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on Transition Economics |
| By: | Anna Iara; Iulia Traistaru |
| Abstract: | The transition to a market economy and increased economic integration have fostered regional disparities in Central and Eastern European countries. This paper investigates whether and to what extent wages could act as an equilibrating mechanism in these countries by adjusting to local market conditions. Using regional data for the 1990s, we estimate static and dynamic wage curve models for Bulgaria, Hungary, Poland and Romania. We find empirical evidence for a wage curve in Bulgaria, Hungary and Poland suggesting that wages could help equilibrate labour markets following labour demand shocks. In the case of Romania, the unemployment elasticity of pay is not significantly different from zero. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p191&r=tra |
| By: | Maria Manuela Nêveda Da Costa; Jianjun Ji |
| Abstract: | Some of the most controversial effects of China's post-1978 economic reforms have been on regional income disparities and on the divide between urban and rural development. How important are those income disparities? And how do they affect the elderly, who are perhaps the most vulnerable to the changes brought by China’s transition? What is the government’s role in providing income support? This paper examines the rural-urban disparities in income, expenditures, and government support among the elderly in China. We test for significant differences in levels and sources of income and in types of expenditures using a nationwide survey on rural and urban elderly conducted by China’s Elderly Scientific Research Center in 1992. This survey consists of two separate sets of responses, one for urban areas (9,889 respondents) and the other for rural areas (10,194 respondents), and provides demographic, socioeconomic, and health characteristics of the elderly. In addition, we propose to investigate the type and level of government income support programs at the local and state level. The findings are evaluated and policy implications discussed in the context of China’s transition to a market economy and choice of development strategies. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p444&r=tra |
| By: | Dimitris Kallioras; Georgios Fotopoulos; George Petrakos |
| Abstract: | The process of Central and Eastern European Countries’ (CEEC) transition from central planning to market economy has resulted in industrial restructuring and labor reallocation across branches and regions. The paper identifies patterns of industrial activity in Bulgaria, Romania, Slovenia, Hungary and Estonia on a basis of employment data, as a proxy for regional industrial structures, at NUTS III spatial level, disaggregated by manufacturing branches according to NACE rev. 1 two – digit classification. Theil entropy index is used in the analysis in order to evaluate patterns of regional specialization (defined as the distribution of the shares of a sector ? in a region ?) and sectoral concentration (defined as the distribution of the shares of a region in a sector ?). The over time evolution of the process of industrial restructuring represents a proper baseline for the likely distributional implications of the EU enlargement for these countries. Key Words: Bulgaria, Romania, Slovenia, Hungary and Estonia, industrial restructuring, industrial mix, competitiveness and growth. JEL Classification: L16, R11, R12. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p89&r=tra |
| By: | Mihails Hazans |
| Abstract: | The papers analyses regional differences in EU referenda results in Estonia, Latvia, and Lithuania. In each of the three countries, other things being equal, high income regions were significantly more pro-European than low-income ones, while regions with a high share of ethnic minorities were significantly more opposed to the enlargement than other regions. The ethnic effect was strongest in Latvia and weakest in Estonia. These findings clearly indicate necessity of stronger efforts both in integration of the Baltic societies and in the promotion of reliable EU information, especially in less developed regions. On the other hand, we confirm the findings from earlier referenda that support from EU membersip does not come primarily from regions and groups that are likely to benefit from EU-wide redistribution. In Latvia and Estonia the regions bordering with Russia or Belarus were substantially less in favour of EU membership than other regions (controlling for ethnic composition and economic factors). In Latvia, regions on the borders with EU accession countries were significantly more pro-European than other regions. Keywords: European Union, European integration, cross-border development, ethnic minorities, regional income differentials. JEL Categories: D72, J15, P52, R1 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p138&r=tra |
| By: | Krister Sandberg |
| Abstract: | This paper examines the provincial pattern of growth in China during the period 1985–2000, testing the hypothesis that provinces with similar growth rates are more spatially clustered than would be expected by chance. The provincial economic growth is explained by the distribution of industrial enterprises, foreign direct investment, infrastructure, and governmental preferential policies. The neoclassical hypothesis of convergence is also tested. Indications of unconditional convergence does occur during the periods 1985–2000 and 1985–1990. In addition, conditional convergence is found during the sub-period 1990–1995. Evidence of spatial dependence between adjacent provinces has also been established, and in the econometric part, solved by a spatial lag, or alternatively a spatial error term, in the growth equation. Keywords: GRP-growth, Chinese provinces, Spatial dependence Classification [JEL]: O18, R11, R12 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p596&r=tra |
