Vertical Intra-industry Trade between EU and Accession Countries

The paper analyses vertical intra-industry trade between EU and Accession countries, and concentrates on two country-specific determinants: Differences in personal income distribution and in technology. Both determinants have a strong link to national policies and to cross-border investment flows. In contrast to most other studies, income distribution is not seen as time-invariant variable, but as changing over time. What is new is also that differences in technology are tested in comparison with cost advantages from capital/labour ratios. The study applies panel estimation techniques with GLS. Results show country-pair fixed effects to be of high relevance for explaining vertical intraindustry trade. In addition, bilateral differences in personal income distribution and their changes are positive related to vertical intra-industry trade in this special regional integration framework; hence, distributional effects of policies matter. Also, technology differences turn out to be positively correlated with vertical intra-industry trade. However, the cost variable (here: relative GDP per capita) shows no clear picture, particularly not in combination with the technology variable.intra-industry trade, transition countries

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.twin deficits, import propensity, transition countries

The Extreme Risk Problem for Monetary Policies of the Euro-Candidates

We argue that monetary policies in euro-candidate countries should also aim at mitigating excessive instability of the key target and instrument variables of monetary policy during turbulent market periods. Our empirical tests show a significant degree of leptokurtosis, thus prevalence of tail-risks, in the conditional volatility series of such variables in the euro-candidate countries. Their central banks will be well-advised to use both standard and unorthodox (discretionary) tools of monetary policy to mitigate such extreme risks while steering their economies out of the crisis and through the euroconvergence process. Such policies provide flexibility that is not embedded in the Taylor-type instrument rules, or in the Maastricht convergence criteria.monetary policy rules, tail-risks, convergence to the Euro, global financial crisis, equity market risk, interest rate risk, exchange rate risk

The unemployment-growth relationship in transition countries

Does the disappointingly high unemployment in Central and East European countries reflect non-completed adjustment to institutional shocks from transition to a market economy, or is it the result of high labour market rigidities, or rather a syndrome of too weak aggregate demand and output? In the case of transitional causes, unemployment is expected to decline over time. Otherwise, it would pose a challenge to the European Union, particular in case of accession countries, for it jeopardizes the ambitious integration plans of, and may trigger excessive migration to the Union. In order to find out which hypothesis holds 15 years after transition has started, we analyze the unemploymentgrowth dynamics in the eight new member countries from Central-Eastern Europe. The study is based on country and panel regressions with instrument variables (TSLS). The results suggest to declare the transition of labour markets as completed; unemployment responds to output and not to a changing institutional environment for job creation. The regression coefficients report a high trend rate of productivity and a high unemployment intensity of output growth since 1998. The conclusion is that labour market rigidities do not to play an important role in explaining high unemployment rates. Rather, GDP growth is dominated by productivity progress, while the employment relevant component of aggregate demand is too low to reduce substantially the high level of unemployment.unemployment, Okun’s law, transition

The Character of Dislocations in LiCoO2

Dislocations in LiCoO2 were observed by transmission electron microscopy, and their Burgers vectors were determined by analysis of diffraction contrast in tilting experiments. The configuration of all dislocations indicates that they are glissile, and dislocation configurations were found that are indicative of active slip planes. Perfect dislocations of a/3 type Burgers vectors were observed on {0001} habit planes. These perfect dislocations sometimes dissociate into Shockley partial dislocations with a/3 type Burgers vectors. Glide of these partial dislocations can account for the sequence of crystal structures O3, H1-3, O1 that occur with the delithiation of LiCoO2. The presence of glissile dislocations also suggests possible damage mechanisms during cycling

Self-organized carbon nanostrips with a new LiC10 structure derived from carbon nanotubes

Single walled carbon nanotubes (SWNTs) were reacted with molten lithium at 220 °C for two weeks. This induced dramatic changes in their structure as shown by x-ray and electron diffractometry and Raman spectroscopy. A significant fraction of the initial SWNTs transformed into flat nanostrips having intercalated lithium in between them. Lithium forms a superlattice commensurate with that of the graphitelike nanostrips with [square root of]7×[square root of]3 in-plane distribution. This new structure corresponds to the LiC10 composition

Transmission Electron Microscope Studies of LiNi1/3Mn1/3Co1/3O2 before and after Long-Term Aging at 70°C

LiNi1/3Mn1/3Co1/3O2 is a potential cathode material for high-power applications in lithium-ion batteries. While cation ordering on a sqrt(3)×sqrt(3) R30° in-plane superlattice was proposed for the layered structure, the experimental data do not fully support this model. Here, we present a systematic electron diffraction study of LiNi1/3Mn1/3Co1/3O2 in the pristine state and after aging. Our results show that a mixture of different phases in the starting material transforms to the O3-type phase and the cubic spinel phase after aging, accompanied by an increase in the percentage of polycrystals

Is the European Monetary Union an Endogenous Currency Area? The Example of the Labor Markets

Our study tries to find out whether wage dynamics between Euro member countries became more synchronized through the adoption of the common currency. We calculate bivarate correlation coefficients of wage and wage cost dynamics and run a model of endogenously induced changes of coefficients, which are explained by other variables being also endogenous: trade intensity, sectoral specialization, financial integration. We used a panel data structure to allow for cross-section weights for country-pair observations. We use instrumental variable regressions in order to disentangle exogenous from endogenous influences. We applied these techniques to real and nominal wage dynamics and to dynamics of unit labor costs. We found evidence for persistent asymmetries in nominal wage formation despite a single currency and monetary policy, responsible for diverging unit labor costs and for emerging trade imbalances among the EMU member countries.