|
on Transition Economics |
|
Issue of 2014‒05‒17
thirty-one papers chosen by J. David Brown IZA (Institute for the Study of Labor) |
| By: | Olga Kuzmina (New Economic School); Natalya Volchkova (New Economic School); Tatiana Zueva (New Economic School) |
| Abstract: | This paper studies the effect of poor governance quality on foreign direct investment in Russia. Using a survey of businesses across forty administrative districts, we find that higher frequency of using illegal payments and higher pressure from regulatory agencies, enforcement authorities, and criminals, negatively affect foreign direct investment. Our identification strategy builds on the exogenous cross-regional variation in worker strikes during 1895-1914, the period before the October Revolution. We find that moving from the average to the top governance quality across Russian regions more than doubles the FDI stock. |
| Keywords: | foreign direct investment, quality of governance, corruption, Russia |
| JEL: | F21 G15 O17 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cfr:cefirw:w0205&r=tra |
| By: | Tomas Fiala (Tilburg University and Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Tomas Havranek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and Czech National Bank) |
| Abstract: | Foreign-dominated banking sectors, such as those prevalent in Central and Eastern Europe, are susceptible to two major sources of systemic risk: (i) linkages between local banks, and (ii) linkages between a foreign par- ent bank and its local subsidiary. Using a nonparametric method based on extreme value theory, which accounts for fat-tail shocks, we analyze interde- pendencies in downward risk in the banking sectors of the Czech Republic, Hungary, Poland, and Slovakia during 1994–2013. In contrast to the pre- sumptions of the current regulatory policy of these countries, we find that the risk of contagion from a foreign parent bank to its local subsidiary is substantially smaller than the risk between two local banks. |
| Keywords: | systemic risk, extreme value theory, financial stability, Central Eastern Europe, banking, parent-subsidiary relationship |
| JEL: | F23 F36 G01 G21 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_10&r=tra |
| By: | ZHANG Hong-yong |
| Abstract: | This study empirically analyzes the effect of agglomeration economies on firm-level product innovation (new products), using Chinese firm-level data from 1998 to 2007. In terms of new product introduction and new product output, Chinese firms benefit from urbanization economies (as measured by the number of workers in other industries in the same city and by the diversity of industries in the same city). Conversely, there were no positive effects of localization economies (as measured by the number of other workers working for neighboring firms in the same industry and in the same city). These results suggest that, in China, urbanization economies play an important role in fostering product innovation by urban size and diversity. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14022&r=tra |
| By: | Raymond Fisman; Yasushi Hamao; Yongxiang Wang |
| Abstract: | We study the impact of nationalism and interstate frictions on international economic relations by analyzing market reaction to adverse shocks to Sino-Japanese relations in 2005 and 2010. Japanese companies with high China exposure suffer relative declines during each event window; a symmetric effect is observed for Chinese companies with high Japanese exposure. The effect on Japanese companies is more pronounced for those operating in industries dominated by Chinese state-owned enterprises, while firms with high Chinese employment experience lower declines. These results emphasize the role of countries’ economic and political institutions in mediating the impact of interstate frictions on firm-level outcomes. |
| JEL: | F13 F51 G14 G15 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20089&r=tra |
| By: | Mark R. Rosenzweig; Junsen Zhang |
| Abstract: | We use unique data characterizing individual savings for twins and non-twins in urban China to examine why the savings rates of the young are elevated relative to the middle-aged, despite rising individual life-cycle incomes. We show that inter-generational co-residence masks the true life-cycle patterns of individual savings in standard Chinese household data sets, which are aggregated at the household level. Moreover, we show that to understand life-cycle savings behavior it is necessary to take into account inter-generational co-residence, an important phenomenon in China and in many developing countries. To test a model that describes joint life-cycle savings and co-residence decisions by two generations, we use a variety of standard twins methods. The estimates provide support for the model, including that individuals born into larger families provide less financial support to parents and are more likely to co-reside with parents when young, but do not have different savings rates. We also found that inter-generational co-residence is lower the higher the incomes of the young but higher when the parents have higher incomes and that inter-generational co-residence, net of income, is associated with higher savings for the young but not higher savings for the old. Our results highlight the importance of high housing costs and the prevalence of inter-generational shared housing as key reasons for the higher savings rates for the urban young in China, but also indicate that in urban China neither old-age support by the young nor the one-child policy are major factors. |
