The Economic review.

At head of title: Review of the foreign press.

Is job stability declining in the U.S. economy? /

"Forthcoming in the Industrial and Labor Relations Review."

Benchmarking the knowledge competitiveness of the globe's high performing regions:a review of the World Knowledge Competitiveness Index

Purpose – The purpose of this paper is to analyze the way in which the knowledge competitiveness of regions is measured and further introduces the World Knowledge Competitiveness Index (WKCI) benchmarking tool. Design/methodology/approach – The methodology consists of an econometric analysis of key indicators relating to the concept of knowledge competitiveness for 125 regions from across the globe consisting of 55 representatives from North America, 45 from Europe and 25 from Asia and Oceania. Findings – The key to winning the super competitive race in the knowledge-based economy is investment in the future: research and development, and education and training. It is found that the majority of the high-performing regional economies in the USA have a knowledge competitive edge over their counterparts in Europe and Asia. Research limitations/implications – To an extent, the research is limited by the availability of comparable indicators and metrics at the regional level that extend across the globe. Whilst comparative data are often accessible at the national level, regional data sources remain underdeveloped. Practical implications – The WKCI has become internationally recognized as an important instrument for economic development policymakers and regional investment promotion agents as they create and refine their strategies and targets. In particular, it has provided a benchmark that allows regions to compare their knowledge competitiveness with other regions for around the world and not only their own nation or continent. Originality/value – The WKCI is the first composite and relative measure of the knowledge competitiveness of the globe's best performing regions.

Can grassroots organisations and NGOs substitute for the State in Russia? A review of the literature and suggestions for a future research agenda

The paper investigates the relationship between civil society and the state. Using the unique lens of the state-substitution (the process whereby civil society organisations take on government roles) the paper reviews the literature and highlights three key issues: - Civil society is weak in Russia and its contribution to democracy development is limited - The Russian State has be withdrawing from its responsibilities to care for its citizens, leaving a field of opportunity for civil society organisations. - The state has subsequently began to encroach on civil society organisations mainly through the use of legislative changes and government sponsored organisations These trends have far reaching implications for civil society organisations, in particular those which take up or take over government roles and responsibilities. The literary evidence shows that the Russian state leverages its political power into the sphere of civil society similar to how it regained control over the economy in the early 2000s. This Russian variant of civil society attributes the state as a key player in all societal spheres.

Missed opportunities:the WTO trade policy review for the East African community

The East African Community (EAC), comprising Kenya, Tanzania and Uganda, came into force on 7 July 2000 with a Common External Tariff (CET) established in January 2005. This Trade Policy Review (TPR) of the EAC is timely as all three countries had implemented significant trade liberalisation since the late 1980s while the CET represented an asymmetric change – Kenya and Tanzania essentially reduced tariffs whereas Uganda increased tariffs. The TPR provides considerable information on the CET and on trade and related policies in each of the member countries. However, the EAC and the TPR missed a number of opportunities: the EAC included no coordinated export promotion or investment provisions, while the TPR says little on the potential for intra-regional trade, and nor does it address the position of the EAC in the economic partnership agreements (EPAs) being negotiated with the EU. This review concentrates on these omissions to explore the implications of the EAC for developments in trade policy in the region.

László Csaba, Crisis in economics? Studies in European political economy. Budapest: Akadémiai Kiadó , 2009, 224pp., e35.10 h/b.

Book review

The political economy of Poland's transition:New Firms and Reform Governments, J. Jackson, J. Klich, K. Poznanska. Cambridge University Press, Cambridge (2005), (xvi+277 pp., £45/$80, ISBN 0-521-83895-9)

Book review

Corporate Social Reporting (CSR) in emerging economies:a review and future direction

Purpose – Previous reviews of Corporate Social Reporting (CSR) literature have tended to focus on developed economies. The aim of this study is to extend reviews of CSR literature to emerging economies. Design/methodology/approach – A desk-based research method, using a classification framework of three categories. Findings – Most CSR studies in emerging economies have concentrated on the Asia-Pacific and African regions and are descriptive in nature, used content analysis methods and measured the extent and volume of disclosures contained within the annual reports. Such studies provide indirect explanation of the reasons behind CSR adoption, but of late, a handful of studies have started to probe managerial motivations behind CSR directly through in-depth interviews finding that CSR agendas in emerging economies are largely driven by external forces, namely pressures from parent companies, international market and international agencies. Originality/value – This is the first review and analysis of CSR studies from the emerging economy perspective. Following this analysis, the authors have identified some important future research questions.

Effects of extreme weather events on SMEs:a literature review and synthesis

Small and Medium-scale Enterprises (SMEs), which generate more than one half of the employment (58.9%) and turnover (51.9%), form an important sector of the UK economy. Although they are the main drivers of the UK economy, they are also said to be the most vulnerable to the impacts of Extreme Weather Events (EWEs). The world in recent years has experienced a significant number of EWEs, and SMEs have suffered significant economic losses as a result. The now apparent climate change, which is mostly attributed to human interference with the environment over the past few decades, is believed to have a strong link with the increase of EWEs in the recent past. Threats of EWEs are expected to further increase due to their increased frequency and magnitude and increased vulnerability to their effects. Interestingly, EWEs seem to present businesses with various business opportunities and positive consequences as well, besides the much feared and overwhelming threats and negative consequences they present. Understanding such impacts has become a necessity to improve the resilience of SMEs so that they will be better prepared to minimise the negative consequences and maximise the positive consequences posed by EWEs. This paper attempts to bring together and evaluate the current knowledge with regard to the effects of EWEs on SMEs. The paper establishes the case for more in-depth study with this regard and concludes by stressing the need for improving the resilience of SMEs to EWEs.

