|
on Transition Economics |
| By: | Seidler, Jakub; Gersl, Adam |
| Abstract: | Excessive credit growth is often considered to be an indicator of future problems in the financial sector. This paper examines the issue of how best to determine whether the observed level of private sector credit is excessive in the context of the “countercyclical capital buffer”, a macroprudential tool proposed in the new regulatory framework of Basel II by the Basel Committee on Banking Supervision. An empirical analysis of selected Central and Eastern European countries, including the Czech Republic, provides alternative estimates of excessive private credit and shows that the HP filter calculation proposed by the Basel Committee is not necessarily a suitable indicator of excessive credit growth for converging countries. |
| Keywords: | credit growth; financial crisis; countercyclical capital buffer; Basel II |
| JEL: | G18 G01 G21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42541&r=tra |
| By: | ZHAO Ting; ZHAO Wei |
| Abstract: | By reviewing and improving previous empirical works on this topic, the present paper investigates the dynamic externalities of agglomeration in China. Taking China's top three municipalities (i.e., Beijing, Shanghai, and Tianjin) as sample regions, it assesses empirically and compares how three types of dynamic externalities—namely MAR (Marshall-Arrow-Romer), Jacobs, and Porter externalities—affect manufacturing productivity. The main findings of this paper are threefold. First, all three types of dynamic externalities measured in labor productivity can be found in the three sample regions, but large differences in the degrees and directions of the effects exist among them. Second, the degree and sign of the effects of each type of externality vary with changes in time lags. Third, the positive effects of these externalities seem to be substitutable for one another. Specifically, if MAR externalities contribute more to productivity growth in one city, Jacobs or Porter externalities do so to a lesser degree and vice versa. |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12072&r=tra |
| By: | Gutierrez, Juan Julio; Correa, Paulo |
| Abstract: | This paper explores fundamental issues affecting technology commercialization of publicly funded research and development (R&D) in the Russian Federation. Despite substantial R&D investments, Russia has experienced a decline in scientific output and employment. Nevertheless, the innovation system remains strong in several technological fields. This paper develops an analytical framework to discuss conditions for technology commercialization, which hinge on the innovation system research base, governance of research institutions, alignment between specialization and sector prioritization, availability and performance of scientists and engineers, intellectual property (IP) regime for publicly funded discoveries, and early stage finance. The paper identifies areas for policy and regulatory improvement to incentivize research institutes and scientists to undertake research with market potential. These include: stronger results-based management that rewards commercialization efforts and focuses not only on high-technology sectors, but also on sectors where Russia has technological comparative advantages. In addition, researchers'career development could consider performance metrics that include entrepreneurial achievements, as well as support for young scientists and for international collaboration. Moreover, the IP regime for federally funded R&D may consider transferring full ownership of research discoveries to research organizations. Finally, to increase deal-flow of new ventures, enhancing the supply of early-stage financing for new technologies may be considered. |
| Keywords: | Tertiary Education,E-Business,ICT Policy and Strategies,Scientific Research&Science Parks,Science Education |
| Date: | 2012–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6263&r=tra |
| By: | Jindra, Jan (OH State University); Voetmann, Torben (Cornerstone Research); Walkling, Ralph A. (Drexel University) |
| Abstract: | Chinese reverse mergers (CRMs) claim to provide easy entry to the U.S. and international markets. Recently, a large number of Chinese firms using reverse merger transactions have been listed on the U.S. stock exchanges. We review the historical use and mechanics of these reverse mergers, and contrast them with initial public offerings (IPOs). We also explore settlements of securities class action lawsuits involving Chinese firms. Our analysis shows that larger, more reputable Chinese firms are significantly less likely to pursue reverse mergers. We also find that CRM firms are more likely to be subject to class action litigation in the U.S and that the settlement amounts are smaller for CRM firms than for Chinese IPO firms. Our analysis further indicates that CRM firms significantly underperform the Chinese IPO firms. Thus, the evidence suggests that CRMs are not substitutes for Chinese IPOs. |
