|
on Transition Economics |
|
Issue of 2012‒10‒13
forty-four papers chosen by J. David Brown IZA (Institute for the Study of Labor) |
| By: | Pula, Gabor (BOFIT); Daniel Santabarbara, Daniel (BOFIT) |
| Abstract: | There is an ongoing debate in the literature about the quality content of Chinese exports and to what extent China imposes a threat to the market positions of advanced economies. While China’s export structure is very similar to that of the advanced world, its export unit values are well below the level of developed economies. Building on the assumption that unit values reflect quality the prevailing view of the literature is that China exports low quality varieties of the same products than its advanced competitors. This paper challenges this view by relaxing the assumption that unit values reflect quality. We derive the quality of Chinese exports to the European Union by estimating disaggregated demand functions from a discrete choice model. The paper has three major findings. First, China’s share on the European Union market is larger than would be justified only by its low average prices, implying that the quality of Chinese exports is high compared to many competitors. Second, China has gained quality relative to other competitors since 1995, indicating that China is climbing up the quality ladder. Finally, our analysis on the supply side determinants reveals that the relatively high quality of Chinese exports is related to processing trade and the increasing role of global production networks in China. |
| Keywords: | Chinese exports; vertical product differentiation; quality ladder; global production networks; discrete choice model; COMEXT database |
| JEL: | F10 F12 F14 F15 F23 |
| Date: | 2012–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2012_023&r=tra |
| By: | Michael Moritz; Johannes Schaeffler |
| Abstract: | This article deals with the domestic location of German multinational firms which have affiliates in the Czech Republic. Due to the common border the Czech Republic represents an attractive target country for both vertical and horizontal direct investments. In the year 2009 the sum of direct and indirect German investments in the Czech Republic added up to 22 bn €. This amount is far higher than the investments in other Central and Eastern European Countries (CEEC) and also in Japan or in one of the BRIC countries Brazil, Russia, India and China. On the one hand, the still existing wage gap offers the opportunity to offshore activities abroad by reason of cost advantages. On the other hand, the increasing purchasing power of Czech customers provides favorable chances to acquire a new market. Corresponding to the main motive for a company to invest in the Czech Republic, there are differences in the relevance of possible determinants for the decision to go abroad, e.g. the distance between the German capital provider and the Czech affiliate. On the basis of a register of firms made available by the German-Czech Chamber of Industry and Commerce we present findings on the growing economic integration between the two countries. Almost 80% of the headquarters of German investors are located in the four federal states Bavaria, Baden-Wuerttemberg, Hesse and North Rhine-Westphalia. The eastern German New Laender are far less engaged in investments in the neighboring country. We use count data models in order to account for the distribution of the dependent variable, i.e. the number of investors in the German domestic regions. Controlling for several economic factors it can be concluded that the headquarters of German multinationals investing in the Czech Republic are preferably located in areas with high regional GDP. The distance to the common border plays an important role for the decision to enter the Czech market. In addition, regions that are situated directly at the German-Czech border are involved at an above-average rate in foreign direct investments. Thereby, location patterns differ between manufacturing firms and both trading and service companies. The findings illustrate the relevance and different impact of regional aspects for foreign direct investments dependent on the target sector in the country of destination. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p519&r=tra |
| By: | Boeing, Philipp; Mueller, Elisabeth; Sandner, Philipp |
| Abstract: | This study investigates how in-house R&D as well as access to national and foreign knowledge sources influences the productivity of Chinese firms. For our main analysis we use data for 1,140 patenting firms listed at mainland China stock exchanges over the time-period 2001-2010. In-house R&D based on indigenous knowledge does indeed improve productivity as does engaging in joint research projects with national partners. In order to benefit from international knowledge, Chinese firms are dependent on an organizational integration of the knowledge source. Joint ventures with foreign partners, acquisitions of foreign firms, and employing foreign researchers inside China contribute to firm productivity, whereas international joint research projects are not sufficient. Our results indicate that at the current stage of China's economic development the absorptive capacity of most firms is sufficient to benefit from foreign sources of knowledge only if an enduring, deep relationship supports the absorption of the knowledge. -- |
| Keywords: | indigenous innovation,China,knowledge sources,productivity,absorptive capacity,patents |
| JEL: | O32 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:196&r=tra |
| By: | Evgeniya Kolomak |
| Abstract: | The paper studies trends in the urbanization in Russia and compares them with the global ones. Russia has high level of urbanization, urban population reached 73% in 1990, and the rate of urbanization fluctuates around this level past 20 years. The change of the urban population in Russia is influenced by three factors: natality, migration and the administrative reforms. The latter includes the establishing of new urban settlements and transformation of rural settlements into urban or vice versa. Starting in 1992, the low birth rate has become a major factor in reducing the number of urban residents. Immigration from cities was observed in 1991-1992 and it exacerbated the decline of the urban population of Russia. The administrative reorganizations had significant impact on the official statistical data on the urban population in Russia, especially in 1991, 1992, 1999, and 2004. The paper discusses advantages and disadvantages of the urbanization to the economic development and provides empirical analysis of the relationship between the economic growth and the urbanization in Russian regions. Russian regions differ significantly in urbanization, both at the macroeconomic level and the subnational one. Tested hypotheses are the following: 1) urbanization stimulates growth of regional productivity in Russia; 2) the positive effect of urbanization on the regional productivity in Russia is decreasing and at some level becomes an impeding factor; 3) large cities demonstrate higher performance and create positive externalities for the overall regional development. The idea of econometric estimates is to expand an aggregate regional production function including urbanization level and agglomeration capacity of the cities. We use panel annual data for 79 Russian regions and covered period is 2000 – 2008. Estimation tool is fixed effects least squares. The estimates show that increase of share of urban population in the country by 1% gives rise of the average regional productivity by 8%. However, the effect of urbanization is reducing. The growth of a city size per 1 thousand residents would increase economic productivity by 0.1% only. The conclusion is that despite the high level of urbanization in Russia and a number of negative effects of the concentration of economic activity in the cities, the resources of urbanization are not exhausted. Cities develop effectively creating positive externalities and growth impulses on surrounding areas in Russian regions. The potential of changes in the structure of urban settlements in favor of large cities exists, but it is very small. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p82&r=tra |
| By: | Feng Xu; Nan Xiang; Yoshiro Higano |
| Abstract: | Recently, various environmental problems have been brought with the rapid economic development in China. 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 its high water pollution problem combined with speedy economic growth, and we constructed integrated dynamic environmental-social economic system model to establish the optimization simulation. Through scenarios analysis, we can evaluate the efficiency of the environmental policies from the aspects of both environmental preservation and social economic development. This research will provide prediction on social-economic activities, such as production, finance and budget, endogenously in the social economic model, the water pollutants discharged from social economic activities in environmental system model in the region. The simulation results show a great improvement of the trade-off between environment improvement and economic development in Jianxing city, China. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p606&r=tra |
| By: | Jan Suchacek |
| Abstract: | Transport, social as well as some other types of infrastructure represent an important component of system macrostructures. In advanced countries, these system macrostructures are usually – though not necessarily – approximately bound to the existing settlement system. There are only little doubts that the role of infrastructure in local and/or regional development is an indispensable one. Activities of local and/or regional actors can be substantially facilitated or hampered by existing spatial distribution of infrastructure. The same – with even higher intensity – applies to also to post-transition countries among which the Czech Republic can be ranked. Thus, the main objective of this article consists in the analysis and interpretation of the quality and distribution of selected transport, education, research, health, technical and information infrastructure in the Czech Republic. Modern approaches to territorial development typically consider the relative harmony between spatial distribution of population and corresponding infrastructure as guaranteed. This may be the case of leading advanced nations, however less frequently it applies to their post-transition counterparts. Subsequently, the article attempts to disclose both strengths and weaknesses of the spatial profile of infrastructure in the Czech Republic. Spatial analysis of infrastructure in this country will be pragmatically conducted at NUTS III level covering self-governing regions. Selection of indicators as well as territorial scale has been influenced also by qualitative and quantitative limitations still existing in the Czech regional statistics. Key Words: infrastructure, NUTS III regions, settlement system, regional development, Czech Republic JEL Codes: R10, R40, H54, O18 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p358&r=tra |
| By: | Irina Slepukhina |
