Economic Performance Variables Research Articles

SMEs Needs Assessment and Innovation Survey in the Region of Gaziantep, Turkey

In recent years, the causes and effects of regional variations in economic performance and their link with innovation have attracted considerable attention by policy makers and various scholars. It is evident from the literature on regional competitiveness and innovation that the role of the firm has been seen as critical within the innovation system of a region. Therefore, this report seeks to cast some light on the innovation performance and characteristics of the firms operating in the Gaziantep province. The Turkish Statistical Institute (Turkstat) collects data related to innovation at the national level. According to 2013 data, 48.5 percent of all companies in Turkey (including large corporates) are innovative companies. Turkstat provides only aggregated data at the national level, which does not allow unveiling particular characteristics of the companies such as name of the company, its regional base, development stage, industry focus and number of employees. Hence, in order to probe beyond the Turkstat aggregated figures which are provided at the national level and to perform a meaningful analysis for companies based in the Gaziantep province, disaggregated data for Gaziantep based companies has been collected through an online survey. Using a relatively large set of data collected through the online survey, this report looks at both the characteristics and also the attitudes of local companies towards innovation, thus enabling the examination of several factors associated with innovation performance. More particularly, this research report has three objectives: • To provide a broader assessment of the RD • To assess the current understanding and attitude of Gaziantep SMEs towards innovation; • To enable the identification of suitable training and capacity building actions targeting local SMEs.

Macroeconomic performance, political trust and the Great Recession: A multilevel analysis of the effects of within‐country fluctuations in macroeconomic performance on political trust in 15 EU countries, 1999–2011

AbstractRecent cross‐national comparative studies have found no effect of countries’ macroeconomic performances on trust in national political institutions, once political explanations (most notably corruption) are taken into account. Although political trust is not determined by the comparison of national economic performance to other countries, it is argued in this article that it is affected by comparisons to their own past performance. In a multilevel, fixed effects analysis of Eurobarometer data (21 waves in 15 European Union Member States between 1999 and 2011) the extent to which within‐country variations in economic performance affect political trust longitudinally is tested. Three major conclusions are reached. First, within‐country, longitudinal changes in performance (growth, deficits, unemployment and inflation) affect political trust. Second, the impact of macroeconomic performance is stronger among the lower educated. Third, even in times of economic duress, budgetary deficits tend to undermine political trust.

Broadband adoption, digital divide, and the global economic competitiveness of Western Balkan countries

The existing variation in economic performance between countries is significantly affected by the level, diffusion, and use of different types of information and communication technology. In the last several years economic competitiveness increasingly depends on broadband availability and the adoption, use, and speed of this technology. Broadband access to the internet fosters economic growth and development and increases a country’s global competitiveness. This technology could have a big impact on the competitive advantage of Western Balkan countries because they currently experience a large digital divide, both within countries (between regions, urban and rural areas, different vulnerable groups, etc.) and with EU countries. The purpose of the paper is to analyse the current level and dynamics of the digital divide in Western Balkan countries using the Broadband Achievement Index (BAI), the Data Envelopment Analysis (DEA)-based model, the Global Competitiveness Index (GCI), the Corruption Perception Index (CPI), and cross-country methodology. This paper measures and compares Western Balkan countries’ current level of broadband adoption and their position on the evolutionary path towards closing the existing economic and digital gap with EU countries. Comparative analysis of calculated BAI data values, GCI, and CPI shows that Western Balkan countries belong to the ‘laggard’ group regarding their broadband achievement and global economic competitiveness. The values of the calculated BAI sub-indexes in this paper indicate the strong and weak sides of the corresponding aspects of broadband technology implementation and give directions for setting further priorities for political intervention, not only in the building of information society but also in the improvement of the economic competitiveness of Western Balkan countries.

Secondary analysis of two environmental practice studies. Do empirical variables represent expressed theoretical constructs?

