nep-tra New Economics Papers
on Transition Economics
Issue of 2015‒02‒28
forty-six papers chosen by
J. David Brown
United States Census Bureau

  1. The Limits of Career Concerns in Federalism: Evidence from China By Persson, Petra ; Zhuravskaya, Ekaterina
  2. Multi-dimensional Intertemporal Poverty in Rural China By Jing You ; Sangui Wang ; Laurence Roope
  3. Financial Integration and China’s Global Impact By Rod Tyers
  4. The adjustment of Moldova's competition law to European Union competition law By Bologan, Dumitriţa
  5. The China (Shanghai) Pilot Free Trade Zone: Background, Developments and Preliminary Assessment of Initial Impacts By Daqing Yao ; John Whalley
  6. Accession to the Eurozone as Lithuania’s exit strategy from the currency board system By Dorota Zuchowska
  7. Pricing sovereign credit risk of an emerging market By Gonzalo Camba-Méndez ; Konrad Kostrzewa ; Anna Mospan ; Dobromił Serwa
  8. GDP Growth in Russia: Different Capital Stock Series and the Terms of Trade By Kaitila, Ville
  9. ICT Modernization and Globalization: Russian Perspectives By Grigori Feiguine ; Julia Solovjova
  10. Financing the endogenous development at regional and county levels. Particularities, trends and challenges By Zaman, Gheorghe ; Georgescu, George
  11. The practice of industrial policy . Lessons for Africa: Case studies of decentralized co-ordination in China By Dinh, Hinh T.
  12. Trilemma Challenges for the People's Republic of China By Kawai, Masahiro ; Liu, Li-Gang
  13. The impact of the minimum wage on job separations and working hours among young people in Poland By Anna Baranowska-Rataj ; Iga Magda
  14. Catching up of Emerging Economies: The Role of Capital Goods Imports, FDI Inflows, Domestic Investment and Absorptive Capacity By Alexander Glas ; Michael Hübler ; Peter Nunnenkamp
  15. Carbon policy in a high-growth economy: The case of China By Lucas Bretschger ; Lin Zhang
  16. Energy-saving and emission-abatement potential of Chinese coal-fired power enterprise: A non-parametric analysis By Wei, Chu ; Löschel, Andreas ; Liu, Bing
  17. Women in transition and today: what do they want, realize, and experience in the labor market? By Karolina Goraus ; Magdalena Smyk ; Lucas van der Velde
  18. Do Negative Native-Place Stereotypes Lead to Discriminatory Wage Penalties in China's Migrant Labor Markets? By Maurer-Fazio, Margaret ; Connelly, Rachel ; Thi Tran, Ngoc-Han
  19. System of Indicators of Eurasian Integration II By Vinokurov, Evgeny
  20. Съвременното състояние на корпоративното управление в България By Dimitrov, Mitko ; Tchipev, Plamen D ; Keremidchiev, Spartak ; Bakardjieva, Radostina
  21. Forecasting Mortgages: Internet Search Data as a Proxy for Mortgage Credit Demand By Branislav Saxa
  22. Anomie And Alienation In The Post-Communist Area: A Reapplication Of The Middleton Scale In Russia And Kazakhstan By Ekaterina I. Lytkina
  23. The Domestic Segment of Global Supply Chains in China under State Capitalism By Heiwai Tang ; Fei Wang ; Zhi Wang
  24. A Linkage between Firm Agglomeration and Poverty Reduction First evidence in Vietnam By Long Thanh Giang ; Cuong Viet Nguyen ; Tuyen Quang Tran
  25. Significance of Foreign Direct Investment for the Development of Russian ICT sector By Grigori Feiguine ; Julia Solovjova
  26. The Reanimation Of Piracy: Challenges Of Adapting International Law Norms Into Russia’s Legal System By Anton A. Varfolomeev
  27. China's Inter-regional Trade of Virtual Water: a Multi-regional Input-output Modeling By Xueting Zhao
  28. Bubble or Riddle? An Asset-Pricing Approach Evaluation on China’s Housing Market By Qu FENG ; Guiying Laura WU
  29. The internationalization of the RMB, capital market openness, and financial reforms in China By Aizenman , Joshua
  30. Dynamic Shift to a Basket-Peg or Floating Regime in East Asian Countries in Response to the People's Republic of China's Transition to a New Exchange Rate Regime By Yoshino, Naoyuki ; Kaji, Sahoko ; Asonuma, Tamon
  31. Determinants Of Corruption Perceptions: Transitional Vs. Developed Economies By Andrey V. Aistov ; Elvina Mukhametova
  32. Structural Change and the Dynamics of Real Exchange Rate By Xiaodong Zhu ; Juanyi Xu ; Yong Wang
  33. Financial market reform – A new driver for China’s economic growth? By Chen, Yu-Fu ; Funke , Michael ; Tao , Kunyu
  34. FDI in China and global production networks: Assessing the role of and impact on big world players (East Asia, Japan, EU28 and U.S.) By Zhou, Jing ; Latorre, María C.
  35. The Diffusion of Information and Behavior in Social Networks: Renewable Energy Technology Adoption in Rural China By Pan He ; Marcella Veronesi
  36. The Real Value of China's Stock Market By Jennifer N. Carpenter ; Fangzhou Lu ; Robert F. Whitelaw
  37. A New Money Exchange System: The World Calorie Currency (WCC) By Zhou, Xinyi Jimmy
  38. Does Conceptual Decision-Making Style Make School Principal An Efficient Reforms Promoter By Rustam F. Bayburin ; Nadezhda V. Bycik ; Nikolay B. Filinov ; Natalya V. Isaeva ; Anatoly G. Kasprzhak
  39. Credible enough? Forward guidance and perceived National Bank of Poland’s policy rule By Pawel Baranowski ; Pawel Gajewski
  40. Russian University Students And The Combination Of Study And Work: Is It All About Earning, Learning Or Job Market Signaling? By Sergey Roshchin ; Victor Rudakov
  41. China’s Contribution to Development Cooperation: Ideas, Opportunities and Finances By Justin Yifu LIN ; Yan WANG
  42. Wealth Effects of Rare Earth Prices and China's Rare Earth Elements Policy By Maximilian Mueller ; Denis Schweizer ; Volker Seiler
  43. Love, money, and old age support : does parental matchmaking matter ? By Huang, Fali ; Jin, Ginger Zhe ; Xu, Lixin Colin
  44. The role of the Univesrities of Oradea and Debrecen in attracting foreign students in the field of medicine By Toca, Constantin-Vasile ; Teperics, Károly ; Czimre, Klára
  45. ICT Modernization in Central and Eastern Europe By Stanislaw Kubielas ; Magdalena Olender-Skorek
  46. Acquiring Control in Emerging Markets: Foreign Acquisitions in Eastern Europe and the Effect on Shareholder Wealth By Sharma, Abhijit ; Raat, Erwin

  1. By: Persson, Petra ; Zhuravskaya, Ekaterina
    Abstract: Performance-based promotion schemes in administrative hierarchies have limitations. Chinese provincial leaders, despite facing strong career concerns, make different policy decisions depending on their career backgrounds. Provincial party secretaries who rose from low to high positions within the province they govern (“locals”) spend a higher share of budgetary resources on education and health care and invest less in construction infrastructure than party secretaries who made their most significant career advancements in other provinces (“outsiders”). Identification comes from variation in central leadership and term limits. As the promotion mechanism rewards infrastructure investments, locals are less likely to be promoted at the end of the term. We explore various mechanisms and provide evidence that the difference between locals and outsiders is not driven by knowledge or experience. Several pieces of evidence suggest that locals cater to low-level provincial elites, who helped them rise to power. Thus, local career trajectories limit the power of career concerns by fostering competing allegiances.
