nep-tra New Economics Papers
on Transition Economics
Issue of 2015‒01‒19
forty papers chosen by
J. David Brown
United States Census Bureau

  1. College Expansion and the Marginal Returns to Education: Evidence from Russia By Belskaya, Olga; Peter, Klara Sabirianova; Posso, Christian
  2. The effects of tobacco taxes on health : an analysis of the effects by income quintile and gender in Kazakhstan, the Russian Federation, and Ukraine By Irina Denisova; Polina Kuznetsova
  3. Should I Stay or Should I Go? Romanian Migrants during Transition and Enlargements By Andrén, Daniela; Roman, Monica
  4. Forecasting Czech GDP Using Mixed-Frequency Data Models By Michal Franta; David Havrlant; Marek Rusnak
  5. Firm-Level Productivity Spillovers in China's Chemical Industry: A Spatial Hausman-Taylor Approach By Badi H. Baltagi; Peter H. Egger
  6. The Reform Of Skill Formation In Russia: Regional Responses By Thomas F. Remington; Israel Marques
  7. The Structural Transformation in Central and Eastern European Agriculture By Fert Imre
  8. The patterns of patents in China: By Xie, Zhuan; Zhang, Xiaobo
  9. Export management and incomplete VAT rebates to exporters: the case of China By Sandra PONCET; Julien GOURDON; Laura HERING; Stéphanie MONJON
  10. The impact of outward FDI on the performance of Chinese multinationals By Cozza , Claudio; Rabellotti , Roberta; Sanfilippo, Marco
  11. What Happens To Happiness When People Get Older? Socio-Economic Determinants Of Life Satisfaction In Later Life By Marina G. Kolosnitsyna; Natalia A. Khorkina; Khongor N. Dorzhiev
  12. Анализ экономической целесообразности открытия франшизы Subway в Крыму By Tsoy, Nataly
  13. Puzzles of public opinion: Why Soviet population supports the transition to capitalism since the 1980S By Popov, Vladimir
  14. Monthly Report No. 7-8/2014 By Vasily Astrov; Rumen Dobrinsky; Vladimir Gligorov; Doris Hanzl-Weiss; Peter Havlik; Mario Holzner; Gabor Hunya; Michael Landesmann; Sebastian Leitner; Leon Podkaminer; Sandor Richter; Hermine Vidovic
  15. The Institutionalization Of The Party System In Russia: Opportunities And Threats At The Elections Of Governors By Yuriy O. Guyvoronskiy; Svetlana A. Karandashova; Elena V. Sirotkina; Anastasia Y. Shishorina
  16. Downward Nominal Wage Rigidity: Unions’ Merit Or Firms’ Foresight? By Alexander V. Larin
  17. Comparative Analusis Of Antitrust Policy Against Collusion In Some Transition Economies: Challenges For Effectiveness By Andrey V. Makarov
  18. Examining The Causes Of Systemic Corruption: The Case Of Kazakhstan By Tamara G. Nezhina
  19. Firms And Social Policy In The Post-Communist Bloc: Evidence From Russia By Israel Marques
  20. Evolving public expenditure in Chinese agriculture: Definition, pattern, composition, and mechanism: By Yu, Bingxin; Chen, Kevin Z.; Zhang, Yumei; Zhang, Haisen
  21. How Robust Is The Association Of Life Satisfaction With Value Congruence? A Study Of Constructed Socio-Demographic Groups In A Russian National Sample By Alyona A. Khaptsova; Shalom H. Schwartz
  22. Формирование системы дропшиппинга в России By Gadzhieva, Sevil
  23. Distortion effects of export quota policy : an analysis of the China raw materials dispute By Sarah Guillou
  24. Technological capabilities and growth: A study of economic convergence among Chinese prefectures By Federico Frattini; Francesco Nicolli; Giorgio Prodi
  25. Impact Evaluation of Development Programmes and Policies: Experiences from Viet Nam By Nguyen Viet, Cuong
  26. Инвестирование в деревоперерабатывающее предприятие в Калининградской области By Starovoytov, Konstantin
  27. Oil Price Shocks and China’s Economy: Reactions of the Monetary Policy to Oil Price Shocks By Won Joong Kim; Shawkat Hammoudeh; Jun Seog Hyun; Rangan Gupta
  28. The Barriers Of Access To Elite Higher Education In Russia By Ilya Prakhov
  29. Managed Competition And Voting Stability: Evidence From Russian Legislative Elections (2003-2011) By Elena V. Sirotkina
  31. Japanese Investment In Russia: Far Eastern And Western Russian Regions Compared By Nina Ershova
  32. Hot money and quantitative easing: the spillover effect of U.S. monetary policy on Chinese housing, equity and loan markets By Ho, Steven Wei; Zhang, Ji; Zhou, Hao
  33. The Effects Of Regulatory Reforms On Public Procurement: The Case Of A National University In Russia By Andrey V. Tkachenko; Andrei A. Yakovlev; Olga A. Demidova; Irina O. Volmenskikh
  34. Инвестиции в развитие российского смартфона YotaPhone By Alexeev, Anton
  36. Protection Of Investors: New Challenges For The Disclosure Of Information In The Securities Market In Russia By Anton S. Selivanovskiy
  37. Specific and General Human Capital in an Endogenous Growth Model By Evangelia Vourvachaki; Vahagn Jerbashian; : Sergey Slobodyan
  38. An experimental study of the effects of intergroup contact on attitudes in urban China By Jun Gu; Ingrid Nielsen; Jason Shachat; Russell Smyth; Yujia Peng
  39. Transformations In The Rural Life In Russian Belgorod Region In 2000-2013 Through “Modernization” Theoretical Perspective: Increasing Material Well-Being, Growing Individualism And Persisting Pessimism By Azer G. Efendiev; Pavel S. Sorokin; Maria A. Kozlova
  40. Investigating The Volume And Structure Of Alcohol Consumption And Their Impact On Life Expectancy In Russian Regions By Tatiana V. Kossova; Elena V. Kossova; Maria A. Sheluntcova

  1. By: Belskaya, Olga (University of North Carolina, Chapel Hill); Peter, Klara Sabirianova (University of North Carolina, Chapel Hill); Posso, Christian (University of North Carolina, Chapel Hill)
    Abstract: This paper evaluates whether the expansion of higher education is economically worthwhile based on a recent surge in the number of campuses and college graduates in Russia. Our empirical strategy relies on the marginal treatment effect method in both normal and semi‐parametric versions, and estimating policy‐influenced treatment parameters for the marginal students who are directly affected by college expansion. We use high‐quality panel data with multiple wage observations, many birth cohorts, disaggregated location information, and past economic conditions. We find that college expansion attracts individuals with lower returns to college, but the returns for marginal students vary considerably depending on the scale of expansion and the type of location where new campuses are opened. Marginal individuals in smaller cities and locations without college campuses receive the largest benefits from new campuses. The results provide important implications for the design of policies targeting the expansion of higher education.
