High Value-added Industries Research Articles

Economic growth and foreign direct investment in Balkans

Foreign direct investment (FDI) has become a key source of economic growth for the Balkan countries, offering vital funding for development initiatives. Therefore, the purpose of this study was to examine the dynamics of FDI in Serbia, North Macedonia and Montenegro from 2000 to 2023. An econometric model was used to conduct the research, namely, the relationship between FDI and economic growth in the region was analysed. A multiple regression model was developed that includes gross domestic product growth as the dependent variable. It was established that significant fluctuations in the rates of economic growth are characteristic of all three countries during this period. Serbia has shown particular resilience, with positive growth rates prevailing in most years. Key sectors attracting FDI were also identified, including services, manufacturing, automotive, IT, agriculture, energy and tourism. The obtained results emphasised the importance of reforms aimed at business development, infrastructure development and regional integration, especially with the EU, as critical factors in attracting FDI. In addition, diversification of FDI sources was emphasised with increased investments from China, Turkey and the United Arab Emirates, which complement traditional investors from the EU. More than 60% of foreign investment in Serbia has been found to be concentrated in the services sector, while North Macedonia has successfully attracted investment in high value-added industries such as information technology and engineering. These findings are consistent with established economic theories about the impact of FDI on growth, while providing specific insights into the Balkan context. It found that a 1% increase in FDI was associated with a 0.3-0.5% increase in gross domestic product in the Balkan countries studied. The obtained results can become the basis for future political decisions and investment strategies in the region

헬스케어 의료관광산업의 경제적 파급효과 비교분석

Purpose - This study aims to analyze the economic ripple effects of the new healthcare medical tourism industry, following the addition of healthcare to the scope of old medical tourism.
 Design/Methodology/Approach - As for methodology, the study divided the basic sectors (381) in the inter-industry relations table into the healthcare medical tourism industry through subtotal addition based on the 2023 KOSIS (extended data of 2019) of the National Statistical Office, reorganizing the inter-industry relations table with large integrated categories (34) and analyzing inter-industry relations with the I-O model.
 Findings - The findings show that the healthcare medical tourism industry had higher production and value-added inducement coefficients, and lower employment and hiring coefficients, than the overall industry average. Its impact coefficient and index of the sensitivity of dispersion, which represent the forward and backward linkage effects of the industry, were both high.
 Research Implications - In this study, an industry-related analysis was conducted by including the healthcare industry converging digital technology in medical tourism to differentiate it from previous studies, and the economic ripple effect was analyzed. The findings demonstrate that the healthcare medical tourism industry has impacts on other industries from multiple angles and, at the same time, is a new growth engine industry to contribute to national economic power and individual health as a high value-added industry.

Research on the Industrial Transfer from the Yangtze River Delta to Linyi City based on the Industrial Gradient Coefficient

The Yangtze River Delta region, represented by Shanghai, Zhejiang and Jiangsu, has grown as one of the most developed regions in China based on the acceptance of international industrial transfer. However, along with the rising factor costs, increasing environmental pressure and resource constraints, it has become a general trend to upgrade industrial structure, give priority to intensive, high technology and high value-added industries, some labor-intensive and capital-intensive industries is moved to other regions in the country. As the southern gate of Shandong Province, Linyi City is close to the Yangtze River Delta, with a common history, and complementary resources, and is an important hub connecting the north and south economies. It should take full advantage of its location, natural resources and labor resources to actively undertake the industrial transfer of the Yangtze River Delta and participate in the regional economic cooperation and development of the Yangtze River Delta. The difference in the development level between the transferring and taking over places is a prerequisite for industrial transfer, which can be measured by the industrial gradient coefficient, which shows the different levels of industrial gradients to determine the transferring industries in the Yangtze River Delta region; in addition, the relative industrial gradient coefficient is introduced to determine the industries Linyi can take over.

