, and competition among countries. Furthermore, macroprudential policies have effectively maintained the financial stability of countries affected by climate risk. However, the macroprudential policies imposed on borrowers are different from balance-based and buffer-based macroprudential tools. In addition, good national governance quality can contain the impact of climate risk on financial stability. After suffering from climate risk, strengthening political stability, improving government efficiency, supervision, and legal system, strictly controlling corruption and improving the right to speak and accountability are conducive to the country's maintenance of financial stability to varying degrees. This study not only enriches the existing research in the field of climate financial risk, but also provides a reference for government departments to reduce the impact of climate risk and maintain financial stability.

Financial openness and energy structure transformation

Energy structure transformation is the only way for China to achieve the “dual carbon” goal, and one of the difficulties faced by energy transformation is financing. In the context of China’s steadily promoting the high-level opening-up of financial industry, this paper uses the panel data of China’s provincial level from 2010 to 2019 to systematically examine the impact of financial opening-up on the transformation of energy structure. The results show that: 1) Financial openness has a significant positive impact on the energy structure transition; 2) In different stages of energy structure transformation, as the main driving force in the initial stage of energy structure transformation is the government’s policy support, with the continuous maturity of energy structure transformation, the impact of financial openness on energy structure transformation gradually increases; 3) With different levels of economic development, the driving effect of financial openness is also different. The lower the level of economic development is, the stronger the driving effect of financial openness on energy structure transformation is due to the lack of financing channels. This paper provides a theoretical basis for China’s energy structure transformation, and also provides rich policy implications for promoting China’s financial industry to open up at a high level.

ИССЛЕДОВАНИЕ ОСНОВНЫХ ПРИНЦИПОВ ФИНАНСОВОГО ПРАВА

The basic principles of financial law are fundamental. They embody the essence and basic spirit of financial law and dominate this system. They are followed when regulating financial relations. The basic principles of financial law are not static. In different countries or at different historical stages, due to different levels of economic development and financial policy objectives, the basic principles of financial law are also different. The article is intended to summarize and analyze the fundamentals of the current financial legislation of our country from such angles: legislation, financial law, self-control.

Why are some countries rich and others poor? development and validation of the attributions for Cross-Country Inequality Scale (ACIS).

Understanding lay theories on the causes of economic inequality is the first step to comprehending why people tolerate, justify, or react against it. Accordingly, this paper aims to develop and validate with two cross-sectional studies the Attributions for Cross-Country Inequality Scale (ACIS), which assesses how people explain cross-country economic inequality-namely, the uneven distribution of income and wealth between poor and rich countries. After selecting and adapting items from existing scales of attributions for poverty and wealth, in Study 1, we tested the factorial structure of this initial pool of items in three countries with different levels of economic development and inequality, namely, Italy (n = 246), the UK (n = 248), and South Africa (n = 228). Three causal dimensions emerged from the Exploratory Factor Analysis: "rich countries" (blaming the systematic advantage of and exploitation by rich countries), "poor countries" (blaming the dispositional inadequacy and faults of poor countries), and "fate" (blaming destiny and luck). The retained items were administered in Study 2 to three new samples from Italy (n = 239), the UK (n = 249), and South Africa (n = 248). Confirmatory Factor Analysis (CFA) corroborated the factorial structure of the ACIS, and Multi-Group CFA supported configural and metric invariances of the scale across countries. In addition, we show internal consistency and construct validity of the scale: the scale correlates with relevant constructs (e.g., beliefs about cross-country inequality and ideological orientation) and attitudes toward relevant policies related to international redistribution and migration. Overall, the scale is a valid instrument to assess causal attribution for cross-national inequality and is reliable across countries. By focusing on resource distribution from an international perspective, this scale will allow researchers to broaden the discussion on economic inequality to a global level.

THE INSTITUTIONAL ISSUES OF COOPERATION IN BUILDING A GREEN ECONOMY IN CAUCASIAN REGION

The article tries to find challenges and opportunities for regional cooperation in the green economy by the example of Armenia, Georgia, and Azerbaijan. The green economy and regional cooperation are intertwined, offering pathways to sustainable development and environmental protection. By leveraging regional strengths and fostering collaborative approaches, Armenia, Georgia, and Azerbaijan can accelerate their transition to a green economy, benefiting both the environment and their populations. Of course, on the way to building a green economy, Armenia, Georgia, and Azerbaijan face some important challenges, and considerations like differences in economic development levels, political systems, and priorities among regional partners can hinder cooperation. Additionally, there are challenges related to financing green projects, technology transfer, and capacity building. Despite these challenges, there are significant opportunities for regions to collaborate on green innovation, create green jobs, and improve environmental sustainability. Regional cooperation can also enhance resilience to climate change and other environmental shocks. Moreover, the market cooperation, and international relationship between Armenia, Georgia, and Azerbaijan green economies products themselves, can contain technology and knowledge transfer. Therefore one of the best ways to promote innovation in an industry (Armenia, Azerbaijan, Georgia), to have a Green Economy is to “improve its’ purchased from other industries.”