Abstract Many research questions in studies on environmental practices have used variables with little regard as to whether they represent theoretical constructs. This validation is fundamental to testing and interpreting theories using variables. This study examines whether environmental disclosure, environmental performance, and economic performance are different constructs. It uses canonical correlation analysis technique, and reviews two published studies as case presentations. Analyzing the study by Al-Tuwaijri et al., the environmental disclosure variable is found to represent the disclosure construct, while the environmental performance and economic performance variables are found to represent two dimensions of the performance construct. In the Hasseldine et al. study, environmental performance is found to represent the performance construct. Results indicate that the two disclosure variables are uni-dimensional of the disclosure construct. These findings are supported by the main analysis and additional analysis undertaken for each study. This research demonstrates how the canonical correlation analysis technique can be used to test whether empirical variables represent expressed theoretical constructs before publishing findings. It also shows a unique way to review published studies to develop and analyze research questions not examined in the original work.

Time Punctuality and Economic Performance

This paper employs cross country regression analysis on an index of time punctuality to see whether or not an important cultural trait, time punctuality, influences economic development and other economic performance variables. The results are consistent with the idea that punctuality matters for economic development, and for country innovation, country competitiveness, and the effectiveness of a country’s government. Punctuality is statistically pertinent as an explanatory variable for country performance variables whether it is used singularly on its own in regressions, or in combination with the level of economic development.

Social networks and labor market inequality between ethnicities and races

AbstractThis paper analyzes the relationship between unexplained racial/ethnic wage differentials on the one hand and social network segregation, as measured by inbreeding homophily, on the other. Our analysis is based on both the US and Estonian surveys, supplemented with the Estonian telephone communication data. In the case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the US case we consider the regional variation in black--white differentials. Our analysis finds a strong relationship between the size of the wage differential and network segregation: Regions with more segregated social networks exhibit larger unexplained wage gaps.

Relationship among performance, carcass, and feed efficiency characteristics, and their ability to predict economic value in the feedlot1

A 4-yr study was conducted using 736 steers of known Angus, Simmental, or Simmental × Angus genetics to determine performance, carcass, and feed efficiency factors that explained variation in economic performance. Steers were pen fed and individual DMI was recorded using a GrowSafe automated feeding system (GrowSafe Systems Ltd., Airdrie, Alberta, Canada). Steers consumed a similar diet and received similar management each year. The objectives of this study were to: 1) determine current economic value of feed efficiency and 2) identify performance, carcass, and feed efficiency characteristics that predict: carcass value, profit, cost of gain, and feed costs. Economic data used were from 2011 values. Feed efficiency values investigated were: feed conversion ratio (FCR; feed to gain), residual feed intake (RFI), residual BW gain (RG), and residual intake and BW gain (RIG). Dependent variables were carcass value ($/steer), profit ($/steer), feed costs ($/steer • d(-1)), and cost of gain ($/kg). Independent variables were year, DMI, ADG, HCW, LM area, marbling, yield grade, dam breed, and sire breed. A 10% improvement in RG (P < 0.05) yielded the lowest cost of gain at $0.09/kg and highest carcass value at $17.92/steer. Carcass value increased (P < 0.05) as feed efficiency improved for FCR, RG, and RIG. Profit increased with a 10% improvement in feed efficiency (P < 0.05) with FCR at $34.65/steer, RG at $31.21/steer, RIG at $21.66/steer, and RFI at $11.47/steer. The carcass value prediction model explained 96% of the variation among carcasses and included HCW, marbling score, and yield grade. Average daily gain, marbling score, yield grade, DMI, HCW, and year born constituted 81% of the variation for prediction of profit. Eighty-five percent of the variation in cost of gain was explained by ADG, DMI, HCW, and year. Prediction equations were developed that excluded ADG and DMI, and included feed efficiency values. Using these equations, cost of gain was explained primarily by FCR (R(2) = 0.71). Seventy-three percent of profitability was explained, with 55% being accounted for by RG and marbling. These prediction equations represent the relative importance of factors contributing to economic success in feedlot cattle based on current prices.

