Tax and Structural Reforms in the Transition from Command to Market Economy

The purpose of this paper is to verify the validity of a pessimistic view (Blanchard in The economics of transition in Eastern Europe, Clarendon Press, Oxford, 1997) on the role played by public finance in meeting and distributing the costs of transition from command to market economy. In conclusion, we may say that, even though referring to the specific case of Albania, the model of the structural reform index allows us to discuss alternative views on the nature and causes of the impact of the fiscal phenomena on the transition process. The findings were confirmed, using the Bagnai method, by the real evolution of the Albanian economy, and by the valuations of the World Bank and the IMF, both recognizing the importance of the fiscal factor.     

试论建立与服务经济相适应的资源配置体系

服务经济是指以知识、信息和智力要素的生产、扩散与应用为经济增长的主要推动力,以科学技术和人力资本的投入为核心生产方式,以法治和市场经济为制度基础,经济社会发展主要建立在服务产品生产和配置基础上的经济形态。加快形成以服务经济为主的产业结构,是上海创新驱动发展、经济转型升级的必然要求。从服务经济发展的一般规律看,它包含与经济社会发展相关的一系列配套内容,主要包括市场体系、区位布局体系、创新体系、社会体系等。发展服务经济,需要整体构建与服务经济相适应的资源配置体系。     

Bridging the Gap between Planned and Market Economies: employment policies for people with disabilities in two Chinese cities

From 1978 on wards, China has experienced a radical transition from a centrally-controlled planned economy to a market economy. At the same time, the Chinese economy is developing at high speed. This dynamic situation poses numerous opportunities and challenges to people with disabilities in China. The research finds that, with the help of government's employment policies, disabled people in two Chinese cities have benefited from both the market reforms and high speed economic growth. The Chinese government did not simply throw away the previous institutional arrangements and withdraw from its responsibility for supporting people with disabilities. In contrast, it adjusted the previous policies in order to mobilise resources from the newly-developing market economy. However, the policies have their limitations. They are temporary in nature and suitable for the transitional period only. There are potential problems and challenges ahead for disabled people in a fully fledged market economy in China.     

Institutional Deterioration in Transition Economies: Playing Follow-the-Leader During the Global Financial Crisis?

Economic transition was a systemic change of institutions from those that facilitated a planned, communist economy to those suitable for a market economy. This paper examines the state of this political and economic institutional development in 28 transition economies, focusing on the global financial crisis years of 2007–2012. According to various metrics of institutions, institutional regression has indeed occurred but has been somewhat localized in the countries of the CIS. However, property rights have regressed in some countries in Central/Southern Europe, while financial sector institutions have uniformly degraded across the entire transition space.     

The Macroeconomic Determinants of Remittance Flows from Russia to Tajikistan

Within the two decades of transition to market economy interdependence of the former Soviet Union countries is continuing. Labour migration between Russia and the former Soviet Union republics is one of the examples of this relationship. This paper defines the macroeconomic determinants of remittance flows from Russia to Tajikistan—the world’s top remittance-receiving country as a share of GDP. The paper demonstrates that the changes in the income available for the migrants and the possibility of migrants involvement in the labour market of the host country have a significant impact on their money transfers. Furthermore, remittance inflows are determined by the overall economic environment in the host and home countries as well as the global economy’s condition.     

