P.V. Stroev, D.V. Firsov and S.B. Reshetnikov

DOI: https://doi.org/10.6000/1929-7092.2019.08.35

Published: 06 August 2019

Abstract: Understanding the phylogenetic origin of a concept of innovation stands as the main precipice in establishing a sustainable concept of innovation. And as a scientific direction in studying emergence, distribution and commercialization of innovations. Primary Novelty of present article is expressed through analysis of neoindustrialization as a process of transition to a new economic paradigm through renewal of industrial infrastructure and its form of organization in a Technetronic phase of development. Comparative, comprehensive and factor analysis stands as the main methodology for the present article. Primary data consists of government and commercial statistics. The empirical analysis shows the importance of the vertically integrated structures in the course of new cluster development as well as their weight and importance in the development of the modern digital economy.

Results of a research of Economist Intelligence Unit in 82 countries of the world say that such countries as Mexico or China, quickly improve the skills in the field of innovations. The research allowed being elicited one remarkable fact: the countries with the average level of economic welfare have additional benefits that introduction of domestic innovative developments stimulates also faster development of foreign experience.

Keywords: Digital economy, clusters, innovation, E-governance, E-health, E-education, E-business.

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Oluremi Davies Ogun

DOI: https://doi.org/10.6000/1929-7092.2019.08.36

Published: 06 August 2019

Abstract: A general review of approaches to equilibrium real exchange rate was undertaken. The review covered most of the theoretical, methodological and empirical literatures that had been developed in the attempt to overcoming the measurement problems associated with the concept. The distinct approaches reviewed in the paper included, exchange rate equations with nominal and real disturbances, the purchasing power parity doctrine, productivity approach, macroeconomic balance, varieties of exchange rate equation models, and, behavioral equilibrium exchange rate approach. Although the models were generally theory-based and reasonably well motivated, a comprehensive evaluation of the appropriateness of some of the theoretically identified fundamentals might be a most desired status credibility check.

Keywords: International finance, open economy macroeconomics, economic growth of open economies.

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P.N. Brusov, T.V. Filatova, N.P. Orekhova, V.L. Kulik and I. Weil

DOI: https://doi.org/10.6000/1929-7092.2019.08.37

Published: 06 August 2019

Abstract: In this paper we develop for the first time a new approach to ratings of the investment projects of arbitrary durations, which could be applied to investments of any area of economy and in particular to energy projects.The ratings of such energy projects, as "Turkish stream", "Nord stream-2", energy projects relating to clean, renewable and sustainable energy, as well as relating to pricing carbon emissions (McAleer et al., 2018a,b,c; 2019) could be done using developed here new rating methodologies. In our previous papers the new approach to the ratings of the long–term investment projects has been developed (Filatova et al., 2018). The important features of that consideration are as following: 1) The incorporation of rating parameters (financial "ratios"), used in project rating and playing a major role in it, into modern long–term investment models, 2) The adequate use of discounting of financial flows virtually not used in existing project rating methodologies. Here, for the first time, we incorporate the rating parameters (financial "ratios"), used in project rating, into modern investment models, describing the investment projects of arbitrary durations. This was much more difficult task then in case of the long–term investment projects, considered by us in previous papers. We work within investment models, created by authors. One of them describes the effectiveness of investment project from perspective of equity capital owners, while other model describes the effectiveness of investment project from perspective of equity capital and debt capital owners. New approach allows use the powerful instruments of modern theory of capital cost and capital structure (BFO theory) (Brusov et al., 2015, 2018) and modern investment models, created by the authors and well tested in the real economy to evaluate investment project performance, including energy projects.

In our calculations we use Excel technique in two aspects: 1) we calculate WACC at different values of equity costs k0, different values of debt costs kd and different values of leverage level L=D/S, using the famous BFO formula; 2) we calculate the dependences of NPV on coverage ratios as well as leverage ratios at different values of equity costs k0, different values of debt costs kd and different values of leverage level L.

Keywords: Arbitrary duration investment projects, rating, rating methodology, discounting of financial flows, Brusov–Filatova–Orekhova theory, coverage ratios, leverage ratios.

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Obianuju E. Okeke-Uzodike and B. Dlamini

DOI: https://doi.org/10.6000/1929-7092.2019.08.39

Published: 06 August 2019

Abstract: The emergence of the digital revolution has obligated governments all over the world to be more accessible, effective and accountable in the provision of public services. The South Africa government has implemented various Information and Communications Technology (ICT) enabled platforms in engaging citizens in decision-making, a resultant effect of high world E-government Development Index (EGDI) rating for the country. Irrespective of the rating, the citizens have resorted to public violence as a means of communicating about unsatisfactory service delivery issues. The South African government has continued to witness numerous service delivery protests, resulting in destruction of public property, injury and death of innocent citizens. This article therefore evaluates the application of e-participation in government decision-making, using a three-dimensional framework of e-enabling, e-engaging and e-empowering. The findings show that structural challenges exist that limit the achievement of the good intentions of e-participation. The article relies heavily on existing data and focuses at local municipal level, which is considered the closest point of contact between government and citizens.

Keywords: Government, e-participation, citizen, service delivery, local municipal level, South Africa.

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C.E. Eresia-Eke and E.S. Boadu

DOI: https://doi.org/10.6000/1929-7092.2019.08.46

Published: 06 August 2019

Abstract: In a bid to improve service delivery in South Africa, the government has created a government-wide monitoring and evaluation (M&E) system that would help gauge performance across all spheres of government. This has compelled public sector institutions to adopt and implement M&E systems mandatorily, even when they are not necessarily ready for it. The unpreparedness inevitably perforates the ability of M&E systems to credibly support performance improvement in public sector institutions and it is problematic. To some extent, the practice of M&E in the public sector seems to be for purposes of compliance rather than the ideal of performance improvement. This qualitative study investigates the readiness of South African public sector institutions for M&E, through the perspectives of Managers primarily in the M&E space. Findings reveal mixed signals of M&E readiness. For instance, the factors motivating the creation of the M&E system and the calibre of staff championing it, seem to suggest M&E readiness. Conversely, the non-availability of capacity to support the system and the potential response of staff to negative information generated by M&E signal non-readiness. The import of this is that readiness assessments specific to institutions have to be conducted as a basis for determining areas where the prerequisites for M&E are lacking. This should then inform remedial efforts that ultimately help to improve the potency of the M&E system.

Keywords: Monitoring, Evaluation, Readiness assessment, Public sector, Performance management.

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