The role of fiscal policies for external imbalances: Evidence from the European Union

We revisit the relation between budget deficits and current account deficits for 28 European Union countries from 1996 to 2019. We find that an increase in budget deficit of 1 pp of GDP results in a deterioration of the current account deficit of 0.318 pp of GDP, which supports the Twin Deficits Hypothesis. On the other hand, dynamic panel estimates partially corroborate the Ricardian Equivalence Hypothesis in the presence of a fiscal rules index. In addition: i) the relation between the two deficits is asymmetric and the negative impact of the recent Eurozone banking and sovereign debt crisis on the current account balance is observed; ii) with right-wing governments, the impact of the budget balance on the current account balance is mitigated; if the government is on the left, the impact of the budget balance on the current account balance is amplified; iii) after 2010, the budget balance positively affects the current account balance; and iv) the positive impact of the budget balance on the current account balance is higher in the cases of non-Eurozone countries, high budget deficit countries, and low exports countries, whereas it is lower in the cases of Eurozone countries, low budget deficit countries, and high exports countries.     

Greece in the European Union: policy lessons from two decades of membership

This paper examines the first two decades of Greece’s experience as a member of the European Union (EU). In evaluating the Greek experience within the EU, we derive three fundamental policy lessons that apply both to similar small peripheral countries now entering the EU and to the EU itself in terms of facilitating their integration in a large economic area. First, small peripheral countries that enter the EU must address the structural deficiencies of their economies before entry in order to minimize the impact of increased competition after the removal of trade protection, and follow domestic policies that maintain and promote their comparative advantage within the EU. Second, the Convergence Criteria have proven to be a successful mechanism for countries with a poor historical policy record to achieve macroeconomic stability, as shown by the case of Greece. Third, common EU policies can be very helpful in facilitating structural reforms in small peripheral economies. However, these policies must be continuously evaluated and improved so that their effectiveness is maximized.     

Evaluating Productivity Growth Measures in the EU

In this paper we evaluate the productivity growth of the member countries in the European Union (EU) before and after the enforcement of the Maastricht convergence criteria in 1992. Total factor productivity was measured by employing the growth-accounting approach and Tornqvist indices. The evaluation of productivity growth was performed by employing the non-parametric method of Data Envelopment Analysis (DEA) in particular years and within three time periods. DEA was also used to evaluate the relative efficiency of EU members with respect to the convergence criteria with important implications for their economic integration. TFP growth was found to have contributed the most in the EU, while its share in the latest recessions was the smallest as compared to labor and capital share.     

Eco-efficiency changes of the electricity and gas sectors across 28 European countries: A value-based data envelopment analysis productivity approach

This paper assesses the relative eco-efficiency changes in the electricity and gas sector (E&G)' production and consumption chains in 28 European countries. We propose a novel robustness assessment for the productivity index, specifically adjusted to value-based data envelopment analysis. Overall, results indicate that total factor productivity gains have been mainly driven by the catch-up effect across all chains of the E&G sector. When a more demanding perspective concerning negative environmental externalities is adopted, we find that the number of European countries that achieved productivity gains across all chains decreases. Besides, results depict the existence of lower productivity gains for the direct production chain when compared with the direct and indirect supply chains of the E&G sector. Germany, Luxembourg, and Belgium were consistently viewed as innovators across all chains, according to the environmental perspective. Several Eastern Europe countries usually viewed as policy laggards that resisted adopting the ambitious European decarbonization targets, showed total factor productivity gains in the supply chain of the E&G sector under a more environmental demanding perspective. Czechia was the only country with productivity losses across all chains, due to increasing coal-fired electricity generation in the time horizon assessed. The current partial return to coal as a source of electricity, due to the geopolitical tensions between Russia and Europe, brings additional challenges to the enhancement of the eco-efficiency of the European E&G sector.     

Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques

This paper investigates the consistency of efficiency frontier methods on European banking samples. We measure the cost efficiency of banks from five European countries (France, Germany, Italy, Spain, Switzerland) with three approaches: stochastic frontier approach, distribution-free approach, and data envelopment analysis. We compare means, correlation coefficients, two public policy issues, and the correlation with standard measures of performance. In general, we conclude in favor of the lack of robustness between approaches, even if there are some similarities in particular between parametric approaches. We do, however, observe some correlation between all frontier approaches and standard measures of performance.     

Is the emperor wearing new clothes? A social assessment of the European Union 2007–2013 financial framework

ABSTRACT

Over the years, European leaders have proudly waved a social flag as one of the European Union’s (EU) constituent and differentiating elements. This commitment is assessed here through the social footprint of the European 2007–2013 multiannual financial framework among the EU countries and, worldwide, using an extended multiregional input–output model. The focus is on the quantity and the quality of income and jobs generated. We find that well-known differences among its northern, southern and eastern regions threaten the EU’s intentions for high social standards, enabling first- and second-class winners. Core EU countries account for the most of the Funds and, thus, most of the positive economic and social impacts, mainly through spillovers from peripheral regions. Beyond the EU borders, Funds expenditures induce capital compensation boosts in emerging countries not balanced by a similar labor compensation impulse. Indeed, China captures the bulk of low-skilled and temporary employment.     