Trying to buy more sustainable products: Intentions of young consumers

Young adults play a pivotal role in environmental preservation and the future of the planet, but little is known about the predictors of their attitudes and intentions to purchase more sustainable products. Building on the theory of trying (TT) and the theory of planned behavior (TPB), this study addresses the research gap and examines how young consumers seek to conserve the environment by purchasing more sustainable products. The present study tests the conceptual model using multi-group structural equation modeling on samples of young adults from Western, Eastern, and Southeastern Europe with different levels of economic development, sustainable policies, and consumer attitudes toward sustainability. The results show that the predictors proposed by the TT explain the attitudes and intentions to buy eco-labeled products better than the predictors from the TPB and that past behavior plays an important role in this process. This study has both theoretical and practical implications for various stakeholders, including managers, policy makers, consumers, and stakeholder representatives.

Evaluation of the economic development of European Union countries

In the European Union (EU), as a global economic community, there are countries with very different levels of economic development. Therefore, it takes place unevenly – some countries develop intensively, but with significant changes in it, others – stably, without significant changes, but not intensively, etc. In such a situation, it is important to determine adequately the current state of economic development. It is an integral quantity that combines both development changes and intensity. These two components of development form two of its partial indicators. Combined into one size, they comprehensively reflect the current situation of the country’s economic development. Development refers to a process, so it must be assessed not on the basis of the state at the end of the period under consideration, but on the whole of this period. The presentation of development in the sense of recent years does not reflect the overall development process, based on the economic development of countries 2018–2022. Their ranks are determined by the results of the comprehensive assessment. Since they do not adequately reflect the current situation, the countries were combined into homogeneous groups, where countries with close values of the economic development indicator were located. This allows to highlight the economic development trends of EU countries.

STRATEGIES OF MACRO-REGIONAL INTEGRATION ASSOCIATIONS ON THE EXAMPLE OF ASEAN

The article is devoted to the analysis of the integration policy of the ASEAN countries. ASEAN includes countries with very different levels of economic development, population, and area, but this integration association is successful and plays an important role in the economic and political spheres in the Southeast Asian region. The article examines the ASEAN approach to regional integration, which is characterized by a “soft character”, in contrast to the European and North American approaches. The main stages of the development of the studied union and the circumstances that prevented the economic integration of the participating countries at the initial stage were analyzed. The main principles of ASEAN work, which are enshrined in the Bangkok Declaration of 1967 and the ASEAN Charter of 2007, are defined. The main directions and mechanisms of economic integration of countries are analyzed, namely: the agreement on the formation of a preferential trade zone, the agreement on the creation of a free trade area (AFTA), the framework agreement on the ASEAN investment zone (AIA), industrial cooperation schemes (AICO), the ASEAN framework agreement with services (AFAS). Also, the article provides an assessment of the main macroeconomic indicators of the participating countries and the union as a whole: GDP volumes in dynamics, the structure and dynamics of trade relations, the commodity and geographical structure of the union’s export-import operations. Problematic issues of the ASEAN integration association have been identified. The current state of cooperation between Ukraine and ASEAN was analyzed, including the volume of export-import operations in terms of the product structure, and prospects for the expansion of economic cooperation were also established. The paper draws conclusions about the success of the ASEAN development strategy and suggests ways to develop cooperation between ASEAN and Ukraine.

The Impact of Economic Development on Environment and Local Redisdents Living Standard in Beijing and Harbin

China experienced rapid economic growth in the past few years. Governments and citizens in developing countries are concerning about the environmental issues and peoples living standard in developing countries. Different areas respond differently to the impact of growth in the entire economy. The close relationship between economic development and environment and peoples living quality can be explored from multiple perspectives. This paper uses data from cities of mainland China to investigate the impact of different levels of economic development by comparing various economic and environmental factors. Factors such as gross domestic product, education availability and employment rate are included to consider the economic development of Beijing and Harbin in China. In this case, environment and living standard are represented by PM2.5 level, public transportation provision, life expectancy, as well as urban green area. Majority of the gaps in the data sets are the result of inequality in their economic growth. Problems of unequal distribution of wealth and geographical locations can be explained through the results from this topic.

