nep-tra New Economics Papers
on Transition Economics
Issue of 2014‒01‒17
35 papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Determinants of profitability of Polish rural micro-enterprises By Janda, Karel; Strielkowski, Wadim; Rausser, Gordon
  2. Региональная диагностика эффективности отраслевых производств (на примере сельского хозяйства). By Zaytsev, Alexander
  3. Foreign direct investment into transition economies: Are the Balkans different? By Saul Estrin; Milica Uvalic
  5. Agriculture and Rural Development - Challenges of Transition and Integration Processes By Anonymous; Stevanović, Simo
  6. State - owned banks from Romania By Dumitriu, Ramona; Stefanescu, Razvan; Nistor, Costel
  7. Origin of FDI and domestic productivity spillovers: does European FDI have a ‘productivity advantage’ in the ENP countries? By Vassilis Monastiriotis
  8. Оценка перспективных направлений заимствования технологий (на примере отрасли выращивания зерновых культур) By Zaytsev, Alexander
  9. Market Design in Chinese Market Places By Krug, B.; Hendrischke, H.
  10. It takes two to quango: post-Soviet fiscal relations, political entrepreneurship and agencification from below By Lehmbruch, B.
  11. Energy and Environmental Issues and Policy in China By ZhongXiang Zhang
  12. Development of the Renminbi Market in Hong Kong SAR: Assessing Onshore-Offshore Market Integration By R. Sean Craig; Changchun Hua; Philip Ng; Raymond Yuen
  13. Consumption Based Estimates of Urban Chinese Growth By Marcos Chamon; Irineu E. Carvalho Filho
  14. Institutional Barriers and Job Creation in Central and Eastern Europe By Crespo Cuaresma, Jesus; Oberhofer, Harald; Vincelette, Gallina A.
  15. Local Government Financing Platforms in China: A Fortune or Misfortune? By Yinqiu Lu; Tao Sun
  16. "Options for China in a Dollar Standard World: A Sovereign Currency Approach" By L. Randall Wray; Xinhua Liu
  21. Determinants of Technology Transfer through CDM: the Case of China By Matthias Weitzel; Wan-Hsin Liu; Andrea Vaona
  24. Land governance of suburban areas of Vietnam By de Wit, J.
  25. Weather Derivatives and Crop Insurance in China By Baojing Sun; Changhao Guo; G. Cornelis van Kooten
  26. Corruption and entrepreneurship: does gender matter? By Claudia Trentini; Malinka Koparanova
  27. FRUIT PRODUCTION IN SERBIA DURING THE TRANSITION PERIOD By Dimitrijević, Bojan; Kalanović-Bulatović, Branka; Ceranić, Slobodan
  28. CREDIT AS THE FINANCIAL SOURCE OF THE SERBIAN AGRICULTURE By Radović, Gordana; Pejanović, Radovan; Nјegovan, Zoran
  29. DYNAMICS OF LABOUR COSTS OF SERBIAN DAIRY PROCESSING INDUSTRY By Muminović, Saša; Pavlović, Vladan; Milačić, Ljubiša
  34. SMEs IN FUNCTION OF DEVELOPMENT OF ORGANIC AGRICULTURE IN SERBIA By Popović, Blaženka; Maletić, Radojka; Paunović, Tamara
  35. Impact Assessment of Poverty Reduction Programs of Ho Chi Minh City in Vietnam By Do, Thu Trang; Le, Hai Chau; Nguyen, Viet Cuong; Nguyen, Hong Thuy; Phung, Thanh Thu; Phung, Duc Tung

  1. By: Janda, Karel; Strielkowski, Wadim; Rausser, Gordon
    Abstract: Rural micro-enterprises are an important factor in sustainable rural development in post-transitional Eastern Europe. This paper deals with determining the key factors influencing profitability in rural micro-enterprises in Poland. The research design was based on a questionnaire survey of 300 rural micro-enterprises in food-processing sector in rich and poor Polish provinces. The analysis carried out in this study is centered around the Polish EU accession in May 2004. Similar to other related studies, our results show that EU accession was not perceived as a major change by rural Polish micro-entrepreneurs and that the EU related factors were not significant determinants of their profitability. However, our results also show that the success of the rural food processing micro-enterprise in Eastern Europe is most related to its owner/manager and enterprise characteristics. For owner/manager the most significant determinants are his/her age and risk-taking as the main motive for establishing an enterprise. The enterprise characteristics that determine the profitability include enterprise location within a region with competitive situation, enterprise size (being a sole trader or family enterprise), ICT advancements in enterprise and the fact whether enterprise has any certificates for its products. The results have significant implications for the researches and policy-makers and can become a basis for preparing relevant enterprise support policies in post-transitional Eastern Europe.
    Keywords: micro-enterprises, rural development, transition economies, EU Accession, linear regression model
    JEL: P25 Q10 R11
    Date: 2013–08–01
  2. By: Zaytsev, Alexander
    Abstract: The article is devoted to assessment and comparative analysis of industry efficiency in both country and (Russian) region levels. Also the analysis of perspective sources for technology borrowing is presented. On a country level I analyze efficiency of agriculture, using mainly (among other) output per worker and output per square of arable land indexes, and identify most probable sources for technology borrowing. In Russian region level I consider more specific industry - cereal cultivation – and estimate technology level of each region, using Solow residual methodology. The residuals (TFP) are extracted from the cross-sectional (averaged 2005-2009 data) model of cereal yield. The article differs from the existing works in the following aspects: broad coverage (17 countries and all Russian regions); more precise estimates of labor productivity (per hour and industry PPP); novelty of application of Solow methodology to Russia`s agriculture industry.
