Neoclassical Perspective Research Articles

Theorising the effects of EU emigration for origin countries: win-win, dependency or agency?

ABSTRACT Theory on East-West migration and EU freedom of movement reveals a bias towards accounts from neoclassical economics predicting a win-win for destination and origin countries of migrants. To counter the bias, we juxtapose the neoclassical perspective with the dependency school and the state capacity literature. Empirically, we find that benefits of migration occur regarding the effects of remittances yet not for expectations on return and demography as well as GDP development and growth. The two alternative accounts explain better how emigration may aggravate a country's peripheral position in the EU or how countries manage to reverse and limit outmigration.

Economic growth and income inequality

In recent years the problem of economic inequalities has become one of the most often discussed problems in economics. Even though from neoclassical perspective inequalities should not have negative impact on economy, still the relation between inequalities and economic growth is not obvious. Traditionally, the starting point in this discussion is Simon Kuznets concept, according to which inequality rises in the early phases of economic development and decreases as the growth takes place. The empirical verification of this concept has been investigated, but the evidence is ambiguous. In this context, re-examining Kuznets theory for socialist countries in Asian (i.e. China, Vietnam and Lao) is especially interesting because of the rapid economic growth yet still keeping authoritarian regime. Therefore the main aim of the study is to verify the relation between economic growth and income inequality in China, Lao and Vietnam in years 1990–2022 and assess whether the relation takes shape of so-called Kuznets curve. In order to achieve the goal the data analysis and basic econometric methods are used. The results generally support relations indicated by Kuznets except for Lao for which obtained result were not statistically significant. The findings keep the door open to further analyses aimed at the identification and exploration of more significant determinants that could conclusively verify the relation between inequalities and economic development. Most promising would be incorporating some institutional determinants as it was proposed in Acemoglu and Robinson works.

Flexible labor, innovation regimes and the erosion of the Japanese model: Evidence from the Basic Survey on Wage Structure

Due to labor market reforms around 2003–4, Japan has a growing group of ‘non-regular’ workers who are easy to fire, and have poor carrier perspectives. This marks a break with the traditional Japanese model of life-time employment that allowed for intensive in-company training and commitment of personnel. Drawing from a national wage structure survey, we find indications that employment of non-regular workers has a negative impact on productivity (proxied by wages), this negative impact being largest under innovation regimes that require a high cumulativeness of knowledge. Our findings are consistent with neo-Schumpeterian research in Europe which concluded that certain labor market rigidities, while being undesirable from a neoclassical perspective, can be useful to innovation. Our paper confirms the impression from earlier research that structural reforms of labor markets along supply-side lines are likely to be one of the reasons for a substantial decline of productivity growth in major OECD countries since about 2004/05.

Economic Growth and Policy Dynamics in Contemporary China: A Comprehensive Analysis and Future Outlook

The Chinese economy has grown dramatically over the past few decades. China's economic rise is particularly intriguing because it defies conventional economic models and has been driven by unique policies and dynamics. Nevertheless, in a world characterized by increasing protectionism, international trade tensions, and changes in investor sentiment, the sustainability of China's economic growth model has come into question. Chinese policymakers should navigate these shifts as investors reconsider their positions and countries protect their domestic industries. This paper investigates the policy dynamics that have contributed to the rapid economic growth in China. It also describes the various economic models that can describe the Chinese economic model. The paper reveals s that consumption, investments, and exports are the major drivers of economic growth in China. Consumption in retail sales is robust and is projected to keep increasing yearly into the future. Keynesian theory asserts that aggregate demand is the most important driving force in an economy. As such, the aggregate demand for consumer goods by government, businesses, and households is high in China. Investments are also a major driver in creating gross fixed capital. Investments from a neoclassical perspective show that investors are concerned with maximizing The conclusion shows that in a world where countries are increasingly protective of domestic industries and also where investors are withdrawing from China, policymakers will have to focus on internal growth and consumption as the driver of economic growth.

A Comparison between the Poem of "O Tigris of Goodness" by Al-Jawahiri, and "Egypt" by Hafez Ibrahim: A Neoclassical Perspective.

