nep-tra New Economics Papers
on Transition Economics
Issue of 2014‒12‒24
33 papers chosen by
J. David Brown
United States Census Bureau

  1. Problems of the transborder spatial planning in the North-West of Russia By Gennady Fedorov
  2. To raise or not to raise: Impact assessment of Russia's gas price reform By Christophe Heyndrickx; Victoria Alexeeva-Taleebi; Natalia Tourdyeva
  3. Inequality of level of living in the Russian Federation: some regional and municipal aspects By Anna Bufetova
  4. Interregional Inequality and Federal Expenditures and Transfers in Russia By Alexander Torbenko
  5. Approaching integrated urban-rural development in China: The changing institutional roles By Yuheng Li; Zhichao Hu; Yansui Liu
  6. Four pillars of job applicant screening in China By HLASNY, Vladimir
  7. Industrial Agglomeration and Dispersion in China: Spatial reformation of the "workshop of the world" By ITO Asei
  8. A DSGE Model of China By Dai, Li; Minford, Patrick; Zhou, Peng
  9. Carbon Policy in a High Growth Economy: The case of China By Lucas Bretschger; Lin Zhang
  10. Gift-giving and Network Structure in Rural China: Utilizing Long-term Spontaneous Gift Records By Chen, Xi
  11. The settlements of the North: sustainable development or disappearance (case of Yakutia) By Tuyara Gavrilyeva
  12. Infrastructure of Public-Scientific Partnership (PSP) in Spatial Development of the Russian Far-East and North-Eastern Asia By Boris Krasnopolski
  13. Village Political Economy, Land Tenure Insecurity, and the Rural to Urban Migration Decision: Evidence from China By Giles, John T.; Mu, Ren
  14. Poverty in China Seen from Outer Space By Almås, Ingvild; Johnsen, Åshild Auglænd; Kotsadam, Andreaa
  15. Product Quality and Intra-Industry Trade By Tadashi Ito; Toshihiro Okubo
  16. Exploring the international connectivity of Chinese inventors in the pharmaceutical industry By Alessandra Perri; Vittoria Giada Scalera; Ram Mudambi
  17. Strong versus Weak Ties in Migration By Giulietti, Corrado; Wahba, Jackline; Zenou, Yves
  18. Wage growth, landholding, and mechanization in Chinese agriculture By Wang, Xiaobing; Yamauchi, Futoshi; Otsuka, Keijiro; Huang, Jikun
  19. Population Structures in Russia: Optimality and Dependence on Parameters of Global Evolution By Yuri Yegorov
  20. Pro-environmental Behaviors, Energy Efficiency and Sustainable Development in Russia By Svetlana Ratner
  21. FDI, structural change and productivity growth: global supply chains at work in Central and Eastern European countries By Jože Damijan; Črt Kostevc; Matija Rojec
  22. The role of geo-economic space elements in the development of national economic interests By Inna Semenova; Stanislav Lachininskii
  23. Trends in Restructuring NMS Regional Economies as Responses to Transformation, Crisis and EU Membership. A Spotlight on Suceava County By Bogdan-Vasile Ileanu; Zizi Goschin; Daniela-Luminita Constantin; Constantin Mitrut; Amalia Cristescu
  24. Shocks Abroad, Pain at Home? Bank-firm Level Evidence on the International Transmission of Financial Shocks By Ongena, S.; Peydro, J.L.; van Horen, N.
  25. Clearing Systems of Central and Eastern Europe, waiting for the TARGET2 Securities By Andrea Kriskó
  26. High Dimensional Correlation Matrices: CLT and Its Applications By Jiti Gao; Xiao Han; Guangming Pan; Yanrong Yang
  27. Assessing Market Failures in Export Pioneering Activities: A Structural Estimation Approach By Wei, Shang-Jin; Wei, Ziru; Xu, Jianhuan
  28. Cross-border relationships of Central-European higher education institutions By Andrea Uszkai; Zsolt Dános
  29. Implicatiile crizei financiare asupra adoptarii euro, in conditiile convergentei economice. Cazul Romaniei By Mihaiteanu, Sanda
  30. R&D and Regional Regeneration. The Case of Alba Subregion in Romania By Zizi Goschin; Georgiana-Gloria Goschin
  32. Implementation of a New School Supervision System in Poland By Grzegorz Mazurkiewicz; Bartłomiej Walczak; Marcin Jewdokimow
  33. Teaming up or writing alone - authorship strategies in leading Polish economic journals By Grażyna Bukowska; Jan Fałkowski; Beata Łopaciuk-Gonczaryk

  1. By: Gennady Fedorov
    Abstract: Regional planning in Russia includes strategic and spatial planning. The spatial planning is implemented in accordance with the Town Planning Code of the Russian Federation (2004) at the federal, regional and municipal level. It installs functional zones, zones of planned capital construction objects for state or municipal needs, zones of special use conditions. There have been identified and are being studied many possibilities of development and implementation of joint projects of territorial planning of subjects of Northwest of Russia with border countries. Unfortunately, Russia is extremely sluggish in participation in the program VASAB, while in the program Interreg IV (2007-2013), implemented within the framework of the European Neighbourhood and Partnership Instrument - Interreg IVA 'The Baltic Sea Region' Russian organizations are involved only as associate members. However, Russia is involved in cross-border cooperation programs such as Interreg IVB: 'Kolarctic', 'Karelia', 'South-East Finland / Russia', 'Estonia / Latvia / Russia', 'Poland / Lithuania / Russia'. Precondition for expanding and deepening joint development is activities of 7 Euroregions. There is the definite value in the Local border traffic between Russia (the Kaliningrad region) and neighboring provinces of Poland. There are a number of specific proposals, developed by scientists from Russia, Poland, Finland, the Baltic countries in the development of both national and international projects. Among them are: the formation of the South-Baltic and East-Baltic growth triangles, the creation of a bipolar system of territorial Tricity (Gdansk ? Gdynia ? Sopot) ? Kaliningrad and tripolar system, including also Klaipeda, the cross-border cluster on both sides of the Russian-Estonian border, common resources-use of Vistula Bay and its coast by Russia and Poland, increased production functions of Euroregions, the formation of cross-border regions, etc. Preparation of joint projects of territorial planning in the new Cross-border cooperation program (2014 ? 2020), in the framework of activities of Euroregions and other forms of international cooperation , even in the absence of an appropriate legislative framework would be very useful for the development of border regions of neighboring countries and the adjustment of their own documents. Would be very useful as soon as possible to pass a federal law 'On the cross-border cooperation'. Moreover, for the border regions of the Russian Federation the inclusion of recommendations for the development of joint cross-border projects in the strategic documents and spatial planning at the federal, regional and municipal levels will be even more effective.
