nep-tra New Economics Papers
on Transition Economics
Issue of 2014‒02‒08
twelve papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Multi-payer health insurance systems in Central and Eastern Europe: lessons from the Czech Republic, Slovakia, and Russia By Galina Besstremyannaya; Jaak Simm
  2. Ceremonial Science: The State of Russian Economics Seen Through the Lens of the Work of ‘Doctor of Science’ Candidates By Alexander Libman; Joachim Zweynert
  3. The Possible Effects of Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership on Chinese Economy By Aslan, Buhara; Mavuş, Merve; Oduncu, Arif
  4. From age-friendly research to age-friendly city and age-friendly regional network: case of tuymazy and republic of Bashkortostan, Russian Federation By Gulnara A. Minnigaleeva
  5. "Policy Options for China: Reorienting Fiscal Policy to Reduce Financial Fragility" By L. Randall Wray
  6. What We Know About Monetary Policy Transmission in the Czech Republic: Collection of Empirical Results By Oxana Babecka Kucharcukova; Michal Franta; Dana Hajkova; Petr Kral; Ivana Kubicova; Anca Podpiera; Branislav Saxa
  7. Distributional impacts of cash allowances for children: a microsimulation analysis for Russia and Europe By Popova, Daria
  8. Spatial and temporal structures of four financial markets in Greater China By F. Y. Ouyang; B. Zheng; X. F. Jiang
  9. Multiproduct Firms, Export Product Scope, and Trade Liberalization: The Role of Managerial Efficiency By Larry Qiu; Miaojie Yu
  10. Urban inequity in the performance of social health insurance system: evidence from Russian regions By Galina Besstremyannaya
  11. Motivation behind remittance from migrants: Evidence from Albania By Daichi Shimamoto
  12. What Determines Firms’ Innovation in Eastern Europe and Central Asia By Afandi, Elvin; Kermani, Majid

  1. By: Galina Besstremyannaya (CEFIR); Jaak Simm (Tallinn University of Technology)
    Abstract: Transition countries in Central and Eastern Europe and the former Soviet Union introduced social health insurance (SHI) to foster universal coverage, stable financing revenues, and consumer euity through a principle of solidarity. In particular, the Czech Republic, Slovakia, and Russia emphasized managed between health insurance companies. Howevr, insufficient financing of the health care systems and excessive regulation led to deficienciesof the multi-payer SHI model in the three countries. The paper examines common trends in the development of the SHI systems in the Czech Republic, Slovakia, and Russia, and conducts empirical estimations with data for Russian regions.
    Keywords: Social health insurance, infant mortality, maternal mortality, managed competition, transition economies
    JEL: I13 I18
    Date: 2014–01
  2. By: Alexander Libman (Frankfurt School of Finance and Management); Joachim Zweynert
    Abstract: The paper investigates the current status of economic research in Russia using a previously unexplored dataset of Russian ‘Doctor of Science’ (Dr. Sc.) theses. The Dr. Sc. degree is a postdoctoral qualification necessary for career advancement at most Russian universities. Thus, by looking at the Dr. Sc. theses we are able to provide a systematic overview of ‘average’ scientific standards in Russia, particularly at the mass universities at which most administrators and bureaucrats are trained. We show that the level of integration of Russian economics into the international scientific community remains very low. Moreover, we obtain a picture of a mostly ‘ceremonial’ science. Researchers combine references to ‘classical’ research, formal methods and practical application merely as an instrument for presenting the mostly verbal argument in a more scientific’ way.
    Keywords: Russian economics, international integration, scientific methodology
    JEL: A11 B41 I23 P39
    Date: 2014–01
  3. By: Aslan, Buhara; Mavuş, Merve; Oduncu, Arif
    Abstract: The failure to advance the multilateral trade negotiations of the World Trade Organization (WTO) was a disruption for the international trading system. Alternatively, many countries have commenced to establish bilateral and regional Free Trade Agreements (FTA). Among those agreements the Transatlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership (TPP) are agreements with members from across the Atlantic and the Pacific respectively. This note focuses on the impacts of these agreements on Chinese economy under three scenarios. The effects of various scenarios on Chinese GDP and export are studied by using the Global Trade Analysis Project (GTAP) database and a general equilibrium model. To the best of our knowledge, we are the first to analytically analyze the economic impacts of the TTIP on Chinese economy. In all of the scenarios the TTIP is realized and China never becomes a member of it. In the first scenario the TPP is not realized. In the second scenario the TPP is realized and China is excluded from it. In the last scenario the TPP is realized and China is included in the initiative. The results suggest that when only TTIP is realized, Chinese economic variables are negatively affected. When both TTIP and TPP are realized and China is excluded, the combined damage in Chinese economy is higher than the damage of TTIP alone. On the other hand, inclusion of China in the TPP affects its economic variables positively despite the negative effects of the TTIP. In other words, positive impacts of participation of China in the TPP compensate for the negative impacts of the TTIP.
