Low Level Of GDP Research Articles

Emerging equity markets in a globalized world

Does the globalization process of the past 25 years obviate the need to segregate global equities into developed and emerging market buckets? We argue the answer is no. Emerging equity markets differ in a statistically significant fashion from developed markets, featuring much lower levels of GDP per capita and equity integration. They also have significantly lower stock market development levels and, on average, feature lower valuation ratios. Emerging markets have morphed into high-beta investments that are highly correlated with developed markets. The historical performance of emerging market investing is much improved by replacing value-weighted indices with alternative weighting schemes, including equal weights, valuation-based weights, and GDP weights.

Economic Implications of COVID-19 in African Countries: Looking Beyond the COVID-19 Era

Economic development or growth is interlinked with socio-political outcomes in any government. The outbreak of the COVID-19, a health crisis, across the globe coupled with policy responses formulated to address the spread of the disease has had greater implications for the economic trajectory of developing countries in Africa. This research paper is built upon a qualitative research design of data collection to explore the contextual and structural factors that further expose African countries to become more vulnerable to the COVID-19 pandemic. The paper further goes to assess the effects of the COVID-19 pandemic on African economies as well as assessing possible strategies that can be adopted towards economic recovery through documentary analysis. Data collected from journal articles, financial reports, newspaper articles and books was analyzed through thematic means to derive meanings and relationships across the data set. The study established that the pandemic resulted in a decline in Foreign Direct Investments, Development Assistance Funds, and decline in household incomes, lost productivity (low levels of GDP) and high debt deficit among other challenges. The study indicates that African countries have to look beyond the COVID-19 pandemic to identify possible strategies towards spurring economic development. In the same light, developing countries ought to also address context specific challenges like corruption hindering effective economic growth. The study recommends developing countries to diversify their revenue sources, digitize tax systems and introduce fiscal policies towards addressing COVID-19 effects.

Dimensions of Well-being and the Millennium Development Goals

The concept of well-being has deep roots in philosophy [Cantril (1965)]. Much later in the 19th century modern definitions of well-being emerged. The utilitarian movement defined well-being subjectively and proclaimed individuals’ well-being as an important goal of individuals’ behaviour and public policy. During the 20th century social scientists started to examine well-being empirically, but a unified concept of wellbeing was lacking. At the beginning of the 20th century, economists developed elaborate quantitative theories of well-being, but rejected the possibility that individuals’ could provide valid reports of their own well-being. In the second half of the 20th century social scientists started to develop subjective measures of well-being, and started to examine how these measures relate to demographic variables or other characteristics of individuals [Andrews and Withey (1976)]. The relationship between GDP and well-being likely depends on how rich a country is. As income increases it contributes little to overall well-being at low levels of GDP in poor country, since only a narrow segment of the population is benefiting directly. Moreover, as noted by Sen (2001) non-monetary benefits such as health and education that improve individual capabilities are often more important than income in poor countries. As the benefits of continued growth trickle down to a burgeoning middle class, social well-being rises dramatically [Torras (2008)]. It is in this context that a number of alternatives to GDP have been introduced. For example, the United Nations Development Programme’s (UNDP) human development index (HDI) uses GDP per capita to measure “access to economic resources” in well-being assessments but accords it only one-third weight in determination of the level of human development. Although national income accounting measures may sometimes not agree with popular perceptions of trends in economic well-being, GDP per capita is one of the three main components of the HDI, whose objective is to indicate the capability of people “to lead a long and healthy life, to acquire knowledge and to have access to resources needed for a decent standard of living” [Osberg and Andrew (2005)].

