Innovation and the Three Detours for Economic Growth beyond the Middle-Income Stage

2020 ◽  
pp. 48-68
Author(s):  
Keun Lee
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Middle Income ◽  
The Third ◽  
Advanced Economies ◽  
Patent Rights ◽  
Narrow Passage ◽  
Catch Up ◽  
High Level ◽  
Fully Coupled

This chapter begins by acknowledging the differences in the economic growth mechanisms employed by advanced economies and latecomer economies at middle- or lower-income stages and by highlighting a very “narrow passage” between these countries. The chapter explains the nature of the narrow passage in terms of three detours. The first detour is promoting imitative innovations in the form of petit patents and trademarks instead of trying to promote a high level of IPR protection, including patent rights. The second detour is first promoting domestic value-added and reducing a country’s reliance on GVCs before an economy is fully coupled with GVCs. The third detour is specializing in short-cycle technology-based sectors instead of trying to directly enter long-cycle technology-based sectors/segments. While the consolidation of technological capabilities has long been suggested as a vital requirement for economic catch-up, this chapter shows that such consolidation must be carefully designed and implemented.

Wither Convergence?

2016 ◽  
pp. 1-24
Author(s):  
Francisco C. Sercovich
Keyword(s):  
Economic Growth ◽  
Global Convergence ◽  
Industrial Revolution ◽  
Developing Economies ◽  
Middle Income ◽  
Catching Up ◽  
Advanced Economies ◽  
Main Driver ◽  
Global Economic Growth ◽  
First Time

For the first time since the industrial revolution, emerging economies are the main driver of global economic growth. For all its significance, this cannot be taken as an indicator of global convergence, since it resulted essentially from the successful catching-up processes of just a few Asian countries over the last few decades, whilst the productivity and income of the bulk of the developing economies have lagged persistently behind those of the advanced economies. The former continue to have the potential to grow faster than the latter, but realizing this potential on sustainable basis makes it necessary to meet a number of increasingly stringent conditions. Grounds for optimism are considerably less solid today than was the case in the recent past. This is highlighted by the large number of countries locked-up in the ‘middle-income trap”. This chapter offers a fresh view of this phenomenon, examines the nature of the conditions required for the potential for catching-up of middle-income economies to be realized, and attempts to arrive at a realistic outlook on this matter.

scholarly journals Assessment of the Impact of Environmental Pollution on Economic Growth

2017 ◽  
Vol 9 (3) ◽  
pp. 68-80
Author(s):  
Olga Kudryavtseva ◽  
E. . Ivanov ◽  
D. . Kolesnik ◽  
E. . Matveev ◽  
S. . Pechenkin ◽  
...  
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
World Bank ◽  
Turning Point ◽  
Middle Income ◽  
Middle Income Countries ◽  
Econometric Methods ◽  
The World Bank ◽  
High Level ◽  
The Impact

The work is devoted to testing the hypothesis of the existence of an inverted U-shaped dependence of economic growth on the level of environmental pollution, which was based on the concept of the ecological curve of Kuznets. The authors, using econometric methods and data from the World Bank, show that the hypothesis is correct: there is a turning point between the positive and negative nature of the dependence of economic growth on the level of CO2 emissions. The hypothesis is confirmed for low- and middle-income countries, and the dependence is linear negative for countries with a high level of income. Based on the results, the authors formulate recommendations on environmental regulation in accordance with the level of the country's economic development.

Hungarian economic stimulus measures will leave gaps

2016 ◽  
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Unemployment Rate ◽  
Value Added ◽  
The State ◽  
Gdp Growth ◽  
State Budget ◽  
Content Type ◽  
The Third ◽  
The Government

Subject The series of tax-related measures that the Fidesz government hopes will boost competitiveness and support GDP by reducing labour shortages. Significance Following disappointing economic growth of just 2.2% on an unadjusted basis in the third quarter, owing to a larger-than-expected drop in investment, Fidesz’s latest tax-related measures are well-timed, since the economy is expected to slow in the final quarter of 2016. The government insists no amendments will be needed in the state budget, and is now forecasting 3.1% GDP growth in 2017, after 2.5% this year. Impacts Value-added tax cuts and rises in public-sector minimum wages will cause inflation to rise faster in 2017, as deflationary trends disappear. The unemployment rate is expected to bottom out as workers return from neighbouring countries. The government will need to make complementary reforms in education and privatising the state-dominated energy and telecoms sectors. If it does not, competitiveness as measured by wage growth and productivity will remain subdued.

