Liberalization Process Research Articles

TAXATION AND INCENTIVES IN RENEWABLE ENERGY INVESTMENTS

This research suggests that the under-one-roof taxation and incentives approach combined with a regularly adjusted subsidy may be the best course of action for learning by doing in renewable energy technology. In terms of financial investment, the study looks at how tax incentives and other forms of support for renewable energy sources are evaluated. The essential features of renewable energy sources are that they help to protect the environment, and renewable energy investments are a hot topic on the agendas of many countries. The Turkish energy market has been exposed to the liberalization process. So, the government, investors, and the people of the country are the main owners of these projects. Each partner directly or indirectly affects these investments or is involved in them. These things should be managed in a way that keeps the whole system in balance. This method turns the problem into a multi-objective optimization problem, with the goal of maximizing the benefits for all stakeholders. This research investigates the items related to renewable energy investments to analyse the risk factors for system risk mitigation and tax approaches.

All‐around trade liberalization and firm‐level employment: Theory and evidence from China

AbstractChinese firms faced an all‐around trade liberalization process during the early 2000s: lower barriers from other countries on Chinese goods, and lower Chinese barriers on other countries' goods and inputs. This paper disentangles the effects of each type of trade liberalization on Chinese firm‐level employment. We find that reductions in Chinese and foreign final‐good tariffs are associated with job destruction in low and mid‐low productivity firms and job creation in high‐productivity firms. Chinese final‐good trade liberalization produces the largest firm‐level employment responses, whereas the employment effects of Chinese input‐trade liberalization are limited to job destruction in the least productive firms.

Capital controls and capital flow volatility during global shocks: Indian experience

This paper examines the issue of capital controls in India and their effectiveness in stabilizing the capital flow volatility in the economy. It documents the evolution of the capital controls regime in India since its economic liberalization in 1991 and focuses on India’s experience with capital controls in the period leading up to the Global Financial Crisis (GFC) of 2008 until the taper tantrum aftermath in 2013. We construct a capital controls index based on data from the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER). The index shows careful ease of capital controls by Indian policymakers in the financial sectors, i.e., the capital market, money market and direct investment, over the 2001–2008 period. The index further shows that the process of decontrol in the capital market stagnated during 2009–2014 due to the GFC to insulate the Indian economy from global shocks. This paper further explores the impact of capital controls in managing capital flow volatility in the context of the GFC. Using the tobit estimation approach, we show that capital controls effectively reduce capital flow volatility in the pre-GFC period followed by a limited impact post-GFC. This complements the capital account liberalization process during pre-GFC period. Our findings support India’s prudent approach to capital account management as financial markets evolve to manage risk efficiently in a large economy.

Distributional Effects of Trade Liberalisation on Wages in India

There is a high level of policy interest on the effect of trade liberalisation on inequality, especially in developing countries, because of their large vulnerable populations. India also initiated the process of liberalisation as a response to the severe balance of payments crisis of 1991. However, both rural and urban inequality has been increasing since the period 1993–1994, with urban inequality increasing at a higher rate. This study empirically examines the impact of trade openness on wage inequality using panel data for Indian states (separately for rural and urban areas). The results of this study indicate that trade openness does not lead to decrease in the wage inequality in the states and their rural areas. However, urban wage inequality is found to be increasing due to trade openness. These results are analysed and explained by various factors present in the Indian economy such as, skill biased technological changes; trade in intermediate goods; barriers to domestic labour mobility; and pattern and composition of India’s exports. An interesting aspect emerging is that higher education levels lead to increase in wage inequality as returns to education and inequality are increasing and the increase is also attributed to liberalisation. JEL Codes: F16, O18, C23

The liberalisation of high-speed rail services in Spain: Ticket price in the Madrid–Barcelona corridor