Performance, return and risk of different dairy systems in Australia and New Zealand

Changes in the farm operating and policy environments and a need to remain profitable under a cost-price squeeze have contributed to dairy systems in Australia and New Zealand becoming more intensive and complex in recent decades. Farm systems in both countries are now diverse, varying from being based predominantly on pasture with little purchased supplements, to those dependent on high levels of feed supplements and even having zero grazing. Dairy farm performance (defined in this paper as production or technical performance), return (return on assets or profit) and risk (variation in economic performance over time), and intensity of dairy systems was examined using farm survey data, case studies and existing published studies. The level of single technical performance measures, such as milk production, feed conversion efficiency and pasture consumption, prevailing in a business are not guides to the operating profit and return on assets of a business. In addition, when survey data of farm performance was grouped by return on assets, few farms were in the top 25% in successive years. Farms that performed consistently well were characterised by good, but not extreme, technical performance in a range of key areas, which translated to favourable business return (return on asset and profit). The knowledge and skills of farm managers are critical, and means that many different dairy systems can perform well physically and financially and successfully meet farmer goals. The relation between risk and the intensity of dairy systems was also investigated. Options that intensified systems generally resulted in higher net wealth for the farm owner, but almost always at increased risk. The best system for any farmer to operate is one which best meets their multifaceted preferences and goals, regardless of system type.

National Culture and Economic Performance: A Cross-cultural Study

Abstract This paper examines the impact of national culture on variations in economic performance among the European Union countries. In order to explain differences in economic performance we have...

Social Networks and Labor Market Inequality between Ethnicities and Races

This paper analyzes the relationship between unexplained racial/ethnic wage differentials on the one hand and social network segregation, as measured by inbreeding homophily, on the other hand. Our analysis is based on both U.S. and Estonian surveys, supplemented with Estonian telephone communication data. In case of Estonia we consider the regional variation in economic performance of the Russian minority, and in the U.S. case we consider the regional variation in black-white differentials. Our analysis finds a strong relationship between the size of the differential and network segregation: regions with more segregated social networks exhibit larger unexplained wage gaps.

Examining variation in economic performance using fuzzy-sets

How to account for variation in economic performance across countries and periods? This paper proposes a new substantive and methodological approach. Substantively, we focus on variation in overall performance: the combination of growth, employment, and debt. We construct eight models using these variables and analyze countries’ fit to them. Methodologically, we employ fuzzy-set qualitative comparative analysis (fsQCA). The analysis of 19 OECD countries between 1975 and 2005 fails to support traditional hypotheses about partisanship, central bank independence, trade openness, and corporatism. Instead, different combinations of conditions are conducive to good performance and these differ across periods and countries.

Corporate performance implications of extended stakeholder management: New insights on mediation and moderation effects

This paper looks at the extent to which stakeholder pressure is related to the integration of management practices within the firm and at the link of integration with self-reported economic and environmental performance as an outcome variable. It specifically analyses possible mediation and moderation effects through multiple-group AMOS comparing subsamples. As concerns integration, a strong mediation effect is established. As far as country location is concerned, the results show a moderating effect on the paths of integration and internal stakeholder groups and on the paths of integration with, respectively, efficiency, image, risk (as economic performance variables) as well as emissions and inputs (as environmental performance variables). It also shows a negative moderator effect of age on the relationship between integration and inputs and that profitability has a positive moderator effect on the relationship between the pressure from public actors and integration.

Institutions and economic performance: A meta-regression analysis

This paper applies meta-regression analysis to the empirical literature that investigates the effect of institutions on economic performance. Although studies with growth-theoretic foundations do not yield robust evidence for an authentic empirical effect, we find more robust evidence of positive and large institutional effects on output levels. The partial correlations between institutional and economic performance variables are also influenced by model specification choices and, in particular, (non)treatment of the potential endogeneity of institutions. A corollary of such pronounced heterogeneities is that we cannot report a representative estimated effect size, although the evidence overwhelmingly suggests a positive influence of institutional quality on economic outcomes.

