nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2010‒09‒25
four papers chosen by
Koen Schoors
Ghent University

  1. Informal Economy Activities and Entrepreneurship: Evidence from Russia By Kim, Byung-Yeon
  2. The Profits of Power: Commercial Realpolitik in Europe and Eurasia By Rawi Abdelal
  3. Regional Tourism Competition in the Baltic States: a Spatial Stochastic Frontier Approach By Pavlyuk, Dmitry
  4. The contagion effect: evidences from former Soviet Economies in Eastern Europe By Insel, Aysu; Korkmaz, Abdurrahman

  1. By: Kim, Byung-Yeon
    Abstract: This paper uses the Russian Longitudinal Monitoring Survey (RLMS) from 1998 to 2004 to analyze the effect of previous informal economy activities on the creation of official entrepreneurship. We find that previous participation in the informal economy is positively associated with the probability to become registered entrepreneurs in the present. We also find that that self-employment is used as a transition mechanism to entrepreneurship and moonlighters in the past are more active in actual job changes. Furthermore, a survival function analysis suggests that previous experience as self-employed moonlighters enhances the probability of success as official entrepreneur. Workers who moonlighted as selfemployed in the past represent 16-22% of the new entrepreneurs. --
    Keywords: Informal economy,entrepreneurs,Russia
    JEL: J22 J24 O17 P20
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:zbw:gdec10:55&r=cis
  2. By: Rawi Abdelal (Harvard Business School, Business, Government and the International Economy Unit)
    Date: 2010–09
    URL: http://d.repec.org/n?u=RePEc:hbs:wpaper:11-028&r=cis
  3. By: Pavlyuk, Dmitry
    Abstract: This paper aimed at a statistical analysis of competition for tourists between regions within Baltic states (Estonia, Latvia, Lithuania) and estimation relative efficiency levels of regions. We apply a modern approach called Spatial Stochastic Frontier and corresponded to spatial modification of a stochastic frontier model. We specify two alternative spatial stochastic frontier models – distance and travel-time based to identify an influence of existing transport network on research results. Using the model we analyse region-specific factors (tourism infrastructure, employment, geographical position and natural attractors) having an effect on a number of visitors and estimate regions' efficiency values. We discover a significant level of inefficiency of Baltic states regions and propose some ways to improve the situation.
    Keywords: spatial stochastic frontier; efficiency; competition; regional tourism; transport network
    JEL: C51 O18 R15 C31 L83 C33
    Date: 2010–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:25052&r=cis
  4. By: Insel, Aysu; Korkmaz, Abdurrahman
    Abstract: This paper analyzes whether or not the contagion effect exists among the seven former-Soviet economies in Eastern Europe: Belarus, Estonia, Latvia, Lithuania, Moldova, Russia and Ukraine throughout the period from November 1996 to December 2009. The evolution of the EU memberships of Estonia, Latvia and Lithuania has been assessed over the membership period (2004:05-2009:12) in comparison to the non-membership period (1995:11-2004:04). Additionally, the economies and the sample period employed in this research give an opportunity to test for two hypotheses on the contagion effect: First, the “flight to quality” hypothesis suggested by Favero and Giavazzi (2002) and second, the “political contagion” hypothesis offered by Drazen (1999). The contagion effect hypotheses for each economy have been tested using the “Threshold Test” proposed by Pesaran and Pick (2007). The econometric method employed in this paper examines only the contagion effect, not the interdependence although the seven economies or groups in the analysis can have interdependence relations. Empirical analysis has highlighted that: (i) the contagion effect exists in the region; (ii) the structure of the contagion mechanism in the region is not stable during the estimation period; (iii) there is an evidence for the validity of “flight to quality” hypothesis; (iv) there is no evidence for the validity of the “political contagion” hypothesis. These results are consistent with the different regional patterns of the former Soviet countries.
    Keywords: contagion; threshold test; Eastern Europe; political contagion; flight to quality
    JEL: G15 C30
    Date: 2010–09–14
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:24999&r=cis

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