Current EU regulations and initiatives aim to promote a series of structural changes within the rail sector to improve its efficiency and environmental sustainability. Thus, a liberalisation process has been implemented through the so-called "railway packages". In the case of Spain, in 2021 the Spanish state-owned railway infrastructure manager (ADIF) culminated a long and complex process, initiated in 2016, to replace the existing public monopoly with free market models. As a result, three different companies have signed a ten-year agreement on the provision of high-speed services on the Madrid-Barcelona route, Madrid-East and Madrid-South.By facilitating the entry of new competitors, a reduction of transport costs is expected, which will in turn reduce the charges paid by operating companies. This will benefit rail passengers. In fact, the Spanish high-speed rail network presents, in general terms, excess capacity and low levels of congestion, which makes it easier for new operators to access the infrastructure. Therefore, new rail services will increase by 65% the network's capacity, compared to pre-liberalisation scenario.Given the new highly competitive scenario, the prices and types of tickets are much more complex as they are highly influenced by numerous factors, including internal factors, external factors, competition among rail operators and strategic customers. However, an appropriate ticket-pricing strategy can not only attract more passengers but also improve revenue. Therefore, the main goal of this paper is to analyse the pricing strategy for High Speed Rail (HSR) services in the Madrid-Barcelona corridor, considering the competition among different rail operators.

Przekazanie sądowi powszechnemu sprawowania kontroli administracji publicznej jako odstępstwo od kognicji sądów administracyjnych na przykładzie Sądu Ochrony Konkurencji i Konsumentów

The goal of the article is to present the historical development of the exception from the rule of the court administration review by administrative courts, which is the transference of its conducting to the Antitrust Court (currently the Court of Competition and Consumer Protection). The additional goal is to answer the question of the grounds of the transference to a popular court the jurisdiction in antitrust cases, and then in regulatory cases. Two theses were formulated by the authors. The first thesis states that the Polish antitrust court model were based on the liberalization processes. The second thesis assumes that, despite faulty solutions in the procedural area, the functioning of the jurisdiction of the Court of Competition and Consumer Protection contributed to the development of competitive economy in Poland. The authors begin their consideration with the Act from 17th March 1921. The Constitution of the Republic of Poland (the so-called March Constitution) and the Act of 3rd August 1922 on the Supreme Administrative Tribunal. In addition, they analyze the liberalization processes that took place in Poland after the changes of 1989. The second part covers the genesis of the Competition and Consumer Protection Court, the evolution of the jurisdiction of the Antimonopoly Court from 1990 to 2017 and the analysis of the issue of hybrid appeal proceedings. In this part, the authors refer to draft laws, transcripts of the sittings of the Sejm of the Republic of Poland and analyze the statistics of the case law of the Court of Competition and Consumer Protection from 1992 to 2020. The deliberation shall be based on legal regulations and scientific papers. The analysis shall focus on the proposed bills and on the related legislative process. The following methods were applied in the article: dogmatic-legal and analytic-synthetic.

Importing from? Capacity adequacy in a European context

In this paper we ask the question: why has capacity adequacy become a worry in developed countries in general, and Europe in particular, in recent years, and how serious is this problem? While the liberalisation process and the fast move to variable renewable energy sources play a role in this process, they are not the only causes. We discuss the extent to which regulators and policy makers are able to influence the evolution of the market and also consider the role of and challenges created by regional markets and cross-boarder integration. We conclude that policy makers can go into one of two directions. The first option is to ignore cross-border trading in their planning. While this would create security of supply for individual countries, it would come at the cost of very significant investment subsidies. The alternative is to rely on cross-border trade, an option which requires not only close cooperation and coordination, but also significant trust between the jurisdictions and institutions involved, to ensure sufficient capacity. The choice between these options is a political decision, to be made at the national and supranational levels, not by regulators, and even less by market participants.

