nep-tra New Economics Papers
on Transition Economics
Issue of 2014‒06‒07
nine papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Household fuel choice in urban China: A random effect generalized probit analysis By Zhang, Xiao-Bing; Hassen, Sied
  2. A Field Study of Chinese Migrant Workers' Attitudes toward Risks, Strategic Uncertainty, and Competitiveness By Li Hao; Daniel Houser; Lei Mao; Marie Claire Villeval
  3. Economic Ideas and Institutional Change: The Case of the Russian Stabilisation Fund By Ewa Dabrowska; Joachim Zweynert
  4. How Strong are the Linkages between Real Estate and Other Sectors in China? By Wenlang Zhang; Gaofeng Han; Steven Chan
  5. A Study on Circular Economy Implementation in China By Kui ZHOU; Dominique BONET FERNANDEZ; Chengcheng WAN; Akumba DENIS; Gael-Miguel JUILLARD
  6. The Regional Development Policy of Romania in the Post-Accession Period By Antonescu, Daniela
  7. Vietnam’s political economy: a discussion on the 1986-2016 period By Quan Hoang Vuong
  8. The State of Play in Poland's Unconventional Shale and Oil Development By J. Wesley Burnett; Randall W. Jackson; Robert Blobaum
  9. NAIRU estimates in transitional economy with extremely high unemployment rate: the case of the Republic of Macedonia By Trpeski, Predrag; Tevdovski, Dragan

  1. By: Zhang, Xiao-Bing (Department of Economics, School of Business, Economics and Law, Göteborg University); Hassen, Sied (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Using seven rounds of household survey data that span more than a decade, this paper analyzes the determinants of household fuel choice in urban China. Unlike the existing studies, we use an empirical strategy that takes into account the potential heterogeneous effects of socio-economic factors in households’ preference ordering. Robustness of this empirical strategy is checked against alternative methods. The results show that household fuel choice in urban China is related to fuel prices, household’s economic status and size, and household head’s gender, education and occupation. Our results suggest that policies and interventions that raise household income, reduce prices of clean fuel sources, and empower women in the household are of great significance in encouraging the adoption of clean energy sources.
    Keywords: Household fuel choice; Panel data; Random effect generalized probit model; Urban China
    JEL: C25 Q23 Q40 Q42
    Date: 2014–05
  2. By: Li Hao (Walton College - University of Arkansas); Daniel Houser (Interdisciplinary Center for Economic Science, George Mason University - George Mason University); Lei Mao (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I (UCBL)); Marie Claire Villeval (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I (UCBL))
    Abstract: Using a field experiment in China, we study whether migration status is correlated with attitudes toward risk, ambiguity, and competitiveness. Our subjects include migrants and non-migrants. We find that, migrants exhibit no differences from non-migrants in risk and ambiguity preferences elicited using pairs of lotteries ; however, migrants are significantly more likely to enter competition in the presence of strategic uncertainty when they expect competitive entries from others. Our results suggest that migration may be driven more by a stronger belief in one's ability to succeed in an uncertain and competitive environment than by risk attitudes under state uncertainty.
    Keywords: Migration; risk preferences; strategic uncertainty; ambiguity; field experiment
    Date: 2014
  3. By: Ewa Dabrowska (University of Erfurt, Hamburg Institute of International Economics); Joachim Zweynert
    Abstract: An intense discussion is taking place in International Political Economy on the influence of economic ideas on institutional change. Case studies so far have, however, mainly focused on the Western industrialised countries and research seems to be biased towards cases in which new ideas caused lasting institutional change. The present paper addresses these two shortcomings by analysing the case of the Russian Stabilisation Fund (SF). This case is an example both of the impact of global ideas on a non-Western emerging country and of a ‘near miss’ in the sense that imported neo-liberal ideas failed to assert themselves enduringly. Paradoxically, it can be shown how the neo-liberally based idea of the SF even contributed to the return to Soviet patterns of industrial policy. The main reason for this, we argue, is that the Fund’s implementation was not preceded by economic and political debates. Accordingly, the imported institution of the SF had to be filled with ideational content after its implementation.
    Keywords: Ideas and institutions, institutional transfer, policy-learning, Russia, stabilisation fund, bricolage
    JEL: B52 P28 Q33
    Date: 2014–04
  4. By: Wenlang Zhang (Hong Kong Monetary Authority); Gaofeng Han (Hong Kong Monetary Authority); Steven Chan (Hong Kong Monetary Authority)
    Abstract: International experience points to the critical role of stable property markets in maintaining financial stability. In China, the real estate sector has become increasingly important for the economy, but existing evidence has likely understated its importance as its linkages with other sectors have not been taken into account. This paper attempts to shed some light on these linkages which occur through both real and financial channels. Our analysis based on input-output tables shows that the linkages between the real estate and other sectors have strengthened through real channels, and that the real estate sector has been much more important to the economy's output than suggested by the share of its value added in total value added. The real estate industry is also closely linked to other sectors through various financial channels, including serving as collateral in credit expansion. We quantify these financial linkages by studying the spill-overs of credit risk across sectors using data of listed firms. In general, we find that corporate credit risk has risen in recent years, and that credit risk in the real estate sector can potentially have large-scale spill-over effects onto other sectors. Consequently, shocks to the property market could have much larger impact on the Chinese economy than suggested by headline figures.
