nep-tra New Economics Papers
on Transition Economics
Issue of 2013‒01‒07
47 papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. The impact of armed conflict on firms’ performance and perceptions By Carly Petracco; Helena Schweiger
  2. Social Fragmentation, Public Goods and Elections: Evidence from China By Gerard Padro i Miquel; Nancy Qian; Yang Yao
  3. China's Pure Exporter Subsidies By Fabrice Defever; Alejandro Riaño
  4. Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China By Prud'homme, Dan
  5. Resource Curse or Destructive Creation: A Tale of Crony Capitalism in Transition By Quan Hoang Vuong; Nancy K. Napier
  6. Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data By Pastore, Francesco; Tyrowicz, Joanna
  7. Russia’s Foreign Investments in 2011 By Ekaterina Iluykhina
  8. Russia’s Foreign Investments in 2010 By Ekaterina Iluykhina
  10. Financial system reforms and China’s monetary policy framework: A DSGE-based assessment of initiatives and proposals By Funke , Michael; Paetz , Michael
  11. Outlook of China’s State-Owned Enterprises Transformation By hu, yi
  12. Payments for ecological restoration and rural labor migration in China: The Sloping Land Conversion Program in Ningxia By Sylvie Démurger; Haiyuan Wan
  13. China Apparel in Textiles World Values Chains By Jean Ruffier
  14. Scaling Up from Smallholder Agriculture in China, North Branch River Vegetable Cooperative By Kimle, Kevin; Hongdong Guo
  16. Sustainable Agriculture and Rural Development in Terms of The Republic of Serbia Strategic Goals Realization within The Danube Region(preservation of rural values) By Cvijanović, Drago; Subić, Jonel; Andrei, Jean
  17. Competitiveness, innovation and regional development. The case of the Visegrad Group countries By Anna Golejewska
  19. TECHNICAL EFFICIENCY OF MACEDONIAN PIG FARMS By Petrovska, Marina; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Kotevska, Ana
  20. How Important is Total Factor Productivity for Growth in Central, Eastern and Southeastern European Countries? By Konstantins Benkovskis; Ludmila Fadejeva; Robert Stehrer; Julia Woerz
  21. Convertibility restriction in China’s foreign exchange market and its impact on forward pricing By Wang, Yi David
  22. LABOUR ADJUSTMENTS IN AGRICULTURE: EVIDENCE FROM ROMANIA By Tocco, Barbara; Davidova, Sophia; Bailey, Alastair
  23. What determines the export performance? A comparative analysis of China and India in the European Union By Ana Luísa Coutinho; Maria Paula Fontoura
  25. SAPPHO Revisited: Factors of Innovation Success in Knowledge-Intensive Enterprises in Central and Eastern Europe By Slavo Radosevic; Esin Yoruk
  26. Climate change policies and employment in Eastern Europe and Central Asia By Oral, Isil; Santos, Indhira; Zhang, Fan
  27. Real estate development enterprises in the Polish market and issues related to its analysis By Augustyniak, Hanna; Gajewski, Krzysztof; Łaszek, Jacek; Żochowski, Grzegorz
  28. Integration of China Stock Markets with International Stock Markets: An application of Smooth Transition Conditional Correlation with Double Transition Functions By M. Fatih Oztek; Nadir Ocal
  30. Innovation Strategies and Productivity in the Polish Services Sector in the light of CIS 2008 By Wojciech Grabowski; Krzysztof Szczygielski
  31. The environmental efficiency of organic farming in developing countries: a case study from China By Huanxiu GUO; Sébastien Marchand
  33. Analiza potencja³u konkurencyjnego polskich regionów By Anna Golejewska; Damian Gajda
  34. Natural resource and service-based export performance: Cuba after 1989 By Andres Cardenas O'Farrill
  35. Grain potentials on abandoned cropland in European Russia By Schierhorn, Florian; Muller, Daniel; Prishchepov, Alexander V.; Balmann, Alfons
  37. Human capital and regional growth perspective By Anna Golejewska
  38. Investment Financing and Financial Development: Firm Level Evidence from Vietnam By Conor O'Toole; Carol Newman
  39. ATTITUDES OF MACEDONIAN FARMERS TOWARDS EU ACCESSION By Kotevska, Ana; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Dimitrievski, Dragi
  40. Polarization of household saving in Poland during financial crisis 2007-2010 By Barbara Liberda; Marek Pęczkowski
  41. La distribuzione spaziale della migrazione interna in Polonia: un'analisi delle differenze tra aree urbane e rurali By Di Berardino , Claudio
  42. Biodiversity Conservation: Concepts and Economic Issues with Chinese Examples By Tisdell, Clement A.
  43. Historical Sources of Institutional Trajectories in Economic Development : China, Japan, and Korea Compared By Masahiko Aoki
  46. On the fungibility of spending and earnings -- evidence from rural China and Tanzania By Christiaensen , Luc; Pan, Lei
  47. ECONOMIC PERFORMANCES OF DAIRY INDUSTRY IN BOSNIA AND HERZEGOVINA IN TRANSITION By Ognjenovic, Dragana; Bajramovic, Sabahudin; Nikolic, Aleksandra

  1. By: Carly Petracco (EBRD); Helena Schweiger (EBRD)
    Abstract: This study is the first to explore the short-run impact of armed conflict on firms’ performance and their perceptions of the business environment. We focus on the August 2008 conflict between Georgia and Russia and use the Business Environment and Enterprise Performance Survey data before and after this armed conflict. We can exploit the variation in armed conflict exposure to identify these relationships. The difference-in-differences estimates suggest that despite the short duration, armed conflict had a significant and negative impact on exports, sales and employment for at least a subset of firms. Perceptions of a few business environment obstacles were also affected, but not necessarily negatively. The results suggest that young firms experienced a scarring effect, which could lead them to close down prematurely. Longer-term impacts of the conflict on firms’ performance and local economic development can therefore not be ruled out.
    Keywords: Armed conflict, Georgia, business climate, firm performance
    JEL: D74 O17 O43 R30
    Date: 2012–12
  2. By: Gerard Padro i Miquel; Nancy Qian; Yang Yao
    Abstract: This study examines how the economic effects of elections in rural China depend on voter heterogeneity, for which we proxy with religious fractionalization. We first document religious composition and the introduction of village-level elections for a nearly nationally representative sample of over two hundred villages. Then, we examine the interaction effect of heterogeneity and the introduction of elections on village-government provision of public goods. The interaction effect is negative. We interpret this as evidence that voter heterogeneity constrains the potential benefits of elections for public goods provision.