| JEL: | D12 J12 O12 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20057&r=tra |
| By: | Ma, Yanqiang |
| Abstract: | City logistics is a young research area. It has undergone over three decades of development since its conception in the last century. It is believed to have the potential to support the realisation of building up sustainable cities. After successful development during the last three decades, China has been seeking a more healthy economic growth model relying on urbanisation and domestic consumption. This is because one billion citizens are expected to be living in Chinese cities by 2030. Logistics has hereby been given the mission to assist this transition of the economic growth model by establishing a reliable goods supply on one hand, and improving citizens’ quality of life on the other – all in a way that develops sustainable urbanisation. This thesis thus addresses this issue, aiming to examine whether the concept of city logistics is suitable and applicable for China’s cities to build a sustainable urbanisation. In order to provide a reliable answer to the above-raised question, the thesis is designed in a structural way and consists of several interrelated parts in sequence. After the introduction of the research background and questions, the thesis begins with an exploration of city logistics, both in theory and in practice. The findings of this part include the conceptual framework of city logistics, an extensive list of city logistics solutions and an elaboration of the urban consolidation centre solution. Together these findings present a comprehensive discussion and lay the foundation for the empirical study of city logistics in China. The thesis then shifts focus from city logistics in general to China. The results of a macro-environment analysis indicate that city logistics must operate within complex surroundings abundant in challenges and opportunities, which require joint effort both from the private and public sector in a shared work process. An empirical study is conducted in the selected city of Chengdu. Following a situational analysis, a visionary master plan is recommended for developing a city logistics system consisting of four building blocks that are functionally inter-related. In respect to implementing the city logistics system and any related solutions, it is of utmost importance to study the attitudes of users of city logistics services. Therefore, an empirical study using the technique of partial least squares path modelling is carried out in order to determine the influential factors and their impacts. The results confirm the proposed path model and indicate valuable implications for cities and managers implementing the solution of an urban consolidation centre. The rest of the thesis focuses on the investigation of the solution of an urban consolidation centre from a corporate perspective. It employs the approach of business case analysis and investigates its commercial feasibility. Although the results, namely the net profit figure (0.9%), yielded during the study, is lower than the predicted outcome, the study can help cities and managers acknowledge the reality of implementing an urban consolidation centre from a commercial viewpoint. A series of measures is also recommended to help find ways to increase the profitability of the centre to facilitate a successful implementation. To sum up, the findings from the individual parts work together to provide a consolidated answer to the overriding research question. |
| Keywords: | City-Logistics, City-Logistik-System, China, UCC, BCA |
| Date: | 2014–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:65246&r=tra |
| By: | Jin, Hui; Cao, Yanka |
| Abstract: | Based on a sample of 16 QDII Equity Funds in China established before 2010, this paper evaluates the performance of these funds during 2009 to 2013 by risk-adjusted measures of return and analyzes the influencing factors of performance using panel data models. Empirical study shows that most Chinese QDII funds almost get no excess return compared to risk-free rate, and exchange rate is the main factor affecting the fund performance. Industrial and regional concentration on asset allocation have positive effects to fund performance, which indicates that QDII funds’ activities do not meet the principle of risk diversification and may increase the risk in long term investment. Although the size of fund is limited by the approved QDII quota, there is only low correlation between size and performance，which implies that the current quota policy is suitable for fund companies. |
| Keywords: | QDII Equity Funds; Risk-adjusted Performance Measures; Influencing Factors; Panel Data Analysis |
| JEL: | G15 G23 |
| Date: | 2014–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55855&r=tra |