    Keywords: regional economic diagnostics, technology borrowing, labor productivity, Solow residuals, agriculture, cereal yield model, technological level ranking
    JEL: J24 O3 O47 O57 Q11 Q16 R30
    Date: 2013–12–15
  3. By: Saul Estrin; Milica Uvalic
    Abstract: The paper explores the determination of foreign direct investment (FDI) into the Balkan transition economies – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Montenegro, Romania and Serbia. Detailed FDI inflows to Southeast Europe (SEE) are analysed to determine the main differences in the volume, timing and sectoral structure of FDI within the region and in comparison to the Central East European countries. A gravity model to all transition economies during 1990-2011 is then estimated to assess whether the factors driving FDI to the Western Balkans are different. They are found to be so; even when size of their economy, distance, institutional quality and prospects of EU membership are taken into account, Western Balkans countries receive less FDI. These issues are of high policy relevance for the Balkan economies and ought to contribute to the current debate on the ‘new growth model’.
    Keywords: foreign direct investment, Balkans, transition
    JEL: P3 O4 F2
    Date: 2013–07
  4. By: Stevanović, Simo; Milanović, Milan R.
    Abstract: The transformation of the socialist system and economy in the East-European countries and in the former SFR of Yugoslavia began with the pulling down of the Berlin Wall in 1989. For ten Countries from the Baltic, Central and Eastern Europe, this process was ended by their membership in the EU in 2004. With the exception of Slovenia, which has been an EU member state since 2004, and Croatia, which has been the 28th full member country of the EU since July 2013, the transformation into the “welfare state” (market economy and democratic society) in the other countries in the Western Balkans has been lasting for almost 25 years, without clear indications of whether it has reached an end. With the collapse of the socialist (“eastern”) bloc, liberal capitalism became the winner and the universal model of a future regulation of the world. “The invisible arm of the free market”, as liberal capitalism used to be referred to, should automatically have ensured that the states have economic stability, a high rate of growth, welfare and peace. Transition countries accepted this concept of economic development and started joining the process of market liberalization, privatization and the deregulation of economy at a quick pace. It was believed that this concept would establish a welfare society in such countries. As it turned out, transition per se does not lead a country to the “welfare state”. On the contrary, the process of the transformation from socialism to liberal capitalism per se does not mean the welfare state, either; it rather brings with itself certain problems which are being faced by smaller developed countries of the market economy. It was anticipated that, in the developed countries of the market economy, in the shadow of the “invisible arm”, there would always be the “invisible role of the state”, whose shadow could have been seen in the periods of a crisis only, forcefully directing economic flows, putting them back to the wanted framework, surrendering them to the “invisible arm” of the market again. By accepting a liberal concept, Serbia, as well as the majority of other East-European countries, exposed itself to the powerful market competition of developed economies. In that way, for a longer period of time, developed countries assured their privileged position in less developed ones and ensured for themselves a high rate of economic growth. Although nowhere in the world has the liberal model of the development of an economy fully become a reality in its original form, a very deformed neoliberal model of the development of economy is forced on transition countries via financial institutions. The imposed concept is identified with the model of the free market in developed economies although, every step of the way, it reflects a visible interference of the state in economic flows, which failed to appear in transition countries. The attractivities of liberal capitalism, which the majority of insufficiently developed economies are not prepared to accept without bigger negative consequences, are excessively elongated. An additional confusion in the development of the concept of neoliberal capitalism in East-European countries is created by the fact that such development has been founded on the concept of liberal capitalism, whereas the negative consequences of such development have been dealt with according to the socialist model of the development of economy. So, today, on the one hand, we have the development of economy based on the model of neoliberal capitalism, and, on the other, problems we deal with according to the socialist model of development. The insufficient interference of the state in the transition process in former socialist countries led to the uncontrolled creation of monopolies and the market chaos instead of free market. The creation of monopolies is supported by the globalization processes. In the grip of these processes, Serbia has accepted such a concept of transition and economic development irrespective of the clearly visible negative consequences. The unprepared economy of Serbia is exposed to the competition of developed countries without having previously restructured its enterprises and accepted the economic role of the state in compliance with the new world environment. This paper is aimed at applying a comparative analysis in order to determine the strengths and weaknesses of the model of neoliberal capitalism in Serbia and in countries in transition, imposed on and directed by international financial institutions as the only one breakthrough model of economic development.
    Keywords: transition, neoliberalism, the welfare state, the European Union, International Development, International Relations/Trade, Political Economy, P21,
    Date: 2013–09
  5. By: Anonymous; Stevanović, Simo
    Abstract: Table of Contents: Significance and comparative advantages of the agrarian sector in Serbian foreign trade, by Dragica Božić and Marija M. Nikolić; Credit as the financial source of the Serbian agriculture, by Gordana Radović, Radovan Pejanović, and Zoran Nјegovan; Partial equilibrium model as a tool for policy analysis in agriculture: an empirical evidence of Macedonia, by Ana Kotevska, Dragi Dimitrievski, and Emil Erjavec; I-squared distance in order of ranking countries of central, eastern and southeastern Europe according to the level of productivity in agriculture, by Svjetlana Janković-Šoja and Dana Bucalo; Serbia in transition from self-governing socialism to liberal capitalism, by Simo Stevanović and Milan R. Milanović; Vojvodina's agriculture - analysis and possibilities, by Nebojša Novković, Beba Mutavdžić and Nataša Vukelić
    Keywords: Agricultural and Food Policy, Community/Rural/Urban Development, International Development,
    Date: 2013–09
  6. By: Dumitriu, Ramona; Stefanescu, Razvan; Nistor, Costel
    Abstract: : In Romania, as in many Central and Eastern Europe countries, during the communist regime all the banks were owned by the state and their activities were circumscribed by rigid norms. After the communist regime had fallen, the state owned banks had to adapt to a competitive environment. The management inefficiency, the political interests and the corruption led some of these banks to critical situations. Such circumstances convinced Romanian authorities to privatize the banks owned by state. From the seven state-owned banks that activated in the 1990s in Romania, one had to be closed, four were privatized and two are still in the state propriety. In this paper we approach some turning points in the evolutions of these banks. We also try to configure the future of the remained state-owned banks.
