Liberalization of services in Europe: Polish perspective on economic implications of the Services Directive

The original EU Service Directive proposal met widespread opposition and was subsequently narrowed down. Some believed that the competition from the New Member States would endanger the situation of the “old” EU service providers. We assess the importance of the Service Directive for Poland and other EU members by performing a revealed comparative advantage analysis and a computable general equilibrium simulation of the outcome. The liberalization provides minimal welfare gains for Poland and the main opponents of the Service Directive, while they are expected to be higher for small economies open to trade in services.     

Financial efficiency and accounting quality: The impact of institutional micro-factors on FDI

In this paper, we explore whether factors such as financial markets and accounting qualities contribute to foreign direct investment (FDI). We use a unique data source: the survey data from World Economic Forum, to measure the efficiency of the financial markets and the quality of accounting standards. With this unique data, we demonstrate that financial markets and accounting quality are important factors of FDI inflow into a country. In particular, FDI is positively correlated with the strength of financial audits and reporting standards and venture capital availability for all countries. We also show that accounting quality measures are more important for developing and emerging countries than for developed countries. On the other hand, financial market measures, especially the access to venture capital, have a bigger impact in attracting FDI flow into developed countries. These results support the hypothesis that local financial markets and accounting quality affect FDI. The results have strong policy implications for governmental regulatory agencies.     

The impact of the EU sugar trade reform on poor households in developing countries: A general equilibrium analysis

We use a modified version of the applied general equilibrium model GTAP, called GTAP_MH, to evaluate the impact of a reduction in the EU's support price for sugar on income distribution of African households. For LDC countries, non-ACP but participant in the EBA initiative a +2% change is indicated in term of income generation across all ten social strata identified within GTAP_MH framework, with positive percentage changes in supply prices at household level of endowment commodities, and positive percentage changes in price indices for private household expenditures. The big losers will be those countries that would no longer be able to compete at an international level as a result of the lost preferences.     

Macroeconomic impacts of Chinese currency appreciation on China and the Rest of World: A global CGE analysis

This paper analyzes the ex-ante short-term impacts of the Chinese RMB appreciation on the Chinese and world economy, using a novel approach of modeling nominal exchange rate adjustment in the GTAP, a global CGE model. Scenario results show that Chinese economy will be affected negatively, with lower real GDP, lower employment rates, and a decline in the trade surplus. Chinese currency appreciation has positive impact on the GDP of the major countries and regions, although by a small margin. With higher Chinese exchange rate, trade balance for other trading partner countries improves with the exception of the U.S.     

Effectiveness of policy interventions during financial crises in China and Russia: Lessons for the COVID-19 pandemic

We test the hypothesis that policy interventions in crisis periods are less effective when markets are integrated, drawing on China and Russia’s experience during the global financial crisis. We conduct an event study to examine the response of stock market returns and volatility to intervention efforts using DCC-GARCH and Markov Regime Switching Models. We then estimate the extent of integration of China and Russia with the US market and assess its impact on policy interventions’ effectiveness based on a regression framework. We find that interventions were effective in China but failed in Russia, where greater global links were evident. Our findings provide important policy lessons to address the impact of the current COVID-19 pandemic, given the increasing global market linkages.     

Effects of sharing the parental leave on pensioners’ poverty and gender inequality in old age: A simulation in IFSIM

Female old age poverty is affected by family policy reforms which are meant to promote gender equality when young. Using our in house agent based simulation model IFSIM we show that sharing equally the parental leave can increase or reduce poverty among elderly women depending on the macro and behavioural (i.e. labour supply) responses that the reform off-sets. In general, the reform can be good for highly educated women, who will have an incentive to work more full time thanks to their higher earnings, which can compensate any loss in household income due to the man's staying home. For lower educated however, work might not pay as much and a reduction in labour supply might actually ensue (e.g. to reduce childcare costs). This will reduce also their pension rights at retirement. Furthermore, keeping men at home might slow down economic growth, and consequently growth of income pension accounts will be lower. This effect, combined with lower pension contributions (due to reduced labour supply), might result in higher poverty rates for women with lower education, compared to a scenario where the woman takes the whole leave. Other policies, such as more subsidised child care, might be an alternative worth considering to reduce female poverty in old age more evenly across educational levels.     

Assessing the impact of an asset-based intervention on educational outcomes of orphaned children and adolescents: findings from a randomised experiment in Uganda

ABSTRACT

This paper examines the effect of an asset-based intervention on academic performance and school transition among orphaned and vulnerable children in Uganda. Participants were randomly assigned to either the control arm or two treatment arms receiving an asset-based intervention. Participants in the treatment arms scored better grades; and had higher odds of transitioning to post-primary education relative to the control arm. Programmes which target financial insecurity may have a positive impact on the educational achievement and progression of orphaned children. There is a need to consider incorporating asset-based interventions within the development of educational policy, especially in low-income countries.     

An exploratory study of the impact of an adolescent's eating disorder on Chinese parents' well‐being,marital life and perceived family functioning in Shenzhen,China: implications for social work practice

In this paper, the author reports the results of an exploratory study conducted in Shenzhen, China on how an eating disorder in an adolescent or adult child in the family would affect the parents' well‐being, quality of marital life and the perceived family functioning. Out of 33 patients suffering from eating disorders and referred for family treatment, 18 mothers and 15 fathers participated in this study. The data were gathered using a standardized questionnaire comprising three measures, namely the Symptom Check‐List‐90‐R, the Dyadic Adjustment Scale and the Family Assessment Device. The results of the study have shown that the parents' well‐being was negatively affected, especially for the mothers, whose self‐reported depression and anxiety levels were higher than the fathers'. The parents also perceived family functioning to be less satisfactory since the onset of the disorder, with least satisfaction reported on Affective Involvement, Affective Responsiveness, Roles and Behaviour Control. However, the onset had no negative effect on the parents' marital life. Implications of the study for social work practice are discussed.