| By: | Alicia Garcia-Herrero (Bank of Spain); Sergio Gavila (Bank of Spain); Daniel Santabarbara (Bank of Spain) |
| Abstract: | The Chinese banking system, characterized by massive government intervention, poor asset quality and low capitalization, has started a reform process based on three main pillars: (i) bank restructuring, through the cleaning-up of non-performing loans and public capital injections, particularly in the four largest state-owned banks; (ii) financial liberalization, with the gradual flexibilization of quantity and price controls, the opening-up to foreign competition and cautious steps toward capital account liberalization; and (iii) strengthened financial regulation and supervision, coupled with efforts to improve corporate governance and transparency. Although the reform is still ongoing, our preliminary assessment indicates that changes are needed for the reform to be fully successful. Asset quality has improved, particularly in the recapitalized banks, but there is a high risk of a new build-up of non performing loans. Capitalization has increased in the largest banks, as a consequence of the government capital injections, but it generally remains low and profitability has fallen even further. China’s huge financing needs, to maintain high economic growth, and its commitment to fully open up its banking system to foreign competition urgently require a more comprehensive and time-bound strategy, with a long-term vision of the desired structure of the Chinese banking system. Bank recapitalization should be completed immediately, not only to ensure bank soundness, but also to increase profitability, which could be affected negatively as competition increases with full financial liberalization. Bank recapitalization, however, needs to be accompanied by a radical improvement in corporate governance, which would clearly be facilitated by a change in the property structure. |
| Keywords: | Chinese financial system, financial reform, bank restructuring, financial liberalization, bank regulation and supervision. |
| JEL: | E44 E66 G2 G21 |
| Date: | 2005–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0508010&r=tra |
| By: | Peder Axensten; Zhongxin Chen; Shenghe Liu |
| Abstract: | This paper is on work in progress. The China Model exists and runs fast and usually reliably although it still has very simple behavioural modules that do not produce very reliable results. The purpose of the paper is to present the structure, content, and current state of validity of the model. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p631&r=tra |
| By: | Viktor Trasberg |
| Abstract: | The Baltic countries’ local governments have been functioned during the last decade in a permanently changing environment. Like other transition countries, they inherited from the past extremely centralized administrative system. Along with radical reforms, administrative system was decentralized and various functions were devolved from central to lower levels of government. Despite that, municipalities are still fiscally strongly dependent from central authorities. Often their fiscal capacity is not adequate to act in accordance with functions stipulated by laws. Many local governments’ revenues from taxes and user-charges are insufficient to finance efficiently their expenditures. Disparities in municipalities’ fiscal situation are correlated with unbalanced regional growth, social degradation in the low-income regions and growing differentiation by municipalities’ residents on access to education and healthcare. Membership of the European Union brings new tasks and responsibilities for the Baltic local governments. Municipalities should increase their economic sustainability and enhance administrative capacity to explore EU accession funds and implement EU policies. Considering the above-mentioned problems, the paper focuses on current fiscal situation of local governments in the Baltic countries. The main interest is to analyze local municipalities’ revenue level and structure, expenditure composition and fiscal autonomy conditions |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p153&r=tra |
| By: | Jelena Šišinaèki; Ivana Rasic; Valerija Botric |
| Abstract: | Most transition economies have experienced a prolonged periods of high unemployment rates and decline of the growth rates at the beginning of transition process. However, after the initial decline in the economic activity, a period of stronger growth rates was recorded in most of the transition countries. Many analyses were done on this initial phase of transition process so we are concentrating on more successful period of transition process. Through the analysis of a regional gross domestic product dynamics in Croatian regions and several other European Union Candidate Countries we are identifying common development patterns in selected countries. Furthermore, since the unemployment is severe problem in most of the transition countries in our sample, and the increasing employment is one of the goals of the