تُعتبَر الموازنة بين الشعراء تراثًا قديمًا في الشعر العربي، وقد تناولت الدراسة الموازنةَ بين الجواهري في قصيدته "دجلة الخير" وحافظ إبراهيم في قصيدته "مصر" معتمدَينِ على الكلاسيكية الجديدة في منهجهما الشعري حيث استمدّ الشاعران من التراث الأدبي الثرّي للشعراء القدامى مادة لفظية ومعنوية في شعرهما، وأضفى كلٌّ منهما مسحة من الإبداع الفني على قصيدته، وعلى هذا الصعيد أخذت الدراسة وفق المنهج الوصفي التحليلي، تستعرض القواسم المشتركة والفوارق البارزة في الكلاسيكية الجديدة بين القصيدتين ولذلك تلقي نظرة شاملة فيهما من الناحية الفنية فكرةً، وموسيقى، وصورًا، وكذلك قامت بالموازنة بينهما في الاتجاه المعنوي سياسيًّا، واجتماعيًّا، وإنسانيًّا، وتأمليًّا، وبيّنت الفروق ما بين الشاعرين في المذهب الشعري وأسلوبهما وشخصيتهما وخصائص شعر كل منهما اللفظية، والمعنوية، وأخيرًا توصّلت إلى أنّ الفكرة المنصبّة في قصيدة الجواهري هي بثّ حنينه في الغربة استعانة بأسلوب المحاكاة، وعند حافظ الفخر ببلاده مصر عن لسان حالها، والتباهي بعريق تأريخها، ووُفّق کلا الشاعرین من ناحية الموسیقی الخارجیة والداخية إلّا أنّ قصيدة حافظ أخفّ إيقاعًا وأقلّ جرسًا، حیث إنّ ألفاظ قصيدة الجواهري ومعانيها تجمع بين الرقة والقوّة، وقصيدة حافظ ألفاظها سهلة المأخذ وألصق بالأفهام، ومن الناحية المعنوية فكلّ منهما أبرز ما يختلج في خاطره تجاه موضوعه الشعري، ومن الناحية التصويرية، فقصيدة الجواهري تتمتّع بالصور الشعرية المكثّفة، بيد أنّ قصيدة حافظ تقع دونها كمًّا وكيفًا، وتبيّن أنّ المذهب الشعري عند الجواهري يجمع ما بين الكلاسيكية والحداثة، فكانت شخصيته ما بين الظهور والخفاء، ومذهب حافظ الشعري لا يعدو عن الكلاسيكية؛ وعليه فقد غابت شخصيته وراء الأطر التقليدية.

When structural reforms of labor markets harm productivity. Evidence from the German IAB panel

Abstract We find firm-level evidence that removing labor market rigidities can harm productivity growth. This holds, in particular, in industries with a high ‘cumulativeness’ of knowledge, i.e., when accumulation of worker-embodied (and often ‘tacit’) knowledge from experience is important for innovative competencies. We conclude that there is a trade-off between the efficient allocation of scarce resources in a static neoclassical perspective and dynamic Schumpeterian efficiency, the latter requiring rigidities in labor markets that are valuable for innovation.

Türkiye'nin Çevrenin Korunması-Büyüme İkilemi: Algıların ve Etki Eden Faktörlerin Analizi

This study analyzes the determinants of individuals' perceptions towards the dichotomy of achieving economic growth and environmental preservation in Turkey. Using logistic models, the study investigates the impact of various socio-economic and socio-demographic factors such as material well-being, life satisfaction, age, gender, education level, employment status, settlement type, religiosity, and political view on individuals' attitudes towards prioritizing the environment. The results of logistic regression analysis, based on a sample of 1.935 participants obtained using the World Values Survey, wave 7, indicate that individuals with higher material well-being and life satisfaction in Turkey tend to prioritize the environment over growth. The findings of this study confirm the neoclassical perspective on environment for the Turkish cohort, which indicates the environment can be accepted as a luxury good. Additionally, it is found that individuals aged 60 and above, part-time workers and retirees, those who do not identify as religious, highly educated individuals, those with more children, and individuals with a left-wing ideology are more inclined to prioritize environmental protection over economic growth compared to each category's reference group. On the other hand, no statistically significant differences based on settlement type (urban-rural dichotomy) or sex were detected in prioritizing environmental preservation over economic growth. The findings of the study indicate that, in designing Turkey's macro-level growth and environmental policies, socio-economic and demographic disparities need to be taken into consideration.

