Critical Connections : Promoting Economic Growth and Resilience in Europe and Central Asia.

Cover -- Half Title -- Title -- Copyright -- Contents -- About the Authors -- Foreword -- Acknowledgments -- Abbreviations -- Regional Classifications Used in This Report -- Overview -- Main Findings of Critical Connections -- Introduction -- Multidimensional Connectivity Is a Key to Europe and Central Asia's Development and Growth -- Europe and Central Asia Connectivity Is a Critical Source of Knowledge Transfers -- Foreign-Owned and -Managed Firms Tend to Perform Better and Contribute to Local Firms' Productivity -- Economic Migration Has Been Beneficial to Europe and Central Asia -- Strong Infrastructure Transport Links Provide Important Support for Connectivity -- The Growth of Supply Chains Reflects Greater Connectivity and Has Facilitated Increased International Knowledge Flows -- European and Central Asian Countries Have Moved toward More Open Policies -- Considerable Scope Remains for Improving Policies to Increase Connectivity in Europe and Central Asia -- Annex OA. Selected Indicators -- Notes -- References -- 1 Multidimensional Connectivity: Pathways to Growth and Shared Prosperity in Europe and Central Asia -- Main Messages -- Introduction -- Trends in Economic Connectivity -- Connectivity and Income Growth -- Trade-Offs and Resilience to Shocks -- Conclusion -- Annex 1A. Data -- Annex 1B. Network Graph Methodology -- Annex 1C. Multiplex PageRank Centrality -- Annex 1D. Centrality Indicator -- Notes -- References -- Spotlight 1: Trends in Foreign Direct Investment in Europe and Central Asia -- Notes -- Reference -- 2 Knowledge Transfers from International Openness in Trade and Investment: The European Case -- Main Messages -- Knowledge Creation in Europe -- Knowledge and Learning from Trade, Investment, and GVCs: Insights from the Economic Literature -- Knowledge Diffusion in Europe: The Two-Stage Process of Technology Transfer.

Conclusion -- Notes -- References -- Spotlight 2: Attracting Foreign Direct Investment: The Role of Deep Preferential Trade Agreements -- Deep PTAs in ECA: A Snapshot -- Linking Deep Agreements with FDI: Empirical Strategy -- Linking Deep Agreements with FDI: Results -- Annex S2A. Definition of Country Groups and Methodology -- Notes -- References -- 3 Connectivity and Firms -- Main Messages -- Firm Connectivity in ECA -- Annex 3A. Coverage of Orbis Data -- Annex 3B. Additional Tables -- Notes -- References -- Spotlight 3: Reaping Digital Dividends through Complementary Investments -- Notes -- References -- 4 Migration and Connectivity -- Main Messages -- Migration Patterns in Europe and Central Asia -- Migration Patterns in ECA Are Likely to Change -- Policies Should Aim to Improve the Integration of Migrants -- Emigration Generates Net Benefits in ECA Origin Countries -- Conclusion -- Annex 4A. Gravity Model -- Annex 4B. Additional Tables and Figures -- Notes -- References -- 5 Infrastructure Linkages: Cost, Time, and Networks -- Main Messages -- Connecting Cities and Neighbors: A Vicinity View of Transport Services in ECA -- From First Neighbors to Transport Networks: Connectivity as a Policy Objective -- Connectivity as a Collective Challenge: Centrality and Criticality -- Conclusion -- Annex 5A. Methodology and Data -- Notes -- References -- 6 Supply Chains in Europe and Central Asia: Connectivity through Cross-Border Production Fragmentation -- Main Messages -- Factory Europe -- Are There Only Benefits from Increased Interdependence of Countries? -- Different Policies for GVC Upgrading -- Conclusion -- Annex 6A. Elasticities of Value Added in Exports, Gross Exports, and Fragmentation Intensity -- Annex 6B. Interdependence of Countries -- Annex 6C. Regression of Backward- and Forward-Participation Indexes over a Set of Policy Variables -- Notes.

