|
on Transition Economics |
| By: | Vladimir Gimpelson (National Research University Higher School of Economics); Anna Lukiyanova (National Research University Higher School of Economics); Anna Sharunina (National Research University Higher School of Economics) |
| Abstract: | This paper explores the public-private wage gap in the Russian economy along the whole wage distribution. Using the RLM-HSE data set, it examines how gaps at various points of the distribution changed from 2000-2014 and presents decompositions of the gaps into components explained by differences in characteristics and differences in returns. The results suggest that the gap persists over time and varies along the wage distribution. During the 2000s low-skilled public sector workers had smaller pay gaps than higher-skilled workers had. Governmental policy interventions and the economic crisis of 2008-2009 contributed to the narrowing of the gap and its partial equalization along the distribution. A new set of policy changes associated with the May 2012 Presidential Decrees strengthened these tendencies but did not eliminate the gaps |
| Keywords: | public sector, wage, public-private wage gap, quantile regression, RLMS-HSE, Russia. |
| JEL: | J31 J45 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:104/ec/2015&r=tra |
| By: | Ivlevs, Artjoms (University of the West of England, Bristol); Veliziotis, Michail (University of the West of England, Bristol) |
| Abstract: | Over the last two decades, trade union membership in Central and Eastern Europe has been in continuous decline and there is a common perception that trade unions in the region are weak. However, little is known about the actual relevance of trade unions for individual workers in the post-socialist world. We explore the role that trade unions played in protecting their members from the negative effects of the global economic crisis. Using data for twenty one post-socialist countries from the Life in Transition-2 survey, we find that trade union members were less likely than similar non-members to lose their jobs during the crisis. This beneficial effect of trade union membership was more pronounced in countries which were hit by the crisis harder. At the same time, union members were more likely to experience a wage reduction, suggesting that unions were engaged in concession bargaining. Overall, our results challenge the common view that trade unions in the post-socialist countries are weak and irrelevant. |
| Keywords: | trade unions, Central and Eastern Europe, post-socialist, crisis, concession bargaining |
| JEL: | J51 P2 P3 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9466&r=tra |
| By: | Tomas Havranek (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic; Czech National Bank); Zuzana Irsova; Jitka Lesanovska (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | An important component of monetary policy transmission is the pass-through from financial market interest rates, directly influenced or targeted by central banks, to the rates that banks charge firms and households. Yet the available evidence on the strength and speed of the pass-through is mixed and varies across countries, time periods, and even individual banks. We examine the pass-through mechanism using a unique data set of Czech loan and deposit products and focus on bank-level determinants of pricing policies, especially cost efficiency, which we estimate employing both stochastic frontier and data envelopment analysis. Our main results are threefold: First, the long-term pass-through was close to complete for most products before the financial crisis, but has weakened considerably afterward. Second, banks that provide high rates for deposits usually charge high loan markups. Third, cost-efficient banks tend to delay responses to changes in the market rate, smoothing loan rates for their clie nts. |
| Keywords: | Monetary transmission, cost efficiency, bank pricing policies, stochastic frontier analysis, data envelopment analysis |
| JEL: | E43 E58 G21 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2015_24&r=tra |
| By: | Bian, Wei; Ye, Chunhui; Zhao, Yunin |
| Abstract: | With the increasing transfer of rural labor, the problems of the left-behind children attract extensive attention. This paper is based on a large sample random survey in Jiangxi Province and Anhui Province’s primary and high school in China, researching students and their guardians, head teachers, headmasters. The research applied a combination of quantitative and qualitative methods to study on the effect of parents’ migrant working on the education of the rural left-behind children in details. The study found that the effect changes with learning stages and subjects. The supervision of parents and teachers is helpful to the left-behind children at primary school stage, while it cannot show significant help to those at junior high school stage, which may even have the opposite effect. The number of siblings and living on campus do not have a negative effect on children’s study, which even have a positive effect in some respects. Children’s own prospect of their education have a significant positive effect on their learning performance, while parents’ prospect only have a positive effect on learning performance of the left-behind children at junior high school stage. |
| Keywords: | left-behind children, education, migrant working, Community/Rural/Urban Development, Consumer/Household Economics, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211339&r=tra |
