Browsing by Subject "alueet"

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  • Solanko, Laura; Tekoniemi, Merja (2000)
    BOFIT Discussion Papers 14/2000
    This paper examines two regions of the Russian Federation, Novgorod and Pskov, to compare how differences in economic policy affect economic development.Despite common histories, geography and natural resources, Novgorod committed early on to policies that would attract foreign investments in production.Pskov, on the other hand, withdrew into protectionist policies until it was clear that efforts to increase domestic and foreign investment levels were needed.Using available statistics, we consider the reasoning that led these regions down such distinctly different economic policy paths and consequences of these choices. Key words: Russia, regions, Novgorod, Pskov
  • Pyle, William; Schoors, Koen (2011)
    BOFIT Discussion Papers 33/2011
    Published in The Journal of Law & Economics, Vol. 58, No. 2 (May 2015), pp. 451-480 by Alexei Karas, William Pyle and Koen Schoors
    Russia's tremendous inter-regional variation in the pace of industrial land rights reform has meant that geography has helped determine the current tenure status of firms' production plots as much as any individual firm characteristics. By exploiting both this difference in the pace with which land reform has been carried out across Russia's federal subjects and a unique micro-level dataset, we present evidence strongly consistent with the proposition that more secure rights to land facilitate access to external financing. This finding is confirmed by other evidence from the survey that points to private land serving as an important source of collateral for Russian lenders and borrowers. JEL: 016, P25, P31, R14, R52 Keywords: industrial land, property rights, Russia, collateral
  • Yakovlev, Andrei; Demidova, Olga (2011)
    BOFIT Online 3/2011
    This paper considers the main consequences of the radical reform of public procurement in Russia carried out in 2005-2006. Using data from two surveys of manufacturing enterprises in 2005 and 2009 we show that before the reform firms with government stakes, old firms (established before 1992) and larger firms had advantages in access to government orders. Our analysis of the 2009 data demonstrated substantial growth in the share of firms participating in government procurements. Large firms retain their advantages in access to government orders. The fact of having fulfilled government orders in 2005 has a positive influence on a firm s participation in government procurements in 2009. Estimated scales of kickback in 2009 were virtually the same as in 2005. Our analysis of the 2009 data also revealed that factors of active restructuring of the enterprises had no influence on the enterprises access to government orders. The results of our analysis enable us to conclude that the principal goals of the radical reform of public procurement in Russia were never achieved. We discuss the reasons for this failure and provide some policy implications. Keywords: Russia, regions, corruption, government, procurement
  • Solanko, Laura (2003)
    BOFIT Discussion Papers 9/2003
    This empirical note uses publicly available Goskomstat data to investigate income growth and convergence across Russian regions. Using data for 1992-2001, we find strong sigma divergence simultaneously with beta convergence. he results indicate that per capita income in Russian regions may be converging towards two separate steady states.The poorest regions seem to be converging among themselves, while growth experiences among other regions have been highly heterogeneous. Keywords: convergence, divergence, Russia, regions, growth.
  • Pääkkönen, Jenni (2009)
    BOFIT Discussion Papers 15/2009
    Published in Journal of Chinese Economic and Business Studies, Volume 10, Issue 1, February 2012, Pages 1-13
    This paper discusses growth differentials of Chinese provinces geared to agricultural activities and those focusing on industrial production over three decades of economic reform. Following trade theory and endogenous growth theory, we suggest that the fundamental differences between regions arise from their resource allocations at the start of reforms. Thus, capital-abundant regions have tended to specialize in industrial production, while the labor-abundant regions have concentrated on labor-intensive pro- duction (agriculture). Many of China.s agricultural provinces suffer from oversupplies of labor, which has led large numbers of people to migrate within the country to work in non-farming sectors of economy. We show that provinces with high shares of industrial production (the industrial club) have converged, and that agricultural provinces shifting to industrial production have been catching up to initially industrialized provinces. Provinces that have stayed with an agricultural strategy (the agricultural club) show no evidence of convergence and appear to have been left behind in terms of economic development. JEL Classi.cation: O17, O40, O57. Keywords: Growth, Agriculture, Convergence.
