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on Transition Economics |
| By: | Elliott Parker (Department of Economics, University of Nevada, Reno); Judith Thornton (Department of Economics, University of Washington) |
| Abstract: | In this paper we review the fiscal evolution of China and Russia, asking how the process of creating a separate, tax-financed public sector in the two countries differed. We observe that the size of China's budget sector was consistently smaller than in Russia and that budget decentralization was consistently greater. We see both pros and cons in China's decentralization. Local governments that were allowed to keep marginal increases in local tax revenue had incentives to pursue growth-supporting policies, including support for foreign investment and export-oriented production. However, in the absence of financial markets, there were barriers to investment outside the local region, resulting in inefficient use of capital and protectionism. Fiscal deficits and rapid expansion of credit have threatened stability in both countries, but China has proved more successful than Russia in managing macroeconomic policies. Finally, we argue that Russia's status as a petro-state makes management of the public sector particularly difficult. In Russia, recentralization has been associated with expansion of state ownership of enterprises and production by territorial governments, state ministries, state banks, and the natural monopolies. |
| Keywords: | Fiscal decentralization, Russia, China, regional growth |
| JEL: | H6 H7 P35 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:unr:wpaper:06-013&r=tra |
| By: | Michael C. Burda |
| Abstract: | Eastern Germany’s recovery from the "unification shock" has been characterized by deep structural change – with apparent repercussions for the West as well – and an integration process involving both capital deepening (extensive and intensive investment) and labor thinning (net out-migration). I propose a constant-returns neoclassical model of economic integration which can account for these facts. Adjustment costs determine dynamics and steady state regional distribution of production factors. The model also explains persistent wage and capital rate-of-return differentials along the equilibrium path. Under competitive conditions, observed factor price differentials contain information on those adjustment costs. |
| Keywords: | German Reunification, Regional Integration, Costs of Adjustment, Capital Mobility, Migration |
| JEL: | F2 J61 P23 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2006-087&r=tra |
| By: | Aristovnik, Aleksander; Berčič, Boštjan |
| Abstract: | In the article, we review recent literature on fiscal sustainability with particular reference to problems that are specific to transition countries. While the original literature on fiscal sustainability is chiefly focused on industrial countries there are by now few works that have focused on fiscal sustainability in transition countries. Consequently, the article’s purpose is to assess the short-, medium- and long-term sustainability of fiscal policy (under set assumptions) on the national level in the great majority of transition countries which we divide into three main groups, i.e. Central and Eastern Europe (CEE), Southern and Eastern Europe (SEE) and the Commonwealth of Independent States (CIS). Based on simple mainstream theory measures of fiscal sustainability, the results indicate that fiscal sustainability seems to be a problem in many transition countries, particularly in CEE (e.g. Czech Republic, Hungary, and Poland) and the SEE region (e.g. Albania and Croatia). |
| Keywords: | transition; public sector; fiscal policy; sustainability; forecasting |
| JEL: | E17 H62 H00 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:122&r=tra |
| By: | Alexander Granberg; Alexander Pelyasov |
| Abstract: | This work reflects the results from the cycle of research done in 2001-2004 for 20 Russian regions. At the end of it it was possible to generalize the regularities of the initial stage of transition which were characteristic for the Russian regions on their move from industrial to network model of economic development; compare Russian experience with EU core regions experience (the latter has started this way 20-25 years earlier, in mid-seventies). Typical features of this period are the increasing economic role of support sector and knowledge economy in the regional development, the increasing role of the mobile assets and footloose firms, gradual transformation of the industrial complexes into economic clusters, changes in typology of infrastructural networks (from vertical hierarchy to horizontal grid), etc. Regional authorities in every region abandon previous style of administrative commands and shift to economic coordination with the actors of the regional economy. There are expectations in the Russian regions that this transition will help to overcome economic and environmental limitations of the industrial paradygm which are evident in late Soviet period. The speed, intensity, and vulnerability of these transition are different among northern, central, and southern regions of Russia. Old economic ranks of the Russian regions of the industrial period has changed essentially. Cities-service centers have increased their importance; on the other side, role of big and small industrial cities and settlements have universally decreased. The most painful transformation is characteristic for the big industrial regions like Kuzbass (analogue of the German Ruhr). On the other side oil and gas regions of Russia are passing this transformation in easier way. But each Russian region has its own peculiarities in economy and social sphere which determine the trajectory and speed of transition. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p283&r=tra |
| By: | Jie He (GREDI, Département d'économique, Université de Sherbrooke) |
| Abstract: | Observing the weakness in the previous structural analyses on Environmental Kuznets Curve (EKC) formation, in this paper, author deepens the analysis into the detailed data of production and SO2 emission intensity of the 29 industrial sectors (occupying over 98% of the total industrial production) in each Chinese province during 1991-2001. With the aid of Divisia Index Decomposition method, the variation of the provincial-level industrial SO2 emission with regard to the original level of 1990 is decomposed into the contribution from its three determinants: the variations in production scale, composition transformation and technique progress. The following analyses employ the decomposition results to further interrogate the potential links of these region-specific environmental impacts with economic growth and commercial openness in each province. |
| Keywords: | EKC, trade, pollution, China, Decomposition, region. |
| JEL: | Q53 Q56 O13 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:06-26&r=tra |
| By: | Igor Stokovic; Lorena Skuflic |
| Abstract: | The literature on transition distinguishes between two groups of transition countries: the Central and East European transition countries have been put into two groups, the seven South-East European countries (SEEC-7)1 and the five Central European countries (CEEC-5). The former group is generally less developed, receives less FDI and is more backward in terms of transformation than CEECs, which also became the EU members. However, fifteen years of transition have brought about tremendous changes, driven by broad economic reform programs, including changes in fiscal and monetary policy, widespread privatization, price and trade liberalization, and new regulatory approaches in those countries. But, if the number of population in SEECs is only twenty per cent lower than in the CEECs, the overall GDP of the former group is one third of the latter's. The analysis of the real sector shows that the macro-stabilization program agreed with the International Monetary Fund have aimed at decreasing inflation and unemployment budget deficit and equilibrating the balance of payments had brought good results in the first group of countries, but not in the second group. According to analyze of the CEECs and their experience, an increase of the FDI inflows could be crucial for the catching-up process and international competitiveness of the SEECs. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p92&r=tra |
| By: | Zhuo Chen (the Chicago Center of Excellence in Health Promotion Economics, The University of Chicago); Shunfeng Song (Department of Economics, University of Nevada, Reno) |
| Abstract: | This paper utilizes a unique county-level dataset to examine technical efficiency and technology gap in China’s agriculture. We classify the counties into four regions with distinctive levels of economic development, and hence production technologies. A meta-frontier analysis is applied to the counties. We find that although the eastern counties have the highest efficiency scores with respect to the regional frontier but the northeastern region leads in terms of agricultural production technology nationwide. Meanwhile, the mean efficiency of the northeastern counties is particularly low, suggesting technology and knowledge diffusion within region might help to improve production efficiency and thus output. |
| Keywords: | China’s grain production, county-level, metafrontier, stochastic production frontier, technical efficiency |
| JEL: | D24 N55 O13 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:unr:wpaper:06-005&r=tra |
| By: | Josip Tica (Faculty of Economics and Business, University of Zagreb); Ljubo Jurčić (Faculty of Economics and Business, University of Zagreb) |
| Abstract: | In this paper, framework of the relative labor cost has been used in order to analyze relative competitiveness of the economic agents in the Croatia and five accession countries. Therefore, unit labor costs have been calculated for the Croatia, Czech Republic, Hungary, Poland, Slovakia and Slovenia. All of the analyzed countries are transition countries, on the similar level of GDP per capita, and are or will be in the near future EU members. Therefore, it is more than obvious that all of the analyzed countries will be direct competitors in the common European markets. Our findings suggest that relative unit costs (competitiveness) of Croatia vis a vis analyzed countries increased since 1996. |
| Keywords: | competitiveness, relative unit labor costs, productivity, wages, employment |
| JEL: | F41 E24 |
| Date: | 2006–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:zag:wpaper:0606&r=tra |
| By: | Kingsley E. Haynes; Lei Ding |
