TRANSFORMATION OF ECONOMIC PROCESSES ON THE BASIS OF DIGITALISATION

The main task of our study is to justify the primary directions of transformation of economic processes on the basis of digitalisation. Nowadays, the digitalisation of the economy in the global economic environment is considered a priority model of global innovation development. Institutional factors are particularly important in the conditions of transformation of economic processes on the basis of digitalisation. They form the fundamental parameters of the long-term functioning of economic systems. It is determined that the role of institutional factors in ensuring economic development is multifaceted as they affect its duration and quality. These factors can be divided into formal and informal. We have systematised the influence of formal and informal institutional factors on the transformation of economic processes. It is found that the inability of the Ukrainian institutional system to ensure effective economic development demonstrates the institutional traps. Negative manifestations of this system hinder the positive directions for the transformation of economic processes, modernisation of the economy, and competitiveness. It is justified that the transformation of management economic processes should be based on the implementation of the proposed system of principles, the use of which will identify and solve a set of problems of social development of the region, which meets the challenges of our time. To create an effective system of interaction between corporate and regional participants, it is necessary to link their goals, to harmonise them with the goals of socio-economic development of the region. This is where digitalisation can help. It is determined that in modern conditions, the problems of the digital sector affect the competitiveness of the economy, as the lag in obtaining and processing relevant data, the inability to use digital resources are accompanied by the loss of former market positions. From the standpoint of the theory of asymmetry of international trade, the digital dependence of one country on another leads to an increase in the gap in economic development between these countries. The rapid development of information and computer technologies and the active Internet penetration into all spheres of human life have led to the transformation of economic processes according to the level of digitalisation. The development and dissemination of key technologies underlying the digital economy have a decisive impact on the transformation of globalisation: they directly affect the production of goods and services, human resources, investment in human and physical capital, foreign direct investment, international technology transfer, industrial innovation. In essence, all this directly affects the efficiency of production, performance, competitiveness, and economic growth – from individual market participants to countries, regions, and the world economy as a whole.

Structural Convergence between African Countries: Empirical Evidence

This paper aims to investigate structural convergence in selected African countries over the period 1994-2019. Using panel data for 48 African countries and several estimation methods [Panel-Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), tobit model, instrumental variable, and Granger non-causality], the results show the existence of the phenomenon of sectoral structural convergence in Africa, i.e. a greater similarity in sectoral structures while income gaps are narrowing. The paper also highlights the service sector's low relative productivity level and industrial sector's low labor force attractiveness despite a significant shift in labor from the agricultural sector and a higher level of relative productivity respectively. To address this issue, the development and acquisition of human and physical capital would be necessary to develop the industrial sector and increase the service sector's productivity.

“Our Flight Suits are not Just Plain Blue”: The Co-Production of Coordination and Bodies in a Military Air Display Squadron

While prior investigations of organizational coordination have mainly focused on cognitive processes, this article brings the physical and symbolic body more centrally into the phenomenon. Mobilizing the ‘strong’ practice programme, we explore how organizational coordination practice and bodies co-produce each other. Our study is an empirical qualitative analysis of Patrouille de France, a military air display squadron. By successively zooming in and out from pilots’ doings and sayings, we reveal three body-related threads (training, sensitizing, and distinguishing) by which organizational coordination and bodies co-produce each other. We especially point to technical and physical capital, proprioception, kinaesthesia, embodied awareness of co-presence, and the symbolic (re)presentation of bodies as embodied aspects of the actors’ habitus structured by and for coordination. Our findings have implications for our understanding of organizational coordination by showing that there is more to bodies in coordination than just embodied cognition or communication. They also further coordination literature by emphasizing that coordination practice includes organizationally structured bodywork aimed at enhancing bodies; bodywork that is not limited to learning the practice but crucial to maintaining actors in that practice.

Determinants of Foreign Direct Investment in Indonesia

We examine what determines the flow of foreign direct investment (FDI) in Indonesia, focusing on the role of institutional measures. A knowledge-and-physical-capital (KPC) model is applied to a panel dataset that covers 42 of Indonesia’s FDI partners from 2004 to 2012. Evidence shows that both horizontal and vertical FDIs coexist in the bilateral aggregate data of Indonesia’s FDI flows, but horizontal FDI appears to be dominant. This can be explained by the market size (proxied by the total GDP of both countries and similarity in incomes per capita) and the relative factor endowments (proxied by skilled labor and physical capital). The vertical FDI, on the other hand, could be only explained by the significant effect of unskilled labor. Institutional factors, particularly corruption, are apparently important in affecting Indonesia’s bilateral FDI flows. The results also show that a higher FDI level in Indonesia positively correlates with macroeconomic factors, open policy factors, and utility infrastructure factors.

