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on Transition Economics |
| By: | Xu, Cheng-Gang |
| Abstract: | China was the largest economy in the world before the end of the 19th century; then became one of the poorest countries in the world in a few decades. Now China is returning to its historical past. To understand China’s development, and to understand where and how far China will move forward, this paper examines how its institution functioning. |
| Keywords: | China; development; institution; political economy |
| JEL: | A10 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10320&r=tra |
| By: | Fabrice Defever; Alejandro Riaño |
| Abstract: | This paper presents a simple model of subsidies with export share requirements (ESR) in a heterogeneous firm environment. A two-country general equilibrium version of the model with a single 100% ESR is calibrated using firm-level data from the 2002 wave of the Business Environment and Enterprise Performance Survey collected by the World Bank for China. The calibrated model is used to gauge the change in subsidies with ESR that is consistent with the fall in the share of ‘pure exporters’, firms exporting all their output, observed in China, from 25.7% in 2002 to 11.1% in 2013. Our results indicate that a 6.9% reduction in the ad-valorem subsidy rate available to firms that export all their output is consistent with the observed fall in their share of exporting firms. Expenditure in subsidies (as a share of value-added) falls by 66% and welfare in China increases by 1.76% while real income in the rest of the world falls by 0.59%. |
| Keywords: | Trade Policy; Export Subsidies; Export Share Requirements; China |
| JEL: | F12 F13 O47 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:60357&r=tra |
| By: | Aaberge, Rolf (SSB); Liu, Kai (Dept. of Economics, Norwegian School of Economics and Business Administration); Zhu, Yu (University of Dundee) |
| Abstract: | Despite macroeconomic evidence pointing to a negative aggregate consumption response due to political uncertainty, few papers have used microeconomic panel data to analyze how households adjust their consumption after an uncertainty shock. We study household savings and expenditure adjustment from an unexpected, large-scale and rapidly evolving political shock that occurred largely in May 1989 in Beijing, China. Using monthly micro panel data, we present evidence that a surge in political uncertainty resulted in significant temporary increases in savings among urban households in China. Households responded mainly by reducing semi-durable expenditure and frequency of major durable adjustment. The uncertainty effect is more pronounced among older, wealthier, and more socially advantaged households. We interpret our findings using existing models of precautionary behavior. By focusing on time variation in uncertainty, our identification strategy avoids many of the potential problems in empirical studies of precautionary savings such as self-selection and life-cycle effects. |
| Keywords: | China; household savings; political uncertainty. |
| JEL: | D91 E21 J30 |
| Date: | 2014–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2014_034&r=tra |
| By: | Andrea Gauselmann; Felix Noth |
| Abstract: | In our analysis, we consider the distribution of decision power over financing and investment between MNEs’ headquarters and foreign subsidiaries and its influence on the foreign affiliates’ financial restrictions. Our research results show that headquarters of multinational enterprises have not (yet) moved much decision power to their foreign subsidiaries at all. We use data from the IWH FDI Micro Database which contains information on corporate governance structures and financial restrictions of 609 enterprises with a foreign investor in Hungary, Poland, the Czech Republic, Slovakia, Romania and East Germany. We match data from Bureau van Dijk’s AMADEUS database on financial characteristics. We find that a high concentration of decision power within the MNE’s headquarter implicates high financial restrictions within the subsidiary. Square term results show, however, that the effect of financial constraints within the subsidiary decreases and finally turns insignificant when decision power moves from headquarter to subsidiary. Thus, economic policy should encourage foreign investors in the case of foreign acquisition of local enterprises to leave decision power within the enterprise and in the case of Greenfield investment to provide the newly established subsidiaries with as much power over corporate governance structures as possible. |
| Keywords: | corporate governance, financial restrictions, multinational firms, European post-transition economies |
| JEL: | F23 G11 G34 R11 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:3-15&r=tra |
| By: | Ryan Rutkowski (Peterson Institute for International Economics) |
