nep-tra New Economics Papers
on Transition Economics
Issue of 2013‒02‒16
nineteen papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. China's Life Satisfaction, 1990-2010 By Easterlin, Richard A.; Morgan, Robson; Switek, Malgorzata; Wang, Fei
  2. From Divergence to Convergence: Re-evaluating the History Behind China’s Economic Boom By Brandt, Loren; Ma, Debin; Rawski, Thomas
  3. Why Do Russian Firms Use Fixed-Term and Agency Work Contracts? By Smirnykh, Larisa; Wörgötter, Andreas
  4. Analysis of the Determinants of Income and Income Gap between Urban and Rural China By Su, Biwei; Heshmati, Almas
  5. Government connections and financial constraints : evidence from a large representative sample of Chinese firms By Cull, Robert; Li, Wei; Sun, Bo; Xu, Lixin Colin
  6. Gender Wage-Productivity Differentials and Global Integration in China By Dammert, Ana C.; Ural Marchand, Beyza; Wan, Chi
  7. Export Performance in Transition: The Case of Georgia By Prema-chandra Athukorala; Swarnim Waglé
  8. Measuring the Income-Distance Tradeoff for Rural-Urban Migrants in China By Zhang, Junfu; Zhao, Zhong
  9. Chinese monetary policy – from theory to practice By Körner, Finn Marten; Ehnts, Dirk H.
  10. Self-Employment in China: Are Rural Migrant Workers and Urban Residents Alike? By Cui, Yuling; Nahm, Daehoon; Tani, Massimiliano
  11. Cost of Trade Impact on Transition Country Exports By Gaytaranov, Jalal A.; Gunter, Lewell F.; Stegelin, Forrest E.
  12. Does social capital matter for European regional growth? By Jesús Peiró-Palomino; Anabel Forte Deltell
  13. Does horizontal cooperation create value? A residual income approach application on Czech agricultural data By Kamila Ruzickova; Petr Koráb
  14. The Future of International Liquidity and the Role of China By Alan M. Taylor
  15. Migration to Rural Counties: An Example from the North-Eastern Poland By Klepacka, Anna M.; Yen, Steven T.; Florkowski, Wojciech J.
  16. Investing Efficiently in Education and Active Labour Market Policies in Slovakia By Caroline Klein
  17. Zur Entwicklung der Preisniveaus in Ost- und Westdeutschland - Zugleich eine Dokumentation verschiedener Preisniveau-Zeitreihen für das geteilte und für das vereinigte Deutschland By Heinz Vortmann; Jan Goebel; Peter Krause; Gert G. Wagner
  18. Slovakia: A Catching Up Euro Area Member In and Out of the Crisis By Jarko Fidrmuc; Caroline Klein; Robert Price; Andreas Wörgötter
  19. Improving the Fiscal Framework to Enhance Growth in an Era of Fiscal Consolidation in Slovakia By Caroline Klein; Robert Price; Andreas Wörgötter

  1. By: Easterlin, Richard A. (University of Southern California); Morgan, Robson (University of Southern California); Switek, Malgorzata (University of Southern California); Wang, Fei (University of Southern California)
    Abstract: Despite its unprecedented growth in output per capita in the last two decades, China has essentially followed the life satisfaction trajectory of the central and eastern European transition countries – a U-shaped swing and a nil or declining trend. There is no evidence of an increase in life satisfaction of the magnitude that might have been expected to result from the fourfold improvement in the level of per capita consumption that has occurred. As in the European countries, in China the trend and U-shaped pattern appear to be related to a pronounced rise in unemployment followed by a mild decline, and an accompanying dissolution of the social safety net along with growing income inequality. The burden of worsening life satisfaction in China has fallen chiefly on the lowest socioeconomic groups. An initially highly egalitarian distribution of life satisfaction has been replaced by an increasingly unequal one, with decreasing life satisfaction in persons in the bottom third of the income distribution and increasing life satisfaction in those in the top third.
