nep-tra New Economics Papers
on Transition Economics
Issue of 2017‒04‒16
23 papers chosen by
J. David Brown
United States Census Bureau

  1. The Economics of German Unification after Twenty-five Years: Lessons for Korea By Michael C. Burda; Mark Weder
  2. Vulnerability to Poverty: Tajikistan during and after the Global Financial Crisis By Ira N. Gang; Kseniia Gatskova; John Landon-Lane; Myeong-Su Yun
  3. Smog in our brains: Gender differences in the impact of exposure to air pollution on cognitive performance in China: By Chen, Xi; Zhang, Xiaobo; Zhang, Xin
  4. The micro-foundations of an open economy money demand: An application to the Central and Eastern European countries By Claudiu Tiberiu Albulescu; Dominique P\'epin; Stephen Miller
  5. From Fiscal Austerity towards Growth-Enhancing Fiscal Policy in Ukraine By Tetiana Bogdan; Vladimir Gligorov; Peter Havlik; Michael Landesmann
  6. Benchmarking institutional and structural indicators in EU candidate and potential candidate countries By Alvarez Orviz, Roberto; Savelin, Li
  7. Forced off Farm? Labor Allocation Response to Land Requisition in Rural China By Ma, Shuang; Mu, Ren
  8. Forced gifts: The burden of being a friend: By Bulte, Erwin; Wang, Ruixin; Zhang, Xiaobo
  9. Differentials in market constraints and value addition among micro, small, and medium enterprises in Viet Nam By Christine Ngoc Ngo; Miao Chi
  10. Preparation and disclosure of non-financial statement based on the new Bulgarian accountancy act By Georgieva, Daniela
  11. Productivity gains from agglomeration and migration in Chinese cities over 2002-2013 By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  12. 중국 지역별 창업 생태계 분석 및 시사점: 청두, 우한을 중심으로 (Analysis of the Chinese Regional Startup Eco-System and its Implications: With a Focus on Chengdu and Wuhan) By Oh , Jonghyuk; Pak , Jinhee; Kim , Hongwon
  13. A multi-period power generation planning model incorporating the non-carbon external costs: A case study of China By Hao Chen; Bao-Jun Tang; Hua Liao; Yi-Ming Wei
  14. The Impact of Social Pensions on Intergenerational Relationships: Comparative Evidence from China By Chen, Xi; Eggleston, Karen; Ang, Sun
  15. Risk Attitudes and Household Migration Decisions By Dustmann, Christian; Fasani, Francesco; Meng, Xin; Minale, Luigi
  16. Causes and Features of Economic Downturn in Belarus: the Role of Structural Factors By Dzmitry Kruk
  17. Measuring the M&A Value of Control and Synergy in Central and Eastern European Transition Economies with the Case of Avast -AVG Acquisition By Moreira, David; Janda, Karel
  18. The effects of Chinese import penetration on firm innovation: Evidence from the Vietnamese manufacturing sector By Duc Anh Dang
  19. Happiness in the Air: How Does a Dirty Sky Affect Mental Health and Subjective Well-being? By Zhang, Xin; Zhang, Xiaobo; Chen, Xi
  20. Air emissions perspective on energy efficiency: An empirical analysis of China's coastal areas By Quande Qin; Xin Li; Li Li; Wei Zhen; Yi-Ming Wei
  21. Operational and environmental performance in China¡¯s thermal power industry: Taking an effectiveness measure as complement to an efficiency measure By Ke Wang; Jieming Zhang; Yi-Ming Wei
  22. What Matters for Life Satisfaction among the Oldest-Old? Evidence from China By Ng, Sor Tho; Tey, Nai Peng; Asadullah, Niaz
  23. One Belt One Road and the reconfiguration of China-EU relations By Xieshu Wang; Joel Ruet; Xavier Richet

  1. By: Michael C. Burda; Mark Weder
    Abstract: This paper reviews the performance of the East German economy in the turbulent quarter-century following reunification and draws some conclusions for the reunification of North and South Korea. In this period, the gap in output per capita between East and West Germany declined at a speed not far from empirical estimates of the neoclas- sical growth model, yet systematic total factor productivity di¤eren- tials persist despite identical institutional frameworks and significant investment in the eastern regions. At the same time, regional dispar- ities in income, well-being, and health are little di¤erent from those found within West Germany, and net migration has ceased. On this human metric, German unification has been an unqualified success. For Korea, an e¤ort of this dimension will be costly. A back-of-the- envelope calculation suggests that Korean unification will cost roughly twice as much as its German counterpart.