ЛІБЕРАЛІЗАЦІЙНІ ПРОЦЕСИ В ДОНБАСІ У РОКИ «ВІДЛИГИ»: МАСШТАБИ ТА ОСОБЛИВОСТІ

The presented article is aimed at studying the liberalization processes that took place in the social and cultural life of Donbas under the influence of the «thaw». The general trends and the scope of liberalization in the region were analyzed. The regional peculiarities were identified, and the factors that determined the shift in the social consciousness of the population of the region were pointed out. The recreation of spiritual atmosphere in Donbas of 1953-1964 is important in the context of understanding the realities of the functioning of cultural elite. The author sought the ways of revealing the problem of refracting possible influences on the worldview of the creative intelligentsia of the region. The statistical data on the progress of work on the study and clarification of the resolution on the personality’s cult and the tendencies of overcoming its consequences in Donetsk and Luhansk regions were provided. The possibilities of obtaining information from foreign radio broadcasts and press sources were analyzed. It was concluded that liberalization processes in Donbas corresponded to all-Ukrainian trends and were dependent on the cultural and political processes taking place in the capitals. Simultaneously, the democratization of cultural life in the regions was inferior to those processes in terms of scale. The peculiarities of the liberalization course were related both to the specifics of the province and the regional characteristics of Donbas itself (russification, strong regional self-identification, mythologizing of the region by the authorities). The sources of expanding the consciousness of the creative intelligentsia of the region were cultural and socio-political impulses coming from the center (Kyiv, Moscow); Western mass media (radio, press); personal contacts with outstanding cultural personalities of the former USSR (tours abroad, primarily in the countries of the so-called socialist camp and visits of groups from different countries), citizens of European countries, prisoners of Stalinist camps (occasional meetings, contacts with the relatives), trips abroad (creative business trips), etc.

Pravni i ekonomski aspekti kršenja međunarodnih sporazuma o prodaji robe i usluga

Sales have achieved huge dimensions worldwide under the current business environment brought about by the processes of globalization, deregulation, and liberalization. Sales contracts are crucial in today's global trade because of these factors. The spectrum of commodities that are the subject of commercial transactions and, by extension, agreements has greatly expanded as a result of the growth of industry, the economy, and multinational and transnational corporations. Sales contracts have distinct collision standards, quandaries, and treatments in addition to their consequences on the economy and law. Given the importance of pricing in all economic domains and the vast scope of international trade, sales contracts hold great relevance in today's international commerce. The range of goods subject to commercial transactions has expanded significantly with the growth of industry, the economy, and multinational and transnational corporations. The sales contract has implications for the economy and law, and its fundamental components have been treated differently in legal science. The growth and development of all company activities have been facilitated by the existence of international legal regulation.

РОЛЬ ТА ФУНКЦІОНАЛЬНІ МОЖЛИВОСТІ НЕУРЯДОВИХ ОРГАНІЗАЦІЙ У ЛІБЕРАЛІЗАЦІЇ ТА СТИМУЛЮВАННІ ПІДПРИЄМНИЦЬКОЇ ДІЯЛЬНОСТІ

The article examines the theoretical foundations of liberalization and stimulation of entrepreneurial activity. Liberalism is revealed as the ideological basis on which the liberalization of business is based. Liberalism is defined as a theory based on the statement that the highest value is the freedom of the human personality, in the economy – economic freedom. The article reveals the principles of neoliberalism: reduction of public expenditures and reduction of taxes; globalization of markets and the impossibility of pursuing a protectionist policy; free enterprise, competition and deregulation; efficient distribution of resources; opposition to the expansion of government power over business; minimization of state control and strengthening of the position of the private sector; government regulation of the economy if necessary, in order to help, support and protect the free market. The article describes the goals and main principles of economic liberalization. The regulation of the process of entrepreneurial liberalization at four levels is disclosed: global, institutional, managerial. The essence of the concept of stimulating business development is characterized. Despite the fact that the state, in the form of its bodies, plays a decisive role in the process of implementation of the liberalization policy, the aspect of participation in such processes by other independent institutions, in particular non-governmental business support organizations, which first often act as change initiators, knowing the problems of business environment, gaps in state regulation of the economy; secondly, acting as an intermediary between the government and business, increase the effectiveness of the practical implementation of changes, provide feedback and transparency of procedures, awareness of business circles and their support during the transition period; thirdly, they substantiate the expediency, practical aspects and priorities of implementing the policy of stimulating entrepreneurial activity, which contributes to the economic development of the country as a whole. The functional opportunities of non-governmental business support organizations regarding liberalization and stimulation of entrepreneurial activity have been systematized and revealed.

