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on Transition Economics |
| By: | Urban Sila; Hermes Morgavi; Jeanne Dall'Orso (OECD) |
| Abstract: | Slovenia’s living standards measured in GDP per capita are currently some 20% below the EU15 average and have not yet reached their pre-crisis level. Given that most of this gap comes from differences in labour productivity, the paper looks at productivity trends and sources of productivity growth over past two decades. The largest labour productivity lags are in agriculture and mining and utilities, but lags are also present in services sectors such as information and communication activities, financial and insurance activities and professional services. The importance of the high and medium high technology manufacturing has risen in the last two decades, and their share in total manufacturing value added is relatively high in Slovenia. Growth accounting shows that total factor productivity (TFP) and physical capital were the main sources of economic growth before the crisis in Slovenia, while the contribution of human capital was low. With the crisis, however, the GDP growth turned highly negative due to large drops in TFP and the labour input contribution. The contribution from physical capital was also reduced, reflecting subdued investment activity. Slovenia has a high level of state control in the economy and low foreign direct investment (FDI). Using two different panel datasets – one spanning the OECD countries and another spanning Slovenia's economic activities - we find that improving both measures could significantly raise productivity. Tendances de la productivité et les sources de croissance de la productivité en Slovénie Le niveau de vie de la Slovénie, mesuré en PIB par habitant, est actuellement inférieur d'environ 20% à la moyenne de l'UE15 et n'a pas encore atteint son niveau d'avant crise. Étant donné que la plupart de cet écart provient des différences de productivité du travail, ce document examine les tendances et les sources de croissance de la productivité au cours des deux dernières décennies. Les plus grands décalages de productivité sont présents dans l'agriculture, l’industrie minière, et les services publics. Des retards sont également présents dans certaines activités de services (information et communication, finance et assurance, et les services professionnels). L'importance de la haute et moyenne-haute technologie dans l’industrie manufacturière a augmenté au cours des deux dernières décennies, et leur part dans la valeur ajoutée manufacturière totale est relativement élevé en Slovénie. La comptabilité de la croissance montre que la productivité totale des facteurs (PTF) et le capital physique étaient les principales sources de croissance économique avant la crise en Slovénie, pendant que la contribution du capital humain était faible. Cependant avec la crise, la croissance du PIB est devenue fortement négative en raison de baisses élevées de la PTF et de la contribution du facteur travail. De même la contribution du capital physique a également été réduite, reflétant la faiblesse des investissements. La Slovénie est caractérisée par un haut niveau de contrôle de l'État dans l'économie et peu d’investissements étrangers directs (IED). À l’aide de deux ensembles de données de panel différents - l'un couvrant les pays de l'OCDE et l'autre les activités économiques de la Slovénie - nous constatons que l'amélioration des deux mesures pourrait augmenter significativement la productivité. |
| Keywords: | foreign direct investment, growth accounting, high technology manufacturing, productivity |
| JEL: | E24 J24 O47 |
| Date: | 2017–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1368-en&r=tra |
| By: | Rong, Zhao; Wu, Xiaokai; Boeing, Philipp |
| Abstract: | Monitoring by institutional investors can act as an important mechanism to promote firm innovation. By investigating Chinese listed firms' patenting between 2002 and 2011, we find that the presence of institutional investors enhances firm innovation. Consistent with the monitoring view, we further find that (1) the effect of institutional investors on firm patenting mainly comes from mutual funds; (2) the effect is more pronounced when market competition is more intense; (3) the effect exists among private- and minor state-owned enterprises, but not among major state-owned enterprises. The above findings are robust when innovation quality is examined. |
| Keywords: | Institutional investor,Firm innovation,Patenting,Mutual funds,China |
| JEL: | G20 G32 O31 O32 O33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17005&r=tra |
| By: | László Békési (Magyar Nemzeti Bank (Central Bank of Hungary)); Zsolt Kovalszky (Magyar Nemzeti Bank (Central Bank of Hungary)); Tímea Várnai (Magyar Nemzeti Bank (Central Bank of Hungary)) |
| Abstract: | The purpose of this paper is to illustrate the economic impact mechanism of the secession of Great Britain from the European Union (Brexit) on the Hungarian economy, and to quantify the domestic growth risks. Several international studies have dealt with this topic using partial analysis and model based simulations, but only partial analyses are available regarding the Hungarian economy. Our analysis provides a broader picture by using the new macroeconomic forecast model of the MNB. Upon determining the exogenous assumptions in our simulations we relied on the central bank experts’ broad knowledge. The applied model handles the wealth heterogeneity in the decision making processes of the households and the corporate sector. This feature makes the model suitable for explaining prolonged after-crisis recovery and the role of the financial accelerator feedback mechanism. In the course of illustrating the economic impact mechanism we show the main channels through which Brexit can spread over to Hungarian economic growth. Besides the primary channels, our analysis includes the secondary channel effects increasingly in the spotlight: we investigate the shock resilience ability of the financial system, and analyze the potential room for manoeuvre for fiscal policy. |
