|
on Transition Economics |
| By: | Yevgeniya Shevtsova |
| Abstract: | The paper empirically assesses microeconomic exporting-productivity nexus using the data for Ukrainian manufacturing and service sectors for the years 2000-2005. The results of the estimation show that firms with higher total factor productivity (TFP) levels in the period prior to entry are much more likely to enter export markets. Also age, size and intangible assets of the firm have significant positive influence on the probability of exporting. The results also suggest significant positive post-entry productivity effect for the firms that enter export markets and negative productivity effect for those that exit. At the industry level the results also confirm the presence of learning-by-exporting effect. However the effect is not universal and varies between different types of exporting firms and export destinations. Firms that export to the countries of the European Union and other OECD countries experience higher advances in their TFP than firms exporting to other CIS countries. The magnitude of the effect is also positively correlated with the capital intensity of the industries. These findings have important implications for the formation of industrial policies, suggesting that government programs designed to upgrade firms’ productivity and innovative capabilities would increase the ability of domestic firms to overcome foreign market barriers as well as assimilate further benefits arising from exporting, which can further enhance international competitiveness of Ukrainian firms. |
| Keywords: | exports; TFP; matching; Heckman procedure; system GMM; sample selection; endogeneity. |
| JEL: | D24 F14 L25 R38 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:12/18&r=tra |
| By: | Muravyev, Alexander; Berezinets, Irina; Ilina, Yulia |
| Abstract: | This article studies the link between corporate governance conflicts on the one hand, and employment and wage policies of companies on the other. We use data on publicly traded Russian companies with dual class stock (common and preferred shares), which allows us to use the concept of voting premium for measurement of corporate conflicts and private benefits of control. Our analysis suggests a link between the severity of corporate governance problems between shareholders and managers and the company’s wage policies. In particular, managers who try to consume private benefits and expropriate shareholders, have to resort to more generous policies regarding workers’ wages. Importantly, this link is apparent only in companies with relatively dispersed ownership, in which managers have considerable discretion and are not constrained by obligations before large shareholders. In contrast, the link between extraction of private benefits of control and wage policies is not visible in companies with a majority shareholder. |
| Keywords: | corporate governance; private benefits of control; dual class stock firms; employment and wage policies; Russia |
| JEL: | G30 J30 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:40215&r=tra |
| By: | Marin, Dalia; Rousová, Linda |
| Abstract: | Recent literature on international trade has established that the most productive firms become multinationals. But our data reveal a startling variation in productivity levels of foreign affliates across the countries in Eastern Europe of the same European multinational parent firms suggesting that not all multinationals transplant their home productivity advantage to the new EU Member States and Emerging Europe. One candidate for this startling difference in productivity levels among foreign affiliates is the ability of European multinationals to transport their business model abroad. This paper examines the conditions under which European multinationals give autonomy to their subsidiaries and delegate authority to them. We also analyse the conditions under which European multinationals transplant their business model to Eastern Europe. We collect original and unique matched parent and affiliate data on the internal organization of 660 German and Austrian parent firms and 2200 of their subsidiaries in Eastern Europe including the former Soviet Union. We test the hypothesis that the ability of European multinationals to transplant their business model to foreign affiliates is determined by the organization of European multinationals on the one hand and the market environment their affiliate firms face in Eastern Europe on the other hand. We show that the business culture of parent firms accounts for about 50 percent of the variation of the organization of subsidiaries, while the market environment of subsidiaries contributes the rest. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:367&r=tra |
| By: | Ondøej Glazar (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); PhDr. Wadim Strielkowski. (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Blanka Weyskrabova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | This paper aims to analyse migration and remittances in Central and Eastern European countries (CEECs) on the case study of Ukrainian labour migrants in the Czech Republic using primary data from survey questionnaires collected by the Ukrainian Migration Project (UMP). More specifically, it seeks to examine features and determinants of migration and remittances sent by Ukrainian labour migrants from the Czech Republic to Ukraine. <BR>Our results show that in the case of Ukrainian migrants in the Czech Republic the main determinants of the decision whether to migrate, in order to provide own families with additional income, are demographic characteristics and income of the receiving household, while the level of education does not affect this decision. Further, we found that the remitted amount depends mainly on the labour migrant’s income in the Czech Republic. No statistical significance was found in the relationship between the remitted amount and the income level of the receiving household. Moreover, we did not find any support for channelling remittances primarily into non-productive consumption in the data. On the other hand, no other productive spending besides the spending on house construction was confirmed either. <BR>Good understanding of determinants and motives that are interconnected with them should be helpful for policymakers on both sides of the migration corridor to formulate proper policies that aim at influencing the migration and remittances flows. Thus, certain policy implications might be derived from this research in order to channel Ukrainian migration in CEECs and benefit from remittance transfers.<BR> |
| Keywords: | international migration, labour market, CEECs, Czech Republic, Ukraine, remittances, remittance behaviour, migration and development policies |
