Search

While there is a correlation between economic growth and the increase in living standards, economic theory is evident in the purpose of the Gross Domestic Product (GDP) measurement. GDP measures only the production capacity and economic growth, not the nation's development, as often claimed by policymakers. Furthermore, as several studies show, by focusing on economic growth and neglecting the other two crucial systems, the ecosystem, and the social system, we will not be able to achieve economic growth in the future. Since the GDP was developed in 1937, it has faced criticism not only for its limitation related to its construction. Also, the concept of economic growth is currently being challenged and being replaced by the pursuit of sustainable development. Therefore, the role of GDP, as an economic growth indicator, in our economy needs to be clarified and re-assessed. The main aim of this paper is to investigate the usefulness of the GDP in the era of sustainable development. To achieve this, we investigated the historical development of various measures of economic growth, as well as the historical development of the GDP as an economic growth metric. Furthermore, we argue that the future of GDP should be in the multi-dimensional indicators, which are used to measure the sustainable development of a country, as opposed to a self-standing single-dimensional measure of economic growth. As a case study, we also construct two measures, based on Analytical Hierarchical Process (AHP) using the free online software 'SuperDecisions: our Simple three-dimensional index of the nation's growth and the enhanced holistic three-dimensional index - Holistic Nation's Growth Index. Using the AHP method, we showcase the difference between the countries' rankings if we consider only economic growth and if we focus on the country's development more holistically. Our comparative study reveals that it is not enough to look only at three main systems, the economic, social, and ecosystem while assessing the countries' development. It is necessary to also investigate and try to capture the relationships between those three main systems. [ABSTRACT FROM AUTHOR]

Measurement of an economic indicator or phenomenon starts by defining it first and determining its components. Tax evasion as a component of the underground economy is a phenomenon that is hard to be observed and estimated because of its hidden nature. To be able to compare the figures for tax evasion from different countries, there is the need for a definition internationally accepted. This paper aims to make a literature review on the phenomenon and to find a definition that is widely accepted. In this area, not only the literature review is important but also the legislation from different countries. We will look closely at the definition of tax evasion given by the legislation of different countries from the EU and the USA. In the literature, there are several methods to estimate the underground economy. There are direct methods (questionnaire), indirect methods (indicator methods), and statistical methods (MIMIC), but all of them have their shortcomings. In the paper, all the shortcomings of each method used in the present are discussed to estimate the underground economy. As a conclusion, we can state that at the present moment there is not a definition internationally accepted for the underground economy, making it hard to estimate and to compare the results from different countries. In addition, the methods used to estimate the phenomenon have advantages and disadvantages. None of the methods is better than the other. When estimating the underground economy, it is advised to use more than one method. At this moment it is safe to say that the link between theory and empirical estimation is still unsatisfactory. [ABSTRACT FROM AUTHOR]

This paper seeks to provide new empirical evidence that demonstrates the importance of digital technologies in promoting economic growth, drawing on the literature on advances in growth and leveraging a broader and more robust country-level panel dataset. In particular, this paper estimates the long-run economic impact of digital technologies using mobile phone penetration and internet usage as broad indicators. The empirical results suggest that, between 2004 and 2014, the diffusion of digital technologies significantly improved economic output in Australia and abroad, contributing to steady-state gross domestic product per capita growth of approximately 5.8 per cent on average. These findings could serve as the starting-point for predictions about the likely impact of future technologies, providing a better understanding for policy-makers in prioritising initiatives that will continue to lift living standards in the coming years. [ABSTRACT FROM AUTHOR]

China's official real GDP growth has held surprisingly stable in recent years. As national GDP figures influence both policy analysis and political decisions, the GDP growth rate of the massive Chinese economy has also great international implications. Taking the nominal GDP growth and price index data as given and experimenting with alternative deflators, this paper attempts to track missing fluctuations in real GDP growth in recent years. Based on the constructed growth series, real GDP growth decreased during 2015-2016 and picked up in 2017. Growth has been again decelerating this year. Furthermore, the constructed growth rate seems to be well below the recent official figures. [ABSTRACT FROM AUTHOR]

