|
on Transition Economics |
| By: | João Sousa Andrade (CeBER and Faculty of Economics of the University of Coimbra); António Portugal Duarte (CeBER and Faculty of Economics of the University of Coimbra) |
| Abstract: | Bulgaria, Croatia, Estonia, Latvia, Lithuania, Hungary, Poland, Czech Republic, Romania, Slovenia, and Slovakia have all benefited from an increase of European Union capital transfers of funds since the demand for European integration. At the same time, foreign direct investments have risen, mainly due to the liberalisation of capital movements. The effects of those funds and the reduction of financial costs can be considered as analogous to the phenomenon known as Dutch Disease. That is to say, the inflow of financial transfers is also considered a curse. In order to eliminate this curse we must take into account the two effects associated with Dutch Disease: the ‘spending effect’ and the ‘resource movement effect’. Public policies have not been appropriate and have not prevented the real exchange rate appreciation, thereby contributing to a poor performance in terms of competitiveness and economic growth. After a descriptive analysis of some variables, we estimate a set of equations that take account of the direct and indirect effects of European Union funds and financial costs on the economy where the effects on the real exchange rate play the major role. |
| Keywords: | GMM, foreign transfers, financial costs, Dutch Disease, Dynamic Models, and public policies. |
| JEL: | C01 E23 F43 H63 J31 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:gmf:papers:2017-03&r=tra |
| By: | Laurène PETITFOUR (FERDI); Xiezhe HUANGFU (FERDI); Martine AUDIBERT (FERDI); Jacky MATHONNAT (Cerdi - Université d'Auvergne) |
| Abstract: | Since the early 2000s, China has embarked on a major reform program in the field of health. Three are essential and linked: rebuilding a new health insurance system in rural areas, restructuring the organization and management of hospitals, halting the sharp rise in drug prices. To cope with the rising price of drugs, in 2009 the Chinese government launched a large pharmaceutical reform. Its key element is the implementation of a National Essential Medicine List (NEML), leading to a reorientation of incentives for health services financing. Health facilities are no longer allowed to make any profit on drug sales (“zero mark-up policy”), while this used to be their main source of revenue. Authorities have implemented different compensation schemes. In the context of redesigning the financing structure of health care facilities, it is crucial to understand how the NEML reform has affected—or not—the activity and efficiency of health care facilities, since the search for greater efficiency in the health system is a transversal and underlying objective of the three reforms mentioned above.This study relies on survey data from a sample of 30 randomly selected Township Hospitals (TH) in rural area from the prefecture of Weifang, in the Shandong province. Using a two-stage procedure, the study aims at assessing the technical efficiency scores of Township Hospitals and then at identifying the determinants of this efficiency. The first stage is realized with a non-parametric frontier approach, “partial frontier” method (order-m), to deal with the problem of dimensionality of the sample. The identification of the determinants of efficiency is made with fractional regressions (Ramalho, 2011). Results show that the average efficiency remains constant from 2006 to 2009 and 2010 to 2012, at around 0.65. The most significant and robust factors of technical efficiency are the share of subsidies in the TH incomes (negative effect) and the number of covered inhabitants per bed (positive effect). The study suggests that even after the implementation of the drug reform, a “soft budget constraint” effect remains, as well as financial barriers to universal access to healthcare (importance of demand-side determinants) and a phenomenon of oversizing of some THs. |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3507&r=tra |
| By: | Laurène PETITFOUR (FERDI); Xiezhe HUANGFU (FERDI); Martine AUDIBERT (FERDI); Jacky MATHONNAT (Cerdi - University of Auvergne) |
| Abstract: | Since the early 2000s, China has embarked on a major reform program in the field of health. Three are essential and linked: rebuilding a new health insurance system in rural areas, restructuring the organization and management of hospitals, halting the sharp rise in drug prices. To cope with the rising price of drugs, in 2009 the Chinese government launched a large pharmaceutical reform. Its key element is the implementation of a National Essential Medicine List (NEML), leading to a reorientation of incentives for health services financing. Health facilities are no longer allowed to make any profit on drug sales (“zero mark-up policy”), while this used to be their main source of revenue. Authorities have implemented different compensation schemes. In the context of redesigning the financing structure of health care facilities, it is crucial to understand how the NEML reform has affected—or not—the activity and efficiency of health care facilities, since the search for greater efficiency in the health system is a transversal and underlying objective of the three reforms mentioned above.This study relies on survey data from a sample of 30 randomly selected Township Hospitals (TH) in rural area from the prefecture of Weifang, in the Shandong province. Using a two-stage procedure, the study aims at assessing the technical efficiency scores of Township Hospitals and then at