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Reviews science and technology policymaking in five countries with free-market economies: the United Kingdom, Germany, France, the Republic of Korea, and the United States. Implications for eastern European and other countries currently reorganizing toward domestic market economies and greater orientation toward world trade are discussed. (61 references) (LRW)

This paper examines the importance of trade openness for attracting Foreign Direct Investment (FDI) inflows, using a sample of 36 developing economies for the period 1990-2008. It provides a direct test of causality between FDI inflows, trade openness and other key variables in developing regions of the world: Latin America, Asia, Africa, CIS (Commonwealth of Independent States) and Eastern Europe. Trade openness is measured by using eight different indicators. The main empirical findings of the panel regression analysis reveal that in the long run, trade openness contributes positively to the inflow of FDI in developing economies.

This paper examines two aspects related to private equity investments in Europe. First, we will present the evolution of private equity investments across European countries during the last crisis. Second, the paper will analyse and identify the main determinants of the European private equity market, using an empirical panel analysis. The empirical model includes many of the determinants already tested in previous studies (GDP growth, Market Capitalization, Research and Development Expenditures, Interest rates, etc.) and also new variables such as productivity and corruption index which we consider important factors in explaining the evolution of private equity investments in Europe. The present research paper follows the equilibrium model of private equity investments (Gompers and Lerner 1998, Jeng and Wells 2000, Romain and de La Potteria 2004, Félix 2007). We will use aggregated data from European private equity market during 2000-2013, as well as macroeconomic data, in order to estimate a panel data model with fixed and random effects. This paper will also run the Hausman specification test in order to compare the consistency of fixed effects models and random effects models. Our results confirm existent hypotheses regarding the importance of some determinants on the evolution of private equity investments in Europe. However, in the context of the last crisis new factors emerged as important for the private equity market in Europe such as productivity or corruption. [ABSTRACT FROM AUTHOR]

This article presents an overview of this issue in relation to the periodical's twentieth anniversary. The author discusses the organization of a anniversary panel in London, England to mark the occasion, and to review articles from the history of the periodical focusing on economic-policy development during these 20 years. The article also provides an introduction to other articles presented in this issue, including one concerning the evolution of exchange-rate management, the effects of government debts on interest rates, and higher education reform in Europe.

In recent years, most European countries have experienced substantial demographic changes and rising cultural diversity. Understanding the social and economic impacts of these shifts is a major challenge for policymakers. Richard Florida’s ideas have provided a popular – and pervasive – framework for doing so. This paper assess Florida’s legacy and sets out a ‘post-Florida’ framework for ‘technology, talent and tolerance’ research. The paper first traces the development of Florida’s ideas. ‘Florida 1.0’, encapsulated by the Three Ts framework, has performed badly in practice. There are problems in bringing causality to the fundamental relationships, and in consistently replicating the results in other countries. ‘Florida 2.0’, though suggests that Creative Class metrics have value as alternative measures of human capital. This create space for a post-Florida agenda based on economic micro-foundations. I argue that the growing body of ‘economics of diversity’ research meets these conditions, and review theory and empirics. Urban ‘diversity shocks’ shift the size and composition of populations and workforces, with impacts operating via labour markets, and through wider production and consumption networks. While short-term labour market effects are small, over time low-value industrial sectors may become migrant-dependent. Diversity may help raise productivity and wages through innovation, entrepreneurship, market access and trade channels. Bigger, more diverse cities help generate hybridised goods and services, but may also raise local costs through crowding. All of this presents new challenges for policymakers, who need to manage diversity’s net effects, and address both economic costs and benefits. [ABSTRACT FROM PUBLISHER]

This paper examines the nexus between political instability and economic growth in 10 CEE countries in transition in the period 1990-2009. Our results support the contention that political instability defined as a propensity for government change had a negative impact on growth. On the other hand, there was no causality in the opposite direction. A sensitivity analysis based on the application of a few hundred different variants of the initial econometric model confirmed the abovementioned findings only in the case where major government changes were applied to the definition of political instability. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including the business environment in the Western Balkan countries, the role of small and medium enterprises (SMEs) in the European economic development and the innovation activities in Macedonia.

