T.H. Marshalls Theory of Citizenship

T.H. Marshalls Theory of Citizenship Critically discuss T. H. Marshall’s theory of citizenship as outlined in Citizenship and Social Class (1949/1992). At the centre of the development of citizenship in modern Britain is the pioneering work of T.H. Marshall (Faulks, 1998). T.H. Marshall proposed an extremely influential theory in regards to citizenship (Dwyer, 2010). Through his analysis of citizenship, Marshall has to be acknowledged as identifying an original theoretical stand point from which to understand a social phenomenon (Held and Thompson, 1989). Few British Social Scientists other than Marshall have directly considered the concept of citizenship and made it their central focus in their work (Lister, 2010). Therefore, it has been Marshall’s contribution that has been considered a starting point for further research into the subject of citizenship rights (Held and Thompson, 1989). Furthermore, as Roche (1992) has identified, Marshall’s writings form a central text which he has labelled the ‘Dominant paradigm’ within citizenship theory in Britain (Faulks, 1998). When critiquing the work of Marshall it is important to recognise how defining citizenship is integral to understanding the concepts expressed in his work and others to date. Marshall defined citizenship as ‘full membership of a community’ (Marshall, 1963: 72). Marshall then clarified that full citizenship status involved membership of a national community (Dwyer, 2010). Marshall’s implication was that each individual considered a citizen could, therefore, expect certain rights of entitlement from the state and in return would be expected to uphold certain standards or duties within the community to be considered a ‘citizen’. As the definition of citizenship has developed over the years so has the concepts of which it encompasses. As such, when critiquing Marshall’s work it is important to acknowledge the era during which the theories considered were proposed as noted by Dwyer (2010). The circumstances during the time of this essay were substan tially different to those of modern society within Britain. Marshall’s work was considered following the Second World War and the establishment of the post war welfare settlement (Dwyer, 2010). Consequently, this has led to critical discussion of Marshall’s theories regarding citizenship and its value by a number of academics to date (Alcock, 1989; Delanty, 2000; Dwyer, 2010 and Lister, 2010). Marshall considers each aspect by analysing each approach historically to the development for rights. Marshall outlined three interlinked elements of rights that took the form of civil, political and social rights (Lister, 2010). The concept of civil rights in Britain came to prominence during the eighteenth century and included; ‘the rights necessary for individual freedom, liberty of the person, freedom of speech, thought and faith, the right to own property and to conclude valid contractors, and the right to justice’ (Marshall, 1963: 74). Discussion of political rights followed during the nineteenth century, which included, the right to vote and stand for political office (Marshall, 1949/1992). The final element of rights was concluded with the possession of social rights to fully categorise somebody as a citizen. The concept of social rights developed primarily in the post Second World War period. Marshall’s definition of social rights has undergone much scrutiny due to his ambiguous theoretical perspective. Powell (2002) and Dwyer (2010) in particular comment on this lack of clarity, â€Å"He is clear that there is no overarching universal principle that emphatically defines what citizenship grants or requires† (Dwyer, 2010:39). As Marshall (1949/92) highlights on several occasions, civil citizenship rights are entirely of the conditions of a free market economy, including a free labour market. Conversely, Marshall appears to be rather aware of the contradictions within the various strands of citizenship, although the aspects seem to interlink it would seem they do not always agree. Potential contradictions between social and civil citizenship, Marshall openly discussed in terms of the conflict between citizenship and class (Bagguley, 2013). As Turner (1993) indicates, Marshall’s analysis of capitalism versus democracy contained a number of ambiguities, but as a whole, Marshall strongly argued that the welfare state would limit the negative impact of class differences on individual life-chances. Ultimately this would enhance the individual’s commitment to the system. Additionally, the era of which social rights were development may affect how some individuals may interpret them (Lister, 2010). The development of civil freedoms was a crucial step in the undoing of the hierarchical primitive limitations of status or duty to an individual’s social superiors (Lister, 2010). Civil freedoms were also a necessary foundation for the later development of the second type of rights noted by Marshall as political rights. Marshall acknowledges four major aims to his essay. Firstly, he examines whether citizenship is compatible with the class structure in a capitalist society such as Britain. Although he states this is possible, individuals such as Faulks, (1998) feel he is ‘cautious’ in stating this. The tension between citizenship and capitalism arises out of the fact that citizenship highlights equality, while capitalism presumes inequality (Dwyer, 2010). For Marshall, the compatibility of citizenship with capitalism was due to social rights by ‘civilising’ the impact of the market (Faulks, 1998). Marshall identifies the increase of incomes, the growth of savings and the success of mass production as enabling society to redistribute wealth and social power (Lister, 2010). Developments such as the progressive tax system and the use of legal aid are shown to reduce the influence of class, effectively, creating social