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on Transition Economics |
| By: | Vesa Kanniainen; Juha-Matti Lehtonen |
| Abstract: | Following Russia’s attack on Ukraine on February 24, 2022, Western countries have been providing military assistance to Ukraine. However, relative to GDP, the support from the small Baltic and Nordic countries has been greater than that of the larger European NATO countries. This article introduces first an alliance model to examine the incentive for alliance member countries to invest in their own national security in a deterrence equilibrium with no warfare. It is shown that an underinvestment incentive arises. The Russian invasion to Ukraine changed the rules of the game. Therefore, the article offers an explanation for the distribution of Ukrainian military assistance based on the national security classification of European NATO member states in a two-stage game-theoretic model. This distribution turns out to be conditional on the expectations associated with the second stage of the war game if Russia wins the war in its first stage and if there is uncertainty about NATO's ability to commit to its Article 5 to provide security to all of its members. |
| Keywords: | military aid to Ukraine, alliance theory, NATO, two-stage game |
| JEL: | D72 D74 H56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11609 |
| By: | David G. Blanchflower; Alex Bryson |
| Abstract: | We report on the wellbeing of the young in 31 Ex-Soviet Republics located in Eastern Europe and Central Asia. We find no evidence of the decline in the mental health of the young relative to older people which characterizes Western Europe and English-speaking advanced economies. The mental health of the young in ex-Soviet republics is stable relative to older people across various surveys including the Gallup World Poll, the Eurobarometers, the World Values Surveys and the European Social Survey, as well as in surveys from the European Bank of Reconstruction and Development and UNICEF. However, there are two exceptions. A 2023 Flash Eurobarometer Mental Health survey conducted by the European Commission shows unhappiness declines in age in every EU member country including 11 in Eastern Europe. A similar finding emerges in our analysis of the web-based Global Minds surveys of 2020-2024 in 9 former Soviet republics. Youngster ages 18-24 in these surveys are especially unhappy. Furthermore, in keeping with research on children aged 15-16 in the PISA surveys in other countries, we find life satisfaction of these school children in ex-Soviet Republics declined over the period 2015-2022 and that, among this group, time spent on digital devices was associated with lower happiness. |
| JEL: | I31 J13 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33356 |
| By: | Kris De Jaegher; Michal Šoltés; Vitezslav Titl |
| Abstract: | Public procurement contracts require frequent renegotiation. We exploit the Czech implementation of an EU policy as a natural experiment to investigate the effect of eased renegotiation rules. We document that the eased renegotiation rules decreased winning bids but did not change the final price: the extra renegotiated price compensates for the lower winning bids. We next develop a stylized theoretical model to explain these results. Finally, we provide suggestive evidence of changes in contract allocation, but find no evidence of any reduction in the quality of the delivered objects. |
| Keywords: | public procurement, renegotiation, contracts |
| JEL: | H57 D44 D73 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11603 |
| By: | Eldar Knar |
| Abstract: | This article analyses the structural and institutional barriers hindering the development of scientific systems in transition economies, such as Kazakhstan. The main focus is on the concept of the "middle science trap, " which is characterized by steady growth in quantitative indicators (publications, grants) but a lack of qualitative advancement. Excessive bureaucracy, weak integration into the international scientific community, and ineffective science management are key factors limiting development. This paper proposes an approach of "homeopathic modernization, " which focuses on minimal yet strategically significant changes aimed at reducing bureaucratic barriers and enhancing the effectiveness of the scientific ecosystem. A comparative analysis of international experience (China, India, and the European Union) is provided, demonstrating how targeted reforms in the scientific sector can lead to significant results. Social and cultural aspects, including the influence of mentality and institutional structure, are also examined, and practical recommendations for reforming the scientific system in Kazakhstan and Central Asia are offered. The conclusions of the article could be useful for developing national science modernization programs, particularly in countries with high levels of bureaucracy and conservatism. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.15996 |
| By: | Saioa Armendariz; Carlos de Resende; Alice Fan; Gianluigi Ferrucci; Bingjie Hu; Sadhna Naik; Can Ugur |
| Abstract: | This paper examines competitiveness and productivity in the Baltics. Focusing on recent developments, it asks why Russia’s war in Ukraine led to a prolonged recession and strong decline in competitiveness in Estonia, while Latvia and Lithuania shielded their economies more effectively. The paper starts by documenting a deterioration in export performance across the region. Using a constant share decomposition, it finds that, unlike in Latvia and Lithuania, Estonia’s declining export share has been mainly linked to a reduction in the ‘intensive margin’—a sign of weakening external competitiveness and declining relative productivity. Multivariate filtering techniques and estimates of the real effective exchange rates based on historical productivity trends, consistent with Balassa-Samuelson, confirm that differences in long-term total factor productivity growth have affected external competitiveness. While Estonia’s post-GFC slowdown in productivity growth and real exchange rate appreciation have eroded its competitive edge, Latvia and Lithuania have shown greater resilience, aided by more balanced real effective exchange rates and, for Lithuania, stronger corporate balance sheets. A micro-econometric analysis further reveals that resource misallocation, particularly in the services sector, has been a key driver of declining productivity in the region. These findings underscore the need for targeted reforms to improve allocative efficiency, boost productivity, and restore competitiveness in the Baltic region. |
| Keywords: | Export shares; Competitiveness; Productivity; Baltics |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/018 |
