nep-tra New Economics Papers
on Transition Economics
Issue of 2016‒05‒14
seventeen papers chosen by
J. David Brown
United States Census Bureau

  1. The relationship between social capital and health in China By Xue, Xindong; Mo, Erxiao; Reed, W. Robert
  2. The macroeconomics effects of the implementation of the euro in Poland in relation to the experience of other countries By Bajan Bartlomiej
  3. Older parents enjoy better filial piety and care from daughters than sons in China By Yi Zeng; Linda George; Melanie Sereny; Danan Gu; James W. Vaupel
  4. RIO Country Report 2015: Czech Republic By Srholec Martin; Szkuta Katarzyna
  5. Impacts of Economic Integration on Living Standards and Poverty Reduction of Rural Households By Bui, Tuan; Dungey, Mardi; Nguyen, Cuong; Pham, Phuong
  6. Автоматизация заправочных терминалов как фактор повышения конкурентоспособности АЗС By Kharitonenko, Yuliya
  7. Jobs in global supply chains: a macroeconomic assessment By Takaaki Kizu; Stefan Kühn; Christian Viegelahn
  8. Ukraine; Technical Assistance Report-Self-Funding of the National Securities and Stock Market Commission By International Monetary Fund
  9. Randomness or stock-flow: Which mechanism describes labour market matching in Poland? By Ewa Galecka-Burdziak
  10. An analysis of Joseph Schumpeter's life, concept of innovation, and application for Estonia By Putthiwanit, Chutinon
  11. Are experts’ probabilistic forecasts similar to the NBP projections? By Halina Kowalczyk; Ewa Stanisławska
  12. Social Media and Corruption By Enikolopov, Ruben; Petrova, Maria; Sonin, Konstantin
  13. Migration, Agricultural Production and Diversification: A case study from Vietnam By Nguyen, Duc Loc; Grote, Ulrike
  14. Policy of energy poverty alleviation and quality of life in Poland By Michal Litwinski
  15. RIO Country Report 2015: Bulgaria By Todorova Angelina; Slavcheva Milena
  16. Place-based Policies, Firm Productivity and Displacement Effects: Evidence from Shenzhen, China By Hans Koster; Fang Fang Cheng; Michiel Gerritse; Frank van Oort
  17. Governance, efficiency and risk taking in Chinese banking By Dong, Yizhe; Girardone, Claudia; Kuo, Jing-Ming

  1. By: Xue, Xindong; Mo, Erxiao; Reed, W. Robert
    Abstract: This paper uses the 2005 and 2006 China General Social Survey (CGSS) to study the relationship between social capital and health in China. It is the most comprehensive analysis of this subject to date, both in the sizes of the samples it analyses, in the number of social capital variables it investigates, and in its treatment of endogeneity. The authors identify social trust, social relationships, and social networks as important determinants of self-reported health. The magnitude of the estimated effects are economically important, in some cases being of the same size or larger than the effects associated with age and income. Their findings suggest that there is scope for social capital to be a significant policy tool for improving health outcomes in China.
    Keywords: social capital,trust,self-reported health,China,ordered probit regression,heteroskedastic ordered probit regression,interaction effects,endogeneity
    JEL: I1 I18 P25 O53
    Date: 2016
  2. By: Bajan Bartlomiej (Poznan University of Life Sciences)
    Abstract: In the chapter attempts have been taken to assess the potential impact of Polish accession to the euro zone. The analysis covers costs and benefits of monetary integration which are mostly pointed in literature, alluding to the experience of European Union countries. The analysis covers the years 1996-2004. A comparison was made between countries which have adopted the euro in 1999, and those that remained with the national currencies. There are differences between these two groups of countries in increments of GDP per capita, since the introduction of the euro in paper form, despite an earlier convergence of this indicator, however much smaller differences occurred in the case of the inflation rate. Both groups of countries have recorded a significant increase in foreign trade turnover since the inception of the euro area. The data used in the analysis come from the European Statistical Office (Eurostat) and the United Nations Conference on Trade and Development (UNCTAD).