| Abstract: | The objective of the paper is to analyze a city network of the Russian Federation (the RF) in order to understand how the existing urban pattern correlates with the aim and strategic directions of a contemporary regional policy. To reach this goal the present hierarchy of Russian urban system will be analyzed, on the base of population size, level of urban functions and accessibility of transport system. The paper will present strengths and weaknesses of current urban system structure. The regional development of the RF has specific features due to a set of historical, political, economical and social aspects. The Soviet period of planned economy had significantly influenced the territorial development of the country. For a long time Russia had been in a self-isolation condition and, as result, it had the unique planned system with their specific terminology, distributive mechanisms and administrative regulations. In the contemporary Russia regional planning is switching over to a new stage. Apparently Russia seems have been reached the era of so-called “regional revolution†later than the other industrial countries. Now we can observe a creep from sectoral (industrial) planning to territorial development planning. On the one hand, Russia tries to devise a regional development strategy based on the principles of polarization. The budget levelling policy is substituted by the growth pole policy. The “open question†is: which regions and cities could be the poles for the future country’s development? Thereby, realization of a new regional policy demands development of a suitable information, data base, statistics, researches, etc. On the other hand, in the RF is emerging a progressive bifurcation between socio-economic policies and spatial planning. The regional policy is realized without territorial binding. The role and place of the city is indefinite in the regional policy. The issue concerning which cities should be alive in national and global competition is still under discussion. The research methodology is based on the analysis of existing planning and strategic documents of the federal, regional and local levels in the RF, as well as on a retrospective analysis of Russian population settlement pattern and in carrying out a comparative analysis. The adequacy of research will be ensured by using a statistical data of the RF. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p482&r=tra |
| By: | Daniela L. CONSTANTIN |
| Abstract: | After less than two years from its accession to the EU, Romania was seriously hit by the global financial and economic crisis. Compared to other former transition countries, the turmoil was deeper and lasted longer and a modest recovery was recorded only in the second half of 2011, given deep internal vulnerabilities that amplified the impact of international shocks. Consequently, the Romanian regions have been also hit by the crisis, which induced an uneven distribution of its effects at regional scale, depending on the specific economic and social structures, regional specialisation degree, export orientation of economic activities, etc. The crisis has generated difficulties for the beneficiaries of the EU-funded projects – both local public administration and private firms - to provide the co-financing contribution, so that the Romanian Government has had to adopt a series of measures meant to support the implementation of the on-going Operational Programmes and the EU funds absorption process as well. This paper discusses the main developments of Romania’s regional policy particularly in the 2009-2011 period, considered crucial years for the successful implementation of this policy. The economic, institutional, political factors that have influenced the regional policy during these years are analysed at the same time with the solutions proposed at the middle of the 2007-2013 programming period for the problems which the regional policy implementation is confronted with. Keywords: regional policy, Romania, Structural and Cohesion Funds, absorption, co-financing, implementation problems JEL Classification: R13, R28, R38, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p920&r=tra |
| By: | Shen, Xin |
| Abstract: | In the last two decades, outward foreign direct investment from developing and transition economies has been growing rapidly, and new multinational enterprises from these economies have started to compete on the world stage. However, these firms are facing formidable challenges due to their special characteristics and weaknesses. Today firms compete not only in terms of products but also in terms of supply chains, and the lack of comprehensive distribution networks is one of the main problems in the internationalization of these new multinational enterprises. This thesis presents a study which finds answers to the question ``how can new multinational enterprises set up efficient international distribution logistics systems when they enter developed markets''. The domain of this study touches the existing research gap in management research on emerging economies. The study examines Chinese firms entering developed markets and provides an overall view of the development and characteristics of Chinese firms' internationalization and first-hand information about their international distribution management. The study uses resource-based view and market-based view as explanatory theories and develops a model of efficient international distribution logistics systems for new multinational enterprises entering developed markets with foreign direct investment activities. The model suggests important resources for increasing the efficiency of international distribution logistics systems. Based on the result of the study, a number of managerial recommendations are provided both for Chinese firms who have entered developed markets or are planning their internationalization to such a market, and for logistics service providers who are planning to cooperate with such firms. |
| Keywords: | distribution, distribution logistics, distribution management, China, foreign direct investment, emerging market, case study research, internationalization, RBV, MBV; distribution, distribution logistics, distribution management, China, foreign direct investment, emerging market, case study research, internationalization, RBV, MBV, Distribution, Distributionslogistik, Distributionsmanagement, China, ausländische Direktinvestion, Schwellenland, Fallstudie, Internationalisierung, RBV, MBV |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:59329&r=tra |
| By: | Agnieszka Szumilas |
| Abstract: | Commercial sector, during the times of centrally planned economy was particularly neglected in Poland, as in all Eastern European countries. Economic transformation and political changes in the country after 1989 induced the development of the commercial sector. The subjects of the research are changes in commercial sector after the economic transformation. With the liberalization of legislation on running business traditional small shops started to develop rapidly. Polish market was underinvested, so every shop was profitable. The reason of author’s interest in the subject was a popular statement about the negative effects of modern shopping structures on the existing traditional shops. With the development of capitalism in Poland privatized commercial sector encountered various difficulties e.g. competition from foreign investors and increasing demands of consumers. Author has researched the nearly 3'000 traditional shops and nearly 40 modern shopping structures. In the research various parameters were analyzed such as: localization of the shop in town, start and end date of business. The period of the study covers the years 1990-2010, all the shops were located in several towns in southwestern Poland. The aim of this paper is to find answers to the following questions: - What was the dynamics of the process of traditional shops localization in the researched 20 years? - In which areas of the analyzed towns economical activity is growing, and in which many shops are being closed? - Do modern shopping structures have a negative effect on the existing market? The results suggest that the number of shops in the 1990s was growing rapidly. Furthermore, since the year 2000 number of small shops has remained constant or decreased. Modern shopping structures were mostly built and started operating after 2000, therefore they are not responsible for decreasing number of small shops – the process began earlier. Changes that take place in commercial sector reflect the society that is using it. The society decides which formats will prevail. The development of modern shopping structures and traditional shops should be closely monitored in the future. Systematical research on this subject will be helpful for investors and local authorities that look after the urban environment. Keywords: commercial activity, spatial structure, modern shopping structures, urban environment JEL Classification Numbers: R12, R58, L10, L66, L67 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p158&r=tra |
| By: | Johanna Vogel |
| Abstract: | This paper examines the empirical relationship between agglomeration and economic growth for a panel of 48 Central and Eastern European regions from 1995 to 2006. By agglomeration, we mean the within-regional concentration of aggregate economic activity, which we measure using the 'topographic' Theil index developed by Bruelhart and Traeger (2005). A transitional growth specification à la Mankiw, Romer and Weil (1992) is augmented with this index and estimated using panel data methods that account for endogeneity and spatial dependence. Our empirical analysis provides evidence of a positive effect of agglomeration as measured by the topographic Theil index on long-run income levels. A one standard-deviation increase in agglomeration is estimated to raise steady-state income per capita by 15%. While this effect is sizeable, it may also imply a trade-off between regional development and within-regional equality for Central and Eastern Europe. Keywords: Agglomeration, regional growth, Central and Eastern Europe, spatial econometrics, panel data econometrics JEL codes: R11, R12, C23, O52 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1089&r=tra |
| By: | Milan Damborsky; Rene Wokoun; Nikola Krejcova; Bozena Kaderabkova |
