|
on Transition Economics |
| By: | Jan Hanousek (CERGE-EI, Charles University); Evzen Kocenda (Institute of Economic Studies, Charles University) |
| Abstract: | We analyze how efficiency of firms in the Czech Republic is affected by their size, age, competition, capital structure, ownership types, and global financial crisis. We employ the stochastic frontier approach, use a large and detailed dataset, and cover time span 2001-2012. We show that larger firms cannot be associated with better efficiency in general. Effect of their age has only negligible impact. Impact of the capital structure is shown to be strong in large and more leveraged firms. Higher competition is not contributive to efficiency neither on individual nor aggregate levels. While effects of firm characteristics are small, the effects of ownership are economically substantial. We show that majority owners are most contributive with respect to firm’s efficiency when compared to other categories we analyze. Minority owners with legally grounded power are able to impose significant efficiency improvement. The effect of the foreign ownership is strongest when foreign owners control firms with less than majority of voting power. Minority owners sharing the control do not seem to contribute to efficiency. The impact of crisis is not balanced but can be regarded as negative in general. The firms’ characteristics change only a little. In contrast, worsening impact of the crisis is evidenced for controlling ownership categories. Minority owners exhibit a limited disciplining effect to improve efficiency after the crisis. |
| Keywords: | efficiency; ownership structure; firms; panel data; stochastic frontier; Europe |
| JEL: | C33 D24 G32 L60 L80 M21 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:942&r=tra |
| By: | Fernald, John; Hsu, Eric; Spiegel, Mark M. |
| 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:bof:bofitp:2015_029&r=tra |
| By: | Olivier Damette (BETA - Bureau d'Economie Théorique et Appliquée - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, LEF - Laboratoire d'Economie Forestière - INRA - Institut National de la Recherche Agronomique - AgroParisTech - AgroParisTech); Mathilde Maurel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International - FERDI); Michael A. Stemmer (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Consequences from the subsiding 2008 financial crisis on long-run economic growth are widely debated. Existing literature on previous recessions, such as Cerra and Saxena (2008), emphasizes the long-term loss inflicted on per capita GDP levels. This paper concentrates on typical business cycles in advanced European and transition countries and assumes that lower than normal growth during recessions is followed by a recovery period with above normal growth until the economy reaches its pre-crisis level. The objective is to assess the capacity to rebound, the speed of convergence towards a normal growth path as well as potential nonlinearities. Through exploiting the cointegration relationships among variables in long-run growth regressions and by employing a variety of panel error-correction models, results show a strong evidence of error-correction and different linear speed in the convergence process with the transition economies outpacing Western European countries. Our analysis is further extended into a Panel Smooth Transition Error-Correction Model (PSTR-ECM) to account for different regimes in convergence patterns according to a selection of transition variables. Whereas the velocity of convergence for European core countries exhibits a nonlinear pattern and differs with respect to price and flexibility, transition countries remain linear in their return to the growth trend. Ultimately, our results suggest that internal adjustments remain the key factors for both European and transition countries to recover from negative economic growth shocks. |
| Keywords: | smooth-transition models,Economic growth,business cycles,transition economies,error-correction models,panel cointegration |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01318131&r=tra |
| By: | Georgescu, George |
| Abstract: | The recent history of mankind has shown the importance of institutions for addressing the macroeconomic balances, the market mechanisms and the improving of countries economic performances. The paper focuses on Romania’s institutional convergence with the EU Member States, revealing that, despite some progresses achieved in the pre-accession period as concerns the transposition and compliance with the European legislation, a deterioration in the institutional system functioning has been registered after joining the EU, in terms of public administration efficiency, stability of organizational structures, public procurement policies, corruption. Some of institutional deficiencies are explained by the more in-depth analysis of Romania’s credit institutions convergence with the EU banking system practicies. Significant differences in the magnitude of financial intermediation, loan-to-deposit ratio, minimum reserves requirements, borrowing costs, NPL ratio, interest rate margins, have been found. To these, dysfunctions of other institutions, as Bucharest Stock Exchange, authorities entitled to monitor and supervise competition, banking and non-bank financial market are added. In conclusion, the paper stressed that, the overall institutional picture of Romania seems rather divergent compared to the one of the EU, at least regarding the effective functioning of governance and institutions. |
| Keywords: | New Institutional Economy; acquis communautaire; institutional convergence; credit institutions |
| JEL: | E02 F15 G15 O43 |
| Date: | 2016–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70741&r=tra |
| By: | Hu, Lifang; Zeng, Yinchu; Lopez, Rigoberto A. |
| Abstract: | Using national survey data on 1422 traders in 18 Chinese wholesale markets, we employ a probit model with sample selection to estimate the determinants of agricultural traders’ credit constraints. The econometric analysis shows that application costs that are highly related to social networks and imperfect screening of applicants by financial institutions both discourage potential borrowers and may make them become “self-rationing.” Credit-constrained traders account for 38.78% of traders seeking loans. The empirical results demonstrate that the probability of being credit-constrained is significantly lower for corporations, traders who have higher value assets, traders with more social networks, and traders in a better micro-finance environment. |
