Paul J. Thomas Endowed Chair, Professor of Economics at Youngstown State University, USA Docent in Political Economy at University of Jyväskylä, Finland
International journal of business and economics, 2021
A well-functioning social network involves attributes such as honesty, benevolence, fairness and ... more A well-functioning social network involves attributes such as honesty, benevolence, fairness and confidence. When this network – trust - has formed, participants can count on reliable and consistent economic transactions. This has the effect of higher level of co-operation, but also co-dependence. Strong social networks, as measured in this study by the degree of interpersonal trust and trust in institutions, are foundational elements for societies wishing to progress to new higher levels of entrepreneurship and development. In a pooled OLS of up to 52 countries and 16 years, this study estimates how changes in interpersonal trust and trust in institutions affect new business creation. The four entrepreneurship categories considered include the total early-stage entrepreneurial activity, new business formation, necessity-driven entrepreneurial activity, and improvement-driven opportunity entrepreneurial activity.
In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostl... more In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostly the aid recipient countries, which have been held responsible for aid’s shortcomings. That focus is misplaced, however, since the donor countries, through development aid, also export some of their own institutions and values to the recipient countries affecting the recipients’ rate of entrepreneurship and income. This study demonstrates how donor countries vary widely in both the type and quality of their institutions and values, leading to diverging economic outcomes. The results indicate that recipient countries should pay serious attention to who their development partner is. In particular, recipients would want to avoid aid from low institutional quality donors with perceived anti-market attitudes. Finally, it is argued that development aid might become more efficient if it moved away from the bilateral, towards the multilateral, mode.
Sir Thomas More's Utopia, published in 1516, is a classic work of how to organise a society based... more Sir Thomas More's Utopia, published in 1516, is a classic work of how to organise a society based on common property. With a unique mix of common property, institutions and sound economic insights, we argue that More built a framework for a society that could be viable in the long run. While the conditions that make Utopia work are quite restrictive, it does provide a sketch of a society where common property may not stifle long‐term development, but is associated with productive workers and people content with their lives.
Stigmatization indicates that a person possesses a condition or status that others devalue. This ... more Stigmatization indicates that a person possesses a condition or status that others devalue. This study explores different types of stigmatizing conditions and the co-occurring (intersectional) stigmas among 476 students attending a 13,000-student state university in North-East Ohio. In addition to studying the extent and intersectionality of stigma, the collected data is used to estimate some economic costs associated with it. The three most prevalent stigma conditions reported by students were depression, overweight, and poverty. Based on this study, these three conditions in particular identified in the study should be considered when setting up stigma prevention and intervention programs on university campuses. In addition to the personal benefits of an individual's healing, a simple cost analysis conducted in the study highlights very large financial returns to both universities and society of even moderate interventions.
The global recession of 2007-2009 raised an interesting question: are the European welfare states... more The global recession of 2007-2009 raised an interesting question: are the European welfare states with their large governments and extensive social safety nets more immune to business cycles than their income peers in the OECD? In this paper, we test empirically whether that has been the case in the long run. Our sample includes twenty-one OECD countries and a thirty-nine-year time period from 1970 through 2007. Our tests measure whether the level of government intervention in economies is significantly related to the variability in income growth. ______________________________________________________ JEL codes: E32, H11, I38, N10, O11, P51
Following the disintegration of the Soviet Union in December 1991, the former Soviet republics an... more Following the disintegration of the Soviet Union in December 1991, the former Soviet republics and many other Eastern European nations began their transition from socialism to capitalism. Private sector entrepreneurship, an activity that had been illegal for decades, not only became legal but it also became essential for the creation of wealth and economic progress in these countries. In this paper we examine the rates of entrepreneurial activity in these post-socialist economies, and attempt to uncover the policies and institutions that appear to be the most highly correlated with a country’s success (or failure) in promoting entrepreneurial activity. JEL Classifications: E60, H10, P20 *The authors would like to thank Ronald Balvers, Stratford Douglas, George Hammond and William Trumbull for helpful comments and suggestions.
In the last half century, developed countries have paid increasing attention to the problems of d... more In the last half century, developed countries have paid increasing attention to the problems of developing countries. Not only has the disastrously low level of economic development in large parts of the world become apparent over time, but also all the undesired side effects of enduring poverty: poor health, widespread diseases, low life expectancy, and the general lack of means of entire nations to deal with basic needs. Wealthy countries do not necessarily have purely unselfish motives when helping poorer countries through financial aid. Part of any aid constantly flows back to donors through highly stipulated procurement contracts. Aid has also increased the potential for donors to buy preferential future treatment for the business firms of their own nationality. Politically, aid can be seen as serving to buy increased international and regional clout through new political allies. Moreover, aid may bring more stability to world affairs, assuming it increases economic growth in r...
