nep-tra New Economics Papers
on Transition Economics
Issue of 2013‒03‒16
29 papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Persistent effects of empires: Evidence from the partitions of Poland By Irena Grosfeld; Ekaterina Zhuravskaya
  2. China's High Saving Puzzle By Ma, Guonan; Yang, Dennis Tao
  3. Incentivizing China’s Urban Mayors to Mitigate Pollution Externalities: The Role of the Central Government and Public Environmentalism By Siqi Zheng; Matthew E. Kahn; Weizeng Sun; Danglun Luo
  4. A Model of Chinese Central Government: the Role of Reciprocal Accountability By Mario Gilli; Yuan Li
  5. Shadow Banking and Systemic Risk in Europe and China By Hsu, S.; Li, J.; Qin, Y.
  6. Understanding household savings in China: the role of the housing market and borrowing constraints By Bussière, Matthieu; Kalantzis, Yannick; Lafarguette, Romain; Sicular, Terry
  7. The Development of Long-Term Care in Post-Socialist Member States of the EU By Stanislawa Golinowska; Agnieszka Sowa
  8. Firm Level Analysis of FDI and Social Development By Łukasz Goczek
  9. Institutional Change and Productivity Growth in China's Manufacturing 1998-2007: the Microeconomics of Creative Restructuring By Giovanni Dosi; Jiasu Lei; Xiaodan Yu
  10. Infrastructure, Industrial Productivity and Regional Specialization in China By Jie Zhang
  11. Fertility and Female Labor Force Participation: Causal Evidence from Urban China By He, Xiaobo; Zhu, Rong
  12. China's Monetary Policy Communication: Money Markets not only Listen, They also Understand By Alicia Garcia-Herrero; Eric Girardin
  13. Wages and Access to International Markets: Evidence from Urban China By He, Xiaobo
  14. Highways and Development in the Peripheral Regions of China By Xu, Hangtian; Nakajima, Kentaro
  15. Slovakia: A Catching Up Euro Area Member In and Out of the Crisis By Fidrmuc, Jarko; Klein, Caroline; Price, Robert; Wörgötter, Andreas
  16. Understanding Innovation in Production Networks in East Asia By Wignaraja, Ganeshan
  17. Market Power in CEE Banking Sectors and the Impact of the Global Financial Crisis By Georgios Efthyvoulou; Canan Yildirim
  18. World gold prices and stock returns in China: insights for hedging and diversification strategies By Mohamed El Hedi Arouri; Amine Lahiani; Duc Khuong Nguyen
  19. Theory and Empirics of Stage-Dependent Intellectual Property Rights By Chu, Angus C.; Cozzi, Guido; Galli, Silvia
  20. Outward FDI from developing countries : a case of Chinese firms in South Africa By Kimura, Koichiro
  21. Co-financing innovative projects in SMEs from Regional Operational Programmes. The case of Pomeranian region By Anna Golejewska; Damian Gajda
  22. Optimal Health and Environmental Policies in a Pollution-Growth Nexus By Wang, Min; Zhao, Jinhua; Bhattacharya, Joydeep
  23. How Much Has Private Credit Lending Reacted to Monetary Policy in China? The Case of Wenzhou By Duo Qin; Zhong Xu; Xue-Chun Zhang