    Keywords: economic growth, Easterlin Paradox, happiness, life satisfaction, subjective well-being, transition countries, China
    JEL: I31 I38 D60 P36
    Date: 2013–01
  2. By: Brandt, Loren (University of Toronto); Ma, Debin (London School of Economics); Rawski, Thomas (University of Pittsburg)
    Abstract: China’s long-term economic dynamics pose a formidable challenge to economic historians. The Qing Empire (1644-1911), the world’s largest national economy before 1800, experienced a tripling of population during the 17th and 18th centuries with no signs of diminishing per capita income. While the timing remains in dispute, a vast gap emerged between newly rich industrial nations and China’s lagging economy in the wake of the Industrial Revolution. Only with an unprecedented growth spurt beginning in the late 1970s did this great divergence separating China from the global leaders substantially diminish, allowing China to regain its former standing among the world’s largest economies. This essay develops an integrated framework for understanding that entire history, including both the divergence and the recent convergent trend. We explain how deeply embedded political and economic institutions that contributed to a long process of extensive growth before 1800 subsequently prevented China from capturing the benefits associated with the Industrial Revolution. During the 20th century, the gradual erosion of these historic constraints and of new obstacles erected by socialist planning eventually opened the door to China’s current boom. Our analysis links China’s recent development to important elements of its past, while using recent success to provide fresh perspectives on the critical obstacles undermining earlier modernization efforts, and their eventual removal.
    Date: 2013
  3. By: Smirnykh, Larisa (Higher School of Economics, Moscow); Wörgötter, Andreas (OECD, Paris)
    Abstract: This study looks into the use of fixed term contracts and agency work in Russia during and shortly after the crisis 2009–10 with the help of an enterprise survey. The results of variance analysis show that the use of fixed-term or agency work contracts is not uniform across sectors, size and skill requirements. Probit analysis reveals that the use of fixed term contracts also increases the likelihood of using agency work, but not the other way around. The increase of temporary and agency work contracts increases the turnover on the labour market and contributes to an increase in dualisation, but may also help to prevent a larger increase in unemployment during crisis periods.
    Keywords: labour contracts, employment level, turnover, labour demand, Russia
    JEL: J41 J21 J63 J23
    Date: 2013–01
  4. By: Su, Biwei (Korea University); Heshmati, Almas (Korea University)
    Abstract: This paper studies on the determinants of income and urban-rural income gap to shed light on the problem of urban-rural income inequality in China. OLS, conditional quantile regression and Blinder-Oaxaca decomposition methods are used to analyze four waves of the China Health and Nutrition Survey (CHNS) household data. Results show that education and occupation are essential determinants of households' income level. These two factors exert heterogeneous effects at different percentiles of the income distribution. In urban areas, education is more valued for high income earners, while for rural areas, specialized or tertiary education are more beneficial for the poorer households. Among all occupational types, farm activities show much lower returns than other types; and this is more evident for individuals at the left tail of the income distribution. We also find that for the sampled provinces, urban-rural income gap increases from the year of 2000 to 2004 but the gap decreases from 2004 to 2009. The income gap can be largely explained by the individuals' attributes, especially by level of education and type of occupation.
    Keywords: urban-rural income gap, Oaxaca-Blinder decomposition, quantile regression, CHNS household data, China
    JEL: O15 O18 D31 D63 C31
    Date: 2013–01
  5. By: Cull, Robert; Li, Wei; Sun, Bo; Xu, Lixin Colin
    Abstract: This paper examines the role of firms'government connections, defined by government intervention in the appointments of Chief Executive Officers and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. In line with the previous literature, the paper demonstrates that investment by non-state firms is highly sensitive to internal cash flows, while no such sensitivity is found for government-owned enterprises. Even within the subset of non-state firms, government connections are associated with substantially less severe financial constraints (less reliance on internal cash flows to fund investment). The paper also finds that large non-state firms with weak government connections are especially financially constrained, due perhaps to the formidable hold that their state rivals have on financial resources after the"grabbing-the-big-and-letting-go-the-small"privatization program in China. Firms with government-appointed Chief Executive Officers also have significantly lower investment intensities, due perhaps to their lower-powered incentives. The empirical results suggest that government connections play an important role in explaining Chinese firms'investment behavior and financing conditions, and provide further evidence on the nature of the misallocation of credit by China's dominant state-owned banks.