| Keywords: | Macroeconomic modelling, Simulation, Alternative Scenarios, Brexit, Economic Outlook |
| JEL: | E27 E66 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mnb:opaper:2017/125&r=tra |
| By: | Vuciterna, Rina; Thomsen, Michael; Popp, Jennie; Musliu, Arben |
| Abstract: | Raspberry production is a growing industry in Kosovo. In addition to private investments, this growth has been supported by grants, subsidies, and direct investment from international donor organizations and governmental institutions. At present, most of the commercially produced raspberries in Kosovo are produced on small farms, harvested by farmers and packed manually by collection centers, and then sold as frozen for the export market. The long-term viability and continued growth of raspberry production in Kosovo depends on the industry being able to compete in export markets and hold its own against production regions in Poland, Serbia, and Russia. Our study measures the efficiency of Kosovo raspberry producers with an aim towards enhancing industry competitiveness. We collected primary data on raspberry farmers in Kosovo during the summer of 2016. Using these data, we examine producer efficiency with an input oriented data envelopment analysis. Our findings suggest that efficiency improves with production experience and that outreach efforts could emphasize labor management. |
| Keywords: | Raspberries, Kosovo, data envelopment analysis, efficiency measurement, Agribusiness, Production Economics, Q12, D24, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252770&r=tra |
| By: | Alexander D. Gromov (National Research University Higher School of Economics) |
| Abstract: | In Russia, resources available for higher education institutions (HEIs) have been reduced while the expectations of their results have grown. This raises questions about the efficiency of Russian HEIs and the factors influencing it. In this paper, estimations of the efficiency of Russian HEIs for the 2012/13-2014/15 academic years and its determinants are presented. Ratios of weighted outputs and weighted inputs constructed with data envelopment analysis (DEA) are used as the HEIs efficiency measure. Total financial resources of HEIs are used as the input and measures of education and research results are used as the outputs. For the analysis of changes in efficiency the Malmquist index is used. The relation between efficiency scores and the characteristics of HEIs are investigated using a Tobit regression. This research is based on data about 120 public HEIs collected from various sources. The results show that the potential for an increase in the efficiency still remains. An outward shift of the efficiency frontier, i.e. a technological improvement, was found. According to estimations, most institutions operate at decreasing returns to scale and reducing their size will increase their efficiency. However, the substantial growth of the number of HEIs with increasing returns to scale implies that the policy of resource consolidation could be a reasonable response to current challenges. A positive relationship between HEIs efficiency and the diversification of fields of study was revealed. |
| Keywords: | higher education, efficiency analysis, data envelopment analysis, returns to scale, Malmquist index. |
| JEL: | I21 I22 I23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:40edu2017&r=tra |
| By: | Ye Qi; Nicholas Stern; Tong Wu; Jiaqi Lu; Fergus Green |
| Abstract: | Slowing GDP growth, a structural shift away from heavy industry, and more proactive policies on air pollution and clean energy have caused China's coal use to peak. It seems that economic growth has decoupled from growth in coal consumption. |
| Keywords: | Climate-change mitigation; Energy efficiency; Energy supply and demand; Sustainability |
| JEL: | N0 |
| Date: | 2016–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:67503&r=tra |
| By: | Zhou, Mo; Nelson, Robert |
| Abstract: | This study constructs wage equations according to Mincer earnings function for men and women separately, and the equations are estimated by OLS and Heckman selection regression for eleven developing countries. Our results show that the wage equation estimates for five countries including Ukraine, Sri Lanka, Macedonia Lao and Yunnan, China have the selection bias. Comparing the estimates of female wage equations and male wage equations, we find that better education raise wages for women than men, and women who work as high skill white collar receive more benefits than female. In terms of gender wage gap analysis, we conduct the Blinder-Oaxaca decomposition for each of countries by the estimates of OLS regression and Heckman regressions. The results reveal a relatively high level of gender wage discrimination in Yunnan province, Macedonia, Sri Lanka and Ukraine. For most of countries, the unexplained wage gap contributes more to the total wage gap, comparing with the explained wage gap. However, this is no strong evidence to show that the wage discrimination is correlated with national economic development. |
| Keywords: | Gender wage gap, Discrimination, Developing countries, Labor and Human Capital, J31, C36, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252727&r=tra |
| By: | Nguyen, Huu Chi (University of Paris 13); Nordman, Christophe Jalil (IRD, DIAL, Paris-Dauphine) |
| Abstract: | Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households' and entrepreneurs' social networks and business performance. We address two related questions. One first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on the business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realize a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We stress the importance of professional networks for successful entrepreneurship. |
| Keywords: | family labour, kinship and ethnic ties, sharing norms, social network capital, Informality, household business, panel, Vietnam |
