Public Sector's Involvement in Marketing Growth:

The Japanese public sector played an instrumental role in the successful resurrection of the Japanese economy after World War II. The public sector supported the use of several emerging marketing concepts as well as borrowing and applying American concepts through cross-cultural marketing during the various stages of Japanese marketing growth. The public sector accomplished its goal by supporting the private sector through the establishment government agencies as well as through other players in the public sector. The leadership and direction provided by the public sector has enabled Japan to develop its economy throughout all five periods of marketing growth. A new sixth phase appears to be emerging through the efforts of the public sector to attract foreign investment and imports into Japan, to counteract the tremendous trade surpluses built up since the mid 1980's.     

Petty services,profit‐led growth and rural–urban migration in a developing economy

This paper develops a structuralist urban dual economy model for a developing economy consisting of a capitalist formal sector and a “petty” or informal service sector. The petty service sector plays an important role in wage determination and capital accumulation in the formal sector. The urban dual economy is situated in the midst of a rural area endowed with generous amount of surplus labour. The rural area augments urban labour supply over time through rural–urban migration. The paper, therefore, incorporates rural–urban migration within a structuralist framework and highlights its implication for growth and structural change in urban spaces of developing economies riddled with persistent formal–informal duality.     

Formal Employment and Informal Work in Household Services

This article discusses whether employment increases are likely in household services. The conclusion is that until recently, employment increased due to a shift of service work from households to the formal economy (especially the public sector). The growing number of childless or single parent households means a growing demand for services from the formal economy. Still, it seems likely that the service employment growth will slow down and be substituted by work in the informal economy, due to the cost increases in the formal economy connected with low productivity growth in service activities.     

The shadow economy—An expanding field of activity

The existence of a broad range of economic activities in the “shadow” of the official economy is nothing fundamentally new. However, there are signs that the shift into the shadow economy has been increasing considerably from the seventies onwards. Whereas growth in the “official” economy slowed down perceptibly, the shadow economy has clearly become a pronounced growth sector in the Federal Republic of Germany and in many other industrial countries.     

Productivity growth and cyclical behaviour in service industries: the Spanish case

A longstanding basis of empirical economics is that average labour productivity declines during recessions and increases during booms, and thus behaves procyclically. In the short run, in many countries output growth and productivity tend to move together and across a wide range of industries. In recent years, this observation has gained increased prominence as each proposed explanation for the observed procyclicality has important implications for modelling the business cycle and measuring the technical change. By filtering out the influence of business cycles, it is possible to isolate changes in the long run, or structural rate, of productivity growth and so assess the importance of any source for economic growth. Nevertheless, the focus of these empirical works has been the aggregate economy or manufacturing industries, and not the services sector. The novelty of this paper is the focus on the patterns within the services sector. The aim of this paper is to better understand short-run changes in productivity growth within the service sector industries, which are necessarily different from those existing within the manufacturing sector. Another goal of this research is to assess whether this observed procyclicality remains if the service sector is the scope of analysis, and whether this is homogeneous among the different activities within this miscellaneous sector or not. Empirical evidence for the Spanish economy since 1980 is presented.     

A Comparative Analysis of Managerial Adaptation to Privatization

ABSTRACT

Economic analysis on emerging economies of Central and Eastern Europe (CEE) has shown a flourishing private sector coexisting with shrinking state enterprises fueling speculation that growth would come from the new private sector. In this view, it is important to (1) assess the private sector which continues to grow and is vital to the process of emerging new market economies; and (2) account for the current place of entrepreneurship and assign its role in the process of systemic transformation which takes place in the economies of the CEE. Based on interviews and models on en-trepreneurship, the paper analyzes how the entrepreneurs' behavior is influenced by government regulation, credit terms, taxation, long-term and short-term financing options, level of infrastructure, and preferences to small business, and how entrepreneurs' consequent behavior can in turn influence the working system itself. The goal is to show that the emerging small business sector of the post-Communist Hungarian economy fulfills important material and ideological functions. The paper concludes that the Hungarian entrepreneurship is an independent vehicle for economic growth and bringing about the emergence of capitalist forms of economic production in the post-Communist Hungarian economy.     

