nep-tra New Economics Papers
on Transition Economics
Issue of 2018‒06‒25
nineteen papers chosen by
J. David Brown
United States Census Bureau

  1. Listing Delays and Innovation: Evidence from Chinese IPOs By Lin William Cong; Sabrina T. Howell
  2. The Micro-Foundations of an Open Economy Money Demand: An Application to the Central and Eastern European Countries By Claudiu Tiberiu Albulescu; Dominique Pépin; Stephen M. Miller
  3. Just like a Woman? New Comparative Evidence on the Gender Income Gap across Eastern Europe and Central Asia By Blunch, Niels-Hugo
  4. Analysis of competitiveness on the market of milk and dairy products in Romania By Nica, Maria
  5. Defining aspects concerning the rural household and the sustainable socio-economic development in Romania By Chițea, Lorena Florentina; Dona, Ion
  6. Does Household Registration Matter? Valuing Urban Hukou in China By Yu Chen; Shaobin Shi; Yugang Tang
  7. Profiles of rural households in the North—East Development region of Romania. case studies By Bruma, Ioan Sebastian; Bohateret, Valentin - Mihai; Tănasă, Lucian
  8. Instability of Romania’s fruit production and the responsible factors for this phenomenon By Gavrila, Viorica
  9. Republic of Estonia; 2018 Article IV Consultation-Press Release; and Staff Report By International Monetary Fund
  10. The influence of european funds in visible development of rural areas - case study, place. Ciugud, Alba county By Dumitru, Eduard Alexandru
  11. Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firmlevel Evidence from Vietnam By Stephan Kyburz, Huong Quynh Nguyen
  12. Structural change and convergence across European regions By Tullio Buccellato; Giancarlo Corò
  13. Agri-food manufacturing sector in Romania –internal sizes and in the European context By Rusali, Mirela-Adriana
  14. Researches about the situation of the import and export of fruits in Romania in the period 2007-2016 By Micu, Marius Mihai; Gimbășanu, Gabriela Florentina; Micu, Ana-Ruxandra
  15. Development of coopeatives in the Republic of Moldova By Ignat, Anatolie; Stratan, Alexandru; Lucasenco, Eugenia
  16. Independence of central banks after the crisis - focus on Hungary By Lisa Coiffard
  17. Do High Deposit Interest Rates Signal Bank Default? Evidence from the Russian Retail Deposit Market By Maria Bondarenko; Maria Semenova
  18. Agriculture role in social-economic resilience to major economic crises in Romania By Tudor, Monica Mihaela
  19. Analysis regarding the fleet and the farm equipment in Romania compared to the European Union By Bădan, Daniela-Nicoleta

  1. By: Lin William Cong; Sabrina T. Howell
    Abstract: Regulators have suspended IPOs in China on numerous occasions, exposing firms already approved to IPO to indeterminate listing delay. These disruptions curtail firms’ timely access to risk capital and increase uncertainty. After firms ultimately list, suspension-induced delay substantially reduces their innovation activity, measured using patent quantity and quality. These effects begin during the delay and endure for years after listing, while impacts on other firm outcomes are short-lived. The corporate innovation process, like an individual’s accumulation of human capital, has a cumulative dimension. Interrupting it can be detrimental in the long term, highlighting the importance of well-functioning IPO markets.
    JEL: G3 O3
    Date: 2018–05
  2. By: Claudiu Tiberiu Albulescu (Politehnica University of Timisoara); Dominique Pépin (University of Poitiers); Stephen M. Miller (University of Nevada, Las Vegas)
    Abstract: This paper investigates and compares the effect of currency substitution between the currencies of Central and Eastern European (CEE) countries and the euro on CEE money demand functions. In addition, we develop a model with microeconomic foundations, which identifies the difference between currency substitution and money demand sensitivity to exchange rate variations. More precisely, we posit that currency substitution relates to the money demand sensitivity to interest rate spreads between 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.