| JEL: | D13 D61 O12 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10482&r=tra |
| By: | Meng, Xin (Australian National University); Xue, Sen (Jinan University) |
| Abstract: | Over the past two decades, more than 160 million rural residents have migrated to cities in China. They are usually separated from their rural families and work in an unfamiliar, and sometimes hostile, city environment. This paper investigates to what extent city social networks alleviate mental health problems among these migrants. Using the longitudinal migrant survey from the Rural-to-Urban Migration in China (RUMiC) project, we find that larger social networks are significantly correlated with fewer mental health problems in both OLS and fixed effect estimates. To mitigate the endogeneity issue, we use past rainfall in the home county and the distance between home village and the closest transportation centre as the instrument variables for city social networks. The instrument variable estimates and fixed effect instrumental variable estimates suggest that an additional person in the city social networks of migrants reduces GHQ 12 by 0.12 to 0.16 Likert points. The results are robust for migrants who are less educated, who work long hours and who do not have access to social insurances in the city. |
| Keywords: | mental health, social networks, migration, China |
| JEL: | I12 I18 J61 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10481&r=tra |
| By: | Dobrin, Kirill (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration); Zolotareva, Sofia (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration) |
| Abstract: | For many years in Russia are trying different ways to increase productivity. Leaders set the new equipment, try to innovate and develop the most effective control system. Often, however, do not achieve the desired effect the performance of the new equipment is much lower than estimated, the output of the production lot of marriage, are not reduced, and production costs. In order to achieve productivity growth in Russia, it should be concerned not only the state, but also every single company. Diagnosing problems, development of methods for increasing productivity and implementing them in practical work is a matter of time-consuming and costly. In this regard, it is necessary to use modern mechanisms for effective motivation. Increase productivity and motivation is not just staff. However, there are mechanisms and models to do this. For example, in our opinion, this may contribute to the concept of lean manufacturing. In all enterprises in the organization of production activities there are losses directly affecting the productivity in the organization and does not benefit the final consumer. Implementation of lean manufacturing for domestic enterprises to identify and reduce the loss of data will improve productivity at the country level. Keywords : productivity, efficiency, lean manufacturing, motivation of personnel, material and technical base, organization of labor, the cost of production. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:p16102&r=tra |
| By: | Maciej Lis; Agata Miazga; Katarzyna Salach |
| Abstract: | The aim of this paper is to explain the regional variation of fuel poverty in Poland. The significant spatial variation of fuel poverty stems from differences in the buildings’ characteristics, income and household composition as well as the diverse advancement of urbanisation processes. The variance analysis permit the conclusion that all these factors influence both energy affordability (LIHC) and thermal comfort (subjective) dimension of fuel poverty. Energy affordability depends mainly on household’s income, whereas lack of thermal comfort is mainly due to low energy efficiency of a building. Even after factoring out the influence of these three factors there still remains a significant unexplained regional variation of lack of thermal comfort. We show that this unexplained variation is linked with the regional disparities of prices and outdoor temperatures. |
| Keywords: | fuel poverty, LIHC, thermal comfort, energy affordability, regional variation, degrees of urbanisation |
| JEL: | I32 Q40 R29 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp092016&r=tra |
| By: | Dobrin, Kirill (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration); Davydenkova, Anastasia (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration); Zakharova, Irina (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration) |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:p16101&r=tra |
| By: | Maciej Lis; Katarzyna Salach; Konstancja Swiecicka |
| Abstract: | The purpose of the paper is to quantify the heterogeneity of causes and symptoms of energy poverty in order to provide guidance for policies aimed at fuel poverty alleviation. We quantify the diversity of the households in Poland in terms of energy efficiency and income using cluster analysis. We have identified twelve types of households. Fuel poverty in terms of either affordability measure (LIHC – Low Income High Costs) or subjective measure concentrates in six of them. Fuel poverty measured with the LIHC concerns mainly lower-income families with children, living in large houses in rural areas. The subjective measure (lack of thermal comfort indoors) points to energy deprivation in city households occupying dwellings in pre-war tenement houses and poor rural inhabitants living in old, run-down houses. We finally link the types of the fuel poor with their behavioural characteristics identified by the qualitative studies. Both the strategies adopted by the poor and insufficient central and local policies mitigating economic transition are highly relevant factors for shaping policies aimed at eradicating fuel poverty. |
| Keywords: | fuel poverty, energy efficiency, cluster analysis, Household Budget Survey, Low Income High Costs |
| JEL: | I32 Q40 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp082016&r=tra |