| Keywords: | agricultural trader, credit constraint, self-rationing, corporation, demand, Agribusiness, Agricultural Finance, Q13, Q14, |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235449&r=tra |
| By: | Zhang, Jian; Li, Tao; Wang, Haigang |
| Abstract: | In this paper, relying on an experiment, we find that among all the student characteristics, only gender plays a significant role in determining the probability obtaining an onsite interview. Other things being equal, male students are much more likely to be invited for a job interview. In addition, the other characteristics of a female applicant, for example, excellence in academic performance, student leadership and strong English skill, cannot mitigate the female disadvantage. |
| Keywords: | Gender, College Student Characteristics, Screening of Prospect Employers, Randomization of Resume, China, International Development, Labor and Human Capital, J71, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235568&r=tra |
| By: | Guo, Jianxin; Jin, Songqing; Zhang, Junfeng |
| Abstract: | This paper identify the factors influencing farmers’ decision on adoption and intensity of new ICT-based service application using household survey data of 712 randomly selected farmer households in 54 villages from 3 districts in suburban Beijing in 2014. Dichotomous probability model and count data model are applied to measure the factors influencing farmers' decision and the adoption intensity. The study reveals that the farmers’ educated level, transferred employment status and the perceived of usefulness and easiness of the application have significant positive influence on their adoption decision and intensity, however, the factors affecting the adoption decision are not exactly the same as those of adoption intensity. The rural informatization extension methods have little influence on farmers’ adoption of ICT-based services. To strengthen the integration of agriculture and "Internet +", different training and extension programs that promote farmers to adopt the internet and other ICT-based services are needed in order for farmers to be able to benefit from the development of the “Internet + Agriculture”. |
| Keywords: | “Internet+”, Farmer, Adoption Decision, Count Data Model, Community/Rural/Urban Development, Institutional and Behavioral Economics, Teaching/Communication/Extension/Profession, |
| Date: | 2016–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235478&r=tra |
| By: | Wang, Qingbin; Hansen, James; Xu, Fang |
| Abstract: | China has rapidly emerged as a large milk producer and dairy product importer and there is a growing need for information on China’s dairy market and trade behavior. This study uses the most recently available data to examine the trends of China’s dairy production, demand, and imports and to assess the potential impacts on U.S. exports of alfalfa and dairy products. While the empirical results suggest that China is very likely to remain as a large importer of alfalfa, powder milk, whey, cheese, and many other dairy products for meeting its growing domestic demand, China’s emerging demand for these imports is expected to bring more opportunities for the U.S. dairy industry. On the other hand, the United States is facing more competitions from other alfalfa and dairy product exporters and more studies are needed for developing effective programs to enhance U.S. competitiveness in the Chinese markets. |
| Keywords: | China’s dairy market, U.S. dairy exports, alfalfa, powder milk, whey, projection, Livestock Production/Industries, Marketing, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235833&r=tra |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB) |
| Abstract: | Disaster risk now presents one of the most serious threats to inclusive and sustainable socioeconomic development. In the People’s Republic of China (PRC), the incidence of natural disasters—particularly water-related disasters—are on the rise, resulting in an increased exposure to and vulnerability of the population to disasters. Coupled with anticipated increases in the frequency and intensity of weather-related events due to climate change, the PRC’s population is at heightened risk. This review focuses on waterrelated disasters, including identification of underlying causes, current management and policies to reduce risk, and opportunities for strengthening integrated disaster risk management in the PRC. |
| Keywords: | natural disasters, climate change risks, extreme weather events, water-related disasters, flooding, risk management, idrm, water resources development, water resources management, risk reduction, drought, extreme storms, environmental degradation, water-related hazards |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt157747&r=tra |
| By: | Kurakova, N. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Zinov, V. G. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Tsvetkova, L. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Yeremchenko, O. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | Bridging the gap and the subsequent maintenance of technological leadership is one of the key tasks in the field of socio-economic development and national security, which must be solved taking into account all the constraints of social and economic development, specific to the current moment. To achieve leadership in various areas, determining the global technology agenda in Russia has developed and implemented the National Technology Initiative. The study analyzed the risks included in the national technology initiative so-called new production technologies and photonics. The complex of measures to achieve global leadership and Russia appreciated the opportunity as soon as possible to implement the scenario of accelerated scientific and technological development. Shows the reasoning for selecting priority research and development in the sector of civil science, which takes into account the existence of absolute and relative advantages of the country, due to the presence of strategic natural resources. |
| Keywords: | technological leadership, socio-economic development, national security |
| Date: | 2016–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:1033&r=tra |
| By: | Klein, Paul-Olivier; Weill, Laurent |