This paper addresses the effect of English proficiency on economic growth empirically with Barro-type cross-sectional growth regression. The empirical results provide evidence of positive correlation between initial English proficiency and economic growth only for the countries in the Asia and Europe. Therefore, countries with higher levels of English proficiency among the fraction of its population are likely to grow faster. This paper suggests that the ability to absorb knowledge is positively related to the level of English proficiency. It implies that the level of English proficiency can be viewed as a component of human capital. [ABSTRACT FROM AUTHOR]

Institutions have a decisive impact on the prevalence and nature of entrepreneurship. To date, the impact of institutions on (productive) entrepreneurship and the effects of entrepreneurship on economic growth have largely been investigated in isolation. In this paper, we bring together institutions, entrepreneurship, and economic growth using a parsimonious growth model in a 3SLS specification. In our first stage, we regress multiple measures of entrepreneurial activity on institutional proxies that are known to correlate with more productive forms of entrepreneurial activity. Using the fitted values of this first-stage regression as our proxy for productive entrepreneurship, we can then estimate a panel growth regression following Islam (1995) in a second stage. The third stage then optimizes the estimation of the two equations simultaneously. Our results show that productive entrepreneurship contributes to economic growth. In our set of proxies for institutional quality, financial stability, small government, and perceived start-up skills are the most important predictors of such productive entrepreneurship. [ABSTRACT FROM AUTHOR]

This paper considers future European growth prospects in the light of a new productivity paradox, namely, the co-existence of a productivity slowdown and exciting new technologies. Several potential explanations are reviewed. It is argued that while some are unpersuasive it is too soon to be sure which carry the most weight. This has the implication that while the slowdown is real, it is not necessarily permanent. A key, hotly disputed issue is the future economic impact of technological progress on which forecasts differ dramatically. Supply-side reform could have a strong positive effect, but this is not likely to happen. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In November 2011, the EU and China are ready for new leadership change, and both of them try to draft new EU-China policy to engage comprehensively; after 2008, China has been active in the EU affairs, and even both parties sit together to discuss the solution of the EU financial crisis. More and more heads of the EU governments believe that China is playing key role to support European economic growth and solution of financial problem. In addition, the barrier of military cooperation between the EU and China has not removed since 1989, and both of them have interest to discuss how to turn new page of the EU-China military cooperation under the EU-China new leadership. This paper aims to analyse how the EU and China cooperate to tackle the EU financial crisis, and how the EU and China restarts military cooperation under the new leadership that refer to the Ireland's EU Presidency and the Chinese Xi Jingping in 2013. This research applies the Comparative Case Study Research Design to set the two abovementioned questions in order to analyse how the new leadership responses by, and it employs the Neo-liberalism to be the theory base to analyse the EU-China relations in the EU financial crisis and military cooperation. At last but not least, the research process data by the principles of the OSINT (Open-Source Intelligence) The research finding speaks that China has strong willing to help the EU solve the EU financial problem, but China cannot avoid risk while helping the EU financial crisis, but therefore, China provides help but not much. In accordance with the EU-China military cooperation. The EU cannot skip political stress from the USA, and they have no process to lift up the weapon embargo against China, but more and more countries have already helped or cooperated with China in military field, because more and more European countries have been tired of US-China hostility or competition, and they voice for China, and believe China has no threat against the EU member states. This paper concludes that the EU does not stop persuasion toward China to cooperate with the EU to solve the EU financial problem, but China does some but not much in this issues; with regard to the EU-China military cooperation, China still continues to lobby the EU to drop the weapon embargo enforcement, and persuade the EU to restart military cooperation, and furthermore, the EU has change mind and position to favour China to restore military cooperation, and plan to a serial policies to prevent the political pressure from the United States. [ABSTRACT FROM AUTHOR]