| JEL: | C33 F22 F24 J61 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2012_19&r=tra |
| By: | Xuebo Zhan; Yishiro Higano; Huanzheng Du |
| Abstract: | Wuhan City is located in the central part of China, which is an import foothold of the transportation, manufacturing industry, commerce and education in China. Chinese government appointed Wuhan City as a national pilot reform area of resource-saving and environmentally friendly society at the end of 2007. There is a great deal of fresh water resources in Wuhan City, and Wuhan City is known as 'the city with 100 lakes'. However, about 60% of the lake water resources have became seriously polluted in Wuhan City. The most important reason for water degradation of Wuhan City is the imbalance between rapid economic development and the environment load capacity. In this study, we raised synthetic policies to reduce amount of lake water pollutants and realize the harmonious development between regional economy and water environment. In this paper, we focused on three contamination materials (COD, T-N and T-P) and constructed a model from environmental load, socio-economy and water quality improvement policies. We performed optimization simulation based on linear programming to maximize gross regional production (GRP) and reduce environmental load, and finally we suggested proper policies to improve water quality in this area. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1636&r=tra |
| By: | Vernikov, Andrei |
| Abstract: | We assess the effects from the industrial policy of growing state-controlled national champions on the Russian banking system, its concentration and competitiveness. Some light is shed on comparative financial performance of state-controlled banks versus other market participants. We also show that direct stare ownership is being replaced by indirect ownership and control. The period of observations spreads from 2000 through 1Q 2012. We modify the method of calculating the indicators of market concentration to reflect public ownership of the core market players. As a result of this modification, most market segments cross the threshold of high concentration (HHI ≥ 0.25), whereas household deposits market becomes close to monopoly. Supremacy of public banks enhances their market power and enables collecting rent that boosts profitability. In terms of institutional dynamics, we find a growing similarity between the Russian case and the evolution of the Chinese banking industry. |
| Keywords: | Russia; state-owned banks; public sector; industrial policy; national champions; market structure; concentration; Herfindahl-Hirschman Index |
| JEL: | L13 G28 G21 |
| Date: | 2012–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:40236&r=tra |
| By: | Maksim Belitski; Julia Korosteleva |
| Abstract: | The importance of entrepreneurship as a driving force in the economic development has been widely recognised. Respectively, a growing number of empirical studies have focused on explaining variation in entrepreneurial activity at various spatial levels with the majority of them taking either a cross-country perspective or looking at the inter-regional differences. Given limited city-level data availability, scarce work has been undertaken so far on cross-city entrepreneurship within the spatially oriented entrepreneurship research. Furthermore, to our best knowledge, no empirical studies exist on entrepreneurship across European cities and our paper aims to bridge this gap. The object of the paper is to analyse the variation in entrepreneurial activity across European cities. More specifically, by harmonizing the city level data in 31 European countries, based on European Urban Audit Survey (Eurostat) data, we undertake a panel data study of how various demographic, socio-economic, ethnic and geographical characteristics of European cities and institutional country-level settings affect entrepreneurship in 377 European cities during the period of 1989-2006. We use the rate of self-employment as a measure of entrepreneurship. While controlling for various spatial effects across cities we find that the rate of self-employment is largely explained by city size, socio-economic characteristics, such as the level of education and city inhabitants' wellbeing, city ethnicity and size of a local government. Institutional quality, including a property right system and democratic institutions, and city location affect entrepreneurship. Our findings fail to support a hypothesis of the importance of capital city incubators, Euroregions and EU enlargement for entrepreneurial activity. Surprisingly, our city location results suggest that cities in the south of Europe are more entrepreneurial than in the north. Along with a positive effect of a lower education and insignificant effect of a city typology associated with high-tech entrepreneurship. Keywords: Entrepreneurship, Agglomeration, Labour market, Western Europe, Eastern Europe, Urban JEL Codes: L26 R10 R30 O31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1646&r=tra |
| By: | Jinfeng Wang; Xuhua Liu; Hongyan Chen |
| Abstract: | China has been experiencing urbanization at an unprecedented rate over the last two decades. This study analyzes the impact of urbanization on land occupation. Cities are clustered by their functions and development stages, which is illustrated by a cluster tree, a dynamic tree that depicts the evolution of cities. The evolution tree in one year is used to predict the state of a city in a future time period. Another application of the evolution tree is to predict urban-type relevant phenomena, such as urban occupation. It is found that comprehensive cities, business cities, and manufacturing cities have higher urban expansion rates than tourist cities, with a few exceptions that focus on both industry and tourism. Meanwhile, the speed and extent of city land growth are dominated by industrialization stages and economic patterns, as well as leap-development. The methodology presented in this study is especially suitable for identifying transition paths of a stochastic process in a complex dataset of 253 cities in China. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1360&r=tra |
| By: | Yoshiro Higano; Feng Xu; Jingjing Yan; Takeshi Mizunoya; Huanzheng Du |
| Abstract: | In the study, we proposed the environmental policies to decrease water pollutants that generate from household, non-point and production in Jiaxing city of China. We especially introduced biomass plant technology for pig farming industry in order to improve the water environment. We constructed environmental model and social economic model by computer simulation that evaluated the efficiency of biomass plant technology from both water environmental preservation and social economic development. The research established the significance and feasibility of introducing biomass plant technology that allows simultaneous pursuit of environmental improvement and regional development. The comprehensive evaluation and optimal policies are expected to form the basis of decision-making in Jiaxing city. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1637&r=tra |
