The New Normal: A Sector-level Perspective on Productivity Trends in Advanced Economies

Dabla‐Norris, Era; Guo, Si; Haksar, Vikram; Kim, Minsuk; Kochhar, Kalpana; Wiseman, Kevin; Zdzienicka, Aleksandra

doi:10.5089/9781498334181.006

Cited by 79 publications

(67 citation statements)

References 49 publications

(32 reference statements)

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“…Moreover, two vintages of the database under the ISIC rev.4 and ISIC rev.3 classifications were fully harmonized to be consistent at the ISIC rev.4‐level as in Dabla‐Norris et al. ().…”

mentioning

confidence: 99%

Reassessing the productivity gains from trade liberalization

Ahn

Dabla‐Norris

Akcigit

et al. 2018

Rev International Economics

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This paper reassesses the impact of trade liberalization on productivity. We build a new, unique database of effective tariff rates at the country‐industry level for a broad range of countries over the past two decades. We then explore both the direct effect of liberalization in the sector considered, as well as its indirect impact in downstream industries via input linkages. Our findings point to a dominant role of the indirect input market channel in fostering productivity gains. A 1 percentage point decline in input tariffs is estimated to increase total factor productivity by about 2 percent in the sector considered. For advanced economies, the implied potential productivity gains from fully eliminating remaining tariffs are estimated at around 1 percent, on average, which do not factor in the presumably larger gains from removing existing non‐tariff barriers. Finally, we find suggestive evidence of complementarities between trade and FDI liberalization in boosting productivity. This calls for a broad liberalization agenda that cuts across different areas.

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“…Moreover, two vintages of the database under the ISIC rev.4 and ISIC rev.3 classifications were fully harmonized to be consistent at the ISIC rev.4‐level as in Dabla‐Norris et al. ().…”

mentioning

confidence: 99%

Reassessing the productivity gains from trade liberalization

Ahn

Dabla‐Norris

Akcigit

et al. 2018

Rev International Economics

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“…Existing research in strategy, innovation and entrepreneurship focuses on the implications that these New Normal conditions have for consumers (Etzioni, ), firms (Hitt et al, ) and society at large (El‐Erian, ), but we also need to better understand how actions at the micro‐level shape the New Normal business landscape at the macro‐level and vice versa. Entrepreneurs and regulators, in particular, are becoming increasingly interdependent in the New Normal business landscape for several reasons (see Abels, ; Benton, ; Davis, ; Dabla‐Norris et al, ; El‐Erian, ; Martin et al, ). First, because economic growth from existing businesses has stagnated in many fields, regulators are becoming increasingly anxious to promote and sustain high‐growth entrepreneurial ventures.…”

Section: Discussionmentioning

confidence: 99%

“…In addition, this work advances our collective understanding of the New Normal business landscape by showing that under conditions of radical technological change and frequent behavioural adaptations (Hitt et al, ; Verbeke, ), entrepreneurs and regulators face greater uncertainty and interdependence than in more mature organizational fields. These parties are especially interdependent in the New Normal business landscape because growth from existing businesses has stagnated in many fields, which gives centre stage to high‐growth entrepreneurial ventures; public pressure on governments to regulate newly emerging fields is on the increase; and financial and capacity constraints facing federal and local governments (including the state level in the USA and the member state level in the European Union) necessitate regulatory co‐creation (Abels, ; Benton, ; Davis, ; Dabla‐Norris et al, ; El‐Erian, ; Martin et al, ). The New Normal business landscape is thus in need of theory on how entrepreneurs and regulators jointly co‐create new regulatory frameworks.…”

Section: Introductionmentioning

confidence: 99%

The Emergence of Proto‐Institutions in the New Normal Business Landscape: Dialectic Institutional Work and the Dutch Drone Industry

Smolka

Heugens

2019

J Management Studies

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In the current business landscape, in which technology‐enabled entrepreneurship is part of the New Normal, regulatory institutional structures are in constant flux. Previous studies have framed the challenges facing entrepreneurs in mature organizational fields as avoiding the power of overbearing regulators long enough to establish the legitimacy of their ventures. In fields typified by New Normal conditions, however, regulatory frameworks for evaluating new technology‐enabled ventures are often still lacking. Regulators may choose to actively reach out to entrepreneurs to arrive at a better understanding of the radical technological changes and high‐frequency entrepreneurial behavioural adaptations that occur in these settings. To grasp how novel regulatory institutional structures come about in the New Normal business landscape, we conducted a processual study of the emergence of a new technology that is the Dutch remotely piloted aircraft systems (drone) industry between 2000 and 2018. Our findings show that regulatory proto‐institutions result from dialectic institutional work in the form of structured interactions between entrepreneurs and regulators. Specifically, we present a process model that reveals how new regulatory structures evolve in contexts where high levels of technological and behavioural change induce systemic uncertainty, and enlarge the interdependence between entrepreneurs and regulators. We suggest that our process theory of proto‐institutional emergence generalizes towards other organizational fields in which technology‐enabled entrepreneurship has become the main driver of growth. Theoretically, our findings speak to the literatures on institutional work, proto‐institutional emergence, and the New Normal business landscape.

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“…This trend began before the global financial crisis but may have become more pronounced since 2008 (Dabla-Norris et al, 2015). The prospects for boosting slow growth in advanced economies via increasing factor accumulation may be limited, notably for demographic factors and short to medium term drags on the demand and research and development so important to productivity and growth (Ahlstrom, 2010;Anzoategui et al, 2019;Dabla-Norris et al, 2015).…”

Section: Economic and Demographic Components Of The New Normalmentioning

confidence: 99%

Managing Technological, Sociopolitical, and Institutional Change in the New Normal

Ahlström

Arrègle

Hitt

et al. 2020

J Management Studies

169

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A New Normal environment for business has emerged in the years after the 2008 financial crisis based on numerous changes in the world's economic, technological, demographic, and sociopolitical factors. This combination of changes has created a New Normal environment for firms with major implications for managers, strategists, and entrepreneurs alike. It has resulted in an environment with new challenges and opportunities that are considerably different from what firms had to contend with in the years previous. In this paper, we present the main changes that characterize the current New Normal business environment and highlight some key implications for strategy and management. Then, we present the nine articles in this special issue dealing with different dimensions of this new environment for firms. Subsequently, we outline some future research questions that could help to advance our knowledge of the New Normal environment and its implications for firms and management theories. In examining the New Normal, it is important to be reminded that the world is indeed round and even small actions on one side of the globe can have a major impact on organizations on the other side of the globe.

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The New Normal: A Sector-level Perspective on Productivity Trends in Advanced Economies

Cited by 79 publications

References 49 publications

Reassessing the productivity gains from trade liberalization

Reassessing the productivity gains from trade liberalization

The Emergence of Proto‐Institutions in the New Normal Business Landscape: Dialectic Institutional Work and the Dutch Drone Industry

Managing Technological, Sociopolitical, and Institutional Change in the New Normal

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