| Abstract: | Faced with slowing economic growth, Chinese policymakers now recognize that the service sector of the economy-transportation, communications, finance, and health care-could spur economic activity and employment. The catch is that China must reform these and other areas to accomplish this goal. Chinese leaders have outlined an ambitious agenda for reform, but myriad vested interests could slow or block their plans. This Policy Brief evaluates the steps taken so far and the difficulties that lie ahead in implementing them. If policymakers fail to reform and open up the service sector, they run the risk of seriously impairing China's growth prospects. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb15-2&r=tra |
| By: | Francisco Costa; Jason Garred; João Paulo Pessoa |
| Abstract: | A recent boom in commodities-for-manufactures trade between China and other developing countries has led to much concern about the losers from rising import competition in manufacturing, but little attention on the winners from growing Chinese demand for commodities. Using census data for Brazil, we find that local labour markets more affected by Chinese import competition experienced slower growth in manufacturing wages and in-migration rates between 2000 and 2010, and greater rises in local wage inequality. However, in locations benefiting from rising Chinese demand, we observe higher wage growth, lower takeup of cash transfers and positive effects on job quality. |
| Keywords: | China; trade; commodities-for manufactures; wages; employment; informality |
| JEL: | F14 F16 O17 Q17 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:60282&r=tra |
| By: | Gan, Jie; Guo, Yan; Xu, Cheng-Gang |
| Abstract: | A distinct feature of China’s privatization is that both its design and its implementation are highly decentralized and are administered by the local governments. Based on a survey of 3,000 firms in over 100 Chinese cities, this paper studies how city governments choose among various privatization methods, how these different methods transfer control rights from the government to private owners, and how various privatization methods lead to different restructuring and performance. Our data indicate that although privatization in China has made substantial progress in reallocating control rights from the government to private owners, the degree of remaining government influence in corporate decisions across different privatization methods varies significantly. More importantly, political and fiscal constraints critically determine city governments’ decisions on how to privatize. Cities with less political opposition to labor shedding and where the government has stronger fiscal capacity tend to choose direct sales to insiders (MBOs) as the privatization method, which transfers control rights to private owners most completely. As a result, MBO firms restructure most effectively and achieve the greatest performance improvement. |
| JEL: | D22 D23 H19 L29 P31 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10331&r=tra |
| By: | Nicholas Borst (Peterson Institute for International Economics); Nicholas R. Lardy (Peterson Institute for International Economics); Cullen S. Hendrix (Peterson Institute for International Economics); Marcus Noland (Peterson Institute for International Economics); Ryan Rutkowski (Peterson Institute for International Economics) |
| Abstract: | China's rise as an economic power in the last quarter century has posed a range of challenges for the rest of the world, especially in the aftermath of the global financial crisis of 2007–09. To elucidate the issues and deepen understanding between China and the United States, the Peterson Institute for International Economics sent a delegation of ten senior staff to participate in the third annual China-US Economists Symposium, held May 17–18, 2014, in Beijing. Among the subjects they addressed were the prospect of secular stagnation in the advanced economies, the decline of potential GDP growth in China, China's credit boom, and the country's overall reform agenda. Also discussed were the controversial role of the International Monetary Fund as a crisis manager and the governance issues that remain a challenge for the Fund and its constituents 70 years after its establishment at Bretton Woods. The China-US Economists Symposium was also attended by high-profile Chinese economists and policymakers drawn from the membership of the China Finance Forty Forum (CF40), a think tank located in Beijing. Members of Brussels-based think tank Bruegel also joined the event this year. The theme of the conference was "Reform: Challenges and Opportunities," focusing on the difficult structural reforms facing China, Europe, and the United States. Other issues at the conference included the prospect of long-term stagnation in both emerging and advanced economies, the declining importance of state-owned enterprises in the Chinese economy, global coordination on financial reform, efforts by central banks to tackle inflation and asset bubbles, and the effectiveness of the G-20 in response to the global economic downturn. Through vigorous debate and exchange of ideas, the conference participants came away with a better understanding of the challenges facing the United States, China, and Europe and new approaches that policymakers can consider in addressing these challenges. With this volume, the Peterson Institute is pleased to share the conference papers contributed by the Peterson Institute participants. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:iie:piiebs:piieb14-2&r=tra |