| Abstract: | Since the entry of Chinese domestic mobile handset manufacturers in 1998, Chinese domestic suppliers have successfully surpassed the market share of joint ventures (JVs) while direct imports have been largely phased out. By examining China’s mobile handset manufacturing sector as a whole and through case studies, we found several factors that contributed to the success of China’s domestic handset manufacturers which can be classified into three categories: market conditions, competition, and government’s support. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p17&r=tra |
| By: | Engelbert Stockhammer (Department of Economics, Vienna University of Economics & B.A.); Özlem Onaran (Istanbul Technical University, Turkey, and Department of Economics, Vienna University of Economics & B.A., Austria) |
| Abstract: | The paper investigates the formation of wages in the New Member States in Central and Eastern Europe, in particular the question what the relative role of national and sectoral factors is. While the labor relations in these countries are still in the process of change, some pattern and national differences have emerged. The question is thus to what extent these differences in labor relations are reflected in wage formation. The literature on Western OECD economies is unanimous that coordination of wage bargaining does reduce the wage spread, but disagrees on its effects on unemployment and inflation. The paper analyses wage formation in Slovenia, Slovakia, Hungary, Poland, the Czech Republic and Lithuania by means of a panel analysis for manufacturing sectors. The average wage (in the total economy) serves as a national factor and sectoral productivity serves as a sectoral factor. In variations of the basic estimation equation the role of FDI and openness and of capital intensity and skill are also discussed. The results between countries are compared with the recent index of the coordination of collective bargaining by Visser (2005) and with cross country data on union density. |
| JEL: | P23 J50 J30 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp100&r=tra |
| By: | Zhong-Ren Peng (Center for Advanced Spatial Information Research, University of Wisconsin-Milwaukee); Yi Zhu (Center for Advanced Spatial Information Research, University of Wisconsin-Milwaukee); Shunfeng Song (Department of Economics, University of Nevada, Reno) |
| Abstract: | In a rapid economic development environment with rising income, escalating motorization, and growing urbanization, it is natural for government policies to focus on solving congestion related problems caused by the increased car ownership and usage. The mobility needs of the urban poor have been traditionally neglected in policy and in practice, particularly in developing countries. This paper addresses the mobility challenges the urban poor are facing based on a household travel survey in the City of Hefei in China. It first presents travel behaviors, transportation costs and commuting problems of the urban poor. It then discusses the urban transportation policy implications and examines the prevailing trends of urban transportation policies and plans in Chinese cities. Policy recommendations are suggested to improve the mobility needs of the urban poor. |
| Keywords: | Urban transportation, poverty, mobility |
| JEL: | R40 J60 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:unr:wpaper:06-004&r=tra |
| By: | Simon Gaechter (University of Nottingham); Benedikt Herrmann (University of Nottingham) |
| Abstract: | We report evidence from public goods experiments with and without punishment which we conducted in Russia with 566 urban and rural participants of young and mature age cohorts. Russia is interesting for studying voluntary cooperation because of its long history of collectivism, and a huge urban-rural gap. In contrast to previous experiments we find no cooperation-enhancing effect of punishment. An important reason is that there is substantial spiteful punishment of high contributors in all four subject pools. Thus, spite undermines the scope for self-governance in the sense of high levels of voluntary cooperation that are sustained by sanctioning free riders only. |
| Keywords: | social norms, free riding, punishment, spite, experiments |
| JEL: | H41 C91 D23 C72 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:cdx:dpaper:2006-13&r=tra |
| By: | Gergely Kiss (Magyar Nemzeti Bank); Márton Nagy (Magyar Nemzeti Bank); Balázs Vonnák (Magyar Nemzeti Bank) |
| Abstract: | Credit to the private sector has been growing very rapidly in a number of Central and Eastern European countries in recent years. The main question is whether this dynamics is an equilibrium convergence process or may rather pose stability risks. Using panel econometric techniques, this paper attempts to identify the equilibrium credit/GDP levels of the new EU countries, disentangling the observed growth into an equilibrium trend and an excess (boom) component. In the paper the pooled mean group estimator was used for its flexibility and efficiency. Using instrumental variable technique we tested whether long run endogeneity affects the consistency. The estimations show that large part of the credit growth in new member states can be explained by the catching-up process, and, in general, credit/GDP ratios are below the levels consistent with macroeconomic fundamentals. However, in Latvia and Estonia credit growth is found to be significantly faster than what would be justified along the equilibrium path. |
| Keywords: | financial deepening, credit growth, transition economies, panel econometrics, endogeneity bias. |
| JEL: | E44 O16 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:mnb:wpaper:2006/10&r=tra |
| By: | Stavarek, Daniel |
| Abstract: | This paper assesses exchange rate development and volatility in six new EU member states (Cyprus, Czech Republic, Hungary, Poland, Slovakia, and Slovenia) during the period November 1996 - April 2006. The study is motivated by the unavoidable participation of the new member states’ currencies in the Exchange Rate Mechanism II and fulfillment of the exchange rate stability convergence criterion. The development of exchange rates is examined by the calculation of various rates of return and the exchange rate volatility is analyzed using moving average standard deviations of the annualized daily returns of the nominal bilateral exchange rates. The results suggest that the dilemma of “participation or non-participation in ERM II” have been solved properly so far by all countries analyzed. The three ERM II participating currencies (SIT, CYP, SKK) entered into the mechanism at the optimal time of stable exchange rate development and low volatility. On the other hand, the admissible fluctuation band ± 2.25 % seems to be still too narrow for the remaining three currencies (CZK, HUF, PLN), thus the currencies should remain out of ERM II for some time. |
| Keywords: | exchange rates; rate of return; volatility; ERM II; exchange rate stability criterion; new EU Member States |
| JEL: | F31 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1199&r=tra |
| By: | Jan Stejskal; Tana Karlikova |
| Abstract: | Czech Republic has become one of leading destinations for production foreign investments in Europe in last ten years. This success has been influenced by several factors including history, geography, policy development, economic and social progress transformation and also from Czech Republic’s entrance into NATO and the European Union. We must also take into account traditions, labour skills, price and labour productivity. The central and regional government initiatives (from municipalities and larger regions) can play active roles in foreign investment attraction. Local and central government agencies of western countries are sources of such new and direct investments to Czech Republic. Because of higher economic standards in these countries, they are able to invest internationally with greater ease and comfort. National entrepreneurs are also sources for economic development and new business. The goals of the public policies focused on the “aftercare†can be: - Support with development and expansion, - Assisting with problem solving during enterprise development, - Training and help with restructuring, - Support and assistance for multi-national corporations and investors with: research and development, design, setting up centres with a network of experts, mentors and shareable resources, - Support and assistance with networking (and advertising?), - Developing “clusters†which are centres concentrating on excellence within global competition and markets, - Many more. These specified activities can be realized with financial support from the Structural funds from the European budget and by current operating programmes already in place within the Czech Republic. This paper focuses on the research analysis interpretation of entrepreneur environment. This case study (or research) was held in Czech Republic in May 2005. We would like to make some recommendations (in the form of “best practisesâ€) to inspire other countries (which solve similar problems) and provide information. Attention will be given to defining recommendations and offering conclusions to the compatibility with the new “learning regions†theory. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p407&r=tra |
| By: | Dimitrios Kallioras |
| Abstract: | The spatial and structural dynamics generated (or released) in the contexts of the parallel and interacting processes of transition and economic integration have already left a clear mark in the economic landscape of the EU new member-states. The paper re-evaluates the experience of these countries with respect to shifts in their territorial structures and balances since despite the increasing portion of transition-integration literature many parameters remain of limited research. The analysis is conducted at the NUTS III spatial level on the basis of manufacturing data according to NACE classification for the period 1991-2000. This is a period of extreme importance since it includes both the shocks and the upsets of the early transition and the more recent trends of the pre-accession period. The analysis focuses on the manufacturing sector due to its significance in the former politico-economic regime and due to the high pressures that this sector has encountered afterwards. Regional-industrial data limitations restrict the analysis in the regions of Bulgaria, Romania, Hungary, Estonia and Slovenia. These regions still constitute a highly heterogeneous group since areas with different economic, demographic and geographic characteristics are represented. The trade-adjusted shift-share analysis, an extension of traditional shift-share analysis, is performed in order to evaluate the impact of transition and economic integration on regional manufacturing employment change. Despite its non-theoretical character, the method allows for valuable results to be drawn on the issue. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p455&r=tra |