    Keywords: autocracy; career concerns; China; federalism; hierarchies; public goods
    JEL: H11 H70 P26
    Date: 2015–02
  2. By: Jing You ; Sangui Wang ; Laurence Roope
    Abstract: We analyse intertemporal poverty in two important dimensions - income and nutrition - in less developed northwest China during 2000-2004.  A generalised recursive selection model is proposed which enables simultaneous estimation of the causes of intertemporal poverty within and between dimensions.  Improvement in agricultural production is crucial for reducing both dimensions of intertemporal poverty.  We find evidence suggestive of intertemporal income-nutrition poverty traps.  Higher labour productivity, especially in agriculture rather than local off-farm activities or out-migration, holds much potential for breaking the vicious circle.  Agricultural innovation and mechanisation, regarded by the government as indispensable, yield mixed outcomes for intertemporal multi-dimensional poverty reduction.
    Keywords: intertemporal poverty, multi-dimensional poverty, rural China
    JEL: D63 I3 O52
    Date: 2014–12–18
  3. By: Rod Tyers
    Abstract: Product and financial market integration determine the global implications of China’s recent growth surge and its on-going transition from export led growth. These alter China’s structural imbalance (its excess product supply and excess saving), which in turn shifts the international terms of trade, changing asset yields causing deflationary and then inflationary pressures abroad. The effects are here quantified using a global macro model with national portfolio rebalancing, in which asset differentiation is used to index financial integration. The growth surge is found to have conferred on the advanced economies gains in their terms of trade, incompletely offset by structural unemployment. By contrast, the global effects of the transition are shown to reverse some of these impacts and to be amplified by further financial integration, particularly for the US.
    Keywords: Financial integration, China, imbalances, saving, monetary policy, spill-overs
    JEL: F42 F43 F47
    Date: 2015–01
  4. By: Bologan, Dumitriţa
    Abstract: This paper explores the historical background of the political and economic relations between the Republic of Moldova and the European Union, presenting an overview of relevant documents such as the Partnership and Cooperation Agreement and the Association Agreement. Special emphasis is put on the development of competition law in Moldova as one of the main instruments for ensuring the function of a market economy. In this context, the paper also addresses the process of adjustment of Moldova's relevant legislation to the European Union competition law, describing the range of legal instruments and institutions involved in this process and the monitoring thereof by the European Union.
    Keywords: European integration,Partnership and cooperation agreement,Association agreement,European competition law,Moldavian competition law,Adjustment of competition rules,Neighbor policy
    Date: 2015
  5. By: Daqing Yao ; John Whalley
    Abstract: The China (Shanghai) Pilot Free Trade Zone (SPFTZ) founded one year ago is a trial for China’s new round of reform and opening out, which has promised liberalization on capital account and trade facilitation as its main objectives. Here we discuss the differences between the SPFTZ and other free trade areas, and the developments of the SPFTZ in the past year. We also make a preliminary assessment of the SPFTZ’s initial impacts, especially of its impact on China’s capital account opening and financial liberalization. It is possible that the successful practice of the SPFTZ and more pilot policies replicated in China will give rise to a more balanced Chinese economy in the following decade.
    JEL: F49
    Date: 2015–02
  6. By: Dorota Zuchowska (College of Social and Media Culture in Torun )
    Abstract: In the years 2004-2014 the Lithuania’s exchange rate policy was based on a rigid currency board system. After a period of uncontested success in the fight against inflation in the first decade of the transition and economic growth, entering the ERM II in 2004 and efforts to adopt the euro were treated as an optimal exit strategy from the currency board system. However, the consequences of this exchange rate system in the following years (until 2014) prevented Lithuania from meeting the economic convergence criteria. The starting point for the research is based on the theoretical analysis of literature studying benefits and risks associated with the use of the currency board system by the monetary authorities. The empirical analysis refers to the case of Lithuania and covers the years 2004-2014. The purpose of this analysis is to look at the effects of the use of the currency board system from the perspective of the convergence criteria of monetary nature and the extent of their implementation in the absence of opportunities for autonomous monetary policy.
    Keywords: Currency Board; Inflation;Euro Adoption; Lithuania
    JEL: E31 F31 F36
    Date: 2015–02
  7. By: Gonzalo Camba-Méndez ; Konrad Kostrzewa ; Anna Mospan ; Dobromił Serwa
    Abstract: We analyze the market assessment of sovereign credit risk in an emerging market using a reduced-form model to price the credit default swap (CDS) spreads thus enabling us to derive values for the probability of default (PD) and loss given default (LGD) from the quotes of sovereign CDS contracts. We compare different specifications of the models allowing for both fixed and time varying LGD, and we use these values to analyze the sovereign credit risk of Polish debt throughout the period of a global financial crisis. Our results suggest the presence of a low LGD and a relatively high PD for Poland during a recent financial crisis. The highest PD is in the months following collapse of Lehman Brothers. The derived measures of sovereign risk are strongly linked with the level of public debt and with another measure of PD from a structural model. Correlations between our PD values and the CDS spreads heavily depend on the maturity of the sovereign CDS.
    Keywords: sovereign credit risk, CDS spreads, probability of default, loss given default, Poland
    JEL: C11 C32 G01 G12 G15
    Date: 2014
  8. By: Kaitila, Ville
    Abstract: There are different academic assessments as to what lies behind Russia’s GDP growth: total factor productivity or fixed capital investments. Studies that reconstruct capital stocks for Russia using gross fixed capital formation and the perpetual inventory method tend to lean towards the former answer, while capital services datasets that have recently been made available lean towards the latter. We reconstruct a capital stock series for Russia for 1995–2013, and compare the results to two capital services time series using the Solow growth model. We also take into account terms of trade developments that have lent strong support to the economy.Finally, we use these tools to construct four possible scenarios for Russia’s economic growth up until 2030.
