nep-tra New Economics Papers
on Transition Economics
Issue of 2006‒01‒29
nineteen papers chosen by
Tono Sanchez
Universitat de Valencia

  1. Searching for the accounting features of capitalism: an illustration with the economic transition process in China By Chiapello, Eve; Ding, Yuan
  2. Economic Effects of Free Trade between the EU and Russia By Pekka Sulamaa; Mika Widgrén
  3. Russian Infrastructure Clusters : A Preliminary Study By Sergey Boltramovich; Vladislav Yurkovsky; Pavel Filippov; Hannu Hernesniemi
  4. Russian Regions and Their Foreign Trade By Sergey Sutyrin; Vladimir Sherov
  5. Following the yellow brick road? The Euro, the Czech Republic, Hungary and Poland By Jesús Rodríguez López; José Luis Torres Chacón
  6. Kiina maailmantaloudessa - Globaalitalouden kasvu ja teollisen työnjaon muutos By Paavo Suni
  7. Extracting Leading Indicators of Bank Fragility from Market Prices – Estonia Focus By Yu-Fu Chen; Michael Funke; Kadri Männasoo
  8. The Innovation System and Business Environment of Northwest Russia By Sergey Boltramovich; Pavel Filippov; Hannu Hernesniemi
  9. A New International Division of Labour in Europe: Outsourcing and Offshoring to Eastern Europe By Marin, Dalia
  10. Poland´s Enterprise Environment - A Polish View By Ewa Balcerowicz
  11. Fiscal federalism in big developing countries: China and India By Fraschini, Angela
  12. Puolan liiketoimintaympäristö ja suomalaisten yritysten kokemukset By Ville Kaitila; Maarit Lindström; Ewa Balcerowicz
  13. Itäisen Suomen ja venäjän liiketaloudellisen yhteistyön mahdollisuudet By Hannu Hernesniemi; Kati Järvi; Jari Jumpponen; Grigori Dudarev; Tauno Tiusanen
  14. ESCO Companies in Northwest Russia, Legal Issues and Organizational Schemes By Dmitry Efremov; Danil Smirnyagin; Olga Valerianova; Hannu Hernesniemi
  15. Price Setting Behaviour: Micro Evidence on Slovakia By Coricelli, Fabrizio; Horváth, Roman
  16. Integration and Conditional Convergence in the Enlarged EU Area By Ville Kaitila
  17. EU Outsourcing to the East, Governance and Innovation Systems in the Baltic Countries - A Three-Stage Approach By Jari Hyvärinen
  18. Speed of Convergence and Relocation: New EU Member Countries Catching up with the Old By Kari E.O. Alho; Ville Kaitila; Mika Widgrén
  19. What is an "exemplary workplace"? Evidence from Cuba By Cunha, Miguel Pina e; Cunha, Rita Campos e; Rego, Arménio

  1. By: Chiapello, Eve; Ding, Yuan
    Abstract: In this paper, the authors show that capitalism and double-entry bookkeeping are not indissociably interconnected as Sombart argued in his book in 1916. Indeed, the double-entry bookkeeping accounting system was also adopted by anti-capitalist countries where a new economic system was set up. A study of how accounting has changed with the economic transition in China helps us identify those "accounting features" required for a capitalist economy that clearly differ from those needed for the planned and centralized economy.
    Keywords: capitalism; communism; accounting; China; reform; transitional economy
    JEL: B24 M41 P16
    Date: 2005–01–01
  2. By: Pekka Sulamaa; Mika Widgrén
    Keywords: EU, Russia, free trade, integration
    JEL: F15 F17
    Date: 2005–03–30
  3. By: Sergey Boltramovich; Vladislav Yurkovsky; Pavel Filippov; Hannu Hernesniemi
    Keywords: Russia, infrastructure, cluster, energy, ICT, logistics, construction
    Date: 2005–04–04
  4. By: Sergey Sutyrin; Vladimir Sherov
    Keywords: Russia, regional diversity, import intensity, custom, price level, incomes and expenditures per capita
    Date: 2005–12–20
  5. By: Jesús Rodríguez López (Universidad Pablo de Olavide de Sevilla); José Luis Torres Chacón (Universidad de Málaga)
    Abstract: This paper uses a combination of VAR and bootstrapping techniques to analyze whether the exchange rates of some New Member States of the EU have been used as output stabilizers (those of the Czech Republic, Hungary and Poland), during 1993-2004. This question is important because it provides prior insights on the costs and benefits from entering the European Monetary Union (EMU). For these countries, joining the EMU is not optional but mandatory, although there is not a definite deadline. Thereby, if the exchange rate works as a shock absorber, monetary independence could be retained for a longer period. Our main finding is that the exchange rate could be a stabilizing tool in Poland and the Czech Republic, although in Hungary it appears as a propagator of shocks. Also, in these three countries, demand and monetary shocks account for most of the variability in both nominal and real exchange rates.
