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In this paper, we develop an endogenous growth and international trade model with two countries in which equilibrium wages in the two countries are different between two countries. First, when trade costs are high, the share of manufacturing firms in the large country increases with a decline in trade costs because of market size. However, the share of firms then decreases with a decline in trade costs when trade costs are low because of wage differences. Finally, all firms agglomerate in the small country, since production costs in the small country are low. In this process, the innovation sector shifts its location from the large-market and high-wage country to the small-market and low-wage country. [ABSTRACT FROM AUTHOR]

This paper employs a spatial Durbin growth model to estimate the impact of trade openness on regional per capita income in Brazil using a data set of 469 Brazilian micro-regions over the period 2004-2007. We calculate the direct, indirect and cumulative impact on per capita income of trade openness and human capital in these micro-regions. Results indicate that greater trade openness in a region promotes economic development locally, while exerting negative influence on per capita income of the neighbouring regions. Our findings also show that human capital has a positive - direct and indirect - impact on the economic development of Brazilian micro-regions. [ABSTRACT FROM AUTHOR]

The economic growth literature suggests that knowledge spillovers are subject to distance decay effects. In this paper the main aim is to provide a theoretical framework and empirical evidence on the role played by other kinds of proximities, namely relational, social and technological proximity, in explaining productivity growth. Using a sample of 249 EU 27 NUTS 2 regions in the period 1990-2004, semiparametric spatial autoregressive models are estimated. Results provide evidence of a positive role of social and relational proximities as important channels of knowledge spillovers, and on the fact that, when simultaneously present, different kinds of proximities generate synergic effects on growth. Resumen La literatura sobre el crecimiento económico sugiere que los spillovers de conocimiento están sujetos a efectos de deterioro por distancia. El objetivo principal de este artículo es proporcionar un marco teórico y pruebas empíricas sobre el papel desempeñado por otros tipos de proximidades (relacional, social y tecnológica), a la hora de explicar el crecimiento de la productividad. Utilizando una muestra de 249 regiones NUTS 2 de la UE 27 para el período 1990-2004, se estiman modelos autorregresivos espaciales semiparamétricos. Los resultados aportan pruebas del papel positivo de las proximidades sociales y relacionales como canales importantes de spillovers de conocimientos, y del hecho de que, cuando se presentan simultáneamente, los diferentes tipos de proximidades generan efectos sinérgicos sobre el crecimiento. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of public investment on regional economic growth and convergence at the NUTS 3 level in Greece. Using a new database of public expenditure per region for the period 1978-2007, it proposes a model which captures not just the impact of public investment in Greek prefectures, but also the spillover effects related to the existence of externalities from neighbouring regions. The results point to a positive long-run impact of public investment per capita on regional economic growth - but not on convergence - which also generates considerable spillover effects. However, the returns vary according to different types of public investment, with education and infrastructure spillovers having the highest impact. In general, public investment externalities seem to be more relevant for regional growth than direct public investment in each region. Finally, the impact of different types of public investment in Greece is mediated by politics and political factors, but the effect of politics disappears once we control for political-period-specific spatial-invariant variables. Resumen Este artículo estima el impacto de la inversión pública en el crecimiento económico regional y la convergencia a nivel NUTS 3 en Grecia. Haciendo uso de una nueva base de datos de gasto público por región para el periodo 1978-2007, se propone un modelo que identifica no solamente el impacto de la inversión pública en las prefecturas griegas, sino también los efectos de spillover relacionados con la existencia de externalidades procedentes de regiones vecinas. Los resultados apuntan a un impacto positivo a largo plazo de la inversión pública per cápita en el crecimiento económico regional - pero no en la convergencia - el cual genera unos efectos de spillover considerables. Sin embargo, los retornos varían de acuerdo con los diferentes tipos de inversión pública, siendo la educación y los spillovers de infraestructura los de mayor impacto. En general, las externalidades de inversión pública parecen tener una mayor relevancia para el crecimiento regional que la inversión pública directa en cada región. Para terminar, el impacto de los diferentes tipos de inversión pública en Grecia se ve influido por sus políticas y otros factores políticos, pero el efecto de las políticas desaparece una vez que se controlan las variables espacialmente-invariantes de tipo político ligadas a un periodo específico. [ABSTRACT FROM AUTHOR]

The Summer Olympics bring hundreds of thousands of visitors and generate upward of $10 billion in spending for the host city. This large influx of tourism dollars is only part of the overall impact of hosting the Olympic Games. In order to host the visitors and sporting events, cities must make sizable investments in infrastructure such as airports, arenas, and highways. Additionally, the publicity and international exposure of a host city may benefit international trade and capital flows. Proponents argue that this investment will pay off through increased economic growth, but research confirming these claims is lacking. This paper examines whether hosting an Olympiad improves a city's long-term growth. In order to control for the self-selection of cities that host Olympic Games, this paper matches Olympic host cities with cities that were finalists for the Olympic Games, but were not selected by the International Olympic Committee. A difference-in-difference estimator examines post-Olympic impacts for host cities between 1950 and 2005. Regression results provide no long-term impacts of hosting an Olympics on two measures of population, real Gross Domestic Product per capita and trade openness. ( JEL O18, R11) [ABSTRACT FROM AUTHOR]

