Industrial Hubs, Urban Systems, and Economic Development

Author(s):  
Edlam Abera Yemeru

Urbanization and industrialization have followed interconnected pathways throughout history. In an urban era where cities concentrate the world’s population and economic activity, industrial hubs development will be inextricably associated with urban dynamics. Cities offer specific advantages that enable industrial productivity, but this is differentiated across the urban system. This chapter reviews the relationship between cities and industrialization, with a specific focus on the role of national urban systems in industrial hubs development. In doing so, it makes a case for a focus on cities and urban systems as key determinants of industrial hubs development and outcomes.

2020 ◽  
Vol 26 (8) ◽  
pp. 830-839
Author(s):  
E. Ya. Litau

Aim. The presented study examines and develops theoretical and methodological foundations that make it possible to distinguish innovative entrepreneurship among other economic phenomena.Tasks. The author identifies the specific features of entrepreneurship and its qualitative differences from other types of economic activity aimed at obtaining benefits, specifies the relationship between creative destruction and economic development, determines the attributes of innovative entrepreneurship.Methods. This study uses systematic analysis of professional literature on entrepreneurship to highlight the main attributes of entrepreneurial activity. The methodology of dialectical contradiction in its original Hegelian interpretation plays an important role in elaborating and substantiating the definition of entrepreneurship. The author considers innovative activity as creation of new values, which, according to the logic of dialectical development, destroy the old ones, triggering the process of economic development.Results. An approach to understanding the phenomenon of entrepreneurship is proposed, making it possible to distinguish this type of activity as significantly different from other types of economic activity, which may be externally similar but have different content. During the development of this approach, the concept of “anti-ideology” of entrepreneurship is introduced, which reflects the essence of innovative activity as a process of creative destruction. The necessary and sufficient attributes of entrepreneurial innovation are identified, making it possible to reflect the meaning of this phenomenon and verify this complex defining structural element in the system of economic relations. The study substantiates that the level of anti-ideology and public benefit can be used as criteria for assessing the significance of an entrepreneurial idea. A progressive model of anti-idea realization (PMA) is proposed based on the methodological principle. It can be used to develop an efficient system for evaluating startups within the framework of venture capitalism.Conclusions. Specification of the relationship between creative destruction and economic development is crucial to understanding the importance of innovative entrepreneurship. Each historical period creates its own demand for a specific type of entrepreneurs. The principle of anti-ideology, which lies at the heart of the PMA model, is key in identifying competitive commercial ideas, making it possible to focus resources and attention on projects that can make a significant contribution to economic development.


2021 ◽  
Vol 81 (319) ◽  
pp. 63
Author(s):  
Nancy Ivonne Muller Durán

<p>En este documento analizo la relación que existe entre el crecimiento económico, el comercio exterior y la capacidad tributaria. Sostengo que los impuestos no necesariamente distorsionan la eficiencia y que dependen de la actividad económica. Para documentar la hipótesis realizo cuatro modelos panel cointegrados para un grupo de 55 países y su subsecuente división de acuerdo con tres niveles de ingreso para el periodo de 1990-2018. Los resultados obtenidos muestran que el crecimiento económico es una condición <em>sine qua non</em> para determinar la capacidad recaudatoria pero no es suficiente en aquellos países con desigualdad económica. Por lo tanto, es necesario estimular el desarrollo económico y promover reformas fiscales progresivas.</p><p> </p><p align="center">THE COMPOSITION OF TAX EFFORT: EVIDENCE FOR A PANEL OF COUNTRIES.</p><p align="center"><strong>ABSTRACT</strong></p><p>This document analyzes the relationship between economic growth, foreign trade and tax capacity. It is argued that taxes do not distort efficiency and that they depend on economic activity. In order to empirically support our hypothesis, four cointegrated panel models are carried out for a group of 55 countries and their subsequent division according to three income levels for the period 1990-2018. The results obtained show that economic growth is a <em>sine qua non</em> condition for determining tax capacity, but it is not enough in countries plagued with economic inequality. Therefore, it is necessary to stimulate economic development and promote progressive fiscal reforms.</p>


