Engel's Law in the Global Economy: Demand‐Induced Patterns of Structural Change, Innovation, and Trade

Econometrica ◽  
2019 ◽  
Vol 87 (2) ◽  
pp. 497-528 ◽  
Author(s):  
Kiminori Matsuyama
Keyword(s):  
Structural Change ◽  
Global Economy ◽  
Income Elasticity ◽  
Value Added ◽  
Productivity Change ◽  
Poor Countries ◽  
Product Cycles ◽  
Directed Technical Change ◽  
Nonhomothetic Preferences ◽  
Demand Composition

Endogenous demand composition across sectors due to income elasticity differences, or Engel's Law for brevity, affects (i) sectoral compositions in employment and in value‐added, (ii) variations in innovation rates and in productivity change across sectors, (iii) intersectoral patterns of trade across countries, and (iv) product cycles from rich to poor countries. Using a two‐country model of directed technical change with a continuum of sectors under nonhomothetic preferences, which is rich enough to capture all these effects as well as their interactions, this paper offers a unifying perspective on how economic growth and globalization affect the patterns of structural change, innovation, and trade across countries and across sectors in the presence of Engel's Law. Among the main messages is that globalization amplifies, instead of reducing, the power of endogenous domestic demand composition differences as a driver of structural change.

A Structural View of Tourism Growth

2003 ◽  
Vol 9 (1) ◽  
pp. 77-93 ◽  
Author(s):  
Egon Smeral
Keyword(s):  
Structural Change ◽  
Global Economy ◽  
Durable Goods ◽  
Income Elasticity ◽  
Tourism Industry ◽  
Growth Effect ◽  
Structural Factors ◽  
Total Employment ◽  
Demand Effect ◽  
Tourism Services

Structural factors are important when it comes to explaining tourism growth. In this connection, crucial roles are played by structural change in demand and differentials between productivity in tourism and in manufacturing. The demand factor stimulates the rise of tourism demand and explains why tourism grows faster than the global economy as such or why the income elasticity is above 1: tourism is a luxury good, and structural change in demand is a key factor in analysing its development. Once saturation has been achieved in basic needs and durable goods, a growing economy has more money left to spend on, first, leisure and tourism services and, secondly, knowledge-based goods and services. In contrast to manufacturing, opportunities to increase productivity are limited in the tourism industry. Because there are fewer options for rationalization, tourism services become more expensive in the long term than manufactured goods or other services, and this weakens the demand-triggered growth effect. Nevertheless, in sum the demand effect is stronger than the productivity disadvantages. As a side-effect of the productivity disadvantages and the demand effect, employment grows as a share of total employment in the hotel and restaurant industry, the core segments of the tourism business.

Rising Inequality in the New Global Economy

2006 ◽  
pp. 84-89 ◽  
Author(s):  
N. Birdsall
Keyword(s):  
Developing Countries ◽  
Global Economy ◽  
Slow Growth ◽  
Global Markets ◽  
Modern World ◽  
Government Programs ◽  
Poor Countries

Reasons of high inequality in the modern world are considered in the article. In developing countries it interacts with underdeveloped markets and inefficient government programs to slow growth, which in turn slows progress in reducing poverty. Increasing reach of global markets makes rising inequality more likely and deepens the gap between rich and poor countries. Because global markets work better for the already rich, we should increase the representation of poor countries in global fora.

THE VALUE CHAIN OF COMPETENCY MODEL FOR VIETNAMESE EDUCATIONAL MANAGERS IN THE INDUSTRY 4.0 REVOLUTION ERA

2018 ◽  
Author(s):  
Le Thi My Hanh ◽  
Luis Alfaro ◽  
Tran Phuong Thao
Keyword(s):  
Value Chain ◽  
Industry 4.0 ◽  
Global Economy ◽  
Value Added ◽  
Chain Model ◽  
Individual Level ◽  
The Social ◽  
Comprehensive Development ◽  
Model Of Competency ◽  
Personal Competencies

