Old Capital vs. New Investment in Post-Soviet Economies: Conceptual Issues and Estimates

Izyumov, Alexei; Vahaly, John

doi:10.1057/palgrave.ces.8100237

Cited by 25 publications

(31 citation statements)

References 28 publications

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“…Particularly, there has been no study which analyses Russian farm investment patterns in a dynamic setting 2 . This is not surprising given the limited availability of data and the ongoing debates about the reliability of data on capital in post‐soviet economies (Bezlepkina, 2004; Lissitsa and Odening, 2005; Izyumov and Vahaly, 2008).…”

Section: Introductionmentioning

confidence: 99%

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

Bokusheva¹,

Bezlepkina²

2009

J Agricultural Economics

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This paper analyses the investment behaviour of Russian farms during the period of economic stabilisation that followed Russia's financial crisis of 1998, and is the first to apply the error-correction investment model to describe farms' investment behaviour in the transitional context. Additionally, the paper employs the error-correction and the adjustment-cost model to test for differences in the investment behaviour between various farm categories. The results show that in general Russian farms exhibited an error-correcting behaviour in the period under investigation. From 1999 to 2005 the output-capital gap was closed by an average rate of 10% per year. Estimates of the adjustment-cost model show that Russian farm investments are very sensitive to the sales-capital ratio, suggesting that Russian farms exhibit increasing returns to scale and positive expectations about future revenues. Yet, such farm characteristics as ownership structure, access to input markets and also regional specifics were found to be decisive for farm investment not only in the short but long term too. Finally, the results show that the adjustment-cost model is adequate for the evaluation of differences in short-term investment behaviour, whereas it is noticeably less powerful for investigating differences in the farms' long-term investment behaviour. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

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Section: Introductionmentioning

confidence: 99%

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

Bokusheva¹,

Bezlepkina²

2009

J Agricultural Economics

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“…Empirical data on these indicators range from cross-sectional (cross country) measures like legal origin, judicial e¢ ciency as included in the LLSV index (La Porta, Lopez-de-Silanes, Shleifer and Vishny 1997, 1998, 1999) to time-series measures as provided by the World Bank. Since our focus is to trace the development of BRIC policies over time, we focus on six time-series measures considered as conducive to economic development (de…nitions and explanations are in Appendix D) <Figure 7c about here> While it is clear that not all the indices show positive comovements with the time series of the estimated wedges, the two exceptions would be government e¤ectiveness 30 Bollard, Klenow and Sharma (2012) also …nd that FDI liberalization had little e¤ect on the TFP growth in Indian manufacturing …rms during the 1993 2007 period. 31 The growth trends in Brazil, Russia, India and China Shown in Table 3 are 1:0%, 1:8%, 4:1% and 7:4% respectively.…”

Section: <Figure 7b About Here>mentioning

confidence: 99%

“…An interesting question would be why …nancial development might have impacted growth in e¢ ciency in Brazil and Russia to a greater extent than in India and China, which particularly becomes apparent after 2004 30 . One important di¤erence in these economies is the development stage that they were at when the reforms commenced.…”

Section: <Figure 7b About Here>mentioning

confidence: 99%

Business Cycle Accounting of the Bric Economies

Chakraborty

Otsu

2013

SSRN Journal

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What are the economic mechanisms that account for sudden growth spurts? Are these mechanisms similar across episodes? Focusing on the economic resurgence of the BRICs over the last decade, we employ the Business Cycle Accounting methodology developed by Chari, Kehoe and McGrattan (2007) to address these questions. Our results highlight that while e¢ ciency wedges do contribute in a large part to growth, especially in Brazil and Russia, there is an increasing importance of investment wedge especially in the late 2000s, noted in China and India. The results are typically related to the stages of development with Brazil and Russia coming o¤ a crisis to grow in the 2000s, while India and China were already on a stable growth path. Our conclusions are robust to alternative methodological extensions where we allow shocks to the trend component of e¢ ciency as opposed to traditional shocks to the cyclical component, as well as to standard modi…cations where we allow for investment adjustment costs. Relating improvements in wedges to institutional and …nancial reforms, we …nd that …nancial development and improvements in effective governance in BRICs are consistent with improvements in investment and e¢ ciency wedges that led to growth. JEL Codes: E32, E33Keywords: BRIC, business cycle accounting, e¢ ciency, market frictions, trend shocks, investment adjustment costs We thank Jagjit Chadha and Miguel Leon-Ledesma for helpful comments and Tetsuaki Takano for research assistance.

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“…Kutan, Yigit [25]; Kutan, Yigit [26]; Matkowski, Próchniak [31]; Vojinovic, Oplotnik [39]; Gepper, Stephan [14]; Monastiriotis et al [33]; Izumov, Vahaly [21]; Kushnirsky [24]). …”

Section: Literature Reviewmentioning

confidence: 99%

Causes of the Convergence Slowdown in the Countries of Central and Eastern Europe, 2008-2014

Bieńkowski¹,

Grabowski²

2017

aeb

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, vis-à-vis the European Union (EU) as a whole, individual EU members, and OECD countries (non-EU members). The analyses cover the period from 1995 to present. Results of testing beta-convergence indicate that in the period 2008-2014 the countries of the CEEC-8 group converged to Mediterranean countries but did not converge to rich countries of the European Union or non-EU OECD countries. We estimate parameters of the dynamic panel model to identify the causes of the convergence slowdown of CEECs. According to the results of the estimation, the low level of innovation in the countries under consideration was the main cause of both the slower TFP growth and the convergence slowdown.

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Old Capital vs. New Investment in Post-Soviet Economies: Conceptual Issues and Estimates

Cited by 25 publications

References 28 publications

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

Exploring Farm Investment Behaviour in Transition: The Case of Russian Agriculture

Business Cycle Accounting of the Bric Economies

Causes of the Convergence Slowdown in the Countries of Central and Eastern Europe, 2008-2014

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