| By: | Jie He (GREDI, Département d'économique, Université de Sherbrooke) |
| Abstract: | This paper discusses the validity of the Environmental Kuznets Curve hypothesis for the case of China’s industrial SO2 emission through both reduced and structural model. The estimated Chinaspecific EKC curve for per capital industrial SO2 emission predicts the turning point of 9000 yuan (2750 USD, PPP). However, given China’s fast population expansion speed, the decreasing trend in the per capita emission will not bring an immediate reduction in total industrial SO2 emission. Our structural EKC model succeeds in decomposing industrial SO2 emission density into the contribution from its three famous structural determinants and a marginal impact from international trade. The latter is actually composed of a significantly negative direct impact and indirect ones going through the composition effect, which further depends on the current capital/labour abundance ratio and the actual income level of a province. |
| Keywords: | : China, EKC, international trade, SO2 emission, decomposition, pollution haven. |
| JEL: | Q53 Q56 O13 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:06-27&r=tra |
| By: | Grigori Fainstein |
| Abstract: | In the transition to a market economy the countries of Eastern Europe underwent a significant structural changes. There is a plenty of literature on the structural changes in industry in transition countries. Some works on industrial restructuring have appeared in Estonia as well. By now the time series of data on this field are long enough to conduct this kind of analysis in a more systematic and formal way. The aim of this work is an analysis of the structural changes in the Estonian manufacturing in transition and it relation with regional development. The changes in manufacturing output structure is analyzed by the NACE classification broad sectors. Changes in values and real output are considered. The development of relative prices, industrial employment and labor productivity are also examined. A set of indices are calculated to study regional manufacturing dynamics. After that econometric analysis of relation between industrial restructuring and the regional development is considered. The paper ends with the conclusions. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p559&r=tra |
| By: | Josef Abrham; Milan Vosta |
| Abstract: | The main aim of the article is, on the basis of a complex evaluation of regional developing factors, to formulate developing presumptions of the Czech Republic and selected new member states of the EU (Hungary, Poland and Slovakia) after their joining the European Union and therefore to appraise the impacts of the integrative process on a regional differentitaton of analyzed countries. The other aims of the study are: • To set and adopt a methodical process for an evaluation of growth potential of the regions. • To overall evaluate weaknesses in a regional structure of appraised countries of the Central Europe and main shortages from regional growth factors facilities point of view. • To formulate convergent possibilities of examined countries regions after their joining the European Union considering the core of the European Union as well as the inside of the countries themselves. • To analyze important theoretical concepts of regional development particularly with concentration on determination of main factors of regional growth. The starting point for the analyses of the regional disparities is the analyses of economic issues, demographic differentiation and its socioeconomic impact. At the same time new macroregions with stagnant economies were delinated, but also, dynamically developing regions which often spill over state bordes. In the article late development of regional disparities among regions of Czech republic and selected member states of the EU is also evaluated. This development is defined on the basis of own calculations of statistic indicators of variability. The evaluation of disparities is narrowed to the most important indicator of an economic level – GDP per capita. The basic statistic indicator for a comparison of differences is the Coefficient of Variance. The calculations of a range among regions have been included as additional. The conclusions are focused, in accord with determined aims of the study, on a complex evaluation of growth presumptions of regions of the Czech Republic and selected new member states of he EU after their joining the European Union as well as on formulation of main conclusions in relation to the evaluation of: typical trends in regional differentiations of analyzed countries, possibilities of regional growth after joining the European Union, presumptions of convergence of the average of current member states of EU, weaknesses examined regions from growth factors facilities point of view. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p148&r=tra |
| By: | Vyacheslav Vashanov; Jahan Orazdurdiyeva |
| Abstract: | This paper gives a review on the role of Russia and the countries of the Central Asia (Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan and Tajikistan) in maintenance of the Europe with energy carriers. The paper examines the issues mentioned below. 1.Modern reserves of oil and gas (in % from world reserves) 2.Output of mineral products and distribution of their export on the countries 3.Volume of foreign (European) investments 4.Competitiveness 5.Forecasts of extraction and transportation of oil and gas 6.Opportunities of increase of volumes of export Being among the richest countries in the world in terms of hydrocarbon resources, this region represents unquestionable interest for European community as an oil and gas exporter and interests at the world’s energy markets as well. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p232&r=tra |
| By: | Martin Spielauer (Max Planck Institute for Demographic Research, Rostock, Germany); Elena Koytcheva (Max Planck Institute for Demographic Research, Rostock, Germany); Dora Kostova (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Following the collapse of the communist regimes in Bulgaria and Russia, the two countries have experienced dramatic fertility decline. The aim of this paper is to examine the individual contribution of various factors that have contributed to the overall drop in first and second births. By means of microsimulation, we isolate the effect of changes observed in first and second birth risks in different life course situations as well as the impact of changes in union formation and dissolution on fertility. The study is based on hazard regression models estimated from GGS data. We find remarkable similarities in first and second birth behavior and changes in these behaviors over time in both countries. However, partnership behavior and trends differ considerably, causing a stronger fertility decline in Bulgaria due to delayed partnership formation. Nevertheless, in Russia unions are increasingly unstable, a process which, according to our findings, leads to longer birth intervals but has almost no impact on final birth outcome. |
| Keywords: | Bulgaria, Russia, fertility trends, microsimulation |
| JEL: | J1 Z0 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2007-001&r=tra |
| By: | Pop-Silaghi, Monica Ioana |
| Abstract: | This paper tests the relationship between trade and economic growth for the case of Romania, during 1998-2004. We employed cointegration and Granger-causality tests on stochastic systems composed of exports, imports and GDP. In order to have some degree of significance, we performed our tests on quarterly data. We found that exports do not Granger-cause GDP in the Romania’s case, while the inverse relationship holds. The presence of imports in the stochastic models does not affect significantly the results. For validating our results, we performed the same tests on the 10 countries that entered EU on 1 May 2005, Bulgaria and EU with 15 members and EU with 25 members. We found that only in few cases – Czech Republic, EU 15 and Bulgaria, export-led-growth hypothesis is verified. Bi-directional causality found for exports and output in the case of Czech Republic and EU 15 is implying a virtuous circle of growth and exports, case that should be desirable for all the countries from the sample. The analyzed countries have situations which differ from case to case and a unified framework can not be applying for a generalization of the results. |
| Keywords: | growth; trade; causality; cointegration; time series |
| JEL: | C32 O57 F43 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1321&r=tra |
| By: | Stavarek, Daniel |
| Abstract: | This paper estimates the exchange market pressure (EMP) on currencies of EU4 countries (Czech Republic, Hungary, Poland, Slovakia) during the period 1993-2005. Therefore, it is one of a very few studies focused on this region and the very first paper applying the model-dependent approach to the EMP estimation on these countries. Moreover, the model proposed by Spolander (1999) is used in the paper along with quarterly data. Thus, this paper, tests the suitability of this model for the countries analysed. Regarding the results obtained, EMP is of similar magnitude in all countries except Poland. We found that EMP was significantly lower and less volatile during the periods when a floating exchange rate arrangement was applied than in periods with fixed exchange rates. It implies that unavoidable entry into ERM II (a quasi-fixed regime) could lead to the EMP increase during the period of the exchange rate stability criterion fulfilment. Hence, a revision of the current definition and understanding of the criterion fulfilment is suggested. Since the model estimation was burdened by some factors reducing the estimates validity we also propose some modifications and extensions of the methodology applied. |
| Keywords: | market pressure; Central Europe; model-dependent approach; exchange rate stability criterion |
| JEL: | E58 F31 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1196&r=tra |
| By: | Fabry, Nathalie; Zeghni, Sylvain |