The Social Origins of Electoral Volatility in Africa

This article utilizes the statistical analysis of an original dataset of African legislative seat volatility levels and three case studies to demonstrate that the size and configuration of politically salient ethnic groups bear a strong relationship with patterns of legislative seat volatility in Africa. Legislative seat volatility is highest in countries where either no social group is large enough to form a majority on its own, or a majority group contains within itself a second smaller majority group; it is lowest in countries where one, and only one, group forms a majority. In contrast, most standard explanations for volatility, including variations in economic performance, democratic period of origin and democratic duration, do not appear relevant in the African context.

Housing Context and Social Transformation Strategies in Neighbourhood Regeneration in Western European Cities

According to the Western European city thesis, European cities have a unique institutional mix which helps to explain how social patterns come about. The most important elements of this mix are the interventionist state and the housing system legacy of non-private housing. While these two are vital, overall generalisations are tricky due to regional variations in economic performance, housing markets and local state capabilities. This paper explores the generalisations that can be made about the institutional context of direct interventions in the built environment and housing, i.e. neighbourhood regeneration, in Western European cities. It examines how national policy frameworks and housing market characteristics impinge upon on the adoption of social transformation strategies. Social transformation strategies, often adopted in neighbourhood regeneration, refer to the use of physical interventions to institute social change in deprived areas. Generally, there are two types of social transformation strategies: large-scale tenure restructuring and upgrading. A comparative analysis of four cases of regeneration shows that in Western European cities the opportunities and constraints of national policy framework and regional housing market characteristics help to explain the social transformation strategies adopted locally. Furthermore, it shows the thesis' value as an explanatory and analytical framework for Western Europe.

Port location for inshore fleets affects the sustainability of coastal source–sink resources: Implications for spatial management of metapopulations

This paper focuses on the consequences of a geographical differentiation in reproductive potential through a species range not being recognized in the management of a coastal fishery resource. A dynamic spatial model with age-structure and bioeconomic components was built to explore the potential effects of fishing port location on metapopulations with a source–sink structure. Management of this type of fishery using marine protected areas (MPA) with or without considering the location of source and sink components is also addressed. An array of unit areas for a multi-age semi-sedentary resource was fed with recruits generated by a Beverton–Holt spawner–recruit relationship driven by the adult biomass in a source area. This contributes recruits both to source areas, and adjacent sink areas which do not produce recruits. Recruits are allocated to unit areas in the array according to a negative binomial distribution, allowing age structures to build up in each. Exploitation is from one of two ports, either situated close to the source area or distant from it; it being assumed (as for inshore fleets) that distance traveled is a key variable. Effort exerted per unit area is therefore determined by dynamic site-specific profits. Because fishing costs increase with distance, the alternative port locations are predicted to have substantially different impacts on biological and economic performance variables when there are no spatial management measures in place. Closing half the source area to fishing mitigates substantially the effect of port location, and improves all performance variables regardless of port location. The greatest positive impacts of a closure occur where the main port harvesting the resource is the one nearest the source area being protected. When a spatial closure is applied, the average distance harvesters travel from a port close to the source is predicted to increase for all levels of fishing intensity, while distances traveled by fishermen from a port near the sink areas are predicted to decrease. If an MPA is established outside the source area, it is predicted to result in deteriorating production and net revenues because fishing intensity will tend to increase in the unrestricted source area.

On the importance of equity in international climate policy: An empirical analysis

Based on unique data from a world-wide survey of people involved in international climate policy, this paper empirically analyzes the importance of equity in this field. We find that equity issues are considered highly important in international climate negotiations and that the polluter-pays rule and the accompanying poor losers rule are the most widely accepted equity principles. Our econometric analysis shows a strong influence of the economic or emission performance of the respondents’ country on the importance of equity issues and principles: (i) Equity issues are seen as more important by individuals from G77/China countries or from countries with less current per capita GDP and less future per capita CO 2 emissions. (ii) Persons from richer countries are less in favor of incorporating the polluter-pays and the ability-to-pay principle in future international climate agreements. (iii) The poor losers rule is more strongly supported by individuals from G77/China countries or by individuals from countries with less current per capita GDP. While these results are compatible with pure economic self-interest, the support for the egalitarian principle runs contrary to economic intuition: In the long-run, persons from richer countries are more in favor of incorporating the egalitarian principle. Furthermore, the effect of the economic performance variables on the desired degree of incorporating the polluter-pays principle interestingly becomes less significant in the long-run. This indicates that future international climate agreements could possibly be based on a combination of the polluter-pays, the egalitarian, and the poor losers rule.

