nep-tra New Economics Papers
on Transition Economics
Issue of 2019‒06‒24
24 papers chosen by
J. David Brown
United States Census Bureau

  1. The unfinished business of state-owned enterprise reform in the People's Republic of China By Carsten A. Holz
  2. An assessment of IPA public investment in R&I in Albania By Olga Diukanova; Andrea Conte; Simone Salotti
  3. Export structure and performance in a landlocked transitional economy: The case of Kyrgyz Republic By Prema-chandra Athukorala
  4. Intergenerational Educational Mobility in Rural Economy: Evidence from China and India By Emran, M. Shahe; Ferreira, Francisco; Jiang, Yajing; Sun, Yan
  5. Do Private Household Transfers to the Elderly Respond to Public Pension Benefits? Evidence from Rural China By Nikolov, Plamen; Adelman, Alan
  6. Eurasia Integration Index By Gharleghi, Behrooz
  7. Czech Republic; 2019 Article IV Consultation-Press Release and Staff Report By International Monetary Fund
  8. Between Communism and Capitalism: Long-Term Inequality in Poland, 1892-2015 By Pawel Bukowski; Filip Novokmet
  9. Maintenance of permanent grasslands – agri-environmental protection, passive land use or constraint for the structural development? By Viira, Ants-Hannes; Ariva, Jelena
  10. Long-run dynamics of sulphur dioxide emissions, economic growth and energy efficiency in China By Hu, Bin; Li, Zhengtao; Zhang, Lin
  11. Republic of Poland; Financial Sector Assessment Program-Technical Note-Cooperative Banks and Credit Unions By International Monetary Fund
  12. Factions, Local Accountability, and Long-Term Development: Theory and Evidence By Hanming Fang; Linke Hou; Mingxing Liu; Lixin Colin Xu; Pengfei Zhang
  13. Анализ на състоянието на системата за споделяне на знания и иновации в селското стопанство в България By Bachev, Hrabrin; Mihailova, Mihaela
  14. Free Education Helps Combat Child Labor? The Effect of a Free Compulsory Education Reform in Rural China By Tang, Can; Zhao, Liqiu; Zhao, Zhong
  15. Welfare Gains from the Variety Growth By Kancs, d'Artis; Persyn, Damiaan
  16. Does Agricultural Trade promote Chinese economic growth? ARDL Approach By Bakari, Sayef; Sofien, Tiba
  17. How Did EU Membership of Eastern Europe Affect Student Achievement? By Annika B. Bergbauer; Annika Barbara Bergbauer
  18. Институты коллективных жилищных сбережений By Polterovich, Victor; Ilinskiy, Dmitry; Boltonosov, Igor; Starkov, Oleg; Tutundzhyan, Artem; Zhikhareva, Alina
  19. Does Agricultural investment still promote economic growth in China? Empirical evidence from ARDL bounds testing model By Bakari, Sayef; Sofien, Tiba
  20. The Effect of Social Interactions on Exporting Activities: Evidence from Micro, Small, and Medium-Sized Enterprises in rural Vietnam By SHIMAMOTO Daichi; Yu Ri KIM; TODO Yasuyuki
  21. Time-Varying Exchange Rate Risk Premium By D.M.Nguyen, Anh; Dai Hung, Ly
  22. Land consolidation as technical change: impacts on-farm and off-farm in rural Vietnam By Huy Quynh Nguyen; Peter Warr
  23. Financing metropolitan government in Beijing City By Roy Bahl; Baoyun Qiao
  24. Counter sanctions and well-being population of Russia: econometric analyses By Dmitriy, Skrypnik; Marina, Shakleina

  1. By: Carsten A. Holz
    Abstract: This paper examines the progress of state-owned enterprise (SOE) reform in the People’s Republic of China. After defining SOEs and considering their scope of operation within the PRC economy, the focus of the paper is on the major reform waves that followed the deterioration of SOE profitability in the early 1990s. The oil industry serves to illustrate industry-specific SOE reform trends as well as the latest reform developments. Until today, a stable, successful, longterm arrangement of state ownership has remained elusive. SOE reform is incomplete as long as a number of fundamental governance issues are not resolved. But these are difficult to resolve in the context of Party-controlled state-owned enterprises.