  24. BMI Changes in Russian Adults: The Role of Health Related Behaviors and Spousal Relationships By Huffman, Sonya K.
  25. Credit The Changing Determinants of High School Attainment in Rural China By Juan Yang; Terry Sicular; Desheng Lai
  26. Country-specific determinants of horizontal and vertical intra-industry agri-food trade of the Visegrad Countries By Attila Jambor
  27. Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture By Yu, Bingxin; Liao, Xiyuan; Shen, Hongfang
  28. Analysis on Russian Demographic Trends By Kumo, Kazuhiro
  29. The role of trade in intra-industry productivity growth - the case of old and new European Union countries (1995-2007) By Aleksandra Parteka; ; ;

  1. By: Irena Grosfeld (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Ekaterina Zhuravskaya (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris - Institut national de la recherche agronomique (INRA), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: We use spatial regression discontinuity analysis to test whether the historical partition of Poland among three empires--Russia, Austria‐Hungary, and Prussia--has a persistent effect on political outcomes in contemporary Poland and to examine the channels of this influence. We find that the main difference in voting across Polish territories attributed by many observers to the legacy of empires is driven by omitted variables. However, empires do have a significant causal effect. The lands that belonged to Prussia (compared with those that belonged to Russia) vote more for anticommunist (post‐Solidarity) parties. This difference is largely explained by the persistent effect of infrastructure built by Prussians at the time of industrialization. The former Austrian lands (compared with former Russian lands) votes more for religious conservatives and for liberals. The difference in the vote for religious conservatives is explained by persistent differences in church attendance driven by vastly different policies of the two empires toward the Catholic Church. Higher support for liberals on the Austrian side is partly explained by a persistent belief in democracy, which is a legacy of decentralized democratic governance of the Austrian empire.
    Keywords: Persistence ; Empires ; Culture ; Poland ; Partitions
    Date: 2013–02–28
  2. By: Ma, Guonan (Bank for International Settlements); Yang, Dennis Tao (University of Virginia)
    Abstract: This paper analyzes the causes of rising savings rates for the corporate, government, and household sectors, which have jointly contributed to the upsurge in aggregate savings in China in the past two decades. Government policies to rebalance the Chinese economy are also explored.
    Keywords: aggregate savings, current account, income distribution, WTO accession, trade policies, China
    JEL: E21 O16 F32
    Date: 2013–02
  3. By: Siqi Zheng; Matthew E. Kahn; Weizeng Sun; Danglun Luo
    Abstract: China’s extremely high levels of urban air, water and greenhouse gas emissions levels pose local and global environmental challenges. China’s urban leaders have substantial influence and discretion over the evolution of economic activity that generates such externalities. This paper examines the political economy of urban leaders’ incentives to tackle pollution issues. Based on a principal-agent framework, we present evidence consistent with the hypothesis that both the central government and the public are placing pressure on China’s urban leaders to mitigate externalities. Such “pro-green” incentives suggest that many of China’s cities could enjoy significant environmental progress in the near future.
    JEL: H23 H41 Q48 Q53 R5
    Date: 2013–03
  4. By: Mario Gilli; Yuan Li
    Abstract: Why was the same state in China able to promote economic growth in the reform era but not in the previous thirty years? In this paper we focus on a speci…c aspect that might help the search for a comprehensive explanation: the speci…c institutional arrangement that induced autocratic government to adopt growth-enhancing policies. To this aim, we consider a standard political agency model (Besley, 2006) where the incumbent leader may be either congruent or not, and where both types need the support of the selectorate to hold on to power. Our main result is that in autocracies without electoral discipline, to restrain the opportunistic behavior of a leader, the size of the selectorateshould be intermediate: if too small, the selectorateis captured by the leader and has no disciplinary role; if too big, the leaders incentives are diluted.
    Keywords: Accountability, Selectorate, Political agency, Chinese economic reform.
    JEL: D02 H11 D74
    Date: 2013–02
  5. By: Hsu, S.; Li, J.; Qin, Y.
    Abstract: We compare the European and Chinese shadow banking systems. While the European shadow banking system is better developed than the Chinese shadow banking system, herd behavior and other factors in European markets create systemic risk, which contributed in part to the financial crisis. Dispersion of risk across the "under-developed" shadow banking system in China has led to some cases of localized, concentrated risk, but not to systemic risk. We discuss proposed European shadow banking regulation and its implications for systemic risk, and discuss what lessons China might glean from such policies. We also discuss what lessons China's diverse and systemically uncoordinated shadow banking sector might provide for Europe.
