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Although Western Europe is a global leader in innovation activities among the OECD countries, these activities are not distributed evenly across NUTS 2 regions. Thus, the analysis of convergence or divergence related to innovation performance and R&D expenditures among Western European NUTS 2 regions is posed as the aim of this paper. Applying differential local version of spatial autocorrelation (LISA), difference-in-difference estimation the paper reveals the local variation of convergence and divergence and general spatial regime divergence in innovation performance and R&D expenditures within Western European NUTS 2 regions. Moreover, spatial lag cross-sectional regression provides support to the consideration of R&D expenditures as determinant for innovation performance along with the continuing divergence between most of Western and Southern European NUTS 2 regions and the others. Thus, the results confirm the stability in innovation performance and R&D expenditures in Western European NUTS 2 regions which could be the source of lagging behind not only other OECD countries but BRICS countries as well. On the regional level several NUTS 2 regions demonstrated the convergence dynamics, however, the general spatial divergence regime should lead to more actions regarding R&D polices under the EU programming period of 2014-2020. [ABSTRACT FROM AUTHOR]

This paper examines whether, and to what extent, the spot LNG markets in different regions (East Asia, Iberia, Northwest Europe, and South America) are integrated and how market integration evolves over time. We first lay out a framework of market integration in the context of global LNG market where the main supplier (e.g. Qatar) may have market power. Estimating a time-varying coefficients model, we find that a varying degree of market integration exists between all four LNG indices particularly after the Fukushima incident in 2011. We complement the time-varying coefficient analysis with a test of price convergence among the LNG indices using the Phillips-Sul (2007) methodology. The results reveal that, there is strong evidence that the spot LNG prices are converging after the Fukushima accident and they are also converging with the price of NBP in the UK. The empirical result is consistent with the change of market power of the main supplier. [ABSTRACT FROM AUTHOR]

This paper reviews catch-up growth in various parts of the world, especially in the twentieth century, with a particular focus on what this implies for the Global South. In 1950, US per capita national income, adjusted for purchasing power, was nearly five times the world average. Since then, Western Europe and Japan have closed their per capita income gaps with the USA. East Asia, South Asia and some other developing countries have also started to close their gaps with the West in recent decades. Thus, after well over a century of growing international economic disparities or divergence, the world has witnessed an era of uneven catching up with the North in parts of the South since the mid-twentieth century. [ABSTRACT FROM AUTHOR]

The economic convergence is one of the most important objectives of the European Union (EU). According to this objective the member states have to make efforts in order to reach the living standards of the most developed countries. This paper aimed at identifying the position of the Romanian economy among the other member states concerning the GDP per capita and the ratio of service sector in the Gross Added Value. The results reveal that there is a gap between the Romanian economy and the average of EU. This gap can be bridged by a smart and sustainable development of service industry, which is also situated below the values recorded in the developed countries. Such goals can be attained by proper strategies of service industry development that should be put in practice both by Romanian authorities and the decision makers inside the companies. All these strategies have also to consider the development of the other economic sectors because the service sector cannot sustain the economic growth only by itself. [ABSTRACT FROM AUTHOR]

Since the Reform and Opening-up policy had been implemented in 1978, mainland China has experienced significant economic growth, with GDP rising on an annual average of about 10%. However, this growth miracle was far from being evenly distributed across space. It is, therefore, the aim of this paper to study the evolution of spatial disparities in economic development across the country between 1993 and 2012, a period which is characterized by all provinces having access to international markets and being open for international investors. We seek to answer the question of whether Central and Western Chinese provinces were catching up with the East. We define 'catching up' as a growing similarity among spatial units. Convergence processes might manifest in four dimensions, including (1) the spatial allocation of employment, value added generation and the fixed capital stock, (2) forms of technical change, (3) productivity patterns, and (4) income distribution. Results show that persistent phases of convergence appeared. However, in some cases the catching up of China's less developed parts with the flourishing East was limited to only a few Western and Central Chinese provinces. A high degree of path-dependency in economic development prevented catching up from taking place in a more uniform manner. [ABSTRACT FROM AUTHOR]

Previous studies have investigated the behaviour of trade flows at the aggregate level, thus they suffer from aggregation bias. In this paper, we use the sectoral data on agricultural exports and imports to examine whether they cointegrate. The likelihood-based panel cointegration technique is applied to investigate the long-run convergence between the variables for 13 industrialized countries. The results indicate that a long-run steady-state relationship exists between the variables for most countries in the sample. The policy implications of our findings are that agricultural trade does not lead to the violation of international budget constraints and, more importantly, there is no productivity gap in the agriculture sector between the domestic economy and the rest of the world, implying a lack of permanent technological shocks to the domestic economy. The results also provide support for intra-industry trade in the agriculture sector. [ABSTRACT FROM AUTHOR]