justice via social rights (Held and Thompson, 1989). As his second consideration, rightfully, Marshall argues that citizenship in Britain cannot be fully achieved without altering market operations of the time (Faulks, 1998). Thirdly, Marshall identifies the shift to rights away from responsibilities and the effect of this, and he considered this to be the most important aspect of citizenship in modern Britain (Somers, 2004). Finally, Marshall attempts to establish the limits of social equality and determine just how far the struggle for social justice could realistically go (Tilly, 1996). Marshall contended an image of an ‘ideal citizenship’ and thereby, a goal towards which aspirations can be directed. T.H. Marshall’s approach to social citizenship has been regarded as a democratic socialist view. As Delanty (2002) recognised, social democracy and Marshall’s egalitarian liberalism had several aspects in common. Other influential thinkers such as Richard Titmuss shared a similar passion within the social democratic tradition (Dwyer, 2010). Dwyer (2010) and Alcock and Oakley (2001) have identified the approaches of Titmuss and Marshall, who share several resemblances. Each writer showed a considerable importance to universal unrestricted welfare rights. Furthermore, both Marshall and Titmuss, outlined the identification and consideration of the ‘class struggle’ which is notably identified as an important aspect of the development of social citizenship. Marshall and Titmuss also suggest that the development of British industrial capitalism is of greater significance for the emergence of social rights (Dwyer, 2010). Additionally, the two writers shared the sa me optimism about the motivations that underpin human nature. Titmuss and Marshall both assumed that citizens would mostly behave in a responsible manner and look to enhance their own lives, and the lives of fellow members of their national community, rather than abuse any benefits that social rights may bring for individual gain (Alcock and Oakley, 2001) As Dwyer (2010), rightfully states, personal interpretation is ultimately what pins down the decision about whether or not the work of T.H. Marshall can be seen as social democratic. Key themes that are central to Social Democracy have been identified as: the promotion of equality, freedom, social integration and universal rights to welfare (Held and Thompson, 1989; Turner, 1993). Arguably Marshall’s (1949/92) endorsement of these beliefs identifies him as a social democrat of sorts, even if perhaps he moved away from this position in later life. Delanty (2000) refers to Marshall’s views as a socially democratic left wing liberal approach to citizenship. Marshall’s Citizenship theory, although seen as pioneering, has been the forefront of many critiques (Dwyer, 2010). As Tilly (1996) states, Marxist critics of Marshall’s work on citizenship are widely known, describing the analysis Marshall has given as superficial as it does not highlight, a citizen’s right to control economic production, which has been argued as a necessity for continual shared affluence (Somers, 1994). Furthermore, feminist perspectives as stated by Lister (2008) states Marshall’s theory as being extremely confined in being solely on men, while not acknowledging, the social rights of women. (Held and Thompson 1989). Therefore, Marshall’s Theory reflects that of only the working class white male perspective (Lister, 2003). His statement that in England all people were free and had civil rights can be seen as fabricated, as at the time only men had ‘legal freedom’ or the capability to exercise political or civil rights (Lister, 2008). Additionally, Marshall does not discuss other aspects of society including second class citizens and gender and racial hierarches (Tilly, 1996). Although Marshall did not discuss the issues associated with second class citizenry, he acknowledged that citizenship itself plays a part in social inequality (Marshall, 1942/92). As once noted earlier it is important to understand the circumstances during the time of this essay were substantially different to those of modern society within Britain (Dwyer, 2010) Furthermore, Neo-liberal perspectives and free market ideology asserts that the nonparticipation of the state from economic protection is the foundation of a society with strength and goodness (Held and Thompson, 1989). Consequently they are entirely opposed to the social rights proposed by Marshall (Turner, 1993). Neo-liberals instead suggest that welfare programs such as some of the social responsibilities discussed by Marshall to help the poor in effectively util ising their civil and political rights, have promoted passivity among the poor without improving life chances and have created a culture of welfare dependency (Held and Thompson, 1989; Roche, 1992). Citizenship, or the equality of rights it generates, becomes an integrative process counteracting the tendencies towards social division and conflict generated by the economic system. For Marshall, inequality was not an issue within itself. His focus was to find an acceptable balance between the forces for inequality and those for equality (Lewis 1998). Marshall distinguished between areas of the welfare state where greater degrees of inequality where acceptable and those where this was not the case, as the contrasts between the health service system and legal aid highlight (Marshall, 1949/92). Furthermore, this illustrated that for Marshall, citizenship constructs an affinity between rights and duties. However, this balance is not distributed equally among all who might make the claim to citizenship (Lewis, 1998). To conclude, while considering whether citizenship is compatible with the class structure in a capitalist society such as Britain, Marshall seems cautious in stating that this is possible (Faulks, 1998). Marshall provided an evolutionary view of citizenship, developing through