    Keywords: EMU, exchange rate, Structural VAR, stationary bootstraps
    JEL: C31 F31 F33
    Date: 2006
  6. By: Paavo Suni
    Keywords: international division of labour, China, global economy
    Date: 2004–08–31
  7. By: Yu-Fu Chen; Michael Funke; Kadri Männasoo
    Abstract: Banking reform has proved to be one of the most problematic elements of economic transition in central and Eastern Europe. Therefore the paper considers the development of the Estonian banking sector and derives individual banks´ fragility scores during transition. To this end we use option-based tools and equity prices to estimate distance-to-default measures of banks´ distress probabilities. Overall, the results suggest that market indicators are moderately useful for anticipating future financial distress and rating changes in transition economies. The implication for an effective supervisory framework is to use a plurality of risk scores when assessing bank vulnerability.
    Keywords: banking, financial stability, bank fragility, options, Estonia
    JEL: E44 E58 G21
    Date: 2006
  8. By: Sergey Boltramovich; Pavel Filippov; Hannu Hernesniemi
    Keywords: Northwest Russia, innovation system, business environment, international cooperation
    Date: 2004–12–08
  9. By: Marin, Dalia
    Abstract: Europe is reorganizing its international value chain. I document these changes in Europe’s international organization of production with new survey data of Austrian and German firms investing in Eastern Europe. I show estimates of the share of intra-firm trade between Austria and Germany on the one hand and Eastern Europe on the other. Furthermore, I present empirical evidence of the drivers of the new division of labour in Europe. I find among other things that falling trade costs and falling corruption levels as well as improvements in the contracting environment in Eastern Europe are affecting the level of intra-firm imports from Eastern Europe. They are also favouring outsourcing over offshoring. Low organizational costs of hierarchies and large costs of hold-up (when there are no alternative investors in Old Europe or no alternative suppliers in Eastern Europe) are favouring offshoring over outsourcing. Tax holidays granted by host countries in Eastern Europe also mildly affect the organizational choice.
    Keywords: comparative advantage in Eastern Europe; contract enforcement; empirical test of the theory of the firm; intra-firm trade; the empirics of global sourcing
    JEL: D23 D51 F11 L14 O11
    Date: 2006–01
  10. By: Ewa Balcerowicz
    Abstract: The paper briefly presents environment for business in Poland as of the end of the year 2005. A few comments, however, on its evolution in the course of the transition period are also made. The paper broaches administrative, legal and financial requirements to start and run business activities by both natural and legal persons. In addition, it presents government support schemes for investors. A brief description of the scope of the grey economy and corruption completes the picture of the business environment. The topic has been approached from the foreign investor’s perspective. Although foreign in-vestors are subject to the same laws as domestic (Polish) ones, in a limited number of cases they are treated differently than the latter. These cases, and specifically land purchase and employment of foreign citizens, are reviewed.