    JEL: O38 O43 P16 P35
    Date: 2012–12
  3. By: Fabrice Defever; Alejandro Riaño
    Abstract: One third of Chinese exporters sell more than ninety percent of their production abroad. We argue that this distinctive pattern is attributable to a wide range of subsidies that provide incentives to these "pure exporters". We propose a heterogeneous firm model in which firms exporting all their output receive an ad-valorem sales subsidy. Using microdata on manufacturing firms matched with custom transactions for the years 2000-2006, we measure sizable differences in productivity and paid taxes between pure exporters and domestic firms and between pure and regular exporters, in line with the predictions of our model. Embedding a pure-exporter subsidy in a two-country general equilibrium environment, we show that this instrument is worse from a welfare standpoint than a standard export subsidy, partly because it increases protection of the domestic market. A counterfactual analysis suggests that eliminating these subsidies would result in a welfare gain for China comparable to halving its trade costs.
    Keywords: Trade policy, export subsidies, heterogeneous firms, China
    JEL: F12 F13 O47
    Date: 2012–12
  4. By: Prud'homme, Dan
    Abstract: This study’s statistical analysis shows that patent quality and innovation in China deserve improvement, and an in-depth legal, management science, and economic analysis in the study shows that various patent-related policies and practices actually hamper patent quality and innovation in China. Over 50 recommendations for reform are provided. The study is divided into four chapters, summaries of which are as follows: Chapter 1: Although China became the world leader in quantity of domestically filed patent applications in 2011, the quality of these patents needs improvement. Also, while certain innovation in China is rising, the country’s actual innovation appears overhyped by some sources. Chapter 2: There appears to be an overly heavy focus on government-set quantitative patent targets in China, which can hamper patent quality and innovation. This overemphasis involves over 10 national-level and over 150 municipal/provincial quantitative patent targets, mostly to be met by 2015, which are also linked to performance evaluations for SoEs, Party officials and government ministries, universities and research institutes, and other entities. Chapter 3: China has a wide-range of other policies, many of which are at least partially meant to encourage patents, that can actually discourage quality patents, and highest-quality patents in particular, and innovation. Examples of these policies include a variety of measures with requirements for “indigenous intellectual property rights” that are linked to financial incentives (many of which are unrelated to government procurement); a range of other government-provided financial incentives for patent development (e.g. certain patent filing subsidies); inappropriate inventor remuneration rules; discriminatory standardisation approaches; and a wide range of others. Chapter 4: There are a host of concerns surrounding rules and procedures for patent application review and those for enforcement of patent disputes that can hamper building of quality patents and innovation in China. These include concerns about abuse of patent rights, difficulties invalidating utility models, and a wide range of other issues.
    Keywords: China's innovation; indigenous innovation policies; innovation incentives; patent quality; China's patent targets; China's patent policy; patent enforcement
    JEL: O38 P48 O33 O32 K11 O3 K2 L51 K3 O34 O2 O39 D23 D03 O31
    Date: 2012–08
  5. By: Quan Hoang Vuong; Nancy K. Napier
    Abstract: This paper explores the “resource curse” problem as a counter-example of creative performance and innovation by examining reliance on capital and physical resources, showing the gap between expectations and ex-post actual performance became clearer under conditions of economic turmoil. The analysis employs logistic regressions with dichotomous response and predictor variables, showing significant results.Several findings that have use for economic and business practice follow. First, in a transition period, a typical characteristic of successful firms was their reliance on either capital resources or physical asset endowments, whereas the innovation factor was not significant.Second, poor-performing enterprises exhibited evidence of over reliance on both capital and physical assets. Third, firms that relied on both types of resources tended to downplay creative performance. Fourth, reliance on capital/physical resources and adoption of “creative discipline/innovations” tend to be mutually exclusive. In fact, some evidence suggests that firms face more acute problem caused by the law of diminishing returns in troubled times. The Vietnamese corporate sector’s addiction to resources may contribute to economic deterioration, through a downward spiral of lower efficiency leading to consumption of more resources. The “innovation factor” has not been tapped as a source of economic growth. The absence of innovations and creativity has made the notion of “resource curse” become identical to “destructive creation” implemented by ex-ante resource-rich firms, and worsened the problem of resource misallocation in transition turmoil.
    Keywords: Organization of Production; Firm Behavior; Business Economics; Creativity/Innovation Processes
    JEL: D21 L23 M21 O31
    Date: 2012–12–17
  6. By: Pastore, Francesco (University of Naples II); Tyrowicz, Joanna (Warsaw University)
    Abstract: This paper aims to study whether the local variation in unemployment rates is related to labour turnover and what is the sign of such relationship. In addition, the paper aims to assess the relative impact of inflow and outflow from unemployment on the dynamics of the local unemployment rate. The empirical analysis is based on a newly available unique dataset from the employment registry of a transition economy (Poland), encompassing nine years of monthly data (from 2000 to 2008) at a county (poviat) level. We find that turnover, as well as inflows and outflows separately, are ceteris paribus positively related to the unemployment level. This general conclusion is robust to sub-sampling that addresses potential heterogeneity of the analysed local labour markets. It is also robust to the use of different panel estimators as well as for spatial clustering of poviats. We also find that elasticity is larger in the case of the inflow rate than for the outflow rate. Finally, we demonstrate that the effect is stronger in low unemployment regions.
    Keywords: regional unemployment, labour turnover, panel data, Poland
    JEL: C33 J63 P25 P52 R23
    Date: 2012–12
  7. By: Ekaterina Iluykhina (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with the flow of foreign investments in the Russian Federation
    Keywords: Russian economy, foreign investments
    JEL: E22
    Date: 2012
  8. By: Ekaterina Iluykhina (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with the flow of foreign investments in the Russian Federation
    Keywords: Russian economy, foreign investments
    JEL: E22
    Date: 2012
  9. By: Svrznjak, Kristina; Franic, Ramona
    Abstract: The paper analyzes the disposal of state-owned agricultural land in the Republic of Croatia in comparison with the countries of Central and Eastern Europe (CEE) that went through similar agrarian reforms. There are 890,214 ha of state-owned agricultural land in Croatia. The data shows that Croatia has not managed to accomplish the goals set by Programs for the disposal of state-owned agricultural land and only 20.6% of the state-owned agricultural land is offered for disposal by public tenders (sales, lease, concession, return and other purposes), similar to CEE. Therefore, the disposal of stateowned agricultural land is primarily important for the consolidation of farms and increasing their current average size.