What are the livelihood strategies pursued by people in the post-socialist societies of East-Central Europe? This paper critically evaluates the view that most of the population secures its livelihood through the formal economy and that only marginalized populations now have to rely on the informal economy (i.e. work beyond employment) for their livelihoods. Drawing upon extensive survey data from Ukraine, this paper reveals that only a small minority of households in this post-socialist society rely on the formal economy alone and that the vast majority depend on a plurality of both formal and informal economic practices to secure their livelihoods. The outcome is a call for a greater appreciation and recognition to be given to the role of the informal sector in post-socialist societies. [ABSTRACT FROM AUTHOR]

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

Empirical analysis of regional convergence is normally based on data collected at a geographical scale corresponding to states or large regions (NUTS-2 or NUTS-3 for the case of Europe). However, it could be more realistic to consider that the dynamics generating economic growth take place at a smaller spatial scale. Potential heterogeneity across local areas might be not correctly quantified if the analysis is made at an aggregated geographical scale, which produces the so-called modifiable areal unit problem (MAUP). The objective of this paper is to explore to which extent MAUP has an effect on convergence analysis, in particular in the empirical estimation of $$\beta $$ -convergence equations. First, we show how aggregation of spatial data can generate a problem of bias in the OLS estimator of $$\beta $$ -convergence equations from cross-sectional data, as well as inflating its variance. Second, by means of a numerical simulation, we quantify the effect of geographical aggregation on the estimates of $$\beta $$ -convergence. Our experiment is based on real spatial structures of aggregated and disaggregated data for different countries, and it numerically illustrates how a modification in the spatial scale has a significant effect on this type of studies. [ABSTRACT FROM AUTHOR]

Why do officials in some countries favor entrenched contractors while others assign public contracts more impartially? According to the research, such variation responds to differences in political institutions, economic development and historical preconditions. This paper instead emphasizes the interplay between politics and bureaucracy. It suggests that corruption risks are minimized when the two groups involved in decision-making on public contracts--politicians and bureaucrats-- have known different interests. This is institutionalized when politicians are accountable to the electorate, while bureaucrats are accountable to their peers, and not to politicians. We test this hypothesis with a novel experience-based measure of career incentives in the public sector-- utilizing a survey with over 85,000 individuals in 212 European regions--and a new objective corruption- risk measure including over 1.4 million procurement contracts. Both show a remarkable subnational variation across Europe. The study finds corruption risks significantly lower where bureaucrats' careers do not depend on political connections. [ABSTRACT FROM AUTHOR]

In the coming years, the share of the working-age population in the total population will start to decline in all countries of the European Union. All other things remaining equal, this so-called demographic burden will have a downward effect on economic growth. This paper examines whether the Europe 2020 employment targets would be sufficient to compensate for the downward impact of demographic burden and whether the impact of demography on economic growth differs between EU countries and between urban and rural regions. The results show that raising employment rates to the Europe 2020 targets can restore positive opportunities for economic growth, but not in all countries and only to a limited extent. They also show that even though urban and rural regions differ in terms of population growth and growth of the working age population, the prospects for demographic burden are highly similar for both types of regions. [ABSTRACT FROM AUTHOR]

The aim of the paper is to establish the future intervention priorities in building a new programme that would target the economic development in the research area. The used methodology included an adapted A'WOT analysis - an initial SWOT analysis and a prioritization of the items through an expert questionnaire. In the present paper we analyze the experts' opinions and the areas where intervention is needed for the optimum strategies for the 2014-2020 financial frame. These should rely on the strengths in the Guidelines for Applicants, the rules for projects implementation and the institutional system, it should consider changes on the weak points concerning the programme objectives, the Guidelines for Applicants and the beneficiaries consultations, it should make use of opportunities coming from the crossborder status, European Union frame and economic opportunities and overcome the differences coming from crossborder status, membership of two different supranational structures and the economic gaps. [ABSTRACT FROM AUTHOR]