    Keywords: East Germany, convergence, total factor productiv- ity, Korean unification
    JEL: P2 O11 E02
    Date: 2017–04
  2. By: Ira N. Gang (Department of Economics, Rutgers University); Kseniia Gatskova (IOS-Regensburg); John Landon-Lane (Department of Economics, Rutgers University); Myeong-Su Yun (Department of Economics, Inha University)
    Abstract: We examine vulnerability to poverty in Tajikistan during the global financial crisis, focusing on the roles played by international migration and remittances, using a formal, practical, and easily decomposable vulnerability measure. Our strategy is to estimate a Markov transition probability matrix with the aim of identifying the vulnerability of households to poverty. Importantly, by introducing the index of vulnerability as the weighted probability of a household falling into poverty over a given time horizon, we can use the estimated dynamics to assess the short, medium and long-run vulnerability. We find that during the "recession transition" almost all households were vulnerable to poverty while almost none were during the "recovery period". Overall, urban households, more educated households and households receiving remittances from international labor migrants were less vulnerable to poverty. While households with a current or very recent migrant did not have a significantly lower measured vulnerability to poverty, those households receiving remittances from migrants had a lower vulnerability to poverty. Our findings stress that the international labor migration from Tajikistan may not be considered as a reliable means of welfare security for the households because external economic shocks and internal political decisions may negatively affect Russian economy and lead to a reduction of remittances flow to Tajikistan.
    Keywords: mobility measurement, vulnerability, poverty, inequality, measurement, Tajikistan
    JEL: J60 D63 I32
    Date: 2017–04
  3. By: Chen, Xi; Zhang, Xiaobo; Zhang, Xin
    Abstract: While there is a large body of literature on the negative health effects of air pollution, there is much less written about its effects on cognitive performance for the whole population. This paper studies the effects of contemporaneous and cumulative exposure to air pollution on cognitive performance based on a nationally representative survey in China. By merging a longitudinal sample at the individual level with local air-quality data according to the exact dates and counties of interviews, we find that contemporaneous and cumulative exposure to air pollution impedes both verbal and math scores of survey subjects. Interestingly, the negative effect is stronger for men than for women. Specifically, the gender difference is more salient among the old and less educated in both verbal and math tests.
    Keywords: CHINA; EAST ASIA; ASIA, gender; pollution; air pollution, cognitive performance; gender difference; human capital, I24 Education and Inequality; Q53 Air Pollution, Water Pollution, Noise, Hazardous Waste, Solid Waste, Recycling; Q51 Valuation of Environmental Effects; J16 Economics of Gender, Non-labor Discrimination,
    Date: 2017
  4. By: Claudiu Tiberiu Albulescu (UPT); Dominique P\'epin (CRIEF); Stephen Miller (WGU Nevada)
    Abstract: This paper investigates and compares currency substitution between the currencies of Central and Eastern European (CEE) countries and the euro. In addition, we develop a model with microeconomic foundations, which identifies difference between currency substitution and money demand sensitivity to exchange rate variations. More precisely, we posit that currency substitution relates to money demand sensitivity to the interest rate spread between the CEE countries and the euro area. Moreover, we show how the exchange rate affects money demand, even absent a currency substitution effect. This model applies to any country where an international currency offers liquidity services to domestic agents. The model generates empirical tests of long-run money demand using two complementary cointegrating equations. The opportunity cost of holding the money and the scale variable, either household consumption or output, explain the long-run money demand in CEE countries.
    Date: 2017–04
  5. By: Tetiana Bogdan; Vladimir Gligorov (The Vienna Institute for International Economic Studies, wiiw); Peter Havlik (The Vienna Institute for International Economic Studies, wiiw); Michael Landesmann (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Abstract The study analyses the dynamics and the structure of Ukraine’s public finances. It assesses the medium-term impact of fiscal austerity 2014-2016, examines fiscal sustainability and estimates further fiscal adjustment efforts. It evaluates the economic and social implications of current fiscal policies especially on education, health and other social indicators. It examines the benefits and costs of the medium-term budget for 2017‑2019 with an emphasis on evolving challenges and puts forward policy recommendations aimed at a successful implementation of growth-enhancing economic reforms.
