scholarly journals Hybrid organizations as effective intermediate institutions: Evidence from Eastern Asia

2021 ◽  
Vol 13 (1) ◽  
pp. 110-130
Author(s):  
Daniil A. Sitkevich ◽  
◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
System Analysis ◽  
Subsequent Development ◽  
Developed Countries ◽  
Hybrid Organizations ◽  
Economic Policies ◽  
Positive Role ◽  
Asian Tigers ◽  
The Impact

Introduction: the article examines the impact of hybrid organizations on the economic dynamics of Eastern Asian countries. Objectives: to assess the effectiveness of hybrid organizations as intermediate institutions that promote economic development, to describe the transformation of hybrids as they are modernized. Methods: dialectical method, system analysis, case study method, induction method. Results: the positive role of hybrid organizations in catching-up economic development is revealed; it is shown that hybrids serve as intermediate institutions that either transform or hinder economic growth as modernization progresses; possible economic policies to support hybrids are described. Conclusions: hybrid organizations are common in many countries and regions with a predominance of traditional regulators which have managed to reach the development path of developed countries. Thus, hybrids are country specific for the “Asian tigers” – Japan (in the form of keiretsu), South Korea (in the form of chaebols), Taiwan (in the form of clusters) as well as for China (in the form of industrial areas). At the same time, in most cases, hybrid institutional agreements serve as intermediate institutions – relying on existing social ties, they promote economic growth, but as they modernize, they either undergo changes or hinder subsequent development. The analysis of the presented cases also shows that the state can contribute to the formation of hybrids in various ways – from creating infrastructure to supporting the export activities of firms.

scholarly journals THE ROLE OF BANKS AND SECURITIES MARKETS IN THE POST-TRANSITION ECONOMIES OF EASTERN EUROPE

2020 ◽  
Author(s):  
Sasho Arsov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Eastern Europe ◽  
Banking Sector ◽  
Positive Impact ◽  
Financial Sector ◽  
Securities Markets ◽  
Positive Role ◽  
The Impact

Economic theory predicts that the development of the financial sector should have a positive impact on the overall economic development. Research has predominantly confirmed this expectation, with the remark that at earlier stages of economic development this impact should be higher, while a disproportionate banking sector has detrimental effect on growth through its impact on attracting highly skilled workforce, increased presence of moral hazard and the associated banking crises. This issue has been studied only occasionally in the case of the former socialist economies of Central and Eastern Europe and the former USSR. This paper represents an attempt to analyze the impact of the banking sector and securities markets development on the economic growth of these countries. A sample of 22 countries is assembled, using data from 1995 to 2018 and a panel regression and a GMM technique are used to derive conclusions on the researched topic. The analysis has shown that the banking sector has played a positive role in the economic growth throughout the analyzed period, while the role of the stock market is not significant. This is in line with the previous studies which have confirmed that the positive role of the securities markets should be expected only at higher levels of economic development. Also, the impact of the overall financial sector is deemed to be positive.

scholarly journals Factors in Innovative Development of a Region

REGIONOLOGY ◽  
2019 ◽  
Vol 27 (4) ◽  
pp. 661-677
Author(s):  
Irina B. Yulenkova
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
System Analysis ◽  
Necessary Conditions ◽  
Innovative Development ◽  
Regional Innovation ◽  
Factors Affecting ◽  
Comparison Results ◽  
Socio Economic Development ◽  
The Impact

Introduction. Innovation is one of the necessary conditions for economic growth and development of society. Depending on the level of processes of innovation, directions and pace of development of regions are determined in terms of qualitative transformations and the increase in basic economic indicators. The necessary conditions for innovative development and sustainable economic growth in a region include identification of factors affecting innovative activities. In this regard, the study of innovative development of regions is of particular importance and relevance. The purpose of this research is to substantiate the systematic approach to the classification of factors in innovative development of regions in the context of their influence on sustainable socio-economic development of territories. Materials and Methods. The object of this research was innovative development of a region exemplified by the case of the Republic of Mordovia. Regional statistics was used as the information base for the research. The study employed the methods of factor and system analysis, expert survey, planning, forecasting and comparison. Results. The features of the innovative development of a region have been determined. The factors affecting the innovative development of a region have been classified. According to the author, using the indicated factors makes it possible to develop a strategy for the growth of innovative activities in a region. The factors have been analyzed and it has been proved that they affect the level of regional innovation processes. Discussion and Conclusion. Determination of the institutional conditions and the impact of internal and external factors, identifying the optimal level of correlation of maximum income and minimum costs will lead to the expansion of innovative activities of enterprises in a region, which will ensure the innovative and socio-economic development of the region. The results obtained serve as the basis for assessing the attractiveness of a region in terms of investment and provide a forecast for the impact of innovation on the regional growth. The results of this research have practical relevance and can be used in the practice of stimulating innovative activities in regions.