| By: | Badasen Polina (The Central Bank of the Russian Federation); Kartaev Philipp (Department of Economics, Lomonosov Moscow State University); Khazanov Alexey (The Central Bank of the Russian Federation) |
| Abstract: | In this paper we analyze the effect of ruble exchange rate dynamics on economic activity in Russia. We consider the dynamics of both total production and the distinct industries’ output. We apply the SVAR-X approach and analyze the most recent Russian data. We show that the devaluation of Rus-sian currency has positive impact on export-oriented industries, on industries, oriented both on ex-ports and internal demand, and on industries with low share of imports in costs. The negative im-pact is observed only in the construction industry. The ruble devaluation has no significant impact on the economic activity indicators in other industries including the key industries and the industrial production index. |
| Keywords: | exchange rate, output, SVAR models |
| JEL: | C32 E52 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:upa:wpaper:0014&r=tra |
| By: | Auer, Raphael |
| Abstract: | Import competition from China is pervasive in the sense that for many good categories, the competitive environment that US firms face in these markets is strongly driven by the prices of Chinese imports, and so is their pricing decision. This paper quantifies the effect of the government-controlled appreciation of the Chinese renminbi vis-à-vis the USD from 2005 to 2008 on the prices charged by US domestic producers. In a panel spanning the period from 1994 to 2010 and including up to 519 manufacturing sectors, import price changes of Chinese goods pass into US producer prices at an average rate of 0.7, while import price changes that can be traced back to exchange rate movements of other trade partners only have mild effects on US prices. Further analysis points to the importance of trade integration, variable markups, and demand complementarities on the one side, and to the importance of imported intermediate goods on the other side as drivers of these patterns. Simulations incorporating these microeconomic findings reveal that a substantial revaluation of the renminbi would result in a pronounced increase of aggregate US producer price inflation. |
| Keywords: | China; exchange rate pass-through; inflation; monetary policy; price complementarities |
| JEL: | E31 E37 F11 F12 F14 F15 F16 F40 L16 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10344&r=tra |
| By: | Stratan, Alexandru; Moroz, Victor; Ignat, Anatolie |
| Abstract: | The purpose of this paper is to identify opportunities for modernization of the agri-food sector of the Republic of Moldova in the context of the recent developments in the international and regional trade. Participation of the Republic of Moldova in various foreign trade agreements was analyzed. The assessment of the agri-food export was performed in order to show the impact of the trade barriers introduced by Russian authorities over the most important groups of agri-food products. The impact of the recent trade barriers over the economic stability and country’s food security was analyzed. The possible directions of the agro-food sector modernization in order to overcome external trade shocks were discussed. |
| Keywords: | agriculture, agri-food export, trade barriers, commercial risks, modernization |
| JEL: | F13 Q17 Q18 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61719&r=tra |
| By: | Greetje Everaert; Natasha Xingyuan Che; Nan Geng; Bertrand Gruss; Gregorio Impavido; Yinqiu Lu; Christian Saborowski; Jérôme Vandenbussche; Li Zeng |
| Abstract: | Countries in Central, Eastern, and Southeastern Europe (CESEE) experienced a credit boom-bust cycle in the last decade. This paper analyzes the roles of demand and supply factors in explaining this credit cycle. Our analysis first focuses on a large sample of bank-level data on credit growth for the entire CESEE region. We complement this analysis by five case studies (Latvia, Lithuania, Montenegro, Poland, and Romania). Our results of the panel data analysis indicate that supply factors, on average and relative to demand factors, gained in importance in explaining credit growth in the post-crisis period. In the case studies, we find a similar result for Lithuania and Montenegro, but the other three case studies point to the fact that country experiences were heterogeneous. |
| Date: | 2015–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:15/15&r=tra |
| By: | Peng, Yuchao; Yan, Lili |