| By: | Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw); Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Abstract The analysis of the international migration flows, their determinants and the impact on host countries' labour markets is of great interest in the context of current European developments. This paper analyses the role of EU labour market mobility, specifically cross-border mobility by migrants, in labour market adjustments and, vice versa, how labour market developments across the EU in terms of relative wage differences, differences in activity rates, in labour productivity differentials and in human capital structures affect labour mobility. The analysis is carried out in the context of estimating a panel Vector Auto Regressive (pVAR) model involving bilateral net migration flows and cross-country differences in the above variables. It is estimated for the period 2000 to 2012, thus capturing also the two waves of accession of Central and Eastern European new Member States (NMS). The estimations are performed for cross-border mobility patterns for the EU as a whole, as well as for the migration patterns between NMS and OMS, thus analysing the changes which the integration of new Member States may have caused to labour market and mobility dynamics in the European Union. |
| Keywords: | labour mobility, determinants of migration flows, European Union, new Member States, econometric analysis of labour mobility, panel VAR model, push and pull factors of migration |
| JEL: | F22 J61 J62 J63 R23 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:120&r=tra |
| By: | Csaki, Csaba; Jambor, Attila |
| Abstract: | 10 years have passed since the 2004 accession round to the European Union. The tenth anniversary provides a good opportunity for stocktaking and assessing the developments of the New Member States in light of the latest data available. The aim of this paper is identify the winners and losers of accession in the agri-food sector of the New Member States by ranking individual country performances. Results suggest Poland, Estonia and Lithuania to be winners of EU accession regarding agricultural, agri-environmental and rural performance, while Slovakia, Latvia and Hungary appear to be the losers in this regard. |
| Keywords: | 10 years have passed since the 2004 accession round to the European Union. The tenth anniversary provides a good opportunity for stocktaking and assessing the developments of the New Member States in light of the latest data available. The aim of this paper is identify the winners and losers of accession in the agri-food sector of the New Member States by ranking individual country performances. Results suggest Poland, Estonia and Lithuania to be winners of EU accession regarding agricultural, agri-environmental and rural performance, while Slovakia, Latvia and Hungary appear to be the losers in this regard., Agribusiness, Food Consumption/Nutrition/Food Safety, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211552&r=tra |
| By: | Gundars Kulikovskis (Independent Expert) |
| Abstract: | In the frame of the Stairway to Excellence project, complex country analysis was performed for the EU MS that joined the EU since 2004, with the objective to assess and corroborate all the qualitative and quantitative data in drawing national/regional FP7 participation patterns, understand the push–pull factors for FP7/H2020 participation and the factors affecting the capacity to absorb cohesion policy funds. This report articulates analysis on selected aspects and country-tailored policy suggestions aiming to tackle the weaknesses identified in the analysis. The report complements the complex qualitative/ quantitative analysis performed by the IPTS/KfG/S2E team. In order to avoid duplication and cover all the elements required for a sound analysis, the report builds on analytical framework developed by IPTS. |
| Keywords: | Research and Innovation, EU Framework Programme for Research and Innovation, Horizon 2020, Cohesion policy, Structural Funds, SF, ERDF, European Regional Development Fund, European Structural & Investment Funds, ESIF, quality of governance, evaluation and monitoring mechanisms. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97530&r=tra |
| By: | Keting Shen; Jing Wang; John Whalley |
| Abstract: | Popular literature suggests a rapid narrowing of the technology gap between China and the U.S. based on large percentage increases in Chinese patent applications, and equally large increases in college registrants and completed PhDs (especially in sciences) in China in recent years. Little literature attempts to measure the technology gap directly using estimates of country aggregate technologies. This gap is usually thought to be smaller than differences in GDP per capita since the later reflect both differing factor endowments and technology parameters. This paper assesses changes in China’s technology gaps both with the U.S. and India between 1979 and 2008, comparing the technology level of these economies using a CES production framework in which the technology gap is reflected in the change of technology parameters. Our measure is related to but differs from the Malmquist index. We determine the parameter values for country technology by using calibration procedures. Our calculations suggest that the technology gap between China and the U.S. is significantly larger than that between India and the U.S. for the period before 2008. The pairwise gaps between the U.S. and China, and the U.S. and India remain large while narrowing at a slower rate than GDP per worker. Although China has a higher growth rate of total factor productivity than India over the period, the bilateral technology gap between China and India is still in India’s favor. India had higher income per worker than China in the 1970’s, and China’s much more rapid physical and human capital accumulation has allowed China to move ahead, but a bilateral technology gap remains. |
| JEL: | O41 O47 O57 P5 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21657&r=tra |
| By: | Yao Amber Li (Department of Economics, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); Albert Park (Department of Economics, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); Chen Zhao (Department of Economics, Hong Kong University of Science and Technology) |
| Abstract: | This paper explores how the distribution of credit supply within an industry affects that industry's export intensity (the export-to-sales ratio) and export propensity (the ratio of the number of exporters to the total number of firms). Using a heterogeneous firm trade model, we derive two opposing hypotheses: for industries with relatively low (high) foreign market penetration costs, a more dispersed credit distribution decreases (increases) the industry's export intensity and the number of exporters. The empirical results using Chinese firm-level data and bank loan data support both hypotheses and confirm the significant heterogeneous impacts of credit distribution on exports across industries. |
