nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2013‒09‒13
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Is There Convergence of Russia’s Regions? Exploring the Empirical Evidence: 1995 – 2010 By H. Lehmann; M. G. Silvagni
  2. Likely Candidates: Next BRICs? Turkey By Fatih Ozatay
  3. К вопросу о возможности синтеза концепции удовлетворяющего поиска и неоклассической доктрины By Malakhov, Sergey
  4. Business cycles in EU new member states: How and why are they different? By Marcin Kolasa
  5. The Performance of Export Credit Agencies in Post-Communist Central European Countries By Karel Janda; Eva Michalikova; Lucia Psenakova

  1. By: H. Lehmann; M. G. Silvagni
    Abstract: This paper analyzes convergence in per capita gross regional product of Russia’s regions during the period 1995-2010, when regional data are available. Using a panel regression framework we find no evidence for beta-convergence. Instead we find divergence, which is, however, attenuated over time. Robustness checks that use regional real income instead of gross regional product confirm this outcome as do non-parametric estimates of convergence, namely estimates using Markov transition probability matrices and stochastic kernel plots of regional relative income. Decompositions of regional income and gross regional product also find no sigma-convergence of Russian regions. These decompositions point to the geographical concentration of extractive activities in the Urals and of business services and of the public administration in the Moscow area as the main culprit for this lack of convergence. They also establish that despite reforms to equalize provisions of public goods across Russia, the social services sector of the public administration, education and health still do not have the expected equalizing impact on regional income.
    JEL: O47 P25 R11 R12
    Date: 2013–09
  2. By: Fatih Ozatay
    Date: 2013–09
  3. By: Malakhov, Sergey
    Abstract: The paper argues that when a consumer searches for a lower price, a satisficing decision procedure equalizes marginal costs of search with its marginal benefit. The consumer can maximize the utility of his consumption-leisure choice with regard to the equality of marginal values of search. Therefore, the satisficing decision procedure results in the optimizing consumer behavior.
    Keywords: satisficing, consumption, leisure, price dispersion, search
    JEL: D11 D83
    Date: 2012–09–01
  4. By: Marcin Kolasa (National Bank of Poland, Warsaw School of Economics)
    Abstract: This paper uses the business cycle accounting framework to investigate the differences between economic fluctuations in Central and Eastern European (CEE) countries and the euro area. We decompose output movements into the contributions of four economic wedges, affecting the production technology, the agents’ intra- and intertemporal choices, and the aggregate resource constraint. We next analyze the observed cross-country differences in business cycles with respect to these four identified wedges. Our results indicate that business cycles in the CEE countries do differ from those observed in the euro area, even though substantial convergence has been achieved after the eastern EU enlargement. The major differences concern the importance of the intraand intertemporal wedges, which account for a larger proportion of output fluctuations in the CEE region and also exhibit relatively little comovement with their euro area counterparts.
    Keywords: business cycle accounting; business cycle synchronization
    JEL: E32 F44
    Date: 2013
  5. By: Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague and University of Economics, Prague, Faculty of Finance and Accounting); Eva Michalikova (Brno University of Technology, Faculty of Business and Management); Lucia Psenakova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague)
    Abstract: This paper is the first one to analyze official government export promotion in all four post-communist Central European Visegrad countries (Czech Republic, Hungary, Poland, Slovakia). Similar development of those economies in transition period after the fall of communism is described and their extremely fast and successful reorientation towards Western markets is emphasized. Nowadays each government in the region implements its own export strategy, where interestingly each country defines different priority territories for their export. The core of this paper is analysis of export credit agencies in Visegrad countries. Firstly we compare advantages and disadvantages of different forms of export credit agencies. Then we apply empirical data from international trade in gravity model framework and we conclude that the most e_ective type of export credit agency in Visegrad Four region is currently Polish KUKE which is an institution operating in the form of an insurance company. Other forms such as a bank and an institution providing both insurance and financing facilities are currently less effective. We confirm that smaller distance and higher GDP increase the amount of export in line with basic intuition of a gravity model of international trade.
    Keywords: international trade, state promotion, export credit agencies, gravity model, Visegrad Group
    JEL: F14 G28 C23
    Date: 2013–08

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