    Keywords: state-owned agricultural land, state-owned land disposal, agricultural land consolidation, Land Economics/Use,
    Date: 2012–10–25
  10. By: Funke , Michael (BOFIT); Paetz , Michael (BOFIT)
    Abstract: This paper evaluates various financial system reform initiatives and proposals in China in a DSGE modelling setting. The key reform steps analysed include phasing out benchmark interest rates, deepening the direct finance market, reducing government’s quantity-based intervention on financial institutions. Our counterfactual model simulation results suggest that the reforms will be beneficial only, if Chinese monetary policy continues to rely on quantity-based interventions on financial institutions or tightens the interest rate rule.
    Keywords: DSGE model; financial sector reform; monetary policy; China
    JEL: E42 E52 E58
    Date: 2012–12–11
  11. By: hu, yi
    Abstract: This paper created a framework for a dynamic institutional analysis. (1) Reduction of the conviction and motivation inside economic factors (We think that this is the inducing factors of system changes ), (2) system changes will be ultimately beneficial to the efficiently allocation of resources, (3) the typical economic factors. This is from the old institutional analysis framework, Mr. Frank Knight's economic thought and historical materialism. Based on this analytical framework, we researched Transformation of China's state-owned enterprises, we come to conclusion that it is the time for the market forces play an basic role in the allocation of resources.
    Keywords: dynamic institutional analysis; conviction; soft system
    JEL: B25
    Date: 2012–05–17
  12. By: Sylvie Démurger (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Haiyuan Wan (Department of Social Development, National Development and Reform Commission - National development and reform commission)
    Abstract: This paper analyses the impact of the Sloping Land Conversion Program (SLCP) on rural labor migration in China. We use recent survey data from Ningxia Hui Autonomous Region and a difference-in-difference approach to assess the impact of the policy on labor migration decision. We find a significant effect of the policy: the migration probability increase due to the SLCP policy amounts to 17.5 percentage points in 2008. Furthermore, we highlight the role of policy duration in strengthening the impact of the program on migration. We also find that young, male and Hui nationality individuals are more likely to be impacted by the policy.
    Keywords: Sloping Land Conversion Program; Labor migration; Policy evaluation, China
    Date: 2012–12–13
  13. By: Jean Ruffier (ISEOR - Institut de Socio-économie des Entreprises et des ORganisations - Institut d'Administration des Entreprises (IAE) - Lyon - Université Jean Moulin - Lyon III)
    Abstract: This paper analyses the expansion of China's clothing industry in world textile value chains. Using data from interviews and observations throughout factory visits in China and other countries we show how private Guangdong entrepreneurs started China's clothing manufacturing. Lacking experience in consumer markets and designing, original equipment manufacturing was the route Chinese firms took to expand into garment manufacturing. Low wages and low margins of profits became their original source of competitiveness and rising shares in global market sales. These beginnings saw little direct support from both national and local government policies, though few barriers were erected to restrict the growth of these firms. However, although China has managed to secure a huge slice of the world market in garment sales, it continues to specialize in the low value-added segments of value chains. The paper concludes by considering options Chinese entrepreneurs have for exploring upgrades within garment value chains.
    Keywords: China, clothing, Global Value Chains, labour conditions
    Date: 2012–10–01
  14. By: Kimle, Kevin; Hongdong Guo
    Abstract: Zhang Guan liang is a Chinese agricultural entrepreneur, who lives in Fuyang, China. In 2009, he founded North Branch River Vegetable Cooperative, with a vision of creating a vegetable production and distribution entity of significant scale.  He has successfully launched the venture, with more than 200 farmers producing vegetables for it.  Today, he faces significant challenges to further growth; some common to entrepreneurs, others unique to agriculture, and others unique to growing an agricultural venture in China.  The case charts Zhang’s efforts to increase production capacity, access growth capital, and manage food safety issues.  In a larger sense, the case charts the agrifood supply chain struggles that are particularly acute in China today.
    Keywords: Teaching Case; China; Smallholder Agriculture; Cooperative; Agricultural Entrepreneurship
    Date: 2012–12–29
  15. By: Kuhar, Ales; Erjavec, Emil; Borovsak, Katarina
    Abstract: The main objective of this article is to present an overview of the Slovenian food industry economic development in the period before the Slovenian EU accession and the first five years of the EU membership. The accession to the EU was certainly the most comprehensive change of economic environment since the state gained its independence. Nevertheless, already during the pre-accession period the changes intensified restructuring processes and increased pressures to the business performance of the sector. The agro-food industrial complex, however, is among the sectors of the acceding economies for which EU enlargement traditionally brings the most radical changes. Price level and cost differences, hardly comparable production structures, but mostly disparities in types and comprehension of the economic policies required large adjustments and caused notable economic pressures. Based on a framework of economic indicators the paper tries to answer some of the most recurrent questions related to the restructuring process of Slovenian food industry in the last decade. First we present past sectoral business performance using the appropriate mezzo-economic accountancy indicators, whereas in the central part of the paper four key restructuring determinants are analysed and commented. The determinants are formulated into the four relevant questions dealing with cost-price developments, relations in the Slovenian agro-food chain, developments of the international trade and trends in the budgetary transfers to support competitiveness. Results confirm that the economic restructuring which had been hindered in the Slovenian food industry during the last decade has been triggered radically after EU accession. This brought to the termination of favourable economic conditions in the highly protected domestic market and deteriorated radically the business performance, and only those food companies which will restructure proactively will sustain in the EU markets.
    Keywords: EU accession, restructuring, Slovenia, food processing industry, Agricultural and Food Policy,
    Date: 2012–10–25
  16. By: Cvijanović, Drago; Subić, Jonel; Andrei, Jean
    Abstract: International Scientific Meeting „Sustainable Agriculture and Rural Development in Terms of The Republic of Serbia Strategic Goals Realization within The Danube Region“ (preservation of rural values), which be held in period 6-8th December 2012 on mountain Tara (Republic Serbia), through major number of presented papers provides an overwiew of results of scientific research on the integrated and interdisciplinary project „Sustainable agriculture and rural development in terms of the Republic of Serbia strategic goals realization within the danube region“. International Scientific Meeting „SUSTAINABLE AGRICULTURE AND RURAL DEVELOPMENT IN TERMS OF THE REPUBLIC OF SERBIA STRATEGIC GOALS REALIZATION WITHIN THE DANUBE REGION“ (preservation of rural values), gathered major number of scientific and experts researchers from about the countries. Besides the authors from Republic Serbia in papers are represented and authors from Romania, Bulgaria, Russian Federation, Bosnia and Herzegovina, Hungary, Netherland and Macedonia, Poland. In frame of the Proceedings, is positively evaluated by the reviewer and presented on the Scientific Meeting 91 paper and it is published in the Proceeding. Publisher is Institute of Agricultural Economics, Belgrade, together with 38 eminent scientific and educational Institution from Serbia and foreing. In the Plenary section was presents three (3) papers which stand out with their contributions to our Scientific Meeting. Rest of the paper are systematized in three (3) sections. Represent and published papers are systematized in three (3) thematic section: I SUSTAINABLE DEVELOPMENT AS A MODERN DEVELOPMENTAL APPROACH IN PRESERVATION OF AGRICULTURE AND RURAL VALUES (in this section represented 41 papers); II STRATEGIC PLANNING AND INSTITUTIONAL-POLITICAL DIMENSION OF AGRARIAN AND RURAL DEVELOPMENT (in this section represented 13 papers); III AGRIBUSINESS OF RURAL AREAS, DIVERSIFICATION AND COMPARATIVE ADVANTAGES OF RURAL ECONOMY (in this section represented 34 papers).