| Abstract: | Investment incentives as well as promotion of industrial zones become one of the most debated issue for experts, especially in connection with the effect of foreign direct investments on economies at both national and regional levels. The aim of this paper is to assess the effectiveness of promotion of industrial zones as the key tool of regional development support in the framework of economic conditions in the Czech Republic. The assessment is focused on industrial zones support which was provided by the Ministry of Industry and Trade in the Czech Republic or, more precisely, the CzechInvest agency in the framework of the Programme on Industrial Zones Development Support, Programme on Business Zones and Infrastructure Support and the Investment Incentives System. This paper´s main source is the data set obtained in empirical research carried out by authors throughout industrial zones across the Czech Republic. Another important source was the accomplished analysis of economic management of all economic subjects observed in the supported industrial zones mentioned above. The research shows that firms in industrial zones have positive effects on the regional labor market, that companies in industrial zones contribute to technological development through restructuring of industry and affect SMEs positively, that industrial zones improve the business image of the region. The negative effect on the environment is low and the impact of industrial zones on social cohesion may be considered as neutral. Firms contribute to efficient use of available resources, creating greater added value. In the context of economic development, it is also possible to evaluate positively stable export growth in its absolute value; wages of workers in industrial zones may be assessed as above average as firms try to get quality workforce. The contribution of observed companies (or industrial zones) to the total number of jobs created in R&D is very limited. Industrial zones may be considered as significant accelerators of secondary sector development and, to a relatively lesser extent, also on the Quaternary and Quinternary. To assess the impact of the state support in industrial zones on the state budget, a complex function has been compiled to map specific indicators. The model has been applied in three variants: 'pessimistic', 'medium' and 'optimistic' and has implemented data from the period of 2006 to 2009. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1017&r=tra |
| By: | Christophe Heyndrickx; Victoria Alexeeva - Talebi; Natalia Tourdyeva |
| Abstract: | The present paper studies the effect of an upward correction of the natural gas price on the Russian domestic market. Russia has the largest gas reserves in the world and currently produces around 550 billion cubic meters of gas each year. Sixty percent of the production is sold domestically at prices below long term marginal cost, for households and for industrial producers. The pricing of natural gas is currently a hot topic in Russia, as the Russian government proposes to liberalize the regulated domestic market price and decrease subsidies for natural gas products. This is claimed to fit in a policy promoting energy efficiency, increasing investments in natural gas production and bringing the natural gas price on the domestic market closer to long term cost recovery. We will approach the issue of gas pricing through taxation of intermediate and final use of natural gas for domestic industries and consumers. Considerable attention is given to economic impacts, environmental issues and social effects of gas pricing. We compare several scenarios of differential gas pricing, simulating increases in price for industrial and private consumers at different annual growth rates, with a time horizon from 2012 until 2020. Our results are based on an application of the SUSTRUS model, a novel computable general equilibrium model, which was developed in 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 model is constructed as a regional model on federal level, where regions are linked by interregional trade flows, a federal government level and migration. 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 module and standard applied general equilibrium techniques. We find that deregulating natural gas pricing can lead to a significant improvement in energy efficiency, if prices are gradually increased for both consumers and industries alike. Differences in regional energy efficiency decrease, but are still significant. We show that increasing the consumer price of gas is indeed a regressive policy, but can be compensated for by the government. Keywords: Regional general equilibrium modeling, sustainability, energy, natural gas, pricing, policy JEL codes: R13,Q01,Q41,Q48,Q56 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p113&r=tra |
| By: | Carmen Beatrice Pauna; Frank Heins |
| Abstract: | The presentation intends to analyse population change in Romania after 1989 in a regional prospective. Absolute population change and the changes in the age structure as well as internal and international migrations are put into relation to the labour market changes. In the last two decades the Romanian regions experienced a decline of fertility and an increase in the share of the working age population. The share of the population 65 years and older is still relatively low. This demographic situation, combined with a weak labour market (low labour force demand) leads to various forms of underemployment of the active population and to high emigration. Romanians are the most numerous EU-immigrants to EU-27 Member States. The demographic and economic importance of these migration flows will be analysed and their mid- and long-term sustainability will be discussed. The demographic outlook for the future decades and the possible consequences for the labour force supply are based on the various scenarios and international and national population projections for Romania at regional level. The steep population decline projected in some of the scenarios could cause considerable challenges for the economic and social situation of the Romanian regions. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p582&r=tra |
| By: | Bachev, Hrabrin |
| Abstract: | This paper suggests a holistic framework for assessing farm competitiveness, and analyses competitiveness of different type of Bulgarian farms during EU CAP implementation. First, it presents a new approach for assessing farm competitiveness defining farm competitiveness and its three criteria (efficiency, adaptability and sustainability), and identifying indicators for assessing the individual aspects and the overall competitiveness of farms. Next, it analyzes evolution and efficiency of farming organizations during post-communist transition and EU integration in Bulgaria, and assesses levels and factors of farms competitiveness in the conditions of CAP implementation. Third, it assesses the impact of EU CAP on income, efficiency, sustainability, and competitiveness of Bulgarian farms. |
| Keywords: | efficiency; adaptability; sustainability; and competitiveness of farms; transitional agriculture; EU integration; impacts of EU CAP; Bulgaria |
| JEL: | D21 L11 O13 Q12 D14 Q18 D23 L14 L16 Q17 O17 Q13 Q14 |
| Date: | 2012–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:41657&r=tra |
| By: | Johannes Stephan; Olivier Zieschank |
| Abstract: | With systemic change in Central East European countries (CEECs), foreign direct investment (FDI) became an important factor for the transition economies. FDI not only played a leading role in privatisation in most transition countries. FDI is also widely assumed to spur restructuring in terms of capital and technology transfer, spillovers, breaking up of national monopolies, and alignment of sectoral specialisation to comparative advantages. This way, FDI is often entrusted with a leading role in the growth and development processes in CEECs. Alas, empirical proof of FDI’s positive contributions to macroeconomic growth remains not robust in an already large body of literature: significant positive growth effects are typically only found by use of very complex methods based on neoclassical growth theory and often only in very specific model specifications. For CEECs, the literature is generally overly optimistic, which is not least used by policy makers (and lobbyists) to argue for active FDI-attracting policies. This contribution revisits the FDI-growth-contribution hypothesis for the case of CEECs during the last 15 years with a particular focus on the individual roles of financial sector FDI and manufacturing industry FDI. The analysis uses the clearest and simplest econometric set-up in the form of a Cobb-Douglas production function that distinguishes between FDI flows and stocks and controls for policy-interventions, human capital endowments, technological activity of firms, and for heterogeneity between countries, sectors, and years. Applying a very large number of alternative models and specifications and post-estimation tests, the analysis concludes for CEECs (i) that there is no robust and convincing independent and effect of neither financial nor manufacturing nor total inward FDI on economic growth if assumed to work via accelerating technical advance (the A in AK-models) in a neoclassical world; and (ii) that robust positive growth contributions become much more convincing as soon as neoclassical assumptions are relaxed, and FDI can affect growth via capital, human capital, and capital formation. For future empirical analysis, this suggests that the search for growth effects by inward FDI in CEECs as economies in transition has to consider indirect effects beyond the strict conceptualisation of neoclassical or new growth theory. For economic policy, the results suggest that FDI may have positive growth effects, but only indirect ones, necessitating a policy-mix beyond the pure attracting of more inward FDI. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p357&r=tra |
| By: | Churen Sun; Zhihao Yu; Tao Zhang |
| Abstract: | The paper proposes a model to investigate the influences of agglomeration on heterogeneous firms' exporting behaviors. In the model, firms are heterogeneous in productivity. Selection effect and agglomeration economies caused by agglomeration increase firms' productivity and decreases industrial entry costs, and factor prices are increased because of agglomeration. The former factors increase while the latter reduces firms' exporting possibilities and sales. The theoretical result shows that the compositive effect is that the influences of productivity on the latter increase with agglomeration level. Empirical results based on data from Chinese Industrial Enterprises between 1998 and 2007 verify the theoretical results. Moreover, the is a critical agglomeration level for each firm (which varies across firms' productivity), so that the influence of agglomeration on a firm' export increases with agglomeration if it's less than this level while decreases if it's larger than it. The paper also estimates the influences of local market effect, urban economies and competition effect on firms' exports and find that they affect firms' exporting behaviors in very complicated modes. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p882&r=tra |
| By: | Sauer, Johannes; Davidova, Sophia; Gorton, Matthew |
| Abstract: | This paper investigates the effect of land fragmentation on farm efficiency in Kosovo utilising agricultural household survey data. To recognise heterogeneity among agricultural production systems in Kosovo, we estimate the technology separately for different groups or “classes” of farms, identified using latent class modelling. This approach separates the data into multiple technological “classes” according to estimated probabilities of class membership based on multiple specified characteristics, relating in this case to land fragmentation and market integration. The latent class frontier method is linked to the estimation of a multi-output multi-input production function, namely a directional output distance function, and to the estimation of Morishima elasticities of substitution, based on shadow price changes indicating allocative efficiency changes. The analytical results confirm that the usual approach of using one homogenous function to estimate fragmentation effects is misleading and can lead to inappropriate policy recommendations. Three distinct classes of farm households are identified, which show different levels of efficiency and the proxies for land fragmentation and market integration show different signs over these classes. |
