China's new bankruptcy rules will lift economic growth

2021 ◽  
Keyword(s):  
Economic Growth ◽  
National Level ◽  
Full Potential ◽  
Personal Bankruptcy ◽  
Content Type ◽  
Chinese Law ◽  
New Ideas ◽  
The Law ◽  
Fresh Starts

Significance Chinese law at the national level does not include provisions for personal bankruptcy. This prevents resolution of many insolvent companies that involve liabilities from heavily indebted individuals. There is no formal resolution of bankruptcies for sole traders and those unable to fulfil personal guarantees, nor a way for failed entrepreneurs and their families to make fresh starts. Impacts Government efforts to promote entrepreneurship and innovation will have more success as trialling new ideas becomes less risky. Realising the full potential of the law will require changes in attitudes to personal bankruptcy and removal of associated stigma. Implementation will be slower and more difficult in less-developed regions of China that lack Shenzhen's experience.

Divisions over EU defence integration look set to grow

2020 ◽  
Keyword(s):  
Economic Growth ◽  
National Level ◽  
Third Party ◽  
Content Type ◽  
Defence Spending ◽  
Defence Policy ◽  
Arms Exports ◽  
Security Relationship ◽  
Industry Integration ◽  
The Eu

Subject Future EU defence integration. Significance The Permanent Structured Cooperation (PESCO) and the European Defence Fund (EDF) have become key pillars of EU defence policy, but divergence between member states is increasingly making defence integration slow and limited. In addition, opposition towards third-party participation and arms exports, and uncertainty about the future EU-UK security relationship, threaten to diminish the capabilities of future EU defence projects. Impacts London’s exclusion from the EU’s Galileo project suggests Brussels does not want close UK collaboration in future EU initiatives. The EU will likely prioritise steps to enhance European defence industry integration in order to reduce duplication and overspending. National-level defence spending could stall over the coming years as a result of slowing economic growth across the euro-area.

Constructing a partially formalized general theory of the marketing system: insights from the history of marketing thought

2020 ◽  
Vol 12 (2) ◽  
pp. 263-283
Author(s):  
Eric H. Shaw
Keyword(s):  
Economic Growth ◽  
General Theory ◽  
Alternative Methods ◽  
Market Size ◽  
System Efficiency ◽  
Marketing System ◽  
Content Type ◽  
Marketing Systems ◽  
History Of ◽  
The Law

Purpose The purpose of this paper is to construct a general theory of the marketing system that addresses the fundamental question: why do marketing systems occur, survive and grow? Design/methodology/approach The approach integrates the concepts and constructs contained in special and mid-range theories, scattered throughout the history of marketing thought, into a logically coherent set of propositions (including definitions, axioms, theorems, scientific laws, bridge laws and hypotheses) that comprise a general theory of the marketing system. Findings The theoretical answer to why marketing systems arise, survive and grow is because marketing systems offer the most efficient mechanism for supplying products and services that people demand, thereby increasing economic growth, compared to the opportunity costs of alternative methods of acquisition. Based on just two (of several) marketing efficiency theorems, if the input costs of trading decline (law of reduced transaction costs) and/or the output value increases (law of bulk transactions), then marketing system efficiency rises. This creates an upward spiraling cycle: increasing the extent of the market (law of market size), proliferating opportunities for increasing aggregate production efficiency (through the law of comparative advantage and the law of division of labor), thereby further proliferating opportunities for aggregate marketing system efficiency (e.g. law of central markets, law of marketing specialists), thus fueling further aggregate economic growth (until limited by the law of diminishing returns, the law of the minimum resource or the law of market size). An empirically testable central hypothesis is derived from the propositions: increasing aggregate marketing system efficiency provides both the necessary and sufficient conditions for increasing aggregate economic growth in a society. Originality/value The value of developing a general theory of the marketing system is to advance the marketing discipline as a social science. Additionally, a general theory is likely to enhance academic thinking, improve business practice and facilitate interaction among academicians and practitioners. Further, a general theory could also reduce disciplinary fragmentation, avoid identity confusion and lessen the credibility crisis in marketing, among others.

How successful organizations drive innovation

2016 ◽  
Vol 44 (3) ◽  
pp. 9-19 ◽  
Author(s):  
Kazuaki Ikeda ◽  
Anthony Marshall
Keyword(s):  
New Technologies ◽  
Organization Culture ◽  
Operating Efficiency ◽  
Full Potential ◽  
Content Type ◽  
Business Objectives ◽  
Direct Reports ◽  
Revenue Growth ◽  
Innovation Activities ◽  
New Ideas

Purpose The authors analyze IBM research and outline how the most successful established organizations approach innovation and prescribe specific strategies that can help all organizations innovate like an outperformer. Design/methodology/approach In a 2014 survey of more than 1,000 C-suite executives and their direct reports, we found that the most successful organizations approach innovation differently. Findings The top six percent of organizations in both operating efficiency and revenue growth pursue distinct strategies in innovation organization, culture and process. Practical Implications For today’s business leaders, innovation blends the art and science of anticipating the future. It requires understanding what the full potential of new technologies will be, of knowing what customers need and want, even before they know it themselves. And it requires building organizational and ecosystem-wide capabilities to execute and deliver. Successful organizations align innovation activities with business objectives, and they are not afraid to experiment. Originality/value Outlines the best practices of the most successful innovators. For example, these, organizations align innovation activities directly with business objectives, pursue “open” innovation structures and create specialized innovation teams. They also source new ideas from diverse locations, often leveraging big data and analytics; innovation is funded separately and measured rigorously.