    Keywords: agricultural economics; rural economy; agricultural investments and business; agricultural policy
    JEL: J43 Q0 N5 Q01 P32
    Date: 2012–11–02
  17. By: Anna Golejewska (Faculty of Economics, University of Gdansk)
    Abstract: The paper relates to factors determining regional competitiveness in Poland, the Czech Republic, Hungary and Slovakia - the Visegrad Group. The study starts from a comprehensive survey of the literature on regional competitiveness and the potential effects of innovation. The theoretical section is supplemented by empirical one. The aim of the empirical analysis is to investigate the regional diversity of innovativeness and competitiveness in the group of 35 regions (NUTS 2 level) over the period 2001-2008. It is based on one data source: Eurostat Regional Statistics. I applied two classical methods of cluster analysis. The results of non-hierarchical k-means clustering algorithm were compared with the results of hierarchical Ward’s method. The results for the Visegrad Group show faster development of capital regions and diversity of regional competitiveness and innovativeness. According to the results, one can suppose that innovative inputs were transformed in innovative outputs and that innovations had a positive and growing impact on regional competitiveness in the Visegrad Group, however further research is still needed. The major conclusion of the cluster analysis is that the development of regions in the Visegrad Group depends on their nationality – regions cluster within borders. Analysing the results, one should not forget that they are based on selected variables, which are a resultant of –in some measure- random choice and data accessibility.
    Keywords: regional competitiveness, regional growth, innovation, cluster analysis, Central and Eastern European Countries
    JEL: R11 C38 P25
    Date: 2012–12
  18. By: Kopecek, Petr; Kopp, Ondrej; Schmidtova, Barbora
    Abstract: The paper examines the development of the Czech transition agriculture through profitability without supports (R-S) and profitability with supports (R+S) of the dairy breeding, resp. milk production on the period 2002 – 2011. For this particular branch of agriculture the accession of the CR to the EU has meant an important change of the agrarian policy, which transformed from the pure national (Czech) agrarian policy into the European CAP. There was proved that profitability R+S in the pre-accession period (period I = 2002-2003) was slightly positive for dairy sector. In connection with the membership of CR in EU agricultural supports significantly increased for dairy sector as the consequence of applying of CAP on the Czech agriculture. Therefore there were monitored in the period II (2004-2008) important positive changes of the indicator R+S for milk commodity. In the connection with the volatility of producer prices and costs increasing in the period III (2009-2001) there was found important downgrade of this indicator.
    Keywords: Common Agricultural Policy, milk, transition economics, supports, profitability, Agricultural and Food Policy, Q12, Q18,
    Date: 2012–10–25
  19. By: Petrovska, Marina; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Kotevska, Ana
    Abstract: The economic transition and market globalization processes has triggered structural changes in the Macedonian agriculture. Pig producers face challenges to meet the new market requirements and regulations which cause inefficient and less competitive production compared to foreign markets. This paper aims to identify the level of technical efficiency on pig farms in the Republic of Macedonia. Data Envelopment Analysis approach is used to measure the exact quantity of inputs used in the production in relation to a given quantity of output. Furthermore, the data are analysed by making comparative analyses of the managerial behaviour and other non-measurable variables that influence the efficiency. The results determine what managerial activities influence on the efficiency. They indicate the type and level of inputs that need to change and the quantity of output that need to increase for the farms to reach the same technical efficiency as the most successful farmers.
    Keywords: Data Envelopment Analysis, Technical efficiency, Macedonian pig farms, Farm Management, C81, D57, Q12,
    Date: 2012–10–25
  20. By: Konstantins Benkovskis; Ludmila Fadejeva; Robert Stehrer; Julia Woerz
    Abstract: The evolution of total factor productivity (TFP) is a key determinant of long-run economic growth of a country. In this paper we analyse the contributions from technological change at the industry level to an economy's aggregate growth performance. Our derivation of total TFP growth entails three major improvements over the traditional Solow residual approach. First, we allow for non-constant returns to scale as well as changes in the utilisation of input factors in our estimation of industry TFP growth. Second, we use a novel approach to aggregate TFP from industry level to macro level, which incorporates both direct and indirect effects through intermediate linkages within an economy. Third, we take account of open economy characteristics by assigning an explicit role to terms-of-trade shocks. Our calculations for the sample of 10 Eastern European EU Member States over the time period from 1995 to 2009 are based on the newly available World Input-Output Database (WIOD).
    Keywords: total factor productivity, terms of trade, utilisation, input-output table, Central, Eastern and Southeastern Europe
    JEL: C23 D24 E23 O47
    Date: 2012–12–20
  21. By: Wang, Yi David (BOFIT)
    Abstract: In contrast to the well established markets such as the dollar-euro market, recent CIP deviations observed in the onshore dollar-RMB forward market were primarily caused by conversion restrictions in the spot market rather than by changes in credit risk and/or liquidity constraint. This paper proposes a theoretical framework by which the Chinese authorities impose conversion restrictions in the spot market in an attempt to achieve capital flow balance, but face the tradeoff between achieving such balance and disturbing current account transactions. Consequently, the level of conversion restriction should increase with the amount of capital account transactions and decrease with the amount of current account transactions. Such conversion restriction in turn places a binding constraint on forward traders’ ability to cover their forward positions, resulting in the observed CIP deviation. More particularly, the model predicts that the onshore forward rate will equal a weighted average of the CIP-implied forward rate and the market’s expectation of the future spot rate, were the weighting is determined by the level of conversion restriction. As a secondary result, the model also implies that offshore non-deliverable forwards reflect the market’s expectation of the future spot rate. Our empirical results are consistent with these predictions.