Urban agglomerations (UAs), which serve as pivotal hubs for economic and innovative convergence, play a crucial role in enhancing internal circulation and strengthening external linkages. This study utilizes the China city-level multi-regional input-output tables, incorporating the Dagum Gini coefficient and kernel density estimation methods, to perform a thorough quantitative analysis. Disparities within the national and global value chains ("dual value chains") of Chinese UAs from 2012 to 2017 were assessed. Additionally, the logarithmic mean Divisia index (LMDI) method was applied to disaggregate the drivers of both national and global intermediate inputs (NII and GII). The study's key findings include the following: (1) The national value chain (NVC) within UAs exhibits robust growth, contrasting with the decline in the global value chain (GVC). (2) The inter-UA disparity contribution rate significantly surpasses the combined rates of intra-UA contribution and super-variation density. (3) Distinct evolutionary peak trends are discerned among various UAs within the "dual value chains", highlighting diverse spatial polarization characteristics and expansiveness. (4) The growth of the NVC has transitioned from a negative to a positive impact on NII, while the decline in GVC has substantially counteracted GII growth. Economic and demographic factors notably drive positive improvements in both NII and GII, whereas the efficiency of outflows presents a negative driving effect. Based on these findings, this study offers strategic recommendations to facilitate the effective integration of UAs into the new development paradigm, thereby providing a scientific basis for related decision-making processes. [ABSTRACT FROM AUTHOR]

This study deals with the evolution of fuels' prices over time in the EU. The central research inquiry revolves around whether there exists any correlation among the trajectories followed by national prices in the gasoline and diesel markets. The EU, and more specifically the Euro-Area, by its construction, is treated as an OCA (Optimum Currency Area). In an OCA, certain conditions are met to ensure the smooth functioning of a common currency. The fuel price synchronization is essential because it contributes to the effective implementation of policies and promotes stability across the entire macroeconomy. The study covers the period of 2017–2022. For each type of fuel and year, we construct an individual network where network nodes represent the EU member states while the edges connecting these nodes represent strong temporal fuel price correlations among the member states. The properties of the resulting networks are analyzed within a Complex Network framework. Our goal is twofold: first, to detect any potential convergence or divergence in the trajectories of the prices, and second, to investigate the impact of tax and duty implementation on the co-movements of the prices. The empirical findings show that diesel markets have a more pronounced pattern of price co-movements compared to the gasoline markets. Moreover, the application of fuel taxation policies seems to adversely affect the co-movements of prices. [ABSTRACT FROM AUTHOR]

The ongoing development of entrepreneurship within small and medium-sized enterprises (SMEs) represents an essential factor pertaining to the growth of the modern economy because it has an extremely important impact on economic development, increasing the level of innovation and creating jobs. We tend to believe that SMEs represent a central pillar in the countries with a developing economy, and not only there because of the many benefits they bring about including the demonstrated ability to respond quickly to the changes in the market. The present study presents the convergence of the literature on entrepreneurship, SME, management, innovation and performance in the business sector, highlighting the interest of a very large number of researchers who have studied SMEs on economic growth. In the present study, we used the VOSviewer software for the bibliometric research, the results being reflected in the bibliometric maps that show the links between the keywords identified in the research of specialists in the field. [ABSTRACT FROM AUTHOR]

Theoretical background: Silver has a great importance in the real economy, i.e. in photography, medicine, electrical, electronic and chemical industry. The growing importance of renewable energy sources and the development of solar panels, accumulators and batteries means that the role of silver is significantly strengthened. At the same time, it is also used as an investment asset providing variety in portfolios, on numerous occasions being a cheaper substitute for gold. Researchers are studying connections between those two resources and providing different perspectives on their future based on real economy and the financial market. Purpose of the article: The purpose of this article is to assess the current role of silver in the economy and answer the question of its investment prospective. Research methods: The research methods include elements of descriptive statistics and Pearson’s linear correlation between the prices of silver, gold and copper of the EUR/USD exchange rate and the Dollar Index. The research period is from 2000 to 2023. The analyzed data are daily. A measure of the amount of money in circulation in the United States is the M2 index, which includes cash in circulation and deposits. The inflation will be shown by the Consumer Price Index. The research method is also critical analysis of the subject literature. Main findings: We found that the change in the price of silver is strongly dependent on the USD, and specifically on its supply. A significant increase in the price of silver in the analysed period is related to the ongoing process of quantitative easing and financialization, understood as a growing volume of futures contracts. The occurrence of silver and copper in nature makes them dependent on each other, not only in determining prices, but also currently constitutes a barometer of industrial development. Thanks to the growing demand from industry, shortages of silver can result in serious consequences for production, for which reason they may decide to aggressively improve metal recycling efficiency or hoarding supply, which might push prices further up. However, investment use will not disappear due to its anti-inflation characteristics and may cause an increase in demand among investors who see gold as too expensive. [ABSTRACT FROM AUTHOR]

Theoretical background: The dynamic development of generative artificial intelligence such as ChatGPT has transformed the perception of creative work. In the graphic realm, AI systems like Midjourney, DALL-E, or Adobe Firefly allow the creation of high-quality graphics without the need for artistic skills or hiring a talented designer. Concurrently, the emergence of cryptocurrencies and the associated non-fungible tokens (NFTs) has resulted in radical changes in the creative sector, especially in the art market. Purpose of the article: The aim of this article is to examine the development pace and impact of AI-generated art and NFTs on the global art market, focusing on market trends, dependency on energy prices, segmentation, and how these changes influence artwork pricing and artists’ livelihoods. Research methods: The author has assessed the popularity and development of the NFT market, as well as the main reasons for its collapse in 2022. The author identified possible scenarios for the development of the art market, pointed out the primary potential threats, and highlighted the key determinants of future digital asset valuation. Main findings: Despite initial euphoria, buyers depreciate digital goods, especially those generated by artificial intelligence. They are considered inherently inferior and less valuable. Overproduction of works combined with the availability of AI solutions means that the traditional supply and demand mechanism lowers the price of assets and thereby forces more and more graphic designers, photographers, and painters to abandon their professions. Competition from artificial intelligence is subject to the same supply and demand mechanisms, which reduces the cost of access to quality graphics for entrepreneurs and individuals. Simultaneously, as the market becomes saturated with synthetic goods, there will be a delineation at the segment level, similar to what has happened with artisanal beers, hand-assembled cars, and furniture, or handmade ceramics. An unwritten, “made by humans” certificate will result in a 300–500% higher price for similar goods made by humans compared to works of artificial intelligence. This situation will resemble the division of the clothing or furniture market into mass-produced goods and designer items. Amid all this, the increasingly prominent role of NFTs will be evident, which will also appreciate in value, but due to the ecological taxation resulting from energy consumption that is 100,000 times higher than that of a regular bank payment. [ABSTRACT FROM AUTHOR]

