Economic development and complexity: the role of recombinant capital

2019 ◽  
Author(s):  
Anthony M Endres ◽  
David A Harper
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Open Economy ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Market Failure ◽  
Small Open Economy ◽  
Capital Formation ◽  
Function Concept ◽  
Government Failure

AbstractThe neoclassical aggregate production-function concept of capital is unsuitable for the study of economic development. We provide a more realistic account of capital formation in which development is understood as a disruptive, disequilibrium process of creating (not merely allocating or accumulating) capital and in which capital is conceived as a ‘recombinant’ process. We draw upon the seminal ideas of Schumpeter, Lachmann and Hirschman to formulate the notion of recombinant capital. Capital is a complex, emergent constellation of resource connections rather than a neoclassical ‘stock’. We conceptualise recombinant capital formation as a process of transforming connections in production structures. Capital structures are the unintended outcome of polycentric interactions among private entrepreneurs and government actors (managers of state-owned enterprises and political entrepreneurs). Recombinant capital formation and capital structures emerge endogenously from the creation and destruction of complex connections. The standard distinction between ‘market failure’ and ‘government failure’ is critically deficient in analysing the structural economic dynamics engendered by recombinant capital. The fertility of our conceptual framework is illustrated by a study of major structural change in a small open economy. This structural change arose from the interpolation of a new, large-scale manufacturing industry in a capital structure previously dominated by primary industries.

scholarly journals Cointegration and Structure in Norwegian Wage–Price Dynamics

Econometrics ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 29
Author(s):  
Marit Gjelsvik ◽  
Ragnar Nymoen ◽  
Victoria Sparrman
Keyword(s):  
Open Economy ◽  
Manufacturing Industry ◽  
Small Open Economy ◽  
Simultaneous Equation ◽  
Wage Bargaining ◽  
Cointegration Analysis ◽  
Macroeconomic Stabilization ◽  
Wage Formation ◽  
Equation Modelling ◽  
Simultaneous Equation Modelling

Wage coordination plays an important role in macroeconomic stabilization. Pattern wage bargaining systems have been common in Europe, but in different forms, and with different degrees of success in terms of actual coordination reached. We focus on wage formation in Norway, a small open economy, where it is custom to regard the manufacturing industry as the wage leader. We estimate a model of wage formation in manufacturing and in two other sectors. Deciding cointegration rank is an important step in the analysis, economically as well statistically. In combination with simultaneous equation modelling, the cointegration analysis provides evidence that collective wage negotiations in manufacturing have defined wage norms for the rest of the economy over the period 1980(1)–2014(4).

Czechoslovak industrial exports: structural change, re-orientation and specialization (1989 - 1992)

1996 ◽  
Vol 5 (3) ◽  
Author(s):  
Adam Slater
Keyword(s):  
Structural Change ◽  
Open Economy ◽  
Growth Rates ◽  
Rapid Growth ◽  
Transition Period ◽  
Small Open Economy ◽  
Considerable Extent ◽  
The West ◽  
Export Sector ◽  
Reorientation Process

Fostering a strong export sector is essential for the kind of small, open economy like post-communist Czechoslovakia (latterly the Czech and Slovak Republics). The CSFR export sector has to a considerable extent the defied expectations, of many of the more pessimistic commentators in regard to the expansion of exports to the West, as many industries with a previously poor record on the EC market have attained very rapid growth rates of exports to that market. Nevertheless, the evidence of section 3 points to a weakening of the reorientation process in 1992, and raises questions about the future of many of the industries which formerly exported largely to the CMEA area. Whilst the overall level of exports has been largely maintained in the transition period, export growth to the West has not allowed most of the CMEA-oriented industries to maintain their shares in total exports.

scholarly journals Labour turnover and workers' well-being in the Ethiopian manufacturing industry

2021 ◽  
Author(s):  
Sandra Kristine Halvorsen
Keyword(s):  
Economic Development ◽  
Industrial Development ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Qualitative Interviews ◽  
Well Being ◽  
Turnover Rates ◽  
High Turnover ◽  
Ethiopian Government ◽  
Labour Turnover

Manufacturing industry expansion is a central part of Ethiopia’s growth and transformation agenda due to its potential for accelerated economic development and large-scale job creation, in particular for women. However, the industry is experiencing extremely high labour turnover rates, which is hampering the prospects of a successful industrialization of the country. Understanding the reasons for the high turnover may give important insights into the industry workings and how factory employment affects women's economic empowerment and well-being. Using a combination of survey data and qualitative interviews, the study highlights three main reasons for the high turnover: unrealistic expectations about wages and work efforts, poor working conditions, and difficulties combining domestic responsibilities with factory employment. In order to achieve social and economic development through industrial development, the Ethiopian government and firm managers need to take action to handle the turnover problem, making factory jobs safe, profitable, and a place for competence development.