    Date: 2015–02–25
  9. By: Grigori Feiguine (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) ); Julia Solovjova (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) )
    Abstract: The development of ICT is considered as an important indicator of globalization. The main hypothesis is that the development of ICT and global activities of both countries and regions are positively correlated. As criteria for global activities the exports and FDI-inflows are taken. The hypothesis is tested with the example of the world economy, post-socialist countries and Russia. Russian regional differences in ICT development in the context of the global activities of Russian regions are analyzed.
    Keywords: Regulation, Telecommunication, EU, Innovation, Convergence
    JEL: L43 L96 N14 O31
    Date: 2014–05
  10. By: Zaman, Gheorghe ; Georgescu, George
    Abstract: The paper focuses on the complex dialectics between endogenous and exogenous components of local and territorial economic development, emphasizing the idea of the particular consistency of internal growth factors and the importance, in this context, of financial means for activating the endogenous potential in the case of Romania. The county was considered as statistical observation unit for the period of analysis 2007-2013 and the data were disaggregated on bank loans, FDI, research and development expenditures, European structural and cohesion funds, local budgets expenditures. It was found that the more developed counties have better chances to achieve higher performances of endogenous development. The study highlighted the need of a policy mix that would support the development of counties with a relatively low development level, actually most of them, under the circumstances of a polycentric regional development. An optimal combination between top-down and bottom-up interventions may prove to be the most successful, offering an effective compatibility of decentralization with the coordination and monitoring requirements, supporting the smart specialization at county level, not excluding spillover effects at community and national levels.
    Keywords: regional economics; endogenous development; polycentric regional development; local development; endogenous financial factors
    JEL: O18 P25 R10 R11 R50
    Date: 2015–02–15
  11. By: Dinh, Hinh T.
    Abstract: This paper draws on both successful and failing cases of industrialization in China to analyse the role of local governments in fostering the growth of light manufacturing. The broad spectrum of support types and the intimate knowledge of enterprise condi
    Keywords: Africa, China, industrial policy, industrialization, decentralized co-ordination
    Date: 2014
  12. By: Kawai, Masahiro (Asian Development Bank Institute ); Liu, Li-Gang (Asian Development Bank Institute )
    Abstract: This paper first reviews recent developments in exchange rate regimes, capital account liberalization, interest rate liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy autonomy may have been reduced with falling capital control effectiveness and a rigid exchange regime that is still tightly managed against the United States (US) dollar. This hypothesis is investigated empirically using both the Taylor rule and the McCallum-like rule to test whether the PRC's money market interest rate and/or quantity of money supply are being increasingly influenced by the US interest rate or reserve accumulation. The paper concludes that there is considerable evidence suggesting diminishing monetary policy autonomy in the PRC. To regain policy autonomy, the monetary authority needs to substantially increase exchange rate flexibility of the renminbi as long as it continues to pursue capital account opening.
    Keywords: trilemma challenges; exchange rate regimes; monetary policy autonomy; peoples republic of china; taylor rule; mccallum rule
    JEL: E52 E58
    Date: 2015–02–16
  13. By: Anna Baranowska-Rataj (Institute of Statistics and Demography, Warsaw School of Economics ); Iga Magda (Department of Economics, Warsaw School of Economics )
    Abstract: The aim of this paper is to investigate the impact of the minimum wage on the risk of job separation and changes in working hours among young people in Poland. To this end, we use longitudinal data from the Labour Force Survey 2003-2011 and a difference-in-differences matching estimator based on the changes in the individual position in the wage distribution. Specifically, we test the impact of the minimum wage by distinguishing between individuals who experienced a transition to the below-the-minimum-wage regime. Our results indicate that when the minimum wage was increased, employment levels, but not the number of hours of worked, declined among young people. We also found that the number of hours worked actually increased among those young people who remained employed after the minimum wage was raised. However, these effects of a hike in the minimum wage were found to have differed across various groups of workers, with men, students, and individuals who were working under a fixed-term contract being most likely to have either lost a job or increased their working longer hours.
    Keywords: minimum wage, youth unemployment, difference-in-differences matching
    JEL: J21 J24 J63
    Date: 2015
  14. By: Alexander Glas ; Michael Hübler ; Peter Nunnenkamp
    Abstract: We assess the role of capital goods imports and inflows of foreign direct investment (FDI) as transmission channels through which major emerging economies (BRICs, i.e., Brazil, Russian Federation, India and China) could catch up with advanced source countries in terms of total factor productivity (TFP). We find that the importance of these transmission mechanisms depends on the BRICs’ local capacity to absorb superior technologies and on domestic investment
    Keywords: total factor productivity; imports; foreign direct investment; absorptive capacity; BRICs
    JEL: F14 F21 O47
    Date: 2015–01
  15. By: Lucas Bretschger ; Lin Zhang
    Abstract: There is widespread concern that an international agreement on stringent climate policies will not be reached because it would imply too high costs for fast growing economies like China.  To quantify these costs we develop a general equilibrium model with fully endogenous growth.  The framework includes disaggregated industrial and energy sectors, endogenous innovation, and sector-specific investments.  We find that the implementation of Chinese government carbon policies until 2020 causes a welfare reduction of 0.3 percent.  For the long run up to 2050 we show that welfare costs of internationally coordinated emission reduction targets lie between 3 and 8 percent.  Assuming faster energy technology development, stronger induced innovation and rising energy prices in the reference case reduces welfare losses significantly.  We argue that increased urbanization raises the costs of carbon policies due to altered consumption patterns.
    Keywords: Carbon policy, China, Endogeneous growth, Induced innovation, Urbanization
    JEL: Q54 O41 O53 C68
    Date: 2014–07–31
  16. By: Wei, Chu ; Löschel, Andreas ; Liu, Bing
    Abstract: In the context of soaring demand for electricity, mitigating and controlling greenhouse gas emissions is a great challenge for China's power sector. Increasing attention has been placed on the evaluation of energy efficiency and CO2 abatement potential in the power sector. However, studies at the micro-level are relatively rare due to serious data limitations. This study uses the 2004 and 2008 Census data of Zhejiang province to construct a non-parametric frontier in order to assess the abatement space of energy and associated CO2 emission from China's coal-fired power enterprises. A Weighted Russell Directional Distance Function (WRDDF) is applied to construct an energy-saving potential index and a CO2 emission-abatement potential index. Both indicators depict the inefficiency level in terms of energy utilization and CO2 emissions of electric power plants. Our results show a substantial variation of energy-saving potential and CO2 abatement potential among enterprises. We find that large power enterprises are less efficient in 2004, but become more efficient than smaller enterprises in 2008. State-owned enterprises (SOE) are not significantly different in 2008 from 2004, but perform better than their non-SOE counterparts in 2008. This change in performance for large enterprises and SOE might be driven by the "top-1000 Enterprise Energy Conservation Action" that was implemented in 2006.