    Keywords: Money demand; Open-economy model; Currency substitution; Cointegration; CEE countries
    JEL: E41 E52 F41
    Date: 2018–06
  3. By: Blunch, Niels-Hugo (Washington and Lee University)
    Abstract: I examine the incidence and determinants of the gender income gap in Kazakhstan, Macedonia, Moldova, Serbia, Tajikistan, and Ukraine using recent household data based on an identical survey instrument across countries. Four main results are established, using a range of estimators, including OLS, interval regression, and quantile regression: (1) the presence of a substantively large gender income gap (favoring males) in all six countries; (2) some evidence of a gender-related glass ceiling in some of these countries; (3) some evidence that endowments diminish the income gaps, while the returns to characteristics increase the gaps; and (4) while observed individual characteristics explain part of the gaps, a substantial part of the income gap is left unexplained. In sum, these results are consistent with the presence of income discrimination towards females but at the same time also point towards the importance of continued attention towards institutions and economic policy for decreasing the gender income gap in these former formally gender neutral economies—notably through attention towards the maternity and paternity leave system, as well as public provision of child care.
    Keywords: gender, income gap, Oaxaca-Blinder decomposition, detailed decomposition, maternity/paternity leave policies, Eastern Europe and Central Asia
    JEL: J16 J31 J7
    Date: 2018–05
  4. By: Nica, Maria
    Abstract: The dairy sector is indispensable for the overall development of an economy because it provides a vital link between agriculture and industry. This helps diversify and market agricultural products; increases farmer income; creates markets for food exports, and generates more employment opportunities. The purpose of this paper will be to identify consumers' preferences for these products, the reasons for non-consumers, the wishes of consumers, the economic and financial situation of the main milk and dairy producers, the competitive dairy market as well as the information revealed by the consumer profile questionnaire sources of information and brands known to consumers. The stage of the milk and dairy market in Romania will be assessed, and then the competitiveness on the milk and dairy market in Romania will be analysed. Competitiveness requires special attention, each company has to compare products, prices, promotion and have competitive advantages constantly. In order to determine competitiveness, marketing researches on consumer preferences for milk and dairy products will be used; at the same time, the economic and financial performance of the main economic agents on this market will be analysed. The end of this study will be concretized by the comparative analysis of consumer preferences and the order of companies offered by their economic performance.
    Keywords: competitiveness, milk market, economic performance, marketing research
    JEL: Q12 Q13
    Date: 2017–11–16
  5. By: Chițea, Lorena Florentina; Dona, Ion
    Abstract: Rural development has as main subject the rural space as a system in which the main components (natural resources, people) interfere and have a specific (economic, social, cultural, political, institutional) behaviour. The rural household is the main actor in the rural space, owner of the main (natural, human, economic, cultural) resources, which it uses at its own discretion and whose behavior is very important for the society where it belongs. The need for this study stems from the necessity of the Romanian rural household to get adapted to the new Romanian and European socio-economic development realities. Even though the modernization paradigm has been replaced by the rural development paradigm, the Romanian rural communities and agriculture must continue their modernization process, which had a sinuous evolution rather than a continuous constant evolution as in the case of the developed countries from Europe, taking into consideration the new orientations of the current rural development.
    Keywords: rural area, rural household, sustainable development
    JEL: O2 Q01 R20
    Date: 2017–11–16
  6. By: Yu Chen (University of Graz, Austria); Shaobin Shi (Shandong University, China); Yugang Tang (Shandong University, China)
    Abstract: This paper fills the gap in exploring the demand side of Hukou (household registration) granting in China. We estimate the market evaluation of the urban Hukou. According to the provision of “Acquiring Hukou by Purchasing Houses” in Jinan City's Hukou policy, this paper takes houses slightly higher than the minimum required area as the treatment group, and houses slightly lower than the minimum required area as the control group to perform regression discontinuity design. The empirical results indicate that residents’ willingness to pay for urban Hukou in Jinan City was approximately between 90,000 and 126,000 Yuan (RMB) in 2017. Our finding is robust to parameter, non-parametric estimates, and different model specifications. We also perform other falsification tests by assuming false policy introduction date and placebo tests based on rents other than housing price data. Our analysis also provides insight for the reform of Chinese Hukou system and public good provision.