Fiscal adjustments, income inequality and economic growth: an empirical analysis of Japanese prefectures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patricia Kako Ouraga
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
National Level ◽  
Estimation Method ◽  
Policy Outcomes ◽  
Public Expenditures ◽  
Trade Off ◽  
Content Type ◽  
Fiscal Adjustment ◽  
Fiscal Adjustments

PurposeThis paper investigates the joint relationship between economic growth, income inequality and fiscal adjustments using a panel of 47 Japanese prefectures from 1998 to 2017.Design/methodology/approachTo assess jointly fiscal adjustment impacts on growth and inequality and to take into account the interdependence between these variables, the authors use a simultaneous equation model and estimate it by using the three-stage least squares estimation method.FindingsThe results show evidence of a trade-off between growth and inequality through fiscal adjustments. They reveal that first, fiscal adjustments have contractionary effects on growth. Second, they highlight the disparity between urban and rural taxpayers. Third, they provide evidence of a trade-off between fiscal adjustments and inequality through the labor market.Research limitations/implicationsBased on the literature, the composition of fiscal adjustments is a crucial factor in analyzing fiscal adjustment impacts on economic growth and income inequality. The authors do not consider this aspect in the analysis; however, fiscal policy outcomes variables are included as a workaround for this.Practical implicationsThese results suggest that authorities favor expenditure-based adjustments as they are less contractionary on the economy. Moreover, they should finance public expenditures through a tax on capital in order to mitigate fiscal adjustment impacts on inequality while promoting growth.Originality/valueThe paper is novel in testing the existence of a trade-off between economic growth and income inequality through fiscal adjustments at a sub-national level with an additional focus on urban and rural regions.

Chinese law lays ground to retaliate against sanctions

2021 ◽  
Keyword(s):  
Hong Kong ◽  
Digital Technology ◽  
Foreign Country ◽  
Research Institutions ◽  
Content Type ◽  
Mainland Chinese ◽  
Chinese Law ◽  
Technology Firms ◽  
The Law

Significance It outlines retaliatory measures and details their implementation and implications. It could have a major impact on individuals, organisations and governments that are heavily involved with China. Impacts NGOs and research institutions will face greater barriers to operating in China, hiring Chinese staff and working with Chinese counterparts. Businesses potentially face a choice between breaking the law in China or in the foreign country that imposed sanctions. Unlike most mainland Chinese laws, this one looks likely to be adopted in Hong Kong too, creating risks for foreign businesses there. Hong Kong and Xinjiang are the most likely focus of sanctions and counter-sanctions. Officials in Western capitals can expect increased lobbying from digital technology firms for a more moderate approach to China.

National culture, institutions and economic growth

2015 ◽  
Vol 4 (3) ◽  
pp. 331-351 ◽  
Author(s):  
Nataliia Ostapenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
National Economy ◽  
National Level ◽  
Informal Institutions ◽  
Cultural Dimensions ◽  
Causal Relationships ◽  
Content Type ◽  
Formal And Informal Institutions ◽  
Using Data

Purpose – The purpose of this paper is to examine the potential pathway of influence of formal and informal institutions and economic development on the business productive behaviour at the national level. Design/methodology/approach – In the paper SEM models and regression analysis are used to define the causal relationships. Using data from cultural dimensions of Hofstede, Inglehart and Tabellini, proxies for formal institutions and economic development this research empirically examines the way of influence of these factors on entrepreneurship performance in the national economy. Findings – This paper demonstrates that, stimulating by the economic growth, formal and informal institutions could affect business productive behaviour at the macro level in both direct and indirect ways through each other. Formal and informal institutions were found to act as substitutes. The author argues that the decision to act productively is not just a result of the formal institutional framework – “bad” outcomes of business development may also be a consequence of the activity of certain informal institutions as well as caused by poor levels of national economic development. Practical implications – Based on the findings of this research it is possible to improve the methods of formation of stimulation policy for driving business behaviour in a productive way by taking into account existing formal and informal institutions and the level of development of the national economy. Originality/value – This paper by using SEM techniques examines the causal relationships between the quality of formal and informal institutions and productivity of entrepreneurs at the national level.