| Abstract: | There has been a considerable expansion of corporate bond markets in China in the recent years. The objective of this study is to examine the stock market reaction following bond issuance by Chinese companies. In addition to analyzing for positive or negative reactions to bond issues, we consider the influences of ownership and management characteristics on the stock market reaction. Applying an event-study methodology to a sample of 481 bond issues of 347 Chinese companies over the period 2009–2013, the univariate results show that Chinese bond issues typically generate a positive stock market reaction. The reaction is only significantly positive, however, in the case of central state-owned companies (as opposed to those owned by local or provincial governments). The multivariate results indicate that insider ownership influences stock market reaction to a bond issue, while management characteristics have no discernable impact. |
| Keywords: | China, emerging markets, corporate bonds, event study |
| JEL: | G14 P34 |
| Date: | 2015–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2015_033&r=tra |
| By: | Kechagia, Polyxeni; Metaxas, Theodore |
| Abstract: | FDI inflows are a significant form of capital flows mostly towards the developing countries and they decisively affect the host country’s economic growth, the macroeconomic stability, the infrastructure and the governmental policy. The present paper focuses on the FDI inflows absorbed by the Central Asian countries, studying the case of Uzbekistan that attracts limited amount of FDI contrary to other countries of the region. It is argued that Uzbekistan attracts FDI mostly because of its market size and its adequacy on natural resources; however, the transformations performed failed to further increase the country’s attractiveness to foreign investors. |
| Keywords: | FDI, developing countries, Uzbekistan, Central Asia, capital inflows |
| JEL: | F21 O16 O18 R11 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71326&r=tra |
| By: | Zuzana Mucka (Council for Budget Responsibility) |
| Abstract: | The paper sets out a multiple-trend DSGE model designed, calibrated and estimated to match key stylized facts about the Slovak economy. The model includes a detailed fiscal policy block that allows a thorough analysis of fiscal policy measures and evaluate country’s fiscal policy credibility using interest rate spreads. The estimated model is firstly employed to identify the structural economic shocks that drive the economy and determine the sources of the forecast uncertainty. The empirical analysis emphasizes the importance of the foreign shocks on domestic GDP, trade and employment growth and high influence of productivity shocks on inflation and labour market dynamics. Next, using the model we study the response of the economy to a technology shock and to a foreign demand shock under alternative fiscal adjustment scenarios. We find that a well-designed programme involving increases in transfers as well as tax cuts can stabilize the economy in the short run and improve longer-term growth prospects following a shock with adverse fiscal implications. We analyse the consequences of fiscal policy shocks in and away from the steady state of the model. The exercise yields implied fiscal multipliers that are in line with standard literature. Raising capital and labour tax especially is particularly bad for the real economy, mainly in the long run. On the other hand, cutting subsidies and unproductive government consumption are the least harmful way of reducing spending, while reduction in the public wage bill and public investment has negative implications on household consumption and wealth. |
| Keywords: | dynamic stochastic general equilibrium model, simulations, fiscal rules, fiscal multipliers, fiscal consolidation |
| JEL: | E32 C61 C63 D58 E62 H63 H5 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cbe:dpaper:201601&r=tra |
| By: | Huber, Martin; Kotevska, Ana; Martinovska-Stojcheska, A.; Solovyeva, Anna |
| Abstract: | This paper investigates the effects of an information campaign about a governmental rural development program (RDP) in the Former Yugoslav Republic of Macedonia on the farmers’ intention to participate in the RDP. In the course of a survey among farmers, the treatment group received an information brochure with relevant details on selected RDP measures, while the control group received no information. Even though the intervention had been planned as experiment, randomization was not properly conducted, requiring sample adjustments and controlling for observed covariates in the estimation process. The results suggest that while the intervention succeeded in informing farmers, it had a negative, albeit marginally statically significant, effect on farmers’ reported possibility and intention to use RDP support in the near future. Evidence from further outcome variables suggests that this may be due to the information about administrative burden associated with RDP participation provided in the brochure. We also find that the negative effect is driven by the subsample of unprofitable farmers. |
| Keywords: | information provision; rural development; FYR Macedonia; field experiment; treatment effects |
| JEL: | Q28 |
| Date: | 2016–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:fri:fribow:fribow00469&r=tra |
| By: | Gabriela Grotkowska (Faculty of Economic Sciences, University of Warsaw); Leszek Wincenciak (Faculty of Economic Sciences, University of Warsaw); Tomasz Gajderowicz (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | The aim of this paper is to estimate the adjusted sectoral wage gap in Poland in the period 1999–2012. We use a set of individual data from the survey on the structure of earnings by occupations (SEO) carried out by Central Statistical Office in Poland (CSO) every two years for entities with more than nine employees. We apply quantile regression and the Ñopo decomposition method to address several methodological problems of wage differential analysis. We show that, after controlling for structural differences in employment, there is no clear trend in the evolution of the adjusted public-sector wage premium in Poland in recent years. The parametric approach indicates a positive and growing premium, with significant variations across different parts of wage distribution. The non-parametric approach yields different results, indicating a negative premium with no clear trend in the period 1999–2012, with a declining public-sector wage penalty in recent years. |
| Keywords: | wage differentials, public sector wages, quantile regression, Ñopo decomposition, Poland |
| JEL: | J31 J45 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2016-13&r=tra |