identifying the determinants of this efficiency. The first stage is realized with a non-parametric frontier approach, “partial frontier” method (order-m), to deal with the problem of dimensionality of the sample. The identification of the determinants of efficiency is made with fractional regressions (Ramalho, 2011). Results show that the average efficiency remains constant from 2006 to 2009 and 2010 to 2012, at around 0.65. The most significant and robust factors of technical efficiency are the share of subsidies in the TH incomes (negative effect) and the number of covered inhabitants per bed (positive effect). The study suggests that even after the implementation of the drug reform, a “soft budget constraint” effect remains, as well as financial barriers to universal access to healthcare (importance of demand-side determinants) and a phenomenon of oversizing of some THs. |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3508&r=tra |
| By: | Marina Kolosnitsyna (National Research University Higher School of Economics); Anna Philippova (National Research University Higher School of Economics) |
| Abstract: | 25 years have passed since the beginning of market reforms in Russia. Like other post-soviet countries, in the early 1990s Russia faced a period of sharp decline in real household incomes. Then a gradual growth of population well-being began. However, income inequality was deep throughout this time. The poverty headcount is still over 10% on average and differs a lot among territories and socio-demographic groups. Russian poverty has certain specifics: there is a high risk of poverty for young working families with children. This paper analyses the effectiveness of family benefits from various perspectives. We consider their impact on the poverty of families with children, using the concepts of absolute, relative and subjective poverty. The study is based on pooled and panel household data from the Russia Longitudinal Monitoring Survey – Higher School of Economics (RLMS HSE), 2003-2015. We model the influence of child benefits on the probability of being poor and estimate various econometric models. Other controlled factors influencing recipient household risk of poverty include the type of settlement, family structure, education and employment. The results are robust and show the negative influence of family benefits on household risk for absolute and relative poverty. However, the subjective perception of poverty is positively correlated with benefits. The study also shows leakage and significant gaps in coverage in the system of family benefits. Overall, the study reveals the low effectiveness of family benefits in Russia and indicates a need for improved targeting. |
| Keywords: | child benefits; means-tested benefits; categorical benefits; poverty; absolute poverty; relative poverty; subjective poverty; Russia. |
| JEL: | I38 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:03/psp/2017&r=tra |
| By: | Qing Liu (University of International Business and Economics); Larry D QiuAuthor-Workplace-Name: The University of Hong Kong |
| Abstract: | Innovation plays a key role in economic growth. In this paper, we investigate the effects of intermediate input tariff reduction on the innovation activities of domestic firms. Input tariff reduction has two opposite effects on the innovation decision of a firm: it may promote innovation because the cost of innovation activities decreases, but it may also result in a decrease in innovation because foreign technologies become cheaper. We use Chinese firm-level data from 1998 to 2007, which features a drastic input tariff cut in 2002 because of China's WTO accession, and find that input tariff cut results in less innovation undertaken by Chinese firms. The findings are obtained using the difference-in-differences technique and are robust to various specifications checks of the model. We also provide a theoretical framework to generate insights to the empirical findings. |
| JEL: | F13 F15 O14 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:022017&r=tra |
| By: | Gluschenko, Konstantin |
| Abstract: | This paper studies integration of regional goods markets in Russia over 2001–2015 with the use of time series analysis, based on the law of one price as the criterion of market integration. The cost of a staples basket is used as a price representative. The analysis involves all pairs of country’s regions, thus providing a comprehensive pattern of market integration. The region pairs are classified as belonging to one of four groups: integrated, conditionally integrated, not integrated but tending towards integration, and neither integrated nor tending towards integration. The results suggest that only less than a quarter of region pairs fall into the fourth category. |
| Keywords: | regional goods markets, Russian regions, law of one price, price convergence |
| JEL: | L81 R15 R19 |
| Date: | 2017–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76995&r=tra |
| By: | Anghel, Remus Gabriel (Romanian Institute for Research on National Minorities); Botezat, Alina (Romanian Academy); Coșciug, Anatolie (Babeş-Bolyai University); Manafi, Ioana (Bucharest Academy of Economic Studies); Roman, Monica (Bucharest University of Economic Studies) |
