nep-tra New Economics Papers
on Transition Economics
Issue of 2011‒11‒14
37 papers chosen by
J. David Brown
Heriot-Watt University

  1. Capital Income and Income Inequality: Evidence from Urban China By Chi, Wei
  2. Regional disparity of labor’s share in China: Evidence and explanation By Chi, Wei; Xiaoye, Qian
  3. Urban-rural interaction and implications for regional planning in China, 1980-2010 By Yuheng Li
  4. Regional distribution of discrimination forms in the labor market in Romania By Dobre Mihaela Hrisanta; Ailenei Dorel; Cristescu Amalia
  5. Ownership Characteristics, Real Exchange Rate Movements and Labor Market Adjustment in China By Risheng Mao; John Whalley
  6. Inequality, growth and public spending in Central, East and Southeast Europe By Mario Holzner
  7. Local Action Groups - a possible solution to the rural problem of Romania By Ailenei Dorel; Mosora Cosmin
  8. Comprehensive Evaluation of Environmental Policy for Water Pollutants and Greenhouse Gases Reduction in Jiaxing city, China By Feng XU; Nan XIANG; Shanshan WANG; Yang LI; Takeshi MIZUNOYA; Yabar HELMUT
  9. How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe By Marina Gruševaja; Toralf Pusch
  10. Importance of Animation Actions in the Operation of Hungarian Local Action Groups By Judit Katona-Kov cs; Chris High; Gusztav Nemes
  11. Attractiveness of the small towns in the Czech Republic By Jiri Jezek
  12. THE ANALYSIS OF THE REGIONAL INNOVATION SYSTEMS – CZECH CASE By Jan Stejskal; Katerina Matatkova
  13. How is Innovation fostered under different Institutional Setup: Comparing the Electronics Cluster in Shenzhen and Dongguan, China By Wenying Fu
  14. Save or borrow – what determines Russian households’ financial strategies? By Semenova, Maria
  15. Adaptation pressures during global decline on system transformation and its spatial consequences in China By Maria Csanadi
  16. Evolution of Regional Disparities in Romania – A Shift-share Analysis By Mihaela-Nona Chilian
  17. EFFECTS OF EMPLOYMENT STRUCTURE CHANGES ON REGIONAL PRODUCTIVITY DISPARITIES IN ROMANIA By Anca Dachin; Raluca Popa
  18. Export, Migration, and Costs of Market Entry: Evidence from Central European Firms By Dieter Pennerstorfer
  19. Analysis of Municipal Election Outcomes in Romania By Dorin Jula; Nicolae-Marius Jula
  20. Development of System Dynamic Model of Latvia’s Economic Integration in the EU By Skribans, Valerijs
  21. Is there a bubble in the Chinese housing market? By Christian Dreger; Yanqun Zhang
  22. STRUCTURAL CHANGES AND CONVERGENCE IN EU AND IN ADRIATIC-BALKANS REGION By Lucian-Liviu Albu
  23. Privatising Bratislava: Small Airport - Big Problem By Tomová, Anna
  24. The SUSTRUS model: a CGE model on regional level for sustainability policies in Russia By Christophe Heyndrickx; Natalia Tourdyeva; Victoria Alexeeva-Talebi
  25. A Multi-Criteria Analysis of Russian International and Interregional Logistics Centers By Rinas Kashbrasiev
  26. Entrepreneurial Developments and Challenges in the Sud Muntenia Region of Romania By Marioara Iordan; Mihaela-Nona Chilian
  27. The impact of poverty on mental health and well-being and the necessity for integrated social policies in Romania By Carmen Beatrice Pauna; Raluca Sfetcu; Marioara Iordan
  28. Leaders and outliers in the race of regions - EU Cohesion Policy in Poland in the light of macroeconomic modelling By Zbigniew Mogila; Janusz Zaleski; Joanna Kudełko
  29. Productivity growth in the Old and New Europe: the role of agglomeration externalities By Raffaele Paci; Emanuela Marrocu; Stefano Usai
  30. The Interaction between Culture and Economy in Vietnam By Uwe Blien
  31. Building long-term relationship with tertiary education graduates as a marketing challenge for a city. By Wawrzyniec Rudolf
  32. Adult Mortality in Russian Rural Areas: Inter-regional Comparisons By Tatiana Blinova
  33. The analysis of convergence process of voivodships’ efficiency in Poland using the DEA metod By Dariusz Wozniak; Piotr Czarnecki; Robert Szarota
  34. THE ANALYSIS OF REGIONAL CLUSTER DEVELOPMENT IN EUROPE AND CROATIA By Alka Obadic; Natasa Kurnoga Zivadinovic
  35. Types of competitiveness of Hungarian regions: agglomeration economies and endogenous regional development By Imre Lengyel
  36. Towns in the regional policy of activation of peripheral areas – choosing problems – the case of northern Poland By Jacek Sołtys
  37. REGIONAL ANALYSES OF THE EDUCATION SYSTEM IN ROMANIA By Adriana Grigorescu

  1. By: Chi, Wei
    Abstract: Using urban household survey data collected by National Bureau of Statistics of China from 1988-2009, this study examines the distribution, composition, and changes of capital income and its contribution to income inequality. The data shows that capital income has increased considerably in past 20 years in urban China. Although the average value of capital income is still relatively low, the dispersion of capital income is significant, and for high-income earners capital income is substantial. Compared to other forms of income, capital income is distributed the most unequally, and its contribution to total income inequality has been growing. This study also examines capital income in China’s western, central, and eastern regions separately, and finds that capital income is highest and contributes the most to income inequality in the eastern region.