Methodological bases of organization heat supply in conditions of different interests of subjects of relationships

Heat supply is the most important area for the provision of energy services to a wide range of consumers. This industry determines the well-being of society, social stability and competitiveness of the economies of many countries of the world. The processes of energy liberalization initiated in the early 1990s led to the emergence of new forms of heat supply management based on market interaction among producers and consumers of heat energy. In market conditions, the problem of optimizing heat supply systems becomes much more complicated, and its structuring becomes multivariate depending on the characteristics of the industry organization. To solve the problems of optimal functioning and development of heat supply systems in changing conditions, along with existing optimization methods, it becomes necessary to use new approaches focused on solving problems in some specific uncertain situations characterized by conflicting interests of the parties, and often defined as conflict. The paper presents a comprehensive scientific and methodological approach based on mathematical modeling for solving problems of managing the development and functioning of heat supply systems in a market economy.

Foreign Direct Investment, Exports, and Domestic Output in Pakistan

The impact of the policy reform on economic performance has been one of the stifling issues in development economics in the recent years. Since the middle 1970s, there has been considerable progress in the trade reform in the most developing countries, turning from an import substitution strategy to export-oriented approach. Pakistan also follows export-oriented policies. Pakistan’s trade pattern and trade policy have been moving towards fewer and fewer controls, tariffs rates have come tumbling down. Export-led-growth hypothesis (ELG) suggests that due to positive correlation between export and growth, therefore, export-oriented policies contribute to economic growth. Thus, international trade and development theory suggests that export growth contributes positively to economic growth. On the basis of this framework, most empirical work on the effects of export promoting strategy followed in developing countries evaluated openness with trade. Empirical research about the effect of this liberalisation process has treated export as principal channel for growth. The relationship with exports and growth, grounded in endogenous growth theory, has been tested for Pakistan [Khan (1995); Ahmad, Butt, and Alam (2000) and Akbar (2000)].

Досвід повоєнної відбудови та євроінтеграції Хорватії

The article summarizes the factors of the successful post-war recovery of the Republic of Croatia. The author characterizes the process of peaceful reintegration of territories and the role of international organizations in this process. There were identified models of reconstruction of the territories that were under occupation, which needed institutional and financial state support in the return of refugees and activation of entrepreneurship. The stages and features of reforming public administration and state institutions are highlighted. The reasons for the constitutional reform and the consequences of the implementation of the administrative-territorial reform in Croatia are revealed. The process of political democratization and liberalization of the economy is analyzed. The author also clarifies the characteristic features of the modernization of the law enforcement, judicial and anti-corruption systems, which became the key to the inflow of investments, economic growth, European and Euro-Atlantic integration. A governmental and parliamentary structure with appropriate powers was identified, which coordinated the country's European integration efforts. The author is arguing that the post-war recovery in Croatia manifested itself not only in the reconstruction of the infrastructure, but was also accompanied by a complex of institutional changes, which ultimately made it possible to significantly reduce the level of corruption, improve the quality of management decisions, and develop a strategy and priorities for the country's long-term development.

The agricultural futures market in low development countries: a policy to respond to the volatility of prices?

