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This paper examines the four‐way linkages between innovation, trade openness, financial development and economic growth using panel‐VAR approach for 11 European countries over the period 2001‐2016. Most importantly, the findings revealed that there is a unidirectional relationship between economic growth and financial development, between trade and economic growth and between innovation and financial development. The findings also revealed a negative relationship between innovation and economic growth and between trade and economic growth. The paper concludes that further regulation of financial systems and the quality of funding are important ingredients to foster economic development. The paper also concludes that country‐specific characteristics can play an important role in fostering innovation and productivity. Furthermore, policymakers should improve institutional quality and improve the regulatory environment in order to benefit more from trade openness. Also, policy makers need to use innovation incentives for local companies in order to counteract the negative effects induced by market opening. [ABSTRACT FROM AUTHOR]

Despite its invaluable contribution to the field of comparative economics, the socialist calculation debate has focused on the narrow topic of the impossibility of the rational economic calculation under socialism. The literature on new institutional economics suggests that economic development is determined by economic and political institutions which are far more complex than the issue of economic calculation. To bridge the gap between the calculation debate and new institutional economics, this paper utilizes the historical case studies of Perestroika and Deng's China to demonstrate relationship between state capacity and economic calculation. We argue that rational economic calculation requires the state's institutional ability to make a credible commitment to constraints inhibiting public predation. [ABSTRACT FROM AUTHOR]

This paper studies the dynamics of unemployment (u) and its natural rate (u*), with u* measured by real‐time estimates for 29 countries from the Organization for Economic Cooperation and Development. We find strong evidence of hysteresis: an innovation in u causes u* to change in the same direction, and therefore has permanent effects. For our baseline specification, a one‐percentage‐point deviation of u from u* for 1 year has a long‐run effect of 0.16 points on both variables. When we allow asymmetry, we find, perhaps surprisingly, that decreases in u have larger long‐run effects than increases in u. [ABSTRACT FROM AUTHOR]

This paper presents an overview of the state of the art in the field surrounding the measurement of "intangibles" for productivity analysis. The purpose of the paper is to inform indicator development and implementation in economic analysis, both at the micro and aggregated levels. The review seeks to capture the development of intangibles measurement, which has explored a variety of directions, both in terms of definition, method and data. We characterize both the diversity of the field and its development over time. Current national and firm level accounting rules lead, from an economic viewpoint on intangibles, to both an underestimation of intangible assets and productivity growth. Further work is needed, both concerning the estimation of "technical" aspects such as depreciation rates and deflators, and in the continued testing and comparison of different measurement efforts. Many opportunities exist to aggregate across or cross‐validate between the measures that are currently being used, enhancing our understanding of the properties of these measures. Even though micro‐based work faces great challenges in terms of data availability, it will be important for the estimation of depreciation rates and in developing our understanding (and thereby better measurement) of broader forms of intangibles, which can thereafter inform measurement at more aggregated levels. [ABSTRACT FROM AUTHOR]

Considers the conceptual underpinnings, the objectives and instrument of regional social protection (SP) strategy used by the World Bank (WB) in its regional development projects. Activities covered by the lending and non-lending schemes by the WB in the SP area; Analysis of the risks arising from the globalization of trade in goods, services, and factors of production; Advantages to using social risk management as the analytical framework for SP; Reasons for the World Bank's concern with social risk management.

The article discusses a paper by Pinelopi Koujianou Goldberg and Tristan Reed that explores the role of market size in economic development and poverty reduction. The paper argues that market size is a significant constraint on development and that conventional development policies may not be fully effective. The authors present evidence that supports their perspective and propose measures of market size. However, the article also highlights the potential negative effects of international integration on domestic producers and raises questions about the strong version of the argument. It suggests that other factors, such as macro policies and commodity prices, may have contributed to the recent economic growth and poverty reduction in developing countries. The article concludes by discussing the changing global context and the need to focus on domestic demand for sustained economic development. [Extracted from the article]

This article is a comment on a paper titled "Presidential Address: Demand-Side Constraints in Development: The Role of Market Size, Trade, and (In)Equality" by Pinelopi Koujianou Goldberg and Tristan Reed. The paper explores the relationship between market size and economic development, specifically focusing on the transition from agriculture to manufacturing. The authors find that small market size is a constraint for economic development and that expansion into international markets or growth in domestic markets can help overcome this constraint. The paper also discusses the importance of demand-side policies and supply-side policies in promoting development, particularly for countries with a comparative advantage in primary sectors. [Extracted from the article]

