nep-tra New Economics Papers
on Transition Economics
Issue of 2021‒12‒06
six papers chosen by
Maksym Obrizan
Kyiv School of Economics

  1. Foreign Labor Migration Control in Russian Regions using Multicultural Barometer (The Case of the Republic of Karelia, Russia) By Pitukhina, Maria; Pitukhin, Eugene; Radikov, Ivan; Tolstoguzov, Oleg; Kulakova, Lyubov
  2. Regional Disparities and Fiscal Federalism in Russia By Ms. Annette J Kyobe; Oksana Dynnikova; Mr. Slavi T Slavov
  3. The Fiscal Multiplier of European Structural Investment Funds: Aggregate and Sectoral Effects with an Application to Slovenia By Mr. Raphael A Espinoza
  4. Dynamic analysis of loneliness and disability at older ages in Europe by gender By Pagan, Ricardo; Malo, Miguel
  5. Understanding the Role of Perceived Land Rights in the Formation of Farmers’ Intentions: Evidence from Central Asia By Akhmadiyeva, Zarema; Herzfeld, Thomas
  6. A GDP impact evaluation of R&D investments in Romania using the CGE model Rhomolo By Olga Diukanova; Mariana Chioncel

  1. By: Pitukhina, Maria; Pitukhin, Eugene; Radikov, Ivan; Tolstoguzov, Oleg; Kulakova, Lyubov
    Abstract: The article deals with foreign labor migration flows control as well as migration monitoring which are important for the Russian Federation regions’ economy development. A new migration monitoring toolkit is proposed by the authors - Multicultural Barometer. It allows to quantify migration indicators in a region from 4 various angles: labor market; national identity; migrants’ adaptation; migrants’ integration. The research data is coming from open sources (Federal Migration Service of the Republic of Karelia, Ministry of Labor and Employment of the Republic of Karelia, data obtained from Centers for Interethnic Cooperation in Karelian municipalities); both migrants’ pilot survey and host community survey organized in 18 municipalities of the Republic of Karelia. The study conducted in Karelia seems to be important in a context of its geographical location (on a border with Finland) highlighting both successful practices and developing new tools for migration monitoring aimed at scientifically based solutions for migration control. Multicultural barometer as a tool was recommended by the Federal Agency on Ethnic Issues of Russia (FADN) and Strategic Initiatives Agency in 2017 as best regional practice for further implementation all over the Russian Federation.
    Keywords: foreign labour migration; migration flows control; Multicultural barometer; migrants’ integration; migrants’ adaptation
    JEL: J15 J61
    Date: 2020–01–07
  2. By: Ms. Annette J Kyobe; Oksana Dynnikova; Mr. Slavi T Slavov
    Abstract: This paper examines how regional disparities have evolved in Russia and how Russia’s system of intergovernmental fiscal relations is managing these disparities. Regional disparities have fallen over the past two decades but remain relatively high. Socioeconomic outcomes remain worse in lagging regions despite faster growth and convergence in income levels. The twin shocks of COVID-19 and lower oil prices appear to have impacted richer regions disproportionately. Compared to other large countries with federal systems of government, Russia stands out with its high reliance on direct taxes as a revenue source for its regions. Transfers from the federal budget to the regions provide some redistribution by reducing the dispersion in real per capita fiscal spending, but also tend to be associated with lower growth. The Russian fiscal system offers degrees of redistribution and risk sharing of around 26 and 18 percent, respectively—with in-kind social transfers contributing the most. Finally, federal transfers in the aggregate tend to be procyclical and are also fairly unresponsive to shocks to regions’ own revenues.
    Keywords: risk sharing; Russia's system; transfers from the federal budget; complex system; inequality in Russia; Income; Income inequality; Disposable income; Fiscal federalism; Global
    Date: 2021–05–20
  3. By: Mr. Raphael A Espinoza