    Keywords: education, returns to college, marginal treatment effect, policy‐relevant treatment effect, local instrumental variable, selection bias, college expansion, Russia
    JEL: J31 I21 P36
    Date: 2014–12
  2. By: Irina Denisova; Polina Kuznetsova
    Abstract: The main objectives of this paper are to estimate the burden of tobacco-caused mortality as a whole and by main tobacco-related diseases in Kazakhstan, the Russian Federation, and Ukraine, and to assess the distributional health impact of an increase in tobacco taxation in these three countries. According to the results obtained, in 2012 smoking caused around 310,000 deaths in Russia, about 70,000 in Ukraine, and 14,300 in Kazakhstan, representing a key factor of mortality among the working-age population. Using data from various sources, the paper estimates the distributional consequences of a hypothetical tax rise in the three countries that leads to an approximately 30 percent increase of the average retail price of cigarettes. The analysis includes an estimation of changes in smoking prevalence, mortality, life expectancy, and public health expenditures by income quintile and gender. Considered excise growth can lead to about 3.5 to 4.0 percent fall in smoking prevalence, which in turn can avert about 600,000 tobacco-related deaths in Russia, 140,000 in Ukraine, and 30,000 in Kazakhstan over a 50 years period. Reduced tobacco-related morbidity will also result in substantial decrease in health expenditures for the treatment of tobacco-related diseases. Positive health effects are expected to be pro-poor, as almost 60 percent of the reduction in mortality is concentrated in the two lower-income quintiles of the population of the three countries.
    Keywords: Addiction, adult population, Age Groups, age mortality, alcohol, alcohol abuse, alcohol consumption, arteriosclerosis, cancers, cardiovascular diseases, Causes of Death ... See More + Cigarette, Cigarette Taxes, Circulatory System, citizens, Clinical Research, Cost Effectiveness, current smoking, death rates, dependence, Developing Countries, Disease Control, economic costs, Economics of Tobacco Control, EFFECTS OF TOBACCO, excise taxes, female mortality, females, Global Health, health care, health care system, Health Consequences, health effects, health impact, Health Insurance, health system, health systems, heart disease, intervention, life expectancy, lifestyles, long-term smokers, lung cancer, male mortality, Medical Care, Medicine, Ministry of Health, morbidity, mortality, mortality rate, mortality reduction, neoplasms, Nicotine, number of deaths, number of people, Nutrition, Peer Reviewers, Population Processes, premature mortality, PRICE ELASTICITY, Price Increases, price of cigarettes, Price Policies, public health, pulmonary disease, Respect, respiratory diseases, Risk Factors, smoker, smokers, smoking, smoking cessation, smoking prevalence, smoking prevalence data, smoking rates, Social Impact, Tobacco Addiction, tobacco consumption, Tobacco Control, tobacco control measures, Tobacco Control Policies, tobacco excises, tobacco industry, tobacco products, Tobacco Research, tobacco smoking, tobacco tax, Tobacco Tax Increases, tobacco taxation, TOBACCO TAXES, TOBACCO USE, tobacco-related disease, tobacco-related diseases, tobacco-related illnesses, treatment, Tuberculosis, working-age population, World Health Organization, young women
    Date: 2014–10
  3. By: Andrén, Daniela (Örebro University); Roman, Monica (Bucharest University of Economic Studies)
    Abstract: The change in Romanian political regime in 1989 has lifted the barriers for population circulation and mobility that were further more amplified in 2002 by the liberalization of Romanians' circulation in the Schengen space. In such context, the aim of this paper is to analyze to what extent Romania's accession to the EU in 2007 has added new features to the Romanian migration phenomenon. Therefore, the paper describes characteristics of Romanian labor migration and its labor market outcomes in the context of the EU second enlargement, covering the recent trends and characteristics, as well as the effects on the receiving and origin countries. The restructuring process that accompanied a painful economic transition created severe disequilibria on the labor market, generating a crisis that remains ongoing. From this perspective, migration was and still is the population's response to this crisis and at the same time reduces the unemployment pressure on the Romanian government. Furthermore, in the new context of financial European crisis, the migration outflows didn't reverse and most migrants prefer to develop adjustment strategies in their destination countries. Romania's accession to the EU in 2007 did not generally change the previous characteristics of Romanian migration. However, one of the key features of Romanian migration would be the new wave of the labor mobility of professionals with impacts upon Romanian economy and society.
    Keywords: EU eastern enlargement, Romania, international migration, transition, Great Recession
    JEL: F22 F24 J15
    Date: 2014–12
  4. By: Michal Franta; David Havrlant; Marek Rusnak
    Abstract: In this paper we use a battery of various mixed-frequency data models to forecast Czech GDP. The models employed are mixed-frequency vector autoregressions, mixed-data sampling models, and the dynamic factor model. Using a dataset of historical vintages of unrevised macroeconomic and financial data, we evaluate the performance of these models over the 2005–2012 period and compare them with the Czech National Bank’s macroeconomic forecasts. The results suggest that for shorter forecasting horizons the accuracy of the dynamic factor model is comparable to the CNB forecasts. At longer horizons, mixed-frequency vector autoregressions are able to perform similarly or slightly better than the CNB forecasts. Furthermore, moving away from point forecasts, we also explore the potential of density forecasts from Bayesian mixed-frequency vector autoregressions.
