nep-tra New Economics Papers
on Transition Economics
Issue of 2011‒12‒05
sixteen papers chosen by
J. David Brown
Heriot-Watt University

  1. The Unofficial Economy in Russia By Byung-Yeon Kim
  2. Entrepreneurship and cities: evidence from the post-communist world By Maksim Belitski; Julia Korosteleva
  3. Curative Activities of Township Hospitals in Weifang Prefecture, China: an analysis of environmental and supply-side determinants By Aurore Pelissier; Martine Audibert; Jacky Mathonnat; Xiao Xian Huang; Ningshan Chen; Anning Ma
  4. Problems of Quality Assurance in Managing the Environment in Russian Cities By Sergey Kirillov
  5. The impact of the migration processes on the low cost airlines’ routs between EU countries and Poland after its accession to the EU, and on the territorial cohesion of Polish regions. By Lukasz Olipra; Ewa Pancer-Cybulska; Ewa Szostak
  6. Peculiarity transformation of modern economies (example of Ukraine) By Olena Slozko
  7. Knowledge transfer inside the regional economic system: the case of eighty years of economic history of the Russian North-East By Alexander Pelyasov; Nataliya Galtseva; Igor Batsaev; Igor Golubenko
  8. Review of Higher Education’s Contribution to Regional Development in Romania By Alina - Irina Popescu
  9. Chinese entrepreneurship in context: specialization, localization and their impact on Italian industrial districts By Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia
  10. The improvement of housing conditions in post com-munist Germany – Market Mechanisms and Subsidy Impacts By Dominik Weiß; Claus Michelsen
  11. Comparing regional differentiation of land cover changes in natural and administrative regions of the Czech Republic using multivariate statistics By Martin Balej; Pavel RaÅ¡ka; Jiří Anděl; Jaroslav Koutský; Petra OlÅ¡ová
  12. EU2'S REGIONAL ECONOMIC RECOVERY SOLUTIONS UNDER THE GLOBAL CRISIS By Ionescu Romeo
  13. Determinants of Romanian International Migrants' Remittances By Zizi Goschin; Monica Roman; Aura Popa
  14. Doing business support on the part of the towns: case study Slovakia By Renata Jezkova
  15. Croatian regulatory framework and actors in national regional policy By Zlatan Fröhlich
  16. RELIGIOUS AFFILIATION AND ECONOMIC PERFORMANCE OF ROMANIAN EMIGRANTS. AN EMPIRICAL APPROACH By Zizi Goschin; Monica Roman

  1. By: Byung-Yeon Kim (Department of Economics, Seoul National University, Institute of Economic Research, Kyoto University)
    Abstract: This paper provides the various estimates of Russia’s unofficial economy during the transition period and discusses the estimation methods of the unofficial economy. It suggests that Russia’s unofficial economy, which substantially increased during the early 1990s and stands still high compared to other countries, is caused by the institutional and cultural legacy from the Soviet era and problems in the transition period such as poor quality of institutions and newly available opportunities. It emphasizes the importance of understanding the evolution of the unofficial economy over time and its heterogeneity across countries.
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:kyo:wpaper:797&r=tra
  2. By: Maksim Belitski; Julia Korosteleva
    Abstract: We investigate variation in entrepreneurial activity across 98 Eastern Neighbourhood cities. The aim of study is twofold: to bridge the city-level gap in empirical research on entrepreneurship in the Eastern Neighbourhood urban areas; to focus on urban heterogeneity in entrepreneurship unlike regional level studies which deal both with urban and rural areas where entrepreneurial activity has different characteristics. Finally, in accordance with urban incubator hypothesis the incidence of entrepreneurship is higher in urban agglomerations. To measure entrepreneurship a number of small businesses is used which has been widely used in a number of studies for capturing entrepreneurial activities. We employ the System GMM estimator to establish our model, which is determined by the need to address some econometric problems, including the problem of potential endogeneity of some of our regressors; the presence of predetermined variables, namely the lagged dependent variable; the presence of fixed effects which may be correlated with the repressors; finite sample. We find that the heterogeneity in entrepreneurship is largely explained by the agglomeration effects and city socio-economic characteristics such as level of poverty. On the one hand this is puzzling, as the general perception of the nature of entrepreneurial activity in these countries is that it is necessity-driven. On the other hand, the role of the government and social benefits still seem to play an important role in the countries of transition discouraging individuals from considering entrepreneurship as a way out of poverty. We fail to support the hypothesis of Moscow proximity as an important driver for small business activity in these cities. At the same time our findings support capital-city hypothesis as an incubator for business start-ups. Unfortunately, the level of capital stock and criminality add little in explaining the variation of entrepreneurship. We also do not find any robust effect of transition reforms, including small-scale privatisation, banking transformation and business regulation on entrepreneurial entry in the Eastern Neighbourhood cities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p288&r=tra
  3. By: Aurore Pelissier (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Martine Audibert (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Jacky Mathonnat (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Xiao Xian Huang (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Ningshan Chen (Department of Health Policy and Legislation, MoH - Department of Health Policy and Legislation, MoH - Department of Health Policy and Legislation - MoH); Anning Ma (Weifang Medical University - Weifang Medical University - Weifang Medical University)