    Keywords: forward foreign exchange; China; convertibility
    JEL: F30 F31 F33
    Date: 2012–11–27
  22. By: Tocco, Barbara; Davidova, Sophia; Bailey, Alastair
    Abstract: This paper explores the process of structural change in the post-transition Romania. A multinomial logit provides the technique to investigate the determinants of labour adjustments in the period 2003-06.The results suggest that male, younger and better educated individuals are more likely to leave agriculture and flow to industry and services, whereas self-employed farmers and family workers are less inclined to leave the agricultural sector. The findings are important from a policy point of view, suggesting the need for investments in human capital specifically in education with the purpose of enhancing the mobility of labour and facilitating a more efficient labour allocation. At the same time favourable labour market conditions need to be in place to sustain job creation and a smooth transition across activities.
    Keywords: labour adjustments, inter-sectoral movements, agriculture, multinomial logit, Romania, Labor and Human Capital, J24, J43, J62, O13, Q12,
    Date: 2012–10–25
  23. By: Ana Luísa Coutinho; Maria Paula Fontoura
    Abstract: This paper aims to assess the competitiveness of exports of manufactured goods from China and India to the European Union in the 2000s. The empirical analysis is based on two methodologies: (i) a Constant Market Share analysis which allows to decompose the export growth to the European market into several components including an effect usually related to competitiveness, and (ii) an analysis based on the combination of revealed comparative advantage indexes with a geographic orientation of trade which allows to identify the products of China and India that appear to have export potential.
    Keywords: China, India, Competitiveness, European Union, Constant Market Shares Technique, Trade Potential.
    Date: 2012–10
  24. By: Bogdanov, Natalija; Rodic, Vesna; Vittuari, Matteo
    Abstract: The systemic and structural reform of the agribusiness sector in Serbia began following the political changes in 2000, after a decade of isolation and economic disruption. In the meantime, the competitive advantages of Serbian agriculture in comparison with the other countries in the region were lost. Serbia’s path to reform, its dynamic and the achieved results show a strong similarity with the CEECs, but due to differences in resource availability and in initial market conditions there are also differences between the countries. In this paper the main features of structural changes in the Serbian agricultural sector, in comparison with other transition countries in the region, has been described, the basic factors which have contributed to these changes have been identified and explained, and the key consequences of this process and the related aspects have been examined.
    Keywords: structural changes, transition, agriculture, Serbia, Agricultural and Food Policy, Q10,
    Date: 2012–10–25
  25. By: Slavo Radosevic; Esin Yoruk
    Abstract: This research investigates the mutual and diverging factors for successful and less successful innovations in software and manufacturing of machine tools in Central and Eastern Europe (CEE). We apply univariate and multivariate analyses on 115 indicators by revisiting the seminal SAPPHO project based on the analysis of pairs of innovations and conducted at SPRU – Science and Technology Policy Research during the 1970s. We aim to identify principal factors influencing firm success in innovation in the context of CEE and compare our results to those of SAPPHO and see whether any changes took place during the last 40 years in this context after several decades of globalization. Our initial findings from a database of 90 innovations and 45 pairs of innovations – introduced onto the market during the period 2007-2010 - from 51 CEE enterprises demonstrate that, in particular, user and market-driven factors differentiate successful innovations from less successful ones. Our results fully confirm the continuing relevance of SAPPHO results and methodology. Successful innovators have stronger user orientation and better understanding of market demand. Although, CEECs are catching up economies, continuous and strategic R&D and innovation collaboration is essential to generation of greater commercial success from innovation activities. Given the catching-up character of the CEECs this is surprising result which may reflect knowledge-intensive nature of two sectors which form the basis of our sample. Results of this research clearly demonstrate that orientation of the CEEC innovation policies is inconsistent with the characteristics and behaviour of successful innovators.
    JEL: O32
    Date: 2012
  26. By: Oral, Isil; Santos, Indhira; Zhang, Fan
    Abstract: This paper analyzes the differential impact of climate change policies on employment in Eastern Europe and Central Asia. In particular, the paper examines (i) how vulnerable labor markets are in Eastern European and Central Asian countries to future carbon regulation, and (ii) what countries can do to mitigate some of the potential negative effects of these regulatory changes on employment. In many aspects, the nature of the shock associated with climate regulation is similar to that associated with an increase in energy prices. Constraints on carbon emissions put a price on climate-damaging activities and make hydrocarbon-based energy production and consumption more expensive. As a result, firms in energy-intensive industries may react to higher energy prices by reducing production, which in turn would lead to lower employment. In the presence of frictions in labor markets, these sector shifts will cause resources to be unemployed, at least in the short term. Using principal component analysis, the paper finds that Eastern European and Central Asian countries vary greatly in their vulnerability and adaptability of employment to carbon regulation. Since the economy takes time to adjust, policy-makers will need to ensure that the incentives are there for new firms to emerge and employ workers, and that workers have the skills to respond to that demand. Moreover, governments have a role to play in ensuring that workers that are displaced have a proper safety net that will not only help in protecting their welfare, but will also allow workers to make more efficient labor market transitions.
    Keywords: Labor Markets,Energy Production and Transportation,Markets and Market Access,Labor Policies,Climate Change Economics
    Date: 2012–12–01
  27. By: Augustyniak, Hanna; Gajewski, Krzysztof; Łaszek, Jacek; Żochowski, Grzegorz
    Abstract: We analyse the real estate developer sector in Poland and explain how the housing construction process is financed. The main economic indicators that are used in the profitability analysis are explained in detail. Moreover, we analyse the real estate developer business plan and propose a model to analyse the housing construction process, focusing on the accounting of costs and profits.
    Keywords: Real estate development; construction process analysis; business plan
    JEL: O18 R31 M21
    Date: 2012–08
  28. By: M. Fatih Oztek (Department of Economics, METU); Nadir Ocal (Department of Economics, METU)
    Abstract: This paper employs STCC-GARCH and DSTCC-GARCH models to investigate the time varying return co-movements between Chinese stock markets and stock markets of the US, UK, France and Japan. Unlike the earlier literature, we uncover that there are noticeable rising trends in conditional correlations among these markets particularly following the financial reforms in China. Moreover, the empirical results of DSTCC-GARCH specifications with time and various volatility measures indicate that the correlations increase not only over time but also during calm periods for A-shares, though mixed results are obtained for B-shares.
    Keywords: Multivariate GARCH, Smooth Transition Conditional Correlation, Stock Markets Integration and Co-movements
    JEL: C32 C58 F36 G15
    Date: 2012–12
  29. By: Trmcic, Snezana; Milinkovic, Ozrislava; Trmcic, Marko
    Abstract: Small and Medium Enterprise (SME) development is one of the key factors in the process of European Integration of Serbia. SMEs are significant source of business relations with other European countries and significantly help the process of integration of Serbia into the broader European economic framework. The European Union (EU) pays particular attention to the development of SMEs and the European Commission in the June 2008 adopted a special document entitled “Small Business Act for Europe” which establishes the principles and actions for the activities in the SME sector in EU countries. Purpose of this essay is to stress on the importance of SME development in Serbia as the engine of economic development with special emphasis on agribusiness in transition period in the process of European integration of Serbia.