    Keywords: monetary union; euro zone
    JEL: E02 E52 E59 F45
    Date: 2016–05
  3. By: Yi Zeng (Max Planck Institute for Demographic Research, Rostock, Germany); Linda George; Melanie Sereny; Danan Gu; James W. Vaupel (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: This study based on analyzing the unique datasets of Chinese Longitudinal Healthy Longevity Survey clearly demonstrate that, compared to having son(s), having daughter(s) is beneficial at older ages, with regards to enjoying greater filial piety from and better relationships with children and satisfaction with care provided by children. The daughter-advantages of enjoying greater filial piety from and better relationships with children are more profound among oldest-old aged 80+ compared to young-old aged 65-79, and surprisingly more profound in rural areas compared to urban areas, while son-preference is much more prevalent among rural residents. We also discuss why the rigorous fertility policy until October 2015 and less-developed pension system in rural areas substantially contribute to the sustentation of the traditional son-preference which resulted in high sex ratio at birth (SRB) when fertility is low. We recommend China to take integrative policy actions of informing the public that having daughter(s) is beneficial for old age care, developing rural pension system and implementing the most recently announced universal two-child policy as soon as possible. We believe that these policy actions would help China to change the traditional son-preference, bringing down the high SRB, and enable more future elderly parents to enjoy their life including better care provided by daughters.
    Keywords: China, daughters, parents, sons
    JEL: J1 Z0
    Date: 2015–12
  4. By: Srholec Martin (Centre of Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University); Szkuta Katarzyna (European Commission – JRC - IPTS)
    Abstract: The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems.
    Keywords: R&I system, R&I policy, ERA, innovation union, Semester analysis, Czech Republic
    JEL: I20 O30 Z18
    Date: 2016–04
  5. By: Bui, Tuan; Dungey, Mardi; Nguyen, Cuong; Pham, Phuong
    Abstract: Economic integration has been accelerated in Vietnam as in other East Asia countries with the aim to reduce poverty and inequality. However, challenges including widening income gap between urban and rural and between households have emerged. This article examines the effect of economic integration on poverty and inequality of rural households in Vietnam. Corrected for fixed effects and other potential bias we find that the effect of economic integration on household welfare is minimal and statistically insignificant. Our study suggests policy agendas will require a redistributive household and community level component in addition to macroeconomic growth to effectively reduce poverty.
    Keywords: Economic integration, poverty, inequality, Vietnam
    JEL: F1 I3
    Date: 2016–05–05
  6. By: Kharitonenko, Yuliya
    Abstract: In this article the problem of improving the competitiveness of gas stations by automating the sales of petroleum products on the Russian enterprises. The author analyzes the features, advantages and disadvantages of automation of petrol stations in Russia. Particular attention is paid to the comparative performance of different types of gas stations.
    Keywords: automation, marketing tactic, competitiveness, profit, efficiency, savings, automatic filling station, the customer.
    JEL: M30
    Date: 2016
  7. By: Takaaki Kizu; Stefan Kühn; Christian Viegelahn
    Abstract: In its recent World Employment and Social Outlook, the ILO published estimates of the number of jobs related to global supply chains (GSCs) for 40 countries in 1995-2013. This paper provides a detailed description of the methodology that was used for the estimation and documents in more detail global linkages in production, becoming apparent on the labour market. The paper also shows new evidence on the number of jobs supported by different export destinations and analyzes the number of GSC-related jobs in different country groups. In particular, we find evidence for the changing role of China, from a country in which GSC-related jobs are located to a country whose import demand creates these jobs elsewhere. We also show that production linkages between emerging economies create an increasing number of jobs. When focusing on jobs related to manufacturing GSCs, trends in GSC-related jobs reveal the increasing importance of the services sector. Finally, we conduct a sectoral regression analysis and provide evidence that increased GSC participation of a sector as a supplier can be associated with a drop in the wage share.
    JEL: F16 F66
    Date: 2016–03
  8. By: International Monetary Fund
    Abstract: There are a number of challenges with the adequacy of the NSSMC’s funding and the constraints placed on it through the Ukrainian government budget process. These challenges were described in detail in a previous IMF TA report that encouraged the Ukrainian authorities to consider moving to self-funding of the NSSMC through administrative fees and annual supervisory fees paid by regulated entities.