The classical and neoclassical perspectives: A theoretical framework for studying the advent and growth of mobile money—The Tanzanian experience

AbstractThe article addresses the need for comprehensive analytical frameworks or perspectives in mobile money research. It also proposes and develops a conceptual framework utilizing classical and neoclassical perspectives. The interdisciplinary nature of mobile money studies and the need for robust analytical frameworks or perspectives pose a significant challenge to researchers, creating a political‐economic gap in analyzing mobile money. In this case, classical and neoclassical mindsets bridge this gap in mobile money analysis. Moreover, the article also addresses the following research question: How have classical and neoclassical perspectives influenced the emergence and growth of mobile money in Tanzania throughout the past 15 years? The argument posits that implementing and dismantling neoliberal policies have facilitated the introduction and advancement of mobile money, drawing upon classical and neoclassical principles. In‐depth, unstructured interviews and content analysis from relevant and scholarly sources have been used as data collection methods. Thematic analysis has also been used for data analysis. The findings indicate that researchers can rely on classical and neoclassical perspectives to analyze mobile money's advent, growth, and consolidation. The implications are that classical and neoclassical perspectives provide a context and a unit of analysis that can be used to study the political‐economic issues of mobile money and other digital financial innovations.

Skilled Migrants and Their Encounters with Care and Employment Regimes: Childcaring among Highly Skilled Female Migrants from Korea in Germany

By analysing the childcaring experiences of female skilled workers from South Korea (hereafter, Korea) in Germany, this paper maintains that the challenges in labour market participation for highly skilled women, and especially those with children, should be understood in the context of their encounters with similar and different care and employment regimes between their home and host countries. On the theoretical level, this research confirms the argument that the migration of highly skilled workers should be contextualized not from a neoclassical perspective in which the maximization of economic profits takes priority, but from an institutional point of view in which social and cultural norms, practices, and policies in both the home and host societies are taken into consideration. Specifically, through a series of in-depth interviews conducted with skilled female migrants from Korea, this paper highlights the significance of taking the function of similar and different caring and employment regimes into account in explaining the challenges faced by highly skilled migrant women in labour market participation. On the empirical level, this paper sheds light on the migration experiences of skilled women from Asia as well as the (dis)integration processes of newcomers from third-national countries in Germany, with a focus on female migrants from Korea.

Mapping modern economic rents: the good, the bad, and the grey areas

Abstract There is increasing consensus that modern capitalist economies suffer from excessive rent extraction in both financial and real economy sectors. However, scholars have yet to develop a coherent analytical framework for identifying the common characteristics of modern economic rents. In particular, there has been little attention paid to distinguishing ‘good’ rents—key to innovation and growth—from ‘bad’ forms which contribute to economic stagnation and inequalities of wealth and income. This paper takes some first steps in this direction. We first review the existing rent theory most pertinent to this distinction, including classical political economy, the early twentieth century institutionalists, neoclassical perspectives and Keynes’s analysis of financial rentiers. Secondly, we map and conceptualise some key stylised features of modern rents, drawing on descriptive empirical evidence. We then identify the key questions that these developments raise for rent theory, elaborating a new research and policy agenda.

Addressing the need for more nuanced approaches towards transit‐induced gentrification: A case for a complex systems thinking framework

AbstractThe role of public transportation has shifted over the last 2 decades as planners and policymakers increasingly integrate new transportation infrastructure as an economic growth tool that promotes density and desirability. This shift has also positioned new infrastructure as a driver for neighbourhood change and gentrification, leading to the evolution of literature that explores transit‐induced gentrification. As this scholarship grows however, research has become fragmented, as the political economy work, which frames much of gentrification, is antipathetic to the neoclassical perspective that frames transportation research. The resulting inconsistencies have left researchers calling for the integration of new and holistic approaches that can address growing gaps. With transit‐induced gentrification becoming more prevalent across large and mid‐sized cities, and research lacking methodological consistency, this review considers: Can a complex systems thinking framework be used to better understand and address the process of transit‐induced gentrification?

