nep-tra New Economics Papers
on Transition Economics
Issue of 2017‒07‒23
thirty-two papers chosen by
J. David Brown
United States Census Bureau

  1. Impact evaluation of EU subsidies for economic development on the Hungarian SME sector By Ádám Banai; Péter Lang; Gábor Nagy; Martin Stancsics
  2. Evaluating the effectiveness of the Rural Minimum Living Standard Guarantee (Dibao) program in China By Nanak Kakwani; Shi Li; Xiaobing Wang; Mengbing Zhu
  3. Republic of Poland; Technical Assistance Report-Developing a Medium-Term Budget Framework By International Monetary Fund
  4. Czech Republic; 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Czech Republic By International Monetary Fund
  5. Взаимодействие университетских коллективов России и Китая при разработке проектов модернизации аграрной экономики: методология, направления исследований, сравнение потенциалов, социально-культурные измерения сельских территорий By Stukach, Victor; Feng, Wei
  6. Inequality of opportunity and household education expenditures: Evidence from panel data in China By Yang Song; Guangsu Zhou
  7. Political Influence, Firm Performance and Survival By Vladimir Sokolov; Laura Solanko
  8. Does the Stock Market Boost Firm Innovation?; Evidence from Chinese Firms By Hui He; Hanya Li; Jinfan Zhang
  9. Гармонизация данных государственной статистики и региональных выборочных обследований для измерения продолжительности внутренней трудовой миграции населения регионов Российской Федерации By Eldyaeva, Nina; Ekaterina, Kovanova
  10. The Consequences of an Aging Chinese Miracle By Wenli Li; Fang Yang; Michael Dotsey
  11. Spatial dependence in the growth process and implications for convergence rate: Evidence on Vietnamese provinces By Esiyok, Bulent; Ugur, Mehmet
  12. Impact of the Global Crisis on SME Internal vs. External Financing in China By ShiXue He; Marcel Ausloos
  13. Republic of Lithuania; 2017 Article IV Consultation-Press Release and Staff Report By International Monetary Fund
  14. A DSGE Model with Financial Dollarization - the Case of Serbia By Mirko Djukic; Tibor Hledik; Jiri Polansky; Ljubica Trajcev; Jan Vlcek
  15. Winning Competitive Grants For Regional Development in Albania: The Role of Local Leaders By Elvina Merkaj; Riccardo Lucchetti; Fabio Fiorillo
  16. Vietnam; 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam By International Monetary Fund
  17. Russian Federation; 2017 Article IV Consultation-Press Release; Staff Report By International Monetary Fund
  18. RIO Country Report 2016: Slovenia By Maja Bucar; Elena Gonzalez Verdesoto
  19. Divergence of opinion and long-run performance of private placements: evidence from the auction market By Han, Jianlei; Pan, Zheyao; Zhang, Guangli
  20. In Lands of Foreign Currency Credit, Bank Lending Channels Run Through? By Steven Ongena; Ibolya Schindele; Dzsamila Vonnák
  21. Republic of Latvia; 2017 Article IV Consultation-Press Release; Staff Report By International Monetary Fund
  22. Monthly Report No. 1/2017 By Rumen Dobrinsky; Doris Hanzl-Weiss; Gabor Hunya; Leon Podkaminer
  23. The EAGLE model for Hungary - a global perspective By László Békési; Lorant Kaszab; Szabolcs Szentmihályi
  24. Linear and nonlinear correlations in order aggressiveness of Chinese stocks By Peng Yue; Hai-Chuan Xu; Wei Chen; Xiong Xiong; Wei-Xing Zhou
  25. Czech Republic; Selected Issues By International Monetary Fund
  26. Republic of Latvia; Selected Issues By International Monetary Fund
  27. Changing the Role and Responsibilities of Middle Managers: A Case Study of the Implications of 'Project 5-100' at a Russian University By Farida Zagirova
  28. Republic of Lithuania; Selected Issues By International Monetary Fund
  29. Russian Federation; Selected Issues By International Monetary Fund
  30. Improving the efficiency and outcomes of the Slovak health-care system By Claude Giorno; Kristina Londáková
  31. Vietnam; Selected Issues By International Monetary Fund
  32. Promoting innovation in transition countries: A trajectory for smart specialisation By Alexander Kleibrink; Philippe Laredo; Stefan Philipp

  1. By: Ádám Banai (Magyar Nemzeti Bank (Central Bank of Hungary)); Péter Lang (Magyar Nemzeti Bank (Central Bank of Hungary)); Gábor Nagy (Magyar Nemzeti Bank (Central Bank of Hungary)); Martin Stancsics (Magyar Nemzeti Bank (Central Bank of Hungary))