European Union, we expect that this issue will receive greater attention in the future. Due to the fact that regional structural developments were not sufficiently analysed, at least not in Croatia, we hope that this comparative study will contribute to the existing literature. Previous studies confirm that the economic growth during the more successful phase of transition was not strong enough to help to clear the labour market in selected countries. But these results are predominately concentrated on the country, and not on the regional level. Therefore, we analyse regional development in order to identify whether there are common patterns in Croatian regions with regions in other transition countries. We also compare our set of indicators with those in the European Union regions, particularly those geographically closer to Croatia. The main obstacle to regional analysis in Croatia is the lack of adequate statistical data. Therefore, first part of our paper consists of generating the relevant indicators. Since the paper is oriented to analysis, we do not focus on methodological problems. We are, however, aware of the limitations imposed on the interpretations of our results due to the fact. Key words: RGDP, unemployment, comparative regional analysis. JEL Classification: R19, J69, R11. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p132&r=tra |
| By: | Tadeusz Markowski |
| Abstract: | The paper deals with urban development processes in Poland in the historical context. These processes are confronted with Western European urban development pattern. The author focuses its considerations on specific developments and distortion aspects like historical huge scale war devastations and large scale developments from the period of centrally planned economy. The influence of these events on dynamic and cycles of present-day urban processes and urban policy challenges is analyzed. In conclusions author suggests that Poland has own specific business and urban cycles, which makes Poland different than its neighboring countries. Past historical development has left is a strong footprint which should be taken very seriously in contemporary national urban policy. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p365&r=tra |
| By: | Annekatrin Niebuhr; Silvia Stiller |
| Abstract: | While barriers to trade between EU-15 and accession countries have been completely abolished on May 1st 2004, other integration impediments remain to exist in the enlarged EU. These will steadily decrease within the next years, e.g. by new member states joining the Schengen Treaty and Euro area. A significant outstanding integration step is the liberalisation of labour mobility between EU-15 and new member states which will be realised not later than 2011. In this context it is often argued that the free movement of labour could worsen labour market problems in the former EU-15, especially in regions neighbouring the new member countries. This paper provides an assessment of the impact of enlargement on labour markets in the German-Polish border region. As a starting point for the analysis, current labour market conditions and income disparities in the German-Polish border region are analysed. Furthermore, the paper summarises relevant implications of migration theories and gives an outlook on the development of factors determining cross-border labour migration in the German-Polish border region. Finally, different estimates of migration and commuting potential affecting labour markets in the German-Polish border region until 2020 are discussed. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p234&r=tra |
| By: | Sanjay G. Reddy (Department of Economics, Barnard College, Columbia University); Camelia Minoiu (Department of Economics, Columbia University) |
| Abstract: | We evaluate the claim that world consumption poverty has fallen during the 1990s in light of alternative assumptions about the extent of initial poverty and the rate of subsequent poverty reduction in China, India, and the rest of the developing world. We assess the extent of poverty using two indicators: the aggregate poverty headcount and the poverty headcount ratio, and consider two international poverty lines that are widely used ($1.08/day and $2.15/day 1993 PPP). We find that under some of the assumptions considered, world poverty has risen. We conclude that, because of uncertainties in relation to the extent and trend of poverty in China, India, and the rest of the developing world, world poverty may or may not have increased. The extent of the increase or decrease in world poverty is critically dependent on the assumptions made. Our conclusions suggest the importance of improving the quality of global poverty statistics. |
| Keywords: | world poverty, sensitivity analysis, China, India |
| JEL: | I32 I30 O53 |
| Date: | 2005–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0509005&r=tra |
| By: | Andrea Gebauer; Chang Woon Nam; Rüdiger Parsche |