| Keywords: | land fragmentation, market integration, farm households, Kosovo, Farm Management, O13, Q12, |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc12:134968&r=tra |
| By: | Balázs Krusper (Magyar Nemzeti Bank (central bank of Hungary)) |
| Abstract: | Recent literature suggests that the co-movement of inflation is rather strong across countries. We use a factor model to asses this co-movement within the EU, while we differentiate between common (EU) and regional (CEE) effects. We find that price dynamics in Western European countries share a common pattern, while CEE countries can be divided into subgroups according to their inflation history. Results indicate that the monetary policy regime is a very important source of the difference among CEE countries. This method also allows us to examine how external and country-specific components contributed to the Hungarian inflation. We find that Hungary, similar to other countries in the region, experienced a disinflation period before the EU accession. However, country specific components (e.g. VAT changes or monetary policy) also played an important role. |
| Keywords: | inflation dynamics, factor model |
| JEL: | C33 E31 E42 E58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mnb:wpaper:2012/5&r=tra |
| By: | Timo Mitze; Selin Özyurt |
| Abstract: | Since the introduction of its “open door†policy in the late 1970s, China has been attracting a growing share of FDI inflows and its international trade integration has advanced considerably. In this study, we take a closer look at the regional growth impact of the Chinese internationalization activity on labour productivity over the period 1979-2006. Our empirical analysis thereby extends the existing empirical literature by considering the likely spatial effects associated with Trade- and FDI-led growth in a dynamic error correction modelling framework. Our results indicate that, in the long-run relationship, regional labour productivity is indeed driven by direct and indirect spatial effects if FDI and trade activity next to further supply side factors such as the regional infrastructure equipment and human capital endowment. Similarly, in the short-run, changes in FDI activity and especially human capital variables are found to matter for the regional growth dynamics. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p512&r=tra |
| By: | Zlatan Fröhlich; Irena Dokic |
| Abstract: | Croatia is geographically, historically and culturally a part of the European territory. Regions, as specific units within a national territory, are defined differently on EU level than in Croatia, where counties are far too small to be considered as regions in EU terms. The implementation of European regional policy requires “comparability†of territories, which is done on the basis of the Nomenclature of Territorial Units for Statistics (NUTS). After long discussions with the European Commission and Eurostat, Croatia has three “new†NUTS II regions (March, 2007): Adriatic, North-Eastern (Pannonian) and North-Western Croatia including the capital city of Zagreb. These regions are now acceptable for EU regional policy and funds. Institutional structures for managing regional development on this new regional level does not exist, as well as legislative framework necessary to implement policies, strategies, plans or projects prepared at the respective levels, while at the same time very interesting developments from the bottom-up can be observed. Regional development agencies established have recently been nominated as regional coordinators for elaboration of planning documents at the County level initiating development processes, still at the county level and through informal mechanisms at the regional level. Territorial cohesion across Europe stands out as one of the top European priorities. Considerably large number of programmes, measures and priorities, aim at achievement of this goal. Croatia, as an acceding country, strives to harmonise numerous requirements prior to entering European union space in all aspects of entry, including territorial cohesion. Last decade was marked by a certain shift in shaping and implementing Croatian regional policy at programming and regulatory level towards that aim, among others. Many documents were produced – to serve national purpose, European and/or both. New policy, regulatory and programming environment imposed also creating of institutional set up (structure) that will enable successful implementation at all these fronts. However, regional development has to evolve from the bottom, but the initial push or supporting incentives have to come from above. This is a mutually enhancing development process, where efforts from above (EU and national level) and bellow (regions, counties, and local units) merge and contribute to overall development. This paper explores possibilities and obstacles in implementing of Croatian regional development policy at all levels, within a semi-European context and a given national framework. Keywords: Croatian regional policy, regional development, competitiveness JEL Classification: R00, R11, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p763&r=tra |
| By: | Alexander Pelyasov; Nadezhda Zamyatina |
| Abstract: | The main idea of the research is to investigate how the communication processes could result in the location of productive forces in contemporary Russian regions. The results are based on utilizing several traditional and new methods of regional analysis. We have analyzed: 1) Inter-regional skilled migrants flows, including special case of PhD holders (the official statistics of arrivals and departures for all Russian regions for 2008--2010); 2) Internet links between 40 Russian universities’ sites (the selected universities are located in 25 Russian cities; the results of more than 1800 retrieval requests were investigated); the number of internet links was compared with the national scientific, educational, and other University ratings; 3) career paths studied on the material of Internet social networks for the case of Tomsk University graduates (more than 1200 students graduated from the University in 2006-2009); 4) location of new biotechnology firms in the cluster of the city of Biysk. We have elaborated several lines of research. 1) Location of the new industries (like biotechnology) and communication pattern between economic actors in this industry. 2) Spatial structure of the Higher Education Institutions in contemporary Russia, their status and mobility patterns of the labor force. 3) Different location behavior among post-graduates of Tomsk University, representing specific assets like specialists in chemistry and physics, and common assets like specialists in arts and applied mathematics. For example the significant portion of specialists in physics born in small towns around Tomsk move to such R&D centers like Snezhinsk and Sarov located more than 1000 km far from Tomsk; the specialists in chemistry born in south cities move to the labor markets of the Russian North; the graduates in arts and applied mathematics tend to stay in Tomsk or to move back to the cities where they were born. 4) Different location behavior among skilled migrants and PhD holders (for example in 2008-2010 PhD holders moved to such peripheral regions as Altai and Kurgan which were losing both the skilled population as a whole and the total population); Regional competitive advantage is closely related with the local communication process. Location or relocation of the most innovative activities depend on the model of local community communication as well as on the scale and substance of its outward communication network. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p57&r=tra |
| By: | leonid Bezrukov |
| Abstract: | Areas with limited transport accessibility are considered to mean territories lacking year-round roads and routes, such as railroads, motor roads, sea routes, and inland waterways. Siberia, as Russia’s largest macroregion, has within its boundaries huge territories difficult of access, where only seasonal waterways and winter motor roads, and also expensive air transport are available. The socioeconomic state of the Siberian areas with limited transport accessibility is under a negative influence of two transport-economic barriers simultaneously. The presence of the former barrier is characteristic for the whole of Siberia, including the zone serviced by railroads and all-the-year-round motor roads. The operation of this barrier is associated with the landlocked macrolocation of Siberia, and with the huge and expensive distances which have to be traveled when transporting cargo and passengers to the leading centers and sea ports of Russia and the world at large (and, accordingly, vice versa). The chief point is that there is still a significant difference between land transport tariffs, on the one hand, and economical sea transportation rates, on the other. Therefore, in landlocked regions, and in Siberia in particular, the high transport expenses continue to have an unfavorable influence on economic efficiency and remain a severe obstacle to the entry into the remote markets. The second barrier arises directly because of lack of year-round communications, and its operation is characteristic precisely for areas with limited transport accessibility doomed to drag out a backward socioeconomic existence or bear sky-rocketed transport expenses. Compared with the belt along the railroads, the transport expenses in areas without railroads increase several times, which was established through our estimation of cost for the transport-geographical location (TGL) of Siberia’s administrative districts. Districts with a particularly disadvantageous TGL are represented by the most backward and peripheral territories of the Sakha Republic, Krasnoyarsk Territory, Irkutsk Oblast, Tyva Republic, and some other Siberian subjects of the Russian Federation which are distinguished for an exceptionally sparse network of human settlements, a total lack of good roads, and for extensive kinds of economy. The broad-scale construction of new railroads and all-the-year-round motor roads, as planned by the “Transport strategy of the Russian federation into the year 2030â€, would radically change the situation for the better. According to our assessment, the implementation of the aforementioned “Strategy†would lead to a reduction in transport expenses and to an improvement in TGL of about 100 areas of Siberia, which would create favorable possibilities for their full-fledged socioeconomic development. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p206&r=tra |
