Human resource development and growth: improving access to and equity in the provision of education and health services in South Africa

This paper demonstrates the importance of improving access to and equity in the provision of essential services such as education and health for enhancing human development. A major constraint to accelerating and sustaining economic growth in South Africa is the shortage of skilled human resources. Human capital formation (through appropriate education, training and health) is vital for growth. However, for sustained growth to reduce poverty and unemployment, human capital of a ‘higher order’ than the system is currently producing, in both quantitative and qualitative terms, must be generated. The paper reviews progress in the education and health sectors and identifies the challenges. It stresses the need for policy makers to recognise the link between education and health outcomes and the provision of clean water, adequate sanitation, cheap and accessible transport and effective nutrition programmes. Addressing only the education and health services is unlikely to lead to optimal outcomes in these sectors.     

Incomplete property rights, exposure to markets and the provision of environmental services in China

This paper uses data from a 2003 rural survey to examine the determinants of household provision of environmental services under China's Sloping Land Conversion Program (SLCP), the largest payments for environmental services program in the developing world. The paper examines the determinants of plot-level survival rates of program-planted trees and grasses. It finds that household rights over retired land as well as autonomy in program decision-making (which we argue on the basis of supportive evidence are plausibly exogenous to post-retirement outcomes) have important and potentially countervailing impacts on the provision of environmental services targeted by the program. Households permitted to select what to plant obtain better program outcomes, but do not make the choices that the government would like them to, while those permitted to decide what land to retire perform worse. The analysis also finds that households more vested and experienced in agriculture and with less exposure to off-farm labor markets fare better in managing their planted trees. Significant learning-by-doing effects are also evident, suggesting that greater technical support to farmers could improve outcomes and lower program costs.     

Local economies and business networks re-visited. A case study of business and professional services in London

This article describes networks among business and professional services (BPS) firms in London, and deals with the relationship between the businesses interviewed and their locality. The article is based on empirical material derived from a large number of interviews with BPS firms in central London. It is noted that lateral links between firms are poor, relationships are better characterised as competitive rather than co-operative, and businesses tend to take little interest in the various support agencies. Although all the businesses interviewed placed great emphasis on the development of close, co-operative relationships with clients, markets are geographically diffuse. However, despite the weakness of localised, inter-firm links, businesses were able to identify a number of valuable and distinctive assets attached to their current location, which implies that the “local economy” continues to be important. The article finishes briefly with some implications for local economies and appropriate methods of business support.     

Employment creation through the provision of social development services: exploring the options

The high unemployment rate in South Africa is a central concern of policy makers. Because there are only a few substantial labour intensive industries, led by the private sector, it has become essential to explore other less mainstream avenues for employment creation. The role of public works programmes has historically focused on the infrastructure sector, but the Expanded Public Works Programme includes the social sector. The government has at its disposal a strong policy instrument – the provision of a range of services to meet basic needs – and so could, in the medium term, create a large number of jobs through social development services, the demand for which vastly exceeds their provision. Basic social development needs programmes target a large number of unskilled unemployed and promise the possibility of affordable employment creation. Such programmes include Early Childhood Development (ECD) and Home and Community Based Care (HCBC) as identified by the Social Sector Plan. This article explores these options.     

论农民合作经营组织的创新与发展

当前在中国的企业孵化器行业中存在着不少企业孵化器所承诺提供的服务与实际工作中真实提供的服务不相符合的现象。本文对这一现象的原因做了具体分析 ,并在此基础上提出一些解决服务虚实差异的对策建议。     

Problems of prognostic-analytical support of the interrelations between business and state structures

The methodical approaches to analysis and forecasting of economic dynamics are considered in the paper in terms of the arrangement of the interrelations between private business and the state. An approach is suggested, which connects the development parameters of the country’s economy, some types of economic activities, and corporations into one analytical complex during the development and discussion of key measures in the sphere of the management of the national economy.     

Determinants and effects of the use of COVID-19 business support programs in Japan

Using a survey of and financial data for Japanese small- and medium-enterprises (SMEs), this paper examines the determinants of firms’ use of the business support programs provided by the Japanese government during the COVID-19 pandemic and their effect. With respect to the determinants, we obtain the following three findings: First, firms were more likely to have obtained subsidized loans, grants, or subsidies the more their sales had fallen during the pandemic, suggesting that funds flowed to firms that were adversely affected by the pandemic. Second, the likelihood that firms obtained funds was higher if their credit scores were lower or if they were classified as “zombies” and/or “low-return borrowers” before the pandemic, suggesting that the government programs also helped firms that had been under-performing before the pandemic. Third, firms were more likely to receive funds if they had a stronger relationship with their main bank before, suggesting that bank relationships play an important role in firms’ access to government programs. Regarding the causal effects, we obtain the following three findings: First, except for the subsidies for employment adjustment, the support programs increased the cash holdings of user firms. Second, subsidized loans from private financial institutions lowered exit rates, while none of the programs had a significantly positive effect on employment relative to non-users (or in absolute terms). Third, the credit scores and profit-to-sales ratio of firms that used the support programs decreased and the likelihood of such firms being a zombie and/or a low-return borrower increased. Overall, our findings provide a cautionary tale in that the business support programs produced mixed results in that they may have prevented business failures but have also helped to prop up firms that are not viable in the long run.     