    Keywords: capital income; income inequality; regional income gaps; Gini coefficient
    JEL: J3
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34521&r=tra
  2. By: Chi, Wei; Xiaoye, Qian
    Abstract: Despite the “growth miracle” of recent decades, labor’s share, i.e., the share of total labor compensation in GDP, has decreased in China. Labor’s share is an important indicator of the primary distribution of national income, and its fall has drawn significant attention from researchers and policymakers. As China’s many regions have different development levels and economic structures, it is very likely that labor’s share will differ across regions. Thus, it is important to examine the regional disparity of labor’s share. Using Chinese provincial data from 1997 to 2007, we find a significant difference in labor’s share between eastern and western China. Then, we use spatial cross-sectional and panel models to show the significant effect of industrial composition and ownership structure on regional labor shares.
    Keywords: labor’s share; income distribution; regional disparity
    JEL: J24 R11 J30
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34522&r=tra
  3. By: Yuheng Li
    Abstract: Urban-rural interaction in China has evolved a lot due to the economic growth and policy influences in the post-reform era since 1978. This evolution has exerted influences on the urban and rural areas in various aspects of demography, economy and environment. At present, China is on a track of fast economic growth and urbanization development which will definitely shape urban and rural areas at the same time. How will urban-rural interaction in China develop in the future? What are the implications for regional planning? The paper historically reviews and quantitatively assesses urban-rural interaction in China. It finds that urban-rural interaction has increased continuously in the post-reform era. The assessment of this interaction bears some resemblances to the historical evolution. The findings also reveal that the change of urban-rural interaction at the provincial level presents much regional difference in the period of 1980-2010. Besides, regional agglomeration of provinces of same level of urban-rural interaction has also emerged in China. The paper concludes through emphasizing the increase of urban-rural interaction in inland areas so as to decrease the regional inequality in China.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1346&r=tra
  4. By: Dobre Mihaela Hrisanta; Ailenei Dorel; Cristescu Amalia
    Abstract: A highly segmented labor market usually favors a mismatch between supply and demand, significantly limiting the functional flexibility and the resilience of this market to macroeconomic shocks. From this perspective, such a market hampers the transition of an EU member to the euro zone, adversely affecting the quality of integration. The causes of labor market segmentation are related to: imperfect competition between firms, information asymmetry, how workers signal on the labor market, limited mobility of workers across different sectors, etc. Labor market segmentation can be done according to several criteria: type of employment, length of employment, salary level, gender, ethnicity, age, etc. When the labor market segmentation is based on discriminatory attitudes, the propagated effects may adversely affect the economic, social and territorial cohesion status of a country. Being in the process of modernizing the labor market, of adapting the economic and social institutions to the requirements of the acquis communautaire, Romania has significant gaps to recover in relation to more developed countries in EU. Although virulent discrimination does not occur on the Romanian labor market, this phenomenon may delay the process of modernization and effective integration in the single European market. In this article, the authors analyze the main forms of discrimination at the regional level based on the following indicators: the Duncan Index at local level; rate discrimination by sex, nationality, and age; wage gap and occupational segregation by gender. They will also assess the effects of various forms of discrimination on the Romanian labor market flexibility. Keywords: discrimination; wage ; labor market. JEL classification: J01, J15, 16.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1129&r=tra
  5. By: Risheng Mao; John Whalley
    Abstract: This paper uses a firm level multi-industry data set covering 456 Chinese manufacturing sectors to assess the implications of Renminbi (RMB) real exchange rate appreciation for adjustments in employment and wage rates. We stress differences in both industry and firm characteristics within sectors. Our empirical results show that modest (and also larger) RMB real exchange rate appreciation would likely have pronounced effects on both net employment and wage rates. A 10% RMB appreciation would likely cause a net employment decline in Chinese manufacturing industries of between 4.1% and 5.3%, and a wage rate drop of 4% after controlling for other factors. Real exchange rate change effects by industry on net employment and wage rates vary significantly with the ownership characteristics of firms within industries. Employment and wage rates for private enterprises are less responsive to RMB real exchange rate fluctuations than is true for state owned enterprises (SOEs) and foreign invested enterprises (FIEs). This finding is opposite to the widely held belief that the labor market behavior of Chinese SOEs shows stronger labor market rigidities than for private firms. Impacts of exchange rate movements emerge as systematically related to export openness, overall import penetration and profit margins of individual manufacturing industries.
    JEL: F16 F31 J21 J31
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:17565&r=tra
  6. By: Mario Holzner (The Vienna Institute for International Economic Studies)
    Abstract: The article analyses the joint determinants of inequality and growth with a special emphasis on public spending structures in transition. We find especially government expenditures on subsidies to be negatively correlated with both inequality and growth, as more generally government expenditures seem to act counter-cyclically and inequality reducing. Also, there is a mutual benefit of low real interest rates, to both equity and economic development. This hints to the fact that in the late 1990's and early 2000's the European integration process allowed several of the transition economies to aim for the best of both worlds: equity and economic development.
