nep-tra New Economics Papers
on Transition Economics
Issue of 2019‒03‒25
33 papers chosen by
J. David Brown
United States Census Bureau

  1. Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution By Jian-Xin Wu; Ling-Yun He; ZhongXiang Zhang
  2. Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in the People's Republic of China By Lyons, Angela C.; Grable, John E.; Zeng, Ting
  3. Integration of second generation migrants aged 18–35 years in Russia By Varshaver, Evgeniy (Варшавер, Евгений); Rocheva, Anna (Рочева, Анна); Ivanova, Natalia (Иванова, Наталья)
  4. Analysis of instruments for the protection of the domestic market by countries that form a free trade zone with the People’s Republic of China By Volovik, Nadezhda (Воловик, Надежда)
  5. Labor Market Dynamics in Urban China and the Role of the State Sector By Feng, Shuaizhang; Guo, Naijia
  6. Firms and wage inequality in Central and Eastern Europe By Iga Magda; Jan Gromadzki; Simone Moriconi
  7. Firms and wage inequality in Central and Eastern Europe By Iga Magda; Jan Gromadzki; Simone Moriconi;
  8. Small and Mid-Sized Business as a Factor of Economic Growth in Russia By Knobel Alexander; Barinova Vera; Zemtsov Tsepan; Loshchenkova A.
  9. The Basel Capital Requirement, Lending Interest Rate, and Aggregate Economic Growth: An Empirical Study of Viet Nam By Minh Phi, Nguyet Thi; Hong Hoang, Hanh Thi; Taghizadeh-Hesary, Farhad; Yoshino, Naoyuki
  10. Long-term changes in the ownership structure of the largest Russian companies and their impact on performance indicators By Abramov, Alexander (Абрамов, Александр); Radygin, Alexander (Радыгин, Александр); Chernova, Maria (Чернова, Мария)
  11. Rent Sharing in China: Magnitude, Heterogeneity and Drivers By Duan, Wenjing; Martins, Pedro S.
  12. What works for disadvantaged unemployed: Private or public ALMP services? Evidence from (unplanned) RCT in Poland By Tomasz Gajderowicz; Maciej Jakubowski
  13. Using foreign policy instruments to support Russia's industrial development By Aliev, Timur (Алиев, Тимур); Bondareva, Veronika (Бондарева, Вероника); Ismagilova, Olga (Исмагилова, Ольга); Kudakaeva, Karina (Кудакаева, Карина); Flegontova, Tatiana (Флегонтова, Татьяна)
  14. Development of a methodology and a comparative analysis of strategies for the socio-economic development of the constituent entities of the Russian Federation By Komarov, Vladimir (Комаров, Владимир); Voloshinskaya, Anna (Волошинская, Анна); Kotsyubinskiy, Vladimir (Коцюбинский, Владимир)
  15. Multi-product Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing By Thanh Doan, Ha Thi
  16. OECD Mutual Recognition System as a Tool to Reduce Export Barriers By Levashenko, Antonina (Левашенко, Антонина); Koval, Alexandra (Коваль, Александра)
  17. Interregional and inter-ethnic differences in fertility in the Russian Federation in 2007-2016 By Kazenin, Konstantin (Казенин, Константин)
  18. The Impact of Migration and Remittances on Labor Supply in Tajikistan By Enerelt Murakami; Eiji Yamada; Erica Sioson
  19. Progressive tax reforms in flat tax countries By Barrios, Salvador; Ivaškaitė-Tamošiūnė, Viginta; Maftei, Anamaria; Narazani, Edlira; Varga, Janos
  20. Evaluation of prospects for improving the investment climate in Russia based on the implementation of OECD standards for responsible business management By Levashenko, Antonina (Левашенко, Антонина); Ermokhin, Ivan (Ермохин, Иван)
  21. Vectors and dynamics of short-term indicators of social development By Maleva, Tatiana (Малева, Татьяна); Grishina, Elena E. (Гришина, Елена Е.); Polyakova, Alexandra (Полякова, Александра); Florinskaya, Yulia (Флоринская, Юлия); Loginov, Dmitriy (Логинов, Дмитрий); Khasanova, Ramiliya (Хасанова, Рамиля)
  22. The Vietnamese financial economy: reforms and development, 1986-2016 By Quan-Hoang Vuong
  23. The Wage-Productivity Nexus in the World Factory Economy By Giovanni Dosi; Maria Enrica Virgillito; Xiaodan Yu
  24. Financial aspects of the inclusive growth model of the modern economy By Danilov, Yuriy (Данилов, Юрий Алексеевич); Pivovarov, Danil (Пивоваров, Данил)
  25. The economic effects of the introduction of a Russian food embargo on the economies of the EAEU countries By Firanchuk, Alexander (Фиранчук, Александр)
  26. Russia's international tax policy: finding a balance between protective and incentive measures By Milogolov, Nikolay (Милоголов, Николай); Patel, Svetlana (Патель, Светлана); Berberov, Azamat (Берберов, Азамат)