| Keywords: | credit constraints, credit supply, financial development, credit distribution, heterogeneous firms, international trade, liquidity |
| JEL: | F14 G20 L60 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hku:wpaper:201531&r=tra |
| By: | Djuric, Ivan; Gotz, 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: | EU, import ban, pig meat, price transmission, Russia, Food Consumption/Nutrition/Food Safety, International Relations/Trade, C22, P22, Q17, Q18., |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211579&r=tra |
| By: | Fernald , John (BOFIT); Hsu , Eric (BOFIT); Spiegel , Mark M. (BOFIT) |
| Abstract: | How reliable are China’s GDP and other data? We address this question by using trading partner exports to China as an independent measure of its economic activity from 2000–2014. We find that the information content of Chinese GDP improves markedly after 2008.We also consider a number of plausible, non-GDP indicators of economic activity that have been identified as alternative Chinese output measures. We find that activity factors based on the first principal component of sets of indicators are substantially more informative than GDP alone. The index that best matches activity in-sample uses four indicators: electricity, rail freight, an index of raw materials supply, and retail sales. Adding GDP to this group only modestly improves in-sample performance. Moreover, out of sample, a single activity factor without GDP proves the most reliable measure of economic activity. |
| Keywords: | China; GDP; principal components; structural break; forecasting |
| JEL: | C53 C82 E20 F17 |
| Date: | 2015–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2015_029&r=tra |
| By: | Hou, Lingling; Huang, Jikun; Wang, Jinxia |
| Abstract: | Farmers’ perceptions of the local climate reflect their awareness of climate change 28 and may affect their adaptation behaviors. However, current literature suffers a 29 knowledge gap on understanding farmers’ perceptions of climate change. This study 30 examines farmers’ perceptions of annual mean temperature, the consistency of these 31 perceptions with meteorological record data, and what influences this consistency. 32 The study found that more than 70% of farmers in China perceived an increasing 33 trend of annual mean temperature over the past 10 years, while only 18% of farmers 34 correctly perceived a decreasing trend, which is consistent with the meteorological 35 record data. Econometric analysis shows that social networks can improve a farmer’s 36 ability to correctly perceive temperature changes. Additionally, those with a larger 37 farm size are more likely to be able to consistently perceive temperature. This paper 38 concludes with several policy and research implications. |
| Keywords: | social networks, farm assets, perception, consistency, climate change, China, Agricultural and Food Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211742&r=tra |
| By: | Fang, Tony (Memorial University of Newfoundland); Gunderson, Morley (University of Toronto); Lin, Carl (Bucknell University) |
| Abstract: | Job search procedures are a form of human capital investment in that they involve current investments to enhance future returns, analogous to human capital investments in areas such as education, training and mobility that yield future returns. While the theoretical and empirical literature on job search is extensive, most of it involves developed countries. There is less on developing countries and very little on China involving migrant workers in spite of their growing practical and policy importance and the fact that they are constantly engaging in job search. This paper examines the use and impact of job search procedures used by migrant workers in China by taking advantage of a rich data set on migrant workers that has information on their job search procedure as well as a wide array of other personal and human capital characteristics. Our OLS estimates indicate that there is no effect on earnings of using informal versus formal job search procedures for migrant workers in China. However, our IV results suggest that the OLS estimates are subject to severe selection bias from the fact that the choice of job search procedure is endogenous, associated with unobservable factors that affect the choice of informal versus formal procedures and that affect the earnings outcome. Our three different IV estimates designed to deal with this bias indicate that informal procedures (various aspects of family and friends) are associated with earnings that are 33 to 43 percent below the uses of more formal procedures. The decomposition results indicate that the most important variable contributing to pay advantage of those who use formal as opposed to informal procedures is education. In sum, our results suggest that policies to encourage or facilitate migrant workers using more formal job search procedures and reducing barriers that compel them to rely on informal procedures can yield better job matches with higher earnings. |
| Keywords: | job search methods, migrant workers, labour market outcomes, China |
| JEL: | J31 J61 J64 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9438&r=tra |
| By: | Chen, Huang |
| Abstract: | This paper attempts to explain why famers exhibit pessimism in purchasing Weather Index Insurance (WII). Three sources of the pessimism are identified: a) if insurers overestimate or farmers underestimate the possibility of future risks, the farmers tend to buy less WII coverage; b) the lower the quality of the index is, the less coverage the famers will purchase; c) the more their productive characteristics deviate from population mean, the higher basis risk they will have, resulting less coverage to be chosen. The second half of this paper empirically compares three kinds of weather indices in measuring long-run yield variation in China’s 26 provinces during 1951 – 2002, and justifies the theoretical findings from releasing the Quality Assumption by simulating hypothesized operations of WII in the last half century in China. The econometric and simulation results corroborate the critical role of the index quality in measuring yield variation and explain the pessimism. |