    Abstract: Although EU funds play a pivotal role not only for Hungary but for the entire European Union as well, there is debate regarding their effectiveness in the literature. This paper investigates the impact of direct economic development subsidies extended in the context of the Cohesion Policy programmes as part of the 2007-2013 programming period of the European Union, on Hungarian micro, small and medium-sized enterprises. Based on a micro database, we assess the effects of the beneficiaries' first subsidies on various performance indicators, using a combination of propensity score matching and fixed effects panel regression. According to our results, economic development funds had a significant positive impact on the number of employees, sales revenue, gross value added and in some cases, operating profit. However, the labour productivity of beneficiaries was not significantly affected by any of the support schemes. Furthermore, by explicitly comparing non-refundable subsidies (grants) and refundable assistance (financial instruments) extended under the Structural Funds and the Cohesion Fund, we find that there is no significant difference in their effectiveness.
    Keywords: programme evaluation, EU subsidies, firm-level effects, propensity score matching, fixed effects.
    JEL: D04 G38 H25 O22
    Date: 2017
  2. By: Nanak Kakwani (The University of New South Wales, Australia); Shi Li (Beijing Normal University, China); Xiaobing Wang (The University of Manchester, U.K.); Mengbing Zhu (Beijing Normal University, China)
    Abstract: China’s Rural Minimum Living Standard Guarantee program (Dibao) is the largest social safety-net program in the world. Given the scale and the popularity of Rural Dibao, it is necessary to rigorously evaluate it so that policymakers know the extent to which the program meets its intended objective of reducing poverty. This paper develops some new methods and uses data from the 2013 Chinese Household Income Project (CHIP2013) to examine the targeting performance of the rural Dibao program. The paper has found that the Rural Dibao program suffers from very low targeting accuracy, high exclusion error, and inclusion error, and yields a significant negative social rate of return. It discusses possible causes and argues that the fundamental mechanism has to be redesigned to increase the effectiveness of the program. The paper makes some recommendations to reform Dibao that will significantly improve targeting and reduce the cost of running the program. That will help China to achieve its goal of eradicating extreme poverty by 2020.
    Keywords: Dibao, policy effectiveness, poverty reduction, social rate of return.
    JEL: O11
    Date: 2017–05
  3. By: International Monetary Fund
    Abstract: The Polish government has committed to a budget reform strategy that is intended to modernize, strengthen, and lift the horizon of policy-making into the medium term. The reform was introduced by the Minister of Finance, and approved by the Council of Ministers (CoM) in July 2016. The first step in the new process will take place in March 2017 with a meeting of the CoM. At this meeting, the macroeconomic and fiscal projections to be included in Poland’s Multi-Year State Financial Plan (MYSFP) will be compared to spending envelopes, and policy priorities for the coming budget will be determined. This meeting will also launch the process of preparing Poland’s first medium-term budget framework (MTBF) for the period 2018–20.
    Keywords: Europe;Poland;
    Date: 2017–06–27
  4. By: International Monetary Fund
    Abstract: The Czech economy is performing relatively well. It is a dynamic economy, open to investment and tightly integrated to global supply chains. Recent growth has been solid, employment is very high, and inflation is now back around its target, after numerous periods at zero during the past two years. Nonetheless, the Czech economy faces challenges that will require a well-calibrated combination of monetary, macroprudential, financial, fiscal, and structural policies to ensure continued steady growth.