Conventional development aid, typically a service from government to government, has been a relat... more Conventional development aid, typically a service from government to government, has been a relatively poor determinant of economic growth or human development in developing countries. In this paper we test whether a distinctly grass-roots delivery mode, as is the case with missionary work, leads to a more effective dispersion of foreign aid. In addition to its mode of delivery, missionary work is also of interest as there is a known positive correlation between the growth rate of Christianity and economic development. We estimate the economic growth impacts of development aid versus missionary work variables by using empirical data from 119 countries and discuss several explanations for our empirical results.
... in America. According to Brooks, what matters to people is that they perceive to have the op... more ... in America. According to Brooks, what matters to people is that they perceive to have the opportunity not a guarantee to be successful in their lives. Therefore, having potential for well-being mobility is in the core of a happy society. Page 4. 208 Tomi Ovaska and Ryo ...
Journal of Enterprising Communities: People and Places in the Global Economy, 2014
Purpose – The purpose of this study is to focus on the development experience in the global world... more Purpose – The purpose of this study is to focus on the development experience in the global world of two small communities, Viimsi in Estonia and Magog in South Africa. These two communities were chosen as exemplars because the authors were familiar with both, and understood them to be illustrative of differing outcomes of interaction of small communities with the global economy offering the prospect of generalisation of findings to the framework and theory. Twenty years ago, both were poor, since then Viimsi has become wealthy, while Magopa remains poor. It is not believed that becoming the wealthiest community in Estonia was Viimsi’s per-determined destiny. What people of Viimsi did to make their community a success relative to the surrounding peer communities is a story of the visible as much as the invisible attributes. Design/methodology/approach – These attributes are examined using a framework the authors’ originally developed to explore the participation of Indigenous commun...
International journal of business and economics, 2021
A well-functioning social network involves attributes such as honesty, benevolence, fairness and ... more A well-functioning social network involves attributes such as honesty, benevolence, fairness and confidence. When this network – trust - has formed, participants can count on reliable and consistent economic transactions. This has the effect of higher level of co-operation, but also co-dependence. Strong social networks, as measured in this study by the degree of interpersonal trust and trust in institutions, are foundational elements for societies wishing to progress to new higher levels of entrepreneurship and development. In a pooled OLS of up to 52 countries and 16 years, this study estimates how changes in interpersonal trust and trust in institutions affect new business creation. The four entrepreneurship categories considered include the total early-stage entrepreneurial activity, new business formation, necessity-driven entrepreneurial activity, and improvement-driven opportunity entrepreneurial activity.
In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostl... more In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostly the aid recipient countries, which have been held responsible for aid’s shortcomings. That focus is misplaced, however, since the donor countries, through development aid, also export some of their own institutions and values to the recipient countries affecting the recipients’ rate of entrepreneurship and income. This study demonstrates how donor countries vary widely in both the type and quality of their institutions and values, leading to diverging economic outcomes. The results indicate that recipient countries should pay serious attention to who their development partner is. In particular, recipients would want to avoid aid from low institutional quality donors with perceived anti-market attitudes. Finally, it is argued that development aid might become more efficient if it moved away from the bilateral, towards the multilateral, mode.
Sir Thomas More's Utopia, published in 1516, is a classic work of how to organise a society based... more Sir Thomas More's Utopia, published in 1516, is a classic work of how to organise a society based on common property. With a unique mix of common property, institutions and sound economic insights, we argue that More built a framework for a society that could be viable in the long run. While the conditions that make Utopia work are quite restrictive, it does provide a sketch of a society where common property may not stifle long‐term development, but is associated with productive workers and people content with their lives.
Stigmatization indicates that a person possesses a condition or status that others devalue. This ... more Stigmatization indicates that a person possesses a condition or status that others devalue. This study explores different types of stigmatizing conditions and the co-occurring (intersectional) stigmas among 476 students attending a 13,000-student state university in North-East Ohio. In addition to studying the extent and intersectionality of stigma, the collected data is used to estimate some economic costs associated with it. The three most prevalent stigma conditions reported by students were depression, overweight, and poverty. Based on this study, these three conditions in particular identified in the study should be considered when setting up stigma prevention and intervention programs on university campuses. In addition to the personal benefits of an individual's healing, a simple cost analysis conducted in the study highlights very large financial returns to both universities and society of even moderate interventions.
