Homogeneous Groups Of Countries Research Articles

The Environmental Impact of Changes in the Structure of Electricity Sources in Europe

The limited use of non-renewable energy sources facilitates a reduction in the negative environmental impact of electricity production. The policies of European countries aim to change the structure of electricity sources, focusing particularly on non-renewable sources. The aim of this study was to assess changes in the structure of electricity generation depending on the energy sources used in 34 European countries in the years 1990–2020 in terms of their environmental impact. This study was conducted using cluster analysis: a method applied in multivariate comparative analyses. Such an approach provided a new, broader outlook on changes in the structure of electric energy production in Europe. A total of nine homogeneous groups of countries were distinguished in terms of energy transformation. The ecological scarcity method 2013 was applied to assess the environmental impact of electricity production in the analyzed countries. In the investigated period, the negative environmental impact of electricity production in European countries decreased. The median of the volume of this impact, determined based on the structure of production in 1990, for the analyzed countries was 464 UBP/1 kWh. In the following years, the value of the median dropped to 413 UBP/1 kWh (2000), 322 UBP/1 kWh (2010), and 204 UBP/1 kWh (2020), respectively. The diversification of the countries in this respect also decreased, which resulted in a reduction in the number of clusters from eight in 1990 to two in 2020.

Territorial Development at the Crossroads of Attractiveness and Sustainability

An abundant literature in spatial planning, economic geography and regional science has focused on territorial attractiveness. However, most literature does not sufficiently integrate recent research challenges induced by sustainable development. The latter issue is likely to modify profoundly the locational determinants of economic activities and the mechanisms that explain the ability of territories to attract economic activities. Consequently, a novel approach articulating the necessity of integrating the concept of sustainable development and territorial attractiveness is pertinent. The purpose of this study is to show to what extent an evidence-based analysis of sustainable development goals affects the classification of countries according to their level of development and their potential to move to a higher ranking of their performance. On the basis of panel data on 52 countries, monitored over the last ten years, and through the explicit consideration of "proxy" variables of sustainability, attractiveness, and economic growth associated with measurable indicators, the paper seeks to assess the main basic trends, to develop a typology according to the main new strategic orientation, and to analyse rank order changes in different homogeneous groups of countries. The results confirm the idea of a general two-dimensional and dichotomic trend towards (or against) sustainability and attractiveness and employment prospects. Our study confirms the widening divide between countries in terms of their socio-economic and environmental policies.

THE OPEN BALKAN AS A DEVELOPMENT DETERMINANT OF THE WESTERN BALKAN COUNTRIES

The paper starts from the concept of the Open Balkan as a community of countries in the Western Balkans, aimed at strengthening their economic cooperation and development for faster integration in the European Union. Significant attention is paid to the analysis of the interdependence of (in)stability of the state and the economic development of small countries. The position of the Open Balkan and its members is also analysed on the basis of the selected global composite indices. An important subject of the analysis is also the condition of institutional capacities of the members of the Open Balkan and their institutional cooperation from the perspective of faster progress towards the European integration. Two main hypotheses have been tested in the paper: (H1) CEEs countries are not a homogeneous group of countries; and (H2) The Western Balkans is a relatively homogeneous regional integration. To test the convergence hypothesis between 16 Central and Eastern European countries (CEEs), annual data from World Bank’s database on the value of real gross domestic product per capita (in constant dollars 2017, PPP) in the period 2000-2026 were used (projected values for the period until 2026). We employed the method developed by Phillips & Sul (2007) that allows identification of clusters of convergence on the basis of an algorithm that is data-driven and thereby avoids a priori classification of the data into subgroups. Based on the results obtained, it can be concluded that Serbia is the “locomotive” of the Western Balkans and that all countries in this area should join the regional initiative for cooperation, the Open Balkan.