    Keywords: state-owned enterprise reform, People’s Republic of China, corporate governance, public enterprise management, Chinese Communist Party, state-owned asset management, industrial policy
    JEL: P00 P31 L20 P26 D22 L32 O25 O53
    Date: 2019
  2. By: Olga Diukanova (European Commission - JRC); Andrea Conte (European Commission - JRC); Simone Salotti (European Commission - JRC)
    Abstract: The European Commission's Joint Research Centre (JRC) is supporting an Innovation Agenda for the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, Republic of North Macedonia and Serbia). Smart Specialisation is the European Union (EU) place-based policy aiming at more thematic concentration in research and innovation (R&I) investments via the evidence-based identification of the strengths and potential of a given economy. Access to data and economic analysis are key to a better identification of both current and future socio-economic policy challenges. The EU Instrument for Pre-accession Assistance (IPA) supports reforms in the enlargement countries with financial and technical help. Out of the almost €650 million destined to Albania over the programming period 2014-2022, €44 are supporting competitiveness and innovation. Policy simulations using CGE modelling techniques show positive macro-economic effects of the IPA funds for competitiveness and innovation both in the short run and in the long run thanks to productivity improvements.
    Keywords: rhomolo, region, growth, impact assessment, modelling, R&D, R&I, Western Balkans, Albania, investment
    JEL: C68 E62 R13
    Date: 2019–05
  3. By: Prema-chandra Athukorala
    Abstract: Thanks to the market-oriented reforms undertaken since the early 1990s, the Kyrgyz Republic has emerged as one of the most globally integrated economies in the former Soviet space and the centre of entrepôt trade in Central Asia. However, the patterns of global economic integration of the Kyrgyz economy have so far been rather lopsided. While there have been some notable changes in the structure of exports in line with the country’s comparative advantage, export expansion has not kept pace with rapid import penetration in the economy. This has led to increased dependence of the economy on migrant-worker remittances and external financing. The composition of external financing has begun to shift from grants and concessionary loans towards borrowing at commercial rates, thus potentially exposing the economy to additional external economic shocks. A major contemporary policy challenge faced by the country is broadening the export base. This requires speedy implementation of behind-the-border reforms to supplement the significant opening of the economy to foreign trade and investment.
    Keywords: Kyrgyz Republic, transition economy, landlocked countries, export performance
    JEL: F13 O53 P27 P33
    Date: 2018
  4. By: Emran, M. Shahe; Ferreira, Francisco; Jiang, Yajing; Sun, Yan
    Abstract: We extend the Becker-Tomes (1986) model of intergenerational educational mobility to a rural economy characterized by occupational dualism (farm vs. nonfarm) and provide a comparative analysis of rural India and rural China. Using two exceptional data-sets, we estimate father-sons intergenerational educational persistence in farm and nonfarm households free of truncation bias due to coresidency. The sons in rural India faced lower educational mobility compared to the sons in rural China in the 1990s and earlier. Father’s nonfarm occupation and education were complementary in determining a son’s schooling in India, but separable in China. However, the separability observed for the older cohorts in rural China broke down for the younger cohort. Evidence from supplementary data on economic mechanisms shows that the extended Becker-Tomes model provides plausible explanations for both the cross-country heterogeneity (India vs. China), and the evolution of mobility across cohorts in China.
    Keywords: Educational Mobility, Rural Economy, Occupational Dualism, Farm-Nonfarm, Complementarity, Coresidency Bias, China, India
    JEL: J6 J62 O1 O15
    Date: 2019–05–20
  5. By: Nikolov, Plamen; Adelman, Alan
    Abstract: Aging populations in developing countries have spurred the introduction of public pension programs to preserve the standard of living for the elderly. The often-overlooked mechanism of intergenerational transfers, however, can dampen these intended policy effects, as adult children who make income contributions to their parents could adjust their behavior in response to changes in their parents’ income. Exploiting a unique policy intervention in China, we examine using a difference-in-difference-in-differences (DDD) approach how a new pension program impacts inter vivos transfers. We show that pension benefits lower the propensity of adult children to transfer income to elderly parents in the context of a large middle-income country, and we also estimate a small crowd-out effect. Taken together, these estimates fit the pattern of previous research in high-income countries, although our estimates of the crowd-out effect are significantly smaller than previous studies in both middle- and high-income countries.
