nep-tra New Economics Papers
on Transition Economics
Issue of 2015‒04‒19
sixty-one papers chosen by
J. David Brown
United States Census Bureau

  1. Specifics of Cluster Policy in Russia By Zemtsov S.P; Pavlov P.N; Sorokina A.V.
  2. Land Supply and Money Growth in China By Liu, Taoxiong; Huang, Mengdan
  3. Fundamental Research in Modern Russia and Their Role in the Development of Russian National Innovation System By Kleeva, Lyudmila; Nikitova, Anna; Kleev, Ivan; Krotov, Alexander
  4. Perspectives Of Introduction Sustainable Procurement In Public Procurement In Russia By Irina Romodina; Maxim Silin
  5. Chinese Outwards Mercantilism – the Art and Practice of Bundling By Joshua Aizenman; Yothin Jinjarak; Huanhuan Zheng
  6. Health Care Systems’ Evolvement and the Changing Role of the State in Selected CEEC By Jacek Klich
  7. Implementation of Risk-Based State-Government Regulation in the Russian Conditions By Ivleva, Galina; Borovikova, Elena; Melnikov, Roman
  8. Income Inequality by Method of Non-weighted Average Absolute Deviation: case study of Central and Eastern European Countries By Kamila Tureckova
  9. Migration Externalities in Chinese Cities By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  10. The impact of the recession on health care expenditure — How does the Czech Republic, Hungary, Poland and Slovakia compare to other OECD countries? By Baji, Petra; Péntek, Márta; Boncz, Imre; Brodszky, Valentin; Loblova, Olga; Brodszky, Nóra; Gulácsi, László
  11. Innovation in Russia: the territorial dimension By Riccardo Crescenzi; Alexander Jaax
  12. Mercantilism and China’s hunger for international reserves By Marcel Schroder
  13. Central and Eastern Europe: New Member States (NMS) Policy Forum, 2014, Staff Report on Cluster Consultations—Common Policy Frameworks and Challenges By International Monetary Fund
  14. Production Dependence on Imports of Russian Industry and Mechanism of Strategic Import Substitution By Berezinskaya, Olga; Vedev, Alexey; Larionova, Dina
  15. Growing (Un)equal: Fiscal Policy and Income Inequality in China and BRIC+ By Serhan Cevik; Carolina Correa-Caro
  16. China: How Can Revenue Reforms Contribute to Inclusive and Sustainable Growth? By Raphael W. Lam; Philippe Wingender
  17. Prospects for the development of prosumer energy in Poland By Magdalena Zajaczkowska
  18. Improvement of Methods of Non-Observable Economy Analysis in Russia By Abroskin, Alexander; Abroskina, Natalia
  19. Assessing China’s Corporate Sector Vulnerabilities By Mali Chivakul; Raphael W. Lam
  20. Statistical analysis of business cycle fluctuations in Poland before and after the crisis By Lukasz Lenart; Blazej Mazur; Mateusz Pipien
  21. Sources of Financing Knowledge-Based Economy: the Case of Formal, Non-Formal and Informal Education in Poland By Iwona Kowalska
  22. Public-private mix and performance of health care systems in CEE and CIS countries By Blazej Lyszczarz
  23. Risk Analysis of Energy Performance Contracting Projects in Russia: An Analytic Hierarchy Process Approach By Garbuzova-Schlifter, Maria; Madlener, Reinhard
  24. Monopolistic markups in the Polish food sector By Justyna Kufel
  25. The specific of economic competitiveness evaluation of cities from cross-border region under the context of urban shrinkage By Jurgita Bruneckiene; Jolita Sinkiene
  26. Konkurencyjnoœæ Ma³ych i Œrednich Przedsiêbiorstw By Lidia Klos
  28. Does the Outsourcing Affect Labour Costs in Enterprises? Evidence from Firm-level Data By Anna Grzes
  29. Revenues, expenses, profitability and investments of potential contenders for the status of a listed company in Poland By Joanna Malecka
  30. China's “Great Leap Forward” in Science and Engineering By Richard B. Freeman; Wei Huang
  31. European Union and labour’s legal resources in Central and East European Countries By Jan Drahokoupil; Martin Myant
  32. Frontiers of Monetary Policymaking: Adding the Exchange Rate as a Tool to Combat Deflationary Risks in the Czech Republic By Ali Alichi; Jaromir Benes; Joshua Felman; Irene Feng; Charles Freedman; Douglas Laxton; Evan Tanner; David Vavra; Hou Wang
  33. Bargaining Practice and Negotiation Failure in Russia-Ukraine Gas Relations By David Tingle
  34. Exchange Rate and the Dependence of the Russian Economy on Imports By Berezinskaya, Olga
  35. Forms of Participation of Civil Society in the Independent Evaluation of the Effectiveness of Social Area By Galieva, Nadezhda; Grishina, Elena; Ragozina, Lyudmila; Topoleva-Soldunova, Elena; Rogozin, Dmitriy; Tsatsura, Elena
  36. Evidence-Based State Policy By Voloshinskaya, Anna; Komarov, Vladimir
  37. Volunteer and satisfied? Rural households’ participation in a payments for environmental services programme in Inner Mongolia By Sylvie Démurger; Adeline Pelletier
  38. Trends in IPOs: The Evidence from CEE Capital Markets By Tomas Meluzin; Marek Zinecker
  39. Optimal Practice of Creation and Management of Gold Reserves By Leontyeva, Elena; Narkevich, Sergey
  40. Sub-National Institutions and Firm Survival in Vietnam By Doan, Quang Hung; Vu, Hoang Nam; Dao, Ngoc Tien
  41. The modern challenges of regional development and socio-economic potential of town districts belonging to North macro-region of Poland By Iwona Koza
  42. Non-profit Institutions’ Funding Resources in the Time of Crisis: Market or Government? By Vladimír Hyanek; Zuzana Prouzová
  43. Export specialization in services of the Visegrad countries By Joanna Stefaniak-Kopoboru; Joanna Kuczewska
  44. United, yet apart? A note on persistent labour market differences between Western and Eastern Germany By Schnabel, Claus
  45. Assessment of the performance and competitiveness of the selected clusters in the Moravian-Silesian Region By Hana Stverkova; Vlasta Humlova
  46. Features of Polish Companies. Results of the Company Competitiveness Barometer 2014 By Olaf Flak; Grzegorz Glod
  47. Profitability of simple technical trading rules of Chinese stock exchange indexes By Hong Zhu; Zhi-Qiang Jiang; Sai-Ping Li; Wei-Xing Zhou
  48. Republic of Serbia: 2014 Article IV Consultation and Request for Stand-By Arrangement-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Serbia By International Monetary Fund
  49. Romania: 2015 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Romania By International Monetary Fund
  50. Analysis of the Impact of Non-Standard Monetary Policy Measures on the Main Macroeconomic Indicators By Vashelyuk, Natalya; Trunin, Pavel
  51. Social Trust and Differential Reactions of Local and Foreign Investors to Public News By Chunxin Jia; Yaping Wang; Wei Xiong
  52. Hungary: 2015 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Hungary By International Monetary Fund
  53. Republic of Armenia: 2014 Article IV Consultation-First Review Under the Extended Arrangement-Staff Report; Staff Supplement; and Press Release By International Monetary Fund
  54. Eco-innovations in the business practice of the companies traded on the Warsaw Stock Exchange – an overview of selected results. By Bogna Janik; Krzysztof Kolodziejczyk
  55. How to effectively support export activity By Anna Fornalska-Skurczynska
  56. Academic Business Incubators as an institutional form of academic entrepreneurship development in Poland By Lukasz Siemieniuk
  57. Republic of Slovenia: 2014 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Slovenia By International Monetary Fund
  58. Banking concentration in the Baltic and Western Balkan states – selected issues By Katarzyna Kubiszewska
  59. Структурные сдвиги в экономике Красноярского края и их воздействие на сферу потребления By Edzhibiy, Tatyana; Degtyareva, Svetlana; Demchenko, Svetlana
  60. The effects of internal and external imbalances on Romanian’s economic growth By Soukiazis, Soukiazis; Antunes, Micaela; Stoian, Andreea
  61. How Did Household Indebtedness Hamper Consumption during the Recession? Evidence from Micro Data By Merike Kukk

  1. By: Zemtsov S.P (Russian Presidential Academy of National Economy and Public Administration); Pavlov P.N (Russian Presidential Academy of National Economy and Public Administration); Sorokina A.V. (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The article presents the results of management quality survey in Russian clusters that reveals specifics of cluster support policy in Russia. We compare 22 Russian clusters, supported by the Government, using series of indicators measuring cooperation intensity of cluster participants and activity of cluster management teams. We introduce a description of the typical Russian innovative territorial cluster, based on the average values of the indicators. Our analysis revealed that international communications, information about funding and training courses are highly useful tools to improve collaborations among cluster participants. This paper proposes a methodology for measuring cluster performance by the cluster scale index, cluster development index and cluster management efficiency index. In conclusion, we formulate recommendations for cluster policy improvement in Russia, based on our analysis of indicators’ correlations and comparison between the results of our research and the similar researches in other countries. This analysis will be useful for researchers and policymakers from countries, where cluster policy recently became a popular topic.