Different Effect of Inward Foreign Direct Investment, Outward Foreign Direct Investment, Imports, and Exports on Greenhouse Gas Emission across 24 European Union Countries

The European Union (EU) has achieved remarkable progress in reducing greenhouse gas emission with the help of the emission trade system (ETS) and other environmental policies for the past decades. The main purpose of current study is to empirically investigate different effects of inward foreign direct investment, outward foreign direct investment (FDI), imports and exports on greenhouse gas (GHG) emissions for different level of GDP per capita. Panel data set of 24 European Union countries was selected from 2013 to 2017. And these 24 countries would be further divided into two groups based on their GDP per capita. The result indicates that inward FDI would decrease GHG emission for high GDP per capita group, whereas it increases the GHG emission for low GDP per capita group, suggesting the existence of “pollution haven” in countries with lower GDP per capita. On the contrary, the effect of outward FDI on GHG emission would be positive for high GDP per capita group but negative for low GDP per capita group. Meanwhile, exports would increase GHG emission for low GDP per capita group but decrease GHG emission for high GDP per capita group. Besides, imports would also be a contributor of GHG emission for high GDP per capita group. The conclusion drawn from this study implicates that, to reduce the domestic GHG emissions, countries with different level of GDP per capita should have different strategies. For countries with high level of GDP per capita, it would be more effective to attract inward FDI while for countries with low level of GDP per capita, promoting environmental policies with subsidies to encourage domestic producer to adopt newer and cleaner technology would be primary.

Political Economy Analysis (Pea) And Market Analysis Of Illicit Wildlife Trafficking (A Case Study On Pangolin Illicit Trafficking: Indonesia-China)

This paper aims to formulate and examine the best intervention model in countering pangolin trafficking. This involves the political economy analysis (PEA) and the market analysis, prioritising through harm identification, and the response by intervention formulation. The preferred intervention is then examined by the theory of change to determine its process in pursuing the impact. It utilises qualitative approach by using document reviews as data collection method. This paper finds that pangolin market is led by the “push” factors in Indonesia influenced by the geographical condition, which has a wide range of tropical forests as pangolin habitat. Moreover, the low level of GDP and education rates is the main factor behind pangolin trading. While, the “pull” factors in China are influenced by the high demand rates that cannot be covered by its local pangolins population. Finally, the author suggests that the general deterrence approach is regarded as the best model to intervene in the market. This approach could reduce the supply and demand to cut the market chain.Keywords: political economy analysis, market analysis, general deterrence, wildlife trafficking, pangolin.

Do longer constitutions corrupt?

Tsebelis and Nardi (2016) and Tsebelis (2017) report that constitutional length correlates with lower levels of GDP per capita. They argue that this may be the case because longer constitutions lead to greater corruption. However, uncovering a causal relationship between constitutional length and corruption is difficult. On the one hand, political elites may pressure drafters to include specific provisions that facilitate their rent-seeking efforts. On the other hand, constitutional drafters may be responding to corruption by including a large number of specific safeguards. Our aim in this paper is to explore whether there is a causal effect of constitutional length on corruption. We utilize data from the Comparative Constitutions Project (CCP) to identify 5 cases when a country experienced a ≥50% increase in constitutional length. For each of those cases, we compare the subsequent change in corruption to that of a synthetic control. We report evidence of a significant post-treatment increase in corruption for 3 out of 5 cases (Ecuador in both 1997 and 2008; Venezuela in 1999). However, the 2008 Ecuador result is not robust to a placebo test; and in the case of Venezuela it is difficult to distinguish a constitutional length effect from a “Chavez effect” (Grier and Maynard 2016). The evidence that longer constitutions corrupt is weak.

ОСОБЛИВОСТІ ЗОВНІШНЬОТОРГОВЕЛЬНОЇ ДІЯЛЬНОСТІ ВІТЧИЗНЯНИХ ПІДПРИЄМСТВ В УМОВАХ ВОЄННОГО СТАНУ

The article is devoted to the study of foreign trade activities of domestic enterprises under martial law. The development of foreign trade activity in Ukraine for 2007-2021 was also analyzed. It was determined that on average Ukraine had a negative trade balance, which was accompanied by exchange rate fluctuations and a low level of GDP. It has been proven that one of the promising areas of foreign trade is Ukraine's cooperation with the EU, which accounts for 40% of exports. The role and place of Ukraine in the world agricultural market has been studied. Ukraine ranks fifth in the world in wheat exports with a share of 10% and first in sunflower exports, second in barley exports and third in corn exports. It was found that Ukraine is one of the key suppliers of agricultural products, which is determined by the industry specification of our country. Today, the countries of the world must jointly prevent a food crisis that may arise in the near future, and make every effort to end the war in Ukraine and restore peace. The prospects for the development of Ukrainian exports in wartime conditions are analyzed. It was determined that the entire world community, with joint efforts, helps Ukrainian companies to carry out foreign economic activities and provides its support through concrete actions. It has been proven that it is precisely through the stimulation of foreign trade that the Ukrainian economy can be quickly restored, because international business stimulates the influx of international investments and innovations that will help the Ukrainian government to raise the economy.