| Abstract: | Why the “New European Neighbours” at the South East of Europe, after more than 10 years of transition and European Neighbourhood Policy (ENP), are not sufficiently attractive for inward Foreign Direct Investment (FDI)? The experience of Central and Eastern European Countries has shown that the access to the EU membership can be positively pushed by the European Neighborhood Policy and inward-FDI. On the one hand, ENP can be a supportive framework for improving the investor’s confidence. ENP Instruments can add more coherence in technical assistance; provide more financial support for creating capacities for trade, improve infrastructures, and contribute to the institutional and private sector development. On the other hand, inward-FDI may help to achieve modernization, industrial upgrading and improve productivity by importing foreign technologies, diffusing knowledge and western best practices. Southern European Transition Countries lack of a strong convergence process to the EU Standard probably because of an unclear accession date to the EU and of the Balkan Civil War. The aim of this paper is to understand the role of institutions in shaping a strong localization advantage for FDI. The quest of reliable and safe institutions has recently emerged in the economic literature, first as a catalyst for growth and more recently as an inward-FDI attractor mainly in transition economies. Contrary to the New Institutional School, we argue that institutions are not pre-condition to FDI but the result of an interaction between host countries and foreign investors. Such an institutions-based attractiveness could help the Southern European Transition Countries to become a new frontier for FDI in the future. |
| Keywords: | FDI Institution Attractiveness Southern European transition Countries |
| JEL: | F21 F23 P33 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1109&r=tra |
| By: | Maciej Turala |
| Abstract: | The regional policy of the EU attempts at minimising the scale of disparities in the level of socio-economic development of regions. Regional policy is one of the key policies of the EU as shown by the fact that over a third of the Community’s budget is spent on it. The main objective of regional policy is to help backward regions to catch up, restructure declining industries, diversify agriculture as well as revitalise cities. Poland, the largest of the new member states is at the same time one of the most lagging behind. The Structural Funds are perceived in Poland as one of the main instruments serving regional development. Since the EU and Poland put a great emphasis on regional policy it seems worthwhile to reflect upon its effectiveness. This article does not aim at analysing the changes in the level of disparities between countries or even regions of the EU – there is sufficient literature dealing with this issue. It needs to be noted however, that there often exist far greater disparities in the level of socio-economic development within regions rather than between them. This results from the concentration of positive effects of regional policy in regional centres. The author aims at presenting a methodology and results of research performed in a Polish region of Lodzkie. It concentrated on measuring the level of socio-economic development in the communes of Lodzkie and the scale of intra-regional disparities. Most available analyses of the effectiveness of regional policy concentrates on measuring the level of disparities between regions, mostly due to the fact that there is insufficient statistical material that would allow such comparisons on a lower level of territorial division. The author proposes a methodology that allows such comparisons for Polish communes. It is then tested on communes of Lodzkie (177 administrative units). The results seem to confirm that the regions are strongly polarised – with most of the socio-economic development concentrated in the centre of the region and a peripheral area around it. This leads to a conclusion that specific actions need to be undertaken in order to fully benefit from regional policy activities. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p594&r=tra |
| By: | Iva Ritschelova; Jan Capek |
| Abstract: | In the beginning of the transformation CR i.e. after year 1990, with started always expressive display in plant regional differences resulting from transformation process and transition Czech economies on market conditions. It was been and still is endeavour these disparities measurably equalize by regional policy state supports structurally depressed and economic weak regions. Regional disparity solving, and with it closely related well-balanced development regions, together constitute long - term process pointing to restraint disequilibrium in mutual relations among economic, environmental and social pillar sustainability and economic growth. For the safeguard development regions is therefore possibly to create conditions for lessening negative regional disparity and utilize inner potential particular regions at respected principles maintainable development Regional disparity and their solving will have out of doubt of principle impact on strategic orientation regional development CR in years 2007 - 2013. Authors in their article deal with identification disparity between eligible regions in CR, analyze development regional policy and her influence over elimination or deepening disparity over the last 15 years. Last but not least think of over strategy hers next development for the next period. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p363&r=tra |
| By: | Miroljub Hadzic |
| Abstract: | The Serbian banking sector after four years of transition is almost completely different from the situation before. Last year the growth rate of GDP in the sector was among the highest in neighborhood and even among all transition countries. Ten big acquisitions of domestic banks, with majority stake possessed by the state or private persons or legal entities, were realized with results that 2/3 of the sector now belong to foreign investors. Necessary prerequisite for transition was really independent role of National bank in definition and realization of monetary policy and supervision of banking sector. Transition of the banking sector was realized step by step threw three lines of activities.Firstly, restructuring and rehabilitation of existed banks. This painful step included closing of 18 banks and merging of small, week banks. National bank introduced tight financial discipline and international banking standard. Secondly, financial market was opened for foreign investors. At the beginning monetary authorities gave several license for green field investments, but later on foreign banks could penetrate the market threw acquisition of domestic banks, only. Thirdly, recently the state started privatization of majority stake in domestic banks owned by the state. This process will be finished by the end of 2006. At the same time domestic private shareholders recognized their interest to sell majority stake in several others banks. Although Serbian banks improved their efficiency and increased total amount of credit lines and assets for several times, there is still room for further transition steps. Among others, the law on banks and other financial institutions has to be amended, especially regarding stronger supervisory role of National bank, higher responsibility for bank management and auditors, as well. Important role for National bank would be also transition of insurance market, which is now at the very beginning phases of overall reform. Serbian banking sector with linkages to banks from EU countries and full introduction of international banking standards can be solid basis for European integration of Serbian economy. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p176&r=tra |
| By: | Zsolt Darvas (Corvinus University of Budapest); Gábor Vadas (Magyar Nemzeti Bank) |
| Abstract: | Decomposing output into trend and cyclical components is an uncertain exercise and depends on the method applied. It is an especially dubious task for countries undergoing large structural changes, such as transition countries. Despite their deficiencies, however, univariate detrending methods are frequently adopted for both policy oriented and academic research. This paper proposes a new procedure for combining univariate detrending techniques which is based on revisions of the estimated output gaps adjusted by the variance of and the correlation among output gaps. The procedure is applied to the study of the similarity of business cycles between the euro area and new EU Member States. |
| Keywords: | combination, detrending, new EU members, OCA, output gap, revision |
| JEL: | C22 E32 |
| Date: | 2005–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:mkg:wpaper:0505&r=tra |
| By: | Valentina Sagris; Marjo Kasanko; Elisabetta Genovese; Carol Lavalle |
| Abstract: | In this paper we focus on urban growth dynamics of Eastern European cities and regions in the past and in the new Europe. This work is a part of on-going research in the field of urban and regional development, carried out in Joint Research Centre (JRC) of the European Commission. Eastern European cities experienced similar and very turbulent historical and political development during 20th century. The policies during the communist period with planned economy has clearly reflected in the land use pattern development, e.g. the absence of large suburbs and underdeveloped transport networks around cities. In contrast to other European cities, no or very few commercial zones and commercial centres were built in suburban areas. In addition, satellite cities were built only on a limited scale. With the collapse of communist regimes cities and regions in Eastern Europe have entered into a new phase of urbanisation, which changes dramatically land use patterns. The liberalization of economy and the membership of the EU has led to the growing involvement to the European market and EU development schemes (e.g. TEN/T, ERDF, etc.). In spite of the expected decrease of population in the new EU countries the average gross domestic product is projected to triple and the number of households per capita is projected to double between 2000 and 2030 (EEA, 2005¬/4). Among the consequences of socio-economic development the continuous growth of urban areas can be foreseen. What shapes urban sprawl will take and will it cause new threads to sustainability remains to be seen. In this paper we focus on two study cases (1) the Dresden – Prague transport corridor in Germany and in the Czech Republic (Barredo et al, 2005) and (2) the Harjumaa region and the city of Tallinn in Estonia. The objective of this work is to test the impact of diverse economic development trends on urbanisation processes. Several development scenarios are produced in order to model the spatial pattern of urban land use. The MOLAND urban and regional growth simulation model (Lavalle et al, 2004), based on “cellular automata†(CA), is a key instrument in the forecasting land use development. The model operates at two levels. At the micro- level, the CA-based model determines the fate of individual land use cells based on the type of the activities in their neighbourhood. At the macro- level, various additional factors such as overall land use demand, effects of the transportation network as well as legislative, environmental and institutional characteristics (e.g. environmental protection, zoning) constrain the behaviour of the CA-model. This approach allowed us to integrate “physicalâ€, environmental, socio-economic development as well as institutional aspect of territorial development. The scenarios offer a useful approach to analysing and understanding urban land use dynamics and can also serve for landscape management at the local and regional scales, complementing existing policies and programmes. In both study cases we evaluate the impact newly developed motorways’ supported by EU Structural Funds. Very important feature of Dresden-Prague corridor is the extreme flood events in 2002. The increasing vulnerability to natural hazards due to rapid urban development in flood-prone area is also discussed in the paper. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p194&r=tra |
