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New Resonance Approach to Competitiveness Interventions in Lagging Regions: The Case of Ukraine before the Armed Conflict

Abstract

Regional competitiveness is considered to be an alternative basis for the determination of regional interventions. However, the composite competitiveness indicator is quite sensitive to the weights of sub-indicators, no matter what methodology is being used. To avoid this uncertainty in the determination of regional interventions, we proposed a new non-compensatory resonance approach that is focused on the hierarchical coincidence between weaknesses of NUTS 1 and NUTS 2 regions measuring the extensive and intensive components of competitiveness. Such a coincidence, being perceived as a resonance effect, is supposed to increase the effectiveness of interventions triggering synergetic effects and stirring up local regional potentials. The components of competitiveness are obtained through synthesising DEA methodology and Hellwig’s index, correspondingly focusing on the measurement of technical efficiency and resource level. In analysing Ukrainian regions, no correlation between resonance interventions and the composite competitiveness indicator or GDP per capita was found, pointing toward a completely different direction in resonance approach. In western Ukraine, the congestion of six NUTS 2 regions was defined as a homogeneous area of analogous resonance interventions focused on improving business efficiency.

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Relationship between economic growth and SO2 emissions - based on the PSTR model

Abstract

In this paper, we used the panel smooth transition model (PSTR) to study the nonlinear relationship between sulfur dioxide emissions and economic growth in the three regions of China’s eastern, middle and western regions, based on panel data from 31 provinces and autonomous regions in China from 2005 to 2017. And calculated the elasticity of the impact of total export-import volume and urbanization rate on emissions. The empirical results indicate that economic development and sulfur dioxide emissions are positively correlated in the three regions of East, Middle and West. In the eastern region, when the economic scale is lower than the threshold value, it has a negative impact on SO2 emissions; but when it is higher than the threshold value, it has a positive impact on SO2 emissions, and the smoothing rate between the two regime is slow. The per capita GDP in the middle and western regions is weakly positively correlated with SO2 emissions. When the economic scale reaches the threshold value, its positive impact on SO2 emissions will increase, and economic development will further increase emissions.

Open access
Determinants of Patent Protection Regimes: A Self-Organizing Map Approach

Abstract

This study investigates the determinants of patent protection regimes with the use of the self-organizing map (SOM) method. Unlike any previous attempts in the existing literature, this paper takes into consideration the lack of analytical techniques in the past and tries to demonstrate a potential relationship between the patent protection and its determinants through the employment of a newer, more consistent method. The study consists of two main parts. Firstly, the patent protection strengths of 111 countries have been classified via a SOM-based model and it turns out that three types of clusters can be found around the world; low-, mid- and high-protection. The results also show that the densities of these clusters have dramatically changed in the post-1980 period. In the second part of the study, the determinants of the patent rights are examined for 49 developed and developing countries. After revisiting the older econometric models with recent data, this study also analyses the determinants with the SOM method. The findings suggest that there is a significant relationship between GDP per capita, human capital, R&D, market freedom, political rights and patent protection for about two-thirds of the sample; which implies that the patent policies of these countries are in accordance with the selected economic and social factors.

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The Theoretical Model of Polish Housing Policy between 2002 and 2016

Abstract

Research background: This paper attempts to introduce the concept of Polish housing policy and define its course.

Purpose: The main aim of the paper is to attribute the theoretical model of Polish housing policy and its goals and summarize the practical instruments and programs implemented between 2002 and 2016 to try to answer the question in what way the state was helping households to fulfil housing needs.

Research methodology: The research method used in the paper was a query of Polish and foreign literature of housing policy models, goals and instruments in the theoretical part, in the practical part (main research) is the monograph analysis of Polish housing policy between 2002 and 2016 including: housing resource, housing supply and change of their structure in the examined timeline, availability of apartments, supply of mortgages and connections with the availability of apartments and macroeconomic situation measured by the yearly GDP per capita.

Results: Theoretical and practical solutions were made. Polish housing policy can be defined as a wide ranging selective model according to Ghekiere (2009) division, the empirical analysis of the adopted solutions risks – marginalization of social housing and substantial impact of the financial sector (banking and mortgages) on housing which may be negative in the case of an economic crisis.

Novelty: The value of this paper is a contribution to the debate on defining a theoretical model of housing policy and an explanation of the changes in housing in Poland from 2002–2016.

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Ecological Growth Boundaries

Abstract

The trends of the society for the continuous growth, combined with the demographic changes, today have led to the important ecological problems on a global scale, which include, among others: the increased use of non-renewable natural resources, an increase of the greenhouse gas emissions, contamination of soil, water, air and the progressive degradation of ecosystems. In the face of such serious threats the global initiatives of all countries are important to limit the results of the excessive consumption. The aim of the article is to present the methods of measurement of the consumption level of natural resources by the societies and the examination of relationships between the level of development of the societies and the use of resources. The popular measure – the ecological footprint – was used as a measurement method for the consumption of the today’s generations in relation to the regenerative possibilities of the natural environment. On the other hand, as the assessment method for the level of development of societies – the Human Development Index (HDI), including three basic areas: the life expectancy, GDP level per capita and education was used. The results of the research indicate that the current trend of the unlimited consumption of the highly developed countries takes place at the expense of the future generations.

