nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2013‒09‒25
two papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Институциональный эксперимент By Polterovich, Victor
  2. Structural change, labor productivity growth, and convergence of BRIC countries By Vatthanamixay Chansomphou; Masaru Ichihashi

  1. By: Polterovich, Victor
    Abstract: I discuss goals of institutional experimentation as well as obstacles for its realization. The special attention is given to regional experiments. Institutional experiment reduces transformation costs, in particular, by diminishing probability of formation of erroneous reforms trap. The analyses of introduction of a pay-as-you-go pension component in several tens of countries and the history of introduction of the Unified State Examination in Russia show the importance of planning the experiments in advance and using objective procedures of assessment of their results. The reasons for adopting a law on the institutional experiment are given.
    Keywords: interim institution; transformational cost; line of institutions; Unified State Examination; pension reform; evaluation of an experiment
    JEL: D02 E02 H75 L85 O1 P5
    Date: 2013
  2. By: Vatthanamixay Chansomphou (Graduate School for International Development and Cooperation); Masaru Ichihashi (Graduate School for International Development and Cooperation)
    Abstract: In this study, we seek to understand the patterns of structural change, labor productivity growth and convergence in BRIC countries. In the first part, we employ the dataset of labor productivity from de Vries et al. (2012) and the Groningen Growth and Development Center (2013) and utilize the shift and share analysis to investigate the contribution of within shift, static shift and dynamic shift effects on growth of labor productivity. In the second part, we use the convergence tests to check for the cross-country convergence in each economic sector. Our aggregate shift-share decomposition results report that labor productivity growth within sector itself is the main source of aggregate growth, while an effect of labor movement exists (shift effect) but not substantial. Among BRIC, we found that, during 1980-2008, China had the highest rate of labor productivity growth, following by India, Russia, and Brazil, respectively. The results of the convergence analysis show that service sectors in BRICs have faster catching-up rates than industrial sectors, and there is no convergence in agriculture. Among service sectors, financial, insurance, and real estate sector has highest speed of convergence. The BRICs results are then used to compare with the four OECD countriesf results. It is found that in OECD countries, the sectors that converge fastest are mining and finance, insurance, and real estate. Nevertheless, the magnitudes of speed of convergence in OECDs are not comparable to BRICs. This confirms the growth theory in that less developed countries converge faster than developed nations. In sum, our findings imply that service sectors are the driving force of economic growth and economic convergence in BRICs.
    Keywords: Structural change, shift-share analysis, sectoral convergence, BRICs
    JEL: C80 N10 O10 O11 O41 O47
    Date: 2013–08

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