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on Central and Western Asia |
| By: | Hyeon-seung Huh (Yonsei University); Cyn-Young Park (Asian Development Bank) |
| Abstract: | How the price of food is determined has become a critical issue, given the drastic surges in prices in recent years and the prevailing expectation of further increases. Along this line, this paper examines the sources of food price fluctuations in 11 developing Asian countries. The working model is a block Vector AutoRegression (VAR), and 10 variables for each country are classified into three blocks?world, region, and country?depending on their origin and nature. Empirical evidence shows that the regional shock plays a pivotal role in explaining the variations of domestic food prices, particularly at medium- to long-term horizons. Contrary to conventional belief, the world food price shock contributes little to the dynamics of domestic food prices in developing Asia. The findings suggest Asian food markets are more integrated regionally than with the world market. The short-run movements of domestic food prices are accounted for largely by the country¡¯s own shock. Taken together, our findings suggest that promoting food price stability would require efforts at the regional level as well as at the domestic level, reflecting the influence of region-specific factors. Extensions to the developing countries in other regions produce similar findings on the determination of food prices. |
| Keywords: | Food price; Developing Asia; Shocks; Block VAR business cycles |
| JEL: | C32 F15 Q11 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2013rwp-62&r=cwa |
| By: | Hartmut Lehmann; Anzelika Zaiceva |
| Abstract: | This paper takes stock of informal employment in Russia analysing its incidence and determinants. Using the regular 2003-11 waves and an informality supplement of the Russian Longitudinal Monitoring Survey (RLMS) it develops several measures of informal employment and demonstrates that the incidence varies widely across the different definitions. We also show that the determinants of informal employment are roughly stable across the different measures: workers who are males, relatively young, unskilled and employed in construction and trade and related services have a higher likelihood to have an informal job. We also take a look at the issue of labour market segmentation along the informal-formal divide by estimating an informal-formal wage gap at the means and across the entire wage distributions. We find only weak evidence for labour market segmentation in Russia when estimating an informal-formal wage gap for salaried workers at the mean. The results of quantile regressions show a wage penalty in the lower half of the distribution and no gap in the upper half for informal employees. In contrast, informal self-employed and entrepreneurs have conditional mean wages that are higher than the mean wages for the formally employed. Across the entire wage distribution, however, we find a negative wage gap in the lowest quartile and a strongly positive wage gap in the highest quartile, pointing to a segmented informal sector with a lower free entry tier and an upper rationed tier. This Working Paper relates to the 2014 OECD Economic Survey of the Russian Federation (www.oecd.org/eco/surveys/russia). L'emploi informel en Russie : Définitions, incidence, déterminants et segmentation du marché du travail Ce document de travail propose un bilan sur l'emploi informel en Russie et analyse son incidence et ses déterminants. En utilisant les données régulières 2003-11 et un supplément sur l'informalité de l'Enquête "Russian Longitudinal Monitoring Survey" (RLMS), nous suggérons plusieurs mesures de l'emploi informel et démontrons que l'incidence varie considérablement selon les différentes définitions. Nous montrons également que les déterminants de l'emploi informel sont à peu près stables avec les différentes mesures: les travailleurs hommes, relativement jeunes, non qualifiés et employés dans la construction et le commerce et les services connexes ont une probabilité plus élevée d'avoir un emploi informel. Nous examinons également la question de la segmentation du marché du travail en terme de division entre marché formel et informel en estimant l'écart de salaire entre secteurs en moyenne et sur l'ensemble de la distribution des salaires. Nous ne trouvons que de faibles signes de segmentation du marché du travail en Russie pour l'estimation à la moyenne. Les résultats des régressions par quantile montrent une pénalité salariale pour les employés informels dans la moitié inférieure de la distribution et pas de différence dans la moitié supérieure. En revanche, les indépendants et les entrepreneurs du secteur informel ont des salaires moyens conditionnels plus élevés que les salaires moyens pour l'emploi formel. Sur l'ensemble de la distribution des salaires, cependant, nous constatons un écart salarial négatif dans le quartile inférieur et un écart salarial fortement positive dans le quartile le plus élevé, indiquant un secteur informel segmenté avec libre entrée dans le bas et du rationnement dans le haut. Ce Document de travail se rapporte à l’Étude économique de l’OCDE 2014 sur la Fédération de Russie (www.oecd.org/etudes/russie). |
| JEL: | J31 J40 P23 |
| Date: | 2013–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1098-en&r=cwa |
| By: | Nadia Chernenko |
| Abstract: | The paper examines long-run and short-run levels of market power in the liberalised Russian electricity market. We observe that despite potential for market power abuse, actual exercise of market power as measured by price-cost markups remained low. We attribute the result to the bid-at-cost rule implemented as a part of a special unit commitment procedure on the day-ahead market. We first look at the restructured industry and discuss the mergers and acquisitions and their impact on competition in long term. The M&A were undertaken in different market zones and thus did not seem to increase concentration (HHI remains almost unchanged) although with future zone integration competition in long run is put at risk. We then examine short-run level of market power by estimating hourly price-cost mark-ups and assessing their dynamics in 2010 and 2011, a year preceeding and following the market liberalisation respectively. Using time series models (AR models) we reject hypothesis of actual market power abuse. Further, using a Tobit regression we find that the liberalisation decreased the mark-ups by about 1.66 percetage points. |