    Keywords: Access to Finance,Debt Markets,Bankruptcy and Resolution of Financial Distress,Investment and Investment Climate,Emerging Markets
    Date: 2013–02–01
  6. By: Dammert, Ana C. (Carleton University); Ural Marchand, Beyza (University of Alberta); Wan, Chi (University of Massachusetts Boston)
    Abstract: In the absence of discrimination, there should be no wage-productivity differentials as relative wages should be equal to the relative marginal productivity levels of workers. This paper investigates the role of globalization on the structure and evolution of gender differentials in China by simultaneously estimating demand-side wage and productivity outcomes using nonlinear least squares. The analyses are based on a comprehensive population-wide panel survey of manufacturing firms between the years of 2004 and 2007, covering 94 percent of total industry output and providing an accurate representation of labor demand. The results suggest that more exposure to globalization through increased exports is associated with lower gender wage-productivity differentials, and more exposure through increased foreign investment leads to differentials in favor of female workers. On the other hand, gender discrimination is found to be prevalent among domestically owned and non-exporting firms.
    Keywords: China, gender wage discrimination, globalization, firm ownership
    JEL: D22 F21 J16 J31
    Date: 2013–01
  7. By: Prema-chandra Athukorala; Swarnim Waglé
    Abstract: This paper examines export performance in Georgia in the process of transition from central planning to market oriented economy. Policy reforms undertaken with the support of the Bretton Woods institutions since the mid-1990s have made Georgia one of the most market-friendly economies among the Commonwealth of Independent States. However, the reforms have so far failed to transform the lopsided export structure inherited from the Soviet era in line with emerging opportunities for global economic integration. We conclude that orthodox liberalisation reforms are unlikely to improve export performance unless accompanied by concrete measures to redress supply constraints faced by export producers and to sustain their international competitiveness.
    Keywords: Georgia, transitional economies, export performance, trade policy
    JEL: F1 O2
    Date: 2013
  8. By: Zhang, Junfu (Clark University); Zhao, Zhong (Renmin University of China)
    Abstract: Rural-urban migrants in China appear to prefer nearby destination cities. To gain a better understanding of this phenomenon, we build a simple model in which migrants from rural areas choose among potential destination cities to maximize utility. The distance between a migrant's home village and destination city is explicitly included in the utility function. Using recent survey data, we first estimate an individual's expected income in each potential destination city using a semi-parametric method, controlling for potential self-selection biases. We then estimate the indirect utility function for rural- urban migrants in China based on their migration destination choices. Our baseline estimates suggest that to induce a migrant to move 10 percent further away from home, the income of this migrant has to increase by 15 percent. This elasticity varies very little with migration distance; it is slightly higher for female than male migrants; it is not affected by the migrant's age, education, or marital status. We explore possible explanations of these results and discuss their policy implications.
    Keywords: income-distance tradeoff, rural-urban migration, hukou system, China
    JEL: O15 R12 R23
    Date: 2013–01
  9. By: Körner, Finn Marten; Ehnts, Dirk H.
    Abstract: Chinese monetary policy constitutes a marked example of a clash between theory and practice. In theory, a fixed exchange rate regime with capital mobility turns the money supply into an endogenous variable while expansionary pressure can be alleviated by the central bank by foreign currency transactions. For China, this standard view is contended by the 'compensation thesis' as proposed by Lavoie and Wang (2012) according to which the central bank maintains discretion over money supply by using alternative balance sheet instruments. In this paper we show that the People's Bank of China's (PBoC) activities can be better characterized by the 'compensation thesis' view of alternative money supply operations. In addition, we can thus characterize the PBoC's policy stance as being directed at targeting inflation and exchange rate stability via a five-phase policy mix using sterilization bonds and reserve requirements according to macroeconomic conditions. After downgrading the loans-to-deposits ratio of 75% to the status of an indicator and given the rise in lending despite a high reserve ratio, the quantity-driven approach to monetary policy of the PBoC faces an uncertain future.