This work discusses the possibility, or rather the effectiveness, of the use of agricultural futures as a means of hedging to minimize exposure to price risk. In particular, the analysis refers to "low-development countries" (LDCs), countries in which agricultural products play a prominent role and in which the process of market liberalization, which took place following the removal of state intervention, is determining an increasing exposure to price volatility. Knight's uncertainty is said to make both producers and speculators more risk averse, hence more conservative. In particular, when the futures price is well above the expected spot price (adjusted for the Knightian uncertainty), the optimal position for the producer is a total hedge of his production, while the optimal position for the speculator consists in not operating at all in the market. We can limit ourselves to observing that if a single producer and a single speculator operate in the market, the equilibria that can be reached are three: of complete exchange, of non-exchange and of partial exchange. The possibility of obtaining one of the three equilibria depends on the degree of risk aversion and the degree of Knightian uncertainty possessed by each of the two different subjects. Access to the capital market is a crucial element for the development of agriculture, both in the start-up phase and in the improvement phase. The search for new capital and new tools to facilitate market access requires a high degree of trust on the part of financial market operators, a trust that is often compromised by the low profitability of loans and the high risk associated with them. The exposure to risk of agricultural activities limits, in fact, the interest of traditional finance, reducing the availability of capital to the few remaining resources within the sector itself after the flight to more attractive alternative uses. Hence the need to introduce new financial and insurance techniques and services, such as to guarantee the agricultural sector the capital necessary for growth and, at the same time, attractive return opportunities for investors. Specifically, it is stated that one of the most profitable paths to follow in this regard is implementation within all EU member states of particular agricultural reforms that introduce risk management techniques in agriculture already successfully implemented by the U.S.A.1

The influence of natural gas (De)regulation on innovation for climate change mitigation: Evidence from OECD countries

Many studies have examined deregulation as a market tool for competition and efficiency enhancement, but climate change mitigation has hardly been pursued. This paper utilizes the staggered difference-in-difference(SDID) method on the panel of 17 OECD countries for 1985–2017. Authors progressively compare countries that have deregulated their natural gas sector and otherwise to single out the impact on the innovation related to carbon capture, storage, and sequestration(CCS). The SDID approach enables authors to provide evidence for the entire spectrum of liberalization, which has implications for both developed and developing economies. Focusing on carbon capture and storage(CCS) innovation also helps introduce net-zero emission relevance. The empirical results show following the liberalization of the natural sector, deregulation promotes CCS innovation, implying it can promote climate change action. Authors also find that the deregulation effects on CCS innovation among the OECD countries are driven by those with relatively low natural gas regulation, natural gas net-exporters and high input innovation performance in global innovation ranking. In general, (1) our results highlight the role of the regulatory environment and liberalization process in explaining the disparity conclusion of the influence of energy sector deregulation on innovation in extant literature. (2) show potential for natural gas deregulation-lagging economies to accelerate net-zero emission with the market liberalization. (3) suggest augmenting country policy with a market mechanism to accelerate climate change mitigation technologies, among other policy implications.

Melting pot or salad bowl: Cultural effects on industrial similarity during trade liberalization

This paper examines the impact of culture on the industrial similarity between two adjacent counties during the process of trade liberalization between 1998 and 2007. The findings show that trade accelerates the industrial similarities between counties. The evolution of similarity is unequal between regions and over time, as industries in neighboring counties that belong to different dialect regions become more similar than industries within the same dialect region. The rise in industrial similarity is being fueled by the emergence of high-skill-intensive businesses as a result of trade-related technology spillovers. Adjacent counties of different dialects have greater skill endowments, which facilitate information transfer.

The Rise of Islamic Liberalism: A Qualitative Study

The contemporary world order from public to private, academic to politics and society is largely based on liberal values and ideals. This global hegemony of the liberal order has also become a catalyst for the liberalization of Islam. This article details the emerging trends of Liberal Islam in Muslim societies and focuses on the post 9/11 period. The wave of fundamentalism has not only caused a strange response among the modernized classes of the Muslim population, but also among traditionalists and the fundamentalists. This response is the emergence of a cosmopolitan liberalism in Muslim societies. In this article, various aspects and factors of Islamic liberalism will be discussed. The process of liberalization in the traditional circles of Pakistan and the liberalization of the Islamist political organizations are discussed as representative cases. The article would be concluded by suggesting the future of liberal Islam, the challenges it faces and how it will dominate the major interpreted versions of Islam.  