various stages and levels to reach its final embodiment in the principles of British welfare politics (Turner, 1993). The extent of rights and duties that citizenship entails is open to on-going debate and has been challenged over time. Nonetheless, Marshall seems positive about the enrichment of citizenship at the time of writing (Dwyer, 2010). Initially, Marshall put the relationship between the citizen, the state and the social welfare at the centre of his analysis. Marshall achieved this by his suggestion of comprising citizenship into three interlinking aspects. Marshall viewed civil, political and social rights as a result of an evolutionary process, with each element overlapping (Turner, 1993). Marshallà ¢â‚¬â„¢s citizenship is a status rendered to people who can claim full citizenship of a community. Although, as noted by Lewis (1998) Marshall did not clearly state a criteria to which people may acquire such membership. Furthermore, there is a long and ongoing debate as to whether Marshall intended his historical analysis to be interpreted as a general theory of citizenship or whether the essay was just a commentary on the developments of citizenship within England (Faulks, 1998). Bibliography. Alcock, P. (1989). ‘Why Citizenship and New Welfare Rights Offer new Hope for Welfare in Britain,’ Critical Social Policy, Vol 19, no 2, pp 32-43 Alcock, P. and Oakley, A. (2001). ‘Introduction’, in P.Alcock, H Glennerster, A. Oakley and A. Sinfield (eds) Welfare and Wellbeing: Richard Titmuss’s contribution to social policy, Bristol: The Policy Press, pp1-9 Bagguley, P. (2013) Industrial citizenship: a re-conceptualisation and case study of the UK, International Journal of Sociology and Social Policy, Vol. 33 no: 5/6, pp.265 279 Delanty, G. (2000) Citizenship in a Global Age: Society Culture and Politics, Buckingham: Open University Press Dwyer, P. (2010). Understanding Social Citizenship: Themes and perspectives for policy and practice. 2nd ed. Great Britain: The Policy Press. Faulks, K (1998). Citizenship in Modern Britain. Edinburgh: Edinburgh University Press. Held, D. and Thompson, J. (1989). Social Theory of Modern Societies: Anthony Giddens and His Critics. Cambridge: Cambridge University Press. Lewis, G. (1998). Citizenship. In: Hughes, G. Imagining Welfare Futures. London: Routledge Ltd. pp 103-50. Lister, R (2003). Citizenship: Feminist Perspectives. 2nd ed. New York: New York University Press. 2003. Lister, R (2010). Understanding Theories and Concepts in Social Policy. Great Britain: The Policy Press. Marshall, T.H. (1949/92) ‘Citizenship and social class’, in T.H. Marshall and T.Bottomore, Citizenship and social class, London: Pluto Press Marshall, T.H. and Bottomore, T. (1992) Citizenship and social class, London: Pluto Press Powell, M. (2002) ‘The Hidden History of Social Citizenship’, Citizenship Studies, Vol 6, no 3, pp 229-45 Somers, M. R. (1994), Rights, Relationality, and Membership: Rethinking the Making and Meaning of Citizenship. Law Social Inquiry, 19: 63–114. Tilly, C (1996). Citizenship, Identity and Social History. International Review of Social History, 40, pp 1-17. Turner, B (1993). Citizenship and Social Theory. London: Sage Publications Ltd. Student Exam number: Y82850301

The Study of Si Surface Structures Essay examples -- Science Experimen

The Study of Si Surface Structures The goal of this study is to determine the ratios of surface type upon the Si sample. Data is collected from the Si samples using SPALEED. By analyzing the data from dates where combined surfaces are present it is possible to determine the amount of certain types of surfaces present on the sample. The ultimate goal is the ability to control the growth of Pb islands upon the Si crystal. Applications of this research include the design of advanced microprocessors and quantum wires. Introduction: The goal of the REU project to which I was assigned is to determine the amounts of certain types of crystalline surface structures present upon the Si crystal that had been used in previous experiments involving the formation of Pb islands at low temperature. This is accomplished by analyzing certain aspects of the data collected by Spot Profile Analysis Low Energy Electron Diffraction (SPALEED). The data sets are taken from different experimental runs involving various surfaces and are compared to one another. These surfaces include combined types of surface structures as well as those with only a single surface structure present. Background and Experimental Procedure: Within ultra-high vacuum and at very low temperature, a Si crystal is placed. This crystal is heated by use of a tungsten filament to high temperatures in order to eliminate impurities. The Si is then heated again at certain temperatures and for specific durations of time in order to create particular crystalline surface structures. Atoms of Pb are then deposited upon the Si crystal by a process of evaporation. The amount of Pb deposited is known and is measured in terms of monolayers, or layers of Pb upon the surface measu... ...is known through previous experiments that the surface of the Si upon which the Pb is deposited can change the height of the Pb islands formed. By altering the silicon surface upon which the Pb is deposited it is hoped that the Pb islands can be controlled. The hope is that the work here can help pave the way for computer chip architecture in the next fifty years. If the Pb islands can be deposited evenly and placed in specific locations it is believed that they can be use as quantum wires, dramatically increasing the speed of the silicon chip computer. At this time the data is promising. With more data and further analysis the problems of controllable Pb island formation are sure to be solved. The use of Scanning Tunneling Microscopy and SPA-LEED are the keys to unlocking the mysteries of the Si surface and it’s connection to the formation of the Pb islands.