Multi-objective evolutionary optimization for multi-period heat exchanger network retrofit

Increase in energy efficiency and reduction in greenhouse gas (GHG) emissions in industry are important steps towards a more sustainable economy. Due to the growing share of high value-added industries multi-period operation becomes more common in process industry. Therefore, retrofit of existing multi-period production plants is a key aspect towards more sustainable production processes. Hence, in this work, an existing two-level evolutionary algorithm using a genetic algorithm and a differential evolution for multi-period heat exchanger network retrofit is extended to consider GHG emissions as a second objective to the total annual cost (TAC). The multi-objective problem is addressed by incorporating a non-dominated sorting genetic algorithm (NSGA-II) and hypervolume indicators into the algorithm. By analyzing an industrial case study of a potato chips production, the results of the multi-objective optimization shows that GHG emissions can be reduced by 50%. However, compared to the single-objective optimization, TAC is increased by 27%. By selecting capital costs and operating costs as objectives instead, similar results to the single-objective optimization are achieved showing that the results are highly dependent on the selection of the objectives. Further, changes in utility costs and caused emissions have a high impact on the results.

Distribution, exploitation, and utilization of intermediate-to-deep geothermal resources in eastern China

The part of China, east of the Hu Huanyong Line, is commonly referred to as eastern China. It is characterized by a high population density and a well-developed economy; it also has huge energy demands. This study assesses and promotes the large-scale development of geothermal resources in eastern China by analyzing deep geological structures, geothermal regimes, and typical geothermal systems. These analyses are based on data collected from geotectology, deep geophysics, geothermics, structural geology, and petrology. Determining the distribution patterns of intermediate-to-deep geothermal resources in the region helps develop prospects for their exploitation and utilization. Eastern China hosts superimposed layers of rocks from three major, global tectonic domains— namely Paleo-Asian, Circum-Pacific, and Tethyan rocks. The structure of its crust and mantle exhibits a special flyover pattern, with basins and mountains as well as well-spaced uplifts and depressions alternatively on top. The lithosphere in Northeast China and North China is characterized by a thin, low density crust and mantle, whereas the lithosphere in South China has a thin, low density crust and a thick, high density mantle. The middle and upper crust contain geobodies with high conductivity and low velocity, with varying degrees of development that create favorable conditions for the formation and enrichment of geothermal resources. Moderate-to-high temperature geothermal resources are distributed in the Mesozoic–Cenozoic basins in eastern China, although moderate temperature geothermal resources with low abundance dominate. Porous sandstone reservoirs, karstified fractured-vuggy carbonate reservoirs, and fissured granite reservoirs are the main types of geothermal reservoirs in this region. Under the currently available technical conditions, the exploitation and utilization of geothermal resources in eastern China favor direct utilization over large-scale geothermal power generation. In Northeast China and North China, geothermal resources could be applied for large-scale geothermal heating purposes; geothermal heating could be applied during winter along parts of the Yangtze River while geothermal cooling would be more suitable for summer there; geothermal cooling could also be applied to much of South China. Geothermal resources can also be applied to high value-added industries, to aid agricultural practices, and for tourism.

맞춤형샴푸 사용자 두피진단 서비스 선호 조사 연구

The cosmetics industry is one of high value-added industries, which meets a human desire for beauty.
 It includes personalized products which represent an individual’s personality and beauty. At present, however, it is hard to find information on the concept, scope and management standards of such personalized cosmetics.
 Now, there are a lot of brands in domestic cosmetics market and some difficulties in consumer approach.
 As a result, industrial growth has slowed down. Under these circumstances, this study attempted to investigate cosmetics usage patterns and preferences for scalp diagnosis services against personalized shampoo users.
 For this, a questionnaire survey was performed against the consumers in Busan and Gyeongsangnam-do, and the results found the followings: When asked what aspect they consider in purchasing hair cosmetics, ‘efficacies & Effects (96 respondents, 49%)’, ‘color or fragrance (36 respondents, 49.3%)’ and ‘skin compatibility (39 respondents, 37.9%)’ were mostly responded. In overall, regular scalp diagnosis was higher than ‘customized service’, ‘warranty service’ and ‘delivery service’, which means that they wanted to check the results through scalp diagnosis. It is anticipated that the study results would improve consumers’ perception of personalized shampoo and a necessity of scalp diagnosis.