    Abstract: Township hospitals, which are an important link of the Chinese rural healthcare system, were affected by the successive socio-economic reforms since the 1980s. As a consequence, their utilization declined. From longitudinal data covering 9 years (2000-2008) and 24 township hospitals randomly selected in Weifang prefecture (Shandong province, China), this article analyses the environmental and supply-side determinants of township hospitals curative activities, measured by the number of outpatient visits and that of discharged patients. The Hausman-Taylor and the Fixed-Effect Vector Decomposition estimators are employed in order to cope with time-invariant variables. The New Rural Cooperative Medical Scheme, introduced in 2003, allowed increasing the activity of township hospitals even if financial barriers remain to the access to expensive medical services. The analyses underline that referral practices should be reinforced and the size of the township hospitals needs to be adequate as they seem to be over-sized.
    Keywords: China;Healthcare services;Township Hospitals;New Rural Cooperative Medical Scheme;Hausman-Taylor;Fixed-effects vector decomposition
    Date: 2011–11–14
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00640742&r=tra
  4. By: Sergey Kirillov
    Abstract: Transport and industrial enterprises are the reasons for the basic pollution of the environments of large cities. This problem is particularly acute in Russia, where strict environmental standards either do not exist or are not enforced. Improving the management of ecological and economic system of urban environmental resources usage is largely dependent on functional type of the city and the number of people inhabiting it. In this context, the author distinguishes the following urban areas: Capital (Moscow); Major regional centers of Russia, including St. Petersburg; Multifunctional cities; Medium-sized cities with one or two city-forming enterprises; County towns and other settlements. The author proposes a model for designing an economic mechanism of environmental management in large cities depending on management methods used at the present time, their ecological and economic efficiency and possibility of including new management tools into the mechanism. During the modeling of ecological-economic mechanism of urban land use it is necessary to choose a rational variant of regulative instruments which will lead the system of urban land use to the expected form. According to the author, there are three aims that could be achieved in the cities: reducing pollution, improving the stability of the system, increasing the profitability of the land due to optimization of its usage. The aims are interrelated but the local authorities must define in what direction the land affairs will develop. The combination of specific tools in ecological-economic mechanism of urban land use determines the features of urban environment and quality of life. The usage of market and administrative management tools of the urban land use mechanism changes the economical system, the environment, the transportation system, urban landscape and the structure of urban area zoning.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1068&r=tra
  5. By: Lukasz Olipra; Ewa Pancer-Cybulska; Ewa Szostak
    Abstract: After the accession of Poland to the European Union in 2004 we could observe two phenomena: huge emigration of Poles to the old member states of the EU (mainly to United Kingdom and Ireland) and on the second hand a very dynamic increase in the number of flight destinations from regional airports served by low cost carriers (what meant also increase in the number of passengers). The aim of this article is to answer the question, whether directions of the emigration after accession of Poland to the European Union had a significant impact on the routes of low cost airlines in Poland. Whether we can say, that the migration forced LCCs to establish new flights and connections in a particular direction or not? And if yes - to what extent. What is happening when emigrants are coming back to Poland. If there are significant relation between movement of migrants and number of flights of low cost carriers from Polish airports? Finally, can we say, that growing emigration and growing number of LCCs flights helped to improve territorial cohesion of Polish regions with the core of Europe? What is the scale of this improvement and what is the mechanism of this? What kind of policy can regional authorities introduce in this area to strengthen territorial cohesion of Polish regions with the rest of Europe? To answer all these questions authors want to compare and analyze statistics of migration and original data concerning number and destination of LCCs flights from Polish regional airports. To answer questions stated above statistical methods will be used.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1774&r=tra
  6. By: Olena Slozko
    Abstract: Olena Slozko – PhD, Senior Research Adviser IWEIR NAS Ukraine Peculiarity transformation of modern economies (example of Ukraine) For the transformation of modern economies characterized by two features that impede the integration of world financial markets: first, large scale non-market sectors and relations, and secondly, the low information transparency. Typical is the low level of economy of Ukraine depends on international flows of financial capital. Contrariety investment climate in Ukraine is connected to the incomplete market institutional reforms, high levels of arbitrary interference by public authorities in the financial business and their corruption, backwardness of market infrastructure and others. This narrowness and financial market away from the main countries of the world financial capital flows . In the future, if we proceed with economic realities and financial market development level of countries with transitional economic expansion is possible in these countries to attract foreign capital. Total foreign capital inflows can have