Theory and practice suggest that entrepreneurship is the engine of economic growth. The speed with which a nation moves from economic growth to economic development depends on the performance of entrepreneurial initiatives. Given the role played by entrepreneurship for the development of an economy, increasing its performance can help the development of national markets and the increase in national competitiveness. The main objective of our paper is to investigate the link between entrepreneurial performance and economic development of countries. The research was carried out on a sample of 27 European Union countries in a period of twelve years. We used panel data regression models. As dependent variables for expressing the economic development, we considered the global competitiveness index and the gross domestic product per capita growth. As independent variables, we used a set of indicators measuring entrepreneurial performance. Our findings highlight the significant role played by increased entrepreneurial performance for enhancing the economic development of EU countries. We also find that some indicators expressing entrepreneurial performance might have different effects on the economy depending on the stage of economic development of countries. Our research provides empirical evidence regarding the need for performant entrepreneurial activities for enhancing economic development. [ABSTRACT FROM AUTHOR]

Socio-economic development of EU countries has been and remains a constant concern of specialists in the field in recent years, reflected in a country's welfare analysis by socio-economic factors. The study shows that while some European Union countries have a high level of GDP, it lags behind other countries if we consider other indicators showing the level of socio-economic development. The paper evaluated and compared disparities between the 28 EU countries based on a set of indicators that combine relevant economic and social data. The indicators used in research provide insight into three key areas for sustainable development- economic development, innovation, competitiveness and employment. The method used is that of real rank, resulting in a ranking of them according to the importance given to each indicator in terms of information content. [ABSTRACT FROM AUTHOR]

The objective of this paper is to analyze the governments spending - economic growth nexus and examine the asymmetries in the adjustment process between the two in the Croatian and Slovenian economy. The baseline relationship model between the variables of interest is grounded on the assumption of Wagner's Law and Keynesian hypothesis. A possible nonlinear asymmetric effect of governments spending and GDP toward their long-run equilibrium is tested for each case. The test results indicate the presence of nonlienarity in the relationship between public spending and GDP in Croatia and Slovenia as well. Eventually, country specific threshold cointegrating relationship between the considered variables are estimated and tested. The results reveal well suited threshold vector error correction model with significantly different error correction adjustments in normal and stress regimes for each of the two sample country. [ABSTRACT FROM AUTHOR]

The aim of this paper is to highlight the importance of trade in fruits in Romania, what share does it have in the European and global trade, to show what is its contribution to the development of national economy and how does it affect the GDP of agriculture in Romania. Trade represents a form of human activity hat achieved along time the strongest connection between peoples, contributed to the development of economies and societies. The analysis methods used in order to highlight the changes occurred on the fruit market in Romania are as follows: the grouping method, the degree for covering the import by exports, correlation method. Analysing the correlation in Romania between fruit production, the value of agriculture GDP, and fruit import, a significant correlation is noticed, and the increase of fruit production has a positive impact on GDP and helps diminishing the imports. For the situation to be improved, fruit production increase is advisable, by increasing productivity as a result of using more efficient technologies, setting up associations of producers, building storage facilities. [ABSTRACT FROM AUTHOR]

This paper shows the economic development of the South-East Region of Romania, since 2007 until present. The research questions are the following: which are the main indicators that can determine the economic development on the level of Region and, also, which are the predictions about economic development of the Region? In this order were identified and analyzed significant economic indicators, such as gross domestic product at regional level; gross domestic product by category of resources; GDP per capita; number of private entrepreneurs; the number of active local units; staff of active local units; gross and net investments. Economic development of the South-East Region is possible because of foreign investments that contributed to replace old technologies with new technologies, to create jobs and increase productivity. For this study data were taken from the National Institute of Statistics and the National Forecast Commission. [ABSTRACT FROM AUTHOR]

This paper highlights the economic situation of Romania's West Region for a period of five years, based on some specific indicators. The most relevant indicators which are part of the analysis of the regional economic evolution are as following: gross domestic product per capita; the turnover; the number of employees in active local units; gross and net investments. Within this scientific paper there was presented a prognosis of gross domestic product per capita, from 2015 to 2017. This macroeconomic indicator gives wide information over the economy in a region. The indicators analyzed in this study recorded oscillations from an year to another which demonstrates that the economy in the West Region is able to develop, but recording different growth rates. In comparison with other regions in Romania, the West Region will distinguish by an industrial branch that gathers almost all the areas. The development of this area is both due to direct foreign investments and qualified employees. An economic leader of the region is Timis country, followed by Arad country. West Region has a big potential of development given to the existent resources, geographic settlement and an entrepreneurial environment that is capable to transform the opportunities in profitable business. [ABSTRACT FROM AUTHOR]