    Keywords: Chineses monetary policy; Nominal exchange rate; Money supply; Mundell-Fleming; Compensation thesis; Modern Money Theory; Sterilization; Loans-to-deposit ratio; Reserve requirement ratio; Credit and money suppply growth
    JEL: E58 E31 E5 F31 G21
    Date: 2013–02–07
  10. By: Cui, Yuling (Macquarie University, Sydney); Nahm, Daehoon (Macquarie University, Sydney); Tani, Massimiliano (Macquarie University, Sydney)
    Abstract: This paper studies differences in the motivation to be self-employed between rural migrants and urban residents in modern China. Estimates of the wage differential between self-employment and paid-employment obtained through a three-stage methodology using the 2002 China Household Income Project (CHIP), reveal that rural migrants become self-employed to avoid low-pay city jobs, enhancing their odds of economic assimilation. Conversely, urban residents become entrepreneurs to move out of unemployment. The empirical analysis confirms that self-employment also attracts married individuals and those in good health, while it negatively relates to high educational attainment. The decomposition of hourly wage differences between pairs (by type of employment and residence status) shows that higher hourly wages of paid and self-employed urbanites over migrants predominantly arise through differences in coefficients (i.e. "discrimination") while those between self- and paid employment among urbanites are mostly due to differences in individual characteristics. Discrimination overwhelmingly accounts for hourly wage differences between self- and paid employment among rural immigrants. We interpret the relevant effect of discrimination in 2002 in urban labour markets as a sign of the institutional barriers associated with the Hukou system.
    Keywords: rural migrant workers, wage differentials, self-employment, urban residents
    JEL: C36 J61 J31 J21 J24
    Date: 2013–01
  11. By: Gaytaranov, Jalal A.; Gunter, Lewell F.; Stegelin, Forrest E.
    Abstract: This paper reports the results from the estimation of an export determination model for transition countries for 2005-2011. We found that higher internal export fees had small negative impact on exports from countries not adjacent to the EU and that FDI had larger impacts on exports of resource rich countries.
    Keywords: Exports, transition countries, trade facilitation, International Relations/Trade,
    Date: 2013–01–18
  12. By: Jesús Peiró-Palomino (Department of Economics, Universitat Jaume I, Castellón, Spain); Anabel Forte Deltell (Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: This article analyzes the role of different elements of social capital in economic growth for a sample of 85 European regions during the period 1995 - 2008. Much has been said about social capital in the last two decades, but studies for the European regional context are scant, and those analyzing periods after the nineties are nonexistent. The improvements in data availability allow us to consider the traditionally disregarded Central and Eastern European regions. This is especially interesting, since they are all transition economies that recently joined to the European Union and show remarkably low levels of social capital. Additionally, we follow the Bayesian paradigm, which not only allows us to make direct inference on the parameters to be estimated, but also deals with parameter uncertainty, leading to a deeper understanding of the data. Contrary to other contributions for the European context, results suggest, among other findings, that trust and social norms might have the major implications for regional growth, whereas the role of active participation in groups does not seem to be so well defined.