    Keywords: Inequality; Government Expenditures, Economic Growth, Transition
    JEL: D63 H5 O4 P2
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2011-221&r=tra
  7. By: Ailenei Dorel; Mosora Cosmin
    Abstract: Romania has the highest share of EU rural areas (44.9% ), which generates and maintains a long series of regional disparities. Because of these disparities, the economy faces a number of elements that undermine the quality of human and social capital and reduces the potential for growth: precarious social and economic infrastructure, reduced access to markets and thus to goods, a low level of both economic cohesion and living standards, and a difficult access to education and training. During the communist era, a forcefully reduction of the rural share was undertaken through various means, most often destructive . Even the transition to a market economy has failed to improve the situation because, in recent years, the urban-rural migration flows have surpassed the rural-urban flows making the too large rural share problem to block the structural changes needed on one hand to modernize the economy, and on the other hand for the European integration. When analyzing the use structure of work resources we observe even greater differences, especially on account of population employed in agriculture. From this perspective, the authors consider that the program impact of sustaining local action groups, LEADER+, extends beyond the horizon of the National Plan of Rural Development , tending to a medium or even long run, when the rural problem of Romania can be solved. Thus the local action groups can contribute to urban areas revitalization and development, through the promotion of economic activities in adjacent rural areas in a manner similar to Lösch's theory. The authors effectuate a diagnosis of the Romanian rural problem and its negative effects. In this framework the implementation progress of local action groups in Romania will be reviewed by testing the main factors that contributed to the organization of local action groups in certain regions of the country. Key words: local action groups, regional disparities, economic cohesion, structural changes. JEL classification: O18, R11.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1136&r=tra
  8. By: Feng XU; Nan XIANG; Shanshan WANG; Yang LI; Takeshi MIZUNOYA; Yabar HELMUT
    Abstract: Recently, various environmental problems have been generated with the rapid economic development in China. That’s because China currently over-emphasized economic development beyond environmental issues; therefore, now it is important to enforce optimal environmental policies in order to achieve economic development as well as environmental improvement. In this study, we selected Jiaxing city as research area for that the environmental pollution problem has become prominent with economic high growth, and we constructed environmental system model and social economic model to establish the scenarios. Through computer simulation, we can evaluate the efficiency of the comprehensive environmental policies from both environmental preservation and social economic development aspects. While the social-economic model shows the socioeconomic activities which are vital events, fortune and service, such as production, finance and budget; the environmental system model shows the water pollutants and the greenhouse gas movement in the region. The dynamic optimization simulation is accomplished based on this environmental and socio-economic system model. In view of the restriction on water pollutants, greenhouse gas total exhausted amount, and economic activity in the catchment area, the simulation we practiced can provide concrete inner-generating optimal policies which can achieve the best economic and environment improvement with the consideration of policy, regional and timing choice in Jiaxing City, China.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p547&r=tra
  9. By: Marina Gruševaja; Toralf Pusch
    Abstract: Structural Funds are the main instrument of the EU cohesion policy. Their effective use is subject to an ongoing debate in political and scientific circles. European fiscal assistance under this heading should promote economic and social cohesion in the member states of the European Union. Recently, the domestic institutional capacity to absorb, to distribute and to invest Structural Funds effectively has become a crucial determinant of the cohesion process and has attracted attention of the scientific community. The aim of this study is to shed light on the effectiveness of Structural Funds in the countries of the first Central and Eastern European enlargement round in 2004. Using regional data for these countries, we have a look on the impact of several institutional governance variables on the effectiveness of Structural Funds. In the interpretation of results, reference is made to regional economics. Results of the empirical analysis indicate an influence of certain institutional variables on the effectiveness of Structural Funds in the new member states.
    Keywords: EU cohesion policy, Structural Funds, institutional setting, EU new member states
    JEL: R11 P2 O38
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:iwh:dispap:17-11&r=tra
  10. By: Judit Katona-Kov cs (University of Debrecen, Hungary); Chris High (Open University, United Kingdom); Gusztav Nemes (Institute of Economics - Hungarian Academy of Sciences)
    Abstract: The EU LEADER initiative has been running for 20 years and plays an important role in the development of European rural areas, however, in countries joining to the EU after 2004 it is still a relatively new phenomenon. In Hungary, for example, the LEADER+ programme was launched in 2005 with an experimental phase (called a "LEADER type initiative") and has developed to be a fully applied EU programme only in the current programming period. This paper explores the implementation of the LEADER programme in eastern Hungary. The examined Local Action Groups face diverse challenges concerning human, social, physical and financial capital, networks and social learning. The study investigates the opportunities and threats faced by the LAGs, with special regard to institutions, governance and applied initiatives. The roles of the LAGs within the social, economic and cultural context of given areas are examined through Lukesch's (2007) model FOG - forms of governance. The model is a tool to explore the interrelationships local partnership, local needs and local socio-cultural environment. The results of the FOG test show that the prevailing mode of governance in the examined LAGs emphasises animation actions as important elements of operation. Although the importance of animation actions is underlined by the result of the test, their presence between the initiatives is less than it should be. Good examples of animation actions are given: participatory video and a case study of its Hungarian application are introduced. Finally the role of Universities in animation actions is emphasised and closer relation of them with RD networks is called for.