| By: | Milorad Filipovic |
| Abstract: | Western Balkan countries comprises following entities: Bosnia and Hercegovina, Serbia and Montenegro, Kosovo and Metohija, Albania and Macedonia. Even there are just four sovereign(internationaly recognised) states among those entities, number of different names (8) shows to us all fragmentation and tendencies toward further dissolution of this region to increasing number of small and weak states. Tendencies that are shown in WB region are quite different from those in other transition countries in Europe. Instead of cooperation in economic, financial and all other important fields, like Visegrad group countries did in nineties and strenghten their negotiation position compared with the EU, WB countries try to flatter to EU member states and to build their better position through deterioration of the position of other regional states. On the internal plan, all WB countries are still rely on weak institutional capacity - mechanisms that enables governments non-transparent behavior, manipulation with judicial system and judges, selective implementation of the laws, very high and resistant level of corruption in all social and economic fields, surviving of organised crime structures which are very often related to government officials at all levels of authority etc. Integration of WB countries in the EU will be very long term and difficult process as the precondition for that will be building of effective institutional mechanisms that could provide governance comparative with other transition countries and in more distant future with European mature market economies. It isimportant also to establish efficient regional cooperation and to increase level of income and competitiveness to cope with the competition from EU. Experiences from other Balkan countires should be useful for WB region - Greek's as one old member state and Romania's and Bulgaria's as candidate meber states. WB countries expect to have greater understanding of EU officials for the very serious problems that have to be resolved and it is out of question that without important support from outside WB it will be impossible to do so. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p270&r=tra |
| By: | Ruta Aidis (School of Slavonic and East European Studies, University College Londony) |
| Abstract: | The aim of this paper is to provide an overview of the key issues surrounding entrepreneurship development in transition countries focusing on six main themes. Though it can be argued that the transition countries started from more or less the same point when they embarked on their transitional path, in this paper, we indicate a number of the differences in initial conditions which further influenced SME development. By surveying the existing literature on SME development, this paper illustrates that as the transition process progresses, entrepreneurship development in transition countries is a story of increasing divergence. The transitional context provides unique opportunities for entrepreneurship activities to develop. However, at the same time this environment presents unique challenges for entrepreneurial development especially knowledge-based entrepreneurship as the free-market system matures within a context with low levels of SMEs and inherited negative views towards entrepreneurship. |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:see:wpaper:61&r=tra |
| By: | Horvath, Roman; Komarek, Lubos |
| Abstract: | In this paper we discuss the estimation and methodology of the real equilibrium exchange rate partial equilibrium models and analyze to what extent the resulting estimates are applicable for setting the central parity prior to ERM II entry in the new EU member states. Given the uncertainty surrounding the estimates, we argue that they are informative in the sign rather than the size of the misalignment of the exchange rate, but may still serve as useful consistency checks for the decision on the setting of the central parity. We argue that policy makers should consider the estimates in their decision-making only if the real exchange rate is substantially misaligned. |
| Keywords: | Equilibrium Exchange Rate; ERM II; EU New Member States |
| JEL: | E58 E61 C52 F31 C53 |
| Date: | 2006–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1180&r=tra |
| By: | Galina Golobokova |
| Abstract: | Establishing of Special (Free) Economical Zone (SEZ) in Magadan region has become an actual task to support surviving of the territory in the condition of being remote from central regions of Russia and limited financial resources. This is determined by slow accumulation of local funds and constant sufficient flow of capital from Northern regions to the central parts of Russia. In 1999 on the territory of SEZ the preferential economical mechanism was applied. It allowed the companies registered within the SEZ not to pay federal taxes and customs fees in order to improve their financial status and also to create the Fund of SEZ which is used to new companies establishing and regional social problems solving. By 2004 the number of SEZ participants has reached 440 including 125 gold mining companies producing 63% of gold in region, and small entrepot companies covering 64 % of regional production. Due to SEZ region managed to obtain stable dynamics of growth of gross regional product, installments to consolidated regional budget, and reduce the number of companies failing to pay wages in time. The Fund of SEZ financed construction of blasting material plant, silver processing line of Kolyma refinery plant; new mining complexes were set in operation. Due to foreign economical activity development new equipment and machinery for enlargement of output were delivered to Magadan region. Due SEZ the territorial so called “points of growth†were created. They had multiplicative direct and indirect effect on different sectors of economy. Magadan region, which is counted as a depressive region was able to reduce the decline of production, hold the inflation level, hold unemployment growth, improve social condition of population. The governmental restriction of period of SEZ existence and also problems resulting in SEZ operations are as follows: legislation instability, defective structure of management, unreadiness of some branches of economy for effective use of preferences, lack of innovative approach. This makes to review in prospects institutional and legislative basis of SEZ. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p542&r=tra |
| By: | Holger Von der Lippe (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | In this paper we study the transition to parenthood, analyzing data from three waves of a psychological longitudinal survey from Rostock, eastern Germany. We apply hazard regressions in order to predict the timing of first births of 117 men and 124 women born in 1970 and 1971. Subjects, who were in their 20s during the 1990s, made their family decisions during the most turbulent times of societal transformation in eastern Germany following unification. We hypothesized a crucial relevance of personality traits, coping-styles, and other psychological variables for the prediction of fertility in this context. Results for men show that dispositional self-actualization and internal control-styles as well as a tendency to social withdrawal decrease the probability of fatherhood. For women, dispositional emotional stability and mental health decrease the probability of motherhood, whereas a tendency toward rationalization increases it. We discuss findings in light of the gender-specific life-span development of people’s personality and control behavior. |
| Keywords: | Germany (new Länder), fertility determinants, first birth, life span, psychology |
| JEL: | J1 Z0 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2006-050&r=tra |
| By: | Sophie Claeys (Research Division, Sveriges Riksbank, SE-103 37 Stockholm and Ghent University, W. Wilsonplein 5D, B-9000 Ghent. sophie.claeys@riksbank.se); Christa Hainz (Department of Economics, University of Munich, Akademiestr. 1/III, 80799 Munich. christa.hainz@lrz.uni-muenchen.de) |
| Abstract: | Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study how different entry modes affect the interest rate for loans in a model in which domestic banks possess private information about their incumbent clients but foreign banks have better screening skills. Our model predicts that competition is stronger if market entry occurs through a greenfield investment and therefore domestic banks' interest rates are lower. We find empirical support for our results for a sample of banks from ten Eastern European countries for the period 1995-2003. |
| Keywords: | banking, foreign entry, mode of entry, interest rate, asymmetric information |
| JEL: | G21 D4 L31 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:182&r=tra |
| By: | Daniela-Luminita Constantin |
| Abstract: | Starting with 1998, when the process of Romania’s accession to the EU was officially launched, the legal and institutional framework for regional development policy has been created, followed by the elaboration of the National Development Plan. As the programming document that builds up Romania’s access to the structural-type funds in the pre-accession period and to the structural and cohesion ones after accession to the EU, the NDP responds to both ‘internal necessities’ and ‘external requirements’, revealing the philosophy of the EU support via pre-accession instruments, which has a twofold significance: on the one hand the financial aid is viewed as a way of reducing economic and social disparities between the candidate and the EU member countries; on the other hand, working with pre-accession instruments, creating the institutional framework for measures implementation, action monitoring and impact evaluation allow the candidate countries’ authorities to get used to European Commission’s procedures and, thus, to be prepared for the administration of the much higher amounted financial funds after accession to the EU. Though, in the case of Romania the institutional framework for regional development policy has suffered a lot of changes since 1998, with negative consequences on the absorption capacity of EU funds, serving as a good example for explaining why so many times Romania has been severely criticised by EU for institutional instability and delays in institutional reform. This paper proposes an analysis of Romania’s regional development policy in the perspective of accession to the European Union, with a particular emphasis on the institutional transformations and future challenges, especially those referring to the post-accession period. The author’s contribution to a recent study on Romania’s capacity to absorb the EU funds (developed under the auspices of the European Institute of Romania) will be presented, offering an evaluation of the components that characterise the administrative capacity of absorption in programming field. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p142&r=tra |