| JEL: | G14 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2012-18&r=tra |
| By: | Valeria Gattai; Piergiovanna Natale |
| Abstract: | This paper provides new contract-level evidence on control rights allocation in order to define what makes a joint venture. Property rights theory of the firm identifies circumstances under which joint control alleviates investment distortions due to contract incompleteness. We compare predictions of the theoretical literature with actual governance structures of Sino- Italian joint ventures, as reported in a questionnaire submitted to the entire population of Italian enterprises operating in China. With an exceptional response rate of 60%, our evidence confirms most of the theoretical predictions and helps select among competing approaches to model joint ventures. |
| Keywords: | contract incompleteness, China, Italy, joint venture |
| JEL: | D23 F23 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:218&r=tra |
| By: | Hübler, Michael; Baumstark, Lavinia; Leimbach, Marian; Edenhofer, Ottmar; Bauer, Nico |
| Abstract: | We introduce endogenous directed technical change into numerical integrated climate and development policy assessment. We distinguish expenditures on innovation (R&D) and imitation (international technology spillovers) and consider the role of capital investment in creating and implementing new technologies. Our main contribution is to calibrate and numerically solve the model and to examine the model's sensitivity. As an application, we assess a carbon budget-based climate policy and vary the beginning of energy-saving technology transfer. Accordingly, China is a main beneficiary of early technology transfer. Herein, our results highlight the importance of timely international technology transfer for efficiently meeting global emission targets. Most of the consumption gains from endogenous growth are captured in the baseline. Moreover, mitigation costs turn out to be insensitive to changes in most of the parameters of endogenous growth. A higher effectivity of energy-specific relative to labor-specific expenditures on innovation and imitation reduces mitigation costs, though. -- |
| Keywords: | endogenous growth,directed technical change,technology transfer,integrated assessment,carbon budget,China |
| JEL: | O11 O30 O44 O47 Q32 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12054&r=tra |
| By: | ZHAO Wei; ZHENG Wenwen |
| Abstract: | Most studies about the effects of producers' services on manufacturing agglomeration focus on the effects themselves while neglecting the mechanism that such effects spread. By stressing the key role of trade costs in the process of manufacturing agglomeration, this paper identifies a chain of effects from producers' service improvements to manufacturing agglomeration via changing trade costs and builds a simple model to enable empirical analysis. Both in the mechanism used to assess this chain of effects and in the empirical model, trade costs are dealt with as a mediator variable. Empirical tests using firm-level data from China support the hypothesis that producers' services affect manufacturing agglomeration via changing trade costs. Further tests at the two-digit sector level show that these types of mediator effects vary in accordance with differences in sector factor intensiveness. Specifically, the mediator effects are more significant in the technology-intensive manufacturing industries than they are in the labor- or capital-intensive manufacturing industries. The policy implication of this finding is that encouraging the development and regional concentration of producers' services would not only promote manufacturing agglomeration but also stimulate technology progress in related sectors. |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12073&r=tra |
| By: | Ratinger, Tomas; Medonos, Tomas; Spicka, Jindrich; Hruska, Martin; Vilhelm, Vaclav |
| Abstract: | The investment support has been considered as a principal vehicle for enhancing competitiveness of the Czech agriculture since the early days of the economic transition. However so far, little attention has been paid to the evaluation of actual effects of the corresponding support programmes. The objective of this paper is to assess economic and other effects of the measure 121 “Modernisation of Agricultural Holdings” of the RDP 2007-2013 on the Czech farms. The counterfactual approach is adopted investigating what would have happened if the supported producers did not participate in the programme and then comparing the result indicators. The quantitative analysis of programme effects is complemented by a qualitative survey on 20 farms which received the investment support between 2008 and 2010. The quantitative assessment showed significant benefits of the investment support in terms of business expansion (GVA) and productivity (GVA/labour costs) improvements. These results were confirmed by the qualitative survey. It showed that production expansion and productivity