    Keywords: Acquiring Hukou by Purchasing Houses, Household Registration System, Regression Discontinuity Design
    JEL: P23 H75 R38 J61
    Date: 2018–06
  7. By: Bruma, Ioan Sebastian; Bohateret, Valentin - Mihai; Tănasă, Lucian
    Abstract: The rural household epitomizes the central socioeconomic unit of the vernacular village. The territorial resources, livestock and human capital shape the particular features of each place and zone. The present study relies upon field research, namely a questionnaire undertaken in 354 rural households across the counties from the North-east Development Region. The main conclusions highlight visible zonal differences among them, all with clear distinctive features that draw the traditional element of each zone.
    Keywords: rural household, population, agricultural uses, type of land ownership, livestock
    JEL: Q15 Q24
    Date: 2017–11–16
  8. By: Gavrila, Viorica
    Abstract: The paper offers a framework of understanding the stability/instability degree of the fruit domain’s production system both at national and regional profile. We chose the utilization of Cuddy Della Valle variability index. We followed the evolution of the variability index for two different periods, respectively: 1996-2005 (P1) and the period 2006-2015 (P2). Reducing the variability index through the time is confirming the hypothesis that in case of fruit trees’ orchards in our country the production’s stability is greatly affected by the structural factors.
    Keywords: production, fruits, instability
    JEL: Q11
    Date: 2017–11–16
  9. By: International Monetary Fund
    Abstract: Estonia’s economy is performing well, underpinned by prudent economic management, ongoing structural reforms, and strong institutions. Real economic activity has surprised on the upside, bringing output above potential, and the fiscal position remains strong. Inflation has increased, but is expected to decelerate over 2018. The labor market has been tightening, and unemployment is low. Despite continued strong wage increases, rising export prices have eased pressure on corporate profitability. Over the medium term, low productivity and adverse demographics would weigh on long-term growth prospects. The authorities should take advantage of the current favorable conditions to accelerate structural reforms for sustained growth and income convergence, rather than boost demand through the expansionary policies embedded in the 2018 budget.
    Date: 2018–05–24
  10. By: Dumitru, Eduard Alexandru
    Abstract: The situation in which the Romanian rural village presents itself is not at all happy, identifying a whole series of problems that may contribute to the worst phenomenon, namely the depopulation of the rural area, characterized by the migration of young people to the big urban centers and the birth rate To an extremely low level. This country-wide phenomenon, but with a more marked manifestation in rural areas, seems to be driven by poor living conditions, lack of jobs, including life perspectives, which make young people leave regions. Those who are involved in the development of these localities are almost non-existent, most often determined by the lack of funds necessary for the investments that could develop the locality or the region, which would then attract investors, thus creating jobs, which could facilitate Leaving young people in rural areas. With the involvement of local authorities by attracting European non-reimbursable funds, the conditions for a harmonious development of these settlements could be created, in which their youth would be the engine of their development.
    Keywords: The Romanian village, the young people from rural areas, the rural environment
    JEL: Q19 R58
    Date: 2017–11–16
  11. By: Stephan Kyburz, Huong Quynh Nguyen
    Abstract: Inward foreign direct investment (FDI) is regarded as a key engine of industrial growth and technological progress, especially in emerging markets. Regarding the relevance of geographic proximity between foreign and domestic firms for FDI spillover effects, there is yet little clear evidence, owing to a lack of precise location specific firm-level data. This paper presents the so far spatially most detailed analysis of FDI spillover effects by geo-referencing the census of Vietnamese enterprises for the period 2005 to 2010, allowing us to measure the changing presence of foreign invested firms around each domestic firm. We apply a first-differenced two-stageleast- squares estimator to identify spillover effects from proximate FDI exposure on TFP growth of domestic manufacturing firms. We find positive and significant within-industry (horizontal) spillover effects within radii of 2 to 10 km, that decay beyond. Importantly, in particular small and medium enterprises (SMEs) gain from foreign firms in their vicinity. Furthermore, vertical spillovers through forward and backward linkages to other manufacturing firms are localized, while vertical spillovers from foreign firms in the service sector are less geographically restricted.