    Date: 2013
  6. By: Bussière, Matthieu; Kalantzis, Yannick; Lafarguette, Romain; Sicular, Terry
    Abstract: This paper examines the role of rising housing prices and borrowing constraints as determinants of China's high household saving rate, especially among young households. Using a life-cycle model of saving behavior in the presence of borrowing constraints, we show that the relationship between housing prices and saving exists only under certain conditions and for certain groups of households. Specifically, when the return on financial instruments is low (which is the case in China), the saving rate of young households may increase with housing prices. This relationship, moreover, is non-linear and depends on the level of wealth. Employing an empirical strategy motivated by the theoretical model, we analyze a dataset of over six thousand Chinese urban households spanning the years 1995, 2002 and 2007. We find evidence that higher housing prices do in fact increase the saving rates of young households. We also find evidence for the predicted non-linearity.
    Keywords: saving rates, housing market, China, global imbalances, borrowing constraints
    JEL: C81 D91 E21 O16
    Date: 2013–02–26
  7. By: Stanislawa Golinowska; Agnieszka Sowa
    Abstract: Long-term care (LTC) in the new EU member states, which used to belong to the former socialist countries, is not yet a legally separated sector of social security. However, the ageing dynamics are more intensive in these states than in the old EU member states. This paper analyses the process of creating an LTC sector in the context of institutional reforms of social protection systems during the transition period. The authors explain LTC’s position straddling the health and social sectors, the underdevelopment of formal LTC, and the current policies regarding the risk of LTC dependency. The paper is based mainly on the analysis of information provided by country experts in the ANCIEN project.
    Keywords: Labor market, social policy and social services, Europe, long-term care, social sector reform, social policy
    JEL: I18 I31 J11 J18
    Date: 2013–01
  8. By: Łukasz Goczek (Faculty of Economic Sciences, University of Warsaw)
    Abstract: The purpose of this paper is to explore, with the use of quantitative methods, the relationship between FDI and social development at a firm level. The study focused on obstacles to businesses associated with social development as perceived by companies with foreign capital in Central and Eastern Europe. The investigated factors mostly dealt with education and skills of workers in Central and Eastern Europe. For this purpose, an empirical study was conducted with a sample of 25,000 companies in the region of Central and Eastern Europe during 2002-2008. The empirical study showed that companies with foreign capital more often encounter difficulties associated with an insufficiently educated labour force in relation to the companies with the participation of domestic private capital. This analysis was developed to demonstrate that these companies employ workers with higher education and skilled workers more often than similar firms with ownership that is national, private or public.
    Keywords: FDI, HDI, social development
    JEL: F20 E66 F43
    Date: 2013
  9. By: Giovanni Dosi; Jiasu Lei; Xiaodan Yu
    Abstract: This paper investigates firm-level dynamics of labour productivity in China's manufacturing sector over the 1998-2007. Underlying the aggregate evidence of dramatic growth of labour productivity, one observes a large, even if shrinking, intra-sectoral heterogeneity. A major process of both catching-up and dying out occurs among the least efficient ones. Furthermore, we explore the effect of the characteristics of firms according to the ownership and governance structure upon the productivity distributions. The transformation of domestic firms signicantly affects the decreasing dispersion of productivity. In essence the fast catching-up process entails more of a "creative restructuring" of domestic firms rather than sheer "creative destruction" and even less so an MNC-led drive.
    Keywords: Chinese industrial development, labour productivity distributions, catching-up, heterogeneity, corporate ownership
    Date: 2013–03–08
  10. By: Jie Zhang (Graduate School of Economics, Keio University)
    Abstract: Infrastructure can affect sectoral productivity and lead to industrial structure changes. Under the framework of Harrigan (1997), this study provides an empirical analysis of the effect of infrastructure on China's industry-level productivity and regional specialization during the period of 1987-2007. We calculate the total factor productivity of 9 manufacturing industries in 28 provinces and study the effects of roads networks, telecommunications, and electric power supply on regional variations in sectoral TFP. We also examine the effect of these infrastructures on the sectoral output share across provinces. By using a structure model of infrastructure accumulation and the 3SLS estimation strategy to control for endogeneity of infrastructure provisions, we find that telecommunications and electric power have positive effects on sectoral TFP performance, while road networks and telecommunications help to explain the regional comparative advantage and production specialization.