In this paper we analyse the impact of financial liberalization and reforms on the banking performance in 17 countries from CEE for the period 2004–2008 using a two-stage empirical model that involves estimating bank performance in the first stage and assessing its determinants in the second one. From our analysis it results that banks from CEE countries with higher level of liberalization and openness are able to increase cost efficiency and eventually to offer cheaper services to clients. Banks from non-member EU countries are less cost efficient but experienced much higher total productivity growth level, and large sized banks are much more cost efficient than medium and small banks, while small sized banks show the highest growth in terms of productivity. [ABSTRACT FROM AUTHOR]

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

Purpose - Over the past decade telecommunications media and technology (TMT) has driven a new era that has evolved into the digital age. There is a growing consensus in developed countries that TMT is the most important driver of economic and social development for a society. Its genesis began in the USA and its cultural preference for market-based development set the framework for national policy and development. Recently the formation of convergence regulators amongst many of the leading nations has begun another episode. This article aims to explore and build upon a research study of the senior executives of six of the leading convergence regulators in Asia and Europe. The article aims to analyse by way of a numeric comparison expert views of the key convergence issues three and five years out. Design/methodology/approach - A generic conceptual model was constructed of the foundation, social and economic dividend issues. By examining the relative progress of nations developments of these issues and their different approaches, new insights are developed into different regulatory approaches. Findings - The concept of proactive regulation with competition (PRC) would appear to have benefits for a number of these nations. It is hoped that these research outcomes and hypotheses will generate further research and analysis amongst the world's leading regulators in order to work through the best regulatory approaches for the current challenges. Originality/value - The paper presents original research regarding regulatory challenges. [ABSTRACT FROM AUTHOR]

Political competition between European countries has been viewed as being a stimulus to the innovation process and part of the reason why Europe was the first region of the world to experience sustained growth. Countries that fell behind their rivals technologically and economically became more vulnerable to exploitation. In this way, the presence of rival states provided added incentive to innovate. This paper uses a simple model of conflict between countries to study the role of political competition in economic growth. The governments of each country are threatened politically by innovation and, hence, face a trade-off between the stability of their regime and keeping up with their rivals. The model shows that “institutional spillovers,” such as a decrease in the level of rent-seeking in one country, can affect growth in a competing country. Thus, political fragmentation can be growth enhancing as it can result in more political competition. [ABSTRACT FROM AUTHOR]

In general, the economic performance of European countries was disappointing in the 1990s. However, country differences increased, and in some European countries economic growth matched US rates. This paper uses a set of performance indicators to carve out a group of successful European countries and to compare their economic strategies to those of the more poorly performing, big continental economies. The analysis shows that the successful countries implemented a policy mixture of cost cutting, improving institutions, and investing in future growth. We consider the first two strategy elements to be preconditions, while investment in growth drivers such as research, education and technology diffusion is the sufficient condition for long-run growth. The difference between top and low performers is larger with respect to the dynamics of future investment than in cost cutting. In research expenditures, the top countries surpassed the big continental European countries in 1987, and have been increasing their lead steadily since that time. They are welfare states with a comprehensive social net, which they have maintained in principle, while improving institutions and incentive structures. The results are not in line with the usual twin hypotheses that high welfare costs and insufficient labour market flexibility are the main culprits in European underperformance. [ABSTRACT FROM AUTHOR]

The central argument of this paper pivots around the idea that the structure and functioning of the states and political systems of South Eastern Europe are strongly determined by a long lasting particular feature of the economies and societies of the region: their dualism. This feature has its origins in the modernization process, has evolved in parallel with it and has shaped in a distinctive way both the structure and the dynamics of the polities and states of these countries. The dualism of their economies is thus a key explanatory factor in any attempt to understand the dynamics of the region. Moreover, dualism has always played a crucial role in the process of international integration of South Eastern Europe in the European and global system and it is very likely that it will continue to play a major role in the future. Accordingly the approach articulated is not laying the emphasis on ethnicity, nationalism or religion as the mainstream approaches to the states and problems of the South East European region usually do, but on the regional political economies and on what this paper considers to be their key structural problem. It is indeed difficult to imagine and analyse the Balkan problems making abstraction of the powerful ethnic and religious forces that shaped the destiny of the region but it is important to approach these problems from different and complementary angles. The present analysis implies a simplification indeed, but it is an instrumental and pragmatic one that helps us to discern and disentangle some patterns or configurations of factors relevant for a better understanding of the internal evolutions and of the international integration prospects of South Eastern Europe. The main objective of the paper is to use a specific way of conceptualizing the political economy dynamics of the region in order to illuminate from a structural and historic perspective a crucial problem currently faced by the Balkan states in their attempt to settle on the path of self-sustained growth and European integration. [ABSTRACT FROM AUTHOR]