    Keywords: Free Trade Agreements, Transatlantic Trade and Investment Partnership, Trans-Pacific Partnership, China.
    JEL: F13 F15
    Date: 2014–02
  4. By: Gulnara A. Minnigaleeva (National Research University Higher School of Economics)
    Abstract: This paper discusses the strategy and success factors of development of age-friendly programs in the City of Tuymazy and Republic of Bashkortostan, Russian Federation, as a part of the Global Age-Friendly Project of World Health Organization. A research followed by a small grass root initiative led to development of a large regional program with 21 municipalities involved. The key success factors included: creating an agency to trigger, promote and implement age-friendly practices; establishing partnerships with government and other organizations in the area; building and maintaining media and public relations; building on culture; expanding and encouraging civic engagement; starting small; providing recognition and credit. Building awareness and partnerships is vital for advancing age-friendly programs. With multiple stakeholders involved it is important to maintain regular communications conduct information sessions and stick to the planning and reporting schedule. For continuity and sustainability of a large scale project it is essential to hire paid staff
    Keywords: Age-friendly Cities, Ageing Policies, Nongovernmental Organizations, Community Development, Social Policies, Nonprofit-Government Partnerships, Municipalities, Quality of Life, Welfare, Russia
    JEL: H75 I31
    Date: 2014
  5. By: L. Randall Wray
    Abstract: Since adopting a policy of gradually opening its economy more than three decades ago, China has enjoyed rapid economic growth and rising living standards for much of its population. While some argue that China might fall into the middle-income "trap," they are underestimating the country's ability to continue to grow at a rapid pace. It is likely that China's growth will eventually slow, but the nation will continue on its path to join the developed high-income group--so long as the central government recognizes and uses the policy space available to it.
    Date: 2013–12
  6. By: Oxana Babecka Kucharcukova; Michal Franta; Dana Hajkova; Petr Kral; Ivana Kubicova; Anca Podpiera; Branislav Saxa
    Abstract: This paper concentrates on describing the available empirical findings on monetary policy transmission in the Czech Republic. Besides the overall impact of monetary policy on inflation and output, it is useful to study its individual channels, in particular the interest rate channel, the exchange rate channel, and the wealth channel. The results confirm that the transmission of monetary impulses to the real economy works in an intuitive direction and to an intuitive extent. Our analyses show, however, that the global financial and economic crisis might have somewhat slowed and weakened the transmission. We found an indication of such a change in the functioning of the interest rate channel, where elevated risk premiums played a major role.
    Keywords: Bayesian, monetary policy transmission, time-varying parameters, VAR model.
    JEL: C11 C32 E44 E52 E58
    Date: 2013–10
  7. By: Popova, Daria
    Abstract: This paper analyses programmes of cash allowances for children and compares their effectiveness in combating child poverty in Russia and four EU countries Sweden, Germany, Belgium and the United Kingdom. These countries are selected as representatives of alternative family policy models. Using microsimulation models (RUSMOD and EUROMOD), this paper estimates the potential gains if the Russian system were re-designed along the policy parameters of these countries and vice versa. Such an exercise rests on the idea of policy learning and provides policy relevant evidence on how a policy would perform, given different national socio-economic and demographic settings. The results confirm that the poverty impact of the program design is smaller than that of the level of spending. Other conditions being equal, the best outcomes for children are achieved by applying the mix of universal and means-tested child benefits, such as those employed by the UK and Belgium. At the same time, the Russian design of child allowances does not appear to be less effective in terms of its impact on child poverty when transferred to European countries in place of their current arrangements.