    Date: 2013–02
  11. By: He, Xiaobo; Zhu, Rong
    Abstract: Using population census data, this paper examines the causal effect of childbearing on married women's labor force participation in urban China. To ameliorate the endogeneity of fertility, we exploit twin births as the instrument for the number of children. While the ordinary least squares estimates indicate that having one more child reduces female labor force participation by 6.7% and 8.5% in 1990 and 2000 respectively, the instrumental variable estimates suggest very small and insignificant effects for both years.
    Keywords: Female labor force participation, Fertility, One-Child Policy
    JEL: J13 J21
    Date: 2013–01–29
  12. By: Alicia Garcia-Herrero (Banco Bilbao Vizcaya Argentaria (BBVA) and Lingnan University and Hong Kong Institute for Monetary Research); Eric Girardin (Aix-Marseille University and French National Center for Scientific Research (CNRS) and ˆ[cole des Hautes ˆ[tudes en Sciences Sociales (EHESS) and Hong Kong Institute for Monetary Research)
    Abstract: Central bank communication is becoming a key aspect of monetary policy as a consequence of financial liberalization and the introduction of market instruments to conduct monetary policy. How much the market listens and, possibly, understands the People's Bank of China (PBoC) should be a key question for the central bank in modernising its monetary policy toolkit. In this paper, we tackle this issue empirically and find that China's money markets not only listen to the PBoC's words but understand the tone of monetary policy which the PBoC intends to convey in its messages. First, we find that the volatility and volume of money market rates change right after communication from the PBoC's governing body. Second, we find a statistically significant rise in interbank rates following communication with a hawkish tone. All in all, our results show strong evidence of effective oral and written communication by the PBoC aimed at China's money markets.
    Keywords: China Monetary Policy Communication, Money Market
    JEL: E52 E58 E43
    Date: 2013–02
  13. By: He, Xiaobo
    Abstract: Using China Household Income Project Survey (2002) data, this paper addresses the causal relationship between individual wages and access to international markets. The ordinary least squares estimates show statistically insignificant and quantitatively zero effects of accessibility to international markets proxied by the length of contemporary transport routes connecting the origin city and its nearest major seaport. However, using prefecture-level population density in 1820 as exogenous variation in current transport routes, the two-stage least squares regressions provide an opposite picture indicating that every 1 percent increase in distance from the origin city to international markets (i.e. the nearest seaport), ceteris paribus, has a negative impact on individual wages of 0.086 percent. This causal effect remains robust to various sensitivity tests which include current labor market structure, historical factor endowments and initial population development.
    Keywords: O12, O15, F16
    JEL: F16 O12 O15
    Date: 2013–02–23
  14. By: Xu, Hangtian; Nakajima, Kentaro
    Abstract: This paper estimates the effects of highways (Gaosu Gonglu) on economic development in China’s county-level cities from 1998 to 2007, a period in which China experienced sharp growth in highway mileage, using a micro level data set on industry and highway placement and the double difference propensity score matching method. After extracting the core regions, empirical estimates indicate that highway placement promotes industrial development in related cities with higher output and more investments, and these results are robust to two different checks. However, county-level cities more than 300 km away from large cities do not benefit from new highways. Furthermore, highways tend to promote the development of heavy industry but not that of light industry. Labor productivity exhibits few positive effects.
    Keywords: transport infrastructure project, double di erence propensity score matching (DD-PSM), regional development
    JEL: H54 R12
    Date: 2013–01
  15. By: Fidrmuc, Jarko (Zeppelin University); Klein, Caroline (OECD); Price, Robert (affiliation not available); Wörgötter, Andreas (OECD, Paris)
    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.