A comparative analysis of regional integration potential in the Asia-Pacific Region

Objective: The objective of the article is to verify whether the EU can be perceived as a benchmark for further integration of Regional Comprehensive Economic Partnership Participating Countries (RCEP PC) of the Asia-Pacific region. Research Design & Methods: We adopted a quantitative research methodology. It employed cluster analysis through Ward’s minimum-variance method to analyze the Euclidean distances of eight GDP-based World Development Indicators and build two synthetic development measures: SMDRCEP and SMDEU. They were used to group countries according to their level of economic advancement. Standard deviation was used to measure the differences in the structure of GDP in both environments (σRCEP and σEU). The research sample was composed of all RCEP PC and European Union Member States (EU MS). The data sets came from the World Bank database. Findings: The integrity level of RCEP PC is lower than that of EU MS; however, the differences are less significant than expected. Nevertheless, the possibility of RCEP reaching the next integration levels in the foreseeable future is limited. Implications & Recommendations: As RCEP PC do not seem to be able to engage in further integration in the near future, RCEP PC policymakers and business entities should focus on keeping the agreement alive in its current form (FTA). We recommend analyzing whether integration in smaller and more homogeneous groups of countries is possible and desirable. Another factor worth further research is whether the inadequate size of the Chinese economy within the agreement has a pro- or anti-integrational influence on RCEP. Contribution & Value Added: Our research provides an actual insight into the development possibilities of the ‘youngest’ regional integration agreement, the RCEP, based on the experiences related to the integration of the most advanced regional integration agreement, the EU.

Konvergencija inflacije u novim EMU članicama

The European Central Bank is responsible for managing the common monetary policy for 19 countries that are geographically and economically very heterogeneous. The question is whether the common monetary policy suits all of them. We focused on countries that joined the Monetary union since 2007 (new members), to understand if they managed to "fit in". Those countries made impressive progress in macroeconomic and price stability, but is it enough to simply enjoy net benefits from EMU membership? After analyzing statistical characteristics of their inflation processes since 1997 (mean and median inflation, standard deviation and coefficient of variations), we wanted to understand if their inflation rates have converged towards EMU average inflation rate and if they tend to form a more homogeneous group of countries. We conducted a unit root test to statistically check the significance of the convergence process, and analyzed autocorrelation coefficients of inflation rates to assess the influence of the common monetary policy on the persistence of inflation. The results did not statistically confirm the existence of absolute convergence of inflation rates in New EMU members.

MODELLING THE IMPACT OF NATURAL RESOURCE ABUNDANCE ON THE SPREAD OF CORRUPTION IN THE COUNTRY

Purpose. The aim of the article is estimating the degree of impact of natural resources on the corruption on the global scale. Methodology of research. The methodological basis of the study is a systematic combination of the methods of comparative, cluster (k-means method) and canonical correlation analyses. To characterize the level of corruption in the country, three indicators were used (the level of corruption control, regulatory quality and the rule of law), calculated by World Bank specialists within the Worldwide Governance Indicators (WGI) project. The country's provision of natural resources is considered in terms of renewable (volume of wind electricity production, volume of solar electricity production, volume of geothermal energy production) and non-renewable (volume of oil production, volume of gas production). The research object is 44 countries of the world for renewable natural resources and 28 non-renewable countries. Findings. According to the results of the cluster analysis using the k-means method, three homogeneous groups of countries were distinguished depending on the level of their provision of renewable and non-renewable natural resources. The cluster with the highest level of supply of natural resources includes the USA and China (renewable sources) and the USA and Russia (non-renewable sources). Ukraine belongs to the cluster with a low level of extraction of renewable and non-renewable natural resources. The hypothesis that the level of corruption depends on the supply of natural resources is correct, as indicated by the following indicators: the canonical coefficient of determination is more than 0.9; χ2 is Bartler's test and its p-value is less than 0.05. The closest relationship between the two sets of variables exists in countries that are moderately endowed with natural resources. Originality. A scientific-methodical approach for assessing the degree of impact of natural resource on the level of corruption through a systematic combination of cluster and canonical analysis was developed. Practical value. The obtained results can be used by state authorities and local self-government bodies to combat corruption in the natural resources management system and increase the country's investment attractiveness. Key words: corruption, natural resources, cluster analysis, canonical analysis, resource curse.