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

In this paper we take a critical look at current European regional policies. First, we document the motivation for such policies, that is, the large income disparities across the regions of the EU15. Large disparities are certainly present. Second, we illustrate the various instruments adopted and discuss their underpinnings in established economic theories. Next, we look at available data, searching for three kinds of evidence: (1) if disparities are either growing or decreasing, we conclude they are neither; (2) which are the major factors explaining such disparities and, in particular, if they are the factors predicted by the economic models adopted by the Commission to justify current policies, we conclude this is most certainly not the case; (3) if there are clear signs that EU policies, as opposed to other social and economic factors, are actually reducing such disparities, we cannot find any clear sign of such desired impact. Our conclusion is that regional and structural policies serve mostly a redistributional purpose, motivated by the nature .of the political equilibria upon which the European Union is built. They have little relationship with fostering economic growth. This casts a serious doubt on their social value and, furthermore, strongly questions extending such policies to future members of the European Union. A successful EU enlargement, in our view, calls for an immediate and drastic revision of regional economic policies. [ABSTRACT FROM AUTHOR]

The insurance industry plays an important role for European economic stability and the threats and opportunities it faces should be carefully determined. In this paper we highlight the main challenges by using a Political, Economic, Social and Technological (PEST) analysis. This work applies conventional actuarial thought on this area by focusing strictly on the European sector. [ABSTRACT FROM AUTHOR]

Global competition has evolved from the competition between companies to the competition between regions. In this context, clusters play an important role as competences' concentration poles. The cluster initiatives represent concentrated efforts to increase the wealth and competitiveness in a certain region including companies, local administration, research and training institutions. This paper proposes the analysis of the European clusters' role in ensuring the regional development. Resulted conclusions emphasize both the positive results of clusters' existence, as well as the fields where improvements can be made in order to increase the clusters' impact on the economic development. [ABSTRACT FROM AUTHOR]

This article critically assesses the claims of the European Neighbourhood Policy (ENP) to support the economic development of ‘southern rim’ states. By amending Putnam's two-level game analysis, the paper exposes the interactions between domestic, national and supranational actors and demonstrates the outcomes of the ENP reforms in the agricultural and industrial sectors. Particular attention is given to the contribution of the ENP to the development of a dual agricultural market in these countries and to the effects of standardization for North African businesses. The article concludes by arguing that in both case studies, and despite the changes brought by the ‘Arab Spring’, (recalibrated) elites still retain established vertical ties with domestic businesses (especially small and medium-sized enterprises)—a situation that benefits certain EU industrial and agricultural companies as well. [ABSTRACT FROM AUTHOR]

This paper analyses whether hosting the most prestigious European cultural event, the European Capital of Culture, has an impact on regional economic development and the life satisfaction of the local population. We show that European Capitals are hosted in regions with above-average GDP per capita, but do not causally affect the economic development in a significant way. Surprisingly, using difference-in-difference estimations, a negative effect on the wellbeing of the regional population is found during the event. Since no effect is found before the event, reverse causality and positive anticipation can be ruled out. The negative effect during the event might result from dissatisfaction with the high levels of public expenditure, transport disruptions, general overcrowding or an increase in housing prices. [ABSTRACT FROM PUBLISHER]