    Keywords: Czech Republic;Europe;
    Date: 2017–06–26
  5. By: Stukach, Victor; Feng, Wei
    Abstract: The article discusses the interaction of university teams in Russia and China in the development of a project to modernize the agrarian economy. The methodological aspects, directions of work, the comparison of potentials, the approaches to socio-cultural dimensions in the agrarian economy are examined. The work is viewed as a step-by-step process: from establishing interaction between participants and coordinating the basic provisions of the research methodology to determining the directions that together form the content of the project "Comparison of modernization processes in agriculture in Russia and China." For the comparability of the dynamics of modernization processes, a list of directions and a system of indicators has been developed, and a methodology for socio-cultural measurements of rural areas is given.
    Keywords: Modernization of agriculture, agriculture in Russia, agriculture in China, parameters for comparing the potential of the agrarian economy, socio-cultural dimensions, G.Hofstede
    JEL: O21 O24 P2
    Date: 2017–02
  6. By: Yang Song (Renmin University of China); Guangsu Zhou (Nankai University, China)
    Abstract: This paper This paper offers the first empirical evidence on the impact of inequality of opportunity on household education investment by using the by using the by using the by using the by using the by using the panel data from China Family Panel Studies (CFPS) in three in three in three in three waves (2010, 2012 and 2014). Our result suggests that inequality of opportunity has a negative effect on household education expenditures. This result is robust to robustness checks. Furthermore, the disadvantaged households (whose householders with less education, income, and rural hukou status) seem to be affected more by inequality of opportunity within the county they live in. Higher inequality of opportunity in the comparison group may reduce their incentives to investment more on education. Policy suggestions to reduce inequality of opportunity may include reducing labor market discrimination based on gender and hukou, balancing education resources to create more equal educational opportunities, and offering children education subsidies in low-income families.
    Keywords: income inequality, inequality of opportunity, education expenditures, economic growth, China.
    JEL: J24 D33 O15 O53
    Date: 2017–05
  7. By: Vladimir Sokolov (National Research University Higher School of Economics); Laura Solanko (Bank of Finland)
    Abstract: We examine how regional-level political influence affects firm financial performance and survival. Combining representative survey data on mid-sized manufacturing firms in Russia with official registry data, we find that politically influential firms exhibit higher profitability and retain larger financial investments than non-influential firms. Most importantly, our empirical analysis suggests that the benefits of influence may be transient. Influential firms experienced significantly lower growth during our sample period than non-influential firms. Moreover, influential firms had a significantly higher probability of being liquidated than non-influential firms and the likelihood of the subsequent plant utilization by a new firm was higher for the politically influential liquidated firms.
    Keywords: political influence, firm performance, firm liquidation, government quality
    JEL: D22 D72 G33 G38
    Date: 2017
  8. By: Hui He; Hanya Li; Jinfan Zhang
    Abstract: The paper analyses the effect of the stock market on firm innovation through the lens of initial public offering (IPO) using uniquely matched Chinese firm-level data. We find that IPOs lead to an increase in both the quantity and quality of firm innovation activity. In addition, IPOs expand a firm’s scope of innovation beyond its core business. The impact of IPOs on firm innovation varies across financial constraints, corporate governance, and ownership structures. Our results further illustrate that IPOs induce a firm to increase the number of inventors and enable better retention of existing inventors after the IPO. Finally, we show that the enhanced innovation activity resulting from IPOs increases a firm’s Tobin’s Q in the long run.
    Date: 2017–06–30
  9. By: Eldyaeva, Nina; Ekaterina, Kovanova
    Abstract: The article is devoted to the analysis of the impact of internal labour migration of population of the Russian Federation on socio-economic development of the regions of the country. The article presents the modern problems of quantitative evaluation of migration processes, as well as the main trends of migration processes and conditions of formation of migration flows in the country.