    Keywords: Social capital, economic growth, European regions, Bayesian inference
    JEL: C15 R10 Z13
    Date: 2013
  13. By: Kamila Ruzickova (Department of Economics, Faculty of Business and Economics, Mendel University in Brno); Petr Koráb (Department of Finance, Faculty of Business and Economics, Mendel University in Brno)
    Abstract: In the context of current competitive environment the companies in agriculture are forced to find a path towards the improvement of their business competitiveness. One of illuminating examples may be the horizontal cooperation in the form of cooperative entity. Naturally, as the economic performance of the group rises, the economic performance of members should rise, too. However, the crucial point is whether these members create a value for the owners, as this is the primary company objective. In this paper, we provide unique comparison of application of a residual income valuation method to empirically verify the assumptions which lead to grouping agricultural enterprises in cooperative entity. There are two objects of research: firstly, the alliance of winemakers, their individual members cooperating in marketing and sales management with the aim of boosting their economic performance, and secondly, their business rivals, who decided not to enter the alliance and cooperate. Alliance V8 is a newly-established NGO grouping top Moravian winemakers, the only of its kind in the Czech Republic. Contrasting the results of the case study research of both objects of research reveals whether joining the alliance altered the value of their members and also examines the applicability of the valuation method. Classification-JEL: G32, Q13
    Keywords: company value, co-operative entity, horizontal cooperation, residual income.
    Date: 2013–02
  14. By: Alan M. Taylor
    Abstract: This paper analyzes the consequences of the internationalization of the Chinese renminbi for the global monetary system and its possible ascension to reserve currency status. In an unstable and financially integrated world, governments’ precautionary demand for reserve assets is likely to increase. But the world then risks a third crisis of the global reserve system, another re-run of the Triffin paradox, with an ever-growing emerging-world insurance demand loaded onto a small group of ever more strained net debt suppliers. Two ways to avoid this outcome would entail either expanding the supply of credible reserve liquidity to include some large emerging-market providers, or finding ways to manage emerging-market risks so as to moderate the perceived need for insurance, and China would have to loom large in both solutions.
    JEL: F01 F02 F33
    Date: 2013–02
  15. By: Klepacka, Anna M.; Yen, Steven T.; Florkowski, Wojciech J.
    Abstract: The paper examines factors influencing migration to rural counties in Poland's underdeveloped regions using county data level and linear regression equation with exponential heteroscedastic errors. Quality of life factors, including the availability of various utility services positively influence the number of migrants, while real estate taxes have a negative effect.
    Keywords: Depopulation, rural development, quality of life, living conditions, income, Community/Rural/Urban Development,
    Date: 2013–01–19
  16. By: Caroline Klein
    Abstract: In Slovakia, educational outcomes are below the OECD average and are too dependent on the socioeconomic background of students. Unemployment is high and the school-to-job transition process does not work well. Spending on education and active labour market policies are very low by international standards. While reforms are under way in both areas, further efforts are needed to support the domestic drivers of growth. At a time of fiscal consolidation, these two policy areas should at the least be protected from budgetary cuts while every opportunity for efficiency gains should be seized. Not least because of the high level of long-term unemployment, more emphasis should be placed on activation policies, particularly on placement services, which are currently underfinanced but also insufficiently evaluated. Educational achievements and thus future labour market outcomes could be improved by re-allocating resources to teaching activities, in particular for disadvantaged pupils. Developing work-based vocational education would also facilitate the transition from school to work. This Working Paper