Theoretical background: The article constitutes an analysis of the macroeconomic situation from 2020 to the first quarter of (Q1) in relation to real estate investments. Factors such as the COVID-19 pandemic, the influx of refugees to Poland, and rising inflation had a significant impact on investor behavior in the discussed market. The dynamic macroeconomic situation also led to changes in consumer and tenant preferences, while significantly affecting demand and supply. The years 2020–2023 (Q1) were characterized by a distinct specificity that accentuated the risks associated with real estate investments. This emphasized clear differences in various categories between real estate as investment assets and funds, securities, or other alternative investment methods. Purpose of the article: The aim of the article is to identify the risks associated with real estate investment in Poland during the period from 2020 to 2023 (Q1). It is also crucial to describe the macroeconomic aspects and their impact on the investment real estate market during the mentioned period. Research methods: The article presents the results of an empirical study aimed at identifying factors contributing to the increase in risk associated with real estate investment in the years 2020–2023 (Q1). Additionally, it was significant to verify the financing methods for the purchase of investment properties by the survey participants. The study was based on a survey questionnaire. A total of 250 respondents participated in the study, expressing their willingness to purchase their first or subsequent property for investment purposes during the years 2020–2023 (1Q). Respondents were asked 7 questions, including those related to factors influencing or hindering the completion of investment property transactions in the years 2020–2023 (Q1), as well as the method of financing the purchase and the reason why respondents utilized borrowed capital or relied solely on their own funds. Furthermore the article employed a research methodology that included critical analysis of secondary sources, as well as methods such as analysis, synthesis, description, deduction, induction, and reduction. The Polish and foreign literature related to investment and investment properties was subjected to analysis. Additionally, laws, resolutions, regulations, scientific works from other organizations, and reports were studied, serving as valuable sources of information about the real estate market situation from 2020 to 2023 (Q1). In formulating recommendations, a generalizing-synthesizing method was employed (deduction, reduction, induction). The inductive method aided in analyzing the significance and characteristics of investment properties. On the other hand, the deductive method was used to analyze the issue starting from the macroeconomic situation in Poland and delving into the changes in the investment real estate market. By making a critical analysis of the literature, the reduction technique was applied, thus, verifying the previously formulated hypotheses. Main findings: Based on the conducted analysis, it can be observed that the return on equity (ROE) from real estate investments takes on a negative value when investors partially use borrowed capital. This situation is influenced by high interest rates. However, alongside this factor, there is also a social element related to the high demand for property rentals. In the case of investors investing solely from their own sources, this leads to a return on equity ranging between 2.7% and 3.6% during the analyzed time period. The conducted analysis reveals that macroeconomic, social, and legal factors dynamically shape the demand and supply in the real estate market during the period from 2020 to 2023 (Q1). This is closely related to the decisions of investors aiming to invest their capital in investment properties. [ABSTRACT FROM AUTHOR]

Theoretical background: When making a decision on foreign investments, it is crucial for investors to have a clear understanding of both the potential of the host country and the risks awaiting them. To date, numerous approaches have been developed for assessing the business environment and investment climate (attractiveness) of countries. These developments are based on the research of international organizations, rating agencies, business schools, scientific and research institutions. Among them there are both universal (e.g. Harvard Business School, The Doing Business, Political Risk Services) and specialized (e.g. Method ology of the Bank of Austria, RAEX-Analytics) approaches. The abundance and diversity of methodologies have generated numerous studies aimed at their classification and comparative analysis. Purpose of the article: The aim of this article is to conduct a comparative assessment of selected specialized methodologies for evaluating the investment attractiveness of countries and classify them according to the Applicability Matrix. Research methods: The authors reviewed the literature in the field of investment theory and investment climate assessment, as well as materials containing a direct description of the methodologies for assessing investment climate themselves, algorithms for their application and the results of previous evaluations. The application of the system critical analysis method allowed for a comprehensive examination of the selected approaches and determination of their key characteristics, advantages, and disadvantages. The research procedure also necessitated the utilization of expert assessment method to conduct a weighted comparative analysis of the applicability of the methodologies. Main findings: Within the study, the characteristics, strengths, and weaknesses of the selected specialized methodologies for evaluating investment attractiveness were identified regarding to two key dimensions: information coverage and complexity. The main results include a comparative evaluation of the practical applicability of selected methodologies for assessing the investment climate, as well as their classification into groups with relevant qualitative characteristics according to Applicability Matrix. [ABSTRACT FROM AUTHOR]