| By: | Pashev, Konstantin |
| Abstract: | The paper studies the policy response to the market failures and challenges of healthcare in transition. Bulgaria chose a halfway shift from healthcare services provided entirely by the state to a system with private providers of outpatient services and public providers of inpatient services, both sectors financed mainly by state-run compulsory payroll insurance system. The paper shows the evolution of this reform path to low compliance by both customers (contributors) and service-providers (contractors with the National Health Insurance Fund), which leads to excessive regulations and control, and crowding out of the private sector. The outcome is a system that is increasingly driven by administrative controls at the expense of market incentives. Based on this analysis it identifies the relevant policy implications and opportunities for moving the stalled health reforms out of the institutional impasse. |
| Keywords: | healthcare reform |
| JEL: | I18 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:999&r=tra |
| By: | Ewa Bojar |
| Abstract: | Past experience of European Union member states acknowledge significant role of regions in the process of European integration. As a matter of fact regions compete for capital but what should be simultaneously highlighted they also collaborate in many fields. To a large extent regional and local development is determined by clusters, which are groups of complementary enterprises having certain similarities with one another as well as linked institutions engaged in a certain area. Clusters can play crucial role in improving competitiveness and stimulate innovation in regions, especially those economically backward as well as in Polish economy as a whole. The aim of this paper is to survey some theoretical concepts and practical aspects of functioning clusters, especially good practices and shortcomings in the context of regional and local development, and presentation of Polish relevant experiences and expectations. This paper presents a few clusters operating in Poland, with special focus on two clusters run in underdeveloped Lublin region – Ecological Food Valley and Aviation Valley. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p341&r=tra |
| By: | Eva Aguayo; Pilar Exposito; Emilia Vazquez |
| Abstract: | Tourism is a very important sector for the economic growth and the employment. It is also important to stress that this relationships have not been studied enough, this is even more important if we take into account that we consider the economic impact, not the major determinants of tourist demand, which is the most common feature of tourism studies. In this paper we analyse the economic impact of tourism in the economy of 50 regions of transition countries. The political and economic changes in these countries have brought the attention in this area, making it a desirable destination for an important part of tourists, both in Europe and other parts of the world. Nowadays tourist are not seeking just sun and beaches as it happened in the past, other factors such as culture, history, archaeology or natural parks can explain some of the changes in the movement of tourists around the world. We study the difference among the countries and regions, considering the importance of resident and non-residents tourism in each of them. Through this analysis we would like to point those countries, and regions, which are already in a good position, such as the Czech Republic, Hungary or Poland, comparing them with those others which offer an important potential to develop this sector. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p743&r=tra |
| By: | Pashev, Konstantin |
| Abstract: | Measures of corruption are based on the concept of bribes as extra business costs. Drawing evidence from corruption surveys of business and tax service in Bulgaria, this paper looks at the bribe as a price paid by the taxpayer in exchange for income-maximizing services supplied by corrupt tax officials. It distinguishes between corruption for tax evasion and corruption related to excessive voluntary compliance costs. The latter is closer to the concept of bribes as costs imposed on business, but is limited in scale relative to the former. It is in this framework that the study analyses the drivers of the demand and supply of corruption “services” and proposes an indicator framework for “sizing up” the problem, evaluating the strength of the underlying factors and formulating anti-corruption policies whose effect can be monitored and evaluated using that framework. |
| Keywords: | tax corruption |
| JEL: | H26 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:974&r=tra |
| By: | Marina Dabić (Mechanical Engineering Faculty, University of Osijek); Marina Pejić Bach (Faculty of Economics and Business, University of Zagreb); Najla Podrug (Faculty of Economics and Business, University of Zagreb) |
| Abstract: | The aim of this article is to obtain a better understanding of people’s attitudes toward ethical issues. We explored four ethics issues: (1) attitude on ethical issues in general, (2) information manipulation, (3) environmental issues, and (4) law issues. This study examines variation in attitudes toward ethical issues based on data collected from questionnaire survey. The data set is composed of people who participated in the survey. Although firms were randomly selected to participate in the survey, it is not clear to what extent they apply to the population as a whole; this would be a useful further study. In order to study variation we used cluster analysis that revealed that people could be divided into three clusters, with distinctive demographic, economic and attitudinal traits for each cluster. Results could be useful both to policy makers at the government level, and to managers that are worried that low sensitivity toward ethical issues could influence firm’s performance. |
| Keywords: | ethics, information manipulation, cluster analysis |
| JEL: | C10 D23 L22 |
| Date: | 2006–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:zag:wpaper:0602&r=tra |
| By: | Wolff, Joachim (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]) |
| Abstract: | "This paper studies individual log real wage change of east and west Germans over the period 1990/91 to 1995/96 using data from the German Socio-economic Panel. Parameters are estimated by median regression. Human capital theory and job mobility theories have implications for wage changes that differ between a transition and a non-transition economy. Wage changes decrease in experience according to human capital theory. But during a transition shock the introduction of new production techniques implies that experienced and inexperienced workers invest similarly in on-the-job training. Hence, annual wage changes do not vary much with experience. The estimation results reflect this difference. Matching and on-the-job search theory imply the following: A higher a worker's experience the higher his/her match quality and in turn the less (more) he/she can gain (lose) from an additional voluntary (involuntary) job change. But a transition shock destroys the high match quality of many experienced workers' jobs, so that wage changes due to voluntary and involuntary job change vary less with experience in a transition country than in a non-transition country. For involuntary job change, I find evidence for this hypothesis. Causal effects of job mobility on wages are estimated by comparing wage changes of this period movers with wage changes of next period movers. The results show that voluntary job changes raise real wages of both east and west Germans; involuntary changes tend to lower real hourly wages." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | Lohnentwicklung, Lohnerhöhung, Berufserfahrung - Auswirkungen, berufliche Mobilität - Auswirkungen, regionaler Vergleich, Reallohn, Sozioökonomisches Panel, Humankapitalansatz, on-the-job training, Bildungsinvestitionen, Bildungsertrag, Einkommenseffekte, Arbeitsplatzwechsel, Freiwilligkeit, Transformationstheorie, Volkswirtschaftstheorie, osteuropäischer Transformationsprozess, matching - Qualität, Ostdeutschland, Westdeutschland, Bundesrepublik Deutschland |
| Date: | 2006–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:200627&r=tra |
| By: | Andra Aldea-Partanen; Jouni Ponnikas |
| Abstract: | This paper aims at analysing the current regional and rural development tools available for Romania and Finland, as well as common encountered problems and differences in the local realities. The theoretical framework covers contemporary concepts typical for regional development and for rural development, such as learning regions, knowledge creation, social networks, innovation, bottom-up versus top-down approaches, and social, cultural and economical sustainable development. References to the specific problems encountered in remote areas or related to the communities with limited access to various resources are made and the existing policy trends are compared. Rural reality embraces very particular characteristics both in Romania and Finland. However, the history trends have been different and the actual situation of countries’ economy indicates a potential of learning in case of Romania and available solutions to similar problems in case of Finland. Still, transferring models and solutions is not an easy task and the particular challenges encountered in Nordic knowledge transfer projects are mentioned as a starting point helping to formulate assumptions related to the impediment to be expected in such a transfer case. Project Cycle Management in its newest version is brought in the discussion in an attempt to asses in what extent its recommendation could be useful and applied in the case of rural development programmes. The potential quality increase and the high technicality of the used terms are some of the analysed features of project Cycle Management. The concrete examples used in the paper are based on the interviews carried on by the authors in different and common research and evaluation projects in Finland and Romania. The paper brings into discussion the lacks existent in rural and regional development policy in an EU country and a accession one, as they appear using the initially proposed theoretical framework. Recommendations to be followed in the coming year are suggested in this paper evaluating comparatively some of the existent problems affecting local development |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p943&r=tra |