    Keywords: Ownership of Banks, Transition, Political Interests, Corruption, Privatization
    JEL: G18 G21 G32 L33 P34
    Date: 2012–10
  7. By: Vassilis Monastiriotis
    Abstract: The process of approximation between the EU and its ‘eastern neighbourhood’ has created conditions for deepening economic interactions and market integration, giving to the EU –and to EU businesses– an elevated role in the process of economic modernisation and transition in the neighbourhood countries. This raises the question as to whether European business activity in these countries produces indeed measureable economic advantages both in absolute and in relative terms (e.g., compared to business activity from other parts of the world). Similarly, a question arises as to whether European business activity reduces or amplifies spatial imbalances within the partner countries. This paper examines these issues for the case of capital flows (foreign ownership) and the related productivity spillovers, using firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) covering 28 transition countries over the period 2002-2009. We estimate the direct and intra-industry productivity effects of foreign ownership and examine how these differ across regional blocks (CEE, SEE and ENP), according to the origin of the foreign investor (EU versus non-EU), across geographical scales (pure industry versus regional spillovers) and for different types of locations (capital-city regions versus the rest). Our results suggest that FDI of EU origin plays a distinctive role in the countries concerned helping raise domestic productivity significantly more than investments from outside the EU. However, this process appears to operate in a spatially selective manner, thus enhancing regional disparities and spatial imbalances. This, then, assigns a particular responsibility for EU policy, as it continues to promote economic integration (and FDI flows) to its eastern neighbourhood, to devise interventions that will help redress these problems.
    JEL: Z00
    Date: 2014–01
  8. By: Zaytsev, Alexander
    Abstract: The article presents estimates of perspective sources for technology borrowing in cereal cultivation industry for Russian regions. Estimates are based on technological ranking which is derived from cereal yield model using Solow residual methodology. The model uses cross-section averaged 2005-2009 data on Russian regions. Independent significant variables are mineral fertilizers, climate, soil quality and share of spring crops. The article differs from existing works in analysis of cereal yield factors on all- Russian regions level, but not on concrete region case; for the first time technological ranking of Russian regions in cereal industry is derived.
    Keywords: regional economic diagnostics, technology borrowing, Solow residuals , agriculture, cereal yield model, technological level ranking
    JEL: O14 O3 Q16 R3
    Date: 2013–11–30
  9. By: Krug, B.; Hendrischke, H.
    Abstract: The Market Design (MD) approach to institutional analysis provides the analytical tools to evaluate endogenous institution building in local market places irrespective of the institutional setting of the national economy. Implicit in this analysis of endogenous institution building at the market place level is the recognition of institutional diversity, which none of the conventional forms of institutional analysis can provide. We extend the MD approach from its original game theory perspective to examine three market places in China: township and village enterprises, equity joint ventures and public utilities. We conclude that the MD approach (1) provides the analytical tools and criteria to evaluate whether or not market places are robust and sustainable, (2) links market behavior at the market place level, which is characterized by size, coordination and trust problems, with general level considerations based on transaction costs, and (3) suggests that functioning market places are achievable, even if the formal institutions of the general economy are weak or partially missing. Our research has policy implications and opens new avenues for research into the emergence of markets.
    Keywords: China, international business, market design
    Date: 2012–11–28
  10. By: Lehmbruch, B.
    Abstract: The paper analyses the mushrooming growth of quasi-independent public agencies in the public sector of post-communist states. What at first glance seems to be a faithful transfer of institutions from the arsenal of New Public Management upon closer analysis turns into a very distinct phenomenon of post-communist transition. In the course of the 1990s, the amorphous public-private mix that was the Soviet political economy became increasingly differentiated as ex-apparatchiki turned political entrepreneurs branched out to create new commercial, collective, and even quasi-state regulatory bodies. The dividing lines between these new forms of organization, however, often remained quite blurry. This problem was further exacerbated by the severe underfunding of executive agencies that had become a notorious problem in post-Soviet countries. As a result, many agencies were forced to resort to private and semi-private sources of funding, and to commercialize their activities in order to support their official operations. In the second decade of transition, post-Soviet governments have increasingly been trying to control the worst such excesses through various forms of public management reform, such as the introduction of Single Treasury Accounts or various forms of revenue and expenditure audits. However, such efforts have met many setbacks and reversals; in some cases – such as for instance in post-Rose Revolution Georgia – the very new managerialist arsenal designed to enhance cost efficiency and separation between policy, regulatory and services tasks have instead with the government’s tacit approval been used to camouflage continuing hybridization and ballooning public sector employment. In other cases, such as Russia’s, growing restrictions on one form of organization have simply stimulated a shift to different legal forms, in this case state unitary enterprises.
    Keywords: Georgia, New Public Management, Russia, agency reform, post-communist transition
    Date: 2012–04–19
  11. By: ZhongXiang Zhang (University Distinguished Professor and Chairman, School of Economics, Fudan University, Shanghai, China)
    Abstract: China’s rampant environmental pollution problems and rising greenhouse gas emissions and the resulting climate change are undermining its long-term economic growth. China, from its own perspective cannot afford to and, from an international perspective, is not meant to continue on the conventional path of encouraging economic growth at the expense of the environment. Instead, concerns about a range of environmental stresses from burning fossil fuels, energy security as a result of steeply rising oil imports and international pressure on it to exhibit greater ambition in fighting global climate change have sparked China’s determination to improve energy efficiency and cut pollutants, and to increase the use of clean energy in order to help its transition to a low-carbon economy. This chapter focuses on China’s efforts towards energy conservation, nuclear power and the use of renewable energy. The chapter examines a number of market-based instruments, economic and industrial policies and measures targeted for energy saving, pollution cutting, energy greening. To actually achieve the desired outcomes, however, requires strict implementation and coordination of these policies and measures. The chapter discusses a variety of implementation/compliance/reliability issues. The chapter ends with some concluding remarks and recommendations.
