Digital and economic transformations for sustainable development promotion: A case of OECD countries

Digitalization, dematerialization of production and consumption, and structural shifts in the direction of service economy forming do promote to reduction of material use and sustainable development. The paper aims to investigate the role of digital, structural, economic, and social factors in sustainable development promotion in OECD countries. The paper uses the data on digital achievements, social and economic development of OECD member states from World Bank data sources for the period 2007–2018. The random-effects GLS regression model is used, and empirical regression models to estimate the influence of key factors related to digital transformation on GDP per capita and CO2 emissions per capita are constructed. The results of the regression analysis show that using the number of Internet users as an indicator for achievement in digitalization has a positive and statistically significant influence on GDP per capita due to lower transaction costs and higher share service economy. An increase in urbanization rates (as an indicator of capital concentrations and labor specialization) by one percent promotes a GDP per capita increase of 299 USD. Also, an increase in Gini coefficient by one percentage point correlates with decrease in GDP per capita on 196 USD and the reduction of CO2 per capita by 0.12 tones due to the structural shifts in aggregate demand. Still, improvements in digital transformations have no significant environmental effect in OECD members, while processes related to urbanization, income inequality, and share of industrial output are important drivers for CO2 per capita reduction. AcknowledgmentsThe paper contains the results of a study conducted within the framework of research projects: “Sustainable development and resource security: from disruptive technologies to digital transformation of Ukrainian economy” (No. 0121U100470); “Fundamental bases of the phase transition to an additive economy: from disruptive technologies to institutional sociologization of decisions” (No. 0121U109557).

Structural changes in the economy of the Northern zone in the modern period

The aim of the work was to study and evaluate structural changes in the economy of the regions of the North at the present stage of their development (in the period from 2015 to 2019). On the basis of the methodology previously developed by the author for assessing structural shifts, twenty types of economic activity were grouped into two large spheres: production and non-production (services), each consisting of four combined industries. For these economic spheres and industries, an assessment of sectoral and then territorial structural shifts in the period 2015–2019 was carried out. It was found that in the structure of the economy of the regions of the North during this period, the vector of development changed towards an increase in the share of the production sector and a decrease in the non-production sector by 4,4 %, whereas in the previous period 2005–2015, the opposite picture was observed. The high rates of development of the production sector in all regions of the North were revealed, while it grew most rapidly in the West Siberian region due to the extensive development of new gas fields and the construction of new largest LNG complex in the North on the Yamal Peninsula. As a result, the share of GRP in the Northern zone increased in the country from 13,2 % in 2015 to 14,5 % in 2019, and the pace of development was outstripping: 144,6 % versus 129,2 % in the Russian Federation. It is noted that the pace and volume of both sectoral and territorial structural shifts in the production sector in almost all regions of the North zone are almost entirely related to both the scale of investments directed to the development of their economy and the current situation for their resources in the world commodity markets.

Adjusting Structures and Procedures

State structures are constantly adjusted for resilience in a social world full of external and internal challenges. Structural shifts or reforms are comprehensively explored in the public management literature; though little is known regarding the dynamics of reforms in a developing context like Pakistan and that too from a longitudinal perspective. This research documents the key adjustments in the state structure and analyzes the changing dynamics of reform mechanisms at the federal level of Pakistan in a period of over seven decades. Both civilian and military led governments made continuous adjustments in state structures with shifting choices in reform mechanisms. With dominance of hierarchy type mechanisms over the years, the new trends in reforms around the world including market and network type mechanisms were also brought in for a resilient system. Markets and hierarchies were mostly blended in with hierarchies to create state specific reform patterns. Developing countries pick up international trends in reforms imported from West; however, the way they are influenced by the role of contextual actors (both political and non-political).

Information transmission between bitcoin derivatives and spot markets: high-frequency causality analysis with Fourier approximation

This paper examines information transmission between Bitcoin derivatives and spot exchanges using 15-minutes interval data over May 2016 - September 2020. We employ a novel econometric framework with Fourier approximation, taking structural shifts in causal linkages, on the prices, returns, and volatilities of BitMEX, the derivatives market, and five other major spot exchanges, Coinbase, Bitstamp, Kraken, CEX.io, and Poloniex. Overall, the results provide robust evidence of information flow between the derivatives and spot exchanges, implying the markets react to new information simultaneously. The results are of importance for investors conducting portfolio allocation exercises and risk management strategies.

Updated nationally determined contributions collectively raise ambition levels but need strengthening further to keep Paris goals within reach

By September 2021, 120 countries had submitted new or updated Nationally Determined Contributions (NDCs) to the UNFCCC in the context of the Paris Agreement. This study analyses the greenhouse gas (GHG) emissions and macroeconomic impacts of the new NDCs. The total impact of the updated NDCs of these countries on global emission levels by 2030 is an additional reduction of about 3.7 GtCO2e, compared to the previously submitted NDCs. This increases to about 4.1 GtCO2e, if also the lower projected emissions of the other countries are included. However, this total reduction needs to be four times greater to be consistent with keeping global temperature increase to well below 2 °C, and even eight times greater for 1.5 °C. Seven G20 economies have pledged stronger emission reduction targets for 2030 in their updated NDCs, leading to additional aggregated GHG emission reductions of about 3.1 GtCO2e, compared to those in the previous NDCs. The socio-economic impacts of the updated NDCs are limited in major economies, while structural shifts occur away from fossil fuel supply sectors and towards renewable electricity. However, two G20 economies have submitted new targets that will lead to an increase in emissions of about 0.3 GtCO2e, compared to their previous NDCs. The updated NDCs of non-G20 economies contain further net reductions. We conclude that countries should strongly increase the ambition levels of their updated NDC submissions to keep the climate goals of the Paris Agreement within reach.