| By: | Kakia Sofianopoulou |
| Abstract: | The disintegration of Popular Federal Republic of Yugoslavia, in 1990, did not only mean the end of a state-country, but also the end of a rather particular political and economically system, which originated and developed in its interior. In the present paper, the regional inequalities in Former Yugoslavia are examined, as well as adopted policies for achievement of regional convergence and their results. The main factors that led the country to unequal economic growth were historical, economical, political, and demographical. The regional policies that were applied in order to eradicate, existing inequalities-divergences in the first post-war decade, consisted of government-aided investments in the less developed regions by transferring of funds and resources (donations from state-budget, interest-free loans, etc.) By presenting and examining the economic growth of the regions at the beginning and at the end of period of application of regional policies (1966 and 1990), based on the indicators used by Yugoslav government (GDP, employment and fixed capital equipment), we concluded that even though a increase in the growth rates was accomplished, the provinces of Yugoslavia did not alter their initial hierarchy in terms of regional divergence. Subsequently, the regional policies that were adopted in the period of 1966-1990, failed to achieve their objectives. The reasons that led to this failure were not only of economic nature but also a result of not taking under consideration the demographic behaviours of the less developed regions. In order to examine this, particular accent will be given in the province of Kosovo, and the issue of demographic increase (absence of measures for control of births) which resulted in the failure of regional policies to the extend that “demographic investments†absorbed the total capital directed to this region. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p604&r=tra |
| By: | Nenad Starc |
| Abstract: | The paper deals with impacts of large scale patterns of socio-economic development on small island communities and their economies. The Croatian island of Unije (17 km2, 100 islanders) is chosen as a representative case due to its relatively rich resources and turbulent economic and social history. The paper describes the island's ecosystem, resources, population and built environment and analyses ups and downs that the island experienced in last two centuries. The inability of usual analytical methods to capture features of small economies and communities is observed and discussed. The main external economic factors of changes of the Unije community have been the fishing industry with its dynamic spatial pattern and the tourist industry which has been the main activity on the island in the last 40 years. Other factors have been changes in the geo-political environment and general socialist development policies. Development of both industries and corresponding state policies are discussed in order to reveal the inability of policy makers to take into account insular development specificities. Policy failure to take into account different effects that the same measure may have in different parts of the territory in which it is applied is also discussed. In the remainder, decentralisation of development management and bottom-up top down policy mix are proposed and elaborated as solutions for existing policy failures. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p244&r=tra |
| By: | Garri Raagmaa |
| Abstract: | The primary aim of the paper is to provide an overview of the development and topical issues of the Estonian regional policy along with public policy. In order to implement a public policy, choices must be made based on values, which in their turn considerably influence the actual result. Public policy is usually described as a process of making choices from the determination of the situation to evaluation of the policy being implemented. This process has often an irrational character, which is caused by limited information available to decision-makers and limited time. My approach moves on from the statement of Ludek Sukora and his colleagues (Balchin et al 1999, 163) which says that in Eastern European countries, thus, hypothetically in Estonia as well, the former centralised planning economy replaced by relatively small local governments under the conditions of new legislation, where national plans do not work and consistent regional development policies do not exist, has brought about a situation of uncertainty, application of ad hoc methods instead of long-term comprehensive planning, and the use of earlier experience in administrative techniques. Following the above I present following hypotheses: H1) governmental normative documents on regional development change frequently and are often contradictory; H2) institutions responsible for the implementation of regional policy are unstable; H3) national and EU plans do not work and sectoral development plans are not compatible; H4) regional political initiatives depend on activities of different officials or ministers - human factor is critical; H5) no attempts are being made in municipalities to achieve awareness of conceptual basics of national and EU policies and their objectives, instead, different lobbying methods have been applied. In theoretical part, we look at the concept of regional policy and it’s changes in Europe. The empirical part will give a description of the Estonian regional and administrative polices in time, primarily based on observations, on the content analysis of documents and the written media, and interviews carried out in 1990-2005. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p664&r=tra |
| By: | Moritz, Michael (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Gröger, Margit |
| Abstract: | "Using the IAB Employment Sample (IABS) covering 1980-2001 we investigate what impact the fall of the Iron Curtain has had on the skill structure of employment and wages in the western German districts neighbouring the Czech Republic. The introduction of free trade in this region, which has one of the world's largest spatial wage differentials, can be seen as a natural experiment. We presume that changes in skill and wage structures are particularly apparent in the regions situated immediately on the open border. Distinguishing three skill categories we obtain unexpected results. Though we observe a general shift from low-skilled jobs towards skilled jobs and a convergence trend of border regions towards the national average, we do not find a special effect for the period after the opening of the border, neither concerning the skill structure nor the wage differentials." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | Grenzgebiet, Qualifikationsstruktur, Lohnhöhe, osteuropäischer Transformationsprozess - Auswirkungen, IAB-Beschäftigtenstichprobe, Bayern, Tschechische Republik, Bundesrepublik Deutschland |
| JEL: | R23 J31 F16 |
| Date: | 2007–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:200701&r=tra |
| By: | Miklos Lukovics; Imre Lengyel |
| Abstract: | The main challenge of regional economic development is undoubtedly to increase the living standard and welfare of local population. Usually the state of development of regions and sub-regions within one country significantly differs. Parallel to the catching-up process of Hungary at the national level, there is another discernible process at the regional level: regional disparities are widening because the growth of the most developed sub-regions is increasing while the less favoured sub-regions are lagging behind. In Hungary, the dominates in development, the Western part is emerging, and the Eastern territorial units, mostly the ones by the boarder are lagging behind. Economic development should not be executed homogeneously, one should take into consideration the attributes and starting conditions of that certain territorial unit. The variety of starting conditions requires different interventions and strategies of economic development from region to region. Spatial units with different level of competitiveness should take variant steps on the road of economic development in order to achieve competitiveness in the global world. Due to their different starting conditions they cannot be developed by the same action plans. Regarding the fact that development or underdevelopment does not spread evenly in space, we chose to base our empirical research on the smallest spatial unit for which statistical data are still available. Furthermore sub-regions are worth analyzing because nowadays local economic development is attached to local areas and commuting zones that are almost equivalent to sub-regions. Present paper aims to rank the Hungarian sub-regions alongside development phases, with the help of multi-variable data analyzing methods based on a determined system of viewpoints, and adequate theoretical models and statistical data. We developed a weighting system of the indicators, following the logic of the adequate theoretical models. We are convinced that the presented theoretical model and the methodology based on it are suitable for making regional competitiveness measurable. Through this and with the help of statistical data, the competitiveness of any spatial unit of any level can be determined. We think what we have thon is significant because of the fact that a suitably analyzed starting point can contribute to choosing the best economic developing strategy for a certain region. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p350&r=tra |
| By: | Evangelos Kyriazopoulos; Maria - Athina Artavani |