    Date: 2014–01–27
  8. By: F. Y. Ouyang; B. Zheng; X. F. Jiang
    Abstract: We investigate the spatial and temporal structures of four financial markets in Greater China. In particular, we uncover different characteristics of the four markets by analyzing the sector and subsector structures which are detected through the random matrix theory. Meanwhile, we observe that the Taiwan and Hongkong stock markets show a negative return-volatility correlation, i.e., the so-called leverage effect. The Shanghai and Shenzhen stock markets are more complicated. Before the year 2000, the two markets exhibit a strong positive return-volatility correlation, which is called the anti-leverage effect. After 2000, however, it gradually changes to the leverage effect. We also find that the recurrence interval distributions of both the trading volume volatilities and price volatilities follow a power law behavior, while the exponents vary among different markets.
    Date: 2014–02
  9. By: Larry Qiu (University of Hong Kong and Hong Kong Institute for Monetary Research); Miaojie Yu (Peking University)
    Abstract: This paper provides a theoretical and empirical analysis of the effects of one-sided tariff cuts on firms' export product scope. The theoretical model explicitly incorporates cost of management in addition to the commonly used production cost. Firms are heterogeneous in terms of managerial efficiency but homogenous in terms of production productivity. The analysis predicts that the home country's tariff cut reduces all home firms' export product scope, whereas in response to the foreign country's tariff cut, a home firm's export product scope expands (shrinks) if the firm's management cost is low (high). These predictions are supported by our empirical analysis based on data on Chinese firms from 2000 to 2006.
    Keywords: Multiproduct Firm, Management Cost, Managerial Efficiency, Export Product Scope, Trade Liberalization, China
    JEL: F12 F13 F15
    Date: 2014–02
  10. By: Galina Besstremyannaya (CEFIR)
    Abstract: The paper assesses the impact of urbanization on the quality related outcomes of social health insurance systems in 85 Russian regions in 2000-2006. The results of parametric and kernel regressions reveal that controlling for regional income is a significant determinant of infant and under-five mortality. Arguably, the influence of urbanization on health outcomes is due to latent processes (e.g. the development of infrastructure). The methods of provider reimbursement are related to infant and under-five mortality, which offers suggestive evidence for selective contracting. Yet, insurer competition might increase urban inequity.
    Keywords: Social determinants of health, urbanization, social health insurance, infant mortality, provider payment, kernel regression, health care systems
    JEL: I10 I18 C14 C26
    Date: 2014–01
  11. By: Daichi Shimamoto (Graduate School of Economics, Osaka University, Japan. Research Fellow, Japan Society for the Promotion of Science, Japan.)
    Abstract: In Albania, remittance has been an important factor for the countryfs economic growth since the collapse of the countryfs communist regime in the early 1990s. In this paper, I investigated why migrants send remittance to their parents household. In the analysis, I considered four remittance motivations: altruistic, exchange, insurance, and inheritance motivations. To control sample selection of migration, I apply the Heckman sample selection model. The results suggest that migrants in Albania are driven to remit owing to a combination of altruistic, exchange, and inheritance motivations. Further, migration destination influences remittance amount, which implies that not only the local labor market and exchange rate at the final destination but also migration motivation factors affect remittance amount.
    Keywords: Migration, Remittance, Albania
    JEL: F22 F24 O52
    Date: 2014–02
  12. By: Afandi, Elvin; Kermani, Majid
    Abstract: By employing a rich sample of firm-level data in seven Eastern Europe and Central Asian countries from Europe and Central Asia, our paper investigates core as well as some specific determinants of firm innovation. We find that the likelihood of engaging in innovation for a firm increases with its core socio-economic characteristics such as size, age, capacity utilization, domestic competition and foreign ownership. In addition to the estimates of these socio-economic covariates, the ultimate purpose of our study is to obtain more in-depth knowledge about the policy implacable factors for firm innovation that the countries could focus on. These policy-related factors are: (i) access to finance, (ii) human capital, and (iii) foreign trade. In this respect, our study finds that firm’s innovation increases with better financial inclusion, greater human capital and engagement in foreign trade. We argue that these analysis and results, coupled with inclusive and targeted policies, can be used to enrich the process of private sector innovation in the region’s countries.
    Keywords: Firm innovation, access to finance, human capital, foreign trade
    JEL: G0 J24 O31 P33
    Date: 2013–02–17

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