    Keywords: life cycle, retirement, pension, inter vivos transfers, middle-income countries, developing countries, China, crowd-out effect, aging
    JEL: D64 H3 H55 J1 J14 J22 J26 O1 O12 O15 O16 R2
    Date: 2019–04–20
  6. By: Gharleghi, Behrooz
    Abstract: Economic integration is a process that aims to reduce barriers that exist in economic, social, and cultural affairs between countries. Integration in its current format has risen significantly since the 1980s, when several trade agreements were made to facilitate collaboration between developed and developing countries. However, there is a need to measure outcomes and understand the phenomena of integration in various respects besides the economic perspective. The idea of tighter economic integration in Eurasia is gaining attraction, largely based on the experiences of other regional economic integration projects, such as NAFTA, the EU, CEMAC, and ASEAN. The economic integration of Eurasian states has been an issue for policymakers over the last two decades. Efforts have been made to promote initiatives to integrate these countries through creating a custom union and facilitating labour and capital mobility, but so far there has not been any attempt to coordinate the monetary policies. The region of Eurasia which is going to be analysed in this project includes thirteen states: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Therefore this research is trying to identify the level of integration among these economies.
    Keywords: Eurasia Integration Index, Institution, socio-culture
    JEL: E0 E5 O1
    Date: 2019–05–02
  7. By: International Monetary Fund
    Abstract: The economy is doing well, but supply constraints are biting. Growth has slowed as the economy has reached capacity limits, with very low unemployment even as participation has increased. Recent wage increases have been very strong, ahead of productivity. So far, inflation remains contained. The economy continues to run a current account surplus, even though domestic absorption has picked up. But the housing market is pressured, especially in metropolitan areas. Policies should balance risks of overheating against a faster-than-expected slowdown and aim to boost potential growth.
    Date: 2019–06–13
  8. By: Pawel Bukowski; Filip Novokmet
    Abstract: How has Polish inequality evolved between communism and capitalism to reach one of the highest levels in Europe today? To address this question, we construct the first series on the long-term distribution of income in Poland by combining tax, household survey and national accounts data. We document a U-shaped evolution of inequalities from the end of the 19th century until today: (i) inequality was high before WWII; (ii) abruptly fell after the introduction of communism in 1947 and stagnated at low levels during the whole communist period; (iii) experienced a sharp rise with the return to capitalism in 1989. Between 1989 and 2015 the top 10% income share increased from 23% to 35% and the top 1% income share from 4% to 13%. Frequently quoted Poland's transition success has largely benefited top income groups. We find that inequality was high in the first half of the 20th century due to strong concentration of capital income at the top of the distribution. The secular fall after WW2 was largely to a combination of capital income shocks from war destructions with communist policies both eliminating private ownership and forcing wage compression. The rise of inequality after the return to capitalism in the early 1990s was induced both by the rise of top labour and capital incomes. We attribute this to labour market liberalisation and privatisation. However, the strong rise in inequality in the 2000s was driven solely by the increase in top capital incomes, which is likely related to current globalization forces. Yet overall, the unique Polish inequality history speaks about the central role of policies and institutions in shaping inequality in the long run.
