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on Transition Economics |
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Issue of 2013‒11‒16
twenty-two papers chosen by J. David Brown IZA (Institute for the Study of Labor) |
| By: | Biavaschi, Costanza (IZA); Zimmermann, Klaus F. (IZA and University of Bonn) |
| Abstract: | Despite the ongoing dialogue on facilitating mobility between the European Union and the Eastern Partnership (EaP) countries, very little is known about the magnitude and characteristics of migrants from these countries. This study aims to fill this gap by studying the size and assimilation patterns of EaP migrants in Germany. Most EaP migrants in Germany come from Ukraine but EaP migrants are a relatively small share of total migrants. EaP migrants experience worse labor market outcomes than other migrant groups, but current and potential migrants hold qualifications in those areas were skill shortages are expected. |
| Keywords: | migration, labour market, assimilation |
| JEL: | J15 J26 J61 J62 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izapps:pp72&r=tra |
| By: | Beirne, John; Liu, Guy S.; Sun, Pei |
| Abstract: | Does firm ownership change affect performance? On the basis of a mean-value analysis and a fixed effects panel analysis of over 1100 Chinese companies during the period of ownership reform (1997-2003), this paper examines the performance impact of firm ownership transformation in China. The data used allows us to compare the performance impacts of different methods taken to restructure the ownership of state firms, such as full versus partial privatisation. For China, a state-capitalist nation and the world’s largest state sector under transition, the mix of state and private ownership – partial privatisation – emerges as the best performing type of ownership model for firms. Here, the firm can gain the best synergy of both state support and private business strength. The experience of the Chinese reform shows that the political context and system are important influencing factors on ownership preference for a firm. JEL Classification: L33, O40, P27 |
| Keywords: | Chinese enterprise reform, corporate governance, firm ownership, Firm performance, privatisation |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20131598&r=tra |
| By: | Qichun He (Central University of Finance and Economics); Meng Sun (Beijing Normal University); Heng-fu Zou (Development Research Group, World Bank) |
| Abstract: | In 1994, the Chinese government introduced a new fiscal system -- the tax assignment system -- to replace the old discretion-based system of revenue-sharing. Using this natural experiment and the dynamic provincial panel data during the following period 1995-2002, we find fiscal decentralization has a significant positive effect on the physical capital investment rate in both LSDV (Least squares dummy variables) regression and system GMM (Generalized method of moments) estimation that overcomes the endogeneity of fiscal decentralization. The results are robust to controlling for other variables, and province and time effects. The independence of the local governments is no free lunch. The local officials are not elected by the local constituents. Instead, the central government solely determines their appointment and thereby disciplines them by linking their promotion with the performance of the local economy. Therefore, it is rational for local officials to raise investment rate and thereby growth to maximize their chance of promotion, explaining our findings. |
| Keywords: | Fiscal decentralization, Investment rate, Dynamic Panel data |
| JEL: | O11 O33 F43 C23 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:cuf:wpaper:592&r=tra |
| By: | Eugene Goryunov; Maria Kazakova; Laurence J. Kotlikoff; Arseny Mamedov; Kristina Nesterova; Vladimir Nazarov; Elena Grishina; Pavel Trunin; Alexey Shpenev |
| Abstract: | Every country faces what economists call an intertemporal (across time) budget constraint, which requires that its government’s future expenditures, including the servicing of its outstanding official debt, be covered by its government’s future receipts when measured in present value. The difference between the present value of a country’s future expenditures and its future receipts is called its fiscal gap. This study estimates Russia’s 2013 fiscal gap at 890 trillion rubles or $28 trillion. This longterm budget shortfall is 8.4 percent of the present value of projected GDP. Consequently, eliminating Russia’s fiscal gap on a smooth basis requires fiscal tightening by 8.4 percent of each future year’s projected GDP. One means of doing this is to immediately and permanently raise all Russian taxes by 29 percent. Another is to immediately and permanently cut all spending, apart from servicing outstanding debt, by 22.4 percent. How can a country with vast energy resources and foreign reserves and other financial assets that exceed its official debt still have very major fiscal problems? The answer is that the Russia’s energy resources are finite, whereas its expenditure needs are not. Moreover, Russia is aging and facing massive obligations from its pension system and other age related expenditures. |
| JEL: | H2 H5 H6 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19608&r=tra |
| By: | Siqi Zheng; Cong Sun; Ye Qi; Matthew E. Kahn |
