Recent tests for the convergence hypothesis derive from regressing average growth rates on initial levels: a negative initial coefficient is interpreted as convergence. These tests turn out to be plagued by Galton's classical fallacy of regression towards the mean. Using a dynamic version of Galton's fallacy, I establish that coefficients of arbitrary signs in such regressions are consistent with an unchanging cross-section distribution of incomes. Alternative, more direct empirics used here show a tendency for divergence, rather than convergence, of cross-country incomes.

Galton's Fallacy and Tests of the Convergence Hypothesis (Now published in Scandinavian Journal of Economics 95 (4), 1993, pp.427-443.)

The agriculture and manufacturing sectors are the backbones of the Indonesian economy; for this reason, research on the effects of these sectors on carbon emissions is an important subject. This work adds urbanization to enrich research on the Environmental Kuznets Curve (EKC) in Indonesia. The results of this study indicate that the EKC hypothesis was confirmed in Indonesia with a turning point of 2057.89 USD/capita. The research results show that all variables affect the escalation of greenhouse gas emissions in Indonesia. Furthermore, there is a bidirectional causality relationship between emissions with economic growth, emissions with agricultural sector, emissions with manufacturing sector, economic growth with agricultural sector, and economic growth with manufacturing. The unidirectional causality is found in emissions by urbanization and economic growth by urbanization. To reduce the impact of environmental damage caused by the activities of agriculture, manufacturing, and urbanization sectors, it is recommended that the government conduct water-efficient rice cultivation and increase the use of renewable energy.

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How agriculture, manufacture, and urbanization induced carbon emission? The case of Indonesia.

This paper seeks to distinguish between dynamic and static entrepreneurship. We define the construct of dynamic entrepreneurship in terms of Schumpeterian innovativeness and then develop a hypothesis suggesting that human capital is conducive to such action. In contrast, a paucity of human capital is more conducive to static entrepreneurship (defined in terms of organizational or ownership status). Based on a rich data set of entrepreneurs receiving research funding through the U.S. Small Business Innovation Research (SBIR) program, our empirical evidence suggests that academic-based human capital is positively correlated with dynamic behavior, whereas as business-based human capital and prior business experience is not.

Dynamic Entrepreneurship and Technology-Based Innovation

The prominence of renewable and non-renewable electricity generation on the environmental Kuznets curve: A case study of Ethiopia

Economic growth, urbanization, and financial market development (FMD) may increase energy demand in any economy. Non-renewable sources of energy consumption, i.e., oil consumption and natural gas consumption (NGC), could have environmental consequences. We examine the effects of economic growth, urbanization, and FMD on the oil consumption and NGC in Middle East countries using the period 1975–2019. In the panel results, we found a positive effect of income and a negative effect of income-squared on oil and natural gas consumption. Hence, we corroborate the existence of the environmental Kuznets curve (EKC) hypothesis in oil and natural gas consumption models of the Middle East region. Urbanization has a positive effect on oil and natural gas consumption. FMD has a positive effect on oil consumption and has a negative effect on NGC. From the long-run, country-specific results, we validate the existence of the EKC hypothesis in the oil consumption models of Iran and Iraq. The EKC is also found in the natural gas consumption models of Iran, Kuwait, and the UAE. From the short-run results, the EKC hypothesis is validated in the oil consumption models of Iran, Iraq, and Israel. The EKC is also corroborated in the NGC models of Iran, Kuwait, and the UAE. In the long run, urbanization has a positive effect on oil consumption in Iraq, Kuwait, Saudi Arabia, and Qatar. Further, urbanization has a positive effect on the NGC in Iraq, Israel, and Saudi Arabia. Conversely, urbanization has a negative effect on oil consumption in Israel. In the short run, urbanization has a positive effect on oil consumption in Iraq, Israel, Kuwait, and Qatar. Moreover, urbanization has a positive effect on the NGC in Iraq. On the other hand, urbanization has a negative effect on oil consumption in Saudi Arabia and Iran. In the long run, FMD has a positive effect on oil consumption in Saudi Arabia and Israel. In the short run, FMD has a positive effect on oil consumption in Israel, Kuwait, and Saudi Arabia. In contrast, FMD has a negative effect on oil consumption in the UAE. Moreover, a positive effect of FMD on NGC is found in the UAE. However, FMD has a negative effect on the NGC in Israel.

https://www.mdpi.com/1996-1073/14/11/3178/pdf

Probing the Energy-Environmental Kuznets Curve Hypothesis in Oil and Natural Gas Consumption Models Considering Urbanization and Financial Development in Middle East Countries

Enterprise innovation has gained the interest of development policymakers and scholars as the bases for the industrial development. This study comprehensively analyzes the drivers of enterprise innovation in developing countries. The study uses survey data to analyze the determinants of enterprise innovation in Ethiopia using a multivariate probit (MVP) model. For this study, enterprises were grouped into four categories: all-sized, large-sized, medium-sized, and micro- and small-sized enterprises. It appears that engagement in R & D, on-the-job training, and website ownership significantly determine enterprise innovation. This study, unlike previous studies, comprehensively analyzes drivers of innovation by considering enterprises in different sizes and all at the same time. This helps identify factors most relevant for enterprise innovation at all stage which help policymakers get focused on strategy development. Based on the findings, further emphasis on engagement in R & D would help enterprises to become innovative for all categories of enterprises. Furthermore, strengthening the available formal training and diversifying type of the training that is related to skills, knowledge, and techniques that help achieve the long-term objective of the enterprises are worth considering. Enterprises also need to subscribe to different sites that help learn more and access information.

https://link.springer.com/content/pdf/10.1186/s13731-018-0085-4.pdf

Enterprise innovation in developing countries: An evidence from Ethiopia

Reducing energy intensity is an important element for Ethiopia to achieve its ambitious climate-resilient growth goals. Understanding the factors that determine energy intensity plays a crucial role for academics and policymakers to formulate sound energy conservation and energy efficiency policies. This article investigates drivers of energy intensity in Ethiopia over the period of 1974–2014. The ARDL bounds test approach to cointegration and FMOLS-based Hansen parameter instability test methods were applied to examine the long-run relationship among the variables. The result reveals that there is an inverted U-shape or Environmental Kuznets curve-type relationship between economic growth and energy intensity, implying that economic growth at early (industrialization) stage of development spurs energy intensity while delinking occurs at the later stages of development. Urbanization increases energy intensity, while impact of import is negative. The Toda–Yamamoto Granger causality test result shows a bidirectional causal relationship between import and energy intensity. Moreover, energy intensity Granger causes aid and industrialization.

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Shemelis Kebede Hundie

Papers

Enterprise innovation in developing countries: An evidence from Ethiopia

Does energy-environmental Kuznets curve hold for Ethiopia? The relationship between energy intensity and economic growth