    Keywords: Slovak Republic, Estonia, Slovenia, crisis, job-less recovery, domestic demand
    JEL: E20 F41 G01
    Date: 2013–03
  16. By: Wignaraja, Ganeshan (Asian Development Bank Institute)
    Abstract: This paper explores the “black box” of innovation in the electronics production network in East Asia through a mapping exercise of technological capabilities and an econometric analysis of exporting in the People’s Republic of China (PRC), Thailand, and the Philippines. Technology-based approaches to trade offer a plausible explanation for firm-level exporting behavior and complement the literature on production networks. The econometric results confirm the importance of foreign ownership and innovation in increasing the probability of exporting in electronics. Higher levels of skills, managers’ education, and capital also matter in the PRC as well as accumulated experience in Thailand. Furthermore, a technology index composed of technical functions performed by firms (to represent technological capabilities) emerges as a more robust indicator of innovation than the research and development (R&D) to sales ratio. Accordingly, technological effort in electronics in these countries mostly focuses on assimilating and using imported technologies rather than formal R&D by specialized engineers.
    Keywords: production networks; foreign direct investment; innovation; technological capabilities; r&d; exports; east asia; prc; thailand; philippines
    JEL: F23 L63 O31 O32 O57
    Date: 2013–03–03
  17. By: Georgios Efthyvoulou; Canan Yildirim
    Abstract: The aim of this study is to undertake an up-to-date assessment of market power in Central and Eastern European banking markets and explore how the global financial crisis has affected market power and what has been the impact of foreign ownership. Three main results emerge. First, while there is some convergence in country-level market power during the pre-crisis period, the onset of the global crisis has put an end to this process. Second, bank-level market power appears to vary significantly with respect to ownership characteristics. Third, asset quality and capitalization affect differently the margins in the pre-crisis and crisis periods. While in the pre-crisis period the impacts are similar for all banks regardless of ownership status, in the crisis period non-performing loans have a negative effect and capitalization a positive effect only for domestically-owned banks.
    Keywords: Bank Market Power, CE European Countries, Global Financial Crisis, Foreign Ownership
    JEL: F23 G01 G21 L10
    Date: 2013–02
  18. By: Mohamed El Hedi Arouri (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR6221 - Université d'Orléans); Amine Lahiani (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR6221 - Université d'Orléans); Duc Khuong Nguyen (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II)
    Abstract: In this paper we make use of several multivariate GARCH models (CCC-, DCC-, BEKK-, diagonal BEKK-, and VAR-GARCH) to investigate both return and volatility spillovers between world gold prices and stock market in China over the period from March 22, 2004 through March 31, 2011. We also analyze the optimal weights and hedge ratios for gold-stock portfolio holdings and show how empirical results can be used to build effective diversification and hedging strategy. Our results show evidence of significant return and volatility cross effects between gold prices and stock prices in China. In particular, past gold returns play a crucial role in explaining the dynamics of conditional return and volatility of Chinese stock market and should thus be accounted for when forecasting future stock returns. Our portfolio analysis suggests that adding gold to a portfolio of Chinese stocks improves its risk-adjusted return and that gold risk exposures can be effectively hedged in portfolios of stocks over time. Finally, we show that the VAR-GARCH model performs better than the other multivariate GARCH models.
    Date: 2013–03–07
  19. By: Chu, Angus C.; Cozzi, Guido; Galli, Silvia
    Abstract: Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal intellectual property rights (IPR) protection is stagedependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, the country implements strong IPR protection to encourage domestic innovation. Therefore, the growth-maximizing and welfare-maximizing levels of patent strength increase as the country evolves towards the world technology frontier, and this dynamic pattern is consistent with the actual evolution of patent strength in China. Furthermore, we use a dynamic panel regression model to provide empirical evidence that supports the key implication of our theoretical model.