| By: | Philippe Bacchetta (University of Lausanne and Centre for Economic Policy Research and Hong Kong Institute for Monetary Research); Kenza Benhima (University of Lausanne and Centre for Economic Policy Research); Yannick Kalantzis (Banque de France) |
| Abstract: | In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large demand for saving instruments by the private sector. We analyze the optimal exchange rate policy by modelling the central bank as a Ramsey planner. Our main result is that in a growth acceleration episode it is optimal to have an initial real depreciation of the currency combined with an accumulation of reserves, which is consistent with the Chinese experience. This depreciation is followed by an appreciation in the long run. We also show that the optimal exchange rate path is close to the one that would result in an economy with full capital mobility and no central bank intervention. |
| JEL: | E58 F31 F32 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:092014&r=tra |
| By: | Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and CERGE-IE, a joint workplace of Charles University and the Economics Institute of the Academy of Sciences of the Czech Republic) |
| Abstract: | The rates of value added tax (VAT) have recently changed in the Czech Republic, and I simulate the impact of these reforms. They are an example of changes in indirect taxes that change the prices of goods and services, to which households can respond by adjusting their expenditures. I first estimate the behavioural response of consumers to price changes in the Czech Republic by applying a consumer demand model of the quadratic almost ideal system (QUAIDS) on the basis of the Czech Statistical Office household expenditure and price data for the period from 2001 to 2011. I derive estimates of own- and cross-price and income elasticities for individual households. I then use these elasticities to estimate the impact of the changes in VAT rates that were proposed or implemented between 2011 and 2013, on households’ quantity demanded and government revenues. One of the main findings is that the estimated increases in government revenues that take the consumer responses into account are more than a quarter lower than the estimates that use the static simulation. |
| Keywords: | consumer behaviour; demand system; QUAIDS; tax reforms; value added tax |
| JEL: | D12 H20 H31 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_07&r=tra |
| By: | Pavel Hait (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and CERGE-IE, a joint workplace of Charles University and the Economics Institute of the Academy of Sciences of the Czech Republic) |
| Abstract: | Inflation rates have traditionally been measured by the annualized percentage change in the price level of a market basket of consumer goods and services purchased by households. The market basket represents the spending patterns of average household. However, households differ in their spending patterns and there are differences in the price changes of various goods and services. Therefore, different households experience different inflation rates. This paper finds that these differences have been significant in the Czech Republic during the period 1995-2010. Only around 60 % of households actually experienced an inflation rate that was similar to the national average. Furthermore, the higher the average inflation rate over time, the lower the percentage of households whose inflation rate was similar to that average. The main determiners of inflation were expenditures for housing and energy and, especially for low-income households and pensioners, expenditures on food and non-alcoholic drinks. In most years, pensioners and low-income households faced significantly higher inflation rates than the average rate for the whole population. |
| Keywords: | households, inflation, inflation differentials, relative prices |
| JEL: | D12 H22 I31 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_08&r=tra |
| By: | Larry Qiu (University of Hong Kong); Miaojie YU (Peking University) |
| Abstract: | This paper provides a theoretical and empirical analysis of the effects of one-sided tariff cuts on firms’ export product scope. The theoretical model explicitly incorporates cost of management in addition to the commonly used production cost. The analysis predicts that the home country’s tariff cut, a home firm’s export product scope expands (shrinks) if the firm’s management cost is low (high). These predictions are supported by our empirical analysis based on data on Chinese firms from 2000 to 2006. |
| Keywords: | Multiproduct firm, Management cost, Managerial efficiency, Export product scope, Trade liberalization, China |
| JEL: | F12 F13 F15 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2014-06&r=tra |
| By: | Salant, Stephen W. (Resources for the Future); Yu, Xueying |
| Abstract: | Over the past 65 years, forest tenure in China has oscillated unpredictably between private and common property regimes. This policy-induced uncertainty has distorted the harvesting decisions of individuals granted rights to grow trees and has lowered the value of China’s forest output. We provide an analytical framework for assessing these effects quantitatively. Understanding the consequences of this policy-induced uncertainty is particularly important since China is currently engaged in an ambitious plan to increase its domestic supply of timber. We estimate that net revenue from nonstate forests would approximately double if farmers had entirely secure use rights to grow trees. Contrary to the standard result in the literature that catastrophic risk makes farmers harvest earlier, we find that they may delay harvesting if the government pays sufficient compensation for the loss. |