The paper analyses how changes in GDP in China, the USA, the EU15 and the USSR/Russia over a period of 50 years (1961-2011) were affected by change of intensive factors and change of extensive factors. Intensive factors consist primarily of technological progress. Extensive factors are the amounts of labour and capital. Th e analysis does not use growth accounting, but instead works with the 'dynamic parameters' of intensity and extensity. Contrary to the values of growth accounting, these parameters can be calculated not only for situations of GDP growth, but also for situations of GDP contraction and stagnation. They thus provide a complete picture of GDP development. Th e paper briefly explains the methodology for deriving the parameters. Their values for each territory are then analysed. Th e results show that the parameters are able to describe the real development of GDP and their information value is very high. [ABSTRACT FROM AUTHOR]

Any economy goes through a cyclical evolution, the analysis of which makes the object of study of many specialists in the field, be they part of the macroeconomic decision organisms or simple researchers. Given both the existence of atypical economic cyclicities and the difficulties in correctly forecasting the impact force or even the influence direction, at macroeconomic level, of some key internal and external factors, the questions related to the expected evolution, from a macroeconomic perspective, are a continuous source of thorough analysis. The trend of the gross domestic product, the identification of the main elements determining such pattern, the trade balance, the budgetary deficit or the public debt are just some of the most important topics of research approached in order to anticipate the way an economy might evolve in the near or far future. This is also the intention of the authors of the current paper, who, based on the well-grounded pieces of information provided by the National Bank of Romania, via its financial stability reports, observed in the last five years, undertake to reveal the evolution registered in Romania during this period, as well as to forecast the direction in which the target country is going. [ABSTRACT FROM AUTHOR]

This paper presents models of economic growth for all states of the European Union (EU), since either 1970 or the year of accession to the EU. Both integer and fractional order models are obtained, where the gross domestic product (GDP) is a function of the country's land area, gross capital formation (GCF), exports of goods and services, and average years of school attendance. [ABSTRACT FROM AUTHOR]

This paper reflects the architecture of the methodology for to achieve the statistical modeling of the trend concerning the correlation between the Happy Planet Index and the Gross Domestic Product per capita in Romania, between 2006-2013. with the help of the „Least Squares Method". Also, this paper reflects the manner in which we can to measure the intensity of the correlation between the Happy Planet Index and the Gross Domestic Product per capita in Romania, between 2006-2013 with the help of the Correlation Raport. [ABSTRACT FROM AUTHOR]

This paper is intended to present the current situation, but also the perspective of China's economy, taking into account the different trends of the world scene. We will analyze the contribution to global growth, according to the main regions of the world, to identify the place occupied by China and to present a series of relevant indicators (Real Gross Domestic Product, Consumer Price Index), then identify areas where China excels, being a competitive, representative market. At the same time, we want to retain various opportunities and risks for the Chinese state, considering both domestic issues (policy decisions, tax measures, etc.), as well as aspects of the international market (price depression, changes in global demand). [ABSTRACT FROM AUTHOR]

This paper proposes to determine the weight of industry in the economic growth of the ECOWAS region. The study is based on the zone approach and entirely uses the statistical tool. Thus, in the context of improving the economic performance of the ECOWAS region in terms of economic growth, the low overall rate of change in real GDP per capita (1,95%) obtained during 1991 and 2014 certifies that enormous efforts are still to be conducted in this community. On the other hand, the small but still appreciable contributions of the value added of the industry to the real GDP of ECOWAS (0,9% in 2012, 0,8% in 2013 and 1,5% in 2014) show that an improvement in the region's industrial structure is enough for the region to see its growth rate increase. In addition, the low evolution of real GDP per capita, which is often short-term, also suggests that economic growth in the ECOWAS region is unstable and heterogeneous. Improved economic performance via growth rate of ECOWAS requires a better valuation of the secondary sector by the authorities. The latter must make this sector a fast growing and diversified growth engine, especially through good industrial policies. In fact, it is mainly about a better valuation of the natural resources of the region, for example of agricultural productions. This could contribute to the endogenous transformation of these products and develop the intra-regional trade, which in turn will lead to regional integration that is also one of the main objectives of the community. [ABSTRACT FROM AUTHOR]

The present endeavor measures the extent of the nexus between financial development and economic growth by utilizing annual macroeconomic panel data for selected 14 Asian economies. The study focuses on the link between the indicators of financial development and economic growth. The results of panel cointegration analysis suggest that there is two-way cointegration relationship from GDP to GCF and BM in short-run as well as in long-run however, the relationship is one-way, that is, from GDP to DCPS as well as from GDP to DCBS. The findings of the present study establish strong indications of the positive long-run relationship among all the selected indicators of financial development and economic growth. Moreover, the present attempt also indicates that gross capital formation and broad money are critical for economic growth and suggests that upliftment of economic growth of the economies improves the development of financial sector. [ABSTRACT FROM AUTHOR]