Open access
Income Absolute Beta-Convergence of NUTS 3 Level Regions in New EU Member States before and During a Crisis

Abstract

This paper is aimed at answering the question of whether absolute income (GDP per capita) beta-convergence exists in the case of regions in new EU Member States before the period of 2000–2008 and during the 2008–2011 crisis. The sample consists of 211 regions (NUTS 3-level) of Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia and Slovakia.

The research is based on econometric models, namely on the spatial lagged model (SLM), the spatial error model (SEM) and the Durbin spatial model which contrary to the ordinary least squares the (OLS) model include possible spatial dependencies. The SLM and SEM models as well as the Durbin spatial model detect the absolute income beta-convergence on the level of about 1% during the years 2000–2008. Additionally, models do not confirm the existence of absolute income beta-convergence during the crisis of 2008–2011. SLM models (which offer the most reliable findings) find a spatial correlation (measured by the rho-parameter) at a level of 0.75 during 2000–2008 and 0.35 during 2008–2011. Thus, absolute income beta-convergence in the case of NUTS 3 regions in 10 new EU Member States existed only in the pre-crisis period and this period is characterized by much stronger spatial dependencies than the period of 2008–2011.

Open access
Assessing the pre-REDD policies of countries with substantial forest area growth

Abstract

Based on the method of Compensated Successful Efforts, this paper proposes a structural variables model to assess pre-REDD+ (Reducing Emission from Deforestation and Degradation plus) policies; selecting economic development, population growth, initial forest area, agricultural commodity export prices, and timber prices as structural variables, and empirically analyzes 11 high-forest-growth countries’ policies from 1992 to 2011. Results show that the forest area growth rate was negatively correlated with the initial forest area and agricultural commodities export prices, and positively correlated with population density, GDP per capita, and timber export prices. China and India’s entity fixed effects are more significant; in different periods the rate of actual forest area growth exceeded that of structural forest area growth in 11 countries. Overall, Compensated Successful Efforts proved to be useful for evaluating the effects of the high forest area growth country policies. Regardless, these countries should join REDD+ organizations and continue enhancing their forest management and increasing forest area. As part of this effort, REDD+ negotiations should consider fully compensation mechanisms for these countries to attract more countries and promote the progress of international climate negotiations.

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The Formation and the Future Potentials of the Eighth Hungarian Region

Abstract

In the time of accession to the EU, Hungary drops to the second part of the programming period 2000-2006. The Central-Hungarian region (which includes the capital and Pest County) was classified as a less developed region, similarly to all of the six ‚rural‘ regions and thus the area received the highest amount of the supporting sources. In the programming period 2007–2013, the Central-Hungarian region belonged to the transitional regions and so it received continuously decreasing subsidies. In the case of Budapest, the value of GDP per capita refers to the development, but based on the measurement, Pest County was supposed to belong to the transitional areas. Between the years 2014–2020, the whole area of the Central-Hungarian region was getting to the level of a developed region. It means that this area is not entitled to get Cohesion sources anymore. On the 30th of October 2015, Pest County Assembly made a decision about Pest County’s disruption and declared its intent to create a separated region. As long as the government stood for the idea and it met with a warm response in Brussels, Pest County could operate as an independent region from 2018. Our study will draw attention to the huge territorial differences between the capital and its agglomeration and the surrounding areas.

Open access
The Catching up Processes of the Regions of the Visegrad Group Countries

Abstract

The majority of Central and Eastern European post-socialist countries acceded to the European Union in 2004. The integration of these economies to the Union had begun earlier, which was strengthened by grants from the Structural Funds after the accession. One of their aims is to facilitate the catching up processes of less developed regions and their convergence to the average of older member states. In our study1, we examine the success of the catching up processes of the NUTS3 regions in the four Visegrad Group countries (V4), i.e., the Czech Republic, Hungary, Poland and Slovakia, between 2000 and 2014 to the average of the 15 initial member states of the European Union. Is there a process of catching up in each region, and if so, is it at a similar or a highly different rate? We analyze the development of GDP per capita at Purchasing Power Parity, and we examine disparities in the level of catching up using entropy-based Theil indexes. We provide a detailed analysis of two of the influencing factors of the catching up process of regions. Firstly, we look at whether the catching up process of the regions took place in a similar or very different way compared to the national average. Secondly, we examine how the size of the biggest city of the regions affected catching up, and whether the role of the biggest city of region can be shown.

Open access
National innovative performance and sustainable development – the case of Slovakia

Abstract

Innovation are considered as the engine of sustainability and economic growth. Innovations are an integral part of the business that is expressed in scientific and research activities. If a company want to gain competitive advantage, it must do the business activities in accordance with economic, environmental, social and institutional factors. Business activities in this area are reflected in macroeconomic indicators of the country. This article deals with innovations and sustainable development issues. The main goal of research is testing interaction between innovations and sustainable development through the selected indicators. Summary Innovation Index (SII) represents innovations and sustainable development is represented by the set of indicators from four areas: economic, environmental, social and institutional. The analysis is based on values of the Summary Innovation Index proposed by the European Commission to measure the competitiveness of European countries in terms of innovation activity and values of sustainable development indicators such as GDP per capita, energy intensity of the economy, migration, transport performance, greenhouse gas emissions, application of environmental management system, mining and consumption of mineral resources, etc. The research is carried out on the case of Slovakia with application of mathematical-statistical apparatus (correlation analysis). The main benefit of research lies in the identification of strengths and weaknesses of Slovakia in analysed areas and determining the expected development.

Open access