    Keywords: cluster policy; Russian regions; innovations; quality of management; cluster management team
    JEL: O32 O38 L14
    Date: 2015–04
  2. By: Liu, Taoxiong; Huang, Mengdan
    Abstract: China has experienced several episodes of inflation in recent years. Popular arguments attribute these episodes to relatively high growth rates of money, which were then primarily explained by China’s accumulation of foreign exchange reserves and the undervaluation of RMB. We attempt to explain China’s high monetary growth rates through the supply of land. Under China’s land system, the supply of land is controlled by the government and can be viewed as exogenous to the monetary system. An increase in the money supply stimulates bank loans and thereby monetary growth. Both an error correction model and a simultaneous equations model are developed to explore the effect of the land supply on monetary growth. The empirical results show that the effect of the land supply on the money supply is significantly positive and even exceeds that of foreign exchange reserves. The significance for monetary policy is that, under China’s existing political economy, both the central bank and local governments should be responsible for monetary policy and price levels.
    Keywords: land supply, money supply, foreign exchange reserves
    JEL: E50 R10 R14
    Date: 2015–03–10
  3. By: Kleeva, Lyudmila (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Nikitova, Anna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kleev, Ivan (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Krotov, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This work is devoted to modern trends in the development of fundamental science in Russia. Statistical analysis of the dynamics characterizing the development of indicators is complemented by a thematic analysis of research conducted in the Institute. It is shown that, despite the fact that the fundamental science develops according to its own laws, the subject of research in its framework meets the objectives of socio-economic development of the Russian Federation and the main trends of development of world science. Identification in the long-term and short-term factors in the development of fundamental science, as well as the reasons that underpin its weak impact on the socio-economic development of Russia, is complemented by the SWOT-analysis of modern development of fundamental science in Russia. Conclusions of the work may be useful to all readers interested in the problems of the Russian fundamental science and can contribute to the formation of an effective scientific and innovational state policy.
    Keywords: fundamental research, statistical analysis, socio-economic development of Russia, SWOT-analysis
    Date: 2015–03
  4. By: Irina Romodina (University Higher School of Economics); Maxim Silin (University Higher School of Economics)
    Abstract: The paper is about sustainable public procurement as a new global trend in the development of a sustainable economy. The main question raised is the following: how sustainable public procurement could be implemented in Russia? The study aims to investigate the prospects of the implementation of sustainable public procurement in Russia. The author presents the findings of survey, covering public procurement practices of 51 contracting authorities and documentation analysis of 400 public tenders. The analysis of Russian legislation allows to determine the sections of procurement documentation, where different aspects of sustainability could be included. The conducted survey aims to identify the aspects of sustainable public procurement already used by public authorities in procuring practices in Russia. This paper provides the unique survey of sustainable procurement practices across the Russian public sector. Research also shows the prerequisites of implementation of sustainable public procurement in Russia.
    Keywords: sustainable development; public procurement; sustainable public procurement
    JEL: A11
    Date: 2015–04
  5. By: Joshua Aizenman; Yothin Jinjarak; Huanhuan Zheng
    Abstract: The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing. The Chinese export-led growth strategy of the 2000s coincided with the country becoming one of the largest net global creditors. Intriguingly, the Chinese net income from its global creditor position was negative, reflecting the large share of its low-yielding assets (mostly international reserves), and its high share of high-yielding liabilities (mostly foreign direct investment in China). Our paper takes stock of what may be the next new chapter of Chinese outward-mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in becoming the global manufacturing hub and the supplier of swap-lines. The emerging new trend has been manifested by Chinese outward-oriented FDI in natural resources, commodities and mining, and providing a wide spectrum of infrastructure and construction services to developing countries. These activities are frequently bundled with access to finance and the export of Chinese capital products and labor services. We trace and analyze these trends, identifying the positive associations between Chinese outward FDI, trade, and finance. The positive association between Chinese outward FDI and commodities imports increases with the provision of RMB swap-lines to China’s trading partners. The association between Chinese FDI outflows in the natural resources sector and commodities imports has become stronger since the GFC. The association of RMB swap-lines with the Chinese outward FDI in the natural resources sector is especially large, thus supporting the conjecture that in the aftermath of the GFC Chinese outward FDI is bundled with trade and financial linkages.
    JEL: F4 O2
    Date: 2015–04
  6. By: Jacek Klich (Pañstwowa Wy¿sza Szko³a Zawodowa im. rtm. W. Pileckiego w Oœwiêcimiu)
    Abstract: Despite common heritage, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia (hereinafter Central and Eastern European Countries – CEEC) opted for different models while reforming their health care systems. A common (and important) component of these reforms was privatization and introduction of various market mechanisms in health care systems. The objective of the paper is to identify main challenges resulting from the health care reforms in CEEC. Review of the literature (using EBSCO and ScienceDirect databases) on the results of the health care reforms in CEEC will be followed by an analysis of the changes in health care financing in CEEC between 1995-2012 with a special emphasis on the role of the state in this process. WHO statistics (data) on national health care expenditures divided further into: total health expenditure, general government expenditure, private expenditure, and out of pocket expenditure (with various configurations) will be used. It is argued that health care reforms led (among others) to shifting the financial risk to patients and the state is slowly (and continually) withdrawing from financing health care in CEEC. This diminishing share of state financing of health care is not compensated by tax deductions and/or other forms of allowances. Also the issue of restricted access to health care is indicated here as a by-product of the health care reforms undertaken in CEEC.
    Keywords: health care reforms; Central and Eastern Europe; financing health care; privatization of health care services
    JEL: O57 L38 L30
    Date: 2015–04
  7. By: Ivleva, Galina (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Borovikova, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Melnikov, Roman (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Risk-based methods of taking decisions in the system of public administration have found applying in foreign countries with development economics and in Russia. Economic crisis, factors, which result to financial instability, problems in financial and real sector of the economy create situation of rising risks and complicate the processes of regulation of economics by the methods of government impact. In such situation there is a need to study the accumulated experience of risk-based regulation in Russia. High interest is connected with the internal mechanisms of evaluating of risks and managing of risks by controlled entities. Presented work includes analysis of Russian practice of risk-based regulation, proposals for development tools.
    Keywords: risk-based methods of taking decisions, public administration, risk-based regulation, evaluating the risks, managing the risks,
    Date: 2015–04
  8. By: Kamila Tureckova (Silesian University in Opava; School of Business Administration in Karviná)
    Abstract: The presented article uses the method of non-weighted average absolute deviation for expressing income inequality in the 11 selected Central and Eastern European Countries. Specifically, the analysis of income inequality is done for Poland, Czech Republic, Slovak Republic, Austria, Slovenia, Hungary, Romania, Bulgaria, Latvia, Lithuania and Estonia. Based on the determination of income inequality in the article there is made an analysis of development of income inequality, including the subsequent inter-regional comparison in the context of the degree of income inequality in a given human society and economy. The text of this article is organized in 4 parts, after Introduction follows the analytic chapter where is primarily the method of non-weighted average absolute deviation explained. The third part contains the empirical analysis of income inequality and the Conclusion highlights some major conclusions of detailed analysis made in chapter 3. The analysis of income distribution of 11 European households between years 2005-2013 and its order is made in deciles based on empirical data from the Statistics on Living Conditions and Welfare published by Eurostat.
    Keywords: income inequality; index; comparison; method of non-weighted average absolute deviation
    JEL: C13 D31 I32
    Date: 2015–04
  9. By: Pierre-Philippe Combes (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS, 2, Rue de la Charité,13002 Marseille, France; Sciences Po, Department of Economics, 28, Rue des Saints-Pères, 75007 Paris, France. Also affiliated to the CEPR.); Sylvie Démurger (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France); Shi Li (School of Business, Beijing Normal University, China; IZA, Bonn, Germany)
    Abstract: We analyse the impact of internal migration in China on natives’ labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives’ wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China.
