Post-transition Countries Research Articles

Welfare against Growth Gains in Post-Transition Countries. What are the Consequences for Stability?

Abstract This paper discusses the underpinnings of the financial crisis of the last decade in posttransition countries. It explores the endogenous reasons of this crisis, and in particular a possible link between delayed and unequal growth of household incomes on the one hand and the instability of the growth and depth of recession after the financial crisis on the other. It indicates possible factors underpinning the rapidly growing indebtedness of households, enabling faster, but unsustainable growth in consumption. Furthermore, it claims also that the artificially boosted growth of consumption and a favourable proportion between wages and profits could attract investment (also FDI), possibly searching for short-term gains. It underlines that while the inflow of financial funds was the major reason for unstable growth in this region, endogenous factors also contributed.

On the Twin Deficits Hypothesis and the Import Propensity in Transition Countries

This article uses co-integration and related techniques to test for a long-run causal relationship between the fiscal and external deficits of three post-transition countries in Central and Eastern Europe. In addition, an import propensity model is tested by applying OLS and GMM. All the results reject the Twin Deficits Hypothesis. Instead, the results demonstrate that specific transition factors such as a high import intensity of exports and net capital inflows affect the trade balance.

In Transit: The Well-Being of Migrants from Transition and Post-Transition Countries

The extant literature has focused on migration's consequences for the receiving countries. In this paper, we ask a different but important question: how much do migrants gain from moving to another country? Using Gallup World Poll data and a methodology combining statistical matching with difference-in-differences, we assess migration's effects on the well-being of migrants from transition economies. We contribute to the literature by showing that in addition to increasing household income, migration enhances subjective well-being and satisfaction with freedom. The results are robust to sensitivity checks. Understanding the causal effects of migration on perceived and actual well-being is crucial for an informed public policy debate and has direct implications for social cohesion and integration policy.

Bank Ownership Structure, SME Lending and Local Credit Markets

In this paper, by employing a novel approach, we study the relationship between bank type and small-business lending in a post-transition country. Using a unique dataset on bank branches and firm-level data, we find that local cooperative banks lend more to small businesses than do large domestic banks and foreign-owned banks, even when controlling for the financial situation of the cooperative banks. Additionally, our results suggest that cooperative banks provide loans to small businesses at lower costs than foreign-owned banks or large domestic banks. Finally, we show that small and medium-sized firms perform better in counties with a large number of cooperative banks than in counties dominated by foreignowned banks or large domestic banks. Our results are important from a policy perspective, as they show that foreign bank entry and industry consolidation may raise valid concerns for small firms in developing countries.

Tax Compliance Costs: Selected Post-transitional Countries and the Czech Republic

The paper presents the tax compliance costs (TCC) measurements in the Czech Republic, Slovakia, Slovenia and Croatia during the last decade and discusses methods and results of different studies. The authors also present their results of the Czech TCC measurements in 2004 and 2008 for the VAT, corporate income tax, personal income tax of employees and self-employed. The paper uses the econometric analysis to shows which factors affect the size of the TCC at tax payer's level and analyses how the tax payer's size and other factors influence the relative volume of TCC.

Geography Courses in the University Studies of Economics in the Context of Globalization

The research explores the need of introducing geography courses into the university studies of economics, particularly into management studies, and proposes a model for the implementation of geography courses into the undergraduate and graduate study programs of management in the Department of Economics at the University of Zadar, Croatia. The paper presents a detailed description of the two proposed courses—Economic Geography and Political Geography—including the course goals and learning outcomes, as well as factual insights, theoretical knowledge, social and cognitive skills, independence, responsibility, and other competences that the students will acquire in both courses. The syllabi containing these data are in line with the Bologna process and Croatian qualifications framework whose implementation into the educational system was accepted by Croatia when signing the Bologna declaration principles. The paper deals with a number of essential research issues: How to carry out the modelled implementation and introduce a necessary level of multi- disciplinary quality to the economics study programs? What are the obstacles and constraints that may arise in the process? In what way are the post-transition countries specific in this regard? How may these changes affect the learning outcomes and competencies that management students have to acquire in the field of geography? Is the significance of the described implementation even greater—and to what extent—with regard to the forthcoming accession of Croatia to the European Union? The methodology that was used in the research is related to successful cases of similar implementation of geography courses into economics study programs in the world, but also to the observation during teaching in the Department of Economics at the University of Zadar. The information collected by the observation revealed that the students’ knowledge and competencies in this area were insufficient. The results gathered over the first two years of the implementation of the two geography courses—Economic Geography and Political Geography—proved that the students entirely satisfied the criteria set by the syllabi of the respective courses and that they successfully met the course requirements, thereby acquiring the desired competencies. This leads to the conclusion that the thesis set forth in this paper proved to be correct, and that this paper’s model for the implementation of geography courses in the area of management studies produced first good and promising results.

