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on European Economics |
| By: | Harald Oberhofer (University of Salzburg) |
| Abstract: | Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single Market program the EU 27 member countries share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behaviour at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of multinational enterprises constitute the most stable firm cohort throughout the observed business cycle. |
| Keywords: | Firm growth, industry dynamics, domestic business cycle, European integration, multinational enterprises, two-part model |
| Date: | 2010–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2010:i:377&r=eec |
| By: | Ligthart, J.E.; Werner, S.E.V. (Tilburg University, Center for Economic Research) |
| Abstract: | We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our approach uses a compositional multinomial logit model, in which currency choice depends on the characteristics of both the currency and the country. We use unique quarterly panel data of Norwegian imports from OECD countries for the 1996{2006 period. One of the key findings is that the eurozone countries in trade with Norway have substantially increased their share of home currency invoicing after the introduction of the euro. In addition, the euro as a vehicle currency has overtaken the role of the US dollar in Norwegian imports. The econometric analysis shows a significant effect of euro introduction above and beyond the determinants of currency invoicing (i.e., ination rate, ination volatility, foreign exchange market size, and product composition). However, the rise in producer currency invoicing by eurozone countries is primarily caused by a drop in ination volatility. |
| Keywords: | euro;invoicing currency;exchange rate risk;ination;ination risk;vehicle currencies;compositional multinomial logit |
| JEL: | F14 F15 F31 F33 F36 E31 C25 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:201048&r=eec |
| By: | Michael Sturm (European Central Bank, Directorate General International and European Relations, Kaiserstrasse 29, 60311 Frankfurt am Main); Nicolas Sauter (European Central Bank, Directorate General International and European Relations, Kaiserstrasse 29, 60311 Frankfurt am Main) |
| Abstract: | This paper reviews the impact of the global financial turmoil and the subsequent recession on the economies of southern and eastern Mediterranean countries. The major effects on the economies of this region have come through transmission channels associated with the real economy, i.e. the global recession. These are, in particular, declines in exports, oil revenues, tourism receipts, remittances and foreign direct investment (FDI) inflows, with the drop in exports so far appearing to have had the strongest impact. As a result, real GDP growth has weakened in the wake of the global crisis. However, the weakening of economic activity in the Mediterranean region has been less pronounced than in advanced economies and most other emerging market regions. The main reason for this is that the direct impact of the global financial turmoil on banking sectors and financial markets in Mediterranean countries has been relatively limited. This is mainly due to (i) their lack of exposure to US mortgage-related assets that turned “toxic”, a feature the region shares with other emerging markets, and (ii) the limited financial development of many countries in the region and their limited integration into global financial markets, a feature that distinguishes the region from other emerging markets and, in particular, from the euro area’s neighbours to the east. Notwithstanding the relative resilience of southern and eastern Mediterranean countries in the wake of the global crisis, the region faces significant challenges. In particular, many countries need significantly higher growth rates to address the employment challenge posed as a consequence of demographic developments. JEL Classification: R11, E60, G21 |
| Keywords: | Global economic crisis, Mediterranean countries, financial sector, international spillovers |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:20100118&r=eec |
| By: | Brown, M.; Ongena, S.; Popov, A.; Yesin, P. (Tilburg University, Center for Economic Research) |
| Abstract: | Based on survey data covering 8,387 firms in 20 countries we compare credit demand and credit supply for firms in Eastern Europe to those for firms in selected Western European countries. |
| Keywords: | Credit Constraints;Banking sector;Transition economies |
| JEL: | G21 G30 F34 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:201050&r=eec |
| By: | Lilo Locher |
| Abstract: | Using uncertainty about the future returns to migration, the option value theory of migration can explain low migration rates in spite of huge wage differences. This paper presents the theory in a simple two-period framework and uses ethnic Germans in the CIS to find empirical support for it. Since July 1990, ethnic German immigration from Eastern Europe and the CIS is restricted by means of a protracted application mechanism. In our data on ethnic Germans in Russia and Kazakhstan in the 1990s, we use information on the stage of the application process, migration intentions and ethnicity to construct close proxies for the option value of postponing migration and for migration costs. The link between the two is shown to be as theory predicts. [IZA Discussion Paper No. 405] |
| Keywords: | Migration, option theory, ethnic Germans |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2763&r=eec |
| By: | Bottazzi, L.; Da Rin, M.; Hellmann, T. (Tilburg University, Center for Economic Research) |
| Abstract: | We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment decisions. This holds even after controlling for investor and company fixed effects, geographic distance, information and transaction costs. The national identity of venture capital firms’ individual partners further contributes to the effect of trust. Education and work experience reduce the effect of trust but do not eliminate it. We also examine the relationship between trust and sophisticated contracts involving contingent control rights and find that, even after controlling for endogeneity, they are complements, not substitutes. |
| Keywords: | Venture Capital;Social Capital;Trust;Financial Contracts;Corporate Governance. |
| JEL: | G24 G34 K22 M13 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:201049&r=eec |
| By: | Matei, Lucica; Matei, Ani |
| Abstract: | In the current paper, we aim to formulate the objectives, contents and syllabus of a discipline that will approach the complex issue of evaluating the economic and social impact of public administration Europeanization in a methodological and educational way. The research topic is new on one hand, determined by the behaviour novelty of EU against the Member States, which have a founding status, or new EU adhering countries (2007) and vice versa the behaviour of Member States towards the EU in different development stages, and on the other hand, the topic has outgrown the full age and started the biological maturity process with every EU enlargement stage. The general directions and mechanisms supporting the above activity will be as follows: - Multidisciplinary approach of the Europeanization processes, describing the systemic mechanisms of development, adjustment and self-adjustment, specific for the convergence and dynamics of national public administrations. - Evaluating the economic and social impact of national public administrations Europeanization by substantiating statistic models and relevant socio-economic indicators. - Making operational a theoretical and empirical framework by means of significant analyses, methodologies and case studies for the topic approached. We aim to evaluate the economic and social impact through: - Quantitative and qualitative indicators in view to determine the degree of administrative and economic convergence. - Framework models of organisational analysis for Europeanization of representative institutions in national, central or local governments. - Socio-economic indicators and models aimed at determining the costs of bureaucracy and correlating their trends with the economic performance. - Statistic indicators concerning the influence of the meritocratic criteria in the civil service development on the economic growth and public sector performance. |
| Keywords: | Europeanization;Public Administration;Economic and Social Impact |
| JEL: | D73 C50 I28 A14 |
| Date: | 2010–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24267&r=eec |