    Keywords: GDP, mixed-frequency data, real-time data, short-term forecasting
    JEL: C53 C82 E52
    Date: 2014–11
  5. By: Badi H. Baltagi (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244); Peter H. Egger (ETH Zurich, Leonhardstrasse 21, 8092 Zurich)
    Abstract: This paper assesses the role of intra-sectoral spillovers in total factor productivity across Chinese producers in the chemical industry. We use a rich panel data-set of 12,552 firms observed over the period 2004-2006 and model output by the firm as a function of skilled and unskilled labor, capital, materials, and total factor productivity, which is broadly defined. The latter is a composite of observable factors such as export market participation, foreign as well as public ownership, the extent of accumulated intangible assets, and unobservable total factor productivity. Despite the richness of our data-set, it suffers from the lack of time variation in the number of skilled workers as well as in the variable indicating public ownership. We introduce spatial spillovers in total factor productivity through contextual effects of observable variables as well as spatial dependence of the disturbances. We extend the Hausman and Taylor (1981) estimator to account for spatial correlation in the error term. This approach permits estimating the effect of time-invariant variables which are wiped out by the fixed effects estimator. While the original Hausman and Taylor (1981) estimator assumes homoskedastic error components, we provide spatial variants that allow for both homoskedasticity and heteroskedasticity. Monte Carlo results show, that our estimation procedure performs well in small samples. We find evidence of positive spillovers across chemical manufacturers and a large and significant detrimental effect of public ownership on total factor productivity.
    Keywords: Technology Spillovers, Spatial econometrics, Panel data econometrics, Firm-level productivity, Chinese firms
    JEL: C23 C31 D24 L65
    Date: 2014–12
  6. By: Thomas F. Remington (National Research University Higher School of Economics); Israel Marques (National Research University Higher School of Economics)
    Abstract: How and when do employers and governments cooperate to overcome skill shortages? Existing literature in the VOC tradition distinguishes between coordinated market and liberal market economy approaches. So far, however, little research has addressed this problem in the context of emerging market economies. This paper uses the case of Russia to address the ways in which postcommunist states overcome the commitment problems bedevilling skill formation in a market economy. Following a discussion of the history of skill formation in Russia from the Soviet era through the present, we present four case studies of Russian regions illustrating alternative institutional solutions to the problem of matching vocational education and training to industry's need for skill
    Keywords: Russia, skill formation, vocational education, regional government, labor market regulation, business-state relations
    JEL: Z
    Date: 2014
  7. By: Fert Imre
    Abstract: The paper analyses the agricultural transformation in ten Central and Eastern European countries between 1990 and 2010. We provide evidence that despite of diversity of farm structure, heterogeneous preconditions in agricultural policy and economic policy reforms these countries follow the Lewis path of structural transformation. Our results indicate that beyond to macroeconomic conditions and inter-sectoral linkages, micro-level factors especially farm structure play important role in agricultural development.
    Keywords: Agricultural transformation, Central-Eastern European countries, convergence
    JEL: Q12 P27 P32
    Date: 2014–12
  8. By: Xie, Zhuan; Zhang, Xiaobo
    Abstract: Innovations are a key driver of long-term economic growth. There has been an explosion of patent filings in China in the past three decades. But empirical studies on the pattern of innovations at the firm level are rather scant primarily due to lack of firm-specific patent data. We have made concerted efforts to match Chinese patent data with a large firm-level database. The matched dataset enables us to examine the patterns of patents at the firm level.
    Keywords: Innovation, patents, intellectual property, Economic development, Gender, Women, microeconomics,
    Date: 2014
  9. By: Sandra PONCET (Université de Paris I); Julien GOURDON (FERDI); Laura HERING (FERDI); Stéphanie MONJON (FERDI)
    Abstract: Compared to most countries, China’s value-added tax (VAT) system is not neutral and makes it less advantageous to export a product than to sell it domestically, as exporters may not receive a complete refund on the domestic VAT they have paid on their inputs. However, the large and frequent changes to the VAT refunds which are offered to exporters have been led China to be accused of providing its firms with an unfair advantage in global trade. We use city-specific export-quantity data at the HS6-product level over the 2003-12 period to assess how changes in these VAT rebates have affected Chinese export performance. Our identification strategy relies on triple difference estimates that exploit an eligibility rule which disqualifies processing trade with supplied materials from these rebates. We find that changes in VAT rebates have significant export repercussions: eligible export quantity for a given city-HS6 pair rises by 6.5% following a one percentage-point increase in the VAT rebate. This magnitude yields a better understanding of the strong resistance of Chinese exports during the global recession, in which export rebates increased substantially.
    JEL: F10 F14 O14
    Date: 2014–12
  10. By: Cozza , Claudio (BOFIT); Rabellotti , Roberta (BOFIT); Sanfilippo, Marco (BOFIT)
    Abstract: Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets and to eliminate time-invariant and unobservable differences between those firms and the controls. The results provide robust evidence in support of the view that China’s OFDI had so far a positive impact on domestic activities in enhancing firms’ productivity and scales of operation, as measured by assets, sales and employment. Distinguishing among such investments on the basis of entry mode shows that acquisitions facilitate early access to intangible assets but are detrimental to financial performance, whereas greenfield investments have a positive impact on the scale and productivity of Chinese investors.