Alarming weight gain in women of a post-transitional country.

In post-transitional countries, obesity disproportionally affects women. Longitudinal studies can detect high-risk groups in whom to target actions. We investigated the magnitude and velocity of BMI changes in Chilean women of reproductive age and evaluated whether these trends vary in specific groups. Longitudinal study. We measured weight and height in 2007 (baseline) and again in 2010 (follow-up); we estimated change in BMI (weight/height2) within the 3-year period and assessed its relationship with age, years of education and parity, collected at baseline and follow-up using a questionnaire. Population-based cohort of low- to middle-income Chilean women. Seven hundred and sixty-one women of reproductive age (mean 32·0 (sd 7·0) years), mothers of children who participate in the Growth and Obesity Cohort Study (GOCS). At baseline, 61 % of women had BMI ≥ 25·0 kg/m2. After 3 years, women gained on average 2·6 kg and obesity (BMI ≥ 30·0 kg/m2) increased by 23 % (12 % new obesity cases). Women with normal nutritional status gained more BMI than obese women (1·4 v. 0·6 kg/m2, P < 0·001). An increase in parity was positively associated with BMI change, independently of age, nutritional status and education (P < 0·05). Age and education were not associated with BMI change after controlling for other factors (P > 0·05). In Chile, a post-transitional country, we observed an alarming increase in obesity among women of reproductive age. Our results indicate that in this population actions need to be targeted at all women irrespective of their nutritional status. A key component of these policies should be avoiding excessive weight gain during pregnancy.

Monetary determinants of deposit euroization in European post-transition countries

This paper investigates the long-run and short-run relationship between deposit euroization in twelve European post-transition economies and two determinants of deposit euroization that are under the influence of monetary policy: the exchange rate and the interest rate differential. The link between deposit euroization, exchange rates and interest rate differentials is investigated using Johansen cointegration and error correction models for each country separately. The results suggest that changes in both monetary drivers have significant effects on deposit euroization and are therefore important for explaining and fighting deposit euroization. Differences between exchange rate regimes, fixed and managed vs. floating, seem to matter for deposit euroization.

Adherence to a physical activity intervention among older adults in a post-transitional middle income country: A quantitative and qualitative analysis

Adherence to a physical activity intervention among older adults in a post-transitional middle income country: A quantitative and qualitative analysis

Valuation of Mortality Risk Attributable to Climate Change: Investigating the Effect of Survey Administration Modes on a VSL

The health impact attributable to climate change has been identified as one of the priority areas for impact assessment. The main goal of this paper is to estimate the monetary value of one key health effect, which is premature mortality. Specifically, our goal is to derive the value of a statistical life from people’s willingness to pay for avoiding the risk of dying in one post-transition country in Europe, i.e., the Czech Republic. We carried out a series of conjoint choice experiments in order to value mortality risk reductions. We found the responses to the conjoint choice questions to be reasonable and consistent with the economic paradigm. The VSL is about EUR 2.4 million, and our estimate is comparable with the value of preventing a fatality as used in one of the integrated assessment models. To investigate whether carrying out the survey through the internet may violate the welfare estimate, we administered our questionnaire to two independent samples of respondents using two different modes of survey administration. The results show that the VSLs for the two groups of respondents are €2.25 and €2.55 million, and these figures are statistically indistinguishable. However, the key parameters of indirect utility between the two modes of survey administration are statistically different when specific subgroups of population, such as older respondents, are concerned. Based on this evidence, we conclude that properly designed and administered on-line surveys are a reliable method for administering questionnaires, even when the latter are cognitively challenging. However, attention should be paid to sampling and choice regarding the mode of survey administration if the preference of specific segments of the population is elicited.