The Economics of Young Democracies: Policies and Performance

Since the “third wave” of democratization began in 1974, nearly 100 states have adopted democratic forms of government, including, of course, most of the former Soviet bloc nations. Policy-makers in the west have expressed the hope that this democratic wave will extend even further, to the Middle East and onward to China. But the durability of this new democratic age remains an open question. By some accounts, at least half of the world’s young democracies—often referred to in the academic literature as being “unconsolidated” or “fragile”—are still struggling to develop their political institutions, and several have reverted back to authoritarian rule. Among the countries in the early stages of democratic institution building are states vital to U.S. national security interests, including Afghanistan and Iraq. The ability of fledgling democracies to maintain popular support depends in part on the ability of their governments to deliver economic policies that meet with widespread approval. But what sorts of economic policies are these, and are they necessarily the same as the policies required for tackling difficult issues of economic stabilization and reform? Conversely, what sorts of economic policies are most likely to spark a backlash against young and fragile democratic regimes? Do the leaders of young democracies face tradeoffs as they ponder their electoral and economic strategies? These are among the questions we explore in this paper, which provides an overview of the monograph we are currently writing on the economics of young democracies. We do so first by exploring the hypothesized relationships between democratic politics and economic policy, as well as the findings of several important empirical studies with respect to the economic performance of young democracies around the world. We then provide some descriptive statistics on how the new democracies have fared in practice, making use of a new dataset that we have compiled (and which, among other things, is more up-to-date than most others cited herein). Do the data reveal any distinctive economic patterns with respect to democratic consolidation and reversal? We will show that they do. In particular, we find that deteriorating or stagnant economic performance constitutes a red flag or warning signal that the country is at risk of democratic reversal. Moreover, we find considerable variation in economic performance, suggesting that the design of political institutions in new democracies may have a significant influence on the probability of their survival. The Center for Global Development is an independent think tank that works to reduce global poverty and inequality through rigorous research and active engagement with the policy community.

On the Importance of Equity in International Climate Policy: An Empirical Analysis

Based on unique data from a world-wide survey of agents involved in international climate policy, this paper empirically analyzes the importance of equity in this field. We find that equity issues are considered highly important in international climate negotiations and that the polluter-pays rule and the accompanying poor losers rule are the most widely accepted equity principles. Our econometric analysis shows a strong influence of the economic or emission performance of the agents' country on the importance of equity issues and principles: (i) Equity issues are seen as more important by individuals from G77/China countries or from countries with less current per capita GDP and less future per capita CO2 emissions. (ii) Agents from richer countries are less in favor of incorporating the polluter-pays and the ability-to-pay principle in future international climate agreements. (iii) The poor losers rule is more strongly supported by individuals from G77/China countries or by individuals from countries with less current per capita GDP. While these results are consistent with pure economic self-interest, the support for the egalitarian principle runs contrary to economic intuition: In the long-run, agents from richer countries are more in favor of incorporating the egalitarian principle. Furthermore, the effect of the economic performance variables on the desired degree of incorporating the polluter-pays principle interestingly becomes less significant in the long-run. This indicates that future international climate agreements could possibly be based on a combination of the polluter-pays, the egalitarian, and the poor losers rule.

An Econometric Analysis of the Role of Knowledge in Economic Performance

We conduct a regression analysis of the effects of knowledge on aggregate economic performance using data from the United Nations Development Program (UNDP) and the World Bank for four groups of countries during 1995–2001. Our results indicate that knowledge is a key driver of economic growth for each group of countries. More importantly, we find that variation in economic performance among these groups may be related to the timing of investment in education, R&D, and information technology, as well as economic policies that affect trade and foreign direct investment.