    Keywords: Migration, urban development, agglomeration economies, wage disparities, China
    JEL: O18 J61 R23 J31 O53
    Date: 2015
  10. By: Baji, Petra; Péntek, Márta; Boncz, Imre; Brodszky, Valentin; Loblova, Olga; Brodszky, Nóra; Gulácsi, László
    Abstract: In the past few years, several papers have been published in the international literature on the impact of the economic crisis on health and health care. However, there is limited knowledge on this topic regarding the Central and Eastern European (CEE) countries. The main aims of this study are to examine the effect of the financial crisis on health care spending in four CEE countries (the Czech Republic, Hungary, Poland and Slovakia) in comparison with the OECD countries. In this paper we also revised the literature for economic crisis related impact on health and health care system in these countries. OECD data released in 2012 were used to examine the differences in growth rates before and after the financial crisis. We examined the ratio of the average yearly growth rates of health expenditure expressed in USD (PPP) between 2008–2010 and 2000–2008. The classification of the OECD countries regarding “development” and “relative growth” resulted in four clusters. A large diversity of “relative growth” was observed across the countries in austerity conditions, however the changes significantly correlate with the average drop of GDP from 2008 to 2010. To conclude, it is difficult to capture visible evidence regarding the impact of the recession on the health and health care systems in the CEE countries due to the absence of the necessary data. For the same reason, governments in this region might have a limited capability to minimize the possible negative effects of the recession on health and health care systems.
    JEL: I15
    Date: 2015
  11. By: Riccardo Crescenzi; Alexander Jaax
    Abstract: The debate on Russia’s innovation performance has paid little attention to the role of geography. This paper addresses this gap by applying an ‘augmented’ regional knowledge function approach to examine the territorial dynamics of innovation in Russia. The empirical results suggest that regional R&D investments are strong predictors of local innovative performance. However, R&D activities are inadequately connected to regional human capital resources. The activities of foreign firms play a fundamental role as ‘global knowledge pipelines’. Different territorial dynamics of innovation are observed in the European and the Asian part of Russia, with regions to the East of the Urals less likely to benefit from interregional knowledge spillovers. The historical legacy from the Soviet era still emerges as a strong predictor of current innovative performance, shedding light on the importance of long-term path dependency in the Russian geography of innovation.
    Keywords: Innovation, R&D, geography, regions, Russia
    JEL: R11 R12 O32 O33
    Date: 2015–04
  12. By: Marcel Schroder
    Abstract: This paper is motivated by the popular view that the surge in China’s foreign exchange reserves is due to a distortionary exchange rate policy aimed at keeping the real exchange rate undervalued to support export-led growth. It undertakes an in-depth empirical investigation to quantify how much "mercantilist" and "precautionary" motives have contributed to the reserve build-up in China during 1998Q4-2011Q4. A substantial problem is that theory is consistent with employing two vastly differing approaches to defining and estimating the role of mercantilist reserve accumulation. A priori, either method could generate misleading results. The study shows, however, that the distinction between the two approaches is immaterial in China’s case. The results suggest that mercantilism accounts for less than 10 percent of reserve accumulation. Precautionary motives and other factors seem to be the dominant determinants of the surge in China’s international reserves.
    Keywords: international reserves, precautionary demand, mercantilism, China
    JEL: E58 F31 F36
    Date: 2015
  13. By: International Monetary Fund
    Abstract: KEY ISSUES 2014 marked the tenth anniversary of accession to the EU of the first group of Central and Eastern European (CEE) countries. The first NMS Policy Forum was launched in the fall of 2014 as a platform for discussing policy frameworks and issues relevant for non-euro area NMS. It brought together representatives of the six CEE countries that are EU members but are not yet in the euro area - Bulgaria, Croatia, Czech Republic, Hungary, Poland, and Romania (NMS-6), as well as the ECB, the European Commission and the IMF. Discussions focused on four themes: Euro adoption: A once sizeable country risk premium associated with joining the euro area has mostly vanished, as the euro crisis has exposed flaws in the euro area’s institutional framework. Further, the crisis has illustrated both risks and benefits from adoption: monetary autonomy has proven helpful for absorbing shocks, while foreign currency mismatches—that can be much reduced with euro adoption—have shown to be a key vulnerability. Flexible labor markets, fiscal and macro-prudential policy space, and income convergence are prerequisites for successful adoption. Opting into the Banking Union (BU) before euro adoption: The lack of equal (or fully equivalent) treatment of the BU members and non-euro area opt-ins—regarding their role in the Single Supervisory Mechanism (SSM), as well as access to common liquidity and fiscal backstops—makes opting into the BU before euro adoption less attractive. Countries that would benefit most from early opt-in are those that see the BU as a way to enhance the quality and credibility of bank supervision or to gain access to larger industry-funded common backstops. The EU’s fiscal framework and pension reform: In the wake of the crisis, many NMS abolished second pillar pension funds. Further reforms to the EU’s fiscal framework are warranted to remove disincentives for setting up and maintaining second pension pillars and, more generally, for structural reforms. Making the most of the EU single market and EU Services Directive: Structural reforms to strengthen human capital, skills match, labor market efficiency, and foreign investment environment will help NMS to reap full benefits from EU integration. Further liberalization of trade in services will likely benefit the NMS-6 more than other EU members.
    Date: 2015–04–07
  14. By: Berezinskaya, Olga (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Vedev, Alexey (Gaidar Institute for Economic Policy - Financial Research Laboratory); Larionova, Dina (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper is devoted to analysis of production dependence of Russian industry from imports. The share of imports in the cost of industrial enterprises for raw materials, purchased semi-finished products and components is significantly grew up in the post-crisis period and the weakening of the ruble has some risks of deterioration of operating and financial performance of companies. In this work the most vulnerable industrial sectors the identified. Special attention is paid to the analysis of mechanism of import depending production of the Russian industry. Potentials for different sectors are identified, for import substitution especially. The results will contribute to a deeper understanding of the reasons for the growth of production dependence of Russian industry from imports and the nature of strategic import.
    Keywords: production dependence, import, industry, Russia
    Date: 2015–03
  15. By: Serhan Cevik; Carolina Correa-Caro
    Abstract: This paper investigates the empirical characteristics of income inequality in China and a panel of BRIC+ countries over the period 1980–2013, with a focus on the redistributive contribution of fiscal policy. Using instrumental variable techniques to deal with potential endogeneity, we find evidence supporting the hypothesis of the existence of a Kuznets curve—an inverted Ushaped relationship between income inequality and economic development—in China and the panel of BRIC+ countries. In the case of China, the empirical results indicate that government spending and taxation have opposing effects on income inequality. While government spending appears to have a worsening impact, taxation improves income distribution. Even though the redistributive effect of fiscal policy in China appears to be stronger than what we identify in the BRIC+ panel, it is not large enough to compensate for the adverse impact of other influential factors.
    Keywords: Income inequality;China;Brazil;Russian Federation;India;Fiscal policy;Income distribution;Economic growth;Cross country analysis;Time series;Panel analysis;Income distribution, income inequality, fiscal policy
    Date: 2015–03–25
  16. By: Raphael W. Lam; Philippe Wingender
    Abstract: Revenue reforms can contribute to more inclusive, green, and sustainable growth in China. Relative to OECD economies, fiscal policy in China is less redistributive. Options for promoting more inclusive growth include improving the progressivity of labor taxes (individual income tax and social security contributions), introducing a recurrent property tax, and finishing the transition to a comprehensive value-added tax. Higher environmental taxes, meanwhile, would promote more environment-friendly economy. These reforms could also significantly boost revenue, potentially by as much as 6½ percent of GDP. Such increases in revenue could help reduce the deficit, finance priority social and infrastructure spending, and offset cuts in other taxes. We illustrate how these revenue reforms could be part of a comprehensive fiscal package that achieves the needed consolidation in the (augmented) deficit and foster higher quality growth.
    Keywords: Tax revenues;China;Tax reforms;Fiscal reforms;Inclusive growth;Tax systems;fiscal Policy, China, tax reforms, government debt, social security
    Date: 2015–03–24
  17. By: Magdalena Zajaczkowska (Cracow University of Economics)
    Abstract: Renewable energy will play a key role in the transition towards a competitive, secure and sustainable energy system. In 2014 the Commission proposed an objective to increase the share of renewable energy to at least 27% of the EU's energy consumption by 2030. The European Council endorsed this target which is binding at EU level. The Renewable Energy Directive (Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC) was implemented in Poland on 20 February 2015 by the new renewable energy sources act. The objective of this article is to analyse the current state of the Polish energy sector related to the prosumer energy industry. It also describes the future potential for the development of prosumer energy in Poland. The analysis was conducted in the light of the new EU climate and energy initiatives. At the beginning, the article presents the current general state in EU’s energy sector. European Union Climate and Energy Package targets up to 2050 and the state of renewable energy use gives the background to conduct an analysis of prospects for the development of prosumer energy in Poland. That is why the last part is devoted to the prosumer energy sector in Poland in the context of European Union regulations. The critical analysis of the current situation in that sector has made it possible to evaluate prospects for the development of prosumer energy in Poland in the context of the recently introduced legal regulations.