    Keywords: Ukraine, fiscal policy, impact on growth, human capital, health, poverty and inequality, fiscal multipliers, sustainability of fiscal policy measures, Ukraine’s economic reforms
    JEL: E62 E60 E65 H12 H30 H50 H62 H63 H68 P52
    Date: 2017–04
  6. By: Alvarez Orviz, Roberto; Savelin, Li
    Abstract: This paper reviews institutional and structural challenges in countries preparing for EU membership, i.e. Albania, Bosnia and Herzegovina, Kosovo*, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. Sound institutions and solid economic structures are not only the cornerstones of EU accession (as defined by the Copenhagen political and economic criteria), but are also crucial for achieving higher income levels and sustainable long-term growth. This paper finds that the EU candidate and potential candidate countries (EU CC/PCC) fare worse than the majority of EU Member States in a number of institutional and structural metrics, such as business environment, access to finance, judicial system, trade and competitiveness, labour market and education and institutional governance. When comparing EU CC/PCC among themselves, large intra-group disparities emerge. Countries such as the former Yugoslav Republic of Macedonia, Montenegro and, to a certain extent, Serbia and Turkey, tend to score on average higher than Albania, Bosnia and Herzegovina and Kosovo. While many EU CC/PCC have improved the quality of their institutions and economic governance over the past decade, it is crucial that they preserve the reform momentum to enable a sustainable convergence with the EU. / / * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence. JEL Classification: F13, F15, G21, O11, O43
    Keywords: access to finance, business environment, economic growth, EU accession, governance, institutions, trade integration, Western Balkans
    Date: 2017–03
  7. By: Ma, Shuang (Southwestern University of Finance and Economics); Mu, Ren (Texas A&M University)
    Abstract: Land requisition has been an important process by which Chinese local governments promote urbanization and generate revenue. This study investigates the impacts of land requisition on farmers' decisions of labor allocation between agricultural and non-agricultural sectors. We argue that, conditional on village fixed effects, land requisition can be explored as a quasi-natural experiment to identify the relationship between land rights and labor allocation of farmers. We find that young farmers (age 16-44) are not affected in their migration decisions by land loss through requisition, while some older farmers (age 45-55) are affected. In response to land loss through requisition, the probability that older farmers living beyond the mean distance from the county seat migrates to cities increases by 8.5 percentage points. An econometric test confirms that the finding is unlikely to be driven by unobserved variables associated with household experience of land loss. This finding raises concerns about the wellbeing of the farmers who may not be competitive in the urban labor market and therefore unlikely to leave farming unless they have to.
    Keywords: land institution, land requisition, migration, urbanization, farmers, China
    JEL: O12 O15 J61 Q15 R28
    Date: 2017–03
  8. By: Bulte, Erwin; Wang, Ruixin; Zhang, Xiaobo
    Abstract: In many developing countries, gift expenses account for a substantial share of total household expenditures. As incomes rise, gift expenses are escalating in several developing countries. We develop a theoretical model to demonstrate how (unequal) income growth may trigger “gift competition†and drive up the financial burden associated with gift exchange. We use unique census-type panel data from rural China to test our model predictions and demonstrate that (1) the value of gifts responds to the average gift in the community, (2) the escalation of gift giving may have adverse welfare implications (especially for the poor), and (3) escalating gift expenses crowd out expenditures on other consumption items.