    Keywords: Civil society organizations;Revenue sources;Resource allocation;Securities markets;Securities regulations;Stock markets;Technical Assistance Reports;Ukraine;
    Date: 2016–04–29
  9. By: Ewa Galecka-Burdziak
    Abstract: I compare random, stock-flow and job queuing models to determine which mechanism prevails in the Polish labour market. I use monthly registered unemployment data for the period 1999 - 2013 and econometrically correct for temporal aggregation bias in the data. I extend the known solutions to make them directly applicable to a job queuing model. I find that stocks and inflows engage in a matching process. Job seekers (from the pool) seek work among old and new job posts, but only a small fraction of the newly unemployed individuals find work instantaneously. Vacancies are the driving force in aggregate hiring, but the inflow is more important than the stock. The random model has greater explanatory power, although the results do not negate the non-random model. The random model entails the need to improve information to facilitate matching. The stock-flow model implies that policy should aim at creating more job offers.
    Keywords: Stock-flow matching, Random matching, Job queuing, Polish labour market, Temporal aggregation
    JEL: J63 J64
    Date: 2016–04
  10. By: Putthiwanit, Chutinon
    Abstract: This research studies a basic concept of Schumpeterian Theory by exploring the life of Joseph Schumpeter and the application for Estonia. The secondary data were taken from World Values Survey (WVS); a worldwide group of researchers observing global values and their effect on society as a whole with headquarters in Sweden. Author took the most recent data of WVS in wave six (year 2010-2014) with the total of 74,042 cases for analysis. An analysis was performed by multiple regressions and no multicollinearity problems were detected. The results show that the nature of tasks (both manual vs. intellectual and routine vs. creative) affects the importance of employees being creative. Further analysis was performed by an independent pair sample T-test and the result shows that there are differences in the nature of tasks (both manual vs. intellectual and routine vs. creative) of Estonian and global employees. Subsequently, the final analysis was performed to explore the difference in the nature of tasks in intellectual and creative Estonian and global employees. However, there is no difference in this aspect between them.
    Keywords: Innovation; Schumpeterian Theory; Secondary Data; Intellectual; Creative; Creativity; Workplace; Estonia
    JEL: L20 O30 O31
    Date: 2016–04–02
  11. By: Halina Kowalczyk; Ewa Stanisławska
    Abstract: We assess similarity of the Polish central bank’s forecasts published in Inflation Reports and economic experts’ forecasts (from NBP Survey of Professional Forecasters), an important issue in monetary policy. Contrary to other studies which use point forecasts, we are interested is comparing whole forecasts’ distributions. We are especially interested whether the SPF experts mirror the NBP projections. For this purpose, we propose employing methods based on distance between distributions. Unfortunately, substantial heterogeneity of forecasts, as well as short and atypical period analyzed, limit drawing firm conclusions with this respect.
    Keywords: survey data, fan charts, probabilistic forecasts, inflation forecasts, GDP growth forecasts, distribution similarity
    JEL: D83 D84 E37
    Date: 2016
  12. By: Enikolopov, Ruben; Petrova, Maria; Sonin, Konstantin
    Abstract: There is ample evidence that in democratic countries traditional mass media affect people’s behavior and foster political and corporate accountability. Do new media such as blogs play a similar role in non-democratic countries, where offline media are often suppressed? We study consequences of blog posts about corruption in Russian state-controlled companies. We show that anti-corruption blog posts by Aleksei Navalny, a popular Russian civic activist, had a negative causal impact on market returns of state-controlled companies. For identification, we exploit the analysis of the precise timing of blog posts combined with quasi-random variation in access to blog platform caused by hacker attacks. The effect becomes less pronounced and even positive for the posts that attract the most attention, consistent with disciplining effect of social media. Furthermore, the posts have a long-term impact on returns and are associated with higher management turnover and less minority shareholder conflicts. Taken together, our results suggest that social media can discipline corruption even in a country with limited political competition and heavily censored mass media.