    Keywords: Labour migration, socio-economic development of the regions, migration, interregional migration, regional economy, population migration
    JEL: J1 J11
    Date: 2017–02–08
  10. By: Wenli Li (Federal Reserve Bank of Philadelphia); Fang Yang (Louisiana State University); Michael Dotsey (Federal Reserve Bank of Philadelphia)
    Abstract: In this paper, we study the consequences of the demographic changes in China and the U.S. on the two nation’s output growth, capital accumulation, labor supply, and welfare in various economic environments including closed economies, economies with perfect capital mobility and no trade barriers, and economies with imperfect capital mobility and /or trader barriers. Our focus on only two of the largest economies in the world, China and U.S., allow us to more realistically capture each economy and make use of micro data that exhibits unique and interesting patterns such as having savings rate in China.
    Date: 2017
  11. By: Esiyok, Bulent; Ugur, Mehmet
    Abstract: Existing studies on Vietnamese provinces (e.g., Anwar and Nguyen, 2010) tend to assume that province-specific growth is independent of that in its neighbours. However, many studies analysing regional economic growth in China, Brazil and Mexico report the existence of spatial spill-over effects. This paper investigates whether this is the case for 60 Vietnamese provinces for the time-period 1999-2010, using a system-GMM estimator and a Solow growth model augmented with human and physical capital and spatial lag covariates. We report that spatial dependence is a significant determinant of growth and conditional convergence in Vietnamese provinces. We also demonstrate that the rate of convergence decreases as the distance between neighbouring provinces increases. Given these findings, we recommend testing for spatial dependence in growth models for Vietnam and beyond to avoid omitted variable bias and inform evidence-based regional policies that take account of spatial externalities.
    Keywords: Economic growth; spatial dependence; regional convergence, GMM
    JEL: C1 C18 C5 C51 O4 O47
    Date: 2017–06–15
  12. By: ShiXue He; Marcel Ausloos
    Abstract: Changes in the capital structure before and after the global financial crisis for SMEs are studied, emphasizing their financing problems, distinguishing between internal financing and external financing determinants. The empirical research bears upon 158 small and medium-sized firms listed on Shenzhen and Shanghai Stock Exchanges in China over the period of 2004-2014. A regression analysis, along the lines of the Trade-Off Theory, shows that the leverage decreases with profitability, non-debt tax shields and the liquidity, and increases with firm size and tangibility. A positive relationship is found between firm growth and debt ratio, though not highly significantly. It is shown that the SMEs with high growth rates are those which will more easily obtain external financing after a financial crisis. It is recognized that the China government should reconsider SMEs taxation laws.
    Date: 2017–07
  13. By: International Monetary Fund
    Abstract: Lithuania has experienced strong convergence since the mid-1990s, but the catch-up of productivity with Western Europe has stalled in the last three years. While a cyclical upswing is likely to lift growth to 3.2 percent this year and next, structural reforms are essential to support strong medium-term performance. The government that took office in December is committed to a “social market economy,” but its reform agenda may be difficult to implement without greater focus on key measures.
    Keywords: Lithuania;Europe;
    Date: 2017–06–30
  14. By: Mirko Djukic; Tibor Hledik; Jiri Polansky; Ljubica Trajcev; Jan Vlcek
    Abstract: We amend a DSGE model of a small open economy by adding financial euroization in order to capture the main channels of the monetary transmission mechanism in match the Serbian data. In contrast to the standard DSGE workhorse, the model encompasses commercial banks and foreign-exchange-denominated deposits and loans. Given these features, the model is well suited to evaluating effects of the nominal exchange rate on the financial wealth and consumption of households. The model structure, including optimization problems and first-order conditions, is provided in the paper. The model properties are tested to match the stylized facts of dollarized economies. Specifically, the model is calibrated to the Serbian data, and a model-consistent multivariate filter is used to identify unobserved trends and gaps.