This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995-2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure revealed relatedness between industries. The first method is based on Porter's cluster classification while the second method uses the proximity index proposed by Hidalgo et al. Our analyses show that Spanish provinces with a wide range of related industries tend to show higher economic growth rates, once we control for other determinants of growth. Este artículo investiga si la variedad relacionada, entre otros tipos de externalidades espaciales, afectó el crecimiento regional en España a nivel NUTS 3 durante el periodo 1995-2007. Hallamos pruebas de que la variedad relacionada influye en el crecimiento entre regiones, especialmente al utilizar dos métodos nuevos que miden el grado de conexión manifiesto entre industrias. El primer método está basado en la clasificación de conglomerados de Porter, mientras que el segundo método utiliza el índice de proximidad propuesto por Hidalgo et al. Nuestros análisis muestran que las provincias españolas con un amplio rango de industrias relacionadas tienden a mostrar tasas de crecimiento económico más altas, una vez que se logra controlar otros factores determinantes del crecimiento. [ABSTRACT FROM AUTHOR]

This paper provides a spatial neoclassical growth model for a system of N regional economies. Regional output growth is determined by interregional fixed capital relocations which depend on initial factor endowments as well as a region's relative location in space. The dynamics of the model are captured by a Taylor approximation, which provides a testable spatial econometric model specification that is applied for European regions on the NUTS 2 level. Both theoretical and empirical results show how relatively high human capital endowments are beneficial to growth if found within one region, but disadvantageous if found in neighbouring regions. Este artículo proporciona un modelo de crecimiento neo-clásico espacial para un sistema de N economías regionales. El crecimiento del producto regional viene determinado por deslocalizaciones interregionales de capital fijo que dependen de la dotación de factores inicial, así como de la relativa localización espacial de una región. Las dinámicas del modelo son capturadas mediante una aproximación de Taylor, que proporciona una especificación comprobable de modelo econométrico espacial que se aplica a regiones europeas a nivel NUTS 2. Tanto los resultados teoréticos como los empíricos muestran como las dotaciones relativamente elevadas de capital humano son ventajosas para el crecimiento cuando se concentran en una región, pero una desventaja si se encuentran en regiones vecinas. [ABSTRACT FROM AUTHOR]

Relatedness has become a key concept for studying the diversification of firms, regions and countries. However, studies tend to treat relatedness as being time‐invariant or, alternatively, consider its evolution as exogenously given. This study argues that relatedness is inherently dynamic and endogenous to technological and economic developments. Using patent data, we test the extent to which relatedness between technologies developed along co‐location and differences in technological complexity in 1980–2010. Our results show that co‐located technologies are more likely to become related over time. Moreover, our results suggest that co‐location and complexity of technologies are conducive to the intensification of relatedness over time. [ABSTRACT FROM AUTHOR]

The purpose of this paper is two-fold. First, in the context of a spatial model we generalize two indices. One is a dynamic generalization of the emanating effect that was introduced by Kelejian and colleagues. This index describes how events in one unit spill over time to other units due to spatial interactions. As an analogy, it corresponds to the effect that the smoking habits of a given teenager might have on the smoking habits of each of his/her friends. In a sense, our second index, termed the vulnerability index, is the reverse of the first one in that it describes the response of a given unit over time to events in neighbouring units. The analogy here would be how the smoking habits of a given teenager is affected by the smoking habits of all of his/her friends. Second, we empirically implement our indices in the context of a model explaining GDP per capita growth in various countries. In this context the vulnerability index describes the sensitivity of GDP growth in one country with respect to events in other countries; the emanating effect describes how events in one country effect the GDP growth in other countries. Resumen Este artículo tiene un doble objetivo. En primer lugar, y dentro del contexto de un modelo espacial, generalizamos dos índices. El primero es una generalización dinámica del efecto de emanación introducido por Kelejian y colaboradores. Este índice describe cómo lo que sucede en una unidad se extiende con el paso del tiempo a otras unidades por motivos de interacciones espaciales. A modo de analogía, se corresponde con el efecto que podría tener el hábito de fumar de un adolescente en el hábito de fumar de cada una de sus amistades. En cierto sentido, nuestro segundo índice, denominado índice de vulnerabilidad, es lo contrario del primero ya que describe la respuesta de una unidad a lo que sucede en unidades vecinas con el paso del tiempo. La analogía en este caso sería el efecto que podrían tener los hábitos de fumar del conjunto de amistades de un adolescente en particular en su consumo de tabaco. En segundo lugar, realizamos una implementación empírica de nuestros índices dentro del contexto de un modelo que explica el crecimiento per cápita del PIB en varios países. Dentro de este contexto, el índice de vulnerabilidad describe la sensibilidad del crecimiento del PIB de un país en relación con lo que sucede en otros países, mientras que el efecto de emanación describe como lo que sucede en un país afecta al crecimiento del PIB de otros países. [ABSTRACT FROM AUTHOR]

This paper seeks to understand how the determinants of economic growth in Brazil may manifest themselves differently on various spatial scales between 1991 and 2000. Analysing this issue sheds light on the modifiable areal unit problem (a measurement issue). In addition, it also suggests potential explanations for the origin of this variability. This latter issue relates to the scale-dependent determinants of economic growth (a structural issue). The analysis reveals that the results change as the scale level changes and suggests a general framework for dealing with multiple spatial scales and model uncertainty. Moreover, the extent of the effects of spatial externalities and the issue of spatial heterogeneity are investigated. Resumen El objetivo de este artículo es entender como los factores determinantes del crecimiento económico de Brasil pueden mostrarse de manera diferente según la escala espacial entre 1991 y 2000. El análisis de este tema ilustra el problema de la unidad de superficie modificable (problema de medición). Además, sugiere también posibles explicaciones para el origen de esta variabilidad. Este último asunto esta relacionado con los factores dependientes de la escala que determinan el crecimiento económico (un problema estructural). El análisis revela que los resultados cambian a medida que lo hace la escala y sugiere un marco general para tratar con escalas espaciales múltiples y modelización de incertidumbre. Además, se investiga el alcance de los efectos de las externalidades espaciales y el problema de la heterogeneidad espacial. [ABSTRACT FROM AUTHOR]