    Keywords: foreign direct investment, spillover effects, geographic proximity, horizontal and vertical linkages
    JEL: D22 D24 F23 O12 O14 O33 R11 R32
    Date: 2017–10
  12. By: Tullio Buccellato (Economic Research Department, Confindustria); Giancarlo Corò (Department of Economics, University Of Venice Cà Foscari)
    Abstract: The aim of our paper is to analyze the structural diversity of the European regions assuming the complexity of production spaces approach (Hidalgo C.A., B. Klinger, A.L. Barabási, R. Hausmann 2007). This stream of economic literature is the natural companion of the evolutionary theory of economics, where development is seen as the endogenous learning process led by the initial knowledge basis, which tends to expand in its proximity (Boschma 2005). The first step of our analysis is to map the EU regions according to their economic structure. We exploit information conveyed by Eurostat data, which are available for a balanced panel of 241 regions and 86 economic branches in 2010 and 2015. In this way we are able to construct a space characterized by technological proximity of regions. The underlying assumption is that territories with similar production structures display similar production knowledge. The second step is the construction of the network space based on the correlation matrix. In order to obtain the clusters of regions based on the similarity of their economic structure, we apply a modularity algorithm to the network. Such measures define groups based on the degree of connectedness of the observations between them and allows to measure how such groups explain the network connections using as benchmark a case in which edges where assigned randomly. Our findings suggest that regions, which are more dynamic in terms of structural change, are those with manufacturing capabilities located in Eastern European countries. Such regions were able to upgrade their competences towards more complex productions and this resulted also in a fast catch-up of their GDP per capita level with respect to other mid income regions in Western Europe. Most prosperous regions are found to be urban areas with developed creative service activities and in regions with advanced manufactures (machinery, automotive, electronics, etc.); whereas backwardness is detected in regions with a cumbersome weight of tourism related activities.
    Keywords: Regional Disparities, Growth, Structural Changes, relatedness
    JEL: O10 O25 P25 R10 L16
    Date: 2018
  13. By: Rusali, Mirela-Adriana
    Abstract: The sustainability of the food supply of the population in all Member States is a priority objective of the current CAP, with important implications both for ensuring food security and for developing the rural economy. In this context, the European sustainable development economic model promotes based on competitiveness, innovation and knowledge, where a key role lies with the small and medium-sized enterprise sector, due to its great flexibility in adapting the business to new market requirements. The research method used the comparison of the relevant economic and financial indicators for the activity of enterprises in the agro-food industry, in order to analyze the structure and level of development of the sector and to identify possible divergences between Romania and EU-28. The statistical material was provided mainly by Eurostat and NIS - The survey on the activity of the manufacturing enterprises data - NACE Rev.2 codes.
    Keywords: agri-food manufacturing, sustainable development; European Union
    JEL: L6 O5 Q1
    Date: 2017–11–16
  14. By: Micu, Marius Mihai; Gimbășanu, Gabriela Florentina; Micu, Ana-Ruxandra
    Abstract: Among the main factors that accentuate the decline of the fruit sector are the downward trend in the area of the fruit farms, their aggravated degree of aging, and the existence of many extensive farms. In addition, a generally valid problem at the agricultural level is the weak interest of young people in agricultural activities, as the National Rural Development Program 2014-2020 supports the measures created specifically for the fruit sector, but also to support farm holdings owned by young people.
    Keywords: fruit, import, export
    JEL: Q17
    Date: 2017–11–16
  15. By: Ignat, Anatolie; Stratan, Alexandru; Lucasenco, Eugenia
    Abstract: The paper presents the review of the development of cooperatives in the Republic of Moldova during the post independence period. After the massive land privatization a large number of small scale agricultural producers occurred that hardly can compete with large scale producers. This preserves a state of underdevelopment of small farmers and of the rural sector. To identify problems that jeopardize cooperation processes and potential solutions a study on the development of cooperatives in the country was carried out. The major problems and possible solutions were identified through a semi-structured survey that encompassed 150 agricultural producers purposively selected in North, Central and South regions of the country. Addressing this critical situation can be made by coagulating dispersed efforts of small scale farmers to reduce costs of purchasing agricultural inputs and services, improve the access to post harvest, processing, transportation, financing, consulting services. Access to more stable markets and negotiation of better prices and better conditions of delivery can also be achieved through consolidated efforts agricultural producers’ groups.