Ефективність праці як важливий фактор людського розвитку

Abstract. Modern challenges of time require entrepreneurs and economists to develop new approaches to determining and evaluating the results of work. It is the efficiency of labor that is the basis of both the economic development of the country and the increase in the level of human well-being. Insufficient labor efficiency due to neglect of labor interests, manifestations of the economic crisis, lack of decent wages and incentives for workers create obstacles to productivity in enterprises, which in turn negatively affects the overall economic development of society and the state. Purpose. The purpose of the article is to study the lack of efficiency as one of the main factors of human development. It is proved that in the conditions of European integration and requirements of market integration of labor efficiency is the main basis in the process of improving labor productivity by raising living standards and the use of innovative technologies by enterprises. Results. In the results of the analysis of labor efficiency as an important factor of human development in the modern domestic economy, it can be noted that Ukraine lags far behind the leading countries of the European Union and the United States in increasing labor productivity, using innovative technologies in the economy. Factors influencing low labor productivity in Ukraine are low wages, insufficient number of highly qualified specialists in various spheres of economic activity, low level of GDP and, as an example, low level of innovative activity of domestic enterprises.

Public policy recommendations for promoting female entrepreneurship in Europe

From 2021 onwards, female entrepreneurship is expected to grow very substantially as a result of the Covid-19 pandemic. The introduction of teleworking and staggered hours in many countries at national or workplace level will make possible the conciliation between labour and family life. The purpose of this paper is to identify the most influential explanatory factors in the behaviour of female entrepreneurship in Europe so as to subsequently propose efficient economic policy measures to promote it. The distinction between opportunity and necessity female entrepreneurs have been considered since both motivation and factors are different in each case. 15 econometric models using the panel data method for a sample of 20 previously selected European countries (grouped by their GDP level) during the period 2001 to 2018 have been estimated to determine which explanatory factors affect female entrepreneurship and necessity-based female entrepreneurship. The empirical analysis used demonstrates that more women enter into entrepreneurship due to necessity rather than in pursuit of opportunity for European countries both with higher levels of GDP and for countries with lower levels of GDP. In this context, the following policy measures should be implemented to promote female entrepreneurship in Europe: the optimization of government spending (training courses and mentoring, public procurement, stronger networks, support in reconciling business and family life, etc.), the government incentives for subsidizing high interest rates to support women in accessing financing, and the improvement of entrepreneurship education to increase the confidence of women in themselves in their own entrepreneurial capabilities.

ELECTRONIC INTERACTION OF BUSINESS ENTITIES DURING GLOBAL CHALLENGES

Global challenges are stepping up the transition to electronic forms of interaction. With their help business processes, communicative, managerial functions are realized. The existing schemes of electronic interaction are analized in the article, the systematization of their advantages and disadvantages is done and the factors influencing the development of electronic interaction in Ukraine are offered. The factors and mechanisms of transformation of traditional forms of interaction are determined and the possibility and expediency of transition to electronic forms are analyzed, the difference of which is cooperation using publicly available information systems and computer networks. The basic concepts related to interaction via the Internet are described, the indicators that determine the development of e-commerce are identified, their dynamics in Ukraine and in the world are analyzed. The following methods were used in the research process: analysis, synthesis, generalization, induction, analogy, comparison, system approach. The analysis of statistical data made possible to note the low level of GDP per capita in Ukraine compared to other European countries. The percentage of e-shoppers and the percentage of e-GDP, i.e. GDP sold through e-commerce, is also low in Ukraine. Although it should be noted that Ukraine is among the ten countries with the largest number of online users, therefore, the country has great potential for doing e-business. During such global challenge as pandemic, there was a significant intensification of electronic forms of interaction in response to the socio-behavioral constraints caused by the pandemic. The results of the research showed that e-interaction has both undeniable advantages and certain threats to eliminate which further action of both private and public sectors should be directed.