    Keywords: prosumer; energy sources; renewable sources of energy; climate and energy policies
    JEL: A11 E61 F50 H89
    Date: 2015–04
  18. By: Abroskin, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Abroskina, Natalia (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Subject area of research are the topics of methodology and methods of complex statistical analysis of non-observed economy. The research is focused on solving urgent tasks connected with the increasing use of modern statistical methodology and analytical tools for the estimate of non-observed economic activity in RF. As the basis for the development of analytical assessments in the research are used the methodological approaches of modern version of the System of National Accounts (SNA 2008), adapted to solving the problems of complex analysis of non-observed economy and its components.
    Keywords: non-observable economy, Russia, statistical methodology, System of National Accounts
    Date: 2015–03
  19. By: Mali Chivakul; Raphael W. Lam
    Abstract: This paper documents and assesses the risk stemming from rising corporate indebtedness in China using a firm-level dataset of listed firms. It finds that while leverage on average is not high, there is a fat tail of highly leveraged firms accounting for a significant share of total corporate debt, mainly concentrated in the real estate and construction sector and state-owned enterprises in general. The real estate and construction firms tend to face lower borrowing costs and could withstand a modest increase of interest rate shocks despite their high leverage. The corporate sector is however vulnerable to a significant slowdown in the real estate and construction sector. Our sensitivity analysis suggests that the share of debt that would be in financial distress would rise to about a quarter of total listed firm debt in the event of a 20 percent decline in real estate and construction profits.
    Keywords: Corporate sector;China;Borrowing;Interest rate increases;Public enterprises;Construction services;Debt burden;Corporate sector, leverage, China, state-owned enterprise (SOE), real estate, interest rate shock
    Date: 2015–03–30
  20. By: Lukasz Lenart (Uniwersytet Ekonomiczny w Krakowie); Blazej Mazur (Uniwersytet Ekonomiczny w Krakowie); Mateusz Pipien (Uniwersytet Ekonomiczny w Krakowie)
    Abstract: The main objective of the paper is to investigate properties of business cycles in Polish economy before and after the recent crisis. The essential issue addressed here is whether there exist statistical evidence that the recent crisis has affected the properties of the business cycle fluctuations. In order to improve robustness of the results we do not confine ourselves to any single inference method, but instead use different groups of statistical tools, including non-parametric methods based on subsampling and parametric Bayesian methods. We examine monthly series of industrial production (from January 1995 till December 2014), considering properties of cycles in growth rates and in deviations from long-run trend. Empirical analysis is based on the sequence of expanding-window samples, with the shortest sample ending in December 2006. The main finding is that the two frequencies driving business cycle fluctuations in Poland correspond to cycles with periods of 2 and 3.5 years, and (perhaps surprisingly) the result holds both before and after the crisis. We therefore find no support for the claim that features (in particular frequencies) that characterize Polish business cycle fluctuations have changed after the recent crisis. The conclusion is unanimously supported by various statistical methods that are used in the paper, however, it is based on the relative short series of the data currently available.
    Keywords: APC processes, subsampling, Bayesian inference, global economic crisis, business cycle fluctuations
    JEL: C14 C46 E32
    Date: 2015–04
  21. By: Iwona Kowalska (Warsaw University of Life Sciences)
    Abstract: Globalization, negative demographic trends, new sources of knowledge and volatile job market are the determining factors behind the change in approach to the education system in Poland. Formal, non-formal and informal education is the sine qua non of the implementation of a knowledge-based economy in Poland. This process, however, requires an in-depth analysis of the funding of education. So far there have been no Polish publications analyzing the funding of the three aforementioned forms of education. Therefore, the aim of this article is to assess the possibilities to implement knowledge-based economy with regard to the current funding of formal, non-formal and informal education in Poland. The study involved the analysis of national and EU documents on subject and object oriented funding of educational tasks and procedures for determining the amount of funding allocated to these tasks. The analysis showed that the barrier inhibiting the implementation of knowledge-based economy is the lack of legal regulations enabling the implementation of new solutions for financing education in Poland. These solutions involve the effective joint funding from the state budget, local government budgets and private funds (provided by employers and learners). This requires urgent conceptual work and initiating implementation projects in the area of public finance in Poland.
    Keywords: finance; education; economy; knowledge; system
    JEL: G18 H52 I22
    Date: 2015–04
  22. By: Blazej Lyszczarz (Nicolaus Copernicus University in Toruñ)
    Abstract: The role of the public and private sector in health care systems remains one of the crucial problems of these systems' operation. The purpose of this research is to identify the relationships between the performance of health systems in CEE and CIS (Central and Eastern Europe and Commonwealth of Independent State) countries and the mix of public-private sector in the health care of these countries. The study uses a zero unitarization method to construct three measures of health system performance in the following areas: (1) resources; (2) services; and (3) health status. The values of these measures are correlated with the share of public financing that represents the public-private mix in the health systems. The data used is from World Health Organization’s Health for All Database for 23 CEE and CIS countries and comprises the year 2010. The results show that the performance of health systems in the countries investigated is positively associated with a higher proportion of public financing. The strongest relationship links public financing with performance in the area of services production. For policy makers, these results imply that health systems in post-communist transition economies could be susceptible to a decreasing role of the state and that growing reliance on the market mechanism in health care can deteriorate the operation of these systems.
    Keywords: health care system; public-private mix; transition economies, health status
    JEL: I11 H51 P36
    Date: 2015–04
  23. By: Garbuzova-Schlifter, Maria (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: Systematic and effective risk management in energy performance contracting (EPC) projects requires a sound understanding of the main risks faced by energy service companies (ESCOs) and other energy service providing companies (ESPCs), which accomplish such projects under vulnerable market conditions in Russia. This study explores the EPC project risks (risk factors and their causes) and develops a risk analysis framework that is applied to three Russian sectors: (1) industrial; (2) housing and communal services; and (3) public. The identified general risks were validated by Russian EPC practitioners in expert interviews. An analytic hierarchy process (AHP) approach was then used to rank the identified risks in terms of their contribution to the riskiness of EPC projects. The data were obtained from a web-based questionnaire survey conducted among Russian ESCOs and ESPCs. For improving consistency of the obtained AHP results, the maximum deviation approach (MDA) for 8×8 matrices and the induced bias matrix model (IBBM) for 3×3 and 4×4 matrices were applied. This study indicates that there is a need for a widely usable formal approach for risk analysis and management in EPC projects in Russia. Causes of risk related to the financial and regulatory aspects were found to contribute most to the riskiness of EPC projects performed in all three focus sectors in that country.
    Keywords: Risk analysis; energy performance contracting; EPC; energy service company; ESCO; Russia; analytic hierarchy process; AHP
    Date: 2014–10
  24. By: Justyna Kufel (Institute of Agricultural and Food Economics – National Research Institute)
    Abstract: Agri-food sectors are commonly considered as highly regulated, traditional and of strategic importance, mainly due to the food security issues. Changes in the related market structures are subject of constant interest because of their importance for competition and economic welfare of food producers and consumers. In Poland, a rising concentration among various branches of the food industry can be observed. The main objective of the article was to depict the changes of the market power execution in the Polish food sector and its branches in the period 2002-2013. As a measure of this phenomenon the markups of price above the marginal cost were applied and for their estimation two methods were used, namely the Roeger method involving primal and dual Solow residuals and the method based on the marginal cost of labor. Yearly data for 32 food sector branches and various accounting categories were used in the calculations. It was found that in the analyzed period the markup over marginal cost on average amounted to 10.4% and it was increasing over time. The labor input category seemed to be not sufficient for the markup calculation. The evolution of the monopolistic power in the Polish food sector appears to be associated not only with the business cycle, but also with the sector developments accelerated by the accession to the EU. Moreover, the differences in results for the branches indicate a considerable heterogeneity in the Polish food industry companies pricing practices.
    Keywords: markups fluctuations; Polish food sector; market power
    JEL: L11 L66
    Date: 2015–04
  25. By: Jurgita Bruneckiene (Kaunas University of Technology); Jolita Sinkiene (Kaunas University of Technology)
    Abstract: This article analyzes the issues of economic competitiveness evaluation of cross-border cities under the context of urban shrinkage. Currently the "urban shrinkage" issue is on the top of the political agenda in Europe. Under the globalization conditions, especially cities, which suffer from urban shrinkage, have to find new and modern means and attitudes for increasing urban competitiveness. The absence of methodological tools for the evaluation of economic competitiveness of the cities of cross-border regions is becoming one of the obstacles that impede the real identification of the current situation and predicting perspectives of the cross-border urban development and competitiveness. The purpose of the article – to identify the challenges and factors for improvement of economic competitiveness of the cross-border cities under the context of urban shrinkage and to develop methodological guidelines for the evaluation of cross-border regional economic competitiveness based on the findings of analysis performed on Lithuanian-Polish cross-border cities. The article distinguishes basic characteristics of the shrinking cities and related problems that have a direct impact on the improvement of economic competitiveness of the city. The economic competitiveness evaluation methodology on the cross-border cities is developed and its practical applicability is verified, based on the sample of Lithuanian-Polish cities (Alytus, Marijampole (Lithuania) and Elk, Bialystok (Poland). Panevezys and Siauliai are additionally added to the analysis as industrial cities located near Lithuania - Latvia border). Strategic recommendations on improving the economic competitiveness of Lithuanian-Polish cross-border cities are introduced in the context of urban shrinkage.