    Abstract: In this paper, we estimate the aggregate and sectoral fiscal multipliers of EU Structural Investment (ESI) Funds and of public investment at the EU level. We complement these results with a specific application to the case of Slovenia. We first analyze aggregate data and find large and significant multipliers and strong crowding-in of private investment. Our main findings show that positive shocks to ESI Funds are followed by an increase in output that ranges from 1.2 percent on impact, to 1.8 percent after 1 year, and by an increase in private investment between 0.7 and 0.8 percent of GDP. We address country heterogeneity by dividing countries according to key characteristics that have been known to affect multipliers. In particular, we find higher multipliers in a group of CEE countries that are important recipients of European funds and are characterized by fixed exchange rate regimes and sound public investment governance (e.g. Croatia and Slovenia). We also complement the aggregate analysis by estimating the effect of different types of public investment and the effect of public investment on different sectors of the economy.
    Keywords: aggregate multiplier; sectoral multiplier; aggregate analysis; public investment; impact multiplier; Public investment spending; Private investment; Public employment; Manufacturing; Employment; Eastern Europe
    Date: 2021–04–30
  4. By: Pagan, Ricardo; Malo, Miguel
    Abstract: In this article, we analyse loneliness trajectories for older people aged 50 or more in selected European countries by gender. We focus on the relationship between disability and disability trajectories and loneliness trajectories. We use three waves of the longitudinal SHARE database. We find that permanent loneliness is not generalised, but 31 per cent of older males and 44 per cent of females suffer from loneliness in at least one of the three waves. Disability increases loneliness persistence, especially for women. Improvements in disability decrease the risk of loneliness persistence, but this effect is smaller than for disability status and there are no clear differences by gender. The rankings of the country effects on loneliness persistence by gender provide only partial support, with Mediterranean and Eastern European countries having the highest persistence, while the lowest rates are found in Northern countries, as in the previous comparative literature on loneliness.
    Keywords: Loneliness persistence; disability persistence; disability dynamics; aging; cross-national comparison
    JEL: J10 J14 J18
    Date: 2021–11–10
  5. By: Akhmadiyeva, Zarema; Herzfeld, Thomas
    Keywords: Land Economics/Use, Farm Management
    Date: 2021–08
  6. By: Olga Diukanova (European Commission - JRC); Mariana Chioncel (University of Bucharest)
    Abstract: This study evaluates the potential economic impacts of Research & Development (R&D) investments in Romania during the 2021-2027 policy cycle. The assessment is based on three distinct R&D investments scenarios: (1) 2% Gross domestic Expenditure on R&D (GERD) intensity target achieved by 2029, with equal split between public and private investment, in accordance with the R&D investment targets declared in the national strategic documents; (2) gradual increase of GERD intensity to 2.25% by 2029, with public investment of 1.25% of GDP (in line with the new ERA target); and (3) 0.48% of GDP, “business as usual’ scenario (following the same investment pattern as in the past years). The results of computer simulations with the RHOMOLO model, which is a dynamic multi-regional computable general equilibrium (CGE) model developed by the Joint Research Centre (JRC) of the European Commission, show that the most pronounced GDP impacts in Romania would be achieved with the highest intensity of R&D policy funding. Aside from the capital city region RO32, the less developed regions RO12, RO22, RO31 and RO41 exhibit the highest GDP multipliers across Romanian regions, which indicates the high potential of R&D funding in these regions. The strongest spillover effects emerge from the regions that in certain years make substantial R&D domestic private and public investments relative to the size of their economies. Although R&D investments augment factor productivity that depreciates gradually in the absence of continuous funding, the strength of lagged effects of R&D funding depends on the intensity of R&D investments rather than on the source of funding. However, in the short run, the economic cost for Romania is determined by the source of R&D investments: despite their small size, the EU investments that are largely financed by other EU member states, produce quite sizeable GDP multipliers in Romania compared to the national public and private investments.
    Keywords: RHOMOLO, Cohesion Policy, regional growth, regional development, Romania.
    JEL: C68 R13
    Date: 2021–11

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