    Keywords: outward FDI; reverse spillovers; performance; Chinese multinationals
    JEL: F49
    Date: 2014–12–04
  11. By: Marina G. Kolosnitsyna (National Research University Higher School of Economics); Natalia A. Khorkina (National Research University Higher School of Economics); Khongor N. Dorzhiev (National Research University Higher School of Economics)
    Abstract: The world population is ageing and this demographic trend has become the subject of numerous research projects and discussions. In Russia, this process has also become a topic for many studies examining socio-economic characteristics and health status of elderly, their retirement behaviours. That said, research on the life satisfaction of Russian seniors and its determinants is still rather scarce. At the same time, revealing the factors of life satisfaction in old age could help develop a sound state policy towards the elderly thus enhancing the well-being of society as a whole. This paper explores the determinants of elderly life satisfaction using micro-data from the Russian Longitudinal Monitoring Survey. Our research show that for all Russian seniors aged 55+ the strongest and most common predictors of life satisfaction are: health status, personal income, type of settlement, and social status. We found significant gender differences in factors of life satisfaction: an inverse U-relation of age and happiness is characteristic for the oldest old females only; holding a job enhances life satisfaction for women but not for men; and the education level of seniors has almost no correlation with life satisfaction, while having children decreases an individual’s happiness.
    Keywords: happiness, life satisfaction, subjective well-being, ageing, elderly, Russia
    JEL: I31 J14
    Date: 2014
  12. By: Tsoy, Nataly
    Abstract: In article analysis the state of the modern fast-food market in Russian Federation. The author observes main trends in this area, the competitiveness of the different regions of the country. The special attention is given to the proposal of opening Subway franchise in the Crimea
    Keywords: franchise, franchising, fast-food, market of fast-food restaurants, economy of Crimea, Subway, Mc’Donalds
    JEL: D14 D23 D24
    Date: 2014–12–15
  13. By: Popov, Vladimir
    Abstract: Why even after the dramatic increase in inequality in the 1990s and after the emergence and enrichment of “oligarchs”, the alternative (leftist, social democratic) economic policies that could have improved material and social wellbeing of the majority of the population is not supported by this majority? It is argued that in immature democracies (without efficient restrictions for the participation of private capital in politics) mass media and electoral campaigns are controlled by the rich, so there is vicious circle: market reforms and private property create the class of the wealthy “oligarchs” that are not only interested in these reforms, but also have power to maintain their political and economic might through mass media and democratic elections. The return of public opinion to the “norm” so that it reflects interests of the majority is possible only if mass media and political process are separated from private capital and private financing.
    Keywords: Public opinion, transition from socialism to capitalism, inequalities, elections, mass media
    JEL: H00 P26 P3
    Date: 2014–12–24
  14. By: Vasily Astrov (The Vienna Institute for International Economic Studies, wiiw); Rumen Dobrinsky (The Vienna Institute for International Economic Studies, wiiw); Vladimir Gligorov (The Vienna Institute for International Economic Studies, wiiw); Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Peter Havlik (The Vienna Institute for International Economic Studies, wiiw); Mario Holzner (The Vienna Institute for International Economic Studies, wiiw); Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw); Leon Podkaminer (The Vienna Institute for International Economic Studies, wiiw); Sandor Richter (The Vienna Institute for International Economic Studies, wiiw); Hermine Vidovic (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Table Overview 2013 and outlook 2014-2016 (p. 1) Figure 2013 estimate and 2014 forecast for CESEE growth drivers (p. 2) Bulgaria upcoming early elections take centre stage (by Rumen Dobrinsky; p. 3) Croatia recession continues (by Hermine Vidovic; p. 4) Czech Republic fiscal relaxation to strengthen the recovery (by Leon Podkaminer; p. 5) Estonia ongoing stagnation (by Sebastian Leitner; p. 6) Hungary EU funds support accelerating growth (by Sándor Richter; p. 7) Latvia consumers keep the wheel turning (by Sebastian Leitner; p. 8) Lithuania investing in growth (by Sebastian Leitner; p. 9) Poland abrupt acceleration of investment activities (by Leon Podkaminer; p. 10) Romania consumption-driven growth (by Gábor Hunya; p. 11) Slovakia domestic demand on the rise (by Doris Hanzl-Weiss; p. 12) Slovenia first signs of recovery (by Hermine Vidovic; p. 13) Albania candidate, at last (by Mario Holzner; p. 14) Macedonia monuments and elections (by Vladimir Gligorov; p. 15) Montenegro tourism and elections (by Vladimir Gligorov; p. 16) Serbia floods and reforms (by Vladimir Gligorov; p. 17) Turkey economic adjustment in progress, political tussle continues (by Michael Landesmann; p. 18) Bosnia and Herzegovina floods and elections (by Vladimir Gligorov; p. 19) Kosovo unstable government in a stable economy? (by Mario Holzner; p. 20) Russian Federation stuck in stagnation (by Peter Havlik; p. 21) Ukraine in search of stability (by Vasily Astrov; pp. 22-23)
    Keywords: economic forecasts, GDP, investment, consumer prices, unemployment, current account, household consumption, net exports, GDP growth
    Date: 2014–07
  15. By: Yuriy O. Guyvoronskiy (National Research University Higher School of Economics); Svetlana A. Karandashova (National Research University Higher School of Economics); Elena V. Sirotkina (National Research University Higher School of Economics); Anastasia Y. Shishorina (National Research University Higher School of Economics)
    Abstract: Does the level of party system institutionalization influence high-level incumbents’ electoral support within subnational authoritarianism? Is it possible to ensure incumbent electoral success only with manipulative electoral practices? To what extent does this and other factors contribute to the incumbents’ landslide victory? Contrary to scholarly thought in this field, this paper argues that manipulative practices are not the only determinant of incumbents’ electoral success in an authoritarian regime. They are also insufficient. The research is based on the results Russian gubernatorial elections in 2012-2013
    Keywords: party system institutionalization, incumbent, electoral authoritarianism, governor elections, regional regimes
    JEL: D72
    Date: 2014
  16. By: Alexander V. Larin (National Research University Higher School of Economics)
    Abstract: This paper investigates the sources of the downward nominal wage rigidity in Russia. The empirical analysis is based on the RLMS-HSE household survey from 2004 to 2013. We show that, in spite of weak labor unions in Russia, the extent of downward nominal wage rigidity is high. Moreover, the probability of a wage freeze is decreasing in firm size and is lower for industries with industry-level tarif agreements. Our ndings present empirical evidence that the main source of the downward nominal wage rigidity is not the labor unions, but firms' voluntary decision to prevent wage cuts, which may cause quits of valuable employees and/or a decrease in their efforts