Vplyv priamych zahraničných investícií na inovačnú činnosť firiem

We analyse regional spill-over effects from FDI on innovation activities of domestic firms in Eastern European and Asian transition and post-transition countries. The analysis is carried out using the World Bank 2009 Enterprise survey. We look also at the impact of FDI on innovation activities of domestic firms at regional level. We find the evidence for a non-linear impact of foreign firms on innovation. An increasing regional foreign presence at first reduces innovation activities and then beyond a certain point increases it. This is consistent with the literature which suggests that either effect may be plausible. Foreign owned firms are more likely to engage in product innovation and license products from other firms. We also find the evidence for the positive statistically significant impact of access to bank credit, infrastructure, size of the firm, being part of a group of firms and competitive pressure on innovation activities of firms.

Credit Euroization in Eastern Europe: The ‘Foreign Funds’ Channel at Work

This paper aims to analyze the process of credit euroization in Emerging Europe and to investigate the motives of borrowers and lenders to engage in foreign currency lending. We empirically test for drivers of credit euroization in 13 European post-transition countries over the pre-crisis period 1999–2007. We find evidence that underpins the concept of the foreign funds channel, which asserts that credit euroization is driven by foreign borrowings, regardless of whether the funds are channeled into the system via subsidiaries of foreign banks (foreign bank channel) or via domestic banks borrowing abroad.

Determinants of Cognitive Development of Low SES Children in Chile: A Post-transitional Country with Rising Childhood Obesity Rates

Studies conducted in developing countries have noted associations between concurrent stunting, social-emotional problems and poor cognitive ability in young children. However, the relative contribution of these variables in Latin America is likely changing as undernutrition rates decline and prevalence of childhood obesity rises. We conducted a cross-sectional study of 106 normal-weight and 109 obese preschool children to compare the relative contribution of early nutrition, sociodemographic factors and psychosocial variables on cognitive development in normal-weight and obese preschool children in Chile. The study variables were categorized as: (1) socio-demographic (age, sex, birth order and socioeconomic) (2) early nutrition (maternal height, birth weight, birth length and height at 5years) (3) psychosocial factors (maternal depression, social-emotional wellbeing and home space sufficiency). In order to assess determinants of cognitive development at 4-5years we measured intelligence quotient (IQ); variability in normal children was mostly explained by socio-demographic characteristics (r(2)=0.26), while in obese children early nutritional factors had a significant effect (r(2)=0.12) beyond socio-demographic factors (r(2)=0.19). Normal-weight children, who were first born, of slightly better SES and height Z score>1, had an IQ≥6 points greater than their counterparts (p<0.05). Obese children who were first born with birth weight>4,000g and low risk of socio-emotional problems had on average≥5 IQ points greater than their peers (p<0.05). We conclude that in Chile, a post-transitional country, IQ variability of normal children was mostly explained by socio-demographic characteristics; while in obese children, early nutrition also played a significant role.

Learning, political attitudes and crises: Lessons from transition countries

This paper illustrates the sensitivity of political attitudes to the business cycle. It shows how the 2008 economic crisis has reshaped individual support for democracy and market liberalization in post-transition countries. Pro-reform attitudes have lost ground between 2006 and 2010 in Central and Eastern European countries that were hit by a negative economic shock. By contrast, they have increased in the CIS. Although on average, individual exposure to the crisis is associated with lower support to democracy and markets, it drives the demand for liberal reforms among groups of the population that were most excluded from the political-economic system in place, the youth particularly, in countries that lag behind in terms of liberalization and, where institutions are corrupt. We propose an interpretation of these evolutions in terms of learning and updating of beliefs.

