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on Transition Economics |
| By: | Djuric, Ivan; Götz, Linde; Glauben, Thomas |
| Abstract: | In this paper we analyze the impact of the Russian ban on import of pig meat originating in the EU on the domestic pig meat price developments in Russia. We use a regime-switching price transmission model in order to identify possible changes in the long-run equilibrium between the pig meat prices of Russia and its main non-EU trading partners. Our results indicate the reduction of transaction costs in pig meat trade between Russia and its main non-EU trading partners, followed by the increase in transmission of price changes in the long-run. Though, our results indicate completely opposite results concerning domestic price relations between wholesale and end consumer pig meat prices in Russia. Overall, faced with the scarcity of pig meat on the domestic market, Russian consumers bear the biggest burden from the ban in the medium term by being faced with the significant increase in end consumer pig meat prices. |
| Keywords: | import ban, pig meat, price transmission, Russia, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, International Relations/Trade, C22, I31, P22, Q11, Q17, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205330&r=tra |
| By: | Dai, Jiawu; Li, Xun; Wang, Xiuqing; Yu, Qiushuo; Mao, Xiaojie |
| Abstract: | Pork market, as one of the most important food markets in China, is frequently exposed to food scare events such as Porcine Reproductive & Respiratory Syndrome (PRRS), Swine Influenza (SI), and Classical Swine Fever (CSF). This research first investigates the impact of food scare incidents on pork market in China with a theoretical framework, proving that if there is no market power, farm-retail price spread should be a function of marketing cost only. Using monthly data of pork retail price and pork producer price from 2001 to 2014, empirical analysis provides evidence that food scare events significantly influence both pork retail price and farm-retail price spread, indicating the existence of market power in Chinese pork market as well as the differential impact of food scares on retailers and producers. |
| Keywords: | food scares, market power, price spread, Chinese pork market, Agricultural and Food Policy, International Development, Livestock Production/Industries, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205121&r=tra |
| By: | Ichiro Iwasaki (Institute of Economic Research, Hitotsubashi University) |
| Abstract: | In this paper, using panel data of industrial firms obtained from unique questionnaire surveys conducted all over the Russian Federation in 2005 and 2009, we trace structural change in corporate governance systems before and after the global financial crisis and empirically examine their determinants. We found that, during this period, Russian firms improved the quality of corporate governance across the entire industrial sector. Furthermore, our empirical evidence strongly supports a hypothesis regarding the relationship between outside ownership and board composition as well as that concerning the impact of outside directorship on the audit system. Meanwhile, our estimation results also indicate the possibility that the global financial crisis has brought about asymmetric changes, in the sense that it enhanced the independence of corporate boards, while it deteriorated the independence of the audit system, thus, partially rejecting our prediction with respect to the disciplinary effect of the crisis on the corporate governance system. |
| Keywords: | global financial crisis, ownership change, evolution of corporate governance, board composition, audit system, Russia |
| JEL: | D22 G01 G34 M42 P34 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:925&r=tra |
| By: | Liu, Xianglin; Tang, Yingmei; Miranda, Mario J. |
| Abstract: | Although numerous index insurance pilot programs have been conducted in China, little is known about Chinese farmers’ willingness to pay for index insurance. By using a field survey of small farm households in China’s Heilongjiang Province, which suffered a large flood in the summer of 2013, this paper explores farmers’ willingness to pay (WTP) for a hypothetical rainfall index insurance product, with a special interest in whether farmers affected by the flood are willing to pay more than those where not. |
| Keywords: | index insurance, willingness-to-pay, natural experiment, Risk and Uncertainty, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205374&r=tra |
| By: | Zheng, Zhihao; Henneberry, Shida R.; Zhao, Yinyu; Gao, Ying |
| Abstract: | A complete demand system is estimated separately for urban and rural residents using a two-stage AIDS-QUAIDS model and pooled provincial and time-series data from 2000 to 2010. The estimated models are then used to project China’s rural and urban food demand in the future. Results suggest that with the continued rise in per capita income and urbanization rate, the budget shares of food grains and vegetables are expected to decrease while the shares of foods with animal origin and other high-valued foods are expected to rise. Moreover, urban residents will dominate the food demand in China. |
| Keywords: | income growth in China, food demand, urbanization, urban and rural residents, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, C33, D12, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205105&r=tra |
| By: | Sierz Naurodski; Uladzimir Valetka |
| Abstract: | Eurasian Economic Union, an ambitious project intended to benefit the countries in the post-soviet zone, evokes questions about its future. Is pulling together regional cooperation and tightening its relationship with Russia beneficial to Belarus in the long run? Having analyzed the recent trends in trade, labor and capital flows, Sierž Naurodski and Uladzimir Valetka shed light on the highly questionable nature of potential benefits the Union could bring to Belarussian economy within its current macroeconomic and institutional framework |
| Keywords: | Trade, economic integration and globalization, Eastern Europe, Caucasus and Central Asia |
| JEL: | F10 F15 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:sec:bresem:0138&r=tra |
| By: | Imamverdiyev, Nizami; Anders, Sven; Glauben, Thomas; Perekhozhuk, Oleksandr; Prehn, Sören |