Foreign capital inflows and economic growth: the experience of low-income countries in Sub Saharan Africa

PurposeThis paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018.Design/methodology/approachTo obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used.FindingsThe results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth.Originality/valueFirst, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).

How rankings disguise gender inequality: A comparative analysis of cross-country gender equality rankings based on adjusted wage gaps.

Methods for estimating the scope of unjustified inequality differ in their sensitivity to address institutional and structural deficiencies. In the case of gender wage gaps, adjusting adequately for individual characteristics requires prior assessment of several important deficiencies, primarily whether a given labor market is characterized by gendered selection into employment, gendered segmentation and whether these mechanisms differ along the distribution of wages. Given that countries are characterized by differentiated prevalence of these deficiencies, ranking countries on gender wage gaps is a challenging task. Whether a country is perceived as more equal than others depends on the interaction between the method of adjusting gender wage gap for individual characteristics and the prevalence of these deficiencies. We make the case that this interaction is empirically relevant by comparing the country rankings for the adjusted gender wage gap among 23 EU countries. In this relatively homogeneous group of countries, the interaction between method and underlying deficiencies leads to substantial variation in the extent of unjustified inequality. A country may change its place in the ranking by as much as ten positions–both towards greater equality and towards greater inequality. We also show that, if explored properly, this variability can yield valuable policy insights: changes in the ranking positions across methods inform on the policy priority of the labor market deficiencies across countries in relative terms.

Firm Profits and Government Activity: An Empirical Investigation

Recent studies suggest that firm profits have risen to a level far above than what would have been earned in a competitive economy. It has been hypothesized that these profits, generated by market power, allow firms to influence the activity of the government. However, despite an abundance of theoretical investigations, the empirical examinations for the validity of this hypothesis have been largely neglected. Against this background, here we perform a detailed empirical study on the potential effects of firm profits and markups on government size and effectiveness. Using data on 30 European countries for a period of 17 years and an Instrumental Variables approach, we find that there exists a robust and stable negative relationship between firm gains and the activity of the state. Our results indicate that, even in such a homogeneous group of countries, firm power may dictate the decline in state activity and, successively, lead to emergence and persistence of inefficient states.

Desigualdad y crecimiento económico: un análisis dinámico

This study explores the relationship between inequality and economic growth, using annual measurements of the Gini Index and per capita GDP growth rate for 38 countries during the period 1980 - 2010. The study introduces a cluster analysis based the concept of dynamical regimes and the introduction of symbolic sequences to segment the sample into homogeneous groups of countries with similar performance with respect to the variables under analysis. During the considered period, two groups of countries are obtained: a group of high inequality and medium-high economic growth, and a second group of low inequality and low growth. Additionally, considering the relationship between economic growth and income inequality in a panel data context, a model is specified for each group, showing that the relationship between the variables depends on the dynamics of the countries. In particular, the study shows that in countries with higher per capita income there is a positive relationship between inequality and economic growth, while for emerging economies the relationship depends on the considered model.

Analysis of Overall and Pure Technical Efficiency of Tourism in Europe

The aim of this paper is to assess the overall and pure technical efficiency of tourism in European countries in 2017 using the output-oriented Charnes, Cooper and Rhodes (1978, 1979), and Banker, Charnes and Cooper (1984) data envelopment analysis methodology. The countries were divided into two groups: European Union countries and non-European counties. We identified two input and two output variables for each group. Input variables were identified using the principal component analysis method, starting from fourteen pillars that measure the performance of countries in the field of travel and tourism, and are published in the regular reports of the World Economic Forum. Then, two output variables were defined (the total (direct and indirect) contribution of travel and tourism to gross domestic product, and the direct contribution of tourism to employment growth rate), to determine the relative efficiency of decision-making units within the formed homogeneous groups of countries, among which the group of Western Balkan countries was singled out. This analysis enabled us, based on relatively scarce potential, to propose guidelines for a tourism development strategy for the entire Western Balkans region.