    Keywords: transborder regions; spatial planning; Baltic region; North-West of Russia;
    JEL: R
    Date: 2014–11
  2. By: Christophe Heyndrickx; Victoria Alexeeva-Taleebi; Natalia Tourdyeva
    Abstract: One of grand challenges which are faced by Russia today is to deregulate its gas market while favouring longer-term growth of economy. Since the 1990s, several proposals for structural reforms of Russian gas industry have been intensively debated, including the split-up of Gazprom. From the mid-2000s onwards, the key component of the reforms has become the introduction of a new pricing scheme for natural gas supply at the domestic markets. This is claimed to fit in a policy promoting energy efficiency, increasing investments in natural gas production and bringing the natural gas price on the domestic market closer to long term cost recovery. Underpricing of natural gas at the domestic markets was an explicit feature of the Soviet era, aimed at stimulating industrial growth. In the post-Soviet period, domestic gas prices were kept at relatively low levels to back up economic recovery, though this strategy had become increasingly untenable by 2006 in the light of Gazprom's investment needs into new extraction fields. A number of studies supported an upward price correction as a prerequisite for any structural reforms of Russian gas industry. Price increases on domestic market have been considered as a remedy to overcome the risk of a shortage in Russian gas sector. Since then domestic gas prices have been following a steady upward trend. The average regulated gas prices for both industrial consumers and private households have more than doubled from 2006 to 2011 . Nonetheless, today Russian consumers pay one third of the gas price charged abroad.. The growing momentum for gas price liberalization in Russia is increasingly constrained by fears of potentially strong adverse impact that market-based price setting principle will have on the economy. Based on a novel multi-regional, multi-sector and multi-household computable general equilibrium (CGE) model of the Russian Federation, this paper presents a simple yet a flexible framework for evaluating gas price reform. We found that the reform is feasible at low economic cost, without greater disparities in terms of increased inequity within and between country's federal districts. Large redistributive impacts can arise from specific mechanisms to recycle revenues. In terms of global environmental credentials, gas price liberalization can bring Russia on a substantially more sustainable path. The potential to foster adoption of energy efficiency measures by exploiting the revenue-recycling effect is, however, limited.
    Keywords: Regional general equilibrium model; sustainable development; natural gas pricing; Russia
    JEL: D58 H21 H22 Q48
    Date: 2014–11
  3. By: Anna Bufetova
    Abstract: Social disparities in Russia were increasing since transition started in the 1990s on the background of decline of all social indicators. In the first decade of 2000-th growth of economy contributed to improvement of wellbeing of population. Policy of budgetary alignment and state social policy carried out in the first 10 years of 2000-th at the expense of redistribution of a resource rent was aimed at mitigation of social disparities. This empirical paper attempts to add evidence on the issue of disparities and convergence in levels of living within regions and cities of the Russian Federation (the RF) in the period 2000-2011. Combination of regional and urban aspects of analysis allows making assessment and examination of inequalities in level of living more adequate. The study covers 79 regions and 193 cities of the RF with population over 100,000. The paper considers various components of level of living: income, poverty rate, employment, quality and affordability of housing, health care and education and analyzes their differences between regions and between cities and their evolution in time. Quantitative analysis was complemented by analysis of qualitative characteristics of health services, education, housing in regions and cities. Further quantitative assessment of level of living in regions and cities is made on the base of synthetic indicator of level of living. Introduced indicator comprises information of different indicators and allows classification of RF regions and cities and evaluation of disparities and convergence tendencies of levels of living. The analysis of dynamics of the synthetic indicators of level of living provides evidence for regional convergence of levels of living and a slight mitigation of inter-city inequality of levels of living. But within the considered set of cities we can observe groups of cities that characterized by different dynamics of levels of living. Analyzing these groups we made an attempt to identify the main factors that determine the spatial trends in inequality in levels of living.
    Keywords: Regional Disparities; Level of living; inequality; cities; regional capitals; convergence; divergence; Russian Federation;
    JEL: R13
    Date: 2014–11
  4. By: Alexander Torbenko
    Abstract: The paper considers the influence of federal government expenditures and transfers on interregional convergence in gross regional product (GRP) per capita and wages in Russia over 2005?2011. Such an influence is not found. The federal government's policy was reactive and was not focused on decreasing interregional inequality during this period. Wages growth depended more on GRP per capita growth than on federal govern- ment spendings and transfers per capita growth. The dependence between GRP per capita growth and federal government spendings and transfers per capita growth was very weak. Moreover, the paper shows that in this period inequality of Russian regions in GRP per capita and wages was diminishing. In the given period in Russian regions there existed un- conditional beta-convergence, poor regions grew faster than rich ones. This result confirms the prediction of neoclassical theory of regional growth and challenges a new economic geography prediction. Comparing our results to the results of previous research the process of interregional convergence in Russia can be seen. In the 1990s, with the state pressure having been eliminated, the differentiation between Russian regions began, while in the 2000s a natural process of (conditional or unconditional) convergence started.
    Keywords: convergence; federal expenditures and transfers; wages; Russia; regions; gross regional product;
    JEL: C13 R11 R12 R58
    Date: 2014–11
  5. By: Yuheng Li; Zhichao Hu; Yansui Liu
    Abstract: Ever since the twenty-first century, the Chinese government has been undertaking a series of rural-favored policies and measures to promote comprehensive development in rural China. The fundamental purpose is to accomplish integrated urban-rural development (IURD) given the ever enlarging urban-rural inequalities during the post-reform era. Considering the long time biased policies against the countryside, the paper aims to examine the institutional roles in approaching the IURD. IURD at provincial level in China is assessed by the principal component analysis of selected variables which represent the socioeconomic integration between urban and rural areas. The institutional roles in promoting IURD include three aspects: decentralization in directing local rural development; employment, social security system and material circulation system which influence the free production factor flows between urban and rural areas; education, medical treatment and culture system which influence public services between urban and rural areas. We carry out panel data analysis to investigate the relationship between institutions and IURD at provincial level in China in the period 1980-2010. The analysis also controls variables such as locational factors, population density, per capita GDP in each province. The data mainly refers to Comprehensive Statistical Data and Materials on 60 Years of New China and National Statistical Yearbooks in recent years. Research results show significant and dynamic roles of institution in promoting IURD at different time periods.
