Global competitiveness divide and the middle-income-trap

In recent times, the middle-income trap (MIT) has become a pertinent issue as economists, researchers and development practitioners continue seek answers to why the majority of middle-income countries find it difficult to advance to high-income status. There is still no consensus in literature as to the exact cause(s) and the solution to the MIT. The World Economic Forum posits that, the score of countries on the Global Competitive Index (GCI) 4.0 accounts for over 80% of the variation in income levels of countries. This suggests that the extent of global competitiveness of countries could potentially help them to escape the MIT. However, some competitiveness literature have identified an apparent competitiveness divide among countries. This paper therefore seeks to answer the following questions: how does middle-income countries differ from the high-income countries in terms of global competitiveness. The study utilises an independent samples t-test and effect size measures to examine the GCI 4.0 scores of 140 countries. The study finds a very large and significant competitiveness divide between the high and middle-income countries.

Autonomous cars and responsible innovation

Digitalization, a dominant megatrend in today’s global world, offers numerous intriguing technological possibilities. Out of these novelties, self-driving cars have rapidly come to be a primary focus; the literature categorizes them as a radical innovation due to the possibility that the mass adoption of self-driving cars would not only radically change everyday life for members of industrialized societies, but calls into question the infrastructural, legal, and social ordering of towns and numerous aspects of transportation in the societies that adopt them. Meanwhile, the results of several international surveys with large samples show that public opinion of self-driving cars is ambivalent, indicating parallel signals of enthusiasm and concern. The aim of this paper is to develop key components of a general strategy for addressing the societal challenges associated with self-driving cars as identified in international surveys and relevant literature and using the framework of responsible innovation.

Engaging students

Consumer satisfaction has long been a question of great interest in a wide range of fields. Existing research recognizes the critical role played by student satisfaction in higher education. It has been noted that students have changing and variable needs. A considerable amount of literature has been published on the fact that higher education institutions have to react promptly and satisfy students’ needs in order to keep their students and rankings. As student satisfaction is highly dependent on teaching quality, it is essential for higher education institutions to implement new teaching methodologies. Therefore, the aim of this paper is to analyze the concept of a teaching methodology, namely co-creation, and to examine its applicability in the field of economics. With the methodology of co-creation, teachers are able to involve students into the creation of curriculum, which might enhance student involvement and increase student satisfaction.

Investments in an intelligent and digital future

Over the past few years, there has been an avalanche of new digital technologies in the business services sector, many of which proved to be disruptive. Business service centres (BSCs) even in innovative industries like information and communication technology (ICT) find it highly challenging to accommodate these changes. New technological solutions transform consumer needs, shape organizational processes, and alter the way employees cooperate in a computerized environment. These changes make it inevitable for companies to adjust their business models. In this paper, we present a case study of IT Services Hungary Ltd., a Hungarian based BSC in the ICT industry. We carried out semi-structured interviews with the CEO and four senior technology experts of the company to analyse digital transformation plans they initiated. We investigated and now reveal three projects through which they implemented cognitive automation, cloud computing, and advanced cybersecurity technologies. We also describe the general organizational, financial, employment, and motivational background of these projects at IT Services Hungary Ltd. With this paper, we aim to present transferable best practices and appealing management efforts to invest in an intelligent and digital future.

The problem of economic growth in Sub-Saharan Africa

A wide range of policy-related variables have a persistent influence on economic growth. This has consistently maintained the interest of economists on the determinants of economic growth over the years. There is consensus however that for countries to grow sustainably, a lot of stall must be placed on higher savings rate as this makes it easy for such countries to grow faster because they endogenously allocate more resources to inventive activities. Due to data difficulties in Sub-Saharan Africa (SSA) it is nearly impossible for one to consider important variables such as accumulation of knowledge and human capital when analysing growth sustainability. Studying four lower middle-income countries in SSA – Ghana, Republic of Congo, Kenya and Lesotho – this study tests the hypothesis of sustainable growth by using a Dynamic Ordinary Least Square (DOLS) model to examine the relationship between savings, investment, budget deficit and the growth variable. The results showed that savings had a significant but negative relationship with the GDP per capita (PPP). A Granger Causality test conducted showed that savings does not granger cause GDP per capita (PPP), the HDI index, deficit and investment. This leads to the conclusion that growth in these countries are not sustainable. The study recommends that policy makers focus on the savings variable if these countries will want to achieve sustainable growth.