    Keywords: CHINA; EAST ASIA; ASIA, household expenditure; developing countries; income; rural communities; welfare, gift competition; reciprocity; subjective well-being; inequality, O10 Economic Development: General; I30 Welfare, Well-Being, and Poverty: General; D10 Household Behavior: General,
    Date: 2017
  9. By: Christine Ngoc Ngo; Miao Chi
    Abstract: This paper analyses the differentials of productive values in Vietnamese micro, small, and medium enterprises (MSMEs) and how market constraints have hindered their performance. Quantitative analyses suggest substantial differences in value addition among manufacturing MSMEs, and the crucial contribution of technology adoption to their development. We assess MSMEs’ productive value, production organization and performance using qualitative analysis. Our case studies identify market failures hindering MSMEs’ potential; explain their strengths and weaknesses; and assess how the market structure influences their production costs and business strategies. Drawing from these insights, we suggest policy options to strengthen capability and competitiveness of Vietnamese’ MSMEs.Length: 23
    Date: 2017
  10. By: Georgieva, Daniela
    Abstract: As a result of a new Bulgarian Accountancy Act, adopted in late 2015, public interest entities must prepare and publish a non-financial statement. The main objective of the paper is to analyze the existing definitions of the public interest entities and to develop a new one. In addition, the author of the paper aims to analyze the current legal framework regarding the structure and content of non-financial statement. The main object of the study are public interest entities. The main subject of the paper is the non-financial statement.
    Keywords: non-financial statement, public-interest entities, content, publication, activity report
    JEL: M41 M48
    Date: 2017–02
  11. By: Pierre-Philippe Combes (ECON - Département d'économie - Sciences Po, GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Shi Li (Beijing Normal University)
    Abstract: We evaluate the evolution of productivity gains from Chinese cities over time, from 2002 to 2013. In 2002, rural migrants were exerting a strong positive externality on natives' earnings, which were also higher when access to foreign markets through access to sea was higher. In 2007 and then further in 2013, city size (employment density but also land area) has become the crucial determinant of productivity whereas market access, internal or external, plays no direct role. Rural migrants still enhance natives' earnings, though the effect is more than hal f lower than in 2002. Urban gains, and their evolution over time, are very similar on total and per hour earnings. Skilled workers and females seem to gain slightly more from cities than unskilled workers and males.
    Keywords: urban development,agglomeration economies,wage disparities,migration
    Date: 2017
  12. By: Oh , Jonghyuk (Korea Institute for International Economic Policy); Pak , Jinhee (Korea Institute for International Economic Policy); Kim , Hongwon (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 중국은 경제성장 둔화와 이에 따라 늘어나는 취업난에 대응하고자 창업을 적극 강조하고 있다. 2016년부터 추진 중인 「13차 5개년 규획」에서도 누구나 창업이 가능한 환경을 조성하고, 모든 사람이 혁신의 주체가 된다는 의미의 '대중창업, 만중혁신(大众创业, 万众创新)'과 기술기반의 창업자를 의미하는 ‘촹커(创客)'육성이 주요 키워드로 등장했다. 또한 전국적으로 인큐베이터 형태의 '대중창업공간(众创空间)' 설립이 확대되고 있다. 이에 본 보고서는 변화하는 중국의 창업 현황과 투자, 정책 방향에 대해 파악하고, 나아가 한국과의 창업 협력이 기대되는 쓰촨성 청두시(四川省 成都市)와 후베이성 우한시(湖北省 武汉市)의 창업 생태계에 대한 분석과 시사점을 도출했다. English Abstract: The Chinese government has been actively supporting startups in response to the slowdown in economic growth and the sluggish job market. In its 13th Five-Year Plan (2016-2020), the concepts of Dazhong Chuangye ,which signifies mass entrepreneurship and innovation, and Chuangke, which translates into "technical makers," have emerged as main keywords. In addition, the establishment of business incubator spaces called Zhongchuang kongjian,meaning "maker-spaces for the people," is expanding nationwide. Following the trend, leading cities for startups such as Beijing, Shenzhen and Shanghai, as well as other local governments, are making every effort to create a startup eco-system. Among these, Chengdu in Sichuan Province and Wuhan in Hubei Province are gaining attention. In this report, we analyze the changing trends, investment and policy directions for startups in China. We also further analyze the entrepreneurial eco-system of Chengdu and Wuhan to draw implications for future cooperation. The number of China's startups in 2015 was 4,439,000, rising to the highest ever. The hottest sector for startups was in the area of services, more particularly internet, culture and education services. Startups must overcome very fierce competition for survival, as the percentage of expert-led startups is small and startups are concentrated in similar target sectors. Investment for startups also recorded a historic amount. Along with the collapse of the stock market, unicorn companies have suffered a drop in profitability and investment for startups looks to have shrunk in the first half of 2015. However with vigorous fund exit taking place through the "new third board" OTC (over the counter) market, China remains the second-largest in number of unicorn companies in the world after the United States....(The rest is omitted.)