    Keywords: Energy Saving, Renewable Energy, Power Generation, Nuclear Power, CCS, Market-Based Instruments, Economic and Industrial Policies, Carbon Intensity, Resource Taxes; Implementation, Compliance and Reliability, Financial Institutions
    JEL: Q42 Q43 Q48 Q52 Q54 Q55 Q56 Q58 R13 R15
    Date: 2013–11
  12. By: R. Sean Craig; Changchun Hua; Philip Ng; Raymond Yuen
    Abstract: Offshore use of the renminbi expanded rapidly in Hong Kong SAR as China sought to develop an international role for its currency while maintaining capital controls. This prompts two questions addressed in this paper: How far advanced is renminbi internationalization? And, what role does Chinese capital account liberalization play? The first is addressed by testing the extent of integration of offshore and onshore markets for the renminbi using a Threshold Autoregression (TAR) model and finds that there are substantial unexploited arbitrage opportunities. A VAR model is used to indentify factors contributing to this limited market integration and finds that capital controls and shifts in global market sentiment explain much of the divergence in onshore and offshore renminbi exchange rates. To address the second question, the paper shows how capital account measures have been used to promote offshore use of the renminbi more actively in the wake of the global financial crisis, but that this was done asymmetrically with controls on inflows eased to a greater extent than on outflows. It concludes that a more balanced liberalization process will sustain progress in renminbi internationalization.
    Keywords: Foreign exchange transactions;Capital account liberalization;Capital account;Capital controls;Economic integration;Exchange rates;Capital flows;Foreign direct investment;China, People's Republic of;Hong Kong Special Administrative Region of China;capital controls, offshore financial markets
    Date: 2013–12–24
  13. By: Marcos Chamon; Irineu E. Carvalho Filho
    Abstract: This paper estimates the household income growth rates implied by food demand in a sample of urban Chinese households in 1993–2005. Our estimates, based on Engel curves for food consumption, indicate an average per capita income growth of 6.8 percent per year in 1993–2005. This figure is slightly larger than the 5.9 percent per year obtained by deflating nominal incomes by the CPI. We attribute this discrepancy to a small bias in the CPI, which is of a similar magnitude to the one often associated with the CPI in the United States. Our estimates indicate stronger gains among poorer households, suggesting that urban inflation up to 2005 in China was “pro-poor,†in the sense that the increase in the cost of living for poorer households was smaller than for the average one.
    Keywords: Economic growth;China;Income distribution;Private sector;Economic models;Household consumption; Income growth; CPI Bias
    Date: 2013–12–23
  14. By: Crespo Cuaresma, Jesus (Vienna University for Economics and Business); Oberhofer, Harald (University of Salzburg); Vincelette, Gallina A. (The World Bank)
    Abstract: Using information from the Amadeus dataset and the Business Environment and Enterprise Performance Survey, we provide an empirical investigation of the industry and firm-specific determinants of the intensive margin (i.e., within existing firms) job creation process in eleven Central and Eastern European economies during the period 2002-2009. Our results indicate that during the years prior to the global financial crisis, traditional industries were crucial for the net intensive margin creation of jobs in the region but, by contrast, services firms were less vulnerable to the economic downturn. At the firm level, small and young already existing firms and subsidiaries of multinational corporate groups tended to register the highest employment growth rates. The empirical results also indicate that more productive surviving firms tended to be less vulnerable to the economic downturns in terms of employment change. The perceived quality of the business climate by enterprises of the region is robustly correlated with intensive margin employment growth both before and during the recent global financial crisis. Interestingly, the best performing surviving firms are estimated to be most negatively affected by a poor business environment. Institutional barriers thus appear as an important factor hampering firm growth in Central and Eastern Europe. These findings hold for the group of high-growth surviving firms (gazelles) that disproportionately accounted for the creation of new jobs in these economies.
    Keywords: firm growth; institutional barriers; Central and Eastern Europe
    JEL: L16 L21 L25 L51 L53
    Date: 2014–01–03
  15. By: Yinqiu Lu; Tao Sun
    Abstract: China’s rapid credit expansion in 2009–10 brought local government financing platforms (LGFPs) into the spotlight. This paper discusses their function, reasons behind their recent expansion, and risks they are posing to the financial sector, local governments, and sovereign balance sheet. This paper argues that LGFPs were a fortune for China in the past, but would turn out to be a misfortune if the causes of the rapid expansion of LGFPs are not addressed promptly. In this context, the paper proposes ways to avoid misfortune by: acknowledging and addressing the revenue and expenditure mismatches at the local government level; establishing a comprehensive framework to regulate and supervise local government budgets; ensuring the sustainability of the financial resources obtained from the sale of land use rights; and developing local government bond markets and promoting financial reforms.
    Keywords: Governance;China;Government expenditures;Revenues;Bond issues;Banks;Credit, local government, sovereign risk, fiscal policy, and capital markets
    Date: 2013–12–16
  16. By: L. Randall Wray; Xinhua Liu
    Abstract: This paper examines the fiscal and monetary policy options available to China as a sovereign currency-issuing nation operating in a dollar standard world. We first summarize a number of issues facing China, including the possibility of slower growth, global imbalances, and a number of domestic imbalances. We then analyze current monetary and fiscal policy formation and examine some policy recommendations that have been advanced to deal with current areas of concern. We next outline the sovereign currency approach and use it to analyze those concerns. We conclude with policy recommendations consistent with the policy space open to China.
    Keywords: China; Policy Space; Fiscal and Monetary Policy; Sectoral Balances Approach; Minsky; Sovereign Currency; Modern Money Theory; Middle-Income Trap; Financial Instability
    JEL: E2 E5 E6 F4 G2 G3 H5 H6 H7 H63 H72
    Date: 2014–01
  17. By: Šoja, Svjetlana Janković; Bucalo, Dana
    Abstract: Agriculture is a specific sector of the economy, and it is a driving force of the economic development of a country, because it has got a significant share of the gross domestic product. According to the fact that the development of agriculture depends on a number of factors, in this paper we will examine the level of the productivity of agricultural production of the countries in three regions, Central, Eastern and Southeastern Europe, for the period 2005-2009. The level of agricultural productivity is represented by four agricultural indicators: intensity of agricultural production, labor productivity in agriculture, potato yield per hectare, corn yield per hectare. Policy development in the field of agriculture should be directed to the faster development of the less developed countries. In order to find them we used the I-squared distance. This method has ranked countries of the observed regions on the basis of the average values of mentioned indicators.