increase were primary objectives of the investment strategies on most of the farms. The public support enabled farms to achieve these strategic objectives. The respondents of the survey declared that the supported investment was important for their prosperity however, we could not prove it in the quantitative assessment in terms of profit and cost/revenue ratio. Finally, the issue of deadweight of the investment support is discussed: the figures on very low net investment relatively to the provided public support at the sector level and answers of respondents indicate possible significant deadweight, however, the insight is incomplete, since it does not take into account post accession restructuring of the sector and multiannual and multi-enterprise character of investment at the farm level. |
| Keywords: | Investment support, counterfactual analysis, propensity score matching, direct and indirect effects, Agribusiness, Agricultural and Food Policy, Q10, Q18, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135775&r=tra |
| By: | Volk, Alenka; Bojnec, Stefan |
| Abstract: | This paper analyses the influence of a formal and informal system of the Local Action Group (LAG) board’s performance on the perception of its members about suitability of rural development projects for LEADER funds co–financing. The unique in-depth survey data was obtained from the surveys with the 103 LAG board’s members using the written questionnaire designed for the inquiry and from existing data analysis on projects which were co–financed by the LEADER funds in Slovenia in the years 2008 and 2009. The informal system of performance of the LAG board members was found to influence significantly its members’ perception on the suitability of projects to be co–financed by the LEADER axis. The opposite was established for the formal system, which had insignificant influence on the board members’ perception on the suitability of projects. |
| Keywords: | LEADER, Rural Development Projects, Board Members, Local Action Group, Formal System, Informal System, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135781&r=tra |
| By: | Cechura, Lukas |
| Abstract: | The paper examines the contribution of technological change to changes in technical efficiency and TFP (Total Factor Productivity). The results show that the technological change did not contribute significantly to the development of efficiency in all analyzed sector. However, the distribution of technical change suggests that the gap between the best and worst food processing companies increased within the analyzed period. On the other hand, the technological change was an important factor determining the TFP increase in all sectors. |
| Keywords: | Technological change, Technical efficiency, TFP, Czech food processing industry, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135782&r=tra |
| By: | Zagata, Lukas; Boukalova, Katerina |
| Abstract: | The paper focuses on the phenomenon farmers‘ markets in the Czech Republic. Boom of the farmers’ markets is used as an illustration for ongoing transition process within agrofood regime. The paper provides information about the incumbent regime (based on sale of food via large retail chain store) and the alternative initiative and its logic. The farmer’s markets have developed from previous marginal activities framed by the alternative food networks. Using the secondary sources and empirical material (16 interviews) there is in details described the mechanisms of anchorage that enables the initiative to gain new position in the regime. The analysis shows that the success of the initiative has been conditioned by several factors that have aligned and created a stable structure in the regime. |
| Keywords: | transition theory, niche, regime, FarmPath, food quality, retail chain stores, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135795&r=tra |
| By: | DELL'ANNO, Roberto (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); VILLA, Stefania (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | This paper analyses the impact of the speed of transition reforms on economic growth in transition countries in the context of the debate big-bang versus gradualist approach. It builds a new indicator for the speed of transition reforms based on a three-way principal component analysis. It shows that: (i) the speed of transition reforms Granger-causes economic growth and there is no reverse causation; (ii) the impact of contemporaneous speed of transition reforms on economic growth is negative but becomes positive in the longer horizon; and (iii) other factors, such as initial conditions and macroeconomic stabilization program, also drive economic growth. While the first two results are robust to different estimators, the impact of control variables depends on the econometric specification. |
| Keywords: | speed of transition; economic growth; three-way principal components analysis |
| JEL: | C33 C82 P21 P24 |
| Date: | 2012–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0122&r=tra |