    Keywords: DSGE model, financial dollarization
    JEL: E44 F41 F47
    Date: 2017–06
  15. By: Elvina Merkaj (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Riccardo Lucchetti (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Fabio Fiorillo (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)
    Abstract: In post-socialist countries, regional development and decentralization has been a fast process accompanied by strong deregulation and significant institutional changes. Despite the reforms in Albania, local government units (LGUs) are often significantly underfunded, understaffed and depend heavily on grants from the central government. The focus of this study is the Regional Development Fund (RDF), a competitive investment fund which finances LGUs investments. We aim to analyze the factors influencing the LGU access to RDF funds, based on a survey with LGU leaders. Political affiliation of the LGU leader, networking and the knowledge the LGU leader about the RDF procedure are important factors affecting access to RDF funds. Interestingly, however, the factors that correlate with the number of applications are different from those that explain the success rate of those applications. Our findings call for a further institutionalization of the process in order to reduce the (informal) personal and political affiliation based influences in the RDF competition.
    Keywords: Local government funds; political manipulation; network; leadership; Albania
    JEL: H77 P48 P26
    Date: 2017–07
  16. By: International Monetary Fund
    Abstract: Vietnam’s dynamic economy continues on a solid growth path, driven by robust domestic demand and export-oriented manufacturing. The new government is pushing ahead with reforms along a broad front, keenly aware of the limited fiscal space, the need to upgrade the growth model at home, and rising risks of economic fragmentation abroad.
    Date: 2017–07–05
  17. By: International Monetary Fund
    Abstract: After two years of recession, the economy is recovering due to higher oil prices and improved sentiment, amid tight fiscal and monetary policies. Medium-term prospects are nonetheless subdued given the expected stability of oil prices over the forecasting period and a structurally weak economy. Structural reforms over the past year consisted of a high profile partial privatization and other small measures.
  18. By: Maja Bucar (Visionary Analytics); Elena Gonzalez Verdesoto (European Commission - JRC)
    Abstract: The 2016 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, European Semester analysis, Slovenia
    JEL: I20 O30 Z18
    Date: 2017–06
  19. By: Han, Jianlei (Tasmanian School of Business & Economics, University of Tasmania); Pan, Zheyao (The University of Otago, New Zealand); Zhang, Guangli (Central University of Finance and Economics, China)
    Abstract: In this paper, we propose and construct a direct measure of investors' divergence of opinion based on auction bids data of the private placements in China. We find that the firms with higher bids dispersion generate lower long-run stock returns after the issuance of private placements. This effect is economically significant and robust when controlling for market discount, earnings management, analysts forecast dispersion, and self-selection bias. Moreover, this negative relation is stronger for stocks with more stringent short-sale constraints. Our findings therefore provide strong evidence in support of the Miller (1977)'s divergence of opinion hypothesis.
    Keywords: private placement; divergence of opinion; long-run stock returns; short-sale constraint; auction
    JEL: D44 G12 G14
    Date: 2017
  20. By: Steven Ongena (University of Lousanne); Ibolya Schindele (Magyar Nemzeti Bank (Central Bank of Hungary)); Dzsamila Vonnák (Magyar Nemzeti Bank (Central Bank of Hungary))
    Abstract: We study the impact of monetary policy on the supply of bank credit when bank lending is also denominated in foreign currencies. Accessing a comprehensive supervisory dataset from Hungary, we find that the supply of bank credit in a foreign currency is less sensitive to changes in domestic monetary conditions than the equivalent supply in the domestic currency. Changes in foreign monetary conditions similarly affect bank lending more in the foreign than in the domestic currency. Hence when banks lend in multiple currencies the domestic bank lending channel is weakened and international bank lending channels become operational.