both positive and negative consequences for social and economic development. Receiving positive effects depends on the ratio between import and export of capital, foreign capital forms, directions using borrowed funds and others. The most common way of attracting foreign direct investment in real sector of economy of business is selling shares to foreign companies. Please be aware that the country in transition (non-) economics is 'fit' in global financial processes, following their own capacity for sustainable development. Integration into the global economy based on specialization in production of raw materials industries, which, unfortunately, now completely dominates the transition economies, is not effective. Countries with such exports have a strong immunity against fluctuations in world financial markets. For them there is always an external threat of violation of domestic macro-financial equilibrium. In recent years, foreign capital is intensively working on the Ukrainian banking market. Expansion of banks with foreign capital in Ukrainian banking market contributes to the further introduction of modern banking technology, international experience of banking, high levels of customer service, quality services, integrated approach to customer service introduction to corporate governance in banking practice.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p352&r=tra
  7. By: Alexander Pelyasov; Nataliya Galtseva; Igor Batsaev; Igor Golubenko
    Abstract: Economic role of the knowledge transfer is studied on the example of the Russian North-East and its two basic branches that is exploration and mining which form the core of the regional economy (regional mining system). Russian North-East can be considered as isolated industrial district with the basic gold mining activity. The scale of this activity has been determined regional socio-economic development for the last 80 years. The major information for this study has been taken from GIS on the spatial structure of exploration and mining branches in the Russian North-East on the district level for the last 80 years. On the basis of revealed regularities and specifics in the interregional knowledge transfer we have formed general understanding of this process. We have analyzed major channels of knowledge transfer from exploration as the branch generating new knowledge on the mineral resources to mining in which this knowledge is utilized. We have determined major systems of knowledge transfer from one branch to the other under different periods of regional economic history. We have examined how territorial structures of exploration and mining industries had been changed inside the regional system for the last 80 years. Main characteristics of knowledge transfer inside the regional mining system influence its productivity (volume of extraction, speed of development of the new deposits, etc.). Effective communication between exploration and mining industry, knowledge transfer from the geologists to the miners is critically important for the sustainable work of the regional mining system.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p52&r=tra
  8. By: Alina - Irina Popescu
    Abstract: The impact of higher education institutions on the regional economy is now more important the ever, due not only to their role as providers of education and research, but also to their linkages to the economic, social and cultural surroundings. The paper explores the relationship between the higher education and the regional development, bringing evidence from the eight development regions of Romania: Bucharest and Ilfov, Center, West, North-West, North-East, South-East, South, and South-West, on the most widely used development indicators, according to the methodology proposed by OECD for the assessment of the local engagement of higher education institutions. The analysis reveals the needs to improve the relevance of university education, to widen and strengthen the collaboration between higher education institutions and the business environment, to improve the flexibility of the workforce by re-skilling and up-skilling through lifelong learning. In collaboration with regional and local authorities, universities are in the need to develop and expand learning and skills development programmes, research activities and outreach efforts to support the cultural and creative industry development of the regions they are embedded in, taking also into consideration the international dimension by building stronger connections with students, researchers and professionals from Europe and abroad.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1327&r=tra
  9. By: Fabio Sforzi; Silvia Lombardi; Flavio Verrecchia
    Abstract: Chinese migration flows represent a relatively new phenomenon in Italy. Its entrepreneurial nature is reflected in massive flows Chinese businessman employed both in manufacturing and commercial activities, with a dense concentration in correspondence of some industrial districts. The aim of the paper is to shed some light on current Chinese specialization of economic activities and localization across Italian regions and industrial districts, to test interpretative research hypothesis on Chinese entrepreneurship models and identify agglomeration forces underlying the emergence of so-called Chinese ethnic businesses. Some reflections on the manufacturing and commercial attitude of Chinese entrepreneurship will also be considered. The utilization of native-Chinese entrepreneurs as unit of observation represents an innovative methodological contribution based on ASIA-ISTAT archives. The exercise of explorative analysis based on data processing and spatial analysis will finally highlight business migration patterns, which represent new socio-economic challenges for Italian industrial districts
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p626&r=tra
  10. By: Dominik Weiß; Claus Michelsen