    Keywords: Economic growth, stage-dependent intellectual property rights
    JEL: O31 O34 O40
    Date: 2013–03
  20. By: Kimura, Koichiro
    Abstract: Outward foreign direct investment (FDI) from developing countries is increasing. In the research on FDI, it has been considered that only competitive and productive firms can invest in foreign countries. However, since the differences in competitiveness and productivity between multinational enterprises (MNEs) from developed and developing countries have not been explicitly investigated, we cannot say whether MNEs from developing countries can or cannot survive in competition with MNEs from developed countries as well as against competitive and productive indigenous firms in host countries. To examine the activities of MNEs from developing countries, this study investigates Chinese firms in South Africa. It reveals that in order to compensate for the weak brand recognition of Chinese products and to expand sales, Chinese firms have mainly been making products that are sold under the brand names of indigenous South African firms. Chinese firms have expanded their business in South Africa relying on the business resources of indigenous firms in the host country. This indicates that business with indigenous firms is significant for MNEs from developing countries in boosting competitiveness.
    Keywords: China, South Africa, Foreign investments, International business enterprises, Foreign direct investment (FDI), Multinational enterprise (MNE)
    JEL: F23 M16
    Date: 2013–02
  21. By: Anna Golejewska (Faculty of Economics, University of Gdansk); Damian Gajda (Faculty of Management, University of Gdansk)
    Abstract: The aim of the article is to analyse use of the EU Structural Funds for innovative projects in SMEs from Regional Operational Programme of Pomorskie Voivodeship for 2007-2013. In the analysis we use the data from the Pomerania Development Agency Inc. In the first section we described conditions and rules of grants awarding. The next section contains short description of firms in Pomeranian region and the analysis of granted projects. The results confirmed significant diversity of total values of projects, awarded grants and branches. So far, only small part of them has been implemented in high-technology sectors. With regard to the number of projects, the majority has been implemented using own funds. The results show high concentration of projects in Tri-City Agglomeration. According to our findings, firms rather carefully cooperate with external partners in implementing projects.
    Keywords: entrepreneurship, regional analysis, innovativeness, EU Structural Funds
    JEL: D22 R11 O3
    Date: 2013–02
  22. By: Wang, Min; Zhao, Jinhua; Bhattacharya, Joydeep
    Abstract: This paper shows how policies aimed at insuring health risks and those intended to improve the environment are (and should be) deeply intertwined. In the model economy, inspired by recent Chinese experience, pollution raises the likelihood of poor health in the future prompting agents to self insure against anticipated, rising medical expenses. The increased saving generates more capital while capital use by firms generates more pollution. Along the transition, sucha pollution-growth nexus may be attractive from a capital-accumulation perspective; however, rising pollution, via the health channel, definitely hurts welfare. Availability of private health insurance to top up pay-as-you-go coverage of medical bills together with a Pigouvian tax on emissions can replicate the first best.
    Keywords: pollution; health; overlapping generations model; saving
    JEL: E2 O13
    Date: 2013–03–08
  23. By: Duo Qin (Department of Economics, SOAS, University of London, UK); Zhong Xu (People's Bank of China); Xue-Chun Zhang (People's Bank of China)
    Abstract: This study investigates empirically what the major factors are which have driven Wenzhou’s informal credit market and how much that market is responsive to monetary policies and the formal banking conditions nationwide. The main findings are: (i) the informal credit lending rates are highly receptive to monetary policies; (ii) the market is dominantly demand driven; (iii) the informal lending is substitutive to bank savings in the short run but complementary to banking lending in the long run; and (iv) the market is complementary to excessive investments in the local real estate market.