    Keywords: urban-rural equalized development; urbanization; transformation; institutional roles; China
    Date: 2014–11
  6. By: HLASNY, Vladimir
    Abstract: Chinese employers practice extensive personal screening of job applicants. This study identifies four manifestations of this practice by motive – statistical, customer taste-based, employer taste-based, and regulatory – and evaluates their prevalence, economic determinants and implications for firms’ performance using simultaneous-equations linear and Poisson models. Categorization of a regulatory motive for applicant sorting in China is one contribution of this study. Statistical screening is found to be related positively to employers’ capital intensity, labor-market power and private ownership, and negatively to the supply of skills in provincial labor markets, as may be expected. Customer-taste screening is more prevalent in service and sales industries, as expected, and interestingly in wealthy first-tier cities. Employer-taste screening appears more prevalent at privately-owned firms, and surprisingly in skill-intensive industries and in first-tier cities, potentially reflecting difficulty at distinguishing it from customer-taste screening. Regulatory screening is related positively to firms’ market power, capital intensity and state ownership, as expected. Statistical and customer-taste screening is associated with higher firm profitability, particularly in skill-intensive industries and in service and sales industries, respectively, while employer-taste and regulatory screening is associated with lower profitability, as expected. These results jointly validate our identification of the four pillars of applicant screening.
    Keywords: Recruitment, Job applicant screening, Profiling, Statistical & taste-based discrimination, Hukou, China, Poisson regression, Simultaneous equations model
    JEL: J7 J24 D83
    Date: 2014–12
  7. By: ITO Asei
    Abstract: With rising labor costs in China, some scholars assert that its labor-intensive industries will succumb to latecomer economies, and China's era as the "workshop of the world" will end. There is, however, little agreement regarding whether labor-intensive industries, now concentrated along the coast, are relocating to other regions. How does agglomeration affect this relocation? How does this relocation process affect the Asian Production Network (APN)? To approach these issues, this paper examines the determinants of industrial relocation in China by using province- and city-level data from 2004 to 2010, which some scholars call the "post-Lewisian turning point." We particularly focus on the significant gap in economic development in China, especially in regard to industrial agglomeration and dispersion. The results show that the capital-labor ratio is positively related to industrial growth in the coastal areas but negatively related in the central regions. Although agglomeration economies have been weak, the absolute scale of local industry includes a positive effect. In sum, both dispersion and agglomeration forces are observed, suggesting the existence of multi-force dynamics of spatial relocation in China.
    Date: 2014–11
  8. By: Dai, Li; Minford, Patrick; Zhou, Peng
    Abstract: We use available methods for testing macro models to evaluate a model of China over the period from Deng Xiaoping's reforms up until the crisis period. Bayesian ranking methods are heavily influenced by controversial priors on the degree of price/wage rigidity. When the overall models are tested by Likelihood or Indirect Inference methods, the New Keynesian model is rejected in favour of one with a fair-sized competitive product market sector. This model behaves quite a lot more 'flexibly' than the New Keynesian.
    Keywords: Bayesian Inference; China; DSGE; Indirect Inference
    JEL: C11 C15 C18 E27
    Date: 2014–06
  9. By: Lucas Bretschger; Lin Zhang
    Abstract: There is widespread concern that an international agreement on stringent climate policies will not be reached because it would imply too high costs for fast growing economies like China. To quantify these costs we develop a general equilibrium model with fully endogenous growth. The framework includes disaggregated industrial and energy sectors, endogenous innovation, and sector-specic investments. We nd that the implementation of Chinese government carbon policies until 2020 causes a welfare reduction of 0.3 percent. For the long run up to 2050 we show that welfare costs of internationally coordinated emission reduction targets lie between 3 and 8 percent. Assuming faster energy technology development, stronger induced innovation, and rising energy prices in the reference case reduces welfare losses signicantly. We argue that increased urbanization raises the costs of carbon policies due to altered consumption patterns.
    Keywords: Carbon policy, China, Endogenoous growth, Induced innovation, Urbanization
    JEL: Q54 O41 O53 C68
    Date: 2014
  10. By: Chen, Xi (Yale University)
    Abstract: The tradition of keeping written records of gift received during household ceremonies in many countries offers researchers an underutilized means of data collection for social network analysis. This paper first summarizes unique features of the gift record data that circumvent five prevailing sampling and measurement issues in the literature, and we discuss their advantages over existing studies at both the individual level and the dyadic link level using previous data sources. We then document our research project in rural China that implements a multiple wave census-type household survey and a long-term gift record collection. The pattern of gift-giving in major household social events and its recent escalation is analyzed. There are significantly positive correlations between gift network centrality and various forms of informal insurance. Finally, economic inequality and competitive marriage market are among the main demographic and socioeconomic determinants of the observed gift network structure.
