Process Of Economic Transition Research Articles

(Systemic) Design for Sustainable Territorial Transition: A Literature Review of State of the Art

Sustainable territorial development is one of the crucial elements of most governmental strategies and action plans at the international level, which have to adapt to the local context in which they are implemented. In its different scales of application, the discipline of Design is increasingly called upon, permeating skills and tools within policy and governmental contexts that contribute to the definition of strategies to address complex problems. This paper presents a systematic literature review to map the specific declinations of the design field, with a closer look at the disciplinary areas close to Systemic Design methodologies, which are most involved in this field of research. The emerging tools and methods aim to support decision-makers or stakeholders in a necessary social, economic, and environmental transition process.

The Process of Economic Transition from Central Planning to a Market Economy: The Former Soviet Union Countries vs China

This paper discusses the starting economic, social and political conditions of market-oriented reforms in the former Soviet Union countries and Eastern Europe and compares those to China. In addition, the pace of reforms and their sequencing, as well as their economic and political determinants, are also analyzed. The chapter then proceeds to evaluate the results of reforms in economic and social terms and compares and contrasts the current economic systems in China and in the successor countries of the former USSR. Finally, differences between successor countries of the former USSR in their reform strategies and outcomes are also pointed out, concluding with the forthcoming economic and social challenges in China and successor countries of the former USSR.

Hungary in the European Union – Cooperation, Peacock Dance and Autocracy

Abstract Hungary had been one of the frontrunners in the political and economic transition process in Central and Eastern Europe in the 1990s, and in 2004 it joined the European Union. Since 2010, Hungary has gradually become an autocratic regime, a process that has been facilitated by the political benefits of EU integration and money transfers. While the support of the Hungarian people for EU membership has remained high, tensions have increased between the Hungarian government and EU institutions. This article evaluates how the external shock of Russia’s war against Ukraine has shaken Hungary’s so far developed authoritarian equilibrium within the EU. The authors show how embedded the Hungarian autocracy has become and argue that although there have been some effects to the pillars of the authoritarian equilibrium, it has remained stable, and most probably will continue to do so, as long as the illiberal regime stays in power.

Tackling energy poverty through trade activities: Analyzing social well-being in China

Energy requirements for household and commercial uses have been extended significantly during China’s recent economic development and transition process. Despite enormous achievements in export volume and diversity, domestic quality of life is still obstructed by energy poverty in the presence of economic and trade policy uncertainties. We explore the impact of economic complexity (EC) and financial globalization (FG) on energy poverty (EP) in China, considering trade (TPU) and economic policy uncertainties (EPU). For this purpose, we use quarterly data from 2000Q1 to 2020Q4 and employ a novel econometric technique of Rolling Window Correlations that deals efficiently with model instability and provides consistent correlations over time. We find asymmetries in the connections over time, which keep evolving dynamically. Economic complexity and financial globalization can increase energy poverty at various time scales if not assisted by appropriate trade policies. We observe significant impacts of the trade and economic policy uncertainties on energy poverty in China. The findings are robust to using an alternative proxy for energy poverty. The government should formulate sound trade policies and ensure certainty in its communications to assist economic activities in a manner not detrimental to energy poverty. As China is going through a transition stage in energy and economic perspectives, amplifying the energy mix, enhancing energy efficiency, and aligning economic policies with energy goals is necessary.

The Impact of Migration on Farm Performance: Evidence from Rice Farmers in China

Developing economies face challenges in improving the overall performance of farms. An essential challenge could be a substantial shift in the agricultural labor force to off-farm sectors during the process of economic transition. This paper estimates the causal impact of migration on the economic and environmental performance of rice farms, measured using technical efficiency and fertilizer use efficiency. A stochastic frontier analysis, based on the survey data collected in four regions of China, is applied, finding an average technical efficiency of 0.92, while the average fertilizer use efficiency is only 0.22. The results of propensity score matching suggest that migration has a marginally negative impact on both technical efficiency and fertilizer use efficiency of their rice production, while the impact is amplified for farmers who participated in migration more intensively. This would imply that the government policy on the migration of rural households might also need to consider this impact.