Copyright of Health Policy & Management / Sveikatos Politika ir Valdymas is the property of Mykolas Romeris University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines the direct sources of economic growth and development in 10 post-socialist Central and East European countries in the period from 1995 to 2012. We perform an empirical analysis relying on the methods of growth accounting and development accounting. The results of the growth accounting analysis demonstrate that the most important source of economic growth is the accumulation of physical capital, while the growth of labour productivity and that of multifactor productivity often have marginal effects only. These results are in line with those of development accounting, suggesting that the sluggish growth of the 10 countries compared to Germany in terms of GDP/hours worked can be attributed primarily to the low capital intensity of Central and East European economies, which offered considerable potential for the rapid accumulation of physical capital. [ABSTRACT FROM AUTHOR]

Standard economic growth models generally consider different factors of production such as land, capital, labour, technology and human capital. These are common in theoretical models and empirical applications but more evidence is still needed for their long-term regional evolution. Therefore, this paper traces the evolution of specific aspects of these factors in the European regions and cities by means of different proxies. The data have been collected and calculated from a wide range of diverse historical and spatial data bases. A particular feature is the definition of the European regions according to the NUTS classification by the European Union. Thus, the paper gives a rough outline of some of the most important long-term regional tendencies that should be taken into account in research directed to past and recent time periods. [ABSTRACT FROM AUTHOR]

(1247) Johan F. M. Swinnen Dramatic changes took place in agricultural policies in Europe in the 19th and 20th centuries. In the 1860s European nations agreed on a series of trade agreements which spread free trade across the continent. In the 1960s European nations concluded an international agreement which spread heavy government intervention and protection against imports across the continent. This paper quantifies these changes in protection over the course of a century, relates them to changes in policies, and offers a political economy explanation for the growth in agricultural protection in Europe. [ABSTRACT FROM AUTHOR]

Copyright of Business: Theory & Practice is the property of Vilnius Gediminas Technical University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Growth literature has considered the existence of groups of economies that have been termed convergence clubs. This paper groups European regions in order to detect whether the existence of convergence clubs can be defended in this context. To this end, we define optimum criteria using an inequality measure. Our classification shows stability for extreme groups based on a stratification index. Results show evidence in favour of the presence of convergence clubs for the backward European regions. [ABSTRACT FROM AUTHOR]

This paper quantifies the contribution of exports to economic growth in Central and East European countries (CEECs) during transition. Two theoretical models are examined: the first is based on an aggregate production function which includes exports as an additional 'input'; while the second is based on a two-sector (exports and non-exports) model where exports provide positive externalities in non-export production. Each model is estimated with both fixed and random effects using panel data. Results show that the random effects model is preferred and that exports have a significant impact on economic growth. [ABSTRACT FROM AUTHOR]

This paper attempts to show that convergence or divergence in the European Union (EU) will be influenced by developments in the periphery of Europe to a considerable extent, although the core situation cannot be ignored. In essence, therefore, it is the relationship between core and periphery that will determine the future of the EU. The main thesis of this study is that the EU economic position is such that divergence is more likely to occur than convergence. The focus of the analysis is what has come to be known as ‘Peripheral Fordism’, which enables us lo suggest that periphery prospects for economic development are predicated upon substantial expansion of their industrial sectors based on indigenous forces. It is therefore the existing institutional structure within the EU that poses obstacles to convergence. [ABSTRACT FROM AUTHOR]

Non-R&D innovation activities account for a significant portion of innovation efforts carried out across very heterogeneous economies in Europe. However, to incorporate them into economic models is not always straightforward. Moreover, relying only on R&D data does not capture well innovation in the services sector. To counter these problems, this paper builds an augmented macro-theoretical growth model where, besides R&D, non-R&D innovation activities play a key role as main drivers of TFP. The model is estimated for a sample of EU-26 countries over the period 2004–2008, showing that the distinction between R&D and non-R&D innovation activities is significant for a number of different issues. First, we find both R&D and non-R&D to be statistically significant and economic important in technological catch-up. Second, there is a differential sizable impact of R&D and non-R&D; the impact of R&D on TFP growth is found to be twice as big as that of non-R&D. And third, the two types of innovation cannot strictly been seen as complementary, at least for the case of countries with high R&D intensities or high non-R&D intensities. [ABSTRACT FROM AUTHOR]