| By: | Malatyev, A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Belev, S. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | This paper presents an analysis of the extent and specificity of procurement centralization in Russia in 2014, as well as an attempt by the example of the individual items purchased nomenclature evaluate the savings from consolidation hosted the state order. |
| Keywords: | procurement centralization, Russia, 2014 |
| Date: | 2016–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:543&r=tra |
| By: | Tang, Liqun; Zhou, jiehong; Yu, Xiaohua |
| Abstract: | Climate extremes, characterized by droughts and floods, have become one of the major constraints to sustainable improvement of rice productivity. Variety choice, considered as one of the main adaptation measures, could help farmers reduce yield loss resulting from these extremes. Based on a three-year panel survey of 1,080 Chinese rice farms in major rice producing provinces, we study the effect of adopting weather tolerant variety rice as a main adaptation measure against climate extremes. Taking into account the endogeneity of adoption behavior, we employ an endogenous switching regression to separately estimate the treatment effects of adoption for adopters and non-adopters. We find that farmers who adopted the new variety increased yield by 537 kg/ha (about 7%), compared with the counterfactual case of no-adoption. In contrast, the farmers who did not adopt, would increase rice yield by 272 kg/ha (about 4 %) if they adopted, much smaller than the adopters. However, adoption of new variety demands more knowledge, better education, more intensive management, and higher seed costs. As a policy implication, expansion of public extension services could help relax these restrictions. |
| Keywords: | Climate extremes, rice, weather tolerant variety, yield, Crop Production/Industries, Food Security and Poverty, Production Economics, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235226&r=tra |
| By: | International Monetary Fund |
| Abstract: | Thanks to sound macroeconomic management and an overall favorable business climate, income convergence with Western Europe is advancing. In 2015, sharply contracting exports to Russia temporarily dragged down growth. Ensuring good economic progress over the medium term requires continued productivity improvements, safeguarding competitiveness in a tightening labor market, and beginning to address high income inequality. |
| Keywords: | Article IV consultation reports;Economic growth;Fiscal consolidation;Fiscal reforms;Productivity;Income distribution;Labor market reforms;Financial sector;Economic indicators;Balance of payments statistics;Debt sustainability analysis;Staff Reports;Press releases;Lithuania; |
| Date: | 2016–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:16/125&r=tra |
| By: | Paul Hubbard (Crawford School of Public Policy) |
| Abstract: | China’s National Bureau of Statistics releases data for China’s industrial sector, fixed asset investment and real estate investment both according to the enterprise’s official registration status, and according to whether the controller of the enterprise is the state. For most applications data for ‘state owned and state-holding companies’ based on the control concept is appropriate, as this includes coverage of SOEs’ listed- and unlisted-subsidiaries. These data show that less than a third of Chinese industrial output, fixed asset investment, and less than twenty per cent of Chinese real estate investment is carried on by companies that are controlled by the state. A broader definition to cover all state ownership would include enterprises that are not ‘state controlled’ but nevertheless include state capital or investment from SOEs. This would capture some additional proportion of the limited liability companies, joint-ventures and shareholding corporations that are in mixed ownership. |
| Keywords: | China state owned Enterprises, industrial output, fixed asset investment, real estate investment, Chinese economic statistics |
| JEL: | E01 L32 H83 C82 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:eab:wpaper:25575&r=tra |
| By: | Dory Tibor (Szechenyi Istvan University); Milena Slavcheva (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, Hungary |
| JEL: | I20 O30 Z18 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101194&r=tra |
| By: | Yu, Yi; Willis, David |
| Abstract: | China introduced a systematic pork reserve program in 2009 to decrease pork price volatility. The price stabilization effectiveness of the reserve program is unknown. Two econometric procedures are used to analyze the effectiveness of the program in reducing pork price volatility. The first approach is an autoregressive conditionally heteroskedastic (ARCH) regression model estimated using monthly national average wholesale pork price data for January 2000 to July 2015. Price volatility is modeled as the difference in monthly price in consecutive months. The ARCH procedure controls for domestic production, consumer income and seasonality. A difference in difference (DD) regression procedure, compliments the ARCH procedure, to further investigate the relationship between the reserve policy and price volatility. Two DD analyses are conducted. The first analysis measures monthly price volatility in terms of absolute differences, and the second in absolute percentage change differences. Both the ARCH and DD approaches find that pork price volatility increased, not decreased, after the introduction of the reserve program. |
| Keywords: | Pork Price Stabilization, Reserve Policy, ARCH, Difference in Difference, China, Agricultural and Food Policy, Demand and Price Analysis, Q11, Q18, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235829&r=tra |
| By: | Hou, Lingling; Hoag, Dana; Keske, Catherine |
| Abstract: | This paper estimates the shadow price of CO2 from burning crop residue in the Chinese agricultural sector and explores the policy implications for decision makers. Using a parametric translog directional distance function, we evaluate the technical efficiency and shadow prices of CO2 reduction for 7 major maize provinces in China from 1996-2013. Our results show that crop yield, cost of total inputs, and percentage of burnt crop residue account for 30%, 10% and 20% of the inefficiency, respectively. The shadow price of CO2 from burning crop residue is estimated to range from 0-1.368 yuan/ha (or US$210.5/t) with an average of 0.496yuan/kg (or US$76/t). Further analysis indicates that the average efficiency will increase by 9% if conservation practices are adopted by assuming 10% decrease in yield and 50% decrease in burnt crop residue under conservation practices compared to conventional practices. The shadow prices in these two cases imply that the whole society will benefit if the government spends less than 201 yuan/ha to promote adoption of conservation practices. This government offset would compensate farmers for yield reductions in favor of implementing conservation practices that would substantially reduce CO2 emissions. |