    Keywords: gift-giving, long-term gift record, social networks, centrality, China
    JEL: C8 D1 R2 Z1
    Date: 2014–11
  11. By: Tuyara Gavrilyeva
    Abstract: Study of disparitiesbetween Russia's territories is mostly carried at the level of the subjects of the Russian Federation or cities with similar populations. Comparative analysis of settlements is obstructed by incomplete statistics, imperfection of tax and account rules and effect of shadow sector. Predominantly the base of comparative analysis of settlements is the data of National Population Census (2002 and 2010). However such studies allow us to determine the main long-term trends in the development of settlements. As known, the imbalance of legislation about local governments does not leave for Russian settlements own resources of growth. Until recently, the concept of uniform development dominated. It suggests the equalizing of social and economic condition of settlements. In Yakutia, this approach is realized by storing of redundant of public institutions and employment. As a result, Yakutia face with budget problems and the quality of life declines. In rural settlements jobs are created only in the public sector. There is a reproduction of rural poverty. All of this stimulates the migration of people in cities for the last 20 years. But these trends do not impact on economic policy. The Government of Yakutia seeks to preserve the rural settlements. The research is based on the use of econometric methods in the study of those disparities. There was created a database for the 2006/2007 and 2010/2012. It includes 389 settlements of Yakutia. Analysis of the data allowed selected all settlements by population. The indices of the demographic potential, the quality of public service, the transport availability, the financial security and the economic activity were calculated by using econometric methods. Analysis allowed to identify the production specialization of settlements and their types, including unpromising (must be disappeared), depressive, stagnating and growth point. Dynamic analysis shows that the settlements with more than 2,000 people are sustainable. Settlements with smaller populations are usually depressed. There was created the vector of settlement protection from the closure. It means that the settlements of historical significance and settlements with traditional economies (reindeer herding and fishing) don't have to be closed. Analysis showed the necessity of moving from the concept of uniform development to the principles of selective development. It requires new approaches to regional policies in Russia.
    Keywords: settlement; comparative analysis; econometrics; local statistics; North; disparities; depression; uniform; selective and sustainable development; C43 Index Numbers and Aggregation; P25 Urban; Rural; and Regional Economics; R11 Regional Economic Activity: Growth; Development; Environmental Issues; and Changes
    Date: 2014–11
  12. By: Boris Krasnopolski
    Abstract: Boris Krasnopolski Infrastructure of Public-Scientific Partnership (PSP) in Spatial Development of the Russian Far-East and North-Eastern Asia (JEL code R110) Keywords: Public-Scientific Partnership (PSP), PSP Infrastructure, Russian Far East, North-Eastern Asia, Declarations of Ministerial Conferences for Infrastructure Development The Public-Scientific Partnership (PSP) is examined as a mechanism of the interests' coordination of the regional scientific organizations, government bodies and local businesses in realization of the detailed scientific researches of the social-economic and ecological development and introduction of their applied results into the practical economy. The Infrastructure of PSP is a network of the "technological chain" between all these organizations that is created in the concrete region or in the inter-regional/international system. This infrastructure has the inside and outside elements. The implementation of this project is based on the huge complex of the scientific researches described in the monograph "Pacific Russia ? 2050" (Synthesis of the applied results of the scientific-technical and economic prognosis / editors: P. Minakir, V. Sergienko), Vladivostok, 2011. First of all, the regional and inter-regional/international analysis of development of the inside and outside elements of the PSP infrastructure should be realized. It is reviewed all the necessary technological chains: "scientific organizations - government structures ? local businesses" on example of the Russian Far East by the most important economic branches. The estimation of the main international infrastructure elements of PSP is realized also for the North-Eastern Asia. The role of all these countries, including Russian Far-East, is discussed in formation of the inter-regional infrastructure network and the institutional state and regional bodies for practical realization on the infrastructure projects in this zone. These analysis and estimations are based on the Declarations of the Asia-Pacific Ministerial Conferences on Public-Private Partnerships (PPP) for Infrastructure Development in Jakarta and Tehran (2010 and 2012) including materials of a High-level Expert Group Meeting in Tehran (2012) organized by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The foreign experience of the organizational-methodical approaches in the use of the regional analysis and mechanisms of the infrastructure formation is discussed also in connections with the scientific researches in the area of the spatial economy.
    Keywords: Public-Scientific Partnership (PSP); PSP Infrastructure; Russian Far East; North-Eastern Asia; Declarations of Ministerial Conferences for Infrastructure Development; R110
    Date: 2014–11
  13. By: Giles, John T. (World Bank); Mu, Ren (Texas A&M University)
    Abstract: This paper investigates the impact of land tenure insecurity on the migration decisions of China's rural residents. A simple model first frames the relationship among these variables and the probability that a reallocation of land will occur in the following year. After first demonstrating that a village leader's support for administrative land reallocation carries with it the risk of losing a future election, the paper exploits election-timing and village heterogeneity in lineage group composition and demographic change to identify the effect of land security. In response to an expected land reallocation in the following year, the probability that a rural resident migrates out of the county declines by 2.8 percentage points, which accounts for 17.5 percent of the annual share of village residents, aged 16 to 50, who worked as migrants during the period. This finding underscores the potential importance of secure property rights for facilitating labor market integration and the movement of labor out of agriculture.
    Keywords: migration, land tenure, property rights, China, village political economy
    JEL: O12 O15 J61 Q15 R23
    Date: 2014–11
  14. By: Almås, Ingvild (NHH Norwegian School of Economics and University of Oslo,); Johnsen, Åshild Auglænd (University of Stavanger Business School); Kotsadam, Andreaa (Dept. of Economics, University of Oslo)
    Abstract: Estimates of poverty are highly sensitive to price and income measures across time and space. This paper offers a complementary approach to traditional poverty measurement that ensures comparability: we use nighttime light as a proxy for poverty measurement. We measure the percentage of populated areas in China with no nighttime light, and the percentage of the population living in these areas.Between 1992 and 2005, both measures reveal a steady decrease in poverty in China. From 2005 to 2010, however, we find no evidence of a significant poverty reduction.
    Keywords: China; Poverty; Nighttime light
    JEL: I30 I32 O10
    Date: 2014–06–23
  15. By: Tadashi Ito; Toshihiro Okubo
    Abstract: In this study, we argue that the conventional intra-industry trade (IIT) index does not directly address the quality issue and propose a methodology to make full use of unit-price gap information to deduce quality differences between simultaneously exported and imported products. By applying this measure to German trade data at the eight-digit level, we study the quality change of Chinese export goods in its IIT with Germany. We compare the case of China with those of Eastern European countries, which are also major trading partners of Germany. Our results show that the unit-value difference in IIT between Germany and Eastern European countries is clearly narrowing. However, China’s export prices to Germany are much lower than Germany’s export prices to China, and this gap has not narrowed over the last 23 years. This is at odds with the common perception that China’s product quality has improved, as documented by Rodrik (2006) and Schott (2008). Our results support Xu (2010), which argued that incorporating the quality aspect of the exported goods weakens or even eliminates the evidence of the sophistication of Chinese export goods in Rodrik (2006).