Central bank independence and inflation—Old story told anew

AbstractCentral bank independence (CBI) and its link to inflation have become a part of conventional wisdom. However, the literature shows that there is a lack of a stable general pattern for the relation between CBI and inflation, even for relatively homogenous groups of countries. In this study, we use two indexes for CBI proposed in the literature. For the panel of 51 countries (24 advanced and 27 nonadvanced economies), we estimate two regression models—one with inflation as a dependent variable and another with inflation gap in this role. We use two estimation methods: the panel fixed effects model with serial autocorrelation in the error term and the Arellano‐Bond difference generalized method of moments estimator. In addition, we use disaggregated indices to check what aspects of independence are of highest importance. Our results suggest that CBI has a negative significant impact on inflation mostly by results for nonadvanced economies and that this relationship did not change during the recent crisis.

Assessing Industry 4.0 readiness in manufacturing: Evidence for the European Union

Industry 4.0 is a concept that represents the adoption by industrial companies of techniques and processes allowed by digitization, cloud computing, the internet of things and big data to gain competitive advantages in domestic and global markets. Measuring how the manufacturing sector is adopting Industry 4.0 is challenging, given that there is not a closed definition of the term and that the collection of information is not specifically directed to Industry 4.0 concepts. Recognizing these difficulties, the present study measures the presence of the factors that characterize Industry 4.0 in manufacturing across EU countries. The analysis provides evidence that the existence of a digital infrastructure combined with the analytical capabilities to deal with big data emerge as the two dimensions that show the readiness for Industry 4.0 in each country. At EU level, five homogeneous groups of countries were found, showing large disparities across countries. The implementation of the single digital market strategy with regard to the manufacturing sector demands the collection of more detailed information on Industry 4.0.

Erratum

Bach MP, Zoroja J and Loupis M. RFID usage in European enterprises and its relation to competitiveness: Cluster analysis approach. International Journal of Engineering Business Management 2016; 8: 1–11. DOI: 10.1177/1847979016685093 While processing this paper, a comment on the proof was inadvertently left in the Abstract section. The updated and corrected version of the Abstract reads as follows: Abstract The radio frequency identification (RFID) is one of the most promising new technologies of modern economy, with a high potential of improving the efficiency and productivity of enterprises. The main goal of this study is to determine the extent of RFID usage in European (EU) countries and to estimate whether there is a relation between countries’ competitiveness and their levels of RFID usage. First, the trend of RFID usage among EU enterprises is analyzed for the years 2009, 2011, and 2014. Second, a cluster analysis is applied with the goal to create homogenous groups of countries according to the RFID application across different industries. Third, countries from different clusters were compared according to their competitiveness in 2014. Results revealed that enterprises in Europe differ substantially according to their RFID usage. Also, RFID usage is not evenly distributed among countries across different industries, since some countries were leaders in RFID usage in one industry while lagging behind in RFID usage in other industries. Finally, countries from clusters with a higher RFID usage level also have a higher level of technological readiness and innovation, while smaller differences were found in business sophistication. The article has been corrected.

The Health Sector in Jordan: Effectiveness and Efficiency

This paper compares a homogeneous group of countries in terms of capacity and technology, where we picked income as indicator for capacity and technology. We study the case of the Hashemite Kingdom of Jordan. We apply radical data envelopment analysis to 36 middle income countries where we calculate constant returns to scale technical efficiency and variable returns to scale technical efficiency to show the health care sector efficiency in Jordan. Using different factors for input first we studied healthcare expenditure per capita then as percent of GDP and public expenditure as percent of GDP and private as percent of GDP, and last was the number of beds per 1000 population and physicians per 1000 population all to the same output life expectancy. The results show that there is inefficiency in health care expenditure. The inefficiency mainly is shown by two major findings, first the lack of utilization of resources. Secondly, the public-sector inefficiency. The output is justifiable for many challenges faced the health sector in the year of the study one of which is the Syrian refuges crisis. We shed light on factors causing the inefficiency where modifications could yield substantial efficiency gains. As for the mix between public and private sectors and the quality and utilization and distribution of the real resources, nevertheless adding health economists to the management staff for there is a managerial inefficiency.