  27. Shadow activity in the economy: a modified approach to the construction of sectoral assessments By Abroskin, Alexander (Аброскин, Александр); Abroskina, Natalia (Аброскина, Наталья)
  28. Wage and Markdowns and FDI Liberalization By Lu, Yi; Sugita, Yoichi; Zhu, Lianming
  29. Export destinations and skill premium: Evidence from chinese manufacturing industries By Feicheng Wang; Chris Milner; Juliane Scheffel
  30. Socio-environmental practices of the informal economy of rural households in Russia and the post-socialist countries By Nikulin, Alexander (Никулин, Александр); Vinogradskiy, Valeriy (Виноградский, Валерий); Vinogradskaya, Olga (Виноградская, Ольга); Gusakov, Timur (Гусаков, Тимур); Trotsuk, Irina (Троцук, Ирина)
  31. Models of transformation of sectoral production functions of the Russian economy and their application at the new stage of industrial policy By Ponomarev, Yuriy (Пономарев, Юрий); Magomedov, Rustam (Магомедов, Рустам)
  32. The Collapse and Recovery of the Capital Share in East Germany After 1989 By Simona E. Cociuba
  33. Trade and dietary diversity in Eastern Europe and Central Asia By Krivonos, Ekaterina; Kuhn, Lena

  1. By: Jian-Xin Wu (College of Economics, Jinan University); Ling-Yun He (College of Economics, Jinan University and Nanjing University of Information Science and Technology); ZhongXiang Zhang (Tianjin University and China Academy of Energy, Environmental and Industrial Economics)
    Abstract: This paper examines the long-run relationship between income and urban air pollution using a joint distribution dynamics approach. This approach enables to estimate the transition process and long-run distribution and to examine the mechanisms behind the evolution process. The approach is applied to a unique panel data of CO2, SO2 and PM2.5 (particulate matter smaller than 2.5µm) for 286 Chinese cities over the period 2002-2014. Strong persistence in the transition dynamics suggests that this convergence process may require a long time. The distribution dynamics analyses indicate that multiple equilibria are the major characteristics in the long-run relationship between income and urban air pollution in China, which implies that inter-regional technology spillover may be an important way to accelerate convergence. Our results further support the existence of poverty-environmental trap in PM2.5 concentrations. Thus, new environmental models are expected to be developed to explain this new stylized fact. The findings provide strong support for taking more aggressive measures that consider income and urban environment simultaneously to reduce poverty and air pollutions together in the Chinese cities.
    Keywords: Income, Urban Air Pollution, Poverty-environment Trap, Distribution Dynamics Approach, China
    JEL: O13 O44 Q43 Q53 Q56 Q58
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:fem:femwpa:2019.05&r=all
  2. By: Lyons, Angela C. (Asian Development Bank Institute); Grable, John E. (Asian Development Bank Institute); Zeng, Ting (Asian Development Bank Institute)
    Abstract: Financial literacy is a key tool being used to bring economically vulnerable populations into the financial mainstream. Data from the 2013 China Household Finance Survey (CHFS) were used to investigate the impacts of various dimensions of financial literacy on the use of bank and non-bank loans among rural, illiterate, and migrant populations in the People’s Republic of China. The findings show that the most vulnerable groups may be less likely to benefit from financial literacy, especially when it comes to usage of formal bank loans. Other factors such as those related to social networks and infrastructure may matter more than financial literacy. Results were found to vary across measures of financial literacy and financial inclusion. The findings suggest that barriers to access likely need to be overcome so that financial literacy can be more effective. The current study provides important insights for policy makers and international organizations designing national strategies to improve financial inclusion via financial literacy, especially for populations that have been traditionally excluded. Researchers are encouraged to reexamine previous definitions and measures of financial literacy and inclusion to develop a better understanding of the relationship between the two dimensions.