    Keywords: ranking, I-squared distance, countries of Central, Eastern and Southeastern Europe, level of agricultural productivity, International Relations/Trade, Production Economics, Productivity Analysis, C38, O13, L26, R11,
    Date: 2013–09
  18. By: Ivkov, Ivana; Vasiljevic, Zorica; Ghelfi, Rino
    Abstract: While the Republic of Serbia is increasingly moving towards EU integration, and while one of the many EU requirements is the yearly transmission of the accountancy data that are important for the annual determination of the incomes of agricultural holdings and analysis of their business operation, the need to establish and develop Serbian Farm Accountancy Data Network (FADN) system becomes a crucial strategic option. This research paper describes how this requirement has been fulfilled for the Republic of Serbia, with special focus on FADN institutional framework. In this paper it is used unique replicable European Union (EU) methodology that has been applied and adjusted in accordance with national conditions. Furthermore, a comparative research method was used in a particular area of this study, which aimed to make comparisons across different FADN institutional framework of certain EU member states and Republic of Serbia. The results of this research paper showed that the FADN institutional frameworks in EU member states as well as institutional framework of the Republic of Serbia as candidate country have been established on the same bases, such as accountancy data collection–processing–transmission chain. However, the FADN institutional frameworks in EU member states are different and complex. Furthermore, taking into consideration comparison of the current state of FADN institutional framework in certain EU member states and Republic of Serbia, this paper demonstrated that although currently there is no specific sub-legal act, that prescribes the functioning of the FADN system in Serbia, there is a dynamic phase at an early stage of the Serbian FADN institutional framework development. Evidently, it is in development and needs to be further improved and strengthened while the sub-legal act, that prescribes the functioning of the FADN system, needs to be adopted. Consequently, for completed Serbian FADN system establishment and its sustainable development and functioning, there are still many challenges to overcome.
    Keywords: FADN, institutional framework, Republic of Serbia, EU, Institutional and Behavioral Economics, International Relations/Trade, Research Methods/ Statistical Methods,
    Date: 2013–09
  19. By: Božić, Dragica; Nikolić, Marija M.
    Abstract: The agrarian sector plays an important role for the overall economic development of Serbia as shown by the main macroeconomic indicators, including the contribution to equilibrium of payment and trade balance of the country. Serbia has a large trade deficit, therefore the agrarian sector, which is constantly (starting from 2005) achieving a positive trade balance, has an important role in overcoming the unfavourable condition of Serbian foreign trade. The share of this sector in Serbia’s total exports is increasing and in recent years exceeds 20 percent. The goal of this paper is to establish the importance of the agrarian sector in the total foreign trade of Serbia, as well as its comparative advantages on the markets of major trading partners (EU, CEFTA-2006 and some members, and countries in the neighbourhood) between 2004-2011. In the first part of the paper we analyse the importance and participation of the agrarian sector in the total foreign trade of the Serbian economy. The second part includes the basic flows, developing trends and the structure of foreign trade of the agrarian sector in Serbia by products and by most significant trading partners. Then, the revealed comparative advantage (RCA – Revealed Comparative Advantage) index, which was used for the analysis of the position and comparative advantages of the agricultural sector, is determined.
    Keywords: agrarian sector, foreign exchange, revealed comparative advantage, International Development, International Relations/Trade, Q17,
    Date: 2013–09
  20. By: Jelić, Sreten; Jovanović, Tatjana
    Abstract: The key to success and competitive agriculture are the ability of adaptation, dissemination and application of new technologies for faster modernization which requires general education. The application of knowledge must be accompanied by improvement of the educational structure of the population that also has an impact on the modernization of agriculture and intensive rural development (Marinkovic, 2009., Mojic, 2011.). In the process of transition, education has a significant role in the modernization, of agriculture and rural development (Miladinovic, 2011.). The process of rural development and modernization of agriculture in Serbia requires the introduction of modern technologies and skilled labor force. Thus, we need human resources to acquire new knowledge and skills and use them for faster modernization. Based on the Census data and relevant literature we are looking into the education and educational structure of the population of Serbia (by regions, areas and settlements). The results indicate that in the period of transition education structure have been improved. However, there continue to be differences in the educational structure of the population (by gender, age, regions, areas and settlements). The educational structure of the rural population is less favorable compared to urban. The share of the population in rural areas, without any education, through incomplete primary education to primary education, by gender ranges for males from 17.66 to 50.24% and for females from 82.34 to 49.76%.
    Keywords: education, education structure, agriculture, rural development, transition, Community/Rural/Urban Development, Public Economics,
    Date: 2013–09
  21. By: Matthias Weitzel; Wan-Hsin Liu; Andrea Vaona
    Abstract: Technology transfer (TT) is not mandatory for Clean Development Mechanism (CDM) projects, yet proponents of CDM argue that TT in CDM can bring new technologies to developing countries and thus not only reduce emissions but also foster development. We review the quantitative literature on determinants of TT in CDM and estimate determinants for CDM projects in China. China is by far the largest host country of CDM projects and it is therefore crucial to understand the factors that drive TT there. We focus on heterogeneity within a single country and results can thus be linked to specific policies of the country for better interpretation. Our probit estimations confirm results of international cross-country studies, indicating that larger projects and more advanced technologies are more likely to involve TT. In addition, we find evidence that agglomeration effects are more pronounced on the province level rather than larger regions. We also find a positive effect of FDI on TT and a complementary role of academic R&D engagement to TT
    Keywords: Clean Development Mechanism, Technology Transfer, R&D, Agglomeration, China
    JEL: O33 Q55 Q58
    Date: 2013–12
  22. By: Ternovsky, Volodymyr; Mirzoeva, Olga
    Abstract: Cooperation of small horticultural producers and the effectiveness of this cooperation is a very important issue for the development of the agricultural sector in Ukraine. Therefore, the goals of this study are analysis of existing models of cooperation, and identification of cooperation models which show promise for effective application among small agricultural producers, within the current legal framework, in Ukraine. Additionally this study aims to identify the factors which act as obstacles to the effective development of cooperation among rural citizens. In the process of conducting the study, the following methods were used: dialectical reasoning, abstract logical reasoning and systematic analysis, theoretical and methodological generalization of cooperation theory, definition of the essence of cooperation and its organizational forms. For identification of the main factors inhibiting cooperation, a survey methodology was used. Surveys were conducted among small-scale and large-scale horticultural producers. This research is based on the fundamental provisions of economic theory, legal documents (e.g. laws, bylaws and regulations), academic publications of Ukrainian and international scholars in the area of cooperation, Ukrainian government statistics, and data from international development projects in Ukraine. As a result of the study of the main models of cooperation, and in light of socio-economic conditions and legal environment, the agricultural service cooperative was identified as the most applicable model. The main social, economic and legal road-blocks to the successful development of cooperation among agricultural producers were determined. Among the main economic barriers is poor access to financial resources for small producers, as available credit options have high interest rates.