Structural Dynamics of Employment of Older People in the Eurasian Economic Union Countries

Employment of older people can help solve problems arising from the population ageing. The growing demand for such employees creates favourable conditions for the realisation of their resource potential. In order to identify potential sectors for the employment of older workers, the study assesses structural shifts in the labour market by type of economic activity in the Eurasian Economic Union (EAEU). It was hypothesised that, despite labour potential differences, the EAEU countries have similar industries characterised by positive trends toward increasing employment of older workers. After identifying these trends, the research classified theoretical approaches to the study of employment opportunities for older adults. The assessment of structural differences in employment by type of economic activity was conducted based on the selected methodology. To quantify changes in the EAEU countries, employment of older workers was analysed using the integral coefficients of structural shifts of Gatev and Ryabtsev. According to statistics on the population employment for 2014–2019, older people of the EAEU countries (except Armenia) can continue to work in real estate transactions, hotels and public catering establishments, as well as in the field of health care and social services. To stimulate the employment of older workers in these areas, state measures, based on the proposed recommendations, can focus on promoting entrepreneurship and expanding the information environment for older people.

The correlation of globalization and localization of economic processes in the context of growing global risks

The article analyses changes in the correlation between globalization and localization of economic processes in the context of increasing global instability, growing geopolitical rivalry and the emergence and spread of new global risks of technological, ecological and biological origin. The study proves that the growth of global risks leads to a modification of Maslow's hierarchy of needs towards a relative accentuation of security needs - with diverse consequences in terms of the territorial organization of economic activity and mobility. It substantiates that the expansion of global processes can lead to excessive levels of concentration and homogenization of economic processes, suppression of forms of self-organization at the local level, and creating risks of disrupting the stability of local socio-economic structures. An important consequence is the transformation of the globalization process due to a significant intensification of regional and local factors. This trend determines the formation of glocalization as a two-dimensional process in which globalization and localization trends are combined. The author postulates that the balance between the processes of globalization and localization can shift in favor of the latter due to: the exacerbation of the global competition for resources and markets in the context of cardinal technological and structural shifts in the world economy; increasing international instability amid geopolitical confrontation between old and new centers of global power; insufficient effectiveness of global responses to climate change and pandemics; risks of the digital virtual environment leading to increased national and regional regulation and fragmentation of the global digital environment; and the impact of technologies of the Fourth Industrial Revolution in the direction of strengthening localization trends in relation to global value chains.

Structural shifts: impact on productivity and growth of Ukraine's economy

The leading feature of the modern world has been the deep structural shifts caused by radical transformations of its industrial landscape. The corresponding transformations were caused by changes in the internal structure of national industrial sectors and were based on the technologies of the "fourth industrial revolution", whose emergence gave additional impetus to the structural transformation of the world economy, intensifying competition in global markets. The Covid crisis was a catalyst for accelerating changes in the intersectoral proportions of the world economy, complicating the existing structural problems. The study shows that the key feature of the model of structural changes that occurred in Ukraine's economy after the global financial crisis was the accelerated reduction of the industrial sector, especially the loss of potential of the processing industry, its technological simplification and narrowing the variety of industries. This was accompanied by increased dominance of the tertiary sector and the growth of the primary sector. Excessive share in the structure of production is occupied by industries, whose mode of reproduction is able to generate only relatively low rates of economic growth (mining and related industries of primary processing in industry and agriculture). Such a trend of structural shifts is not able to generate the necessary boost of economic growth, and much less so as it is burdened by the risks of deepening structural inconsistency of Ukraine’s economy with the cardinal changes taking place in the world economy. Comparison of parameters and trends of structural changes in Ukraine’s economy and in a comparable group of countries and the world as a whole shows that the changes in the structure of Ukraine’s economy were much higher, but did not create sufficient potential for sustainable economic growth. The author analyzes the gaps in labor productivity between economic activities and sectors of Ukraine’s economy, as well as changes in their dynamics, which leads to the conclusions about the relationship between the rates of technological development of different sectors of Ukraine’s economy and the gradual slowdown of the already imperfect technological development of this country’s industry with further loss of competitiveness. Estimated the degree of influence of such factors as investments and technological innovations, as well as shifts in the structure of employment on the increase of labor productivity in Ukraine’s economy. Using the apparatus of econometric modeling, the author evaluates the dependence of the dynamics of GDP growth on the change of the indices of the physical volume of GVA in the sectors of this country’s economy.