Do Longer Constitutions Corrupt?

Tsebelis and Nardi (2016) and Tsebelis (2017) report that constitutional length correlates with lower levels of GDP per capita. They argue that this may be the case because longer constitutions lead to greater corruption. However, uncovering a causal relationship between constitutional length and corruption is difficult. On the one hand, political elites may pressure drafters to include specific provisions that facilitate their rent-seeking efforts. On the other hand, constitutional drafters may be responding to corruption by including a large number of specific safeguards. Our aim in this paper is to explore whether there is a causal effect of constitutional length on corruption. We utilize data from the Comparative Constitutions Project (CCP) to identify 5 cases when a country adopted a significantly longer constitution. For each of those cases, we compare the subsequent change in corruption to that of a synthetic control. We report evidence of a significant post-treatment increase in corruption for 3 out of 5 cases (Ecuador in both 1997 and 2008; Venezuela in 1999). However, the 2008 Ecuador result is not robust to a placebo test; and in the case of Venezuela it is difficult to distinguish a constitutional length effect from a “Chavez effect” (Grier and Maynard 2016). The evidence that longer constitutions corrupt is weak.

UKRAINE ON THE WAY TO EUROPEAN INTEGRATION: A GLOBALIZATION CONTE

As a result of the COVID-19 pandemic, national states are gradually losing opportunities to be self-sufficient not only in the international arena, but also in adequate response to internal national challenges. Ukraine, taking into account its geographical location between the borders of the EU and the Russian Federation, cannot afford itself to remain outside the modern processes of globalization and has a clearly defined strategy of European integration. The variability of the conditions for the integration of countries into the world community requires a systematic update of research on globalization and European integration processes. Globalization is a complex, multifaceted process of interaction and integration between people, companies and governments all over the world. The purpose of the article is to study the prospects of reforming Ukraine's public administration on the path to European and Euro-Atlantic integration of Ukraine as a conscious choice of the Ukrainian nation in light of the multi-perspective and controversial phenomenon of globalization. The article describes the dimensions of globalization: economic, socio-cultural, political. Some indicators of socio-economic development of Ukraine are analyzed, their dynamics is monitored and the most representative global indexes of social and economic state of countries are studied and Ukraine's position in the relevant world ratings is determined. The positive impact of globalization processes on Ukraine is determined taking into account the low level of GDP, which is confirmed by the results of the analysis of trade relations between Ukraine and the EU. The positive aspects of the influence of cultural globalization on Ukraine as a phenomenon of expansion and intensification of social relations, focusing on cultural diffusion, are also defined. The growth of the gap in the levels of economic and social development between Ukraine and the countries of golden billion is substantiated, which gives rise to a steady tendency a steady trend of migration of the most competitive and socially active individuals. This causes negative factors of globalization, like the migration of the intellectual elite and the growth of the shadow economy’s share. As a result, directions for improving the effectiveness of the success of European and Euro-Atlantic integration and cooperation with the IMF, in particular in the judicial, law enforcement and economic systems, have been determined.

Why do some poor countries see armed conflict while others do not? A dual sector approach

Low level of GDP per capita is a robust and widely applied predictor of civil war. Yet, GDP is a crude macro-level indicator that masks considerable heterogeneity in economic structures, and it is less well able to explain variation in conflict risk among low-income countries. Here, we consider the merit of classic dual sector theory in improving common economic models of civil war. Two basic expectations are derived: the relative size of the traditional sector increases conflict risk via low opportunity cost and high share of immobile wealth, whereas high relative labor productivity (RLP) in the modern sector compared to the traditional sector facilitates labor mobility and wage growth, thus reducing the viability of rebellion. We evaluate these expectations via out-of-sample prediction analysis of civil conflict involvement, drawing on a unique 10-sector dataset of economic activity among 40 countries across the world since 1969. The analysis provides robust evidence that poor countries with a comparatively productive modern sector are less conflict prone than countries at similar income levels with lower RLP ratios. However, further probing into potential mechanisms producing this relationship does not provide decisive evidence in favor of any potential mechanism. We conclude that replacing GDP per capita with indicators of sector size and relative productivity improves the predictive performance of common civil war models, although more research is needed to assess the generalizability of these findings and to gain further insight into the underlying causal pathways linking relative labor productivity with reduced conflict risk.