    Keywords: Downward nominal wage rigidity, RLMS-HSE
    JEL: J31 J51
    Date: 2014
  17. By: Andrey V. Makarov (National Research University Higher School of Economics)
    Abstract: This article focuses on the development of antitrust policy in transition economies in the context of preventing explicit and tacit collusion. Experience of BRICS, Kazakhstan, Ukraine and CEE countries (Bulgaria, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Czech Republic, Estonia) in the creation of antitrust institutions was analyzed, including both legislation and enforcement practice. This article analyzes such enforcement problems as: classification problems (tacit vs explicit collusion, vertical vs horizontal agreements), flexibility of prohibitions (“per se” vs “rule of reason”), design of sanctions, private enforcement challenge, leniency program mechanisms, the role of antitrust authorities etc. Main challenges for policy effectiveness in this field were shown
    Keywords: collusion, antitrust policy, leniency program, transition economies, CEE, BRICS
    JEL: K21 L41 L42
    Date: 2014
  18. By: Tamara G. Nezhina (National Research University Higher School of Economics)
    Abstract: In this theory-based article, the author examines how the cultural and anthropological or ethnocentric theory of corruption by Van Roy (1970) explains the emergence of systemic corruption in the Republic of Kazakhstan. Research findings are based on the secondary data analysis, which allows establishing theoretical connections among the economic transition, the culture and the systemic corruption in Kazakhstan. Following the Van Roy’s theory, the author determines that the emergence of systemic corruption was incentivized by cultural factors such as the transformation of the society and the corresponding value shift, and by the ethnocentric factors such as the parochial traditions of the country. The author analyzes the influence of the economic transition programs, known as the “shock therapy,” on the impoverishment of citizens, the high level of the acceptance of corruption and the effects of clan culture in Kazakhstan from 1991 until modern days. The author determines that the above factors were present in the country during the economic overhaul of 1991, and logically establishes the relationships between these factors and the systemic corruption. The author argues that culture matters in the process of economic and social development, and that the economists, who typically pay little attention to culture variables, should integrate these variables in their models of economic development. As experience of economic transition in Kazakhstan shows, culture may enhance or impede the success of economic transformation. The experience of Kazakhstan can be extrapolated to other countries in transition.
    Keywords: systemic corruption, cultural and ethnocentric theory, Republic of Kazakhstan
    JEL: O10
    Date: 2014
  19. By: Israel Marques (National Research University Higher School of Economics)
    Abstract: When does business support the expansion of social policy in the developing world? Existing work on managers preferences has tended to concentrate on the developed world, where governments can credibly commit to policy, tax evasion is constrained, and mechanisms exist to hold the bureaucracy accountable for policy implementation. In this paper, I relax these assumptions, arguing that weak institutions create opportunities for some firms to shift costs onto others: making social policy more attractive. I argue that firms with political connections are uniquely positioned to benefit from subsidies and property rights protection, which decreases the cost of social policy, while firms with low visibility can evade taxes and free-ride off universalistic social policy. I test this argument using a survey of 666 firms in 10 Russian regions.
    Keywords: Labor markets, Firm manager preferences, Tax evasion, Politically connected firms, Welfare state
    JEL: L21 L33 O15 H53
    Date: 2014
  20. By: Yu, Bingxin; Chen, Kevin Z.; Zhang, Yumei; Zhang, Haisen
    Abstract: The Chinese economy has recently experienced a rapid and fundamental transformation, and the public expenditure on agriculture has also changed to reflect shifts in policy priorities. This paper reviewed public agricultural expenditure in a comprehensive way using detailed expenditure data at different administrative levels. The paper found that public expenditure for agriculture has increased steadily in China; however, the definition of agricultural spending might not precisely measure resources allocated to agricultural production. Some unique features of Chinese agricultural expenditure are identified, namely high decentralization and substantial intergovernmental transfer. The highly decentralized and hierarchical administrative system caused fragmentation in budget and implementation, resulting in rampant inefficiencies. Government expenditure also exhibits considerable regional disparity. This study recommends improving the fiscal system by rebalancing expenditure with revenues, prioritizing agricultural expenditure, and addressing regional disparities.
    Keywords: public expenditure, Agriculture, Agricultural policies, Agricultural development, Governance, Investment, decentralization, regional disparity, transfers,
    Date: 2014
  21. By: Alyona A. Khaptsova (National Research University Higher School of Economics); Shalom H. Schwartz (National Research University Higher School of Economics)
    Abstract: Congruence between own values and those of one’s reference groups has been found to promote life satisfaction. Actual or anticipated support or sanctions from reference others presumably explains this effect. Does the effect extend to congruence with the values of others who are similar only in socio-demographic characteristics with whom one does not interact? We constructed 36 socio-demographic groups by crossing age, gender, religion, education level, and region of residence in a representative Russian national sample (N=961). We derived value congruence scores by correlating individuals’ values with the mean values of their constructed group. Value congruence and life satisfaction correlated significantly across individuals even in these groups. The less important self-direction values to individuals, the stronger the correlation. A meta-analysis of the correlations in the 36 groups also confirmed the positive association of value congruence with life satisfaction. The characteristics used to construct the groups did not moderate this association.
    Keywords: value congruence, life satisfaction , self-direction values, meta-analysis, constructed groups, refined values theory
    JEL: Z
    Date: 2014
  22. By: Gadzhieva, Sevil
    Abstract: This report is about dropshipping system, mainly its development level in Russia. There are essence of dropshipping in this article. We study the positive and negative aspects of this type of trade, and provide methods for its realization.
    Keywords: Internet, trading, dropshipping, shipping, intermediary, order, goods.