| Abstract: | China’s rapid economic growth has been fueled by industrialization and urbanization. Given its export focus, this industrialization was spatially concentrated in the coastal eastern cities. Over the last decade, a spatial transformation has taken place leading to a deindustrialization of the rich coastal cities and sharp industrial growth in the inland cities. This survey examines recent work that studies the economic geography of industrial production, per-capita income, pollution and quality of life in China’s cities. We focus on the interaction between firms, local governments and the central government that together determine the new economic geography of industry and pollution within China. |
| JEL: | L23 L38 L6 R14 R23 R28 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19624&r=tra |
| By: | Hovhannisyan, Vardges; Bozic, Marin |
| Abstract: | Price endogeneity has been ignored in previous analyses of food demand in China. We exploit farm price data collected from the China National Bureau of Statistics to account for price endogeneity using reduced form price equations. Applying our unique econometric approach to the analysis of provincial-level food demand in China, we find strong statistical evidence of price endogeneity. Models that ignore price endogeneity result in substantial upward biased estimates of future food demand in China. |
| Keywords: | Consumer welfare, expenditure endogeneity, food demand in China, Generalized Quadratic AIDS, price endogeneity, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:159771&r=tra |
| By: | Christian Milelli; Alice Sindzingre |
| Abstract: | The spectacular surge in Chinese outward foreign direct investment (OFDI) has been reinforced by China’s accession to the WTO (2001). The understanding of their determinants remains a key theoretical question, in particular whether they confirm the standard conceptual framework - ‘ownership’, ‘location’, ‘internalisation’ (OLI) and ‘linkages’ (augmenting competences by learning). The paper argues that the determinants of Chinese OFDI change over time and converge toward global strategies, via a comparison between Chinese OFDI in developed countries (based on an original database of 1800 investment operations in Europe from 2002 onwards) and in developing countries (Sub-Saharan Africa, Latin America). While their impacts indeed vary according to countries’ contexts, Chinese OFDI in developed and developing countries converges toward complex and similar motives, become more mature through the combination of various modes of entry (greenfield and mergers-and-acquisitions), and exhibit more commonalities than differences. The comparison thus demonstrates that while the determinants of Chinese OFDI in developed countries were initially access to their markets, they now include efficiency-seeking motives (dispersing design, R&D and production) and assets-seeking (or augmenting assets) motives, the latter’s prevalence in developed countries (e.g., patents, skills, brands) remaining a contrast with developing countries. Chinese OFDI in developing countries is mostly driven by resource-seeking motives (strategic inputs for China’s growth), but also in resource-endowed developed countries (Australia, Canada). Large investments are driven by Chinese state-backed firms both in developed and developing countries. The growing number of Chinese small and medium private enterprises which invest in developing countries (e.g., Sub-Saharan Africa) shows that market access has increasingly become a determinant of OFDI, together with efficiency - and assets-seeking motives - rising labour costs in China being incentives for relocating abroad, in particular in labour-intensive sectors where competitiveness is driven by prices. Chinese firms often conduct these various strategies simultaneously. |
| Keywords: | China; foreign direct investment, Europe; Sub-Saharan Africa |
| JEL: | F21 F23 O53 O55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2013-34&r=tra |
| By: | Zhou, Jing; Latorre, María C. |
| Abstract: | This paper uses a 3 factor – 4 region – 15 sector computable general equilibrium model to study the impact of FDI accruing to China. We focus on the sectors of Electronics, Machinery and Textiles which account for 55.4% and 40% of Chinese overall exports and imports, respectively. Our data seem to confirm the existing empirical knowledge on the production networks between China and East Asia, and the role that the U.S. and ROW play as final markets for Chinese exports. Based on these differentiated geographical roles and on the contrasting production technologies of the three sectors, we offer an in-depth analysis of the effect of FDI inflows on production, prices and bilateral trade across China, East Asia, the U.S. and ROW. The magnitude of FDI inflows brings about proportional impacts on the increase in production and the fall in prices across the three sectors considered. However, the subsequent adjustment in bilateral trade differs. On the one hand, FDI leads to an increase of Chinese exports of Electronics and Machinery, crowding out production and exports in the rest of regions. On the other hand, the increase in FDI in Textiles still brings about increase in production which does not result in higher exports. The private consumption orientation of Textiles explains its contrasting trade pattern with respect to Electronics and Machinery. The fall in Chinese exports of Textiles in China underlies the increase on exports of Textiles across the rest of regions. However, world trade flows in Textiles are of smaller volume than the one in Electronics and Machinery. Therefore, the increase in Textiles of exports of the rest of regions does not compensate their big losses of exports in Machinery and Electronics. |
| Keywords: | Computable General Equilibirium; Intermediates; Multinationals; Triangular trade pattern; Production fragmentation; Value Chains |
| JEL: | C68 F14 F15 F17 |
