nep-tra New Economics Papers
on Transition Economics
Issue of 2021‒07‒26
ten papers chosen by
Maksym Obrizan
Kyiv School of Economics

  1. Identifying complementary relationships between different types of innovation: Evidence from Community Innovation Survey 2012 By Stojkoski, Viktor; Toshevska-Trpchevska, Katerina; Makrevska Disoska, Elena; Tevdovski, Dragan
  2. Regional inequality in Russia: Anatomy of convergence By Gluschenko, Konstantin
  3. Poverty in Russia: A Bird's-Eye View of Trends and Dynamics in the past Quarter of Century By Abanokova, Kseniya; Dang, Hai-Anh
  4. Human capital transfer of German-speaking migrants in Eastern Europe, 1780s-1820s By Blum, Matthias; Krauss, Karl-Peter; Myeshkov, Dmytro
  5. Innovation in the public services at the local and regional level By Irena Dokic; Ivana Rasic; Suncana Slijepcevic
  6. The China-Central Asia-West Asia Economic Corridor of the Belt and Road Initiative's Economic Impact on Kazakhstan By Çınar, Müge
  7. Public Procurement Efficiency As Perceived By Market Participants: The Case Of Russia By Olga Balaeva; Yuliya Rodionova; Andrei A. Yakovlev; Andrey Tkachenko
  8. The measurement of transaction costs in Poland, 1996-2014 By Graca-Gelert, Patrycja; Sulejewicz, Aleksander
  9. Adoption of digital and ICT technologies and firms’ productivity By Zoran Aralica; Bruno Skrinjaric
  10. Cross-country evidence on the determinants of preferences for redistribution By Grimalda, Gianluca; Pipke, David

  1. By: Stojkoski, Viktor; Toshevska-Trpchevska, Katerina; Makrevska Disoska, Elena; Tevdovski, Dragan
    Abstract: We explore the complementarities between technological and organizational innovations by utilizing cross-sectional data taken from the Community Innovation Survey - CIS2012 for two group of countries: Central and Eastern Europe (CEE - Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Romania, Slovakia and Slovenia) and Western European countries (WE - Germany, Spain, Norway and Portugal). We find that in CEE there is no complementarity between the different types of innovation analyzed. On the other hand, we show that probably in WE there is complementary relationship between organizational and process innovations, but not between organizational and product innovation. Altogether, this indicates that there is a variety in the relationships between the types of innovation in more developed countries (the WE group), but not in less developed countries (CEE group).
    Keywords: innovation, complementarity, CDM model, Western Europe, Central and Eastern Europe
    JEL: O31 O33
    Date: 2021–07
  2. By: Gluschenko, Konstantin
    Abstract: During the last 15–20 years, inequality between Russian regions in terms of real personal incomes per capita was decreasing. This paper aims at revealing the “anatomy” of this phenomenon. To do so, time series of every regional income per capita is tested for catching-up with the national income per capita. Nonlinear asymptotically subsiding trends model the processes of convergence. The data cover 2002–2018 with a monthly frequency. Real incomes are estimated by adjusting nominal incomes to regional price levels. The results obtained suggest that 54.4% of the Russian regions exhibit convergence, and 20.3% of regions retain (approximately) stable income gap. At the same time, there is a significant proportion of deterministically diverging regions, equaling 22.8%. Random walks are detected in two regions only.
    Keywords: Russian regions, real income, catching-up, nonlinear trend
    JEL: C32 I31 O18 R11
    Date: 2021–07–13
  3. By: Abanokova, Kseniya (Higher School of Economics, National Research University); Dang, Hai-Anh (World Bank)
    Abstract: Hardly any recent study exists that broadly reviews poverty trends over time for Russia. Analyzing the Russian Longitudinal Monitoring Surveys between 1994 and 2019, we offer an updated review of poverty trends and dynamics for the country over the past quarter of century. We find that poverty has been steadily decreasing, with most of the poor having a transient rather than a chronic nature. The bottom 20 percent of the income distribution averages an annual growth rate of 5 percent, which compares favorably with that of 3.3 percent for the whole population. Income growth, particularly the shares that are attributed to labor incomes and public transfers, have important roles in reducing poverty. Our findings are relevant to poverty and social protection policies.