2021 ◽  
Vol 65 (2) ◽  
pp. 141-155
Author(s):  
Damian S. Pyrkosz

The paper seeks to identify the role of cultural and social diversity in economic development. It starts by defining the terms that are critical to the analysis, including diversity, fractionalization, polarization, social diversity, cultural diversity and economic resources, as well as providing the most significant indexes thereof. The main body of the paper interprets the notions of cultural and social diversity in terms of being a valuable economic resource. Furthermore, it collects a vast body of literature to demonstrate the relationship between the cultural/social diversity and economic development with regard to adverse or positive impact on the latter. In regard to the negative impact of diversity, the paper identifies it in the area of social communication, social capital and networks, as it effectively causes a decrease in productivity and increase in social conflict and isolation. The positive link is demonstrated with examples in the areas of innovation, creativity, usage of complementary abilities and experiences, and their role in increasing productivity. The paper refers to numerous data sources, studies and indexes illustrating how the economic systems of various countries perform in the context of the paper’s subject-matter.


2016 ◽  
Vol 10 (2) ◽  
Author(s):  
Vlatka Bilas ◽  
Mile Bošnjak ◽  
Sanja Franc

The aim of this paper is to establish and clarify the relationship between corruption level and development among European Union countries. Out of the estimated model in this paper one can conclude that the level of corruption can explain capital abundance differences among European Union countries. Also, explanatory power of corruption is higher in explaining economic development than in explaining capital abundance, meaning stronger relationship between corruption level and economic development than between corruption level and capital abundance. There is no doubt that reducing corruption would be beneficial for all countries. Since corruption is a wrongdoing, the rule of law enforcement is of utmost importance. However, root causes of corruption, namely the institutional and social environment: recruiting civil servants on a merit basis, salaries in public sector competitive to the ones in private sector, the role of international institutions in the fight against corruption, and some other corruption characteristics are very important to analyze in order to find effective ways to fight corruption. Further research should go into this direction.


Author(s):  
Yasmine Mahmoud Elgazzar

    The paper illustrates the role of investment in the roads transportation sector development in Egypt. As the investments is considered an important source of external funding especially for countries that are characterized by low level of savings and investments like Egypt. As the country is seeking to attract many investments in order to work on the expansion and the construction of new urban communities and industrial centers. Egypt also is trying work on extending the roads networks between the different regions. The thing that made it a necessity for Egypt to attract the private investment sector as source to finance these investments in the transportation sector. To achieve the objective of the paper, both inductive and descriptive analytical approaches will be combined. The study concluded that there should be integration between economic activity plans and expansion plans in transport activities depending on the size of investment and also encourage the private sector to provide many investments to help the growth of industries, intensify investment and participate in the wheel of economic development.   ، ، ، ، ، ،


Author(s):  
Sajad Jamshidi ◽  
Maryam Baniasad ◽  
Dev Niyogi

Prior evaluations of the relationship between COVID-19 and weather indicate an inconsistent role of meteorology (weather) in the transmission rate. While some effects due to weather may exist, we found possible misconceptions and biases in the analysis that only consider the impact of meteorological variables alone without considering the urban metabolism and environment. This study highlights that COVID-19 assessments can notably benefit by incorporating factors that account for urban dynamics and environmental exposure. We evaluated the role of weather (considering equivalent temperature that combines the effect of humidity and air temperature) with particular consideration of urban density, mobility, homestay, demographic information, and mask use within communities. Our findings highlighted the importance of considering spatial and temporal scales for interpreting the weather/climate impact on the COVID-19 spread and spatiotemporal lags between the causal processes and effects. On global to regional scales, we found contradictory relationships between weather and the transmission rate, confounded by decentralized policies, weather variability, and the onset of screening for COVID-19, highlighting an unlikely impact of weather alone. At a finer spatial scale, the mobility index (with the relative importance of 34.32%) was found to be the highest contributing factor to the COVID-19 pandemic growth, followed by homestay (26.14%), population (23.86%), and urban density (13.03%). The weather by itself was identified as a noninfluential factor (relative importance < 3%). The findings highlight that the relation between COVID-19 and meteorology needs to consider scale, urban density and mobility areas to improve predictions.