| Abstract: | At the end of June 1999 the intra-EU duty free shopping was abolished among the fifteen member nations. The opponents of this resolution argued that such a tax-free sales sector created jobs EU-wide and hardly reduced the value added and excise tax revenue of individual countries. In their opinion, duty free trade not only contributed to the reduction of travel fare within the EU but could also be characterised as a supplement to the normal retail trade for some products. Such ‘old’ ideas are increasingly popular in some Eastern European EU candidates where they are preparing for the introduction of the Single Market and EU membership in the near future. This study primarily shows that the arguments mentioned above were neither significant enough nor conclusive to maintain the intra-EU duty free shopping. Furthermore, the abolition of such tax free sales was approved in the EU in order to ensure the allocation efficiency of the VAT and excise tax system within a single market. Several arguments against the intra-EU tax free shop-ping examined in the study provide some helpful policy orientations for EU membership candidates. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p204&r=tra |
| By: | Tuuli Juurikkala; Olga Lazareva |
| Abstract: | In the planned economy firms were made responsible for providing their workers with social services, such as housing, day care and medical care. In the transforming Russia of the 1990s, social assets were to be transferred from industrial enterprises to the public sector. A law on divestment was put into force but it provided mostly general principles. Thus, for a period of several years, property rights over a major part of social assets, most notably housing, were not properly defined as the transfer decisions were largely left for the local level players to make. Strikingly, the time when assets were divested varied considerably across firms. In this paper we take a political economy approach and utilize recent survey data from 404 medium and large industrial enterprises in 40 Russian regions to study the effects different forms of bargaining between the firm and the municipality may have on the timing decisions. In particular, we apply survival data analysis to explore the determinants of the divestiture timing. Our results show that the firms which divested assets later receive more benefits from the local authorities, especially in places where there are more benefits to extract (i.e. the local budget is richer). Further, we find evidence that the firms which transferred assets later performed relatively worse in 2002 in terms of profitability, productivity and investments. Finally, the data shows that poorly defined property rights have an adverse effect on the incentives to invest in social assets, and hence on the quality of public service provision. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p637&r=tra |
| By: | Dražen Derado |
| Abstract: | Economic integration in Europe will have significant effects not only on participating countries, but also on countries remaining outside of the EU-structures. Starting from the theory of custom union and the trade creation and trade diversion effects, this paper tries to apply the theoretical inferences relating to the countries participating in economic integration to those countries which do not take part in it. The ex ante-analysis focuses mainly on long-term dynamic effects which follow from increasing export possibilities and advantages from economies of scale. Taking into account the foreseen dynamics of trade barriers elimination as well as the effects of trade liberalization so far, the paper estimates the expected effects of further trade liberalization and the adjustment costs arising from increased competition and changing pattern of specialization. In doing so, it makes use of the export similarity index and the methodology of intra-industry trade measurement. Key words: customs union, economies of scale, intra-industry trade, EU, Croatia |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p236&r=tra |
| By: | Andrej Horvat; Gunther Maier |
| Abstract: | Based on the review of literature and our own conceptual considerations, we show that absorption problems regarding the EU Structural Funds may be important. Our brief covering of some general macroeconomic aspects of absorption problems brings us closer to the central topic of our paper, namely, the question of how to measure the administrative capacities of particular Candidate Countries for Structural Funds. First, we describe a suitable methodology for calculating the administrative absorption capacities of Candidate Countries. We then turn to some of the Candidate Countries’ institution-building activities in preparation for the EU’s Structural Policy. This shows that the process of preparing programming documents was the central point of the overall institution-building exercise. At the end of this chapter we present calculations on administrative capacities in five Candidate Countries: the Czech Republic, Hungary, Slovakia, Estonia and Slovenia, respectively. These calculations are based on previous calculations by the European Commission and on the strategic documents negotiated between the Commission and these Candidate Countries before the end of 2003. By calculating the key indicators of administrative capacity, we offer some preliminary statements regarding the present administrative capacity in a particular prospective new Member State and provide additional information on the overall absorption capacity of the countries in the 2004-2006 programme period. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p591&r=tra |
| By: | Jaak Kliimask; Garri Raagmaa |