    Keywords: income inequality, transformation, Poland
    JEL: D31 E01 J3 N34
    Date: 2019–06
  9. By: Viira, Ants-Hannes; Ariva, Jelena
    Abstract: This paper studies the role of market driven structural changes, and changes in agricultural policy in reconversion of permanent grassland to cropland in Estonia. Data on parcels of agricultural land and beneficiaries of direct payments in Estonia, from 2013 to 2016, and logistic regression is used in the analysis. It is argued that as a result of crisis in milk market in 2015 and 2016 some of the dairy farms changed their specialisation to cereals, oilseeds and protein crops and reconverted some of their permanent grasslands to cropland. At the same time, dairy farms who quit milk production and became specialised in cattle, sheep and goats preserved their permanent grasslands. In 2015 and 2016 the cheapest maintenance practice of permanent grassland, grass chopping, was restricted on a beneficiary’s permanent grasslands that exceeded 10 ha. This stimulated changes in land market. Some of the permanent grasslands that were preserved by passive land owners were transferred to cereals, oilseeds and protein crops farms, and cattle farms. As an adverse effect, this increased likelihood that permanent grasslands were reconverted to cropland. It is concluded that since passive land owners and cereal, oilseeds and protein crops farmers also contribute to maintenance of permanent grasslands, the cheapest maintenance practices should not be restricted. At the same time, it is crucial to improve resilience of grassland farms that contribute the most to permanent grasslands preservation.
    Keywords: Agricultural and Food Policy
    Date: 2019–05–29
  10. By: Hu, Bin; Li, Zhengtao; Zhang, Lin
    Abstract: This paper estimates the linkages among total Sulphur dioxide (SO2) emissions, total GDP and energy efficiency using China’s provincial panel data from 2002 to 2015. We investigate total emissions rather than per capita emissions or ambient concentrations, since it is total emissions that the environment cares about. Energy efficiency is estimated using stochastic frontier analysis and decomposed into both persistent and transient efficiency. We then investigate the long-run dynamics among SO2 emissions, economic growth and energy efficiency by employing the panel-based error correction model and taking the effects of cyclical variations into account. Our analysis shows that GDP has a positive impact on total SO2 emissions in the short run and gains in energy efficiency have a significant negative effect on emissions in the long run. By controlling the effects of business cycle, the effects of GDP on emissions remain positive in both short and long run. Cross-sectional analysis provides similar insights. We argue that economic growth itself is an emission generator. Therefore, the government needs to establish a long-run strategy to curb the emissions by improving energy efficiency.
    Keywords: Sulphur dioxide emissions; energy efficiency; stochastic frontier analysis; error-correction model
    JEL: Q0 Q01 Q43 Q56
    Date: 2019–04–15
  11. By: International Monetary Fund
    Abstract: This technical note reviews the cooperative bank and credit union sectors. It focuses on: (i) the situation of the two sectors that are both in states of transition; (ii) the regulatory and supervisory arrangements; and (iii) the safety net and resolution regime within the context of the crisis management framework. In addition, key perspectives are provided as to the sustainability of institutional models and the sectors within a modernizing and competitive banking sector. This note was prepared using information from the authorities and market participants that was received in the first semester of 2018 at the time of the visit of the authors. Although in some instances there is subsequent improvement in the performance of some cooperative banks and credit unions, the authors believe such changes do not modify substantially the main conclusions and recommendations made.1
    Date: 2019–06–03
  12. By: Hanming Fang; Linke Hou; Mingxing Liu; Lixin Colin Xu; Pengfei Zhang
    Abstract: We develop a theoretical model of how factional affiliation and local accountability can shape the policy choices of local officials who are concerned about political survivals, and subsequently affect the long-term local development. We provide empirical evidence in support of the theoretical predictions using county-level variations in development performance in Fujian Province in China. When the Communist armies took over Fujian Province from the Nationalist control circa 1949, communist cadres from two different army factions were assigned as county leaders. For decades the Fujian Provincial Standing Committee of the Communist Party was dominated by members from one particular faction, which we refer to as the strong faction. Counties also differed in terms of whether a local guerrilla presence had existed prior to the Communist takeover. We argue that county leaders from the strong faction were less likely to pursue policies friendly to local development because their political survival more heavily relied on their loyalty to the provincial leader than on the grassroots support from local residents. By contrast, the political survival of county leaders from the weak faction largely depended on local grassroots support, which they could best secure if they focused on local development. In addition, a guerrilla presence in a county further improved development performance either by intensifying the local accountability of the county leader, or by better facilitating the provision of local public goods beneficial to development. We find consistent and robust evidence supporting these assumptions. Being affiliated with weak factions and having local accountability are both associated with sizable long-term benefits that are evident in terms of a county’s growth and level of private-sector development, its citizens’ education levels, and their survival rates during the Great Chinese Famine. We also find that being affiliated with the strong faction and adopting pro-local policies are associated with higher likelihood of a local leader’s political survival.