Sustainable development has become one of the burning issues on a global, local and individual levels as a result of climate changes, pollution, rapid development and changes in the global information, economic, industrial and business sectors and value systems. In this sense, education for sustainable development, as part of lifelong learning, has become one of the most important strategic and educational policy issues in Serbia. The aim of this paper is to highlight the potential of geography as a school subject, with special reference to the role of the subject matter of geoheritage and geodiversity in education for sustainable development. The aim of pointing the benefits of integrated and out-of-classroom approaches in teaching geography, which favour an active, experiential and exploratory approach to learning about geodiversity and geoheritage, is that students can acquire competencies in sustainable development. As outcomes of geography classes, competencies also represent a basis for raising awareness and increasing accountability and responsibility in individuals for preserving geoheritage and geodiversity as part of the Serbian national treasure. [ABSTRACT FROM AUTHOR]

This paper describes the changes which are taking place in air transport for the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia in the context of liberalisation. It also attempts to identify the common and specific factors that influence these processes in different markets of the region. The indicators for the development of the aviation market were designed using, among other things, statistics describing the infrastructure facilities and the level of activity in the market. Composite indicators and the weights for their individual components were constructed using a Multidimensional Comparative Analysis. The conditions under which changes were taking place in Central and Eastern European Countries were described with the help of selected socio-economic panel data. Finally, One-Way Fixed Effects and Seemingly Unrelated Regressions (SUR) models describing the development of the aviation markets were estimated. The adopted procedure made it possible to identify the most important common and specific factors that exerted the greatest influence on the situation of air transport in CEE Countries. The very initiation of the liberalisation process undoubtedly had a significantly beneficial effect on the development of route networks and aviation activities as broadly understood. However, the pace of change depended not only on the progress of liberalisation itself, but also on the diverse socio-economic conditions in the individual countries. As a result of the analysis, the markets were divided into two separate groups, which in many respects are distinctly different from each other. The results of the estimation models also showed that there are strong unobservable determinants of development which are specific to individual countries. [ABSTRACT FROM AUTHOR]

This paper analyzes the relationship between economic performance and institutional development in several Central and Eastern European Countries. Our meta-argument is that the structural transformations at the levels of the quantitative variables and mechanisms are only a part of the transition processes. In order to view the big picture, the qualitative aspects related to public policies and institutions should also be considered. We test the linkages between the quality of public policies and institutions for seven Central and Eastern European countries (Bulgaria, Poland, Czech Republic, Hungary, Slovenia, Slovakia and Romania) for a time span between 2001 and 2011. These countries are displaying a certain degree of heterogeneity in terms of economic performances and the design and implementation of public policies. We use for our analysis the World Bank indicators from World Wide Governance Indicators. In order to deal with the potential reverse causality issues, we employ Generalized Method of Moments Framework (GMM) by using the lagged variables as instruments. The impact of governance indicators is statistically significant even if we use several control variables: exchange rate, unemployment, current account deficit, taxes burden and price stability. The corresponding Sargan and Arellano-Bond test for zero autocorrelation in first-differenced errors tests shows that the results display a corresponding robustness. The main policy implications for our findings may be synthesized by the thesis, according to which a proper design of public policies, a high degree of their effectiveness and accountability, a stable social and political environment together with the rule of law and efficient anticorruption mechanisms are critical determinants of economic growth even in emerging markets. The impact of the government "size , economic structure and markets" mechanisms , monetary policy and price stability , ownership structure and legal rights , international exchange, freedom of exchange in capital and financial markets on economic growth is far from being negligible. Hence, the Central and Eastern European countries joining the EU should implement policies strength their institutions and to improve the quality of public decisions. [ABSTRACT FROM AUTHOR]

Creative industries clearly proved their potential for economic growth in the period before the crisis in Europe as well as across the world. However, the crisis has significantly changed the way of doing business and many sectors have been affected - some businesses managed to survive while others have been forced to close down. The present paper aims to examine whether creative industries have undergone a downturn as a result of the economic crisis or they managed to preserve their revitalising effect on countries, regions and cities. [ABSTRACT FROM AUTHOR]