Types of Entrepreneurship

Types of Entrepreneurship and Economic Growth DOI:10. 1093/acprof:oso/9780199596515. 003. 0004 Abstract and Keywords This chapter is an empirical exploration of types of entrepreneurship and their impact on economic growth in developing and transition countries. It relates indicators of entrepreneurship to average rates of economic growth in the period 2002–5. For this the chapter utilizes a dataset on entrepreneurship in thirty? six countries from the Global Enterprise Monitor (GEM), collected in 2002.It finds that indicators of young business activity have a significant impact on growth in high? income countries and transition countries, but not in developing countries. The chapter explains the lack of significant effects in developing countries by pointing to the lack of complementary physical and human capital and the scarcity of larger companies that can act as a training ground for SMEs. Keywords:  Ã‚  Ã‚  entrepreneurship,  growth? oriented entrepreneurship,  econ omic growth,  global entrepreneurship monitor 4. 1  IntroductionEntrepreneurship has long been considered a crucial mechanism of economic development (Schumpeter  1934; Landes  1998). However, empirical studies on the role of entrepreneurship in economic growth show mixed evidence (Stam  2008). This is not remarkable because there is much heterogeneity in both the kinds of entrepreneurship and the kinds of economic contexts in which economic growth takes place. Until now studies have not sufficiently accounted for this heterogeneity on the micro- and macro-level, which limits our insight into the contingent role of entrepreneurship in economic growth.Important questions in this respect are: ‘How does the role of entrepreneurship differ between high-income, transition, and medium-income countries? ’, and ‘What kinds of entrepreneurship are most crucial for economic growth? ’. The objective of this chapter is to provide insights into the role of dif ferent types of entrepreneurship in economic growth, and on how this role differs in poor and rich economies. In this chapter, we empirically investigate the effect of entrepreneurship on economic growth at the country-level.We use data from the Global Entrepreneurship Monitor (GEM), which provides comparative data on entrepreneurship from a wide range of countries. An important element of this chapter is that we compare the effects of entrepreneurial activity on economic growth in high-income countries, transition countries (China, Hungary, Poland, Russia, and Slovenia), and medium-income countries (Argentina, Brazil, Chile, India, Mexico, South Africa, and Thailand). This dataset also enables us to make a distinction between the effects of entrepreneurship in general and  (p. 9 )growth-oriented entrepreneurship in particular. We present empirical tests of the impact of entrepreneurial activity on GDP growth over a four-year period for a sample of 36 countries. Our empirical anal yses suggest that entrepreneurship does not have an effect on economic growth in medium-income countries, in contrast to transition and high-income countries where especially growth-oriented entrepreneurship seems to contribute strongly to macroeconomic growth. 4. 2  Entrepreneurship and economic development Development is a broad concept entailing the raising of human capabilities (Sen  1999).One of the central challenges in improving economic development is to increase the standards of living for individuals and growth of the economy as a whole. Even though economic growth in itself is a rather narrow target, it is probably one of the most important targets for development policies. It is also one of the measures that is most easy to access for analysts, and probably the best measure to make cross-national (Barro  1991; Sala-i-Martin  1997) and historical (Maddison  2001) analyses of the development of economies.Traditionally the economic output of a country is seen as a function of capital and labour inputs, combined with technical change (Solow  1957). Of course, conflicts and wars might interrupt this function (Sala-i-Martin  1997), but these are ‘just’ contingencies. The standard production function used shows that economic output (Y) is a function of the sum of labour and capital inputs, and the level of technological knowledge (i. e. productivity). This means that economic growth—the growth of economic output—is a function of the growth of labour and capital inputs and technological progress.In traditional models of economic growth investment in capital, labour, and technology is sufficient to realize economic growth. New models of economic growth see these investments as a necessary complement to entrepreneurship/innovation, but not as a sufficient explanation for economic growth in its own right (Nelson and Pack  1999). One could even argue that high rates of investment in human and physical capital are them selves stimulated by effective innovation, and cannot be maintained in the absence of innovation.Recent studies emphasize entrepreneurship as a driver of economic development and some authors include entrepreneurship as a fourth production factor in the macroeconomic production function (Audretsch and Keilbach  2004). Entrepreneurship is the factor that creates wealth by combining existing production factors in new ways. Entrepreneurs experiment with new combinations of which the outcomes are uncertain, but in order to make progress, many new variations have to be tried in order to find out which ones will  (p. 80 )  improve (economic) life (Rosenberg and Birdzell  1986).Other authors have argued that entrepreneurship will only unlock economic development if a proper institutional setting is in place (Baumol  1990; Boettke and Coyne  2003; Powell  2008). This institutional setting comprises informal as well as formal institutions (North  1990). An essential formal in stitution for welfare enhancing entrepreneurship is property rights. Insecure property rights have been an important constraint on the investments by entrepreneurs in transition countries, even more so than capital market constraints (Johnson, McMillan, and Woodruff  2000).A specific example regarding property rights is the fact that until 1988 private firms with more than seven workers were not even allowed to operate legally in China (Dorn  2008). One might say that the production factors capital, labour, technology, and entrepreneurship are the proximate causes of economic development, while institutions are a fundamental cause of economic development (Acemoglu, Johnson, and Robinson  2004). Next to productivity growth and technological change in established sectors, the development process in less advanced countries is largely about structural change (Gries and Naude  2010; Nelson and Pack1999; Rodrik  2007).It is a process in which an economy finds out—self-dis covers—what it can be good at producing, out of the many products that already exist. The role of entrepreneurs in developing countries does not equal innovation and R&D as commonly understood in advanced economies. Their role is to discover that a certain good, already well-established in world markets, can be produced at home at low cost (Hausmann and Rodrik  2003; Rodrik  2007).   