Critical Connections : Promoting Economic Growth and Resilience in Europe and Central Asia.
- 1st ed.
- 1 online resource (345 pages)
- Europe and Central Asia Studies .
- Europe and Central Asia Studies .
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.