Has the Youth Labor Market in Japan Changed? An Event History Analysis Approach

Abstract: This paper examines whether the Japanese youth labor market has become more unstable, particularly since the 1990s. To address this problem, I suggest that we consider the transition rate of job exit to be the benchmark of instability in the labor market and focus on workers' career histories until they reach the age of 34 years. This paper presents six hypotheses that explain the instability of the youth labor market as follows: the total increase in the job-exit transition rate, the higher risk of job exit for provisional workers, the increase in the number of provisional workers, the increasing transition rate for provisional workers and stable regular workers, the impact of firm size, and the impact of the collapse of the bubble economy. I present the summary statistics of job exit rates and the results of the Cox partial likelihood estimation models. A conspicuous phenomenon of the 1990s entailed an increasing number of provisional workers who ran a higher risk of job exits compared to regular workers. However, the job exit transition rates are generally stable. Moreover, the transition rates for regular female workers have decreased since the 1980s due to the increasing realization of gender equality in society. Although partial likelihood estimation states that firm size and the type of officer concerned (public/private) had significant effects on the transition rates, their effect did not intensify after the collapse of the bubble economy. In sum, the evidence that the Japanese youth labor market changed in the 1990s is limited.     

Financial Intermediation Modernization in Countries with Transition Economy

During the modern phase of economic reforms directed at the establishment of market economy, many countries with transition economies face the challenge of solving the issue of formation and rational usage of internal sources of financing the real sector of the economy, as well as attracting considerable volume of direct foreign investment. In general, financial market imperfections hold back innovation and growth, and that public policy can complement financial markets. Therefore, the most relevant issue at the present time is the formation of attendant and complex supervision institutions, as well as an exigency of innovative economy governance as mainframe principles for further banking system elaboration and financial sector development in general. We have taken Armenia as a case study for transition economy as far as Armenia is currently in the stage of capital market development through integration into international financial markets.      

Job prospects for mature workers

Can the economy in the United States generate enough jobs for mature workers who want to work? This article explores the prospects for jobs first in the high-skill sector and second in the area of contingent work, temporary and part-time jobs as well as contracting. It concludes that the high-skill market as a whole will be a source of opportunity to those who are flexible, but within this market there will be flux in the markets for particular skills. At the other end, the restructuring of jobs in the American economy is likely to lead to continued growth in certain forms of contingent labor but the rate of growth will not be constant and may not always be adequate to employ all those who would like the employment. Finding and obtaining work will remain a challenge for many older workers. Those who are flexible and who are willing to acquire new skills will be the most likely to find opportunities.     

Women's Employment in Transition, 1992–4: the Case of Poland

Since the early 1990s the Polish economy has, in the move towards a market economy, undergone substantial economic reforms which resulted initially in a severe recession and notably in widespread unemployment. In a country where women have traditionally played a major role in the workforce it is pertinent to ask how their role has been affected during the early years of transition to a market economy, what factors explain this, and what their employment prospects are likely to be in a free market economy. After sketching the key features of women's employment in Poland pre-transition the article then addresses these questions using data drawn mainly from the Labour Force Surveys of 1992 and 1994. It finds that women's labour market position has been changing and in 1994 could be said to be mixed: while on the one hand it seems to be deteriorating (rising rates of inactivity and unemployment, the feminization of part-time work), on the other women seem to have been relatively protected from the worst effects of marketization and are in a better position than men according to some unemployment indicators. Prospects for women's employment under a free market economy also appear to be mixed, with much depending on whether the Polish government introduces a framework of national measures to support and encourage women who enter into paid employment.     

Winners and losers in the post‐communist transformation: The czech republic in comparative perspective

The gradual dismantling of redistributive practices as part of the transition to a market economy, together with an increase in wage, income, and wealth inequalities make those who actually profited (in relative terms) from the socialist redistribution feel like ‘losers’ of the transformation. Conversely, those who were relatively disfavoured by the communist redistributive policies and who feel strong today in the competition for better life‐chances may consider themselves ‘winners’ of the transition process. This article considers who are the winners and losers informer communist countries and what impact this factor has on the crystallization of political attitudes. The principle assumption is that the two segments of the population uphold quite different views on the consequences of the transition to a market economy and democracy for their life‐chances and maintain different positions on the political spectrum. The analysis starts from a subjective definition of winners and losers based on the perception of ones’ change in social status (social status of the family) and economic situation (families’ wealth) during the years of transformation. Then, objective characteristics of the two groups are examined. Finally, the effects of being a loser or winner on left or right political orientations are analyzed.     