    Keywords: financial literacy; financial inclusion; loan usage; financially vulnerable populations; People’s Republic of China
    JEL: D12 D14 G21 G23 O17
    Date: 2019–02–20
    URL: http://d.repec.org/n?u=RePEc:ris:adbiwp:0923&r=all
  3. By: Varshaver, Evgeniy (Варшавер, Евгений) (The Russian Presidential Academy of National Economy and Public Administration); Rocheva, Anna (Рочева, Анна) (The Russian Presidential Academy of National Economy and Public Administration); Ivanova, Natalia (Иванова, Наталья) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper presents results of a two-year research project on integration trajectories of second generation migrants from Transcaucasia and Central Asia aged 18-35 years old in Russia. The research is focused on the people who graduated from school in Russia and who has at least one parent who was born in Armenia, Azerbaijan, Uzbekistan, Tajikistan and Kyrgyzstan and can be identified with one of the “non-Russian” ethnic categories. The empirical basis of the paper is a survey of migrants and local youth with non-migrant background with the help of targeting in social networking sites (N=12524) and a series of interviews in four regions of Russia (N=260). The paper characterizes structural, social, cultural and identificational integration of second generation migrants in Russia and compares them with the corresponding data in other countries. On the basis of this analysis, the authors provide recommendations.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031928&r=all
  4. By: Volovik, Nadezhda (Воловик, Надежда) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: With the development of Eurasian economic integration, the number of countries expressing a desire to join the free trade zone with the Eurasian Economic Union (EAEU) is increasing. In addition to Vietnam, with which the process of forming an FTA has already begun, about 40 countries are ready to sign similar Agreements with the EAEU, including India and China. By decision of a number of Western countries and, above all, the US, there was a noticeable reduction in access to their markets for Chinese export products, protectionist measures were introduced, customs duties were increased, etc., which forced China to search for new approaches to its foreign economic activity. Among them - the search for new markets, resources and supply chains, which ultimately could lead to a noticeable reduction in the cost of Chinese products and increase its competitiveness. This is reflected in the concepts of the “Economic Belt of the Silk Road” and “Sea Silk Road of the 21st Century”, which received the general name “One Belt and One Road”, which today represents one of the main directions of the foreign economic and foreign policy of China.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031933&r=all
  5. By: Feng, Shuaizhang (Shanghai University of Finance and Economics); Guo, Naijia (Chinese University of Hong Kong)
    Abstract: This paper studies the effect of state-owned enterprises on the dynamics of the Chinese urban labor market. Using longitudinal monthly panel data, we document very low dynamics in the labor market, especially in the state sector. We develop and calibrate an equilibrium search and matching model with three differences between the state and the non-state sector: labor productivity, labor adjustment cost, and workers' bargaining power. Counterfactual analysis shows that the lack of dynamics is mainly driven by the strong bargaining power of state-sector workers. Eliminating the differences between the two sectors substantially reduces the unemployment rate and long-term unemployment rate.
    Keywords: state sector, labor market dynamics, search and matching, China, long-term unemployment
    JEL: J64 J45 P23
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12170&r=all
  6. By: Iga Magda; Jan Gromadzki; Simone Moriconi
    Abstract: Recent studies show that firms are playing an increasingly important role in shaping wage inequality in advanced economies. We contribute to this literature by analysing wage inequality patterns and their firm dimension in Central and Eastern European countries. We use large, linked employer-employee datasets with data from the 2002-2014 period. We find that unlike in many other advanced economies, wage inequality levels have decreased in CEE countries, and particularly in those countries that previously had the highest wage inequality levels. The relative size of the between-firm component varied substantially across countries, and was largest in countries with the highest wage inequality levels. We further estimate the recentered influence function (RIF) regression and the Blinder-Oaxaca decomposition in order to investigate the micro-level determinants of wage inequality. Our findings indicate that the changes in wage inequality levels were mainly attributable to returns to workplace characteristics.
    Keywords: wages, wage inequality, RIF regression, linked employer-employee data
    JEL: D22 J31 J40
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:ibt:wpaper:wp032019&r=all
  7. By: Iga Magda (Warsaw School of Economics; Institute for Structural Research (IBS)); Jan Gromadzki (Warsaw School of Economics; Institute for Structural Research (IBS)); Simone Moriconi (IÉSEG School of Management and LEM-CNRS (UMR 9221));
    Abstract: Recent studies show that firms are playing an increasingly important role in shaping wage inequality in advanced economies. We contribute to this literature by analysing wage inequality patterns and their firm dimension in Central and Eastern European countries. We use large, linked employer-employee datasets with data from the 2002-2014 period. We find that unlike in many other advanced economies, wage inequality levels have decreased in CEE countries, and particularly in those countries that previously had the highest wage inequality levels. The relative size of the between-firm component varied substantially across countries, and was largest in countries with the highest wage inequality levels. We further estimate the recentered influence function (RIF) regression and the Blinder-Oaxaca decomposition in order to investigate the micro-level determinants of wage inequality. Our findings indicate that the changes in wage inequality levels were mainly attributable to returns to workplace characteristics.
    Keywords: : : wages, wage inequality, RIF regression, linked employer-employee data
    JEL: D22 J31 J40
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:ies:wpaper:e201720&r=all
  8. By: Knobel Alexander (Gaidar Institute for Economic Policy); Barinova Vera (Gaidar Institute for Economic Policy); Zemtsov Tsepan (Gaidar Institute for Economic Policy); Loshchenkova A. (RANEPA)
    Abstract: The present edition includes two papers by the leading experts of the Gaidar Institute for Economic Policy. The papers in question are based on the outputs of research carried out by the Gaidar Institute in 2018. Both the papers deal with operation of the sector of small and mid-sized business (SMB). In the first paper – “The Statistics of the Sector of Small and Mid-Sized Business in Russia and the World” – the authors note that there are serious differences in the methods of calculating statistical indices related to the SMB sector and definition criteria. Without understanding those differences, there is no point in inter-country statistical comparison. Utilization of international experience in facilitating and promoting the SMB sector suggests that there is clear awareness of the differences in this sector’s definition criteria and, consequently, statistical data published in international organizations’ reports. In the other paper – “Comparative Analysis of the Government’s Support to Exports by Small and Mid-Sized Businesses in the Regional Aspect” – the authors elaborate on the existing patterns of support to exports in Russia and point to serious disadvantages which largely prevent small and mid-sized businesses from engaging in export activities. The methods of analyzing the assessment of the impact of export support measures at the regional level on the volumes both of the overall regional exports and exports by small and mid-sized businesses are based on econometric models.