| Keywords: | shadow prices, greenhouse gases, conservation tillage, distance function, China, Agricultural and Food Policy, Environmental Economics and Policy, Production Economics, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235742&r=tra |
| By: | Li, Chenguang; Bai, Junfei; Gao, Zhifeng |
| Abstract: | In recent years more attention has been placed to the use of “geographical origin” labels by regulators, marketers, and consumers for food products, largely due to increased incidences of food related scares and the shift of traditional agricultural price-support programs to promotion of value-added and high quality products via labels and certifications (Unterschultz 1998; Gilmore 2002; Clemens and Babcock 2004; Menapace et. al, 2011). The underline economic motivation of product labeling is to facilitate the resolution of market failures associated with high-quality product under asymmetric information (Akelof, 1970). Because geography is often correlated with a product’s overall quality, “geographical origin” labels is perceived by consumer as a signal of quality, especially under situations of lacking prior consumption experience or the quality of the product is not easily observable. Market failures due to asymmetric information are often seen when high-quality products enter into “new markets” where recognition rates among consumers are low. As western countries remain mired post financial turmoil, the continuous economic growth in emerging markets have made emerging markets increasingly relevant to international producers and marketers. One significant challenge in these “new markets” is that many of the renowned national or regional brands are new to consumers. Under this situation, the use of “geographical origin” labels for new comers to overcome asymmetric information problem in emerging markets plays an important role. The European Union has long policy tradition to support “geographical origin” labels of member and finance product promotions to third countries. Over the past fifteen years, around €50 million was provided by the European commission annually in terms of co-financing of promotional programs, 10% of which has been used for supporting “geographical origin” labels. China, the world’s largest economy and the most populous nation, holds significant opportunities for international producers and exporters. However, with intense competitions from both domestic and international players, promoting international products in China is no easy task. One recent promotional program carried out by the European Commission was the launch of a ‘Tastes of Europe’ campaign in China in May 2015. The campaign aims to create awareness among the Chinese consumers about the characteristics and benefits of Geographical Indications for food products as a guarantee of authenticity, quality and safety, and ultimately to drive consumer purchase of these products. Yet in order to gain broader consumer recognition, an “umbrella” message, i.e., “Taste of Europe”, was used to carry a generic geographical origin message to reach consumers (EU Commission, 2015) . There are a few key questions to ask under this situation: For policy makers, whether such generic origin message can carry sufficient value to promote member country products, which essentially validate the effectiveness of the policy. For producers and marketers in member countries, what are the advantages and disadvantages to be associated with the European umbrella message, and whether the use of generic regional labeling compliments or compromises country specific labeling? Answers to the above questions rely on the evaluation of consumer response to the product quality signals associated with different geographical origin messages. A consumer survey on geographic labeling for imported dairy products was carried out in Beijing, China in May 2015 to tackle above-mentioned questions. We chose dairy research product for this study for several considerations: the strategic importance of dairy products to EU exporters and policy makers; the unsettled debate on mandatory COO labeling for dairy products; the leading role of China as a key emerging market for global dairy exporters; and the increased opportunity for international dairy exporters to use COO labels as quality signals in China market. One contribution of the paper is the comparison of the COO effect between generic regional label and country specific origin label. Under the “products of EU” range, we used “product of Ireland” as a case study for the country specific origin label. Information on consumer demographic, dairy consumption, safety perceptions, knowledge on Ireland and Irish products, as well as willingness to pay (WTP) for different geographic labeling and product attributes were collected through 307 face-to-face interviews. WTP was elicited using double-bounded contingent valuation method, and estimated with maximum log-likelihood function. Our study showed slightly higher consumer WTP for “product of EU” label compared to “product of Ireland” label, which seems to suggest the use of EU label as quality signal adds value to Irish products. But we also found that consumers have much higher WTP for grass-fed and sustainable dairy production, compared to product of EU labeling. Grass-fed dairy production and agricultural sustainability are two main characteristics of Irish dairy industry, yet such characteristics of Irish dairy are not registered in Chinese consumers’ minds. Using EU label may have an immediate value to promote Irish products, however our study suggested that promoting country specific origin labeling with product differentiation and brand establishment can be more beneficial in the long run. Although the study uses only one country as an example to evaluate and compare the generic origin labeling and country specific labeling, the study holds broader implication for many other countries, products, and marketers facing similar challenges. |