Examples of this are the entrepreneurs that figured out that Bangladesh was good in the production of T-shirts, Colombia in cut flowers, India in software services, and Taiwan in bicycles and display technologies. Even if entrepreneurs cannot appropriate all these gains for themselves, their discoveries generate large social gains for their economies. Spurring entrepreneurs to invest in their home economy is said to be one of the most important aspects of stimulating growth in poor countries (Rodrik  2007). Investing refers here to innovation (e. g. mploying new technology, producing new products, searching for new markets) and expanding capacity. These investments trigger the combination of capital investment and technological change. In advanced capitalist economies, innovation and structural change take place through the combined efforts of small (independent inventors) and large innovative (organized R&D) firms, which complement each other in changing the economy (Nooteboom  1994; Baumol  2002). In developing countries the role of large firms is relatively small (Ghoshal, Hahn, and Moran  1999).In transition countries there are relatively many large organizations but these are largely in a process of restructuring and dismantling. This means that  (p. 81 )  small firms will be the prime movers in the process of structural change in developing and transition economies. We expect that the level of growth-oriented entrepreneurship in a country is a more relevant driver of economic growth than the mostly used indicators of entrepreneurship like self-employ ment and new firm formation.In contrast to rich countries, entrepreneurship in medium-income countries is mainly driven by necessity (Bosma et al. 2008). 2  Most entrepreneurs in these economies do not start a firm because they desire independence or because they want to increase their income as compared to being an employee, which are the dominant motives in rich countries. Most new businesses in medium-income countries are started out of necessity, in contrast to high-income countries, where entrepreneurship is most often opportunity-driven.This is reflected in the finding that in poor countries self-employed persons are less happy than employees, while the reverse is true in high-income countries (Blanchflower and Oswald  1998; Graham  2005). Entrepreneurs in medium-income countries most often start a business because they have no other way of earning a living. These entrepreneurs are not likely to be involved in a process of self-discovery; their actions are not likely to have an effect on the restructuring and diversification of the poor economies (Rodrik  2007). . 3  Data and research methods It is generally acknowledged that there are differences in the distribution of entrepreneurship across countries. Studies exploring differences in entrepreneurship across countries often focus on the incidence of new firm registration or self-employment, which may not be reliable indicators when applied to transition and developing countries with significant informal economies and fewer alternatives to self-employment.For these reasons we have used the Young Business (YB) indicator, defined as the percentage of adult population that is the owner/manager of a business that is less than 42 months old. Many studies have used the total entrepreneurial activity index, but that also includes the more speculative category of nascent entrepreneurs (individuals preparing a new business). In the current study we investigate whether the presence of growth-oriented en trepreneurs is a more important determinant of national economic growth than entrepreneurial activity in general.We will perform regression analyses with the YB  high-growth expectation  rate and the YB  medium-growth expectation  rate as independent variables and compare their impact on economic growth with the impact of the general YB index. The data and model used in this study are described below. We use a sample of 36 countries participating in the GEM in 2002. Data on six basic variables are used in our model: YB rate, YB medium-growth, YB  (p. 82 )  high-growth, growth of GDP, per capita income, and the growth competitiveness index (GCI). YB indexYB is defined as the percentage of adult population that is owner/manager of a business that is less than 42 months old. The YB high-(medium) growth expectation rate is defined as the percentage of adult population that is owner/manager of a business that is less than 42 months old,  and expects to employ 20 (six) emplo yees or more within five years  (YB6 and YB20). The YB medium-growth rate has some similarity to the entrepreneurship indicator used by Djankov et al. (2006), which includes owner-managers of a business with five or more employees. Data on the YB rate are taken from the GEM Adult Population Survey for 2002.Growth of GDP (? GDP) (Real) GDP growth rates are taken from the IMF World Economic Outlook database of the International Monetary Fund from September 2005. In equations (1) and (2) below variable ? GDPit  refers to the period 2002–5 (average annual growth) while the lagged GDP growth variable (? GDPi,t-1) refers to the period 1998–2001. Per capita income (GNIC) Most studies on GDP growth include the initial level of income in their analysis and find it to be significant (the conditional convergence effect, cf. Abramovitz  1986). Gross national income per capita 2001 is expressed in (thousands of) PPP dollars.These data are taken from the 2002 World Development Indicators database of the World Bank. Growth Competitiveness Index (GCI) In order to cover some aspects of the state of technology and institutions in a country (see Section  4. 