| Keywords: | Russian electricity market, liberalisation, market power, concentration, price-cost mark-ups |
| JEL: | L11 L13 L94 |
| Date: | 2013–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1358&r=cwa |
| By: | Alisher Akhmedjonov (Zirve University); Irina N. Il’ina (National Research University Higher School of Economics); Carol S. Leonard (National Research University Higher School of Economics); Zafar Nazarov (Cornell University); Evgenij E. Plisetskij (National Research University Higher School of Economics); Elena S. Vakulenko (National Research University Higher School of Economics) |
| Abstract: | This paper assesses the impact of the quality of governance on economic performance in Russia’s 83 regions (Oblasts, Republics, Krais and Okrugs) from 2000 to 2008, a period of rapid economic advancement. Defining governance broadly as how authority is exercised, and using as a proxy a measure of the investment risk by region, this paper contributes to the literature on identifying the economic impact of governance. Our results find a significant association between governance in Russia’s diverse regions and economic well-being, that is, we find a performance gap in government practices. Specifically, our study shows that the main components of effective governance are the ability of the government to run effective public health programs aimed at decreasing the overall mortality rate among the working-age population, to create fair labor market conditions for all individuals who are still capable of working, and to improve the investment climate in the region leading to a higher level of investment in fixed assets. Our results implicitly suggest that effective governance comprises the tangible aspects of policymaking such as the adoption of effective public health, investment and labor policies and most importantly, for the regions of Russian Federation, although effective governance can be also an artifact of unobserved and unmeasurable managerial attributes of the local government to implement federal and region level laws and regulations |
| Keywords: | governance, Russian regions, well-being, economy, Russia, investment, investment risk, mortality, public health, labor market |
| JEL: | O47 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:42/ec/2013&r=cwa |
| By: | Isik Özel |
| Keywords: | regions; regional policy; interest intermediation |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:erp:kfgxxx:p0053&r=cwa |
| By: | Andrew Geddes |
| Abstract: | This paper explores the role played by the production and use of knowledge about international migration - or to be more specific the incompleteness of such knowledge -in driving new forms of EU migration governance. The focus is on the transformation of modes of governance linked to the roles played by instrumental, social and communicative logics of institutional action. The paper shows that, while the key referent for migration governance in Europe remains the state and associated state-centered logics of control, it is now evident that both the understanding of the issues and the pursuit of policy objectives are clearly shaped by the EU. A key reason for this is the role played by uncertainty related not only to the causes and effects of international migration, but also about the actual numbers of international migrants living both regularly and irregularly in EU member states. In contrast to existing approaches that see uncertainty and incomplete knowledge as causes of policy failure, this paper sees uncertainty and incomplete knowledge as creating social and political opportunities for EU action linked to the quest for more and 'better' knowledge with resultant conceptual and practical space for 'transgovernmental' relations among government units working across borders. |
| Keywords: | immigration policy; governance |
| Date: | 2013–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:erp:kfgxxx:p0056&r=cwa |
| By: | Leyden, Dennis P. (University of North Carolina at Greensboro, Department of Economics); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Siegel, Donald S. (University at Albany, SUNY) |
| Abstract: | Entrepreneurship involves innovation and uncertainty. We outline a theory of entrepreneurship, which highlights the importance of social networks in promoting innovation and reducing uncertainty. Our findings suggest that this “social” aspect of entrepreneurship increases the probability of entrepreneurial success. The results also lend credence to theories of entrepreneurship that suggest that entrepreneurial opportunities are formed endogenously by the entrepreneurs who create them. We also consider the public policy implications of our findings. |
| Keywords: | Entrepreneurship; Social networks; Innovation; Technology |
| JEL: | O31 O32 O33 O38 Z13 |
| Date: | 2013–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_022&r=cwa |
| By: | Alvandi , Keyvan (CIRCLE, Lund University); Chaminade , Cristina (CIRCLE, Lund University); Lv, Ping (University of Chinese Academy of Sciences, China) |
| Abstract: | This paper investigates commonalities and differences in firm level determinants of internationalization of production (production related investments or PFDI) and innovation (technology driven investments or TFDI) by Multinational Enterprises (MNEs). Our database is based on a cross country survey which includes firms within Automotive, Agro-processing and ICT sectors from both developing and advanced economies. Our results show that despite some differences, most of the determinants affect in a similar manner both the PFDI and TFDI which rather contradicts recent arguments claiming significant differences between the two. More interestingly however, we found that institutional determinants such as policies related to foreign direct investments play almost no role in internationalization process of firms while managerial (internal to the firm) determinants had a far greater impact. |
