nep-tra New Economics Papers
on Transition Economics
Issue of 2022‒02‒28
seven papers chosen by
Maksym Obrizan
Kyiv School of Economics

  1. A Comparative Analysis of Worries About a War in the Context of Ukraine-Russia Relations By Tamilina, Larysa
  2. Corporate disclosure, compliance and consequences: evidence from Russia By Banerjee, Suman; Estrin, Saul; Pal, Sarmistha
  3. Costs of Living and Real Incomes in the Russian Regions By Gluschenko, Konstantin
  4. A Country-Specific Analysis of Social Trust Formation: The Case of Ukraine By Tamilina, Larysa
  5. Liberalizing Passenger Rail: The Effect of Competition on Local Unemployment By Badura, Ondrej; Melecky, Ales; Melecky, Martin
  6. Returns to test scores in Vietnam By Vu, Tien Manh; Yamada, Hiroyuki
  7. Agricultural mechanization and gendered labor activities across sectors: Micro-evidence from multi-country farm household data By Takeshima, Hiroyuki; Diao, Xinshen

  1. By: Tamilina, Larysa
    Abstract: This study examines the formation and a consequent mutation of Ukraine-Russia relations from a so-called brotherhood to the status of an open war. Drawn upon the World Values Survey (WVS) data, I juxtapose their populations’ expectations of a war with another country or a civil war. I argue that Ukraine and Russia show significant differences in the key factors defining their people’s worries about a war, and that these differences have increased considerably with the beginning of the military conflict in the East of Ukraine. My analysis demonstrates that the current worries among the Ukrainians largely relate to a war with another country and are closely linked to the issue of building national identity and liberal democracy in Ukraine. In the case of Russia, it is the concern about freedom and security, along with income satisfaction, that strongly predict the expectations of both war types among the local population.
    Keywords: Ukraine-Russia relations, independence of Ukraine, state-building in Ukraine, national identity, WVS
    JEL: N40 Z00
    Date: 2022–01–01
  2. By: Banerjee, Suman; Estrin, Saul; Pal, Sarmistha
    Abstract: Does the introduction of corporate transparency and disclosure rules in emerging economies affect compliance, and therefore earnings quality and firm performance? We explore these questions for an important emerging economy, Russia, using a natural experiment, the 2002 introduction of Russian corporate governance code. We exploit the exogenous variation in voluntary disclosure and find a significant increase in corporate disclosure among the domestic Russian firms over the period 2003–2007 when firms gradually adopted some but not all disclosure rules. The immediate effect of the introduction was a drop in reported earnings. Market valuation, however, only improved for domestic firms after 2007, when all domestic firms had complied. However, cross-listed firms, which were already satisfying international standards, remained largely unaffected. Though average compliance by domestic firms was only 53%, average firm value of treated domestic firms, relative to cross-listed ones, went up by about 10%. Results are robust, confirm external validity and offer important policy implications for other emerging/ transition economies.
    Keywords: increased disclosure; processing cost of information; market valuation; reported earnings; cost of capital; domestic vs. cross-listed firms; 2002 Russian corporate governance code; differnence-in-difference model; Russia
    JEL: G30 K29 O38
    Date: 2021–12–17
  3. By: Gluschenko, Konstantin
    Abstract: Comparisons of well-being indicators in monetary terms across regions of a country do not provide insights into actual differences in well-being. The reason is variability of price levels across regions, especially in large countries like Russia. Thus, the indicators should be adjusted to the regional price levels, which, in turn, poses a problem of estimating such levels. In Russia, official data on price levels (termed cost-of-living indices) are available; however, they are by city/town rather than by region, so being unsuitable for regional studies. This paper describes the methodology of aggregating the city cost-of-living indices to the regional ones and presents the results obtained for 2016–2020. These results serve as a mean for estimation of price-adjusted regional incomes per capita (regional real incomes). As can be expected, taking account of regional costs of living smooths to some extent the pattern of regional inequality. A comparison of the European and Asian parts of Russia suggests that real income per capita in the latter permanently remains lower than in the former.
    Keywords: spatial price index regional price level cross-region income comparison price-adjusted income
    JEL: D31 R10
    Date: 2022–01–30
  4. By: Tamilina, Larysa