    JEL: M20
    Date: 2014–12–24
  23. By: Sarah Guillou (OFCE)
    Abstract: The China-Raw Materials dispute recently arbitrated by the WTO opposed China as defendant to the US, the EU and Mexico as the claimants on the somewhat unusual issue of export restrictions on natural resources. For the claimants, Chinese export restrictions on various raw materials, of which the country is a major producer, create shortages in foreign markets increasing the prices of these goods. China defends export limitations by presenting them as a natural resource conserving policy. This paper offers a theoretical analysis of the dispute with the help of a model of a monopoly extracting a non-renewable resource and selling it on both the domestic and foreign markets. The theoretical results focus on the effects of imposing an export quota on quantities, prices and price distortion. Given the crucial importance of demand elasticities in this theoretical understanding of the conflict, the empirical part of the paper provides estimates of import demand elasticity of the parties for each product concerned in the case. The model and the empirical results challenge the ideas that an export quota always favors conservation of natural resource, that a higher foreign price necessarily follows this policy and that it inherently increases price distortion and therefore discrimination.
    Date: 2014–12
  24. By: Federico Frattini (Department of Economics and Management, University of Ferrara, Italy.); Francesco Nicolli (IRCReS-CNR, Italy; Department of Economics and Management, University of Ferrara, Italy.); Giorgio Prodi (Department of Economics and Management, University of Ferrara, Italy; CCWE - Tsinghua University, Beijing, China.)
    Abstract: The paper focuses on the role of technological capabilities in pushing regional catch-up in China. A leading force behind its fast economic growth has been the government action in reforming rules and institutions and supporting structural change in the long run. The local clustering process of technological capabilities represents an important piece in this strategy. The regional endowment of technological capabilities is approached by the geographical distribution of innovation activities among prefectures. The analysis aims to verify if there is convergence among the prefectural income levels and technological capabilities positively affect the intra-national catching-up process. Accordingly, this contribution presents a growth convergence estimation model that includes four indexes for innovation systems already adopted in literature. Indicators refer to the information about Chinese patent applications at EPO in the period 1996–2010 (OECD REGPAT and Citations databases, January 2014). In order to fit the research questions, patent data have been restricted, re-organized and originally regionalized by the authors running a semantic search of prefectures’ names in the “address” field associated to each Chinese inventor. Main results show that an absolute convergence process already started, although disparities decline slowly, and the accumulation of technological capabilities can foster this dynamic.
    Keywords: Buen Vivir, China, growth, patent, region, catch-up
    JEL: O30 O47 O53 R19
    Date: 2014–12
  25. By: Nguyen Viet, Cuong
    Abstract: Poverty reduction is one of major goals of development policy of most countries, especially developing ones. To reduce poverty, numerous development programmes have been implemented throughout the world. In recent decades, researchers as well as policy makers have been increasingly interested in impact evaluation of development programmes to improve the effectiveness of the programmes. Vietnam has been very successful in poverty reduction since the economic reform in 1986. The Government of Viet Nam, as well as international and domestic organisations, has implemented numerous targeted programmes to increase people’s welfare. Although increasing attention is paid to impact evaluation of programmes, well-designed impact evaluation of development projects remains very limited. This paper discusses experiences and difficulties in impact evaluation of development programmes in Viet Nam. The findings are expected to be relevant for not only Vietnam but also other developing countries, especially those with a similar socio-economic context as Vietnam.
    Keywords: Impact evaluation, impact evaluation experiences, development programs, Vietnam.
    JEL: H4 H43
    Date: 2014–05–20
  26. By: Starovoytov, Konstantin
    Abstract: Of all the possible ways to invest available funds in our time the most reliable and profitable is to invest in a business project. This article which was written based on real company, demonstrates the superiority of cash invested in production than in stocks or bank deposits
    Keywords: wood processing, lumber, business project, Kaliningrad, investment, free economic zone
    JEL: F5 O1 O4
    Date: 2014–12–23
  27. By: Won Joong Kim (Department of Economics, Konkuk University, Seoul, Korea); Shawkat Hammoudeh (LeBow College of Business, Drexel University, Philadelphia, PA, USA); Jun Seog Hyun (Department of Economics, Konkuk University, Seoul, Korea); Rangan Gupta (Department of Economics, University of Pretoria)
    Abstract: The paper empirically analyzes the effect of oil price shocks on China’s economy with special interest in the response of the Chinese interest rate to those shocks. Using different econometric models, i) a time-varying parameter structural vector autoregression (TVP SVAR) model with short-run identifying restrictions, ii) a structural VAR (SVAR) model with the short-run identifying restrictions, and iii) a VAR model with ordering-free generalized impulse response VAR (GIR VAR), we find the response of the Chinese interest rate to the oil shocks is not only time-varying but also showing quite different signs of responses. Specifically, in the earlier sample period (1992:4-2001:10), the interest rate shows a negative response to the oil shock, while in the latter period (2001:11-2014:5) it shows a positive response to the shock. Given the negative response of the world oil production to an oil price shock in the earlier period, the shock is identified as a negative supply shock or a precautionary demand shock, thereby the negative response the interest rate the oil shock is deemed as economy-boosting. The positive response of interest rate the oil shock in the later period, given that this shock is identified as a positive world oil demand shock, gives evidence that stabilization of inflation is one of the main objectives of China’s monetary authority, even though the current main objective of the monetary policy is characterized as “maintaining the stability of the value of the currency and thereby promoting economic growth.” Finally, the variance decomposition results reveal that the oil price shock becomes an increasingly important source in the volatility of China’s interest rate.
    Keywords: Oil price shock, China’s monetary policy, TVP SVAR, SVAR, generalized impulse response
    JEL: C32 E52 O13 O53 Q43
    Date: 2014–12
  28. By: Ilya Prakhov (National Research University Higher School of Economics.)
    Abstract: Despite the trends of massification of Russian higher education and recently introduced standardized entry exams, university applicants still may face barriers during the process of admission. As a result, they may be admitted to less selective universities, which generally offer low quality education programs as opposed to selective universities. This paper examines the factors which influence student choice of university as measured by the level of university selectivity. We show that university selectivity can be determined not only by the Unified State Exam scores among admitted students (the main criteria of applicant selection in Russia), but by characteristics that are not directly related to the applicants’ abilities: parental education, family income, cultural capital, as well as by features of secondary school (type of school and class specialization) and level of investment in pre-entry coaching. These factors raise questions about equal opportunities for admission and the accessibility of top quality higher education for applicants from disadvantaged backgrounds.