| Keywords: | forest tenure risk, Faustmann model, optimal rotation period under uncertainty |
| JEL: | Q23 Q28 |
| Date: | 2014–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-13-08-rev&r=tra |
| By: | Pavla Blahova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and University of Economics, Prague); Ladislav Kristoufek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic) |
| Abstract: | This paper connects the biofuels literature with genetic modifications literature by considering the potential of genetic modifications for increasing the efficiency of cellulosic biofuels production. This is done for one particular case through analyzing the effect of genetically modified corn adoption on overall yields of corn for silage. Our econometric model confirms that the use of genetically modified corn with inserted MON810 gene increases the overall corn biomass yield in the production and environmental conditions of the Central Europe, in particular in the Czech Republic. |
| Keywords: | Cellulosic Biofuels; Genetic Modifications |
| JEL: | C23 Q16 Q42 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_02&r=tra |
| By: | Huang, Yi (The Graduate Institute, Geneva); Loungani, Prakash (International Monetary Fund); Wang, Gewei (The Chinese University of Hong Kong) |
| Abstract: | This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage data set matched to disaggregated firm survey data. We investigate both the effect of imposing a minimum wage, and the effect of the policies that tightened enforcement in 2004. We find that the average effect of minimum wage changes is modest and positive, and that there is a detectable effect after enforcement reform. Firms have heterogeneous responses to minimum wage changes which can be accounted for by differences in their wage levels and profit margins: firms with high wages or large profit margin increase employment, while those with low wages or small profit margin downsize. The increase in enforcement of China’s minimum wage in 2004 has since amplified this heterogeneity, which implies that labor regulation may reduce the monopsony rent of firms. Our results provide evidence for the theoretical predictions of the positive minimum wage employment relationship in a monopolistic labor market. |
| Keywords: | human capital; labor; manufacturing; industry; trade; wages |
| JEL: | F10 F14 J24 J31 O14 O14 |
| Date: | 2014–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:173&r=tra |
| By: | Oliver Polyak (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | The present paper is focused on the impact of introducing the common European currency on export performance. There has been a lot written about the possible effects of euro adoption on economies of the first eurozone participants. The contribution of this research is that we explore the impact of euro introduction on Slovakia, in comparison to the Czech Republic which still uses its own national currency. Our findings suggest that the export performance and other export-related indicators evolved largely in parallel in both countries. Positive trade effects brought about by the introduction of the euro are rather moderate – up to 5%. The results to some extent do confirm the existence of the so called ‘Rose effect’ – the effect that two countries sharing the same currency trade more than they would otherwise. |
| Keywords: | competitiveness, euro adoption, export, Czech Republic, Slovakia |
| JEL: | F14 F15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_04&r=tra |
| By: | Davide Cantoni; Yuyu Chen; David Y. Yang; Noam Yuchtman; Y. Jane Zhang |
| Abstract: | We study the causal effect of school curricula on students’ stated beliefs and attitudes. We exploit a major textbook reform in China that was rolled out between 2004 and 2010 with the explicit intention of shaping youths’ ideology. To measure its effect, we present evidence from a novel survey we conducted among 2000 students at Peking University. The sharp, staggered introduction of the new curriculum across provinces allows us to identify the effects of the new educational content in a generalized difference in differences framework. We examine government documents articulating desired consequences of the reform, and identify changes in textbook content and college entrance exams that reflect the government’s aims. These changes were often effective: study under the new curriculum is robustly associated with changed views on political participation and democracy in China, increased trust in government officials, and a more skeptical view of free markets. |
| JEL: | I20 P00 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20112&r=tra |
| By: | Raymond Fisman; Yongxiang Wang |
