Modern Sector Research Articles

Welfare Analysis in an Extended Harris-Todaro Model: An Application of the Atkinson Theorem

I analyze the welfare effects of a policy of modern sector enlargement (MSENL), and a policy of increasing the efficiency of on-the-job search from the urban informal sector (IEOS) in a generalized Harris-Todaro model. I show that MSENL causes a Lorenz worsening of the income distribution and IEOS causes a Lorenz improvement. In a rare direct application of the Atkinson theorem, I conclude that MSENL decreases social welfare and IEOS increases social welfare for all anonymous, increasing and Schur-concave social welfare functions.

Welfare Analysis in an Extended Harris-Todaro Model: An Application of the Atkinson Theorem

AbstractI analyze the welfare effects of a policy of modern sector enlargement (MSENL), and a policy of increasing the efficiency of on-the-job search from the urban informal sector (IEOS) in a generalized Harris-Todaro model. I show that MSENL causes a Lorenz worsening of the income distribution and IEOS causes a Lorenz improvement. In a rare direct application of the Atkinson theorem, I conclude that MSENL decreases social welfare and IEOS increases social welfare for all anonymous, increasing and Schur-concave social welfare functions.

Prior-Learning, Cumulative Science Experiences and the Absorptive Capacity of Bio-Entrepreneurs: A Case of the East Midlands Region, England

<p>In the modern healthcare and medical sectors corporate bio-pharmaceutical firms continue to scale down their in-house research and development (R&D) activities in favour of outsourcing the services to bio-tech ventures. These small but, entrepreneurial research-oriented organisations have increased dramatically. They are predominantly owned by bio-entrepreneurs who are extensively experienced scientists. In the science-based industry they operate in, innovation “ecosystems” consisting of global business and social networks are a common feature. As such, they have to consistently exploit them to complement the knowledge gaps in their enterprises. In that context, the paper sets out to investigate five bio-entrepreneurs currently active in biotechnology within the East Midlands region in England. It particularly examines the role performed by their prior-learning and their cumulative science experiences in recognising, assimilating and productively applying science-related knowledge acquired in their innovation “ecosystems”.</p>

The missing middle in developing countries revisited

Purpose The purpose of this paper is to develop a dynamic model to understand the evolution of the firm size distribution in developing countries. Design/methodology/approach Evidence points to the existence of a “missing middle” in the size distribution of firms in developing countries. In the model presented in this paper, the bimodality arises because of agents optimally selecting into a traditional and a modern sector. The key parameter in this model is the mean level of knowledge in the economy. Findings For a low mean, the two sectors co-exist. As the mean rises, the size distribution converges from a bimodal to an unimodal distribution. Originality/value Unlike existing explanations, this model does not rely on frictions to generate the bimodality in size distribution.

Социальные и культурные детерминанты самореализации личности в условиях современного сервиса

In article through the prism of social and cultural approaches to human personality and human activities, authors examine the nature of self-realization of the individual. The authors defend an original theory of the determinationproducing abilities cultural derivatives. On the other hand, the person, as shown in the article is the major determinant of the productive forces of society. The authors of the article rehabilitate in a certain sense the Marxist approach to the relation of individual and society, where the ability of the human is the product of work alienated from the worker; this product can be considered in the context of the categories of “service”, “product of social production” and so on. The article shows the conjugation of the three spectrums of solving the problems of human abilities; they are using the methodology of socio-cultural approach, using the perspective of philosophical anthropology, in the categorical field of psychological discourse. It’s provided by a person who acts simultaneously as an object and as a subject of social relationships, as a result, active life position, a certain strategy of behavior, a tendency to a kind of unique activities have great value towards socialization. The importance of such consideration is connected, on the one hand, with the need of “translating” philosophical problems of psychology and management in the modern language services sector, on the other hand with need to determine conditions for self-realization, and other spiritual factors of human existence in the modern capitalist production. Following consideration of the accompanying considered problem issues (psychological culture, professional development, optimization services and others.); the authors conclude that the social and cultural determination of personality self-actualization creates a dynamic variety of life strategies prejudicing a persons’ ability to realize adequately them in the market in the post-capitalist socio-economic formation.