| Abstract: | This paper builds a banking DSGE model based on endogenous loan to value ratios, taking the different relationship between different types of enterprises and banks into account. Due to the political connections between the bank and enterprises, loan to value ratio for favored enterprises (e.g. state-owned enterprises) is endogenously higher than that for non-favored enterprises (e.g. private enterprises), which is called discriminatory credit constraint in this paper. Compared to non-discriminatory credit constraint, we find that discriminatory credit constraint can further amplify the impact of negative technology shocks on output, and reduce the effectiveness of expansionary monetary policy. Empirical evidence from China industrial firms’ data supports our conclusion. |
| Keywords: | Discriminatory Credit Constraint, Political Connections, Financial Accelerator |
| JEL: | E32 E52 G21 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61439&r=tra |
| By: | Dong He (International Monetary Fund); Paul Luk (Hong Kong Baptist University and Hong Kong Institute for Monetary Research); Wenlang Zhang (Hong Kong Monetary Authority) |
| Abstract: | The use of international currencies in the global financial system is not symmetric: while a few currencies have been primarily used as investing currencies, a few others have mostly served as funding currencies; only a handful have a better balance functioning as both investing and funding currencies. This paper develops a three-currency model to study the determinants of the demand for assets and liabilities denominated in an international currency, and attempts to shed light on the prospects for the renminbi as a budding international currency. We show that interest rate differentials would be only one of the factors shaping the renminbi's position, while other factors, including the correlation between foreign countries' economic growth and their bilateral exchange rates against the renminbi, and the correlation between exchange rates of the renminbi with other international currencies, would also be important. A broad interpretation of these findings is that the renminbi will likely be very attractive to investors from high-income economies and fund-raisers from emerging market economies. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:012015&r=tra |
| By: | Zhou, De; Yu, Xiaohua; Abler, David G.; Chen, Danhong |
| Abstract: | There are many projections for China’s food demand, and the projection results differ significantly from each other. Different values for income elasticities could be a major reason. This study projects meat and cereals demand for China based on a meta-analysis of the income elasticity estimates using a collection of 143 and 240 income elasticity estimates for cereals and meat products, respectively, from 36 primary studies. We find that income elasticities for most cereals (general cereals, rice, and coarse grains) and all meat products (general meat, pork, poultry, beef & mutton) tend to decline as per capita income increases, except for wheat, which increases. Taking this into account, differences between consumption projections based on time-varying income elasticities and values based on constant elasticities are substantial in quantities and increase over time. |
| Keywords: | projections, food demand, income elasticity, China, meta-analysis, Agricultural and Food Policy, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D12, Q11, |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gagfdp:168528&r=tra |
| By: | He, Qing (BOFIT); Lu, Liping (BOFIT); Ongena , Steven (BOFIT) |
| Abstract: | Who gains from inter-corporate credit? To answer this question we investigate the reactions of the stock prices of both the issuing and receiving firms to the announcements of 719 inter-corporate loans that took place between 2005 and 2012 in China. We find that the average abnormal return for the issuers of inter-corporate loans is significantly negative, whereas the corresponding return for those firms receiving credit is positive. Investors may worry that issuing firms may have run out of other worthwhile projects to finance, while at the same time they may view credit-receiving firms as being certified as worthy borrowers. The issuance of intra-group loans, especially those with higher interest rates, is associated with lower returns overall since such loans may signal a spreading of financial distress to the rest of the group. After issuing inter-corporate loans, firms are also found to have lower accounting performance, which confirms the aforementioned signaling interpretation. |
| Keywords: | entrusted loan; inter-corporate loan; credit misallocation; certification |
| JEL: | G14 G21 G30 |
| Date: | 2015–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2015_001&r=tra |
| By: | Anita Richert-Kazmierska (Gdansk University of Technology) |