    Keywords: agriculture, small scale agricultural producers, agricultural cooperatives, marketing groups
    JEL: Q13 Q15
    Date: 2017–11–16
  16. By: Lisa Coiffard (Paris Institute of Political Studies, Sciences Po Paris)
    Abstract: The changes of the Hungarian financial regulation reflect the power of the Fidesz-government to challenge the European institutions. With the new structure of the Hungarian Central Bank (MNB) and unorthodox macroeconomic policy, Hungary uses the global trends in the financial sector to deviate from the European treaties. The complex European structure is not able to face the new challenges with its tools and is more than ever obliged to counter such behaviors to preserve the credibility and the values of the European project.
    Keywords: financial regulation, MNB, ECB, central banks
    JEL: E5 G2 H3 K4 N24 P2
    Date: 2018–06
  17. By: Maria Bondarenko (National Research University Higher School of Economics); Maria Semenova (National Research University Higher School of Economics)
    Abstract: In recent years the Russian banking system has witnessed numerous bank license withdrawals. Many of the failed banks had significant volumes of retail deposits in their liabilities, thus, transmitting the default burden to the Deposit Insurance Agency and ultimately to the taxpayers. In their attempt to stay in the market banks may try to attract the depositor funds even more intensively when the failure is not far away. The main assumption of this paper is that banks raise additional funds through inflated deposit interest rates – the overstatement strategy – before leaving the market. We use unique data on Russian bank deposit interest rates for deposits of different maturities in 2015–2016 combined with data about bank fundamentals coming from their financial statements. The results suggest that if a bank offers too generous interest rates for deposits for 180-365 days this can be a signal of a significantly higher probability of license withdrawal in 3 quarters. In their attempt to urgently attract funds when moving closer to default banks assign the highest rates for the longest-term deposits, with the maturity over one year. The interest rates higher than the market average dramatically increase the probability of a bank failure in 2 quarters.
    Keywords: Bank failure, Deposit interest rates, Market discipline, Personal deposits, Russia
    JEL: G21 G01 P2
    Date: 2018
  18. By: Tudor, Monica Mihaela
    Abstract: The objective of this analysis is to investigate the capacity of agriculture to actively contribute to reducing vulnerabilities and the degree of exposure of Romania’s economy to shocks caused by major economic crises. The role of agriculture, as economic and social resilience factor, is analyzed from the perspective of primary sector contribution to the attenuation of shock and to the recovery following the economic-financial crisis that started in 2008. The primary sector contribution to counterbalancing the negative effects on GDP and labour employment generated by the recent economic crisis, by increasing the turnover in agriculture and reasserting the role of occupational outlet, in the conditions of shortage on the labour market, represent a few arguments in favour of the assertion that Romania’s agriculture is a system with relatively high resilience to shocks and at the same time a supplier of economic and social resilience for the entire economy.
    Keywords: resilience; agriculture; economic crisis; Romania
    JEL: E24 O11 Q1
    Date: 2017–11–16
  19. By: Bădan, Daniela-Nicoleta
    Abstract: Taking under consideration the fact that the main factor of increasing work productivity, and increasing agricultural production is mechanization, in the present work, I want to analyze the evolution of the farm equipment fleet in Romania and the E.U. during 2010-2016, highlighting the upgrading trend of this sector compared to the demands from the Romanian farmers who buy these equipments from abroad. There are discussions regarding the decreasing of the number of workers in the agricultural sector due to the modernization and the invasion of the market with new models of tractors and equipments that ease the farmer’s work by reducing the work hours by half for the same surface compared to the European average.
    Keywords: farm equipments, agricultural flee, share, arable
    JEL: Q16
    Date: 2017–11–16

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