| By: | Gajewski, Krzysztof; Pawłowska, Małgorzata; Rogowski, Wojciech |
| Abstract: | The purpose of the study was to identify factors which influence bank-firm relationships in Poland, herein identified with relationship banking. The results of empirical analysis have demonstrated that Polish firms readily establish single-bank relationships. The results of the econometric model, on two data panels, enabled verification of hypotheses concerning the determinants of relationship banking in Poland from the perspective of characteristics of firms, their crediting banks and macroeconomic environment. On the part of firms, the factors whose influence has been identified include: size, profitability, the manner of financing, investment activity, innovativeness, form of ownership, credit risk and facility size. On the part of the financial sector, the verification covered the influence of competition in the banking sector, competition on the part of the capital market and development of the banking sector. The study also concerned the impact of the business cycle on relationship banking in Poland. The study utilised panel data from different sources: B0300 report (NBP) in years 1997–2010, F-01/I-01 report (Central Statistical Office (GUS)) in years 2005–2010 and other aggregated data (NBP, WSE). |
| Keywords: | number of bank relationships; relationship banking |
| JEL: | C32 C41 G30 G21 |
| Date: | 2012–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42544&r=tra |
| By: | Sauer, Johannes; Davidova, Sophia; Gorton, Matthew |
| Abstract: | This paper empirically measures the prevalence of heterogeneous technologies in a sample of small-scale agricultural producers as an answer to structural conditions and market risks. Such risks are closely linked to the effects of land fragmentation and the degree of market integration. We use the empirical case of Kosovo as a transition country to investigate the efficiency effects of land fragmentation by simultaneously considering the effects of market integration. Different to previous studies, we assume that land fragmentation and market integration lead to the prevalence of heterogeneous technologies allowing farm households to respond more efficiently to exogenous price and policy shocks given their fragmentation and subsistence situation. The empirical work links the latent class frontier method to the estimation of a directional output distance function. We estimate beside primal technology measures also dual Morishima type elasticities of substitution investigating changes in production decisions based on relative shadow price changes. |
| Keywords: | Land fragmentation, market integration, farm households, Landfragmentierung, Marktintegration, Farmhaushalte, Kosovo, Land Economics/Use, O13, Q12, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:137385&r=tra |
| By: | Pechrova, Marie |
| Abstract: | Specific weaknesses of the Czech agriculture are “longstanding under-capitalization and credit burden on business, low level of support and market protection in comparison with other European countries prior accession to the EU and low level of financial means in the agricultural sector during the transformation process.” (Ministry of Agriculture, 2010) These factors are limiting the competitiveness of Czech farms. One of the ways how to combat these disadvantages is to invest to the modernisation of the agricultural sector, support innovations and their transmission into practice. Czech Republic can benefit from the European Agricultural Fund for Rural Development (EAFRD) under established Rural Development Programme (RDP). First priority axis of this program is devoted to increasing of competitiveness of agriculture and forestry. Measure I.1.1 Modernisation of agricultural holdings is aimed on investment promoting and improving the overall performance of the farm to increase its competitiveness. Measure I.1.2 Increasing of the economic value of forests has the same objective, but aims on forestry companies. The mid-term evaluation of the RDP evoked the question if the subsidised investments had contributed to the introduction of new products or services and technologies by the enterprises. The aim of this article is to answer the question if the subsidies on modernisation from the EU’s funds have statistically significant impact on the introduction of new technologies or products by agricultural holdings and thus enhancing their competitiveness. On the basis of performed statistical hypothesis testing, the author came to the conclusion that subsidies into modernisation of the agricultural and forestry holdings statistically significantly contributed to the introduction of new technologies and innovations. |
| Keywords: | Rural Development Program, agricultural and forestry holdings, modernisation, competitiveness, innovation, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135773&r=tra |
| By: | Burger, Anna |