| Keywords: | Weather index insurance, Expectation, Index quality, Basis risk, Pessimism, China, Agricultural Finance, Farm Management, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211461&r=tra |
| By: | Comunale , Mariarosaria (BOFIT) |
| Abstract: | Using the IMF CGER methodology, we make an assessment of the current account and price competitiveness of the Central Eastern European Countries (CEEC) that joined the EU between 2004 and 2014. We present results for the “Macroeconomic Balance (MB)” approach, which provides a measure of current account equilibrium based on its determinants together with mis-alignments in real effective exchange rates. We believe that a more refined analysis of the mis-alignments may useful for the Macroeconomic Imbalance Procedure (MIP). This is especially the case for these countries, which have gone through a transition phase and boom/bust periods since their independence. Because such a history may have influenced a country’s performance, any evaluation must take account of each country’s particular characteristics. We use a panel setup of 11 EU new member states (incl. Croatia) for the period 1994-2012 in static and dy-namic frameworks, also controlling for the presence of cross-sectional dependence and check-ing specifically for the role of exchange rate regimes, capital flows and global factors. <p> We find that the estimated coefficients of the determinants meet with expectations. Moreover, the foreign capital flows, the oil balance, and relative output growth seem to play a crucial role in explaining the current account balance. Some global factors such as shocks in oil prices or supply might have played a role in worsening the current account balances of the CEECs. Having a pegged exchange rate regime (or being part of the euro zone) affects the current account positively. The real effective exchange rates behave in accord with the current account gaps, which clearly display cyclical behaviour. The CAs and REERs come close to equilibria in 2012 in most of the countries andthe rebalancing is completed for some countries that were less misaligned in the past, such as Poland and Czech Republic, but also for Lithuania. When Foreign Direct Investment (FDI) is introduced as a determinant for these countries, the misalignments are larger in the boom periods (positive misalignments) whereas the negative misalignments are smaller in magnitude. |
| Keywords: | real effective exchange rate; Central Eastern European Countries; EU new member states; fundamental effective exchange rate; current account |
| JEL: | C23 F31 F32 |
| Date: | 2015–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofitp:2015_028&r=tra |
| By: | Oleg V. Leshukov (National Research University Higher School of Economics.); Daria P. Platonova (National Research University Higher School of Economics.); Dmitry S. Semyonov (National Research University Higher School of Economics.) |
| Abstract: | This paper explores the relationship between the degree of competition between higher education institutions (HEIs) and the efficiency of regional higher education systems using evidence from the Russian Federation. The choice of the regional system of higher education as a unit of analysis is explained by features of the Russian system of higher education, especially by “closeness” in the borders of regions. Using data envelopment analysis (DEA) we investigate the efficiency of higher education systems in the regions and compare the results with the extent of higher education competition within them. The analysis finds that within the overall sample the correlation is positive, but not striking. However the extent of competition correlates with the efficiency of regional sets of HEIs more in less socio-economically developed regions. |
| Keywords: | higher education, efficiency, competition, regions, Russia |
| JEL: | I23 I28 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:29edu2015&r=tra |
| By: | Georgiev, Nenad; Gjosevski, Dragon; Simonovska, Ana; Nacka, Marina |
| Abstract: | Building a recognizable brand for the Macedonian wine and higher values in intellectual property assets is the core for strengthening the wineries’ international market position. This paper attempts to identify Macedonian wineries’ opportunities to profit under competitive market conditions. Therefore, we first interpret evidence on determinants of their profitability, then we present their commitment towards intellectual property rights, and finally we describe a successful case of a winery that has a recognized brand internationally. The results indicated that wineries are not attractive investments if intensive marketing strategies in creation of strong brand equity are not strongly supported. The use of innovations, creativity and protection of intellectual property rights, could be successful strategy in increasing the opportunities to profit. The defined winery as distinctive case may be used as a guideline to reinforce wineries’ possibilities to follow future market signals, while struggling to adjust to the imposed market oriented production. |
| Keywords: | profitability strategy, marketing strategy, intellectual property rights, brand equity, competitive position., Marketing, Q13, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211650&r=tra |
| By: | K. Sudhir (Cowles Foundation & School of Management, Yale University); Ishani Tewari (School of Management, Yale University) |