    Date: 2014–12
  16. By: Alessandra Perri (Dept. of Management, Università Ca' Foscari Venice); Vittoria Giada Scalera (Dept. of Management, Economics and Industrial Engineering, Politecnico di Milano); Ram Mudambi (Dept. of Strategia Management, Temple University)
    Abstract: This paper explores the integration of emerging countries into the global system of innovation, as a channel for their technological catch-up. Using data on the innovative activity in the Chinese pharmaceutical industry, we analyze the geographic dispersion of inventor networks linked to China, as a function of the characteristics of the innovative actors that coordinate their inventive work.
    Keywords: Emerging Countries, Technological Catch-Up, FDI
    JEL: M16
    Date: 2014–12
  17. By: Giulietti, Corrado; Wahba, Jackline; Zenou, Yves
    Abstract: This paper studies the role of strong versus weak ties in the rural-to-urban migration decision in China. We first develop a network model that puts forward the different roles of weak and strong ties in helping workers to migrate to the city. We then use a unique longitudinal data that allows us to test our model by focusing on first-time migration. Strong ties are measured by the closest family contact (excluding household members) while weak ties are determined by the fraction of migrants from the village in which the individual resides. We address the endogeneity of the network formation in the migration decision. Our results indicate that both weak and strong ties matter in the migration decision process, although the impact of weak ties is higher than that of strong ties. We also show that one underestimates the effect of social networks on migration by not taking into account the strong ties in the mobility process. We finally find that weak and strong ties act as complements in the migration decision, which indicates that the interactive effect between weak and strong ties is particularly strong above a certain threshold of the size of weak ties.
    Keywords: China; internal migration; social networks
    JEL: J61 O15
    Date: 2014–11
  18. By: Wang, Xiaobing; Yamauchi, Futoshi; Otsuka, Keijiro; Huang, Jikun
    Abstract: This paper uses farm panel data from China to examine the dynamics of land transactions, machine investments, and the demand for machine services. Recently, China's agriculture has experienced a large expansion of machine rentals and machine services provided by specialized agents, which has contributed to mechanization of agricultural production. The empirical results show that an increase in nonagricultural wage rates leads to expansion of self-cultivated land size. A rise in the proportion of nonagricultural income or the migration rate also increases the size of self-cultivated land. Interestingly, however, relatively educated farm households decrease the size of self-cultivated land, which suggests that relatively less educated farmers tend to specialize in farming. The demand for machine services has also increased if agricultural wage and migration rate increased over time, especially among relatively large farms. The results on crop income support the complementarity between rented-in land and machine services (demanded), which implies that scale economies are arising in Chinese agriculture with mechanization and active land rental markets.
    Keywords: Rural Development Knowledge&Information Systems,Economic Growth,Labor Policies,Regional Economic Development,Land Use and Policies
    Date: 2014–12–01
  19. By: Yuri Yegorov
    Abstract: The paper is devoted to analytical investigation of the division of geographical space into urban and rural areas with application to Russia. Yegorov (2005, 2006, 2009) has suggested the role of population density on economics. A city has an attractive potential based on scale economies. The optimal city size depends on the balance between its attractive potential and the cost of living that can be proxied by equilibrium land rent and commuting cost. For moderate scale effects optimal population of a city depends negatively on transport costs that are related positively with energy price index. The optimal agricultural density of population can also be constructed. The larger is a land slot per peasant, the higher will be the output from one unit of his labour force applied to this slot. But at the same time, larger farm size results in increase of energy costs, related to land development, collecting the crop and bringing it to the market. In the last 10 years we have observed substantial rise of both food and energy prices at the world stock markets. However, the income of farmers did not grow as fast as food price index. This can shift optimal rural population density to lower level, causing migration to cities (and we observe this tendency globally). Any change in those prices results in suboptimality of existing spatial structures. If changes are slow, the optimal infrastructure can be adjusted by simple migration. If the shocks are high, adaptation may be impossible and shock will persist. This took place in early 1990es in the former USSR, where after transition to world price for oil in domestic markets existing spatial infrastructure became suboptimal and resulted in persistent crisis, leading to deterioration of both industry and agriculture. Russia is the largest country but this is also its problem. Having large resource endowment per capita, it is problematic to build sufficient infrastructure. Russia has too low population density and rural density declines further due to low fertility and migration to cities. Those factors limited the growth of the USSR, but after the economic reforms of 1990s the existing infrastructure became exposed to permanent shock of high transport costs. Due to large distances it is optimal to return to gasoline and thus transport subsidy. This will work also against disintegration of the country.
    Keywords: urban; rural; population density; prices; transport; transition.
    JEL: R14 R23 R40 R48
    Date: 2014–11
  20. By: Svetlana Ratner
    Abstract: The studies of environmental awareness or the so-called people's pro-environmental behaviors (PEBs) became a popular topic in Europe, North America and Asia, but not yet in Russia. Many studies investigated PEBs revealed that monetary saving and health concern are considered to be the most common influential factors for many PEBs. Because of the lowest electric power and heat tariffs in the world as well as abundant natural resources it can be assumed that the level of environmental awareness in Russia is low comparing to EU. Nowadays this problem can became a barrier for innovative development and diffusion of new energy efficient technologies. In this paper we present the results of empirical research aiming evaluation of environmental awareness in one of the southern region of Russia ? Krasnodar region. In research we also evaluate the informational transparency in the field of ecology in Russia and distinguish the most popular sources of information. The method of research is medium-scale face-to-face inquiry. The survey involved 112 respondents from one big city (Krasnodar), it's suburbs, several small cities and rural areas. Data analysis was performed using StatSoft STATISTICA 10.0. The non-parametric Mann-Whitney tests and Kruskal?Wallis one-way analysis of variance were used to reveal the optimal quantification that describes the relationships between the categorical scores of each variable as well as the relationships between the variables themselves. In order to identify relationships between variables, measured in nominal scales, contingency tables (cross tabulation) were used. In some cases (where it was appropriate) correlation analysis and one-way ANOVA were used.