    Keywords: financial markets; governance; political economy; social media
    JEL: L82 L86 P16
    Date: 2016–05
  13. By: Nguyen, Duc Loc; Grote, Ulrike
    Abstract: The New Economics of Labor Migration (NELM) hypothesizes that migration is a strategy to reduce risks and financial liquidity constraints of rural households. This paper tests this hypothesis for the case of Vietnam. The impacts of migration on agricultural production and diversification are estimated in fixed effects regression models based on a panel data set of about 2,000 households in Vietnam. The findings suggest that rural households who receive remittances from their migrants reduce the share of their income from rice, increase their land productivity and become more specialized in labor allocation. However, migration also decreases labor productivity and crop diversification of rural households. Overall, the NELM hypothesis is only supported in cases migrant households receive remittances.
    Keywords: Migration, Remittances, Agricultural Productivity, Diversification, Vietnam, Community/Rural/Urban Development, Labor and Human Capital, J62, D13, O13, Q12,
    Date: 2015–12
  14. By: Michal Litwinski (Poznan University of Economics)
    Abstract: The aim of the article is to verify a hypothesis about positive influence of instrument of energy poverty alleviation policy on quality of life in Poland. In the article literature review is presented. There is also conducted quantitative analysis of data for 2004-2014. Variables regarding energy policy were obtained from OECD database, variables regarding quality of life – from Eurostat. The analysis confirmed that shaping one of the instruments of energy poverty alleviation policy – energy prices can positively affect access to electricity, thereby reducing scope and depth of energy poverty. Limitation of this phenomena could be a reason of quality of life increase.
    Keywords: energy policy; quality of life; energy prices
    JEL: I31 C32 Q48
    Date: 2016–05
  15. By: Todorova Angelina (Aero-Space Technologies, Research and Applications (Castra)); Slavcheva Milena (European Commission – JRC - IPTS)
    Abstract: The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems.
    Keywords: R&I system, R&I policy, ERA, Innovation Union, Semester analysis, Bulgaria
    JEL: I20 O30 Z18
    Date: 2016–04
  16. By: Hans Koster (VU University Amsterdam, the Netherlands, and London School of Economics, United Kingdom); Fang Fang Cheng (Utrecht University, the Netherlands); Michiel Gerritse (University of Groningen, the Netherlands); Frank van Oort (Erasmus School of Economics, Erasmus University Rotterdam, and Utrecht University, the Netherlands)
    Abstract: We analyse the economic impacts of place-based policies that aim to enhance economic development by stimulating growth and productivity of firms in designated areas. We use unique panel data from China with information on manufacturing firms’ production factors, productivity and location, and we exploit temporal and spatial variation in place-based interventions due to the opening of science parks in the metropolitan area of Shenzhen. The identification strategy enables us to address the issues that (i) science parks are located in favourable locations and that (ii) high-productivity firms sort themselves in science parks. We find that productivity is approximately 15-25 per cent higher due to the policies. The results also show that local wages have increased in science parks. Weaker evidence suggests that displacement effects are sizeable.
    Keywords: place-based policies; transitional economies; science parks; productivity
    JEL: H2 R3 R5
    Date: 2016–04–01
  17. By: Dong, Yizhe; Girardone, Claudia; Kuo, Jing-Ming
    Abstract: We employ a hand-collected unique dataset on banks operating in China between 2003 and 2011 to investigate the impact of board governance features (size, composition and functioning) on bank efficiency and risk taking. Our evidence suggests that board characteristics tend to have a greater influence on banks’ profit and cost efficiency than on loan quality. We find that the proportion of female directors on the board appears not only to be linked to higher profit and cost efficiency but also to lower traditional banking risk. Similarly, board independence is associated with higher profit efficiency of banks; while the opposite is found for executive directors and in the presence of dual leadership of the CEO/chairperson. Among the control variables, we found that liquidity negatively affects profit and cost efficiency, while positively affecting risk. Interestingly, we find some evidence of an incremental effect of specific board characteristics on efficiency for banks with more concentrated ownership structures and state-owned institutions; while for banks with CEO performance-related pay schemes the effect on efficiency when significant is usually negative. Our results offer useful insights to policy makers in China charged with the task of improving the governance mechanisms in banking institutions.
    Keywords: Board governance; Bank efficiency; Asset quality; Bank ownership; Performance-related compensation; Chinese banking sector
    Date: 2016–05

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