| By: | Yuheng Li |
| Abstract: | Recently, urban-rural linkages have been increasingly gaining momentum in the economic development and poverty alleviation in urban and rural areas. However, flows of people, goods, capital and information between urban and rural areas can be beneficial or detrimental to either urban or rural areas. Thus, it is important to manage these flows. Small and medium-sized towns are considered as a positive role of being the urban-rural interface through which modernization and wealth trickle down from cities to villages, especially in the process of decentralization and urbanization. Nevertheless, the paper argues that small and medium-sized towns at the peri-urban or urban fringe merely serve as the extension of urban influence over rural areas since rural peasants are disorganized and often passively affected by such influence. The aim of this paper is to explore agricultural cooperatives acting as a new type of urban-rural interface in China. Through comparison with small towns, the paper considers agricultural cooperatives as dynamic, rural-favored and space-beyond interface through which urban-rural linkages are strengthened and rural development is further promoted. The framework of agricultural cooperatives being the new type of urban-rural interface is depicted. The paper stresses the necessity of developing agricultural cooperatives to intensify the urban-rural interaction in the Chinese context of major rural population. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p844&r=tra |
| By: | Jitka Kloudova; Jianpeng Zhang |
| Abstract: | The creative economy is playing a more and more important role in regional development to generate income and jobs opportunity. At the centre of creative economy, many evidences show that the creative industries are the most dynamic emerging sectors. In many countries, especially in developed countries, the growth rate of creative industries is more than that of GDP and other industries. In this paper, we examined how is the relationship between the ratio of creative industries' value added to GDP and GDP per capital and if the growth rate of creative industries is more than that of secondary industry through the empirical analysis of Chinese 23 regions data. The results show that strong and significant correlations can be found between the ratio of creative industries' value added and the GDP per capital. There is no evidence to show that growth rate of creative industries is deferent that of secondary industry for all the regions. But when we divide the samples as two groups, there is weak evidence to infer that the growth rate of creative industries is more than that of secondary industry for higher GDP per capital regions; on the contrary, there is overwhelming evidence to infer that the growth rate of secondary industry is more than that of creative industries for lower GDP per capital regions. Key words: creative industries, secondary industry, regional development, China |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p635&r=tra |
| By: | Jaanika Merik¸ll; Helen Poltim‰e; Tiiu Paas |
| Abstract: | The process of European integration has introduced a valuable empirical example on the impact of economic integration on income convergence. Many empirical papers confirm the income convergence within the new member states and between the new and old members. At the same time it is found that the main contribution to economic growth in these catching-up countries comes from the total factor productivity growth (TFP), which motivates us to take a deeper look on the factors behind TFP developments. The objective of this paper is to shed light on the characteristics behind the productivity development in the new EU member countries. It may be generalised that the productivity development of a country, industry or firm is determined by two main factors: its own effort to develop new technologies and some external technology pool. The ability to internalize the latter into the own productivity growth depends again on many factors like: various technology diffusion channels as foreign direct investment (FDI); import and export; absorptive capacity and geographic proximity. There is a vast empirical literature on drivers of productivity and productivity spillovers, but up to our knowledge there is no comparative analysis on CEE countries. The CEE countries are typical middle income countries that do not devote many resources on own R&D, but due to the common market have presumably benefited a lot from the technology pool of the neighbouring high-income EU members. Our paper contributes to the literature by investigating comparatively the eight EU members with former Soviet background and controlling for geographical proximity. We compose a 2-digit NACE industry-level data set over the time-span of 1995-2007 and employ a dynamic panel data analysis methods suggested by Arellano-Bover/Blundell-Bond. The preliminary results indicate that compared to studies on high-income countries CEE countries have benefited relatively more from foreign R&D stock and this effect is the strongest for small countries. Our analysis shows also that the geographical proximity to the high-income countries matters and within the EU geographic proximity is a better technology diffusion channel than trade flows. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p931&r=tra |
| By: | Akos Jakobi |
| Abstract: | As a governmental institution the Public Employment Service in Hungary has the function to control and register official labour immigration by accomplishing regulations connected to employment permissions. As a result of the activity this institution collected a real large, and up to now basically not much explored database on the official employment of these foreign people, making it possible to find out what spatial and socio-economic features are characterising these processes. In the last decade 60-80 thousand foreign citizens were employed yearly in Hungary, of them the majority is coming from the neighbouring countries. This paper is focusing on employees coming from Romania, Slovakia and Ukraine, which countries are sending the most people to Hungary. Annually nearly 30-40 thousand low educated men of Romanian citizenship receive manual legal employment in the Hungarian labour market. The vast majority of them works in Budapest and its agglomeration as unskilled or semi-skilled workers in the construction industry, in manufacturing of machinery, in retail trade or in agriculture in the Great Plain. They are almost all Hungarians from Transylvania, for whom the Hungarian labour market grants higher safety of existence and employment with more comforts than at home. The primary motivation for their employment is the labour shortage in the Hungarian labour market. In other countries like in Slovakia different motivation factors appeared, since more skilled workers received employment in not only basic industrial and service branches. As a comparison labour migrants from Ukraine have more or less similar employment characteristics to people of Romanian citizenship. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p748&r=tra |