    Keywords: LEADER, Hungary, rural development, social learning, animation actions, policy analysis
    JEL: O21 R58 Q56
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:has:discpr:1138&r=tra
  11. By: Jiri Jezek
    Abstract: The paper deals with attractiveness of small towns (from 3 to 20 thousand inhabitants) in the Czech Republic. It analyses development of the inhabitants of the small towns from the half of the 19th century until nowadays. It deals with their advance change and their role in a settlement system. Attention is also paid to their economic and social transformation after the year 1989 and the paper thinks of their future development. It results not only from the official statistical information (especially from inhabitant statistics), but also from own empirical investigations done in the period 2007 – 2011 within solving the project of the Ministry of regional development of the Czech Republic 'Competitiveness of small towns in the Czech Republic'.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1076&r=tra
  12. By: Jan Stejskal; Katerina Matatkova
    Abstract: Czech Republic does not belong among the leaders, whose economies are characterized by strong focus on innovation, science and research. To make the situation gradually improved, there the strategic documents and concepts must exist and also very specific tools to influence the formulation of the field at certain levels of state. Czech Republic still 10 years create, update and proceed accordingly according to these documents. But more pronounced shift to focus on innovation and their impact on competitiveness is not clear. The paper focuses on the analysis of the strategic framework for supporting regional innovation systems, their components and support for regional actors who are capable of producing innovation and commerce them. Contribution will be based on the current situation in the Czech Republic.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p61&r=tra
  13. By: Wenying Fu
    Abstract: The primary focus of this paper is to provide empirical evidence on how innovation is generated and fostered under different institutional setup. Two different institutional setups which evolve from planned economy to market economy in China during the transition, i.e. top-down and bottom-up institutions to promote industrial development, are discussed in the context of our study area, i.e. Dongguan and Shenzhen in Pearl River Delta, China. Drawing on the firm survey data collected in the electronics industry of Dongguan and Shenzhen, this paper explores the factors that foster the innovation activities respectively under these two different institutional setups. The results shows that the flexible institutions organized from bottom up targeting at attracting process trade, which is dominant in Dongguan, restricts the scope of interaction and learning related to innovation and would probably lock-in the city in low-end production activities if the existing institutional setup cannot be broken up. On the other hand, institutional setup favoring the agglomeration of knowledge-related and knowledge-intensive institutes and ex-ante strategic support organized from top down in Shenzhen economic special zone contributes to the reciprocal and systematic interaction between firms as well as knowledge institutions. Finally, policy implication is further discussed by comparing the territorial innovation system in Europe and America where innovation institutions are mature, concluding that the capacity of public and private institutions should be strengthened to form the stable systematic interaction to foster innovation in the long run.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p736&r=tra
  14. By: Semenova, Maria (BOFIT)
    Abstract: This paper examines what influences Russian households’ decisions to save and borrow. We use the 2008 data from the 17th round of the Russia Longitudinal Monitoring Survey (RLMS-HSE). Our results show that the determinants of saving and borrowing are not only those suggested by economic theory but also include psychological and sociological considerations: smarter respondents, who are satisfied with their lives and inclined to help other people, are more likely to save. Those who enjoy stable or improving financial conditions and/or are satisfied with them are more likely to save and less likely to borrow. Financial literacy, a factor cited by institutional theory as positive for both saving and borrowing from banks, lost its significance at the onset of the financial crisis. Household income, suggested by economic theory as a basis for choosing a financial strategy, was found to have much less influence on savings and to have a positive influence on borrowing, confirming the rationing theory rather than inter-temporal choice theory. Surprisingly, the fear of job loss does not make people save more, contrary to the precautionary motive.
    Keywords: household; Russia; saving; bank loans
    JEL: D14 D91 G21
    Date: 2011–11–04
    URL: http://d.repec.org/n?u=RePEc:hhs:bofitp:2011_028&r=tra
  15. By: Maria Csanadi (Institute of Economics - Hungarian Academy of Sciences)
    Abstract: With the implementation of the approach of the Interactive Party-State model (Csan di, 2006, 2011) the paper demonstrates the possible short and long term consequences of the adaptation pressures exerted by the global crisis on Chinese system transformation. It points to the short term character of the crisis. It reveals the temporary slow-down of transformation as a reaction to adaptation pressures and its reversibility with the waning of the crisis. It describes the sensitivity of government reactions to crisis. It points to government's bias towards the construction industry, state owned and large enterprises with domestic trade orientation. It suggests the dynamizing effect of biased state intervention on manufacturing sector, overwhelmingly composed by small and medium sized privately owned enterprises. It comments the long-term consequences of this mismatch. It also argues that temporary slow-down of economic transformation owing to state interventions preserved party legitimacy. The paper sheds light on the spatial disparities of the impact, the reactions and of their respective consequences.
    Keywords: party-state model, short-term shocks, system transformation, global crisis, migration, economic policy reactions, prefectures, spatial disparities
    JEL: F5 D78 R58 J08 E24
    Date: 2011–07
    URL: http://d.repec.org/n?u=RePEc:has:discpr:1131&r=tra
  16. By: Mihaela-Nona Chilian
    Abstract: The paper aims to assess the evolution of the development disparities (output, employment, overall and by sectors) in the regions and counties of Romania. Using classic and spatial shift-share analysis tools, we investigate the extent to which the existing interregional and, especially, intra-regional and inter-county inequalities can be attributed to different factors, such as industry mix, regional specific factors, and interregional interactions. The results reveal a diverse milieu and offer useful insights both for general and specifically targeted policies in the area of regional development. Keywords: Romanian regions, regional disparities, shift-share analysis, regional development JEL Classification: O18, R11, R12, R15
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p827&r=tra
  17. By: Anca Dachin; Raluca Popa
    Abstract: The sustained economic growth in 2000-2008 in Romania was accompanied by a declining employment rate from 63.6% to 59% in the same period, which improved the overall labor productivity. The unprecedented reduction of labor force participation in some regions was strongly determined by the decline in agricultural employment, negative net migration, as well as increase of social protection. These combined processes were mainly induced by Romania´s integration to the EU allowing higher labor force mobility and by social policy measures. In addition, there are longer lasting structural influences, such as the demographic and educational composition of employment. The paper aims at measuring the cross-regional variation of age structure and education levels in Romania and their contribution to regional differences in productivity compared to the most developed region - Bucharest-Ilfov (NUTS2 level). The differences regarding these structures and their changes in the last decade explain partly the territorial polarization of development, which is expected to increase under the impact of the economic crisis.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1370&r=tra
  18. By: Dieter Pennerstorfer (WIFO)
    Abstract: In this paper I analyse the export behaviour of firms located in different Central European countries (Austria, Hungary, Czech Republic and Slovakia) with respect to migration. Ever since the seminal article by Gould (1994) on immigrant links to their home country and due to empirical research following his contribution, it is a well established result that immigrants from a particular country spur exports to and imports from that destination. Chaney (2008) shows that a decrease in fixed costs of exporting increases the number of exporters (extensive margin), whereas a reduction in variable costs also increases the volume exported by each exporting firm (intensive margin). Empirical contributions using firm-level data focus on various aspects influencing costs of exporting (like spillover effects of nearby firms or financial factors), but leave out the issue of migration. I combine detailed information coming from a questionnaire conducted among 8,300 firms on the export behaviour to different countries with regional data on migration from the European Labour Force Survey (LFS). I find evidence that both the propensity to export and – to a much smaller extent – the volume of sales of exporting firms to a particular destination is higher for firms located in regions with a larger number of immigrants from that country. I conclude that migrants mainly reduce fixed costs of exporting.
