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Global Dynamics, Capabilities and the Crisis

Author

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  • Fagerberg, Jan

    () (IKE, University of Aalborg; TIK, University of Oslo; CIRCLE, Lund University)

  • Srholec, Martin

    () (CIRCLE, Lund University and CERGE-EI, Charles University and Economics Institute of the Academy of Sciences of the Czech Republic)

Abstract

The financial crisis started in 2007-8, initially in the US, but its consequences have been felt throughout the global economy. However, its effects were far from uniform. While parts of Asia and Africa continued to grow fast, Europe experienced a large set back. This paper emphasizes three important factors: differences across countries in technological development; in capacities to exploit the opportunities offered by technology; and in the ability to compete in international market. A formal model, based on this approach, is developed and applied to data for 100 countries in the period 1997-2012. Empirical indicators reflecting the various factors are developed, a dataset constructed and econometric estimates of the model performed. The results are used to explore the factors behind the slowdown in economic growth, with a particular emphasis on the continuing stagnation in Europe, and discuss the implications for the future research in this area.

Suggested Citation

  • Fagerberg, Jan & Srholec, Martin, 2015. "Global Dynamics, Capabilities and the Crisis," Papers in Innovation Studies 2015/33, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2015_033
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    References listed on IDEAS

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    1. Fagerberg, Jan & Srholec, Martin & Knell, Mark, 2007. "The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind," World Development, Elsevier, vol. 35(10), pages 1595-1620, October.
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    Cited by:

    1. Asongu, Simplice, 2019. "Natural Resource Exports, Foreign Aid and Terrorism," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 9(1), pages 74-94.
    2. Simplice A. Asongu, 2019. "The persistence of global terrorism," Research Africa Network Working Papers 19/053, Research Africa Network (RAN).
    3. Radosevic, Slavo & Meissner, Dirk & Lacasa, Iciar Dominguez & Günther, Jutta, 2019. "Exploring technology upgrading of emerging economies: From ‘shifting wealth I’ to ‘shifting wealth II’?," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 254-257.
    4. Jutta Günther & Maria Kristalova & Udo Ludwig, 2019. "Structural stability of the research & development sector in European economies despite the economic crisis," Journal of Evolutionary Economics, Springer, vol. 29(5), pages 1415-1432, November.
    5. Maciej Grodzicki, 2018. "Prices of Value Added and Competitiveness in Global Value Chains," SPRU Working Paper Series 2018-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    6. Kivilcim Dogerlioglu Demir & Ozge Turut & Ezgi Akpinar Uysal, 2018. "Honesty Only Gets You So Far! The Effect of Two-sided Content on Re-purchase Intentions," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 32(1), pages 37-53.
    7. Areti Gkypali & Kostas Kounetas & Kostas Tsekouras, 2019. "European countries’ competitiveness and productive performance evolution: unraveling the complexity in a heterogeneity context," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 665-695, April.
    8. Jan Fagerberg & Martin Srholec, 2017. "Capabilities, economic development, sustainability," Cambridge Journal of Economics, Oxford University Press, vol. 41(3), pages 905-926.
    9. Michal Brzozowski, 2019. "Access to Credit and Growth of Firms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(3), pages 253-274, June.

    More about this item

    Keywords

    Technological capabilities; social capabilities; competitiveness; economic growth; crisis;

    JEL classification:

    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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