| By: | Jesus Crespo Cuaresma (Department of Economics, Vienna University of Economics and Business); Miroslava Havettova (Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava); Martin Labaj (Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava and Institute of Economic Research, Slovak Academy of Sciences) |
| Abstract: | We employ income projection models based on human capital dynamics in order to assess quantitatively the role that educational improvements are expected to play as a driver of future income convergence in Europe. We concentrate on income convergence dynamics between emerging economies in Central and Eastern Europe and Western European countries during the next 50 years. Our results indicate that improvements in human capital contribute significantly to the income convergence potential of European emerging economies. Using realistic scenarios, we quantify the effect that future human capital investments paths are expected to have in terms of speeding up the income convergence process in the region. The income projection exercise shows that the returns to investing in education in terms of income convergence in Europe could be sizeable, although it may take relatively long for the poorer economies of the region to rip the growth benefits. |
| Keywords: | Economic growth, income convergence, human capital, income projections, Europe, emerging economies |
| JEL: | O47 O52 I25 P27 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp143&r=tra |
| By: | Susanne Milcher; Manfred M. Fischer |
| Abstract: | This paper lies in the tradition of decomposition analysis of wage differentials based on the model set forth in Blinder (1973) and Oaxaca (1973), and aims to measure labour market discrimination against Roma in South East European countries (Albania, Bulgaria, Croatia, Serbia and Kosovo). We use microdata from 2004 UNDP household survey and a Bayesian approach, proposed by Keith and LeSage (2003), for the decomposition analysis of wage differentials. Statistical inference for both discrimination and characteristics effects estimates are based on Markov Chain Monte Carlo (MCMC) estimation. Variance estimates derived from this method of estimation are known to reflect the true posterior variance when a sufficiently large sample of MCMC draws is carried out. The results provide clear evidence for labour market discrimination against Roma in Albania and Kosovo, but not so in Bulgaria, Croatia, and Serbia. Nevertheless, there are significant differences in how individual characteristics are valued between Roma and non-Roma. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p474&r=tra |
| By: | Milan Vosta |
| Abstract: | Migration is influencing the present happening in Europe. This whole phenomenon is associated with many paradoxes and contradictory working factors. The deployment of international migrants is very uneven. For the immigrants is characteristic the increase of their human capital, gaining new experience, and flexibility. Migration is sometimes perceived as a part of globalization and transformation, which is partly true, but there should be put more effort to come up with the solution of the migration reasons and the migrant integration. Migration models are connected to the historical bonds and big attention is paid to analyze them. A broader approach is needed and the analyzing of migration development in time. The common interest in this phenomenon leads into the harmonized measures through out the whole EU. The impact of migration on the labor market as well as on the economy as a whole depends on the age, education and the length of stay of the migrant in the specific country. Migration can be more influenced by unqualified or seasonal jobs. The overall economical effects on the labor market are relatively marginal. Positive effects are: increase of economical prosperity as well in the host state as the country of origin, lower wage of the migrant than is the added value, which he produces, existing economies of scale in specific production sectors. Negative effects are: uneven distribution of capital income, time horizon of migration, pressure on the health care and social system in case of illegal migration.Regarding the present demographic situation in most EU member states is immigration one of the ways how to solve the lack of labor force. Leading representatives try to coordinate the migration policy, which would secure concerned approach and legal frame to immigrants. This policy shouldn’t be built just on temporary needs of the labor market, but should involve human rights, equal rights and nondiscrimination. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p587&r=tra |
| By: | Michael Moritz |
| Abstract: | In the process of European integration, regions close to a border are especially affected by labour market liberalisation. Using data from the IAB employment subsample (IABS) and the employment register (BeH) for the period before and after the opening of the border (1980-2001) I shed light on the development of wages. Both German employees and Czech commuters in the western German borderland of Bavaria are compared to other domestic and foreign workers. At the beginning of the 1990s German legislation was relatively unrestrictive, so that it was quite easy for Czech workers to obtain a work permit beyond the border. Most of them had only low-skilled education. More than 5% of the eastern Bavarian male, low-skilled workforce was reported Czech in the early 1990s. Czech commuters were almost exclusively employed in five of the 27 Bavarian employment office districts overall, many of them in the building industry, the hotel and catering industry and the wholesale and retail industry. Surprisingly, precisely in this period German employees seem to have benefited from integration, but suffered in the years afterwards, when regulations on labour permits for commuters were far stricter. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p438&r=tra |
| By: | Kapnang, Herrman Brice |