Evaluating the effect of soft business support upon small firm performance

The paper applies robust econometric techniques to assess theimpact of publicly-provided subsidised ‘soft’ businesssupport on the performance of small and medium-sized enterprises(SMEs). It considers the assistance for consultancy advice providedtowards marketing under the UK Enterprise Initiative, lookingat its effect on sales turnover, employment and survival, andmaking explicit allowance for selection effects. It is foundthat the policy has no impact on the survival of smaller SMEs,and that it is most effective in the mid-range SMEs, where itraises survival rates by about 4% over the longer run and growthrates in surviving firms by up to 10% per annum. Overall, thescheme has a substantial impact, but the paper draws attentionto the possible displacement effects.     

Economic growth target,distortion of public expenditure and business cycle in China

In this study, we provide empirical evidence on the incentive role of official promotion from the perspective of managing economic growth targets. Using a manual dataset of economic growth targets in 230 Chinese cities during 2003–2016, we find that economic growth targets of governments curb public service expenditure on education, science and technology and this distortion results in the stagnation of human capital and technological progress, constraining long-term economic growth. When the growth target size of cities exceeds that of higher-level governments or if governments overfulfill their growth target tasks, then public service expenditure will decrease. We interpret the empirical findings as evidence that promotion evaluation based on economic performance distorts the composition of public expenditure, hinders sustainable economic development, and even accelerates the start of an economic downturn. Our study adds significant evidence to the theoretical literature emphasizing that the official evaluation system and public service could affect business cycle.     

The impact of business regulatory reforms on economic growth

I investigate the link between business regulatory reforms and economic growth in 172 countries. I create a 5 year dataset on business regulatory reforms from the World Bank’s Doing Business reports. Then, I test the hypothesis that business regulatory reforms increase economic growth, using data on micro-economic reforms. These data do not suffer the endogeneity issues associated with other datasets on changes in economic institutions. The results provide a robust support for the claim that business regulatory reforms are good for economic growth. The paper establishes that, on average, each business regulatory reform is associated with a 0.15% increase in growth rate of GDP.     

新徽商生长环境存在的问题及对策

本文分析新徽商面临挑战和机遇,探讨营造良好的新徽商生长环境。文章认为新徽商生长环境建设包括:打造诚信市场环境、健全法制环境、改革经营管理制度、创设良好学习环境和沟通环境、激发内生性力量、营造创新的文化氛围等。     

A general equilibrium analysis of FDI growth in Chinese services sectors

This paper analyzes one of the features of the Chinese economic transition, namely, the impact of foreign direct investment (FDI) accruing to advanced services sectors. To that aim we use an innovative computable general equilibrium (CGE) model that includes, in a multi-regional setting, foreign multinationals operating in monopolistic competition. The model is based on data that split the world economy in 2016 into 11 regions (China - US - EU27 - Great Britain -other advanced economies - India - Japan - South East Asia - Latin America - Middle East - Sub Saharan Africa) and 21 sectors. We provide quantitative evidence on several characteristics of the 21 sectors in China, EU27 and the US, as well as other data on the role of China in the global stage, including its evolution since 2004. Several scenarios focusing on the increase of FDI inflows in services, because of the reduction of its FDI barriers, are simulated deriving short and long run results. We find that the impact of more foreign multinationals in services is positive for China but smaller than the one that had been obtained in other previous studies on FDI in manufactures. This is due to the still limited role of services in the Chinese economy and to a crowding out effect that domestic firms experience after the entry of foreign multinationals. On the whole the impact is, however, slightly positive for China, because manufactures benefit from the entry of foreign services multinationals. The rest of regions are unaffected or benefit very slightly, due to the fact that services production is less export oriented and more devoted to private consumption than in the case of manufactures. However, their manufacturing sectors are slightly harmed by the stronger Chinese competition. Many of them manage to more than offset this latter trend through higher exports or FDI in services directed to China.     

诚心扶贫 热心合作──经合基金十年开发扶贫路

深圳市经济合作发展基金已走过10个年头，10年来，经合基金坚决响应中央和省委，省政府的号召，坚持开发式扶盆的道路，诚心扶贫，热心合作，以低息优惠借款的方式帮助贫困地区建设“造血型”项目，共帮助全国10个省（市，自治区）共68个县（市）建设了346个“造血型”项目，项目总投资40多亿元，其中深圳基金投入8亿元，这砦项目全部投产后，每年将为上述地区新增产值32亿元，新增利税8．2亿元，有力地促进了贫困地区的经济发展。     

Agricultural growth multipliers for two communal areas of KwaZulu-Natal

Expenditure data were collected from 99 households in two rural areas of KwaZulu-Natal. District and wealth group expenditure analyses suggest a less-than-proportional increase in the demand for tradable farm commodities, and a more-than-proportional increase in the demand for non-tradable farm commodities following a 1 per cent increase in household expenditure. Expenditure on non-farm tradables (imported consumer durables) showed the greatest potential for demand growth, with expenditure elasticities ranging from 1,75 to 2,59. An increase of R1,00 in household income is predicted to add an additional 28 cents (multiplier of 1,28) to the local economy. The study estimates relatively weak growth linkages. However, even relatively weak growth linkages could lead to much needed new income and employment opportunities in the local farm and non-farm sectors if the constraints limiting agriculture, and hence broad-based growth in rural incomes, are alleviated. Agriculture-led growth in South Africa requires public investment in both physical and institutional infrastructure to reduce transaction costs and risks in all markets, thus encouraging greater participation by local entrepreneurs and private sector investors. In addition, the roles, functions and services offered by extension agents should be extended to promote collective marketing, facilitate land rental contracts and provide training, technical and business support for farm and non-farm entrepreneurs.