| Keywords: | Geographical origin label, GI, COO, Consumer studies, WTP, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, International Relations/Trade, |
| Date: | 2016–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235843&r=tra |
| By: | Comunale, Mariarosaria |
| 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 dynamic frameworks, also controlling for the presence of cross-sectional dependence and checking specifically for the role of exchange rate regimes, capital flows and global factors. 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 and the 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: | F31 F32 C23 |
| Date: | 2015–10–07 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2015_028&r=tra |
| By: | Kleeva, Lyudmila Petrovna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kleev, Ivan Vladimirovitch (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Nikitova, Anna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Krotov, Alexander Yurievitch (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | We investigate the impact of regional research and educational facilities for the development of Russia and Kazakhstan. Revealed their negative impact on the development of depressed regions, and this applies not only underdeveloped complexes Kostroma (Russian Federation) and Kyzylorlinskoy (Republic of Kazakhstan) regions, but also a well-developed scientific and educational complex in Irkutsk region. Research has shown that this paradox is due to the fact that the development of science and education in the region is associated not only with all the elements of regional research and innovation system (including research and development, education, innovation infrastructure, real production and regional governments), but and with the elements of research and development and education of a higher level: the national economy, and even megaekonomiki. Because communication within the spheres of science and education are professional, they're pretty close. Therefore, in the case where there is no effective system of functioning of the regional research and innovation system as a whole, the achievements of science and education sector (skilled workers) as a result of professional contacts within the framework of science and education leave the region, reducing its capacity, and are used in other regions and countries. The findings make it possible to generate proposals for a regional research and innovation policy. |
| Keywords: | Russia, Kazakhstan, depressed regions, development, innovation |
| Date: | 2016–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:541&r=tra |
| By: | Bukvić, Rajko; Zakharov, Vladimir; Kartavykh, Marina |
| Abstract: | Russian Abstract. В статье раскрыты эколого-экономические механизмы регулирования выбросов парниковых газов. Раскрыты в историческом аспекте усилия мирового сообщества в отношения проблемы глобального потепления климата. В заключении приведены сценарии развития событий относительно эмиссии парниковых газов для России. English Abstract. In article ekologo-economic mechanisms of regulation of emissions of greenhouse gases are opened. Are opened in historical aspect of effort of the world community in the relations of a problem of global warming of climate. Scenarios of succession of events concerning emission of greenhouse gases for Russia are provided in the conclusion. |
| Keywords: | Киотский протокол, парниковые газы, природопользование. Kyoto Protocol, greenhouse gases, environmental management. |
| JEL: | H23 K32 L51 Q53 Q56 |
| Date: | 2015–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71603&r=tra |
| By: | Melo, Grace; Ames, Glenn |
| Abstract: | This study employs panel data to analyze the economic factors that drive rural-urban migration and agricultural labor supply within China. The results indicate that higher wages in urban areas, especially in the construction sector, was associated with rural-urban migration and a decline in the agricultural labor supply. The rural-urban wage differential in construction reflects the housing boom in cities set off by rapid urbanization and government policies. Most importantly, our findings raise concerns about the negative impact of rural-urban migration on agriculture in China. Policies that impact labor supply, especially in times of rapid urban development and low diffusion of agricultural technology, are critical to Chinese economic development and stability. |
| Keywords: | Internal migration, agricultural labor, Agricultural and Food Policy, Labor and Human Capital, O15, R23, J43, |
| Date: | 2016–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235508&r=tra |
| By: | Dimitrova, Anna; Egenhofer, Christian; Behrens, Arno |
| Abstract: | Regional Energy Policy Cooperation has now gained political traction in the EU as a tool to advance the EU’s energy objectives. Cooperation and coordination is meant to facilitate the convergence of markets and policies, so while the creation of one EU Internal Energy Market remains the goal, regional cooperation is the tool with which to achieve that goal. Cooperation could become the stepping-stone towards the completion of the Internal Energy Market within the European 2030 climate and energy framework and beyond. The Energy Union concept recognises the importance of regional integration. For South East Europe, regional energy policy cooperation is seen as a means to address region-specific challenges such as security of supply, energy imports dependence, affordability, but also to build trust. South East Europe’s hitherto untapped or underutilised potential for renewable energy, hydro – also for storage – and the huge potential for energy efficiency improvements offer a great opportunity to solve the region’s challenges. |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:11451&r=tra |
| By: | Andric, Vladimir; Arsic, Milojko; Nojkovic, Aleksandra |
| Abstract: | We focus on the response of primary fiscal balance to interest payments and borrowing costs on Serbian public debt before and in the aftermath of the global financial crisis. Our analysis reveals: i) policy makers financed up to 50% of each percentage point increase in interest payments to GDP ratio with new public debt issuance; ii) the government has responded to rising interest payments and borrowing costs by reducing primary fiscal balance from the onset of the global financial crisis; iii) the response of primary fiscal balance to interest payments mimics the response of primary fiscal balance to the costs of borrowing; iv) fiscal austerity measures adopted after the breach of fiscal rule for public debt have been insufficient to stabilize fiscal policy stance in Serbia. |