GLOBAL VALUE CHAINS (GVCS) AND ECONOMIC GROWTH: A NONLINEAR ANALYSIS

2021 ◽  
pp. 1-20
Author(s):  
ZHUQING MAO
Keyword(s):  
Economic Growth ◽  
Value Chain ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Middle Income ◽  
Linear Pattern ◽  
The Relationship ◽  
Local Value ◽  
Nonlinear Pattern

This study examines the relationship between economic growth and participation in global value chains (GVCs) and demonstrates that the U-shaped nonlinear pattern of GVCs could be more effective than the simple linear pattern of GVCs in terms of economic growth in high- and middle-income economies. The U-shaped nonlinear pattern expresses that there are decreasing foreign-dominated GVCs (increasing high value-added domestic value chains) for building local value chain and then raise the GVCs participation to benefit at a better position in GVCs. This paper investigates a panel of 63 advanced and emerging economies and obtained significant evidence by using systemic quantitative analysis. This research suggests that emerging markets should decrease foreign-dominated GVCs (increase high value-added domestic value chain) and then raise the participation of the GVC for economic growth.

scholarly journals CHALLENGES IN PROMOTING ECONOMIC GROWTH OF GHANA THROUGH VALUE ADDED EXPORTS

2018 ◽  
Vol 6 ◽  
pp. 193-199
Author(s):  
Isaac Ibrahim ◽  
Haiyun Liu
Keyword(s):  
Economic Growth ◽  
Comparative Advantage ◽  
Raw Materials ◽  
Value Added ◽  
Secondary Data ◽  
Empirical Method ◽  
Value Addition ◽  
Middle Income ◽  
Factor Endowments ◽  
The World

Ghana is endowed with natural resources such as gold, cocoa, crude oil, and other factor endowments that gives the country a comparative advantage in trade. Ghana, a low-middle income country, is the second largest producer of gold in Africa and 11th in the world, as well as the second largest exporter of cocoa in the world. With all the factor endowments and export potential however, the country exports basically raw materials with little value addition and therefore is deprived of the full benefits accruing to trade and exports.This paper employs an empirical method and applies the Ricardian Model of Comparative Advantage using available secondary data to explore the importance of exports to the economic growth of the country and certain challenges of value addition. The findings show that exports promote economic growth as well as that value addition can be beneficial in earnings and needs government attention in following the recommendations therein.  

Cooperation Between Ukraine and the EU Towards Innovation-Driven Economic Development

2020 ◽  
pp. 243-269
Author(s):  
Lyubov Artemenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Cooperation ◽  
Labour Force ◽  
Value Added ◽  
Framework Programme ◽  
Cheap Labour ◽  
Catch Up ◽  
Energy Intensive Industries ◽  
The Eu

Innovation underpins productivity and lies at the heart of economic growth. Ukraine is far from the technological frontier. Its economy depends on energy-intensive industries, producing low value-added products, and using a relatively cheap labour force. As international cooperation is an important proxy of country's technological catch-up, this chapter aims to study ways of cooperation between Ukraine and the EU towards innovation-driven economic development. The chapter provides analysis of Ukraine's participation in EU 7th Framework programme and HORIZON2020. Special emphasis is assigned to the ability of Ukrainian participants to acquire, assimilate, transform, and exploit gained knowledge.