| Abstract: | We test for the long-term impact of experiencing “prosperity in youth” (PIY) on non-traditional category consumption. Using unique twenty-year panel data of individuals from nine Chinese provinces with varying levels of per-capita GDP and rates of per-capita GDP growth, we find robust evidence for the PIY effect. We find both a direct effect of one’s own prosperity and an indirect effect of the prosperity of one’s province during youth on long-term consumption. In particular, the indirect PIY effect is driven more strongly by individuals with low incomes during youth — suggesting that norms and aspirations created by the consumption of non-traditional categories by the rich during one’s youth have significant impact on long-term consumption — almost the same magnitude as the direct effect. The analysis also highlights the importance of separating cohort effects from life cycle effects for taste based products. We highlight the marketing implications for non-traditional categories in emerging markets. |
| Keywords: | Cohort effects, Lifecycle effects, Emerging markets, China, Prosperity in youth, Impressionable years hypothesis, Long-term effects |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2025&r=tra |
| By: | Gafarova, Gulmira; Perekhozhuk, Oleksandr; Glauben, Thomas |
| Abstract: | Azerbaijan is a net-importer of wheat with average self-sufficiency ratio of 55%. In order to meet the domestic needs completely, Azerbaijan imports wheat mainly from Kazakhstan and Russia. The objective of this study is to investigate the extent of market power exercised by the Kazakh and Russian exporters in Azerbaijani wheat import market. Toward this aim, we apply the Residual Demand Elasticity approach, and fit the model with monthly time-series data covering the period from January 2004 to December 2013. Total export quantity of an exporting country and population of an importing country are selected as excluded variables in this analysis. The empirical results demonstrate that the Russian exporters exercise market power in Azerbaijani wheat market, but the Kazakh exporters face perfect competition. Moreover, we argue that the Ukrainian exporters are able to constraint both Kazakh and Russian exporters’ market powers in Azerbaijani wheat market. |
| Keywords: | agricultural trade, market power, residual demand elasticity, wheat market, Crop Production/Industries, L13, Q11, Q17, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211642&r=tra |
| By: | Pavla Žížalová (Independent Expert) |
| Abstract: | In the frame of the Stairway to Excellence project, complex country analysis was performed for the EU MS that joined the EU since 2004, with the objective to assess and corroborate all the qualitative and quantitative data in drawing national/regional FP7 participation patterns, understand the push–pull factors for FP7/H2020 participation and the factors affecting the capacity to absorb cohesion policy funds. This report articulates analysis on selected aspects and country-tailored policy suggestions aiming to tackle the weaknesses identified in the analysis. The report complements the complex qualitative/ quantitative analysis performed by the IPTS/KfG/S2E team. In order to avoid duplication and cover all the elements required for a sound analysis, the report builds on analytical framework developed by IPTS. |
| Keywords: | Research and Innovation, EU Framework Programme for Research and Innovation, Horizon 2020, Cohesion policy, Structural Funds, SF, ERDF, European Regional Development Fund, European Structural & Investment Funds, ESIF, quality of governance, evaluation and monitoring mechanisms. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97217&r=tra |
| By: | Hou, Jianyun; Huo, Xuexi |
| Abstract: | This article estimates the impact of transaction costs on smallholders’ market participation and integration, using the data collected in two apple production belts of China. Based on an innovative measurement of the transaction costs, and a disaggregated analysis on sales costs, information costs, negotiation costs and monitoring costs. The study shows that levels of the farmers’ market participation are mainly determined by the proportional transaction costs and price, while their market integration depends on the fixed transaction costs and price. This suggests that, in order to lower the transaction costs and enable specialization and market participation, it is necessary to invest and construct the farming infrastructure, update the rural information system, improve the structure of farmer households, and subsidize the cooperative organizations. |
| Keywords: | market participation, market integration, transaction costs, China apple producers., Crop Production/Industries, Marketing, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211746&r=tra |
| By: | Rizoc, Marian; Cupak, Andrej; Pokrivcak, Jan |
| Abstract: | We investigate the food security situation of Slovak households in terms of both access to food and quality of the diet consumed by estimating food demand system and diet diversity demand models using household budget survey data over the period 2004-2010. In most samples demand for meat and fish and fruits and vegetables is expenditure and own-price elastic. On average all five food groups investigated are found to be normal goods. Rural and low-income households appear more expenditure and price sensitive compared to the urban and high-income ones. Results from quantile regressions indicate that income has a positive while uncertainty has a negatively effect on the diversity of the diet as the effects are stronger in more vulnerable, low income and rural consumer subsamples. Overall the food security situation in Slovakia appears to have improved over time, since the country’s EU accession. |
| Keywords: | Food security, demand, QUAIDS, elasticity, diet diversity, Slovakia, Food Security and Poverty, International Development, D12, I12, O52, Q18, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211553&r=tra |
| By: | Andrey G. Shulgin (National Research University Higher School of Economics) |