References -- 7 ECA Policies for Improving Connectivity -- Main Messages -- Introduction -- MFN Tariffs -- Foreign Direct Investment Policies -- Preferential Trade Agreements -- Bilateral Investment Agreements -- Product Market Regulation -- EBRD Transition Indicators -- Policy Comovements-Are Policies Consistent? -- Conclusion -- Notes -- References -- Boxes -- O.1 Global Value Chain Spillovers in Romania -- O.2 Marius Stefan of Autonom Romania: Knowledge transfers through travel and studies abroad -- 1.1 A Better Way of Measuring Network Connectivity -- 1.2 Example of Using Connectivity Measures for Investment Decisions -- S2A.1 Methodology for the Estimation of the Impact of Deep Integration on FDI Flows -- 4.1 The Globalization of Education -- 4.2 Nicolas Catena Zapata and the Malbec: Technology Transfer through Migration -- 4.3 Emigration Can Improve Political Institutions in the Home Country -- 5.1 Measuring Market Access -- 5.2 Linkages and Integration -- 5.3 Centrality and Criticality -- 6.1 Global Value Chain Spillovers in Romania -- Figures -- O.1 Exports of manufactured goods -- O.2 Framework and logical flow of chapters for this report -- O.3 Multidimensional connectivity combines many channels of connectivity -- O.4 Europe and Central Asia's connectivity has grown, but there are wide variations across subregions -- O.5 Connectivity's effects on overall and bottom-40 growth -- O.6 A shock originating in Germany has the largest impact on countries that gain their global connectivity through Germany -- O.7 Europe lags behind the frontier in services -- O.8 How technology flows from European frontier firms (global value chain lead firms) to the remaining European firms -- O.9 Productivity growth was lower in Central and Eastern Europe during the crisis -- O.10 Foreign-owned and foreign-managed firms in ECA, 2013.

O.11 Large firms are more likely to be foreign owned in ECA -- O.12 There is no clear relationship between a firm's age and the likelihood of its being foreign owned -- O.13 Foreign-owned and -managed firms perform better than local firms -- O.14 Foreign affiliates tend to have better management practices than local firms -- O.15 The positive spillovers of well-managed foreign firms seem weaker for small and young firms -- O.16 Foreign firms' employment decisions are less procyclical than those of their domestic peers -- O.17 ECA migration is driven by geography, language, historical ties, and past migration -- O.18 Transport connectivity (cost and time) between and within ECA countries -- O.19 Cost-driven criticality in container network for Europe and Central Asia -- O.20 Participation in global value chains is correlated with higher labor productivity -- O.21 Among the transition countries, greater production fragmentation is associated with a more rapid increase in the flows of value added in exports -- O.22 ECA ranks among the top regions in regard to the number of trade agreements and investment treaties -- 1.1 Trends in intraregional trade in ECA -- 1.2 Exports of manufactured goods -- 1.3 Foreign direct investment -- 1.4 Migration -- 1.5 Airline connectivity -- 1.6 Internet and communication technologies -- 1.7 Portfolio financial flows -- B1.1.1 Examples of network connectivity and the modified PageRank -- 1.8 Multidimensional connectivity network -- 1.9 Multidimensional network connectivity -- 1.10 Europe and Central Asia's connectivity has grown, but there are wide variations across subregions -- B1.2.1 Kazakhstan's connectivity ranking change.

1.11 Simulated impact on individual countries' connectivity measure (modified PageRank) of a 10 percent decline in trade, foreign direct investment, and migration in Germany, the Russian Federation, and the United States -- S1.1 The relevance of ECA as both a destination and an origin of FDI has fallen since 2008 -- S1.2 World FDI inflows into ECA are relatively more diversified by ECA destination than ECA FDI outflows to the world -- S1.3 ECA's share of world FDI inflows is greater than its share of world GDP -- S1.4 FDI attraction patterns increase with development levels but vary by country -- S1.5 Services and manufacturing dominate FDI inflow patterns across ECA -- S1.6 Germany and the United States dominate EU investment -- France and China lead elsewhere -- 2.1 Differences between frontier and laggard firms vary across sectors -- 2.2 Europe lags behind the frontier in services -- 2.3 Technology transfer tends to follow a typical sequence -- 2.4 How technology flows from European frontier firms (global value chain lead firms) to the remaining European firms -- 2.5 Firms' international connectivity and technology transfer follow three stages -- 2.6 GVC participation is particularly high in Central and Eastern Europe -- 2.7 Import intensity varies over time for Central and Eastern European EU countries -- 2.8 Productivity growth was lower in Central and Eastern Europe during the crisis -- S2.1 The European Union shows the greatest depth of agreements among ECA country groups -- S2.2 Sectoral and customs-related provisions are the most frequent WTO provisions in ECA PTAs -- S2.3 Among WTO+ provisions, Competition Policy, Movement of Capital, and Intellectual Property Rights are the most frequent WTO+ provisions included in ECA PTAs -- S2.4 The impact of deep agreements on FDI.

S2.5 Deep agreements are more helpful in facilitating FDI in culturally distant destinations for manufacturing, while the opposite is true for services.

Description based on publisher supplied metadata and other sources.

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