| By: | Janusz Zaleski; Zbigniew Mogi³a; Marta Zaleska |
| Abstract: | Poland as the main beneficiary of EU Cohesion Policy is an interesting target of analyses regarding the impact of financial interventions on regional economies. Obviously, of special importance for regional communities are effects of EU funds on the labour market. Greater employment- besides counteracting social exclusion- is expected to increase disposable incomes of households and consumption expenditures. This – in turn- is likely to improve well-being of regional inhabitants. Hence, impacts of EU Cohesion Policy on regional labour markets are considered to be the most tangible contribution of the EU financial assistance to higher standards of living for ordinary citizens. The main aim of this paper is to compare and confront the effects of Cohesion Policy on employment and unemployment rates with the costs of the EU financial support in the Polish NUTS-2 regions over the period 2004-2020. Making use of available counterfactual analyses, attempt is made to evaluate the cost-effectiveness of the job creation due to the EU funds. The gathered evidence will be a significant contribution to the debate on the shape of the Cohesion Policy in the new EU financial perspective. Keywords: EU Cohesion Policy, regional labour market, counter-factual macroeconomic simulations. JEL codes: R11 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p615&r=tra |
| By: | Alexander Pelyasov; Natalya Galtseva |
| Abstract: | The major reason of economic depression of old industrial regions is the aging of their economic structure and loss of competitive advantages of their basic sectors. Not the sectors of the regional economy are getting old but determined by economic age conditions of their development in the concrete region. Indicators of basic sectors getting old can be production of non-competitive output because of backward technique and technology, ineffective organization of the industrial process etc. It is possible to include in the list of old industrial regions not only manufacturing but also resource-dependent regions like Magadan Oblast in the North-East of Russia. Resource regions have distinct specificity in their aging: it is general decrease in the quality of extracted resources and lack of technology to utilize depleted resources. Generally the main directions of the restructuring of the economy of the old industrial regions are diversification, introduction of product, process and organizational innovations and elaboration of new competencies. Magadan Oblast in the North-East of Russia has been developed its gold deposits for more than 80 years. So it can be regarded as Northern resource old industrial region. And its directions of economic restructuring lie in resource diversification, technological and institutional innovations, and new economic competencies of the labor force. Efficiency of each direction of regional economic restructuring is measured by indicators of GRP, employment, and real income. At the result of different combination of the projects in the three directions of restructuring one can characterize four scenarios for Magadan Oblast future development. The first is connected with the introduction of innovation in the existing resource projects. The second includes existing and new projects connected with coal deposits. The third includes the projects from the previous scenarios plus project of diversification connected with elaboration of tin and tungsten deposits. This scenario can help Magadan Oblast to come into the group of Russian regions with the average level of economic and social development. And finally fourth scenario related to the large-scale exploitation of the off-shore oil and gas deposits can help to change radically the economic specialization of the region and increase rates of economic growth of the previously territory of economic depression. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p234&r=tra |
| By: | Golobokova Galina |
| Abstract: | The role of integration mechanisms in creation of regional innovative system of Magadan region Galina M.Golobokova, Administration of Magadan region, Magadan, Russia The regional innovation system, innovation infrastructure, interation mechanisms. In Russia the adoption of new technologies by changing the “raw-material†economy to the competitive production one faces a number of difficulties originated by sequences of our transition to the market economy, partial loss of priorities in technological development as well as weakness of national innovative system. That’s why it is important to work out a number of scientific approaches for development of synergic mechanisms to integratethe efforts of all participants of the innovative process.It makes the basement for legal and institutional reorganization (legal acts on innovative activity as well as on development of intellectual property market, commercialization of results of scientific and research activities, effective management of financial resources, compiling of innovative governmental order and stimulation of investors in innovative businesses). Within the framework of “Scientific research of innovation processes and development of mechanisms for implementation of innovations in regional economy†we have completed the following studies: modeling of strategic alternatives and mechanisms for implementation of innovations in regional economy; vectors of innovation development of regional economy on the basis of synergetic mechanisms of integration of various players in the innovation market; development of information and communication models of innovation; building of innovation mechanisms of the regional energy development; problems of formation of the regional market of intellectual property. We have drawn up technical approaches towards implementation of the strategy of innovation development of the Northern territories and a unique model of regional innovation policy building and functioning. The regional innovation system of the Magadan region is a set of interacting subjects of innovation activity. Regional innovation infrastructure provides support and sustainable development. The adopted strategy of development of the Magadan region till 2025 is intended to introduce innovations in various areas of economy: mining, fishing industry, energy conservation and electricity, oil and gas production, production of new building materials that will require new mechanisms of integration and considerable financial resourses. Nowadays the Magadan region is rated second in the Far East Federal district on the numbers innovation companies – 35 and on the volume of innovation goods (works and services) – 2,4 billion rubles. The share of innovation goods, works and services total 5,2% in the general volume that is the maximum in the Far East. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p584&r=tra |
| By: | Natalia Zigern-Korn |
| Abstract: | Regional development potential: the evolution of methodological approaches in the domestic regional studies The problems of methodology and method tools in the regional development potentials study are under consideration. Definition of the category “potential†is considered on the number of domestic (Russian) works and research example. The evolution of researchers methodological positions from the Soviet period to the present time are subjected to analysis. A step change in the content of the natural-resource potential while geosystem approach to natural resource research is gradually enriched with economic content is shown. We prove the incorrectness of identifying the category 'potential' with the category of 'resources', and estimate it in the context of underutilized resources to be used in the modern region development forecasts. The main areas of regional potentials investigation in recent studies are distinguished and discussed by author. They are: the study of individual potentials as factors of regional development and as a set of some functional significance resources; the search of regional development potential integral index as a set of resources and opportunities for regional development. It is noted that in the last few years, the notion of potential appears and develops in the context of regional development tasks and out of forecast and analysis of regional development, this category makes no sense. But, according to the author, the previous domestic attempts to create a logical system of views on the issue of socio-economic forecasting by regional development potential assessing both from a solely geosystem approach, and with the help of new research concepts for domestic regional economy (reproduction approach and new concepts of the region) have been failed. The article shows geosystem constructive approach to analyze the spatial dynamics of regional factors for development. Further to this the author concept of 'functional capacity of the territory' is introduced. To analyze the temporal (time) dynamics of economic systems the relevance of an evolutionary approach, studying the cyclical patterns of development of complex systems is proved. Due to the cyclical patterns of complex systems development this approach emphasis on the evolution of the regional policy goals and objectives according different stages of social development and in different technological structures. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p771&r=tra |
| By: | Martin Plešivèák; Martin Maèanga |
| Abstract: | The issue of energy prices presents an extremely topical theme with a major impact on human society. Energy demand is constantly increasing and most regions of the world are facing serious difficulties in ensuring sufficient energy supplies. However, not only global events affect energy prices in the particular country. National energy markets are highly specific and some local factors may also prove as significant. In our contribution we focus on the Slovak Republic and try to analyze the major political and economic factors affecting the final price of energy, particularly of gas, electricity, heat and water. Political environment in Slovakia is characterized by frequent changes of governments with different ideological orientations manifested by different pricing policy. We pay attention mainly to the period after country's accession to the European Union, since this moment is associated with a wide range of major changes. Largely monopolized energy market has been gradually opening up to competition and the countries with regulated prices have been facing the increasing pressure to let the free market decide. Progressive liberalization of energy markets enables consumers to use the energy services offered by various private companies. This new element operating in the energy sector is largely reflected in final energy prices. Furthermore, this process is not still finished. Pricing policy is highly sensitive issue as it affects both the domestic and industrial consumers. In many EU countries, the state retains control over the prices of both the electricity and gas for final consumers. In most cases, it means result of efforts to shield the households and industry from violent fluctuations in prices. However, it shows as extremely difficult, since a fight against climate change becomes a political priority for the EU at the same time. It also includes efforts to minimize the using of fossil fuels and to achieve a transition to renewable energy, although this alternative is frequently associated with higher cost of production. Thus, the main goal of this study is to highlight the price disparities between different energy commodities and to explain the spatial differentiation within particular regions of Slovakia, since we are currently witnesses of significant regional disparities in energy prices. The explanation of these territorial particularities might be helpful for the entire spectrum of state and local institutions in the creation of the most suitable pricing strategy. Keywords: energy prices, market liberalization, pricing policy, regional disparities N74 - Europe: 1913– |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p917&r=tra |