    Keywords: RLMS, income mobility, income growth, poverty dynamics, poverty, Russia
    JEL: C15 D31 I31 O10 O57
    Date: 2021–07
  4. By: Blum, Matthias; Krauss, Karl-Peter; Myeshkov, Dmytro
    Abstract: Prior to the Age of Mass Migration, Germans left central Europe to settle primarily in modernday Hungary, Serbia, Romania, Ukraine and Russia. Despite the harsh conditions that the first generation of settlers had to endure, their descendants often fared better, not worse, compared to native population groups. This study offers a possible explanation for this surprising outcome. We use data on approximately 11,500 individuals to estimate and compare basic numeracy scores of German settlers and other populations groups in target regions. We find that German settlers generally had superior basic numeracy levels, suggesting that these settlers must have contributed positively to the human capital endowment in their target regions. The numeracy of Germans was somewhat higher than the numeracy of Hungarians and substantially higher than the numeracy of Russians, Ukrainians and Serbs. We do not find noteworthy differences in terms of numeracy between German emigrants and the population they left behind, suggesting the absence of substantial migrant selection.
    Keywords: Migration,Economic History,Germany,Hungary,Russian Empire,Ukraine,Eastern Europe
    JEL: N13 N23
    Date: 2021
  5. By: Irena Dokic (Euro ekspertiza j.d.o.o.); Ivana Rasic (The Institute of Economics, Zagreb); Suncana Slijepcevic (The Institute of Economics, Zagreb)
    Abstract: Awareness of the importance of innovation in the public sector is increasing. It should create added public value to the citizens and the society. Public sector innovation is a challenge, but it is also increasingly recognized as a solution to growing budgetary pressures. The paper explores the implementation of innovation in public services at the local level in Croatia. Most of the research conducted so far explores the role of the private sector in the implementation of innovation in the public sector. The objective of this paper is to analyse results of a survey that has been conducted on a sample of representatives of local and regional government in Croatia (big cities and counties) and representatives of local action groups (LAGs) and local/regional development agencies (LRDAs) to examine the ability of Croatian local and regional public sector to innovate and identify the barriers that may hinder the process of introduction and implementation of this innovation. It, thus, explores the main barriers for the implementation of innovative activities at the local level from the perspective of different local actors. The results show that three factors that hinder the process of introducing innovation into the Croatian public sector are competence-related obstacles, bureaucratic barriers, and funding difficulties.
    Keywords: innovations, public sector, post-transition, local and regional government
    JEL: H83 H75 O3
    Date: 2021–02
  6. By: Çınar, Müge
    Abstract: In September 2013, Chinese President Xi Jinping introduced an ambiguous, geoeconomic & geostrategic concept, “One Belt One Road,” during his visit to Kazakhstan. This global infrastructural development strategy was later defined as the Belt and Road initiative, which is an umbrella for the concepts of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. the Belt and Road Initiative set out to accomplish more advanced transport connections and better economic integration of the member countries. it also aims for interconnection in finance, policies, and infrastructure. Kazakhstan, whose energy and transport infrastructure China has already invested in prior to the BRI, is essential for the SREB, the land-based section of the BRI since it occupies a crucial geostrategic position in the region. Kazakhstan, apart from its great landmass in Euroasia that makes it a linchpin for transport and trade links on the continent, holds large energy reserves. Moreover, it is the strongest economy in the region. Thus, “China considers Kazakhstan crucial for transit, a source of energy, and as a stable neighbour of its unstable Xinjiang province”. This article, It is aimed to analyze the importance of the China-Central Asia-West Asia Economic Corridor of the Belt and Road Initiative's Economic Impact on Kazakhstan.
    Date: 2021–01–08
  7. By: Olga Balaeva (National Research University Higher School of Economics); Yuliya Rodionova (National Research University Higher School of Economics); Andrei A. Yakovlev (National Research University Higher School of Economics); Andrey Tkachenko (National Research University Higher School of Economics)
    Abstract: This paper studies the indicators of public procurement efficiency as perceived by public buyers and suppliers and what barriers must be overcome for them to consider public procurement efficient. The analysis, based on an online survey of Russian procurers and suppliers in 2020, reveals that, despite the importance of fighting corruption and increasing competition, most procurers and suppliers consider the supply of high-quality goods and timely contract execution the most important criteria. The natural experiment with COVID-19 has mitigated the rigidity of the regulation problem but exacerbated the ambiguity problem. During the pandemic, public procurement contract execution worsened. To improve procurement efficiency, the regulator should clearly specify its requirements and consider the main participants’ interests.