    Keywords: Firm-level data, Export destinations, Immigrants, Margins of trade
    Date: 2011–11–04
    URL: http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:405&r=tra
  19. By: Dorin Jula; Nicolae-Marius Jula
    Abstract: In Romania, the 2008 local elections were held based on a new electoral law. The main changes concerned the election of chairpersons of county councils by uninominal voting, shifting of the general and presidential elections and the introduction of a uninominal voting system for parliamentary elections, with a correction of the total number of seats according to the total number of votes obtained by each party on national level. Voting behavior in local elections on 1st June 2008 was primarily determined by political reasons (loyal voters) and was influenced by the effect of the local leaders and the noise produced by ethnic vote. For all parties, prominent leaders drew votes. Inertia in voting behavior (electorate’s fidelity) influenced all parties’ results and the ethnic behavior had a strong effect on nationalist parties. At regional level, the electoral impact of economic variables was marginal.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1256&r=tra
  20. By: Skribans, Valerijs
    Abstract: Joining the European Union big opportunities in the international markets have opened for Latvia. Paper purpose is to investigate influence of international integration processes on development of economy of Latvia. Latvia's incoming in EU increased the amount of received means from structural and cohesion funds, removed the trading barriers, increases foreign investments, reduced unemployment and increased labor migration. In the paper the system dynamics model, which describes integration of the Latvian economy into EU, is developed. In the model international financial flows connected with Latvia and EU; import, its relation to internal producing; and migration processes are considered. Model functioning is measured considering various scenarios of situation development. The developed model can be used not only in the analysis of Latvia’s economic integration in the EU, but on its basis it is possible to create models of regional cohesion in Europe.
    Keywords: Europe; integration; cohesion; economic grow; migration; capital; price; inflation; consumption; output; GDP; unemployment; economic forecasting; system dynamic; simulation
    JEL: F16 E22 O19 E21 F43 F15 F00 F40 E24 E27 E17 O16 F21 F22 E31 E51 O15 F14 F47 O11 C53 F20 C50 F17 E23 J61 E00 F41 E37 E20
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34565&r=tra
  21. By: Christian Dreger; Yanqun Zhang
    Abstract: For many analysts, the Chinese economy is spurred by a bubble in the housing market, probably driven by the fiscal stimulus package and massive credit expansion, with possible adverse effects to the real economy. For example, the stock of loans increased by more than 50 percent since the end of 2008. The government urged banks to increase lending to mitigate the economic slowdown. Home mortgage loans have played a significant role in the development, as they account for one third of the total lending activities. Banks have provided easy credit for housing development, probably without sufficient evaluation of risks. State-owned enterprises may have stimulated the development, as they have access to low cost capital and may believe they are too big to fail. In this paper, the house price development is investigated both at the national and regional level. First, it is investigated whether a bubble exists. Analysis is based on a long run equilibrium between real house prices and demographic and macroeconomic conditions. Using a regional dataset for 35 major Chinese cities, the size of the bubble is estimated relative to the fundamental level implied by the panel cointegrating relationship. Second, the impact of real house prices on CPI inflation and GDP growth is investigated at the national level using an in sample and out of sample framework. The results indicate the presence of a house price bubble. Real house prices are 25 percent above their equilibrium value. The bubble is especially pronounced in the cities of the southeast coastal areas and the special economic zones. While the impact of real house prices on CPI inflation seems to be rather strong, GDP growth may not be heavily affected. Real house prices do not cause GDP growth, and point forecasts of GDP growth are not improved if the house price evolution is taken into account. These findings might reflect a limited exposure of private households expenditures to housing wealth. Therefore, a decline of the bubble could have only modest effects on the course of the real economy.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p261&r=tra
  22. By: Lucian-Liviu Albu
    Abstract: Coming from standard economic growth theory and empirical evidences, we concentrated on the convergence process as a result of structural changes in economy. We investigate the differences among countries in EU in terms of the share in total economy of main sectors. Then, based on the spatial (empirical) distribution of such shares in EU we are proposing a model to estimate a typology of the convergence process in the European area. Taking into account the existing differences among sectors in matter of productivity, there are two versions of the model: considering the share of sectors in total employment and the share of sectors in GDP respectively. Moreover, we developed several modelling schemes that could be useful to improve the strategies oriented to achieve a real convergence in EU and further in Adriatic-Balkans region. In this way, we can obtain simulations from a country or group of countries (European Union, for example) on long term and quantifying the impact of structural changes on the convergence process. Indeed, the actual global crisis seems to influence negatively the convergence process in EU. As a rule, just new adhered countries were more affected by the actual crisis. Today all forecasts are suffering by uncertainty. Thus, further efforts must be allocated to evaluate the negative impact of actual crisis on the convergence process.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p442&r=tra
  23. By: Tomová, Anna
    Abstract: In the paper we describe genezis of decentralisation and corporatisation of airport sector in the Slovak Republic to reveal circumstances influencing expected decision about Bratislava airport privatisation in 2011. Special attention is devoted to unmasking the political umbrella of process in which - as it is known from other privatisation cases worldwide - there is not sufficient space for expert opinions and judgment. We confront various attitudes regarding to Bratislava Airport privatisation. We also explain Bratislava Airport privatisation in light of overall privatisation status of Slovakian airports. In quantitative way we compare Bratislava Airport performance with the main competitor Vienna Airport that is very often seen as the key problem of Bratislava Airport privatisation with regard to overlapping catchment areas of the airports. Comparison of economic performance, as well as airport charges of both airports is made in the paper. The paper does not try to identify the best privatisation arrangement for Bratislava Airport as it is primarily focused on documenting perplexity and intricacy of privatisation of a small airport that could be a big problem and fiscalized matter.In the paper also some considerations are made with regard to some airports competition issues.