Energy Transition in Non-Euro Countries from Central and Eastern Europe: Evidence from Panel Vector Error Correction Model

The countries of Central and Eastern Europe, from the non-euro area, have completed the process of economic transition before joining the European Union. Achieving a certain level of economic development and membership in the European Union have generated their involvement in a new transition process, namely the energy transition. Concerns about promoting the low carbon economy have become increasingly complex for those countries that are interested in the environmental impact of economic activity. This study aims to analyze the process of energy transition in the countries of Central and Eastern Europe on the basis of the causality relationship among specific variables for the period 1990–2018. The study is based on cross-sectional panel data and the panel vector error correction model (PVECM). The efforts made by these countries by joining the European Union have generated economic development, with positive effects being recorded on the protection of the environment, a fact due to the strict regulations adopted and rigorous implementation at the national level. Foreign capital had a positive impact on the transition to a low carbon economy because most of the FDI flows attracted by the non-euro countries in the CEE come from Western Europe, i.e., from EU member countries, located either among the founders or among the countries that joined during the first waves of union expansion. Membership in the European Union facilitates the energy transition process for the non-euro countries of Central and Eastern Europe, but the new geopolitical events generate the reconfiguration of the European strategy of considering the need to ensure energy security.

The Impact of Banking Sector Development on Economic Growth: The Case of Vietnam’s Transitional Economy

The objective of this paper is to examine the role of the banking system in the growth of the Vietnamese economy in the process of the transition that started in the early 1990s. An ARDL approach-based multivariate regression technique is applied to shed light on the impact on the growth of banking development, which is measured by broad money and bank credit. The empirical findings confirm a positive long-term effect of banking development on growth, reflecting the important role of the banking system in a typical bank-based financial system in mobilizing and supplying capital to the economy, thus contributing to growth throughout the process of economic transition. The empirical findings also indicate a nonlinear effect and a diminishing marginal effect of banking development in the sub-period 2007–2020. The thresholds for the two measures of banking development are estimated to be around 107% and 101% of the GDP, respectively. This finding suggests that bank credit expansion needs to be closely controlled to be adaptive to the capital-absorptive capacity of the economy. To a certain extent, this finding is also an indicator of the ongoing extensive growth model adopted in Vietnam, which relies heavily on the quantity of invested capital.

Can Corruption Facilitate Industrial Structure Upgrade in China? The Moderating Role of Government-Business Relationships

The literature on corruption is extensive. However, specific effects of corruption on industrial structure upgrade have received little attention in the context of China. Therefore, following the concept of organizational performance and social capital theory, a number of panel models are developed to explore how different institution domains (i.e., government’s willingness to reform, business ownership structure, and government-business collusion) moderate the effect size of corruption on upgrading the industrial structure in China. The results are generally robust after endogeneity corrections, and suggest that the effect size of corruption on the industrial structure upgrade is evidently moderated by willingness to reform and ownership structure, but government-business collusion does not appear to have a similar effect. These findings explain the variation in the corruption-performance link, and provide a novel perspective for policy makers and regulators to understand the evolutionary path of corruption within the process of economic transition in China. A local government must thoroughly understand the dynamics of an industrial structure upgrade and acquire competencies and knowledge about when the effect of corruption reaches its inflection point and how its downside can be alleviated by placing specific formal and informal institutional reforms.

The S-shaped relationship between R&D investment and green innovation after cross-border merge and acquisition: evidence from China.

In the economic transition process, emerging markets are recognizing the importance of accessing sophisticated technologies to green innovation. After cross-border merge and acquisition (M&A), research and development (R&D) investment has become the basic condition for acquiring mature market technologies. Many studies suggest that R&D can promote green innovation. However, in the context of cross-border M&A, the relationship between R&D and green innovation is more complicated. Based on the knowledge-based view and stakeholder theory, this paper takes 230 cross-border M&A events at Chinese enterprises as samples. The conclusions show that instead of a linear relation, the influence of R&D input on green innovation performance after cross-border M&A is in an "S-shape"; the political connection and institutional distance of enterprises play a negative role in promoting the relationship between R&D input and green innovation performance after cross-border M&A.