    Keywords: accessibility of higher education, elite higher education, Unified State Exam, educational strategies of students
    JEL: I21 I24 I28
    Date: 2014
  29. By: Elena V. Sirotkina (National Research University Higher School of Economics)
    Abstract: Does limited competition promote voting stability and party system institutionalization? Since Russian political parties face administrative impediments to participating in elections, only those who adapt to the changing rules remain in the game. Thus, voters have a limited number of parties to support and with no alternatives they might tend to stick to their choice. In this paper, I take stability in electoral support as an indicator of party system institutionalization and test whether limited competition in non-democratic Russia leads to voting stability and party system institutionalization. Empirical evidence is taken from the Russian State Duma elections in 2003-2011.
    Keywords: institutionalization, Russian parties, elections, voting geography.
    JEL: D72
    Date: 2014
  30. By: Slobodan Cvetanoviæ, Miljan Jovanoviæ (University of Niš, Faculty of Economics)
    Abstract: The increasing use of renewable energy sources is of great importance in the light of the imperatives of the realisation of the sustainable development concept, as the paradigm of the economic, environmental, and social development. It is, therefore, important that the Republic of Serbia follows the model of the European Union, and establish an appropriate regulatory framework for their use. One of the most important aspects of the regulatory framework of the use of renewable energy sources is related to the existence of economic incentives for their growing use. In the group of economic stimuli to the increased use of renewable energy sources, the central place belongs to the obligation to purchase electricity from preferential producers at feed-in tariffs.
    Keywords: renewable energy sources, regulatory framework, financial incentives, feed-in tariffs
    JEL: Q40 Q42 Q48
    Date: 2014–09
  31. By: Nina Ershova (National Research University Higher School of Economics)
    Abstract: The investment relationship between Japan and Russia has been rapidly expanding over the recent couple of decades. The intensive expansion began with the Sakhalin projects, and then was followed by the subsequent establishment of production facilities by Japanese companies in manufacturing industries in Russia, Today, investment cooperation has reached a new developmental stage, which reveals not only quantitative, but also qualitative changes in the pattern of FDI flows, especially in terms of structure and technology. This paper addresses the aspect of regional differences in the approach of Japanese investors toward projects in Russia. A comparison of the major macro-regions which attract Japanese investment (Far-Eastern and Western regions, including Central and North-Western Federal Districts) allows us to reveal critical differences in industrial distribution that reflect the specifics of the economic development and investment climate of these territories. However, the Western and Eastern parts of Russia complement each other in terms of their investment attraction, and contribute to the development of a multifaceted and diversified framework for investment cooperation between Russia and Japan.
    Keywords: Russia-Japan investment relations, investment projects, regions, Russian Far East
    JEL: F21
    Date: 2014
  32. By: Ho, Steven Wei (Tsinghua University); Zhang, Ji (Tsinghua University); Zhou, Hao (Tsinghua University)
    Abstract: We study a factor-augmented vector autoregression model to estimate the effects of changes in U.S. monetary policy, as well as changes in U.S. policy uncertainty, on the Chinese economy. We find that since the Great Recession, a decline in the U.S. policy rate would result in a significant increase in Chinese regulated interest rates, and rise in Chinese housing investment. One possible reason for this is the substantial inflow of hot money into China. Responses of Chinese variables to U.S. shocks at the zero lower bound are different from that in normal times, which suggest structural changes in both the Chinese economy and the U.S. monetary policy transmission mechanism. Moreover, an increase in U.S. policy uncertainty negatively impacts Chinese stock and real estate market during normal times, but not at the zero lower bound.
    JEL: C3 E4 E5 F3
    Date: 2014–11–01
  33. By: Andrey V. Tkachenko (National Research University Higher School of Economics); Andrei A. Yakovlev (National Research University Higher School of Economics); Olga A. Demidova (National Research University Higher School of Economics); Irina O. Volmenskikh (National Research University Higher School of Economics)
    Abstract: This paper analyses the impact of reform and different regulation regimes on the effectiveness of procurement at a large state university in the period from 2008 to 2012. We evaluate the impact on the procurement effectiveness parameters of two significant changes in the public procurement regulations: transfer to electronic auctions from 2010 under the Federal Law and the adoption by this organization of its own Procurement Provision from 2011. We show that transfer to electronic auctions leads to higher competition and more significant price decreases, whereas the adoption of Procurement provision has the opposite effect. Regarding delays in contract execution, the first reform has no effect and the second regulation change results in decreasing delays.
    Keywords: public procurements, budget sector organizations, regulation, reforms, effectiveness
    JEL: H57
    Date: 2014
  34. By: Alexeev, Anton
    Abstract: This article discussed the main characteristics of the Russian smartphone yotaphone, sources of financing of the project , highlights some of the cost of advertising and the production of the smartphone , the prospects of development of Russian market of mobile devices.
    Keywords: Investing, smartphone , yotaphone, development, device, innovations.
    JEL: O3 O31
    Date: 2014–12–23
  35. By: Vladimir Ya. Zakharov, Ilya V. Zakharov (Nizhny Novgorod State University of Architecture and Civil Engineering (NNGASU), Russia; ORGKHIM Biochemical Holding, candidate of economics, Nizhny Novgorod, Russia)
    Abstract: Based on a comparative analysis of surveys of employees of the companies in Russia and the UK concluded that dissatisfaction information workers is determined primarily by the depth and speed of the reforms. Communication programs should be differentiated according to groups of employees, differing attitudes towards the occurring changes, primarily by developing channels of communication with, according to the workers, the most reliable information.
