Smart Specialisation Strategies and Regional Convergence: Spanish Extremadura after a Period of Divergence

Smart specialization strategies are a new EU approach to cohesion policy, meant to deliver growth and development at EU national and regional level. Bearing in mind its focus on place-based development strategies, this paper intends to shed some light on its appropriateness to tackle uneven development and regional growth divergence. The paper showcases Spanish Extremadura growth trajectory. Extremadura is a poor region in the European context that between 2008 and 2014 diverged from the EU average, despite being eligible for EU funding as a convergence region by cohesion policy. In the 2014–2020 programming period, there was a positive dynamic at the beginning, but from 2017 onwards convergence stopped, which indicates that thematic and regional programmes have not delivered results or have not compensated for higher growth level of other Spanish regions. Moreover, research and innovation strategies for smart specialization (RIS3) seem to have limited impacts on place-based economic transformation in less developed regions. From this example, the suitability of the smart specialisation strategy as the core of cohesion policy in the programming period is discussed. It concludes that this strategy is interesting for intermediate development regions with some industrial base but does not seem appropriate as a convergence driver for poorer regions.

The Use of Decomposition Methods to Understand the Economic Growth Gap between Latin America and East Asia

Understanding how growth factors contribute to explaining the large differences in growth rates across countries remains an important research agenda. The common approach to exploring this issue is based on the use of multiple linear regression analyses. This work contributes to growth literature by applying a new perspective based on the use of variance decomposition procedures: Shapley–Owen–Shorrocks and Oaxaca–Blinder. These methodologies have four main advantages with respect to traditional methodologies: they make possible the quantification of the relative contribution of each factor to economic growth, they allow us to estimate the efficiency in the use of the endowments of each factor, they can be used with any functional form and they can be used with estimation methods that are robust regarding endogeneity issues. We illustrate these advantages by analyzing the causes of the economic growth gap between Latin America and East Asia over the period 1980–2014. We find that the economic growth divergence between the two regions can be primarily explained by the differences in institutions and physical capital. In addition, the results indicate that the higher East Asian performance is not only due to its higher levels of endowments in these factors, but also to the higher efficiency in its use. We connect our results with the 2030 Agenda for Sustainable Development.

Can foreign aid contribute to sustained growth? A comparison of selected African and Asian countries

PurposeIdentifying if aid flows have contributed to economic growth or growth divergence between a sample of Asian and African countries is the purpose of this paper. Using data over the period of 1980–2015, the paper attempts to establish whether aid, in any of its forms, has played a role in economic growth in these countries.Design/methodology/approachA comprehensive literature analysis over the past 70 years sets the scene for the paper. A panel data fixed-effects model is applied for each sample (Africa and Asia) between 1980 and 2015. Both theoretical predictions and empirical studies are used to derive the independent variables selected for modelling.FindingsThe findings strongly suggest that aid flows in both the Asian and African samples have no relation at all to either long-run growth paths or growth divergence. However, there is a suggestion in the case of the Africa sample that governance decline may well be the primary source of growth divergence.Research limitations/implicationsThis result cannot be generalised because it only focuses on six countries but as demonstrated in the paper, other possible samples (from both regions) actually make no difference to the results. It could also be argued (given the comprehensive literature analysis presented here) that it is not essential to have a theoretical relationship between aid and growth because aid is given to different countries with very different characteristics, needs, governance and policy environments.Practical implicationsDonor countries must play a more supervisory role to ensure aid flows are directed to the right channels in recipient countries. Aid should be given to countries which have a certain degree of macroeconomic stability and “good” policy to ensure effectiveness. They also need to pay attention to the sectoral distribution of aid as do recipient countries to better allocate aid flows to productive sectors that contribute to both short- and long-term growth.Social implicationsThese are not given much emphasis in this paper.Originality/valueMost aid–growth studies are based on a large number of countries from different regions with different characteristics or on a single country case. This paper compares between two samples of countries sharing the same characteristics to overcome the heterogeneity problem. This paper is based on a more protracted time series from 1980 to 2015 to capture more accurately the impact of foreign aid on economic growth.

Drought-induced decline in oak Mediterranean forests: insights from wood anatomical traits

<p>Increased forest vulnerability to drought and heat spells is being reflected as more widespread and severe dieback events. In this regard, the Mediterranean Basin is revealing a high susceptibility to these phenomena across several tree taxa with a high ecological and socio-economic importance, particularly pines and oaks. For instance, oaks are particularly vulnerable to spring-summer droughts with important losses in term of growth and productivity accompanied by rising mortality rates and declining growth rates, despite some of these species are theoretically considered well-adapted to tolerate drought stress. Dendroecological studies using retrospective analysis of wood anatomical traits and tree-rings have demonstrated their potential to supply useful information on the long-term patterns of forest dieback in several oak species.  </p><p>In this study, we explored the xylem anatomical plasticity through time by performing a long-term (1980-2017) reconstruction of wood anatomical traits, aiming at investigate the drought stress effects on dieback of oak species.To this aim, we carried out some field experiments in Italy on four oak species differing in drought tolerance, i.e. Quercus robur, Quercus cerris, Quercus frainetto and Quercus pubescens, considered to have low to high tolerance, respectively, but showing recent decline phenomena. We cored asymptomatic (ND) and symptomatic (D) coexisting trees showing low and high defoliation levels, respectively, and for all sampled species we measured the following anatomical traits in the xylem: vessel area, Dh, vessel density.</p><p>Climate-traits relationships over the last century explained the recent growth divergence observed between D and ND trees because D trees were more sensitive[U1]  to drought stress and summer warm temperatures leading to high evapotranspiration rates. Here, we discuss: i) the relationships between radial growth, changes in wood anatomy and hydraulic functioning of trees to highlight the triggers of oak dieback; ii) the associations between climate, growth and anatomy data to explain likely the differences in acclimation/plasticity to short/long-term changes in environmental conditions.</p>