relates to the 2012 OECD Economic Survey of the Slovak Republic (<P>Investir efficacement dans l´éducation et dans les politiques actives du marché du travail en Slovaquie<BR>En Slovaquie, les résultats scolaires sont inférieurs à la moyenne de l'OCDE et sont trop tributaires de l’origine socio-économique des élèves. Le taux de chômage est élevé et le processus de transition de l'école à la vie active ne fonctionne pas bien. Les dépenses d'éducation et de politiques actives du marché du travail sont très faibles par rapport aux normes internationales. Alors que des réformes sont en cours dans ces deux domaines, des efforts supplémentaires sont nécessaires pour soutenir les facteurs domestiques de croissance. Au moment de la consolidation budgétaire, ces deux domaines doivent au moins être protégés contre les coupes budgétaires alors que toutes les possibilités de gains d'efficacité doivent être saisies. Notamment en raison du niveau élevé de chômage de longue durée, l'accent devrait être mis sur les politiques d'activation, en particulier sur les services de placement, qui sont actuellement sous-financées, mais aussi insuffisamment évaluées. Les résultats scolaires et donc les futures performances sur le marché du travail pourraient être améliorés par la réaffectation des ressources aux activités d'enseignement, en particulier pour les élèves défavorisés. Le développement de la formation en milieu professionnel devrait également faciliter la transition de l'école à la vie active. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la République slovaque 2012 (
    Keywords: unemployment, education, Slovakia, labour market policies, vocational training, life-long learning, chômage, éducation, Slovaquie, politique du marché du travail, formation continue, formation professionnelle
    JEL: H52 I21 I28 J21 J24 J64 J68
    Date: 2013–01–29
  17. By: Heinz Vortmann; Jan Goebel; Peter Krause; Gert G. Wagner
    Abstract: The economic literature to date is underestimating the importance of regional price level differences. Only in the form of "rent indices" are these differences considered in relation to overall quality of life. As experimental estimates by the Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR) show, current price levels in Germany differ substantially both between counties and between eastern and western Germany. And these East-West differences have existed since before German reunification. The present article provides the first consistent documentation of East-West price levels since 1950. The East/West German purchasing power parities last calculated by DIW Berlin (in 1991) prove surprisingly consistent with the corresponding later estimates by the Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR). The two methods lead to very similar results, and both sets of results deviate substantially from the Federal Statistical Office's assumption of identical price levels in East and West Germany after reunification. The article proposes a method to calculate consistent time series for East and West German price levels and purchasing power indices for the years 1950 to 2009. <p>Die Bedeutung regionaler Unterschiede des Preisniveaus wird in den Wirtschaftswissenschaften unterschätzt. Lediglich in Form von "Mietspiegeln" werden regionale Preisniveauunterschiede lebensweltlich berücksichtigt. Wie experimentelle Berechnungen des Bundesinstituts für Bau-, Stadt- und Raumforschung (BBSR) zeigen, gibt es in Deutschland gegenwärtig nennenswerte Preisniveauunterschiede auf der Ebene von Landkreisen. Dadurch ergibt sich auch ein Preisniveauunterschied zwischen Ost- und Westdeutschland. Dieser Ost-West-Unterschied bestanden auch zu Zeiten der deutschen Teilung. Im vorliegenden Aufsatz werden die Ost-West-Preisniveaus seit dem Jahr 1950 erstmals in konsistenter Art und Weise dokumentiert. Die vom DIW Berlin zuletzt (1991) ermittelten Kaufkraftparitäten für Ost und Westdeutschland erweisen sich überraschend kompatibel mit den entsprechenden späteren Berechnungen des Bundesinstituts für Bau-, Stadt- und Raumforschung (BBSR). Die Ergebnisse beider Methoden sind sehr ähnlich und weichen zugleich deutlich von der Annahme des Statistischen Bundesamtes eines nach der Vereinigung einheitlichen Preisniveaus in Ost- und Westdeutschland ab. Es wird eine Vorschlag für die Berechnung von konsistenten Zeitreihen für die Preisniveaus in Ost- und Westdeutschland für die Jahre 1950 bis 2009 gemacht.