  • Gluschenko, Konstantin; Kulighina, Darya (2006)
    BOFIT Discussion Papers 3/2006
    Published in Journal of Economic Studies, Volume 37, Issue 4/2010
    Perfect integration eludes the real world, so we suggest a realistic benchmark standard for judging the extent of market integration in various economies.We estimate the degree of integration in the US product market, widely acknowledged to be the most integrated among geographically large economies, so as to provide a reference for measuring Russian market integration. Prices for 27 grocery items across 29 cities of the United States in the first quarter of 2000 are used as empirical data.The estimated degree of integration turns out to be very close to values obtained for Russia for 2000.Apparently, market integration in Russia has in recent years moved toward conditions found in advanced market economies.The roles of other factors that could potentially cause segmentation of the US market are also analyzed. JEL Classification: F14, F15, L81, R1 Keywords: market integration, price dispersion, law of one price, United States, Russia
  • Putkuri, Hanna (2018)
    Euro & talous 2/2018
    Asuntojen hintaerot etenkin pääkaupunkiseudun ja muun Suomen välillä ovat kasvaneet 2010-luvulla. Asuntomarkkinoiden alueellinen eriytyminen näkyy huomattavina eroina myös kotitalouksien asuntovelkojen koossa. Asuntovelat ovat suuria, ja ne ovat kasvaneet sekä euromääräisesti että suhteessa tuloihin etenkin kasvukeskuksissa, missä asunnot ovat kalliimpia ja kysytympiä kuin muualla maassa. Rahoitusvakauden kannalta on vaarallista, jos asuntojen hinnat nousevat ja asuntolainat kasvavat yhtä aikaa liikaa.
  • Fungáčová, Zuzana; Godlewski, Christophe J.; Weill, Laurent (2009)
    BOFIT Discussion Papers 7/2009
    Published in Eastern European Economics Vol. 49, no. 1, Jan.-Feb. 2011, pp. 13-30.
    This paper considers whether local bank participation exerts an impact on the spreads for syndicated loans in Russia. Following Berger, Klapper and Udell (2001), we test whether local banks possess a superior ability to deal with information asymmetries. Using a sample of 528 syndicated loans to Russian borrowers, we perform regressions of the spread on a set of variables including information on local bank participation and the characteristics of loans and borrowers. Unlike earlier studies, we distinguish foreign banks with a local presence from those without such presence. The intuition here is that a local presence may influence a foreign bank's monitoring ability and access to information about borrowers. We observe no significant impact on the spread when there is local bank participa-tion in a syndicated loan, nor do we find any significant influence of the presence of domestic-owned banks or foreign-owned banks on the spread. Additional estimations considering subsamples with exacerbated information asymmetries provide similar results. Therefore our conclusion is that local banks do not benefit from an advantage in monitoring ability and in information in Russia. JEL Codes : G21, P34. Keywords : Bank, Information asymmetry, Loan, Syndication, Russia
  • Gluschenko, Konstantin (2006)
    BOFIT Discussion Papers 9/2006
    Lacking data on price levels across locations (countries, national regions, etc.) for crossspace comparisons, researchers resort to local consumer price indexes (CPIs) over time to evaluate these levels.This approach unfortunately fails to specify, even generally, the exactness of such proxies.Worse, the method is silent on whether the results are consistent, at least qualitatively, with those obtained using actual price levels.This paper aims to find an answer empirically, using data across Russian regions.Through comparison of CPIproxied price levels with direct evaluations of regional price levels (i.e.Surinov spatial price indexes and the costs of a purchasing power basket), biases that distort the qualitative pattern of inter-regional differences are identified.Cross-region distributions for real income (calculated with CPI-proxied and directly evaluated price levels) for several points in time are estimated and compared.The CPI-induced biases are found to generally overstate inter-regional disparities. JEL Classification: C43, E31, P22, R19 Keywords: consumer price index, spatial price index, real income, nonhomothetic preferences, Russia, Russian regions
  • Haaparanta, Pertti; Juurikkala, Tuuli (2007)
    BOFIT Discussion Papers 12/2007
    Russian industrial enterprises inherited from the Soviet era a tradition of producing welfare and infrastructure services within the firm, also for outside users. Despite the massive restructuring of the economy that took place since, many firms are still active in service provision. At the same time, opaque fiscal federalism is a problem for municipalities whereas rent extraction by public sector officials is a problem for firms. In this paper we examine whether there is a link between these phenomena. We propose a model on local fiscal incentives, service provision by firms and the municipality-firm relationship in the form of bribes. Using survey data from 404 medium and large industrial enterprises in 40 regions of Russia, we find that the higher the share of own revenues in the local budget, the more likely the firms are to report bribes. In the case of infrastructure services, the data also support the hypothesis that the channel is through service provision: the less fiscal autonomy, the more service provision and the less likely the firms are to report bribes.