    Keywords: environmental awareness; pro-environmental behaviors; informational transparency; sustainable development; regional economy; nonparametric analysis; multiple correspondence analysis
    JEL: O13 Q21 Q42 Q51
    Date: 2014–11
  21. By: Jože Damijan (University of Ljubljana, Faculty of Economica, Institute for Economic Research); Črt Kostevc (University of Ljubljana, Faculty of Economica, Institute for Economic Research); Matija Rojec (University of Ljubljana, Faculty of Social Sciences, Institute for Macroeconomic Analysis and Development)
    Abstract: This paper empirically accounts for the importance of the 'global supply chains' concept for export restructuring and productivity growth in Central and Eastern European Countries (CEECs) in the period 1995-2007. Using industry-level data and accounting for technology intensity, we show that FDI has significantly contributed to export restructuring in the CEECs. The effects of FDI are, however, heterogeneous across countries. While more advanced core CEECs succeeded in boosting exports in higher-end technology industries, non-core CEECs stuck with export specialization in lower-end technology industries. This suggests that question towards which industries FDI flows have been directed, is of key importance. Our results show that export restructuring and economic specialization brought about by FDI during the last two decades in the CEECs might matter a lot for their potential for long-run productivity growth. Industries of higher-end technology intensity have experienced substantially higher productivity growth and so countries have been more successful in attracting FDI to these industries.
    Keywords: trading agreements, developing countries, economic reforms
    JEL: F21 F23 L60 O14
  22. By: Inna Semenova; Stanislav Lachininskii
    Abstract: Direct investments, cooperation links, information flows, global infrastructure, as well as agglomeration effect, fill up the space with geo-economic content. In this paper, a classification of the main territorial elements of globalized geo-economic space (GGS) was done. In that way, we especially mark out the ports and port-cities. However, if the role of these ' hotbeds ' of economic activity is estimated very clearly in the view of global economic agents (the speed of operation, the presence of a full-service, single-window effect, cost and time savings, additional markets and new resources), but contribution of this elements to the home economy of a particular country or region and its connectivity with hinterland are the subject of a certain study. Thus, based on spesial literature and statistical data the different types of the major elements of GGS of the USA., Western Europe, China were formulated, also its competitivness, impacts to the development of home economy were evaluated. In our work, we emphasize that the effect of the proximity to such centers sometimes goes far enough beyond their formal boundaries and has a decisive influence on the development of a space at different levels. There is a vivid example of Dongguan (China), located in Guangdong Province. Thanks to the neighborhood of Hong Kong - world city of alpha-group (according to Peter J. Taylor, World city network: a global urban analysis. Routledge 2004), this city took the leading position in the world for the production of electronic products, its population has exceeded 7 million people, an average annual GDP growth from 1980-2005 was 22%. So, economic and geographical approach to this problem most fully reflects the whole range of economic relationships between territories. On the other hand, a high traffic, economic, tourist activity also leads to the creation of specific issues for their respective regions, especially environmental. These problems, in that point of view, are inside and solved through regions' own resources. Therefore, in the paper we also studied administrative management features of separate elements, which meet with modern environmental standards and their requirements for the participants of value-added chains. The study of foreign experience elements of geo-economic space allows us to make some analogies and draw conclusions about the prospects for the development of Ust-Luga port in St.-Petersburg coastal region as a global importance contact zone and growth poles of the national economy.
    Keywords: geo-economy; coastal region; city-port; globalization; cluster; geo-advantage; global city
    Date: 2014–11
  23. By: Bogdan-Vasile Ileanu; Zizi Goschin; Daniela-Luminita Constantin; Constantin Mitrut; Amalia Cristescu
    Abstract: The current research has concentrated on the following questions: What are the trends in restructuring Suceava's economy and which regional development factors were the most important (exogenous, endogenous, structural, socio-political ones, etc.)? Which is the relationship between social disparities and economic growth? Which regional/local policies proved to be the most successful for economic regeneration? How important was the external intervention for county's development? In order to respond these questions in-depth interviews were carried out with representatives of county and city office, national and regional authorities, Regional Development Agency, chambers of commerce, business associations, higher education institutions, and implementing authorities. Also, statistical socio-economic data were gathered and processed and strategic documents on development strategy, as well as various reports on evaluations of public policies have been studied. The study has been conducted within the GRINCOH FP7 project.
    Keywords: restructuring; transition; crisis; EU financial assistance; Romania; Suceava county;
    JEL: R11 R38
    Date: 2014–11
  24. By: Ongena, S. (Tilburg University, Center For Economic Research); Peydro, J.L.; van Horen, N.
    Abstract: Abstract: We study the international transmission of shocks from the banking to the real sector during the global financial crisis. For identification, we use matched bank-firm level data, including many small and medium-sized firms, in Eastern Europe and Central Asia. We find that internationally-borrowing domestic and foreign-owned banks contract their credit more during the crisis than domestic banks that are funded only locally. Firms that are dependent on credit and at the same time have a relationship with an internationally-borrowing domestic or a foreign bank (as compared to a locally-funded domestic bank) suffer more in their financing and real performance. Single-bank-relationship firms, small firms and firms with intangible assets suffer most. For credit-independent firms, there are no differential effects. Our findings suggest that financial globalization has intensified the international transmission of financial shocks with substantial real consequences.
