States and markets 5 method takes only research and development intensity into account,
technology. Postpaid subscriptions and active prepaid accounts (that
but other characteristics of high technology are also important, such
is, accounts that have been used during the last three months) are
as knowhow, scientific personnel, and technology embodied in pat-
included. The indicator applies to all mobile cellular subscriptions
ents. Considering these characteristics would yield a different list
that offer voice communications and excludes subscriptions for data
(see Hatzichronoglou 1997).
cards or USB modems, subscriptions to public mobile data services, private-trunked mobile radio, telepoint, radio paging, and telemetry
Definitions
services. • Individuals using the Internet are the percentage of
• Business entry density is the number of newly registered limited
individuals who have used the Internet (from any location) in the last
liability corporations per 1,000 people ages 15–64. • Time required
12 months. Internet can be used via a computer, mobile phone, per-
to start a business is the number of calendar days to complete the
sonal digital assistant, games machine, digital television, or similar
procedures for legally operating a business using the fastest pro-
device. • High-technology exports are products with high research
cedure, independent of cost. • Stock market capitalization (also
and development intensity, such as in aerospace, computers, phar-
known as market value) is the share price times the number of shares
maceuticals, scientific instruments, and electrical machinery.
outstanding. • Domestic credit provided by financial sector is all credit to various sectors on a gross basis, except to the central
Data sources
government, which is net. The financial sector includes monetary
Data on business entry density are from the World Bank’s Entre-
authorities, deposit money banks, and other banking institutions
preneurship Database (www.doingbusiness.org/data/exploretopics
for which data are available. • Tax revenue collected by central
/entrepreneurship). Data on time required to start a business are
government is compulsory transfers to the central government for
from the World Bank’s Doing Business project (www.doingbusiness
public purposes. Certain compulsory transfers such as fines, penal-
.org). Data on stock market capitalization are from Standard &
ties, and most social security contributions are excluded. Refunds
Poor’s (2012). Data on domestic credit are from the IMF’s Inter-
and corrections of erroneously collected tax revenue are treated as
national Financial Statistics. Data on central government tax rev-
negative revenue. The analytic framework of the IMF’s Government
enue are from the IMF’s Government Finance Statistics. Data on
Finance Statistics Manual 2001 (GFSM 2001) is based on accrual
military expenditures are from SIPRI’s Military Expenditure Database
accounting and balance sheets. For countries still reporting govern-
(www.sipri.org/databases/milex). Data on electricity consumption
ment finance data on a cash basis, the IMF adjusts reported data
are from the IEA’s Energy Statistics of Non-OECD Countries, Energy
to the GFSM 2001 accrual framework. These countries are foot-
Balances of Non-OECD Countries, and Energy Statistics of OECD
noted in the table. • Military expenditures are SIPRI data derived
Countries and from the United Nations Statistics Division’s Energy
from NATO’s former definition (in use until 2002), which includes
Statistics Yearbook. Data on mobile cellular phone subscriptions and
all current and capital expenditures on the armed forces, including
individuals using the Internet are from the ITU’s World Telecommu-
peacekeeping forces; defense ministries and other government agen-
nication/ICT Indicators database. Data on high-technology exports
cies engaged in defense projects; paramilitary forces, if judged to
are from the United Nations Statistics Division’s Commodity Trade
be trained and equipped for military operations; and military space
(Comtrade) database.
activities. Such expenditures include military and civil personnel, including retirement pensions and social services for military per-
References
sonnel; operation and maintenance; procurement; military research
Beck, Thorsten, and Ross Levine. 2001. “Stock Markets, Banks, and
and development; and military aid (in the military expenditures of the
Growth: Correlation or Causality?” Policy Research Working Paper
donor country). Excluded are civil defense and current expenditures
2670, World Bank, Washington, DC.
for previous military activities, such as for veterans benefits, demo-
Claessens, Stijn, Daniela Klingebiel, and Sergio L. Schmukler. 2002.
bilization, and weapons conversion and destruction. This definition
“Explaining the Migration of Stocks from Exchanges in Emerging
cannot be applied for all countries, however, since that would require
Economies to International Centers.” Policy Research Working Paper
more detailed information than is available about military budgets
2816, World Bank, Washington, DC.
and off-budget military expenditures (for example, whether military
Demirgüç-Kunt, Asli, and Ross Levine. 1996. “Stock Market Devel-
budgets cover civil defense, reserves and auxiliary forces, police
opment and Financial Intermediaries: Stylized Facts.” World Bank
and paramilitary forces, and military pensions). • Electric power consumption per capita is the production of power plants and com-
Economic Review 10 (2): 291–321. Hatzichronoglou, Thomas. 1997. “Revision of the High-Technology
bined heat and power plants less transmission, distribution, and
Sector and Product Classification.” STI Working Paper 1997/2.
transformation losses and own use by heat and power plants, divided
Organisation for Economic Co-operation and Development, Direc-
by midyear population. • Mobile cellular subscriptions are the number of subscriptions to a public mobile telephone service that provides access to the public switched telephone network using cellular
Economy
States and markets
torate for Science, Technology, and Industry, Paris. Standard & Poors. 2012. Global Stock Markets Factbook 2012. New York.
Global links
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