    JEL: D72 H70 O1 O43
    Date: 2019–05
  13. By: Bachev, Hrabrin; Mihailova, Mihaela
    Abstract: This study analyses the state and development of the system of sharing of knowledge, innovations and digitalisation of Bulgarian agriculture. First, the scope of the study and information sources are outlined. After that analysis is made of the state and evolution of the research and development activity in Bulgaria. Following is the analysis of the state and development of major agents in the system of sharing knowledge and innovations in agriculture and the relations - the system of agrarian research, the system of agrarian education, advises and consultations, and the system of application of agrarian innovations. Next, the state and evolution of the digitalisation in agriculture and rural regions are analysed. After that the results of an expect assessments on the state, efficiency and factors of development of the system of sharing of knowledge, innovations and digitalisation in agriculture are presented. Finally, conclusions of the study are made.
    Keywords: sharing of knowledge, innovation, digitalisation, Bulgarian agriculture
    JEL: O3 O31 O32 O33 O34 O38 Q1 Q16 Q18
    Date: 2019–05–31
  14. By: Tang, Can (Renmin University of China); Zhao, Liqiu (Renmin University of China); Zhao, Zhong (Renmin University of China)
    Abstract: This paper evaluates the effect of a free compulsory education reform in rural China on the incidence of child labor. We exploit the cross-province variation in the roll-out of the reform and apply a difference-in-differences strategy to identify the causal effects of the reform. We find that the exposure to the free compulsory education significantly reduces the incidence of child labor for boys, but has no significant effect on the likelihood of child labor for girls. Specifically, one additional semester of free compulsory education decreases the incidence of child labor for boys by 8.3 percentage points. Moreover, the negative effect of the reform on the likelihood of child labor is stronger for boys from households with lower socioeconomic status. Finally, the free compulsory education reform may induce parents to reallocate resources towards boys within a household and thus may enlarge the gender gap in human capital investment.
    Keywords: free compulsory education reform, child labor, son preference, rural China
    JEL: I28 I38 O20
    Date: 2019–05
  15. By: Kancs, d'Artis (European Commission – JRC); Persyn, Damiaan (European Commission – JRC)
    Abstract: We estimate the variety gains of trade in Estonia, Latvia and Lithuania following the fall of the iron curtain more than a quarter of a century ago. We apply the methodology of Feenstra (1994); Broda and Weinstein (2006); Ardelean and Lugovskyy (2010) and Soderbery (2015) to domestic and international trade data for the period 1988-1997. Although, there was a decline in the number of local varieties during this period, an increase in the number of import varieties from the EU more than outweighed this decline. The increasing variety of imported goods from EU countries substantially lowered the cost of living, resulting in welfare gains to consumers that range from 0.73% in Latvia to 1.28% of GDP per year in Estonia.
    Keywords: variety growth, welfare gains, trade integration, iron curtain
    JEL: C68 F12 F14 F17 R12 R23
    Date: 2019–04
  16. By: Bakari, Sayef; Sofien, Tiba
    Abstract: Since the beginning of the third millennium, the Chinese agricultural exports increase at a strong pace. In this context, this paper aims to answer the question if the agriculture trade promotes Chinese economic growth by employing the ARDL bounds testing for the study period from 1984 to 2017. In the long-run, our highlights reported that domestic investment and agricultural exports have a positive effect on economic growth. However, agricultural imports have a significant negative impact on growth. In the short-run, our insights reported a positive and significant effect of domestic investment, agricultural imports and agricultural exports on economic growth. The positive impact of agriculture exports on growth is due to the importance of agriculture in terms of creating jobs and opportunities for the economy as a whole. Also, sufficient national investment in the agriculture sector leads to enlarging these opportunities and then improves the Chinese economic growth.
