The association of economic and cultural capital with the NEET rate: differential geographical and temporal patterns

Using data from 103 Italian provinces, we investigated the relationship between local/regional development, and NEET. We constructed an indicator of cultural capital and another of economic capital and we studied their relation with the NEET rate. Covariance Structure Analysis with Generalized Least Squares estimation was employed, considering a three time-points retrospective model. Results indicate a consistent protective effect of the economic capital on the NEET rate, both in the short run (2 years) and in the medium run (10 years). However, this effect has been obtained in the Central provinces (at 2 and 10 years) and Southern provinces (at 10 years), but not in the Northern provinces. A mediation analysis indicated that, historically, the cultural capital may partly mediate the effect of the economic capital. We did not detect a significant direct effect of the cultural capital on the NEET rate, which is strongly mediated by the action of the economic capital. Together, these results denote that the economic capital is a strong predictor of NEET, but not in very competitive economic areas.

Structural Transformation in South Asia: Does the Pattern Ensure Growth Momentum?

We model the evolution and determinants of shares of agriculture, manufacturing and services to gross domestic product for four South Asian countries (Bangladesh, India, Sri Lanka and Pakistan) for 41 years (1974–2018) to understand their structural transformation pattern. Determinants of shares were classified into three broad categories: ‘country fundamentals’, ‘policy’ and ‘decadal dummies’. This is the first article to investigate the empirical regularities of the structural transformation pattern and their determinants for this region. The generalized least squares estimation technique for panel data was applied. We find mixed evidence in support of structural transformation. With the increase in per capita income, the share of agriculture decreases and that of services increases, partially supporting the Kuznets hypothesis; however, the share of manufacturing sector shows a more tepid rise and even decreases in some model specifications. Thus, the Kuznets model of structural transformation is supported to some extent, but not strongly for these countries. JEL: C22, C23, F63, O11

Corporate governance and the impact to the R&D lab

Purpose The purpose of this paper is to determine whether the strength of corporate governance influences the firm’s ability to retain their key knowledge workers or inventors. Design/methodology/approach This paper links agency and innovation theory to develop the hypotheses. Agency theory predicts that the interests of employees are counter to those of firm owners. The authors predict that as shareholder power grows as corporate governance strengthens, inventors who are highly productive, and those who pursue risky but valuable exploratory innovation will leave the firm. Given prior scholarship in innovation theory establishing the critical contributions that new knowledge creation and exploratory innovation make to firms’ competitive advantage, the authors consider whether stronger firm-level corporate governance leads to the erosion of the firm’s competitive advantage. The hypotheses are empirically tested using generalized least squares estimation on a data set that combines data on firms, their patents and the governance provisions these firms adopt. Findings Using a 10-year sample of publicly traded US firms, the authors find that stronger corporate governance erodes the very foundation of a firm’s innovation capabilities. Stronger corporate governance reduces management job security, which makes managers more risk-averse. This heightened “managerial myopia” results in increased departures of highly valuable inventors employed by the firm. The authors show that these departing inventors are more productive inventors than those who remain and engage in more exploratory R&D than the remaining inventors at the firm. Originality/value The findings raise questions on the appropriateness of the adoption of governance provisions strengthening shareholder rights in firms pursuing innovation.

The interaction effects of information cascades, system recommendations and recommendations on software downloads

Purpose When purchasing digital content (DC), consumers are typically influenced by various information sources on the website. Prior research has mostly focused on the individual effect of the information sources on the DC choice. To fill the gap in the previous studies, this research includes three main effects: information cascades, recommendations and word of mouth. In particular, the purpose of this paper is to focus on the interaction effect of information cascades and recommendations on the number of software downloads. Design/methodology/approach The authors use the panel generalized least squares estimation to test the hypotheses by using a panel data set of 2,000 pieces of software at download.cnet.com over a month-long period. Product ranking and recommendation status are used as key independent variables to capture the effects of information cascades and recommendations, respectively. Findings One of this study’s findings is that information cascades positively interact with recommendations to influence the number of software downloads. The authors also show that the impact of information cascades on the number of software downloads is greater than one of the recommendations from a distributor does. Originality/value Information cascades and recommendations have been considered as the primary effects for online product choices. However, these two effects typically are not considered together in one research. As previous studies have mainly focused on each effect, respectively, the authors believe that this study may fill the gap by examining how these effects are interacted to one other to influence customers’ choices. The authors also show that the impact of information cascades on the number of software downloads is greater than one of the recommendations from a system does.

PAJAK KARBON, KERUSAKAN KARBON, DAN PERTUMBUHAN EKONOMI DI LIMA BELAS NEGARA SELAMA 27 TAHUN

The purpose of this study is to analyze the effect of carbon tax and carbon damage on economic growth in 15 (fifteen) countries from 1990 to 2017. Based on the results of research by weather scientists who stated that there are 50-500 possibilities to limit global warming at 2 degrees Celsius above average global temperatures from pre-industrial times throughout the 21st century.Global warming is caused by cumulative carbon emissions which continue to increase from year to year, resulting in threats to the world's sustainable development. Therefore carbon production must be limited by imposing a tax on carbon so that economic growth can run normally and even increase.Researchers used the open economy model Y = (C, I, G, NX) namely final household consumption expenditure (C), foreign direct investment (I), government final consumption general expenditure (G), and import export per GDP (NX) for control variables. The researcher also used the Cobb-Douglas Y = (K, L) production function, namely gross capital formation (K) and the ratio of working people per population (L) to the control variable. The data used were panel data in 15 countries that applied Carbon Tax from 1990 to 2017. Researchers used GLS (Generalized Least Squares) estimation to analyze the effect of carbon tax and carbon destruction on economic growth.The result is a carbon tax can stimulate the growth of real gross domestic product per capita and carbon damage hinder economic growth.

Corruption, political discretion and entrepreneurship

Purpose While common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed inconsistent results (positive, negative and neutral). This paper aims to verify whether corruption has a “grease” or “sand” effect on the wheels of entrepreneurial rates and under which conditions corruption will have stronger or weaker effects. Design/methodology/approach Using institutional theory as the basis for the hypotheses, generalized least squares estimation is conducted to empirically examine the role of corruption and political discretion in entrepreneurship in a sample of 93 countries. Findings Countries with higher levels of corruption are associated with lower levels of firm creation. However, this negative effect of corruption is weaker when there are higher levels of political discretion. Originality/value This is the first evaluation of the moderating effect of political discretion on the negative impact of corruption on entrepreneurship.