This world is constantly changing and rapidly moving,-particular in the Industry 4.0 revolution, people must change to follow and keeping with this new trend. Education is the human foundation toward the “Truth - Good - Beautiful”, and comprehensive development of personal competencies as knowledge, skills and behaviors. A nation, such as Vietnam, if they want to integrate into global economy and affirming their position, they will need the “Talented - Virtuous” human resource who could meet the high demand of society. The purpose of this study was to propose a model of competency value chain at individual level for the educational managers, analyzing some factors of this value chain model and how to apply to Vietnamese education system in the fourth Industry era. The authors wanted to focus on the social value added that the educational managers’competency could bring as the result of this research.

scholarly journals Does Preferential Trade Benefit Poor Countries? A General Equilibrium Assessment with Nonhomothetic Preferences

2015 ◽  
Vol 23 (2) ◽  
pp. 239-270 ◽  
Author(s):  
Joachim Stibora ◽  
Albert de Vaal
Keyword(s):  
General Equilibrium ◽  
Preferential Trade ◽  
Poor Countries ◽  
Nonhomothetic Preferences

scholarly journals Industry 4.0 and Developing Countries: Innovation Perspective of Ethiopia, India and Bangladesh

2020 ◽  
Vol 6 (6) ◽  
pp. 62-70
Author(s):  
Amrut Rao ◽  
Ravindra Pathak ◽  
Ashraf Mahmud Rayed
Keyword(s):  
Developing Countries ◽  
Industry 4.0 ◽  
Global Economy ◽  
Information Technologies ◽  
Technological Development ◽  
Value Added ◽  
Developed Countries ◽  
Intelligent Manufacturing ◽  
Smart Manufacturing ◽  
Efficient Production

Ethiopia, India and Bangladesh are raising economic power, but have not yet integrated very much with the global economy and still have not achieved their potential in context of technology, globalization, and international competitiveness like developed countries. These countries have much strength, but at the same time , are facing many challenges in the increasingly competitive and fast changing global economy. The main key strengths of these courtiers are their large domestic market, young and growing population, a strong private sector with experience in market institutions, and a well developed legal and financial system. In today’s environment of global competition, technological development and innovation; companies, especially manufacturing, are forced to reconfigure their manufacturing and management processes. Industry 4.0 and intelligent manufacturing are part of a transformation, in which manufacturing and information technologies have been integrated to create innovative systems of manufacturing, management and ways of doing business. This system allows optimizing manufacturing, to achieve greater flexibility, efficient production processes and generate a value added proposal for their customers, as well as to provide a timely response to their market needs. The objective of this work is to explore the Industry 4.0, smart manufacturing, environment requirement and relation of innovation in perspective of developing countries.

scholarly journals A comparison of competitive intelligence activities in Brazil, Malaysia, Morocco and South Africa

2014 ◽  
Vol 14 (1) ◽  
Author(s):  
Adeline S.A. Du Toit ◽  
Nisha Sewdass
Keyword(s):  
South Africa ◽  
Global Economy ◽  
Information Source ◽  
Value Added ◽  
Competitive Intelligence ◽  
Customer Feedback ◽  
Corporate Websites ◽  
Managerial Implications ◽  
Advanced Analysis ◽  
Secondary Information

Orientation: This article compared competitive intelligence activities in Brazil, Malaysia, Morocco and South Africa.Research purpose: The purpose was to determine how these countries can use competitive intelligence to increase their competitiveness in the global economy.Motivation for the study: Competitive intelligence is a challenge in developing economies.Research design, approach and method: A questionnaire survey was sent to competitive intelligence professionals in the four study countries.Main findings: The most important primary information source used in all four countries is direct customer feedback and the most important secondary information source used is corporate websites. Companies in all four countries did not use advanced analysis techniques.Practical/managerial implications: It is recommended that all four countries should develop a competitive intelligence culture by creating awareness of competitive intelligence amongst their employees.Contribution/value added: It is crucial to apply competitive intelligence in the four countries in order to become more competitive in the global economy.

scholarly journals The impact of the COVID-19 pandemic on digital globalization

2021 ◽  
Vol 129 ◽  
pp. 06008
Author(s):  
Maria Loredana Popescu ◽  
Svetlana Platagea Gombos ◽  
Sorin Burlacu ◽  
Amza Mair
Keyword(s):  
Global Economy ◽  
World Economy ◽  
Value Added ◽  
Digital Transformation ◽  
Lessons Learned ◽  
Health Crisis ◽  
Main Research ◽  
Documentary Analysis ◽  
The Impact