The goal of this paper is to revisit Paolo Mauro's influential paper on corruption and growth focusing on the strength of his results under weak identification. The instrument used in his original paper is found to be 'weak' as defined by the literature on weak instruments. Our results suggest that there is a high probability that the parameters of interest are locally almost unidentified. We also investigate other instruments commonly used in the corruption literature and obtain similar results. After identifying an instrument with sufficient strength, we fail to reject a zero effect of corruption on investment and economic growth. ( JEL C31, D73) [ABSTRACT FROM AUTHOR]

This paper investigates cultural dimensions and processes of exclusion in rural Ireland and Russia that impact upon marginalised rural people by making them poor. It employs Bourdieu and Passeron’s (1977) concept of cultural capital, which provides understanding of both structural effects of cultural discrimination and individual strategies of cultural reproduction on well-being. First, it explores the function of cultural capital as a power resource that can be used to monopolise certain cultural preferences. Second, the paper studies the function of cultural capital to mark cultural distance and to put people with less-valued cultural resources in a disadvantaged position that can limit poor people’s access to social settings and resources. Third, the paper investigates the function of cultural capital to exclude individuals by means of regulating their aspirations and cultural dispositions, which degrade social bonds and limit people’s sources of economic growth. The results of this study reveal the complexity of classificatory effects of cultural practices on poverty and argue against treating culture as a residual category in poverty studies. It takes on board the findings from this study to critically re-evaluate certain stereotypes of hardship and to articulate the need for a broader understanding of rural poverty. [ABSTRACT FROM AUTHOR]

As Arbo and Benneworth (2007) have alerted us, higher education institutions are now expected not only to conduct education and research, but also to play an active role in the development of their economic, social and cultural surroundings. They call this the ‘regional mission’ of HEIs. This paper is concerned with cultural engagement. Research on universities’ cultural engagement in their regions and the impact of that engagement is still in its infancy, partly because there are different understandings of ‘culture’ and of what ‘engagement’ entails. In this paper, qualitative data from the reports of mixed teams of academics and regional administrators involved in a large international project designed to improve universities’ regional engagement are analysed and discussed. The on-going study — PASCAL Universities' Regional Engagement (PURE) — investigates the role of HEIs in their regions across in a variety of fields such as the economy, community development, the environment and others. This article analyses the data from the study to identify the different perspectives universities and regions have of cultural engagement. The aim here is to demonstrate the value of PURE in facilitating the development of mutual understanding both between universities through a common language and between universities and their regions in respect of mutual expectations. For example, particularly difficult to de-construct is universities’ engagement with disadvantaged communities (Doyle, 2007) but Powell's (2009) work suggests that universities might engage more broadly and effectively ‘through better knowledge sharing and co-creation with business and community partners’ to become ‘real drivers of creative change in developing socially inclusive projects’. Others have written about the educational role of universities in developing a ‘lifelong learning culture’ in their region (European Universities’ Charter on Lifelong Learning, 2008). [ABSTRACT FROM AUTHOR]

Economic growth is an important priority for many local governments. There is a long-standing theoretical debate on how to best organize government for economic growth. There is surprisingly little empirical research focusing on how government organization affects regional growth. In this paper we forward several recent measures of government fragmentation in contrast to the common measure of government units per capita to examine how government competition influences growth, testing them in a metropolitan statistics area (MSA) growth model for 1992−2002. Going somewhat against the current embrace of regional collaboration, our results suggest that regions with relatively fragmented governments had stronger relative economic performance over the study's time frame. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between naming practices and social groups in the context of a land dispute at Matupit village, Papua New Guinea. Roy Wagner's famous paper on the nature of social groups in the New Guinea Highlands is taken as a starting point for analysis. In Wagner's didactic exposition a stark contrast is drawn between Daribi people for whom names elicit distinctions and outsiders who imagine names describe fixed social groups. At Matupit however, the contrast is more clearly between different groups of villagers who have an interest in different kinds of presentation of the relationship between names and social group formation. Some have a greater interest than others in asserting a more descriptive relationship of names to groups and it is argued that this is, at least in part, related to wider political economic tendencies, in particular a tendency to view land as an economic resource, mirrored in other contexts throughout Papua New Guinea. [ABSTRACT FROM AUTHOR]

This paper introduces a new comprehensive panel of annual state-level income inequality measures spanning the postwar period 1945–2004. For many states, the share of income held by the top decile experienced a prolonged period of stability after World War II, followed by a substantial increase in inequality during the 1980s and 1990s. This paper also presents an examination of the long-run relationship between income inequality and economic growth. Our findings indicate that the long-run relationship between inequality and growth is positive in nature and driven principally by the concentration of income in the upper end of the income distribution. ( JEL D31, O40) [ABSTRACT FROM AUTHOR]

