nep-tra New Economics Papers
on Transition Economics
Issue of 2006‒05‒20
six papers chosen by
Tono Sanchez
Universitat de Valencia

  1. Ideological Reform and Political Legitimacy in China: Challenges in the Post-Jiang Era By Heike Holbig
  2. Economic Returns to Communist Party Membership: Evidence from Urban Chinese Twins By Hongbin Li; Pak Wai Liu; Junsen Zhang; Ning Ma
  3. Universal Dynamic Complexity as the Basis for Theoretic Ecology and Unified Civilisation Transition to Creative Global Sustainability By Andrei Kirilyuk
  4. Where is the Cuban economy heading ?. By Rémy Herrera
  5. Myths and Maths: Macroeconomic Effects of Fiscal Adjustments in Hungary By Ágnes Horváth; Zoltán M. Jakab; Gábor P. Kiss; Balázs Párkányi
  6. A Farm in Kumsangir of Tajikistan: A Perspective of Water/land Use along Pyandzh River By Kristina Toderich; Tsuneo Tsukatani; Munimjon Abdusamatov; Rahmon Rahmatulloev; Rustam Latipov; Timur Khujanazarov

  1. By: Heike Holbig (GIGA Institute of Asian Studies)
    Abstract: As a Socialist country undergoing rapid social and economic transition, China presents a revealing case study on the role of ideology in the process of institutional change. Based on Douglass North’s theory of institutional change and on David Beetham’s theory of political legitimation, this paper argues that recent ideological reforms have been a crucial factor in sustaining the legitimacy of Communist party rule. Ideological change is conceived as a path-dependent process which helps to stabilize the social perception of transition and to frame the party’s modernization achievements. At the same time, the dominant role of ideology makes the Chinese party-state, despite its economic success, more vulnerable to legitimacy crises compared to other authoritarian regimes.
    Keywords: Institutional change, political legitimacy, ideology, Socialism, Communism, China
    Date: 2006–03
  2. By: Hongbin Li (Chinese University of Hong Kong); Pak Wai Liu (Chinese University of Hong Kong); Junsen Zhang (Chinese University of Hong Kong and IZA Bonn); Ning Ma (Johns Hopkins University)
    Abstract: This paper estimates the returns to membership of the Chinese Communist Party using unique twins data we collected from China. Our OLS estimate shows that being a Party member increases earnings by 10%, but the within-twin-pair estimate becomes zero. One interpretation of these results is that the OLS Party premium is due to omitted ability and family background. This interpretation would suggest that Party members fare well not because of their special political status per se, but because of the superior ability that made them Party members. The estimates are also consistent with an alternative interpretation that Party membership not only has its own effect but also has an external effect on the sibling.
    Keywords: twins, communist party membership, China
    JEL: J31 O15 P26
    Date: 2006–05
  3. By: Andrei Kirilyuk (Solid State Theory Department - [Institute of Metal Physics of the National Academy of Sciences of Ukraine])
    Abstract: The recently proposed new, universally applicable, rigorously derived and reality-based concept of dynamic complexity provides a unified basis for the causally complete understanding of any real, multi-component and multi-level system of interacting entities, including the case of earth system and global civilisation development. This crucial extension with respect to other existing notions of complexity is obtained due the unrestricted, universally nonperturbative analysis of arbitrary interaction process leading to the new, rigorously derived concept of dynamically multivalued (redundant) entanglement of interacting components. Any real system with interaction is described as a sequence of autonomously emerging "levels of complexity", where each level includes unceasing, dynamically random change of multiple system configurations, or "realisations", each of them resulting from dynamic entanglement of interaction components coming, generally, from lower complexity levels. Dynamic complexity as such is universally defined as a growing function of the number of those explicitly obtained system realisations (or related rate of their change). Mathematically rigorous, realistic and universal nature of unreduced dynamic complexity determines its unique role as a basis for theoretical ecology. This conclusion is confirmed by several directions of universal complexity application to global change understanding and monitoring. They include the rigorously substantiated necessity of civilisation transition to the superior level of complexity involving new, intrinsically unified and causally complete kind of knowledge (initiated by the "universal science of complexity"), qualitatively new kind of material production, social structure, and infrastructure. We show why that new level of civilisation development is intrinsically "sustainable", i. e. characterised by creative, complexity-increasing interaction between "production" and "natural resources" that replaces current contradiction between them.