Trade integration in the European Union: Openness,interconnectedness, and distance

This article presents a set of indicators to measure regional trade integration, focusing on the case of the European Union. We propose measures of openness, connectedness and integration which are tuned to evaluate not only how these components contribute to the advance of international integration, but also to control for the potential threat posed by the proliferation of regional trade agreements to trade globalization. Although this and related questions have been examined from several perspectives, the present article explicitly attempts to quantify how regional trade agreements either intensify or thwart trade globalization. Results show that the process of trade integration has intensified among European Union members, whereas integration with non-members is advancing slowly. Our indicators provide a more complete view of the differing speeds of integration, which depend on whether the component of integration considered is openness or connectedness.     

Engineering the Financialization of Urban Entrpreneurialism: The JESSICA Urban Development Initiative in the European Union

Urban entrepreneurialism and neoliberal urban governance are assuming new forms under finance‐dominated accumulation. We examine and contribute to theorizing the mechanisms through which urban governance is financialized, taking as a case study JESSICA, one of the European Union's initiatives to implement an ‘urban sensitive’ policy for sustainable and integrated development. Like other initiatives promoting financialization, JESSICA deploys the logic of finance to select and fund urban social initiatives and development projects on the basis of their potential return on investment (ROI). Understanding this process requires placing questions of political economy—how urban governance is shaped by the broader political‐economic context—with questions of governmentality—how stakeholders are enrolled in and come to take for granted new governance initiatives. Following the multi‐scalar institutional infrastructure is crucial to understanding how this works. Taking a relational multi‐scalar approach, we trace how changes at the supranational scale filter down to shape urban policy selection and performance in Sofia, Bulgaria, where we document how ROI calculations conflict with social welfare priorities. Contrasts between the trajectory of financialization of urban governance in the European Union and the United States demonstrate how this is geographically variegated, shaped by the broader context/conjuncture within which such financialization is embedded.     

Social sustainability of regional transportation: An assessment framework with application to EU road transport

The assessment of transportation social sustainability appeals to many scholars as an essential issue but imposes a risk of selecting inadequate factors and methods to measure social phenomena. In this study, based on an extensive review, we identify the measurable key social indicators (instead of the economic or environmental factors commonly used) and propose a comprehensive evaluation framework for relative performance analysis of social sustainability in the regional context. This work is the first attempt to assess regional social sustainability of transport explicitly utilizing a multi-output performance measure. We use Shannon entropy to combine the results of selected data envelopment analysis (DEA) models into a unified social sustainability performance score. The method is applied to regional road transport in the European Union (EU) member states for the period 2004–2017. The empirical section explores individual profiles of EU countries, compares the states grouped into two clusters of old (EU-15) and new (EU-13) EU members, and examines their social sustainability performance over time. The analysis suggests that considering only social factors in the measurement eliminates the bias resulting from the inclusion of economic factors. As a result, our method prevents inaccurate inflation of the scores of more economically advanced countries. The findings also draw attention to the car dependence problem associated with high motorization rates in affluent EU-15 states. The study confirms the capacity of the proposed DEA-based framework to serve as an adequate tool for measuring the social sustainability of transport, which can support policymakers by providing useful benchmarks employing social factors.     

Carbon management accounting and financial performance: Evidence from the European Union emission trading system

Companies are responding to the effects of climate change by reducing CO₂ emissions as a way of managing stakeholder interests and complying with legal and regulatory requirements. In Europe, the emissions trading system is consolidated as a limiting market and control scheme to support business climate change management through a collaborative relationship between government and industry. This work focuses on the economic accounting field, analysing carbon management accounting and its impact on financial performance in scenarios attached to that trading system. The methodological approach used is quantitative, empirically testing the hypotheses through a multiple regression analysis with a sample of 350 European companies. The results attest to the importance of carbon management accounting (CMA) control and its effects on financial performance. Compared with European emission trading, the results failed to display significant differences in the relationship studied between those that make up this type of market and those that do not.     

Sustainable development of small‐ and medium‐sized enterprises in the European Union: A taxonomy of circular economy practices

This paper focuses on the implementation of circular economy (CE) practices in small‐ and medium‐sized firms in all 28 European Union (EU) countries. The analyses take into account the hierarchical nature of the collected data as firms are nested within EU countries, that is, the heterogeneity between different types of firms and countries according to practices and attitudes towards CE. The multilevel latent class model identifies groups of firms and groups of EU countries that are homogeneous in terms of CE, that is, how the homogeneous groups of small‐ and medium‐sized enterprises (SMEs) are distributed across the groups of EU countries. These results, together with the fact that firms with similar CE attitudes and practices have different demographic and business profiles across groups of countries, shed further light on the topic of green behavior in the EU with implications for businesses' environmental policies. Moreover, indications emerge that European policies favoring the implementation of CE practices should be targeted at least for subgroups of European countries, considering the different composition by typology of SMEs operating in their territories and that, at the same time, policies should be defined within each group of countries to account for the specific features of each of the four classes of SMEs.     