Exploring Emerging Markets’ Demographic and Macroeconomic Dynamics and the Middle Class Growth: The Case of China and India

Abstract Emerging markets’ political, economic, and social transition processes led to altered demographic trends and new macroeconomic dynamics in these economies. These changes triggered the growth of the middle class that became an essential factor of emerging markets’ attractiveness for sales and production activities of foreign firms. The purpose of this article is to analyze the demographic and macroeconomic trends of China and India in the decades before the COVID-19 crisis, aimed at estimating their role in the growth of the middle class and the consequent attractiveness of these two important emerging markets for foreign firms. We formulate our research findings on the extensive theoretical foundations and empirical analysis of selected demographic and macroeconomic indicators related to the growth of the middle class. We established that India fell behind China considerably concerning demographic transition and macroeconomic dynamics in the observed periods. China enforced a radical demographic transition. The comparative analysis of macroeconomic dynamics showed a solid leadership of China in economic growth, international trade and investment openness, technological advancement, employment, the structure of the output, domestic investment, urbanization, and salaried workers. Consequently, we estimated the lower growth of the Indian middle class and its lower importance in foreign firms’ decisions to enter the Indian market. The findings brought some implications for international managers at segmenting and selecting target foreign markets.

The Presence of Populism in the Two Decades After the War in Kosovo

The rise of an extreme movement, which has consistently produced violence and hatred in Kosovar society for more than fifteen years, undoubtedly increases the curiosity of any researcher of social problems to deal with the study of this issue. Of course, the study of social problems is extremely complex, especially in this time of globalization and extraordinary social mobility, therefore, each time, the opportunities for debate remained open. The paper addresses a very problematic topic, but that belongs to the social topicality, and not only in Kosovar society as one of the societies in transition, but also quite prominent in the most developed countries, and with a long democratic tradition. It should be noted that Kosovo is not only going through an economic transition, but more than that, the political and cultural transition has taken a special place. It should be noted that society's approach to the state and politics is crucial and has a tremendous impact on the process of economic transition. The paper deals precisely with the tools and methods that Kosovar political parties have used and are using to seize power, where the focus is on populism and the spirit of hatred created during the two decades after the war in Kosovo.

The Causal Relationship Between Foreign Debt and Economic Growth: Evidence from Commonwealth Independent States

This study investigates the relationship between external borrowing and economic growth in the Commonwealth Independent States during the period 1995–2018. Autoregressive distributed lag (ARDL) model is employed to determine the co-integration relationship among the series and then vector error correction model (VECM) is used to analyse the causality between external debt and income. The obtained results suggest that there is a negative long-term unidirectional causal relationship running from external debt to GDP presenting a strong evidence of existence of debt overhang hypothesis. The possible reasons for this unidirectional causal relationship can be explained by poor management of provided financial resources and incomplete governance in economic transition process along with structural rigidities and immature institutions in these countries which, in the long term, resulted in insufficient capital charged to service external debt. The policymakers in these post-Soviet countries should not use foreign loans to capitalise the deficits in the economies; instead, they should be more determined in employing these funds in the areas that will create national value-added production and, thus, future income. JEL Classification: C10, F34, H63

Financial depth, income inequality, and economic transition

AbstractThis article examines the evolving finance–inequality nexus during the process of economic transition. We estimate the varying marginal effects of financial depth on income inequality in every state of the transition process. Using China as an example of transition economies, we establish the causal effects of financial depth on urban income inequality and examine the estimation biases when the evolving relationship is not appropriately characterized. Along the transition process of the Chinese economy, we identify a robustly asymmetric and roughly inverted‐L shaped relationship between financial depth and urban inequality. We find that financial depth alone accounts for 11–28% of the overall variations of urban income inequality and the marginal impacts of financial depth change with the degree of credit constraint, the fraction of state ownership, and the level of economic development.