Economic disparities between the regions of the European Union are of constant concern both for policy and economic research. In this paper, we examine whether there are overlapping trends of regional development in the EU: overall convergence, on the one hand, and persistent or even increasing spatial concentration (agglomeration), on the other. Kernel density estimation, Markov chain analysis and cross-sectional regressions provide evidence that convergence of regional per-capita income in the EU15 has become considerably stronger in the 1990s. The reduction of income disparities, however, is a phenomenon between nations but not between regions within the EU countries. European integration (and possibly European regional policy) fosters the catching-up of lagging countries but at the same time forces towards agglomeration of economic activities tend to increase disparities within the EU member states. Resumen. Las disparidades económicas entre regiones de la Unión Europea son una preocupación constante para la investigación relacionada con políticas y con economía. En este artículo examinamos si existen tendencias superpuestas de desarrollo regional en la UE: convergencia en términos generales, por un lado, y por otro una concentración espacial (aglomeración) continua o incluso en aumento. La estimación por núcleos ( kernel) de la función de densidad, el análisis mediante cadenas de Markov y las regresiones transversales aportan pruebas de que la convergencia de ingresos regionales per cápita de la UE15 se ha fortalecido considerablemente en la década de los noventa. La reducción en la disparidad de ingresos, sin embargo, es un fenómeno entre naciones pero no entre regiones dentro de países de la UE. La integración europea (y quizá la política regional europea) fomenta la puesta al día de los países rezagados pero al mismo tiempo las fuerzas conducentes a la aglomeración de actividades económicas tienden a aumentar las disparidades dentro de los estados miembros de la UE. [ABSTRACT FROM AUTHOR]

Nothwithstanding crisis and critique, development remains an enduring frame within which much social and economic transformation is interpreted and envisaged. In the context of arguments about the need for a nuanced spatial vantage point on development, this paper asks what this means in the context of new conjunctures and constellations? It focuses on intensified processes and patterns of uneven development manifest as enclaves. The paper explores these drawing on literatures about Southeast Asia, sub-Saharan Africa and the Gulf. [ABSTRACT FROM AUTHOR]

Whereas initially physical capital and later, knowledge capital were viewed as crucial for growth, more recently a very different factor, entrepreneurship capital, has emerged as a driving force of economic growth. In this paper, we define a region's capacity to create new firms start-ups as the region's entrepreneurship capital. We then investigate the local embeddedness of this variable and which variables have an impact on this variable. Using data for Germany, we find that knowledge-based entrepreneurship capital is driven by local levels of knowledge creation and the acceptance of new ideas, indicating that local knowledge flows play an important role. Low-tech entrepreneurship capital is rather increased by regional unemployment and driven by direct incentives such as subsidies. All three measures are locally clustered, indicating that indeed, entrepreneurship capital is a phenomenon that is driven by local culture, and is therefore locally bounded. Mientras que inicialmente el capital físico, y posteriormente el capital conocimiento, fue considerado crucial para el crecimiento, más recientemente un factor muy diferente, el capital empresarial de espíritu emprendedor ( entrepreneurship capital), ha surgido como una fuerza impulsora de crecimiento económico. En este artículo, definimos como capital empresarial emprendedor la capacidad de una región para originar la puesta en marcha de nuevas empresas. A continuación investigamos el arraigo local de esta variable y las variables que tienen un impacto sobre esta variable. Usando datos de Alemania, hallamos que el capital empresarial emprendedor basado en el conocimiento está motivado por niveles locales de creación de conocimiento y la aceptación de nuevas ideas, indicando que los flujos de conocimiento local juegan un papel importante. El capital empresarial emprendedor basado en bajas tecnologías aumenta con el desempleo regional y está motivado por incentivos directos como subsidios. Las tres variables están agrupadas localmente ( locally clustered), indicando que sin duda el capital empresarial emprendedor es un fenómeno motivado por la cultura local, y por tanto atribuible a una localidad. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to shed light on the controversial issue of regional development incentives. Although extensive research has been conducted, a review of the literature gives an inconclusive answer to whether economic incentives are effective. Why do researchers arrive at different conclusions, even after analysing the same programmes? Among the problems that we find, for example, is the fact that for some researchers ‘effective’ means the significant location of new firms in targeted areas, while for others the creation of jobs regardless of whether new firms are arriving in a significant fashion. Furthermore, as we elaborate, the selection of an econometric model will have a significant impact on expected results. Different models, with different limitations, will lead researchers to evaluate the same incentive programme but arrive at different conclusions regarding its effectiveness. The contribution of the paper is to inform policymakers about the potential opportunities and pitfalls when designing incentive strategies. This is particularly relevant, given that both the US and Europe have been promoting incentives as a tool for regional economic development. [ABSTRACT FROM AUTHOR]

The work discussed in Bivand and Brunstad (2003 ) was an attempt to throw light on apparent variability in regional convergence in relation to agriculture as a sector subject to powerful political measures, in Western Europe, 1989–1999. The present study takes up a number of points made in conclusion in that paper. Since it is possible that the non-stationarity found there is related to further missing variables, including the inadequacy of the way in which agricultural subsidies are represented, we attempt to replace the agriculture variables with better estimates of producer subsidy equivalents. It is also sensible to check that agricultural support is not masking or masked by other variables, for example human capital. The article is also an account of the development of software contributed to the project ( Development Core Team, 2005 ) as packages, in particular the spdep package for spatial econometrics. New functions generously contributed by researchers will be presented and compared. We find that agricultural support does impact regional economic growth after human capital is taken into consideration, and that we can show that apparent non-stationarity is alleviated by adding these variables.We further find that the moderated remaining spatial autocorrelation can best be represented by a substantive spatial lag model. [ABSTRACT FROM AUTHOR]