| Abstract: | The aim of this empirical contribution is to analyse social infrastructure (SI) planning and development practices in Estonian local communities. The SI considered: schoolhouses, kindergartens, sports halls, cultural houses and the like, were extensively built by collective farms and local enterprises during the 1970s and 1980s. During the post-socialist transition period, spatial structures have gone through drastic changes. Especially remote rural and old industrial areas lost a major part of their employment and remarkable share of population. The SI facilities are partly out of use because of low demand and high operation costs, simultaneously, they would need remarkable investments to be renovated and upgraded. This paper consists of three principal parts. First, we analyse a historical development of planning practices in the Soviet Union and its consequences to the settlement structure. Secondly, we present an ad hoc typology and genesis of rural settlements and service centres; using census data, we describe their socio-economic and demographic (social) transition of the 1990s. Finally, we analyse comparatively the problems and planning practices of SI in selected communities. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p534&r=tra |
| By: | Anna Dokukina |
| Abstract: | The range of up-to-date means to achieve success in business is rather extensive. The question is how to use them effectively taking into consideration conceptual changes in modern business strategies. Characteristics of development of the firm as a learning organization and crea-tion of corporate universities has been discussed during last decades by corporate and human resources managers, economic consultants and business education professionals. Most researchers emphasize the role of a corporate training system as an important competitive advantage in the dynamic conditions of modern business activity. Interest of Russian businessmen and economists to the new ways of solving managerial and production tasks has emerged quite recently. The pursuit of effective decision in management and production corresponding to the actual business strategies leads to the increase of significance of intellectual capital as a base of a system of com-petitive advantages of Russian enterprises. The current and planned research is devoted to the problem of pursuit and crea-tion of unique resources such as systems of corporate training and knowledge manage-ment which are main elements of strategic planning and management of a firm. The framework of research includes the following main points: · Analysis of the modern market development and related new business con-cepts. · The role of intellectual capital as an important part of a business life. · Dynamics of business environment and the necessity of learning organiza-tions’ creation and development. · Modern Corporate Universities as the most important institute of the enter-prise. · International and Russian tendencies in accumulation and application of intel-lectual capital and creation of Corporate Universities. The present article is dedicated to the consideration of the reasons and directions of conceptual changes in the business activity realization; to the problems of the devel-opment of business enterprise as learning organization and creation of the corporate universities; to the experience and tendencies of the concentration and realization of in-tellectual capital. Key words: entrepreneurship, economics of the firm, competition, intellectual capital, learning organization, knowledge management, corporate university. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p109&r=tra |
| By: | Zlatan Fröhlich; Sanja Malekovic |
| Abstract: | The regional differences in entrepreneurial activity are only one manifestation of the large regional differences in Croatia. From this it is obvious that Croatia needs regional policy as a part of its overall development policy. Contemporary regional policy gives strategic importance to industrial restructuring and other structural adjustments in regions that lag in development. However, it is not limited to relatively undeveloped regions, since rich regions can create demand that can “pull” growth in relatively less developed regions. A limitation on the implementation of modern regional policy in Croatia is the inherited doctrine of the reconstruction of war affected areas. This doctrine is no longer appropriate to the needs of new regional policy, which must be formulated in the context of EU accession. This is especially important considering that the EU emphasizes that member states must be in a position to withstand competitive pressures in the single market as a key condition for accession. And regional policy has a special role in this. The next limitation lies in the strong sectoral rather than integral approach. This is best seen in the many uncoordinated actions of various ministries and other government bodies. Furthermore, the legal framework is highly compartmentalized, so that Croatia does not have a single legal act that systematically regulates regional development on the whole territory of Croatia. Finally, the greatest limitation lies in the low level of ability of public administration, which is particular deficient in regional planning, programming and evaluating the implementation of development programs. These problems can be overcome through the following four goals of regional policy, which will be as recommendations discussed in the paper: • Reach national cohesion and sustainable development of local and regional communities. • Develop human resources with the aim of maintaining the population by opening prospects for work and employment. • Preserve urban, rural and littoral space, value it and using it optimally • Develop competitive, restructured sectors with special emphasis on the development of small and medium enterprises and the entrepreneurial environment. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p118&r=tra |