    Keywords: business climate, industrial policy, state aid, grey economy, Poland
    Date: 2006–01–10
  11. By: Fraschini, Angela
    Abstract: In South and East Asian countries a highly centralized government prevails, although recently some trends are moving toward a greater degree of decentralization. Also the two giants China and India, which cannot rely on a merely centralized Government, have experienced a greater or lesser degree of fiscal unionism. As to China the local government system provides four levels: provincial level; city level; county level; township level. Intergovernmental fiscal relations were revamped by the 1994 reform that established a new tax sharing system and gave local governments more control over the administration of local taxes but no significant degree of tax autonomy and no substantial expenditure assignments. The local financial revenue mainly derives from local taxes, shared taxes, and nontax revenue. As to India, the federal system is quite complex. The center-states relations are envisaged in the Constitution also for the financial aspects: two constitutional amendments adopted in 1992 made India one of the most politically decentralized countries among developing ones. However, the implementation of the decentralization program is still lagging: till now India seems to have considered decentralization mainly in terms of the local election system, without the transfer of all functions provided for devolution to local bodies. Only India set up a different system of local bodies in rural and urban areas with different expenditure responsibilities and financing powers. On the contrary, China has a unitary fiscal system. In India it is necessary to redesign the transfer system to improve accountability, incentives and equity, whereas in China, the fiscal revenue sharing schemes limit intergovernmental budget transfers. Finally, the rule of hard budget constraint in China is faced by all levels of government, while in India sub-national governments face soft budget constraint.
    Date: 2006–01
  12. By: Ville Kaitila; Maarit Lindström; Ewa Balcerowicz
    Keywords: Poland, business, internationalisation, FDI, foreign trade
    Date: 2005–11–10
  13. By: Hannu Hernesniemi; Kati Järvi; Jari Jumpponen; Grigori Dudarev; Tauno Tiusanen
    Keywords: Eastern Finland, Northwest Russia, economic cooperation, over-the-border networking
    Date: 2005–04–07
  14. By: Dmitry Efremov; Danil Smirnyagin; Olga Valerianova; Hannu Hernesniemi
    Date: 2004–05–31
  15. By: Coricelli, Fabrizio; Horváth, Roman
    Abstract: The paper provides an empirical analysis of price setting behaviour in Slovakia, using large micro-level dataset covering about 57% of Slovak CPI for the period 1997-2001. The novelty of the paper is the analysis of a country characterized by nearly double-digit inflation and undergoing massive changes in market structure during the process of transition and accession to the EU. Several empirical findings stand out. Similarly to results on advanced market economies, we find that price changes are infrequent and sizeable. Moreover, the relationship between frequency and size of price changes is highly non-linear. Product-specific inflation is typically highly persistent. We find that market structure is an important determinant of pricing behaviour. The dispersion of prices is higher while persistence is lower in the non-tradable sectors, suggesting that higher competition in goods markets is not conducive to lower persistence. An important implication is that increasing market competition brought about by entry in the EU will not necessarily lead to lower persistence. By contrast, the increasing share of services in consumption will reduce persistence. Our results, together with the finding that the frequency of price changes depends negatively on the price dispersion and positively on the individual inflation, seems consistent with predictions of Calvo’s staggered price model.
    Keywords: inflation; inflation persistence; price dispersion; price stickiness; staggered price models
    JEL: D40 E31
    Date: 2006–01
  16. By: Ville Kaitila
    Keywords: EU, enlargement, economic integration, economic growth, conditional convergence
    Date: 2004–10–07
  17. By: Jari Hyvärinen
    Keywords: outsourcing, innovation system, institutions, governance, EU enlargement
    Date: 2004–10–05
  18. By: Kari E.O. Alho; Ville Kaitila; Mika Widgrén
    Keywords: convergence, new member countries, EU-15
    Date: 2004–12–31
  19. By: Cunha, Miguel Pina e; Cunha, Rita Campos e; Rego, Arménio
    Abstract: Management researchers and practitioners have developed a marked interest for the notion of “good companies to work for”, “exemplary workplaces”, “meaningful work”, “virtuous organization”, “truly healthy organizations” or “authentizotic organizations”. We complement the previous studies, conducted in the context of capitalistic economies, with an analysis of the representation of the “exemplary organization” in the context of a communist country, Cuba. An inductive study with 39 managers suggests that some elements of the exemplary workplace profile are heavily influenced by the local conditions (e.g., transportation system), whereas others may be viewed as probably general (social contribution). We also conclude that the balance between material conditions and social issues is a major determinant of how people evaluate the “exemplarity” of their organization.
    Keywords: exemplary workplaces; meaning at work; Cuba
    Date: 2005

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