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Terceira-G14-O1 Institutions, Political and Decisional Processes

Tracks
Ordinary Session
Thursday, August 29, 2024
9:00 - 10:30
S17

Details

Chair: Edilberto Almeida


Speaker

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Prof. Edilberto Almeida
Assistant Professor
Federal University of Pernambuco

The Spatial Scope of Human Capital Externalities and Firms' Location in Brazil

Author(s) - Presenters are indicated with (p)

Edilberto Almeida (p), Raul Silveira Neto, Roberta Rocha, Carlos Azzoni

Discussant for this paper

Anabela Santos

Abstract

This paper investigates the effects of human capital concentration on firms' locational choice in Brazilian cities considering that such effects may vary with distance. We empirically explore the effects of agglomeration economies as a conditioning factor of the locational choice of new establishments, assuming that these effects may differ within the same city and be attenuated with distance. Our focus is on human capital spillovers, which are expected to act on a shorter geographical scale (e.g., at the neighborhood level) when compared to other Marshallian externalities that may act at the metropolitan region level (e.g., labor pooling) or even in larger regions (e.g., input sharing). Besides contributing to the scarce evidence on developing countries, some Brazilian particularities make the study of the country’s spatial attenuation of agglomeration economies appealing. First, unlike other big developing countries such as China and Russia, Brazil has no restrictions on the mobility of workers. Free workers’ mobility is essential for studying the human capital spillovers generated by the concentration of highly qualified workers. Related to this freedom to move, the country is highly urbanized (around 85%) in comparison to other developing countries (Chauvin et al., 2017). Second, as recently highlighted by Almeida et al. (2022), the manufacturing activity is more concentrated in Brazil than in China (Brakman et al., 2017), Russia (Aleksandrova et al., 2019), and developed countries (Duranton and Overman, 2005; Koh and Riedel 2014; Behrens and Bougna 2015). Moreover, in Brazil, high-tech industries are more concentrated at short distances than low-tech industries, and spatial concentration is correlated with the share of college-educated workers in the former sector (Almeida et al. 2022). Taking advantage of unique micro-geographic data for all Brazilian manufacturing activities, the main results show that the positive effects of human capital spillovers are stronger up to 1 km from the location chosen by the firm and disappear completely beyond 5 km. Thus, our set of evidence is consistent with the idea that locations with more skilled workers are more attractive for new establishments due to human capital spillovers deriving from face-to-face worker interactions. The set of evidence also indicates that agglomeration effect is more localized for high-tech industries (occurring only up to 1 km) than for less technology-intensive industries (where it reaches up to 5 km).
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Prof. Dimitrios Karkanis
Assistant Professor
University of Macedonia

Navigating the Crossroads: Analysing the Interplay between International Tourism Activities and Agricultural Production in Greece

Author(s) - Presenters are indicated with (p)

Georgios Kleftodimos, Dimitrios Karkanis (p)

Discussant for this paper

Edilberto Almeida

Abstract

This research delves into the complex dynamics between touristic activity and agriculture in Greece, focusing on the competition for arable land. The escalating trend of farmers abandoning their land in favour of selling it for hotel construction, driven by the allure of the higher profitability offered by the tourism sector, has raised critical concerns about the sustainability of agricultural practices in Greece. Moreover, the attractiveness of higher earnings in the tourism industry exacerbates the challenge of retaining skilled agricultural workers. This study employs a Computable General Equilibrium (CGE) model to dissect the intricate dynamics governing the competition between touristic activity and agriculture for arable land in Greece. At the national scale, the CGE model enables a holistic examination of the macroeconomic impact on Greece, unravelling shifts in GDP, employment dynamics, and land use patterns resulting from this competition. As a step forward, the study aspires to employ the CGE framework to conduct regional analyses, investigating variations in the intensity of competition and its localized implications.
By leveraging the CGE model, this research seeks to provide a comprehensive understanding of the multifaceted factors influencing the interaction between touristic activity and agriculture, at the same time “navigating” between over-tourism and food security issues. The findings aim to offer evidence-based insights crucial for informing sustainable land-use policies in Greece. Our approach recognizes the importance of integrating economic, social, and environmental considerations, facilitating the development of strategies that balance the economic benefits of tourism with the preservation of essential agricultural resources. This research contributes to advancing the discourse on land-use conflicts within the tourism-agriculture nexus, showcasing the utility of the CGE model in capturing the intricacies of such complex interactions. The outcomes hold practical implications for policymakers and stakeholders, guiding them towards informed decision-making and strategic interventions tailored to Greece's unique economic and natural landscape.
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Dr. Kamila Borsekova
Associate Professor
Matej Bel University