| By: | Cornelis A. Los (EMEPS Associates, Inc.); Bing Yu (Kent State University, Graduate School of Management) |
| Abstract: | This paper identifies such fundamental characteristics as the lack of ergodicity, stationarity, and independence, and it identifies the degree of initial persistence of the Chinese stock markets when they were more regulated. The index series are from the Shanghai (SHI) stock market and Shenzhen A-shares (SZI) and B-shares (SZBI) stock markets, before and after the various deregulations and reregulations. Accurate and complete signal processing methods are applied to the complete series and to their sub-periods. The evidence of lack of stationarity and ergodicity can be ascribed to two causes: (1) the initial interventions in these stock markets by the Chinese government by imposing various daily price change limits, and (2) the changing trading styles in the course of the development of these emerging stock markets, after the Chinese government left these equity markets to develop by themselves. By computing the markets' monofractal Hurst exponents (and its accuracy range with a new statistic), using wavelet multiresolution analysis (MRA), we identify the markets' subsequent degrees of persistence. The empirical evidence shows that SHI, SZI, and SZBI are moderately persistent with Hurst exponents slightly greater than the Fickian 0.5 of the Geometric Brownian Motion. It also shows that these stock markets were considerably more persistent before the deregulations, but that they now move much more like geometric Brownian motions, i.e., efficiently. Our results also show that the Chinese stock markets are gradually and properly integrating into one Chinese stock market. Our results are consistent with similar empirical findings from Latin American, European, and other Asian emerging financial markets. |
| Keywords: | Long-term dependence, degrees of persistence, Hurst exponent, wavelet multiresolution analysis, Chinese equity markets |
| JEL: | C15 C33 C53 G13 G15 G18 |
| Date: | 2005–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpfi:0508008&r=tra |
| By: | Jekaterina Dmitrijeva; Mihails Hazans |
| Abstract: | Monthly panel (1998-2003) data from regional labor offices in Latvia are used to conclude on the specificity of matching process in this transition economy and to evaluate the impact of active labor market policy programs on outflows from unemployment. Results confirm that the hiring process is driven by stock-flow matching rather than by traditional matching function: stock of unemployed at the beginning of the month and vacancies arriving during the month are the key determinants of outflow from unemployment to employment, while stock of vacancies and inflow of unemployed are not significant. In the context of such “correct” specification of the matching process, the policy evaluation is performed. We find positive and very significant effect of training on outflows from unemployment to employment, thus providing some evidence against cuts in training expenditures. Fixed effects estimates allow discriminating between regions in terms of matching efficiency. JEL: J41, J64, J68 Keywords: stock-flow matching, augmented matching function, labour market policy, training |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p360&r=tra |
| By: | Jan Stachowicz; Joanna Machnik-Somka |
| Abstract: | Pace and success of transformation of traditional national economies into competitive network-based economies in a global environment in such countries like Poland - countries currently facing intensive economic reconversion - is mainly depending on the role and capacities of regional economic centres in initiating and developing pro-innovative processes. These economic centres, among which the Slaskie Voivodeship, are often characterised by long tradition in heavy, labour- and raw materials intensive industries such as the mining, metallurgic and chemical sector. The Slaskie Voivodeship is placed among the leading regions of Poland as for its social and economic potential. It is characterised by a high number of inhabitants (4.8m. people) living on a relatively small area (3.9% of Poland), resulting in a high population density (3.2 times more than the country’s average). In 2000, the Slaskie Voivodeship was placed second in Poland (behind the Mazowieckie Voivodeship) as concerns its economic potential measured in Gross Domestic Product . The Slaskie Voivodeship is currently playing a pilot role in Poland in developing networks and systems around a regional innovation strategy. More than 150 organisations (R&D institutes, institutes of higher education, SMEs, large companies, local governments, NGO’s) are involved in this process. The paper will – based on the case study of the Slaskie Voivodeship - include problem areas and solutions concerning development of pro-innovative co-operation networks and will discuss the issue of trust between organisations as critical factor in innovation strategy building and implementation processes. The document will also present a methodology related to intellectual capital, among which social capital, as key-condition in the above-mentioned process. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p552&r=tra |
| By: | Raymond Struyk; Douglas Wissoker; Ioulia Zaitseva |