2) we used the GCI for the year 2001 of the World Economic Forum (see McArthur and Sachs  2002). Given the low number of observations we are forced to use a combined index in our model. Even though there are huge problems in measuring technological capabilities and institutions (see Lall2001), the composite GCI is probably the best combined index available that covers these two factors simultaneously. p. 83 )  We investigate whether (growth-oriented) entrepreneurship may be considered as a determinant of economic growth, alongside the well-known determinants technology, institutions, and the macroeconomic environment, which are captured by the GCI. As both entrepreneurship and the factors underlying the GCI are assumed to be structural characteristics of an economy, we do not want to explain short-te rm economic growth but rather growth in the medium-term. Therefore we choose average annual growth over a period of four years (2002–5) as the dependent variable in this study.Following van Stel, Carree, and Thurik (2005), we use (the log of) initial income-level of countries to correct for catch-up effects, and lagged growth of GDP to correct for reversed causality effects, as additional control variables. 3 We allow for the possibility of different effects for high-income, transition, and medium-income countries. In addition we also test whether the effect of YB is different for transition countries. 4  YB rates may reflect different types of entrepreneurs in countries with different development levels, implying different impacts on growth.This is tested by defining separate YB variables for different groups of countries (high-income, transition, and medium-income countries). Our model is represented by equations (1) and (2). These equations are estimated separately by or dinary least squares. The expectation that growth-oriented YBs contribute more to national economic growth than YBs in general corresponds to b2  (c2) being larger than b1  (c1). In these equations sub-scripts t and t-1 loosely indicate that the independent variables are measured prior to the dependent variable.The exact years and periods for which the variables are measured can be found in the variable description above. ?GDPit=a+b1YBrichi,t? 1+c1YBtransitioni,t? 1+d1YBpoori,t? 1 +e? log(GNICi,t? 1)+f? GCIi,t? 1+g GDPi,t? 1+? it (1) ?GDPit=a+b2YB_high-growthrichi,t? 1+c2YB_high-growthtransitioni,t? 1+d2YB_high-growthpoori,t? 1+e? log(GNICi,t? 1)+f? GCIi,t? 1+g GDPi,t? 1+? it (2) To illustrate the data at hand, Table  4. 1  provides the YB rates and the YB medium- and high-growth rates in 2002 as well as the average annual growth rates of GDP over the period 2002–5.From Table  4. 1  and Figures  4. 1  and  4. 2  it can be seen that the ranking of countries in terms of YB or YB high-growth may be quite different. For instance, while China ranks fifth in terms of YB, it ranks first in terms of  (p. 84 ) Table 4. 1 Young business rates (2002) and GDP growth rates for 36 countrieshigh-growth YB. In contrast, Thailand ranks third in terms of YB, but only tenth in terms of high-growth YB. Figure 4. 1  Young business rates Figure 4. 2  Young business 20 rates Figure 4. 3  Correlation of young business rates and GDP growth rates Figure 4.   Correlation of high growth-oriented young business rates (20+) and GDP growth rates When we regress the rate of GDP growth on the YB rate and the YB20 rate, the YB20 rate reveals to have a stronger correlation with GDP growth (see Figures  4. 3  and  4. 4). (p. 85 )(p. 86 ) 4. 4  Entrepreneurship and national economic growth 4. 4. 1  Regression analyses The results of our empirical exercises are in Table  4. 2. Model I presents the regression results of the impact of the general YB i ndex (see equation (1)), while Models II and III show the results using the YB6 and YB20 rates as main independent variables (see equation (2)).The results presented in Table  4. 2  show that the impact of entrepreneurial activity is significantly positive for rich countries, but effectively zero for poor countries. The presence of growth-oriented entrepreneurs seems to be more important for achieving GDP growth than general entrepreneurship. Comparing the coefficients of the various YB rates, we see that the impact of YB6 is greater when compared to the impact of YB in general. Meanwhile the impact of YB20 is even greater, but not always statistically significant. Having more growth-oriented entrepreneurs seems to be particularly important in transition countries.Both the magnitude and the statistical significance of the estimated coefficient point to a stronger impact compared to high-income or medium-income countries. There are many reasons that could(p. 87 ) Table 4. 2 Regre ssion models average annual growth of GDP over the period 2002–5 (N=36)explain the importance of growth-oriented entrepreneurs in transition countries (Smallbone and Welter  2006). First, there are many entrepreneurial opportunities in formerly state-dominated sectors. Second, many highly qualified individuals lost their jobs at state-financed organizations (e. . universities, enterprises, government services). Third, there are many highly qualified (potential) entrepreneurs in these countries (especially in Eastern European countries), who do not face the opportunity costs of working for large public or private organizations. Fourth, those highly qualified (potential) entrepreneurs are also well connected to the power networks that were, and to a large extent still are, important in the political and economic arena of these countries, which takes away some barriers for high-growth firms in these countries.Summarizing, it may be argued that in transition economies high-grow th opportunities are more widely available and hence, a higher number of growth-oriented entrepreneurs willing to act on these opportunities may be particularly fruitful for achieving growth in these countries. However, we should be aware of the large diversity in the group of transition countries, which comprises countries like Russia and China, as well as Hungary and Slovenia. (p. 88 )  Our regression results should be interpreted with care as the analysis is based on a limited number of observations (36 countries).As a test of robustness we estimated the models leaving out one country at a time, i. e. we computed 36 auxiliary regressions, where each regression uses 35 observations (each time leaving one of the 36 countries out). Although t-values sometimes dropped a little, coefficients and t-values were generally in line with those reported in Table  4. 2. The country that matters the most for the results obtained in Table  4. 2  is China. This is not surprising as China combines high YB/YB6/YB20 rates with high GDP growth rates (see Table  4. 1). When leaving this country out of the sample, the coefficient (t-value) for the transition countries is 0. 2 (0. 5) for the YB rate, 1. 47 (1. 2) for the YB6 rate, and 1. 72 (1. 