Financial liberalisation, financial development and economic growth in cameroon: a tri-variate vector error correction modelling approach

The aim of this study is to analyse the relationship between financial liberalization, financial development and economic growth in Cameroon. Use is made of a tri- variate VAR model on Cameroon data for the period 1973- 2017. The results obtained show that financial liberalisation and financial development positively affect economic growth. Though financial development does not individually cause economic growth, when considered with financial liberalisation, they jointly cause economic growth.Financial liberalisation and economic growth are individually and jointly found to granger cause financial development. Financial development causes financial liberalisation while economic growth causes financial liberalisation only when jointly considered with financial development. The impulse response functions reveal that economic growth positively responds to both financial development and financial liberalisation though the effect of financial development soon fates out to become negative.Financial development is found to positively react to innovations in financial liberalisation and negatively to economic growth.As concerns financial liberalisation, it negatively responds to financial development and positively to economic growth. Also,variance decomposition reveals that variations in economic growth are mostly explained by its past values, followed by financial liberalisation and finally financial development. Financial development on its part is also mostly explained by its past values followed by financial liberalisation and finally economic growth. Based on all these, the policy recommendation we make is that the on-going financial liberalisation process in the country should be enhanced in view of permitting the financial sector to efficiently play its role in the growth process of the country.

Empirical Analysis of the Relationship Between Trade Openness and Economic Growth: The Case of Eastern European Countries

Geçtiğimiz yüzyılın en çarpıcı ekonomik ve siyasal olaylarından biri olan SSCB’nin dağılmasıyla, birlikten ayrılan ve merkezi planlamacı ekonomi anlayışına sahip olan Doğu Avrupa ülkeleri daha önce tecrübe etmedikleri serbest piyasa ekonomisine geçmiştirler. Bu siyasi ve iktisadi değişimle birlikte Doğu Avrupa ülkeleri, aynı dönemde küreselleşme akımlarının etkisi altında kalarak ticari liberalizasyon süreçleri ile karşılaşarak ticari dışa açık bir yapıya sahip olmuşturlar. Bu çalışmanın amacı seçili 10 Doğu Avrupa ülkesinde ticari dışa açıklık ile ekonomik büyüme arasındaki ilişkiyi 1995-2020 dönemi boyunca analiz etmektedir. Yapılan zaman serisi analizi sonucuna göre, 3 ülkede (Letonya, Litvanya, Slovakya) ticari dışa açıklık ve ekonomik büyüme arasında uzun dönem ilişkisi tespit edilmiştir. Panel veri analizi sonuçlarına göre, ticari açıklık ve ekonomik büyüme arasında herhangi bir ilişki tespit edilememiştir.

Distributed energy system selection for a commercial building by using Multi Criteria Decision Making methods

Turkiye has made a significant progress in liberalizing electricity generation, transmission and distribution systems. Utilization of Distributed Generation systems are encouraged to contribute to this liberalization process. It is a complex problem for the consumer to choose an appropriate combination of Distributed Generation systems. This complexity arises from the differences among the characteristics of Distributed Generation systems such as investment cost, operating cost, carbon emissions, primary energy consumption and primary energy utilization rate. Therefore, Distributed Generation system selection problem emerges as a multi criteria decision making problem. Finding the optimal alternative for many conflicting and interacting criteria can be achived by Multi Criteria Decision Making methods.In this study, the problem of choosing the most suitable alternative among 7 available Distributed Generation systems for a commercial building, which is a real-world problem, is discussed. First of all, 5 criteria were determined by considering the opinions of 23 experts in the field and the studies in the literature. The AHP method was used to weight the criteria according to 6 scenarios. Alternatives were ranked by using 6 Multi Criteria Decision Making methods (AHP, ANP, TOPSIS, ELECTRE, PROMETHEE, VIKOR). Spearman correlation analysis was performed in pairs on all 6 rankings for each scenario in order to identify which ranking is correct and the final ranking table was formed. The results showed that the criteria whose weights changed as a result of the scenarios according to the local conditions had an effect on the selection of the Distributed Generation system. In addition, the final ranking can be formed more accurately by performing correlation analysis of the rankings by using different multi criteria decision making methods.