    Keywords: informal credit market, monetary policy
    JEL: G19 E52 O16
    Date: 2013–02
  24. By: Huffman, Sonya K.
    Abstract: The paper investigates the effects of changes in marital status and health related behaviors (smoking and drinking) on the body mass index (BMI) in Russian adults over a ten-year period. Smoking and drinking behavior changes have played an important part in health status changes over 1994 to 2004. The results indicate that the individual weight/BMI changes asymmetrically in health determinants; the sign and the magnitude of the response are different depending on the starting point and whether there is an increase or a decrease in the explanatory variable. Males’ BMI decreases with smoking and increases with quitting smoking, but females’ BMI increases with drinking alcohol and decreases with stopping drinking. Losing a partner decreases only the females’ BMI, but gaining a spouse/partner is associated with increases in BMI for both genders. For married females and males, the change in spousal BMI is significantly positively related. Understanding interactions between individual health-related behaviors and the set of determinants that contribute to such behaviors is a fundamental step in the design of effective interventions.
    Keywords: BMI; Russia; health related behaviors; asymmetric response
    JEL: D12 I12 O52
    Date: 2013–03–06
  25. By: Juan Yang (School of Economics and Management, Beijing Normal University); Terry Sicular (University of Western Ontario); Desheng Lai (School of Economics and Management, Beijing Normal University)
    Abstract: The substantial shift in rural schooling levels and the contemporaneous changes in educational finance policy including tax and fees reform, two exempt and one compensation policy and school rearrangement policy, raise the need for a fresh look at the determinants of rural education. In this paper we have examined the determinants of rural high school attainment and changes in those determinants between the years 2002 and 2007 at multiple levels (individual, family and community level). We find that the increasing importance of community versus household and individual factors in determining rural children’s schooling attainment between 2002 and 2007. In addition, government expenditures have a significant and positive impact on high school attainment in both years, with a shift in the relative importance of budgetary versus extrabudgetary funding.
    Keywords: Rural Education; High School Attainment; Family Background; Public Finance; Human Capital; China
    Date: 2013
  26. By: Attila Jambor
    Abstract: The article analyses patterns and country-specific determinants of Visegrad Countries’ (VC) agri-food trade with the European Union. Literature focusing on the country-specific determinants of vertical and horizontal intra-industry trade is rather limited and those analysing agricultural (or agri-food) trade are extremely rare. Therefore, the paper seeks to contribute to the literature by covering latest theory and data available on the topic to provide up to date results and suggestions. Moreover, it seeks to identify the determinants of horizontal and vertical intra-industry trade of the Visegrad Countries after EU accession. Results suggest that agri-food trade of the Visegrad Countries is mainly inter-industry in nature but intra-industry trade is dominated by vertical elements. Results verify that determinants of horizontal and vertical IIT differ and suggest that economic size is positively, while distance is negatively related to both sides of IIT. However, the relationship between vertical IIT and differences in factor endowments as well as FDI is ambiguous.
    Keywords: Visegrad Countries, intra-industry trade, determinants
    JEL: F14
    Date: 2013–03
  27. By: Yu, Bingxin; Liao, Xiyuan; Shen, Hongfang
    Keywords: Agriculture, bias, Malmquist index, output distance function, scale efficiency, translog,
    Date: 2013
  28. By: Kumo, Kazuhiro
    Date: 2013–01
  29. By: Aleksandra Parteka; (Gdansk university of Technology, Gdansk, Poland); ;
    Abstract: The purpose of this paper is to evaluate the role of trade in productivity growth in a sample of 30 sectors in 25 EU countries in the period of rapid East-West integration. Shift-share analysis is used to show that changes in value added per hour worked in these countries appear to be mainly due to positive developments (rising productivity) within single industries and only to a lower extent result from a shift towards higher productivity activities. Trade is found to be an important positive determinant of intra-industry productivity growth in European countries. Exports and imports alike can be associated with efficiency gains, but intermediate good exchange and trade with New Member States exert a particularly strong influence on intra-industry productivity growth in the EU.
    Keywords: productivity, trade, shift share analysis, European Union
    JEL: F14 F16 O47
    Date: 2013–02

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