    Keywords: international transmission; firm real effects; foreign banks; international wholesale funding; credit shock
    JEL: G01 G21 F23 F36
    Date: 2013
  25. By: Andrea Kriskó
    Abstract: Clearing Systems of Central and Eastern Europe, waiting for the TARGET2 Securities I investigate the clearing systems in Europe, and try to assess the condition of clearing houses before the launch of TARGET2 Securities. I examine the levels of development in the different regions, looking at how we can interpret the core-periphery relationship. I give an overview of the ancillary systems and I examine which of these could provide a basis for the operation of TARGET2 Securities. I also reflect on the kinds of clearing practices prevalent today in areas outside the EU. I try to summarize the significance of the first connection wave, why and how the countries follow each other. How is it possible that Euroclear, the most famous clearing house only step is only planning to enter the system in a second wave, although it plays a central role in the European settlement processes? I assess whether the countries left out have to face a lag or real separation, or it is a simple ancillary way to join to the whole European system. Another very interesting question is whether joining the T2S is a real choice, or growing up to the European financial system is a necessary process. I make a detour in the direction of the characteristics of the Polish, Czech and Hungarian clearing systems, I show the settlement activity of Bulgaria and Albania. I will discuss desires, hopes and visions, the possible advantages of the new settlement platform, the factors and ideas that have promoted the process of joining T2S. I examine adaptive strategies that were created to offset the impact of the crisis. I shed light on whether globalization exerts pressure in the direction of clearing houses becoming universal, or specialization and fighting for a market gap will continue. Which fileds are unexploited? How can we find growth potential? Can the cheap labour force and Internet-based communication abolish the geographic differences? Is it all the same where we operate a clearing house? By any chance can we see an Americanization process in the clearing sector? (SWIFT-roots, English correspondence standards, common language for work, first of all English) To answer these questions, first of all I use the clearing house announcements and operating documents and I accomplish secondary statistical analysis using historical databases. Keywords: TARGET2 Securities, clearing houses, financial standards JEL Code: G21 (Banks ? Depository Institutions ? Micro Finance Institutions ? Mortgages)
    Keywords: TARGET2 Securities; clearing houses; financial standards;
    JEL: G21
    Date: 2014–11
  26. By: Jiti Gao; Xiao Han; Guangming Pan; Yanrong Yang
    Abstract: Statistical inferences for sample correlation matrices are important in high dimensional data analysis. Motivated by this, this paper establishes a new central limit theorem (CLT) for a linear spectral statistic (LSS) of high dimensional sample correlation matrices for the case where the dimension p and the sample size n are comparable. This result is of independent interest in large dimensional random matrix theory. Meanwhile, we apply the linear spectral statistic to an independence test for p random variables, and then an equivalence test for p factor loadings and n factors in a factor model. The finite sample performance of the proposed test shows its applicability and effectiveness in practice. An empirical application to test the independence of household incomes from different cities in China is also conducted.
    Keywords: Central limit theorem; equivalence test; high dimensional correlation matrix; independence test; linear spectral statistics.
    JEL: C21 C32
    Date: 2014
  27. By: Wei, Shang-Jin; Wei, Ziru; Xu, Jianhuan
    Abstract: The paper provides a first structural-estimation-based assessment of an influential hypothesis that export pioneers are too few relative to social optimum due to knowledge spillover in new market explorations. Such market failure requires two inequalities to hold simultaneously: the discovery cost is greater than any individual firm'’s expected profit but smaller than the sum of all potential exporters' expected profits. Neither has to hold in the data. We estimate the structural parameters based on the customs data of Chinese electronics exports. While we find positive discovery cost and spillovers, "missing pioneers" are nonetheless a low probability event.
    Keywords: discovery cost; industrial policy; knowledge spillover
    JEL: F10 F13
    Date: 2014–10
  28. By: Andrea Uszkai; Zsolt Dános
    Abstract: This paper focuses on the Central-European (so called „centrope") region. This region was created by a co-operation project 10 years ago, and also functions today including Vienna and other Austrian provinces such as Lower Austria and Burgenland, the region of South-Moravia in the Czech Republic, the region of Bratislava and Trnava in Slovakia, Gyõr-Moson-Sopron and Vas counties in Hungary, and cities of Eisenstadt, St. Pölten, Brno, Bratislava and Trnava. The main objective of this study is to examine the implementing sectoral co-operation projects of R&D and tertiary education activities between the higher education institutions of the region and the intensity of these relations. Furthermore, we also concentrate on the depth of regional integration and networking from the point of view of the relationships in higher education, particularly the strength and the weaknesses of bilateral and multilateral relations, and also the absence of co-operation in different areas. Recent mobility surveys found that the rate of student mobility is low between the institutions in the region and there are no mutual exchange programs. The language barriers and the deficiency of the institutions' attractiveness were defined as the main reasons of the low mobility besides the lack of frequent relations. Although sectoral clusters were established inside the region with the membership of higher education institutions, the demand of regional co-operation in the institutions' strategies is unknown, and there are no available pieces of information about data sharing and long-term co-operation between the institutions in the functioning clusters (i.e. automotive industry). It must be examined what the main criteria are in the election of partners for current projects and how extended is the mutual partnership in the projects of the regional institutions. It is an essential analysis viewpoint whether there is a difference between higher education institutions with regard to the above depending on the location of the institution (including the relationships between the HEI's in own countries) and how this affects cross-border regional relationships. To sum up, the study intends to provide answers to how and in what areas does sectoral co-operation exist in the region among the higher education institutions and what is the rate of these projects comparing all projects of the institution, as well as to define the leading sectors of the co-operations.
    Keywords: university; Central-Europe; relationships; co-operation; project
    JEL: I23 R11
    Date: 2014–11
  29. By: Mihaiteanu, Sanda (Institutul National de Cercetari Economice al Academiei Romane, Institutul Bancar Roman)
    Abstract: An overview of the crisis manifested in Romania, but also in other European countries, proves multiple repercussions of a flawed and lacking of prudence lending policy. The complex mechanism of indebtedness propagation by multiple channels, including those financialisated, affected also borrowers, lenders and financial intermediaries, with visible and less predictable implications on the economy, prior to the crisis outset. In these circumstances, the economic convergence process of the implicated countries consisted of tough requirements limiting the internal imbalances or asymmetries. In the following, we detail the specific situation of our country, Romania.
    Keywords: Eurozone, macroeconomic evolution, economic strategy
    JEL: F36 G01
    Date: 2014–11
  30. By: Zizi Goschin; Georgiana-Gloria Goschin
    Abstract: Innovation and competitiveness are important factors for promoting economic growth not only nationally, but regionally as well. In Romania, research, development and innovation could be among the factors that are accountable for the increasing regional disparities, as the territorial distribution of R&D resources is very unbalanced. Romania is currently trying to define a regional strategy for R&D, as well as appropriate policies and priorities for innovation at regional level. In this context we address the issue of the regional intensity of R&D as one of the main determinants of economic growth in Alba county (subregion NUTS 3) in Romania. The Alba subregion can be considered an obvious example of a successful economic transformation since its GDP per capita increased more than 2 times in 10 years, based on a high rate of economic growth. We have analysed the regional intensity of R&D, measured as the share of total research and development expenditures in regional GDP, and have developed an economic growth model that aimed to capture the influence of R&D intensity alongside labour productivity, employment rate, human capital, the share of manufacturing in total economic activity, the extent of private entrepreneurship, and a dummy variable for economic crisis. The results point to a highly significant impact of research and development intensity on the long-run economic development of Alba county, as measured by GDP per capita. This positive effect of R&D on the economic performance in Alba county can be largely attributed to the creation and modernization of the business support infrastructure aimed at developing industrial parks, business incubators, industrial and scientific clusters, technological and logistic platforms, centers for research and transfer of technology, etc. These structures are designed to support business development in areas affected by industrial restructuring, but also economic activities in other areas with development potential in the county, providing favorable conditions for productive SME development, which can further contribute to economic development and job creation in both the underdeveloped and the rising areas in this subregion.