    Keywords: Energy-saving potential,CO2 abatement potential,Weighted Russell Directional Distance Function,Coal-fired power enterprise
    Date: 2015
  17. By: Karolina Goraus (Faculty of Economic Sciences, University of Warsaw ); Magdalena Smyk (Faculty of Economic Sciences, University of Warsaw ); Lucas van der Velde (Faculty of Economic Sciences, University of Warsaw )
    Abstract: We investigate how women’s attitude and realization of choices towards equal participation in the labor market changes with age, and how these patterns differ between generations in transition and Western economies. As transition countries experienced a drop in employment rates regardless of gender, we study the relative change in the position of women, compared to similarly endowed men. We find that disentangling age, time, and cohort effects is necessary to appropriately assess women’s progress on labor markets in transition. The results indicate that in Western Europe countries women born later have much more equal position on the labor market as compared to older birth cohorts, but this is not the case in transition economies.
    Keywords: gender gaps, women empowerment, women labor force participation
    JEL: J21 J71
    Date: 2015
  18. By: Maurer-Fazio, Margaret (Bates College ); Connelly, Rachel (Bowdoin College ); Thi Tran, Ngoc-Han (Graduate Institute of International and Development Studies, Geneva )
    Abstract: China's linguistic and geographic diversity leads many Chinese individuals to identify themselves and others not simply as Chinese, but rather by their native place and provincial origin. Negative personality traits are often attributed to people from specific areas. People from Henan, in particular, appear to be singled out as possessing a host of negative traits. Such prejudice does not necessarily lead to wage discrimination. Whether or not it does depends on the nature of the local labor markets. This chapter uses data from the 2008 and 2009 migrant surveys of the Rural-Urban Migration in China Project (RUMiC) to explore whether native-place wage discrimination affects migrant workers in China's urban labor markets. We analyze the question of wage discrimination among migrants by estimating wage equations for men and women, controlling for human capital characteristics, province of origin, and destination city. Of key interest here are the variables representing provinces of origin. We find no systemic differences by province of origin in the hourly wages of male and female migrants. However, in a few specific cases, we find that migrants from a particular province earn significantly less than those from local areas. Male migrants from Henan in Shanghai are paid much less than their fellow migrants from Anhui. In the Jiangsu cities of Nanjing and Wuxi, female migrants from nearby Anhui are paid much less than intra-provincial Jiangsu migrants.
    Keywords: migrants, discrimination, wages, China, stereotypes, native-place, labor markets
    JEL: J71 J23 J61 J31 O15 O53 P36
    Date: 2015–02
  19. By: Vinokurov, Evgeny
    Abstract: The System of Indicators of Eurasian Integration” (SIEI) has a long-term status. It presents the results of regular monitoring and assessment of the pattern and key vectors of Eurasian integration and cooperation in the CIS region. SIEI is acknowledged as one of top-3 systems of regional integration analysis globally. It is based on official statistics. The analysis covers a wide range of areas of the countries’ integration — from macroeconomic policies to student mobility.
    Keywords: regional integration, economic integration, post-Soviet, Russia, Eurasia, European Union, Eurasian Economic Union
    JEL: F13 F15 F5
    Date: 2014
  20. By: Dimitrov, Mitko ; Tchipev, Plamen D ; Keremidchiev, Spartak ; Bakardjieva, Radostina
    Abstract: The paper presents the results of a large study of the current state of the corporate governance in Bulgaria, made in the light of the established principles and standards of corporate governance in the country and good practices in other economies. For this purpose two empirical studies are made with managers of public and non-public companies, as well as a representative study on the attitude of the population as a potential investor and two focus groups with key representatives of public companies, presenting the investors’ community and civic associations, Bulgarian Stock Exchange and experts in the field. The main conclusion of the study is that the corporate governance in the country is in an initial stage of its development. It needs a periodical studying, constant monitoring. The introduced standards for good corporate governance are to be improved and confirmed so the competitiveness of the Bulgarian economy can be supported. Bulgarian National Corporate Governance Code, adapted by most public companies, ranges the main leading principles and standards for current corporate governance. The National Code reflects normatively determined decisions, as well as practices voluntarily adopted by the corporations. Still, the principles and standards of the National Corporate Governance Code can be further developed and improved. For this purpose the paper presents recommendations concerning corporate boards, stakeholders and the corporate social responsibility.
    Keywords: corporate governance, Bulgaria, National Corporate Governance Code, good practices
    JEL: G3 G34
    Date: 2014
  21. By: Branislav Saxa
    Abstract: This paper examines the usefulness of Google Trends data for forecasting mortgage lending in the Czech Republic. While the official monthly statistics on mortgage lending come with a publication lag of one month, the data on how often people search for mortgage-related terms on the internet are available without any lag on a weekly basis. Growth in searches for mortgages and growth in mortgages actually provided are strongly correlated. The lag between these two growth rates is two months. Evaluation of out-of-sample forecasts shows that internet search data improve mortgage lending predictions significantly. In addition to forecasting performance evaluation, an experimental indicator of restrictively tight mortgage credit standards and conditions is proposed. Nowadays many countries run bank lending surveys to monitor the tightness of bank lending standards and conditions. The proposed indicator represents a complementary tool to such a survey.