Stock markets, banks, and economic growth: Evidence from more homogeneous panels

The present paper investigates whether the link between stock markets, banks, and economic growth becomes more evident as more homogeneous groups of countries are considered. The dynamic panel generalized method of moment (GMM) estimator with Windmeijer (2005) correction is employed using data of European and non-European high-income countries as well as upper and lower middle-income countries averaged over five and three years. Our results indicate that the link between financial development and economic growth depends on the stages of economic growth of the countries. As more homogeneous economies are involved in a panel, a more economically stylized link is uncovered.

Examination of travel and tourism competitiveness contribution to national economy competitiveness of sub-Saharan Africa countries

ABSTRACTThe purpose of this research is to examine the influence of travel and tourism competitiveness (measured by the Travel & Tourism Competitiveness Index [TTCI]) on the national economic competitiveness of sub-Saharan Africa (SSA) countries (measured by the Global Competitiveness Index [GCI]). The aim is to identify critical factors for improving competitiveness of SAA countries from the area of tourism competitiveness. The study was conducted using the following methods: regression, cluster and grey relational analysis (GRA). Results reveal that travel and tourism competitiveness has a high impact on national competitiveness in the analysed group of countries. The study identified three homogeneous groups within SSA countries according to the TTCI pillars. The different impact of the TTCI on the GCI is determined in each of these three homogeneous groups of countries. The outcomes of this study could provide recommendations for tourism development policy-makers in SSA countries based on the results of GRA.

RFID usage in European enterprises and its relation to competitiveness

The radio frequency identification (RFID) is one of the most promising new technologies of modern economy, with a high potential of improving the efficiency and productivity of enterprises. The main goal of this study is to determine the extent of RFID usage in European (EU) countries and to estimate whether there is a relation between countries’ competitiveness and their levels of RFID usage. First, the trend of RFID usage among EU enterprises is analyzed for the years 2009, 2011, and 2014. Second, a cluster analysis is applied with the goal to create homogenous groups of countries according to the RFID application across different industries. Third, countries from different clusters were compared according to their competitiveness in 2014. Results revealed that enterprises in Europe differ substantially according to their RFID usage. Also, RFID usage is not evenly distributed among countries across different industries, since some countries were leaders in RFID usage in one industry while lagging behind in RFID usage in other industries. Finally, countries from clusters with a higher RFID usage level also have a higher level of technological readiness and innovation, while smaller differences were found in business sophistication.

Mental health problems are rising more in Swedish adolescents than in other Nordic countries and the Netherlands.

Mental health problems increased in adolescents and young adults in Europe between 1950 and 1990, and the cause is largely unknown. Denmark, Finland, the Netherlands, Norway and Sweden form a relatively homogenous group of countries with favourable conditions for children. Our review examined the time trends for mental health problems in these countries between 1990 and 2010. In general, there were only small changes in mental health problems in the countries studied. However, we did note a marked rising trend in mental health problems among adolescents in Sweden, which also has more issues with school achievement and unemployment rates.

Classification of EU Countries according to Selected Indicators from the Field of Business Demography Using Self-organising Maps

Business Demography monitors the file of active enterprises – those actually doing business regardless of when they obtained the authorisation to operate, closed enterprises – those out of business regardless of when they were actually legally terminated, and enterprises surviving for a given time since their establishment. The result of this monitoring is a group of basic indicators used to characterise the number of newly established, closed and surviving businesses in the EU as well as indicators related to the number of people these enterprises employ. The main aim of this article is to classify EU countries by selected derived data focused on business demography using a neural network model – Kohonen self-organising maps for the last monitored period. This model involves creating homogeneous groups of countries to be characterised by demographic indicators associated with the birth, survival, and deaths of enterprises and the related employment, all of which are interconnected. This means the classic method of classification cannot be employed. Kohonen maps, however, can be, and may be enabled by various software. We decided to use the tools offered by the statistical analytical system SAS Enterprise Miner (SAS®EM). An additional objective was to introduce business demography and a description of selected indicators derived in the EU from 2008 to the last reporting period, with a focus on economic development in Slovakia and in the Visegrad Group (V4).