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This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Abstract
Purpose
This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Design/methodology/approach
It introduces a novel theoretical framework, the state-business-labor relations (SBLR) framework, where four main actors are identified: the state, big businesspersons or tycoons, owners and managers of small and medium enterprises (SMEs) or Entrepreneurs and labor. Different SBLR categories or modes are introduced depending on levels of coordination and power relations between the studied actors. The paper then investigates how these SBLR modes, through adopting various policies targeting the industrial sector, lead to different growth paths. Rather than focusing only on economic growth, this research regards a growth path as a matrix of the performance in long-run growth and equality of distribution.
Findings
Using regression analysis and statistical data, the results suggest that the Co-Balanced mode, having higher levels of coordination and lower favoritism, leads to the best growth path among the four introduced modes, especially with its emphasis on high levels of venture capital availability and easiness of starting business. while the Lib-Capture mode, characterized by lower coordination and higher favoritism, seems to have the worst growth path and the best implemented policy for this mode is suggested to be high profit taxes that seem to counter the negative impact of the existing high levels of favoritism.
Research limitations/implications
Despite the important findings that this research has reached, this paper is mainly meant to open a further investigation into this topic and open this dimension that the research on VoC and political economy have under-researched. A deeper investigation of SBLR typologies that could only be possible by having richer datasets with more data on coordination for the whole world, rather than only the advanced economies, would further our understanding of the dynamics that shape the growth paths of different countries of the world.
Practical implications
To realize the best industrial growth path, fighting favoritism should be an important objective. The negative impact of favoritism on innovation could not be disregarded in the eve of the fourth industrial revolution, where innovation is increasingly pivotal to future industrial development. Actively engaging societal groups in the policymaking process is important in addressing their concerns and balancing them at the same time. This should lead to the double benefit of formulating better policies that should foster growth as well as provide better distribution of this growth. High levels of coordination should help in realizing this objective. Yet, this could only be possible if societal groups are free to associate and aggregate their power and when there are means of preventing one actor from gaining more favorite treatment and exclusive influence over policymakers. The presence of both powerful and broadly represented business associations and labor unions and the existence of a government interested in coordinating their efforts-rather than letting itself be controlled by one group at the expense of the others-should help in the realization of the best growth path. Thus, institutional reform that empowers societal groups and enables them to defend their interests as well as fights all forms of corruption should lead to the realization of a more prosperous and equitable industrial development, with the “re-industrialization” of the developed world being no exception. The technological and social challenges of intensive automation and digitalization accompanying the fourth industrial revolution make the envisaged institutional reform more urgent.
Originality/value
This paper is introducing a novel theoretical framework for studying the effect of state-society relations, particularly SBLR, on the industrial growth paths of developed countries. It integrates three important bodies of literature in order to build a more comprehensive understanding of the dynamics of state-society relations and their economic consequences. These are the Varieties of Capitalism (VoC), State-Business Relations (SBR) and Industrial Relations. The SBLR framework differentiates between tycoons and entrepreneurs, an important distinction that often goes unnoticed. Different SBLR categories or modes are introduced, depending on levels of coordination and power relations between the actors. It is proposed in this research that the effect on growth paths goes beyond the simple dichotomy between CMEs and LMEs usually present in the literature of VoC and that power relations provide an essential complementary dimension in explaining this causality.
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This chapter investigates whether, and if so, how particular firms in a transition economy are involved in bribery. Built on pressure theories, we explain how the direct effects…
Abstract
This chapter investigates whether, and if so, how particular firms in a transition economy are involved in bribery. Built on pressure theories, we explain how the direct effects of firm characteristics and contextual characteristics determine firm bribery behavior. Entrepreneurs make choices based on perceptions of a specific pressure due to organizational characteristics (internal pressures) or due to context (external pressures). The relationship between firm characteristics, context, and bribery was estimated using unique data from a survey of 606 Vietnamese entrepreneurs. We controlled for various entrepreneurial, organizational, and industrial characteristics. The exploratory findings support firm attributes hypotheses, which is a negative relationship between firm size and bribery and a nonmonotonic U-shaped relationship between firm age and bribery. Besides, the effects of context on bribery are also found. Specifically, the result supports a positive relationship between competition and bribery and a negative relationship between the quality of the government and bribery.
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Faris ALshubiri and Mawih Kareem Al Ani
This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for…
Abstract
Purpose
This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for the period of 2006–2020.