The Limits to Wage‐Led Growth in A Low‐Income Economy

Neo‐Kaleckian literature has actively debated whether growth is wage‐ or profit‐led in capitalist economies. However, existing studies tend to ignore the non‐tradable sector and heterogeneity within the tradable sector. This article shows that incorporating these features renders wage‐led growth in an open developing economy unfeasible in the traditional (Kaleckian) sense of the term. This result—which follows even if one sets aside the competitiveness considerations generally seen as impeding such growth—occurs due to the presence of a homogeneous goods‐producing tradable sector that sets the ceiling to steady‐state growth. A corollary, in light of findings from the ‘new new trade theory’ literature, is that increasing South‐South trade may tend to narrow room for wage‐led growth regardless of the other desirable effects of higher wages.     

In search of leisure time: An endogenous growth model with leisure services

Starting from the Ladrón‐de Guevara et al.’s framework, we develop a model with an additional sector for the production of leisure services. By introducing consumption of leisure services as a time‐consuming activity, our model generalizes the standard time allocation problem whereby total available time can be allocated between work, education, free time and leisure activities. We analytically characterize the balanced growth paths of the model, particularly in terms of time allocation and growth. Our comparative analysis of different service economies assumed at equilibrium includes the case of an industrial economy without a service sector and the potential multiple equilibria of such an economy.     

Financial sector ups and downs and the real sector in the open economy: Up by the stairs,down by the parachute

We examine how financial cycles affect the broader economy through their impact on real economic sectors in a panel of countries over 1960–2005. Periods of accelerated growth of the financial sector are more likely to be followed by abrupt financial contractions than are periods of slower financial sector growth. Sharp fluctuations in the financial sector have strongly asymmetric effects, with the majority of real sectors adversely affected by contractions, but not helped by expansions. The adverse effects of financial contractions are transmitted almost exclusively through the financial openness channel, with precautionary foreign exchange reserve holdings serving as a key buffer.     

The impact of banks and non-bank financial institutions on economic growth

Empirical studies examining the relationship between financial sector development and economic growth without including non-bank financial institutions (NBFIs) will likely generate biased empirical results. This study provides evidence that NBFIs can have a statistically significant negative impact on economic growth using cross-country data for both emerging and advanced countries. This finding suggests that these non-bank institutions, often loosely regulated, may introduce an excessive level of risk into the financial sector and the general economy. It is consistent with the current global financial crises where NBFIs, such as investment banks and insurance companies, introduced an excessive level of risk into the global economy. Hence, policy-makers may need to consider more timely and effective regulation of NBFIs and insure that adequate transparency and disclosure is provided to all financial markets participants.     

A THEORETICAL ANALYSIS OF SISMONDI'S TABLEAU ECONOMIQUE

This paper submits Sismondi's calculation example presented in his paper of 1824 («On the Balance of Consumption and Production») in the form of an input-output table. This paper also examines Sismondi's argument concerning technological progress and under-consumption. The effect of an increase in labour productivity in one particular sector on the economy as a whole is analysed in the framework of a simple reproduction system. Subsequently the model is applied to a growth economy, and the difficulty of attaining balanced growth in Sismondi's system is discussed.     

The Linkage between Tertiary and Industrial Sectors in the Italian Economy

The aim of this article is twofold: to describe the cyclical evolution of the linkage between the industrial and the tertiary sector of the Italian economy from 1951 to 1988 and to assess the analytical meaning of this evolving linkage. This study is performed taking into account the main macro-economic indicators: investments, employment, value-added, of the agricultural, industrial and service sectors. This kind of research allows us to give a somewhat different interpretation of the growth of the Italian economy, stressing the importance of the .service sector, since mainstream economic interpretations usually play down its role.     

长三角城市间第三产业的分工定位与协作

随着中国经济的发展,整个长三角地区逐渐成为了世界又一大制造中心,但是就长三角地区生产性服务业的发展来看各城市却参差不齐。长三角服务业和制造业的发展是一个息息相关的整体,制造业需要服务业的支撑,服务业靠制造业"养活"。长三角各城市之间的服务业有着千丝万缕的联系:上海服务业的发展水平最高,但却离不开周边地区服务业的支撑,而周边地区服务业的发展也对上海有一定的依赖。两省一市之间的分工协作会有效地促进地区经济的发展。     

The International Effects of China’s Growth,Trade and Education Booms

China’s international trade flows have increased by 500 per cent since 1992, far outstripping GDP growth. Likewise tertiary education enrolments have increased by 300 per cent. We simulate these changes using a multi‐sector growth model of the Chinese and USA economies. A decade of trade biased growth in China is found to raise USA GDP by approximately 3–4.5 percentage points and has a large impact on the demand for tertiary education in China. Despite these positive effects of growth, the results suggest that the expansion of China’s education sector per se has practically no long‐run impact on the USA economy.     

