Characteristics of the large corporation-based, bureaucratic model among oecd countries - an foi model analysis

Abstract

Deciding on the development path of the economy has been a delicate question in economic policy, not least because of the trade-off effects which immediately worsen certain economic indicators as steps are taken to improve others. The aim of the paper is to present a framework that helps decide on such policy dilemmas. This framework is based on an analysis conducted among OECD countries with the FOI model (focusing on future, outside and inside potentials). Several development models can be deduced by this method, out of which only the large corporation-based, bureaucratic model is discussed in detail. The large corporation-based, bureaucratic model implies a development strategy focused on the creation of domestic safe havens. Based on country studies, it is concluded that well-performing safe havens require the active participation of the state. We find that, in countries adhering to this model, business competitiveness is sustained through intensive public support, and an active role taken by the government in education, research and development, in detecting and exploiting special market niches, and in encouraging sectorial cooperation.

Entrepreneurship in the Raw Materials Sector

“…This study uses the FOI model to evaluate the development paths taken by the OECD coun tries and then identifies a Green growth factor that is correlated with the Future potential, the first of the three pillars of FOI. A detailed description of the method is available in Bartha & Gubik (2014), here only a short summary is provided.…”

“…Source: own work based on Bartha & Gubik 2014 paper I focus on the F-index, since it is correlated with many of the variables that are typically used to measure green growth.…”

“…This paper focuses on the OECD countries, uses the FOI model (Bartha & Gubik 2014) to evaluate their performance in the three main pillars of development (Future, Outside, and Inside potential), and investigates how green growth fits into the development model of the OECD countries. This study aims to answer two main questions: Is there a green growth pat tern emerging among the OECD countries; and Which OECD countries perform the best in green growth?…”

Same old story: Hungary’s development over the 2000–2020 period

“…In my study I calculate the position of Hungary and the other OECD members along three main development pillars (future, outside, and inside pillars) for 2000, 2010, and 2020. The methodology of the FOI model was described in detail in Bartha and Gubik (2014); here I only summarise the main points.…”