| Abstract: | This study employs the Johansen cointegration and Granger causality to analyze the relation-ship between air pollution and economic growth in China. It allows to draw lessons and de-rive implications for the causal links between these two variables. The results show that these two variables are cointegrated and that 15% threshold, there is a unidirectional causal rela-tionship between them. On the other hand, there is a positive long-term relationship between economic growth and air pollution. In other words, the idea of an environmental Kuznets curve fails to apply to China. These results suggest recommendations that can help the Chi-nese authorities in environmental management in order to lay the foundations for sustainable growth. |
| Keywords: | pollution, Croissance économique, courbe environnementale de Kuznets, Causalité, cointégration |
| JEL: | Q56 |
| Date: | 2012–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39965&r=tra |
| By: | Nuri Yavan |
| Abstract: | A large body of empirical literature exists on location specific factors of developed countries multinational firms. Indeed, most of previous studies focus on the flows of outward foreign direct investment (FDI) from developed economies. Nevertheless, still there exists a knowledge gap in the literature on the location choice of multinational firms from developing economies. Therefore, it is essential to investigate the role of firms from emerging economies like Turkey in this process. In this context, this paper seeks to examine the location determinants of Turkish outward FDI in Eurasian Countries. We empirically examine the important factors for the location decisions of Turkish outward FDI, considering both Central and Eastern Europe Countries (CEEC) and Independent State of Commonwealth (CIS) at very different stages of economic development. Thus, the paper investigates the determinants of Turkish outward FDI using location factors of CEEC and CIS countries. Based on various types of regression models, we test our hypotheses employing official Turkish outward FDI data collected between 1993 and 2006. Our empirical results indicates that several location factors of the host country such as cultural distance, natural resources, market size, privatization and wage are the significant determinants in the case of Turkish outward FDI. We also find important differences between CEE and CIS countries regarding location determinants. While some location factors are important for Turkish outward FDI in CEE countries, some of these have no impact on Turkish OFDI in CIS countries. As a result, this paper offers some theoretical and empirical contributions as well as managerial implications. Key Words: Outward foreign direct investment, Turkish outward FDI, Location choice, Economic geography, Multinational firm, CEE and CIS countries. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p684&r=tra |
| By: | Anca Dachin; Daniela Constantin; Zizi Goschin; Constantin Mitrut; Bogdan Ileanu |
| Abstract: | Among the EU countries, Romania displays the highest share of rural population (45%), most of it employed in agriculture. Moreover, there is a significant variation between the eight NUTS 2 regions with regards to the urban distribution and dynamics, with important intra-regional differences between the constituent counties. This paper proposes an inquiry into the capacity of urban centres to contribute to rural development in Romania from R&D and innovation perspective. First, the rural-urban gap is discussed, pointing at the consequences of the delay in implementing the reform of the production system in agriculture in terms of employment and income. Then, the positive influence of towns and cities on raising the share of employment in non-agricultural activities in rural areas is demonstrated by means of the available statistical data. Further on, the analysis of the regional dimension of R&D and innovation shows an increasing polarisation both between and within the eight development regions. The main conclusion is that the regions or counties with predominantly agricultural activities developed in subsistence households are not enough prepared to access R&D and innovation results. This conclusion is also confirmed by a regression model that analyses the influence of rural areas on regional growth. The above findings are examined in correlation with the expected positive contribution of the current rural development programme as well as of the regional operational programme and competitiveness sectorial programme funded by the EU. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1236&r=tra |
| By: | Imre Lengyel |
| Abstract: | More and more scholars of regional science are interested nowadays in the question what role do clusters in city-regions play in the knowledge-based economy. This question can be dealt with from the functional or nodal regions point of view and one has to examine the factors that influence regional competitiveness. The answers are especially important for the Hungarian city-regions, since between 2007 and 2013 they are aimed with significant subsidies from EU regional development funds to improve their competitiveness. In this paper we outline our analytical framework: the pyramid model of regional competitiveness. After this the paper assesses the competitiveness types of the Hungarian functional subregions, as city-regions (LAU1). A complex methodology, with the help of multi-variable data analysing methods, is used throughout our statistical analysis to underlie the classification of city-regions. For the clusters mapping in these regions we apply the location quotient (LQ) method. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p313&r=tra |
| By: | Egle Tafenau; Tiiu Paas |
| Abstract: | The interaction of inequality and growth and the direction of causality in this relationship have been an extensively discussed topic with several questions but without clear answers both in the theoretical and empirical literature. The current paper contributes mainly into the new economic geography (NEG) literature by focusing on the member states of the European Union. The purpose of the paper is to shed light on the effect of the economic development level and speed of growth on the relationship between economic growth and regional inequality. The research hypothesis of a significant interrelation between regional inequality and economic growth is discussed based on the models of NEG. The empirical part of the paper relies on the regional data of the 27 European Union member states at the classification level NUTS 3 over the period 1996–2006. The results of the empirical analysis allow us to conclude that regional inequality has a pro-cyclical character: regional inequality is as a rule higher in countries and time