Theoretical background: The concept of the economic convergence process is one of the conclusions of neoclassical growth models, especially the Solow–Swan model. According to it, it is possible to catch up with countries with a lower level of economic development to the economic level of developed countries and to finally equalize the economies of countries. However, endogenous economic theories have indicated that economic convergence is not the only realistic scenario of economic development in the modern economy. Purpose of the article: The aim of the research is to determine the degree of beta and sigma economic convergence of the countries of Central and Eastern Europe to the EU-12 in the years 2004–2021. Research methods: Descriptive statistics and regression analysis were used in the research. The regression analysis was based on a beta and sigma convergence study. The first one was aimed at checking whether less developed countries are characterized by a faster rate of economic growth than more developed states, while sigma convergence made it possible to check whether dispersion in the level of socio-economic development in selected countries was levelled in the years 2004–2021. Main findings: According to the results of the research, it is possible to confirm the existence of beta convergence of the CEE countries compared to the EU-12 in terms of economic prosperity, taking into account the average wealth of citizens (GDP per capita). The economic measure, which is key in the study of economic convergence, is the basis for stating that in the years 2004–2021, there was a process of convergence between the groups of the surveyed EU countries. On the other hand, no reduction in the economic differentiation of the countries studied was observed based on the sigma convergence study. [ABSTRACT FROM AUTHOR]

Analogies with mechanisms ruling the natural world have often been sought in the course of economic phenomena. This paper is also an attempt to combine the physical phenomenon of a harmonious oscillator with the theory of economic growth by J. H. Dunning (1981). In his theory, Dunning distinguished stages of economic growth of countries that imply the dependency between the investment position of countries and their GDP per capita, while the graph presenting this dependency reminds a trajectory of oscillating motion of a damped harmonic oscillator. This analogy has given inspiration to reinterpret the theory of economy on the grounds of the mechanism of a physical model. In this paper, the harmonious oscillator motion equation was adapted to the description of dependencies shown in the theory of economic growth by J. H. Dunning. The mathematical solution of this equation is properly parameterised and parameters are estimated with the use of the Gauss-Newton algorithm. The main objective of this paper is to allocate a specific stage in the economic growth to each country on the basis of the values of parameter estimations of the proposed cyclical models of changes in the net investment indicator. [ABSTRACT FROM AUTHOR]

This paper uses a transformation of the period-by-period index proposed by Cerqueira and Martins (), to overcome some of its shortcomings, in a non-parametric estimation to analyze how business cycle synchronization for a sample of 111 countries evolved in the period 1960-2007. The period-by-period index is able to distinguish between negative correlations due to episodes in single years, asynchronous behavior in turbulent times and synchronous behavior over stable periods and the non-parametric approach provides a more detailed analysis than the use of a parametric approach. The results show that since the nineties the synchronization at the world level, within and between country groups, experienced a dramatic increase reaching the highest values ever at the sample end. [ABSTRACT FROM AUTHOR]

The huge regional disparity in government health expenditures (GHE) is a major policy concern in China. This paper addresses whether provincial GHE converges in China from 1997 to 2009 using the economic convergence framework based on neoclassical economic growth theory. Our empirical investigation provides compelling evidence of long-term convergence in provincial GHE within China, but not in short-term. Policy implications of these empirical results are discussed. [ABSTRACT FROM AUTHOR]

In the last years a central issue in regional economic growth debate is represented by the convergence problem. Many empirical economists have noticed that per-worker GDP of poor regions tend to converge to those of richer regions. However more recently it has been observed that the economic convergence might not be achieved if, in the empirical analysis, we consider the entire data set as one sample. The phenomenon should be analyzed considering regions as belonging to different sub-samples with quite similar economy. Many authors refer to this hypothesis as economic convergence clubs. The definition of these homogeneous groups represents a crucial issue in many regional economic growth studies. The aim of this paper is to propose a method for the identification of convergence clubs for the European regions at NUTS 2 level. The econometric specification used is based on the classical, and spatial augmented version of the conditional β-convergence model. Two different optimization algorithms for the identification of convergence clubs are proposed and compared: Simulated Annealing and Iterated Conditional Modes. [ABSTRACT FROM AUTHOR]

The aim of this paper is to assess the importance of the new limit for the government deficit in order to improve fiscal discipline in the Economic and Monetary Union in Europe. Since the introduction of the single currency there have been debates regarding the lack of fiscal integration. The monetary integration process triggered the centralization of monetary policies while the fiscal policies remained at national level. Although the member states of the euro area were subject to restrictions imposed by the Stability and Growth Pact in order to provide an assurance against asymmetric shocks, the recent financial crisis revealed high levels of public deficits. Thus, the measures were not enough to establish an environment of fiscal discipline in the currency area and the currency area proved to be suboptimal. Therefore, new limits were imposed through the Treaty of Stability, Coordination and Governance in the Economic and Monetary Union. This study will provide a clear understanding of the concept of structural deficit, measures used to quantify it and the shortcomings of this indicator. Furthermore, it will show that, despite the limits of the indicator, it represents an improvement in achieving stability in the euro area. [ABSTRACT FROM AUTHOR]