| Date: | 2013–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51384&r=tra |
| By: | Matthew E. Kahn; Pei Li; Daxuan Zhao |
| Abstract: | At political boundaries, local leaders often have weak incentives to reduce polluting activity because the social costs are borne by downstream neighbors. This paper exploits a natural experiment set in China in which the central government changed the local political promotion criteria and hence incentivized local officials to reduce border pollution along specific criteria. Using a difference in difference approach, we document evidence of pollution progress with respect to targeted criteria at river boundaries. Other indicators of water quality, not targeted by the central government, do not improve after the regime shift. Using data on the economic geography of key industrial water polluters, we explore possible mechanisms. |
| JEL: | H23 H4 R48 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19620&r=tra |
| By: | Cull, Robert; Xu, Lixin Colin; Yang, Xi; Zhou, Li-An; Zhu, Tian |
| Abstract: | This paper uses data from a large survey of Chinese firms to investigate whether local government efforts to facilitate market development improve firm efficiency. Both government provision of information about products, markets, and innovation and government assistance in arranging loans are positively associated with firm efficiency. Those private firms with weak access to and knowledge of financial, input, and product markets benefit most from such assistance. These patterns are robust across multiple estimation approaches. Case studies of specific types of market facilitation by local governments are provided. The evidence is consistent with the notion that government facilitation can help some firms overcome market failures in the early stages of development. The paper argues that changing fiscal dynamics that forced local governments to become increasingly self-reliant in generating revenue and a government promotion system based on local economic performance compelled these efforts at market facilitation. |
| Keywords: | Access to Finance,Debt Markets,Banks&Banking Reform,Economic Theory&Research,Labor Policies |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6688&r=tra |
| By: | Wray , L. Randall (Asian Development Bank); Fernandez Lommen, Yolanda (Asian Development Bank) |
| Abstract: | This paper examines the fiscal and monetary policy options available to the People’s Republic of China (PRC) as a sovereign currency-issuing nation operating in a dollar standard world. The paper first summarizes a number of issues facing the PRC, including the possibility of slower growth and a number of domestic imbalances. Then, it analyzes current monetary and fiscal policy formation and examines some policy recommendations that have been advanced to deal with current areas of concern. The paper outlines the sovereign currency approach and uses it to analyze those concerns. Against this background, it is recommended that the central government’s fiscal stance should be gradually relaxed so that local government and corporate budgets can be tightened. By loosening the central government’s budget but tightening local government and corporate budgets at a measured pace, the PRC can avoid depressing growth or sparking excessive inflation. |
| Keywords: | fiscal and monetary policy options; sectoral balances approach; sovereign currency approach; middle-income trap; modern money theory |
| JEL: | E60 E61 E62 O23 |
| Date: | 2013–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0380&r=tra |
| By: | Gafarova, Gulmira; Perekhozhuk, Oleksandr; Glauben, Thomas |
| Abstract: | There are a lot of empirical studies which examine the pricing behavior of agricultural good exporters and find pricing-to-market behavior by grain exporters in the destination countries. By investigating mainly the U.S., Canadian and Australian wheat exporters’ pricing behavior, Pick and Carter (1994), Yang and Lee (2001), Lavoie (2005) and others argue that wheat exporters exercise pricing to market behavior, meaning that they price discriminate (set different prices) and achieve different markup of prices over marginal costs in some destination countries due to the exchange rate volatility. One of the recent studies by Pall et al. (2013) considers pricing behavior of the Russian exporters and concludes that Russia can implement the price discrimination in Armenia and Azerbaijan, but it does not exert market power in the world wheat market.The main goal of this study is to examine: how does the effects of exchange rate fluctuations on price markups differ across wheat exporting countries – Kazakhstan, Russia and Ukraine? If KRU countries are able to exercise pricing to market behavior and get market power in international wheat market for the period 1996-2012? Which exporting country is expected to adjust prices to achieve foreign currency price stability in the destination markets? Pricing-to-market model will be used to check the existence of market power. |
| Keywords: | Pricing behaviour, international wheat market, Kazakhstan, Russia, Ukraine, Pricing-to-market model, Demand and Price Analysis, International Relations/Trade, Research Methods/ Statistical Methods, R, Q, O, |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ugidic:159101&r=tra |
| By: | Brian McCaig; Nina Pavcnik |
