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Pijnenburg K. and Kholodilin K. A. Do regions with entrepreneurial neighbours perform better? A spatial econometric approach for German regions, Regional Studies. A Neoclassical production function is used to analyse the effects of knowledge spillovers via entrepreneurship on economic performance of 337 German districts. To take the spatial dependence structure of the data into account, a spatial Durbin model was estimated. The importance of the choice of the appropriate weight matrix is highlighted. Positive knowledge spillover effects via entrepreneurship and competitiveness – improving the effects of entrepreneurship capital within a certain region as well as between regions – are found. However, the significance of the spatial spillover effects largely depends on the choice of the weight matrix. This is seen as evidence that positive and negative spatial spillover effects of entrepreneurship capital cancel out.

This paper examines whether labor productivity converged across Peru’s regions (“departments”) during 2002-12. Given the large differences in labor productivity across the regions of Peru, such convergence has the potential to raise aggregate productivity and incomes, and also reduce regional inequalities. The paper finds that labor productivity in the secondary sector (especially manufacturing) and the mining sector has converged across Peruvian departments. The paper does not find robust evidence for labor productivity convergence in agriculture and services. These patterns are consistent with recent cross-country evidence and with the hypothesis that productivity convergence is more likely in sectors with greater scope for market integration, because of the effects of competition and knowledge flows. The convergence in labor productivity within manufacturing and mining has been sufficient to lead to convergence in aggregate labor productivity across departments. But because services and agriculture continue to employ the majority of workers in Peru, aggregate convergence is slower than that within manufacturing. The paper also finds that poverty rates are not converging across departments. The limited impact of labor productivity convergence on poverty could be tied to the facts that not all sectors are experiencing productivity convergence, poorer people are employed in sectors where convergence has been slower (such as agriculture), and there is very little labor reallocation toward converging sectors (such as manufacturing).

This report examines Armenia’s experience in reducing poverty and raising the welfare of the least well-off in the country in the years since 2009. What households spend on consumption is an indicator of their welfare. As the economy recovered from crisis, the least well-off enjoyed some growth in consumption spending, but not as much as in the years up to 2009. Moreover, growth has become less pro-poor in relative terms because the less well-off enjoyed lower growth in consumption than the better-off. As a result, although consumption did translate into a reduction in poverty, inequality is now higher than before 2009. In 2013, 32 percent of Armenia’s population lived below the national poverty line, a poverty rate higher than in pre-crisis years but down from the high of 35.8 percent in 2010. In fact, between 2012 and 2013, poverty reduction seems to have stalled. This report looks at the micro and macro aspects of Armenia’s poverty reduction experience to: (a) describe the key features of post-crisis poverty, inequality, and consumption growth; (b) examine the drivers of poverty reduction in this period; and (c) explore reasons why future growth might not be as pro-poor as in the past.

Horizontal inequalities (HIs) within a country, or inequalities among groups, have been shown to be an important source of violent conflict. Relevant group categorizations include religion, ethnicity, and region. HIs can also be measured in different ways. Ethnicity, language, religion, race, and region are examples of potentially relevant and salient group categorizations. In this paper the authors will review the prevailing HIs and their management in four West African countries - Cote d’Ivoire, Ghana, Mali, and Nigeria. The report provides some basic facts about these four countries, which vary greatly in area, per capita income, poverty, child mortality rates, and other features. In terms of ethnoreligious demography, it is important to note that all four countries have a highly diverse ethnic population, and three of the four (Ghana, Nigeria, and Cote d’Ivoire) have substantial Christian and Muslim populations. Each of the case study countries has had a relatively turbulent and complex political history in recent decades. The four case study countries present instructive examples of the possible (mis)management of HIs. In this paper the authors analyze the evolution and management of the prevailing HIs in each of the four cases. Section one gives introduction. Section two presents evidence on the evolution and current state of HIs in each country. Section three analyzes the main causes of the prevailing HIs, while section four focuses on the governments’ attitudes, policies, and measures toward HIs. Section five discusses the links between the HIs observed and the political outcomes. Section six draws some conclusions and makes policy recommendations for improved management of HIs in multiethnic developing countries generally, and specifically in four case study countries.

Herstellung und Betrieb von Windenergieanlagen - on- und offshore - haben sich zu einem bedeutenden Wirtschaftszweig in Nordwestdeutschland entwickelt, der absehbar die Arbeitsplatzrückgänge im Schiffbau kompensieren kann. Damit treten sowohl die Unternehmen als auch die Beschäftigten als Interessengruppen in Planungs- und Governance-Prozessen um erneuerbare Energien (EE) ein. Manufacturing and operation of wind turbines - on- and offshore - have developed into an important industry in northwestern Germany, which will soon compensate the decline of employment in shipbuilding. This turns the companies as well as their employees to stakeholders in planning and governance processes.

This paper addresses the potential effects of world agricultural trade liberalization on poverty and regional income distribution in Brazil, using an inter-regional applied general equilibrium (AGE) and a micro-simulation model of Brazil tailored for income distribution and poverty analysis by using a detailed representation of households. The model distinguishes 10 different labor types and has 270 different household expenditure patterns. Income can originate from 41 different production activities located in 27 different regions in the country. The AGE model communicates to a micro-simulation model that has around 112,000 Brazilian households and 264,000 adults. Poverty and income distribution indices are computed over the entire sample of households and persons, before and after the policy shocks. The simulated trade liberalization scenario causes agriculture to expand considerably and so, given the importance that agriculture still has for the poorest in Brazil, it has positive impacts on poverty in Brazil. The only states which show an increase in the number of poor households are Sao Paulo and Rio de Janeiro, where the bulk of the manufacturing activities in Brazil are concentrated. There is an even more positive impact on inequality. The higher fall in the poverty gap is shown to occur mainly on the poorest household groups, suggesting that the poorest among Brazil's poor will benefit more from global trade liberalization.

The purpose of this report is to provide a detailed analysis of the behavior of cropping output in agriculture between 1992 and 2006 in Vietnam at both the national and regional level. There are several motivations. The report focuses our analysis on trends with respect to how rapidly output was growing in real terms. The next parts of the chain will link output to farm incomes more directly. First this requires information on the value-added from crop production (gross output value less the cost of intermediate inputs) in order to convert gross revenue into real net income. Second, the report will have to convert 'real farm profits' measured in producer prices, to 'real incomes' that link to farmer welfare, utilizing the Consumer Price Index (CPI) for rural households. Third, the period 1992 through 2006 has been one of considerable change in the economic and policy environment that might affect the growth of agriculture. In this report, the report focus only on the trends in real output at the national and sub-regional level, and save the latter two links of the chain for future work.