    Keywords: cooperation, consolidation, horticulture, marketing, financial resources, Agricultural and Food Policy, Community/Rural/Urban Development, International Development, Research and Development/Tech Change/Emerging Technologies, Q13,
    Date: 2013–09
  23. By: Ivanović, Sanjin; Gogić, Petar
    Abstract: The Republic of Serbia is the second state worldwide regarding volume of raspberry production and the third one concerning area of raspberry plantations. Therefore, the goal of this paper is to analyze and predict raspberry production in the Republic of Serbia. The paper also aims to determine investments in establishment of raspberry plantations per hectare and total amount of these investments at national level. Appropriate mathematical and statistical methods were used to analyze and predict volume of raspberry production. There were also used adequate calculations of costs needed to establish one hectare of raspberry plantation. It has been determined that establishing costs per one hectare of raspberries are approximately 22,000 EUR. That means it is necessary to invest 35,000,000 EUR each year at national level to maintain areas used for raspberry production at the current level. It was also found that it is possible to expect a slight increase in the volume of raspberry production. Appropriate measures that can contribute to growth of raspberry production and investments in raspberries are proposed. Results of these measures would be increase in employment and faster development of rural areas.
    Keywords: raspberry production development model, investments, socio-economic effects of raspberry growing, rural development, employment, Community/Rural/Urban Development, Research Methods/ Statistical Methods, Q14,
    Date: 2013–09
  24. By: de Wit, J.
    Abstract: After the Doi Moi (‘renovation’) reforms in Vietnam from 1986, land ownership rules were adjusted, effectively terminating former land collectivisation efforts. While land ownership remained fully under the control of the state, a 1993 land law conferred 20-year leaseholds to most farmers. They could now utilize farm land individually, and sell, swap and mortgage the land in a situation similar to private ownership. These leaseholds are now expiring and a new 2013 land law is in the making. This paper was initially written for UNDP Vietnam which supports Vietnam to help formulate a strong new land law, and brings out the complexities of land governance in the suburban areas of fast expanding Vietnamese cities. It first considers the present and changing land use of suburban areas and the key stakeholders involved here – powerful State Owned Enterprises, farmers, bureaucrats and communist party leaders. Planning practices are then assessed – and seen to be both rigid and complex, with different departments at various levels working at cross purposes under conditions of conflicting rules, laws and weak capacities. This is one reason for the dominance of informal arrangements and widespread corruption, where powerful actors benefit hugely and illegally from conditions of opacity and informal networks. Overall outcomes are that cities expand in a haphazard (‘leapfrog’) and inefficient manner, with insufficient attention for timely and adequate infrastructure, the environment and for people’s welfare as in social amenities and parks. As a result of lopsided incentive systems, it is the state which foregoes huge incomes and faces more costly investments, while many suburban farmers are affected through (arbitrary) land acquisition and inadequate compensation.
    Keywords: Vietnam, environment, land governance, planning, suburban land, urban housing
    Date: 2013–06–28
  25. By: Baojing Sun; Changhao Guo; G. Cornelis van Kooten
    Abstract: The effectiveness of financial weather derivatives to hedge against risk in agriculture has not been well demonstrated; therefore, this risk hedging instrument has only been slowly adopted. The current study analyzes the hedging efficiency of weather index derivatives for corn production in Northeast China. It has two purposes: (1) to identify potential weather variables, such as cumulative rainfall or growing degree days, that impact corn yields; and (2) to analyze the efficiency of financial weather derivatives under varying strike values, where efficiency is defined in terms of its benefit to farmers. Regression results indicate that cumulative rainfall is important for crop production in the study region, and that, under some circumstances, it is efficient to use a weather-indexed financial derivatives to hedge the corresponding risk.
    Keywords: financial weather derivatives, climate risk, corn production, rainfall
    JEL: Q14 Q15 Q18
    Date: 2013–02
  26. By: Claudia Trentini (United Nations Conference on Trade and Development); Malinka Koparanova (United Nations Economic Commission for Europe)
    Abstract: Corruption is a significant factor which determines the quality of the “doing business” environment at large. The aim of this paper is to contribute to our understanding of entrepreneurs’ corrupt behavior by looking at two questions: (1) does gender matter in corrupt behavior and (2) can corruption be an explanatory factor for gender gaps in firm growth. While it is often argued that female entrepreneurs face gender-specific challenges and might have different behaviors based on different ethics and moral standards, it is crucial to seek for empirical evidence at microeconomic level. Our results indicate that women entrepreneurs do have a significant lower propensity to bribe as compared to men entrepreneurs. Looking at the impact of corruption on employment growth, we do find a general negative impact of administrative corruption especially for micro enterprise but a positive one for women entrepreneurs. This is consistent with the fact that the majority of women are micro entrepreneurs; for them it is easier to escape the attention of corrupt officials, but greasing the wheels of state bureaucracy might become necessary and facilitate their firm’s growth.