Climate Instability, Urbanisation and International Migration

This paper focuses on climate-induced migration. We construct a simple theoretical model where, in a first step, climate shocks accelerate the transition from the traditional to the modern sector, leading rural workers to move to urban centres within national borders, while in a second step, downward pressures on wages due to the greater labour supply in cities push people to engage in international migration. To test this hypothesis, we exploit a rich panel dataset, displaying a representative picture of bilateral migration flows and climatic data across 222 countries for the period 1960–2000. Findings suggest that in the next few years the climate-induced growth rate of migrant stocks might be in a range between 8.6 per cent and 12.8 per cent, especially from developing countries, where the level of rural employment is more likely to be affected by climatic shocks.

The Great Divergence Revisited: Industrialization, Inequality and Political Conflict in the Unified Growth Model

This paper studies the impact of inequality in capital and land distribution on the pace of industrialization, thereby explaining the role of wealth inequality in the Great Divergence phenomenon. We build a two-sector unified growth model, in which the outcome of public policy contest between the supporters and opponents of modern sector development determines the pace of industrialization. The distribution of wealth affects the incentives of agents to invest in political conflict, and hence influences the probability of pro-growth policies. We show that while higher inequality in land distribution hampers modern sector development, higher inequality in capital within landless agents is growth enhancing. The strength of the latter effect increases with the amount of accumulated capital. The model also captures the hump-shaped path of conflict intensity observed throughout the industrialization phase. We present several historical narratives that support these results.

Promoting Justice Reforms in Central Asia: The European Union’s Rule of Law Initiative as Part of a Comprehensive Democratization Strategy?

This article examines the European Union’s (eu’s) rule of law promotion in post-Soviet Central Asia. More specifically, it focuses on the eu’s Rule of Law Initiative, which aims to support legal sector modernization and judicial reforms in the region. Drawing on the “democratic rule of law” (droL) model developed by Magen and Morlino, the article analyzes whether the Rule of Law Initiative can contribute to democratization processes in Central Asia. Based on content analysis of eu documents and semi-structured expert interviews with European and Central Asian stakeholders, the study reveals the eu’s very limited ability to trigger genuine reform. The main reasons are its lack of leverage in the region, limited financial resources, and reliance on the joint ownership approach in the context of authoritarian states.

Распределение богатства и политический конфликт в модели перехода от стагнации к развитию

Does more equal distribution of wealth corresponds to faster growth; specifically, in the era of industrialization? Does high inequality hamper the adoption of reforms that contribute to the development of the industrial sector? In the present paper, we demonstrate that the lack of consensus about the role of inequality in the long-run growth could be attributed to not considering the fundamental differences between land inequality and capital inequality, and the differential effects they exert on the process of political struggle accompanying industrialization in mostcountries worldwide. We propose a two-sector unified growth model, in which the speed of industrialization depends on the outcome of political conflict between the heterogeneous interest groups, differing with respect to capital and land ownership, over the adoption of reform of the modern sector. The growth of productivity in the modern sector is possible only if the supporters of this reform manage to overcome the resistance of its opponents in the process of lobbying their interests. The distribution of capital and land is crucial in this process since it determines the structure of agents' incomes and, hence, their political preferences and incentives to invest in lobbying for (or against) the reform. We demonstrate that higher concentration of land ownership hampers development of the modern sector, while higher concentration of capital ownership within the landless agents increases political support of pro-growth reforms and intensifies industrialization. Moreover, the strength of the latter effect is increasing with the accumulation of the aggregate capital. Finally, our model explains the non-monotonous dynamics of political conflict intensity, which corresponds well with structural changes and GDP per capita growth observed in historical data.

Alternative energy and the socially oriented economy

The article was prepared within the framework of the project and with the financial support of the grant of the Russian Humanitarian Science Foundation (RHSF) № 15-02-00650 “Development of the processes of technological modernization of the Russian sectors in the context of the formation of a socially oriented economy”.

Developing a model of critical success factors for TQM implementation in MSMEs in India and their effect on internal and external quality of organisation

The role of micro, small and medium enterprises (MSMEs) in a nation's economy has been widely emphasised in past studies, these MSMEs have been able to cope with global competition through proper quality management. But Indian MSMEs have been lacking in quality management initiatives. Using the critical factors of TQM questionnaire based on Likert-scale, the thinking of the firm owner is taken in use. Various statistical tools are used to interpret the numerical data received. The result shows that there are various tasks or process to be improved including top management's role, work place environment, employee relation, etc. A gap between modern trade and traditional retail sectors are analysed using self-assessment evaluation. In this research, the critical factors are perceived, introduced and analysed using statistical tools. This will help in establishing the fact that TQM cannot be ignored for development of manufacturing sector and hence overall development of Indian economy.