    Keywords: Russian economy, small and medium-sized enterprises, economic growth, export
    JEL: L25 L52 M13 R38 F13 F23
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2019-330&r=all
  9. By: Minh Phi, Nguyet Thi (Asian Development Bank Institute); Hong Hoang, Hanh Thi (Asian Development Bank Institute); Taghizadeh-Hesary, Farhad (Asian Development Bank Institute); Yoshino, Naoyuki (Asian Development Bank Institute)
    Abstract: In recent years, the Vietnamese economy has shown signs of financial distress, and especially small banks have experienced serious liquidity and solvency problems. Based on the new policy of the State Bank of Vietnam, in order to ensure safe and effective banking operations, the Basel II accord will be widely applied to the whole banking system by 2018. This paper investigates the effects of the Basel II capital requirement implementation in Viet Nam on the bank lending rate and national output. The paper provides a theoretical framework as well as empirical model by developing a Vector Error Correction Model (VECM) over the period 2018 to 2016 by employing three groups of indicators (macroeconomics, banking, and monetary). The main finding of the paper is that at the bank level, a tightening of regulatory capital requirements does not induce a higher lending rate in the long run. Also, changes in micro-prudential capital requirements on banks have statistically significant spillovers on the GDP growth rate in the short term; yet, their effects significantly lessen over a longer period.
    Keywords: Basel II; regulatory capital requirements; bank capital; lending rate; aggregate growth
    JEL: G21 G28
    Date: 2019–01–18
    URL: http://d.repec.org/n?u=RePEc:ris:adbiwp:0916&r=all
  10. By: Abramov, Alexander (Абрамов, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Radygin, Alexander (Радыгин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Chernova, Maria (Чернова, Мария) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Based on a sample of 213 non-financial public Russian companies listed on the Moscow Exchange for the period 2005-2017. The paper explores the dividend policy of the corporate sector in Russia. Signal and agent dividend hypotheses for Russian companies were tested.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031938&r=all
  11. By: Duan, Wenjing (Hunan University); Martins, Pedro S. (Queen Mary, University of London)
    Abstract: Do firms in China share rents with their workers? We address this question by examining firm-level panel data covering virtually all manufacturing firms over the period 2000-2007, representing an average of 200,000 firms and 54 million workers per year. We find robust evidence of rent sharing (RS): workers that would move from low- to high-profit firms would see their wages increase by about 45%. The results are based on multiple instrumental variables, including firm-specific international trade shocks. We also present a number of complementary findings that allow us to understand better the nature of RS in the country: RS is weaker in firms with more women and less educated workers; RS involves an element of risk sharing, as wages also decrease when profits fall; RS is lower in regions with more latent competition from rural workers; higher minimum wages tend to reduce RS; and, while employer labour market power reduces wages, it increases RS. Overall, despite its importance, RS in China is smaller and more symmetric than in developed economies, which reflects the weaker bargaining power of its workers and the different scope of its labour market institutions.
    Keywords: wages, bargaining, monopsony
    JEL: J31 J41 J50
    Date: 2019–02
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp12169&r=all
  12. By: Tomasz Gajderowicz (Faculty of Economic Sciences, University of Warsaw); Maciej Jakubowski (Faculty of Economic Sciences, University of Warsaw)
    Abstract: The aim of this paper is to assess effectiveness of public vs. private active labour market services for disadvantaged unemployed. Literature on efficiency of contracting-out ALMP services by public institutions is not consistent. Formalism and limited scope of possible actions in public institutions stands in the way to activation of the less promising unemployed. In contrary, private, contracted-out companies work as a black-box and are paid success fee. We used (done by accident) Randomised Control Trial evaluation of the contracting-out ALMP services programme in Poland. We used public registers data (Syriusz) from Małopolskie Voivodeship (province) of Poland. We compared labour market success indicators between randomly assigned groups of unemployed in receipt of normal LO services and those who were assigned to contracted private agencies. We found strong positive effect of support provided by contracted private agencies. This effect was found to be strongest among the most dismissed groups of the unemployed, while for more promising ones services are more equally effective. Results provide arguments in the discussion on differentiation of ALMP services in order to gain with greater efficiency.
