Mature Market Economies Research Articles

Inflation bias and productivity shocks in the transition economies: the case of the Czech Republic

This paper examines the reliability of macroeconomic price indices in transition economies, and specifically in the Czech Republic. While methodologically sophisticated price indices in mature market economies may be biased, most policy makers believe that this is only a minor problem and that their price indices accurately describe price and thus real macroeconomic dynamics within their economies. However, some observers have argued that similar methods applied in transition economies have created time series that badly distort real and nominal measures of economic activity. If this were the case, then transition price data have misled both the public and policy makers about the true economic performance during transition and have seriously undermined academic research efforts. We examine the major sources of bias in price indices in a transition economy, specify and estimate a model of price formation and identify systematic and random productivity shocks to both the producer price and consumer price indices (PPI and CPI) in the Czech Republic. Between 1993 and 1998 we find that price index biases have been modest. Therefore, we conclude that Czech macroeconomic policy was not, in general, led astray by biased or distorted statistics.

PRIVATIZING SOCIALIST FARMING IN HUNGARY

In the early 1990s, some 1400 collective farms were privatized in Hungary and became agribusinesses and other farm enterprises. An important step in privatization was the division of common property (cpd) among the members, and the choice of exiting individually or in groups with one's share, or of continuing in a successor farm enterprise as a shareholder. The study reports on privatization in 78 collective farms. Constraints on farmers' choices were the privatization legislation and preserving farming efficiency. In cpd decided by majority vote in farmers' assemblies, it appears that in a third of the collective farms, interest voting prevailed, in another third equity voting was dominant, balancing need and contribution justice, and that in the others both interest and equity voting occurred. Though successfully accomplished, privatization does not yet provide the same benefits which exist in a mature market economy.

CHINA'S REGIONAL INEQUALITY AND RELATED LONG‐TERM POLICIES

This paper presents a simple model to study the reasons for China's regional inequality and proposes a few long‐term policies for solving the problem. Based on an empirical estimation, it is shown that the great regional inequality of the recent years is caused by high disparities m investment between the provincial capital, in population growth and in regional relative price indices. It is argued that such regional inequality could be reduced in the long term by adjusting China's coastal‐favorite regional development strategy, by partially relaxing strict regulations on inter‐regional migration, and by driving further forward the transformation towards a mature market economy.

THE NEED FOR INTERMEDIATE SUPPORT-STRUCTURES FOR ENTREPRENEURSHIP IN TRANSITIONAL ECONOMIES

In economies in transition, the newly emerging private sector lacks professional, financial, and economic structure provided by ministries and government agencies to state-owned enterprises. In mature market economies, the small and medium-size enterprise (SME) sector has been acknowledged as being the backbone of the economy. Research on the European Union reveals that the success of entrepreneurship depends on a conducive climate which includes intermediate support structures, such as branch/sectoral organisations, specialised SME research organisations, business advisory centres, innovation centres, employers' organisations, etc. The experience from the economies in transition in Central and Eastern Europe shows that the entrepreneurs suffer from weak support of financial, management, environment and trade services. In order to develop a healthy SME sector, a favourable environment should be created and supporting intermediate structures established. Such support organisations should, in addition, bridge the gap between government agencies and the private sector.

The Nature of the Fiscal Crisis in Transition Countries

Fiscal stance is at the center of economic debate all over the post socialist countries. The most important issues that are more or less realized seem to be following. 1. To what extend will public sector budget be monetized in the future i.e., do they eventually spell inflation?. 2. How can one reconcile the twin deficits i.e. the current account and budget deficit with the need for long run growth and the need for servicing the external debt. 3. Is it true, as argued by M. Friedman and R. Barro that the only relevant aspects of the budget are the volume and composition of public spendings on goods and services and that the choice of financing method is irrelevant? 4. Is a financial crowding out of private saving an issue of concern? 5. How do we assess the solvency of a government i.e. how do we evaluate the consistency of the government's spending and revenue plans with its outstanding debt obligations and its inflation objectives? 6. What are the structural and distributional effects of budget deficits? It is not easy to solve these or similar problems in mature developed market economies. Trying to answer to these questions with regards to transition economies appears to be very hard work. Specially if these problems are to be placed within the framework of fiscal crisis. Therefore it seems sensible to start the analysis with describing the nature of fiscal stance in post socialist countries and then use the concept as a background for further more detailed questions.

An exploratory investigation of interpersonal trust in new and mature market economies

This study investigates antecedents and consequences of interpersonal trust in new and mature market economies. The authors present a model which suggests that interpersonal trust emerges as a consequence of the legal environment and the extent of interfirm managerial control. The model also suggests that interpersonal trust and managerial controls influence performance. Hypotheses are tested in retail petroleum channels in Poland, (former East) Germany, and Norway. The results indicate that the production of trust and performance varies by country. The paper concludes with a discussion of the implications for franchise management and theory.

Small Business Enterprise: An Economic Analysis

The role of small business enterprise in a mature market economy is one of the major issues in contemporary industrial organization, and is the focus of this book. Small Business Enterprise brings new standards of rigour and insight into the study of small firms by importing contemporary ideas from industrial economics and by using up-to-date statistical and econometric techniques. Based on a uniquely rich set of data, Small Business Enterprise focuses on the early period after start-up of the small firm. It investigates competitive niches and how they are established, determinants of growth and profitability, the factors fostering survivial, and many other central issues. This core of economic analysis is complemented by an innovative case profile approach, which considers the real behaviour of small firms in a competitive environment; and a section on the political economy of small firms, which looks at the ethics of competition and the enterprise culture.

PRIVATIZATION IN ISRAEL The Creation of a Mature Market Economy*

Annals of Public and Cooperative EconomicsVolume 65, Issue 2 p. 247-279 PRIVATIZATION IN ISRAEL The Creation of a Mature Market Economy* Igor GURKOV, Igor GURKOV Foundation for Economic Research, Erasmus University, Rotterdam Higher School of Economics, MoscowSearch for more papers by this author Igor GURKOV, Igor GURKOV Foundation for Economic Research, Erasmus University, Rotterdam Higher School of Economics, MoscowSearch for more papers by this author First published: April 1994 https://doi.org/10.1111/j.1467-8292.1994.tb01514.xCitations: 1 * The research for this paper has been sponsored by the Shapiro Fund of the Israeli Ministry of Absorption. The author is very appreciative of the support, advice and encouragement of Shlomo Maital. In addition, the author would like to thank Avner Ben-Ner, Solomon Cohen, Maartin de Zeeuw and an anonimous referee for helpful comments on an earlier draft. Any remaining errors are his own responsibility. * Note: before a title means the publication is in Hebrew. AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume65, Issue2April 1994Pages 247-279 RelatedInformation