| Abstract: | Stabilizing monetary policy in a small open economy is constrained by the open economy trilemma. In a crisis this constraint may not allow the Central Bank to cut interest rates because this may cause significant capital flight and the ensuing problems. In this paper we investigate whether the Central Bank’s credit rationing at the official rate (CROR) may soften the open economy trilemma constraint and improve the results of monetary policy for different monetary regimes. We construct a DSGE model appropriate for analysing the forward-looking behaviour of households facing a non-zero probability of credit rationing at the official rate. A simulation of estimated on a Russian data model and welfare optimization exercises allow us to contribute to the question of optimal monetary regime choice and to analyse the role of credit rationing for different monetary regimes. We have found significant credit rationing in the quarterly Russian data of 2001–2014. The share of liquidity constrained (non-Ricardian) households and the probability of CROR are estimated as 22% and 66% respectively. Welfare maximization exercises reveal a trade off between low-inflation and high-welfare solutions and favour of a floating exchange rate regime. Researching CROR gives mixed results. On the one hand we found the optimal value of the probability of CROR in both exchange rate-based and Taylor rule-based models. On the other hand the resulting improvement in welfare is very small. |
| Keywords: | DSGE; Bayesian estimation; intermediate exchange rate regime; rationing of credit; exchange rate rule; Russia |
| JEL: | E52 E58 F41 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:103/ec/2015&r=tra |
| By: | Huang, Weiming; Mo, Di; Shi, Yaojiang; Zhang, Linxiu; Boswell, Matthew; Rozelle, Scott |
| Abstract: | There is a great degree of heterogeneity among the studies that investigate whether computer technologies improve education and how students benefit from them – if at all. The overall goal of this study is to assess the effectiveness of computing technologies to raise educational performance and non-cognitive outcomes and identify what program components are most effective in doing so. To achieve this aim we pool the data sets of five separate studies about computer technology programs that include observations of 16,856 students from 148 primary schools across three provinces in China. We find that overall computing technologies have positive and significant impacts on student academic achievement in both math and in Chinese. The programs are found to be more effective if they are implemented out-of-school, avoiding what appear to be substitution effects when programs are run during school. The programs also have heterogeneous effects by gender. Specifically, boys gain more than girls in Chinese. We did not find heterogeneous effects by student initial achievement levels. We also found that the programs that help students learn math—but not Chinese—have positive impacts on student self-efficacy. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211749&r=tra |
| By: | Mogilevskii, Roman; Akramov, Kamiljon |
| Abstract: | This paper discusses trends in and patterns of trade in agricultural and food products in Central Asia. The analysis shows that these products’ exports lose and imports increase its importance for all economies of Central Asia. Trade policies with regards to agricultural and food products vary greatly in the region from very liberal to quite protectionist. No correlation is observed between the type of trade regime and performance of agricultural production and trade. The paper also provides an overview of the recent changes in trade policies including those related to the creation of the Customs Union of Belarus, Kazakhstan and Russian Federation and their potential impact on agricultural and food trade in the region. |
| Keywords: | Food Security and Poverty, International Relations/Trade, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211576&r=tra |
| By: | Becker, Gideon |
| Abstract: | Nearly 25 years after the German reunification, vastly different living conditions between East and West Germany still remain. This is particularly true for the distribution of net wealth which is of special importance for the well-being of individuals. Wealth provides utility in a number of ways, for instance, by acting as a buffer against negative income shocks. Using the wealth component of the German Socio-Economic Panel (GSOEP), we find that, on average, members of western households exhibit a net worth more than twice as high as their eastern counterparts. This wealth gap remains roughly stable over time and is much more pronounced for upper parts of the distributions. In this paper, we analyze how much of this gap in per capita net wealth at different parts of the distribution can be attributed to observable factors such as permanent income or sociodemographic characteristics. We carry out our decomposition analysis via a reweighting approach. We find that for the lower part of the distribution, most of the gap can be attributed to the wealth determinants, while this share is much lower at the upper part. The most important contributing factors in this regard are the lower levels of income still prevailing in East Germany as well as differentials in labor market outcomes. Moreover, Germans in younger cohorts feature more similar levels of wealth and are more similar than the older generation. For them the success on the labor market is by far the most important factor. We also find that home ownership rates differ markedly between the two regions and play an important role for the wealth gap even though differences in housing prices also seem matter. |
| Keywords: | household finance,wealth distribution,wealth gap,decomposition methods,counterfactuals,distributional analysis |
| JEL: | D14 D31 D63 E21 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:87&r=tra |
| By: | Zoela Dimo (Bilkent University, Department of Economics) |