    Keywords: German unification, inflation, purchasing power parity
    JEL: D31 N34 N94
    Date: 2013
  18. By: Jarko Fidrmuc; Caroline Klein; Robert Price; Andreas Wörgötter
    Abstract: The Slovak economy experienced a strong but short recession in 2009. The recovery afterwards was driven by exports and investment. While GDP growth was one of the strongest in OECD, employment did not reach the pre-crisis level and unemployment remains stubbornly high. This paper argues that Slovakia joined the euro area after a period of unprecedented real appreciation, which generated a threat for competitiveness of its export-oriented manufacturing industry. The response combined internal devaluation with productivity increasing measures, including capital deepening and laying off low productivity workers. While this strategy was successfully restoring an external equilibrium, its consequences for domestic demand and employment are less positive. This development is compared with Estonia and Slovenia, two other small and very open economies, recently entering the euro area.<P>Slovaquie : Un membre de la zone euro en rattrapage pendant et après la crise<BR>En 2009, l'économie slovaque a connu une récession forte mais de courte durée. Par la suite, la reprise a été tirée par les exportations et l'investissement. Alors que la croissance du PIB a été l'une des plus fortes de l'OCDE, l'emploi n'a pas atteint le niveau d'avant la crise et le chômage reste durablement élevé. Cet article soutient que la Slovaquie a rejoint la zone euro après une période d'appréciation réelle sans précédent qui a généré une menace pour la compétitivité de son industrie exportatrice. La réponse a consisté en une dévaluation interne combinée à des mesures augmentant la productivité, comprenant entre autres l'accroissement de l’intensité capitalistique et le licenciement des travailleurs à faible productivité. Bien que cette stratégie ait permis la restauration d'un équilibre extérieur, ses conséquences sur la demande intérieure et l'emploi sont moins positives. Ce processus est comparé avec ceux observés en Estonie et Slovénie, deux autres petites économies très ouvertes, récemment entrées dans la zone euro.
    Keywords: Slovakia, Slovenia, Estonia, crisis, job-less recovery, domestic demand, Slovaquie, Slovénie, Estonie, crise, reprise sans l'emploi, demande intérieure
    JEL: E20 F41 G01
    Date: 2013–02–05
  19. By: Caroline Klein; Robert Price; Andreas Wörgötter
    Abstract: The challenge for fiscal policy in Slovakia is to achieve fiscal consolidation in a way which supports the fragile recovery and protects spending on areas which are important for re-embarking on a trajectory of high trend growth and underpinning a catch-up in living standards. While the recently established fiscal rules have significantly improved the fiscal framework, a further strengthening in medium-term fiscal discipline will be necessary to avoid pro-cyclical fiscal policy. Raising the effectiveness of tax collection, reforming the tax structure towards less distortive taxes and making more out of available EU funds would also play a helpful role in a growth-friendly fiscal consolidation. Finally, more needs to be done to ensure an adequate prioritisation of spending and an efficient use of public revenues. In particular, stepping up the analytical monitoring, evaluation and assessment capacity in spending ministries should help to rein in wasteful spending. This Working Paper relates to the 2012 OECD Economic Survey of the Slovak Republic (<P>Améliorer le cadre budgétaire pour favoriser la croissance en période d'assainissement budgétaire en Slovaquie<BR>Le défi pour la politique budgétaire en Slovaquie est d'assainir les finances publiques d'une manière qui soutienne la reprise fragile et protège les dépenses dans des domaines permettant de reprendre une trajectoire de forte croissance tendancielle et de poursuivre le rattrapage en termes de niveau de vie. Bien que les règles fiscales récemment établies aient considérablement amélioré le cadre budgétaire, un renforcement de la discipline budgétaire de moyen terme sera nécessaire pour éviter une politique budgétaire pro-cyclique. Accroître l'efficacité du recouvrement des impôts, reformer la fiscalité en faveur d’impôts moins distorsifs et mieux utiliser les fonds de l'UE disponibles pourrait également aider à une consolidation budgétaire favorable à la croissance. Enfin, il reste encore beaucoup à faire pour assurer une hiérarchisation adéquate des dépenses et une utilisation efficace des revenus publics. En particulier, le développement des capacités analytiques de suivi et d'évaluation dans les ministères devraient contribuer à freiner les dépenses inutiles. Ce Document de travail se rapporte à l'Étude économique de l'OCDE de la République slovaque 2012 ( ).
    Keywords: fiscal policy, Slovakia, tax administration, public debt sustainability, budgetary framework, politique budgétaire, Slovaquie, administration fiscale, cadre budgétaire, viabilité de la dette publique
    JEL: E62 H20 H21 H50 H54 H57 H61 H63 H83
    Date: 2013–01–29

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