Democracy promotion, empowerment, and self-determination: conflicting objectives in US and German policies towards Bolivia

Promoting democracy implies fostering political empowerment and self-determination. Although this creates obvious problems for any external policy seeking to change authoritarian regimes, mainstream thinking on democratization in the case of post-transition countries would predict a somewhat easier task for potential democracy promoters: cooperation with the elected government strengthens the democratic regime, while democracy assistance that supports institutional capacities and civil society participation simultaneously contributes to the protection and deepening of democracy. This article argues that such a view is far too simple. In the broad range of ‘normal’ post-transition countries, democracy promotion can be confronted with a variety of conflicts of objectives associated with the fact that there is no democracy without some kind of self-determination and no process of democratization without some degree of political empowerment. The article presents a typology of these conflicts of objectives and applies it to the case of Bolivia. Subsequently, it offers an analysis of how two important democracy promoters in the country – namely, the US and Germany – reacted to Bolivia's ‘democratic revolution’ and handled their respective conflicting objectives.

Does housing wealth affect private consumption in European post-transition countries? Evidence from linear and threshold models

This article analyses the relationship between housing wealth and consumption for four European post-transition economies: Bulgaria, Croatia, Estonia and the Czech Republic. We use a vector error correction model and a threshold error correction model in order to asses the long-run and the short-run responsiveness of consumption to permanent changes in housing wealth. We find evidence supporting the existence of the housing wealth effect in all four countries, the strength of which is comparable with developed countries' wealth effect. In Bulgaria, Croatia and Estonia the response of consumption to housing wealth changes is characterised by threshold effects, while in the Czech Republic the wealth effect is detected only in the linear framework. The error correction model estimates suggest aggregate consumption adjusts to deviations from the long-run equilibrium; however, in countries where the wealth effect is characterised by threshold effects this adjustment process is partial and takes place when consumption is below levels warranted by the fundamentals. We also find evidence of relatively strong consumption persistence in three of the four countries.

Learning, Political Attitudes and the Crisis in Transition Countries

We estimate the impact of the recent economic crisis on support for democracy and a free market economy in 30 post transition countries and five western European countries. Political values are cyclical and reflect a learning process. Support for the market and democracy has decreased between 2006 and 2010 in countries that were hit the hardest and that were the most advanced on the path to liberal reform, and notably new EU members. By contrast, it has increased in the CIS. This last result is driven by the young and unemployed. Although individual exposure to the crisis is associated with lower average support to democracy and markets, it leads these segments of the population, which were most excluded from the political-economic system in place to demand more liberal reforms in countries with corrupt institutions and that lag behind in terms of economic and political reform. We rely on individual level, within-country variation and on the use of a large set of individual controls in order to identify the causal effect of the economic crisis on political attitudes.

The use of institutional measures for business ethics implementation in family and non- family businesses: Does a family matter?

The case study research methodology in combination with quantitative methods was applied to explore the influence of a family on the emergence and presence of informal and formal institutional measures of business ethics implementation. For the empirical testing, we have selected Slovenia, one of the most developed European post socialist transition countries. Our research reveals that the role modeling is presented to a greater extent in family than in non-family businesses; this measure is the most popular measure of encouraging ethical behavior in family as well as in non-family businesses. The core value statement is presented to a greater extent in non-family than in family businesses, reflecting the less formal mode of family businesses functioning. Key words: Family, family enterprise, case study, informal and formal measures of business ethics implementation, ethical behavior, transition economies, Slovenia.

P2-95 Obesity increases 28% in 3 years in premenopausal low-income Chilean women independently of body size misperception

IntroductionHow body image perception (BIP) influences changes in Body Mass Index (BMI) in adult women has not been evaluated.ObjectiveTo assess BMI-changes over a 3-year period and their relationship with BIP...

A balance of the democratic transformation in Central-Eastern Europe - DOI: 10.9732/P.0034-7191.2011v103p41

21 years after communism it is a time todraw up a balance-sheet on the democratic transformationsin Central-Eastern Europe (Poland, Slovakia,Czech Republic and Hungary). As the article proves,those do not represent a linear change from one pointof history – communist totalitarism – to another, anunproblematic liberal democracy. On the contrary, theeconomy of the Visegrad Fours is very fragile, whichbecame by the global financial crisis. Those have mostclear and most decisive is the constant influence of theEuropean Union to the democratization efforts in thecountries of the region. Finally, the paper argues thatthe process of democratic consolidation has gone quitefar in the Visegrad Countries and they are almost atthe same level as the other post-transition countries ofSouthern-Europe and Latin-America. One thing is forsure: the former ‘socialist’ countries have passed thepoint from where they could return to the old system.