  • Belousova, Veronika; Goel, Rajeev K.; Korhonen, Iikka (2011)
    BOFIT Discussion Papers 31/2011
    Published in Journal of Economics and Finance, January 2016, Volume 40, Issue 1, pp 172-187 as "Corruption perceptions versus corruption incidence: Competition for rents across Russian regions"
    This paper examines determinants of corruption across Russian regions. Key contributions include: (i) a formal study of economic corruption determinants across Russian regions; (ii) comparisons of determinants of perceived corruption versus those of actual corruption; and (iii) studying the influence of market competition and other factors on corruption. The results show that economic prosperity, population, market competition and urbanization are significant determinants of Russian corruption. The use of alternative corruption measures reveals that economic prosperity and population have a largely similar impact on corruption perceptions and corruption incidence. However, there are significant differences in the effects of competition and urbanization.
  • Du, Julan; Lu, Yi; Tao, Zhigang (2009)
    BOFIT Discussion Papers 17/2009
    Market economy models differ in the degree of the power of the government vis-à-vis the market in the economy. Under the classications set forth by Glaeser and Shleifer (2002, 2003), and Djankov et al. (2003), these market models range from those emphasizing low government intervention in the market (private orderings and private litigation through courts) to those where the state is an active participant (regulatory state). This paper, using data from a survey of 3,073 private enterprises in China, constructs an index to quantify the power of the government vis-à-vis the market. Regional government power is found to vary considerably across China's regions. Notably, enterprises located in regions where government exerts more power in the market perform better, suggesting that the regulatory state model of the market economy is appropriate for China.
  • Solanko, Laura (2006)
    BOFIT Discussion Papers 2/2006
    During the Soviet period industrial firms not only formed the backbone of the economy but also directly provided a wide range of benefits to their municipalities.Firms were in charge of supplying a great variety of social services, such as housing, medical care and day care.The need to divest at least some of these functions was generally accepted already in the early 1990s.Industrial firms' engagement in the provision of infrastructure services, such as heating, electricity and road upkeep has to date received much less attention.Using a unique dataset of 404 large and medium-sized industrial enterprises in 40 regions of Russia, this paper examines public infrastructure provision by Russian industrial enterprises.We find that, first, to a large degree engagement in infrastructure provision - as proxied by district heating production - is a Soviet legacy.Second, firms providing district heating to users outside their plant area are more likely to have close relations with the local public sector along many other dimensions. Keywords: Russia, infrastructure, firm performance JEL Codes: P31, P35 (Socialist Institutions and Their Transitions), H54
  • Leppänen, Simo; Solanko, Laura; Kosonen, Riitta (2015)
    BOFIT Discussion Papers 27/2015
    Published in Environmental and Resource Economics, Volume 67, Issue 1, May 2017: 67–92 as "The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia"
    This paper explores the implications of climate change for government expenditures. Using a rich sub-national dataset for Russia covering 1995–2009, we estimate the impacts of changes in climatic conditions through short-term variation and medium-term changes in average regional temperatures and precipitation. We show a strong and robust negative (but non-linear) relation between regional budget expenditures and population-weighted temperature. The results indicate that an increase in temperature results in a decrease in public expenditures and that the magnitude of this effect diminishes the warmer the region. Further, our results suggest that the benefits from warming accumulate and that adaptation measures could help leverage those benefits. The estimated decreases in regional government expenditure are, however, quite small. It should be noted that our results are estimated for a scenario of mild temperature increase (1–2 °C). Larger temperature increases are likely to have dramatic consequences e.g. from loss of permafrost and methane release that are impossible to predict with available historical data.