The role of climate-adaptive technological innovation in promoting agriculture carbon efficiency: impact and heterogeneity in economic development.

Achieving global climate change mitigation targets requires low-carbon production in agriculture. In such an endeavor, a new classification of climate-adaptive technology is defined to affect agriculture towards the low-carbon direction, but such an impact has seldom been empirically tested in the literature. In this paper, we investigate the impact of climate-adaptive technological innovation on agricultural carbon efficiency, a proxy for low-carbon agriculture. We use a stochastic directional distance function framework and a cross-country dataset covering 38 OECD countries. Additionally, we test the heterogeneous impact, considering that regional economic development is a crucial condition for deploying advanced technologies. The findings show that climate-adaptive technological innovation can promote carbon efficiency in agriculture, and this aggregate effect hides significant heterogeneity at different levels of economic development. The higher the economic development level is, the better climate-adaptive technological innovation contributes to improving agricultural carbon efficiency. Then, related policy implications are set forth.

New Energy Technology Innovation and Industry Carbon Emission Reduction Based on the Perspective of Unbalanced Regional Economic Development

Innovation in new energy technologies is a key driver in China’s efforts to achieve its environmental goals. However, the ability of different regions to develop and utilize new energy technologies may depend on their level of economic development. Based on a two-way fixed-effects panel data model, this paper empirically analyses the industry carbon emission reduction effect of new energy technology innovation and its heterogeneous performance at different stages of economic development, using data from 30 provinces and cities in China from 2000 to 2019. The results show that new energy technology innovation generally promotes CO2 emissions in China. The specific effects are closely related to the characteristics of the industry and the stage of economic development. At the same time, the implementation of environmental regulations will inhibit this positive effect, while the adjustment of the industrial structure may promote this positive effect. This paper discovers the mechanism of heterogeneity in new energy technology innovation among different provinces with different levels of economic development. This finding helps to fully assess the carbon emission reduction capacity and potential of different provinces and facilitates the rational disaggregation and formulation of climate policy goals among regions.

Non-homogeneity in the efficiency evaluation of health systems

BackgroundAn international comparison of health system performance is a popular tool of health policy analysis. However, the efficiency evaluation of health systems is a practical example of an international comparison in which non-homogeneity is expected. The objective of this paper is to evaluate the efficiency of health systems by models in which a degree of non-homogeneity among countries is considered.MethodsWe study the problem of non-homogeneity of health systems in the theoretical framework of the data envelopment analysis (DEA), which is a popular method of efficiency evaluation with hundreds of applications from various fields. DEA assume the homogeneity of production units and the homogeneity of the environment in which the production units operate. Hence, we compiled a summary of 14 recommendations on how to deal with the non-homogeneity in the DEA models. The analysed sample includes 38 OECD member countries. The data are from the year 2019.ResultsAs an example, we evaluated the health system efficiency of the Czech Republic. We used the DEA models with the neighbourhood measure of distance and the constraint limiting the comparison of countries with different levels of economic development. The health system inputs were the numbers of physicians, nurses, and hospital beds. In the production of the intermediate outputs (doctor consultations, inpatient care discharges), the Czech Republic should look at Poland, Slovakia and Slovenia. In the production of health outcomes (life expectancy), the peer countries are France, Italy and Switzerland.ConclusionsThe results of the DEA analysis are only indicative because no single analytical method can determine whether a health system is better or worse than others. We need to combine different methods, and DEA is one of them. We consider DEA as an exploratory method, not a method providing definitive answers.

COMMUNICATION OF THE CENTRAL BANK AS A DETERMINANT OF THE CREDIBILITY AND EFFECTIVENESS OF THE MONETARY POLICY ON THE EXAMPLE OF THE EUROPEAN CENTRAL BANK