    Keywords: Unemployed, RCT, Experiment, ALMP, Labour Offices
    JEL: J23 J24 J21
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:war:wpaper:2019-04&r=all
  13. By: Aliev, Timur (Алиев, Тимур) (The Russian Presidential Academy of National Economy and Public Administration); Bondareva, Veronika (Бондарева, Вероника) (The Russian Presidential Academy of National Economy and Public Administration); Ismagilova, Olga (Исмагилова, Ольга) (The Russian Presidential Academy of National Economy and Public Administration); Kudakaeva, Karina (Кудакаева, Карина) (The Russian Presidential Academy of National Economy and Public Administration); Flegontova, Tatiana (Флегонтова, Татьяна) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: With a view to carry out the tasks for the national industrial economic development and diversification and growth of the Russian non-mineral exports, this paper presents proposals on applying economic policy mechanisms, as well as developing specific foreign economic policy measures that promote Russian industry. It also analyzes the impact of foreign economic policy on industrial development; best international practices of using foreign economic policy tools for industrial development are given, including ‘best practice’ national examples and regional practices. Based on calculations, a list of most promising products is identified towards which Russian export can be diversified to make Russian export structure more complex.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031917&r=all
  14. By: Komarov, Vladimir (Комаров, Владимир) (The Russian Presidential Academy of National Economy and Public Administration); Voloshinskaya, Anna (Волошинская, Анна) (The Russian Presidential Academy of National Economy and Public Administration); Kotsyubinskiy, Vladimir (Коцюбинский, Владимир) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Today, only 79 subjects out of 85 subjects of the Russian Federation have the existing strategies of socio-economic development. Another five regions have a draft strategy, and only the city of Moscow still does not even have a draft strategy. At the same time, the analysis showed a number of significant shortcomings of the considered strategic documents. In this paper, we developed and tested the methodology for comparing the quality of socio-economic strategies of Russian regions.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031920&r=all
  15. By: Thanh Doan, Ha Thi (Asian Development Bank Institute)
    Abstract: Utilizing firm-level data during 2010–2015, we examine the frequency and characteristics of multi-product firms in Vietnamese manufacturing. Our major findings are as follows. First, multi-product firms are larger, more capital-intensive, more productive, and are more likely to export. Second, multi-product firms are active in the market. Approximately 60% of firms adjust their product scope within a 6-year period. Third, the contribution of firms’ product extensive margin to aggregate output growth is limited due to the prevalence of product dropping, which offsets the positive impact of product adding. Much of output growth during the period is thus generated by the intensive margin. Turning to the link between tariff reduction and product shedding, we do not detect any significant impact. However, we find that exporters play an important role in product adding, which suggests that they may contribute to aggregate growth through the channeling of product scope expansion. Contrary to our expectations, our analysis offers limited support for the heterogeneity of product turnover across ownership types. While we find that state-owned enterprises are more likely to spread economic activities across products and industries, there is little difference in terms of product churning among foreign direct investment, state-owned enterprises, and the domestic private sector.
    Keywords: multi-product firms; trade liberalization
    JEL: F15 L23
    Date: 2019–01–23
    URL: http://d.repec.org/n?u=RePEc:ris:adbiwp:0918&r=all
  16. By: Levashenko, Antonina (Левашенко, Антонина) (The Russian Presidential Academy of National Economy and Public Administration); Koval, Alexandra (Коваль, Александра) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper analyzed the benefits and risks of Russia's participation in the mutual recognition system of OECD non-clinical laboratory research, which is based on internationally agreed principles of good laboratory practices and uniform test methods and avoids re-testing of chemicals. As a result of the study, the authors formulated proposals for the optimal scenario of Russia's accession to the system of mutual recognition of OECD non-clinical laboratory research data, including taking into account Russia's membership in the EAEU.
    Keywords: OECD data mutual recognition system, chemicals, good laboratory practices, barriers to trade
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031934&r=all
  17. By: Kazenin, Konstantin (Казенин, Константин) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper discusses the interregional diversity in fertility in the Russian Federation in the period since the beginning of payments of maternity capital. The question of the significance of socio-cultural contrasts between regions for differences in fertility is examined. Differences between regions are considered both in the general level of fertility and in the birth rate of children of individual orders.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031921&r=all
  18. By: Enerelt Murakami; Eiji Yamada; Erica Sioson
    Abstract: major labor migrant sending and remittance dependent country in Central Asia. We contribute to the literature in two ways. First, we effectively address the common methodological issues that result in biased estimates in analyses of migration and remittances. Our empirical work accounts for the endogeneity of migration and remittances with respect to the labor supply decisions of household members left at home, and for the self-selection of migrants and remittance senders through the application of a control function approach. Second, we apply our empirical model to unique high-frequency household panel data that further helps to remedy methodological problems present in cross-sectional studies. The findings suggest that having a migrant member and receiving remittances increases the reservation wages of the household members left at home, thereby reducing their labor supply and economic activity rate. This result is robust to different model specifications and definitions of migration and remittances.