This paper demonstrates effects of economic convergence processes on the foreign exchange behaviour in a monetary modelling approach. Since the exchange rate represents the relative price of two currencies, commonness of stochastic trends between the fundamental determinants of supply and demand of the underlying monies restricts exchange rate movements to transitory fluctuations. In the spirit of optimal currency areas, this has the potential to serve as a criterion for an all-round integration of two economies. Empirically, such a constellation is found between Australia and New Zealand, whereas diverging trends in money and interest rates characterise the relation of Australia towards the US. [ABSTRACT FROM AUTHOR]

This paper aims to analyze the income dispersion and test both absolute convergence and conditional convergence of income among 26 provinces in Indonesia during 1984-2008 using static and dynamic panel data approach. Using the σ convergence, it indicated that income dispersion measured by coefficient variation occurred in 1984-2008 generally experienced fluctuation. Factors influencing income dispersion rate were the impacts of the economic crisis, period of fiscal decentralization in Indonesia, Bali bombing, rising fuel prices in October 2005, and the earthquake in Yogyakarta and Central Java. Dynamic panel data estimation with system GMM produced an efficient and consistent estimator to overcome the problems of instrument validity. In addition, it is also dedicated to minimize the risk of bias due to endogeneity problem. There was a strong indication of the existence of absolute convergence and conditional convergence among 26 provinces in Indonesia during 1984-2008. Thus, there was evidence that the economy of poorer provinces tends to grow faster compared to the more prosperous provinces. The last suggests that there was a tendency to catch up. Based on the system GMM estimation, it is found that the provinces in Java have faster speed of convergence comparatively to those outside Java. [ABSTRACT FROM AUTHOR]

Over the past two decades, the issue of regional convergence in the European Union has been the subject of a wide range of empirical research. This paper aims to provide more information on the differences in regional growth patterns of new member states (NMS), as well as Croatia, in addition to the factors influencing regional disparities within each country. This research provides an analysis of regional convergence in the period 2001-2008 at the NUTS II and NUTS III level. The most widely used model for testing convergence hypotheses is beta-convergence analysis. Other factors commonly included in the econometric modelling of convergence are demographic variables, labour market conditions, industrial structure, institutional factors and overall government policy. The main hypothesis is that the process of regional convergence in NMS and Croatia is not strong enough to dominate over other factors, influencing regional potential growth (mainly industry structure and quality of human capital). Absolute β-convergence can be found at the national level for EU countries. Convergence also can be found for NMS regions, but the pace of convergence on the regional level is lower in comparison to the national level and the estimated β-convergence parameter is less significant. [ABSTRACT FROM AUTHOR]

This paper studies the effect of social relations on convergence to the efficient equilibrium in 2×2 coordination games from an experimental perspective. We employ a 2×2 factorial design in which we explore two different games with asymmetric payoffs and two matching protocols: 'friends' versus 'strangers'. In the first game, payoffs by the worse-off player are the same in the two equilibria, whereas in the second game, this player will receive lower payoffs in the efficient equilibrium. Surprisingly, the results show that 'strangers' coordinate more frequently in the efficient equilibrium than 'friends' in both games. Network measures such as in-degree, out-degree and betweenness are all positively correlated with playing the strategy which leads to the efficient outcome but clustering is not. In addition, 'envy' explains no convergence to the efficient outcome. [ABSTRACT FROM AUTHOR]

Based on the theoretical framework of the Solow growth model, this paper employs a dynamic panel data approach to examine the impact of openness on growth and convergence in labor productivity in the Chinese provinces during the period 1984-2008. The study finds that regional openness has a significantly positive effect on regional growth in labor productivity in the Chinese provinces. When regional heterogeneity and regional openness are accounted for, the study finds fast conditional convergence in labor productivity across the Chinese provinces. As a byproduct, this study also estimates the structural parameters of the aggregate production function in the case of China. In sum, the major findings of this study lend strong support to the claim that openness promotes growth of labor productivity in China. [ABSTRACT FROM AUTHOR]

This paper provides empirical evidence that there is no convergence between the GDP per-capita of the developing countries since 1950. Relying upon recent econometric methodologies (non-stationary long-memory models, wavelet models and time-varying factor representation models), we show that the transition paths to long-run growth (the catch-up dynamics) are very persistent over time and non-stationary, thereby yielding a variety of potential steady states (conditional convergence). Our findings do not support the idea according to which the developing countries share a common factor (such as technology) that eliminates per-capita output divergence in the very long run. Instead, we conclude that growth is an idiosyncratic phenomenon that yields different forms of transitional economic performance: growth tragedy (some countries with an initial low level of per-capita income diverge from the richest ones), growth resistance (with many countries experiencing a low speed of growth convergence), and rapid convergence. [ABSTRACT FROM AUTHOR]

Business cycle synchronization represents a condition for the successful implementation of the common monetary policy within the Economic and Monetary Union. There is a tight relation between business cycle synchronization and the economic convergence of the Member States of the Monetary Union. Investigating the specialized literature, this study analyses below the factors which influence the synchronization of the economic fluctuations of the economies in the Euro area. A second objective of this study is represented by the pointing out of the evolution of the synchronization process of the business cycle after the adoption of the euro, in the euro area countries by reference to the empiric evidence. The hypothesis of the study states that the introduction of the unique currency in 1999 resulted into the increase of the synchronization degree of the business cycle. [ABSTRACT FROM AUTHOR]