| Abstract: | The progressive ageing process concerns both Poland and the other Member States of the European Union. In recent years, the share of workers of non-mobile and post-productive age in the total population has been rising, and according to forecasts, in 2035 people aged 45 years and over will represent two-thirds of our society. Since the year 2012, announced the Year of Active Ageing and Solidarity between Generations by the European Commission, more and more attention has been paid in the Polish public space to the issues of an ageing society, including its impact on the health of the economy. The article notes that the ageing process does not occur uniformly across all Polish regions, i.e. at the same pace and with the same intensity. The results of studies indicating the regions being most vulnerable to the ageing of the regional community and the negative consequences of this process in the next two decades are presented. |
| Keywords: | demographic changes, population ageing, regional diversity of ageing |
| JEL: | J11 J14 R11 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no5&r=tra |
| By: | Kaczmarczyk, Pawel (Warsaw University) |
| Abstract: | Immigration has become recently one of the most important subjects in socio-economic debates. In many countries immigrants are commonly presented as a threat to host economies and societies. On top of this fiscal impacts of immigration are ones of the hottest and most controversial topics in recent debate on migration. Against this background this paper aims at (1) discussing and synthesizing both theoretical and empirical literature on fiscal impacts of immigration, and (2) assessing empirically net fiscal position of Ukrainian immigrants in Poland. On the theoretical level we show that there exists no clear or coherent theoretical framework to explain fiscal effects of migration. Outcomes of empirical studies are mixed and not unequivocal, but generally prove that fiscal impacts of immigration are small or negligible. In terms of explanation, type of migration, labor market incorporation (absorption) and institutional framework at destination (structure of the welfare state) are presented as critical factors. Importance of those factors is clearly supported by empirical analysis presented. Net fiscal position of Ukrainian immigrants in Poland is unequivocally positive (and more beneficial than it is in case of the natives). This is mostly due to favorable characteristics of incoming immigrants (in terms of age and education) and particular migration strategies in work (pure labor migration). These features, however, to a large extent result from modes of labor market incorporation and structural characteristics of the Polish welfare state. |
| Keywords: | immigration to Poland, Ukrainian migration, welfare impacts of migration, net fiscal position |
| JEL: | F22 H55 H61 J11 J61 J68 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8779&r=tra |
| By: | Andrey Lovakov (National Research University Higher School of Economics) |
| Abstract: | The aim of this study is to examine the specific antecedents and consequences of the commitment of university teachers to their university. Academia has specific features that distinguish universities from other types of organizations: universities have the opportunity to hire their own graduates (academic inbreeding); university teachers are able to work in several higher education institutions or combine teaching with work in business; university teachers have the opportunity to combine several professional roles (teaching, administrative work, research, etc.); university teachers have several options to change their job; publication activity is an important indicator of the efficiency and competitiveness of university teachers. This study is an online survey of 317 teachers of different disciplines from several types of state higher education institutions from different regions of Russia. The results of the regression analysis show that antecedents of affective commitment include belonging to a group of insiders (working in university from which they graduated), having an additional administrative position, role clarity, and role conflict. Structural equation modelling shows that an additional administrative position had a direct positive effect and an indirect negative effect (through role conflict) on the affective commitment to the university. Having work experience at another university predicts only a normative commitment to the university. The affective component of commitment to the university was a better negative predictor of the intention to leave the position, profession and institution. No components of the commitment predict publication activity. |
| Keywords: | organizational commitment, academic inbreeding, academic profession, universities |
| JEL: | I20 I23 J28 J40 J60 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:30psy2014&r=tra |
| By: | Zuzana Prouzová; Vladimír Hyánek (Department of Public Economics, Masaryk University) |