This paper demonstrates that recent protests in Bolivia must be linked to the failure of efforts to improve democratic participation in the country. It argues that such failures can be traced to a history of prejudices in national development and society and persistent biases and contradictions within international development policy and institutions. Despite these obstacles, the paper concludes that ideas for appropriate development and realistic alternatives for change to government and democracy are visible in recent critical development thinking and amongst the different social and cultural groupings involved in the demonstrations. [ABSTRACT FROM AUTHOR]

This paper focuses attention on two types of businesses, Crown corporations and co-operatives, that have long been associated with attempted solutions to regional economic developmental problems in Canada. The paper argues that co-operatives and Crown corporations can be viewed as coping mechanisms that attempt to make up for shortcomings in Canada's market-based economic system. Consistent with this perspective, the case study of co-operatives and Crown corporations finds that, taken as a single group, these firms are more spatially dispersed than their privately held and publicly traded counterparts at both the Canadian national level and the regional level in Saskatchewan. The study also shows that, taken separately, Crown corporations are highly concentrated within Saskatchewan, while co-operatives are dispersed across the province. A possible explanation for this behaviour, warranting further research, is that Crown corporations in Saskatchewan encourage development provincially by linking with global and national business networks in their respective industries, while co-operatives in Saskatchewan largely focus on facilitating economic development opportunities at a local level across the many smaller town- and city-centred regions of the province. The paper discusses the meaning of these and other findings for regional economic development efforts in Saskatchewan and Canada. [ABSTRACT FROM AUTHOR]

Tin mining carried out on the Jos Plateau since the beginning of the last century has disturbed some 320 km2 of agricultural land. Formal attempts at reclamation of this land failed, but local farmers have developed a successful informal strategy for reclamation. This paper reports on a study undertaken to comprehend the farmers’‘informal’ approach to soil fertility management. Their soil fertility management practices centre on the use of a complex combination of traditional organic manures and ‘modern’ inorganic fertilizers that they have developed entirely on the basis of experimentation. A central focus of this paper is therefore the empirical knowledge base of the farmers and an assessment of any underlying scientific explanations for their strategies, including an analysis of their assertion that different brands of NPK fertilizers differ in their nutrient value. This discussion is followed by a consideration of the difficulties in accessing and understanding empirical knowledge. It is concluded that farmers’ knowledge and understanding of the values of different fertilizers and manures does have a scientific basis. It is argued that for further agricultural development to take place on the Jos Plateau, there must be synergy between farmers’ empirical knowledge (which has led to the development of successful and effective soil fertility management strategies, unlike the attempts of the local ‘scientific’ communities) and scientific knowledge (which can identify health and environmental hazards which may not be immediately visible to farmers). [ABSTRACT FROM AUTHOR]

This paper explores the concept of sustainable tourism and how it applies to urban destinations such as Singapore. As tourism is an important industry in Singapore, in terms of employment, business activity and an income generator, the Singapore Tourism Board is continuously looking at potential avenues to make Singapore a competitive destination. We examine the use of thematic zones in Singapore as a strategy to achieve its ambition of becoming a tourism capital of the world. By focusing on a case study of the Singapore River thematic zone (one of the 11 thematic zones identified by the Singapore Tourism Board), we assess the viability of thematic zones in ensuring sustainable urban tourism. The paper closes with some theoretical reflections and policy implications arising from our key findings. [ABSTRACT FROM AUTHOR]

The World Bank's endorsement in the 1990s of institutional reforms as a constitutive dimension of economic development led to the adoption of a governance agenda. The paper analyses the role the Bank exercised in Argentina and explains its influence in the adoption of a new state model, of new state civil society relations and on particular key components of democracy. This paper argues that while the Bank has helped to set up an agenda of reform regarding governance problems, the push for particular policies and practices has also produced partial and contradictory results on the consolidation of democracy. [ABSTRACT FROM AUTHOR]

Transport costs have always been an important dimension in regional science. It is therefore remarkable that regional science and transport economics have developed in a rather unconnected way. Although being distinct, the routes of the two were parallel, and there are signs that the two fields will get closer to each other. This paper further discusses long run trends in transport costs and the potential spatial consequences. The main conclusion is that although in terms of money and time, the performance of transport has improved enormously, many economic activities have not become footloose to the extent as expressed by the notion of 'death of distance'. One of the reasons discussed is the role of transaction costs, some being clearly related with distance. [ABSTRACT FROM AUTHOR]

This paper reviews the foreign debt burden in Central America with special emphasis on Honduras and Nicaragua. These countries have a large debt overhang and they have lagged behind the rest of the region in terms of economic growth. Our work suggests that Honduras and Nicaragua require alleviation of their foreign debt as a prerequisite to achieve sustained economic growth. The paper also reviews the initiative aimed at reducing the debt burden of the highly indebted poor countries (the HIPC Initiative) and evaluates alternative scenarios of debt reduction for both Honduras and Nicaragua. It ends with a critical assessment of the implications of the fiscal and openness criteria established in the HIPC Initiative. [ABSTRACT FROM AUTHOR]