    Keywords: SME development, agriculture / organic farming, European Integration, Republic of Serbia, Agribusiness,
    Date: 2012–10–25
  30. By: Wojciech Grabowski; Krzysztof Szczygielski
    Abstract: Industry - and firm-level research into both innovations and productivity has long been limited to manufacturing. With this paper, we aim to contribute to the stream of literature that aims at extending the scope of such investigations to the services industry. To this end we analyze the innovation strategies in several service sectors in Poland in 2008 and examine their relationship to productivity. Our results show that service firms differ considerably in their innovation strategies, but that most of those strategies lead to productivity gains.
    Keywords: Private sector development, innovation and knowledge-based economy, Europe, strategy of innovation, Poland
    JEL: L80 O31 L25
    Date: 2012–12
  31. By: Huanxiu GUO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sébastien Marchand (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: In this case study, we attempt to re-evaluate the performance of organic farming in developing countries using the indicator of Environmental Efficiency (EE) within the framework of Stochastic Frontier Analysis (SFA). A set of plot-season level panel data was collected from an NGO-led organic paddy rice project in southern China. This original dataset is used to calculate EE scores across both the organic and conventional plots. Our two-stage analysis reveals two essential points. First, in poor rural areas, organic farming doesn't systematically reduce the pure nitrogen input for paddy rice production. In order to maintain the yield, organic farmers may apply the same, or an even greater quantity of pure nitrogen than conventional farmers. Second, organic farming loses its environmental efficiency in the scaling up period due to the excessive pure nitrogen input. Therefore, we argue that beyond the simple substitution of chemical fertilizer by organic fertilizer, more sustainable organic farming necessitates additional e fforts on the control of nutrient input.
    Keywords: Organic farming;Environmental efficiency;Stochastic frontier analysis;China
    Date: 2012–12–11
  32. By: Toth, Orsolya
    Abstract: After the political, economic and social transformation in 1989-1990 the farm structure in Hungary became undoubtedly more diverse than earlier and many unfavourable features have appeared such as: fragmented holding and bipolar property structure, low technical, technological, educational and living standards, and high unemployment rate especially in the rural areas. These disadvantageous points currently exist permanently although a modest improvement has started. The new farm structure is radically different from the characteristics of the main competitors, mainly to other EU Member States. The past two decades after the political and economic transition have been enough time to appreciate the characteristics and the main changes in the farm structure so current relevance of the topic is unquestionable. Viability, subsistence and competitiveness are significant concepts which could be measured by the profitability of the agricultural holdings. It is very important to define the main criteria of viability, subsistence and competitiveness but we should not forget the multifunctional role of agriculture as this could solve very important challenges especially in maintaining the rural population, helping their livelihoods, providing moral and mental support, and maintaining the landscape. It should be emphasised that this research is only a first to step in examining the main changes in the Hungarian farm structure and in the future the study will be extended.
    Keywords: transformation, farm structure, competitiveness, profitability, sustainability, Agricultural and Food Policy, Land Economics/Use, Q15,
    Date: 2012–10–25
  33. By: Anna Golejewska (Faculty of Economics, University of Gdansk); Damian Gajda (Faculty of Management, University of Gdansk)
    Abstract: The paper relates to factors determining regional competitiveness in Poland. The aim of the empirical analysis is to compare competitive ability of regions in Poland (NUTS-2 level) in 2001-2010 and to verify the existence of clusters. It is based on two data sources: Eurostat Regional Statistics and Local Data Bank (The Central Statistical Office). Polish regions differ essentially in historical, geographical, economic and social dimension. The cluster analysis comprises seven idicators: patent applications to the EPO, share of core Human Resources in Science and Technology, R&D expenditure, share in lifelong learning, share of population with tertiary education, longterm unemployment rate and employment in sectors J and K. We apply two classical methods of cluster analysis: hierarchical Ward’s method and non-hierarchical k-means clustering algorithm. The results confirm substantial diversity of competitive potential of Polish regions and its changes in the analysed period, as well as ambiguous influence of chosen determinants on competitive positions of particular regions. Further research is still needed.
    Keywords: regional competitiveness, Poland, cluster analysis
    JEL: R11 P25 C38
    Date: 2012–12
  34. By: Andres Cardenas O'Farrill
    Abstract: This article sets out to examine the growth strategy promoted by the Cuban government in the aftermath of the economic crisis of the 90s. This crisis, catalyzed by the collapse of the Soviet Union and Eastern European communism, imposed on Cuba the need for both new interna-tional insertion patterns and therefore a redesign of its development strat-egy. Without reaching the pre-crisis levels, this strategy led, however, to a significant recovery of GDP during the period 1994-2008. Nevertheless, the stagnation of the tourism industry and the fluctuation of international nickel prices have made it necessary to rethink the current development strategy. Here it is argued that the strategy of mostly relying on low-tech-, natural-resource- or service-based activities will not raise the life standards of the Cuban population. A sustainable development strategy in the long term means to upgrade and introduce industries, such as bio-technology, which contain manufacturing capabilities that can prove competitive on the international level. This is consistent with the histori-cal evidence on economic development and innovation; but also with the performance shown by the Cuban economy during the last 20 years.
    Date: 2012–12
  35. By: Schierhorn, Florian; Muller, Daniel; Prishchepov, Alexander V.; Balmann, Alfons
    Abstract: Paper prepared for presentation at the "Annual World Bank Conference on Land and Poverty", World Bank, Washington, D.C., April 23-26, 2012
    Keywords: Post-Soviet corpland change, agricultural abandonment, grain potentials, spatial model, Russia, Agricultural and Food Policy, Land Economics/Use, Production Economics,
    Date: 2012
  36. By: Adamski, Marcin; Sobierajewska, Jolanta; Zielinski, Marek
    Abstract: The aim of this paper is the economic and financial condition of the test group of Agricultural Property Agency companies. We used horizontal and vertical analysis of profit and loss accounts and in-depth indicator analysis. We focus on the period 2001-2009, in view of the fact that it was a specific period for APA companies, mainly due to the implementation of a broad restructuring, including through substantial investments. In the analysed eight-year period (which covers the time before and after Polish accession to the EU), APA plant and animal breeding companies were characterised by a positive ratio of profitability of business activity. In respect of APA companies, an analysis of the return on equity showed that in the whole discussed period, it was characterised by a positive level. The animal breeding companies had the highest return on equity (ROE) (average of 6.1%), subsequently, plant companies had a 3.6% average, while the so-called ‘horse’ companies (horse and stallion studs) had a 0.7% average.