scholarly journals Understanding political influences on Southeast Asia's development experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dwight Perkins
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
The Philippines ◽  
Southeast Asian ◽  
Full Potential ◽  
Asian Countries ◽  
Content Type ◽  
High Performing ◽  
Per Capita ◽  
Southeast Asian Countries

PurposeThe per capita GDP of the nine countries of Southeast Asia varies from less than $5,000 to over $97,000. One reason some have higher income than others, notably Singapore and Malaysia, relates to development that occurred prior to the Second World War. Using a comparative political economy approach or methodology, the essay concludes that the major reason for the variation was that six of the countries experienced major sustained disruptions resulting from extreme politics and political instability. These included wars, kleptocratic governments and leaders more interested in ideology or foreign policy than economic growth.Design/methodology/approachThe four countries that avoided these extremes (Singapore, Malaysia, Thailand and plus tiny Brunei) have the highest per capita incomes today. Those that have had long periods of war and political instability but have also had substantial periods of growth (Indonesia, Vietnam and the Philippines) come next. The two comparatively poor countries of Cambodia and Laos suffered long periods of war and were the least developed to begin with. Myanmar's military rulers through civil wars and kleptocratic mismanagement of the economy have prevented growth that involved benefits for anyone other than the military and its cronies for most of its post-independence history.FindingsDuring the periods when the Southeast Asian countries enjoyed stable environments for investment, they have all grown rapidly faster than most of the countries in Africa and Latin America, but except for Singapore, slower than the high performing Northeast Asian countries. Other kinds of political goals reduced total factory productivity and the efficacy of investment, thus slowing growth below its full potential.Originality/valueThe author is not aware of any essay that has discussed economic growth for the nine Southeast Asian countries in this way.

Latin America cacao profits look set to disappoint

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
National Level ◽  
Viable Alternative ◽  
Extractive Industries ◽  
External Shocks ◽  
Andean Region ◽  
Content Type ◽  
National Governments

Subject Cacao production. Significance Development agencies, national governments and private firms across Latin America are committing to substantial investments to increase the region's cacao output. Such expenditure, motivated by years of high prices, is intended to bolster economic growth, tackle poverty and provide smallholders in the Andean region with an economically viable alternative to coca cultivation. Impacts Production at the sub-national level is likely to fluctuate as localised flooding and droughts affect parts of the Andean region. Lower cacao prices will complicate efforts to tempt Colombian farmers away from growing more profitable coca plants. Long-term, cacao crops could help reduce reliance on extractive industries, but will leave economies susceptible to external shocks.

Human capital inequality and economic growth: evidence with sub-national data from Thailand

2019 ◽  
Vol 46 (7) ◽  
pp. 938-956
Author(s):  
Md Nasir Uddin ◽  
Saran Sarntisart
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Gini Coefficient ◽  
National Level ◽  
Theoretical Background ◽  
Annual Data ◽  
Cross Sectional ◽  
Middle Income ◽  
Content Type ◽  
Years Of Schooling

Purpose The purpose of this paper is to find the effects of human capital inequality on economic growth. Design/methodology/approach Thailand Labor Force Survey has been used to generate provincial average years of schooling and Gini coefficient of years of schooling for the years 1995‒2012. Econometric techniques have been employed to identify the effects of human capital inequality on economic growth. Findings Economic growth is inversely affected by the distribution of human capital in Thailand. The coefficient of human capital inequality suggests that if Gini coefficient increases by 0.01 points, gross provincial product (GPP) decreases by about 2 percentage points in the long run. However, the effect of average years of schooling in GPP is not significant. Research limitations/implications There is a lack of strong theoretical background for the relationship between human capital inequality and economic growth to support the empirical study. Practical implications The findings of the study help to design and evaluate education policies in developing countries like Thailand and other low- and middle-income countries. Originality/value This paper is among the first attempts to analyze the effect of human capital inequality on economic growth with sub-national level annual data. In addition, it considers cross sectional dependence in panel model.

Contemporary Principles of Heterodox Political Economy

2009 ◽  
pp. 38-57 ◽  
Author(s):  
Ph. O’Hara
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Economic Development ◽  
Ethnic Discrimination ◽  
Mainstream Economics ◽  
Theoretical Perspectives ◽  
Analytical Review ◽  
New Ideas ◽  
Historical Specificity ◽  
Scientific Results

In this analytical review the author describes the main trends in the modern heterodox political economy as an alternative to mainstream economics. Historical specificity as well as the contradictory and uneven character of economic development are examined in detail. The author also discusses problems of class, gender and ethnic discrimination and their influence on economic growth. It is shown that there are tendencies to convergence of different theoretical perspectives and schools, common themes, topics of research and conceptual apparatus are being formed. The forces of integration and differentiation help establish new ideas and receive interesting scientific results in such fields as development economics, macroeconomics and international economics.

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