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on Transition Economics |
| By: | Aristovnik, Aleksander |
| Abstract: | The article investigates the main factors of current account deficits in order to assess the potential excessiveness of current account deficits in selected countries of Eastern Europe and former Soviet Union. According to the simulated benchmark calculated on the basis of selected determinants (in period 1992-2003), the results confirm that the actual current account balances are generally close to their estimated levels in the 2000-2003 period in the transition region. This notion is in line with the intertemporal approach to the current account balance, suggesting that higher external deficits are a natural outcome when permanent domestic output exceeds the current one and when current investments and government consumption exceed their permanent levels. Hence, the results suggest that most countries in Eastern Europe and former Soviet Union are justified in running relatively high current account deficits. |
| Keywords: | transition countries; current account deficits; excessiveness; determinants; dynamic panel data |
| JEL: | C33 F32 |
| Date: | 2006–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:483&r=tra |
| By: | Feridun, Mete |
| Abstract: | The aim of this paper is to test the German dominance hypothesis (GDH) in the context of Eastern Enlargement of the EU based on the hitherto unexamined former Eastern Bloc countries of Slovakia and Czech Republic using macroeconomic data spanning the period between 1991 and 2004. Cointegration analysis and a vector error correction mechanism validate the GDH. This finding raises the question of what drives these linkages and causes them to register these characteristics. While one could make the case that the Treaty of Maastricht may have caused some form of macroeconomic convergence and thus cointegration, it could also well be argued that, given our country sample and the fact that our data refers to the interbank market, these linkages may be more the result of changes in the European banking industry and financial markets as the latter prepared for the adoption of the Euro and responded to the harmonization of European banking and financial market regulations via the EU Banking Directives. |
| Keywords: | German dominance hypothesis; integration; vector error correction mechanism |
| JEL: | C00 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:742&r=tra |
| By: | Tattara, Giuseppe; De Giusti, Giovanna; Constantin, Florentina |
| Abstract: | In manufacturing industry in Italy outsourcing abroad is becoming increasingly important and Veneto firms are on the forefront. This study presents the results of a direct survey conducted on 24 firms, both in Veneto and in Romania. The article examines the participation of Veneto firms in the global value chains and discusses their different organization. Shoe firms, very labour intensive, use mainly subcontracting aiming at reducing the cost of labour. In the furniture sector the main aim is the control the wood supply, and this requires direct investments abroad. In the air-conditioning and refrigerating sector, firms are more interested in the control of new markets and in impeding the development of local competition, and this is obtained through local producing (and assembling) and some limited subcontracting. |
| Keywords: | Global value Chains; Veneto; Romania; Industrial Sectors: Footwear; Furniture; Refrigeration and Air Conditioning. |
| JEL: | L68 L67 L1 L64 F23 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:754&r=tra |