nep-tra New Economics Papers
on Transition Economics
Issue of 2019‒11‒04
eight papers chosen by
J. David Brown
United States Census Bureau

  1. The Banking Fragility Index Panorama in China By Wang Yunyi
  2. Analyzing China's Consumer Price Index Comparatively with that of United States By Zhenzhong Wang; Yundong Tu; Song Xi Chen
  3. Exploring cities of Central and Eastern Europe within transnational company networks: the core-periphery effect By Natalia Zdanowska
  4. Spatial polarisation within foreign trade and transnational firms' networks. The Case of Central and Eastern Europe By Natalia Zdanowska
  5. How innovation affects performance By Ksenia Gonchar; Maria Kristalova
  6. Between communism and capitalism: long-run inequality in Poland By Pawel Bukowski; Filip Novokmet
  7. Weekly idiosyncratic risk metrics and idiosyncratic momentum: Evidence from the Chinese stock market By Huai-Long Shi; Wei-Xing Zhou
  8. International Migration Processes and its Impact on the Georgian Labor Market By Nanuli Okruashvili; Lela Bakhtadze

  1. By: Wang Yunyi (Tokyo University of Foreign Studies, Tokyo, Japan,)
    Abstract: The corresponding impact on china’s banking system is becoming the focus issues of international economy and has become the major theoretical and practical issues for China to deal with the increasingly complex international economic situation. Since 2004 the formation mechanism reform started, China’s banking system experienced a steady development and the supervision on banking fragility keeps pace with times to meet the requirement of operation. How to measure a bank’s operational performance is not get to a conclusion in academic field. This paper aims to review the measurement of banking fragility index of Western and Eastern world and using data on Chinese banks to develop an index of banking fragility and subsequently examine the factors affecting the index. Industry analysis will be introduced in this paper. The academic debates on factors affecting banking fragility index are analyzed and this paper will choose a number of widely-used index for the regression test. The findings about the effective countermeasures to the banking fragility Chinese banks facing as well as the objectives of the financial reform are discussed. A conclusion presents the resulting implications for further research.
    Keywords: Banking, Fragility, China, Regression
    Date: 2019–08
  2. By: Zhenzhong Wang; Yundong Tu; Song Xi Chen
    Abstract: This paper provides a thorough analysis on the dynamic structures and predictability of China's Consumer Price Index (CPI-CN), with a comparison to those of the United States. Despite the differences in the two leading economies, both series can be well modeled by a class of Seasonal Autoregressive Integrated Moving Average Model with Covariates (S-ARIMAX). The CPI-CN series possess regular patterns of dynamics with stable annual cycles and strong Spring Festival effects, with fitting and forecasting errors largely comparable to their US counterparts. Finally, for the CPI-CN, the diffusion index (DI) approach offers improved predictions than the S-ARIMAX models.
    Date: 2019–10
  3. By: Natalia Zdanowska
    Abstract: After the Fall of the Berlin Wall, Central Eastern European cities (CEEc) integrated the globalized world, characterized by a core-periphery structure and hierarchical interactions between cities. This article gives evidence of the core-periphery effect on CEEc in 2013 in terms of differentiation of their urban functions after 1989. We investigate the position of all CEEc in transnational company networks in 2013. We examine the orientations of ownership links between firms, the spatial patterns of these networks and the specialization of firms in CEEc involved. The major contribution of this paper consists in giving proof of a core-periphery structure within Central Eastern Europe itself, but also of the diffusion of innovations theory as not only large cities, but also medium-sized and small ones are part of the multinational networks of firms. These findings provide significant insights for the targeting of specific regional policies of the European Union.
    Date: 2019–10
  4. By: Natalia Zdanowska
    Abstract: After the fall of the Berlin Wall, Central and Eastern Europe were subject to strong polarisation processes. This article proposes examines two neglected aspects regarding the transition period: a comparative static assessment of foreign trade since 1967 until 2012 and a city-centred analysis of transnational companies in 2013. Results show a growing economic differentiation between the North-West and South-East as well as a division between large metropolises and other cities. These findings may complement the targeting of specific regional strategies such as those conceived within the Cohesion policy of the European Union.
    Date: 2019–10
  5. By: Ksenia Gonchar (National Research University Higher School of Economics, Moscow); Maria Kristalova (Bremen University and Friedrich-Schiller-University Jena)