The Presence of Populism in the Two Decades After the War in Kosovo

The rise of an extreme movement, which has consistently produced violence and hatred in Kosovar society for more than fifteen years, undoubtedly increases the curiosity of any researcher of social problems to deal with the study of this issue. Of course, the study of social problems is extremely complex, especially in this time of globalization and extraordinary social mobility, therefore, each time, the opportunities for debate remained open. The paper addresses a very problematic topic, but that belongs to the social topicality, and not only in Kosovar society as one of the societies in transition, but also quite prominent in the most developed countries, and with a long democratic tradition. It should be noted that Kosovo is not only going through an economic transition, but more than that, the political and cultural transition has taken a special place. It should be noted that society's approach to the state and politics is crucial and has a tremendous impact on the process of economic transition. The paper deals precisely with the tools and methods that Kosovar political parties have used and are using to seize power, where the focus is on populism and the spirit of hatred created during the two decades after the war in Kosovo.

Two Oils, One Evil: an Appraisal of Contemporary Dilemma of the Indigenous Population of Nigeria’s Oil-Delta Communities, 1956-2019

This study examines the processes of economic transition and the corresponding impact on the Niger-Delta communities. It argues that the region has witnessed several epochs of economic transition; all of which came with damning consequences. While the major focus of the study is the change from palm oil to crude oil (two oils), the study explores the curious linkage between economic transitions, contemporary poverty and environmental violence in the region (one evil). The integration of the region into the vortex of oil globalization has paradoxically and inversely increased the poverty amongst the rural poor. The study argues that while the ‘oily debacle’ yield endless violence against the indigenous population, issues of environmental governance exacerbates. This is evidenced in the government’s militarized mediation strategies that worsen the prospects of peace in the enclave. Typical of ‘resource curse’ philosophy, the wealth from crude oil that should improve the lot of the rural poor has directly shut them out of the expected benefits of oil extraction. The study investigates and avers that the unholy alliance between the State and global capital is a challenge and concludes that capitalist exploitation of the region on account of crude oil explains the contemporary dilemma of the indigenous population.

A theory of economic development and dynamics of Chinese economy

This paper constructs a theoretical model which captures the recent slowing-down of Chinese economy. In contrast with the previous literature which largely confines its focus on the resource misallocation between inefficient state-owned enterprises (SOEs) and more efficient private firms under a closed economy setting, this paper re-examines the dynamics of the growth of Chinese economy from the perspective of an open economy. In particular, this paper incorporates heterogeneous outputs and relative prices into the model, where private firms are assumed to be the major exporters and the remaining large SOEs create increasing import demand from the home country. By adding downward sloping world demand curve, our paper predicts a turning point during the transition process, as the falling relative price for exports starts to constrain and eventually slow down the growth; SOEs begin to co-exist with private firms in the economy before it is fully transformed. Our paper provides a theoretical foundation in terms of understanding the current dynamics and institutional change of Chinese economy. Additionally, this paper also provides quantitative evidence on the effects of financial development during the China's economic transition process.

The Role of the Financial Sector in Economic Development

This paper extended the framework developed by Song, Storeslleten and Zillibotti’s (2011) (SSZ) recent AER (American Economic Review) paper Growing like China, which captures the Chinese growth experience over the past twenty years, with a focus on the importance of the resource reallocation between the inefficient State Owned Enterprises (SOEs) and more productive private firms within the economy. In contrast with the set up made by their paper, this paper adds the heterogeneous outputs and relative price into the model, with the private enterprises are assumed to be the major exporters and the shrinking SOEs create increasing import demand from the home country. By adding the downward sloping world demand curve, our paper predicts a turning point during the transition process, as the falling relative price for exports starts to constrain and eventually ceases the transition before it is fully transformed. Our paper provides the counter-factual transitional experiences for the Chinese economy and enriches the theoretical predictions for the original model. Additionally, this paper has provided quantitative evidence on the effects of financial development during the economic transition process.

Analysis of shock transmissions to a small open emerging economy using a SVARMA model

Using a parsimonious structural vector autoregressive moving average (SVARMA) model, we analyse the transmission of foreign and domestic shocks to a small open emerging economy under different policy regimes. Narrower confidence bands around the SVARMA responses compared to the SVAR responses, advocate the suitability of this framework for analysing the propagation of economic shocks over time. Malaysia is an interesting small open economy that has experienced an ongoing process of economic transition and development. The Malaysian government imposed exchange rate and capital control measures following the 1997 Asian financial crisis. Historical decomposition and variance decomposition allow contrast of shocks propagating under different policy regimes. Malaysia is highly exposed to foreign shocks, particularly under the managed float exchange rate system. During the pegged exchange rate period, Malaysian monetary policymakers experienced some breathing space to focus on maintaining price and output stability. In the post-pegged period, Malaysia's exposure to foreign shocks increased and in recent times are largely driven by world commodity price and global activity shocks.