外资进入我国旅游业趋向的影响因素分析

针对我国旅游业未来外资进入的规模、方式与结构,文章系统研究了影响外资进入我国旅游业的各项动力因素,认为旅游行业设施使用率和入境旅游人数是影响外资进入规模的关键因素,而外资进入方式和结构受当地经济增长、投资环境、旅游行业及外商自身因素的综合影响,由此也构成外资进程序包国旅游业趋向的预测指标体系.     

Uncertainty,Specialization and Government Intervention

We use a one‐factor two‐sector model of comparative advantage with uncertainty to compare the effects of different specialization levels on growth under various scenarios. We derive the static and dynamic optimal level of specialization under the centralized and the decentralized economy. We identify the conditions under which the socially optimal specialization level entails positive investment in the comparatively disadvantaged sector. We show that in this case the socially optimal solution cannot be reached by the decentralized economy which is in fact characterized by over‐specialization. We conclude presenting a simple tax‐based redistributive mechanism able to achieve the optimal level of specialization in a decentralized economic system.     

Relationship between Inflation and the Comparative Evolution of Wages in Industry and Services within the Spanish Economy

A large body of empirical literature ascribes a high degree of responsibility by the service sector for the difficulties in lowering inflation in the Spanish economy in the 1980s and early 1990s. Despite the fact that most of the branches in this sector are characterised by their lower ability to increase productivity, service wages have increased at a similar rate to those of other activities that, however, have been able to generate constant growth in productivity. On the other hand, tertiary activities have been able to transmit the growth in wage costs to prices without this having significant repercussions on the amount demanded as they are more protected from international competition. In this context, the reasons why service growth is accused of being one of the key causes of price growth are understandable. Nevertheless, throughout the1990s, important changes have taken place due to the technological revolution of modern economies that have created a doubt that services are still for the most partly protected from competition. This article makes a comparative study of the evolution of wages in industry and services, finding initial evidence that tertiary wages are presenting in their evolution the lowest productivity of most of tertiary activities pressurised by greater competition, which is lowering the incidence on inflation of the sector and of the economy in general.     

国际贸易、技术创新与人力资源的再配置

技术进步是长期经济增长的源泉,而技术进步很大程度上是市场选择的结果。技术具有外溢性,在开放经济条件下,国际贸易通过开辟知识的跨国流动途径加速国际知识交流,增加本国的知识存量;另一方面通过劳动力市场和产品市场的价格信号影响人力资源在传统工业部门和技术研发部门之间的流动,并对人力资本投资发生作用。这种人力资源的专业化及投资行为最终会对长期经济增长率产生影响。     

Cost disease in service sector

A higher growth rate of the service sector prices, rather than prices in the manufacturing sector, through time is known as cost disease in the service sector. This paper investigates supply and demand-side reasons for cost disease. First, we present an analysis of the supply side of the cost disease, when services and manufacturing play their role both in the intermediate and final demand. Second, we consider a CES utility function for the consumer, which is a function of two commodity services and manufacturing. The results indicate that there are two reasons for cost disease to occur from the supply side in an economy: first, when the growth rate of total factor productivity and technological progress in services is less than that in the manufacturing sector, and second, when the elasticity of substitution between labor and manufacturing input in the services production function is large and elasticity of substitution in manufacturing production function is small. From the demand side, the result shows that the cost disease occurred if the growth rate of the income elasticity of service is more than the manufacturing sector through time.     

Tourism development,environmental pollution and economic growth: A theoretical analysis

We develop a two-sector dynamic model of a less-developed economy with an imported traded good sector and with a non-traded tourism service sector serving international tourists. Revenue earned from tourism finances imports. The model takes care of the negative effect of tourism development on environmental pollution. Environmental quality and capital stock accumulates over time. We analyse comparative steady-state effects and show that tourism development raises the level of capital stock as well as national income but lowers the quality of environment in the new steady-state equilibrium leading to a relative expansion (contraction) of the capital (labour) intensive non-tourism (tourism) sector. Pollution abatement policy produces a completely opposite effect; and so tourism development policies are to be accompanied by pollution abatement policies in order to ensure green growth.