The Response of Creative Class Members to Regions Vying to Attract Them With Subsidies

There are no theoretical studies in regional science that examine which region to locate in from the standpoint of a creative class member, given that the pertinent regional authorities (RAs) are competing among themselves to attract the creative class using subsidies. This gap provides the motivation for our paper. This paper’s contribution is that it is the first to theoretically study the regional location choice of creative class members when the RAs of the locations in which they might locate are using subsidies to attract them. Specifically, a knowledge good producing creative class member must decide which of two regions ( A or B) to locate his plant in. This good is produced using a Cobb–Douglas function with creative and physical capital. We analyze plant location in four cases. In the benchmark case, we show that the representative creative class member ought to locate his plant in the less expensive region B. Next, we show that a small subsidy to creative capital by region A switches the plant location decision from region B to A. Finally, when both regions grant identical subsidies to creative capital, the representative creative class member is indifferent between locating in regions A and B. So, for identical subsidies to affect the plant location decision, they are better targeted to physical and not to creative capital. JEL Codes: R11, R58

Marketing: Farmers Promulgates Cash Crops, Itinerary to Support Their Livelihood and Enhance Their Living Standard

This paper is a briefing on the marketing and emergence of cash crops in the Indo-Bangladesh border, South West Khasi Hills District Meghalaya. It is solely aimed at understanding the inborn entrepreneurship skills of the particular sub-tribe of the Khasis called "War". They live in steep and sloppy mountains with moderate temperatures and receive sufficient precipitation throughout the year, which enables them to sustain their farming. Marketing is the heart core of every individual, regardless of any background and professionals. Marketing plays a very important role to the farmers, and everyone could enhance their standard of living due to the technique of commercialization. The Non-farmers can buy the food crops from the farmers through the role of business administration. It is pointless to have money without having a food supply. Thus, the commercialization of agricultural produce is highly required. Cash crops cultivation promotes economic growth and social growth; economically, people can generate income, put savings, and purchase physical capital. Socially they bridged with each other, helping one another, exchanging work, advising the younger ones, and imparting knowledge to one another, providing seeds and saplings to the have not. There is an evolution from practicing traditional crops, which can be consumed directly, to Cash crops, which need to be exported outside of the State through a marketing system with the intention to manufacture further for finished products.

Bridging Household Income Gap: Malaysia

The purpose of this paper is to examine the long run and the short run relationship between household income gap, physical capital, human capital, and technological progress in Malaysia. Based on the Solow's growth model, this study applied the panel cointegration estimation of the full modified ordinary least square (FMOLS), as well as the Granger causality analysis. The result showed that there is a short run and long run relationship running from physical capital, human capital, technological progress towards the income gap of M40 and B40 groups of households. This study is unique because it addresses the income gap between a group of households of the bottom 40% and middle 40% across all states in Malaysia.

Assessing the impact of institutions on economic growth in the BRICS countries

This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

Economic impact of unemployment and inflation on output growth in Bihar during 1990–2019

The effects of unemployment and inflation on output growth based on time series data of Bihar (India) over the period 1990–2019 has been examined in this paper. The physical capital expansion in terms of infrastructure development along with skill development to provide employment opportunities to the youth appears to be the major determinant of boosting the potential productivity of physical and human capital and affecting positively the economic growth. The results indicated that there are significant and certain benefits from the increased supply and improvement in the quality of physical capital which increases labor productivity as well as investment in human capital. Thus, it is recommended that Bihar makes large-scale investments in infrastructure and skill development and carry-on renewal at opportune moments to keep steady the positive trend of economic growth over the years. The investments may be in terms of mechanized technologies, supporting infrastructure and appropriating the knowledge relating to their management; and adopting new technologies and practices involving better innovation in agriculture, forestry, manufacturing, and relevant skill development to sustain the growth of value-added.