    Keywords: Credit demand, credit standards and conditions, credit supply, forecast evaluation, forecasting, Google econometrics, Internet search data, mortgage, smoothing
    JEL: C22 C82 E27 E51
    Date: 2014–12
  22. By: Ekaterina I. Lytkina (National Research University Higher School of Economics )
    Abstract: Unlike commonly used, anomie and alienation not only have different theoretical backgrounds, but also different indicators and predictors. I examine the highly institutionalized alienation scale originally introduced by Middleton (1963), reapplied as a measurement of alienation (Seeman, 1991) and anomie (Huschka and Mau 2005, 2006) in a very relevant context for an anomic situation – the post-Communist countries Russia and Kazakhstan (round six of the World Values Surveys fielded the alienation question in just these two countries). Based on confirmatory factor analysis and multiple group comparisons, I find that the scale consists of two dimensions, which can be described as an anomie and alienation. The anomic dimension consists of indicators “normlessness” and “powerlessness,” whereas the alienative one is comprised by “social isolation”, “meaninglessness,” and “job dissatisfaction.” Though the structure proves to have full invariance in both countries, the predictors for anomie and alienation are different. For both countries, only income is an important predictor for anomie, and though to a lower degree, for alienation. In Kazakhstan, the level of urbanization also provides an impact on the level of anomie. Apart from income, in Russia alienation can be predicted by gender, and type of occupation (manual or intellectual), whereas in Kazakhstan it can be predicted by age
    Keywords: anomie, alienation, Russia, Kazakhstan, measurement invariance
    JEL: B14 C38 C39 P20
    Date: 2015
  23. By: Heiwai Tang (Johns Hopkins University and Hong Kong Institute for Monetary Research ); Fei Wang (University of International Business and Economics ); Zhi Wang (United States International Trade Commission )
    Abstract: This paper proposes methods to incorporate firm heterogeneity in the standard input-output table¡Vbased approach to portray the domestic segment of global value chains in a country. The analysis uses Chinese firm census data for the manufacturing and service sectors, along with constrained optimization techniques. The conventional input-output table is split into sub-accounts, which are used to estimate direct and indirect domestic value added in exports of different types of firms. The analysis finds that in China, state-owned enterprises and small and medium domestic private enterprises have much higher shares of indirect exports and ratios of value-added exports to gross exports compared with foreign-invested and large domestic private firms. Based on input-output tables for 2007 and 2010, the paper finds increasing value-added export ratios for all firm types, particularly for state-owned enterprises. It also finds that state-owned enterprises are consistently more upstream while small and medium domestic private enterprises are consistently more downstream within industries. These findings suggest that state-owned enterprises still play an important role in shaping China¡¦s exports.
    Keywords: Value-Added Trade, Global Supply Chain, Intra-National Trade, State Capitalism
    JEL: F1 C67 C82
    Date: 2015–02
  24. By: Long Thanh Giang ; Cuong Viet Nguyen ; Tuyen Quang Tran
    Abstract: In this paper, we examine the linkage between the firm agglomeration and welfare of local households in Vietnam. We measured the firm agglomeration by per capita firm outputs at the district level, and household welfare by per capita income, expenditure and poverty. We find that the firm agglomeration helps households move from the informal sector to the formal sector. As a result, there is a positive effect of the firm agglomeration on per capita income, per capita expenditure, and poverty reduction, albeit at a small and time-decreasing magnitude. The effect of the firm agglomeration on per capita expenditure tends to be higher for households with male, younger and more educated heads than households with female, older and less educated heads. Households who live in rural areas and do not have crop land are more likely to benefit from the firm agglomeration than those living in urban areas and having cropland.
    Keywords: agglomeration, firm performance, poverty, household survey, panel data, Vietnam.
    JEL: L11 I31 I30
    Date: 2015–02–10
  25. By: Grigori Feiguine (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) ); Julia Solovjova (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) )
    Abstract: The paper contains an overview of main FDI theories. The focus is on the role of FDI inflows within development of national ICT sector (case of Russia). General trends (volumes, structural distribution) in FDI inflows in Russian ICT sector are identified and summarized. Some recommendations regarding the opportunities to attract FDI in Russian ICT sector are given.
    Keywords: FDI, Regulation, Telecommunication, EU, Russia, Innovation, Convergence
    JEL: L43 L96 N14 O31
    Date: 2014–05
  26. By: Anton A. Varfolomeev (National Research University Higher School of Economics )
    Abstract: This study focuses on the dissonance between the definition of piracy in Russia’s Criminal Code (disposition of Article 227) and piracy as defined by international law (Article 101 of the UN Convention on the Law of the Sea, 1982). This can create obstacles in the appropriate qualification of piracy acts and lead to a certain discord between the two (national and international) law systems. At least four areas of possible disagreements were identified: contradictions over a place to commit an act of piracy; over the object of crime; a purpose, and over a crime’s objective aspect. The paper also investigates the potential competitions between jurisdictions, including situations in Russia’s exclusive economic zone and on board a vessel registered at a Russian port.
    Keywords: piracy, criminal prosecution, universal jurisdiction, collision of jurisdiction, Russia.
    JEL: K33
    Date: 2014
  27. By: Xueting Zhao (Regional Research Institute, West Virginia University )
    Abstract: This study focuses on the measure of inter-regional trade of virtual water, defined as the freshwater consumed for producing traded goods and services, to explain the relationship between China’s regional virtual water and the increasing water demand. By using the multi-regional input-output (MRIO) tables of 2002 and 2007 with the regional sectoral water use, this study analyzes virtual water in trade, domestic trade in virtual water, and the regional trade balance of virtual water. The results show that: (1) water use efficiency has increased in China; (2) the major source of the regional virtual water in trade are domestic inter-regional trade; and (3) a region’s virtual water depends on its water resources availability, economic structure, as well as the region’s position in domestic supply chain.
    Keywords: virtual water, multi-regional input-output(MRO)model, China
    JEL: C67 Q25 R11
    Date: 2014–12
  28. By: Qu FENG (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332 ); Guiying Laura WU (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332 )
    Abstract: Rapid house price growth and high price-to-income ratio in major Chinese cities have aroused a hot debate on whether there is an asset bubble in China's residential housing market. To investigate this question, we employ an equilibrium asset-pricing approach, which suggests an non-arbitrage condition on the rent-to-price ratio. This ratio should be equal to the difference between the user cost of housing capital and the expected appreciation in house prices. Using a novel micro-level data set on pair-wise matched price-to-rent ratio collected in the fourth quarter of 2013, and forecasting the expected house price appreciation based on fundamental factors, our empirical exercises do not suggest the existence of a house price bubble at the national level. However, this conclusion highly depends on the expected income growth rate and may not apply to individual markets.
    Keywords: House Prices, Asset Pricing Approach, Rent-to-Price Ratio
    JEL: R21 G12
    Date: 2015–02
  29. By: Aizenman , Joshua (BOFIT )
    Abstract: This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of export-led growth, benefiting from learning by doing, and by adopting foreign know-how, supported by a complex industrial policy. While the resultant growth has been spectacular, it comes with hidden but growing costs and distortions. The Chinese export-led growth path has been challenged by its own success, and the Global Financial Crisis forced China toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY, one expects the rapid accelerating of the commercial internationalization of the CNY. In contrast, there are no clear-cut reasons to rush with the full CNY financial internationalization: The gains from CNY financial internationalization are overrated.