    Date: 2016–12–30
  13. By: Hao Chen; Bao-Jun Tang; Hua Liao; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: The negative externalities apart from carbon emissions are often neglected in most power generation planning models, which will affect the human health, biodiversity, crop yield and land use greatly. To achieve a sustainable development of China's power industry, this paper develops a deterministic linear programming model with consideration of the non-carbon externalities. This model has been applied for the case study of China for the period from 2015 to 2030, through which some interesting results have been drawn. Firstly, most of the new capacity additions are from the non-fossil fuel power plants in this planning horizon, which account for 84% of the total new capacity additions. Secondly, the power generation priority would better be given to the non-fossil fuel power plants in this horizon under the cost-effectiveness criteria. Thirdly, the minimum total cost of China's power planning is 34.48 trillion yuan, which equals to 2% of China's GDP during the planning horizon. Finally, neglecting of non-carbon externalities does have a significant influence on the power planning results, which will lead to a higher power generation share of technology with bigger negative externalities.
    Keywords: Power planning; Investing strategy; Operating strategy; Externalities; Linear programming
    JEL: Q54 Q40
    Date: 2016–10–02
  14. By: Chen, Xi; Eggleston, Karen; Ang, Sun
    Abstract: China launched a new rural pension scheme (hereafter NRPS) for rural residents in 2009, now covering almost all counties with over 400 million people enrolled. This implementation of the largest social pension program in the world offers a unique setting for studying the economics of intergenerational relationships during development, given the rapidity of China’s population aging, traditions of filial piety and co-residence, decreasing number of children, and dearth of formal social security, at a relatively low income level. We draw on rich household surveys from two provinces at distinct development stages – impoverished Guizhou and relatively well-off Shandong – to better understand heterogeneity in the impact of pension benefits. Employing a fuzzy regression discontinuity design, we find that around the pension eligibility age cut-off, the NRPS significantly reduces intergenerational co-residence, especially between elderly parents and their adults sons; promotes pensioners’ healthcare service consumption; and weakens (but does not supplant) non-pecuniary and pecuniary transfers across three generations. These effects are much larger in less developed Guizhou province.
    Keywords: Social pensions,intergenerational relationships,regional comparisons,co-residence,old-age care,service consumption,transfers
    Date: 2017
  15. By: Dustmann, Christian (University College London); Fasani, Francesco (Queen Mary, University of London); Meng, Xin (Australian National University); Minale, Luigi (Universidad Carlos III de Madrid)
    Abstract: This paper analyses the relation between individual migrations and the risk attitudes of other household members when migration is a household decision. We develop a simple model that implies that which member migrates depends on the distribution of risk attitudes among all household members, and that the risk diversification gain to other household members may induce migrations that would not take place in an individual framework. Using unique data for China on risk attitudes of internal (rural-urban) migrants and the families left behind, we empirically test three key implications of the model: (i) that conditional on migration gains, less risk averse individuals are more likely to migrate; (ii) that within households, the least risk averse individual is more likely to emigrate; and (iii) that across households, the most risk averse households are more likely to send migrants as long as they have at least one family member with sufficiently low risk aversion. Our results not only provide evidence that migration decisions are taken on a household level but also that the distribution of risk attitudes within the household affects whether a migration takes place and who will emigrate.
    Keywords: risk aversion, internal migration, household decisions
    JEL: J61 R23 D81
    Date: 2017–03
  16. By: Dzmitry Kruk
    Abstract: This work is devoted to the analysis of output downturn in Belarus in 2015. It is shown that economic downturn is not the consequence of only cyclical hesitations, but also of structural compression. Moreover, the structural component of recession in 2016 began to dominate. Downturn became the natural continuation of the long-run tendency of growth attenuation as the result of decrease in productivity. Furthermore, key cause of productivity decrease is endogenous mechanisms of "efficient production repression". External exogenous shocks in 2014-2015 only increased the tendency of productivity decrease speeding up and deepening inevitable structural downturn. In 2015-2016 economic adaptation to productivity decrease was only partial. Broader set of adaptational responses may take place in the future pointing out the protracted nature and the aggravation of the downturn. From economic policy perspective the structural nature of the recession means that "automatic" exit from crisis due to business cycle phase will not happen. In addition, standard tools of economic policy can not effect structural component of the downturn. Thus, measures for stimulating of long-run growth should become the priority of economic policy. The lack of such measures and/or postponing of this measures can lead not only to losses in long-run growth, but will generate losses in the short run.