    Keywords: city, cross-border region, economic competitiveness of cities, shrinking cities
    JEL: O11 O18 R11 R58
    Date: 2015–04
  26. By: Lidia Klos (Uniwersytet Szczeciñski, Wydzia³ Nauk Ekonomicznych i Zarz¹dzania, Instytut Ekonomii, Katedra Polityki Spo³eczno-Gospodarczej i Europejskich Studiów Regionalnych)
    Abstract: The aim of the article is to present the degree of involvement of the SME sector in issues related to pro-environment activity, which has a significant impact on building a competitive advantage in the era of sustainable development. The article uses the method of secondary analysis based on data taken from a survey by the Flash Eurobarometr 342 “SME: towards energy efficiency and environmental markets” and “Report on the state of the sector’s small and medium-sized enterprises in Poland in 2012 - 2013” conducted by the Polish Agency for Enterprise Development. The analysis of the research material allowed to assess the level of involvement of the European and Polish SME sector in issues related to realization pro-environment’s operations. The analysis indicates what solutions are the most popular ones, what are the obstacles in the implementation of eco-innovation and what motivates to be eko. It let to enunciate conclusions what does the green market in the UE and in the Poland look like in the context of small and medium-sized enterprises’ competitiveness.
    Keywords: small and medium-sized enterprises; competition
    JEL: D22 D41 F18
    Date: 2015–04
  27. By: Silvia ZAHARCO (The State Agrarian University of Moldova)
    Abstract: This paper presents a study of the development of foreign trade in agricultural products of the Republic of Moldova under the impact of EU integration. The agricultural sector has been and continues to be, traditionally, the main branch of the national economy. The average share of agriculture generates to12% of GDP; in this sector almost half of the working population works. Thus, the development of the agricultural sector directly affects the living standards of the people employed in agriculture. However, the development of agriculture depends largely on agricultural production possibilities of sale on foreign markets, it depends on foreign trade.
    Keywords: trade; integration; agri-food sector; cooperation agreement; export; import.
    JEL: F15 Q17
    Date: 2015–04
  28. By: Anna Grzes (University of Bialystok)
    Abstract: This empirical paper examines an impact of materials and services outsourcing on labour costs in two groups: industrial and construction enterprises, and services enterprises in Poland in the period 2005-2013. The analysis of this dependence was based on data of Central Statistical Office included in financial statement F-01/I-01. The preliminary analysis and econometric model showed that Polish industrial and construction, and service enterprises applied both types of outsourcing, but services outsourcing had more important effect on labour costs than materials outsourcing. However, the depreciation cost understood as technological progress had the biggest impact on labour costs, especially in industrial and construction firms.
    Keywords: cost; materials outsourcing, services outsourcing; Poland
    JEL: J30 L24 L60 L80
    Date: 2015–04
  29. By: Joanna Malecka (Poznan University of Technology)
    Abstract: The purpose of this article is an attempt to determine the scope of Polish companies operating on the market, which could raise capital by the means of the Warsaw Stock Exchange. Therefore, a preliminary analysis is made of selected results achieved by economic entities in the years 2003-2012 as well as values and trends produced by them, with particular emphasis on the fluctuation of their number, undertaken investments, structure of revenues and expenses and financial performance, against other countries of the European Union. To illustrate the whole potential volume, the study covered all structures operating in the market: micro, small, medium and large enterprises and their results are shown on the basis of statements arising from the undeniable specificity of the entire SME sector and large companies operating in Poland.
    Keywords: SMEs; WSE; legal person; revenues and expenses; gross financial result
    JEL: O16 P44 L10 L22 L25 G10 D40
    Date: 2015–04
  30. By: Richard B. Freeman; Wei Huang
    Abstract: In the past two decades China leaped from bit player in global science and engineering (S&E) to become the world's largest source of S&E graduates and the second largest spender on R&D and second largest producer of scientific papers. As a latecomer to modern science and engineering, China trailed the US and other advanced countries in the quality of its universities and research but was improving both through the mid-2010s. This paper presents evidence that China's leap benefited greatly from the country's positive response to global opportunities to educate many of its best and brightest overseas and from the deep educational and research links it developed with the US. The findings suggest that global mobility of people and ideas allowed China to reach the scientific and technological frontier much faster and more efficiently.
    JEL: I2 I23 J0 J24 O3
    Date: 2015–04
  31. By: Jan Drahokoupil; Martin Myant
    Abstract: This article investigates the influence of the European Union (EU) on legal resources available to labour to tackle labour market challenges in central and east European countries after their accession to the EU in 2004 and 2007. Its conclusion is that the EU’s impact has been complex and contradictory, with differences between countries and time periods. It has to varying degrees encouraged social partnership and supported a model of employment relations giving high levels of legal and collective protection to employees. Since 2008, the EU has advocated reductions in protection for employees on standard contracts and a very substantial reduction in collective bargaining coverage in one case, only partially balanced by advocacy for improving the lot of those on less secure employment relationships. The EU agenda has in practice been largely irrelevant to the widespread informalization and casualization of employment relations in the region.
    Keywords: labour market, labour code, trade unions, collective bargaining, central and eastern Europe
    Date: 2015–04–13
  32. By: Ali Alichi; Jaromir Benes; Joshua Felman; Irene Feng; Charles Freedman; Douglas Laxton; Evan Tanner; David Vavra; Hou Wang
    Abstract: The paper first describes how the Czech National Bank (CNB) moved gradually from a fixed exchange rate regime to the frontiers of Inflation-Forecast Targeting. It then focuses on the CNB’s recent experience in adding the exchange rate as a complementary monetary policy tool to stimulate the economy and combat the risks of deflation when the policy interest rate is at the zero lower bound. It assesses the theoretical basis of such a policy, the communications approach used by the CNB when announcing the new framework, and the effects thus far on inflation and output.
    Keywords: Monetary policy;Czech Republic;Inflation targeting;Deflation;Exchange rate policy;Exchange markets;Foreign exchange intervention;Inflation-Forecast Targeting, Inflation Targeting, exchange rate tool, zero lower bound, forward guidance, deflation, central bank communications
    Date: 2015–04–01
  33. By: David Tingle
    Abstract: What causes ‘gas wars’ between Russia and Ukraine? In this paper I argue that contract disputes in the eastern European gas sector are specific instances of a broader set of phenomena: bargains over strategically important resource issues outside of any international framework to facilitate cooperation. Non cooperative game theory helps to shed light on the reasons we see crises emerge despite the fact that both parties would be better off reaching an agreement short of conflict. I develop a framework for crisis bargaining that departs from canonical games in one important dimension: it explicitly considers impact of bargaining practices and strategies on the negotiation process and the probability of failure. While bargaining practices are endogenous to both the preferences of the players and the structure of the game, they intervene in the causal process in substantively important ways by modifying the effect of both preferences and structure. Critically, practices embedded in earlier rounds affect practices and outcomes later on independent of the preferences of each player or the structure of the game. I use this practice-theoretic bargaining framework to develop an in-depth case study of 2008 negotiations between Russia and Ukraine. This framework helps produce a nuanced understanding of bargaining breakdown that led to the most damaging of the ‘gas wars’; the resulting explanation outperforms the standard bargaining model as well as a number of competing arguments.
    Keywords: gas ; bargaining ; Russia ; Ukraine
    JEL: F5 F51
    Date: 2015–04–09
  34. By: Berezinskaya, Olga (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper presents an analysis of the dynamics of the Russian economy based on imports in 2006 - 2013 years. The paper presents a comparative analysis of industrial output and imports of intermediate goods, investment in fixed assets and capital goods imports, retail sales and imports of consumer goods. Particular attention is paid to the sensitivity of imports of consumer, investment, intermediate goods to a change in the national currency. The results obtained are useful for a better understanding of the nature and degree of dependence on imports of Russian economy at different stages of its development, as well as areas of import substitution in the medium term. The results can be used to develop measures of monetary and economic policy aimed at solving the problem of import substitution, the drafting of legislation and regulations in this area.
    Keywords: exchange rate, dynamics of russian economy, impirt, consumer goods, investment, monetary and economic policy, substitution of import
    Date: 2015–03
  35. By: Galieva, Nadezhda (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Grishina, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Ragozina, Lyudmila (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Topoleva-Soldunova, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Rogozin, Dmitriy (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Tsatsura, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Research on the topic: "Forms of participation of civil society in the independent evaluation of the effectiveness of the social area" is devoted to the study of a new public institution in Russia - an independent evaluation of the quality of providing services by organizations and institutions in education, health, social services, culture, physical education and sports as well as the activities of socially-oriented non-profit organizations in the field of assessing the quality of social services. Comparison of Russian and foreign experience of public participation in monitoring and evaluation of these social services, as well as the analysis of public opinion and consumers about is introducing the institute, are allowing to reveal problems that arise here and make recommendations to address them, as well as give suggestions for prospective development of this institution in the country.