Les producteurs roumains de l’habillement à la recherche de clients : une analyse sociologique des rencontres d’affaires

This article analyzes business encounters in the garment industry of post-communist Romania. It shows how the structural uncertainty that characterizes the “transition” from a planned economy to a market economy forces the choice of Romanian manufacturers, particularly in terms of clientele. Thus, in the early 1990s, these actors were mostly caught up in figuring out their short-term profits, and their ability to get a firm foothold in the market was seriously challenged. However, many of the bifurcations experienced by individual manufacturers paradoxically participated in stabilizing (at least temporarily) a way of doing business in that industry: the “choice” of international outsourcing became the only possible reasonable choice during the “transition”.     

The transition of the mentally retarded from school to work: The implications of structural unemployment

The recent federal policy initiative placing a national priority on the transition of individuals with disabilities from school to working life has focused a great deal of attention on issues of employment of the disabled. However, most of the discussion and activities have concentrated on the supply side of the equation: training for employment, job design, and the social and economic value of work. Relatively little attention has been paid to the question of demand for workers with disabilities or the nature of the labor market they face. This paper examines the question of employment for one group of disabled, those with mental retardation. We analyze the factors influencing the ability of the economy to absorb these new workers and make a series of recommendations for policy research needed to facilitate the success of the transition policy.     

Market economies and pro-social behavior: Experimental evidence from Central Asia

This study seeks to extend the body of knowledge of pro-social behavior in comparative market settings by reporting on a high-stakes ultimatum game and revelation game experiments in two transition economies: Kazakhstan and Uzbekistan. While controlling for cultural differences and framing effects, we find statistically significant differences in fairness and honesty behavior between the two countries. Specifically, subjects in Uzbekistan (in an earlier stage of transition to a market economy) are fairer and more honest than their later-stage Kazakh counterparts. Our experimental findings have implications for the literature on pro-social behavior and market economies, and more generally, on the transmission process between formal and informal institutions.     

Inequalities in social capital and their longitudinal effects on the labour market entry

This study investigates socio-economic and ethnic inequalities in social capital and their effects on the process of the labour market entry. We use longitudinal data about the transition from school to work of lower- and middle educated young people in Belgium. Social capital is measured with three robust position generator measures. In line with previous studies, there are substantial socioeconomic and ethnic inequalities in the access to social capital. Ethnic differences in social capital are, however, due to the socio-economic deprivation of ethnic minority groups in Belgium. Among the specific population of lower- and middle educated youth, knowing more people from the working class leads to a higher likelihood of entering the labour market versus continuing in education, whereas knowing more people from the higher service class results in a lower likelihood of entering the labour market. Especially the resources of strong ties such as relatives and friends are important for these decisions. In addition, once entered the labour market, social capital has an impact on the likelihood of getting a job. Lower- and middle educated labour market entrants who know more people from the working class are more likely to find work, whereas knowing people from the lower service class decreases the job chances. However, there is no evidence for social capital effects on the occupational status of the job among our population.     

开创上海经济和信息化发展新局面

上海产业经济和信息化发展必须围绕改革的主线,准确把握国内外发展环境的变化,加快转变战略思路和发展方式;要基于需求分析明确发展方向,基于市场机制推进专项行动,基于分类管理推进改革创新,促进上海产业经济走高端化、集约化、服务化发展道路,进一步发挥信息化和智慧城市建设的引领带动作用;要坚持发挥市场在资源配置中的决定性作用,把握价值规律,建立市场规则,完善价格机制,使市场供给能满足、适应和创造市场需求,最大限度地激发市场化活力,进一步解放和发展社会生产力;必须加快推进＂创新驱动、转型发展＂,构建新型产业体系,打造上海经济和信息化升级版,积极探索新型工业化、信息化、城镇化融合发展之路。     

Trying to stay ahead of the curve in Chile's economic development: exploring a way out of the middle‐income trap through pragmatic export development