periods when economic growth is faster. However, this relationship varied between the countries of the EU-27 during the period under observation, depending on the development level. While in the Western European countries regional inequality and economic growth are negatively related, in the Eastern European countries regional inequality increases in the periods of fast economic growth. Relying on the NEG models, such differences can be explained by a different weight of internal and foreign markets in trade relations of countries and regions. Possibly the result also refers to disparities in congestion costs in Western and Eastern European core regions. We conclude that growth enhancing policy measures should be implemented at a different regional scale, depending on the level of economic development and growth of the countries. Growth supporting policies in poor countries should first of all concentrate on achieving sustainable national growth, not on reducing regional disparities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p938&r=tra |
| By: | Wenjie Wu |
| Abstract: | Over 140 billion CNY (1GBP=10CNY) has been spent between 2000 and 2012 in Beijing on the construction of new rail transit lines. This massive public investment allows me to examine the consequences of transport improvements for land prices near rail stations. Using unique vacant parcel-specific data, I estimate the significant heterogeneity in the capitalization effects of rail transit development for multiple land uses in Beijing urbanised area. The results show that these transport improvements, identified by the parcel-station distance reductions, give rise to sizeable price premiums in the local residential and commercial land markets. Strikingly, the difference between the increase in the value of residential and commercial land parcels are not distributed evenly. These findings lend to support the evidence that public investment has an essential role to play in spurring the spatially targeted land market and provide implications for further land and transport policy making in China. |
| Keywords: | Land prices, transport improvement, Geographical Information System, China |
| JEL: | H41 Q51 R41 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0116&r=tra |
| By: | Dwayne Benjamin; Loren Brandt; Brian McCaig; Nguyen Le Hoa |
| Abstract: | In this paper we estimate the impact of a land reform program in the Central Highlands of Vietnam. In 2002, Program 132 directed the transfer of farm land to ethnic minority households that had less than one hectare of land. Using the 2002 Vietnam Living Standards Survey as a baseline, in 2007 we resurveyed over one thousand households to provide a retrospective evaluation of the impact of their participation in Program 132. We supplemented the household-level panel with commune and district-level surveys as well as local interviews in order to better understand the details of program implementation. Contrary to official reports that the program was implemented as intended, our findings show that there was considerable deviation from the planned program parameters: Many eligible households did not receive land, while ineligible households often did. We estimate that beneficiaries of the program in the province of Kontum experienced increases of household income largely in line with what one would expect from a small plot of poor farm land. Outside Kontum, where participation rates were substantially lower, household incomes did not improve with program participation, though this could be explained by lags in the maturation of perennial crops. Overall, our results underscore the limitations of simple transfers of land as a mechanism for improving the living standards of ethnic minorities. Our results also show the significant gap that can exist between simple program design and decentralized implementation, the potential implications of which we discuss for program evaluation. |
| Keywords: | Land Reform; Vietnam; Ethnic Minorities; Program Evaluation |
| JEL: | Q15 I3 O12 O13 |
| Date: | 2012–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-461&r=tra |
| By: | Uwe Blien; Van Phan |
| Abstract: | 20 years after the fall of the Berlin Wall there is still a strong division between the economies and labour markets of eastern and western Germany. In the last few years, however, unemployment has been reduced especially in the East, even in times of economic crisis. Within eastern Germany a strong variation of labour market situations is visible, which has been relatively stable in time. A centre-periphery-structure can be understood by those approaches of regional economics which have the property of path dependency like the New Economic Geography. In the paper the development of unemployment is analysed in a spatial econometrics framework which uses a three-equations background (in the spirit of Elhorst). The results show convergence processes (beta- and sigma-convergence) which are not very strong. An industry structure with an emphasis on manufacturing helps to reduce unemployment. In the analysis spatial autocorrelation is revealed of being significant. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p935&r=tra |
| By: | Miroslav Sipikal |
| Abstract: | Foreign direct investment could be very important external source for economic growth, especially in the less developed countries. Several studies showed strong concentration of FDI in most developed regions of the hosting countries, which lead to increasing regional disparities within these countries. FDI often cause crowd out effects for domestic firms in lagging regions. The article will examines role of regional policy in FDI attraction in order to achieve more regional benefits from FDI. We will analyze most often measures taken by regional policy and its interaction with other policies. We will show case study of several regions in Central Europe as an example. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p126&r=tra |
| By: | Olga Aleshina |