| Keywords: | Serbia,augmented fiscal reaction function,global financial crisis |
| JEL: | C54 H63 P20 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:141322&r=tra |
| By: | International Monetary Fund |
| Abstract: | Slovenia’s output contracted deeply in the wake of the 2008 financial crisis, which spilled into a bank and sovereign debt crisis in 2012–13. A costly bank recapitalization, alongside restored sovereign market access, stabilized the financial system and helped launch an export-led recovery in 2014–15. |
| Date: | 2016–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:16/121&r=tra |
| By: | Wei Jin (School of Economics, UNSW Business School, The University of New South Wales and School of Public Policy and Management, Zhejiang University); ZhongXiang Zhang (College of Management and Economics, Tianjin University) |
| Abstract: | Whether China continues its business-as-usual investment-driven, environment-polluting growth pattern or adopts an investment and innovation-driven, environmentally sustainable development holds important implications for both national and global environmental governance. Building on a Ramsey-Cass-Koopmans growth model that features endogenous technological change induced by R&D and knowledge stock accumulation, this paper presents an exposition, both analytically and numerically, of the mechanism underlining China’s economic transition from an investment-driven, pollution-intensive to an investment and innovation-driven, environmentally sustainable growth path. We show that if R&D technological innovation is incorporated into China’s growth mechanism, then at some tipping point in time when marginal welfare gain of R&D for knowledge accumulation becomes equalized with that of investment for physical asset deployment, China’s economy will launch capital investment and R&D simultaneously and make a transition to a sustainable growth path along which consumption, capital investment, and R&D have a balanced share of 5: 4: 1, consumption, capital stock, and knowledge stock all grow at a rate of 4.9%, and environmental quality improves at a rate of 2.5%. In contrast, if R&D technological innovation is not harnessed as a new growth engine, then China’s economy will follow its business-as-usual investment-driven growth path along which standalone accumulation of dirty physical capital stock will lead to an more than 200-fold increase in environmental pollution. |
| Keywords: | Endogenous Technological Change, Sustainable Development, Economic Growth Model, China’s Economic Transition |
| JEL: | Q55 Q58 Q43 Q48 O13 O31 O33 O44 F18 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.24&r=tra |
| By: | Shumilov, Andrei; Balatsky, Evgeny |
| Abstract: | Rapidly increasing interest of Russian academic community in bibliometric systems makes it more and more important for researchers to understand properly their advantages and drawbacks. In this study we explore capabilities of popular international electronic library of research materials in economics RePEc and issues of its rankings’ construction. We also analyze positions of Russian authors, institutions, journals and working paper series in various international and regional RePEc rankings during a period since 2010. Ways of improving rankings of Russian authors and series in RePEc are reported. We then discuss major instances of manipulation of bibliometric indicators, and give suggestions on eliminating distorting influence of some of them on rankings. Our analysis shows that RePEc, which earlier covered only a small part of Russian authors, who published in foreign journals, now embraces all segments of Russian economists’ community. Having unique functional capabilities, RePEc system is likely to become the leading integrator of information on economic research in Russia in the nearest future. This, in turn, would allow giving objective estimates of the role of the Russian economic science at the international level. |
| Keywords: | economics in Russia; bibliometrics; RePEc; ranking economists; ranking journals; ranking research institutions; Russia |
| JEL: | A11 A13 A14 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70956&r=tra |
| By: | Silvana Malle (Department of Economics (University of Verona)) |
| Abstract: | Cooperation between Russia and China is a slow process that both countries are pursuing in a difficult context moving from different interests. Russia moves eastwards in search of new partners and tries to foster the development of the Far East. China seeks faster routes to Europe through Central Asia. Given the participation of many actors, state agencies and private companies, negotiations of the terms of trade and investment are laborious. Joint or separate participation in financing require solid legal foundations. Institutions need to adapt. Both countries want to emancipate themselves from the dominance of the dollar in international payments. Domestic national payment systems have been created and the use of own currencies in mutual transactions is on the way in border regions. Some deals, such as in gas and high speed transport, have been successfully concluded, but progress is slow not least because the countries are competitors in Asia. China is stronger in economic terms, Russia’s military power remains unchallenged. Policy dialogue is needed. The Eurasian Economic Union and the Shanghai Cooperation Organisation may provide convenient arenas for an exchange of views ahead of possible broader agreements. |
| Keywords: | Russia, China, trade policy, transitional economies, industrial policy |
| JEL: | F13 P27 L52 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:09/2016&r=tra |
| By: | Olga Popova |
| Abstract: | Abstract This paper provides novel evidence on differences in health outcomes of children in religious and non-religious families in Russia. The health indicators analyzed include the subjective health status and anthropometric outcomes. The endogeneity of religiosity is accounted for. The empirical findings suggest that if both parents are religious, their religiosity does not affect children’s height-for-age, but increases children’s body mass index and subjective health. Father’s religiosity has a stronger salutary effect than mother’s religiosity. In fatherless families, children’s health is more strongly affected by mother’s education and employment status than in two-parent families. All findings are stronger for older children. These results underscore the importance of considering both maternal and paternal characteristics for family-oriented policies that target the protection of children’s health. Also, policies protecting children’s health should target single mothers as a particularly vulnerable social group. |
