Browsing by Subject "R11"

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  • Hattendorff, Christian (2015)
    BOFIT Discussion Papers 18/2015
    ​The paper investigates the relationship between economic concentration and level of financial development to illuminate the linkage of real economy structure and financial markets. Using data from 81 Russian regions for the period 2005–2011, empirical evidence is offered to show that poor diversification weakens credit. Geographical variables are used as instruments of concentration in accounting for endogeneity. This work supports previous findings at the national level that policymakers seeking to promote economic development should place stronger emphasis on output diversification.
  • Funke, Michael; Yu, Hao (2009)
    BOFIT Discussion Papers 10/2009
    In this paper we analyse the impact of R&D on total factor productivity across Chinese provinces. We introduce innovations explicitly into a production function and evaluate their contribution to economic growth in 1993 - 2006. The empirical results highlight the importance and the interaction between local and external research. The evidence indicates that growth in China is not explained simply by factor input accumulation. Keywords: China, R&D, R&D Spillovers, patents, regional economic growth, semiparametric estimators JEL-Classification: C14, O47, R11, R12
  • Curran, Declan; Funke, Michael; Wang, Jue (2007)
    BOFIT Discussion Papers 21/2007
    This paper considers the persistent differences in economic performance across Chinese regions. We introduce a new county- and city-level dataset that spans all of mainland China and provides a detailed view of Chinese regional growth over the period 1997-2005. Non-parametric kernel density estimation is employed to establish the cross-sectional GDP per capita distribution, and the distributional dynamics are investigated using the probability matrix technique and associated stochastic kernel estimator. A set of explanatory variables is then introduced, and several regressions are run to test for conditional ß- convergence and to pinpoint influential factors for economic growth across counties and cities. Keywords: Regional Economic Growth, China JEL-Classification: O11, R11
  • Eller, Markus; Fidrmuc, Jarko; Fungáčová, Zuzana (2013)
    BOFIT Discussion Papers 13/2013
    Published in Regional Studies, Volume 50, 2016, Issue 11, p. 1849-1862
    This paper investigates the relationship between fiscal policy and output volatility in Russian regions between 2000 and 2009. System GMM estimation techniques are used to account for potential endogeneity between output volatility and fiscal developments. Our main finding is that fiscal activism, proxied by various measures of discretionary fiscal policy, contributes to output volatility and so induces macroeconomic instability at the regional level in Russia. This result corroborates previous studies using cross-country data. To reduce business cycle fluctuations, it would be necessary to curtail pro-cyclical fiscal activism at the regional level, e.g. via fiscal rules and sound institutions of fiscal federalism. JEL Codes: E32, E62, R11. Keywords: output volatility, automatic stabilizers, discretionary fiscal policy, dynamic panel models, Russia
  • Ghani, Ejaz; Goswami, Arti Grover; Kerr, William (2017)
    World Bank Economic Review Supplement 1, March
    We investigate the impact of the Golden Quadrilateral (GQ) highway project on the spatial organization and efficiency of manufacturing activity. The GQ project upgraded the quality and width of 3,633 miles of roads in India. We use a difference-in-difference estimation strategy to compare non-nodal districts based upon their distance from the highway system. For the organized portion of the manufacturing sector, we find that GQ led to improvements in both urban and rural areas of nonnodal districts located 0–10 km from GQ. These higher entry rates and increases in plant productivity are not present in districts 10–50 km away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. For the unorganized sector, we do not find material effects from the GQ upgrades in either setting. These findings suggest that in the time frames that we can consider—the first five to seven years during and after upgrades—the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities but are unrelated to the increased urbanization of the unorganized sector.