| Abstract: | According to the theory, there are some reasonable reasons to assume that non-profit organizations behave specifically, in the way that is significantly different from the behaviour typical for both for-profit and public subjects. We believe that nonprofit organizations have several attributes predetermining them for publicly beneficial behaviour especially during the tough times of economic crisis; in such times they behave in a very different manner from their for-profit and public counterparts. And such specific “under pressure” behaviour represents the key topic of this paper. Paper investigates NPOs´ reactions to the distinctive change of the economic environment. We analyse the 2008 – 2012 period; Czech non-profit organizations have been relatively strongly affected by the crisis in this period, although this affection probably haven’t been as heavy as in some other European countries. Because of the complexity of the field, the paper does not explore changes of the amount and structure of the private philanthropy in detail, the strongest attention is being paid to the changes of the public finance support for the non-profit sector. This public support plays the major role in the resource portfolio of many Czech NPOs. During above mentioned period both the scope and structure of this public support have significantly changed. Government tried to substantially cut the public expenditures, unfortunately also in the field of social and health care, where many Czech NPOs operate. All this have influenced the strategies of the non-profit organizations. We analyse how those governmental activities influenced the scope and structure of the non-profit sector revenues, amount and structure of its assets, investments, production, and employment especially. Analysis of the above mentioned factors brings us valuable information concerning the “non-profit reflection” of economic changes. Our main contribution is to be in the proving that NPOs are able to adapt themselves to the changed conditions - essence of this ability consists of innovative behaviour and innovative strategies. We try to prove that accepting the non-distributing constraint has led Czech NPOs to specific behaviour patterns, different from the behaviour typical for companies or public subjects (public services providers). We come with the recognition of the long-term character the non-profit organizations´ strategies; this is particularly evident when examining the role of the non-profit sector employers with the clear preference of stable level of the employment. Generally speaking, we document the stabilizing potential of the non-profit sector. This analysis is being applied to the social care in the times of economic crisis. As the major sources we utilize the Satellite Account of the Non-profit Institutions and our own research of the Government Grant Policy towards Non-State Non-Profit Organisations, which delineates the support to non-state NPOs and preliminary finding from our research project “The Impact of public financing on the structure of resources and production of NPIs”. |
| Keywords: | Nonprofit organizations; Funding sources; Social care; National Accounting |
| JEL: | L31 L38 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:mub:wpaper:17&r=tra |
| By: | Graham Floater; Philipp Rode; Alexis Robert; Chris Kennedy; Dan Hoornweg; Roxana Slavcheva; Nick Godfrey |
| Abstract: | Urbanisation is one of the most important drivers of productivity and growth in the global economy. Between 2014 and 2050, the urban population is projected to increase by around 2.5 billion people, reaching 66% of the global population. By 2030, China’s cities alone will be home to nearly 1 billion people. India, Nigeria and Indonesia will also experience rapid population growth. If managed well, the potential benefits of this urban growth are substantial. The economic potential is driven by raised productivity resulting from the concentration of people and economic activities in cities that leads to a vibrant market and fertile environment for innovation in ideas, technologies and processes. Similarly, well-managed cities in high income countries could continue to concentrate national economic growth, through re-densification and the roll out of innovative infrastructure and technologies. |
| JEL: | R14 J01 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:60775&r=tra |
| By: | International Monetary Fund. European Dept. |
| Abstract: | KEY ISSUES Background: Poland’s strong fundamentals and sound policies helped it to successfully withstand several bouts of market turbulence and paved the way for economic recovery. While Poland has benefited from its continued transformation into a more open and dynamic economy, its substantial trade and financial linkages with global markets, combined with still-large financing needs, also make it vulnerable to external shocks. Outlook and risks: With only modest growth in its trading partners, economic activity in Poland is expected to remain moderate in the near term. Risks remain tilted to the downside amid concerns about a protracted slowdown in the euro area, continued geopolitical tensions in the region, and uncertainty surrounding normalization of monetary policy in the United States. Domestically, the risk of continued