Analysis on Current Situation and Countermeasures of Semiconductor Industry Development

As a cutting-edge technology and high value-added industry, semiconductor has gradually developed into a pillar industry of global economic growth. After several years of technology accumulation and achievement stack, Hefei semiconductor industry has formed a large-scale, systematic and diversified industrial layout, but the "bottleneck" and challenges can not be ignored. Based on the current situation and existing problems of Hefei semiconductor industry development, this paper puts forward relevant countermeasures and suggestions to break through the bottleneck and help the industry boosting, in order to give suggestions for the iterative upgrading of Hefei semiconductor industry.

Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model

Resolving the conflict between economic growth and CO2 reduction is critical for sustainable growth. Increasing integration into global value chains (GVCs) is an inevitable trend for countries to develop their international markets. However, the dynamic relationships between GVC participation, CO2emissions, and economic growth have not been fully clarified. This study analyzes these relationships and the underlying mechanisms using a panel vector autoregressive model approach with data for 63 countries and regions from 2005 to 2015. The major findings are: (1) GVC participation promotes environmentally-friendly growth in the long run by increasing per capita gross domestic product (GDP) and reducing per capita CO2 emissions. (2) GVC participation increases as per capita CO2 emissions increase; it decreases as per capita GDP grows. (3) These relationships vary by industry and income. The variation of GVC participation in high-CO2 emission industries explains a large proportion of the variation in per capita CO2emissions, and in high value-added industries, GVC variation explains a large proportion of the variation in per capita GDP. Further, high-income countries benefit more from GVC participation compared to low-income countries. An important policy recommendation is that countries should actively participate in GVCs to promote sustainable growth.

Industrial transformations and regional inequalities in Europe.

An important channel through which less developed European countries have grown over the past twenty years is through the industrial transformation of their economies from low to higher value-added activities. The aim of the paper is to address the role of industrial transformation on regional imbalances, by analysing the different components of industrial productivity dynamics, namely the industrial composition, competition and reallocation effects. Based on both a shift-share analysis and a simulation analysis, the paper shows that the reallocation towards higher value-added sectors in Central and Eastern European (CEE) countries could in fact lead to higher regional inequalities. Our empirical results lead us to claim that short-term normative interventions should go in the direction of supporting “modern and technologically advanced traditional sectors” rather than necessarily pushing CEE countries towards a high value-added industry specialization.

A study on liability for environmental pollution in Beijing-Tianjin-Hebei Region

The Beijing-Tianjin-Hebei metropolitan cluster has inevitably brought many problems along with its vigorous economic development, one of which is environmental pollution. Based on our previous research, we clarified the mechanisms and characteristics of environmental pollution transfer in the Beijing-Tianjin-Hebei and surrounding regions, and this paper refered to the further correct delineation of the responsibility for environmental pollution control in Beijing-Tianjin-Hebei and the surrounding provinces. This study measureed the full cost of environmental pollution control and economic benefits in Beijing, Tianjin, Hebei and surrounding provinces in terms of the economic costs required for governance, and constructed an inequity index (CG index) to characterise the inequity in the share of costs borne and benefits by the aforementioned provinces. The results of the study showed that there is significant environmental inequity and inequality of responsibility in the process of regional trade among the provinces in and around Beijing, Tianjin, Hebei and the surrounding region. The developed provinces (Beijing and Tianjin) benefited more and bore less responsibility for pollution control due to their optimised industrial structure, producing more capital-intensive and high value-added industries, while provinces with heavy chemical, high pollution and labour-intensive industries, such as Hebei and Shanxi, developed their economies more in the primary and secondary sectors due to their irrational industrial structure, and therefore benefited less and bore more when trading goods with the developed provinces (Beijing and Tianjin) benefited less and took more responsibility for pollution control. Based on the above findings, policy recommendations are then put forward to provide suggestions and references for the collaborative management of environmental pollution in Beijing, Tianjin and Hebei.