| By: | Ferto, Imre |
| Abstract: | The paper analyses small and medium firms’ perceptions on contract enforcement along food chain in central region of Hungary using survey data. We find that 59 per cent of respondents believe that they could use court to enforce contracts with their partner. However we do not find significant differences along food chain. Our estimations suggest that contractual specificity and firm attributes, external linkages, efficiency of legal systems factors, buyer and seller specific factors significantly influence the opinion on contract enforcement. Interestingly, the impact of branch specific characteristics has no impacts. Acceptance of financial loss can be explained by contractual specificity, external linkages, and efficiency of legal systems. Buyer, seller and industry characteristics has not played role in the explanation of financial losses. |
| Keywords: | Agribusiness, D2, Q13, |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc12:134956&r=tra |
| By: | ziye na; Mingwei Liu |
| Abstract: | As the economic center of China, Shanghai has achieved 8.2% of GDP increasing in 2011, and the GDP per capital reached $ 12 784, which is close to the level of some developed countries. Meanwhile, its urbanization rate has been 89% in 2009, the whole city is going through severe economic and spatial transformation and requalification. This paper aims to take EXPO 2010 as a case to interpret the strategic logic, institutional arrangement and planning procedures in Shanghai in recent years. The EXPO 2010 might be an extreme case not only because it is a public project in a very big scale, but also because it is the first time of a developing country holding EXPO, which gives this project political meaning ¨C a successful EXPO is required for its international reputation. But it is exactly such a project that could reveal its real motivation, its institutional arrangement which the city considered as the most efficient, and the innovation of planning procedures which could be the paradigm of the future practice. The first part of the paper will introduce the identity card and the chronology of EXPO 2010, also the economic situation and spatial planning documents will be presented to help us understand the strategic purpose of EXPO 2010: it is a good opportunity for the city to transfer it economic structure from industrialization to post-industrialization, to revive the inner city, to integrate both sides of the important River crossing the city ¨C Huangpu River, and to redefine Huangpu River as a symbol of post industrialization. In the succeeding parts, the leading strategy of pre-post strategy will be introduced: the planner stretched the planning effective date to 2020 when a world city is expected, and made the design backwards. In this way, the planning structure, the infrastructure and a big percentage of building which are constructed for EXPO 2010 will be directly put into operation after EXPO. In the institutional aspect, the urban government seems to play a role of developer: they turn the degraded industrial and residential land into prepared culture, business and top-class residential land, and release it to private developer again. In the planning procedure aspect, the chief planners, the decision makers and the implemental planner for the first time work closely, to make sure the plan could instruct the projects. Lastly, the theoretical base, breakthrough and criticisms will be discussed based on this case. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p889&r=tra |
| By: | Tamas Dusek; Eva Szalka |
| Abstract: | The economic and social importance of administrative borders can be examined from the point of view of internal homogeneity and external heterogeneity of the delimited spatial units and from the point of view of the effect on the intensity of spatial interactions. This paper deals with the first question. Hungarian county borders can be treated as sharp limits from the administrative point of view. However, choropleth maps with county borders can suggest that county borders are sharp limits for the social and economic indicators also. It is a conceptually interesting question whether presenting data at county level is justified by the sharp differences of various indicators along the county borders or it is determined only by the availability of data. The aim of this study is to examine empirically the existence or non-existence of the county border effect by the example of spatial distribution of personal incomes in Hungary. The analysis is possible due to the availability of personal income data at the level of more than 3000 Hungarian settlements. The analysis is conducted by the comparison of average personal incomes of settlements along the county borders to the following areas: average of own county, average of neighbouring county, average of neighbouring settlements, average of neighbouring settlements in own county, average of neighbouring settlements in neighbouring county. The results show that county borders have effect only in those cases, where the border is determined by a sharp geographical barrier, namely Danube River and Lake Balaton. The settlements are more similar to the close settlements of a neighbouring county than to the average of own county. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p716&r=tra |
| By: | Tatiana Blinova; Svetlana Bylina |
| Abstract: | The objective of this paper is to make an empirical analysis and econometric evaluation of determinants of mortality for population of the able-bodied age in Russian regions. The model that was evaluated included five groups of factors (economic, social, ecological, demographic and behavioral). Results of the empirical analysis are presented to show that statistically relevant indicators are the characteristics of the region, way of life of the people and investments in the health care. Taxonomy of the regions of the Russian Federation is made according to basic classes of causes of death of the population of the able-bodied age that is developed by employing hierarchical cluster analysis and the SPSS statistical processing software. The results of the study show that the regional structure of mortality among the population of the able-bodied age is governed by specific characteristics of the region. The relationship between the ecological adversity and high mortality from neoplasm is revealed. The hypothesis that anti-social behavior affects the level of mortality from external causes is confirmed. It is argued that increased investments in the public health service and promotion of the healthy way of life can help reduce the mortality among the able-bodied population from cardiovascular diseases. The regression equations are evaluated by using the data openly presented by the Federal State Statistics Service on the website of Rosstat. The study of the nosological profile of mortality among the able-bodied population by Russian regions allowed identify the territorial features of the structure of causes of death, which can be used when developing regional strategies for reducing mortality among the population of the able-bodied age. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p150&r=tra |
| By: | Klaus Nowotny |
| Abstract: | Stylized facts show that migrants more often face overqualified employment than natives. As shown by previous research, one third of the employed foreign born with tertiary education in the EU-15 are overqualified, with levels reaching up to 57.6%, compared to 20.9% among natives. Among the employed foreign born with medium education levels (ISCED 3-4), about one fifth (19.8%) is overqualified in the EU-15, compared to 7.4% of the natives. For the U.S., research shows that among employed migrants with tertiary education who immigrated in the 1990s only 21-76% obtained skilled jobs, depending on the country of origin. Whether this 'brain waste' is 'involuntary', e.g., the result of labor market discrimination or due to limited transferability of qualifications, or 'voluntary' is, however, unresolved; migrants may be willing to accept a job-skill-mismatch as long as they receive a compensation for working in overqualified employment. This paper therefore analyzes the impact of the willingness to accept overqualified employment on the reservation wage of prospective medium and highly skilled migrants. The empirical analysis uses individual level data surveyed in 2010 in Austria, the Czech Republic, Slovakia and Hungary. The survey was designed to identify migration and cross-border commuting intentions in these four countries and is especially suited to the analysis in this paper because it avoids the selection problems which would be associated with estimating migrants' reservation wages after migration. The theoretical and empirical models in this paper show that overqualified employment is not necessarily the outcome of labor market discrimination of migrants in the host country, but can also represent the migrant's rational choice as long as she is compensated for the disutility of the job-skill mismatch by a higher wage: according to the empirical estimates the compensation required for accepting overqualified employment abroad is about 11% of the income the individual could earn at home. Furthermore, the relative reservation wage increases with age. A higher income at home on the other hand decreases the relative reservation wage, but the income variable is only significant at the 10% level. The estimated parameters of the country fixed effects show that even after controlling for individual characteristics the relative reservation wage in the CEECs considered (the Czech Republic, Slovakia and Hungary) is considerably higher than in Austria: according to the regression results, potential migrants from the CEE countries require a relative reservation wage that is 100-150% higher than those of prospective Austrian migrants. Keywords: brain waste, overqualification, migration, reservation wage, interval regression JEL codes: 15, J24, J31, F22, C24 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p287&r=tra |
| By: | Mihaela-Nona Chilian |