  • Kerr, William R. (2013)
    Bank of Finland Research Discussion Papers 31/2013
    Published in Journal of Monetary Economics, Volume 66, September 2014: 62-78
    In cross-sectional studies, countries with greater income inequality typically exhibit less support for government-led redistribution and greater acceptance of wage inequality (e.g., United States versus Western Europe). If individual nations evolve along this pattern, a vicious cycle could form with reduced social concern amplifying primal increases in inequality due to forces like skill-biased technical change. Exploring movements around these long-term levels, however, this study finds mixed evidence regarding the vicious cycle hypothesis. On one hand, larger compensation differentials are accepted as inequality grows. This growth in differentials is of a smaller magnitude than the actual increase in inequality, but it is nonetheless positive and substantial in size. Weighing against this, growth in inequality is met with greater support for government-led redistribution to the poor. These patterns suggest that short-run inequality shocks can be reinforced in the labor market but do not result in weaker political preferences for redistribution. JEL Classification: D31, D33, D61, D63, D64, D72, H23, H53, I38, J31, R11. Key Words: Inequality, Social Preferences, Social Norms, Redistribution, Welfare, Class Warfare.
  • Paustyan, Ekaterina (2021)
    BOFIT Discussion Papers 2/2021
    This paper studies the distribution of politically motivated intergovernmental transfers in Russia focusing on the case of the 2018 FIFA World Cup. It investigates what factors have accounted for the selection of the 2018 FIFA World Cup venues. Qualitative Comparative Analysis of 14 cases reveals that well-connected political elites were able to secure the right for their regions to host the championship and, as a result, to extract additional funds from the center. These findings are in line with the argument that the regional governments in Russia play an important role in the distribution of politically sensitive transfers. Taking into account that these transfers have been increasing over the past years, there is no surprise that the regional elites have developed various lobbying strategies and mechanisms for attracting them.
  • Hasan, Iftekhar; Molyneux, Phil; Xie, Ru; Hakenes, Hendrik (2014)
    Bank of Finland Research Discussion Papers 5/2014
    Published in Review of Finance, Volume 19, Issue 2, 1 March 2015: 653-683
    This paper discusses the effects of small banks on economic growth. We first theoretically show that small banks operating at a regional level can spur local economic growth. As compared with big interregional banks, small regional banks are more effective in promoting local economic growth, especially in regions with lower initial endowments and severe credit rationing. We then test the model predictions using a sample of German banks and corresponding regional statistics. We find that small regional banks are more important funding providers in regions with low access to finance. The empirical results support the theoretical hypotheses. JEL Classification: G21, O16, R11. Keywords: small banks, regional economic growth.
  • Hasan, Iftekhar; Jackowicz, Krzysztof; Kowalewski, Oskar; Kozłowski, Łukasz (2019)
    Regional Studies 5
    This study analyzes the economic consequences of changes in the local bank presence. Using a unique data set of banks, firms and counties in Poland over the period 2009–14, it is shown that changes strengthening the relationship banking model are associated with local labour market improvements and easier small and medium-sized enterprise access to bank debt. However, only the appearance of new, more aggressive owners of large commercial banks stimulates new firm creation.
  • Lyubimov, Ivan; Gvozdeva, Margarita; Lysyuk, Maria (2018)
    BOFIT Discussion Papers 8/2018
    Following Hausmann et al. (2011), we apply a network approach to measure the level of economic complexity and diversification opportunities of Russian regions. Using Russian and international export data, we find that the complexity of Russian regional economies varies substantially: rela-tively high in western and central regions, lower in southern and northern Russia and lowest in eastern regions. While Russian regions, on average, have poor diversification opportunities, regions can still diversify their exports by participating in international value-added chains or cooperating in developing group strategies. Our results are highly consistent with two well-established rankings of Russian regional R&D development based on numerous regional indicators, and imply that our network-based measure of complexity captures important features such as the level of regional R&D.
  • You, Kefei (2015)
    BOFIT Discussion Papers 16/2015
    Published in The Journal of Developing Areas, Volume 51, Number 2, Spring 2017: 239-253
    Our study examines home drivers of China’s regional outward FDI. We propose a theoretical framework that incorporates an extended Investment Development Path (IDP) theory, home locational constraints, policy incentives and geographic factors. Empirically, we employ the Bayesian Averaging Maximum Likelihood Estimates method to address model uncertainty. All proposed theories (except for geographic aspects) are found to provide important perspectives explaining China’s regional outward FDI. Our results highlight the importance of government policies but do not support the original IDP hypothesis that outward investment is automatically generated as income grows. Our findings have implications for both regional and central-government policy.