The convergence/divergence of health care systems between countries is an interesting facet of the health care system research from a macroeconomic perspective. In this paper, we concentrate on an important dimension of every health care system, namely the convergence/divergence of health care financing (HCF). Based on data from 22 OECD countries in the time period 1970-2005, we use the public financing ratio (public financing in % of total HCF) and per capita public HCF as indicators for convergence. By applying different concepts of convergence, we find that HCF is converging. This conclusion also holds when we look at smaller subgroups of countries and shorter time periods. However, we find evidence that countries do not move towards a common mean and that the rate of convergence is decreasing over time. [ABSTRACT FROM AUTHOR]

Purpose – Acculturation theory shows how foreign actors have evolved in Japanese television commercials. If advertising mirrors culture, foreign businesses trying to advertise products in Japan need to be aware of societal changes and tailor their messages to the preferences of the local population. This paper aims to address these issues. Design/methodology/approach – Content analysis explores the changing role of foreign female actors in Japanese television advertising for the years 1992 and 2002. Advertisements' setting, roles, appeals, and verbal and nonverbal communications are tested by chi-square analysis. Findings – Ads from the 2002 data set show increases in both traditional and modern themes in regards to the location of the ads, roles foreign females play, the advertising appeals, and the use of Japanese communication modalities. The findings suggest that advertisers are consciously or unconsciously incorporating cultural assimilation when ads include foreign actors. Research limitations/implications – Acculturation theory is useful for explaining cultural shifts to develop more effective advertising messages. Differences in portrayals of foreign people in advertising reflect changes in cultural values that appear to be changing more rapidly due to global trade and communication technology innovations. Practical implications – Recognizing shifts in cultural norms allows marketers to more effectively communicate with target audiences. Advertisers employing foreign actors may find their messages more effective if local cultural assimilation is used. Originality/value – This paper identifies and examines changes in communication modalities to show foreign actors displaying Japanese mannerisms. The evidence suggests cultural norms evolve sometimes quickly over time. Even advertisers using a localized approach must carefully monitor changes in cultural norms to assure message effectiveness. [ABSTRACT FROM AUTHOR]

The paper focuses on quantitative assessment of the innovation's role in explaining regional disparities and convergence in Europe. The empirical part of the study bases on the regional GDP pc and innovation indicators on the EU-27 NUTS2 level regions. Based on the selected set of initial regional innovation indicators and using the principal components factor analysis method, three composite indicators of regional innovation capacity are extracted. Estimating convergence equations, we noticed that regional innovations tend to increase inter-regional differences, at least during the short-run period. Thus, if regional income convergence is a policy target, additional policy measures beside innovation activities should be effectively implemented. [ABSTRACT FROM AUTHOR]

Slack labor market conditions for women relative to men increase the marriage rate in the USA. This paper examines the long-term consequences of such marriages. Despite the significant effect on marriage timing, labor market conditions experienced in youth do not affect the probability that a woman will marry by the age of 30. Further, labor market conditions at the time of marriage are uncorrelated with the probability of divorce, spouses' characteristics, or the number of children. These findings suggest that labor market fluctuations induce only intertemporal adjustments for marriage timing without affecting reservation match quality or total fertility. [ABSTRACT FROM AUTHOR]

While differencing transformations can eliminate nonstationarity, they typically reduce signal strength and correspondingly reduce rates of convergence in unit root autoregressions. The present paper shows that aggregating moment conditions that are formulated in differences provides an orderly mechanism for preserving information and signal strength in autoregressions with some very desirable properties. In first order autoregression, a partially aggregated estimator based on moment conditions in differences is shown to have a limiting normal distribution that holds uniformly in the autoregressive coefficient ρ, including stationary and unit root cases. The rate of convergence is $\root \of n $ when $\left| \rho \right| < 1$ and the limit distribution is the same as the Gaussian maximum likelihood estimator (MLE), but when ρ = 1 the rate of convergence to the normal distribution is within a slowly varying factor of n. A fully aggregated estimator (FAE) is shown to have the same limit behavior in the stationary case and to have nonstandard limit distributions in unit root and near integrated cases, which reduce both the bias and the variance of the MLE. This result shows that it is possible to improve on the asymptotic behavior of the MLE without using an artificial shrinkage technique or otherwise accelerating convergence at unity at the cost of performance in the neighborhood of unity. Confidence intervals constructed from the FAE using local asymptotic theory around unity also lead to improvements over the MLE. [ABSTRACT FROM AUTHOR]

Following its accession to the European Union, Romania has started an ongoing process of convergence towards the European standards. This was the case in almost every field, starting with law, public services, etc. One of the most important tasks was put on the Romanian agenda by the European Union, the adoption of the Single European Currency. Of course no deadline was set, but through the Accession Treaty Romania is obliged to introduce the Single European Currency at the time it will meet the Convergence Criteria. The current paper analysis the stage of fulfillment of the 5 Convergence Criteria in Romania and tries to make some suggestions concerning the Euro adoption. It is without a doubt to be said from the beginning that a unilateral adoption of the Euro is no solution for Romania. Without meeting the minimal nominal convergence criteria the effects of the introduction of the Euro in Romania would be much worse. [ABSTRACT FROM AUTHOR]