| By: | Dung Quang Le (National Economics University, Vietnam Author-2-Name: Trang Quynh Phama Author-2-Workplace-Name: University of East London, UK Author-3-Name: Thi Phuong Nguyenb Author-3-Workplace-Name: International School, Vietnam National University, Hanoi, Vietnam Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - The primary objective of this exploratory research is to investigate the factors affecting investment behavior in the Vietnamese Bitcoin market. Methodology/Technique – The study employs quantitative research methods, including surveys of the Vietnamese Bitcoin market, to gain valuable insights into the factors influencing investment behavior. It uses exploratory factor analysis and regression analysis for data analysis. Findings – Research results show that there are 5 factors affecting Bitcoin investment behavior in Vietnam: benefits, past experience, national laws, crowd effects, and the Bitcoin market. Among them, the two most influential factors are national interests and laws. The lowest impact factor is past experience. The study tested the differences in Bitcoin investment behavior between Bitcoin investors according to gender, age, income, and investment time. The study found no significant variance in the evaluation of gender, age, income, and investment time in Bitcoin investment behavior in Vietnam. Based on the regression results, the authors recommend practical solutions related to benefits, past experience, national laws, crowd effects, and the Bitcoin market. The aim is to assist Vietnamese investors in understanding the influence of factors on Bitcoin investments in Vietnam. From there, investors adopt the appropriate behaviors, views, and investments in Bitcoin and other virtual currencies. Novelty – The first study uses a quantitative method to address the factors affecting the investment behavior in the Vietnamese Bitcoin market. Type of Paper - Empirical" |
| Keywords: | Investment Behavior; Bitcoin Market; Investors' Decisions; Virtual Currencies |
| JEL: | G2 G29 |
| Date: | 2024–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr226 |
| By: | Balboni, Clare |
| Abstract: | Coasts contain a disproportionate share of the world's population, reflecting historical advantages, but environmental change threatens a reversal of coastal fortune in the coming decades as natural disasters intensify and sea levels rise. This paper considers whether large infrastructure investments should continue to favor coastal areas. I estimate a dynamic spatial equilibrium framework using detailed geo-referenced data on road investments in Vietnam from 2000 to 2010 and find evidence that coastal favoritism has significant costs. The results highlight the importance of accounting for the dynamic effects of environmental change in deciding where to allocate infrastructure today. |
| Keywords: | transport infrastructure; regional development; natural disaster risk; climate change; path dependence; spatial misallocation; sea level; floods; Vietnam |
| JEL: | J61 O18 O53 Q54 R11 R12 R13 R42 |
| Date: | 2025–01–13 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126336 |
| By: | Quoc Tran-Nam (International University HCMC [Vietnam] - International University); Phu Nguyen-Van (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, IUH - Industrial University of Ho Chi Minh city); Tuyen Tiet (International University HCMC [Vietnam] - International University, BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Although numerous studies examine the impacts of environmental compliance and innovation on a firm's economic performance, the role of export activities in this nexus has remained unanswered. In this study, we revisit the Porter hypothesis by investigating synergy strategies of dierent environmental and economic practices (i.e., environmental compliance, product innovation, process innovation and having export activities) on total factor productivity (TFP) of Vietnamese manufacturing SMEs. Our results suggest that while encouraging either product or process innovation is also essential in the environment-promoting policy, joint implementation of these two practices should be carefully considered by managers. Moreover, entering export markets positively impacts rms' productivity; complying with the domestic/local environmental standards could signicantly increase the chances for SMEs to enter the export markets |
| Keywords: | Environmental compliance, Export, Product innovation, Process innovation, Productivity, SMEs |
| Date: | 2024–02–13 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04441426 |
| By: | Camelia Oprean-Stan; Sebastian Emanuel Stan; Antonio Pele |
| Abstract: | In this article, models for assessing national intangible resources are analysed through a lecture in the literature, and the best-known evaluation methods are categorized into academic models and models of international organizations, with the most important differences being identified. The European Innovation Scoreboard (EIS) and the World Economic Forum annual reports on Global Competitiveness were considered to assess Romania's position in the international context in terms of intangible assets. Despite the importance of intangible resources at national level and the fact that they are an important factor in determining economic growth in the current knowledge-based economy, this article concludes that Romania's position in the international context regarding intangible assets is very weak, with many weak points in research and innovation performance compared to other EU Member States. Therefore, there is a need in our country to re-evaluate the areas where all efforts need to be focused to stimulate innovation performance, to properly manage national intangible resources, a crucial process for improving the quality of life. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.09315 |
| By: | Alberto Prati; Claudia Senik |
| Abstract: | We revisit the famous Easterlin paradox by considering that life evaluation scales refer to a changing context, hence they are regularly reinterpreted. We propose a simple model of rescaling based on both retrospective and current life evaluations, and apply it to unexploited archival data from the USA. When correcting for rescaling, we find that the well-being of Americans has substantially increased, on par with GDP, health, education, and liberal democracy, from the 1950s to the early 2000s. Using several datasets, we shed light on other happiness puzzles, including the apparent stability of life evaluations during COVID-19, why Ukrainians report similar levels of life satisfaction today as before the war, and the absence of parental happiness. |
| Keywords: | happiness, life satisfaction, subjective well-Being, Easterlin Paradox, Cantril Ladder, rescaling, Gallup, SOEP |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2068 |