    Keywords: Migration, remittances, labor market participation, economic activity rate, endogenous switching, Tajikistan
    Date: 2018–12
    URL: http://d.repec.org/n?u=RePEc:jic:wpaper:181&r=all
  19. By: Barrios, Salvador; Ivaškaitė-Tamošiūnė, Viginta; Maftei, Anamaria; Narazani, Edlira; Varga, Janos
    Abstract: Much of the literature on flat tax reforms has highlighted the benefits of introducing flat personal income tax systems in transition economies. The advocated benefits of flat tax systems range from their simplicity, higher compliance and lower distortionary effects on growth and employment. These arguments have often been cited to support policy recommendations favouring the adoption of flat tax systems in Central and Eastern European (CEE) countries in the 1990s and the 2000s. However since income inequality is notoriously high in these countries, the question of introducing some progressivity in the tax system has come to the fore in both policy and academic circles. In this paper, we analyse the fiscal, redistributive and macroeconomic impact of (re-)introducing progressivity in a number of CEE countries with flat tax systems. Combining microsimulation and macro models, we find that a significant reduction in income inequality can be achieved by moving from a flat to a progressive tax system with positive, albeit negligible, macroeconomic and employment impact. The magnitude of these effects depends on country-specificities and tax system characteristics, due in particular to the existence of tax allowances and tax creditsÂ
    Date: 2019–03–07
    URL: http://d.repec.org/n?u=RePEc:ese:emodwp:em2-19&r=all
  20. By: Levashenko, Antonina (Левашенко, Антонина) (The Russian Presidential Academy of National Economy and Public Administration); Ermokhin, Ivan (Ермохин, Иван) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: As part of this work, the provisions of the OECD Declaration on International Investments and Multinational Enterprises of 1976, as well as the standards of responsible business of the OECD, were analyzed. More than 75% of institutional investors in the world today are guided by the principles of sustainable development, impose responsible behavior requirements on investment recipients. An analysis of the OECD sectoral guidelines shows that these standards already today have an impact on the Russian economy and enterprises. The non-participation of Russia in the formation of standards of the OVB puts Russian enterprises in a less advantageous position than companies from the countries participating in the Declaration, as our companies are forced to comply with the standards that they did not take part in the formation of.
    Keywords: OECD, responsible business, investment, trade, EAEU
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031935&r=all
  21. By: Maleva, Tatiana (Малева, Татьяна) (The Russian Presidential Academy of National Economy and Public Administration); Grishina, Elena E. (Гришина, Елена Е.) (The Russian Presidential Academy of National Economy and Public Administration); Polyakova, Alexandra (Полякова, Александра) (The Russian Presidential Academy of National Economy and Public Administration); Florinskaya, Yulia (Флоринская, Юлия) (The Russian Presidential Academy of National Economy and Public Administration); Loginov, Dmitriy (Логинов, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration); Khasanova, Ramiliya (Хасанова, Рамиля) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The authors made a comprehensive analysis of indicators covering the most important areas, including incomes of the population, the labor market, regional social development, demographic development, changing the migration situation, social well-being of the population and the strategy of its behavior. The study is based on the results of statistical analysis and monitoring of the social well-being of the population, implemented by the Institute of Social Analysis and Forecasting of the RANEPA since 2015. The analysis made it possible to determine the strategic tasks that the Russian economy and Russian society will have to solve for a long time.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031936&r=all
  22. By: Quan-Hoang Vuong
    Abstract: In an age of reform, Vietnam’s financial systems have come to a critical stage in which the quality of policy-making, independence of the central banking operations and over-risk controls will ultimately be required if the country is set to move forward in a sustainable fashion. Analysts may have different views about Vietnam’s financial economy, but all agree that it has evolved and grown fast over the past three decades. The next course of development will depend on how Vietnamese society views raison d’être of its financial systems and financial health. But the process will much depend on the economic growth of the economy as a whole. Failing to support a sustained growth puts VFS’s existence at risk as economic growth helps mitigate higher risk-taking behavior and contain instability in less competitive markets.
    Keywords: Financial economy; Reforms; Emerging market; Money market; Capital market
    JEL: E44 E58 F36 G00
    Date: 2019–03–21
    URL: http://d.repec.org/n?u=RePEc:sol:ppaper:2013/285591&r=all
  23. By: Giovanni Dosi; Maria Enrica Virgillito; Xiaodan Yu
    Abstract: This paper highlights new findings on the wage-productivity nexus in the World Factory Economy. After presenting the long-run macro-elasticity characterizing the phase of Chinese economic development since the eighties, we look at the wage-productivity nexus from a micro level perspective using a detailed firm-level dataset covering the period of ownership restructuring (1998-2007). A few results are quite robust under different estimation strategies. First, throughout the impressive Chinese economic miracle, elasticities of real wages to productivities - that is the ratios of rates of variations of the former to the latter - are always positive both under pooled and longitudinal estimates, both at firm- and sectoral-levels. Second, such elasticities are dramatically low, and falling in many distinct phases since the late seventies. That is, even in the manufacturing sector, the distribution of gains from the impressive labour productivity growth appears to be markedly uneven. Finally, third, governance institutions seem to matter a lot, with the majority of ownership types exhibiting firm-specific wage determination processes. The low elasticities of wages to productivity are plausibly the consequence of the massive flow of migrant workers from the rural areas to the coasts, somewhat resembling the early phase of the English Industrial Revolution with the pattern of enclosure in the country-side and massive migrations to the industrial towns.