| Abstract: | Northern territories in Asian Part of Russia hold significant mineral resource abundance. This region can also be viewed as an outstanding geopolitical and military potential of Russia. On the other hand, economic development here is embarrassed with severe climatic conditions, underpopulation and unavailability of infrastructure. Targeting to proportion costs and benefits of the rising economic activity on the territory we analyze its prospects and challenges. For the central point would be taken intricacies with transport component when running projects of the local deposits deployment. As non-ferrous metals are the most likely to form the essential branch of Northern industry, they will originate substantial material flow in the area. This leads us to the point local transportation lines should be improved by far. Sea carriage is almost exclusive mode of transportation available for the purposes of Arctic littoral regions and furthermore the list expensive. Therefore reinforcement of Northern Sea Route (NSR) plays the vital role in developing of in question regions’ economy. Multisectoral multi-regional model allows to link growth of non-ferrous metals complex and progress of sea transport corridor (NSR). Suppose the whole country is oriented for the maximization of public welfare and economic growth rate. In these terms our investigation led to a key-note conclusion: long-term goals of the whole country are attained superior when running active economical policy in the North. The crux is large non-ferrous metals sector companies are ready to enter the area if the government provides substantial financial support for infrastructure improvements. Simultaneously, in our case economic development should not implicate people to settle the territory. Rotation system is implied. All potential resource abundant zones are to be attached to the congruent NSR harbors, thereby regional centers. The system of aqua-territorial industrial complexes is suggested as an efficient form of economic life in Northern regions of Asian Russia. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p410&r=tra |
| By: | Evgeniya Kolomak |
| Abstract: | Aims of the study are to estimate 1) contribution of infrastructure capital in productivity growth in Russia, and 2) level and spatial extension of the spillovers for different categories of infrastructure. We measure stock of the traditional infrastructure sectors: railways, highways, communication. We use data for 79 Russian regions, covered period is 1992 - 2007. The basic idea of econometric estimates is to expand a production function including infrastructure capital stock. We examine several different categories of public capital. The log-linear Cobb-Douglas form of the production function gives empirical model. We assume existence of spatial spillovers of the infrastructure elements and dependence of regional productivity on public capital of neighboring regions introducing into the model spatial weights matrix and a spatial lag component. There are several problems of econometric estimates relating to the model. The first one is correct specification of the spatial dependence, what includes construction of the spatial weights matrix. The proposed strategy is to run series of regressions using different spatial weighs matrixes. The second one is common trends of output and public capital. One of the proposed ways to resolve the problem is to use some forms of differences. The third problem involves missing variables; panel data and taking of the differences to some extent lessen this problem. Another problem is causality: does absence of progress in infrastructure capital reduce economic growth or does low growth of output decrease the demand for infrastructure? The endogeneity poses question of instrumental variables, the choice of a spatial lag of the predicted values of the dependent variable or of spatially lagged exogenous variables is considered. Infrastructure capital is a public good however its effects can be distributed uneven among different sectors of economic activity. To take this fact into account the proposed set of growth model estimations are done for two alternative production functions focusing on gross regional product and on manufacturing sector only. The results are as follows: - estimates of contribution of infrastructure capital in productivity growth in Russia; - evidence of infrastructure externalities; - estimates of infrastructure spatial spillovers for different categories. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p471&r=tra |
| By: | Velicu, Ileana |
| Abstract: | In this paper, the need for financing through a bank loan is analyzed by integrating the resources in the causal chain: bank loan - jobs - consumption - taxes - local revenues - new sources of investment - local development. Bank credit is presented as an equally available resource for different "actors" of the local community - individuals, businesses agents and local authorities. |
| Keywords: | bank loans; economic development; resources; local authorities |
| JEL: | O18 |
| Date: | 2012–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:40175&r=tra |
| By: | Marioara Iordan; Lucian Liviu Albu; Mihaela Nona Chilian |
| Abstract: | The revised Lisbon Strategy has decided upon an integrated programme of policy reforms envisaging the labor market in the context of globalization, demographic changes and fast technological progress, transposed into the integrated guidelines. Such reforms aimed at increasing the employment rates, at improving work quality and labor productivity and social and territorial cohesion; in other words, at updating and upgrading the European labor markets. In order to reach such aims, the flexicurity concept is increasingly considered and employed as a key strategic framework. Flexicurity itself may be defined as an integrated strategy aiming to improve both the labor market flexibility and job security, implying successful switching between educational system and labor market, between jobs, between unemployment and inactivity and employment, and between job and retirement. We propose a possible assessment of the perormances of the flexicurity policies by using certain composite indicators that allow for a multidimensional appraisal of flexicurity in the EU countries, providing also elements for comparison between the EU countries and regions (especially the new member states and their regions). Keywords: labor market, flexicurity, composite indices, new member states JEL Classification: J08, J20, R23, R28 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p909&r=tra |
| By: | Viktor Trasberg |
| Abstract: | The main tax income for the sub-national governments in Estonia is personal income tax (PIT), which is shared between central and local governments. Since 2004, the share of that tax which is allocated to local governments has been steadily growing. Also, various grants from the central budget to local ones have increased. The situation changed radically during recession years. To cope with the central budget deficit, the central government cut transfers to the local governments and redistributed the PIT revenues in favor of central budget. As a result, the local governments’ fiscal situation deteriorated significantly. Also, local governments’ ability to attract additional funds from EU sources (e.g. structural funds) has been lessened. The research paper concentrates on the analyses of PIT income revenue fluctuations across the local governments and recession impact on various sub-national government groups. There is different importance (share) of PIT revenues in the local budgets. Then higher the incomes in a jurisdiction, there is also larger municipality’s PIT revenue. Using econometric methods, there will be analyzed municipalities revenue factors, impact of central government policies and municipalities fiscal position in the situation of sharp economic fluctuations. Additionally will be generalized municipalities activities to cope with economic recession – the measures to support jurisdictions’ residents in situation of declining public and individual revenues and other hand, increasing need for social services. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p897&r=tra |