Outsourcing in Ireland:a literature review, survey and case study perspective

Outsourcing, or offshoring as it is now known, has been around for many decades. In the beginning it was only the very peripheral activities that were blue-collar (lower skilled) work outsourced, but this is now all changing with the outsourcing of white-collar jobs. Historically outsourcing was used when organisation could not perform to world-class excellence in all sectors of the organisation due to incompetence of staff and/or management, lack of capacity, financial pressures, and/or technological pressures. The research currently underway is initially focusing on a literature review of current outsourcing applications in the market place and what impact outsourcing has on business performance. This paper will present the findings of the initial literature review. It will also discuss the methodology being followed to explore the Irish Industrial Sector.

Shadow economy and entrepreneurial entry

The impact of the shadow economy on entrepreneurial entry across countries is analyzed utilising 1998-2005 individual-level Global Entrepreneurship Monitor data and national macro-economic variables. A simple correlation coefficient suggests a positive relationship between the size of the shadow economy and the likelihood of entrepreneurial entry. However, this masks more complex relationships, if, as argued, the shadow economy is an embedded social phenomenon. With appropriate controls and instrumenting for potential endogeneity, the impact of the shadow economy on entry in a linear specification is found to be negative. Further, there is evidence of a U-shaped relationship: entrepreneurial entry is least likely when the shadow economy amounts to about a quarter of gross domestic product (GDP). At the individual level, an extensive shadow economy has a more negative impact on respondents who are risk averse. In addition, in the economies where property rights are stronger, the negative impact of the shadow economy is weaker. © 2012 Blackwell Publishing Ltd.

A Countable Economy: An Example

Weiss (1981) established core equivalence and the existence of competitive equilibria in finitely additive exchange economies. To underline the relevance of finitely additive economies we present in this note an example with a close connection to finite exchange economies.

A rejtett gazdaság és az ellene való fellépés tényezői = The hidden economy and the factors involved in combating it

A szerzők közgazdasági modellek áttekintése segítségével elemzik a rejtett gazdaságban való részvétel tényezőit. Bemutatják, hogy a haszonmaximáló cselekvők a rejtett gazdaság egyes megjelenési formáival kapcsolatos döntésük meghozatala során (például adócsalás esetében) számot vetnek a rejtett gazdaságban való részvétel, illetve az attól való tartózkodás költségeivel és hasznaival. A tanulmány az adócsalás társadalmilag optimális szintjének meghatározásával foglalkozik a rejtett gazdasággal szembeni kormányzati lépések egyes típusaival, ezek hatásaival és a rejtett gazdasággal szembeni optimális kormányzati politika lehetőségeivel. _______ The authors analyse the factors behind participation in the hidden economy, through a review of the models of economic theory. They show that those seeking to maximize profits weigh various forms of the hidden economy (tax evasion, for instance), in the search for the optimum solution, calculate the costs and benefits of participating in the hidden economy or refraining from doing so. Taking the ‘socially optimum level’ of tax evasion, the study covers the various types of government measures that can be taken against the hidden economy, the effects of them, and the scope for an optimum government policy to combat the hidden economy.

Gazdasági kórkép alulnézetből I. rész (Syndrome of Hungarian Economy from Bottom-view – I. part)

A rendszerváltás utáni időszak gazdasági teljesítményei a beteljesült remények és a megvalósulatlan várakozások egymást követő hullámzásait takarják. A mögöttünk hagyott két évtized első felét a gazdasági szerkezetváltás, a piaci kapcsolatok módosulása, valamint új – többségében külföldi – befektetői csoportok megjelenése jellemezte, amelyek együttes hozadéka volt a gazdaság stabilizálódása, majd az új növekedési pályára állás. Az ezredfordulót követő évtized első felére azonban a külföldi befektetésekre alapozott gazdaságfejlesztési stratégia erejét vesztette, s a helyettesítésre szánt hazai kkv-szektor – a kiemelt támogatások és a kedvezmények ellenére – nem tudott a növekedés motorjává válni. Szerzőnk – a BCE tudományos kutatója és az APEH korábbi elnöke – a versenyszektor 2000–2008. évi pénzügyi beszámolói alapján a hazai vállalkozások demográfiai, teljesítményi és eredményességi jellemzőit vizsgálja, s két részből álló tanulmányában arra keresi a választ, hogy a várakozásoktól elmaradó működési eredményekben milyen szerepe lehet a gazdaságfejlesztési stratégia hiányának, a vállalkozási teljesítmények elégtelenségének, a tőkehiánynak, illetve a pénzügyi rendszer torzulásainak. Szerkesztőségünk a tanulmányt olyan vitaindítónak tekinti, ami széles érdeklődésre tarthat számot, s szívesen vállalkozunk arra, hogy közreadunk minden jobbító szándékú gondolatot. _______ The economic performance during the transition period was characterized by the alternations of fulfilled hopes and unrealized expectations. The economic restructuring and changes in market relations took place during the first decade, while new – mostly foreign – investment groups entered on the new market. As a result the economy was stabilized and was put to a new growth path. But after the millennium the foreign investment based economy development strategy was no more adequate. The new engine for the growth should have been the domestic small and medium enterprise sector (SME), but despite the subsidies this sector was not strengthened to take this role. The author – the researcher of BCE, and the ex-president of APEH – analyses the characteristics of the domestic business demography, performance and effectiveness, based on the 2000–2008 annual financial statements of the business sector. The two-part study seeks the reason for the disappointing operation results. What role take in this phenomena the absence of economic strategy, the deficiency of business performance, the lack of capital and the financial distortions of the system. Our editorial intend this study as a debate for the public, and we would publish the ideas which improves this relevant topic.