The global recession of 2007-2009 raised an interesting question: are the European welfare states... more The global recession of 2007-2009 raised an interesting question: are the European welfare states with their large governments and extensive social safety nets more immune to business cycles than their income peers in the OECD? In this paper, we test empirically whether that has been the case in the long run. Our sample includes twenty-one OECD countries and a thirty-nine-year time period from 1970 through 2007. Our tests measure whether the level of government intervention in economies is significantly related to the variability in income growth. ______________________________________________________ JEL codes: E32, H11, I38, N10, O11, P51
Following the disintegration of the Soviet Union in December 1991, the former Soviet republics an... more Following the disintegration of the Soviet Union in December 1991, the former Soviet republics and many other Eastern European nations began their transition from socialism to capitalism. Private sector entrepreneurship, an activity that had been illegal for decades, not only became legal but it also became essential for the creation of wealth and economic progress in these countries. In this paper we examine the rates of entrepreneurial activity in these post-socialist economies, and attempt to uncover the policies and institutions that appear to be the most highly correlated with a country’s success (or failure) in promoting entrepreneurial activity. JEL Classifications: E60, H10, P20 *The authors would like to thank Ronald Balvers, Stratford Douglas, George Hammond and William Trumbull for helpful comments and suggestions.
In the last half century, developed countries have paid increasing attention to the problems of d... more In the last half century, developed countries have paid increasing attention to the problems of developing countries. Not only has the disastrously low level of economic development in large parts of the world become apparent over time, but also all the undesired side effects of enduring poverty: poor health, widespread diseases, low life expectancy, and the general lack of means of entire nations to deal with basic needs. Wealthy countries do not necessarily have purely unselfish motives when helping poorer countries through financial aid. Part of any aid constantly flows back to donors through highly stipulated procurement contracts. Aid has also increased the potential for donors to buy preferential future treatment for the business firms of their own nationality. Politically, aid can be seen as serving to buy increased international and regional clout through new political allies. Moreover, aid may bring more stability to world affairs, assuming it increases economic growth in r...
Conventional development aid, typically a service from government to government, has been a relat... more Conventional development aid, typically a service from government to government, has been a relatively poor determinant of economic growth or human development in developing countries. In this paper we test whether a distinctly grass-roots delivery mode, as is the case with missionary work, leads to a more effective dispersion of foreign aid. In addition to its mode of delivery, missionary work is also of interest as there is a known positive correlation between the growth rate of Christianity and economic development. We estimate the economic growth impacts of development aid versus missionary work variables by using empirical data from 119 countries and discuss several explanations for our empirical results.
... in America. According to Brooks, what matters to people is that they perceive to have the op... more ... in America. According to Brooks, what matters to people is that they perceive to have the opportunity not a guarantee to be successful in their lives. Therefore, having potential for well-being mobility is in the core of a happy society. Page 4. 208 Tomi Ovaska and Ryo ...
Journal of Enterprising Communities: People and Places in the Global Economy, 2014
Purpose – The purpose of this study is to focus on the development experience in the global world... more Purpose – The purpose of this study is to focus on the development experience in the global world of two small communities, Viimsi in Estonia and Magog in South Africa. These two communities were chosen as exemplars because the authors were familiar with both, and understood them to be illustrative of differing outcomes of interaction of small communities with the global economy offering the prospect of generalisation of findings to the framework and theory. Twenty years ago, both were poor, since then Viimsi has become wealthy, while Magopa remains poor. It is not believed that becoming the wealthiest community in Estonia was Viimsi’s per-determined destiny. What people of Viimsi did to make their community a success relative to the surrounding peer communities is a story of the visible as much as the invisible attributes. Design/methodology/approach – These attributes are examined using a framework the authors’ originally developed to explore the participation of Indigenous commun...
New Thinking in Political Economy: Entrepreneurial Action, Public Policy, and Economic Outcomes, 2014
In the last few decades entrepreneurship has slowly but steadily gained importance in public disc... more In the last few decades entrepreneurship has slowly but steadily gained importance in public discussions about income growth. The more economic growth in high-income countries has leveled-off, the more interested policymakers have become in finding new ways to ignite growth. At the same time, there has been a realization that foreign aid in its current form won’t be able to lift the poorest countries from poverty. There seems to be political consensus that entrepreneurship could provide a partial solution to the economic problems of both the developed and developing world. The above raises three questions, though. First, what is the connection between entrepreneurship and income growth? Second, are all types of entrepreneurship equally good in creating growth? Third, in terms of public policies, what does it take to get entrepreneurs going? In this chapter I will explore each question in some length, providing an overview of the current findings in the field. The main argument underpinning the narrative is that society’s institutional set-up is absolutely critical for any entrepreneurial renaissance. Getting that set-up wrong will guarantee that entrepreneurs will be few and far between. Fortunately plenty of evidence has accumulated over the last few decades to aid the policymakers to get the institutional policies right.
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Papers by Dr. Tomi Ovaska