| Abstract: | At the time of the 1990s transition in Hungary from a socialist to a capitalist economy a process of land reform took place. The land of large state and collective farms was privatized. The average size of these newly privatized land parcels was not more than about 4 ha; even now, after some concentration, it is 4.6 ha for individuals. It is obvious that farms of such a size are not viable in a modern economy. However, it is fortunate that, on average, land tenure is much more concentrated than land ownership. Thus there are larger individual farms and commercial farms which rent land from those – mainly absent – landowners who own the small plots of agricultural land. Nevertheless, there are still many small farmers. Many of them use their land to grow vegetables and fruits. Most of the individual small farmers operate on a subsistence or semi-subsistence level. But there are some, about 20%, who produce exclusively for the market, and about 20% sell a part of their products. There are small farmers who are well-specialized for open-air or covered vegetable production, mainly on the Great Hungarian Plain. Yet it is not easy for them to sell their produce. Markets are increasingly dominated by hyper-markets, super-markets and discount chains. The chains need steady supplies and standard varieties of fruits and vegetables in large quantities throughout the whole year. Obviously, these requirements can only be fulfilled by those traders who dispose of large quantities of products. That is why these suppliers are mainly large domestic farms, big cooperatives and importers. If small farmers want to fit successfully into the supply chain, considerable cooperation will be needed. |
| Keywords: | Hungary, small farmers, horticultural production, supply chain, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miscpa:138608&r=tra |
| By: | Rungsuriyawiboon, Supawat; Hockmann, Heinrich |
| Abstract: | This paper aims to understand the state of adjustment process and dynamic structure in Polish agriculture. A dynamic cost frontier model using the shadow cost approach is formulated to decompose cost efficiency into allocative and technical efficiencies. The dynamic cost efficiency model is developed into a more general context with a multiple quasi-fixed factor case. The model is implemented empirically using a panel data set of 1,143 Polish farms over the period 2004 to 2007. Due to the regional disparities and a wide variety of farm specialization, farms are categorized into two regions and five types of farm production specialization. The estimation results confirm our observation that adjustment is rather sluggish implying that adjustment cost are considerably high. It takes up to 30 years until Polish farmers reach their optimal level of capital and land input. Allocative and technical efficiency differ widely across regions. Moreover, efficiency is rather stable over time and among farm specialisations. However, their results indicate that the regions characterized by the larger farms perform slightly better. |
| Keywords: | Polish agriculture, dynamic efficiency, adjustment cost, shadow cost approach, Agribusiness, Agricultural and Food Policy, D21, D61, Q12, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135777&r=tra |
| By: | Curtiss, Jarmila; Jelinek, Ladislav |
| Abstract: | This paper examines allocative and cost efficiency implications of adopting variable-rate fertiliser application using survey data from Czech wheat farms. Data Envelopment Analysis delivered higher efficiency scores for precision farming (PF) adopters. Correcting for selection bias using a one-step endogenous switching regression reveals that farms displaying a lower cost efficiency score are less likely to adopt PF technology. Nonadopters switching to PF technology would likely be affected by a significant decrease in cost efficiency given their production conditions and/or managerial and technical skills. In line with this, results indicate that human capital and farm size increase the likelihood of PF adoption. Cost (allocative efficiency) implications of PF-related changes in input structure only, on the other hand, are not found to have an impact on the choice of technology. A positive allocative efficiency effect of PF technology is brought about mainly by a farm's ability to better extrapolate the soil's productive potential, which is insufficiently reflected in the land rental prices. The allocative as well as cost efficiency implications of PF technology are further related to technology-specific responses to various farm characteristics and technological practices. PF technology makes farms' efficiency more responsive to production conditions, farm specialisation, legal form and other technological practices. The overall efficiency effect the PF practices is, therefore, conditioned on farm characteristics. |
| Keywords: | Precision farming, cost efficiency, technical efficiency, allocative efficiency, Czech agriculture, endogenous switching regression, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135784&r=tra |