Research background: After more than a year of the Covid-19 pandemic, we can investigate whether it caused a shock to the global economy, pushing for deglobalization, or on the contrary, it was a challenge for digital globalization and digital transformation of economies. Through this research we join the research contributions that examine the process towards digital globalization that characterizes the world economy, its impact on businesses, consumers, and governments. We also discuss the challenges posed by the crisis caused by the coronavirus pandemic to globalization and perhaps the acceleration of the digital transformation of economies. Purpose of the article: The aim of this research is to highlight the impact of the COVID-19 pandemic in the age of digital globalization. Methods: Documentary analysis, as the main research method, is doubled by a case study that allows us to highlight the specific characteristics of digital globalization. Findings & Value added: The findings of the research allowed us to highlight the essential aspects of digital globalization that were perhaps exacerbated by the Covid-19 pandemic, but which contribute greatly to understanding the phenomenon of globalization. Our research also reveals four lessons learned in the COVID-19 pandemic. We also present some considerations regarding the globalization after the health crisis.

scholarly journals The global economy affected by the COVID-19

2021 ◽  
Vol 129 ◽  
pp. 01030
Author(s):  
Ladislav Vagner
Keyword(s):  
Sensitivity Analysis ◽  
Earnings Management ◽  
Future Development ◽  
Global Economy ◽  
Value Added ◽  
Chinese City ◽  
Development Scenarios ◽  
Research Article ◽  
The World ◽  
Macroeconomic Indicators

Research background: The disease, which broke out in December 2019 in the Chinese city of Wuhan and caused a pandemic around the world, has a constant impact on the economies of the countries even after almost two years. The issue of the effect of COVID-19 on the global economy and overall earnings management persists. Due to the topicality of the problem, we focused on the impacts and measures affecting the company’s operation. Purpose of the article: The purpose of this research article is to summarize current information on coronavirus and its effects almost two years after the outbreak. Additionally, outline three different scenarios that could occur. We also took into consideration scientific sources that deal with the shock of COVID-19. In addition, we summarize the opinions of scientific authors. Methods: Within the methodology, we used mainly the analysis and obtaining an objective picture of the current situation in the world. Following the outbreak of the pandemic, there have been significant inconstancies in GDP. Subsequently, we focus on the development of individual selected macro indicators that best describe the global economy. Findings & Value added: Finally, we offer three scenarios that outline three different situations that may occur, which we worked on based on a scenario analysis based on a modification of the sensitivity analysis, to specify future development scenarios based on macroeconomic indicators.

scholarly journals How the global economy reflected the year of the pandemic

2021 ◽  
Vol 129 ◽  
pp. 01014
Author(s):  
Vladislav Kaputa ◽  
Frederik Kvočák ◽  
Miroslava Triznová ◽  
Andrej Tomić ◽  
Hana Maťová
Keyword(s):  
Global Economy ◽  
Value Added ◽  
Point Of View ◽  
Environmental Aspects ◽  
Data Comparison ◽  
The Social ◽  
Macroeconomic Indicators ◽  
The Individual ◽  
Reduced Mobility ◽  
The Impact

Research background: The coronavirus pandemic in 2020 had a significant impact on all aspects of life, from the point of view of the individual by forcing social isolation, moving work and study to the home, enormous pressure on the social and health system, but also by forcing closures of services and direct contact with customers. These, as well as other factors, have also had an impact on the performance of economies around the world. Purpose of the article: The paper aims to evaluate the development of the world's major economies in terms of macroeconomic indicators and foreign trade in the pandemic period and previous periods. The social and environmental aspects of the impact of the pandemic on selected economies are also reflected. Methods: Analysis of the main macroeconomic data, comparison and synthesis of findings. Findings & Value added: The interdependence of economies and interconnectedness of markets on transport routes associated with reduced mobility, forced isolation of people and death of economic activity had a significant impact on all the observed indicators, where a significant decline in GDP could be observed in all countries except China. This country was the only one that managed to keep GDP growth in positive numbers. Unemployment development was not equal in the observed economies due to different labour market environment. On the contrary, the environment has benefited in some way.

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