The Labour government's White Paper is welcome as it builds firmly on the policies of the previous Conservative administration. In particular, the four aims of aid policy laid out in the Fundamental Expenditure Review—support for sound political and economic policies, promotion of stronger health and education services, encouragement of sustainable development, and a commitment to work with our international partners to alleviate poverty and to provide disaster relief—are all confirmed in the White Paper. The White Paper's support for this agenda represents some U-turns, for example with respect to the relationship to the IMF, a possible social clause in the WTO and the position on the quantity and quality of British aid. However, there are also areas of confusion created by some of Labour's statements on aid policy that the White Paper does little to resolve—such as the relationship between DFID and the Foreign and Commonwealth Office (including the respective roles of the Know-How Fund and the Westminster Foundation for Democracy), the role of NGOs, and the future of mixed credits. While the White Paper is welcome, the real test lies in Labour's future performance, which will have to be carefully scrutinized. © 1998 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this paper, it is shown that it matters a lot for empirical research whether policy is taken to be exogenously set or to be endogenous. In the model investment depends on policy that depends on economically important fundamentals and is, thus, endogenous. The paper analyzes what might be concluded when treating policies as randomly assigned, when in fact they are not. When policy is endogenous, the measured effects of policy on growth will generally be biased. Based on the model and OECD data, the signs of the biases for tax variables and for redistribution are derived. Based on these signed biases, the paper discusses some empirical results that seem puzzling from a theoretical viewpoint. The paper argues that regressing growth on policy can still yield important information if policy endogeneity is taken into account. [ABSTRACT FROM AUTHOR]

The article offers information on several papers being requested for the International Association for Research in Income and Wealth conference to be held in St. Gallen, Switzerland from August 22-28, 2010 which includes the topics Innovation--Key Factor for Economic Growth, House Price Movements and the Economy, and Surveys and Data Combination.

This Policy Arena examines some of the development challenges faced by SIDS. It brings together a collection of papers arising from the United Nations University World Institute for Development Economics Research (UNU-WIDER) project [Fragility and Development]. These investigations were presented at the UNU-WIDER project meeting held in Lautaka, Fiji in December 2006. The Policy Arena contains four studies that look, respectively, at various aspects of trade, foreign direct investment, aid and remittances, and migration, focusing on countries in the Pacific and the Caribbean. This introduction briefly describes the papers and distills some key messages for development policy. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The article discusses various reports published within the issue including one by Alan Gelb et al which discusses the performance of different groups of countries with an emphasis on better-performing low-income countries and another by Ji Hong Kim which examines Korea's economic development.

The article discusses the topics published within the issue, including one on the significance of a shared sectoral growth in the economy and another on the role of migration and remittances in the process of shared growth.

The article presents a request for the submission of reports on sustainable development and identity. The increasing rate of consumption negatively affected the ecological system. Sustainability needs to be contextualized in terms of identities. Identities are influenced by social reality. The papers should examine the aesthetic, emotional. communicative and social aspects of consumption and organizing in different social and cultural contexts. The papers could either be based on empirical findings or be conceptual.

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In this paper, we reassess the impact of inequality on growth. The majority of previous papers have employed (system) GMM estimation. However, recent simulation studies indicate that the problems of GMM when using non‐stationary data such as GDP have been grossly underestimated in applied research. Concerning predetermined regressors such as inequality, GMM is outperformed by a simple least‐squares dummy variable estimator. Additionally, new data have recently become available that not only double the sample size compared to most previous studies, but also address the substantial measurement issues that have plagued past research. Using these new data and an LSDV estimator, we provide an analysis that both accounts for the conditions where inequality is beneficial or detrimental to growth and distinguishes between market‐driven inequality and redistribution. We show that there are situations where market inequality affects growth positively while redistribution is simultaneously beneficial. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of economic crises on the development of European financial assistance. It demonstrates that crisis episodes that have taken place over the last five decades have significantly altered the design of European Union emergency support. This paper illustrates how solutions adopted in formative moments – including the 1973 oil shock, the Eurozone crisis, and the Covid‐19 pandemic – and their long‐term consequences led to the smorgasbord of instruments of the present financial assistance structure. By applying a historical institutionalist approach, combining insights from studies of critical junctures and gradual change, this contribution explains how economic shocks contributed to change in financial assistance, while also highlighting mechanisms that led to the continuation of specific elements of the assistance structure. [ABSTRACT FROM AUTHOR]