    Keywords: gender, corruption, entrepreneurship, transition economies, development
    JEL: D73 J16 L26 O17 O57
    Date: 2013–09
  27. By: Dimitrijević, Bojan; Kalanović-Bulatović, Branka; Ceranić, Slobodan
    Abstract: Difficult and long-term process of transition which the Republic of Serbia went through in the last more than twenty years, globalization, wars and embargo in the nineties of the 20th century and finally, world economic crisis that began in 2008 have contributed to changes in standard of living, unemployment rate and migration. Under the given circumstances, fruit production represents a potential for mitigating and perhaps even overcoming the unemployment crisis, rural depopulation and increase of income of rural population. Accordingly, there is a need to consider the condition realistically and to identify existing problems, their causes, some possibilities and further tendencies of resources and activities in the fruit production sector in order to develop a highly profitable agricultural branch in our country. Data bases of the Statistical Bureau of the Republic of Serbia, Food and Agriculture Organization of the United Nations (FAO), Statistical Office of the European Union (Faostat) as well as scientific and research literature from the areas directly or indirectly related to the topic will be used as the sources of data for writing the work. Several methods will be used in the work: content analysis method, descriptive statistics, comparation method and hypothetical-deductive method.
    Keywords: globalisation, transition, crises, fruit, production, Crop Production/Industries, Production Economics, Q 10,
    Date: 2013–09
  28. By: Radović, Gordana; Pejanović, Radovan; Nјegovan, Zoran
    Abstract: The aim of this paper is to describe the role of credit as a source financing agriculture in the Republic of Serbia in the recent period, and to determine the advantages and disadvantages of the use of this financial instrument for financing agricultural production. Agriculture, given its specific production is not capable self-financing. And that they it needs to be informed by proper financing models. In the Republic of Serbia in the recent period there was not an adequate funding model was used, and the problem of financing agricultural production is still very actual. This is the most serious and complex problem of domestic agriculture and agricultural policy. Main obstacle to a higher use of loan funds in Serbian agricultural economy are: the instability and uncertainty of the agricultural and food production, unsafe placement of unknown prices of agricultural crops in the torque delivery and inconsistent agricultural policy measures. Ese factors add to the limiting factor for greater investments in agriculture and a low rate of return of agricultural production, which is limited by low yields, low productivity, and price disparity. On the other hand, there are few banks in the reporting period, as part of their loans, and investments have directed towards agriculture. The reasons are the high risks of agricultural production, its dependence on weather conditions, the risk of disease outbreaks and large-scale as well as large fluctuations in prices of agricultural products. Risk adverse banks generates a high degree of dispersion of demand for financial services, high costs of obtaining information and performing financial transactions for farmers, and the lack of quality of loan collateral, due to unregulated or poorly regulated property rights. The demand for agricultural credit is not evenly distributed throughout the year, but is significantly higher in the sowing period, which requires a larger book of business assets of banks in this period, and thus the inability to qualify it in profitable economic activities and in the short term. Farmers have limited confidence in the banking sector, and they lack experience in dealing with the banks. Based on the research it can be concluded that loans are not performing source of funding in agriculture. In order to provide more favorable bank loans for agricultural development in the Republic of Serbia, autonomous involvement of commercial banks is not sufficient. It is necessary to introduce coordinated activities of all state bodies, which would allow the reduction of the political, institutional and financial risk in these economic conditions.
    Keywords: agriculture, agricultural finance, credit as the financial source, the Republic of Serbia, Agricultural and Food Policy, Agricultural Finance, Food Security and Poverty, Risk and Uncertainty,
    Date: 2013–09
  29. By: Muminović, Saša; Pavlović, Vladan; Milačić, Ljubiša
    Abstract: Previous research has shown that the dairy industry in Serbia is more profitable than the market average measured by indices of the Belgrade Stock Exchange BELEX15 and BELEXLINE. The labour costs are, after raw milk costs, the second most important group of costs in dairy processing industry. The aim of this paper is to identify changes and adaptations of modern industry market conditions through analysis of labour cost of dairy processing industry in Serbia, by analysis of the trends in the number of employees, average labour cost, and productivity and cost efficiency and through the prism of these changes. In this paper, on qualified sample is proved that there is a strong positive correlation between firm size and productivity and a weaker one between firm size and labour costs. On the other hand, contrary to previous research, relation between the size of companies in the sample and the economic efficiency of labour costs was not confirmed.
    Keywords: dairy processing industry, labour cost, productivity, cost efficiency, Labor and Human Capital, Livestock Production/Industries, G31, G32, Q14,
    Date: 2013–09
  30. By: Ovchinnikov, A. S.; Oleynik, O. S.; Balashova, N. N.
    Abstract: The development problems of a fruit and vegetable sub-complex in the risky conditions of the Volgograd region agriculture are discussed in the article. The organizational and economic assessment is given to formation of the fruit and vegetable production regional market; the major factors influencing its development are defined.