This paper tests Jared Diamond's influential theory that an earlier transition from a hunter-gatherer society to agricultural production induces higher levels of technology adoption. Using a proxy for the geographic diffusion barriers of Neolithic technology and an index of biogeographic endowments to isolate the exogenous component of the timing of agricultural transition, the findings indicate that countries that experienced earlier transitions to agriculture were subsequently more capable of adopting new technologies in 1000 BC, 1 AD, and 1500 AD. These results lend strong support to Diamond's hypothesis. ( JEL O30, O40) [ABSTRACT FROM AUTHOR]

This paper deals with a classic development question: how can the process of economic development-transition from stagnation in a traditional technology to industrialization and prosperity with a modern technology-be accelerated? Lewis (1954) and Rostow (1956) argue that the pace of industrialization is limited by the rate of capital formation which in turn is limited by the savings rate of workers close to subsistence. We argue that access to capital goods in the world market can be quantitatively important in speeding up the transition. We develop a parsimonious open-economy model where traditional and modern technologies coexist (a dual economy in the sense of Lewis 1954). We show that a decline in the world price of capital goods in an open economy increases the rate of capital formation and speeds up the pace of industrialization relative to a closed economy that lacks access to cheaper capital goods. In the long run, the investment rate in the open economy is twice as high as in the closed economy and the per capita income is 23% higher. ( JEL O11, F43, O14) [ABSTRACT FROM AUTHOR]

This paper examines the tension between the struggle to survive in a competitive economy and efforts to create more democratic workplaces in the Basque worker cooperative complex in Mondragón, Spain. Data from archival research, participant observation, and interviews are used to outline the historical context of structural change and policy-making in the complex. Language used in internal policy discussions is analyzed to explore the way in which arguments about efficiency have shaped interpretations of structural change and these organizations' policy responses. It is argued that in these cooperatives, the concept of "efficiency" does not operate as a neutral, objective benchmark of organizational performance, but is socially and rhetorically constructed. The predominant approach to efficiency that is emerging in Mondragón aims to make the cooperatives more competitive, but also facilitates a gradual displacement of collectively established organizational objectives such as relative equality, job security, and favorable work conditions for ones that privilege institutional interests of profitability and stability. More importantly, it has helped usher in important changes in the policy-making process itself limiting the range of legitimate participation and weakening broad-based control over the identification of appropriate objectives and means. The paper suggests that reframing an existing rhetorical strategy to highlight more clearly the link between efficiency and any given set of objectives would stimulate a broader discussion of policy issues and help balance more effectively the diverse interests at stake in Mondragon's restructuring. [ABSTRACT FROM AUTHOR]

Knowledge of the determinants of self‐employment income is critical to entrepreneurial development strategies if the development goal is to increase incomes not just employment. Using American Community Survey data, unconditional quantile regression is used to investigate differences in the relationship between entrepreneurial income and an array of individual, industry, and regional characteristics across the self‐employment income distribution. Personal attributes, such as education, race, age, and gender, both explain differences in self‐employment income and vary in importance across the income distribution. Regional agglomerative effects are significantly positive and stronger at the upper end of the self‐employed income distribution. [ABSTRACT FROM AUTHOR]

Among low- and middle-income countries, there is evidence that populations experiencing rapid political and economic transition have particularly high burdens of disease and disability from mental health conditions. This paper undertakes a political economy analysis of mental health in Vietnam to enhance knowledge translation, notably how both explicit and tacit knowledge can be used to promote evidence-based policy making. It argues that Vietnam's experience illustrates the need to better understand, not only how transition transforms societies, but how it impacts on the mental health needs and care of populations. The political economy of transition in Vietnam has so far given highest priority to economic growth through integration with the world economy and public sector reform. There is a need to recognise that transition in Vietnam poses both a potential threat to the care of people with mental health needs, and an opportunity to develop mental health services appropriate to local contexts. [ABSTRACT FROM AUTHOR]

The Pacific islands region is currently experiencing an intensification of interest in culture as an enabler, rather than an inhibitor, of development. The emerging field of cultural economics seeks to chart ways in which culture can lead to both economic development and also to other goals, such as positive social relationships, community cohesion and maintenance and enjoyment of cultural heritage. However, bringing together these different range of goals at times involves tensions, often manifested in differences between individual autonomy and family and community obligations, generational focus and clashes of cultural logics. This paper investigates these tensions through the lens of intellectual property, an area where competing ideologies and perspectives of entitlement often come head to head. It identifies and reflects upon four areas of tension that will have to be navigated as the region experiments with both global models of intellectual property and national and local regulatory mechanisms. [ABSTRACT FROM AUTHOR]

Reducing hunger and malnutrition and improving food security have come to the forefront of global political agenda. In the wake of recent spells of food price hike, national and supranational development organizations and governments have begun to express serious concerns about the world's capacity to feed its burgeoning population. In response to the target of increasing food production by 70% in 2050, many countries are formulating their agricultural policies to promote domestic food self-sufficiency and many are building international networks for outsourcing food supply beyond national borders. In the face of massive demand for food for its growing population, China is both strengthening its food self-sufficiency strategies and relying on large-scale imports from international market which has been a major driver of food price inflation in recent years. In China, increase in income and socioeconomic status on one hand have dramatically improved dietary intake and overall nutritional status of the population, and are creating an enormous pressure on land and water resources and natural environments on the other. Maintaining food and water security and for its huge population with its limited resources while at the same time sustaining the economic growth momentum are offering significant challenges to China's macroeconomic prospects. China's domestic food production and self-sufficiency status have certain repercussions on the volatility of global agri-food market and food security in food-import and food-aid-dependent countries. The objectives of this study is to provide an in-depth overview of China's food production and demand scenario with a particular focus on its challenging perspectives toward food secure 2050. The first half of the paper is designed to show recent trends in food production and consumption and the impacts on global food market. The second half describes the major challenges with a brief discussion on policy implication. [ABSTRACT FROM AUTHOR]