Growth and Structural Change in Pakistan's Manufacturing Industry : A Comment

1965 ◽  
Vol 5 (4) ◽  
pp. 659-662 ◽  
Author(s):  
Gustav F. Papanek
Keyword(s):  
Structural Change ◽  
Growth Rates ◽  
Consumer Goods ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Value Added ◽  
National Accounts ◽  
Differential Growth ◽  
Rate Of Growth ◽  
Major Industry

The Lewis and Soligo article [1] includes an estimate of the growth of all "large scale" industry followed by an analysis of the growth rates of the major industry groups: consumer goods, intermediate products, investment and related goods. These two parts of the article are not dependent on each other and the very interesting and excellent analysis of the differential growth rates of the subsectors would not be affected by bias in the overall growth estimates. Some questions can be raised about both parts of the article. Estimates of value added and rate of growth of large scale industry are of considerable importance to analyses of the Pakistan economy. Lewis and Soligo's estimate of the level of value added and its rate of growth is considerably higher than those of the Census of Manufacturing Industry (CMI), the National Accounts, and my own [2].

scholarly journals Growth, Trade, and Urban Development of Staple Regions

2013 ◽  
Vol 10 (2) ◽  
pp. 13-23
Author(s):  
Derek Hum ◽  
Paul Phillips
Keyword(s):  
Economic Development ◽  
Urban Development ◽  
Open Economy ◽  
Historical Development ◽  
Small Open Economy ◽  
Economic Structure ◽  
Regional Economies ◽  
Common Process ◽  
Trade Growth ◽  
Policy Guidance

Certain themes in historical and contemporary studies of the economic development of Canada remain important. Among these are the staple approach to interpreting Canadian economic development, the notion of Canada as a collection of regional economies, and the distinction between metropolis and hinterland. These themes are both fundamental and interrelated; indeed, they are manifestations of a common process — that of a resource-dependent economic expansion. This paper relates the urbanization and development of staple regions to such determinants as trade, growth, and economic structure. We integrate the metropolis-hinterland framework within the broader staple approach and provide a synthesis of various aspects of economic theory, particularly trade and economic structure, export-led growth of a small, open economy, and the disequilibrium dynamics of urban development — all reinterpreted within the special context of the staple economy. While our major aim is to provide a formal synthesis of the staple approach and urban development, ultimately for policy guidance, references to Canadian economic and historical development are made throughout.

scholarly journals Resilience of metropolitan, urban and rural regions: a Central European perspective

GeoScape ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 25-40 ◽  
Author(s):  
Jan Ženka ◽  
Adam Pavlík ◽  
Ondřej Slach
Keyword(s):  
Economic Development ◽  
Open Economy ◽  
Economic Performance ◽  
Structural Changes ◽  
Small Open Economy ◽  
Value Added ◽  
Global Production Networks ◽  
Rural Regions ◽  
Total Employment ◽  
Urban Regions

AbstractIn this article, we examine a relationship between population/economic size and resilience of Czech regions. More specifically, we ask if there are any significant differences among metropolitan cores and hinterlands, urban regions and rural regions in (post)crisis economic development in the period 2009–2013. Three aspects of resilience were considered: volatility of unemployment, renewal (increase in economic performance compared to other regions) and reorientation (measured by the intensity of structural changes in total employment). We found relatively small differences among particular types of regions and high intra-group heterogeneity. Specialized industrial urban regions exhibited the fastest economic growth in the (post)crisis period. Metropolitan cores lagged slightly behind, but experienced relatively stable economic development. Although rural regions exhibited the highest unemployment volatility, they did not lag behind in terms of value added growth. Regional resilience in a small open economy like Czechia seems to be predominantly driven by extraregional factors such as the position in global production networks and economic performance in particular industries or large transnational corporations.

scholarly journals Realization of Industry Export Potential in the Republic of Belarus: Trends, Factors, Perspectives

2019 ◽  
Vol 18 (1) ◽  
pp. 75-81
Author(s):  
I. S. Blagush ◽  
N. Ya. Kazhurо
Keyword(s):  
Open Economy ◽  
Industrial Production ◽  
Information Technologies ◽  
Manufacturing Industry ◽  
Small Open Economy ◽  
Mining Industry ◽  
Industrial Sector ◽  
Expert Assessment ◽  
National Strategy ◽  
The Republic

Main development trends and complex of internal and external factors influencing on export potential of the industrial sector in the Republic of Belarus have been revealed and determined on the basis of the analysis of national and international statistical databases and method for expert assessment. Relevance of the research is to demonstrate that industry creates a significant part of commodity exports in the small open economy of the Republic of Belarus which has adopted a course to post-industrialization as a national strategy. Absolute figures of the Belarusian export of services are 3.4 times lower than values of the commodity export, 92.4 % of which is provided by manufacturing industry. It is in the sphere of industrial production that we should look for the reasons of long-term trend to reducing physical and cost volumes of Belarusian export, deterioration of its commodity and geographical structure, negative balance of trade and account of current operations. Main positions of the Belarusian commodity exports which form 70 % of its volume to non-CIS countries are raw materials exposed to unstable price environment in the world market, although the mining industry accounts for only 1.2 % while the manufacturing industry creates 85.6 % of the sector’s gross output. The study refutes the conclusion that problems associated with implementation of an export potential of domestic industry should be explained by the crisis of industrial production, proving that post-industrialization, accompanied by a reduction, curtailment or cross-border transfer of industrial production, is not so clear and does not bring the expected macroeconomic results. Reindustrialization, achievement of a breakthrough in the use of information technologies for a new quality of industrial production, which involves reorientation of IT-sector in Belarus operating on the basis of an outsourcing model from external to domestic market and solution of problems concerning system modernization of industry must become a national strategy aimed at the development and implementation of the industry’s export potential.

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