  • Wang, Chunyang (2017)
    BOFIT Discussion Papers 8/2017
    The rise of city commercial banks (CCBs) in Chinese cities provides a unique opportunity to study the finance and growth nexus at the city level. Given the notorious inefficiency of China's “Big Four” state banks, policymakers attempted to correct the situation in 1995 through the creation of a new kind of local bank designed to promote local growth by lending to small and medium-sized enterprises. Using 1990-2009 panel data for 283 prefectural-level cities and four provincial-status municipalities, we find that the establishment of CCBs significantly reduced local economic growth overall. We suggest this outcome stems from the ability of firms to bribe local government officials to obtain credit from their local CCBs. In our proposed model for crony banking relations, large firms spend disproportionately larger amounts of time and bribe money cultivation relations with local officials involved in CCB lending decisions, so we expect large firms to have easier access to credit than small firms even if it results in inefficient lending. Using data on 206,771 firms for 1999-2007, we find that cities with CCBs had significantly lower overall growth rates. Small firms, in particular, were negatively impacted by the presence of CCBs, while large firms benefited from their presence. In the cities with CCBs, large firms, even those with relatively poor return-on-assets ratios, obtained more credit than small firms in aggregate. Using data from the 2005 World Bank Business Environment Survey, we find that an increase in a firm's crony relations with the government, measured in terms of the average number of days a month top managers of the firm spend interacting with government officials, increases the likelihood a firm will be granted bank credit. This effect was quite distinct for cities with CCBs.
  • Haaparanta, Pertti (1988)
    Bank of Finland Research Discussion Papers 18/1988
    It is shown that the Dixit-Norman argument for the creation of an optimal customs union without lump sum transfers presupposes either that there exists a joint fiscal authority in the union or that lump sum transfers between national governments are possible. A necessary and sufficient condition for the decentralized implementation of the optimal union is derived. This condition is related to the old discussion of trade creation vs. trade diversion. The other contribution of the paper is to extend the Dixit-Norman argument to customs unions with factor mobility i.e. to common markets.
  • Schoors, Koen; Semenova, Maria; Zubanov, Andrey (2017)
    BOFIT Discussion Papers 1/2017
    We analyze whether a depositor’s familiarity with a bank affects depositor behavior during a financial crisis. Familiarity is measured by the presence of regional or local cues in the bank’s name, while depositor behavior is considered in terms of depositor sensitivity to observable bank risk (market discipline exerted by depositors). Using the 2001–2010 bank-level and region-level data for Russia, we show the evidence that depositors use quantity-based discipline on all banks in the sample. The evidence of a price-based discipline mechanism, however, is virtually absent. We find that depositors of familiar banks were less sensitive to bank risk after a financial crisis than depositors at unfamiliar banks. To assure the results are driven by familiarity bias and not implicit support of regional governments to banks with regional cues in their names, we interact the variables with measures of trust in local governments and regional affinity. We find a “flight to familiarity” effect strongly present in regions with strong regional affinity, while the effect is rejected in regions with greater trust in regional and local governments. This suggests that the results are driven by familiarity rather than implicit protection from trusted regional or local governments.
  • Fang, Ying; Zhao, Yang (2009)
    BOFIT Discussion Papers 9/2009
    This paper estimates the effect of institutions on economic performance using cross-city data from China. We argue that China's ongoing reforms are part of a long and circuitous historical transition from antiquity to modernity, which started about 150 years ago. Learning from Western countries has been a central aspect of this historical process. The West had a laThis paper estimates the effect of institutions on economic performance using cross-city data from China. We argue that China's ongoing reforms are part of a long and circuitous historical transition from antiquity to modernity, which started about 150 years ago. Learning from Western countries has been a central aspect of this historical process. The West had a large influence on the early stage of this transition, which has persisted to current reforms. This study uses the enrollment in Christian missionary lower primary schools in China in 1919 as an instrument for present institutions. Employing a two-stage least squares method, we find that the effect of institutions on economic performance in China is positive and significant. The results are robust according to various tests including additional controls, such as geographic factors and government policy-related variables.
  • 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