Der Einfluß der Inaktivitätsosteoporose auf die szintigraphische Darstellung knöcherner Verletzungen im Bereich des Handgelenks

1989 ◽  
Vol 28 (04) ◽  
pp. 124-128 ◽  
Author(s):  
J. Spitz ◽  
N. Clemenz ◽  
K. Tittel ◽  
H. Weigand
Keyword(s):  
Bone Scintigraphy ◽  
Plaster Cast ◽  
Scaphoid Bone ◽  
X Ray ◽  
The Third ◽  
High Level ◽  
Clinical Conditions ◽  
Rate Of Accumulation

In addition to its established oncological indications the sensitivity of bone scintigraphy is of steadily increasing significance in traumatology. Inactivity- induced osteoporosis plays a major role during the immobilization period in the plaster cast. In the region of the joints remodelling intensity may reach such a high level that the non-injured bone shows a higher rate of accumulation than the fracture. This process already begins between the third and fourth week of immobilization. The highest uptake is found after fracture of the scaphoid bone at the end of twelve weeks of immobilization. Control scintigraphies at intervals of several days are indicated to differentiate between various clinical conditions (pseudoarthrosis, activated osteoarthrosis, algodystrophy in case of doubtful x-ray results).

Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

2017 ◽  
Vol 8 (1) ◽  
pp. 225
Author(s):  
Teki Shala
Keyword(s):  
Economic Growth ◽  
Descriptive Analysis ◽  
Value Added ◽  
Analytical Techniques ◽  
Value Added Tax ◽  
Statistical Tool ◽  
Revenue Collection ◽  
Strong Positive Relationship ◽  
Level Of Economic Development ◽  
Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

Pakistan's Export Possibilities

1973 ◽  
Vol 12 (1) ◽  
pp. 1-30
Author(s):  
Syed Nawab Haider Naqvi
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Policy Maker ◽  
Time Horizon ◽  
Price Level ◽  
Balance Of Payments ◽  
Domestic Saving ◽  
Trade Offs ◽  
High Level

The recent uncertainties about aid flows have underscored the need for achieving an early independence from foreign aid. The Perspective Plan (1,965-85) had envisaged the termination of Pakistan's dependence on foreign aid by 1985. However, in the context of West Pakistan alone the time horizon can now be advanced by several years with considerable confidence in its economy to pull the trick. The difficulties of achieving independence from foreign aid can be seen by reference to the fact that aid flows make it possible for the policy-maker to pursue such ostensibly incompatible objectives as a balance in international payments (i.e., foreign aid finances the balance of payments), higher rates of economic growth (Lei, it pulls up domestic saving and investment levels), a high level of employment (i.e., it keeps the industries working at a fuller capacity than would otherwise be the case), and a reasonably stable price level (i.e., it lets a higher level of imports than would otherwise be possible). Without aid, then a simultaneous attainment of all these objectives at the former higher levels together with the balance in foreign payments may become well-nigh impos¬sible. Choices are, therefore, inevitable not for definite places in the hierarchy of values, but rather for occasional "trade-offs". That is to say, we will have to" choose how much to sacrifice for the attainment of one goal for the sake of somewhat better realization of another.

Amiya Kumar Bagchi. The Political Economy of Underdevelopment. London: Cambridge University Press. 1982. Reprint 1983. pp.viii+276. List of books for further reading; Index. Price: £ 8.50 (paperback edition).

1985 ◽  
Vol 24 (1) ◽  
pp. 77-82
Author(s):  
Zia Ul Haq
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Third World ◽  
Social Process ◽  
Growth Strategies ◽  
Cambridge University ◽  
Working Classes ◽  
The Third ◽  
The Rich ◽  
The Third World

Amiya Kumar Bagchi, an eminent economist of the modern Cambridge tradition, has produced a timely treatise, in a condensed form, on the development problems of the Third World countries. The author's general thesis is that economic development in the developing societies necessarily requires a radical transformation in the economic, social and political structures. As economic development is actually a social process, economic growth should not be narrowly defined as the growth of the stock of rich capitalists. Neither can their savings be equated to capital formation whose impact on income will presumably 'trickle down' to the working classes. Economic growth strategies must not aim at creating rich elites, because, according to the author, "maximizing the surplus in the hands of the rich in the Third World is not, however, necessarily a way of maximizing the rate of growth".

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