| Abstract: | We examine the role of structural change in the economic development of Vietnam from 1990 to 2008. Structural change accounted for a third of the growth in aggregate labor productivity during this period, which averaged 5.1 percent per annum. We discuss the role of reforms in agriculture, enterprises, and international integration in this process. In addition to the drastic move of employment away from agriculture toward services and manufacturing, we also document the movement of workers away from household businesses toward firms in the enterprise sector, and the reallocation of workers from state owned firms toward private domestic and foreign owned firms. Manufacturing experienced particularly rapid growth in labor productivity and a large expansion of employment, as it grew from 8 to 14 percent of the workforce. Changes in trade policy, expansion of employment in foreign owned firms, and the declining role of state owned enterprises robustly contributed toward the changing structure of employment within manufacturing. |
| JEL: | F1 F16 O1 O53 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19616&r=tra |
| By: | O'Higgins, Niall (University of Salerno); Brüggemann, Christian (TU Dortmund) |
| Abstract: | Unequal labour market outcomes between Roma and non-Roma have typically been explained by either the low level of educational attainment on the one hand or labour marked discrimination on the other – or both. A number of studies have found that significant labour market inequalities persist even after the low levels of educational attainment amongst Roma have been accounted for. Here we look at the role of special schooling in driving labour market inequalities between Roma and non-Roma in the Czech Republic. We confirm the findings of other studies that Roma face significant differences in labour market outcomes which cannot be explained in terms of educational attainment. Moreover, we find that the segregation of Roma into special remedial schools for the mentally disabled influences both labour market outcomes and the level of educational attainment; the latter effect being particularly strong. Special school attendance explains a small part of Roma labour market discrimination as typically measured, but its main impact is through lowering Roma educational attainment suggesting an additional discriminatory element in Roma/non-Roma labour market outcomes which is more typically ascribed to ‘justified’ Roma/non-Roma educational differences. Thus, we propose that labour market inequality should not only be understood as result of low attainment and labour market discrimination per se but as a complex outcome of cumulative discrimination. In contrast to previous papers which take a parametric approach assuming common support between Roma and non-Roma, the non-parametric matching approach employed here explicitly takes into consideration the substantial differences in educational attainment observable between Roma and non-Roma. |
| Keywords: | Central Europe, labour market discrimination, Roma |
| JEL: | J15 I24 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7668&r=tra |
| By: | Gojenko, Boris; Leonhaeuser, I.-U.; Stulina, G. |
| Abstract: | The present research is realised in the frame of the ZEU project “LUCA” (Land Use, Ecosystem Services and Human Welfare in Central Asia). LUCA builds a platform for joint analysis of land use effects for a whole region, involving participants from various countries of Central Asia. In the transition from planned to market economies, the Central Asian Republics experienced rising poverty, food insecurity and malnutrition as well as serious degradation of water and land resources. The process to a market oriented economy has not been adequately supported by national institutional development. It resulted in a reduced living standard. Land use strategies in Uzbekistan determine the level of food security. While the area of rangelands is vast, the livestock farming and production of grains, fruits and vegetables play a major role in food security and also are the basic source of rural population income. More than 60% of Uzbeks live in rural area. Uzbekistan produces adequate calories to supply the population but almost 30 % lives below the food poverty line (IFPRI, 2006). The poorest population spends more than 60 % of income for food and takes a diet dominated by cereals. The existing system of the “state order” to produce cotton and wheat does not allow to growing up food crops in adequate amount. The survey is focused on questions on the socio-economic situation, societal determinants of food supply, food consumption patterns, eating habits, and coping strategies managing food crisis on household level. Markhamat region of Andijan province and Denau region of Surkhandarya province are the two most populated regions of Uzbekistan and presented as the study area. The data collection is based on the own structured questionnaire, on the Household Food Security Survey Module (HFSSM), Food Consumption Score (FCS), and Food List Recall. Data analysis was done with SPSS. The main results show the percentage of food secure and food insecure households as well as the food consumption status of these households concerning cash and food crops households are producing on their farm land and/or on their homestead plot. The results show that the main indicator of the level of income, food security situation and food consumption status of household is the production strategy. Thereby the more households produce cotton and wheat they will have less income, and a worse food security and food consumption status. |
| Keywords: | Uzbekistan, rural area, crop production, food security, descriptive analysis, regression analysis, Community/Rural/Urban Development, Food Security and Poverty, Research Methods/ Statistical Methods, |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ugidic:159125&r=tra |
| By: | Gjosheva-Kovachevikj, Marija; Kovachev, Goran; Risteski, Hristijan |