    Keywords: fruit and vegetable sub-complex, agricultural producers, sale, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Political Economy, Q10, Q12,
    Date: 2013–09
  31. By: Vasiljević, Zorica; Zarić, Vlade; Šević, Dunja
    Abstract: Due to its specific nature agriculture is exposed to a number of risks, whose emergence could lead to the losses in production as well as volatility in the business. The risks can not be completely eliminated, but they can be managed and their impacts can be minimized. Insurance could have the most important role in minimization of risk. Insurance is a form of risk management used to limit potential losses. Insurance in agriculture includes crop and fruit insurance, but also insurance of livestock, domestic and wild animals, buildings and machinery, and can be applied in greenhouses, forestry and aquaculture as well. Insurance in Serbian agriculture is undeveloped. The share of the crop insurance and the animal insurance premiums was only about 2.6% of the total non-life insurance premiums in 2011. In Serbia it has been insured only about 3% of registered farms and 8-10% of the cultivable land areas. It is common practice that governments around the world take an active role in subsidizing agricultural insurance. Since 2006 Serbian government has also introduced the subsidizing of insurance premiums in the case of animals, crops and fruits insurance (in 2006 and 2007 by 30%, while since 2007 onward by 40%). Some local governments subsidize additional 10% of premium. These incentives have not led to the increased interest of farmers to ensure their production and fixed assets. By utilization of the desk research method it has been analyzed the general situation of agricultural insurance in Serbia, together with comparative analysis of the situation in Serbia with the one in the neighboring countries and EU. On the basis of the case study method for 100 family farms belonging to the municipalities of the Belgrade city, there have been analyzed the following parameters: presence of the crop and fruit insurance at the family farms, the types of risk from which the farmers usually insure their crops and fruits, the success of getting fee for damages caused by the insured events, the reasons why insurance is not present in the larger extent in Serbian agriculture and what are the possibilities for greater use of insurance as the safest form of minimization the potential risks in agriculture. The authors have also discussed a possibility of introducing the mandatory insurance for agricultural production, as well as the participation in agricultural insurance of those stakeholders which have interest for greater use of insurance in Serbian agriculture (insurance companies, food processing companies, banks, veterinary and extension services, local government authorities etc).
    Keywords: insurance, agriculture, risk, family farms, Serbia, Agricultural and Food Policy, Risk and Uncertainty, G22,
    Date: 2013–09
  32. By: Maletic, Radojka; Popovic, Blazenka
    Abstract: Due to the different geo-morphological, climatic, economic and social factors, Serbia represents a very heterogeneous area with specific historical legacies that are hard to overcome. Therefore, the regional specificities represent a starting point for planning the development of the economy as a whole, and of the agribusiness in particular. It is important to properly identify the regional peculiarities of agriculture in order to contribute to the agricultural development of Serbia as a whole. First of all, the attention should be placed to overcome the problems of underdeveloped areas that would contribute to a more stable and harmonious development of agriculture in Serbia. Balanced regional development policies should encourage better use of natural resources, especially in lagging behind areas. Spatial planning is a tool to create quality changes, especially in rural areas, linking different sectors (agriculture, food processing, tourism, environmental protection, etc.). The achievement of set objectives is highly dependent on the level of development of small and medium enterprises (SMEs) in agribusiness. Agribusiness is particularly interesting field for the development of SMEs as it is a complex area that involves the production and processing of agricultural and food products. Therefore, by using the appropriate mathematical and statistical methods, evaluation of the operational efficiency of SMEs in agribusiness in districts of Serbia was performed, in order to address the deficiencies and improvement opportunities in business in some areas.
    Keywords: Ranking of district, SME, DEA analysis, operational efficiency, Agribusiness, International Development, C38, L26, O13, R11,
    Date: 2013–09
  33. By: Kotevska, Ana; Dimitrievski, Dragi; Erjavec, Emil
    Abstract: Agricultural sector modeling based on partial equilibrium modelling of the supply and demand has become standard approach in the market outlooks and policy impact studies. The model builders and users reveal many pros and cons of the process and results of modelling. The Macedonian experience confirms some typical obstacles and at the same time faces some new ones with a local perspective. The paper provides a summary of the milestones in modelling the partial equilibrium model for the livestock-feed sector in Macedonia with main focus on the obstacles and limitations in the process. This experience is expected to be useful for the countries in the Western Balkan region planning to build a sector models based on partial equilibrium concept as a policy analysis tool.
    Keywords: partial equilibrium agricultural sector models, Demand and Price Analysis, Research Methods/ Statistical Methods, Q110,
    Date: 2013–09
  34. By: Popović, Blaženka; Maletić, Radojka; Paunović, Tamara
    Abstract: Agricultural production is very diverse and gives the great opportunities for various activities of small and medium enterprises. There is a great competition for placement of agricultural and food products, on both, domestic and international food markets. In a situation where there is a hyper production of agricultural products in the European market, the export of agricultural and food products is possible only if it offers organic products, for which there is a great demand. Organic production in Serbia is more popular and economically more important. Thanks to potentials that are reflected primarily in the fragmented property and land that is not contaminated with harmful substances, this type of agriculture can contribute significantly to development of rural areas and agriculture in general. Therefore, organic farming is set as one of the priorities for development of agriculture, and an integral part of the strategy for rural and agricultural development in the Republic of Serbia. Development level of organic production in Serbia is low, and the reasons are as follows: a low level of environmental awareness, lack of state support to the agricultural sector, the decline in living standards of the population, and therefore the reduced purchasing power. Organic products are becoming increasingly important goods in world terms, and there is a growing participation of these products in global trade flows. It is evident that the presence of organic food in the growing number of consumers around the world is not just a fashion fad, but the constant striving to eat better quality products, and 165 thus contribute to the preservation of the environment and our health. These products represent a great opportunity for the promotion of small and medium enterprises in domestic and especially in foreign markets.
    Keywords: Organic farming, SMEs, SWOT analysis, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Production Economics, C10, Q13,
    Date: 2013–09
  35. By: Do, Thu Trang; Le, Hai Chau; Nguyen, Viet Cuong; Nguyen, Hong Thuy; Phung, Thanh Thu; Phung, Duc Tung
    Abstract: The main purpose of this report is to measure the impact of poverty reduction programs and policies of Ho Chi Minh City – the biggest city in Vietnam - in the period 2009-2013 using both quantitative and quality methods. In general, poverty reduction programs have positive impacts on living conditions of poor households. Having access to these programs enables poor/near-poor households to increase income and have better access to decent jobs. In addition, tuition-fee reduction and exemption and health insurance programs help households reduce education and medical expenses. However, there are a number of problems such as limited support fund and poor awareness of the poor/near-poor about the vocational training, unreasonable support mechanism and inconsistency in line departments’ coordination.
    Keywords: Poverty reduction programs, impact evaluation, household surveys, Vietnam
    JEL: I3 O1 O2
    Date: 2013–06–23

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