1) for the YB20 rate. The low t-values are in part due to the low number of observations. Note, however, that the coefficients are very similar to the full sample estimates reported in Table  4. 2. Furthermore, the Jarque–Bera test on the normality of disturbances is passed for all models reported in Table  4. 2, indicating that it is not necessary to remove individual country observations. Therefore we feel that our results are quite robust to the potential influence of outliers.Nevertheless, given the low number of observations, the results should only be seen as a first illustration of how the impact of different types of entrepreneurship may differ between groups of countries with different levels of development. 4 . 4. 2  Medium-income countries Within the groups of transition and developing economies there are substantial differences in entrepreneurship rates. Chile stands out because of a particularly high rate of growth-oriented entrepreneurship, while Mexico has a particularly low rate of growth-oriented entrepreneurship.In contrast to high-income countries, entrepreneurship in medium-income countries is mainly driven by necessity: self-employment is often the only occupational choice given a paucity of other sources of employment (necessity-based entrepreneurship; see Acs and Amoros  2008; Bosma et al. 2008). The actions of most of the entrepreneurs in medium-income countries are not likely to have an effect on the restructuring and diversification of the poor economies. This would be the whole story if the rates of growth-oriented entrepreneurship would also be marginal in these economies.This is only the case for Mexico. Next to Chile—where opportunity-driven entrepreneurshi p is dominant—Brazil, India, and Argentina perform quite well with respect to growth-oriented entrepreneurship. This means that there still is a substantial group of entrepreneurs in medium-income countries that might get involved in a process of self-discovery. The problem in practice is that in contrast to rich and transition economies, growth-oriented entrepreneurship is less likely to  (p. 89 )  be realized in developing economies, due to constraints on the provision of capital and (skilled) labour.An additional constraint in medium-income countries is that there are relatively few (foreign) large companies, which could act as a training ground for prospective growth-oriented entrepreneurs, and could open up distribution channels for new fledgling enterprises (Knorringa  1996). This is also reflected in the finding of Bosma, Stam, and Wennekers (2010) that the incidence of intrapreneurship (i. e. employees developing new business activities for their employer) is mu ch lower in medium-income countries than in high-income countries.In addition, one should make a distinction between large firms with productive (manufacturing) and resource extractive (mining, oil) activities here, as the former will be more useful for the development of entrepreneurship than the latter. 4. 4. 3  Transition countries New firms in transition countries not only displace obsolete incumbents but also fill in new markets, which were either non-existent or poorly populated in the past. Our study suggests that in transition countries, growth-oriented entrepreneurs make an important contribution to economic growth.They create new jobs with relatively high incomes which the small incumbent population of private firms cannot provide. This entrepreneurial growth process is facilitated by the relatively high levels of human capital in combination with relatively low opportunity costs of self-employment of the adult population. The high degree of environmental dynamism in the se countries—which is likely to positively affect the level of growth expectations and realizations of entrepreneurs in these countries—requires ambitious and well-connected entrepreneurs in order to translate these abundant opportunities in economic growth.There are considerable differences within the group of transition countries. Hsu (2005) shows that the role of these connections differs considerably between China and Russia: in China it was a tool which could be used to build enough trust to allow business transactions to succeed (‘capitalism without contracts’). In contrast, in Russia these connections devolved into corruption, and faded in importance for ordinary citizens. Without a way to build trust or extend networks, Russians retreated into defensive involution, and engaged in predatory behaviour against those outside their small circles of friends.Instead of capitalism without contracts, Russia suffered the depredations of ‘capitalists wi thout capitalism’. There are also substantial differences in entrepreneurship rates within the groups of transition economies. China stands out because of particularly high rates of growth-oriented entrepreneurship (cf. Hsu  2005). Even though the YB  (p. 90 )  rate is below the average of transition countries, the growth of self-employment has been enormous, not only in the richer coastal provinces, but also in rural areas (Mohapatra, Rozelle, and Goodhue  2007).Research by Djankov et al. (2006) also shows that entrepreneurs in China are more risk-taking and more committed to an entrepreneurial career than entrepreneurs in Russia. In addition, Russia has (and had: see Hsu  2005) a particularly low rate of entrepreneurship in general as well. The striking difference between entrepreneurship rates in China and Russia can be explained by their different paths from socialism to capitalism: gradualism and a shock therapy (see Burawoy  1996).In China the gradual transf ormation started with a policy of decollectivization (decentralization of property relations) in the late 1970s and the promotion of small-scale industry, with a focus on promoting independent entrepreneurship. Experimentation with new economic arrangements, for example privatization of small state-owned enterprises, has led to a favourable accumulation of productive capabilities in China. In contrast, Russia underwent a shock therapy in which the old communist regime was liquidated, with a focus on rapid privatization of the state sector.However, the Russian state failed to organize a market economy, which led to a coordination and entrepreneurial vacuum into which have stepped conglomerates, banks and mafia, siphoning off surplus from production to exchange (Burawoy  1996). 4. 5  Discussion of policy implications In this section we will briefly discuss the potential implications of our exploration of the relationship between types of entrepreneurship and economic growth for en trepreneurship policy and industrial/cluster policy in medium-income and transition countries. 5 4. 5. 