    Keywords: civil society, social area, independent evaluation, social services, public opinion,
    Date: 2015–04
  36. By: Voloshinskaya, Anna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Komarov, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper studies the possibilities of improving Russia's Regulatory System based on worldwide best practices. The paper analyzes the new trend in the world of legislative practice - Evidence-based policy-making and shows the main advantages and possible difficulties in the application of the new approach. As shown in study Russia already has some elements of "evidence-based policy making", although this approach has not been recognized officially yet. In particular, regulatory impact assessment (RIA) procedure (a key element of the evidence-based policy) is widespread in Russia.
    Keywords: regulatory system, evidence-based policy-making, state policy, Russia
    Date: 2015–03
  37. By: Sylvie Démurger (Université de Lyon, F-69007, France; CNRS, GATE Lyon St Etienne, 93, Chemin des Mouilles, F-69130, Ecully, France); Adeline Pelletier (The Centre for Economic Performance, London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, United Kingdom ; Instituto de Empresa – IE University, María de Molina, 31 Bis, 28006 Madrid, Spain)
    Abstract: Using survey data from Inner Mongolia, this paper explores the role of stakeholder engagement in the implementation of the Sloping Land Conversion Programme (SLCP), a payments for environmental services programme designed to restore forest in degraded land. Based on the idea that volunteerism and satisfaction with the programme’s outcome are two important components of the programme’s viability, we successively analyse the intensity of households’ participation in the programme and their reported satisfaction with its economic achievement, which we relate to their stated volunteerism. We show that households’ participation intensity in the SLCP is primarily driven by land and location characteristics, and that these findings hold true whether or not the households voluntarily enrolled in the programme. Moreover, as far as participants’ satisfaction can be interpreted as an indicator of potential long-term support for the programme, our findings also support plausible sustainability for the programme.
    Keywords: Payments for environmental services, Sloping Land Conversion Programme, Household participation, Life satisfaction, China
    JEL: Q15 Q57 Q58 O53
    Date: 2015
  38. By: Tomas Meluzin (Brno University of Technology); Marek Zinecker (Brno University of Technology)
    Abstract: The purpose of this paper is to investigate IPO developments across five CEE countries between 2003 and 2012. Using a wider range of methods and different data sets we intend to complement the previous research. Applying descriptive statistics, relevant local developments are analysed first before being compared with leading European markets (London Stock Exchange and Deutsche Börse). We also investigated the assumption that a growing market has an explanatory power for the accelerating IPO activity. For this purpose we performed a Spearman correlation analysis. The data were evaluated at the significance level of ? = 5 %. All CEE capital markets recorded strong dynamism over the observed period. All fundamental capital market parameters increase the attractiveness of individual capital markets, although their values lag behind developed European capital countries. The unambiguous leader in the region is Poland with a flourishing IPO market. Our assumption that a growing market has a positive impact on IPO activities could not be supported by empirical evidence.
    Keywords: IPO, Going Public, Trends, Financial Markets, CEE
    JEL: E44 G23 G32
    Date: 2015–04
  39. By: Leontyeva, Elena (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Narkevich, Sergey (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This work is devoted to the search for the optimal value of the international reserves of the country. In developed countries with floating exchange rate, the level of reserves in relation to GDP is usually negligible. In developing countries, the level of reserves relative to GDP are generally higher, even if the country adheres to a floating exchange rate. Russia is among the top ten countries with the largest reserves of international reserves, and in relative terms, the volume of reserves is also essential. However, it is unclear how the current volume of reserves is adequate. To answer this question in the current work analyzes the main features of international reserves, as the desired amount of international reserves depends on what functions they have to perform in the country. Then in the paper discusses existing approaches to the assessment of the adequacy of international reserves. In the final part of the review of the metric used to assess the adequacy of the level of international reserves of the Russian Federation.
    Keywords: gold, gold reserves, international reserves, management
    Date: 2015–03
  40. By: Doan, Quang Hung; Vu, Hoang Nam; Dao, Ngoc Tien
    Abstract: By combining two sets of survey data - provincial competitiveness index (PCI) from VNCI-VCCI and USAID and annual enterprise census from Vietnam General Statistics Office (GSO) for the period between 2005 and 2011, we estimate the effects of sub-national institutions measured by Provincial Competitiveness Index on firm survival in Vietnam. Our results show that sub-national institutions have a positive effect on firm’s survival in both short-run and long-run. The effect, however, diminishes over time, indicating that newly entered firms are more likely to survive.
    Keywords: Firm survival, Vietnam, Manufacturing, Provincial Competitiveness Index
    JEL: D2 L1 O17
    Date: 2013–06
  41. By: Iwona Koza (State School of Higher Education in Chelm)
    Abstract: Today, however, the concept of capital strongly focuses on intellectual capital, understood as the current or potential creative resource, or the increase in the wealth of a community. In this context, it is worth to examine the legitimacy of thesis about the expansive reality of Polish town distritcs. Over the past 10 years, in North macro-region, there has been a significant improvement of characteristics relating to intellectual capital. At the same time, gross domestic product per capita in the macro-region annually increased its value. It is, therefore, necessary to maintain and multiply the rate of change in the socio-economic sphere, based on a coherent, harmonious and innovative development strategies, evaluating intellectual potential of the communities.
    Keywords: macroregion, town districts, development, socio-economic potential
    JEL: E62 E65 G28 H70 H71 H72 H76
    Date: 2015–04
  42. By: Vladimír Hyanek (Masaryk university); Zuzana Prouzová (Masaryk university)
    Abstract: According to the theory, there are reasons to assume that non-profit institutions (NPI) behave specifically, in the way that is significantly different from the behaviour typical for both for-profit and public service providers. We focus on the research question whether NPIs, in tough times of economic crisis. And such specific “under pressure” behaviour represents the key topic of this paper. Paper investigates NPIs´ reactions to the distinctive changes of the economic environment in the 2008 – 2013 when Czech NPIs were relatively strongly affected by the crisis, although this affection probably haven’t been as heavy as in some other European countries. Non-profit institutions (NPI) are characterized by their multi-source funding when payments from end-consumers are relatively low. The most reliable data sources are Annual National Accounts and the Satellite Account of NPIs, presenting macroeconomic data. In this article we focus on structure of NPI funding resources changes in tough times of economic crisis. The paper derives from the preliminary results of our extensive research project focused on the impact of public financing on the structure of resources and production of non-profit institutions. This project utilizes a quantitative representative questionnaire survey of non-profit institutions. In this article we focus on a specific area of public social services only. The proposed paper seeks to prove that existing data sources do not capture the real/complex structure of NPI funding resources and will identify the shortcomings of the macroeconomic data and their scope.
    Keywords: non-profit institution; non-profit funding; economic crisis; system of national accounts; social services
    JEL: L31 L38
    Date: 2015–04
  43. By: Joanna Stefaniak-Kopoboru (University of Gdansk); Joanna Kuczewska (University of Gdansk)
    Abstract: The importance of services and the international trade in services is growing systematically. There are some reasons for that, especially the rapid development of IT technologies. This increase in the international trade in services is a global phenomenon, however there are some other specific issues, other than economic or technological, that might influence the trade in services in particular countries. As for the countries of the Central and Eastern Europe such a factor could be the accession to the European Union (EU). The objective of the paper is to analyse the export specialization of the Visegrad countries in the international trade in services and how it changed over seven years after the EU accession. The service sector comprises of a variety of highly heterogeneous economic activities and the diversity of services is also reflected in the international trade of particular countries. Generally the trade theories deal with trade of goods, but there are some attempts already to apply these theories for services. To find out the export specialization based on the comparative advantage in particular services, the main categories of services are analysed based on the adjusted RCA index assumptions. Analysis prepared in the paper is based on the balance of payment statistics provided by the WTO. The article is concluded by discussing the questions about the export specialization of particular countries and how it changed after the accession to the EU.
    Keywords: international trade, services, specialization, comparative advantage, Visegrad countries
    JEL: F14 F15
    Date: 2015–04
  44. By: Schnabel, Claus
    Abstract: Comparing aggregate statistics and surveying selected empirical studies, this paper shows that the characteristics and results of labour markets in eastern and western Germany have become quite similar in some respects but still differ markedly in others even 25 years after unification. Whereas no substantial differences can be detected in firms' labour demand decisions and in employees' representation via works councils or trade unions, both parts of the country are somewhat apart concerning labour supply behaviour, labour productivity, wages, and bargaining coverage, and they still exhibit substantially different rates of unemployment. These differences may reflect observable and unobservable characteristics of economic actors as well as differences in behaviour, norms, and individuals' attitudes.