| Abstract: | The paper attempts to identify with the help of a panel model the presence of common or divergent development patterns and some significant factors of competitiveness at national and regional level (mainly regarding investment and employment, overall and by main economic sectors). The results for Romania and its development regions reveal specific ways of GDP formation for each region (the presence of „regional economiesâ€), based on different mixes of factors, augmented or not by certain economic policies, and also some differences in the sectoral development patterns of the regions. Keywords: competitiveness, panel data models, regional development, regional policy JEL Classification: C23, O18, R12, R15 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p110&r=tra |
| By: | Martin Lábaj (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy); Róbert Kúšik |
| Abstract: | We identify the sources of long-term economic growth in V4 countries and in Finland in this paper. We show the differences in productivity levels and their development over time, with following decomposition of productivity gap to technological backwardness and inefficiency. We deal with an analysis of particular V4 economies with comparison to Finland. We have revealed relatively high differences in the sources of economic growth as well as in productivity levels. We have showed that the importance of lagging behind in efficiency is high, comparing to traditional focus on technological backwardness. |
| Keywords: | Economic growth, Total factor productivity, Sources of economic growth, Technological backwardness, Efficiency |
| JEL: | E20 O11 |
| Date: | 2012–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:brt:wpaper:004&r=tra |
| By: | Carmen Beatrice Pauna; Nona Mihaela Chilian |
| Abstract: | Analyzing the competitive performance of Romanian industry, one may say that Romania has an economy based mainly on the manufacturing industry, characterized by features such as: • high labor intensity, especially in industries such as textiles, knitwear, apparel, leather and footwear; • high capital intensity, especially in industries such as metallurgy, yarns and fibers, cement, petrochemicals, milling; • high energy consumption in almost all industries. The result is a manufacturing industry with quite low level of labor skills and low level of the research-innovation-development triad. However, due to structural changes one may witness, on the one hand, the decline of the Romanian traditional industrial specializations and, on the other hand, the creation of modern industrial entities similar to the economic clusters promoted in the European economies. In this line of argument, the current paper attempts to answer questions such as: to what extent do clusters impact on territorial competitiveness in Romania and, in which areas of activity. The correct identification of the current and potential comparative and competitive advantages and of their factors (costs, diversification, technological level, labor skills, innovation, etc.) at national, regional and intra-regional level and their use as bases for future actions, measures and policies in the domain of competitiveness are, in our opinion, some of the employable instruments required by the current economic crisis. An adequate diagnosis of the internal resources and competencies (especially of potential and underdeveloped advantages), of external opportunities and threats, and of their inter-linkages is necessary to set the competitiveness policies, strategies and actions on more sound foundations. Keywords: economic crisis, clusters, SME, competitiveness, regional development JEL Classification: O25, R38, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p713&r=tra |
| By: | Akos Jakobi |
| Abstract: | Since ICT factors got growing importance in shaping social and economic differences, the determination of competitiveness in the information economy and society became needful in understanding modern regional disparities of Hungary. To evaluate recent inequalities caused by the factors of information and communication technologies (ICT) complex indices of competitiveness were created, which can reveal the reasons of major inequalities in the level of information society development. By the application of the widely known Bennett methodology estimations on the level of Hungarian small regions (NUTS4 or LAU1) were carried out based on regional statistical data. Additionally calculations were made on the three major segments of ICT competitiveness reflecting also the advantages and disadvantages of structural circumstances. The structural factors of competitiveness in the examinations were the level of information infrastructure, the level of social adaptivity of ICT innovations and the level of the information economy, each of them measured by a complex index created from each structural factor’s multivariable dataset. According to the results the majority of small regions have no kind of advantage in competitiveness, while only 10% percent of the small regions in Hungary have all components of advantage: good infrastructure, high level of social adaptivity and developed information economy. By the recognition of ICT-based inequalities the strategic policy also tried to formulate suitable answers on how to develop regional information society. ICT-based regional strategies were created, which formulated several development directions and suggestions, however, they did not fully reach their aims. The efficiency of the strategies is below expected. Due to lack of allocated financial sources the strategic plans seem to be only bookshelf documents with no influences on regional inequalities. On the other hand there are also examples on successful development tools, but those have only indirect connections with regional information strategies. All in all the aim of this research paper is to describe what inequalities are present in Hungary and how they are introduced in regional plans, as well as to reveal the real possibilities of the application of this development tool by the evaluation of changes observable in statistical reports. Keywords: information and communication technologies, information society, information economy, Hungary, regional disparities, regional information strategies JEL: L86, L96, O18, R00, R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p940&r=tra |
| By: | Reveiu Adriana |
| Abstract: | Regional clusters and entrepreneurship have become very popular subjects in economics, regional science, and economic geography. In the last decade, a large number of scientific papers investigate the empirical evidence for clusters, their definition, and their implications for economic policy. Also, a series of working tools for regional cluster analyses have been proposed. Entrepreneurial attitudes and activities interact and their characteristics are normally bound to the region. Local entrepreneurial attitudes and entrepreneurial activities can be the starting-point for the evolution of a regional cluster. There are lots of arguments for the hypothesis that existing regional clusters have positive impacts on entrepreneurial attitudes and entrepreneurial activities. But, exist only few analyses refering to the relationship between clusters attributes of a region and the entrepreneurial activities in the same region. From our knoledge, it is not such of analyses about Romania. This paper aims to identify regions with functional or potential industrial clusters, from Romania, and to analyse their impact on the entrepreneurial environment. Data about all the companies acting in Romania in 2011 is used to elaborate the spatial clusters in the most concentrated Romania industries. A second data set, collected as part of the Global Entrepreneurship Monitor (GEM), serves to assess the relationship between regional clusters and entrepreneurial activities and attitudes. GEM intends to measure the level of entrepreneurial activities and to identify the individual factors and the entrepreneurial framework conditions that may explain differences in the levels between the regions of Romania and the entire country.The paper tests the empirically proven hypothesis which stipulates that the existence of one or several industrial clusters in a region has a positive impact on the number of start-ups and attitudes in the same region. The results obtained from descriptive and regression analyses have shown that there is a positive relationship between the number of clusters and the number of employees in clusters in Romanian regions on the one hand and entrepreneurial activities and entrepreneurial attitudes like the assessment of good start-up opportunities on the other. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1075&r=tra |
| By: | Felix-Constantin Burcea |
| Abstract: | The aim of the present paper is to describe the investment environment in Romania, to highlight the stringent problems that need to be solved and also to propose solutions for a better investment environment. In the actual economic context, policymakers across all regions are facing difficult economic management challenges. After closing the output gap and reducing the excess capacity generated during the crisis, emerging and developing countries are benefitting from buoyant internal demand, although they are now facing inflationary pressures caused by rising commodity prices. In advanced economies, the devastating earthquake in Japan and doubts about the sustainability of public debt in Europe, US and Japan, are undermining investor and business confidence and casting a shadow of uncertainty over the short-term economic outlook. By implementing the Porter’s Diamond analysis in the present paper, we can observe what is the Romanian place among the European Union concerning the country competitiveness and, therefore, the quality of the investment environment. I applied the methodology used in the Global Competitiveness Report 2011-2012, and the pillars for this analysis are: Basic Requirements (Institutions, Infrastructure, Macroeconomic stability, Health and primary education), Efficiency enhancers (Superior education and training, Goods market efficiency, Labor market efficiency, Financial market sophistication, Technological readiness, Size of market) and Factors of innovation and sophistication (Business sophistication, Innovation). To highlight the existent problems in the Romanian investment environment and to identify possible solutions for the future, I made an analysis in which Romania is compared with the average performance from EU 27 for as series of indicators from Porter’s Diamond, using the data’s from the Global Competitiveness Report 2011-2012, considering: the competitive advantage or disadvantage by comparing the Romanian Score with EU average; the intensity of the competitive (dis)advantage by comparing the score difference between Romania and EU average with the standard deviation of data series for each indicator. The last part of the paper is dedicated to a microeconomic model applied for the Romanian case that was developed by Abhijit Banerjee on the economy of India and published with the launch of the study “Equity and Growth in a Globalizing World†by the Commission for Growth and Development in 2010. This microeconomic model has like primary goal to determine the minimum wealth for a person required to start a business and to highlight the problems in the Romanian investment environment. Key words: investment environment, clusters, Porter’s Diamond, competitiveness Jel Codes: E22, F21, L26 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p905&r=tra |