| Keywords: | Foreign direct investment; Multinationals; Globalization; offshoring; TFDI |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_047&r=cwa |
| By: | Wahyoe Soedarmono (Universitas Siswa Bangsa Internasional, Faculty of Business / Sampoerna School of Business - un); Amine Tarazi (LAPE - Laboratoire d'Analyse et de Prospective Economique - Université de Limoges : EA1088 - Institut Sciences de l'Homme et de la Société) |
| Abstract: | This paper examines the relationship between opacity and the cost of intermediation in Asian banks. Using a sample of publicly traded commercial banks from 2002 to 2008, our empirical results show that higher opacity is associated with a lower intermediation cost in banking. Hence, bank managers in their efforts to overcome asymmetric information issues and to improve transparency tend to offset the higher cost of acquiring and disclosing information by increasing the cost of intermediation for entrepreneurs. Moreover, a deeper look at the country level indicates that the negative link between opacity and the cost of intermediation is reversed as globalization increases. Greater globalization therefore outweighs managerial entrenchment behavior to preserve bank opacity. Our findings highlight that bank opacity issues are even more costly in countries with higher globalization. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00916564&r=cwa |
| By: | Jenkins, Stephen P.; Sirma Demir Șeker |
| Abstract: | This paper provides new evidence about poverty trends in Turkey between 2003 and 2011 and the factors accounting for them. We give particular attention to issues of statistical inference, and the choice of the poverty line and the poverty measure. Our robust conclusion is that absolute poverty declined rapidly between 2003 and 2008 but fell only slightly between 2008 and 2011. Changes in relative poverty were negligible throughout. Using poverty decomposition methods, we argue that the rate of decline in the absolute poverty rate is largely accounted for by changes in the rate of national economic growth rather than by changes in the income distribution or by changes in the distribution of poverty risks across various subgroups within the population or in population composition. |
| Date: | 2013–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2013-29&r=cwa |
| By: | Halkos , George |
| Abstract: | Eutrophication represents a global environmental pressure that necessitates international co-operation and the diffusion of information to avoid information asymmetries, the construction of an appropriate legislative framework, the development of monitoring technologies and scientific research to provide the evidence base for any policy interventions. The health condition of the Baltic and Black Seas has deteriorated over a long period due to increases in nutrient inputs from anthropogenic and non-anthropogenic sources. The current report aims at providing a review of the literature and defining the possible gaps concerning (1) the attempts at regulatory intervention to address the problem of eutrophication in the Baltic and Black Seas, (2) the methodological issues in constructing a cost-effectiveness analysis, (3) the available applications of cost-effectiveness studies conducted and (4) the uncertainties and risks entailed in the cost-effectiveness studies. |
| Keywords: | Eutrophication; cost-effectiveness analysis; abatement measures; nutrient loading; Baltic Sea; Black Sea. |
| JEL: | Q00 Q01 Q25 Q50 Q53 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52296&r=cwa |
| By: | Ivrendi, Mehmet; Yildirim, Zekeriya |
| Abstract: | This paper investigates both the effects of domestic monetary policy and external shocks on fundamental macroeconomic variables in six fast growing emerging economies: Brazil, Russia, India, China, South Africa and Turkey - denoted hereafter as BRICS_T. The authors adopt a structural VAR model with a block exogeneity procedure to identify domestic monetary policy shocks and external shocks. Their research reveals that a contractionary monetary policy in most countries appreciates the domestic currency, increases interest rates, effectively controls inflation rates and reduces output. They do not find any evidence of the price, output, exchange rates and trade puzzles that are usually found in VAR studies. Their findings imply that the exchange rate is the main transmission mechanism in BRICS_T economies. The authors also find that that there are inverse J-curves in five of the six fast growing emerging economies and there are deviations from UIP (Uncovered Interest Parity) in response to a contractionary monetary policy in those countries. Moreover, world output shocks are not a dominant source of fluctuations in those economies. -- |
| Keywords: | monetary policy,inflation,international trade,exchange rate,SVAR |
| JEL: | E52 E63 F14 F31 C51 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201361&r=cwa |
| By: | Carbonara , Nunzia (Dept of Mechanical and Management Engineering, Politecnico di Bari, Italy); Tavassoli, Sam (Industrial Economics, Blekinge Institute of Technology, Karlskrona, Sweden and CIRCLE, Lund University, Sweden) |
| Abstract: | This paper seeks to contribute to the ongoing debate concerning the role of heterogeneity for the innovative capability of industrial districts. With this aim, using a knowledge-based approach, the paper focuses on different sources of industrial district knowledge heterogeneity and studies how the different level of heterogeneity affects the innovative capability of industrial districts. Four theoretical hypotheses concerning the effects of knowledge and knowledge heterogeneity on the Industrial District innovativeness are formulated. To test the hypotheses, an econometric analysis on 32 Italian District Provinces is applied. Empirical results show that knowledge heterogeneity matter for increasing the innovative capability of industrial districts. |
| Keywords: | Industrial district; innovative capability; knowledge heterogeneity |
| JEL: | F14 O32 R12 |
| Date: | 2013–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_035&r=cwa |