    Date: 2014–05
  5. By: Kui ZHOU; Dominique BONET FERNANDEZ; Chengcheng WAN; Akumba DENIS; Gael-Miguel JUILLARD
    Abstract: Abstract: As one of the most well-known concepts concern with sustainable development, circular economy (CE) has been implemented in many countries since the end of last century. As one of the biggest developing countries, China achieved rapid economical growth associated with significant natural resource consumption and environmental degradation. Recognizing nation’s sustainable development needs a well coordinated economic growth and environment protection, China’s top administration heightened attention on ecological modernization, green growth, and low carbon development with a national circular economy strategy. In this research, with a purpose of better future practice of CE, we introduce the progress and status of CE implication in China, including introductions of CE supporting laws and regulations and a case study to provide readers a clearer view of the relevant issues in China.
    Keywords: Circular Economy, Implementation, China
    Date: 2014–06–02
  6. By: Antonescu, Daniela (Romanian Academy, National Institute of Economic Research)
    Abstract: The general objective of this study is to evaluate regional disparities and the territorial convergence under the impact of the cohesion policy, in the context of the European Union integration. The specific objectives on which the research included in this work focused are the following: specific objectives: (i) analysis and interpretation of main theories of regional science, evolution and influence factors, main representatives; (ii) analysis of regional disparities in Romania in different fields of activity; (iii) analysis of convergence at regional level within the European Union; (iv) assessing the impact of implementing regional policy in Romania; and (v) suggestions regarding a possible model of regional strategy for the future programming period, from the perspective of the Europe 2020 Strategy. The study contains certain quantitative and qualitative estimates on the economic effects generated by Structural Funds at regional level in Romania. The data and information presented in the research paper regarding the gross impact of allocated resources are verified by computing first an average level of obtained effects. By using currently existing qualitative and quantitative data and some analysis techniques of territorial convergence recognised at international level, the study presents the trends at regional and local level in certain fields of activity.
    Keywords: regional convergence, economic and social cohesion, regional programmes and policies, territorial disparities, evaluation
    JEL: R11 R12 F02
    Date: 2013–12
  7. By: Quan Hoang Vuong
    Abstract: Being a member of the thriving ASEAN and successfully implementing economic renovation (Doi Moi) have drawn the world's attention on Vietnam around the turn of the millennium. Some even expected a much faster pace of transformation, and renewed economic, AND political, reforms in Vietnam, or Doi Moi II.However, in the recent transition turmoil the Vietnamese economy has experienced some significant setback, and the solution for getting the country out of the downward spiral of low productivity, waning purchasing power and increasing costs of doing business cannot be worked out without addressing those political economy issues that have shaped the modus operandi of the nation's economic system. This article discusses the post-Doi Moi political economy in Vietnam, from 1986 to 2016 – when the 12th Congress of the Communist Party of Vietnam takes place – and prospects of reviving reform momentum in subsequent years.
    Keywords: Vietnam; economic transition; political economy; socialist; governance
    JEL: H10 O10 P20 P48
    Date: 2014–05–16
  8. By: J. Wesley Burnett (Division of Resource Management, West Virginia University); Randall W. Jackson (Regional Research Institute, West Virginia University); Robert Blobaum (Eberly College of Arts and Sciences, West Virginia University)
    Abstract: Following the huge gas and oil rush in the US, the world’s gas and oil companies have been eyeing reserves in other countries including Poland, which is believed to be sitting on one of the largest reserves in the European Union. The Poles, seeking to diversify their energy sources and meet EU emissions standards, which are driving up electricity costs, met the news with tremendous fanfare. Following initial geological assessments, major international oil and gas companies soon made announcements to begin drilling operations in Poland. However, one of the major challenges of shale gas development is that is often requires voluminous speculative activity before the gas is successfully extracted. In the U.S. this was not such a problem because of several adventuresome energy firms willing to take on risk, but in Poland (and Europe in general) such firms are rare, and in former communist countries these firms are rarer still. This lack of critical infrastructure coupled with bureaucratic red tape in the permitting process has led to slow growth in exploration activities in Poland. Will Poland be able to successfully develop these resources? This manuscript explores the current state of play in Poland’s unconventional gas and oil development.
    Keywords: shale gas development, energy policy, unconventional energy resources, Europe
    JEL: Q40 Q41 Q48
    Date: 2013–06
  9. By: Trpeski, Predrag; Tevdovski, Dragan
    Abstract: The paper provides time-varying NAIRU estimates for Macedonian economy for the period 1998-2012, which were obtained using Ball and Mankiw (2002) approach and additionally supplemented with iterative procedure proposed by Ball (2009). The results revealed that the Macedonian NAIRU has the hump-shaped path: the estimated NAIRU is 23.5 percent in the second quarter of 1998, peaks at 28.3 percent in the last quarter of 2005 and falls to 23.6 percent in the last quarter of 2012. The estimation is based on the corrected LFS unemployment rate for the employment in the grey economy.
    Keywords: NAIRU, unemployment, inflation, Macedonia
    JEL: E24 J64
    Date: 2014–03–21

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