disinflation remains high. Flexible Credit Line (FCL): Against this background, the authorities are requesting a new two-year precautionary FCL arrangement with proposed lower access in the amount of SDR 15.5 billion (918 percent of quota) and cancellation of the current arrangement, approved on January 18, 2013. Poland’s improved economic fundamentals and increased policy buffers have reduced financing needs. However, external risks remain elevated. In this context, the authorities consider that a new FCL in the requested amount would provide an important insurance against external risks, help sustain market confidence, and support their economic strategy. At the same time, the authorities consider that the substantial reduction in access sends a clear signal of their intention to fully exit from the FCL once external risks recede. In staff’s view, Poland continues to meet the qualification criteria for access under the FCL arrangement. Fund liquidity: The impact of the proposed commitment of SDR 15.5 billion on Fund liquidity would be manageable. Process: An informal meeting to consult with the Executive Board on a possible FCL arrangement for Poland was held on December 19, 2014. |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:15/16&r=tra |
| By: | Gabriela Vaceková; Zuzana Prouzová (Department of Public Economics, Masaryk University) |
| Abstract: | The commercialization of nonprofit institutions (NPIs) is a prominent theme in modern multidisciplinary studies. The trend towards nonprofit commercialization has increased significantly in recent years as more and more NPIs explore revenue generating opportunities. To examine nonprofit commercial revenues is thus of both theoretical relevance and practical importance around the world, including post-transitional countries. The aim of the paper is to determine the share and scope of nonprofit commercial revenues in the Czech Republic and to discuss their limitations. We try to show the true character of NPI funding sources based on the motives behind NPI entrepreneurial activities. The NPI funding sources are examined from a business perspective while emphasizing their “quasi” modalities. The paper concludes with suggestions for further research into the commercialization of NPIs in post-transitional countries. |
| Keywords: | Nonprofit institutions; Funding sources; Nonprofit commercial revenues; For-profits-in-disguise; System of National Accounting |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:mub:wpaper:16&r=tra |
| By: | Toma, Mircea |
| Abstract: | The introduction or elimination, increase or decrease of taxes and contributions, theoretical and practical, can not ignore the direct and / or underlying effects (collateral) on chain: Financial institutions - Suppliers of inputs - Agricultural producers - En-gross traders - Processing industry - En-detail traders - Consumer - State Budget. Solutions require transparency, solidarity, equity, social justice in the distribution of efforts and usufruct(profit) for the whole chain participants in achieving useful goods and services to human society. A particularly aspect has VAT with effect from 1 July 1993, as a Romanian fiscal system compatible with EU procedures. By the additions and changes to VAT management procedures for agricultural activities (exemption from VAT of individual producers, the reverse charge in the production of cereals and technical crops, reducing the quota of VAT collected on chain at 9% for bread), fiscal inequity was created between farmers according to the legal status of the organization and operation, between sectors of agricultural production, but also to the users of agricultural production. The most disadvantaged are those of 3,859,000 individual farmers, family farms and associations without legal status, that use 7.45 million ha (56% of the total utilized agricultural of 13,306,000 ha). The study conclusion is the need of adapting VAT management procedures to the realities of Romanian agriculture by recognizing VAT on inputs used for agricultural production by individual producers, legal unorganized, valorised at the economic agents. By the recommended measures the individual producers' incomes grow by about 13-15% (300- 500 lei / ha wheat equivalent) without affecting the cost of raw materials to users of agricultural production, even if it increases the financial effort for its purchase. There are eliminated the discrimination between sectors of agricultural production (crop, livestock, horticulture, wine and fruit growing, fish, etc.), there are created conditions for the consolidation of farms and unblocking the association process and the formation of producer groups and/or agricultural cooperatives and a better use of financial resources and grants. It increases the efficiency and contribution of agriculture to the state budget revenues. Those 3,859,000 of individual producers (individual businesses, family farms, associations) legal unorganized, and the 31 thousand companies with legal personality for the 5.856 million