    Keywords: internal communications, transformation of the companies, dissatisfaction with information, relation to changes, communication programs
    JEL: L14 L23 L86
    Date: 2014–09
  36. By: Anton S. Selivanovskiy (National Research University Higher School of Economics)
    Abstract: The disproportion of information in the stock market creates conditions for unlawful use of insider information, which, in turn, produces a negative impact on the stock market, investment conditions in the country and the economy as a whole. In Russia the institute of disclosure in the securities market does not secure provision of investor rights to obtain quality information on the issuer of securities, its group of entities, its financial conditions, as well as other important aspects, which are of principal significance for the issuer and its affiliated parties. Information disclosed by the issuer is not reliable for investors. Only a few pay attention to the disclosure of information, such information is not analysed and is hardly monitored by the regulator with regard to the obligation to report it. Issuers have no incentives to disclose information, as mechanisms of liability are ineffective. This institution in Russia does not mitigate the disproportion of information between insiders and outsiders. It leads to considerable costs for the issuers, while the level of investor protection is not increased. The rights of investors in the securities market are not protected. The whole system of the disclosure of information requires reasonable and systematic restructuring. An obligation for issuers to disclose information in good faith should be stipulated. It is necessary to abandon the attempt to foresee in legislation all possible important events, the details of which can affect investment decisions. Disclosure should be timely, correct, reliable, consistent, concise, and free from irrelevant information. A reconsideration of the system of liability for unfair disclosure is required. The CEO of the issuer shall be liable for proper disclosure. It is reasonable to consider the burden of proof of good-faith disclosure on the CEO. It is important to change the approaches to the administrative liability of the issuer (in violation of the rules of the disclosing of information fault must be presumed, lack of fault must be proved by the issuer; the statute of limitations for imposition of liability should be increased since detection of the violation within one year is often impossible).
    Keywords: the disclosure of information by issuers, protection of investor rights, legally relevant facts and disclosure of information on the securities market, duty of disclosure in the securities market, proportionality violations and penalties.
    JEL: Z
    Date: 2014
  37. By: Evangelia Vourvachaki; Vahagn Jerbashian; : Sergey Slobodyan
    Abstract: In this paper, we define specific (general) human capital in terms of the occupations whose use is spread in a limited (wide) set of industries. We analyze the growth impact of an economy's composition of specific and general human capital, in a model where education and R&D are costly and complementary activities. The model suggests that a declining share of specific human capital, as observed in the Czech Republic, can be associated with a lower rate of long run growth. We also discuss optimal educational policies in the presence of market frictions.
    Keywords: human capital types; economic growth; education policy
    JEL: O52 O40 O49 I20
    Date: 2014–12
  38. By: Jun Gu; Ingrid Nielsen; Jason Shachat; Russell Smyth; Yujia Peng
    Abstract: A large body of literature attests to the growing social divide between urban residents and rural-urban migrants in China’s cities. This study uses a randomised experiment to test the effect of intergroup contact on attitudes between a group of urban adolescents and a group of rural-urban migrant adolescents. Results showed that intergroup contact in the form of a fun and cooperative puzzle task significantly reduced negative attitudes toward the other group. Implications for desegregated schooling and their broader societal implications in China are discussed.
    Date: 2014–09
  39. By: Azer G. Efendiev (National Research University Higher School of Economics); Pavel S. Sorokin (National Research University Higher School of Economics); Maria A. Kozlova (National Research University Higher School of Economics)
    Abstract: In the present paper we analyze transformations in the life of rural population in the Belgorod region, Russia, in the period 2000-2013 in the context of active development of large vertically integrated enterprises – agroholdings. These transformations are seen through the prism of “modernization” concept: agroholdings promote advanced agricultural technologies, professional management and modern organization of labor and thus may be considered as an important factor stimulating rural modernization in Belgorod region. The traditional understanding of “modernization” in sociology implies a progressive transition from a “pre-modern” or “traditional” to a “modern” society which means changes in many areas such as: occupational structure (including the development of entrepreneurship), material well-being (growth of living condition resulting from efficient economy), and increase in rationality and individualism. However, literature shows that the adaptation to modernization processes might be painful for the local communities and for the society in general. Hence, reflecting on both, modernization theoretical framework and literature on Russian rural development, in our analysis of transformations in Belgorod region we focus on the following aspects: firstly, material well-being and living conditions of rural population; secondly, individualism and attitudes towards achievement and economic success; thirdly, the attractiveness of private farming. Finally, we look at the general perception by the rural population of their future (from the point of view of optimism/pessimism). The research is based on the two empirical studies, conducted in the years 2000 and 2013 which utilized similar methodology in the similar 15 villages of the Belgorod region. Possibly, the most interesting empirical finding is that despite rapid growth of material well-being of the rural population, the pessimistic expectations are no less widespread in 2013 than in 2000. This illustrates the complex nature of the transformations of the rural life in Belgorod region
    Keywords: rural Russia, Belgorod region, well-being of rural population, attitudes, social and economic transformations, modernization, agroholdings
    JEL: Z10 Z13 O18
    Date: 2014
  40. By: Tatiana V. Kossova (National Research University Higher School of Economics); Elena V. Kossova (National Research University Higher School of Economics); Maria A. Sheluntcova (National Research University Higher School of Economics)
    Abstract: This paper aims to investigate differences in the volume and structure of alcohol consumption and then to reveal the impact of alcohol consumption on life expectancy in Russian regions. We consider the contribution of different product to the dynamics of consuming absolute alcohol. Necessary data were collected from the Federal State Statistics Service of Russia from 2008 to 2012. Data on the volume of regional alcohol sales in liters were used as proxy variables because of the shortage of regionally divided statistical data on alcohol consumption. The data on absolute alcohol consumption in each region were obtained from the weighted-average share of spirits in each kind of alcoholic product considered. We estimate panel data models and reveal macroeconomic determinants of alcohol consumption that reflect economic development of regions, living standards, unemployment and degree of urbanization. We find strong positive relationship between alcohol consumption and mortality from external causes and negative with life expectancy in Russian regions. Results are valid for both male and female population
    Keywords: alcohol consumption, alcohol abuse, inter-regional differences, life expectancy, mortality, Russian regions
    JEL: I15
    Date: 2014

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