Competitiveness Research Network – First Year Results
Filippo di Mauro
CompNet Report,
June
2013
Abstract
This interim report summarises the main findings of the Competitiveness Research Network (CompNet) after one year of existence. The Network is organized in three workstreams related to: (i) aggregate measures of competitiveness; (ii) firm-level studies; and (iii) global value chains (GVCs). The main objectives of the Network are to improve the existing frameworks and indicators of competitiveness across all dimensions (macro, micro and cross-border) and establish a more solid connection between identified competitiveness drivers and resulting outcomes (trade, aggregate productivity, employment, growth and essentially welfare), in order to support the design of adequate policies.
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Does It Pay to Have Friends? Social Ties and Executive Appointments in Banking
Allen N. Berger, Thomas Kick, Michael Koetter, Klaus Schaeck
Journal of Banking and Finance,
No. 6,
2013
Abstract
We exploit a unique sample to analyze how homophily (affinity for similar others) and social ties affect career outcomes in banking. We test if these factors increase the probability that the appointee to an executive board is an outsider without previous employment at the bank compared to being an insider. Homophily based on age and gender increase the chances of the outsider appointments. Similar educational backgrounds, in contrast, reduce the chance that the appointee is an outsider. Greater social ties also increase the probability of an outside appointment. Results from a duration model show that larger age differences shorten tenure significantly, whereas gender similarities barely affect tenure. Differences in educational backgrounds affect tenure differently across the banking sectors. Maintaining more contacts to the executive board reduces tenure. We also find weak evidence that social ties are associated with reduced profitability, consistent with cronyism in banking.
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Who Creates Jobs? Small versus Large versus Young
John Haltiwanger, Ron S. Jarmin, Javier Miranda
Review of Economics and Statistics,
No. 2,
2013
Abstract
The view that small businesses create the most jobs remains appealing to policymakers and small business advocates. Using data from the Census Bureau's Business Dynamics Statistics and Longitudinal Business Database, we explore the many issues at the core of this ongoing debate. We find that the relationship between firm size and employment growth is sensitive to these issues. However, our main finding is that once we control for firm age, there is no systematic relationship between firm size and growth. Our findings highlight the important role of business start-ups and young businesses in U.S. job creation.
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Bottom-up or Direct? Forecasting German GDP in a Data-rich Environment
Katja Drechsel, Rolf Scheufele
Abstract
This paper presents a method to conduct early estimates of GDP growth in Germany. We employ MIDAS regressions to circumvent the mixed frequency problem and use pooling techniques to summarize efficiently the information content of the various indicators. More specifically, we investigate whether it is better to disaggregate GDP (either via total value added of each sector or by the expenditure side) or whether a direct approach is more appropriate when it comes to forecasting GDP growth. Our approach combines a large set of monthly and quarterly coincident and leading indicators and takes into account the respective publication delay. In a simulated out-of-sample experiment we evaluate the different modelling strategies conditional on the given state of information and depending on the model averaging technique. The proposed approach is computationally simple and can be easily implemented as a nowcasting tool. Finally, this method also allows retracing the driving forces of the forecast and hence enables the interpretability of the forecast outcome.
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Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries
K. Gonchar, Philipp Marek
HSE Working Papers, Series: Economics, WP BRP 26/EC/2013,
2013
Abstract
This paper analyzes the spatial distribution of foreign direct investment (FDI) across regions in Russia. Our analysis employs data on Russian firms with a foreign investor during the 2000-2009 period and links regional statistics in the conditional logit model. The main findings are threefold. First, we conclude that market-related factors and the availability of natural resources are important factors in attracting FDI. Second, existing agglomeration economies encourage foreign investors. Third, the findings imply that service-oriented FDI co-locates with extraction industries in resource-endowed regions.
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Innovation within the Maritime Cluster of QUÉBEC – Evaluation of a Regional Study in Québec
Sabine Freye
Presses Académiques Francophones, Saarbrücken,
2013
Abstract
Grundlage der Untersuchung ist die Annahme, dass das Entwicklungspotential einer Industrie bzw. einer Region von ihrer Innovationstätigkeit abhängt. Im Speziellen werden Antworten auf folgende Fragestellungen gesucht: Lässt sich das Cluster-Konzept auf die maritime Industrie der maritimen Region Québecs übertragen? Kann dieser Sektor eine solch große Bedeutung und Wirtschaftskraft erlangen, dass er zu einem wirtschaftlichen Standbein dieser Region werden kann? Der Untersuchung liegen die Umfrageergebnisse einer regionalen Studie zugrunde, die insbesondere die Unternehmenseigenschaften, wie beispielsweise, Größe, Umsatz oder Anzahl der im Unternehmen tätigen Ingenieure, erfasste. Die Ergebnisse zeigen, dass der Großteil der Unternehmen in der untersuchten Stichprobe kleine und mittelständische Unternehmen sind, die nur wenig Innovationsaktivitäten haben. Insgesamt deuten die Ergebnisse darauf hin, dass der untersuchte maritime Sektor nicht die geeigneten Eigenschaften aufweist um dort das Konzept eines Clusters als Regionalentwicklungsstrategie anwenden zu können.