Studija o namjeri i iskustvu korištenja metaverzuma

Due to the acceleration of information and communication technology in the Fourth Industrial Revolution, artificial intelligence technology has had a large impact on politics, economy, culture, and art industries. During the COVID-19 pandemic, as face-to-face activities declined and video conferencing expanded, a new platform, called the metaverse, appeared. The metaverse is a digital communication technology, that become known to the public through games and entertainment, and it is gradually expanding. The metaverse also provides new education methods. For high value-added industries, the metaverse is used to foster skilled experts in a shortened training period. In the education field, the metaverse platform is being used in convergence with information technology (IT) companies. Examples include the entrance ceremony, graduation ceremony, job fair, museum experiential learning, and graduation work exhibition of the virtual world through the metaverse. In this paper, college students’ experience of using the metaverse was studied to determine their awareness of and experience with the metaverse. Based on the potential of the metaverse platform, the MZ (Millennials and Generation Z) generation’s intention to use the metaverse, and their experience with it, it is expected that this study will aid the development of the metaverse.

Податкове стимулювання НДДКР у контексті розширення фіскального простору

The article deals with the main R&D expenditure based tax incentives such as tax credit and enhanced allowances in the context of the development of fiscal space due to their impact on innovative activities of loss-making, small and medium enterprises as well as startups. The author disclosed basic features of R&D expenditure based tax incentives in comparison with tax exemptions and accelerated depreciation. Cross-country comparisons in OECD revealed that it is often a case when SMEs and startups enjoy R&D tax credit and enhanced allowance with higher rates. In addition, they can also claim full reimbursement of unused tax benefits for R&D while large companies can only count on partial or even non-reimbursement of unused tax benefits and limited carry over period. Implied tax subsidy rates on R&D are analyzed through different OECD countries, as well as through enterprises different in size and profitability. In 2019 the largest R&D tax benefits were offered to profitable SMEs in France (ITSR was 43%) and Portugal (ITSR was 39%). The ITSR methodology is used to work out scenarios of introduction of R&D expenditure -based tax incentives in Ukraine. Calculation results are presented. The state of R&D tax incentives in Ukraine in the case of aircraft industry is analyzed. The introduction R&D expenditure -based tax incentives is argued as a replacement of tax exemptions which are currently used as a measure for R&D promotion in the aircraft industry in Ukraine in terms of improvement of R&D tax support efficiency and spur successful development of high value-added industries as an important prerequisite for the development of fiscal space in Ukraine.

Artemis Accords and Its Implications for the International Space Law

The NASA signed the Artemis Accords on October 13, 2020 with Australia, Canada, Japan, Luxembourg, Italy, the United Kingdom, and the United Arab Emirates. NASA s purpose of this Agreement as stipulated in Section 1 of the Artemis Agreement which is to regulate civilian exploration and the peaceful use of space. It also made clear that it is intended to apply this arrangement to the civil space activities of the State Party. This Accords has great implications for the space industry. This is because space is emerging as a high value-added industry recently, and space activities of private companies are becoming a reality. However, the Artemis Agreement needs to be reviewed within the existing space law system. First, it is necessary to determine what the legal nature of the Artemis Agreement is. This is because the Artemis Accords is in the form of multiple bilateral agreements led by NASA which seems to head toward fragmentation of the space law. Furthermore, it is necessary to review the contents of the Artemis Accords. This is because there are parts that are discussed with novelty, and because the US clearly denies the lunar agreement, it is necessary to review the limitations and issues arising from the space treaty system in relation to civilian space activities. The Artemis Accords is discussed into three main areas here. (1) space security and peaceful use, (2) space resources, and (3) space tourism and the environment. Existing studies of the Artemis Accords seems to emphasize on space resources. However, since there are parts where the progress of international law is differently interpreted in the above three areas, it is necessary to consider the change in space law.