    Keywords: airport; privatisation; public-private partnership; spatial competition; Central and Eastern Europe
    JEL: L33 D49
    Date: 2011–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34618&r=tra
  24. By: Christophe Heyndrickx; Natalia Tourdyeva; Victoria Alexeeva-Talebi
    Abstract: The present paper describes the construction and first empirical application of the SUSTRUS model (the name of the model refers to “Sustainable Russiaâ€). This model will be the main result of the same-named EU funded project. The SUSTRUS model belongs to the group of regional CGE models, applied to analyze policies with a strong social, economic and environmental dimension. The SUSTRUS model can be used to assist policy makers in their choice of medium and long-term sustainability policies, for the implementation of the EU strategy for sustainable development in Russia as well as an efficient incorporation of the sustainability goals into the existing Russian policy tools on regional and federal levels. The SUSRUS model is constructed as a regional model on federal level, where regions are linked by interregional trade flows, a federal government level and migration. This paper will relate on the calibration of the database for the model and the addition of innovative elements in the model, necessary to model the link between the environmental, social, economic and international modules. The main data sources for the model are the public databases of Rosstat and the micro-level household data from the Russia Longitudinal Monitoring Survey (RLMS). Calibration of the model database was performed by a flexible cross-entropy minimization sub model and standard applied general equilibrium techniques. The general structure of the model will be discussed, focusing on the innovative features of the model and the link between the environmental and economic modules. The application of the model will be shown by a simulation exercise and a presentation of the main results.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1565&r=tra
  25. By: Rinas Kashbrasiev
    Abstract: The continuous increase of marketization of the production and consumption sectors of the Russian economy requires developing logistics and distribution systems at multiple territorial scales: international, interregional, and local. Territorial organization of logistics centers is becoming an important part of Russian logistics development and increasing economic growth. The purpose of this paper is to empirically determine the optimal location of logistics centers to ensure effective international and interregional trade flows. Using 39 variables in a multi-criteria analysis of the Russian regions, including various geopolitical, economic geographical, macroeconomic, and technological criteria, this paper finds that the level of integration in the Republic of Tatarstan is much higher than the ratings of the other two Volga regions. The conclusion is that the Republic of Tatarstan has significant competitive advantages to construct an international and interregional logistics center on its territory.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p66&r=tra
  26. By: Marioara Iordan; Mihaela-Nona Chilian
    Abstract: Entrepreneurship is crucial for the economic development of a region. Using entropy, cluster and shift-share analysis techniques, the authors present a detailed picture of the entrepreneurial milieu of the Sud Muntenia region of Romania, pointing both towards the presence of an overall development process, and also to inter-county and intra-county sectoral imbalances, evolutionary discrepancies and lack of adequate use of territorial resources. Policy recommendations are proposed to address the future challenges for the balanced development of the Sud Muntenia region of Romania. Keywords: entrepreneurship, territorial development, regional business demography, sectoral structure, regional policy JEL Classification: O18, R11, R12, R30
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p831&r=tra
  27. By: Carmen Beatrice Pauna; Raluca Sfetcu; Marioara Iordan
    Abstract: On almost every account people with mental health problems are among the most excluded groups in society and they consistently identify stigmatisation, discrimination and exclusion as major barriers to health, welfare and quality of life. The links between poverty and ill health are well known. Poverty and illness together make people much more vulnerable and needy at all stages of their lives, and even more so in old age. Mental health is often both a cause and a consequence of poverty, compromised education, vulnerability, difficulty accessing housing, health care and employment, and lack of access to welfare, social security, and community public services. Inequalities between social classes in the incidence of chronic illness and mental illness and in life expectancy are also well documented. The working class poor with health problems are a particularly vulnerable group. Moreover people with mental health problems are more likely to experience physical health problems, which can further compromise the efforts of the individual in an already disadvantaged situation. When the experience of mental illness is the cause or a factor in the experience of exclusion, the effects can be still more damaging. This mutual interaction linking mental health and development can work positively with good mental health facilitating the active and successful involvement of individuals and communities in development, and negatively with poor mental health increasing the risk of descending into a vicious cycle of poverty and adverse social and health outcomes. Designing social policies and interventions - both within and outside the health sector - which strengthen social inclusion, represent a key action recommended by the European Pact for Mental Health and Wellbeing. This paper explores the situation of persons affected by severe mental illness on regional level in Romania. The need for policy development and improvement strategies are also highlighted.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1495&r=tra
  28. By: Zbigniew Mogila; Janusz Zaleski; Joanna Kudełko
    Abstract: Since Poland has benefited from cohesion policy since accession to the EU in 2004, and is currently the largest national beneficiary of EU cohesion policy expenditure in the financial perspective 2007-2013, analysis of the impact of the EU funds in this country seems to be an important part of the overall evaluation of this policy. The outcome is especially interesting at the beginning of the debate on the future of EU cohesion policy the results of which will certainly have an effect on the development of many regions in the EU. In our analysis we concentrate on the three Polish NUTS-2 regions: Mazowieckie- capital region with the overwhelming economic supremacy, Dolnośląskie- one of the leading Polish regions, Świętokrzyskie – representative of the regions lagging behind the Poland’s average in terms of socio-economic development. The main aim of this paper is not simply to compare and contrast the impacts of EU cohesion policy on the above mentioned regions, but also to confront them with the theoretical expectations. The analysis is carried out using such macroeconomic indicators as GDP per capita, employment, labour productivity and it focuses on the period 2004-2020 in order to capture both short- and long-term effects of the EU intervention. Our research draws on the regional HERMIN macroeconomic models of Mazowieckie (HPL5MZ), Dolnośląskie (HPL5DL) and Świętokrzyskie (HPL5SW) which are regionalised versions of the Polish national HERMIN macroeconomic model (HPL5)- part of the Cohesion System of HERMIN Models (CSHM) used by the European Commission. The results of our analysis point to the role of EU cohesion policy in the process of socio-economic convergence both at the national and European level. However, they are presented from a perspective of the three Polish regions characterized by the different levels of socio-economic development in order to show how EU funds affect economic leaders and outliers of the country. On the basis of the conducted analysis several conclusions are drawn with regard to macroeconomic modelling at the regional level which might be used to improve robustness and credibility of the evaluation of EU cohesion policy.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p292&r=tra