| Keywords: | children, health, religiosity, parental beliefs, Russia |
| JEL: | I15 J13 O12 P36 Z12 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ost:wpaper:356&r=tra |
| By: | Zhang, Man; Jin, Yanhong; Zheng, Fengtian |
| Abstract: | Food safety receives an escalating attention since the 2008 milk scandal in China. Chinese government faces a great challenge to safeguard the safety of food supply chain due to the significant fermentation of producers and weak institutional resources to monitor and enforce food safety standards. Chinese farm households often practice two separate production systems for the same crop for the market and self-consumption separately and, thus the so called “One Farm Household, Two Production Systems” (OFH-TPS) gain the popularity in the recent years. This study provides both a theoretical framework to model the OFH-TPS decision and an empirical analysis to identify factors affecting the OFH-TPS decision using household survey data. We find that information asymmetry of product quality and measures to reduce the asymmetry such as product inspections and certifications play an important role in the OFH-TPS decision. In particular, product inspections conducted by industry associations, agricultural cooperatives, or farmer themselves curb the adoption of the TFH-TPS, whereas government inspection has no statistically significant effect. Farmers who sell green foods are less likely but organic farmers are more likely to adopt the OFH-TPS, which echoes the expectation based on the theoretical model. We also find that training of pesticide applications reduce the adoption of the OFH-TPS, but the perceived adverse effects of pesticide applications have no statistical effects. Furthermore, farmers who uses highly toxic and banned pesticides and/or who perceive poor food safety of the local markets are more likely to adopt the OFH-TPS. This study provides rich policy implications. First, calling the engagement of private sector to safeguard food safety and improving the efficacy of government inspection are critical to improve food safety. Second, education on pesticide applications is critical, especially among retailers of pesticides. |
| Keywords: | food safety, “one household, two production systems”, non-separable model, inspection, certification, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235959&r=tra |
| By: | Petrick, Martin; Pomfret, Richard |
| Abstract: | Agriculture plays an important part in Kazakhstan´s self-image, and continues to be a significant economic sector, employing about a third of the workforce. In the two decades since independence, agriculture has experienced dramatic swings in performance and in public policy. During the 1990s the sector suffered from external shocks, reduced public support and inchoate land tenure reform, while providing a safety net for families suffering from the transitional recession. Since the turn of the century, the booming economy has seen ruralurban migration and substantial public funds devoted to the agricultural sector. This article illustrates the steps taken to consolidate and improve Kazakhstan´s position as a major agricultural producer and exporter, while also highlighting the shortcomings of current policies. It places Kazakhstan´s agricultural policy evolution in the broader context of political independence from the Soviet Union and the general course of economic reforms. We highlight the driving forces of agricultural policy evolution from a political economy perspective and give an overview of specific policy measures. |
| Abstract: | Die Landwirtschaft spielt eine bedeutende Rolle in Kasachstans Selbstverständnis und stellt mit einem Drittel der Beschäftigten einen wichtigen Wirtschaftssektor dar. Seit der Unabhängigkeit erfuhren sowohl der Agrarsektor selbst als auch die Agrarpolitik dramatische Umschwünge. Während der 1990er Jahre litt der Sektor unter externen Schocks, einer verringerten staatlichen Unterstützung und einer unausgegorenen Bodenreform. Gleichzeitig stellte er ein Sicherheitsnetz für die vom Transformationsprozess gebeutelten Familien dar. Nach der Jahrtausendwende führte das starke Wirtschaftswachstum zu ländlicher Abwanderung und einer starken Ausweitung der staatlichen Hilfen für den Agrarsektor. Dieser Beitrag zeigt auf, wie Kasachstan zu einem wichtigen globalen Getreideerzeuger und -exporteur wurde, und macht deutlich, wo die Schwächen der derzeitigen Politik liegen. Er verortet die Entwicklung der kasachischen Agrarpolitik in einem breiteren Kontext der politischen Unabhängigkeit von der Sowjetunion und dem übergreifenden Gang der Wirtschaftsreformen. Die Autoren arbeiten die politökonomischen Triebkräfte dieser Entwicklung heraus und geben einen Überblick über aktuelle politische Maßnahmen. |
| Keywords: | agricultural policy,agriculture in transition,political economy,Kazakhstan,Agrarpolitik,Landwirtschaft im Transformationsprozess,politische Ökonomie,Kasachstan |
| JEL: | P26 P28 Q15 Q18 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iamodp:155&r=tra |
| By: | Fungáčová, Zuzana; Nuutilainen, Riikka; Weill, Laurent |
| Abstract: | This paper examines how reserve requirements influence the transmission of monetary policy through the bank lending channel in China while also taking into account the role of bank ownership. The implementation of Chinese monetary policy is characterized by the reliance on the reserve requirements as a regular policy tool with frequent adjustments. Using a large dataset of 170 Chinese banks for the period 2004–2013, we analyze the reaction of loan supply to changes in reserve requirements. We find no evidence of the bank lending channel through the use of reserve requirements. We observe, nonetheless, that changes in reserve requirements influence loan growth of banks. The same findings hold true for other monetary policy instruments. Further, we show that the bank ownership format influences transmission of monetary policy. |
| Keywords: | Chinese banks, bank lending channel, bank ownership |
| JEL: | E52 G21 P52 |
| Date: | 2015–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2015_026&r=tra |