Hukou transfer intention of rural migrants with settlement intention in China: How cities’ administrative level matters

This paper is the first to investigate the role of China's top-down model captured by cities' administrative level in the hukou transfer intention of rural migrants with settlement intention. We develop a conceptual framework and attribute rural migrants' decision on hukou transfer to a comprehensive evaluation of the benefit, risk, and opportunity. Using a Multilevel Logistic Regression, the empirical study uncovers that the impact of cities' administrative level comprises direct effect and moderating effect. The direct effect highlights the benefit of hukou transfer, through which cities' administrative level positively affects rural migrants' hukou transfer intention. The moderating effect underlines both the benefit and risk of obtaining urban local hukou, through which cities' administrative level shapes the relationship between marital status/migration type/arable land/homestead/household income and hukou transfer intention. Our work offers an international insight into rural migrants' settlement by revealing the role of cities' political system in shaping the stratification of the distribution of permanent migrants at the city level. It also contributes to the knowledge of the neoclassical perspective in migration studies by considering rural migrants' long-term cost-benefit balance on settlement.

Mapping Social-Ecological-Oriented Dried Fish Value Chain: Evidence from Coastal Communities of Odisha and West Bengal in India

The production and trade of dried fish are important sources of livelihood and employment for poor people engaged in the dried fish value chain. More importantly, half of them are women. Dried fish makes a significant contribution to the food and nutrition security of the poor because it is high in calcium and other vital micronutrients. Despite its importance, work on the dried fish value chain (DFVC) continues to focus on financial value creation and linear interactions among market actors that impede the recognition of human rights, justice, food security, and power across the entire value chain. Such a neoclassical perspective on DFVC tends to undermine the complex human-nature interactions that are contingent upon specific histories, people, places, and practices. Poor fishers and dried fish processors placed at the extractive end of the value chain hold low power in the market and remain vulnerable to changing social-ecological system dynamics. The recent work on a hybrid framework of social-ecological system-oriented dried fish value chain (SESDFVC) makes a departure from the conventional dried fish value chain framework. It values dynamic resource contexts, considers upstream actors as active collaborators, and expands the notion of value to include the social-ecological wellbeing of the value chain actors. This paper, with a mixed method research framework, provides an empirical outlook of the dried fish value chain in relation to SES attributes in the context of the eastern Indian coast of the Bay of Bengal, including Odisha and West Bengal, India.

Behavioral economics and finance: a selective review of models, methods and tools

Purpose This paper aims to survey literature on behavioral economics and finance, with particular emphasis on a selection of models, methods and tools that this strand of thought uses to approach and explain observable phenomena. Design/methodology/approach After a brief discussion on the meaning and context of behavioral economics, the manuscript identifies five topics of special interest: time preference, heuristics, emotions, finance and macro behavior. For each of these topics, relevant models, methods and tools are identified and scrutinized. Findings Behavioral economics and finance establish an effective bridge between orthodox economic thinking and new and revolutionary methods of analysis. Exploring the intricacies of human behavior can frequently be done by adapting the trivial and conventional intertemporal utility maximization models that economists insistently resort to, but to fully grasp such intricacies, a step forward is required. Agent-based models and other tools from complexity sciences constitute the analytical arsenal that is needed to improve our understanding of how behavioral issues attach to heterogeneity, local interaction, path-dependence, out-of-equilibrium dynamics and emergence. Originality/value Although surveys on behavioral economics and finance abound in the specialized literature, this study has the peculiarity of emphasizing five relevant topics that are particularly illustrative of the pivotal role of behavioral science in promoting the transition from the strict neoclassical perspective to a less mechanic and more organic view of economics and finance.