    Keywords: Agricultural trade; economic growth; ARDL bounds testing
    JEL: F11 F14 O47 O53 Q17 Q18
    Date: 2019–02
  17. By: Annika B. Bergbauer; Annika Barbara Bergbauer
    Abstract: The accession of Eastern European countries to the European Union increased family wealth and the returns to schooling. I analyze the change in student achievement due to the EU accession of Eastern Europe building on a panel of six PISA waves covering more than 1 million students in 32 countries. Using a difference-in-differences approach I find a positive and statistically significant link of EU membership to reading scores by one decile of a standard deviation. Mediation analysis suggests school efficiency, family wealth, and family structure as key transmitters of EU membership to student achievement.
    Keywords: European Union, student achievement, PISA
    JEL: I28 H52 L15 D82 P50
    Date: 2019
  18. By: Polterovich, Victor; Ilinskiy, Dmitry; Boltonosov, Igor; Starkov, Oleg; Tutundzhyan, Artem; Zhikhareva, Alina
    Abstract: Modern Russian bank mortgages are not widely available to low- and middle-income households due to the high cost of housing, high interest rates and strict requirements for borrowers. There are reasons to believe that the solvent demand for mortgage loans may be increased through the development of collective savings institutions and cooperatives, such as сontractual savings for housing (Bausparkassen), housing savings accounts, housing savings and housing building cooperatives. This study analyzes foreign and domestic experience of their formation and functioning. It is shown that in the current Russian conditions, Bausparkassen and housing savings accounts are the most promising institution providing accumulation of savings of the general public for the purchase of housing. It is advisable to develop corporate programs to help employees to purchase housing, and combine them with savings and loan programs. Recommendations have been developed to improve legislation aimed at establishing and improving collective savings institutions. The book is based on the research conducted under the state contract No. GK 17/235 dated November 13, 2017. "Improvement of legislative regulation in order to increase the affordability of the population's own housing, including the development of mortgage lending mechanisms, сontractual savings for housing, share building, housing building cooperatives.
    Keywords: mortgage, collective savings, сontractual savings for housing (Bausparkassen), housing savings accounts, cooperatives, share building
    JEL: D02 D14 G21
    Date: 2019–06–06
  19. By: Bakari, Sayef; Sofien, Tiba
    Abstract: One of the major unresolved research issues in agriculture is the question as to whether agricultural investments still a promoter of economic growth at the regional and local levels. The concern is not with the agricultural benefits, principally measured as food security, but whether there are additional development benefits from these investments. In this paper, we have developed a new approach to study the impact of agricultural investment on economic growth. By taking the case of China, this study is based on the Auto-Regressive Distributive Lags (ARDL) approach that is proposed by Pesaran et al (2002). The empirical estimate yields interesting results. In the short and long terms, agricultural investment has a positive effect on economic growth. The findings of this research have important implications for further policy designs that seek to maintain the agricultural sector in China in the future.
    Keywords: Agricultural Investment, Economic Growth, China, ARDL.
    JEL: C18 C5 O13 O47 O53 Q1 Q10 Q18
    Date: 2019–04
  20. By: SHIMAMOTO Daichi; Yu Ri KIM; TODO Yasuyuki
    Abstract: This study examines the effect of social interactions on exporting activities of micro, small, and medium-sized enterprises (MSMEs) in traditional apparel and textile clusters in Vietnam. To deal with econometric issues due to the reflection problem of Manski and endogeneity of network formation, we apply the estimation method developed by Bramoullé et al. (2009). Specifically, we eliminate the sub-network fixed effects using within transformation and instrument the average share of exports among peers of the focal firm by attributes of its peers' peers. This method enables us to identify the effects of exporting activities of the focal firm's peers on its own exporting activities (the endogenous effect according to Manski) and the effect of its peers' attributes (the exogenous effect). We find that peers' export share has a negative and significant effect on own export share, suggesting that the negative competition effect surpasses the positive learning effect. We also find that firms are encouraged to export by their large peers, possibly because firms can obtain technology spillovers from large peers and thus can be productive enough to start exporting.