    Date: 2016–12
  17. By: Moreira, David; Janda, Karel
    Abstract: We examine the valuation of synergies and control in mergers and acquisitions (M&A) in Central and Eastern European (CEE) transition economies. We determine this value based on comprehensive contemporaneous financial findings extracted from the Thomson Reuters database. Worldwide the market of mergers and acquisitions (M&A) is increasing, reaching in 2016 a value of 6.000 billion EUR globally. Among the CEE transition economies, the M&A total value in the same period was 50 billion EUR. It is widely accepted that between 60% and 80% of M&As are unsuccessful in value creation, so we further research evidences about an alternative framework to value the M&A also qualitatively. We develop a valuation model for prediction of the value of control and synergy in M&A deals. We suggest further directions for analysis in the field of M&A value creation, and recommend an alternative to the most used earning per share metric to enhance the predictability and transparency of valuation worldwide.
    Keywords: Mergers, Acquisitions, Synergy, Control, Corporate Governance
    JEL: G24 G34 P23
    Date: 2017–03–30
  18. By: Duc Anh Dang
    Abstract: This paper evaluates the impact of Chinese import penetration on the innovation of Vietnamese manufacturing firms from 2011 to 2015, exploiting variations in import exposure by industry specialization and instrumenting for Chinese import penetration using Chinese global exports. Contrary to the existing literature, the paper finds no systematic evidence that rising imports from China make domestic firms adopt new technologies or innovations in their products.
    Date: 2017
  19. By: Zhang, Xin; Zhang, Xiaobo; Chen, Xi
    Abstract: Previous studies evaluating the welfare cost of air pollution have not paid much attention to its potential effect on mental health and subjective well-being (SWB). This paper attempts to fill the gap by investigating the impact of air pollution on several key dimensions, including mental health status, depressive symptoms, moment-to-moment happiness, and evaluative happiness. We match a nationwide longitudinal survey in China with local air quality and rich weather conditions according to the exact time and place of survey. By making use of variations in exposure to air pollution for the same individuals over time, we show that air pollution reduces hedonic happiness and increases the rate of depressive symptoms, while life satisfaction has little to do with the immediate air quality. Our results shed light on air pollution as an important contributor to the Easterlin paradox that economic growth may not bring more happiness.
    Keywords: mental health,depression,hedonic happiness,life satisfaction,air pollution,Easterlin paradox
    JEL: I31 Q53 Q51
    Date: 2017
  20. By: Quande Qin; Xin Li; Li Li; Wei Zhen; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: Improving energy efficiency has been recognized as the most effective way to reduce the greenhouse effect and achieve sustainable development. From the perspective of air emissions, this paper adopts data envelopment analysis approach to evaluate the energy efficiency in China's coastal areas over the period of 2000-2012. Carbon dioxide, sulfur dioxide and nitrogen oxide are treated as undesirable outputs of energy consumptions. The proposed global Epsilon-based measure is used to estimate the static energy efficiency with an annual cross-section of data. The weights of the three undesirable outputs are determined according to their treatment costs. A global Malmquist-Luenberger productivity index based on directional distance function is employed to dynamically evaluate the energy efficiency. The results indicate the following in China's coastal areas: 1) the level of economic development is positively related to energy efficiency scores; 2) energy efficiency scores decrease when considering undesirable outputs except Beijing and Hainan; 3) the Circum-Bohai Sea Economic Region greatly improved energy efficiency and has great potential of air emission; 4) the annual growth rate of Malmquist-Luenberger productivity index change is overestimated; 5) energy efficiency improvement is mainly driven by technological improvement, and scale efficiency and management level are the main obstacles.