| Abstract: | The Budget Code of the Russian Federation requires that local self-governments prepare their budgets for the next year taking into account the likely economic situation in that year. To date these governments have had little guidance to use in preparing their budgets. This paper reports the results of initial steps to develop a procedure for forecasting key economic parameters at the local level. “Local level” is defined as cities that are capitals of Subjects of the Federation (similar to U.S. states); generally these are cities of over 100,000 population. Econometric models are reported for employment, manufacturing production, retail sales, average wage rates, volume of newly constructed housing, and fixed capital formation. The choice of estimation procedures was significantly constrained by data availability. The current document is an interim report, prepared after the basic econometric work has been completed but before the model is tested in actual forecasting. The paper consists of six further sections. The first lists the economic variables to be projected. The second describes the economic logic underlying the models specified for each variable. The third section then outlines the econometric strategy. This is followed in the fourth section with an overview of the data employed in the estimates. The fifth section presents the final models. The paper closes with a short discussion of the plans for future work in this direction. In the next phase of the work the forecasting qualities of these models will be evaluated. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p318&r=tra |
| By: | Nenad Starc |
| Abstract: | The paper deals with development management in a transition country (Croatian case) and focuses on preparation of strategic development documents on regional and local level. Socialist legacy obvious in still existing formal approach to preparation and adoption of development documents is discussed first. Inadequacies of such a practice are observed and analysed including the gap between strategic document production and actual decision making. A participative, goal oriented methodology for preparing development documents is proposed next. Preparation steps are listed on the basis of common methodology required by European Union structural funds. Adjustments necessary to make the methodology applicable in the Croatian socio-economic environment are derived from various case studies. Main steps are described and explained as follows: i) estimation of readiness of potential beneficiaries, ii) kick-off seminar, iii) establishment of development councils and development teams, iv) SWOT analysis, v) participative identification of problems, goals and measures, vi) drafting the programme, vii) harmonisation with political programmes, current development programs and plans and the budget, viii) public hearing, ix) drafting the action plan, x) formal adoption and xi) monitoring and evaluation. Implementation problems are discussed in the remainder. Main observed barriers to a sound programme based local development management are: lack of participation in strategic decision making, lack of institutional considerations in programme preparation, inappropriate management capacity of local governments and, before all, lack of political will to base development management on appropriate documentation. The paper concludes with policy recommendation. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p188&r=tra |
| By: | Lauri Dieter Frank; Sarolta Németh |
| Abstract: | Estonia has shown somewhat remarkable developments in the telecommunications – or more precisely, building up an efficient network of modern information and telecommunications technologies (ICTs) for the Information Society. This paper takes a look at the development of telecommunications infrastructure networks and services in Estonia. The study also evalu-ates what other countries could learn from Estonia. More specifically, by this study we at-tempt at answering whether Estonia is as successful as data suggests, what the factors behind this success are, and whether there are lessons to be learned for the entire European territory. The paper introduces to the development of the telecommunications infrastructure and ser-vices in Estonia, by presenting facts and figures, and comparing the progress of the country with that of other European countries. It also discusses the measures that have helped Estonia on the road to Information Society. The results show that in summary the success of Estonia seems to have been a result of three things: Proximity of Finland and Sweden, active regula-tion and relative early liberalization, and a competition and entrant friendly market environ-ment. The paper is an outgrowth of the ESPON (European Spatial Planning Observation Net-work) project 1.2.2 “Telecommunications Services and Networks: Territorial Trends and Ba-sic Supply of Infrastructure for Territorial Cohesion” (see: http://www.espon.lu). |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p258&r=tra |
| By: | Jan Capek |
