|
on Transition Economics |
| By: | Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw); Piero Esposito (University of Rome "La Sapienza") |
| Abstract: | In this paper we study the effects of high-tech capital, foreign direct investment flows and outsourcing on demand for labour differentiated by educational attainment levels in the manufacturing industries for two groups of countries over the period 1995-2004. These two groups of countries comprise Western and Eastern European countries respectively which are assumed to be differently affected by the European integration process. Using detailed trade data as a basis for measuring outsourcing we further distinguish the effects of trade and outsourcing on relative wages by different groups of partner countries. This allows to study the effects of 'inward' outsourcing and foreign direct investment flows to Central and Eastern European countries (which became quite important in this time) in the Western European countries and - conversely - to study the effects of 'outward' outsourcing and the increase in inward FDI stocks in the Central and Eastern European countries separately. |
| Keywords: | high-tech capital, outsourcing, foreign direct investment, demand for skills |
| JEL: | F15 F16 C23 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:51&r=tra |
| By: | Demirguc-Kunt, Asli; Klapper, Leora F.; Panos, Georgios A. |
| Abstract: | The authors examine the factors affecting the transition to self-employment in Bosnia and Herzegovina, using the World Bank Living Standard Measurement Survey panel household survey for the years 2001-2004. In the beginning of the sample, the country changed its legal framework, with the primary aim to promote labor market flexibility and to encourage entrepreneurial activity. The analysis identifies individuals that switched to self-employment (employers and own account) during the sample period and the viability of this transition, in terms of business survival for more than one year. The results suggest an important role for financing constraints. Specifically, wealthier households are more likely to become entrepreneurs and survive in self-employment. After controlling for household wealth, having an existing bank relationship increases the likelihood of starting a business with hired employees and increases the chances of survival for the new entrepreneur. By contrast, overseas - and in some cases domestic - remittances decrease the likelihood of becoming an entrepreneur. |
| Keywords: | Access to Finance,Labor Markets,,Banks&Banking Reform,Labor Policies |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4935&r=tra |
| By: | Aleksandra Zdzienicka-Durand (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines) |
| Abstract: | In this work, we try to analyze the recent credit development in 11 Central and Eastern European countries and estimate the credit-to-GDP ratio equilibrium level using filtering methods and dynamic panel estimations. Our estimation findings corroborate previous fears about the rapid credit growth in the CEECs. Indeed, in many cases the credit expansion exceeds the level justified by their fundamentals or financial development. Under normal conditions, this rapid growth and even ''overshooting'' of banking credit could be considered as an adjustment to its long-term equilibrium level. However, in the actual crisis situation, this excessive credit growth can reinforce other existing disequilibria and lead to an increase in the financial vulnerability of these countries. |
| Keywords: | Bank Credit Growth; Dynamic Panel; CEECs |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00384566_v1&r=tra |
| By: | Vernikov, Andrei |
| Abstract: | This paper deals with the evolution of corporate governance institutions that were imported into Russia in the 1990s. We use empirical evidence from firms, mainly in the banking industry, to test theoretical assumptions. Study of objective interests of various stakeholders prompts a hypo-thesis as to why initial rejection of new institutions of corporate governance in 1990s gave way to their embrace by company owners. Foreign investors and lenders can now find in Russia all the familiar forms of corporate governance such as boards of directors, independent non-executive directors, corporate secretaries, fiduciary responsibility, external audit, information disclosure, etc. However, the substance behind the façade of those institutional forms can be strikingly different from nominal. The local contents of Western-looking forms of corporate governance is pre-determined by high concentration of corporate ownership and control in the hands of blockholders existing in every major company and bank, ownership still inseparable from the management function, hostile institutional environment with weak defense of property rights, as well as by cultural traditions and the intrinsic features of the ‘Russian model of governance’. We argue that in Russia imported institutions tend to mutate, i.e. to work differently than in the eco-nomic systems of a different type from which they were borrowed. As new institutions of corpo-rate governance are not upheld by the Russian market discipline, their viability is currently un-dermined by the loss of global investors’ interest towards emerging market companies. |
| Keywords: | corporate governance; institutions; Russia; mutation; banks |
| JEL: | K22 G38 G34 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15379&r=tra |
| By: | Tyrowicz, Joanna; Wojcik, Piotr |
| Abstract: | This paper analyzes convergence of unemployment rates in Poland at NUTS4 level by testing nonlinear convergence, applying the modified KSS-CHLL for each pair of territorial units. The results suggest that actually the convergence is a rare phenomenon and occurs only in 1916 cases out of potential over 70 000 combinations. This paper inquires what systematic reasons contribute to this phenomenon. There are some circumstances under which unemployment convergence should be more awaited than in the others. These include sharing a higher level territorial authority, experiencing similar labour market hardship or sharing the same structural characteristics. For each of these three criteria we analyse the frequency of the dierential nonstationarity within groups (as evidence of convergence) and across groups (as evidence of "catching up"). |
| Keywords: | nonlinear convergence; stochastic convergence; unemployment; transition; Poland |
| JEL: | R58 E24 R23 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15384&r=tra |