    Keywords: Energy efficiency; Data envelopment analysis; China's Coastal areas; Air emissions
    JEL: Q54 Q40
    Date: 2017–01–01
  21. By: Ke Wang; Jieming Zhang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: The trend toward a more fiercely competitive and strictly environmentally regulated electricity market in several countries, including China has led to efforts by both industry and government to develop advanced performance evaluation models that adapt to new evaluation requirements. Traditional operational and environmental efficiency measures do not fully consider the influence of market competition and environmental regulations and, thus, are not sufficient for the thermal power industry to evaluate its operational performance with respect to specific marketing goals (operational effectiveness) and its environmental performance with respect to specific emissions reduction targets (environmental effectiveness). As a complement to an operational efficiency measure, an operational effectiveness measure not only reflects the capacity of an electricity production system to increase its electricity generation through the improvement of operational efficiency, but it also reflects the system¡¯s capability to adjust its electricity generation activities to match electricity demand. In addition, as a complement to an environmental efficiency measure, an environmental effectiveness measure not only reflects the capacity of an electricity production system to decrease its pollutant emissions through the improvement of environmental efficiency, but it also reflects the system¡¯s capability to adjust its emissions abatement activities to fulfill environmental regulations. Furthermore, an environmental effectiveness measure helps the government regulator to verify the rationality of its emissions reduction targets assigned to the thermal power industry. Several newly developed effectiveness measurements based on data envelopment analysis (DEA) were utilized in this study to evaluate the operational and environmental performance of the thermal power industry in China during 2006-2013. Both efficiency and effectiveness were evaluated from the three perspectives of operational, environmental, and joint adjustments to each electricity production system. The operational and environmental performance changes over time were also captured through an effectiveness measure based on the global Malmquist productivity index. Our empirical results indicated that the performance of China¡¯s thermal power industry experienced significant progress during the study period and that policies regarding the development and regulation of the thermal power industry yielded the expected effects. However, the emissions reduction targets assigned to China¡¯s thermal power industry are loose and conservative.
    Keywords: Efficiency; Environmental effectiveness; Joint performance; Operational effectiveness
    JEL: Q54 Q40
    Date: 2017–01–03
  22. By: Ng, Sor Tho (University of Malaya); Tey, Nai Peng (University of Malaya); Asadullah, Niaz (University of Malaya)
    Abstract: This study investigates the determinants of life satisfaction among the oldest-old (i.e. individuals aged 80 or over) in China. We use the 2011/2012 Chinese Longitudinal Healthy Longevity Survey data (n = 6530) for this paper. Logistic regression is used to analyse the effects of socio-demographic, economic, health, instrumental activities of daily living, family and community factors on life satisfaction and depression among the oldest-old in China. Our analysis confirms the significance of many factors affecting life satisfaction among the oldest-old in China. Factors that are correlated with life satisfaction include respondent's sex, education, place of residence, self-rated health status, cognitive ability (using mini mental state examination), regular physical examination, perceived relative economic status, access to social security provisions, commercialized insurances, living arrangements, and number of social services available in the community (p
    Keywords: ageing, depression, happiness, health, inequality, well-being, China
    JEL: O12 I30 I31
    Date: 2017–03
  23. By: Xieshu Wang (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Joel Ruet (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Xavier Richet (Université Sorbonne Nouvelle - Paris 3)
    Abstract: The context of EU-China relations has dramatically changed over the past five years. China's interest in Europe has expanded geographically and substantially. At the broader diplomatic and strategic level, the OBOR initiative has come to symbolize China's growing significance in international affairs, reshaping regional dynamics. The European Commission and the Chinese government have agreed to enhance synergies in connectivity platforms. However, new investment trends and trade relations with China are highly differentiated across Europe and across sectors. The lack of a clearly defined OBOR plan in most European countries is weakening their bargaining power. In the meantime, China is following its flexible foreign policy approach when dealing with the EU. So far, the OBOR projects in Europe are mainly focusing on transport and infrastructure in Central, Eastern and Southern Europe. We are witnessing the reconfiguration of international institutions and the emergence of a more multi-polar global order.
    Keywords: One Belt One Road,connectivity,infrastructure,investment,governance
    Date: 2017–03

This nep-tra issue is ©2017 by J. David Brown. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.