    Keywords: economic growth; regional regeneration; Alba county; Romania
    JEL: R11 R58
    Date: 2014–11
  31. By: Marta Zaleska; Zbigniew Mogi£A; Joanna Knap
    Abstract: The economic crisis and the declining competitiveness of Europe, led to the orientation of cohesion policy for smart growth based on knowledge and innovation. Poland and its regions are in a specific socio-economical position characterized by a low share of higher value-added products and high technology-intensive ones in total export. They still need to bridge the gap towards the more developed EU countries and regions by shaping their competitive advantage. The only way to develop and maintain a competitive advantage is to trigger knowledge- and innovation-based entrepreneurship. Cohesion policy funds open up great opportunities for innovation. Nowadays, when the programming period 2007 - 2013 came to an end, it is increasingly important to assess effectiveness of the EU intervention in the context of innovation. The main aim of this study is to present the methodology that allows to assess the role of the EU operational programs in determining the long-term development based on pro-innovative business sector. To present methodology clearly, it will be presented on the example of the Innovative Economy Operational Programme 2007 - 2013 (IE OP) for Lower Silesia region. The first stage of the study will contain a review of literature and a proposition of typology of innovations in the context of their impact on the long-term development. The detailed analysis of more than 100 projects under the IE OP in Lower Silesia will be done to assess effectiveness of the implementation of co-financed research & development projects. The aim of this stage is to deepen the knowledge about the positive and negative factors affecting the implementation of the results of R&D in practice. On the base of the typology and results from previous stages, projects will be classified to created categories of innovation (e.g. imitative, product-oriented, process-oriented etc.). The results will verify whether in the analyzed projects dominates imitative type of innovation, which is typical of regions that are still shortening the distance towards the centers of socio-economic development. This, however, can lead to an "average income trap" that does not guarantee non-cost competitiveness. The results of the study may be used in future analysis as a contribution to the macroeconomic quantitative studies of the cohesion policy impact.
    Keywords: regional development; innovation; cohesion policy
    Date: 2014–11
  32. By: Grzegorz Mazurkiewicz; Bartłomiej Walczak; Marcin Jewdokimow
    Abstract: This case study explores the strategies, processes and outcomes of an education reform in Poland which was introduced in 2009 and substantively changed the school inspection system. Its analysis looks in particular at the co-operation between the central and the local level throughout the implementation of the programme. In order to address the shortcomings of the prior inspection system, the reform combined internal and external evaluation in school supervision practice and put greater emphasis on collaboration among stakeholders. The results of the analysis show that the reform has had a great impact on the organisation of inspectorates, introducing modern principles such as teamwork and self-evaluation. Also, it affected the attitudes of important actors in the education system regarding the relevance of data to support internal and external school evaluation. The overall goals and aims of the reform gained the support of the various stakeholders. However, the implementation and communication processes were seen as deficient, especially in terms of a lack of capacity to roll out the reform as well as a lack of trust/disbelief that evaluation can be used for improvement, rather than the expected punitive purposes. Nevertheless, the reform achieved first structural steps towards building a culture of self-evaluation, which had thus far not been part of the Polish education system.<BR>L’étude de cas présentée ici examine l’amélioration des performances du système scolaire polonais au moyen d’un nouveau mécanisme d’évaluation introduit en 2009. Ce dernier s’appuie sur des structures conçues pour se substituer au dispositif d’inspection existant, ce qui rend la mise en oeuvre de la réforme difficile à plusieurs égards : aspects logistiques et structurels, changements d’allégeance et problèmes d’orgueil professionnel, ainsi que luttes de pouvoir entre les niveaux central/régional/local. Tandis que la majorité des enseignants et des directeurs touchés par la réforme soutenaient les objectifs généraux du programme, des doutes s’élevaient quant à la procédure de mise en oeuvre elle-même. Dans de telles configurations, un échange structuré entre les acteurs clefs faciliterait l’alignement des stratégies de mise en oeuvre avec les objectifs globaux de la réforme. La critique principale fustigeait un manque de capacités (moyens financiers ou connaissances) au niveau local pour la mise en oeuvre de la réforme, et un certain scepticisme quant à la possibilité d’utiliser l’évaluation pour susciter des améliorations sans recourir aux sanctions habituellement prévues. Néanmoins, la réforme a effectué les premières démarches vers le développement d'une culture de l'auto-évaluation, jusqu'à présent absente du système éducatif polonais.
    Date: 2014–12–01
  33. By: Grażyna Bukowska (Faculty of Economic Sciences, University of Warsaw); Jan Fałkowski (Faculty of Economic Sciences, University of Warsaw); Beata Łopaciuk-Gonczaryk (Faculty of Economic Sciences, University of Warsaw)
    Abstract: The returns to scientific collaboration have been widely acknowledged. The general trend observed in top scientific journals is an increase in collaborative activities both between researchers and between institutions, especially with regard to international co-authorship. Not only there is a growing number of papers written in co-authorship, but also there is an increase in the number of co-authors. In this paper, we investigate whether similar tendencies have emerged in the scientific community of economists in Poland. Using social network analysis, we focus on collaboration between researchers publishing in five leading Polish economic journals. We find that both the number of articles written in collaboration and average number of authors per article are steadily increasing. Yet, compared to what we observe in western economic journals, the scale of collaboration is modest. Furthermore, the increase in collaborative activity which we observe is not followed by a rise in collaboration with foreign co-authors.
    Keywords: oco-authorship network, Polish economic journals, collaboration strategies, scientific productivity
    JEL: I23 D85 Z13 D02
    Date: 2014

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