| Abstract: | So far Albania has been in a continuous search for foreign investments mainly in the areas of tourism, construction and manufacturing sectors. However, little interest has been shown to agriculture although it is a promising sector in Albania. The share of agricultural land in total land is only 24 %, but it has even been providing for about 19 % of the total GDP, a share which is higher than other countries of the region. Similarly, the sector has been the main source of employment in rural areas. Despite being a promising sector with a large share in the active population and a contributor to economic growth and poverty easement, agriculture appears to be limited because of the survival nature of farming, the small farm size and the faulty functioning land market. The focus of this paper will be on a careful analysis of the current agricultural situation in fields of organic agriculture, agri-food industry, farm income and employment, food policies, rural development policies, agricultural trade etc. Simultaneously, the paper will constantly keep a record of the European Union policies functioning in Albania with the purpose of making the country a competitive factor in the international arena. Therefore, by having the big picture of agriculture and a careful analysis of each factor in it, the paper will accomplish to present useful strategies which will in return help the amelioration of agriculture in Albania. |
| Keywords: | agricultural trade, organic agriculture, rural development policies, foreign investment |
| JEL: | C50 Q13 Q15 Q18 Q56 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:eyd:cp2015:243&r=tra |
| By: | Ciaian, Pavel; Guri, Fatmir; Rajcaniova, Miroslava; Drabik, Dusan; Paloma, Sergio |
| Abstract: | We analyze the impact of land fragmentation on production diversification and its implications for food security of farm households in rural Albania. Albania represents a particularly interesting case for studying land fragmentation as the fragmentation is a direct outcome of land reforms. The results indicate that land fragmentation is an important driver of production diversification of farm households in Albania. We find that land fragmentation stimulates significantly more diversification for subsistence farm households than for market-oriented households. Our findings have two key policy implications: (i) the consolidation policies that relocate and enlarge plots would have a significant impact on reducing agricultural production diversification; and (ii) land fragmentation contributes to the food security improvement by increasing the variety of foodstuffs produced by subsistence farm households. |
| Keywords: | Land Economics/Use, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211539&r=tra |
| By: | Lin, Dayan; Wu, Guosong; Zhu, Jing; Yang, Fan; Aniah, Dominic |
| Abstract: | Over two decades, distribution of China’s soybean import sources changed significantly. Price as is implied in traditional HO theory is unable to justify that change. Instead, the seasonality of agricultural production may contributes more to changes on import source of soybean by seasonal supply constraints. Based on exporters’ decision-making behavior, this paper analyzed the impact of constraints from exporters’ exporting prowess on China's import source distribution from the perspective of seasonality, using monthly data of China and the three major soybean exporters from the year 2010 to 2013. Empirical results show that an exporting country takes up a significantly bigger share in China’s soybean imports in its harvest season than in non-harvest season. Changes on import source result from dynamics of comparative advantage of exporting countries. Taking seasonal complementarities and comparative advantages of exporters into consideration, China may make good use of world resources and stabilize domestic supply of food. |
| Keywords: | Crop Production/Industries, International Relations/Trade, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211562&r=tra |
| By: | Burggraf, Christine; Kuhn, Lena; Zhao, Quiran; Teuber, Ramona; Glauben, Thomas |
| Abstract: | This study provides empirical evidence on the link between economic growth, nutrition, and health in two emerging economies, China and Russia. Both countries have experienced rising average incomes, accompanied by an increasing rate of nutrition-related chronic diseases in recent years. Thereby, the higher growth rate of the occurrence of obesity in China suggests a certain catching-up effect and tremendously increasing problems with chronic diseases in the longer run, especially in urban areas of China. Further, our results indicate that with increasing household incomes over time the demand for carbohydrates decreases, while the demand for meat and dairy products, as well as fruits increases. This is a development generally known as nutrition transition. Finally, our estimation results of a Quadratic Almost Ideal Demand System (QUAIDS) underscore the finding that income growth in China and Russia tends to increase the demand for animal-based products much stronger than the demand for carbohydrates. |
| Keywords: | nutrition transition, food demand, QUAIDS, China, Russia, Food Consumption/Nutrition/Food Safety, International Development, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211375&r=tra |
| By: | Dillen, Koen |
| Abstract: | Type On August 6 2014 the Russian Federation introduced a one year ban on imports into the Russian Federation of agricultural products, raw materials and food, originating from selected countries including the EU. This paper provides an initial assessment of the potential impact of this import ban on EU agricultural markets. Furthermore it provides an insight in the shifting trade patterns and price effects at EU, Russian and world level. We use the Aglink-Cosimo model, a recursive partial equilibrium model of the agricultural sector. Its gross trade specification is problematic for the study of bilateral trade. Therefore the model was extended with an ad hoc incorporation of bilateral trade. The initial results show that the impact for the EU remains rather limited as the EU can divert a considerable part of its trade with Russia to other markets. The impact on the Russian market is however expected to be considerable as imports can't be easily substituted and domestic production has problems to expand productions significantly within the timeframe of the ban. |
| Keywords: | Agricultural Finance, International Relations/Trade, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211574&r=tra |
| By: | Chichaibelu, Bezawit; Waibel, Hermann |