    Keywords: dynamic multivaluedness; causal randomness; chaos; self-organisation; dynamic information; dynamic entropy; symmetry of complexity; universal hierarchy of complexity; Unitary System; Harmonical System; complexity-increasing production; sustainability transition; Revolution of Complexity
    Date: 2006–05–10
  4. By: Rémy Herrera (Centre d'Economie de la Sorbonne)
    Abstract: This article is the introduction of an issue (to be published) of the U.S. review International Journal of Political Economy on the Cuban economy, and coordinated by Rémy Herrera. It deals with the progresses, but also with the deficiencies, of the Cuban revolution in the economic field, until the recent de-dollarization. It underlines its economic challenges at the beginning of the XXIst century, as well as its internal forces and its external opportunities facing these challenges.
    Keywords: Development, socialism, revolution, growth, de-dollarization, social expenditure.
    JEL: J43 J71 N36 N40 O10 O13 O54 P16 P51
    Date: 2006–04
  5. By: Ágnes Horváth (Magyar Nemzeti Bank); Zoltán M. Jakab (Magyar Nemzeti Bank); Gábor P. Kiss (Magyar Nemzeti Bank); Balázs Párkányi (Magyar Nemzeti Bank)
    Abstract: In this paper we investigate the possible effects of fiscal tightening in Hungary from two perspectives. First, simulations in an estimated neo-Keynesian model are used to characterise the effects of different scenarios for fiscal consolidations. We show that the composition of fiscal shocks is important for both the economic outcome and monetary policy. These simulations suggest a modest output cost of fiscal consolidation. Then we take a closer look at the non-Keynesian effects and their relevance for Hungary in a qualitative way. In our review of non-Keynesian channels of fiscal adjustments we conclude that expansionary effects are likely to become evident only in the medium or long run, rather than immediately after measures are taken.
    Keywords: Keynesian, non-Keynesian effects, expansionary fiscal adjustment, Monetary policy reactions, Model simulations.
    JEL: E17 E52 E61 E62 E63 E65 H30
    Date: 2006
  6. By: Kristina Toderich (Department of Desert Ecology and Water Resources Research, Samarkand Division of Academy of Sciences of the Republic of Uzbekistan); Tsuneo Tsukatani (Institute of Economic Research, Kyoto University); Munimjon Abdusamatov (Specialized Inspectorate of the State Control on Water Use and Preservation of Water Resources, State Committee for Environmental Protection and Forestry); Rahmon Rahmatulloev (Republican Center for Farm Privatization Support under the Government of the Republic of Tajikistan); Rustam Latipov (Specialized Inspectorate of the State Control on Water Use and Preservation of Water Resources, State Committee for Environmental Protection and Forestry); Timur Khujanazarov (Technical State University)
    Abstract: We carried out an assessment of natural resources use and management along with the on-farm observations and experience gathered through a fieldwork expedition along the riparian basin of Pyandzh River from Tajik side. It is described the natural vegetation irrigation history, technologies, agriculture, crops diversity and farmer development system through this vast area of Khatlon Province of Southwestern Tajikistan. Target area is Kumsangir District and Mumin Farm in the district along Pyandzh River. By performing this survey, we could further examine our preliminary studies on the potentials for agriculture using of Subsurface Drip Irrigation (SDI) technique on the right bank of Pyandzh River. Many of the local farmers, pastoralist communities, and some of the agricultural authorities and governmental leaders were interviewed to help understand the history of their irrigation infrastructures, their concerns on the issue of land use and agricultural activities, and their outlook and desires to implement cost-effective watershed-scale water saving technologies.
    Keywords: natural resources, subsurface drip irrigation (SDI), Pyandzh, Amu Darya, Kumsangir, water quality
    Date: 2006–05

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