Democracy in Crisis: Unveiling Slovak Perspectives and the Transformative Role of Voting Advice Applications

Author(s) - Presenters are indicated with (p)

Kamila Borsekova (p), Jozef Mintal

Discussant for this paper

Dimitrios Karkanis

Abstract

In an era marked by diminishing trust in institutions and democratic processes, particularly in post-socialist countries like Slovakia, the necessity for tools to foster informed citizen participation is more crucial than ever. This paper examines the profound impact of the Voting Advice Application (VAA) on democratic engagement in Slovakia, using the 2023 Slovak parliamentary snap elections as a case study. The context is framed by recent findings from a CEDMO survey, which indicates a deep-seated distrust and dissatisfaction among Slovaks with their democratic system. Only 18% of the population expressed satisfaction with democracy's functioning, while a significant 55% displayed dissatisfaction, pointing towards a pervasive skepticism towards liberal democracy and political disengagement.
The paper focuses on 'Volebný Kompas', a VAA implemented during these elections, designed to guide citizens in making well-informed electoral decisions. Comprising 39 statements spanning five dimensions of Slovak politics, Volebný Kompas aimed to enhance political knowledge, efficacy, interest, and voter turnout. This study offers a comprehensive analysis of VAA's influence in these areas, highlighting its potential to redefine political landscapes in post-socialist countries.
A significant aspect of this research is its addressal of the gaps in VAA studies, particularly the lack of detailed data on electorates and political party dynamics. The Volebný Kompas project counters this through a dual dataset framework, amalgamating over 134,000 voter responses with 429 policy positions from 11 political parties, providing a nuanced view of political, economic, and societal issues. The project's multidisciplinary nature, involving collaboration among experts in political science, economics, sociology, and international relations, ensured the relevance and diversity of the VAA's content.
Furthermore, the study emphasizes the project's structured approach to data sharing, adhering to FAIR principles and detailed documentation. This method promotes organized, accessible, and replicable data dissemination, ensuring data reliability and usability. The Volebný Kompas project thus provides critical insights into post-socialist countries' dynamics and suggests improvements in VAA data sharing.
In conclusion, the paper highlights the role of VAA and its research in fostering democratic processes and public interest in policymaking. By simplifying political landscapes and matching voter preferences with party positions, VAAs promote voter participation and a more informed electorate. The data generated by VAA usage are invaluable for researchers to analyze voter behavior and policy preferences, thereby contributing to more responsive and representative policymaking. This bridge between citizens and political institutions is pivotal for invigorating democratic societies, making VAAs a crucial tool in contemporary electoral politics.

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Dr. Anabela Santos
Senior Researcher
European Commission, Joint Research Centre

Cohesion policy and territorial performance: measuring and explaining effectiveness in achieving planned targets

Author(s) - Presenters are indicated with (p)

Anabela Santos (p), Francesco Molica, Andrea Conte

Discussant for this paper

Kamila Borsekova

Abstract

Effectiveness refers to the extent to which the objectives expressed in the programmes or policy instruments have been achieved. It may be linked to the notion of impact or to monitoring the correct implementation of programmes in terms of planned outputs and use of resources. Even if the former has been extensively analysed in the scientific literature (e.g. Mohl, 2016; Fiaschi et al., 2018; Casula, 2021), the latter has been less explored in research. Using data from the European Commission's Cohesion Open Data Platform, the present paper aims to fill this gap by assessing the ability of European Union (EU) territories to achieve the various targets set by different operational programmes funded by the European Regional Development Fund during the 2014-2020 programming period. For each indicator, we estimate the annual achievement rate, which is the ratio between the achieved and the target values. To explain the determinants of programme performance, we use a fractional regression model due to the nature of the dependent variable - values between zero and one. Performance is explained by programme characteristics (e.g. planned amount, governance model, spending rate) and programme indicator characteristics (e.g. number of indicators and change in target value). The results show that the effectiveness of EU regions in achieving their planned targets is negatively correlated with the budget allocated and the existence of a multifund programme. Programmes managed at regional level perform better than national programmes. The concentration of funds in a few thematic areas and a higher rate of spending are associated with a higher rate of achievement. Programmes with a higher number of indicators and a high concentration of funds in less developed regions also show lower performance. These findings may be particularly useful for policy makers, as they can help to design programmes that are more effective.
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