    Keywords: labour market disparities,German unification,transition,Germany
    JEL: J01 J20 J30 J50 P27
    Date: 2015
  45. By: Hana Stverkova (Technical University of Ostrava); Vlasta Humlova (Technical University of Ostrava)
    Abstract: In recent years have been recording the number of sectorial clusters of firms and their links with a research and academic sphere unprecedented prosperity in the Czech Republic. The trend and popularity of clusters in regions are considered as an important source of competitive advantage of given locality. In particular SMEs can in this way overcome a certain weaknesses of this type of business and strategically use of so-called synergistic effect. Many times, it was stressed to be SMEs as the foundation of any economy, but they do not have the necessary economic force. These problems help to remove specific form alliances – the cluster. The competitiveness of regions goes hand in hand with support for cluster organizations. Clusters are perceived as modern and well-defined type groupings of entities from certain industry or field. The aim of this paper is to evaluate and assess the efficiency and competitiveness of selected cluster groups in the Moravian and Silesian region. The partial aim is a generalization of international methodologies for assessing the performance of clusters and linking this methodology with the basic principles of competitiveness evaluation. On practical example will be applied Porter's diamond combined with the EFQM model and Cluster Management Excellence methodology. The outcome of the paper will be the evaluation of cluster initiatives. There will also be proposed basic precautions that should lead to the desired performance level of international excellence cluster. For the selection of appropriate proposals will be used the multi-criteria decision analysis, to identify those measures that are currently most advantageous for the cluster.
    Keywords: cluster, competitiveness, performance, BEE model, Moravian-Silesian Region
    JEL: M1 M14 M21 L62 R10
    Date: 2015–04
  46. By: Olaf Flak (Uniwersytet Œl¹ski w Katowicach); Grzegorz Glod (Uniwersytet Ekonomiczny w Katowicach)
    Abstract: In the paper there are results of the research on competitiveness of Polish companies which was conducted within the Company Competitiveness Barometer in 2014. The paper includes a short description of the integrated company competitiveness model, their integral elements and methodology of the research. Then there are results of a competitive potential, a strategy of competition, a competitive advantage, a competitive position of examined companies. 252 companies took part in the Company Competitiveness Barometer 2014. Answers to the survey placed on let get knowledge about some sample of Polish companies in different sectors of economy. The data was also a foundation to verify some theoretical assumptions of relations between the elements of competitiveness.
    Keywords: company competitiveness; competitive advantage, competitive potential, strategy of competition, competitive positioning
    Date: 2015–04
  47. By: Hong Zhu (ECUST); Zhi-Qiang Jiang (ECUST); Sai-Ping Li (Academia Sinica); Wei-Xing Zhou (ECUST)
    Abstract: Although technical trading rules have been widely used by practitioners in financial markets, their profitability still remains controversial. We here investigate the profitability of moving average (MA) and trading range break (TRB) rules by using the Shanghai Stock Exchange Composite Index (SHCI) from May 21, 1992 through December 31, 2013 and Shenzhen Stock Exchange Composite Index (SZCI) from April 3, 1991 through December 31, 2013. The $t$-test is adopted to check whether the mean returns which are conditioned on the trading signals are significantly different from unconditioned returns and whether the mean returns conditioned on the buy signals are significantly different from the mean returns conditioned on the sell signals. We find that TRB rules outperform MA rules and short-term variable moving average (VMA) rules outperform long-term VMA rules. By applying White's Reality Check test and accounting for the data snooping effects, we find that the best trading rule outperforms the buy-and-hold strategy when transaction costs are not taken into consideration. Once transaction costs are included, trading profits will be eliminated completely. Our analysis suggests that simple trading rules like MA and TRB cannot beat the standard buy-and-hold strategy for the Chinese stock exchange indexes.
    Date: 2015–04
  48. By: International Monetary Fund
    Abstract: This 2014 Article IV Consultation highlights that the Serbian economy is facing serious challenges. GDP contracted by an estimated 2 percent in 2014 on account of continued falling domestic demand aggravated by floods, and weak economic activity in trading partners. This, together with the low imported inflation, pushed Serbia’s inflation rate below the National Bank of Serbia’s inflation tolerance band, allowing some easing of monetary policy. To support their economic policies over 2015–17, the authorities have requested the IMF’s assistance. The program aims to restore public debt sustainability, strengthen competitiveness and growth, and boost financial sector resilience.
    Keywords: Article IV consultation reports;Fiscal policy;Fiscal reforms;Monetary policy;Economic indicators;Letters of Intent;Debt sustainability analysis;Staff Reports;Press releases;Stand-by arrangement requests;Serbia;
    Date: 2015–02–26
  49. By: International Monetary Fund
    Abstract: KEY ISSUES Background: Romania has in large part reduced internal and external imbalances through sound macroeconomic policies. However, income convergence with the EU has been slow and weak public infrastructure has emerged as a bottleneck for faster growth. At the same time, Romania remains vulnerable to external shocks and the repair of balance sheets is not yet complete. Policy recommendations: Going forward, sustainable macroeconomic policies need to be combined with measures that boost the efficiency of public spending, reinvigorate delayed state-owned enterprise (SOE) reforms, and resolve crisis legacies in the financial sector. • Fiscal policy. Maintain the fiscal adjustment achievements, put public debt on a firm downward path, ensure provision of higher quality public infrastructure, and improve revenue administration and public expenditure management including through higher absorption of EU funds. • Monetary policy. Keep the easing bias as inflation has fallen below the target band and support a private credit rebound. Improve the policy framework by gradually moving to full-fledged inflation targeting. • Financial sector. Maintain the intense watch on the banking system focused on asset quality and non-performing loans reduction, further strengthen non-bank supervision, develop capital markets, and create effective insolvency frameworks. • Structural reforms. Improve financial performance and generate resources for investment of SOEs by implementing good governance principles, restructuring and increased private ownership; further deregulate energy markets. Outlook and risks: Staff expects sustained growth supported by strong domestic demand. Better EU funds absorption could boost the growth potential by about ½ percent annually. However, increased volatility in the external environment and failure to implement a much needed infrastructure upgrade present downside risks.
    Keywords: Article IV consultation reports;Fiscal policy;Fiscal reforms;Monetary policy;Bank supervision;Financial intermediation;Economic indicators;Debt sustainability analysis;Staff Reports;Press releases;Romania;
    Date: 2015–03–27
  50. By: Vashelyuk, Natalya (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Trunin, Pavel (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper examines the impact of nonstandard monetary policy measures on money market and their economy-wide effects. Four groups of nonconventional measures (quantitative easing, direct and indirect credit easing, forward guidance) and the way in which these operations were conducted in developed and emerging economies are explored. The study of nonstandard liquidity providing measures taken by the Bank of Russia revealed that the main challenges for monetary policy implementation are enhancing the transparency of monetary policy, minimizing distortional effects and appropriate risk management. We also found the evidence of the effectiveness of the credit auctions for 3-month loans secured by assets or guarantees. The regression analysis of the nonstandard liquidity easing measures showed that the increase in pace of providing the loans secured by non-marketable assets or guaranties puts a downward pressure on MosPrime rates.
    Keywords: monetary policy, money market, nonconventional measures, nonstandard liquidity, credit auctions
    Date: 2015–04
  51. By: Chunxin Jia; Yaping Wang; Wei Xiong
    Abstract: This paper uses the segmented dual-class shares issued by several dozen Chinese firms---A shares to local Chinese investors and H shares to foreign investors---to compare reactions of local and foreign investors to the same public news. We find that local investors react more strongly to earnings forecasts by local analysts, while foreign investors react more strongly to forecasts of foreign analysts. This finding highlights social trust as a force driving people with different social backgrounds to react differently to the same information.
    JEL: F3 G02 G14
    Date: 2015–04
  52. By: International Monetary Fund
    Abstract: KEY ISSUES Context. The economy is recovering steadily helped by supportive macroeconomic policies and improved market sentiment. There has been a welcome decline in vulnerabilities but debt levels remain elevated, leaving the economy prone to shocks, and medium-term growth prospects appear subdued. The government took steps to address these challenges, but the overall strategy relies on measures that increase the role of the state in the economy and shift the burden of the adjustment to specific sectors. This may deter private domestic and foreign direct investment. Policy recommendations. Policies should aim at further reducing vulnerabilities and comprehensively tackling impediments to strong, private sector-led growth. ? Fiscal policy. Adopt a growth-friendly fiscal consolidation strategy to rebuild room for policy maneuver and sustainably reduce the public debt ratio. The strategy should rely on durable expenditure retrenchment, improved efficiency of spending, and a simplification of the tax system, including a gradual elimination of distortionary sectoral taxes. ? Monetary policy. Monetary policy needs to guard against building disinflationary pressures. Adequate reserves are necessary to support financial stability. ? Financial sector. Strengthen efforts (and follow up on recently-announced commitments) to repair financial intermediation by improving the operating environment for banks. Steps should include facilitating faster cleanup of bank portfolios and reducing the tax burden on banks. The Funding for Growth Scheme should remain targeted and time bound; while the role of the state in the banking sector should be contained. ? Structural reforms. Increase policy predictability and reduce state interference in the economy to help strengthen confidence and support private investment. Adopt policies to enhance labor participation, particularly among women and older workers; improve the business environment; and enhance competitiveness.