Governments use incentive programmes to attract new businesses. Due to limited resources, there are questions about which incentives are most effective. Using establishment data from California, and data on the location of disbursements through two federal programmes, we consider the effectiveness of different programmes in attracting new businesses. We find that the amount of funding through the New Markets Tax Credit programme has a significant impact on business activity but find no evidence of an effect from the Community Development Financial Institutions programme. Our results suggest that the effectiveness of these programmes depends on how they provide assistance. [ABSTRACT FROM AUTHOR]

The territorial capital of regions is an important determinant of growth, but also of the impact of EU Cohesion Policy. First, because it can act as a filter, enhancing the impact of regional policies. Second, the latter can help building territorial capital which, in turn, will foster regional development. This work analyses the medium and long‐run relationship between the territorial capital of EU NUTS 3 regions and Cohesion Policy using data from the programming period 2000–2006. Results point out complementarities between different territorial assets of regions and the impact of EU regional policy: Cohesion Policy effectiveness is higher when investments are focused on the assets complementary to those already abundant in the region. [ABSTRACT FROM AUTHOR]

Using a panel of 265 regions from 24 OECD countries from 1997 to 2007, we explore the impact of nation‐wide macroeconomic and structural policies on the productivity growth of subnational regions. We find that average relationships between nation‐wide policies and regional productivity growth can hide strong differentiated effects according to the distance to the frontier: relaxing employment protection legislation on temporary contracts, lowering barriers to trade and investment and increasing trade openness enhances productivity growth in lagging regions, whereas reducing barriers to entrepreneurship or higher levels of government debt has a positive effect on regions closer to the productivity frontier. [ABSTRACT FROM AUTHOR]

This study investigates the impact of the Austin MetroRail on commercial property values. Spatial Durbin models (SDM) suggest a modest price premium associated with rail transit across the study area. A premium gradient is also presented at different distance tiers from stations. When it comes to transit‐oriented development (TOD), a synergistic effect in enlarging the premium is found: with additional $9.0/ft2, $8.6/ft2 and $5.3/ft2 at 0.25 mi, 0.25–0.5 mi and 0.5–0.75 mi, respectively. Furthermore, geographically weighted regression shows the premium is significantly higher in central business district (CBD) and TOD areas. Such recognition of the heterogeneous price effect is of use in the design of project financing and TOD strategies. [ABSTRACT FROM AUTHOR]

This article casts new evidence on the effects of decentralization on economic growth. Based on the literature on the effects of institutions on the economy, such effects are assumed to accrue through total factor productivity (TFP). Five variables to capture decentralization are proposed in order to overcome the recent criticisms of the empirical approaches regarding the proper measures of variables capturing decentralization. Panel data for the regions of Spain over the 1986–2010 period are used. In general, the results show that the financial autonomy and the share of regional investment in public infrastructure seem to positively affect the economic growth of Spanish regions. However, a negative effect is found for a proxy for the number of responsibilities transferred to the regions. Moreover, empirical evidence provided for three sub‐sample periods could be suggesting that the Spanish state might be around the optimal level of decentralization. Results are fairly robust to different estimation methods and measures of TFP, regardless of the assumption of constant returns to scale. [ABSTRACT FROM AUTHOR]

According to the economic literature, high-skilled emigration may either harm or benefit developing economies. Recent research highlighted several positive and negative channels through which the brain drain operates. This paper aims at evaluating the relative magnitudes of various brain drain channels and quantifying their global impact on migrants' sending countries. For this purpose, we develop a 10-region general equilibrium model of the world economy characterized by overlapping-generations dynamics. Our findings suggest that the short-run impact of brain drain on resident human capital is extremely crucial, as it affects not only the number of high-skilled workers available to domestic production, but also the sending economy's capacity to innovate/adopt modern technologies. This latter effect is particularly important in globalization, where capital investments are made in places with high production efficiencies. Hence, despite positive feedback effects, those countries facing prevalent high-skilled emigration are the most candid victims to brain drain. ( JEL F22, J24, O57) [ABSTRACT FROM AUTHOR]

This paper examines the importance of the domestic research and development stock and foreign knowledge spillovers on total factor productivity for six Asian miracle economies over the period from 1955 to 2006. The productivity effects of international knowledge spillovers through the following channels are considered: imports, exports, inward foreign direct investment, patents, geographical proximity, and the general channel. The general channel is a transmission mechanism where knowledge spillovers occur automatically and do not pass through any specific channel. The estimates show that knowledge has been transmitted through all the channels considered but that the import channel and the general channel have probably been the most important ones for the Asian miracle economies. ( JEL O10, O30, O40) [ABSTRACT FROM AUTHOR]

The empirical relationship between trade protection and economic growth is surprisingly fragile, as shown in a number of other papers. We address one possible explanation for these findings: that the relationship is contingent on the pattern of comparative advantage, following the endogenous growth literature. Our findings suggest that such contingencies do in fact exist-in particular, the correlation between tariffs and growth is strong and positive for skill-abundant countries-and are robust to the choice of control variables. [ABSTRACT FROM AUTHOR]