This paper capitalizes on an institutional perspective to analyze corporate social responsibility (CSR) orientations in the Lebanese context. Specifically, the paper compiles a new theoretical framework drawing on a multi-level model of institutional flows by Scott (Institutions and organizations: ideas and interests, ) and the explicit/implicit CSR model by Matten and Moon (Acad Manag Rev 33(2):404-424, ). This new theoretical framework is then used to explore the CSR convergence versus divergence question in a developing country context. The findings highlight the usefulness of the compiled multi-layered institutional framework and the varied nuances and profound insights it offers in analyzing CSR in context. They also suggest that a cosmetic level of global convergence in explicit CSR may materialize in light of mimetic isomorphic pressures, but that the path dependence hypothesis is indeed salient in light of national history trajectories and socio-politico configurations. The findings correspond most closely to patterns of CSR crossvergence, combining elements of both convergence and divergence, and reflecting in complex hybridized CSR expressions. The findings and their implications are presented and assessed. [ABSTRACT FROM AUTHOR]

The theory that we shall seek to elaborate here puts considerable emphasis on the impact of cross-border capital flows on domestic financial conditions, the internal financing power of corporate growth, the limits of outside financing through equity capital, the internal financing power of corporate growth, and the convergence of financial systems. The paper generates insights about the emergence of financial conglomerates, the challenges raised by the integration of the financial markets, the global evolution of the economic and financial activity, the European market of financial services, and the creation of the single market for financial services. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to study the almost sure T-stability and convergence of Ishikawa-type and Mann-type random iterative algorithms for some kind of ϕ-weakly contractive type random operators in a separable Banach space. Under suitable conditions, the Bochner integrability of random fixed points for this kind of random operators and the almost sure T-stability and convergence for these two kinds of random iterative algorithms are proved. [ABSTRACT FROM AUTHOR]

An important policy goal in European Union has been integration of markets and economic convergence. The aim of this exploratory paper is to study pricing of currency exchange services based on bid-ask spreads in commercial banks and the policy implications of the delayed integration of banking markets. The currency rate spreads in different bank groups and countries are compared with each other. The main results of the study are that statistically significant differences exist in the spreads set by banking groups in different countries. All banking groups in the sample offer more favorable rates in Western countries indicating that the pricing policy of bank groups may be discriminatory. Further research is needed to understand the extent and the mechanism of it and to determine which policy measures may help to overcome the problem. [ABSTRACT FROM AUTHOR]

Schumpeterian growth theory stresses the role of structural change in long run growth. Countries which increase the share of technology-intensive sectors in their economic structures benefit more from technological learning and innovation. In addition, they are more able to respond to changes in the international markets and to compete in sectors whose demand grows at higher rates. The paper compares Brazil (and to a lesser extent the CIBS group of countries) from the point of view of the direction and intensity of structural change. It is suggested that structural change has been relatively weak in Brazil and that this has been associated with a less dynamic growth performance since the 1980s. [ABSTRACT FROM AUTHOR]

This paper develops a methodology to measure the degree of economic integration between nations that are members of an integrated area. We show that a fully integrated economic area (IEA) is characterized by three properties regarding the distribution of member shares of total IEA output and total IEA stocks of physical and human capital. We then show that the expected distribution of member shares within a fully IEA is a harmonic series, with the share distribution depending only on the number of IEA members. This property is then used to develop a composite indicator of the degree of economic integration within an IEA that indicates the distance between the theoretical and actual distribution of shares: the closer is the actual distribution to the expected distribution, the greater the degree of integration. We empirically compute our degree of integration for US states, and alternative regional trading agreements (e.g., EU countries, MERCOSUR, Bangkok Agreement, etc.) and a 'world' comprising 64 countries. [ABSTRACT FROM AUTHOR]

We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7 per cent. An increase of one percentage point in the net migration rate of a region increases the per capita income growth rate in that region on average by about 0.1 percentage points. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration. [ABSTRACT FROM AUTHOR]

Has economic unification succeeded? Assessments differ, depending on the criteria selected, and the benchmark used. In many areas, from productivity to infrastructure and housing, dramatic economic improvements are readily apparent. Yet daunting challenges remain: the speed of productivity convergence has slowed, unemployment remains high and net emigration continues. Looking forward, demographic and fiscal trends pose serious challenges. This paper begins with a brief look back at the experience since 1989 before turning to a discussion of current and future challenges. [ABSTRACT FROM AUTHOR]

This paper studies the Generalized Neyman–Pearson (GNP) optimality of empirical likelihood-based tests for parameter hypotheses. The GNP optimality focuses on the large deviation errors of tests, i.e., the convergence rates of the type I and II error probabilities under fixed alternatives. We derive (i) the GNP optimality of the empirical likelihood criterion (ELC) test against all alternatives, and (ii) a necessary and a sufficient condition for the GNP optimality of the empirical likelihood ratio (ELR) test against each alternative. [ABSTRACT FROM AUTHOR]

This paper considers the asymptotic distribution of the sample covariance of a nonstationary fractionally integrated process with the stationary increments of another such process-possibly itself. Questions of interest include the relationship between the harmonic representation of these random variables, which we have analyzed in a previous paper (Davidson and Hashimzade, 2008), and the construction derived from moving average representations in the time domain. Depending on the values of the long memory parameters and choice of normalization, the limiting integral is shown to be expressible as the sum of a constant and two Itô-type integrals with respect to distinct Brownian motions. In certain cases the latter terms are of small order relative to the former. The mean is shown to match that of the harmonic representation, where the latter is defined, and satisfies the required integration by parts rule. The advantages of our approach over the harmonic analysis include the facts that our formulas are valid for the full range of the long memory parameters and that they extend to non-Gaussian processes. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to use socioeconomic indicators for analyzing convergence within Greece at regional (NUTS II) and prefecture levels (NUTS III) since 1960. We use two alternative approaches. The first one is based on the coefficient of variation and the second one on quality of life rankings. We confirm the decline of regional inequalities in Greece, with the exclusion of the 1980s. Regions with increased tourist and trade activity are also regions with high quality of life. Border regions are usually the laggards of social and economic development. [ABSTRACT FROM AUTHOR]