| Abstract: | The objective of this study is to analyze the trade duration patterns of Kazakhstan’s wheat exports between 1995 and 2012. Using 4-digit HS code trade flow data we employ a discrete-time duration framework and probit models explicitly testing for unobserved heterogeneity across bilateral trade relationships. The empirical results indicate that trade cost, local production factors, price competitiveness and experience significantly explain the short duration of Kazakhstan’s wheat exports. The results imply that the stability and thus sustainability of Kazakhstan’s wheat exports critically depend on the market share of Russian wheat exports, abolishing restrictive export policies, and maintaining good trade relationships with traditional trading partners, especially post-Soviet Union economies. |
| Keywords: | Wheat exports, trade duration analysis, probit, Kazakhstan, Agricultural and Food Policy, International Relations/Trade, C41, Q17, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205391&r=tra |
| By: | Seidu, Ayuba; Onel, Gulcan |
| Abstract: | The overarching consensus in the applied migration literature is that international migration is typically used to transition out of agricultural sector by rural households in transition economies. In this paper, using data on rural Albanian households, we examine whether international migration of some household members affects the household’s nonfarm activity choices and earnings generated from these activities. In addition, we test whether remittance income received from migrant household members have an indirect effect on households’ agricultural production. We find no apparent relationship between nonfarm activity choice and the number of international migrants in the farm household. However, we find that remittance income is positively and significantly related to households’ propensity to reallocate farm labor to nonfarm self-employment activities, resulting in higher income from non-farm self-employment. In addition, remittance income affects farm income in a positive and significant way. This suggests that previous studies likely underestimated the overall impact of international migration on agricultural production in rural Albania, as they usually ignored the additional remittance income effect. Overall, our empirical findings support the basic tenets of rural income diversification, where the farm household has a diversified portfolio of income-generating activities, in addition to farming. The results suggest that international migration facilitates income diversification among Albanian farm households rather than their exit out of agriculture. |
| Keywords: | international migration, remittances, nonfarm income, transition economies, rural Albania., Consumer/Household Economics, International Development, Labor and Human Capital, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205517&r=tra |
| By: | Kulyk, Iryna; Herzfeld, Thomas |
| Abstract: | According to prospects of international organisations like OECD and FAO, Ukraine will be one of the important suppliers of agricultural products on the world market in the coming decade. Thus, Ukrainian agricultural production and exports are important elements in sustaining global food security. However, the country threatens global food security as well as its own agricultural development when applying grain export restrictions, as happened several times in recent years. Therefore, any impediments to grain trade in the country should be carefully inspected. In this paper we analyse recent developments of Ukrainian agricultural policy influencing grain trade. We show that any export restriction brings large welfare losses compared to a free trade situation. We support our claim by a comparative analysis of the different export policies applied by the Ukrainian government on the domestic wheat market between 2006 and 2014. Additionally, we suggest and discuss alternative policy responses to realise the policy goal of domestic food security. As the policies applied, export tax, export quota and tax reimbursement, cannot be compared directly we quantify the tax equivalent of each trade policy measure. Under a set of specific assumptions the tax equivalent can be used to compare the effects of policies theoretically and empirically. Our findings go along with theory and show that export quotas in 2006 and in 2010 had a more restrictive effect on export than export taxes in 2011. Effects of non-reimbursement of VAT are very close to the effects of export tax in 2011 (at the level of 9%), mainly because most of the time these two measures were implemented simultaneously. We also calculated tariff equivalent of VAT non-reimbursement excluding the period of export taxes. Based on these results, the measure corresponds to a slight decline of the tariff equivalent in absolute terms. As an alternative policy option for the Ukrainian government to respond more efficiently to increasing world market prices in the future it is advised to use consumer-oriented measures for the most vulnerable groups of people instead of distorting market mechanisms. |
| Keywords: | export restrictions, non-tariff barriers, Ukraine, wheat trade, Agribusiness, |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi15:206218&r=tra |
| By: | Vyrost, Tomas |
| Abstract: | In this working paper, the topic of country vs. industry effects in stock returns is explored. An approach based on stock market network modeling is used to assess both effects. Three different network subgraphs are employed: Minimum Spanning Trees, Planar Maximal Filtered Graphs and Threshold Graphs. By constructing the networks for the whole sample covering 2003 – 2012, significance of country and industry effects are shown both by visual inspection, as well as simulation and fitting of Exponential Random Graph Models. The relative importance of country/industry effects are assessed using the indicators “Relative Country Links” and “Relative Industry Links”, in a rolling windows analysis covering the sample period, indicating dominance of country effects. |
| Keywords: | stock market networks, emerging and frontier markets, portfolio diversification |
| JEL: | G01 L14 |
| Date: | 2015–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65775&r=tra |