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Two sources of growth are firm learning and innovation. Using a unique panel data for 1,686 firms in six countries (Bulgaria, Hungary, Latvia, Lithuania, Romania, and Turkey), this paper applies panel data estimators and Juhn-Murphy Pierce decomposition in order to identify the effects of the global economic crisis on sales growth of innovative and young enterprises in Eastern European countries. The results show that innovative and young firms were significantly more affected by the crisis than non innovative and older enterprises. The authors interpret these results as an indication that the achievement of pre-crisis growth rates in those countries may be difficult.

Achieving Shared Growth --- Annual growth --- Annual growth rate --- Business environment --- Corporate growth --- E-Business --- Economic Growth --- Economic growth --- Employment --- Entrepreneurship --- Finance and Financial Sector Development --- Financial crisis --- Financial Sector --- Firm size --- Firms --- Growth performance --- Growth prospects --- Growth rate --- Growth rates --- Human capital --- Industry --- International trade --- Macroeconomics and Economic Growth --- Merger --- Microfinance --- Negative impact --- Policy Research --- Poverty Reduction --- Private Sector Development --- Small Scale Enterprise

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Active economic policies by developing countries' governments to promote growth and industrialization have generally been viewed with suspicion by economists, and for good reasons: past experiences show that such policies have too often failed to achieve their stated objectives. But the historical record also indicates that in all successful economies, the state has always played an important role in facilitating structural change and helping the private sector sustain it across time. This paper proposes a new approach to help policymakers in developing countries identify those industries that may hold latent comparative advantage. It also recommends ways of removing binding constraints to facilitate private firms' entry into those industries. The paper introduces an important distinction between two types of government interventions. First are policies that facilitate structural change by overcoming information and coordination and externality issues, which are intrinsic to industrial upgrading and diversification. Such interventions aim to provide information, compensate for externalities, and coordinate improvements in the "hard" and "soft" infrastructure that are needed for the private sector to grow in sync with the dynamic change in the economy's comparative advantage. Second are those policies aimed at protecting some selected firms and industries that defy the comparative advantage determined by the existing endowment structure-either in new sectors that are too advanced or in old sectors that have lost comparative advantage.

Achieving Shared Growth --- Comparative advantage --- Comparative advantages --- Debt --- Debt Markets --- Development Economics --- Development strategies --- Economic growth --- Economic theory --- Economic Theory & Research --- Emerging Markets --- Environment --- Environmental Economics & Policies --- Exports --- Externalities --- Externality --- Finance and Financial Sector Development --- GDP --- Gross domestic product --- Growth rate --- Income --- Industrialization --- Macroeconomic management --- Macroeconomics and Economic Growth --- Poverty Reduction --- Private Sector Development --- Structural Change --- Unemployment --- Wealth --- Wealth creation

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The literature on the relationship between economic diversification and development has grown rapidly in recent years, partly due to the surprising finding that diversification rises with gross domestic product per capita up to a certain point. Export diversification along the extensive margin is inextricable from the introduction of new export products. The authors test the hypothesis that the threat of imitation inhibits the introduction of new exports - export discoveries - under the assumption that the intensive and extensive margins of exports are correlated within broad country-industry groups. Econometric evidence from panel-data techniques that are appropriate for count data (the number of discoveries) suggests that discoveries within countries and industries rise with the growth of exports along the intensive margin (relative to the growth of non-export gross domestic product) but the magnitude of this partial correlation increases with domestic barriers to entry and with customs delays in exporting. However, the magnification effect of barriers to entry appears to be less significant as a determinant of total within-country export discoveries. This is consistent with inter-industry and within-country spillovers related to export discoveries, implying that barriers to entry enhance the effect of export growth on discoveries within country-industries but total discoveries might be unaffected by barriers to entry.

Barriers to entry --- Comparative advantage --- Economic Theory & Research --- Emerging Markets --- Export growth --- Exports --- Future research --- GDP --- GDP per capita --- Gross domestic product --- Gross domestic product per capita --- Growth policy --- Growth rate --- Income levels --- Industrialization --- International trade --- Macroeconomics and Economic Growth --- Markets and Market Access --- Net exports --- Patents --- Private Sector Development --- Production costs --- Profitability --- Regression analysis --- Structural change --- Transport --- Water Resources --- Water Resources Assessment

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This paper summarizes the estimates of what Russia will get from World Trade Organization accession and why. A key finding is the estimate that Russia will gain about USD 53 billion per year in the medium term from World Trade Organization accession and USD 177 billion per year in the long term, due largely to its own commitments to reform its own business services sectors. The paper summarizes the principal reform commitments that Russia has undertaken as part of its World Trade Organization accession negotiations, and compares them with those of other countries that have acceded to the World Trade Organization. It finds that the Russian commitments represent a liberal offer to the members of the World Trade Organization for admission, but they are typical of other transition countries that have acceded to the World Trade Organization. The authors discuss the outstanding issues in the Russian World Trade Organizaiton accession negotiations, and explain why Russian accession will result in the elimination of the Jackson-Vanik Amendment against Russia. They discuss Russian policies to attract foreign direct investment, including an assessment of the impact of the 2008 law on strategic sectors and the increased role of the state in the economy. Finally, the authors assess the importance of Russian accession to Russia and to the international trading community, and suggestions for most efficiently meeting the government's diversification objective.

Consumers --- Debt Markets --- Economic Theory & Research --- Economics --- Emerging Markets --- Exchange rates --- Finance and Financial Sector Development --- Free rider --- Free rider problem --- Free Trade --- GDP --- Growth rate --- Industrialization --- International Economics and Trade --- International trade --- Macroeconomics and Economic Growth --- Marginal benefits --- Open economies --- Open economy --- Political economy --- Private Sector Development --- Purchasing Power --- Telecommunications --- Trade disputes --- Trade liberalization --- Trade policy --- World Trade Organization --- WTO

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There has been substantial research in recent years examining the regional evolution of economic growth across states in Mexico - with a particular focus on the post North American Free Trade Agreement period. There is also a vast literature using cross-country regressions to examine institutional determinants of economic growth, including government transparency, or "corruption," as a key institutional variable. This paper uses more recently available data for Mexican states to both update the general state convergence/divergence literature, and incorporate into the analysis more recently developed state level indicators of institutional factors related to government transparency. The authors do not find a systematic relationship between measures of government transparency and gross domestic product per capita growth in Mexico during 2001-2005; however, they do find that corruption is negatively associated with the level of state gross domestic product per capita. The contrasting results may imply that more years of data are necessary to be able to establish statistically significant relationships between state growth rates and measures of corruption.

Achieving Shared Growth --- Bribery --- Bureaucracy --- Corrupt Officials --- Corruption --- Corruption variable --- Country data --- Economic development --- Economic growth --- Economic performance --- Economic Theory & Research --- Good governance --- Governance --- Governance Indicators --- Growth rate --- Growth rates --- Income --- Institutional environment --- International level --- Macroeconomics and Economic Growth --- Political Economy --- Poverty Reduction --- Property rights --- Public Sector Corruption & Anticorruption Measures --- Public Sector Development --- Tax system --- Transparency --- Veto power