| Abstract: | Agriculture is a fundamental economic activity in Macedonia which constitutes 10% of GDP over the past decade, adding related processing industry increases this share to approximately 15%-16%. During the last period of economic restructuring, agriculture played a critical role in the social and economic stability of the country. As a generator of growth of income and employment (19% of the total employment) agriculture needs a steady stream of funds to increase the competitiveness of the farmers by improving the technological and market infrastructure as well improving quality of life of rural population. Beside the state financial support of agriculture and rural development, the commercial financing - through lending is from utmost importance as well. The absorption of the available funds by rural population is limited by strong criteria. The pressure for acceleration process for developing of the competitive and sustainable agriculture and sustainable rural communities require better access of the funds to farmers. In this regards, the purpose of the research is to explore the existing situation in the lending system in agriculture and further provide analysis and recommendations for improving the commercial form of financing to farmers. Therefore, the desk work and field research through questionnaire and interviews have been conducted in order to collect information about needs and problems of the key actors in the field of lending in the agriculture and rural development. The results have been communicated with the stakeholders at panel discussion and furthermore upgraded and distributed to the relevant institutions and organisations. Findings demonstrate that the lending system in agriculture does not operate in an ideal environment and its facing numerous problems and obstacles |
| Keywords: | lending; agriculture; rural development; financial institutions; farmers |
| JEL: | G21 H81 Q1 |
| Date: | 2013–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51338&r=tra |
| By: | Yi Lu (National University of Singapore); Zhigang Tao (The University of Hong Kong and Hong Kong Institute for Monetary Research); Yan Zhang (Shanghai University of Finance and Economics) |
| Abstract: | Using monthly transaction data covering all Chinese exporters over the 2000-2006 period, we investigate how Chinese exporters respond to U.S. antidumping investigations. We find that antidumping investigations cause a substantial decrease in the total export volume at the HS-6 digit product level, and that this trade-dampening effect is due to a significant decrease in the number of exporters, yet a modest decrease in the export volume per surviving exporter. We also find that the bulk of the decrease in the number of exporters is exerted by less productive exporters, by direct exporters as opposed to trade intermediaries, and by single-product direct exporters as opposed to their multi-product counterparts. Combined with the existing studies on the effects that antidumping investigations have on protected firms, our study helps piece together a complete picture of the effects of antidumping investigations. |
| Keywords: | Antidumping Investigations, Difference-In-Differences Estimation, Extensive and Intensive Margins, Trade Intermediaries, Single- Versus Multi-Product Exporters |
| JEL: | F13 D22 F14 L25 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:192013&r=tra |
| By: | Aleksandra Hałka (Narodowy Bank Polski); Tomasz Łyziak (Narodowy Bank Polski) |
| Abstract: | Inflation perceived by consumers may differ from official statistics particularly due to different baskets of goods and services lay people and statisticians consider and by consumer loss aversion to price increases. Such effects, as suggested by the Prospect Theory, are confirmed in many empirical studies, showing that consumers are substantially influenced by prices of frequent purchases and that price increases are perceived more strongly than price decreases. Following those observations, particularly useful in interpreting a jump of inflation perception in some of the EMU economies after the euro introduction, an alternative price index, i.e. the Index of Perceived Inflation, was proposed by Brachinger (2006) and Brachinger (2008). The role of price changes of frequently bought goods and services in determining consumer opinions on price changes was also significant in Poland, especially after its accession to the EU. To assess whether this effect is of a systematic nature, in this paper we develop different indices of price changes of frequently bought goods and services in Poland, including the Index of Perceived Inflation. Then we evaluate these indices vs. CPI inflation in terms of their impact on consumer inflation perception, as proxied with survey data. The results suggest that Polish consumers observe a relatively wide range of goods and services and that both factors suggested by the Prospect Theory seem to influence their opinions on evolution of prices in the past. Having the measure of perceived inflation – i.e. the Consumer Perceived Price Index (CPPI) – that seems more adequate than current CPI inflation on the one hand and survey-based measures of perceived inflation scaled with respect to the trend of CPI inflation on the other hand, we use it as a scaling factor to derive a probability measure of consumer inflation expectations in Poland. Then we compare forecasting accuracy of this measure with respective results based on the measure of consumer inflation expectations quantified in a standard manner. |
| Keywords: | Inflation, inflation perceptions, inflation expectations, survey, consumers. |