  29. By: Raffaele Paci; Emanuela Marrocu; Stefano Usai
    Abstract: The recent history of Europe is characterized by a dual picture showing the Old and New countries in sharp contrast with respect to their industrial specialisation and economic performance. We aim at analyzing the intertwined performance of regions and industries in New and Old European economies by investigating the effects of local agglomeration externalities (mainly specialisation and diversity externalities) on total factor productivity dynamics. We also analyse the potential influence of regional intangible assets such as human and technological capital. The econometric analysis makes use of spatial econometric techniques to take into account the possibility of cross-border externalities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p200&r=tra
  30. By: Uwe Blien
    Abstract: Historically, the Vietnamese state developed in an area along the Red River and within its delta. The need to protect the inhabitants of this land from dangerous floods gave rise to a “hydraulic societyâ€, which was accompanied by a specific culture. One of the features of this culture is an emphasis on formal education, which was “inherited†from a past in which the passing of an examination was a precondition for acquiring a high position in the state. Today, the Vietnamese culture is a supporting factor in the current development process in Vietnam. Rigorous reform steps carried out since 1986 have transformed the Vietnamese socialist economy, which mainly followed the Soviet blueprint, into a market driven economy which is governed by strong private incentives. The culture predominant in this country on the one hand supports the functioning of the new capitalist system, and on the other hand compensates for many of its weaknesses. As a consequence a development process has been generated which has led to high rates of economic growth. However, it is not without systemic risks.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p342&r=tra
  31. By: Wawrzyniec Rudolf
    Abstract: The paper concerns the problem how local authorities should tackle with the problem of outward migration process. The dynamics of population development and migration in Europe and its regions have its influence on territorial cohesion and regional competitiveness. Migration is the process which from macroeconomic point of view has number of attitudes in Europe or in Member States. Unfortunately, when we look at that process from the single city or regional perspective it can have very negative effects into its socio–economic development. Usually the city/region which suffer from outward migration is losing the most valuable workforce – young, creative and tertiary educated graduates. The city/regional authorities should undertake measures aimed at keeping them at place. The best way to do that is stimulating the development of local economy in the long way, but this process, to be successful should be complemented by creative marketing action. The author is presenting the case study of the marketing programme implemented in 2008 in the post industrial city of Łodź, Poland (entitled: The Young Within the City of Łodź). The case study is an example of interesting approach to solve this very vital problem at the local labour market. The article present the complexity of the project, it shows how it correspond with the economic development strategy for the city. The partnership aspect is also undertaken in the context of successful delivering of the programme in the period 2008-2011). The city managers are collaborating with local universities, job agencies, and other partners. The author argue that successful marketing programme should not only concern image creation, but it should be designed for the benefit of the territorial client (in the case study: the current and prospect students in the city of Łodź). The author draw number of conclusions for other local authorities how to face similar difficulties in outward migration at the local labour market
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1221&r=tra
  32. By: Tatiana Blinova
    Abstract: Regions of the Russian Federation draw up purpose-oriented programs aiming at improving the health and reducing the mortality among the population. The task of decreasing the mortality among the rural population, especially overcoming the phenomenon of “excess mor-tality†among the people of the able-bodied age, is considered a priority in the federal and re-gional programs for social-economic development for the nearest future. In view of this, the task of this research is to develop taxonomy of regions of RF according to the structure of mortality among their rural population, analyze the inter-regional comparisons and regression equations that include demographic, economic, social and ecological explanatory variables for different types of the regions. The paper presents a comparative analysis of mortality structure dynamics for urban and rural population of RF. The inter-regional comparisons of the Russian rural mortality structure are made. The inter-regional differentiation in terms of the level of mortality of the population and the differences between the city and the countryside are substantiated by using a set of causes and factors of both demographic and social-economic nature. For the purpose of making a deeper analysis of the territorial aspects of rural mortality, the rural territories are classified according to the structure of mortality from basic causes of death. The description of the territorial features of mortality determinants for the regions of each typological group is given. The structure of the classification groups and average parameter values are presented in the form of cartograms and tables. The regression equations including the demographic, economic, social and ecological explanatory variables are considered for both the entire RF and different types of its regions. The models derived are described from the viewpoint of significance of the influence the chosen parameters produce on the level of mortality among the rural population belonging to each classified group of the regions. The territorial features of causes of death identified in the course of the research should be taken into account when substantiating regional programs aiming to de-crease the rural mortality and increase the life expectancy, as well as when drawing up and implementing rural social development programs.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p588&r=tra
  33. By: Dariusz Wozniak; Piotr Czarnecki; Robert Szarota
    Abstract: Since 1999 – when the new administrative division in Poland was introduced – it has been possible to measure and compare standard of living between Polish and other European regions (NUTS II). In 2004 Poland has joined the European Union. Since that year voivodships have become main beneficiaries of the EU funds. The essential part of that aid is related to the EU cohesion policy (convergence objective). According to the fifth cohesion report “cohesion policy has made a significant contribution to spreading growth and prosperity across the Union, while reducing economic, social and territorial disparitiesâ€. However, the differences in standard of living still remains significant between countries as well as between regions within one country. In many researches the level of welfare is measured using “classic†indicators (GDP per capita, GNI per capita, unemployment rate, etc.). In this paper the authors focus on the regional economies’ efficiency. The efficiency will be measured using the Data Envelopment Analysis. Due to the method used, the efficiency will be measured as relative in nature, i.e. will be compared between voivodships within the period of research. The goal of the paper is to analyze variety of relative voivodships’ efficiency in order to answer the question if the dispersion in efficiency is increasing or decreasing over time.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p925&r=tra