On the Role of Weight Restrictions in Data Envelopment Analysis

This paper examines the role that weight restrictions play in Data Envelopment Analysis (DEA). It is argued that the decision to include a factor (input or output) in a DEA model represents an implicit judgement that the factor has a non-trivial weight. It therefore seems perverse to allow DEA to assign a trivial weight to that factor in assessing the efficiency of a unit. There is therefore a strong case for imposing restrictions on factor weights. However, many existing methods of weight restriction are in practice unwieldy. This paper proposes an alternative approach we term contingent weight restriction which is both practical and intellectually consistent with the DEA philosophy. The paper explores the implications of alternative methods of weight restriction using simulated data from a well known production process.     

Specification of Distance Functions Using Semi- and Nonparametric Methods with an Application to the Dynamic Performance of Eastern and Western European Air Carriers

In this paper we examine the productive performance of a group of three East European carriers and compare it to thirteen of their West European competitors during the period 1977–1990. We first model the multiple output/multiple input technology with a stochastic distance frontier using recently developed semiparametric efficient methods. The endogeneity of multiple outputs is addressed in part by introducing multivariate kernel estimators for the joint distribution of the multiple outputs and potentially correlated firm random effects. We augment estimates from our semiparametric stochastic distance function with nonparametric distance function methods, using linear programming techniques, as well as with extended decomposition methods, based on the Malmquist index number. Both semi- and nonparametric methods indicate significant slack in resource utilization in the East European carriers relative to their Western counterparts, and limited convergence in efficiency or technical change between them. The implications are rather stark for the long run viability of the East European carriers in our sample.     

Production frontier estimation to measure efficiency: A critical evaluation in light of data envelopment analysis

The ranking and measurement of efficiency of decision-making units by two methods—data envelopment analysis and frontier production function—may not always lead to identical results. In this framework we attempt here a critical evaluation of the frontier production function theory in terms of theoretical and empirical implications. It is shown that under certain conditions the two approaches to effciency measurement may lead to identical results.     

东南亚国家联盟与欧盟、北美自由贸易区之比较

东南亚国家联盟现已经成为很有影响的多边经济合作组织.在很多方面,它不同于欧盟、北美自由贸易区这两个区域经济一体化组织.这种差别体现在组织内成员国之间的地缘亲和力、经济优势的互补性、组织的发展历程、组织的运作机制、区外合作模式以及内部关系等方面.     

农业行政管理部门人力资源管理现状及分析

农业行政管理部门人力资源管理直接影响到"三农"工作的推进,文章从人力资源管理意识、规划与配置、人力资源获取与激励机制以及人力资源开发等4个方面分析了农业行政管理部门中人力资源管理的现状及存在问题,并提出了相应的改进措施。     

Determinants of total factor productivity in former Soviet Union economies: A stochastic frontier approach

This paper investigates the process of GDP generation in former Soviet Union (FSU) economies to provide an understanding of the impact of technology channels on countries’ efficiency. We apply a stochastic frontier approach to 15 FSU economies over the period 1995–2008 and find that FDI and human capital improve countries’ technical efficiency. Furthermore, we show that these factors also have a positive impact on total factor productivity (TFP), which, in turn, improves real GDP growth. Hence, our results suggest that FSU countries should promote public policies that provide incentives to attract foreign investment and enhance domestic education in order to improve their economic growth. Additionally, our empirical evidence argues against the resource curse hypothesis. We also show, by computing efficiency change and technological change indices at the country level, that FSU economies benefit more from exploiting technological progress than from catching up to the best practice frontier.     

Assessing efficiency and innovation in the 3PL industry: an empirical analysis

ABSTRACT

The Third-party Logistics (3PL) industry is facing both important growth rates and increasing competitive pressure. 3PL providers are required to continuously sustain a more and more competitive cost structure (i.e. efficiency) and develop capabilities to improve their services (i.e. innovation); hence, the evaluation of these key success factors is considered a key issue. This paper develops a quantitative analysis of 71 Italian 3PL providers by using Data Envelopment Analysis to jointly assess efficiency and innovation. Furthermore, through a case study research, it corroborates the quantitative results by investigating the strategies of best-in-class companies. Results allowed identifying 13 3PL providers as efficiency leaders and 6 as leaders from both the efficiency and the innovation side. Their input composition indicates a diversification of the business models. A breakdown of the analysis by size and industry focus, along with empirical evidence on the strategies enhancing efficiency and innovation, is also provided.     

On the calculation of the scale elasticity in DEA models

An issue in the multiple-output case within the literature on piecewise linear frontier production functions has been how to determine the nature of the scale properties. It is shown that knowledge of scale efficiency does not permit calculation of scale elasticity or vice versa. For inefficient units there is a relationship between input-saving and output-increasing efficiency measures through the average value of the scale elasticity between the two different reference points on the frontier. A direct approach to determine the scale properties is to calculate the scale elasticity from the dual problem to the calculation of Farrell efficiency measures.