| By: | Jozef Tvrdon; Eva Belvoncikova |
| Abstract: | The newest theories of regional development accent an approach that the development of a region is influenced both by intraregional environment and but also by various institutes that create an environment, influence the creation of subjects relations and form communication rules for individual activities. Institutional surrounding and conditions in the region have an impact on successful regional development thereby directly influence its competitiveness. Presented paper is focused on evaluation of approaches to the supporting policy focused on a development of creative industries in regional context. The aim is to identify stakeholders of this policy and changes in policy tools in developed economies. The outcomes of the research are confronted with the status and possibilities of regional policy application for the creative economy in chosen regions in the Slovak economy. On the basis of this confrontation the authors propose changes in the applied policy approach. The authors also deal with broader context, oriented on the definition of the regional policy, conceptual approaches, as well as some specific forms for the regulation of conditions for the creative activities development in the specific regional environment. The structure of the paper about the supporting policy for the creative economy development in the regions of the Slovak Republic is divided into two parts. The first part is focused on theoretical approaches toward regional policy and possibilities of its application in the support of the creative economy mainly from the view of tasks and status of institutions able to influence this development process. The authors use the knowledge of institutional economy, namely functions and types of institutions, possibilities of policy tools usage and possibilities of institutions’ activation at various levels (local, regional, national, international, perhaps internal and external institutions). The second part synthesises findings from chosen countries and concentrates on possibilities of the supporting policy application (mainly by institutions) for creation of the conditions for the creative economy development in the specific regional conditions. Possibilities of using the regional policy tools for the support of chosen creative industries are also presented here. In the final part the authors formulate certain generalizations oriented on the creative economy support in regional context. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p346&r=tra |
| By: | Milan Viturka; Vilém Paril; Petr Tonev |
| Abstract: | In a large number of countries (including the Czech Republic), implementation of large projects of transport infrastructure is justified by a general reference to its broad economic benefits, which are, however, seldom further specified. One of important reasons for such an approach is the non-existence of an empirically verified model for complex assessment of the degree of necessity of the development of these projects. Therefore, the main objective of the paper is to present an original method for comparative assessment of motorway and expressway constructions. The method has been applied to eight cases of the most significant projects planned in the Czech Republic verifying that its use can provide the necessary information on their potential benefits (in spite of some simplifications). The methodology for the generalized assessment attempts to connect technical, economic, political, spatial and environmental aspects and includes five basic criteria: relevance (traffic intensity as the underlying factor determining the technical need for a project), usefulness (time saved in personal transport and haulage, due to the insecurity concerning future transport flows interpreted by relative values derived from design speeds), integration (strategic significance of the projects regarding the connection of the most significant residential areas and the connection with neighbouring countries), stimulation (economic impacts assessed based on a potential improvement of the factor of road and railway quality as an integral part of the regional quality of business environment), and sustainability (environmental impacts of the construction on more significant residential centres and selected protected areas, with emphasis on pollution and noise). The complex assessment of selected projects of motorways (D) and express ways (R) has been performed based on an aggregation of rankings of the projects within the defined criteria. The projects were then divided into three groups: projects where need for construction has been proven, has been found disputable or has not been proven. The first group contains R 55), D 3 and R 35. However, this does not mean that there are no drawbacks – e.g. R 35 has the lowest ranking within the sustainability criterion. The second group contains D 11 and R 49. The assessment of their construction has been negatively affected by their ranking within the usefulness and stimulation criteria (D 11), and relevance and integration criteria (R 49). The position of the projects in the third group, R 6, R 7 and R 43 follows from their bad ranking within most of the established criteria (R 6 and R 7 – three criteria; R 43 – all criteria except usefulness). |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p126&r=tra |
| By: | Daria Zvirgzde; Javier Revilla Diez |
| Abstract: | Globalisation as a dominant tendency of the XXI century has initiated the rise of the scale and dynamics of economic interactions on the international, national and regional levels. Regions have started to compete as the sources of economic growth since the disproportional levels of their development led to the escalation of the disparities on the global economic platform. Experience of the most successful and highly developed states clearly shows that the growth of the competitive economy on the macro-level is only possible through the accumulation of the regional economic potentials on the meso-level. The notion of international regional competitiveness has been paid attention to in economic and regional science literature, but still there is no one single definition of what a competitive region means. The paper presents the author’s own definition of an internationally competitive regional economy as the starting point of the assessment of the scientific and innovative potentials of the regions of Ukraine, their link to the regional competitiveness of the Ukrainian economy and its regional attractiveness towards FDI. Analysis of the impact of FDI on the local business, of whether MNCs do add value to the local regional growth, situating the regional competitive advantage, of the level of embeddedness of MNCs into regional innovation systems as the primary sources of regional competitiveness is introduced in the paper within the methodology framework of the survey carried out in three regions of Ukraine within the SEARCH Project of the Seventh Framework Programme. Formulation of strategic policies targeting at raising the level of the regional competitiveness stands as a coherent discussion focus after cluster models of boosting the levels of international competitiveness with the means of increasing the level of productivity and economic connectivity are proposed. The paper aims at, firstly, the assessment of the theoretical aspects and up-to-date methodologies of the analysis of the international competitiveness of the regions; secondly, at identification of the system of determinants of the level of international competitiveness of the regions within the conditions of globalisation; thirdly, at the study of the economic potential of the regions of Ukraine as one of the drivers of regional competitiveness; and fourthly, the paper will come up with the strategic ways of accumulation of the innovative competitiveness of the regions of Ukraine. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p312&r=tra |
| By: | Jacek Sołtys |
| Abstract: | The areas located outside metropolitan areas and also outside areas activated through other big cities are called peripheries. There are big differences between the levels of development of metropolitan and peripheral areas in Poland. There are also great differences in opportunities to development including the location of new investment. Peripheral areas are characterized by features such as: high unemployment, relatively impoverished populations, low productivity, low territorial accessibility, small development potential. Lack of development factors is the cause of low development level. Peripheral areas are differential. The author analyses this differentiation, including location of development factors in peripheral areas of northern Poland. Touristic values are such factor, but tourism is mainly seasonal. The tourist season is short, 2-4 months. The development of this tourism increases the income of people and business, but the increase of permanent work-places is small. The lack of robust businesses that are able to start constant and stable development is one of the main weakness of peripheral areas. Bed transport accessibility is the other weakness of peripheral areas. As one of the factors of socio-economic development considered by author is the spatial structure, including settlement network. In some areas lack of appropriately big node could be the weakness of such network. The analysis of case study area is conducted on the basis of the features of poviats (counties), which are described by following indicators: employees in the industry sector and market service sector per 1000 population of working age, number of entities in national economy between 10-49 and more than 49 workers per 1000 population of working age, investment outlays in enterprises per capita in the years 2008-2010, gross value of fixed assets in enterprises per capita, average monthly gross wages and salaries, unemployment rate, participation of the urban population, population of the biggest settlement node. The author researches correlation between features presented above. In the next part of the paper the author performs a typology of poviats. In the last part of the paper regional policy of stimulating growth is proposed. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1061&r=tra |
| By: | Dariusz WoŸniak; Justyna Soko³owska-WoŸniak |
| Abstract: | The aim of this paper is twofold. The first is to examine the level of development of knowledge economy in Polish regions (Voivodships). In order to assess the advances in building the knowledge economy in region, the composite indicator for years 2003-2008 is constructed. The second purpose is to analyse the regional authorities' policies directed towards supporting the pillars underlying the knowledge economy. |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa12p1129&r=tra |