| By: | Stefan Rehak |
| Abstract: | Knowledge generation is considered to be a collective process which requires mobilisation of number of knowledge agents. There is open debate in the literature about the role of spatial proximity for the knowledge interactions. Are proximity or distance interactions crucial for the knowledge generation? At the same time the question of the modes of knowledge governance gains on importance. If the market based knowledge interactions among firms are risky, they will require high level of investments to secure them, transaction costs will be high. In this case, such exchanges take place outside the market in other non-market structures, in principle as hierarchies (e.g. within a firm) or as hybrid contracts (e.g. long-term contracts). Turbulent and uncertain technological, business and regulatory environment in post socialist economies sharply increases the knowledge transaction costs. Due to the discontinuity in the knowledge generation processes, the economic system is characterized by high transaction and interaction costs associated with searching for economically useful knowledge in the region. Collective generation of new technological knowledge based on local intensive network interactions in post-socialist countries is a risky business from this perspective. The lack of trust among people hampers the cooperation activities and indicates potential costs emerging with opportunistic behaviour. According the main principles of transaction cost theory hierarchical organisation dominate in the governance of the knowledge processes as they are more effective to solve potential conflicts. At the same, time closed communities with a certain level of trust engaged in collective knowledge processes, may be expected as well. The empirical part of the paper is based on the case study of territorial knowledge dynamics undertaken in the framework of FP6 Eurodite research project. We are highlighting specific routes of knowledge processes in the IT sector in Bratislava region Slovakia. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p892&r=tra |
| By: | Francesca Medda; Luca Cocconcelli |
| Abstract: | The economic growth of the Baltic Region after independence has largely been realised through numerous reforms and capital market liberalisation. The Estonian economy in the past two decades was highly leveraged and characterised by the increase in real estate prices. This market had the pattern of a bubble. Our objective in this work is to evaluate through standard econometric analyses the effects of the speculative trend in real estate prices in Tallinn. In particular, we examine the presence and development of speculative bubbles in the financial and real estate markets. The analysis is extended in order to evaluate how the Estonian land fiscal system failed to prevent the market distortion. We demonstrate in the conclusion that a more rigourous implementation of the Estonian land tax could have diminished the effects of the boom and bust dynamics in the real estate market in Estonia. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p302&r=tra |
| By: | Jasmina Osmankovic; Rabija Somun |
| Abstract: | Territorial cohesion and regional development – case of Bosnia and Herzegovina In paper we analyzed territorial cohesion and regional development in Bosnia and Herzegovina from 1995 to 2010. In the context this theme we analyzed convergence and disproportional into Bosnia and Herzegovina during the postwar period. We used relevant statistical methods. We focus on demographic data and standard macroeconomic data (gross domestic product, gross domestic product per capita, employment rate, unemployment rate, population rate) on local, cantonal, entities and national level fro relevant statistical offices (Statistical agencies for Bosnia and Herzegovina, Federal Office of Statistics, etc.) We hope that this result would be useful in context discussion about new territorial organization Bosnia and Herzegovina. Key words: territorial cohesion, convergence, development, Bosnia and Herzegovina |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p607&r=tra |
| By: | Dorel Ailenei; Marinas Marius-Corneliu; Dobre Mihaela-Hrisanta |
| Abstract: | The labour market is strongly segmented, being normally characterized by the coexistence of two forms of deficits: the labour demand deficit (i.e. unemployment) and the labour offer deficit (i.e. vacancy jobs). As these deficits are obvious in the case of some different occupations or of some different regions, then they will have a weak compensation. Between 2005-2008 these deficits are increasing at Romanian regions level. The most important of them are in Public administration, and Education. On regions the most importants deficits are in Bucharest-Ilfov (the richest) and North-East (the poorest). On Occupation group the biggest deficits is for specialists with intellectual and scientific occupations. There is also a trend of increasing for labour market defficits on regional level. The most important regonal deficits are in: North-East, West and Bucharest-Ilfov. On regions the most important deficits are for Farmers and skilled workers in agriculture, forestry and fishery in Bucharest-Ilfov (gravitational effect) and South-West: specialists with intellectual and scientific occupations: West,and Bucharest-Ilfov; workers for maintenance and adjustment: North-East. There is a negative relation between the two deficits, so that the rate of unemployment tends to get decreased below the level of the natural unemployment and the rate of the vacancy will get increased during the periods when a strong economic growth is recorded; the inverse relation has been represented within the „Beveridge curve”. This study is to confirm the validity of the Beveridge curve for Romania during the period between January 2004 and June 2009, using the monthly data. The estimated model has been a VAR type one, in which the two variables have been represented as first differences with 3 time lags. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1010&r=tra |