Design/methodology/approach
Diagnostic tests were used to confirm the panel least squares, fixed effect, random effect, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares estimator results as well as to increase the robustness.
Findings
According to the findings for the developing countries, trademark, patent and industrial design applications, each had a significant positive long-run effect on FDI inflows. In addition, there was a significant positive long-run relationship between patent applications and medium- and high-technology exports. Meanwhile, trademark and industrial design applications had a significant negative long-term effect on medium- and high-technology exports. In developed countries, patent and industrial design applications each have a significant negative long-term on medium- and high-technology exports. Furthermore, patent and trademark applications each had a significant negative long-run effect on FDI inflows.
Originality/value
This study contributes significantly to the focus that host countries evaluate the technology gaps between domestic and foreign investors at different industry levels to select the best INPR rules and innovation process by increasing international cooperation. Furthermore, the host countries should follow the structure–conduct–performance paradigm based on analysis of the market structure, strategic firms and industrial dynamics systems.
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Fahad K. Alkhaldi and Mohamed Sayed Abou Elseoud
The current chapter proposes a theoretical framework to assess the sustainability of economic growth in the Gulf Cooperation Council (GCC) States. The authors integrate insights…
Abstract
The current chapter proposes a theoretical framework to assess the sustainability of economic growth in the Gulf Cooperation Council (GCC) States. The authors integrate insights from endogenous growth models and consider the unique socioeconomic characteristics of the GCC region to provide a comprehensive and tailored approach to understanding the determinants of economic growth and formulating effective policy measures to foster sustainable development and growth. This chapter highlights the environmental challenges faced by GCC; based on this, the authors suggested indicators to construct a theoretical framework (Economic Growth, Climatic Indicators, Energy Indicators, Social Indicators, and Economic Resources Indicators). The authors propose that policymakers and researchers in GCC States should take these factors into account when devising policies or conducting research aimed at fostering sustainable economic growth. Overall, this chapter presents significant insights for policymakers, researchers, and stakeholders involved in promoting the sustainable economic advancement of the GCC States.
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We investigate the role of fiscal policy, through several measures of government revenues and expenditures and redistribution, on disposable and market income inequality and…
Abstract
Purpose
We investigate the role of fiscal policy, through several measures of government revenues and expenditures and redistribution, on disposable and market income inequality and economic growth as well as the interaction between inequality and growth for 31 European countries from 1995 to 2019.
Design/methodology/approach
We use a simultaneous equations model to assess the linkage between economic growth, inequalities and fiscal policy variables.
Findings
(1) While disposable income inequality has a negative effect on all fiscal policy variables, market income inequality has a mixed effects; (2) for Eastern European countries, public consumption and direct taxation positively influence economic growth; conversely, for Western European countries, the effects are negative; (3) disposable and market income inequality have a positive effect on growth for Eastern European countries, and a negative influence on growth for Western European countries; (4) growth contributes to the increase of disposable and market income inequality for Eastern European countries; for Western European countries, the effects are opposite; and (5) fiscal policy allows for the attenuation of disposable income inequality.
Originality/value
The different results between the role of market and disposable income inequality levels lead us to suggest tax progressivity as an important feature to consider when analyse the trivariate relationship between inequalities, fiscal policy and growth. Furthermore, there are different dynamics between inequality and growth, and the role of fiscal policy, on both Eastern and Western European countries.
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Christine Prince, Nessrine Omrani and Francesco Schiavone
Research on online user privacy shows that empirical evidence on how privacy literacy relates to users' information privacy empowerment is missing. To fill this gap, this paper…
Abstract
Purpose
Research on online user privacy shows that empirical evidence on how privacy literacy relates to users' information privacy empowerment is missing. To fill this gap, this paper investigated the respective influence of two primary dimensions of online privacy literacy – namely declarative and procedural knowledge – on online users' information privacy empowerment.
Design/methodology/approach
An empirical analysis is conducted using a dataset collected in Europe. This survey was conducted in 2019 among 27,524 representative respondents of the European population.
Findings
The main results show that users' procedural knowledge is positively linked to users' privacy empowerment. The relationship between users' declarative knowledge and users' privacy empowerment is partially supported. While greater awareness about firms and organizations practices in terms of data collections and further uses conditions was found to be significantly associated with increased users' privacy empowerment, unpredictably, results revealed that the awareness about the GDPR and user’s privacy empowerment are negatively associated. The empirical findings reveal also that greater online privacy literacy is associated with heightened users' information privacy empowerment.