| JEL: | D12 D84 E31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:160&r=tra |
| By: | Jan Babecky (Czech National Bank, Prague, Czech Republic); Tomas Havranek (Czech National Bank, Prague, Czech Republic) |
| Abstract: | The present fiscal difficulties of many countries amplify the call for structural reforms. To provide stylized facts on how reforms worked in the past, we quantitatively review 60 studies estimating the relation between reforms and growth. These studies examine structural reforms carried out in 26 transition countries around the world. Our results show that an average reform caused substantial costs in the short run, but had strong positive effects on long-run growth. Reforms focused on external liberalization proved to be more beneficial than others in both the short and long run. The findings hold even after correction for publication bias and misspecifications present in some primary studies. |
| Keywords: | Structural reforms, growth, transition economies, meta-analysis, Bayesian model averaging |
| JEL: | C83 O11 P21 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2013_14&r=tra |
| By: | Petr Jakubik (European Insurance and Occupational Pensions Authority (EIOPA), Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Tomas Slacik (Oesterreichische Nationalbank, Foreign Research Division) |
| Abstract: | The importance of assessing financial stability in emerging Europe has increased rapidly since the recent financial crisis. Against this background, in the present paper we contribute to the existing literature in a twofold way: First, by using a broad range of indicators from money, bond, equity and foreign exchange markets, we develop a comprehensive financial instability index (FII) that gauges the level of financial market stress in some key Central, Eastern and Southeastern European (CESEE) countries. In a second step, we perform a panel estimation to investigate which macroprudential indicators that cover both internal and external imbalances explain the evolution of our FII over the past more than 15 years. Our analysis suggests that both the levels and changes of some indicators (such as credit growth and the level of private sector indebtedness) play an important role for financial stability. Moreover, we find that the impact of some key indicators on financial (in)stability is nonlinear and varies over time depending on market sentiment. |
| Keywords: | Financial stability, crisis, macroprudential framework, emerging Europe, external and internal imbalances |
| JEL: | G28 G32 G33 G38 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2013_13&r=tra |
| By: | Absalyamov, Davron |
| Abstract: | In the recent decades agricultural production in Uzbekistan has been facing problems in relation to environment and agricultural management systems especially with regard to the efficiency and the productivity of agricultural enterprises. The sharp decrease of total factor productivity after independency in 1990 can be traced back to inefficiency and misallocation of resources. Although statistical data shows steadily increasing partial productivity of land and labor since 1996 land degradation, low level of mechanization, partial water scarcity and the use of low-productive labor appear to prove the opposite. The specific feature of the current study is to estimate impact of environmental factors such as water availability and provision, soil quality on technical efficiency level of farms. Therefore the main question of the study is how efficient are wheat and cotton producing farms in Uzbekistan and what are the main sources of inefficiency? Other specific questions of the study are: • How do ecological factors such water scarcity, soil salinity and other farm-specific, farm-size specific and region-specific factors affect farm efficiency? • What is the pattern of input use and production output for wheat and cotton producing farmers? • How is the production of state-ordered commodities organized? |
| Keywords: | Efficiency of wheat and cotton producing farms in Uzbekistan, Stochastic frontier approach, Community/Rural/Urban Development, International Development, Productivity Analysis, Research Methods/ Statistical Methods, R, Q, O, |
| Date: | 2013–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ugidic:159108&r=tra |
| By: | De Rosa, Donato; Iootty, Mariana; Pirlea, Florina; Aprahamian, Arabela; Stanescu, Alexandru |
| Abstract: | Romania's European Union accession in 2007 has resulted in a substantial reduction of the formal barriers to integration with the European Union Single Market. This study takes stock of the progress by benchmarking product market policies in Romania to those of European Union countries, as measured by the OECD indicators of Product Market Regulation. These indicators allow for a comprehensive mapping of policies affecting competition in product markets. Comparison with European Union countries reveals that, for half of the policy areas covered by the study, Romania's product market policies are more restrictive of competition than most direct comparators in the region, whereas for other indicators Romania is on a par with the European Union average or has achieved best practice. Nonetheless, these results should be interpreted in light of the fact that the Product Market Regulation approach measures officially adopted policies and does not capture implementation. Future reforms should be directed both at improving official regulation and, where policies that favor competition are already in place, toward effective enforcement. |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6698&r=tra |