| Abstract: | Does multiple borrowing lead micro-borrowers into over-indebtednes? Do over-indebted micro-borrowers take loans to refinance existing loans that are ultimately unpayable and get trapped in a vicious circle of debt? Using a longitudinal household survey data, this study addresses such questions by examining the dynamic interdependency between over-indebtedness and multiple borrowing in the context of micro-borrowers in Thailand and Vietnam. Specifically, the trues state dependence and cross-state dependence effects of over-indebtedness and multiple borrowing are tested using the dynamic random effect bivariate probit model while controlling for observed and unobserved household heterogeneity. Results suggest that taking multiple borrowing simultaneously does positively influence household's risk of becoming over-indebted in Thailand, while in Vietnam it has no significant influence on household's risk of over-indebtedness. Although households reported of taking multiple loans to repay old debts, the empirical results do not support the premises that over-indebtedness reinforces households to refinance ultimately unpayable debts and trap households into a perpetual debt cycle. |
| Keywords: | Agricultural Finance, Consumer/Household Economics, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae15:211463&r=tra |
| By: | Peter Kuhn; Kailing Shen |
| Abstract: | We study urban, private sector Chinese employers’ preferences between workers with and without a local permanent residence permit (hukou) using callback information from an Internet job board. We find that these employers prefer migrant workers to locals who are identically matched to the job’s requirements; these preferences are strongest in jobs requiring lower levels of education and offering low pay. While migrant-native payroll tax differentials might account for some of this gap, we argue that the patterns are hard to explain without some role for a migrant productivity advantage in less skilled jobs. Possible sources of this advantage include positive selection of nonlocals into migration, negative selection of local workers into formal search for unskilled private sector jobs, efficiency wage effects related to unskilled migrants’ limited access to the urban social safety net, and intertemporal labor and effort substitution by temporary migrants that makes them more desirable workers. |
| JEL: | J71 O15 R23 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21675&r=tra |
| By: | Adrian Curaj (Independent Expert) |
| Abstract: | In the frame of the Stairway to Excellence project, complex country analysis was performed for the EU MS that joined the EU since 2004, with the objective to assess and corroborate all the qualitative and quantitative data in drawing national/regional FP7 participation patterns, understand the push–pull factors for FP7/H2020 participation and the factors affecting the capacity to absorb cohesion policy funds. This report articulates analysis on selected aspects and country-tailored policy suggestions aiming to tackle the weaknesses identified in the analysis. The report complements the complex qualitative/ quantitative analysis performed by the IPTS/KfG/S2E team. In order to avoid duplication and cover all the elements required for a sound analysis, the report builds on analytical framework developed by IPTS. |
| Keywords: | Research and Innovation, EU Framework Programme for Research and Innovation, Horizon 2020, Cohesion policy, Structural Funds, SF, ERDF, European Regional Development Fund, European Structural & Investment Funds, ESIF, quality of governance, evaluation and monitoring mechanisms. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97667&r=tra |
| By: | Tani, Massimiliano (IZA) |
| Abstract: | The literature on subjective well-being has highlighted the negative effects associated with the restrictions and inequality imposed by the hukou system on China's rural population. However, quantifying the cost of holding a rural hukou has generally been problematic, principally for lack of suitable data or measurements. Thanks to RUMiC, a new longitudinal database on China, this limitation can be overcome by exploiting exogenous changes in hukou status due to expropriation. The results support that granting an urban hukou substantially enhances subjective well-being within the household, especially for the household heads. The results complement a growing literature on subjective well-being focusing on China. |
| Keywords: | subjective well-being, expropriation, China |
| JEL: | D19 I31 J61 R20 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9451&r=tra |
| By: | Ludmila Fadejeva (Bank of Latvia); Olegs Krasnopjorovs (Bank of Latvia) |
| Abstract: | In this paper we examine firm level survey data collected in the framework of the Eurosystem's Wage Dynamics Network (WDN) in Latvia. The survey explores labour cost adjustment strategies during 2008–2009 and 2010–2013 with the aim to uncover wage, employment, and price adjustment channels for different firm categories during crisis and post-crisis periods. The results show that more than half of firms were affected by a slump in demand and credit conditions during 2008–2009, with the effect being particularly strong on non-exporting firms. Unlike what the macroeconomic picture of average wage suggests, both flexible and permanent wages were adjusted strongly in response to the shock. One third of firms reduced employment or altered its structure strongly, with freeze of new hires and reduction of permanent employees used particularly often. The demand improved during 2010–2013 despite still tight credit conditions. Decrease in working hours, freeze of wages and new employment remained significant measures of labour cost adjustment during the latter period. Improvements in demand conditions transmitted into the increase in base wage, while bonuses were raised relatively less often. |
| Keywords: | firm survey data, wage adjustment, labour force adjustment, price setting |
| JEL: | J31 J38 J24 D22 C25 |
| Date: | 2015–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:wpaper:201502&r=tra |