Shopping centers play an important role in improving the quality of life in town and city centers around the world. Often seen as drivers of local economies, shopping centers are necessary to maintain economic growth and a sense of community, offering employment, and providing a better quality of life. In last decades in all capital cities and large cities in Central and Southeastern Europe numerous shopping centers were open and therefore the situation at retail market and traditional supply chains changed rapidly. The aim of this paper is to provide key data related to shopping center industry in Central and Southeastern European countries and to analyze the structure of retail offers, opportunities for investors, retailers and consumers at given markets. Comparative analysis of secondary data will give an insight into the current state of shopping center development and discuss the problems related to future retail development in Southeastern Europe. [ABSTRACT FROM AUTHOR]

Europe's growth slowed in the 1990s, reinforcing the overall impression of a need to catch up with the US regarding standards of living. In reaction, EU leaders adopted the famous Lisbon Agenda in 2000. The Agenda is now under review, the aim being to determine why progress on its pro-growth goals has been unsatisfactory and what can be done about it. The first crucial step in this process is to understand the true sources of the European growth slowdown. Sources-of-growth calculations have always been imprecise, but evidence from the US suggests that‘quality upgrading’– especially in capital goods– has substantially worsened the precision problem since the 1990s. Unfortunately, quality adjusted sources-of-growth calculations, however, have not performed satisfactorily for Europe, so Europe's leaders are working with potentially misleading accounts of Europe's growth slowdown. Redressing this omission is the goal of this paper.Failure to account properly for capital quality improvements leads to two mistakes. First, overall GDP is underestimated. Our calculations, for example, show that euro area GDP growth was underestimated on average by 0.7 percentage points annually in the late 1990s. However, similar quality-adjustment figures raise US growth figures in the same period by even more, so quality-adjusting suggests that the US–EU growth gap was even more pronounced than previously believed. Secondly, the sources-of-growth calculations used to prioritize Europe's pro-growth policies are skewed. Our calculations show that the contribution of the slowdown in disembodied technical progress to the overall slowdown is more pronounced after quality adjustment.Our findings point to the need for adoption of microeconomic measures aimed at enhancing overall efficiency and boosting innovation activity. Such measures would aim at a better business environment, e.g. by easing regulatory and administrative burden and liberalizing energy and telecommunications markets.— Plutarchos Sakellaris and Focco Vijselaar [ABSTRACT FROM AUTHOR]

European nations are undergoing rapid and fundamental changes in response to social, political and economic events that are occurring both within and outside the region. These changes are far-reaching in scope and, ultimately, are expected to result in a redefinition of "Europe" and what it means to be "European." Using the author's extensively pre-tested Index of Social Progress (ISP), the research reported in this paper: 1) identifies the major changes in social development that have taken place in 36 European nations since 1970; 2) contrasts Europe's recent social development trends with those of other major world regions (including Asia, Africa, Latin and North America, and Oceania); 3) using aggregate scores on the Weighted Index of Social Progress (WISP), identifies Europe's "social leaders" (SLs), "middle performing countries" (MPCs), identifies Europe's "social leaders" (SLs), "middle performing countries" (MPCs), and "socially least developing countries" (SLDCs); 4) identifies the major development challenges confronting Europe at the outset of a new decade; and 5) provides baseline data against which future developments in the region may be assessed. [ABSTRACT FROM AUTHOR]

The hesitation of many conventional-wisdom economists to rely more aggressively on fiscal policy measures in order to keep their public finances more or less balanced may have contributed to the persisting current slowdown. We discuss the potential of active fiscal policies in stimulating growth focusing on the European experience. Recent contributions in this journal emphasized the role of expansionary fiscal policies not only during recessionary conditions but rather as a standard feature of the macroeconomic policy stance, arguing that budget deficits lead to higher business profits and, therefore, economic growth. We provide evidence pointing to a positive relationship between fiscal deficits and capital profitability. We conclude that the dogmatic aversion for budget deficits may be perilous. [ABSTRACT FROM AUTHOR]