    Abstract: This paper studies how innovation strategies of Russian manufacturing firms affect various features of firm performance. A multi stage model is used, which relates the firm's decision to undertake R&D to its innovation output, technical efficiency, labor productivity, and growth. We also include imports into the knowledge production function, because catching up economies may adopt technologies embodied in imported hardware. Additionally, we link productivity and innovation output to survival. We find that both types of knowledge input - R&D and imports - strongly determine innovation. Innovations yield the strongest performance return in the case of catching up to technological frontier. Product innovation is more beneficial than process innovation in all performance features except for labor productivity. However, higher efficiency does not improve the growth rates or survival time of manufacturing firms. Taken together, these results show that innovation is not uniformly rewarded across all features of firm performance.
    Keywords: innovation, productivity, growth, survival, Russia
    JEL: C30 D24 O30
    Date: 2019–02–25
  6. By: Pawel Bukowski; Filip Novokmet
    Abstract: How has inequality in Poland evolved between communism and capitalism to reach one of the highest levels in Europe today? Pawel Bukowski and Filip Novokmet chart a century of data on Polish inequality, 1892-2015, to examine the key causes. Their work illustrates the central role of policies and institutions in shaping long-run inequality.
    Keywords: income inequality, transformation, poland
    JEL: D31 E01 J3 N34
    Date: 2019–11
  7. By: Huai-Long Shi; Wei-Xing Zhou
    Abstract: This paper focuses on the weekly idiosyncratic momentum (IMOM) as well as its risk-adjusted versions with respect to various idiosyncratic risk metrics. Using the A-share individual stocks in the Chinese market from January 1997 to December 2017, we first evaluate the performance of the weekly momentum and idiosyncratic momentum based on raw returns and idiosyncratic returns, respectively. After that the univariate portfolio analysis is conducted to investigate the return predictability with respect to various idiosyncratic risk metrics. Further, we perform a comparative study on the performance of the IMOMportfolios with respect to various risk metrics. At last, we explore the possible explanations to the IMOM as well as risk-based IMOM portfolios. We find that 1) there is a prevailing contrarian effect and a IMOM effect for the whole sample; 2) a negative relation exists between most of the idiosyncratic risk metrics and the cross-sectional returns, and better performance is found that is linked to idiosyncratic volatility (IVol) and maximum drawdowns (IMDs); 3) additionally, the IVol-based and IMD-based IMOM portfolios exhibit a better explanatory power to the IMOM portfolios with respect to other risk metrics; 4) finally, higher profitability of the IMOM as well as IVol-based and IMD-based IMOM portfolios is found to be related to upside market states, high levels of liquidity and high levels of investor sentiment.
    Date: 2019–10
  8. By: Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history)
    Abstract: The purpose of the presented paper is to analyze the impact of international migration processes on the labor market of Georgia, to develop methodological and practical recommendations on the basis of which the efficiency of the labor market will be increased. The authors of the work have identified the theoretical and practical, conceptual and organizational problems existing in the field of international migration, and worked out the specific ways of solving them.The article discusses the international migration processes of the new millennium, social, cultural and economic aspects of international migration and development in Georgia, the problems identified in the state regulation of labor migration, the scale of labor migration and the current state of its study. In the article, the authors reviewed the scope and current state of international migration, its impact on the Georgian labor market, long-term results of labor mobility. The goals , strengths and weaknesses of the migration policy of the Government of Georgiaare analyzed, the basic directions and mechanisms of its realization. It analyzes the fact that, only by effective marketing of the labor market, of the country will make maximum use of the global challenges, associated with international migration processes. The authors have estimated systems of specific measures that will ensure the effective functioning of the Georgian labor market in the growth of international migration and the full involvement of the country in integration processes.
    Keywords: International Business, International Migration, Labor Market, Migration Policy, Marketing of the Labor Market
    JEL: F00 F66 F22
    Date: 2019–07

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