| Abstract: | We document evidence of corruption in Chinese state asset sales. These sales involved stakes in partially privatized firms, providing a benchmark – the price of publicly traded shares – to measure underpricing. Underpricing is correlated with deal attributes associated with misgovernance and corruption. Sales by “disguised” owners that misrepresent their state ownership to elude regulatory scrutiny are discounted 5-7 percentage points more than sales by other owners; related party transactions are similarly discounted. Analysis of subsequent operating performance provides suggestive evidence that aggregate ownership transfers improve profitability, though not in cases where the transfers themselves were corrupted. |
| JEL: | D73 G30 L33 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20090&r=tra |
| By: | Xiangyi Meng; Jian-Wei Zhang; Hong Guo |
| Abstract: | We investigate the relevance between quantum open systems and stock markets. A Quantum Brownian motion model is proposed for studying the interaction between the Brownian system and the reservoir, i.e., the stock index and the entire stock market. Based on the model, we investigate the Shanghai Stock Exchange of China from perspective of quantum statistics, and thereby examine the behaviors of the stock index violating the efficient market hypothesis, such as fat-tail phenomena and non-Markovian features. Our interdisciplinary works thus help to discovery the underlying quantum characteristics of stock markets and develop new research fields of econophysics. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1405.3512&r=tra |
| By: | Zaman, Gheorghe; Georgescu, George |
| Abstract: | The interrelation research-development-innovation has proved crucial for raising the economic competitiveness. The comparative analysis of Romania’competitiveness in the global and European context highlights significant gaps as compared with advanced countries, mainly in R&D intensity, quality of scientific research, innovative entrepreneurship, intellectual assets. Achieving the target of 2% of GDP for R&D spending in 2020 became a challenge for Romania, radical improvements in RDI strategy consistence, growing business sector investments, enforcing innovative capacity, increasing the EU funds absoption rate being needed. The paper is focusing on discrepancies size for the above mentioned indicators as well as the main ways and economic mechanisms of solving the problems and dilemmas which Romania is facing with on different time horizons. |
| Keywords: | global crisis; research & development; innovation; competitivity |
| JEL: | I20 O30 O38 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52944&r=tra |
| By: | Edwin L.-C. Lai (Hong Kong University of Science and Technology and Hong Kong Institute for Monetary Research); Xiangrong Yu (Hong Kong Institute for Monetary Research) |
| Abstract: | To play the role of a unit of account, an international currency must be a currency widely used to invoice international trade. This paper investigates the determinants of the use of currency in trade invoicing and evaluates the potential of the renminbi for the denomination of cross-border transactions in the Asia-Pacific region. In particular, we develop a simple model and establish the evidence showing that there is a convex relationship between the invoicing share of a currency and the economic size of its issuing country because of a coalescing effect and thick market externalities. We use the ratio of the foreign exchange turnover share of a currency to the global GDP share of its issuing country as a proxy for the size of thick market externalities, which we argue reflects capital account openness, financial development, and exchange rate stability of a country. This ratio is very small for the renminbi compared with that for established international currencies. Our quantitative analysis suggests that the renminbi can be a major invoicing currency in the region only if China sufficiently opens up its capital account and liberalizes its financial sector. We also draw a parallel between the renminbi and the euro and forecast the invoicing share of the renminbi in the Asia-Pacific region if the renminbi market attained the same degree of thickness as the euro. |
| JEL: | F33 F36 F47 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:082014&r=tra |
| By: | Oxana Babecka Kucharcukova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and Czech National Bank) |
| Abstract: | This paper aims to quantify the impact of nominal exchange rate volatility on nominal trade flows with a particular focus on the Czech Republic. The paper shows that the magnitude of the impact differs when a dynamic model is used instead of static model. |
| Keywords: | Gravity model of trade, Exchange rate volatility, Poisson estimator |
| JEL: | F14 F31 F4 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_03&r=tra |
| By: | C. Veeramani (Indira Gandhi Institute of Development Research); Prachi Gupta (Indira Gandhi Institute of Development Research) |