In this paper, we have explored the relationship between three key indicators of the health of any economy, namely, human development index (HDI), foreign direct investment (FDI) and gross domestic product (GDP). Three alternative models were assessed in the study to investigate the dynamics of the cause and effect relationship between the three variables. Thirty countries were selected for the purpose of the study on the basis of a positive change in their HDI ranks from 2012 to 2017. Further, the countries were categorized into countries with very high, high, medium and low HDI ranks. Annual FDI, HDI and GDP data for the period from 1990 through 2016 were used to investigate the nature of the relationship among the selected variables. The proposed models testing the outcome-explanatory variable relationship between FDI, HDI, and GDP were tested using cointegrating regression with panel dynamic least square model (DOLS) and panel fully modified least square model (FMOLS). The findings of the study show that HDI and FDI are the statistically significant variables that positively impact the changes in GDP. Further, the impact of HDI is of larger magnitude than FDI. However, GDP and FDI were not found to exert any statistically significant impact on HDI for the period under the study. Similarly, HDI and GDP were also not found to exert any significant impact on FDI. Before applying DOLS and FMOLS, stationarity was confirmed using five panel unit root tests, namely, LLC, IPS, Fisher-type tests using ADF and PP and Hadri. Thereafter, Pedroni residual cointegration test and Kao residual cointegration test were used to confirm the existence of cointegration among the variables, which is a necessary condition for applying DOLS and FMOLS. The study has key implications for the policymakers in search of models and plans to boost GDPs of their respective countries. Since HDI exerts more than proportionate positive impact on GDP, governments can focus on improving the three components of HDI, namely, life expectancy, adult literacy and education enrolment to promote economic growth. Further, since FDI exerts a positive impact on GDP, policymakers can strategize to make more friendly policies to attract foreign investors. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Ciencias Sociales (13159518) is the property of Revista de Ciencias Sociales de la Universidad del Zulia Venezuela and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The relationship between economic growth and energy is a widely researched topic in the world of economics and there are quite many studies on the relationship between energy and sectoral output; however, to the best of our knowledge there have been none in the context of Bangladesh. This paper examines the causal relationship between energy consumption and output growth of Bangladesh both at aggregate and sectoral level using the annual data from 1980 to 2014. For the purpose of our study we have used the GDP at constant local currency as an indicator of economic growth while energy use has been used as a proxy for energy consumption. These variables have been taken from World Development Indicator (WDI) 2015 published by World Bank and EViews 7.0 has been used to run the tests in this study. To test our data for stationarity, we have run two tests which are the Augmented Dickey-Fuller (ADF) test and the Phillips-Perron (PP) test. Then to test for cointegration and causality between the variables, we used the Johansen cointegration method and the Granger Causality tests respectively. We find the variables to be stationary after running both the Augmented Dickey-Fuller (ADF) test and Phillips-Perron (PP) test. Using the Johansen cointegration method, we find that all the variables are cointegrated. Granger Causality tests reveal that at the aggregate level there is unidirectional causality running from GDP to energy consumption. Similarly, at the sectoral levels, there is unidirectional causality running from agricultural, industrial and services sector output to energy consumption. However, Vector Error Correction Model (VECM) test observes no causality between energy consumption and output at the macro level and at the sectoral level in the short run. Thus we can conclude that GDP or sectoral output is not energy dependent in Bangladesh and our findings are also consistent with the conservation hypothesis. Moreover, our short run results are consistent with the neutrality hypothesis. This further strengthens our conclusion that the economic growth of Bangladesh is not energy dependent. These results have important implications for policy as energy conservation policies can be applied in Bangladesh without hurting growth. Furthermore, it is evident that implementing subsidies in the energy sector will not contribute in achieving growth and cost reflective pricing policy would be more effective in Bangladesh. Nevertheless, the government of Bangladesh should invest in efficient energy production and utilize the various energy sources available to Bangladesh. [ABSTRACT FROM AUTHOR]