    Keywords: public procurement; efficiency; regulation; COVID-19; suppliers; procurers, Russia.
    JEL: H57
    Date: 2021
  8. By: Graca-Gelert, Patrycja; Sulejewicz, Aleksander
    Abstract: The empirical validation of the transaction cost concept proved to be a major intellectual endeavour that has yielded only partial success. Particular difficulties have been encountered in the measurement of such costs at the micro or macro level. The paper of Wallis and North (1986) is one attempt to provide a measure of transaction costs in the national economy. Their attempt is to define “transaction sectors” and relate the levels of output (i.e. costs incurred) in such sectors to the level of gross national / domestic product. Among these costs one finds: a) costs of management, sales, administration and control, b) costs of financing, insurance, distribution, c) (some of the costs) of the public sector / the State. Apart from the original research concerning the US, there have been relatively few studies describing other economies (e.g. Australia, Argentina, Bulgaria). The paper joins the discussion on the macroeconomic interpretation of transaction costs started by Wallis and North. While we had hoped to trace the evolution of the transaction sectors as well as the pattern of transaction activities in non-transaction sectors as defined above, the availability of data prevented us from accomplishing ambitious research tasks. This paper is basically a replication of the study Wallis and North (1986) did for the US albeit for a much shorter time span (nineteen years). It contains a short description of the methodology used by these authors, the application of the method to the data on the Polish economy from the mid-1990s to 2014. We compare the findings with Wallis and North and other authors of studies on macroeconomic transaction costs and provide some interpretations of the results. Basically, our findings are remarkably close to the estimates of other teams. However, serious ambiguities in Wallis-North conceptualization make us sceptical as to the merits of this research subprogramme within neo-institutional economics. The implications for the understanding of economic growth and development remain unclear.
    Keywords: Poland, transaction costs, transaction sector
    JEL: D23 O11 O52 P27
    Date: 2021–07–20
  9. By: Zoran Aralica (The Institute of Economics, Zagreb); Bruno Skrinjaric (The Institute of Economics, Zagreb)
    Abstract: This paper has two main goals. First, it aims to answer the question on how the usage of ICT and digital technologies affects firm productivity. Second, it aims to analyze how change in the share of the manufacturing sector and/or the service sector in a given region direct changes in firm productivity. The analysis was carried out using a financial dataset of Croatian enterprises in the period from 2009 to 2019 and Eurostats’ Digital Economy and Society data, based on “Community survey on ICT usage and ecommerce in enterprises”. The data were analyzed using principal component analysis and panel data methods. The results indicate a positive relationship between adoption of ICT technologies and firm productivity, and a negative correlation between adoption of digital technologies and firm productivity. Furthermore, the results show a high degree of deindustrialization of certain regions and a positive correlation between industry intensity in certain regions and firm productivity. Finally, there seems to be a positive premium on productivity for larger-sized firms, firms participating in international trade, companies situated near to key international markets (i.e., located in counties bordering with the City of Zagreb).
    Keywords: ICT, digital technologies, economy structure, productivity, Croatia
    JEL: O14 O33
    Date: 2021–04
  10. By: Grimalda, Gianluca; Pipke, David
    Abstract: Redistribution differs widely across countries, but our understanding of why this is the case is limited. In democracies, the extent of redistribution should ultimately reflect citizens' preferences. We measure preferences for redistribution in six developed countries through internationally standardized questions in which respondents are faced with realistic budgetary constraints on their choice. We also measure a broad array of demographic, attitudinal, and ideological characteristics and examine their correlations with the preferred pattern of redistribution. As expected, individual income is associated with lower demand for redistribution, but this relationship loses significance once other factors are controlled for. Beliefs on social mobility have, in the aggregate, the largest effect in reducing demand for redistribution, the effect being largest in the US but insignificant in Italy and Slovenia. Trust in government has a negative effect on demand for redistribution across all countries. In line with other studies, we interpret this result as evidence that people believing that the political élite is corrupt demand more redistribution. Financial security, a proxy for the Prospect of Upward Mobility hypothesis, is also a significant correlate of preferences for redistribution, the effect being largest in Japan but small in the UK and Slovenia. Finally, discrimination of racial minorities is associated with lower demand for redistribution, but the effect is only significant in the US and Germany. Overall, the main theories that have been proposed to account for preferences for redistribution are confirmed to be valid, but with significant variation across countries.
    Date: 2021

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