    Keywords: Article IV consultation reports;Economic growth;Fiscal policy;Fiscal reforms;Financial intermediation;Monetary policy;Economic indicators;Debt sustainability analysis;Staff Reports;Press releases;Hungary;
    Date: 2015–04–03
  53. By: International Monetary Fund
    Abstract: This 2014 Article IV Consultation highlights that after a steady recovery during 2010–12 from the deep 2009 recession, Armenia’s growth softened in 2013 and has remained subdued in 2014. The softening of economic activity has been broad based, as growth of exports and remittances slowed, and government spending was lower than budgeted. Construction, which had declined since the 2009 crisis, was relatively flat. Growth is projected at 2.6 percent in 2014 and is expected to increase only gradually in 2015 and over the medium term in light of expectations of slow growth in key trading partners. The authorities’ policies remain geared toward maintaining macroeconomic stability and fostering sustainable and inclusive growth.
    Keywords: Article IV consultation reports;Economic growth;Fiscal policy;Pension reforms;Monetary policy;Exchange rate assessments;Economic indicators;Debt sustainability analysis;Letters of Intent;Staff Reports;Press releases;Extended arrangement reviews;Armenia;
    Date: 2015–03–11
  54. By: Bogna Janik (Poznan School of Banking); Krzysztof Kolodziejczyk (Poznan School of Banking)
    Abstract: The main objective of our study is to identify and assess chosen aspects of eco-innovativeness of the companies listed within the indices: WIG Energy, WIG Oil & Gas, WIG Basic Materials on the Warsaw Stock Exchange. The scope of this analysis encompasses selected results which facilitate achieving environmental benefits. Our investigation, however, does not cover the expenditure on eco-innovative activities as well as the instruments measuring the influence of eco-innovation. The analysis of the investigated dilemma was based mainly on two research methods, namely survey analysis and digital and documentary source analysis. The results indicate a relatively high eco-innovativeness of the companies in terms of organizational and marketing activities, and low in product and services eco-innovativeness.
    Keywords: Eco-innovation, green economy, sustainability, environment
    JEL: O13 O30 O32
    Date: 2015–04
  55. By: Anna Fornalska-Skurczynska (University of Gdansk)
    Abstract: Export is crucial for every economy. It influences the level of economic growth, balance of payment and social welfare among many others. Therefore increase in exports becomes one of the main objectives of each government. This raises the question of how to support export activity of the companies in order to ensure the expected increase in export. Approaches towards this problem differ significantly. The fact that this support is covered mainly from public funds raises the question of effectiveness of such assistance. The aim of this paper is to investigate whether to support export activity at all and if so how to do it effectively. To achieve the goal of the article the author analyzed both Polish and foreign literature, with special emphasis on the newest trade theories. Author analyzes secondary data describing factors that determine export activity, describe profile of a company becoming an exporter and investigates actual connection between offered support and increase in export activity.
    Keywords: exporter; export activity; support; heterogeneous firms
    JEL: F10 F23 F40
    Date: 2015–04
  56. By: Lukasz Siemieniuk (Uniwersytet w Bialymstoku)
    Abstract: The Academic Business Incubators are a significant investment in the development of academic entrepreneurship in Poland. They put the emphasis especially on local development. They are the driving force and a source of motivation to take up new challenges for young people. They allow ambitious people to combine their theoretical knowledge acquired during their studies with practical knowledge. Thanks to the Academic Entrepreneurship Incubators young people become professionals in their actions. Their acquired skills, knowledge, physical, moral and mental characteristics are an excellent basis for the development of their business.The aim of the paper is to discuss the essence of academic entrepreneurship and present issues of the Academic Business Incubators functioning as an institutional form of academic entrepreneurship development in Poland.
    Keywords: Business Incubators; academic entrepreneurship; Poland
    JEL: D01
    Date: 2015–04
  57. By: International Monetary Fund
    Abstract: This 2014 Article IV Consultation highlights that Slovenia is recovering from a deep crisis. Growth is estimated to have reached about 2.6 percent in 2014, supported by strong exports and EU-funded public investment. The financial sector has stabilized following recapitalization of the major banks by the state. Government bonds yields have declined markedly. Growth is projected at about 1.9 and 1.7 percent in 2015 and 2016, respectively, with potential growth well below precrisis levels. Executive Directors welcomed the fact that Slovenia’s economy is recovering and commended the authorities for their efforts to mend the banking system, facilitate corporate debt restructuring, and consolidate the public finances.
    Keywords: Article IV consultation reports;Fiscal policy;Corporate sector;Fiscal reforms;Banking sector;Bank supervision;Economic indicators;Debt sustainability analysis;Staff Reports;Press releases;Slovenia;
    Date: 2015–02–19
  58. By: Katarzyna Kubiszewska (Politechnika Gdañska, Wydzia³ Zarz¹dzania i Ekonomii)
    Abstract: In a rapidly changing economic environment companies deepen their cooperation, which entails in all sectors of the economy. The progressive increase in market concentration, especially in the banking sector, has a purpose, which is to increase the benefits from the operation of various enterprises, e.g. credit institutions. The purpose of this article is to compare the tendencies within market structures in various countries which origin from similar political systems and which have got experience in transformation of banking sectors. The research concerns the Baltic and Western Balkan states. The study revealed a distinct change in the growth rate of market concentration and the number of banks. The article is divided into two main parts. The first part consists of an analysis of the literature on the concentration of the banking market. It presents a discussion on the effects of changes in market structures, leading to an increase in its consolidation. The second part is devoted to empirical research in relation to changes in the degree of concentration of the banking sectors (using concentration ratios) and the number of banking institutions operating there. These sectors are divided into two groups: selected member states of the European Union (Lithuania, Latvia, Estonia) and the Western Balkan countries (Croatia – new member of the EU, Serbia, Bosnia and Herzegovina). In this section there are detailed descriptions of the banking markets’ structures.
    Keywords: banking market consolidation, banking market concentration, the Baltic States, the Western Balkan states
    JEL: G10 G20 G21
    Date: 2015–04
  59. By: Edzhibiy, Tatyana; Degtyareva, Svetlana; Demchenko, Svetlana
    Abstract: The authors analyze the state of the scope of the consumption of goods and services in the Krasnoyarsk region. Using the method of least squares are designed Keynesian consumption function of the population of the Krasnoyarsk Territory
    Keywords: экономика региона, сфера потребления товаров и услуг, кейнсианские функции потребления, экономическая динамика
    JEL: O14 P47
    Date: 2014–04–01
  60. By: Soukiazis, Soukiazis; Antunes, Micaela; Stoian, Andreea
    Abstract: This article examines the tendencies of economic growth in Romania after its transition to the market economy by employing a balance of payments approach and an extended growth model that takes into account both internal and external imbalances. The first approach is linked to the well known balance of payments constrained growth hypothesis, while the second is an extension of that model that encompasses not only external imbalances emerging from trade but also internal imbalances related to public deficit and debt, among other factors. Both approaches show that the Romanian economy is balance of payments constrained and that measures must be taken to increase the country’s competitiveness. The scenario analysis provided by the second approach reveals that the Romanian economy must improve its external competitiveness in order to achieve higher growth rates.
    Keywords: balance-of-payments equilibrium growth rate, price and income elasticities of foreign trade, internal and external imbalances, 2SLS and 3SLS regressions.
    JEL: C13 E12 F43 O24
    Date: 2015–01
  61. By: Merike Kukk (Tallinn University of Technology)
    Abstract: The paper investigates the extent to which household indebtedness suppressed consumption during the economic downturn in 2008-2009. The paper uses a unique quarterly panel dataset containing financial information on over 100,000 individuals. The dataset covers the period 2005-2011, when there were large changes in credit volumes, income and consumption in Estonia, a new EU member country. The estimations show that indebtedness measured by the debt-to-income ratio and the debt service ratio hampers consumption over the whole business cycle. The negative impact of the debt service ratio is, however, substantially stronger during the recession than in the pre-crisis and post-crisis periods, while the negative effect of the debt-to-income ratio is relatively stable over the sample period. The findings suggest that household indebtedness is amplifying the recession and the debt repayment burden indicates the mechanism which is at work.
    Keywords: household indebtedness, debt repayment burden, debt-to-income ratio, amplification effect, recession.
    JEL: E21 D14 E32
    Date: 2015–04

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