    Keywords: export led growth; CNY internationalization; mercantilism; financial integration; FDI
    JEL: E60 F36 F40 O24 O40
    Date: 2015–02–12
  30. By: Yoshino, Naoyuki (Asian Development Bank Institute ); Kaji, Sahoko (Asian Development Bank Institute ); Asonuma, Tamon (Asian Development Bank Institute )
    Abstract: This paper analyzes a desirable transition path for East Asian countries given the People's Republic of China's (PRC's) transition to a new exchange rate regime. It attempts to answer two main questions: (i) Would these countries be better off shifting to either a basket peg or a floating regime following the PRC's transition to a basket peg regime? (ii) How and when should these countries shift to the desired regime? The paper captures the influence of the PRC's predetermined shift in its exchange rate regime on East Asian countries' decisions regarding their optimal transition policies based on a dynamic stochastic general equilibrium (DSGE) model of a small open economy. Our calibration exercise using Malaysian and Singapore data from the first quarter (Q1) of 2000 to Q4 2012 reveals that a gradual adjustment to a basket peg is the most desirable policy for both countries. A sudden shift to a basket peg is superior to maintaining a dollar peg in Malaysia, but not in Singapore. Finally, a sudden shift to a floating regime is even worse than maintaining a dollar peg in both countries.
    Keywords: basket peg; floating regime; exchange rate transition; peoples republic of china; monetary policy
    JEL: F33 F41 F42
    Date: 2015–02–17
  31. By: Andrey V. Aistov (National Research University Higher School of Economics ); Elvina Mukhametova (National Research University Higher School of Economics )
    Abstract: In this paper we explore relationships between corruption perceptions and such characteristics as the size of shadow economy, GDP per capita, well-being, the Happy Planet Index (HPI), and quality of institutions. Special attention is paid to the comparison of transitional economies with countries that joined the European Union in 2004 and 2007, and developed countries. It is shown that irrespective of whether the economy is developed or transitional, negative dependence of corruption perceptions on shadow economy switches to positive if the size of the shadow economy increases over 15% of the official GDP. After the shadow economy passes 45%, the Transparency International Corruption Perceptions Index ceases to respond to growth of the shadow economy. Our estimates conrm that transition in countries is accompanied by growth of GDP per capita and a decrease in the level of corruption perceptions. For these reasons, transitional countries and countries where transition is over belongs to different clusters according to these indicators. This is not true for well-being and the HPI. It is not surprising that a regression analysis shows that "control of corruption" and "regulatory quality" are significant for reducing corruption perceptions both in transitional and other economies. It is interesting that "government effectiveness" and "voice and accountability" are significant only for transitional economies and insignificant in others. "Rule of law" and "political stability" are insignificant both in transitional and in developed countries
    Keywords: corruption, quality of institutions, the CPI score, shadow economy, transitional economies, well-being
    JEL: D73 O17 H11 P37
    Date: 2015
  32. By: Xiaodong Zhu (University of Toronto ); Juanyi Xu (Hong Kong Univ of Science and Technology ); Yong Wang (Hong Kong University of Science and Tech )
    Abstract: In this paper, we first examine empirically the Balassa-Samuelson effect in the presence of structural change. Using cross-country data on per capita income, price level and employment shares by sector, we find that a country’s tradable sector’s share of employment is a more significant predictor of the country’s price level than its per capita income, suggesting that the widely used empirical Balassa-Samuelson model is often mis-specified and biased in the face of structural change. We then re-examine the theoretical relationship between price level and per capita income in a model with structural change and show that the positive relationship between price level and per capita income predicted by the standard model is not a robust result in a multi-sector world. In contrast, the relationship between a country’s price level and the tradable sector’s share of employment is much more robust. Finally, we extend our theoretical analysis into a dynamic trade model with unbalanced trade to quantitatively examine how structural changes and policy distortions may have influenced the dynamics of the China-US real exchange rate. We show that much of the slow increase in the value of the Chinese currency over the last decade can be accounted for by the significant expansion of the tradable sector in China.
    Date: 2014
  33. By: Chen, Yu-Fu (BOFIT ); Funke , Michael (BOFIT ); Tao , Kunyu (BOFIT )
    Abstract: This paper analyses the financial distortions – growth nexus in China using a tractable general equilibrium modelling approach in which heterogeneous private and state-owned firms interact. The focal points of the model are financial frictions and reallocations of factors of production across firms. The calibrated version of the model elicits the important message that the adoption of a comprehensive financial market reform package abolishing financial distortions will lead to substantial output gains. Thus, structural policies leading to more efficient allocation of factors of production will remain a key policy challenge in China in the years to come.
    Keywords: financial distortions; financial liberalisation; general equilibrium model; China
    JEL: C68 G10 G38 O10
    Date: 2015–02–23
  34. By: Zhou, Jing ; Latorre, María C.
    Abstract: This paper analyzes several effects of FDI accruing to Textiles, Chemicals, Electronics and Machinery in China. Though the four sectors have contrasting production technologies and vary largely in trade patterns, the related Chinese exports and imports still follow a general trend: East Asia and Japan are the main intermediate suppliers while the rest of regions play more the role of final markets. The paper describes the networks among big regions, providing their relative importance across different levels (local industry, global industry, host economy and world economy). It also estimates a rich set of regional impacts after the rising FDI inflows.
    Keywords: Multilevel analysis, Globalization, Industrial Organization, MNEs and Economic Growth in Emerging Markets
    JEL: C68 F14 F21
    Date: 2015–02–20
  35. By: Pan He (ETH Zurich ); Marcella Veronesi (Department of Economics (University of Verona) )
    Abstract: Adopting renewable energy technologies has been seen as a promising way to reduce CO2 emissions and deforestation. This paper investigates how social networks may affect renewable energy technology adoption. We distinguish two channels through which social networks may play a role: (i) the diffusion of information; and (ii) the diffusion of behavior. Most empirical studies fail to quantitatively separate the diffusion of information and behavior in social networks. We conduct a survey on biogas technology adopting in rural China to identify individuals’ egocentric information networks. We find that both the diffusion of information and behavior drive farmers’ technology adoption. Farmers with larger egocentric information networks and a larger fraction of known adopters are more likely to adopt the biogas technology. In addition, we collect data on several attributes of alters to explore the composition of social networks. We find heterogeneous social network effects across different types of alters. Alters who have close relationships with egos such as friends and relatives or that are trusted by egos affect egos’ adoption through the diffusion of information, while less trusted alters such as government officials affect egos’ adoption through their adoption behavior.