The Genuine Progress Indicator (GPI) was designed to reveal the economic, social, and environmental trade-offs associated with conventional economic growth as traditionally measured by Gross Domestic Product (GDP). Although originally designed for use at the national scale, an interest has developed in the United States in a state-level uptake of the GPI to inform and guide policy. This study presents the first fifty-state estimate for U.S. GPI in order to address questions over its design, implementation, and ultimate potential as a tool to guide state-level economic policy. Following a review of the current state of analysis and critique of GPI, we provide an overview of methodology and database development. Results are then presented, including discussion of lessons learned through a fifty-state application. The paper concludes with suggestions for further research and next steps to consolidating a consistent methodology. [ABSTRACT FROM AUTHOR]

The comparative analysis of Romania's Development Regions emphasizes the process of increasing disparities of economic and social development between regions during the post-crisis period. Development differences between the most developed region (Bucharest - Ilfov) and the least developed (North-East Region) in terms of GDP per capita grew nearly three times. Meanwhile, the disparities are increasing between regions situated in the western half of the country (North-West, Centre and West), all these regions recording positive economic developments as marry economic and social development indicators ' show consistent growth, and the ones situated in the eastern half of the country (North-East, South-East, South andSouth-West), which are less development. The paper presents a concise analysis of the labour for each of Romania's development regions. [ABSTRACT FROM AUTHOR]

The paper presents a comparative analysis of Romania's GDP and other European countries' GDP, as a response to social media debate on the fact that Romania seems to have the highest economic growth. The purpose of the research is to signal a series of inconsistencies between the GDP indicator and the economic reality of a country. In this sense, we propose an assessment of the level of GDP in Romania and in other countries, as well as the growth rate of GDP. We also want to highlight other representative aspects of a country's assessment such as the debt ratio or the uneven income distribution, which are more representative than the GDP indicator. In this context, we want to emphasize that an isolated analyzer can distort the real image. At the same time, the issue is alarming if we recall some other negative events, such as the 2008-2009 period, when Romanian society, being encouraged by a fictitious explosion of GDP, has developed an unsustainable, debt-based economy. [ABSTRACT FROM AUTHOR]

Existing research suggests a link between a country's infrastructure quality and its economic performance. However, no country can invest in all types of infrastructure across the country. Therefore, it is critical to identify and assess multiple indicators of infrastructure for regions within a country and focus on improving infrastructure as identified by the weak indicators. Research investigating the determinants of regional wealth and economic growth is limited. In this comprehensive research including all 35 regions in Austria, we began by evaluating the relationship between logistics-related infrastructure and regional gross domestic product. In the process, other indicators, and mediators such as knowledge infrastructure, business attractiveness emerged as impacting gross domestic product. The findings help to better understand the relative importance of diverse logistics indicators influencing regional economic development and provide insights for policy decision-making. [ABSTRACT FROM AUTHOR]

The effects of the COVID-19 pandemic were global and led to an economic decline in most countries of the EU. The development and values of economic indicators varied from country to country and showed significant regional differences. The study evaluates the coverage of selected economic indicators in the Member States of the EU in the period 2010–2020. The analytical part is based on empirical statistical data. As a methodological procedure for testing the convergence of the EU, we compared the results of the coefficient of variation of GDP per capita in PPP and the unemployment rate. The findings of this study confirm the predicted development trends. The pandemic has reversed major convergence trends. Divergence within the EU was affected by a lower decline in GDP in the developed countries of the EU. The tendencies of social disparities in the unemployment rate were different from the development of the coefficient of variation of GDP per capita. The first year of the pandemic marked a decline in disparities between the countries of the EU. For future research, we recommend monitoring the development of convergence in the next pandemic period. [ABSTRACT FROM AUTHOR]

The war affects the socio-economic state of Ukraine and is the cause of the deterioration of the economic situation of neighboring countries. Under such conditions, there is a need to carry out assessments of economic losses from the conduct of military operations and forecast the main economic indicators for the nearest period, taking into account the impact of the war. The purpose of the study is to calculate the losses to the economy, the destruction of residential facilities and critical infrastructure facilities in the first 100 days of the war, the assessment of the potential volume of the fall in GDP and the calculation of projected fiscal losses. The calculation of GDP reduction was based on the forecasts of the International Monetary Fund, the World Bank Group and the Government of Ukraine. The expected amount of GDP reduction is calculated using the GAP-analysis method, based on the forecasts made by these institutions in the prewar period, and the calculation of the level of GDP during the war. Based on the results of the conducted research, it was established that the economic losses from the war consist not only of the losses incurred and the reduction of GDP volumes, but also of the lost opportunities for development and unearned profits. In addition to the reduction in GDP, Ukraine's losses are manifested in the increase in the level of public debt, the depreciation of the national currency, the reduction of gold and currency reserves, and the outflow of foreign direct investments3. [ABSTRACT FROM AUTHOR]