| Abstract: | Freight Villages are very widely used in the processes of trade and transport in Western Europe, Southeast Asia and the U.S.. Freight Villages are places that provide integrated services including the rationalization of trade flows, the combination of transport modes, added value logistics services, uninterrupted city distribution, decongestion of urban traffic etc. This paper attempts to examine the application of an agglomeration economies policy to the wide Balkan market, which is currently undergoing a phase of political and investing stability and of administrative reorganization. These elements will be further reinforced in the future with the accession of two Balkan states in the E.U., namely Bulgaria and Romania, and with the anticipated regularization of trade processes. This new environment undoubtedly favors the development of complex and well-designed trade infrastructures, such as Freight Villages, that are expected to have a strong influence on regional development and on the reduction of product distribution costs. The case of the Freight Village on the Greek – Bulgarian border at Promachonas in Serres is an interesting and original case study for the greater area. The first Freight Village in Greece, with the contribution of the private, public and EU capital has already been in operation since 2001, contributing to the rationalized management of trade flows, the development of cross-border trade, the provision of high quality services to consumers, the increase in employment and to the regional development of the degraded border area of Serres. The variables of the model are based on economic, social, commercial, environmental and other elements and statistical data, as well as on field research at the Freight Village and at the region. Finally, the paper reaches certain conclusions and makes a series of proposals. The conclusions refer to the degree and range of consequences of the Promachonas Freight Village to the regional development of Serres. The proposals refer to the development of a Balkan network of Freight Villages and other secondary transport infrastructures within the framework of the existing and scheduled Trans-European Networks (T.E.N.s), aiming at the regional development of the Balkans. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p167&r=tra |
| By: | Gulden Erkut; Mete Basar Baypinar |
| Abstract: | The political change in the 1980’es and 1990’es in the Black Sea Region has introduced many questions regarding its future as the region faces massive problems like conflicts on territory, drop of production levels in the 1990’es and related poverty, and last but not the least, environmental problems. The size of the region also blurs the picture. However, briefly there are three major influences that mark the future development of the region: globalization, regionalization and Euro-Asian integration. We propose that under these three influences, a new global integration zone, consisting of multiple networks between cities of the Black Sea Region is emerging. Our proposition that a new global integration zone is emerging within the Black Sea Region depends on three assumptions: Our first assumption is that neo-liberal globalization and regionalization (and particularly Euro-Asian integration) lead to development of similar political changes in the region. Our second assumption is that neo-liberal globalization and regionalization lead to development of similar spatial socio-economic developments within the Black Sea Region which brings some cities to the fore to gain power in the national and global organization of production. Our third assumption is that there is increasing trans-national integration between subject cities. Emergence of such a zone is perhaps most important for policy makers at the local level who have to face either positive or negative on-site effects of globalization and regionalization. Increasing socio-economic inequalities, excessive agglomeration of economic activities and population, diversification of population and increasing complexity of problems cripple traditional city management and planning practices in these countries which have a strong central planning and administration background. Due to practical reasons, we limit our study to integration of two sub-national regions, the province of Istanbul, and the province of Odessa which are also sister cities. Province of Istanbul may be recalled as Greater Istanbul, or Istanbul Metropolitan City since at 2004 due to change in the administrative legislation. Province of Odessa includes the city of Odessa as well as other cities within the province. We may conclude that there is progressive convergence in the political grounds between Turkey-Ukraine and Istanbul-Odessa, mainly in the framework of the global structures that are predominantly part of the Euro-Atlantic supra-structure. Though there is not much evidence of similarity in spatial development of Istanbul and Odessa, particularly due to political inclarity and problems of administrative decentralization in Ukraine, there is evidence of economic and social integration, between Turkey-Ukraine and Istanbul-Odessa, which experiences slow development, and negative side effects like informal activities. As a conclusion we may argue that integration of two regions might heavily depend on the Ukrainian foreign and domestic policies, and the decisions of supra-national structures like the World Trade Organization and EU. We may expect a progress in economic integration by the removal of trade barriers, where Istanbul and Odessa would be direct beneficiaries as both production and transfer centres. Further administrative decentralization in Ukraine might lead to a re-population in Odessa Region, as happened in Istanbul after the 1980 period. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p466&r=tra |
| By: | Marijana Sumpor; Irena Dokic; Jaksa Puljiz |
| Abstract: | Generated as a response to the requirements in managing European cross border cooperation programmes, Neighbourhood Programme Slovenia-Hungary-Croatia 2004-2006 (NP) in particular served as an impetus for establishment of new modes of governance in Croatia. Together with Hungary and Slovenia, Croatia participates in this trilateral Programme as an external EU border candidate state. The NP is implemented as a grant scheme in Croatia for the first time requiring many institutional changes for its implementation. On all levels of government, the NP contributed to the establishment of stronger relations among institutions, horizontally and vertically, and a transfer of know-how in preparation and implementation from experienced partners, Slovenia and Hungary. Such a complex programme generated also problems due to weak administrative capacity, different sources of financing and socio-economic discrepancies. On national level, weak capacity of the Croatian Ministry of Foreign Affairs and European Integration (MFAEI) has directly influenced the initiation and implementation of NP and difficulties in the decision-making process occurred. The relationship between MFAEI and the Delegation of the European Commission was unclear and there were difficulties in developing new administrative procedures. Additionally, insufficiently transparent information dissemination mechanisms through different government levels influenced the quality and selection of project proposals in certain counties. Socio-cultural differences in Croatia were insufficiently considered while setting up the coordination system resulting in the extent and quality of submitted proposals and their success in the selection procedure. Some regions showed successful coordination on county level contributing to selection of greater number of proposals from those counties, while in others, there was a lack of capacity in preparing coherent project proposals. In accordance with the presented first Croatian experiences in the trilateral European cross-border programme, the following can be concluded: In terms of socio-developmental impacts, the joint-project proposal preparation process of the cross border partners created intensive inter-institutional cooperation and inter-institutional communication. However, only successful project proposals result in inter-institutional collaboration through joint implementation of projects, which is considered fundamental to the creation of a network society and building of social capital. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p386&r=tra |
| By: | Peter Huber; Michael Paffermayr; Yvonne Wolfmayr |
| Abstract: | We estimate a linear approximation of the market potential function for Europe as derived in geography and trade models. Using a spatial econometric estimation approach, border effects are identified by a differential impact of nearby regions' purchasing power, depending on whether two regions are located within the EU15 or outside the EU15. Our results reveal substantial market potential effects on nominal wage rates. We also find significant border effects between EU15 and non-EU15 countries. Our estimation results suggest that the enlargement of the EU in May 2004 may lead to pronounced wage effects in the new member states, but to relatively small ones for the existing members and that regional disparities within new member states will increase. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p469&r=tra |
| By: | Jasmina Osmankovic |
| Abstract: | The paper is a review European Commission support for local and regional development in Bosnia and Herzegovina from 1999 to 2006. In focus are The Quick Impact Facility Project Phase I (QIF 1) 1999-2002, European Union-Quick Impact Facility Project Phase II (EUQIF II) 2002-2004, European Union support for Regional Economic Development in Bosnia and Herzegovina Phase I (EU RED I) 2004-2005 and Europe Union support for Regional Economic Development in Bosnia and Herzegovina Phase II (EU RED II) 2005-2007). The paper contents background information, previous assistance, other related programmes, European Commission funded projects, non European Commission funded projects, definition on participants, target groups or beneficiaries, employed domicile populations, start situation, objectives, scope of work, methodology and approach, transparency, visibility, expected outputs and indicators, funds or budget, reporting, monitoring and evaluation. The paper presents knowledge transfer about local and regional theories and policies from experts European Commission to local experts. The paper shows funds. (Regional Development in Tuzla 1.2 Million Euro, Regional Development in Brcko 1.0 Million Euro, Mostar Economic Development 500.000 Euro, Sarajevo Economic Region 200.000 Euro, Quick Impact Facility 5.5 Million Euro, Foreign Investment Promotion 1.0 Million Euro, European Fund 55 Million Euro, specific activities 3,200.000 Euro and Project Fund 3,800.000 Euro, EUQIF II about 3 Million Euro, etc) and benefits for EU and B&H. In the end, the paper presents cost-benefit analysis, and strengths, weaknesses, opportunities and threats this projects and message for future projects support for local and regional development in Bosnia and Herzegovina and other developing countries |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p57&r=tra |