ha(44%) of operation. (RGA-2010) beneficiate the measures proposed. Agricultural production is included in the fiscal system, the receipts and payments are fluidized and reduce the pressure for VAT refunds from the state budget (about 108 million. Lei / year for the wheat used for bread). It reduces the phenomenon of unfair competition and tax evasion area, bureaucracy, abuse and corruption. Fees, taxes and contributions should not be treated as simple budgetary resources, but also as effective tools of orientation farmers, and not only, through the level, mechanisms, procedures of charging and taxing that the state institutions can promote for the stabilization and improvement production and supply of agricultural services as part of a functioning market economy. |
| Keywords: | VAT, reverse charge, exemption, reduced VAT rate, VAT collection; tax evasion, farms, farmers, financial resources, efficiency, economic crisis, budget revenues |
| JEL: | E62 Q12 Q18 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61642&r=tra |
| By: | Bucur, Sorinel Ionel; Bucur, Elena Carmen |
| Abstract: | The determinants of economic growth in a national economy or in an activity field were the subject of many disscusions between specialists, starting from identifying the indicators considered to be the engine of economic growth, but also to the correlations between them, and to the interpretation of the results. The aim of the present approach is to identify some factors with direct influence on economic growth in the Romanian agrofood sector. Our research used common statistical methods, on the basis of public information, from the National Institute of Statistics and National Commission for Prognosis. Regarding to the agricultural sector, were identified as indicators/factors with influence on the economic growth the following: final consumption, the value of exports, the value of production for market, variation of stocks, the value of taxes on products. Analysis of the data series of the indicators mentioned above and correlations between them reveal their involutions in terms of efficiency and productivity levels, being still far from ensuring sustainable economic growth in the agrofood sector. |
| Keywords: | influence factors, economic growth, agrofood sector |
| JEL: | Q0 Q19 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61625&r=tra |
| By: | Leah, Tamara |
| Abstract: | Soil, the main means of production in agriculture of Moldova suffered a progressive deterioration in the last 20-30 years due to a intensive operations without adequate investment to preserve and improve its natural properties. Intensive exploitation led to changes in chemical composition(dehumification, alkalinization,salinization) andstructure (compaction) and degradation through erosion, pollution, landslides etc. It was estimated a loss of agricultural potential of the soil to 40% due to these direct negative effects of soil degradation. Policy analysis and response strategies showed that the state support of agriculture is very limited. There is no single source of information, containing reports on the amounts (internal and external) have been allocated, the distribution thereof and the name of the projects implemented or under implementation. Evaluation and monitoring of donor funded projects is made in several stages. In this process not involved beneficiaries and the results are made public only in some cases, depending on the scope of the project. To overcome the problems caused by land degradation is required structural agricultural policy, to ensure better use of land. |
| Keywords: | agriculture, degradation, policies, soil, strategies |
| JEL: | Q00 Q24 Q28 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61723&r=tra |
| By: | Grodea, Mariana |
| Abstract: | Although the international milk market has registered a permanent demand increase, in the analyzed period (2002-2012), the dairy products export made by Romania, have registered relatively modest values, in meeting the demand. In this period, the Romanian trade with dairy products has known an ascending trend, and, especially after the year 2007, increases were massive o imports side, but low, in comparison with those made by the main players on the international market. The method used was the comparative analysis, in the period 2000-2012, of some sets of indicatives specific for the trade with dairy products, having as source of information international reports and studies elaborated by the European Commision, the data of FAOSTAT Agriculture and EUROSTAT. From the analyses made, as a conclusion we can observe the fact that Romania is a net importer of dairy products, this category of products presenting a strongly deficit balance (in 2012, the debt trade balance for milk and dairy products was of -157552 thousand i euros, decreasing from the preceeding year by 8.2%). |
| Keywords: | import, export, dairy products, trade balance |
| JEL: | F19 O52 Q17 |
| Date: | 2014–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61731&r=tra |