Scenario-Based Analysis of Land Use Competition and Sustainable Land Development in Zhangye of the Heihe River Basin, China

Rapid economic growth has a significant impact on land use change, which would threaten the natural ecology. Zhangye city of the Heihe River Basin, China is an ecologically vulnerable region where land use changes significantly due to socioeconomic development and population increases. The study employed a computable general equilibrium of land use change (CGELUC) model to simulate land use change and then used a dynamic land system (DLS) model to spatialize land use change during 2015–2030 under three development scenarios in Zhangye city. The three development scenarios are the baseline scenario (BAU), the resource consumption scenario (RCS) and the green development scenario (GDS). We found that economic growth would lead to land demand increases in high value-added industries and decreases in low value-added industries. The cultivated land would decrease while the built-up area would increase. By 2030, the cultivated land will decrease by 8.16%, 10.89% and 4.16%, respectively, under BAU, RCS and GDS, while the built-up area will increase by 8.61%, 10.39% and 4.75%, respectively. The expansion of built-up area under RCS presents spatial characteristics of centralized distribution, while spatial characteristics of uniform discrete distributions are presented under GDS. The expansion of ecological land under GDS would be considerable, especially in the north of Sunan County and Gaotai County, and around the natural reserve of Ganzhou County. This paper provides a scientific reference for coordinating economic development and ecological protection in the rapidly developing urbanized areas in western China.

A Study on Focused Ion Beam (FIB) Milling Machining and Fabrication Technology of Nano-Scale Diamond Tool for Machining Fine-Patterns in a Free-Form Surfaces.

Recently, the technology of the industry has been increasing for diffractive optical elements, holograms, optical components, and next-generation display components. The advanced high value-added industry is designing fine patterns on ultra-precision optical components and applying them to various industries. In the case of the ultra-fine pattern, a contact-type machining technique is required because it requires a precise pattern in nano-scale units. In this paper, the fabrication technology of ultra-precision diamond which is essential in the ultra-precision processing technology was suggested. The material used in the experiment was a single-crystal diamond tool (SCD), and the equipment for machining the SCD used a focused ion beam (FEI COMPANY, system Nova 600) equipment. The back fire method was applied without metal coating in order to carry out the process study and the focused beam of 30 keV Ga+ ions were carried out processing for various fabrication of diamond cutting tools. As a result of applying the backfire method through the process experiment, the cutting edge width of the ultra-precision diamond tool was verified 275 nm.

Application of Computer Visual Recognition in Industrial Automation Assembly Production Line

Computer vision recognition technology refers to the technology of simulating human vision system with computer to realize the functions of object recognition, shape orientation confirmation, motion judgment and so on, in order to adapt, understand the external environment and control their own motion. The present situation of industrial automation in China is that the industries covered by full automation are relatively limited, mainly concentrated in the high value-added industries represented by automobiles, and most industries choose simple automation according to the tradeoff between automation effect and cost. In the course of industrial automation, the corresponding control technology and the most representative programmable controller, industrial computer and intelligent instrument device are developed according to the main characteristics of industrial field, among which computer vision recognition technology is more and more widely used in industrial automation.

Features of agro-food chains formation in foreign markets

The article is devoted to the study of the peculiarities of the formation of agri-food chains in foreign markets and the calculation of value added losses in export-import operations of agri-food. It is established that the share of the agricultural sector in the GDP of Ukraine is 10.2% at the lowest value added per employee 4801.4 dollars. USA. It is estimated that in 2010–2019, in the structure of Ukraine's exports, agricultural products provided 19% of foreign exchange earnings in 2011 and 40% in 2019, which is evidence of the strengthening of export positions of the studied sector of the economy in foreign markets. It was revealed that in 2019 the share of agri-food products was 44.3%, or 22.2 billion dollars. US, or increased by 19% compared to 2018, while total exports from the country during this period increased by only 6%. It is determined that in the structure of exports of agri-food products the share of plant products is 58%, and in the commodity structure of exports the largest share falls on cereals - 74%, as well as oilseeds - 20%. It is concluded that the export of agricultural food in 2010–2019 is formed by raw materials, while the value added of processed products - sunflower oil, poultry meat - is higher than that of grain. Threats to the functioning of agri-food supply chains to foreign markets caused by the COVID-19 pandemic and government actions of the world and Ukraine to ensure food security are systematized. It is substantiated that the structure of Ukraine's foreign trade is rational, as raw materials predominate in supplies to foreign markets, and technically complex products dominate in the structure of imports. It is estimated that the foreign trade balance of goods and services in 2019 is negative in the amount of 3.7 billion dollars, but improved by 2.5 billion dollars. relative to the 2018 figure. It is substantiated that in order to achieve a positive value of the foreign trade balance of Ukraine it is necessary to stimulate the development of food industries, ie products with high added value. It is analyzed that the increase in exports of agricultural raw materials leads to a shortfall in value added, and, consequently, the state budget loses significant revenues in the form of value added tax (processed agricultural products are subject to VAT on its exports), tax on profit, export duty (rate 18%, for the export of live farm animals). It was found that the value structure of agricultural imports is dominated by the group of "finished food products" (45%); the second position of agri-food imports is occupied by products of plant origin, the share of which is 31%; third - products of animal origin, whose share in the structure of imports is about 18%. It is suggested that state support instruments, such as VAT refunds, should only be used to stimulate high value-added industries. Key words: agri-food supply chains, export, import, foreign markets, value added.

