Search

Begin New Search Topic Convergence

1. Still in the Fast Lane? How can EU-CEE Get its Groove Back?

Author:
Tomáš Slačík
Publication Date:
09-2024
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This report revisits the growth and convergence performance of the 11 EU member states in Central, East and Southeast Europe (EU-CEE11) over the past few decades, examining the underlying drivers, structural changes and the outlook. The review aims to assess the sustainability of the current economic model and identify areas for economic policy to focus on boosting growth. The findings show that convergence has significantly slowed since the global financial crisis, with value added growth declining in virtually all industries. This slowdown is attributed to structural rather than cyclical factors, with total factor productivity (TFP) being the main driver as well as the primary culprit behind the deceleration. Since medium-term growth projections for the region are not optimistic, the EU-CEE11 countries must make substantial efforts to improve their economic models. Key areas to focus on include energy, underutilised labour and improving human capital. While still very competitive, the manufacturing sector needs to move towards higher value added activities.
Topic:
European Union, Economic Growth, Trade, Regional Economy, and Convergence
Political Geography:
Europe

2. Toward Innovation-driven Growth: Innovation Systems and Policies in EU Member States of Central Eastern Europe

Author:
Alexandra Bykova, Viktrória Döme, Richard Grieveson, Francesca Guadagno, and Doris Hanzl-Weiss
Publication Date:
09-2024
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study builds on our previous analyses of a new growth model for the EU member states of Central and Eastern European (CEE), focusing on fostering innovation-driven development. We aim to explain the types of innovation systems and policies that enhance domestic innovation capabilities, drawing on global best practices. A critical evaluation of the current innovation landscape in EU-CEE countries is conducted, particularly in the context of the green and digital transitions. The study assesses the strengths and weaknesses of both national innovation initiatives and opportunities provided by EU industrial and technology policy frameworks. Based on these insights, we offer actionable policy recommendations to promote innovation-driven growth, enhance productivity, and boost economic convergence over the medium term, taking into account the unique political and historical contexts of the EU-CEE countries. Additionally, we prepare country-specific briefing notes tailored to the individual development needs and opportunities of each nation.
Topic:
Development, International Trade and Finance, Science and Technology, Economic Growth, Innovation, Economic Competition, and Convergence
Political Geography:
Europe, Eastern Europe, and Central Europe

3. A Call to Action: Lessons from Ukraine for the Future Force

Author:
John A. Nagl and Katie Crombe
Publication Date:
06-2024
Content Type:
Book
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
This book explores the changing character of war through the lens of the Russia-Ukraine War. The authors analyze the conflict’s history, each side’s warfighting functions, the role of multidomain operations, and more. The radical changes in the character of war suggest the United States is at a strategic inflection point. The authors draw lessons from both the Ukrainians and the Russians to suggest improvements for the United States. Advances in drone technology, cyber warfare, and electromagnetic warfare pose new technological vulnerabilities and possibilities. In addition, the war has highlighted the roles of allies in deterrence and training as well as how leadership styles within the military—specifically, in the implementation of mission command—can be a decisive factor. As the Russia-Ukraine War has demonstrated, modern conflict touches a plethora of domains; thus, having sufficient personnel who are ready to fill a variety of capacities will be critical in the future. Finally, the war has shown history and justice are critical aspects of going to war and achieving peace, so crafting a narrative and satisfying stakeholders will be necessary for establishing a stable world order. The Russia-Ukraine War foreshadows the challenges the United States will face in future conflict and highlights the keys to adapting to modern warfare.
Topic:
Security, Defense Policy, Military, Allies, Russia-Ukraine War, Convergence, and Warfare
Political Geography:
Europe and Ukraine