Underneath impressive growth levels, the Chilean economy displays signs of being caught in a middle‐income trap. It has been unable to improve its productivity, increase the added value of its exports or upgrade its value chain. Its economy cannot compete either with low‐wage countries or highly productive, innovative countries. Its export strategy based on export promotion seems to have outlived its usefulness. It achieved remarkable quantitative success, but must now attend qualitative attributes. Instead of regarding market‐driven export promotion and state‐led export development as substitutes, this article proposes to view them as alternatives in different stages of development. To choose the appropriate time, more attention should be given to non‐traditional, structural indicators, like export sophistication and political‐institutional capabilities.     

“I don’t want to be selling my soul”: Two experiments in environmental economics

We conducted two experiments in the context of environmental protection. We found that profit considerations and personality traits are among the essential determinants of individual contributions to the solution of environmental problems. The results show that environmental considerations are powerful motivators and subjects are willing to forgo pecuniary profits for the sake of “doing-the-right-thing”. The study shows that the environmental groups can purchase carbon offsets directly from the providers at a lower-than market price and still obtain a relatively large market share.     

Occupational licensing and the transition from welfare to work

Occupational licensing laws erect barriers to entry into various labor markets, impeding the upward mobility of welfare recipients seeking to transition into employment. This paper, recognizing that labor market interventions have often been used precisely because of this effect, proceeds to examine various restrictions which directly affect low-skilled workers in the U.S. economy who now have stronger incentives to participate in labor markets in response to recent welfare policy reforms. Three distinct types of labor market restrictions are identified: (1) the licensing of professional, high-skilled occupations tends to crowd workers into lower-skilled occupations, lowering such wages and thus weakening work incentives among the welfare population; (2) quantity license restrictions (permits which set quotas limiting the overall number of suppliers in a market) suppress demand for low-skilled workers, and may substantially reduce work opportunities and, thus, incentives. Taxi license restrictions alone, for instance, may result in several hundreds of thousands of lost employment opportunities throughout the United States; and (3) quality license restrictions, where entrants face higher entry costs (typically through educational requirements above the requirements of the market), may paradoxically provide welfare recipients with enhanced opportunities for employment, particularly when coupled with job-training subsidies typically extended to welfare recipients. This we call a “de facto liberalization” of occupational licensure. While incumbent workers are certain to resist enhanced entry by welfare recipients into licensed occupations, vocational schools should aggressively support such entry, affording a possible realpolitik to the migration path envisioned. More interestingly, once entry has accelerated under de facto liberalization, occupational license rents will predictably decline, thus increasing the likelihood of explicit liberalization, and further opening labor markets to competitive entry.     

Privatization and Foreign investments: The Case of Serbia and Montenegro

The paper analyzes the privatization process with the participation of foreign investments in countries in transition. Privatization is a necessity in transition countries as a prerequisite of the move to a market economy. Foreign investments are of great importance for the economies of the transition countries, not only to inject necessary capital but also to provide access to new technologies, new markets, and organizational and marketing expertise. For the successful initiation and implementation of these processes, some basic requirements are to be met; namely, to assure more adequate protection of property rights and upgrade legislation related to privatization and foreign investments.     

Market Transition,Social Stratification,and Health Disparities in China: Longitudinal Analysis 1991 to 2006

Although a large body of literature has documented that China’s market transition from state socialism led to substantial changes in the social stratification order, little is known about the transition’s implications for health disparities. Integrating the fundamental cause perspective with market transition theory, this article examines the changing association of education and cadre status with self-rated health during the market transition, 1991 through 2006. Analyzing multiple waves of the China Health and Nutrition Survey data (N = 28,227), ordinal logistic mixed effects regression reveals the emerging and increasing role of education in shaping health disparities, while the role of cadre status stayed constant over time. Bringing a health outcome into market transition theory and institutional contexts to fundamental cause theory expands both theories and provides insights into the implication of market transition for health disparities.