| Abstract: | Romanian migration is today one of the biggest, complex, and dynamic migration to Western Europe. This paper is a comprehensive review of the existing literature that aims at providing a full picture of this dynamic migratory process and discusses its far-reaching consequences. It first presents and characterizes the Romanian migration through the different phases during and after state socialism. The second part of the paper is dedicated to unfolding the socio-economic effects of the Romanian migration addressing the remitting behavior and its development over the past years. The issue of return migration is also addressed stressing that return is not much developed, however it has significant impacts through the emergence of returnees' entrepreneurship. Finally we address some of the consequences of the medical doctors' migration which is today considered one of the main migration challenges the country is facing. |
| Keywords: | Romania, international migration, remittances, return migration, physicians migration |
| JEL: | F22 F24 J15 P36 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10445&r=tra |
| By: | Remus Gabriel Anghel; Alina Botezat; Anatolie Coșciug; Ioana Manafi; Monica Roman |
| Abstract: | Romanian migration is today one of the largest, complex, and dynamic migration to Western Europe. This paper is a comprehensive review of the existing literature that aims at providing a full picture of this dynamic migratory process and discussing its far-reaching consequences. It first presents and characterizes the Romanian migration through the different phases during and after state socialism. The second part of the paper is dedicated to unfolding the socio-economic effects of the Romanian migration addressing the remitting behavior and its development over the past years. The issue of return migration is also addressed stressing that return is not much developed, however it has significant impacts through the emergence of returnees’ entrepreneurship. Finally we address some of the consequences of the medical doctors’ migration which is today considered one of the main migration challenges the country is facing. |
| Keywords: | Romania, international migration, remittances, return migration, physicians migration |
| JEL: | F22 F24 J15 P36 |
| Date: | 2017–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:cel:dpaper:43&r=tra |
| By: | Fabrice Defever; Alejandro Riaño |
| Abstract: | China has transitioned from being an almost autarkic economy to become the world's largest exporter in less than three decades. Given this unique transformation, this paper investigates if the key stylized facts that characterize the behavior of firms' exports around the world, can also describe China's experience after joining the World Trade Organization. We find that, consistent with received wisdom, relatively few Chinese firms engage in exporting, and those doing so, are on average, larger and more productive than their domestic counterparts. However, unlike other large and developed countries, a substantial share of Chinese exporters sell the majority of their output abroad. In fact, the distribution of Chinese exporters according to their export intensity - the share of their revenues accounted for by exports - is strikingly bimodal. In contrast to recent work that has focused on the technological factors that explain the prevalence of high-intensity exporters, we instead concentrate on the role played by China's heterodox trade policy regime in promoting pure exporters. Our empirical analysis suggests that trade policy has played an instrumental role in fostering a dual export sector. Notably, nine out of ten manufacturing exporters in China are eligible to enjoy fiscal incentives contingent on export performance. |
| Keywords: | China; Firm-level exports; Export Intensity; Free Trade Zones; Export Processing Regimes |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:17/01&r=tra |
| By: | Robert C. Feenstra; Mingzhi Xu; Alexis Antoniades |
| Abstract: | We examine the price and variety of products at the barcode level in cities within China and the United States. In both countries, there is a greater variety of products in larger cities. But in China, unlike the United States, the prices of products tend to be lower in larger cities. We attribute the lower prices to a pro-competitive effect, whereby large cities attract more firms which leads to lower markups and prices. Combining the effect of greater variety and lower prices, it follows that the cost of living for grocery-store products in China is lower in larger cities. We further compare the cost-of-living indexes for particular product categories between China and the United States. In product categories with a significant presence of U.S. brands in the Chinese market, the availability of additional Chinese brands leads to greater variety than in the United States, and therefore lower Chinese price indexes for that reason. In product categories with much less presence of U.S. brands in the Chinese market, however, the observed prices differences between the countries (usually lower prices in China) are partially or fully offset by the variety differences (less variety in China), so that the cost of living in China is not as low as the price differences suggest, especially in smaller cities. |
| JEL: | E01 F11 L1 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23161&r=tra |
| By: | Filipovski, Vladimir; Tevdovski, Dragan |