4. A Simple Theory of Economic Development at the Extensive Industry Margin

Author:
Dario Diodato, Ricardo Hausmann, and Ulrich Schetter
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We revisit the well-known fact that richer countries tend to produce a larger variety of goods and analyze economic development through (export) diversifcation. We show that countries are more likely to enter ‘nearby’ industries, i.e., industries that require fewer new occupations. To rationalize this fnding, we develop a small open economy (SOE) model of economic development at the extensive industry margin. In our model, industries difer in their input requirements of non-tradeable occupations or tasks. The SOE grows if proft maximizing frms decide to enter new, more advanced industries, which requires training workers in all occupations that are new to the economy. As a consequence, the SOE is more likely to enter nearby industries in line with our motivating fact. We provide indirect evidence in support of our main mechanism and then discuss implications: We show that there may be multiple equilibria along the development path, with some equilibria leading on a pathway to prosperity while others resulting in an income trap, and discuss implications for industrial policy. We fnally show that the rise of China has a non-monotonic efect on the growth prospects of other developing countries, and provide suggestive evidence for this theoretical prediction.
Topic:
Industrial Policy, Poverty, Reform, Economy, Diversification, Exports, and Convergence
Political Geography:
Global Focus

5. Chasing After the Frontier in Agricultural Productivity

Author:
Jules-Daniel Wurlod and Derek Eaton
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper explores international productivity patterns in agriculture. We test whether countries higher productivity growth has been experienced by countries that were initially further from the technological frontier. Based on a panel of 84 countries at various levels of development, we find support for convergence among OECD countries but divergence in our sample at large over the period 1960-2010. We then test whether technological catch-up is conditional on absorptive capacities and domestic investments in R&D. While agricultural research intensity has a significant effect on labor productivity growth, the size of this effect decreases the further the country is from the frontier. We calculate a threshold level for the effectiveness of research intensity: increased R&D contributes to catching up to the frontier for those countries with a distance to the frontier less than 22. We also test for additional factors affecting productivity growth, and find that secondary education plays a strong role in less developed countries, while trade openness appears to have had a positive effect on productivity in middle income countries. On the other hand, there is little evidence of much effect, either positive or negative from IPR protection. Of perhaps greater interest is the apparent impact of economic growth outside of agriculture in driving agricultural productivity improvements.
Topic:
Agriculture, Education, Productivity, Research and Development, and Convergence
Political Geography:
Global Focus

6. Global dynamic timelines for IPRs harmonization against software piracy

Author:
Antonio Rodríguez Andrés and Simplice A. Asongu
Publication Date:
03-2013
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper employs a recent methodological innovation on intellectual property rights (IPRs) harmonization to project global timelines for common policies against business software piracy. The findings on 99 countries are premised on 15 fundamental characteristics of software piracy based on income-levels (high-income, lower-middle-income, uppermiddle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). The results broadly show that a feasible horizon for the harmonization of blanket policies ranges from 4 to 10 years
Topic:
Intellectual Property/Copyright, Piracy, Data, Convergence, and Software
Political Geography:
Global Focus

7. Convergence Clubs in Latin America: A Historical Approach

Author:
Paola Andrea Barrientos Quiroga
Publication Date:
01-2011
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Literature on convergence among Latin American countries is still scarce compared to other regions. Almost none of the research connects convergence to the economic history of Latin America and the usual finding is one speed of convergence assuming one globally stable steady-state. In this paper I analyze 32 countries and 108 years, more observations than any other study, which allows me to use chronological events to explain, analyze and validate the historical convergence clubs in Latin America, assuming multiple steady-states. The chronological time-line is divided into three important known phases, from which I find two to three convergence clubs. Following Thorp (1998), the first phase, called “the exporting phase” goes from 1900 to 1930, the second, “the industrialization phase” from 1931 to 1974, and the last one, “the globalization phase” from 1975 to 2007. During the last two phases, I find strong evidence of convergence among those clubs that succeeded in industrializing and / or building good institutions. The reason may be that technology diffusion and capital accumulation is easier when these two phenomena occur. Furthermore, I find no evidence that geographical aspects nor integration processes helped countries to converge.
Topic:
History, Economic Growth, and Convergence
Political Geography:
Latin America