Civilization challenges to global economic development

2020 ◽  
pp. 131-142
Author(s):  
Maksym A. Zhyvko ◽  
Andriy R. Zastavnyy ◽  
Oleh V. Ivashchuk
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Developed Countries ◽  
Survey Study ◽  
Main Element ◽  
Modern World ◽  
Negative Consequences ◽  
The World ◽  
The Impact ◽  
Religious Differences

The geospace stratification substantiate and its spatial differences reveal based on the analysis of the economic growth dynamics. The impact of the COVID-19 pandemic on the slowdown in economic growth confirmed and its negative consequences for the investment sphere clarified, because the ability of countries to respond adequately to these processes is different. It has been determined that under the globalization influence, the world acts as a single whole, and the core of developed countries and the periphery is formed as well as local civilizations are transformed. Attention focuses on the research of the values problems that determine the state of society development. The research of the essential characteristics of civilizations carried out and the ideas of the main European civilizational schools characterized. Based on M. Rokeach’s concept, the features that characterize values are determined. It confirmed the values that dominate in society are the main element of culture. The model for measuring the cultural variability of the cross-cultural plane, which was developed by the Dutch psychologist G. Hofstede, is detailed, and the influence of cultural characteristics on the new economy formation is analyzed. The «World Values Survey» study has been assessed. It confirmed that, due to the impossibility of full-fledged self-realization of the individual, migration processes activated and their analysis shows a tendency towards growth. It substantiated that in the modern world the questions about the nature of the socio-cultural integrity of civilizations and civilizational ecumene, associated with religious differences and demographic processes, remain unresolved. An assessment of the demographic situation in the world carried out and its growing dynamics and regional asymmetries clarified. A spatial analysis of the distribution of countries in the global space with dominant religions carried out and the main trends in the world religions development revealed. The role of strengthening the intangible component in the structure of modern economic reproduction argues. It confirmed that the potential of the countries and the world development as a whole takes place in the process of deepening cross-civilization-integration processes. The main civilizational challenges of global economic development are formulated, they are formed under the multi-vector processes in the world, including: spatial asymmetry of countries’ development, universalization of values, socio-cultural differences, ethnic problems, religious differences, demographic and migration processes.

scholarly journals COMPETITION AS A FACTOR OF ECONOMIC GROWTH: THE WORLD EXPERIENCE AND UKRAINIAN REALITIES

2018 ◽  
Vol 2018 (8) ◽  
pp. 3-15 ◽  
Author(s):  
Anatoliі SHCHERBAK ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Developed Countries ◽  
Competitive Environment ◽  
Living Standard ◽  
Domestic Legislation ◽  
The World ◽  
Alternative Measures ◽  
Active Cluster ◽  
The Impact

The views of M. Porter on the importance of competition as a factor of economic development are analyzed. The policy of deregulation carried out by developed countries in recent decades was studied; its successes and limitations are noted. It is shown that implementation of the reform in Australia, aimed at development of competition, led to a significant improvement in economic indicators and increase in the living standard of the population. The OECD Toolkit for assessing the impact on competition has been analyzed. The Toolkit contains the methodology for identifying unnecessary restrictions on competition and developing the alternative measures to achieve the objectives. The state of competitive environment in Ukraine is researched. It is shown that restriction of competition and inequalities of its conditions significantly inhibit economic development. The reasons for rapid growth of Ukraine’s economy in 2000-2008 are analyzed. It is substantiated that one of the most important factors was the strengthening of internal competition as a result of reforms carried out in the 1990s. At the same time, the weakening of competition from the second half of the 2000s led to a decrease in competitiveness. The need for systematic work aimed at eliminating the anticompetitive norms from domestic legislation is substantiated. This work should be based on the OECD Toolkit to assess the impact on competition. It is emphasized that it is necessary to use only those tools that promote competition when implementing the policy. The necessity of active cluster support is substantiated.

scholarly journals NBU'S influence on economic growth through bank capital regulations

2020 ◽  
Vol 93 (8) ◽  
pp. 47-56
Author(s):  
L. Sus ◽  
◽  
Yu. Sus ◽  
M. Sapatsinsky ◽  
S. Cherepansky ◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Banking System ◽  
Developed Countries ◽  
Capital Adequacy ◽  
Necessary Condition ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Banking Institutions ◽  
The Impact

In crisis situations, stable and efficient functioning of banking institutions is a necessary condition for country’s economic growth. Capitalization is one of the important factors that creates a positive impact of the domestic banking system on economic development. The purpose of the study is to substantiate the patterns and differences in the strength and nature of the impact of capital adequacy requirements on the financial and economic development of countries. The key tasks include: research of capitalization indicatorsof the banking system of Ukraine; identification of the impact of bank capital adequacy on the financial and economic development of individual European countries and other highly developed countries. The research methods were: theoretical -study of foreign and domestic scientific literature, materials and publications, and empirical -measurement, comparison, grouping, rating, correlation and regression analysis.The article analyzes the essence of the concept of "bank capital" and identifies the peculiarities of its formation. The dynamics of equity and authorized capital of Ukrainian banks in recent years has been studied and the capitalization indicators of the banking system have been calculated. The structure of bank capital in terms of banking groups is presented. The share of equity of the largest banks in the banking system of Ukraine is calculated. The banks were grouped by the amount of capital in order to identify those banking institutions that need further additional capitalization. Prospects for the development of sources of growth of bank capital of state, foreign and private banks of Ukraine are analyzed and evaluated. The economic standards of the NBU (size of regulatory capital, adequacy of regulatory capital, adequacy of fixed capital) are characterized and the dynamics of regulatory capital indicators is presented. The rating of banks in Ukraine according to the highest and lowest indicator of regulatory capital adequacy is built. The results of the correlation between the capital of the banking system and the financial and economic indicators of development of a number of European and other highly developed countries are presented. The regularities and differences of the influence of banks' capital adequacy on the financial and economic development of countries using the method of correlation-regression analysis are characterized.Prospects for further research in this area are the improvement of existing or development of new economic and mathematical models to determine the forecast indicators of financial and economic development of the country when changing the supervisory requirements for capital adequacy of banks.