| Abstract: | This paper examines the calendar effects in ten South Eastern European (SEE) stock markets daily returns during the period 2007 - 2014. We focus on three calendar effects: the day of the week effect, the half month effect and the turn of the month effect. Specifically, we analyze existence of each calendar effect separately in the mean and in the volatility of the index returns. We apply standard regression models with dummy variables for the effects in the mean returns, while we apply GARCH(1,1) models with dummy variables for the effects in the volatility of returns. The results present evidence that the day of the week effects in both mean and volatility are present in nine out of ten SEE stock markets. Contrary, the half month effect in mean returns is present only in one SEE stock market, while half month effect in volatility is present in five out of ten SEE stock markets. The turn of the month effect in mean returns is present in six out of ten SEE stock markets. The turn of the month effect in volatility is present in all SEE stock markets. |
| Keywords: | Calendar anomalies, Daily returns, Generalized autoregressive models, South Eastern Europe. |
| JEL: | C32 G14 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76818&r=tra |
| By: | Benedek, József; Hărănguș, Iulia; Man, Titus |
| Abstract: | The study examines the spatial and economic characteristics of commuting to work in one of the most dynamic areas of Romania, Cluj County. Based on the 2011 census data, the study reveals a strong connection between accessibility and commuting intensity, while the urban network determines the spatial orientation of the dominant commuting flows. However, we found no significant relation between dynamic economic performance and commuting intensity |
| Keywords: | commuting to work accessibility economic development Cluj County |
| JEL: | D00 J61 R11 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76807&r=tra |
| By: | Meng, Xin (Australian National University); Zhao, Guochang (Southwest University of Finance and Economics, Chengdu) |
| Abstract: | Between 1966 and 1976, China experienced a Cultural Revolution (CR). During this period, the education of around 17 birth cohorts was interrupted by between 1 and 8 years. In this paper we examine whether, and by how much, this large-scale schooling interruption affected their children's education. We find a strong effect: more interrupted education for parents, less completed education for their children. On average the CR cohort had 2.9 years interrupted education. If they failed to catch up after the CR, this translates to a reduction of 0.87 years of schooling and a 9 percentage points (or 50%) reduction in the probability of completing a university degree for their children relative to the children whose parents did not have interrupted schooling. Our results have strong implications for developing countries prone to long-term conflicts which often adversely affect children's education. As human capital accumulation is one of the main drivers of economic development, these negative schooling shocks affecting current generation education levels will have an impact far beyond the immediate economic development of these war-torn economies and extend to the next generation. |
| Keywords: | Chinese Cultural Revolution, human capital, intergenerational education transmission |
| JEL: | I24 I25 N3 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10460&r=tra |
| By: | Kincses, Áron; Tóth, Géza; Tömöri, Mihály; Michalkó, Gábor |
| Abstract: | This study introduces the behaviour of participants in transit tourism in Hungary with a focus on their expenditure. With the help of multivariable mathematical-statistical methods, the motivational background and the spending characteristics of foreigners visiting Hungary between 2009 and 2013 are explored; in addition, the factors influencing expenditure, according to nationality, are investigated. According to our investigations, people in transit, whose spending is continuously increasing, make up a significant share of the expenditure of foreigners arriving in Hungary. Typical types of spending during transit are fuel purchases and dining at restaurants. Among transit visitors to Hungary, Romanian, Serbian (including Monte-negro and Kosovo), and Bulgarian nationals have the highest share. While the number and expenditure of transit visitors slightly increased during the examined period, the per capita spending decreased. The results of the study show that this is due to the changes in the composition of the countries involved. Changes in transit tourism expenditures are largely determined by nationality. The most important conclusion of our research is that the most significant characteristics of transit depend on general European trends (labour market conditions, tourism supply, etc.) and conditions (visa requirements, transport infrastructure, accommo-dation along transit routes, among others) provided for transit visitors by Hungary. |
| Keywords: | transit tourism tourism expenditure Hungary |
| JEL: | L62 L83 O18 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76854&r=tra |
| By: | Milos Markovic (Centre d'Economie de la Sorbonne); Michael A. Stemmer (Centre d'Economie de la Sorbonne) |
| Abstract: | Using a unique dataset of unlisted Serbian firms during the period between 2005 and 2012, we analyze the impact of internal financial constraints on firm growth with respect to several firm-level characteristics. We also assess potential effects created by the 2008-2009 Global Financial Crisis. To do so, we rely on panel data models, which estimate via GMM cash flow sensitivities of firm growth, following the dynamic specification of Guariglia et al. (2011). Controlling for investment opportunities, our results show that Serbian firms face high financial constraints and exhibit generally a high reliance on retained earnings for firm growth. We do not find evidence for a crisis effect, potentially due to ex ante accumulated internal funds. Conventional firm characteristics such as age, size or overall performance largely determine the dependency on cash for firm growth. Moreover, foreign-owned companies seem to escape the financing gap by tapping other resources. A comparison with Belgian firms contrasts our results with an advanced country setting |