    Keywords: Social networks, renewable energy, technology adoption, information diffusion, behavior diffusion, biogas, China
    JEL: D83 D85 Q55
    Date: 2015–02
  36. By: Jennifer N. Carpenter ; Fangzhou Lu ; Robert F. Whitelaw
    Abstract: China is the world’s largest investor and greatest contributor to global economic growth by wide margins, and will remain so for many years. The efficiency of its financial system in allocating capital to investment will be important to sustain this growth. This paper shows that China’s stock market has a crucial role to play. Since the reforms of the last decade, China’s stock market has become as informative about future corporate profits as in the US. Moreover, though it is a segmented market, Chinese investors price risk and other stock characteristics remarkably like investors in other large economies. They pay up for large stocks, growth stocks, and long shots, and they discount for illiquidity and market risk. China’s stock market no longer deserves its reputation as a casino. In addition, the trend of stock price informativeness over the last two decades is highly correlated with that of corporate investment efficiency. China’s stock market appears to be aggregating diffuse information and generating useful signals for managers. On the buy side, because of its low correlation with other stock markets and high average returns, China’s stock market offers high alpha to diversified global investors who can access it. Yet this high alpha amounts to an inflated cost of equity capital, constraining the investment of China’s smaller, more profitable enterprises. Further reforms that open this market to global investors and improve stock price informativeness will be important to increase China’s investment efficiency and fuel its continued economic growth. Finally, we interpret the stock market’s recent gyrations through the lens of this research, arguing that its post-crisis lag was a rational downward adjustment to competition from the rapidly expanding shadow banking sector, and its enormous rally last year is a cheer for the roll out of deposit insurance and other Third Plenum reforms. More than ever, China’s stock market is a crucial counterpart to its extraordinary, relationship-driven, but opaque banking sector. China’s stock market may now be the world’s most important crystal ball.
    JEL: E44 G12 G15 G18 O16 O53 P20 P34
    Date: 2015–02
  37. By: Zhou, Xinyi Jimmy
    Abstract: The current ruble crisis causes much trouble for many of those eastern European countries like Russia and its neighbour countries: Strong ruble depreciation and high inflation for consumer goods are its most negative consequences. Because the ruble is only a national currency, but not a world currency, some people might ask if we introduce a new global currency, the World Calories Currency (WCC) or "Cal-Money", that currency would be less vulnerable and less crisis-prone. In this short paper, I firstly present the 4 main criteria of a successful and widely accepted currency: 1. Fair valuability & high inflation security, 2. high trust and acceptance among the users, 3.high distribution over the world and 4. high supportiveness of the real economy. After I compared the strength & weaknesses of the World Calorie Currency and present some concrete measures to make the Cal-Money implementation more smoothly, I then came to conclusion that all 4 main criteria of a successful, world wide applicable currency would be fulfilled by the WCC.
    Keywords: New Money Exchange System, World Calorie Currency (WCC), Real economy supportive, Ruble, currency crisis, world currency, CalorieCoin, Central bank supported, Hard currencies, BRICS, Food and energy sector, health supportive
    JEL: E40 E41 E42
    Date: 2015–02–22
  38. By: Rustam F. Bayburin (National Research University Higher School of Economics ); Nadezhda V. Bycik (National Research University Higher School of Economics ); Nikolay B. Filinov (National Research University Higher School of Economics ); Natalya V. Isaeva (National Research University Higher School of Economics ); Anatoly G. Kasprzhak (National Research University Higher School of Economics )
    Abstract: The paper attempts to contribute to the ongoing debate on the impact of executive’s behavioral pattern on the speed and effectiveness of the organizational transformation. Authors consider the large-scale reform of school education system launched in the Russian Federation and look at the principals’ decision-making behavioral patterns. The use of A.Rowe’s Decision Style Inventory (DSI) gives the opportunity to get fast results for a large and representative set of principles and compare these to that of similar study undertaken earlier in Canada. In spite of the fact that the two nations exhibit substantially different cultural characteristics some important conclusions about the principals’ behavior and its potential influence do coincide, which makes authors think that these have to do not with the national culture, but rather with some generic features of the school as an organization. Practical implication of the research is seen in providing assessment of the cadre of principals as agents of change at the current stage of reforms of the Russian educational system
    Keywords: school principal, school leadership, decision-making style, education system's reform potential
    JEL: I21 M12 D81
    Date: 2014
  39. By: Pawel Baranowski (Faculty of Economics and Sociology, University of Lodz ); Pawel Gajewski (Faculty of Economics and Sociology, University of Lodz )
    Abstract: Credible forward guidance should reduce the perceived impact of macroeconomic variables on the interest rate. Using a micro-level dataset we test the perception of monetary policy in Poland among professional forecasters and find evidence for forward guidance credibility.
    Keywords: minimum wages, survey data, forward guidance, Taylor rule, expectations
    JEL: E44 E52 E58
    Date: 2015–02
  40. By: Sergey Roshchin (National Research University Higher School of Economics. ); Victor Rudakov (National Research University Higher School of Economics )
    Abstract: The issue of how Russian students combine work and study can be analyzed through the quality of university, the quality of students and a number of financial, academic, social and demographic factors. These factors may have an effect on student employment and student labor supply, and help shed light on what motivates students to enter the labor market. We discovered that 64.7% of Russian students combined study and work and most of them begin working during their 3rd year of study. Our results indicate that factors associated with the quality of students, such as studying in a top university and participating in research activities, positively affect the probability of student employment, but negatively affect the labor supply. Financial motivations for student employment are also significant. However, we found no evidence that combining study and work affects students’ academic achievements
    Keywords: higher education, student employment, combining work and study, job market signaling, human capital
    JEL: E32
    Date: 2015
  41. By: Justin Yifu LIN (FERDI ); Yan WANG (FERDI )
    Abstract: Conventional economic theories seem to be inadequate in explaining the diverse and multipolar world we live in. Having lost confidence in the Washington consensus, developing countries are increasingly looking East for development experiences and ideas: what worked, why and how. This paper examines China’s role in development cooperation from the angle of structural transformation as a major driver of growth and job creation.  Being a bit ahead in the structural transformation process, China can contribute ideas, tacit knowledge, implementation capacity, opportunities as well as finances. Based on a joint learning model, developing countries choose partners based on their respective comparative advantages, instruments of interaction and degree of complementarity. Countries that have a higher number of revealed comparative advantage (RCA) in sectors that needed strongly would be in a better position to help in structural transformation. We use empirical evidence to show that China-financed infrastructure projects do address Africa’s infrastructure bottlenecks, and in addition, China’s industrial upgrading and outward investment provide opportunities for light manufacturing development in low-income developing countries. Further, expanding the definitions of international aid or cooperation could induce more development financing from various sources. Rationales of China-led grand vision of “One Belt One Road” are discussed.