The economy of Bulgarian Districts and its effect on environmental performance

The aim of this study is to examine on the relationship between economic growth and environmental performance in the 28 Bulgarian districts for the period between 2010 and 2016. The results show that when in the cases where CO2 emissions are medium, the relationship with the economic growth is very weak. However, for those districts with higher CO2 emissions per capita there is a significant relation with the economic variables. This would mean that economic growth would have a strong effect on the air quality only after certain amount of CO2 emissions.

Impact of working capital management on the profitability of smes through cash operation cycles in Kumasi

A business ought to be able to breed an adequate amount of cash and cash equivalent to meet its short-term liabilities if it is to carry on and develop in business. For that reason, working capital management which helps an entity to, efficiently and effectively manage current assets and liabilities is a key factor in the company’s long-term success; without working capital, the non- current assets will not function. The better the degree to which current assets exceed current liability, the more solvent or liquid a company is likely to be. This paper observes the relationship between working capital management practices of small and medium enterprises (SMEs) and the performance and profitability of these businesses in the Kumasi Metropolis distinctively Asafo, to evaluate key ratios of industries of such working capital management policies in ensuring that current assets meets current liabilities, to assess the degree to which management of SMEs are dedicated to the effective and efficient management of working capital. The implication of the findings is that the government of Ghana should pursue policies aimed at encouraging training and improving the managerial skills of SME owner/managers as well as creating the enabling environment for the development of improved modern technologies to transform the business processes of these vital industries.

Motivations of brand avoidance

Present study demonstrates the widely known and debated consumer-brand relationship, particularly focusing on the phenomenon of brand avoidance. However, the traditional consumer researches focus predominantly on the consumer loyalty, the examination of negative consumer-brand relationship is actual. The extant literature on the field brand avoidance is scarce. It is important to discover which factors are the those key elements that cause the brand avoidance. Firstly, if we know these factors we can prevent for more losing consumers. Secondly, nowadays the opinion of consumers is critic for the brand successful, because the negative word of mouth (WOM) might be harmful. Based on my previous suppositions the motivation of the brand avoidance are caused by symbolic consumption (selfexpression) which means consumers avoid certain brand because of the brand personality, brand image and the typical brand user. Partly, the results of the qualitative research certifies my previous suppositions, but the functional factors and the message of the advertisement are important elements for the brand avoidance as well.

Quantitative and qualitative methods in economic research in the 21st century

Economic research has always applied both quantitative and qualitative methods ever since it came into being. However, the emphasis and the dynamics of interaction between these methods have been constantly changing, following the dominant approach in social and economic sciences. From time to time either quantitative or qualitative perspectives became more accepted meanwhile few attempts were made to truly join and reconcile their results. In this study I summarize the most important features of the quantitative qualitative debate and survey some good examples of application of quantitative and qualitative methods together. The aim of this paper is exploring opportunities and possible scientific advancement in their joint usage in macroeconomic research. The development of scientific research needs the appreciation and co-operative application of both methods.

Digitalization in the food industry

The study examines the appearance of Industry 4.0 and digitalization in the food industry that is not typically considered high-tech. Our aim was to point out that Industry 4.0 is also present in the food industry and offers many opportunities in two areas that are a particular focus of this industry: increasing traceability and food safety. During the research, we asked seven companies about their digital development and Industry 4.0 experience. We have explored the factors that drive companies to adopt digital solutions and the technologies that have been applied. Our results show that companies, not consciously moving towards Industry 4.0 but taking advantage of the opportunities offered by digitalization, are making improvements, often with a lack of workforce, eager to reach higher efficiency and thus competitiveness, as well as to serve the company's growth strategy.