ABSTRACT Aim This paper identifies socio-economic driving forces of biodiversity change and analyses their political and economic dynamics by modelling socio-economic parts of three scenario storylines developed for the ALARM (assessing large-scale risks for biodiversity with tested methods) project. In the BAMBU (business-as-might-be-usual) scenario policy decisions already made in the European Union (EU) are implemented and enforced, but no additional measures are introduced. The GRAS (growth applied strategy) scenario describes a future world orientated towards economic growth and complete deregulation. And finally, SEDG (sustainable European development goal) is a normative scenario focusing on the achievement of sustainable development. Methods The GINFORS (global inter-industry forecasting system) model is applied to quantify the effects of different sets of policy measures representing the three scenarios. It allows investigation of the inter-relations between socio-economic driving forces and the state of the environment. Results The presented results for the 25 EU countries focus on the following variables: unemployment, material extraction, energy supply and CO2 emissions. The lowest amount of unemployment is in the SEDG scenario, where it steadily decreases from 2005 to 2020. In BAMBU it falls to a level that is also below that of 2005. In GRAS, the number of unemployed people in 2020 is clearly over the value of 2005. The development of total material extraction from 2005 to 2020 is nearly stable in BAMBU, while it clearly increases in GRAS. Only in SEDG is there a reduction in resource use. None of the scenarios achieves a substantial reduction in energy use. However, the development of CO2 emissions shows a decoupling from energy supply. For BAMBU there is a slight decline in CO2 emissions over time, for GRAS they increase but with a slightly smaller growth rate than energy supply. In SEDG the emissions are reduced. The decoupling trends can be explained by a shift to more renewable energy sources in all scenarios, with the highest share in SEDG. Main conclusions The results indicate that a growth-oriented policy design, such as presented in the GRAS scenario, is not compatible with the conservation of biodiversity. Only in the SEDG scenario do the policy measures support the idea of a sustainable development, but in some respects they are still not ambitious enough. [ABSTRACT FROM AUTHOR]

We examine the relationship between offshoring and the labor market in an occupational choice model of trade and endogenous growth where workers are employed on the basis of their individual skill levels. Trade liberalization leads to offshoring and reduces employment in the manufacturing sector. Displaced workers move into traditional and innovation sectors according to their skill levels, shaping real wages and aggregate productivity in the manufacturing sector. The paper aims to show how inter-sectoral labor market adjustments, highlighted by skill heterogeneity, could be a possible explanation for the simultaneous rise in productivity and reduction in real wages that have coincided with the sharp escalation of offshoring activities in the U.S. manufacturing sector since 2004. ( JEL F16, F23, J24) [ABSTRACT FROM AUTHOR]

Community-based research (CBR) represents a particularly timely approach to rural research. Rural areas in industrialized nations are undergoing dramatic and rapid processes of economic, social and political restructuring. These forces, combined with a trend towards place-based development and territorial policy make CBR an appropriate rural method given its flexibility and sensitivity to local context. The purpose of this paper is to reflect on the use and methods of CBR in the rural setting, drawn from our collective research experience in northern British Columbia. There has been increased attention paid to CBR, signalling a form of acceptance within the academy towards community-based and participatory methods. However, gaps exist in addressing the various approaches to conducting CBR and in considering the relevance of CBR in different contexts. Researchers also note the need for better training in the use of community-based methods. We reflect upon our rural CBR experience to offer insights and pragmatic lessons on effective methodological practices using a simplified framework of the key research process stages: preparing for community engagement, doing community-based research and after the fieldwork. [ABSTRACT FROM AUTHOR]

For the past two decades, the fast-developing Asia has emerged as one of the most important economic regions. However, its economic growth is accompanied with severe software piracy. This paper analyzes productivity changes of 11 Asian economies and 4 non-Asian industrialized economies by taking into account software piracy using the Malmquist productivity index and its two components, efficiency change and technical change over the period 1994–2002. The results indicate that when software piracy is included, productivity growth in Asian developing economies regresses, while productivity growth in the four non-Asian industrialized economies improves. Interpretation and implications are provided. ( JEL L86, O34) [ABSTRACT FROM AUTHOR]

This economics literature review article addresses important developments in the literature during calendar year 2007. This is not a list or detailed documentation of papers that were published during 2007. Instead, the discussion focuses on two broad categories. The first category addresses the literature either directly or indirectly related to environmental policies and sustainable development or is mainly concerned with the following subjects: sustainable development; watershed management; climate change and disaster risk management; environmental policies management; and fisheries development. The second category addresses literature related to economic policies. This section addresses the following; political economy and conflict; water supply policies; water consumption; water price regulation and valuation. It should be noted that assigning articles to these categories was done to help organize this review, but points made in many of the articles discussed below relate to many topics across categories. [ABSTRACT FROM AUTHOR]

Capacity utilization is a closely watched macroeconomic indicator because rising utilization may signal rising inflationary pressures. However, recent technological changes have increased the flexibility of relationships between inputs and outputs, potentially eroding the predictive value of the utilization rate. This paper examines relationships between technology, capital spending, and capacity utilization. After establishing conceptually that the effect of recent technological changes on capacity utilization is ambiguous, we investigate the effect empirically using panel data on 111 manufacturing industries. Our results suggest that, for the average industry, the technological change of the 1974–2000 period lowered capacity utilization by 0.2–2.3 percentage points. ( JEL D24, E22, E31) [ABSTRACT FROM AUTHOR]