Innovation and competitive factors of non-R&D industrial enterprises. The case of north-eastern Poland

This paper investigates the drivers of technology and innovation in Podlaskie (north-eastern Poland). There are reasons to believe that the convergence of Podlaskie's technology development to the levels of the rest of Poland will continue, but will proceed more slowly. The paper concludes that technology transfer and R&D investment have sped along at a spectacular pace in Poland in the recent years, although innovation in modern sectors lags somewhat behind. R&D activities have become the most substantial factor of innovation research in the attempt to explain the phenomena of innovation ability and competitiveness. There is a lot of empirical literature that shows the importance of firm-internal R&D activities as the main source of productivity, technological innovations to improve competitiveness, especially in fast growing high-tech industries. What seems to be the basic problem is the impact of economic changes on R&D activity and technology transfer.

Introduction: Histories of Mobility, Histories of Labor, Histories of Africa

Migrant labor is one of the most extensively studied subjects of Africa's colonial history, helping to inaugurate the professional study of Africa in multiple academic disciplines. Anthropologists in the 1940s, working to outline the impact of colonial rule, used migrant labor to demonstrate the changes occurring within African societies previously considered immunized by tradition against major social change. Economists in the 1950s and 1960s, seeking to gauge the prospects of economic transformation in Africa, examined migrant labor between the traditional and modern sectors of the economy in order to divine what future changes in the balance between these two putatively separate economic spheres might follow from increased investment under colonial and then post-colonial development schemes. Scholars of African politics and society in the era of independence used migrant labor to examine the relationship between states and citizens in newly independent countries, as well as to forecast how this relationship would continue to evolve following the end of colonial rule.Migrant labor was also an important subject for the first professional historians of Africa. Just as the anthropologists who inaugurated the professional study of Africa used migrant labor as an indisputable marker of cultural dynamism, so too could historians use migrant labor as an indisputable marker of diachronic change. The historical study of migrant labor took some time to develop, as the first wave of historians of Africa were predominantly interested in researching precolonial Africa, so as to establish an authentically African past for the emerging postcolonial future. During the 1970s and 1980s, however, increased historical interest in studying colonial rule brought a rapid proliferation of migrant labor histories, diffused through a confluence of closely related historiographical strands.1 One was the focus on African workers as key actors in challenging and ultimately overcoming colonial rule, and a potential force for ushering postcolonial Africa further along the path toward modernity.2 Another was the animated debates, inspired by underdevelopment theory, over Africa's historical relationship with global capitalism.3 Still another was the equally animated debates over the role of material relations in shaping African societies, as well as the proper analytical framework (or mode of production) through which these relations ought to be categorized and understood.4 Hovering over these historiographical nodes was the reigning paradigm of social history, in which economic relationships were understood to be the primary driver of historical change, and to offer the most perceptive lens into the broader arc of history's march toward the present.Migrant labor was well-positioned to feature prominently in all of these historiographies. For labor historians, migrant workers presented a discrete group of individuals whose actions-protests, evasion, strikes, and so on-could be clearly catalogued as an example of the interlocking dynamics of structure and agency as workers confronted the onset of colonial rule.5 For economic historians, migrant laborers instantiated the changes wrought by colonial rule in a particularly vivid way, as the dramatic rise of migrant wage labor-especially in eastern and southern Africa-made clear the scale of the transformations inaugurated by colonial capitalism.6 For historians participating in debates over African modes of production, migrant laborers' movement between work and home made it possible to extend critical analyses of capitalist transformation and its attendant models into regions that had not been previously subjected to rigorous materialist analysis, having instead been considered largely unaffected by such transformations, owing to the fact that capitalist enterprises in many parts of colonial Africa were limited in number and geographically concentrated into a few limited areas.7In the late 1980s and 1990s, however, the previously vibrant historiography of migrant labor entered into significant decline. …

Assessment of the Public Procurement Role in Public Sector Modernization in Russia

Assessment of the Public Procurement Role in Public Sector Modernization in Russia

The Political Economy of Public Reform Adoption: Patterns in Twenty Indonesian Districts