| Abstract: | The e-government should start with electronic collaboration of governmental departments. Several services, like email, video conference, discussion forums, use of shared documents, etc. should be supported for assisting the efficient and productive collaboration of remote governmental departments. Since the functionality of the provided services is well known, no detailed description of each service phase is provided. The services for citizens are offered through so called governmental portals. The typical use of a governmental portal is to provide information to the citizens and to support several types of citizen–government transactions (e.g. issuing birth certificates, submitting tax forms, conducting electronic payments, etc.). These services open security requirements for an e-Government platform. Their compilation has been based on the security requirements derived for each independent service suite, for the Authentication processes |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p619&r=tra |
| By: | Dubravka Jurlina Alibegoviæ; Željka Kordej De Villa |
| Abstract: | This paper explores the role of different levels of government in the design, implementation and enforcement of environmental regulatory measures, including environmental financing mechanisms. The first section presents basic theoretical insights of fiscal federalism. Further, it reviews factors which most affect the decision regarding the governmental level to be responsible for environmental protection – externalities, information, costs, interjurisdictional competition, and government capabilities. The second section elaborates the institutional and administrative framework of environmental policy and questions why local authorities are reluctant to take a more active role in shaping and financing environmental policy. One «success story» of local initiative in Croatia is described. Additionally, this section presents some evidence on budget revenues related to environmental protection and natural resource management, both at central and local levels. The last section summarizes our analysis and offers several recommendations aiming at the improvement of environmental policy. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p220&r=tra |
| By: | Anna Iara; Iulia Traistaru |
| Abstract: | This paper investigates the impact of market integration on regional production structures and regional growth differentials in Hungary over the period 1994-2000. Our analysis indicates a relocation of manufacturing towards border regions, in particular towards regions bordering the European Union. On average, regional manufacturing specialization increased. We find a positive relationship between knowledge spillovers proxyed with a measure of foreign direct investment intensity and regional growth as well as between regional manufacturing specialization and regional growth. The change in regional specialization is also positively related to regional growth. Our empirical results show that on average, other things equal, high growth rates are associated with high initial levels of GDP per capita. This finding shows up even when controlling for regional economic structures, change in manufacturing specialization, the degree of openness and geographical proximity to western markets. Our research suggests that in the first stage of market integration divergence forces tend to prevail leading to relative winners and losers across space. Key words: Economic integration, Location of economic activity, Regional growth JEL Classification: F15, R11, R12 |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p298&r=tra |
| By: | Marijana Sumpor |
| Abstract: | If the political climate is stable, local elections in Croatia take place every four years. Budgets are planned for three years, while strategic development programmes cover periods of five to ten years. Technically, the political, financial and developmental programming cycles can be matched, and implementation of the programmes ensured. However, political programmes are generally vague, budgets are every so often fictive and revised mid year and development programmes grow into visionary shopping lists. Reality shows that programmes and plans are elaborated, presented in public and then neatly put into drawers. In the aftermath, local politicians are concerned mainly about the financing flows and this is what they are usually fighting for at council meetings and in various ministries. Regularly, local administration proceeds according to the wishes of the political decision makers, without referring to any program in the end. Consequently, political accountability is lacking, fiscal management is not transparent and development is lagging behind. The main aim of this paper is to show how strategic development programmes, budgetary plans and political programmes can be linked in the Croatian socio-economic and institutional environment. Also, in line with the initiated process of decentralization in Croatia, local governments have to improve their fiscal management in order to be able to take over new functions and responsibilities. Since by now a number of local development programmes exist in Croatia, where a participatory and strategic development planning approach was applied, an analysis of the political programmes, local budgets and development programmes can be done. The purpose of this research is to demonstrate that if local governments better understood the interdependencies between these three segments, they could create reference points for their actions visible in their programmes and budgets. In this way a platform could be created to enhance the political accountability, improve fiscal capacity and fulfil developmental goals in line with real needs and potentials of the local population. |
| Date: | 2004–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa04p99&r=tra |