  34. By: Alka Obadic; Natasa Kurnoga Zivadinovic
    Abstract: This paper investigates the main characteristics of regional clusters in EU 27 and Croatia. The special interest is focused on the economic performance of regional clusters in the Croatian economy. The main research question is: what characterises regional clusters in EU 27 and Croatia, and what are the main tendencies in cluster development? The cluster survey in this paper is focused on (i) the size and nature of the cluster, (ii) and which industrial activities in the clusters are performed. The purpose of this research is to analyse the importance of clusters and their influence on employment growth. The analysis is based on the theoretical framework of the cluster development and experiences in some old and new EU countries. The research shows that clusters in EU 27 and Croatia differ in many dimensions: the point they arise, the type of products and services they produce, their stage of development, and the business environment that surrounds them. The analysis of European regional clusters shows that most of European clusters are rather young. A large majority of them were created after 1970 and the development of regional clusters in Croatia begun even later. Namely, expansion of Croatian regional clusters mainly started after year 2005. The innovative activity of European clusters is relatively concentrated in few areas in Europe (West Germany and most regions of Austria, the North and East of France, the South-east part of United Kingdom, the Netherlands and in some Scandinavian countries, mostly in Sweden). Our research selected the most dominated clusters in EU-27 and Croatia: the agricultural products cluster, the construction cluster, the IT cluster, the tourism and hospitality cluster and the transportation and logistics cluster. The investigation confirms that in the agricultural products cluster the highest number of employees has the region of the Mediterranean Spain, and in the construction cluster, the IT cluster, the tourism and hospitality cluster and the transportation and logistics cluster has Italy. Majority of clusters in Croatia function in manufacturing and agriculture sector, have more than 500 employees (40% of all), mainly are financed by membership (68%), and produce for Croatian market (72%).
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1708&r=tra
  35. By: Imre Lengyel
    Abstract: Nowadays, more and more scholars of regional science are interested in the role of agglomeration economies in the knowledge-based economy. This issue can be dealt with from different points of view: the competitive type of functional or nodal regions and one has to examine the factors influencing regional competitiveness. To improve competitiveness of regions, different economic development programmes must be applied, which means that the improvement of competitiveness requires different strategies based on the different types of regions. In this paper we outline our analytical framework: the pyramid model of regional competitiveness and the UFO-model of cluster-based regional economic development. After introducing, we are going to investigate into the competitiveness of Hungarian microregions (LAU1). Our statistical analysis to underline the classification of microregions by competitiveness types is based on a complex methodology of multi-variable data analysis. For the investigation of agglomeration economies in these different types of microregions we apply the location quotient (LQ) method and Ellison-Glaeser-index of traded sectors. The Local Moran Index (LISA), which can be interpreted as the local index of spatial autocorrelation, is used to calculate the neighbourhood effects of the microregions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p674&r=tra
  36. By: Jacek Sołtys
    Abstract: In Polish regions there are big differences of the level of development between metropolitan areas (and others surroundings of big cities) and peripheral ones. These differences refere also to the factors and chances of development – in the peripheral areas there are little of them. What could help the activation of those areas is the development of some of the cities, including the localization of the investments. But the development usually requires the support of regional politics resources. In the area of the authors' interests there are problems of regional politics, 1) Which cities should be supported to activate the best peripheral areas of the regions? 2) What kind of transformations of the city space should be supported as part of that politics? Author analyses the problems and relations presented above and designs scenarios of activation of the chosen peripheral areas of provinces in northern Poland.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1688&r=tra
  37. By: Adriana Grigorescu
    Abstract: Education represents one of the fundamentals of the social and economic environment in each and every society, even more in the current stage of development that involves higher educational levels for proper access to technologies. Depending on the specific level of education and training, people are able to find a suitable position in the society by integrating themselves into the labor market. The human potential within a region might be an essential element for embarking the area upon a positive trend in economic development. Without a doubt, the economic environment is primarily attracted to areas rich in human and material resources. Skilled human resources provide an edge especially as the share of the tertiary sector in the economy is becoming larger. Previous research were focused on determining the skill, knowledge and activities management and marketing specialists from the public and private - similarities and differences, selection schemes. A regional analysis of the educational system by taking into account the distribution of infrastructure and the educational categories within the structure of the active population could lead towards an “attractiveness chart†from this perspective. This paper aims to perform specific analyses for various types of infrastructure elements of the individual and integrated educational system in order to emphasize the educational capacity of each county. At the same time, on the basis of data on existing occupational groups in each county and by using the same method, counties can be ranked with respect to the materialized potential of the educational system. The outcomes of the study can be integrated into complex structural analyses, which underpin the public policies on education and employment of workforce and represent a possible approach of the infrastructure and outputs of a system. Organizational change and strategies for medium and long term are out coming of high technologies used by a skilled workforce. Romania is known less as a high-tech generation laboratory, but especially as the skilled workforce and highly qualified with outstanding creative and innovative skills reservoir. That is why the management of technological change should be understood in relationship with the workforce.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p872&r=tra

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