| Keywords: | Financial constraints; firm growth; transition countries; dynamic panel data; GMM |
| JEL: | C23 D92 E44 G32 L25 O16 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:17012&r=tra |
| By: | Astghik Mavisakalyan (Bankwest Curtin Economics Centre, Curtin University) |
| Abstract: | The rigid soviet policy of full employment ensured employment for all able-bodied population. By removing this policy, the collapse of the system has made discrimination less costly. Has it also become prevalent? This paper studies the labour market discrimination on the basis of looks using data from three post-soviet countries of the caucasus: Armenia, Azerbaijan and Georgia. I estimate a large positive effect of attractive looks on males' probability of employment. Using partial identification approach, I show that this relationship is likely to be causal. The results are potentially consistent with taste-based discrimination in favour of attractive males. |
| Keywords: | Attractiveness, Employment, Former Soviet Union |
| JEL: | J21 J70 P23 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ozl:bcecwp:wp1604&r=tra |
| By: | Kincses, Áron; Bálint, Lajos |
| Abstract: | Looking at the relationship between the place of birth and current residential locations of foreign citizens arriving in Hungary from the neighbouring countries, in general, we establish that smaller migration distance involves migrants with a lower level of education, while preference for longer distances is determined by higher qualifications of migrants. The potential impact area of migrants grows in line with the education attainments of migrants. A scale-free settlement topology can be seen from the neighbouring countries of immigration to Hungary. This means that most of the settlements of Hungary have just a few links to settlements of neighbouring countries, from a migration point of view, while few Hungarian settlements have many connections. This finding also means that, instead of the national migration strategy, the subsidiary and the regional strategies can play a decisive role in the management of the international migration process |
| Keywords: | international migration Carpathian Basin network analysis |
| JEL: | F50 J61 R12 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76852&r=tra |
| By: | Varga, Levente; Tóth, Géza; Néda, Zoltán |
| Abstract: | Several empirical models aimed at describing human mobility have been proposed in the past. Most of them are based on an unjustified analogy, with a focus on gravity and physical vector or scalar fields. Recently, however, statistical physicists introduced a new category of models that are theoretically motivated by a few simple and reasonable socio-economic assumptions. The Radiation Model (Simini et al. 2012) and the Radiation Model with Selection (Simini–Maritan–Néda 2013) are such successful approaches. Here, we introduce a new version of the radiation model, the Travel Cost Optimized Radiation Model, and test its applicability for describing the commuting patterns in Hungary. We compare critically the performance of this model with the results of the previous radiation type models. |
| Keywords: | human mobility models commuters data population income density |
| JEL: | J61 R11 R14 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76806&r=tra |
| By: | Kumagai, Satoru; Isono, Ikumo; Keola, Souknilanh; Hayakawa, Kazunobu; Gokan, Toshitaka; Tsubota, Kenmei |
| Abstract: | The impact of connecting Kashgar, Trougart, Uzgen, and Karasuu and facilitating customs at the national border between China and Kyrgyzstan are examined by using IDE-GSM (Institute of Developing Economies, JETRO Geographical Simulation Model). We found that the railway connection has a positive impact in southern Kyrgyzstan and a negative impact in regions of northern Kyrgyzstan, neither of which are the capital city of Kyrgyzstan. |
| Keywords: | Economic geography, Railway, China(AECC), Kyrgyzstan(AZKG) |
| JEL: | R12 R13 R42 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper630&r=tra |
| By: | Ekaterina A. Streltsova (National Research University Higher School of Economics) |
| Abstract: | The paper discusses the results of a survey devoted to the role of research grants for the modern Russian academic community. Researchers’ motives to apply for grants, the strategies used in grant contests, the factors decisive for grant success are presented. Also the extent of Russian scientists’ trust to the main research foundations in the country is discussed. The study has demonstrated that the symbolic value of grants for Russian scientists play a secondary role in comparison to their economic meaning: participation in grant contests is mainly motivated not by the aspiration for professional recognition, but the need for financial support. The paper might be of interest for sociologists of science and others interested in current transformations of scientific field in the country. Above all, an overview of academic literature on the topic – both foreign and Russian – is presented in the paper, what can make a significant contribution to any research on grant science: its evolution, national peculiarities of grant systems, grants’ influence on researchers’ work and life worldwide. |
| Keywords: | research grants, research foundation, scientific field, Russia. |
| JEL: | C83 I21 Y10 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:70sti2017&r=tra |