Explaining the Variations in the Magnitude of Undeclared Work Across the 28 European Union Member States

This paper evaluates the competing theories that seek to explain the greater magnitude of undeclared work in some nations than others. These theories variously explain the higher levels of undeclared work in some nations to be determined by either economic under-development and the lack of modern governance ("modernisation" theory), higher taxes and state over-interference ("neo-liberal" theory) or inadequate government intervention in work and welfare ("political economy" theory). Reporting data on the magnitude of undeclared work in the 28 member states of the European Union using the labour input method, the finding is that undeclared work is higher in EU member states with lower levels of GDP per capita, less modernised systems of government, higher levels of corruption, social transfers are less effective at reducing poverty, and there are lower levels of public expenditure on labour market interventions to protect vulnerable groups. The theoretical and policy implications are then discussed.

Consumption of food in the EU by the degree of urbanization: data visualization and cluster analysis of the EU sample

This paper examines the consumption of one of the COICOP classes – food and non-alcoholic beverages – by the degree of urbanization on the sample of EU countries in three periods – 2005, 2010, and 2015. The share of this class in total consumption of cities, towns, and suburbs and rural areas presents the second largest item of the total consumption of all structures in question. They examined the key variable creates an input to the analysis stated in the paper. First, the data visualization is realized by creating maps of scaled consumption of food and non-alcoholic beverages in cities, towns, and suburbs and rural areas in the three periods – 2005, 2010, and 2015. The spatial distribution of data shows, that higher shares of consumption of food and non-alcoholic beverages are obtained in CEE and southern countries in all structures and all periods. Considering that consumption of food and non-alcoholic beverages is negatively correlated with GDP per capita or household expenditure per capita it is possible to conclude that countries with lower levels of GDP per capita spend more on goods of daily use. Second, based on k-means clustering, cluster analysis is stated. Similarities between EU countries in the consumption of food and non-alcoholic beverages by the degree of urbanization and with respect to socio-economic conditions are investigated. Clusters are made for all three monitored periods. In 2005 and 2010 five clusters were identified, in 2015 their number has been reduced to four. Similarities between EU countries in the consumption of food and non-alcoholic beverages by the degree of urbanization change through time. The delayed effect of the financial crisis may explain observed changes. The obvious relocation of countries is evident when comparing clusters in the period 2010 and 2015. Besides it, the most stabile cluster is the cluster, which contains core EU countries.

National innovation system as the basis of the country economic growth

The need to development a national innovation system as a basis for economic growth was substantiated at the theoretical and empirical levels in the article. Within this goal, theories of economic growth were considered , the place of innovations in them was revealed, the concept of national innovation systems was study, the impact of the national innovation systems efficiency on the level of economic developmentidentify was identified. Theoretical models and results of empirical research show that the main strategic factors of long-term economic growth are innovations and their determining factors. In turn, economic growth on an innovation basis requires the creation of appropriate institutional structures, which are united by the concept of national innovation systems. The efficiency of national innovation systems is assessed and its impact on the level of economic development of European countries is revealed. The efficiency of the national innovation system of Ukraine is very low, amounting to 35.4 % of the European average. For Ukraine, there is a connection: low efficiency of the national innovation system → low level of innovation activity → low level of GDP per capita. Not a high level of economic development, in turn, impairs the efficiency of the national innovation system, there is a «trap» of inefficiency. This requires the formation and implementation of a scientifically sound set of measures at the state level to get out of the «trap». Such measures include the following recommendations: establish the indicator of knowledge intensity of GDP as the most important macro indicators of strategic economic development, recognize the financing of science as the most important priority of financing policy; stimulate private investment in research and innovation, expand initiatives such as the formation of venture funds to increase private investment and long-term capital; create a reliable national regulatory framework; simplify state aid rules in the field of science and innovation, especially for small businesses, use common evaluation standards for research and innovation projects; recognize the key role of higher education in providing promising skills and compe- tencies for the successful implementation of innovations, stimulate research in universities; support innovation cooperation.