    Keywords: Bank balance-sheet channel, monetary policy, foreign currency lending
    JEL: E51 F3 G21
    Date: 2017
  21. By: International Monetary Fund
    Abstract: Macroeconomic conditions are broadly sound: fiscal and current account deficits remain at prudent levels; public debt persists at a low level; and unemployment continues to fall. For the first time in the last 5 years, credit growth to the private sector is positive, signaling that the credit cycle has turned. However, growth seems to have settled at a more modest pace, and staff estimate that the post-crisis medium-term potential growth rate is lower than previously thought, with implications for the convergence path.
    Date: 2017–07–07
  22. By: Rumen Dobrinsky (The Vienna Institute for International Economic Studies, wiiw); Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw); Leon Podkaminer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Graph of the month Monthly minimum gross wage in selected countries, in EUR, mid‑year 2016 (p. 1) Opinion corner Is there an economic rationale for Poland – and other EU-CEE countries – to join the euro area? (by Leon Podkaminer; pp. 2–3) Bulgaria in the EU, 2007–2016 expectations and outcomes (by Rumen Dobrinsky; pp. 4–8) Romania ten years of EU membership (by Gábor Hunya; pp. 9–13) Bulgaria and Romania – part of the Central European manufacturing core? (by Doris Hanzl-Weiss; pp. 14–20) Recommended reading (p. 21) Statistical Annex Monthly and quarterly statistics for Central, East and Southeast Europe (pp. 22–43)
    Keywords: minimum wage, euro adoption, economic integration, EU accession, advantages of EU membership, economic integration, EU accession, Central European manufacturing core, car manufacturing cluster, trade, FDI
    Date: 2017–01
  23. By: László Békési (Magyar Nemzeti Bank (Central Bank of Hungary)); Lorant Kaszab (Magyar Nemzeti Bank (Central Bank of Hungary)); Szabolcs Szentmihályi (Magyar Nemzeti Bank (Central Bank of Hungary))
    Abstract: In this paper we adopt the Hungarian version of the EAGLE (Euro Area GLobal Economy) model. The version of the EAGLE model used in this paper allows for the high import content of export a typical feature of small open economies such as Hungary. We study the e/ects of four globally important shocks on Hungary: i) a slowdown of the Chinese economy, ii) more restrictive US monetary policy, iii)areductioninoilprices, andiv)more protectionist US trade policy. We found these policies to have non-negligible indirect e/ects (beyond the relatively small direct ones) on Hungary mostly due to the workings of the shock to the eurozone which is our main trade partner.
    Keywords: Multi-country DSGE, price and wage rigidity, EAGLE model, trade matrix, import content of export, local currency pricing, monetary policy shock, consumption preference shock, markup-shock.
    JEL: E12 E13 E52 E58 F11 F41
    Date: 2017
  24. By: Peng Yue (ECUST); Hai-Chuan Xu (ECUST); Wei Chen (SSEC); Xiong Xiong (TJU); Wei-Xing Zhou (ECUST)
    Abstract: The diagonal effect of orders is well documented in different markets, which states that orders are more likely to be followed by orders of the same aggressiveness and implies the presence of short-term correlations in order flows. Based on the order flow data of 43 Chinese stocks, we investigate if there are long-range correlations in the time series of order aggressiveness. The detrending moving average analysis shows that there are crossovers in the scaling behaviors of overall fluctuations and order aggressiveness exhibits linear long-term correlations. We design an objective procedure to determine the two Hurst indexes delimited by the crossover scale. We find no correlations in the short term and strong correlations in the long term for all stocks except for an outlier stock. The long-term correlation is found to depend on several firm specific characteristics. We also find that there are nonlinear long-term correlations in the order aggressiveness when we perform the multifractal detrending moving average analysis.