    Keywords: breeding companies, economic efficiency, Agribusiness, Agricultural Finance,
    Date: 2012
  37. By: Anna Golejewska (Faculty of Economics, University of Gdansk)
    Abstract: Accumulation of human capital is one of the major determinants of economic growth. In the last decades, theoretical and empirical literature has analysed this issue at regional level, providing interesting results. The analysis focuses on 35 regions of the Visegrad Group (NUTS-2 level) in 2002-2009 and is based on Eurostat Regional Statistics. The objective of it was to compare competitiveness and human capital intensity in the Visegrad Group regions, verify the existence of correlation and thus potential human capital growth effects. The analysis comprised two groups of indicators: measures of competitive position and human capital education indicators, as measures of competitive ability. The results showed that there have been and continue to be substantial differences among the regions as regards competitiveness and human capital. This paper has contributed to confirming the positive link between education and regional competitiveness in the selected group of countries, however further research is still needed.
    Keywords: regional competitiveness, human capital, Central and Eastern European Countries
    JEL: R11 J24 P25
    Date: 2012–12
  38. By: Conor O'Toole (Department of Economics, Trinity College Dublin; Department of Agricultural Economics and Farm Surveys, Teagasc; Economic Analysis Division, Economic and Social Research Institute, Ireland); Carol Newman (Department of Economics and Institute for International Integration Studies, Trinity College Dublin)
    Abstract: We explore whether financial development reduces external investment financing constraints for firms. Within-country provincial measures of financial development are linked to investment usingdata from the Vietnamese enterprise survey (VES). We focus on three main aspects of financialdevelopment: financial sector depth, state interventionism in finance, and the degree of marketdriven financing in the economy. We find that financial development reduces investment financing constraints. Constraints are decreasing in credit to the private sector, increasing in the use of finance by state-owned enterprises and decreasing in the degree to which finance is allocated on commercial market terms.
    Keywords: Financial development, Financing constraints, Investment
    JEL: G31 G32 O16
    Date: 2012–10
  39. By: Kotevska, Ana; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Dimitrievski, Dragi
    Abstract: Macedonia is a candidate-country for EU membership since 2005. The EU integrative process, without doubt, will have impact on the Macedonian economy and particularly on the agricultural sector, as being one of the most significant in terms of GDP contribution and workforce employer. So far, farmer's attitudes and intentions with regard to the EU integration and accession were not much investigated. In this sense, the objective of the paper is to provide understanding of the Macedonian farmers' attitude and behavioural intentions in the context of the EU accession and the potential policy and market changes. Furthermore, another issue is to observe whether there are significant discrepancies among farmers and their attitudes towards EU accession. The results revealed that the farmer community in the country is rather heterogeneous in terms of farm and farmer’ profiles and farm management practises. The cluster analysis suggests four clusters between which the variables explaining attitudes were significantly different, provisionally labelled as "optimist ", "moderate", "restrained" and "sceptic".
    Keywords: cluster analysis, EU accession, farmers' attitude, Agricultural and Food Policy, Q19,
    Date: 2012–10–25
  40. By: Barbara Liberda (Faculty of Economic Sciences, University of Warsaw); Marek Pęczkowski (Faculty of Economic Sciences, University of Warsaw)
    Abstract: In this paper we analyse the changing structure of Polish households with regard to the household saving rates in 2007-2010 and compare it with similar distribution of household saving during 1997-2000. The analysis is based on the household budget panel data from three panels of 15,000 of Polish households selected by authors for years 2007-2008, 2008-2009 and 2009-2010 from the Household Budget Surveys for 2007-2010. We estimate the long-term ergodic distribution of households according to saving rates. Our results show that the long term distribution of households reveals a tendency towards polarization of households with regard to saving rates. Comparing these results with the Authors’ previous research for 1997-2000 for Poland we indicate that between 1997-2000 and 2007-2010 the change in polarization of households was asymmetrical towards the highest saving rate groups. That explains why Polish households could maintain the increase in savings during the financial crisis of 2007-2010.
    Keywords: household, saving, polarization, Markov matrix, ergodic distribution, panel analysis
    JEL: D12 D19
    Date: 2012
  41. By: Di Berardino , Claudio
    Abstract: The paper investigates spatial transformation of the internal migration in Poland over the period 2000-2006 for powiats. The article consists of two parts: the first one illustrates urban structure changes and the second one focus on dynamics rural powiats. Important conclusions emerging from this study: a substantial reduction rural to urban migration; a new urban to urban migration scenario; a differentiation between rural powiats. The are recent changes in the role of urban and rural powiats. The largest cities, with over 400,000 inhabitants, are gaining population to all urban bands. This is mainly due to the wide range of facilities and higher level services offered. Besides substantial differences in net migration of rural powiats have confirmed the important role of suburban areas. They have become a new attractive locations while peripheral powiats have lost population. This study show how the geographical accessibility to nearest urban agglomeration influences migration.
    Keywords: Migrazione interna Polonia aree urbane e rurali
    JEL: P20 R23
    Date: 2012
  42. By: Tisdell, Clement A.
    Abstract: After touching on the concerns of natural scientists about biodiversity loss, this article argues that it is a mistake to believe that there are only losses of biodiversity. The process of changes in the stock of biodiversity is more complex. Furthermore, it is pointed out that not all genetic material is an economic asset. Also, it is contended that not all genetic material is natural. Some of the genetic stock is of a heritage type and a portion has recently been developed by human beings. Improved conceptualisation of the stock of biodiversity is needed. Some of the ways are listed in which economics is relevant to issues involving biodiversity conservation. General economic factors, such as market extension and economic growth, which result in loss of genetic diversity among domesticated organisms are outlined. China’s recent experience with biodiversity loss highlights the importance of these factors. Some important reasons why economic factors result in biodiversity loss in the wild are identified and reasons are given why economic systems conserve less biodiversity than is ideal. Before concluding, the subject is discussed of what genetic material and other components of biodiversity should be conserved given economic constraints on what can be conserved.