| Abstract: | Should India's export promotion policies be targeted at accelerating export growth at the extensive (new trading relationships) or at the intensive margin (increase in trade of existing relationships)? To help answer this question, we undertake a comparative study of exports from India and China by analysing the role of extensive and intensive margins in the export market penetration of the two countries during 1995-2011. We further decompose intensive margin into quantity and price margins. As far as extensive margin is concerned, our results show that the gap between the two countries is getting narrower as India is clearly catching up with China. By contrast, India lags significantly behind China in terms of intensive margin due to an abysmally low and stagnant quantity margin. Intensification, rather than diversification, has been the crucial driving force of China's export success. India's exports of capital-intensive products performed better compared to labour intensive products. The lacklustre performance in labour-intensive exports is entirely due to a lack of depth inIndia's market presence even as it expanded the range of its products and markets. Our analysis suggests that India can reap rich dividends by adopting policies aimed at accelerating export growth at the intensive margin. Contrary to the general perception, there exist a great potential for India to expand and intensify its export relationships with the traditional developed country partners. |
| Keywords: | Exports, Extensive Margin, Intensive Margin, India, China |
| JEL: | F10 F14 F15 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-011&r=tra |
| By: | Chiara Binelli (University of Southampton, UK; RCEA, Italy); Matthew Loveless (University of Kent, UK) |
| Abstract: | Several studies have shown that perceptions of inequality vary with individuals’ socioeconomic location: the higher the level of income, the less inequality is perceived. Here we argue that another type of location, the rural or urban area where an individual lives, is an important determinant of inequality perceptions and affects the impact of income on perceptions. Using survey data from 12 Central and Eastern European countries in 2007, we find that income has a negative effect on inequality perceptions only for those living in urban areas. Therefore, once controlling for urbanity, income ceases to have an independent effect on inequality perceptions. These findings suggest that previous work may have overlooked important sub-national differences, which are crucial to understand individuals’ views of inequality. |
| Keywords: | Inequality Perceptions, Central and Eastern Europe |
| JEL: | D31 O15 P25 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:10_14&r=tra |
| By: | Govori, Arbiana |
| Abstract: | Innovation has become a central theme and challenge in the literature of entrepreneurship, SMEs management, and strategic knowledge management and in the literature of organizational learning. Innovation needs a business environment that is conducive to long-term investments in new business activities. This way, the development of innovation policy in SMEs forms an important environment that needs to be supported by government new economic policies and strategies and especially by new approach to entrepreneurship and innovation. In this paper we address the innovation strategies of SMEs engaged in the production of products and services. We base our conclusions on an analysis of primary data collected in a survey of 80 small and medium sized firms in the region of Prishtina, held between March 2014 and May 2014. The results show that innovation in business tends to be driven by external competitive pressures and customer demands. Many SMEs face financial barriers to engaging and undertaking innovation, while a few of them have been seriously engaged in innovation despite the obstacles. |
| Keywords: | Entrepreneurship, Innovation, SMEs, Competition, Strategy, Funding |
| JEL: | M0 M1 M2 O3 O30 O31 O32 O33 O34 O38 |
| Date: | 2014–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55898&r=tra |
| By: | Doan Thi Thanh Ha (International Graduate School of Social Sciences, Yokohama National University and Faculty of International Economics and Business, Foreign Trade University); Kozo KIYOTA (Keio Economic Observatory, Keio University) |
| Abstract: | This paper examines the relationship between productivity differentials and firm turnover in Vietnamese manufacturing. We utilize firm-level data between 2000 and 2009, including the year 2007, when Vietnam joined the World Trade Organization (WTO). Our major findings are twofold. First, the productivity of entrants, survivors, and exiters increased simultaneously from 2006 to 2007. This result suggests that the cutoff productivity level increased after trade liberalization. Second, the resource reallocation between firms was facilitated after the liberalization. These findings are consistent with the implications of the recent models of international trade and firm heterogeneity. |
| Keywords: | Total factor productivity, Aggregate productivity, Trade Liberalization, Firm turnover, Vietnam |
| JEL: | O12 D22 O47 F14 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2014-07&r=tra |
| By: | Howard, Emma; Newman, Carol; Rand, John; Tarp, Finn |
| Abstract: | In this paper we explore the extent to which firms experience productivity spillovers from clustering using a rich data source from Vietnam for 2002 to 2007, a period of significant transition. We address issues of simultaneity, self-selection and endogen |