The aging tax on potential growth in Asia

Population aging is becoming a prominent issue in Asia, especially for developing countries where demographic changes have asserted a downward pressure on the rate of growth. This paper refers to such potential unwanted effects as an “aging tax” and analytically examines them from a neoclassical perspective, using a Diamond-type overlapping generations model with endogenous retirement, survival rate, and old-age productivity. Based on this setup, negative impacts exist if too many old workers that are sufficiently unproductive choose to defer retirement under the aging pressure, which drains resources from future generations. Numerical simulations show that an aging tax can reduce the potential per capita growth rate (technology-adjusted) by up to 0.12 percentage points annually for some countries in Asia. Our results highlight that countries with sufficiently large labor shares (due to a high ratio of self-employment or a manual labor-centric production) and inadequate educational attainment are potentially the most sensitive and vulnerable to population aging.

NFTs and Value

NFTs and Value

From utilitarianism and neoclassical sport management to a new geopolitical economy of sport

ABSTRACT Research question In a fast-changing world, this study poses a simple question: is it time to start looking at sport in a different way? Thus far, utilitarian and neoclassical economic thinking has dominated sport management scholarship; however, here it is asked: should scholars now be thinking in terms of a new geopolitical economy of sport? Research methods This is a commentary paper based upon pieces of literature drawn from sport management, geography, politics and economics. Results and findings The submission contends that scholarly activity in sport needs to be reoriented towards a new perspective – the geopolitical economy of sport. Whilst not dismissing the relevance of existing utilitarian or neoclassical perspectives, it is argued in this study that how scholars conventionally view sport must change to maintain the relevance of their research and scholarship. Implications In addition to exploring the implications of conceiving sport as a geopolitical economy, the following five areas are identified in which there are significant implications (hence further research is needed): Sport as an outcome of geography; Sport as a focus for soft power, diplomacy and trade; Sport as a networked geopolitically economic activity; Sport as the basis for achieving national competitive advantage; Sport as a means of acquiring resources.

A neoclassical perspective on Switzerland\u2019s 1990s stagnation

We study Switzerland’s weak growth during the 1990s through the lens of the business cycle accounting framework of Chari et al. (Econometrica 75(3):781–836, 2007). Our main result is that weak productivity growth cannot account for the 1993–1996 stagnation episode. Rather, the stagnation is explained by factors that made labour and investment expensive. We show that increased labour income taxes and financial frictions are plausible causes. Holding these factors constant, the counterfactual annualized real output growth over the 1993Q1–1996Q4 period is 1.93% compared to realized growth of 0.35%.

Reflecting on perceived failure of entrepreneurship development initiatives to help ignite economic development in Malawi

This study reflects on the perceived failure of entrepreneurship development initiatives to help ignite economic development in Malawi. A cross-sectional survey of 337 enterprises collected top-of-the-mind definitions of entrepreneurship, and innovations and their values carried out. Content analyses, comparison of mean values, 2 independent samples tests and multiple linear regression analyses showed that entrepreneurship is perceived as starting and managing one’s own business; being self-employed. Carrying out innovations is low and of low value, but enterprises which carried out innovations had higher median values than those that did not. The study found opportunity-motivated, growth-oriented, limited liability enterprises in the medium-to-large size category to be productive types of enterprises, but there were very few. It is argued that initiatives fail to help ignite economic development because knowledge which guides entrepreneurship development misses the essence of entrepreneurship—carrying out innovations. Secondly, there are no initiatives to support SME innovation and growth through product development, investments in modern production facilities and access to export markets. It is encouraged that key stakeholders adjust their understanding of entrepreneurship to neoclassical economic perspectives, encourage innovative start-ups and provide support to grow the numbers of productive enterprises.

From the Classics to New Tunes: A Neoclassical View on Sharing Economy and Innovative Marketplaces

Operations management has the tradition of coming from and going back to real‐life applications. It deals with the management of the process of matching supply with demand. The emerging business process in a sharing economy or an innovative marketplace calls for active management at the operational level. We take a neoclassical perspective by drawing inspiration from the classic models in operations management and economics. We aim at building connections and identifying differences between those traditional models and the new applications in sharing economy and innovative marketplaces. We also point out potential future research directions.