    Keywords: agricultural biodiversity, biodiversity change, biodiversity economics, biological extinction, China, economics of biodiversity loss, genetic diversity as an asset., Environmental Economics and Policy, Q57, Q10,
    Date: 2012–12
  43. By: Masahiko Aoki (Asian Development Bank Institute (ADBI))
    Abstract: This essay provides a game-theoretic, endogenous view of institutions, and then applies the idea to identify the sources of institutional trajectories of economic development in China, Japan, and Korea. It stylizes the Malthusian-phase of East Asian economies as peasant-based economies in which small families allocated their working time between farming on small plots— leased or owned—and handcrafting for personal consumption and markets. It then compares institutional arrangements across these economies that sustained otherwise similar economies. It characterizes the varied nature of the political states of Qing China, Tokugawa Japan, and Yi Korea by focusing on the way in which agricultural taxes were enforced. It also identifies different patterns of social norms of trust that were institutional complements to, or substitutes for, political states. Finally, it traces the path-dependent transformations of these state-norm combinations along subsequent transitions to post-Malthusian phases of economic growth in the respective economies.
    Keywords: economic development, institutions, China, Japan, Korea, political states, social norms, institutional complements and substitutes
    JEL: O43 O53 P51
    Date: 2012–11
  44. By: Simonovska, Ana; Gjosevski, Dragan; Campos, Monica
    Abstract: Asymmetries between the emerging capital and credit market in the Republic of Macedonia in addition to the restructure of the agricultural sector limit the agricultural companies’ financial decisions and their possibilities to profit. Considering capital market imperfections typically for transition economies this paper attempts to identify empirical evidences for structural determinants on Macedonian agricultural companies’ financial performance and to explain the financial strategy of these companies to earn profit. The relationship between the ratio on assets return is used to measure financial performance and structural determinants of capital, earnings and financial business. The relationship is econometrically tested by the specification of a fixed-effect model. Following previous studies relaying on the pecking-order theory and the trade-off theory, the analysis applies on a dynamic panel data consisting of 26 Macedonian agricultural companies originating from the former agrokombinates, during the period 2006-2010. The agricultural companies’ capital structure determinant is tested by the specification of two different models: the first model uses debt-to-equity ratio as a capital structure indicator and the second one uses the debt ratio. Results suggest that Macedonian agricultural companies in the short run are limited by pricing flexibility undertaking different strategies to increase profitability. More efficient strategies are undertaken by growing agricultural companies operating on their fixed assets. However these agricultural companies are confronting with inefficiencies in the use of working capital reducing the ability to supply at an increase market demand. Statistical evidences do not support the hypothesis of that high-levered agricultural companies in Macedonia have higher opportunities to profit. Probably due to asymmetries between the national capital and credit markets and agricultural companies, increasing risk exposure. Hence, Macedonian agricultural companies prefer more assets than debt, considering financial risk in the long run decisions. This strategy seems to be a good financial strategy for growing agricultural companies with the ability to generate sufficient liquidity to meet exogenous market conditions.
    Keywords: Financial agricultural companies’ performance, capital determinants, fixed effect model, econometrics, Agricultural Finance, Financial Economics,
    Date: 2012–10–25
  45. By: Nacka, Marina; Georgiev, Nenad; Dabovic Anastasovska, Jadranka
    Abstract: The aim of this paper is: (a) to emphasize the importance of the industrial property rights for countries in transition economy, (b) to analyze the international trade and competitiveness of Republic of Macedonia and EU countries and (c) to present geographical indications as a powerful marketing strategy for competitiveness of the wine sub-sector in Republic of Macedonia. The paper includes qualitative and quantitative approach. Regarding the qualitative approach, we have performed a descriptive analysis to make a relation between industrial property, marketing and competitiveness of wine sub-sector. Quantitative methods include comparative analyzes with three countries of the European Union (Bulgaria, Slovenia and France). In order to present the current competitiveness, several calculations were preformed such as: the international trade indicators for trade balance and coverage ratio, trade openness, trade performance and specialization of countries’ wine sector, issued by the Organization for Economic Cooperation and Development. The results show that in the Macedonian agricultural sector, there is a low degree of awareness for the economic benefits of industrial property rights. Macedonia has a competitive wine sector, as result of the factor conditions, and in particularly tradition, geographic and climate conditions. Significant result is the positive degree of specialization of Macedonian wine in exporting the product, but unfortunately the bulk wine has the largest share in export of 87%. The process of reaching higher competitiveness of agro-food products, supported by strong marketing strategy, should be considered as a risky process, if the legal protection of industrial property rights, is neglected. The consequences could lead to misappropriation and information asymmetry, which can influence on losing the market position of the producers or unsuccessful promotion and export orientation of the products.
    Keywords: Geographical indications, marketing, competitiveness, wine sub-sector, trade indicators, International Relations/Trade, Marketing, Q17,
    Date: 2012–10–25
  46. By: Christiaensen , Luc; Pan, Lei
    Abstract: A common behavioral assumption of micro-economic theory is that income is fungible. Using household panel data from rural China and Tanzania, this study finds however that people are more likely to spend unearned income on less basic consumption goods such as alcohol and tobacco, non-staple food, transportation and communication, and clothing, while they are somewhat more likely to spend earned income on basic consumption goods such as staple food, and invest it in education. This resonates with the widespread cultural notion that money that is easily earned is also more easily spent. Cognitively, the results could be understood within the context of emotional accounting, whereby people classify income based on the emotions it evokes, prompting them to spend hard earned money more wisely to mitigate the negative connotations associated with its acquisition. The policy implications are real, bearing for example on the choice between employment guarantee schemes and cash transfers in designing social security programs.
    Keywords: Economic Theory&Research,Rural Poverty Reduction,Inequality,Labor Policies,Fiscal&Monetary Policy
    Date: 2012–12–01
  47. By: Ognjenovic, Dragana; Bajramovic, Sabahudin; Nikolic, Aleksandra
    Abstract: Research within this paper was aimed to give picture of economic performance of the dairy industry based upon commonly used indicators calculated for each dairy plant in Bosnia and Herzegovina.In order to understand state of sector transition micro-level analysis was conducted on the basis of balance sheet and income statement, two main financial records, of all dairies in Bosnia and Herzegovina. Documents were obtained from agencies in charge of collecting annual financial reports of both entities in order to assure reliable data for analysis. Research was conducted for three years period (2009-2011). Analysis encompassed horizontal and vertical analysis of balance sheet and income statement. Indicators of financial stability (liquidity and indebtedness ration) and operating successfulness (efficiency, activity, productivity and profitability ratios) we calculated as well. All diaries were classified and analysed by entity and size. The analysis shown that BH dairies operate under very hard circumstances that negatively affects their operating performances. Low liquidity and profitability indicates both financial instability and poor business success. Situation is unsatisfactory in the whole countries, although slightly better in FBH than in RS. So, sector transition is far from completion, and its future characteristic will strongly depend on entrepreneurship (spirit and skills) as well as on ability to change and re-develop institutions both formal and informal (values, culture etc).
    Keywords: economic performance, dairy industry, Bosnia and Herzegovina, Agricultural Finance,
    Date: 2012–10–25

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