| Keywords: | clustering, productivity, endogenous location choice, spillovers, Vietnam |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-071&r=tra |
| By: | Anh, Nguyen Thi Tue; Duc, Luu Minh; Chieu, Trinh Duc |
| Abstract: | The transfer from an import-substitution to an export-orientation strategy has been in effect in Vietnam since the reform process, Doi Moi, necessitating the reformulation of macroeconomic, trading and sectoral policies. As a result, the industry sector h |
| Keywords: | industry, evolution, policy, productivity, Vietnam |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-076&r=tra |
| By: | Hana Dzmuranova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Petr Teply (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and Department of Banking and Insurance Faculty of Finance and Accounting, University of Economics University of Economics, Prague) |
| Abstract: | This paper deals with the risk management of savings accounts. Savings accounts are non-maturing accounts bearing a relatively attractive rate of return and two embedded options: a customer’s option to withdraw money at any time and a bank’s option to set the deposit as it wishes. The risk management of saving accounts remains a big challenge for banks and simultaneously raises serious concerns by some regulators. In this paper, we focus on the interest rate risk management of savings accounts. By constructing the replicating portfolio and simulating six scenarios for the market rate and client rates, we show that under the severest scenario, some banks in the Czech Republic might face a capital shortage up to 22% in next two years if market rates start to increase dramatically. We conclude that savings accounts are risky instruments that cannot be hedged by standard risk mitigation techniques. Since savings accounts in the Czech Republic are not subject to any special regulation yet, we propose imposing stricter regulation and supervision (the Belgium framework might be an inspiring model to consider). |
| Keywords: | demand deposits, interest rate risk, replicating portfolio, risk management, savings accounts, simulations |
| JEL: | C15 G21 G11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2014_09&r=tra |
| By: | Georgescu, George |
| Abstract: | In the case of Romania, a sharp deterioration of the fiscal framework strength has been observed during post-crisis period, the public debt-to-GDP ratio currently reaching around 40%, thus doubling as compared to 2008. The structural analysis of government debt portfolio highlighted the main drivers of excessive public indebtedness and the increase in refinancing (rollover) risk on short term, which is supposed to overlap with the exchange rate and interest rate risks on medium and long term. Several indicators of Romania’s debt sustainability are already on the warning levels edge which requires appropriate policies focusing on economic growth recovery, fiscal consolidation ongoing, increasing capacity of generating budgetary revenues, public debt management improvement. |
| Keywords: | public debt; debt sustainability; sovereign risk; sustainable development; financial stability |
| JEL: | E62 F34 G01 H63 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52957&r=tra |
| By: | Julia DOITCHINOVA (University of National and World Economy, Sofia, Bulgaria); Darina ZAIMOVA (Trakia University, Stara Zagora, Bulgaria) |
| Abstract: | This paper is purposeful towards assessing the significance, state and development of the third sector in Bulgaria. Its first part deals with the theoretical background and specific characteristics of the sector that distinguish and define it as a successful way whereby social problems are addressed and appropriate solutions are proposed. Economic crisis in Bulgaria and its social impact are traced in the second part of the paper, while in the third part is focused on how the third sector organizations in Bulgaria contribute to overcoming crucial societal problems emerging in the recent years. Cooperative development and its importance are presented as traditional and effective strategy when dealing with the abovementioned social instability. Drawing on the information and the analysis provided, conclusions and recommendations are prepared in the last part; as well as possible directions in terms of expanding its role for the social economy will be proposed. The set of data sources that are employed includes statistical and other reported data for the NGOs and systemized analysis and results regarding their development in Bulgaria. |
| Keywords: | economic and social crisis, third sector, NGO, cooperatives, Bulgaria |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:crc:wpaper:1301&r=tra |
| By: | Newman, Carol; Rand, John; Tarp, Finn; Thi Tue Anh, Nguyen |
| Abstract: | In this paper, we investigate the relationship between exporting and productivity in the case of Vietnam using an extensive firm level panel dataset for the period 2005-11. We separate out productivity effects of exporting due to self-selection allowing u |
| Keywords: | learning by exporting, self-selection, productivity, Vietnam, firm ownership, innovation |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2014-070&r=tra |