Characteristics of Undeclared Work in Service Sector in Countries of South East Europe

Abstract The undeclared work is a complex and multifaceted phenomenon that has been present in all countries, regardless of its social and political establishment. Notwithstanding, the empirical evidence suggests that informal economy is more prevalent in countries with lower levels of GDP. Furthermore, the informal economy is present in sectors with lower level of capital and higher level of labour intensity. Therefore, the theory and everyday experience imply that the informal economy is more widespread among the services than the goods sectors. This paper provides an overview on the informal work and unofficial economy in the services sector in the former socialist countries in South East Europe. For the reduction of undeclared activities, it is necessary to simplify the procedures for establishing small businesses, to stabilize the tax system, to ensure high tax morale and trust in society and towards institutions, and to decrease the state regulatory burden.

THE ROLE OF FIRST-BEST GOVERNANCE INSTITUTIONS ON GROWTH IN LEAST DEVELOPED COUNTRIES

The study addresses the issue of the low level of GDP per capita growth in Least Developed Countries (LDCs), with special emphasis on the role of first-best governance institutions as a main determinant of growth. LDCs can be characterized by a clear deficit in first-best governance institutions compared to high-income OECD countries supporting the argument that economies that are different for a variety of reasons will differ both in their institutions and in their income per capita. The contribution of the study is to fill the gap in the new political economy of growth by establishing the mechanism of how first-best governance institutions affect growth through the political, economical, administrative and democratic channels. Although the adoption of first-best governance institutions of advanced countries to LDCs is not a panacea to sustainable economic growth, improvement of first-best governance institutions in LDCs significantly induce growth, since investments in governance institutions are subject to diminishing returns, so that the benefits are most pronounced for smaller and developing economies.

Relatedness, Economic Complexity and Convergence Across European Regions

The aim of this paper is to analyze how the heterogeneous structure of the European regions has affected their patterns of convergence or divergence. We analyse data collected by Eurostat, from a balanced panel of 191 regions and 55 economic branches over the period 2003-2015. In this way, we are able to describe and capture technological proximity across the regions and analyse how it has evolved over space and time. Limiting the analysis to the manufacturing activities, we are also able to measure the degree of economic complexity of the regional production systems and assess how this affects their patterns of growth. Our findings suggest that there are pushing (enhancing convergence) and pulling (exacerbating economic gaps) forces to economic convergence. Spatial effects tend to push towards convergence, with the Eastern regions that started from relatively low levels of GDP per capita and experienced higher growth rates. Nevertheless, the different level of economic complexity tends to widen the gaps between territories: for example, the German regions, whose economic structures are more complex, have kept on widening the gap between themselves and the other European regions. The two different forces are also interconnected as the Eastern regions combine a relatively low level of GDP per capita with a significant level of economic complexity. During the period considered, the improvement in living standards has corresponded to the upgrade of their manufacturing production structures.

Održivi rast i regionalna konkurentnost privrede srbije

Backwardness in economic development in comparison with EU and countries from region, expressed especially after big crisis from 2008, demands a change of country's economic policy in order to create assumptions for a long-term sustainable development and competitiveness' increase in regional and world contexts. Having in mind results realized so far, there is a real danger that current economic policy will stabilize country on a low level of GDP, high unemployment rate, with low wages and bad working conditions in a large number of enterprises, in domestic or foreign ownership. Such situation is a result of non-existence of adequate strategy of economic development in transitional period. The goal of paper is to point that new economic policy should be based on support to sectors which most of its added value create through internationalization of business and which have faster growth of revenues on foreign than on domestic markets, such as IT sector, agro-business, medium-tech developed industries.