2016 ◽  
Vol 11 (2) ◽  
pp. 214-231 ◽  
Author(s):  
Frank L. DuBois ◽  
Marcos Andre Mendes Primo

Purpose – State capitalism is an economic model that relies on the role of a strong central government to support chosen firms and industries with subsidies, tax benefits and other advantages to which non-favored firms or industries do not have access (Bremmer, 2010). From an economic development perspective state capitalism is often used to redirect economic activity to underdeveloped regions (Wickham, 2009; Chobanyan and Leigh, 2006; Porter, 2008). The purpose of this paper is to examine the case of the Brazilian shipbuilding to illustrate the use of state capitalism to direct economic activity. Design/methodology/approach – Using Porter’s diamond factor model the authors analyze the development of an economic cluster focussed on the shipbuilding industry in northeastern Brazil. Using interviews with company executives and archival information, the authors profile the investments and incentives that the government has made in this region with particular attention to the mechanisms and policy directives designed to support local involvement in cluster activity. Findings – The authors find that the Brazilian shipbuilding industry offers a unique perspective on the role that governments play in the inducement of economic activity. The authors document the challenges that confront the local enterprise in meeting the requirements of the state controlled buyer and the difficulties associated with developing a local supplier base and finding a qualified workforce. The authors conclude with comments with regard to the applicability of this model to economic development activity in other country contexts. Research limitations/implications – This research adds to the body of literature on the role of governments in the creation of economic clusters. Practical implications – Economic development in emerging markets is often associated with strong government intervention. The authors use the Brazilian shipbuilding industry to illustrate the role of a state owned enterprise in facilitation of economic development. Social implications – Some countries may suffer from what has been known as the “resource curse,” that is, the misallocation of resource wealth into non-productive activities. In this paper, the authors illustrate and attempt by the Brazilian government to use this wealth to create employment opportunities in an underdeveloped region of the country. Originality/value – Emerging markets are challenged in developing viable enterprises that are competitive in global markets. Most research on the development of industrial clusters is focussed on developed markets. These markets do not have to confront the same challenges found in emerging markets. The research illustrates these challenges and the efforts that may be made to surmount them.


1967 ◽  
Vol 27 (4) ◽  
pp. 615-617 ◽  
Author(s):  
Ramon Knauerhase

One of the most important problems in the study of economic development is the role of technological change in the growth process. My dissertation is an analysis of some of the major variables which influenced the timing of the invention, adoption, and diffusion of the compound marine steam engine. The problem was divided into three parts: (1) all those variables pertaining directly to the invention of the engine, and the very first effects on the cost structure of the steamship industry; (2) the role of the compound marine steam engine in the growth of the German merchant fleet, 1872–1887, with special emphasis on the diffusion of the invention and its productivity effects; and (3) the effect of the compound steam engine on the sailing ship component of the German merchant fleet.


2013 ◽  
Vol 869-870 ◽  
pp. 439-442
Author(s):  
Kong Jian Li ◽  
Yaou Qi

This article investigates how the scale and structure of energy production influence on sustainable economic development in China. First and foremost, the relationship between energy production and economic development was discussed in theory, and a time-varying parameter state space model was established. Then an empirical study based on the annual data from 1981 to 2012 was carried out by using method of Kalman filter. The results indicate that both the increasing scale of energy production and the increasing proportion of new energy have a positive and significant influence on Chinese economic growth. Finally, the thesis draws a conclusion that, expanding the scale of energy production and optimizing the structure of energy production will significantly promote China's sustainable economic growth.


2003 ◽  
Vol 41 (4) ◽  
pp. 555-586 ◽  
Author(s):  
Hege M. Knutsen

The article addresses possibilities and barriers to economic activity and development in the Oshana region of Northern Namibia. The focus is on the role of local embeddedness of economic activities in attaining economic development. A network perspective, based on theories of value chains that are embedded both in social relations and spatially, is selected as the analytical framework. The value chains of local black entrepreneurs in the study area are short. Moreover, the analysis reveals that social obligations may impede economic development, but that such practices are diminishing. The economic dominance and competition from South Africa is the main impediment to economic development in Northern Namibia. Local political embeddedness is shallow and political measures have not significantly reduced the implications of this dominance.


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