    Abstract: The objective of this paper is to explain the mechanisms that have lead to the remarkable improvement of the East German Housing Market during transition after the political change in 1989 and the reunification of Germany in 1990. Theoretical analysis suggests, that housing policy of the former GDR did not maximize consumer`s utility. Socialistic housing and construction policy limited the welfare with and distorted construction costs and rent control. The reason for that was not alone a lack of quantity but also a lack of quality and diversity. Therefore we argue that diversification of quality and te-nure in the post communist era enhanced the welfare of consumers. We propose that welfare on the East German Housing market was significantly increased by creating a new variety of housing types and qualities which fits better with different preferences of the households. A filtering model predicts theoretically the observable trends of seg-mentation and the development of a higher diversity of housing market segments. But additionally to the transition a bunch of subsidies were set up during transition. There-fore the paper is focused on the interdependency between housing market subsidies, the supply cost function, the qualitative development of the housing stock and the choice of demand. Empirically we observe the change and qualitative improvement of housing conditions in East Germany during transition and quantitative effects like increased vacancy risk in a shifted hierarchy of housing qualities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p505&r=tra
  11. By: Martin Balej; Pavel RaÅ¡ka; Jiří Anděl; Jaroslav Koutský; Petra OlÅ¡ová
    Abstract: The detection and evaluations of land cover changes represent the major task for landscape transformation studies in post-communistic countries. The results of such evaluation are, however, highly influenced by spatial delimitation of monitored units as natural or administrative regions. Moreover, the objective quantitative assessment of land cover changes and their typologies in different types of regions can be hardly done by traditional map-interpretation approach. The aim of the present research was to evaluate the differences in results of land cover changes in the Czech Republic detected in natural (93 geomorphological units) and administrative (77 districts) regions using multivariate statistics. To analyse land cover (LC) changes we used STATISTICA 9 software. The application of principal component analysis (PCA), factor analysis (FA) and cluster analysis (CA) reveals the main overall trends in land cover changes in the Czech Republic. We applied PCA, CA and FA to land cover data from CORINE projects in 1990, 2000 and 2006. We analyzed LC changes in geomorphological units of Czechia as a whole. We made our calculation based on standardised data for land cover classes. The final number of variables (LC classes) used in the study was 11, drawing upon generalisation of only those land cover classes that are present in Czech landscape. For both sets of territorial units (i.e. natural and administrative), we calculated the Euclidean distance (full connections) between the cases (territorial units). The k-means method and hierarchical clustering were used for clustering. Based on these methods we set the typology of land cover changes in natural and administrative units. Finally, we assessed the differences between these typologies as regards statistical distribution of regions among the individual types. The factors influencing differences between these typologies are discussed, concluding in considerations on a role of spatial delimitation in land cover changes studies.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p768&r=tra
  12. By: Ionescu Romeo
    Abstract: The paper deals with the necessity to implement sub-regional specific solutions in order to achieve the economic recovery. EU2 countries (Bulgaria and Romania) have the same political and economic past, present and future and the same challenges to face. This is why both countries are analysed together in order to present the disparities between the real economic environment and the economic recovery measures implemented. The punt is high, because these latest Member States would be transformed into a good practice example for other member and candidate countries. Unfortunately, the reality is different. The analysis is focused on the anti-crisis programs from EU2 and their experience with the international financial institutes. The analysis is supported by Eurostat and official databases in order to describe the symmetrical shock to asymmetrical implications on the economy. The conclusions of the analysis can be resumed to the following: the global crisis affected powerfully the latest two EU member states; the financial regulation represents a critical area to create a sustainable and efficient financial system; the real target for Romania and Bulgaria is to save themselves from the national bankruptcy; the popular pressure on the policymakers increased and the economic recovery implemented plans are not able to support the economic recovery in both countries. The analysis and the conclusions of the paper are followed by pertinent statistical tables and diagrams.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p289&r=tra
  13. By: Zizi Goschin; Monica Roman; Aura Popa