The aim of the undertaken research is an attempt to explain, on theoretical and empirical grounds, the interdependence between central bank communication, its transparency credibility and,consequently, the effectiveness of monetary policy pursued by central banks. The study used research methods based on the literature analysis on the subject in the field of banking and finance, as well as statistical and econometric methods (Granger causality analysis and the generalised linear model – GLM). Literature studies are aimed at answering the question of what is the relationship between the transparency, credibility of the central bank and the effectiveness of monetary policy in theoretical terms. However, the empirical research studies aim to confirm the hypothesis (H0) or reject the hypothesis (H1) about the causal relationships between the variables mentioned. Empirical analyses were conducted on the example of the European Central Bank, which, from the point of view of its monetary policy, is characterised by relatively high efficiency, relatively effectively stabilising inflation in the monetary union. All statistics used in the study were taken from databases of the International Monetary Fund (IMF World Economic Outlook), the European Union statistical office (Eurostat) and the Organisation for Economic Cooperation and Development (OECD) (OECD Data). The analysis covers the period from 2010 to 2022 based on monthly data. The results of the research confirmed the existence of the null hypothesis (i.e., the significant impact of communication, transparency and credibility of the European Central Bank on the effectiveness of monetary policy in the Euro area). The results of the conducted research may be a starting point for further, more in-depth research on the relationship between communication, transparency, credibility and effectiveness of central banks in countries with different levels of economic development.

Unsolicited Proposals in Public-Private Partnerships: a Conceptual View

Introduction. A well-developed infrastructure is key to the success of any business or country. It stimulates economic development, cost reduction, mobility and access to basic services. In order to speed up the development of infrastructure, governments around the world have turned to a tool such as the Public Private Partnership (PPP). PPPs can be initiated either by a public party, which involves competitive bidding (solicited proposals), or by a private investor, in which case the mechanism is called unsolicited proposals (USP). This article attempts to conceptualise the validity of the practical implementation of USP in PPPs. It focuses on identifying the motives of the parties, the organisational mechanisms used, and the benefits and limitations of USP. The study takes into account existing world practice and data from peer-reviewed scientific journals.Methods. The study is based on a literature review of peer-reviewed scientific articles indexed in citation databases such as Scopus, Web of Science and eLibrary.Ru. In addition, data from open sources such as the Rosinfra reports and the World Bank Group’s “Private Participation in Infrastructure” database have been used.Results. The analysis showed that the results of USP are associated with (1) a number of conflicting motives of public and private parties, (2) the specificities of the organisational approach, and (3) a possible set of positive or negative outcomes. This explains, in our view, the uneven use of USP by groups of countries with different levels of economic development. As a result, we propose the conceptual scheme of the use of USP in PPPs.Discussion. The results are in line with the data of other researchers and point to the potential and prospects for further use of USP in PPPs. Further research will be devoted to collecting and processing statistical data on the results of UPS in a number of countries. This will allow a more rational approach to the development of organisational and management mechanisms for the implementation of PPP projects based on USP. This will ensure maximum socio-economic impact.

Optimal deployment of energy services for economic upliftment of low-income communities: A South African case study

Low-income communities face a causality dilemma: A lack of energy services hampers income growth and insufficient income hampers energy service provision. Interventions delivering cost-effective energy services can address this dilemma, triggering a virtuous cycle of economic upliftment. While several studies have investigated cost-effective energy supply to low-income communities, a gap exists regarding holistic optimization of energy service deployment at different levels of economic development. Hence, a novel energy system model of a South African village is presented to optimize deployment and hourly dispatch of energy supply and energy services to recover time lost to poverty-related activities (e.g., gathering wood and water). Results showed that an optimized technology rollout can save each person over 1500 productive hours per year at an average cost below 0.2 $/hour. The model also identified the optimal order of technology deployment for driving economic development. Interestingly, an electrical grid connection was of minor importance because local mini-grids could economically supply the modest power demands of lighting, refrigeration, water pumping, and cleaning, while energy-intensive cooking and water heating can be economically performed using fuels and solar heaters. Detailed studies of individual low-income communities are recommended to outline optimal technology deployment strategies and reveal the low costs involved.

Based on GSADF model - To study the impact of surging cross-border capital flows and their internal structure on economic growth

This paper measures surges using the Generalized Supremum Augmented Dickey-Fuller (GSADF) model based on capital flows data for 64 economies from 2003:Q1 to 2020:Q4. Then, this paper examines the impact of surges and the internal structure (abnormal liability flows and abnormal asset flows) on economic growth in the recipient economy, and further investigate the heterogeneity among economies with different levels of economic development. This paper finds that surges can positively contribute to economic growth in the recipient economy. In terms of the internal structure of surges, overall, abnormal liability flows have a significant positive effect on economic growth, while abnormal asset flows have no significant effect. Emerging economies perform in line with the overall, while economic growth in developed economies is positively boosted by both abnormal liability flows and abnormal asset flows together. Our research has important reference value for China to prevent risks of surges and their inherent structural changes.