    Keywords: Wage; Productivity; Distributions; Chinese Industrialization
    Date: 2019–03–18
    URL: http://d.repec.org/n?u=RePEc:ssa:lemwps:2019/05&r=all
  24. By: Danilov, Yuriy (Данилов, Юрий Алексеевич) (The Russian Presidential Academy of National Economy and Public Administration); Pivovarov, Danil (Пивоваров, Данил) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper examines the problems of financial inclusion, considered as a prerequisite for the formation of an inclusive growth model (“growth for all”). The paper presents results of calculations of the mutual dependence of financial inclusion and financial stability; financial inclusion and financial sector performance; financial inclusion and financial structure; financial inclusion and economic dynamics. Authors evaluate the financial inclusion of the Russian banking sector and financial markets, including the first assessment of the inclusion in the primary securities markets and its impact on the economic dynamics and investment activity of enterprises. And authors formulate recommendations for economic policy in the financial sector.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031940&r=all
  25. By: Firanchuk, Alexander (Фиранчук, Александр) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: In this paper, we study the question of the impact of this trade restriction on the prices of Russian imports. This task has important applied and academic value. First, the practical benefit is to assess the impact of the embargo on import prices (at the border). Secondly, the academic significance of the work stems from the fact that the trade restriction introduced occurred at the time of the sharp decline in the ruble exchange rate. Thus, the econometric questions of assessing the impact of two, almost simultaneous events on import prices become fundamental. Namely, we will pay attention to how modern econometric methods allow us to take into account the effect of the embargo and not to mix it with the effect of transferring the exchange rate to import prices. The analysis uses monthly FCS data on Russia's imports, Central Bank data on exchange rates, Rosstat data on consumer prices and production volumes.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031916&r=all
  26. By: Milogolov, Nikolay (Милоголов, Николай) (The Russian Presidential Academy of National Economy and Public Administration); Patel, Svetlana (Патель, Светлана) (The Russian Presidential Academy of National Economy and Public Administration); Berberov, Azamat (Берберов, Азамат) (Gaidar Institute for Economic Policy)
    Abstract: In the paper there is analysis of tax policy in relation to international transactions in Russia and in foreign countries in the context of countering base erosion and increasing competitiveness of jurisdiction for foreign investments. We provide analysis of tax policy instruments in different types of countries (developing, developed, financial centers and offshores). We conclude that scale of base erosion is significant in Russia. We reveal impact of de-ofshorization tax policy measures and propose recommendations for improving international tax policy in Russia.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031930&r=all
  27. By: Abroskin, Alexander (Аброскин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Abroskina, Natalia (Аброскина, Наталья) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The problems of methodology and methods of shadow activity scales measurement in the sectors of the Russian economy are the subject area of the research. Special approach to the construction of estimates for the scales of shadow activity in industries of the Russian economy, based on the modification of the classical method of physical inputs, is proposed. The algorithm of calculations and the description of information base used in the construction of sectorial indicators of the shadow activity scales dynamics in the Russian Federation are presented. Absolute estimates and structural indicators of shadow activity scales in gross value added were developed for selected industries of the production of goods and services; corrected estimates of gross value added and GDP of the Russian Federation for 2017 taking into account the updated industry estimates of the shadow activity scales are presented.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031915&r=all
  28. By: Lu, Yi; Sugita, Yoichi; Zhu, Lianming
    Abstract: This paper examines whether foreign direct investment (FDI) liberalization reduces firms' monopsony power in labor markets. We estimate firm-level wage markdown, wage over marginal revenue of labor, from China's production data and identify the causal effect of FDI liberalization on wage markdown, using China's regulation changes upon its accession to the World Trade Organization. Large and productive firms, state-owned firms, exporters, and foreign firms set narrower wage markdowns. FDI liberalization widened wage markdowns and decreased labor income share in value-added. These findings are contrast to classical monopsony theory based on concentration but consistent with modern theory based on search friction.
    Keywords: Foreign direct investment, Monopsony, Wage, Search, Firm heterogeneity
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-83&r=all
  29. By: Feicheng Wang; Chris Milner; Juliane Scheffel
    Abstract: This paper examines the relationship between average income of export destinations and skill premium using data of Chinese manufacturing industries from 1995 to 2008. To do so, we construct weighted average GDP per capita across destinations employing within-industry export share to each destination as weight, and then link it with industry-level wages and skill premium. We find that industries that export more to high-income destinations tend to pay a higher skill premium, suggesting that on average, skilled workers benefit more from high-income exports than unskilled workers. Our IV estimates confirm a causal relationship and the results are robust to various specifications. Our paper contributes to the understanding of the influence of export destinations on the uneven distributional effects of globalisation for different types of workers.