    JEL: F35
    Date: 2015–01
  42. By: Maximilian Mueller (WHU–Otto Beisheim School of Management ); Denis Schweizer (Concordia University ); Volker Seiler (University of Paderborn )
    Abstract: Rare earth elements (REEs) have become increasingly important because of their relative scarcity and worldwide increasing demand, as well as China’s quasi-monopoly of this market. REEs are virtually not substitutable, and they are essential for a variety of high- tech products and modern key technologies. This has raised serious concerns that China will misuse its dominant position to set export quotas in order to maximize its own profits at the expense of other rare earth user industries (wealth transfer motive). In fact, export restrictions on REEs were the catalyst for the U.S. to lodge a formal complaint against China in 2012 at the WTO. This paper analyzes possible wealth transfer effects by focusing on export quota announcements (so-called MOFCOM announcements) by China, and the share price reactions of Chinese REE suppliers, U.S. REE users, and the rest of the world REE refiners. Overall, we find limited support for the view of a wealth transfer in connection with MOFCOM announcements only when disentangling events prior to and post the initiation of the WTO trial, consistent with the trial triggering changes to China’s REE policy and recent announcement to abolish quotas. We do find, however, that extreme REE price movements have a first order effect on all companies in the REE industry consistent with recent market trends to enable hedging against REE price volatility.
    Keywords: Announcement Effects, Event Study, Rare Earths Elements, WTO
    JEL: F13 F52 G14 Q31 Q34 Q37 Q38
    Date: 2015–01
  43. By: Huang, Fali ; Jin, Ginger Zhe ; Xu, Lixin Colin
    Abstract: Parental involvement in matchmaking may distort the choice of spouse because parents are willing to substitute love for market and household production, which are more sharable between parents and their children. This paper finds supportive evidence in a survey of Chinese couples. In both rural and urban areas, parent matchmaking is associated with less marital harmony between the couple, more submissive wives, and a stronger belief in old age support for the son. In contrast, its association with couple income differs by rural and urban regions, perhaps because of differences in earning opportunities and in the enforcement of the one-child policy. Moreover, parent matchmaking is associated with more children for the couple and lower schooling for wives only in rural areas. Thus, in places with a stronger need for old age support, parents tend to be involved in matchmaking and use it to select submissive daughters-in-law to ensure old age support. The results render support to Becker, Murphy and Spenckuch (2015), who imply that parents would meddle with children's preferences to ensure their commitment to providing old age support.
    Keywords: Population&Development,Population Policies,Gender and Law,Youth and Governance,Rural Poverty Reduction
    Date: 2015–02–01
  44. By: Toca, Constantin-Vasile ; Teperics, Károly ; Czimre, Klára
    Abstract: In the context of cross-border cooperation, the border between Romania and Hungary is a very active one, with cooperation between the two countries reaching diverse fields of interest. At the same time there is a great interest for this cooperation in the Bihor-Hajdu Bihar Euroregion and in Oradea and Debrecen, the centers of the Bihor and Hajdu Bihor counties, respectively. Out of all the fields that benefit from this cooperation, the educational field is the one that stands out the most, especially higher education – with the two university centers in question being the University of Oradea and the University of Debrecen. Between the two institutions the cooperation in the field of medicine will be our subject of study. Given the territorial proximity of the two institutions and the growing interest in the prívate medical sector in this area, we can talk about a strong cross-border medical pole, Oradea – Debrecen at the border between Romania and Hungary. The experience gained in the field of medicine, coupled with the application of good practice examples, internationally recognized study of medicine and increased visibility of the two centers has atracted more and more foreign students from all over the world that choose to study medicine here. The research methodology applied in this paper has its basis in the analysis of social documents and the statistical analysis of data provided by the two institutions, with the target group being the University of Oradea and the University of Debrecen. Our aim is to highlight the importance of the two centers in the field of medicine and their ability to atract students for study at these universities. We will employ a comparative analysis between the two universities.
    Keywords: mobilities; Bihor – Hajdu Bihar Euroregion; University of Oradea; University of Debrecen; field of medicine
    JEL: F5 I20 I23 I25 J1
    Date: 2014
  45. By: Stanislaw Kubielas (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) ); Magdalena Olender-Skorek (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW) )
    Abstract: The paper characterizes main trends in ICT implementation and diffusion in the CEE countries in terms of market volume, its dynamics, economic development and ICT trade integration within the EU market. This gives support to the hypothesis of gradual closing up of technology gap in ICT sector between the CEE and the ‘old’ EU countries in the course of the ongoing process of integration and catching up. The second part of the paper delivers a detailed account of the modernization level achieved in Poland and other CEE countries in particular ICT segments and score rankings as against other EU countries. The focus is on the relationship between NRI index, as a measure of ICT development, and GDP per capita, competitiveness and productivity. Finally, the level of ICT services in CEE is assessed, in particular, in the area of broadband, mobile telecommunication, and e-services.
    Keywords: Innovation, Telecommunication, EU, CEE, Convergence ICT, RCA in ICT Trade, Internet, Technology Gap, Knowledge Diffusion, Regulation
    JEL: F14 F15 L63 L86 L96 N14 O31 O33 P27
    Date: 2014–05
  46. By: Sharma, Abhijit ; Raat, Erwin
    Abstract: This paper examines stock market reaction to cross-border acquisition announcements that involve Eastern European emerging-market targets. Using a unique and a manually collected dataset, we identify 125 cross-border acquisitions in which developed-market firms from France, Germany, Netherlands, and the United Kingdom acquire ownership stakes in emerging as well as developed-markets in Europe during the period January 2000 through December 2011. In line with previous findings on foreign cross-border merger and acquisitions (M&As) in emerging- markets, evidence suggests that when the target firm is located in either the Czech- Republic, Hungary, Poland, or Russia, cumulative abnormal return (CAR) to the acquiring developed-market firm shows a statistically significant increase of 1.26% over a three day event window, following the announcement. Thereby, the relative size of the acquirer to the target appears to be the only significant factor that contributes to positive acquirer returns. The result is robust to the inclusion of controls for country, industry, as well as acquirer, target, and firm specific characteristics. Moreover, cross-border M&As involving an emerging-market target result in higher value creation for the acquiring shareholders than cross-border transactions into developed-markets.
    Keywords: cross border, merger and acquisition, Eastern Europe, cumulative abnormal returns
    JEL: G34
    Date: 2014–12

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