    Date: 2019–03
  21. By: D.M.Nguyen, Anh; Dai Hung, Ly
    Abstract: We characterize the exchange rate risk premium on the context of a small open economy with controlled floating exchange rate regime. The data set includes 100 observations on case of Vietnam over 01/2011-04/2019. The risk premium is varying over time. And it is determined by output growth rate, inflation rate, foreign capital inflows and liquidity supply. As one application, the existence of time varying risk premium reduces the effectiveness of foreign exchange market intervention by forward contract.
    Keywords: Exchange Rate Premium, Foreign Exchange Intervention, Forward Contract
    JEL: F15 F36 F43
    Date: 2019–06
  22. By: Huy Quynh Nguyen; Peter Warr
    Abstract: This paper studies whether land consolidation – reduction of land fragmentation – promotes or hinders the Vietnamese government’s policy objectives of encouraging agricultural mechanization and stimulation of the off-farm rural economy. It does this by viewing land consolidation as a form of technical change, making it possible to apply the insights developed in the economic literature on technical change. This treatment reveals that the impacts of land consolidation depend partly on its factor bias and partly on the degree to which labor is substitutable in production for other factors. At a theoretical level, if a technical change is factor neutral, it will reduce off-farm labor supply and slow rural structural transformation away from agriculture; if it is labor-augmenting and the elasticity of substitution between factors is low enough, the opposite effects are predicted. The paper studies these issues empirically for rice production in Vietnam, focusing on the impact that consolidation of rice land has on rice production, machinery use, and labor allocation. The findings confirm that land consolidation raises both farm productivity and farm income and stimulates increased machinery use. It also reduces farm labor supply, lowers labor intensity in farming, and thereby releases more farm labor to off-farm development, consistent with government policy objectives. Based on these findings, the paper concludes that land consolidation should be encouraged through development of land ownership rights and the promotion of land rental markets.
    Keywords: Land consolidation, factor-biased technical change, rural diversification, machinery use
    JEL: Q15 N65 O13
    Date: 2018
  23. By: Roy Bahl (Regents Professor of Economics and Founding Dean, Emeritus, Andrew Young School of Policy Studies, Georgia State University); Baoyun Qiao (Professor of Economics and Dean of China Academy of Public Finance Policy, Central University of Finance and Economics, Beijing)
    Abstract: Beijing is one of the most populous cities in the world, and its economy is still growing rapidly. It has the peculiar status of being both a province and a metropolitan city government, and it is home to the national capital. Both of these features challenge its expenditure demands and its finances. In this paper we explore the governance, service delivery and financing of the Beijing metropolitan area government. The basic question we ask is the extent to which Beijing City captures some of the advantages of being a metropolitan areawide government, and the extent to which it avoids some of the disadvantages. In particular, we are interested in whether metropolitan governance can lead to a higher rate of revenue mobilization at the local government level. Is there a next step that cities like Beijing might take to improve their fiscal position, and what can other countries learn from the Chinese experience with metropolitan government finance?
    Keywords: Financing, metropolitan government
    JEL: A10 E20 H00 I30
    Date: 2019–03
  24. By: Dmitriy, Skrypnik; Marina, Shakleina
    Abstract: This article examines the impact of counter-sanctions on the welfare of Russia’s population. We build a multiple-choice model and calculate the probability of being in a particular group of well-being based on the price (cost) of consumed counter-sanctions goods. The next step is the construction of a structural demand-supply system for estimating similar domestic good’s production elasticities. By knowing elasticity estimates we determine the price response to particular import closure. According to our estimates Russia's counter-sanctions led to an increase in poverty by 2.64 %.
    Keywords: counter sanctions; well-being; multiple-choice model; structural demand-supply system.
    JEL: C15 C30 C35 C38 C53 D12 F14 F17 I38 Q17 Q18
    Date: 2019

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