ABSTRACTNew Public Management (NPM) reforms are often perceived as technical, with little attention to political and institutional factors. Comparing choices in 20 Indonesian districts, we explore which of four political economic factors influence uptake of NPM-based service delivery reforms. We find that democratic political competition laid the groundwork for political alliances, patterns of patronage, and party provision of benefits that condition reform choices. State-led policy entrepreneurship was evident from education agency technocrats. Public sector modernization may have increased orientation towards performance, with education reforms adopted by districts already achieving relatively good sectoral results. Health reforms were more common in districts providing greater opportunities for citizen participation. The complex interactions among the factors argue for working within these realities, rather than seeing them as impediments to be avoided in a drive for reforms. Education technocrats’ dominance, bolstered by central policy priorities, argues for more nuanced mechanisms for meeting national goals to avoid crowding out responsiveness to local citizens.

Industrialization from Scratch: The Persistent Effects of China's 'Third Front Movement'

This paper studies the long-run impacts of industrial investment on the structural transformation of agrarian local economies. We exploit a massive industrialization campaign in China known as the "Third Front Movement," which invested heavily in the industrial sector in China's remote and largely agrarian areas (the Third Front Region) in the 1960s and 1970s. Exploiting the quasi-randomness in the geographic distribution of the Movement's investment, we find that local economies that received more investment continue to have larger and faster-growing modern sectors over two decades after the Movement ended. Urbanization is mainly accounted for by rural-to-urban transformation within the same local economy, rather than inter-regional migration. Therefore, the effects of the Movement are captured by the local residents. We find that the persistent effects are sustained by positive spillovers to a fast-growing non-state sector and explore several channels through which those spillovers take place. Finally, we discuss the welfare implications of the Movement at the national level.

Priority directions of innovation and technological modernization of certain sectors of the Ukrainian economy

In the article the economic preconditions activation of innovation and technological modernization of certain sectors of the Ukrainian economy. Mechanisms of activation of the processes of modernization and innovation development, taking into account sectoral characteristics and state of the economy as a whole. Proposed priority areas for innovation and technological modernization of certain sectors of the Ukrainian economy.Based on the identified priority areas of modernization and innovation development of economy proposed a number of priority actions to financial and tax incentives and enhance the process of developing and implementing innovative projects.The result of the proposed mechanisms to enhance the process of innovation and technological modernization of certain sectors of Ukraine will increase the number of innovative small and medium enterprises and local developments, implemented in industry, including engineering, instrumentation, aerospace.

Unfinished Europe: Transition from Communism to Democracy in Central and Eastern Europe

The Berlin Wall collapsed a quarter of a century ago. This anniversary led to publication of studies about the success of Central and East European transformation. Some of them maintain that the region became ‘normal,' and nearer to their Western neighbors. In reality, the region still belongs to the periphery of Europe with a mostly dual economy and low level of income. Modern sectors and the entire banking industry are subsidiaries of Western multinationals. The political system is often authoritarian. Democratic forms often cover non-democratic contents. Corruption, tax evasion and other symptoms of peripheral political behavior are quite common. Transformation is so far not accomplished and will certainly require two or three generations to achieve.

Functioning and development of defence industrial complex in the conditions of modern challenges

We give a brief analysis of the results of the development of the domestic defense industry in recent years in its relation to communities of issues and problems of development of Russian industry in general and mechanical engineering segment in particular. The necessity of the transition from the maintenance of the reduced level of industrial and technological base to implement the model of modernization of high-tech sectors of the engineering sphere, built on the targets and the development of mutual guarantee system for each participant.

The Prologue to the Greek Crisis

Summary: This paper analyzes the prologue to the Greek tragedy—in particular, the long period of slow growth after Greece joined the European Union and the short period of very strong growth following its adoption of the euro—and deduces reform proposals. Ultimately, a growth strategy should contain three interrelated bundles of measures: First, an improvement of the institutional environment, which currently makes it difficult to do business in Greece and thus leads to too little investment. Second, a reorganization of public finances and the creation of a leaner, more efficient administration, as well as a reform of the pensions system. Third, an expansion of the industrial basis and the modern sector in order to build a strong export basis. All of these measures entail comprehensive changes to Greece’s economy and Greek society, and the majority of Greeks must therefore be in favor of them. The alternative is to opt for moderate reforms and to return to the old path of low growth and a lower living sta...