Growth in Transition: What We Know, What We Don't, and What We Should

This essay surveys macroeconomic issues that marked the transition from centrally planned to market economy in Central and Eastern European and former Soviet Union countries. We first establish a set of stylized facts of the transition so far, namely: (1) output fell, (2) capital shrank, (3) labor moved, (4) trade reoriented, (5) the structure changed, (6) institutions collapsed, and (7) transition costs. We then critically survey the theoretical literature on transition, discussing various explanations for the initial output fall as well as medium term issues, such as optimal speed of transition, disorganization, institutions and sectoral reallocation as a source of output dynamics. Last, we review the empirical literature to assess how well it translates the theoretical models and explains the stylized facts. The essay concludes with a succinct list of suggestions for future research.http://deepblue.lib.umich.edu/bitstream/2027.42/39854/3/wp470.pd

Growth in Transition: What We Know, What We Don't, and What We Should

This essay surveys macroeconomic issues that marked the transition from centrally planned to market economy in Central and Eastern European and former Soviet Union countries. We first establish a set of stylized facts of the transition so far, namely: (1) output fell, (2) capital shrank, (3) labor moved, (4) trade reoriented, (5) the structure changed, (6) institutions collapsed, and (7) transition costs. We then critically survey the theoretical literature on transition, discussing various explanations for the initial output fall as well as medium term issues, such as optimal speed of transition, disorganization, institutions and sectoral reallocation as a source of output dynamics. Last, we review the empirical literature to assess how well it translates the theoretical models and explains the stylized facts. The essay concludes with a succinct list of suggestions for future research.Economic Growth, Transition Economies

The rural non-farm economy and poverty alleviation in Armenia, Georgia and Romania: A synthesis of findings.

The aims of this study are to improve understanding of the dynamics of the rural non-farm economy in providing employment and income diversification opportunities in Armenia, Georgia and Romania. The study aims to focus on improving the well-being and livelihoods of the rural population, through developing their capacity to access resources and actively participate in non-farm rural enterprise and employment opportunities. We place emphasis on the diversity and diversification of income sources in the face of vulnerability to shocks and stresses - particularly on the part of the poorest members of society; and provide an in-depth analysis of the context (socio-cultural, economic, agronomic) in which non-farm rural livelihood options are currently pursued and in which new options can be developed.rural non-farm economy, poverty, diversity, non-agricultural growth, transition economies, Central Asia, Balkans

Use of ICTs and the Economic Performance of SMEs in East Africa

determinants of aid efforts, generosity, ODA, DAC, donors, G7

Use of ICTs and the Economic Performance of SMEs in East Africa

This paper assesses the use of information and communication technologies (ICTs) and their impact on the economic performance of small- and medium-scale enterprises (SMEs) of three East African countries: Kenya, Tanzania and Uganda. Findings of the paper suggest that the diffusion of ICT among East African SMEs is both industry and country specific. The empirical findings suggest that investment in ICT has a negative impact on labour productivity and a positive impact on general market expansion. However, such investment does not have any significant impact on enterprises’ return, nor does it determine enterprises exporter (non-exporter) status.information and communication technology, small and medium enterprises, firm performance, market expansion, East Africa

Trust in China: A Cross-Regional Analysis

Using the cross-regional data, this paper shows that trust has a strong effect on uneven development of economy in China. As is discovered in many studies, it is found that trust affects the growth of economy, size distribution of enterprise, and FDI inflow and so on. We also find that cross-regional differences of trust in China are reflections of the regional diversities of education, marketization of economies, urbanization, population density and transportation facilities. Although not statistically significant, “too many officials” may damage social trust. The paper demonstrates that trust cannot simply be taken as a cultural heritage. The paper also argues that sustainability of further economic development of China much depends on how fast China can build trust-facilitating institution, and that the most fundamental institution for trust is the property right.Trust, Economic performance, Information Repeated game, Transaction

The FairShares Model: a communitarian pluralist approach to constituting social enterprises?

Objectives - This paper is an exploration of the intellectual antecedents and philosophical assumptions that underpin the FairShares Model - a set of brand principles and Articles of Association published by the FairShares Association. It contributes to knowledge of the history of the social enterprise movement and its link to contemporary developments in mutual social enterprises. Prior Work - Previous contributions to the literature on social economy have drawn on communitarian philosophy to develop insights into mutual principles. This paper sets out a theoretical framework to evaluate whether the FairShares Model represents a communitarian pluralist discourse on the constitution of social enterprises. Approach - In January 2013, the FairShares Association published guidance on the FairShares 'brand' and 'model' (drawing on work presented at ISBE) to develop the concept of a ‘socialised’ enterprise . The framework developed from prior work is used to assess which aspects of communitarian philosophy are emphasized in both antecedent model rules (identified by the FairShares Association) as well as the FairShares Model (v1.2a). Results - The FairShares Model is theorised as a predominantly communitarian pluralist discourse with some ‘corporatist’ commitments. It represents an evolving set of guidelines for the ‘socialisation’ of enterprise by devising membership rights for two primary stakeholders (labour, users), and two secondary stakeholders (founders, investors). It is designed to reverse the centralising and accumulating tendencies of the private sector without returning assets to state control. It differs from philanthropic models by offering co-operative (par value) shares to three member classes: founders, labour and users, and (ordinary) ‘investor’ shares to all classes of member. Implications - The FairShares Model contributes to knowledge on the 'socialisation' of enterprise by identifying core characteristics of member-owned enterprises that deploy strategies for multi stakeholder ownership, governance and management. Value – By operationalising a communitarian pluralist discourse in the process of constituting a social enterprise, the FairShares Model offers an alternative to private sector models based on the subordination of labour and mutual models based on the primacy of a single stakeholder group

Uncertainty Avoidance and the Rate of Business Ownership Across 21 OECD Countries, 1976-2004

Persistent differences in the level of business ownership across countries have attracted the attention of scientific as well as political debate. Cultural as well as economic influences are assumed to play a role. This paper deals with the influence of cultural attitudes towards uncertainty on the rate of business ownership across 21 OECD countries. First, the concepts of uncertainty and risk are elaborated, as well as their relevance for entrepreneurship. An occupational choice model is introduced to underpin our reasoning at the macro-level. Second, regression analysis using pooled macro data for 1976, 1990 and 2004 and controlling for several economic variables, yields evidence that uncertainty avoidance is positively correlated with the prevalence of business ownership. According to our model, a restrictive climate of large organizations in high uncertainty avoidance countries pushes individuals striving for autonomy towards self-employment. Regressions for these three years separately show that in 2004, this positive correlation is no longer found, indicating that a compensating pull of entrepreneurship in countries with low uncertainty avoidance may have gained momentum in recent years. Third, an interaction term between uncertainty avoidance and GDP per capita in the pooled panel regressions shows that the historical negative relationship between GDP per capita and the level of business ownership is substantially weaker for countries with lower uncertainty avoidance. This suggests that rising opportunity costs of self-employment play a less important role in this cultural environment, or are being compensated by increasing entrepreneurial opportunities.Entrepreneurship;Business Ownership;Comparative Analysis of Economies;Cross Country Study;Cultural Economics;Uncertainty Avoidance