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Related Variety, Unrelated Variety and Regional Functions: A spatial panel approach
Matthias Brachert, Alexander Kubis, Mirko Titze
Papers in Evolutionary Economic Geography,
2013
Abstract
The paper presents estimates for the impact of related variety, unrelated variety and the functions a region performs in the production process on regional employment growth in Germany. We argue that regions benefit from the existence of related activities that facilitate economic development. Thereby the sole reliance of the related and unrelated variety concept on standard industrial classifications (SIC) remains debatable. We offer estimations for establishing that conceptual progress can be made when the focus of analysis goes beyond solely considering industries. We develop an industry-function based approach of related and unrelated variety and test our hypothesis by the help of spatial panel approach. Our findings suggest that related variety as same as unrelated variety facilitate regional employment growth in Germany. However, the drivers behind these effects do differ. While the positive effect of related variety is driven by high degrees of relatedness in the regional “R&D” and “White-Collar”-functions, the effects of unrelated variety are spurred by “Blue Collar”-functions in this period.
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How to Create a New Holiday Destination? An Evaluation of Local Public Investment for Supporting Tourism Industry
Albrecht Kauffmann, Martin T. W. Rosenfeld
Quantitative Methods in Tourism Economics,
2013
Abstract
Since the 1990s tourism has been one major area in Saxony where new local public infrastructure has been created. The question is whether this newly-built tourism infrastructure has been able to change the path of economic development in those municipalities where the investment has occurred. Is it possible to activate the tourism industry with the help of public investment at locations that are completely new to the tourism industry? The econometric estimations and a survey of businesses in the field of tourism make it clear that the new tourist infrastructure really did have a positive effect on local employment – but not everywhere and not in every case. Tourist infrastructure will only have a major positive impact on economic development if a municipality already has a “track record” of being a tourist destination and is well-equipped with the relevant complementary factors for tourist activities and the “primary features” of tourist destinations – History matters!
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Cooperation Events, Ego-Network Characteristics and Firm Innovativeness – Empirical Evidence from the German Laser Industry
Muhamed Kudic, Katja Guhr
IWH Discussion Papers,
No. 6,
2013
Abstract
We study how firm innovativeness is related to individual cooperation events and the structure and dynamics of firms’ ego-networks employing a unique panel dataset for the full population of 233 German laser source manufactures between 1990 and 2010. Firm innovativeness is measured by yearly patent applications as well as patent grants with a two year time-lag. Network measures are calculated on the basis of 570 knowledge-related publicly funded R&D alliances. Estimation results from a panel data count model with fixed effects are suggestive of direct innovation effects due to individual cooperation events, but only as long as structural ego-network characteristics are neglected. Innovativeness is robustly related to ego-network size and ego-network brokerage whereas ego-network density reveals some surprising results.
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Natural-resource or Market-seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries
K. Gonchar, Philipp Marek
IWH Discussion Papers,
No. 3,
2013
Abstract
This paper conducts an empirical study of the factors that affect the spatial distribution of foreign direct investment (FDI) across regions in Russia; in particular, this paper is concerned with those regions that are endowed with natural resources and market-related benefits. Our analysis employs data on Russian firms with a foreign investor during the 2000-2009 period and linked regional statistics in the conditional logit model. The main findings are threefold. First, we conclude that one theory alone is not able to explain the geographical pattern of foreign investments in Russia. A combination of determinants is at work; market-related factors and the availability of natural resources are important factors in attracting FDI. The relative importance of natural resources seems to grow over time, despite shocks associated with events such as the Yukos trial. Second, existing agglomeration economies encourage foreign investors by means of forces generated simultaneously by sector-specific and inter-sectoral externalities. Third, the findings imply that service-oriented FDI co-locates with extraction industries in resource-endowed regions. The results are robust when Moscow is excluded and for subsamples including only Greenfield investments or both Greenfield investments and mergers and acquisitions (M&A).
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