MICE 산업별 확산 효과 분석 및 신규 참가자 수요예측 연구

The MICE industry is a high value-added industry and is taking the lead in attracting activities and support at the national level to foster it as a national strategic industry around the world. Accordingly, rational demand forecasting and research on the trend of participants are essential for successful operation in relation to determining the appropriate size of MICE-related facilities and securing infrastructure. This study analyzed the diffusion effect of the MICE industry using Bass' diffusion model, and predicted the demand for new participants. The regional scope of the study was targeting six metropolitan cities including Seoul and Jeju. The analysis was conducted by subdividing the types of participants into Koreans and foreigners. As a result of the study, it was found that the meeting field has an innovation effect and an imitation effect, respectively, depending on the region. In the exhibition area, the innovation effect in all regions was low, and the imitation effect was high in some regions. In the convention field, the innovation effect in all regions was low, and most regions showed no imitation effect. The results of the diffusion effect by city and the demand forecast for new participants suggested in this study can be the basic data for establishing strategies suitable for the needs and types of participants, such as determining the size of MICE infrastructure and establishing marketing strategies. In addition, it is necessary to accurately identify the factors of diffusion of MICE participants in the future and establish customized investment and strategies accordingly. Furthermore, in the tourism field, new types of industries are continuously appearing through the organic combination of different industries to secure a competitive advantage. As such, it is of academic significance that this study suggested the possibility of applying the Bass diffusion model to the demand forecasting of industries appearing in a new form in the market such as the MICE industry.

Foreign bank entry and poverty in Africa: Misaligned incentives?

This study investigates the link between industry reliance on external finance, real activity, and foreign bank entry to poverty reduction. Results show that foreign bank entry widens Africa's poverty gap, notably when financing to high value-added industry sectors remains low. Results are consistent with the cream-skimming intermediation hypothesis, occasioning a contraction of credit. By tendering credit to a broader set of firms in industries disproportionately reliant on external finance to grow, foreign banks may partially offset the welfare-reducing effect. However, foreign banks' role in driving down poverty rates is conditional to the host country's institutional quality – an institutional threshold beyond which foreign banks' entry may induce poverty-reducing effects, necessitating a minimum level enabling institutional environment in the host country.

Industrial characteristics and countermeasures of India's anti-dumping against China

China is India's largest trading partner country, but also India's anti-dumping investigation has the largest number of countries. A thorough study of the industrial characteristics and countermeasures of India's anti-dumping against China is of great significance for maintaining a good trade relationship between China and India and even developing countries. This paper selects the relevant data of India's anti-dumping measures against China from 1995 to the present to analyze the characteristics of India's anti-dumping measures against China and explain its causes by using two-factor analysis of variance. Through empirical research, this paper finds that the number of Indian anti-dumping cases against China has significant industry dependence, especially in high value-added industries such as chemical industry, medicine, light industry and labor-intensive industries. In this regard, China should get rid of the "non-market economy" label as soon as possible, try to establish a closer China-India economic and trade partnership under the framework of BRICS cooperation, strengthen bilateral exchanges, and promote the further upgrading of China's export product structure.