Estimates of the half-life to convergence of prices across a panel of cities are subject to bias from three potential sources: inappropriate cross-sectional aggregation of heterogeneous coefficients, presence of lagged dependent variables in a model with individual fixed effects, and time aggregation of commodity prices. This paper finds no evidence of heterogeneity bias in annual CPI data for 17 U.S. cities from 1918 to 2006, but correcting for the “Nickell bias” and time aggregation bias produces a half-life of 7.5 years, shorter than estimates from previous studies. [ABSTRACT FROM AUTHOR]

This paper makes three contributions. First we present a technique by which the monetary transmission mechanism of Germany, France, the UK and the Eurozone can be decomposed into its component cycles, compared across economies and across time. As a result, we found that the individual data generating processes have varied over time. Second we show that Germany has now converged on the rest of Europe and not vice versa, although Germany had dominated monetary policy making in Europe for many years. Third, we show that the UK as an outsider has behaved like a peripheral EMU country, even when EMU was not in place. In other words, the transmission mechanisms of Germany and the UK were fundamentally different. Hence, when that German monetary policy dominated Europe in a way that was not in line with the rest of Europe, never mind the UK, it is no surprise that the UK eventually left the ERM (1992). The current financial crisis may enforce the trend of convergence of the transmission mechanism. But there have been signs of a divergence between core and periphery, to some extent involving the UK, so this general convergence, as opposed to tighter convergence in the core, may not last. [ABSTRACT FROM AUTHOR]

This paper analyses the process of nominal and real convergence in the new Member States of the European Union (NMS). The importance of nominal and real convergence is underlined in connection with a successful catching-up. The NMS economies experienced robust economic growth in recent years, which had a positive impact on the convergence process. Although this favourable development of real convergence is accompanied by a simultaneous price (nominal) convergence, the comparative price level is still biased towards lower level in comparison with the per capita income. The regression analysis shows interdependence between the comparative price and the income per capita level. This basis enables to evaluate potential benefits and risks connected with joining the euro. The benefits connected with elimination of exchange rate risks and reduction of transaction costs can be compared with the disadvantages associated with the loss of an independent monetary policy and an adjusting exchange rate mechanism. Attention is paid to a potential impact on nominal and real convergence of the observed countries. There are some risks for these countries connected with the common monetary policy, which is adjusted more to the conditions of stabilized advanced economies, forming the core of the Eurozone. These risks can be overcome on the basis of a fast labour productivity growth, accompanied by an adequate policy, ensuring the macroeconomic stability. The rapid productivity growth is raising the relative price level. The Maastricht dilemma, i.e. the fulfilment of two objectives during the stay in ERM II (the price stability and the exchange rate volatility) under on-going nominal convergence enforces an appropriate monetary and fiscal policy. However, such strict policies may slow down the economic growth. Another possible measure for keeping the price stability is a relaxation of the fluctuation band (its full exploitation to the upper and bottom limits), or a change of the central parity (revaluation). [ABSTRACT FROM AUTHOR]

This paper seeks to establish that contributions to regional theory advanced by Gunnar Myrdal exhibit high levels of explanatory power when clarifying challenges facing Germany's eastern region since the fall of the Berlin Wall. Myrdal's evolutionary institutionalist contribution is contrasted with the "convergence hypothesis" advanced by R. Barro and X. Sala.i-Martin. Challenged is their prediction that Germany's eastern region would experience relatively higher annual rates of per capita output growth, and that levels of per capita output would converge between the eastern and western regions over time. Myrdal's approach is argued superior as it allows for considering backwash and spread effects within a framework of circular and cumulative causation, emerging between Germany's western and eastern regions. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to measure the effectiveness of the integration of Europe by benchmarking economic progress made by the participating nations. Design/methodology/approach- Using data envelopment analysis, this paper compares the relative performance of 26 European Union (EU) nations against one another with seven economic variables as the benchmark parameters from 1999 to 2006. Findings- The paper finds that not all the participating nations were equally efficient at the beginning of the economic integration in 1999. Economic integration does help in achieving convergence in economic performance of 26 EU nations, because 18 of the 26 nations were efficient in 2002. However, this paper finds that after 2002, there is a lack of convergence in the performance of 26 EU nations and some nations have performed more efficiently in contrast to other nations. Originality/value - The paper identifies the member nations that are lagging behind and make recommendations as to how they can improve their performance to bring them at par with other participating nations. [ABSTRACT FROM AUTHOR]

The emerging European economies have been converging rapidly toward the more advanced European economies in recent years. However, large external imbalances in parts of the region have raised questions about sustainability and concerns about vulnerabilities. Empirical evidence in this paper up to the end of 2007 and based on a number of methodologies suggests that the convergence trend of emerging Europe is based on strong fundamentals and is expected to continue, but at a slower pace. Moreover, the convergence path may be volatile, as countries with large external imbalances adjust, with risks of a hard landing in some cases. The results also suggest that policy could do more to address the region's imbalances. [ABSTRACT FROM AUTHOR]