scholarly journals FDI and Economic Growth — Does the Quality of Banking Development Matter?

2014 ◽  
Vol 15 (3) ◽  
pp. 287 ◽  
Author(s):  
Nor Hakimah Haji Mohd ◽  
Soo-Wah Low ◽  
Abu Hassan Shaari Md Nor ◽  
Noor A. Ghazali
Keyword(s):  
Economic Growth ◽  
Developed Countries ◽  
Emerging Countries ◽  
Positive Role ◽  
Growth Effects ◽  
Net Interest Margin ◽  
The Impact ◽  
Banking Development

This study examines the role of banking development quality in the FDI-growth nexus from 1998 to 2009. Banking development quality is measured using two standardized intermediation  cost indicators and an index of banking development quality that is constructed based on the following indicators: overhead costs to total assets and net interest margin. The results for developed countries show that, on its own, FDI is negatively related to economic growth. However, when FDI is interacted with a banking development quality index, the quality of banking development is found to play a positive role in influencing the effects of FDI on economic growth. This suggests that the quality of banking development serves as an absorptive capacity that allows developed countries to benefit from the positive growth effects of FDI. On the contrary, for emerging countries, the findings indicate that banking development quality plays no role in influencing the impact of FDI on economic growth. This implies that the quality of banking development in emerging countries has yet to reach a level that allows it to importantly influence the growth effects of FDI.       

scholarly journals Globalization and economic growth in highly developed countries

2020 ◽  
Vol 74 ◽  
pp. 05025 ◽  
Author(s):  
Stanisław Swadźba
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Descriptive Analysis ◽  
Developed Countries ◽  
European Countries ◽  
Time Range ◽  
Medium Size ◽  
Socio Economic Development ◽  
The Impact

The main goal of this paper is to show the level of globalization, its changes and the impact of globalization on economic growth and socio-economic development in these countries. The following research methods were used: historical, literature, descriptive analysis and simple statistical methods. Statistical data used in this paper come from KOF Index of globalization, World Bank Database and Human Development Reports. The time range of research is 1990-2018. The research covered 16 countries of Western Europe, USA, Canada, Japan, Australia and New Zealand. The main findings of the study are as follows: Highly developed countries are the most globalized. The level of globalization in individual countries varies, but the differences are not large. The medium-size European countries are the most globalized, while non-European countries are the least globalized. Starting from the 1990s, the level of globalization has increased significantly. The highest increase was in the less globalized countries, the lowest in the most globalized ones. As a result, the differences between them have significantly decreased. Thus we can see the convergence in the sphere of globalization. The positive impact of globalization on economic growth and socio-economic development was not observed in this group of countries.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

Growth and Social Capital: Empirical Analysis of the Relationship

2019 ◽  
pp. 128-134
Author(s):  
Ksenia V. Bagmet
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Economic Development ◽  
Social Development ◽  
Empirical Analysis ◽  
Panel Data Analysis ◽  
Well Being ◽  
Developed Countries ◽  
International Institute ◽  
Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

scholarly journals Challenges and Sustainability of China’s Socio-Economic Stability in the Context of Its Demographic Development

Societies ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 22
Author(s):  
Andrea Čajková ◽  
Peter Čajka
Keyword(s):  
Economic Development ◽  
Pension System ◽  
Population Policy ◽  
Developed Countries ◽  
Economic Stability ◽  
Demographic Development ◽  
Demographic Challenges ◽  
Family Behavior ◽  
Socio Economic Development ◽  
The Impact

Like many developed countries in the world, China currently faces many serious demographic challenges that pose a potential risk to the country’s socio-economic development and stability. The current demographic development and trend is characterized by a change in the reproductive behavior of the population, characterized by a decline in birth rates, a change in family behavior, and a shift in the value system. This paper is aimed at identifying the impact of population policy and the degree of its influence on both the economic and social system of the country. Based on a deterministic approach, the findings reveal and demonstrate the serious demographic challenges facing China, and we are noting that there is no guarantee that parametric adjustments, such as shifting the retirement age, will de facto ensure the financial health of the pension system by preventing bankruptcy. We point out the risks and prospects for the sustainability of China’s socio-economic development based on an analysis of past and current Chinese demographic policy.

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