Originality/value
While few advanced studies made systematic efforts to measure changes occurred on websites since the GDPR enforcement, it remains unclear, however, how individuals perceive, understand and apply the GDPR rights/guarantees and their likelihood to strengthen users' information privacy control. Therefore, this paper contributes empirically to understanding how online users' privacy literacy shaped by both users' declarative and procedural knowledge is likely to affect users' information privacy empowerment. The study empirically investigates the effectiveness of the GDPR in raising users' information privacy empowerment from user-based perspective. Results stress the importance of greater transparency of data tracking and processing decisions made by online businesses and services to strengthen users' control over information privacy. Study findings also put emphasis on the crucial need for more educational efforts to raise users' awareness about the GDPR rights/guarantees related to data protection. Empirical findings also show that users who are more likely to adopt self-protective approaches to reinforce personal data privacy are more likely to perceive greater control over personal data. A broad implication of this finding for practitioners and E-businesses stresses the need for empowering users with adequate privacy protection tools to ensure more confidential transactions.
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Education had proven to be one of the main determinants of economic growth, and it is a reason of the variations in economic growth levels between developed and developing…
Abstract
Education had proven to be one of the main determinants of economic growth, and it is a reason of the variations in economic growth levels between developed and developing countries. One of the main dimensions in studding the relationship between economic growth and education is the gender dimension or the importance of gender equality or female education in achieving economic growth. This chapter aims to test the hypothesis of the existence of a positive relationship between female education and economic growth in Egypt since 1990.
To address this question, Auto Regression Distributed Lag (ARDL) Bound test approach is conducted to analyze the co-integration between female education and economic growth using Egyptian Data for the period 1990–2022. The Empirical analysis for Egypt suggests the existence of positive significant relationship both in the short run and long run and that the impact of female education on economic growth is larger than the impact of education in general on growth. This could be explained by the existence of gender gap in Egypt, labor market, and thus, more educated girls able to enter the labor market will affect the economic growth more than the education of both sexes, in other words, there is still a room for improvement in the female labor market opportunities than for both sexes. The chapter also confirms the existence of a direct link between education in general and economic growth and thus confirms the hypothesis of the positive impact of education economic growth.
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Hod Anyigba, Alexander Preko and William Kwesi Senayah
This study is to examine and develop sector skills strategies and action plans for the textile and apparel (T&A) sector.
Abstract
Purpose
This study is to examine and develop sector skills strategies and action plans for the textile and apparel (T&A) sector.
Design/methodology/approach
The paper used a participatory action qualitative method anchored on the Skills for Trade and Economic Diversification (STED) framework, utilising the workshop-based approach with 24 key stakeholders of the sector. Content analysis was used with the help of Nvivo software.
Findings
The findings revealed that there are skills shortages, skills gaps, skills mismatches and skills diversification programmes available through higher education and work-based learning. Further, there are labour supply challenges such as national skills policy and strategy, government and stakeholder coordination, funding, relevance of curriculum and qualifications, access to practicals and the absence of a clear national vision for the sector.
Research limitations/implications
This study possesses an inherent limitation in terms of generalising the findings derived from qualitative research.
Originality/value
This research is among the first of its kind to assess skills needs and gaps through the lens of STED framework, which has been overlooked in previous literature. Importantly, this study provides vocational insights into skill needs in the sector.
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Aldo Salinas and Cristian Ortiz
The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.
Abstract
Purpose
The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.
Design/methodology/approach
The study employs econometric techniques for panel data covering the period from 2002 to 2017 and considering 17 Latin American countries. The evidence presented is based on the informal economy data generated by Medina and Schneider (2018) who estimate the size of the informal economy using a structural equation model and the share of manufacturing in total employment as a measure of the size of the manufacturing sector. Also, the study addresses the possible endogeneity bias in the relationship studied and makes the conclusions more robust, thus avoiding spurious correlations that weaken the findings.
Findings
The results indicate that most industrialized Latin American countries are associated with a smaller size of the informal economy.
Practical implications
The findings have important policy implications, as they suggest that Latin American economies need to switch the structure of the economy toward more sophisticated productive structures if they want to reduce the size of the informal economy. Thus, more efforts should be deployed to policies to diversify and upgrade economies.
Originality/value
The study contributes to the literature on the informal economy by connecting the country’s productive structure and informality. Specifically, the results show that the productive structure of countries is a plausible explanation for the size of the informal economy.
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