    Keywords: Export destinations; Skill premium; Manufacturing industries; China JEL Classification: F14; F16; F66; J24; J31
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:not:notgep:2019-07&r=all
  30. By: Nikulin, Alexander (Никулин, Александр) (The Russian Presidential Academy of National Economy and Public Administration); Vinogradskiy, Valeriy (Виноградский, Валерий) (The Russian Presidential Academy of National Economy and Public Administration); Vinogradskaya, Olga (Виноградская, Ольга) (The Russian Presidential Academy of National Economy and Public Administration); Gusakov, Timur (Гусаков, Тимур) (The Russian Presidential Academy of National Economy and Public Administration); Trotsuk, Irina (Троцук, Ирина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Today environmental issues are in the focus not only of scientific and managerial but also of everyday interest of townspeople and villagers, and such concerns are increasingly about the countryside for it lost its previous “status” of ecological “enclave” due to the growing number and severity of environmental crisis situations in rural areas. However, we do not consider these crisis situations as such but rather the consequences of the deformation of the previous ecological balance between peasant households and their environment, and we study the daily efforts of rural residents within their informal economy to restore the traditional ecological state of the village or, at least, to prevent it deterioration. Based on statistical, historical and empirical data, we consider the types of practices that determine the formats of sustainable local and regional agronomic and social-economic interaction of social agents in rural areas.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031923&r=all
  31. By: Ponomarev, Yuriy (Пономарев, Юрий) (The Russian Presidential Academy of National Economy and Public Administration); Magomedov, Rustam (Магомедов, Рустам) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Currently, the Russian economy is in a recovery phase after stagnation caused by a decrease in export prices for hydrocarbons, a reduction in budget revenues and international sanctions. The decline in profitability in the primary sectors of the economy has given some impetus to the development of the manufacturing industry, but industry growth rates are still very low and Russian industrial companies lag behind world leaders. As a result, the Russian economy is growing at a rate lower than the world average and cannot switch to sustainable growth. One of the key reasons for such development dynamics is the technological lag of the Russian economy from the developed countries and the lack of sufficient prerequisites for narrowing the gap, which in the long run will only increase due to the accelerated technological development of developed countries in the fourth industrial revolution. Due to the instability of the country and sectoral terms of trade, the need to integrate into the international division of labor within the fourth industrial revolution currently taking place in the world and the need for structural and technological transformation of the Russian economy, the issue of identifying the necessary conditions for positive changes in production functions is now a highly topical task. The goal of the research was testing the hypotheses about the impact of new technologies on the productivity and production functions of Russian companies. For that we provided: the review of industrial revolutions in developed and developing countries was conducted; theoretical and empirical studies on new technology adoption models were analyzed; the review of empirical approaches to the estimation of impact of technological changes on productivity and production functions was conducted; case studies of adoption of new technologies were analyzed; the impact assessment of new technologies on TFP and production functions in cement industry and steel industry in Russia.
    Date: 2019–03
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:031924&r=all
  32. By: Simona E. Cociuba (University of Western Ontario)
    Abstract: After the 1990 unification, East Germany’s capital income share plunged to 15.2 percent in 1991, then increased to 37.4 percent by 2015. To account for these large changes in the capital share, I model an economy that gains access to a higher productivity technology embodied in new plants. As existing low productivity plants decrease production, the capital share varies due to the non-convex production technology: plants require a minimum amount of labor to produce output. Two policies— transfers and government-mandated wage increases—have opposite effects on output growth, but contribute to lowering the capital share early in the transition.
    Keywords: technological change, capital share, labor share, transfers, union markups
    JEL: E20 E25 O11
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:uwo:uwowop:20185&r=all
  33. By: Krivonos, Ekaterina; Kuhn, Lena
    Abstract: In public and academic debates, the linkages between agricultural markets and nutrition across the world are vividly discussed. This paper contributes to the ongoing debate by analyzing the relationship between greater openness to trade and dietary diversity. It focuses on the post-communist countries of Eastern Europe and Central Asia where trade reforms as part of the economic and political transition provide a natural experiment for studying the effects of trade openness on agricultural markets and consumer behaviour. Reduction in trade barriers, for instance in the context of the accession to the WTO and the EU, and the gradual integration with world markets after 1991 had implications for diets through changes in production, prices and incomes. We utilize country-level panel data for 26 post-communist countries in the period 1996-2013 to assess the effects of trade costs, openness to trade and incomes on dietary diversity measured by the Shannon entropy index. The results arising from fixed effects and instrumental variables estimation are consistent with previous findings that income growth affects dietary diversity positively and provide novel evidence that trade barriers reduce variety of products available in domestic markets, in particular fruits and vegetables.
    Keywords: Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, International Relations/Trade
    Date: 2019
    URL: http://d.repec.org/n?u=RePEc:ags:iamodp:285031&r=all

This nep-tra issue is ©2019 by J. David Brown. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.