    Date: 2017–04
  25. By: International Monetary Fund
    Abstract: Czech Republic: Selected Issues
    Keywords: Europe;Czech Republic;
    Date: 2017–06–26
  26. By: International Monetary Fund
    Abstract: Republic of Latvia: Selected Issues
    Date: 2017–07–07
  27. By: Farida Zagirova (National Research University Higher School of Economics)
    Abstract: In 2013, Russia launched Project 5-100 to place five Russian universities among the top 100 university rankings by 2020. As one of the important changes within universities Project 5-100 sought an enhancement of the management system. This paper provides insights into the changing roles and responsibilities of middle managers in Russian university under Project 5-100. The theoretical approach of new managerialism was applied, using documentary analysis, semi-structured interviews and survey as data-gathering tools. The findings demonstrate that significant changes toward more a managerial character influenced the responsibilities of the heads of academic units (HAU). It reveals disagreement between managers and academics on many questions evaluating the changes. The author concludes that managers also may contribute to the implementation of Project 5-100, but agreement between different levels of staff needs to be achieved for further successful development.
    Keywords: Russia, higher education, increasing competitiveness, new managerialism, national policy implementation, middle managers, academic management.
    JEL: Z
    Date: 2017
  28. By: International Monetary Fund
    Abstract: Republic of Lithuania: Selected Issues
    Keywords: Europe;Lithuania;
    Date: 2017–06–30
  29. By: International Monetary Fund
    Abstract: Russian Federation: Selected Issues
  30. By: Claude Giorno (OECD); Kristina Londáková
    Abstract: Despite improvements over the past few decades, Slovak health outcomes remains poor compared with most other OECD countries, even after controlling for differences in per capita income and other social, cultural and lifestyle factors. Disparities in access to care and health outcomes between the Roma and the rest of the population are large. Moreover, the health-care system is a source of general discontent because of high out-of-pocket payments, long waiting lists for some medical services and widely perceived mismanagement of public health-care spending. Health-care spending is currently about in line with the country's standard of living. However, improving the efficiency of this sector is key: meeting the rising demand for medical services in the coming decades while containing government spending to maintain sound public finances will be challenging. The most pressing issues to be addressed concern: enhancing the efficiency and quality of primary care; addressing the shortage of nurses and replacing the large number of retiring physicians; modernising hospital infrastructure and management; further tightening control over pharmaceutical and other ancillary spending; developing a comprehensive strategy for long-term care; promoting better care access for the Roma population; and improving lifestyles through well-designed public health and disease-prevention policies.
    Keywords: generic drugs, health policy, medical demography, medical prevention, pharmaceutical expenditure
    JEL: I10 I11 I13 I14 I18
    Date: 2017–07–19
  31. By: International Monetary Fund
    Abstract: Vietnam: Selected Issues
    Date: 2017–07–05
  32. By: Alexander Kleibrink (European Commission – JRC); Philippe Laredo (Université Paris Est Marne la Vallée (IFRIS) and University of Manchester (MIOIR)); Stefan Philipp (Centre for Social Innovation (ZSI))
    Abstract: Innovation policies seek to prepare an economy for the future by steering it on a transformation path to make it more competitive in increasingly global and interconnected markets. While most advanced economies have a tradition of strategymaking for territorially-based innovation and economic development, transition countries moving from centralised unaccountable planning to decentralised democratic policymaking have no working, market-based practices to build on. Governments in such contexts often resort to mimicking the economic priorities and instruments of advanced countries. We suggest a trajectory for transition countries to avoid the widespread pitfall of poorly defined innovation policies by upgrading and changing their industrial polices in line with the ideas embedded in the concept of innovation strategies for smart specialisation (RIS3): (1) Build a trusted 'competence centre' to provide a comprehensive analysis of your economic fabric and coordinate the process. (2) Begin with one strong economic domain in which engaged stakeholders work together with government bodies to define joint priorities and actions (domain experimentation). (3) Start with one region to experiment different approaches at subnational level (territorial experimentation). (4) Sequence your process in a way you can harvest the low-hanging fruits in the short-term (non-R&D measures), focus on the core of your activities with high potential in the medium term, and leave R&D-heavy breakthrough programmes for the longer term.
    Keywords: innovation policy; transition countries; smart specialisation
    Date: 2017–06

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