The study aims to know the role of financial system and its developments in Iraq in order to improving sustainable development in its three dimensions (economic, social and environmental) with having been obtained quarterly data for both indicators of financial and sustainable development duration of a period of study extending from 2004-2020. Hence, the relationship was estimated by employing the statistical program (EViews), by applying the methodology of cointegration, and applying the autoregressive model which have periodic of distributed slowdowns (ARDL), and obtaining the absence of a long-term complementary relationship between indicators of financial development and sustainable development, this indicates that financial development did not contribute to achieving sustainable development. The reason behind that is the harsh conditions that the Iraqi economy experienced at the security and political level during that period, on the other hand, the study proofed the existence of a long-term complementary relationship between financial development and the economic dimension which represented by the indicator of the ratio of credit granted to the private sector then to the gross domestic product, this change that takes place in financial development adapts with the credit granted for a period of 50 days only. [ABSTRACT FROM AUTHOR]

The economy of Singapore is characterised by a stable political environment, favourable business conditions and very well-developed infrastructure attracting foreign direct investment, being the driving force of the economy. It is highly dependent on export, as well as on the dynamic sectors of transport, business and financial services. Singapore's natural deep-sea ports and the geographical location at the crossroads of important shipping channels makes its trade a major economic sector, next to production and services. There are currently more than 5,000 maritime companies operating in Singapore, including over 130 international shipping groups, which constitute an important pillar for the international maritime transport hub. This article discusses Singapore's economic situation by analysing the dynamic GDP growth over the years 1960-2016 as well as other economic indicators achieved in 2004-2017, including the dynamics of foreign trade. This research covers the port's ownership and organisational structure, and its terminals have been reviewed in terms of their location, infrastructure and functions by taking into account the new generation terminal of the port of Tuas, currently under development. Over the years, the port has seen a steady increase in revenue from transhipment, which is confirmed by the dynamics of the container volume growth over the years 1972-2017, the transhipment volume over the years 2007-2018 and the number of container ships calling at the port along with their total capacity over the years 2007-2017, as elaborated in the article. [ABSTRACT FROM AUTHOR]

The Beveridge-Nelson decomposition based on autoregressive models produces estimates of the output gap that are strongly at odds with widely held beliefs about transitory movements in economic activity. This is due to parameter estimates implying a high signal-to-noise ratio in terms of the variance of trend shocks as a fraction of the overall forecast error variance. When we impose a lower signal-to-noise ratio, the resulting Beveridge-Nelson filter produces a more intuitive estimate of the output gap that is large in amplitude and highly persistent, and it typically increases in expansions and decreases in recessions. Notably, our approach is also reliable in the sense of being subject to smaller revisions and predicting future output growth and inflation better than other trend-cycle decompositions that impose a low signal-to-noise ratio. [ABSTRACT FROM AUTHOR]

This research aims to examine whether income inequality affects economic performance at the regional level, which is mediated by entrepreneurship. By considering hierarchical preferences in consumption, it assumes that income inequality has a negative influence on regional economic growth because it lowers the incentive to innovate. Using a structural equation model, the effect of income inequality on regional economic performance, as well as the mediating effect of entrepreneurship, is tested. The results show that income inequality negatively affects both entrepreneurship and economic growth. This result suggests that insufficient demand for new products/services hampers entrepreneurial activities as well as regional economic performance. The findings contribute to the field, highlighting that entrepreneurship mediates between income inequality and economic performance based on demands. [ABSTRACT FROM AUTHOR]

This study analyzes the role of economic indicators in country-level innovation, represented by patents in the technology sector. Innovation indicators include the ratio of patents owned by foreign residents and the number of patent applications in each industry in the technology sector. Economic indicators include GDP, gross national income, labor cost, R&D expenditure, real minimum wage, tax revenue, and education enrollment. The data for OECD countries collected from stats.oecd.org for 2000 to 2010 is analyzed using Cognos. Results show that countries with low GDP rely on foreign collaboration for innovation; education enrollment stimulates innovation; among the sectors, government and higher education have higher R&D expenditures than private and non-profit sectors. A significant contribution of our research lies in the dimension of internationalization and ownership of technology innovation. We suggest viable solutions for countries facing tax revenue losses arising from mobility of patents. [ABSTRACT FROM AUTHOR]