| By: | Harald Hau (University of Geneva, Swiss Finance Institute, Centre for Economic Policy Research (CEPR), and CESifo (Center for Economic Studies and Ifo Institute)); Yi Huang (Graduate Institute of International and Development Studies); Gewei Wang (Graduate Institute of International and Development Studies (IHEID)) |
| Abstract: | The large regional variation of minimum wage changes in 2002-08 implies that Chinese manufacturing firms experienced competitive shocks as a function of firm location and their low-wage employment share. We find that minimum wage hikes accelerate the input substitution from labor to capital in low-wage firms, reduce employment growth, but also accelerate total factor productivity growth particularly among the less productive firms under private Chinese or foreign ownership, but not among state-owned enterprises. The heterogeneous firm response to labor cost shocks can be explained by differences in governance or management practice, but is difficult to reconcile with the idea that competitive pressure is a substitute for governance quality. |
| Keywords: | Firm productivity, capital investment, minimum wage policy |
| JEL: | D24 G31 J24 J31 O14 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp1647&r=tra |
| By: | M. Hakan Eratalay; Evgenii Vladimirov |
| Abstract: | In this article we use partial correlations to derive bidirectional connections between the major firms listed in MICEX. We obtain the coefficients of partial correlation from the correlation estimates of constant conditional correlation GARCH (CCC-GARCH) and consistent dynamic conditional correlation GARCH (cDCC-GARCH) models. We map the graph of partial correlations using the Gaussian graphical model and apply network analysis to identify the most central firms in terms of shock propagation and in terms of connectedness with others. Moreover, we analyze some macro characteristics of the network over time and measure the system vulnerability to external shocks. Our findings suggest that during the crisis interconnectedness between firms strengthen and system becomes more vulnerable to systemic shocks. In addition, we found that the most connected firms are Sberbank and Lukoil while most central in terms of systemic risk are Gazprom and FGC UES. |
| Keywords: | Multivariate GARCH, Volatility Spillovers, Network connections, MICEX |
| JEL: | C01 C13 C32 C52 |
| Date: | 2017–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0117&r=tra |
| By: | Charles, Sébastien; Marie, Jonathan |
| Abstract: | This article has two objectives: to study the 1997 episode of hyperinflation in Bulgaria and to compare and contrast this analysis with the post-Keynesian theoretical approach. This approach highlights the role of three components observed simultaneously in order to understand the emergence of hyperinflation: a virulent distribution conflict, the presence of indexing mechanisms, and finally flight from domestic currency into one or more foreign currencies. The article reveals that a transitional economy like that of Bulgaria in the 1990s may generate hyperinflation in the absence of any violent distribution conflict: the transition and the banking crisis engender inflation. The foreign exchange rate is decisive in the emergence of hyperinflationary dynamics (and therefore mistrust of domestic currency). Lastly, this interpretation of hyperinflation is confirmed by an econometric analysis. |
| Keywords: | hyperinflation, change, transition |
| JEL: | C12 E12 E31 P22 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76459&r=tra |
| By: | Guan, Xue; Ahrendsen, Bruce L.; Liu, Yumei |
| Abstract: | The study investigates whether vegetable price index insurance could be applied to the Beijing-Tianjin-Hebei (BTH) region of China and identifies farmers’ interest in the insurance. Vegetable price index insurance is growing rapidly in China and was recently introduced in the Shanghai region. Although the BTH region is an important region for vegetable production and consumption, no such insurance is currently available in the region. Survey data from 450 farmers in the BTH region were collected during July-August 2016. Factors influencing farmer demand for vegetable price index insurance in the region are identified by estimating a probit model. Four categories of factors are considered: location, demographics (gender, age, education, and experience), farm characteristics (size, organization membership, yield, and net income), and risk cognition (market price sensitivity, other insurance purchased, price risk type and recent loss experience from low price). The results should assist the Chinese government structure and promote a vegetable price insurance that will be an effective method to maintain vegetable prices in the region and promote vegetable production by farmers. |
| Keywords: | insurance demand, price index insurance, vegetable price, probit model, Agricultural and Food Policy, Agricultural Finance, Demand and Price Analysis, G22, Q14, |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252846&r=tra |
| By: | Xu, Yilan |
| Abstract: | Innovation is one of the most important factors in production at enterprise level. Substantial studies have been deployed in this topic, but rare researches have been focused on the relation between innovation and the enterprise characteristics, especially the case in China. In this paper, the author analyzes the China Enterprise Survey 2012 established by the World Bank through logistic regressions, and concludes some interesting findings, such as that the R&D input in China showing negative relationship with the firm size, enterprises without internationally-recognized quality certifications or technologies licensed from a foreign-owned company are showing with more R&D input, etc. The results uncovered very practical implications to both enterprises in China and the government, which could guide them to make better decisions in terms of enterprises development and economy policies. |
| Keywords: | Innovation, China, Survey Data, Enterprises Characteristics, Production Economics, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea17:252847&r=tra |