1  Entrepreneurship policyOur empirical analyses suggest that entrepreneurship does not have an effect on economic growth in medium-income countries, in contrast to transition and high-income countries where both growth-oriented entrepreneurship and entrepreneurship in general seem to contribute strongly to macroeconomic growth. Does this mean that stimulating entrepreneurship in medium-income countries is bad policy? The least we can say is that stimulating entrepreneurship alone will be insufficient as it is likely to attract necessity entrepreneurs with low human capital levels who do not contribute to economic growth.The non-significant effect of entrepreneurship on economic growth in medium-income countries might point at a shortage of large firms in these countries. By exploitation of economies of scale and scope and by  (p. 91 )  adopting and diffusing technology devel oped elsewhere, large firms are important in transforming a developing economy into a developed economy (van Stel, Carree, and Thurik  2005). In these economies local workers are more productive working as wage employees than as entrepreneurs. Nevertheless stimulating growth-oriented entrepreneurship might be an additional element of transforming a developing economy into a developed one.Attracting investments by large (possibly foreign) firms, stimulating growth-oriented entrepreneurship, investing in labour and capital, and improving the institutional framework may be the recipe for growth here. On the one hand this is old news, in that it provides a plea for the traditional role of governments to invest in education and physical infrastructure, and to build and maintain a set of institutions that enable the development of the private sector (cf. Rosenberg and Birdzell  1986). On the other hand, the addition of growth-oriented entrepreneurship in development policy for medium- income and transition countries is a new element.One must be careful to target the right group of entrepreneurs though, i. e. governments should avoid that resources made available through government stimulation programmes are absorbed by necessity entrepreneurs with low human capital levels. 4. 5. 2  Industrial/cluster policy The focus of this chapter has been on the country-level, which disregards the sub-national level of analysis, and what is of particular relevance here, the level of regional clusters (regional concentrations of particular industries). These regional clusters have proved to be important drivers of economic development in, for example, Taiwan, India, and Brazil.These clusters are both driven by and drive growth-oriented entrepreneurship. Growth-oriented entrepreneurs that start to invest in a particular industry are needed in order to reach a critical mass that is needed to reach certain agglomeration economies (Braunerhjelm and Feldman  2006). If the build- up of capacity to this level of critical mass is not reached due to the lack of complementary investments, there might be a role to play for governments to overcome coordination failure, for example by providing investment guarantees for entrepreneurs (see Rodrik  2007).Such industrial policy is not about ‘picking winners’ or comprehensive planning, but encouraging experiments with new types of economic activity (Rodrik2007). Since it is impossible to judge winners and losers in advance, competent and growth-oriented entrepreneurs should be encouraged to try, success should be rewarded, and failure should not be coddled (Nelson and Pack  1999). These clusters do not have to be close to the technology frontier (as in advanced capitalist economies). The real policy implications arise from thinking carefully about the particular sources of advantage for a nascent cluster  (p. 2 )  and why that source might yield short-term complements with the potential to become l ong-term substitutes (Bresnahan, Gambardella, and Saxenian  2001). Cooperation of clusters in developing countries with existing richer economies is not ‘colonialist’. Take for example the linkages with the US. India and Taiwan are linked to the US (especially Silicon Valley) via outsourcing of software services and manufacturing (due to low labour costs), but also by a returning group of expatriates who have worked there, and who see the benefits of long distance collaboration (Saxenian  1999).There is a flow of people—the so-called Argonauts (Saxenian  2006)—and ideas back and forth between rich and emerging economies. Migrant workers tend to be among the most entrepreneurial in society. Governments of developing countries should not only look at these expatriate workers as a source of remittances. Given their entrepreneurialism, skills, and exposure to business in the developed world, as well as the desire of many of them to return home, they may be very important as a source of self-discovery in their country of origin (Rodrik  2007).In addition to developing the private sector, these return migrants may provide the new elite needed for building up a civil society. Only a fraction of the money spent on attracting FDI would be needed to target nationals abroad. This would attract more knowledgeable human capital and durable investments than most FDI will do. Once critical mass is reached within a regional cluster, it is likely to generate or attract growth-oriented entrepreneurs (e. g. Argonauts), who in turn stimulate further macroeconomic growth. 4. 5. 3  Limitations and further researchThe regression analyses in this chapter are of limited value: they have not only simplified the range6and (linear) effects of determinants for economic development, they have also dumbed down economic development to economic growth over a short-term (four-year) period. We know that sustaining growth is more difficult (and caused by diff erent factors) than igniting it (Rodrik  2007). This also connects to one of the other shortcomings: sustaining growth probably requires much more extensive institutional reform than can be properly taken into account in linear regression analyses.Next to better measures of institutions, future research should take into account samples with low-income countries and a larger number of medium-income and transition countries, and multiple years in order to achieve more robust empirical analyses. In addition, our data did not allow for testing the multiplicative effect of entrepreneurship, so we only analysed the additive effect. A larger number of cases would enable the inclusion of the more traditional indicators of capital and labour in the analyses, and allow for testing the multiplicative effect.

The Mind And The Body - 1718 Words

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