Faktor yang Mempengaruhi Hasil Agribisnis Tanaman Pangan dan Hortikultura serta Implikasinya Terhadap Kesempatan Kerja dan Kesejahteraan Rumah Tangga Petani di Provinsi Jawa Barat

Dudung Mulyadi , 2016, The Factors Affecting Crop Argribusiness and Horticulture and its Implication on Job Opportunities and the Welfare of the Farmers’ Households in West Java. The dissertation under the Guidance of Prof. Dr. Ir. Darwati Susilastuti, MM as the Main Advisor and Dr. Ir. Sunar, MS as a the Co-Advisor. The development of the agribusiness sector is a process of economic transition to increase the revenue and social welfare of agrarian people. The problems of farming in Indonesia are the decrease of the agricultural land area in West Java for small or landless farmers. Necessaily, the the welfare of farmers is not favourable because most of them are cultivators with the system of halves or share profits. The farmers’ capitals are limited to their households own capital since they do not have access to financial institutions. Additionally, it is ascertained that the quality of human resources is low, the technological instrument for farming is insufficient, and the market access of agricultural products is also low. The research aims to study of the impacts of farmland, venture capital, technology, marketing the products, and human resources on crop agribusiness and horticulture. The researcah also study the implication of crop agribusiness towards job opportunities and the welfare of the farm households. It is expected from this reasearch that the role of economic transition in agribusiness sector that increase job opportunities and advance the farmers’ welfare could be identified. The research uses the explanatory method explaining the causal relationship among factors related to welfare of the farmers’ households in West Java through hypothesis testing. The data are of the cross sectional types and they are collected from 17 regencies in West Java. The research model applies the Cobb-Douglas principles and uses the statistical analysis of linear regression through the Ordinary Least Square method (OLS). The research findings are (1) farmland, capital venture, marketing technology products and good affections of human resource affect significantly on the crop agribusiness and horticulture; (2) Crop agribusiness and horiculture have good significant effect on job opportunities; (3) Crop agribusiness and horticulture show weak effect on the welfare of farm housholds. In general it could be concluded that crop agribusiness and horticulture have not reinforce the welfare of farmers’ households in West Java province. The results of research implied that the increment of farmland, adequate capital venture investments, well implemented technology, well-organized products marketing, and a great quality of human resource improve the crop argibusiness and horticulture. The better the agribusiness is managed the better increment of job opportunities in West Java province. Keywords: farmland, capital venture, technology, products marketing, human resource management, crop agribusiness and horticulture, job opportunities and farm households welfare.

Shanghai Pilot Free Trade Zone and Its Effect on Economic Growth: A Counter-Factual Approach

Together with the deepening of globalization and economic integration, trade and investment liberalization has played more important role in economic cooperation. Besides the free trade agreements among member countries, free trade zone is also considered to establish a favorable environment in order to attract foreign investment and promote economic growth of the areas laying inside and outside the zone. On the basis of economic reforming and trade liberalization initiative, China approved the establishment of Shanghai Pilot free trade zone on September 29th, 2013. The Shanghai Pilot free trade zone is the experiment area of the whole country’s national economic transition process. For the first time, many new policies and management mode were adopted in this area to examine their performance and usability. This study aims to analyze the policy’s effect of Shanghai pilot free trade zone on Shanghai economic growth. By using counter-factual method, the study compares the difference of Shanghai GDP in counter-factual scenario from the actual scenario and figures out the policy effect with the existence of the free trade zone. Therefore, the finding emphasizes the strong effect of Shanghai free trade zone on its economic growth. Understanding the economic effect of Shanghai pilot free trade zone is necessary to further up investment and trade liberalization in China.