    Abstract: While social trust is seen as an important factor for political, economic and social progress in the world, its country-specific mode of formation still remains under-researched. This study focuses on Ukraine as a primary subject of analysis and attempts to define major predictors that contribute to yielding or undermining trust levels in this country’s peculiar context. A special attention is paid to the impact that the recent war with Russia has conducted on the patterns of social trust building among the Ukrainian population. The analysis is based on applying a multilevel model to the World Values Survey (WVS) data from the pre-war and the in-war periods (2011 and 2020). The results are used to argue that the process of social trust emergence is largely influenced by political conditions in Ukraine and closely linked by the Ukrainians to the issues of national identity and liberal democracy.
    Keywords: social trust, Ukraine, democracy, military conflict, WVS
    JEL: P29 P4
    Date: 2022–01–01
  5. By: Badura, Ondrej; Melecky, Ales; Melecky, Martin
    Abstract: Competitive passenger rail can help workers access new or better jobs. This paper studies the wider economic impacts on local unemployment of the liberalized passenger rail between Ostrava, the third-biggest city in the Czech Republic, and Prague, its capital. The local impacts are estimated at the LAU 1 level (administrative districts) using the difference-in-differences method. The liberalization motivated the entry of two new private providers. The resulting competition in ticket prices, the number of connections, and service quality had a strong beneficial effect on labor market connectivity. It significantly reduced unemployment in the districts along the line compared with the control districts. The effect weakens with the level of urbanization of the treated district. It could partly transmit through higher firm entry and lower firm exit in the local market, as well as better skill matching on the back of higher inward and outward migration.
    Keywords: Competition; difference in differences; districts; liberalization; local labor market; passenger transport; railways; unemployment; urbanization; EU country; OECD country
    JEL: J6 L40 R10 R40
    Date: 2022–01
  6. By: Vu, Tien Manh; Yamada, Hiroyuki
    Abstract: We examine the returns to test scores from the 2009 Vietnamese National Entrance Examination to University (NEEU) of individuals born in 1991. We investigate their labor outcomes in terms of hourly wage measured in 2018 or 2020. We find that a one standard deviation increase in the standardized test score on the NEEU is associated with a 7–9 percent increase in wage rate 9–11 years later. The results also suggest that mathematics test scores have a significant correlation with wage rate in the long run.
    Keywords: Test scores; Cognitive skills; Returns to education; Vietnam
    JEL: I26 J23 J24
    Date: 2022–01–18
  7. By: Takeshima, Hiroyuki; Diao, Xinshen
    Abstract: Gender differences in the engagement of work activities across sectors are important elements of gender inequality in rural livelihoods and welfare in developing countries. The role of production technologies, including agricultural mechanization, in addressing gender inequality, is increasingly explored. Knowledge gaps remain, however, including, how agricultural mechanization differentially affect labor engagements across sectors. This study aims to partly fill these knowledge gaps through micro-evidence from 8 countries (Ethiopia, Ghana, Nigeria, Tanzania, India, Nepal, Tajikistan and Vietnam), using several nationally representative panel data and supplementary data, and applying Correlated-Random-Effects Double-Hurdle models with Instrumental-Variables. We find that the use of tractors and/or combine harvesters by the household induces greater shift from farm activities to non-farm activities by female members than by male members. While statistical significance varies, these patterns generally hold consistently across all 8 countries studied. These patterns also seem to hold across different farm sizes. While these are short-term relations, agricultural mechanization proxied by tractor and/or combine harvesters is one of the important contributors to gendered rural livelihood. Future studies should more closely investigate underlying mechanisms and implications of these patterns.
    Keywords: ETHIOPIA; GHANA; NIGERIA; WEST AFRICA; TANZANIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; INDIA; NEPAL; SOUTH ASIA; TAJIKISTAN; VIET NAM; VIETNAM; SOUTH EAST ASIA; ASIA; agricultural mechanization; tractors; combine harvesters; gender; labour; models; data; correlated-random-effects double hurdle model; panel data
    Date: 2021

This nep-tra issue is ©2022 by Maksym Obrizan. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.