    Abstract: In the past few years, there has been a renewed interest in remittances of international migrants, as their strong recent increase shed more light on the effects at both micro and macro level. The remittances not only contribute to the well-being of the receiving households, but are also a large source of external financing, second only to FDI. The remittances are particularly important for Romania as in 2010 it was on the 5th place in the European top of emigration countries and on the 4th place as remittance recipient country. Therefore the determinants of remittance behavior need to be better understood. Following increasing interest and significant public debate on migration in Romania, our paper examines the significance of selected economic and demographic factors associated with the remittance behavior of Romanian international migrants, as characterized by the propensity to remit and the amount remitted. In particular we address the question of the role played by the geographic distance, as potentially affecting the immigrants’ ties with their homeland and consequently the remittance decisions. Our present work builds on a recent source of data on immigrant cohort resulting from an online survey conducted during August-December 2010. Respondents were asked questions on a variety of topics including income, employment, remittances, regions of origin and destination, graduated studies both in Romania and in emigration country, length of migration and intention to return to Romania. The final database consisted of 1514 Romanian immigrants from 55 destination countries. We developed several multivariate models to study the determinants of remittances by employing regression analysis. Among the main findings is that the geographic distance is not related to the remittances. Although contrasting with the existing literature, this result can be explained by factors such as modern instant communication and fast travel supporting very strong and resilient transnational links despite geographic distance.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1001&r=tra
  14. By: Renata Jezkova
    Abstract: The paper deals with doing business support on the part of all the towns (138) in the Slovak Republic. It analyses the ways how Slovak towns currently support doing business in their territories. A special attention is paid to the instruments used in a practice on the part of the towns and also a place of doing business support in the strategic documents of the towns. It results from the strategic documents (mainly from the strategies of economic and social development of the towns), but also from own empirical investigations done in the period 2008 – 2010 within solving some projects in which the author was involved.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1121&r=tra
  15. By: Zlatan Fröhlich
    Abstract: Croatian regional policy is closely tied into the EU accession strategy. A major objective will be to prepare for the introduction of EU cohesion policy and the Structural Funds. The pre-accession funds will contribute to that effort. This will require a significant effort on the part of the government to strengthen the institutional base for the management of the Funds – from the centre of government to regions across the country. The National Strategy for Regional Development will be a major part of that effort. While many regional actors in Croatia perceive preparations for participation in Cohesion policy only from the standpoint of the new funding possibilities, the actual value of the policy transformation is somehow not yet fully perceived. One of the key reasons for this is that most of the policy transformation involves exclusively central-level institutions. Also, the full introduction of the new policy instruments such as programming, monitoring and evaluation, the payment system and other into the daily policy practice requires many substantial changes in the organisation of the involved institutions and this is a slow ongoing process. Regional actors are feeling the new policy trends mostly through the participation in the Instrument for Pre-accession (IPA) and other available EU programmes, but also through the changes in the national regional policy which has become much more open and inclusive for actors on sub-national levels than before. The strategy sets the context for balanced regional development both at national and sub-national level as well as draws attention to development needs of the ‘assisted areas’ as well as counties highlighting their different development profiles. It brings together the main analytical parts: policy framework, institutional context and finally an assessment of the existing development interventions on county, NUTS 2 and assisted areas level.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1841&r=tra
  16. By: Zizi Goschin; Monica Roman
    Abstract: Although migration and religion studies have traditionally developed as separate research topics, in the current context of globalization and transnationalism attention begins to focus on the way they may interconnect. Consequently, recent studies of migration raise the importance and role of religion in the international migration flows, distinguish between the socio-economic and religious inclusion of the immigrants in the host country or discuss the role that migration plays in the reconfiguration of religions in the contemporary world. Religion often inspires migration, as religious minority groups facing persecutions in the homeland may decide to move to more religious tolerant places. Conversely, migration almost always affects religion as the religion tradition and practice is usually modified following the resettlement and immigrants’ daily life routines irremediably alter. In Romania religion also received some attention in recent theoretical and empirical analyses of migration, but there are only a few studies undertaken so far. Using the results of our online survey conducted during August-December 2010 among Romanian international migrants of different religious faiths, this paper aims to raise interest in migration-religion relationship and, at the same time, to improve the understanding of the factors of economic performance in a migration context by focusing on the distinctive characteristics of Romanian religious minorities. We address both the theoretical and the empirical dimension of this topic, making use of various statistical methods. Our main findings are consistent with the assumption that religious belief is reflecting upon the behavior and economic performance of Romanian migrants.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p686&r=tra

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