Download or read book Household Savings in Transition Economies written by and published by World Bank Publications. This book was released on with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private Savings in Transition Economies written by Abdur R. Chowdhury and published by . This book was released on 2003 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Household Savings in Transition Economies written by Cevdet Denizer and published by . This book was released on 2000 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Bulgaria, Hungary, and Poland, the higher the relative household income is, the higher the savings rate is. But, surprisingly, savings rates appear to be unaffected by either sector of employment (public or Private) or form of employment. Savings rates are significantly higher for households that do not own their own homes or that own few of the standard consumer durables - possibly because, with no retail credit or mortgage markets, households must save to purchase houses and durables.

Download or read book PRIVATE SAVINGS IN TRANSITION ECONOMICS ARE THERE TERMS OF TRADE SHOCKS written by Abdur R. Chowdhury and published by . This book was released on 2003 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exploring the Political Economy of Diverging Private Savings Patterns in Selected Transition Economies written by Botagoz Sabirovna Kalkenova and published by . This book was released on 2011 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis has investigated the differences of private savings determinants in fifteen selected former Soviet Union countries: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Lithuania, Latvia, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. On the surface, savings rates in resource rich countries with autocratic political regimes tend to be higher than those in countries with more liberal, democratic political cultures. For that reason, this analysis was guided by the idea that diverging private savings rates cannot be solely explained by differing socio-economic fundamentals, but rather can be attributed to the nature of the political regimes shaping socio-economic fundamentals. In this regard a critical assumption underlying the line of argument was that different political regimes provide people with different opportunities and incentives to save. Taking this perspective, this thesis tried to extend on the existing literature on savings rates in transition economies, which has primarily viewed savings decisions as a function of socio-economic factors (e.g. GDP per capita, annual GDP growth). To analyze the empirical relationship between private savings and the quality of political institutions and regime types in the selected fifteen post-soviet countries, a two-way fixed effects panel model covering the period between 1998 and 2008 was applied. The data for this study has been obtained from different sources such as the World Bank, the International Monetary Fund, the Polity IV Project, the European Bank for Reconstruction and Development, and British Petroleum. Research findings indicate that financial and capital account liberalizations may increase domestic activity with a positive effect on overall economic income, and thus private savings, but it also can be a driver of short-term and non-sustainable financial acceleration. Striking a balance on this double edged sword of financial liberalization depends rather on the quality of market governing institutions, i.e. regulatory quality, than political regime type. Substantially lower and decreasing private savings rates in democratic countries of the former USSR can be attributed to popular pressures for immediate consumption. This has been primarily financed by a rapid influx of foreign bank capital. In contrast, well-endowed countries characterized by more autocratic forms of governance seem to have relied more on repressive financial governance and resource revenues to safe-guard political and economic stability. From a public policy perspective, several immediate implications arise. It would seem a natural choice for resource poor economies to implement taxes aimed at cooling an excessive expansion of consumption credit and thereby to direct capital inflows toward more productive ends in the investment sector would present a natural choice. In addition, raising social security contributions may slow down households' consumption (in this case, household disposable income will be lower), although it may also undermine households' ability to save. For resource rich economies, research findings indicate that these economies could reduce forced private savings and increase current consumption levels, spurring domestic demand and overall economic welfare for their citizens. However, as this study has shown, financial liberalization can come at the expense of deteriorating domestic private savings rates, if not accompanied by substantial macroeconomic and regulatory reform.

Download or read book Crisis Stabilization and Growth written by Patrick J. Conway and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 366 pages. Available in PDF, EPUB and Kindle. Book excerpt: List of Figures. List of Tables. List of Symbols. List of Country Acronyms. Foreword and Acknowledgements. I. The Transition Economies. II. Saving, by Plan and in the Market. III. Considering the Competing Explanations of Transition in Inflation and Economic Growth. IV. The Inflationary Explosion Following Price Liberalization. V. The Crisis Years. VI. Directed Credits and Financial Repression in Belarus. VII. Stabilization in Transition Economies. VIII. Ukraine in the Stabilization Phase. IX. Georgia: from Crisis to Stabilization .. and Then? X. The Fallout of the Russian Financial C.

Download or read book Saving in Transition Economies The Summary Report written by Patrick Conway and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: September 1995 Savings in transition economies have declined since independence, but something else has happened, too: Financial assets have shifted from bank deposits to alternative financial instruments, including foreign currency, trust company shares, and private loans. Government are not typically prepared to borrow savings from these new instruments since they are denominated in foreign currency or are offered only at positive real interest rates. That attitude must change if governments are to make needed investments in infrastructure and to avoid creating inflationary credit. The stimulation of private saving is essential to both stabilization and structural adjustment in the transition economies. Private saving in these countries has declined sharply since independence, and this decline has been a factor in the onset of extreme inflation because governments have resorted to an inflation tax to finance deficit spending. Conway examines evidence on spending in Belarus, Georgia, Kazakhstan, and Ukraine. He examines decisions about whether to save, and in which specific financial or real instruments. He summarizes the evolution of financial sectors in these countries to provide a history of the success or failure of financial institutions to intermediate between private savers and the government as borrower. He concludes that private saving has indeed declined since independence, but less than is indicated by banking-system statistics. Concurrent with this downturn has been a shifting of financial assets from bank deposits to alternative financial instruments, including foreign currency, trust company shares, and private loans. The financial sector has reacted slowly to this change, but the most successful commercial banks have recognized the change in demand for financial instruments and have accommodated the savers. The state commercial banks -- especially the successor to the Soviet Saving Bank -- have been slow to adjust to the new environment. As a result, the near-monopoly that bank once held on deposits has been rapidly eroded. Government methods for mobilizing funds must change, contends Conway. Governments are not typically prepared to borrow savings from these new instruments, since they are denominated in foreign currency or are offered only at positive real interest rates. That attitude must change if governments are to make needed investments in infrastructure and to avoid creating inflationary credit. This paper --a product of the Country Operations Division, Europe and Central Asia, Country Department IV -- is part of a larger effort in the region to analyze credit markets and savings in transition economies. The study was funded by the Bank's Research Support Budget under the research project Credit Markets and Savings Mobilization in Transition Economies (RPO 679-07).

Download or read book Do Asymmetric Terms of Trade Shocks Affect Private Savings in a Transition Economy written by Abdur Chowdhury and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether terms of trade shocks have an asymmetric effect on private savings in transition economies. A simple three-period framework is developed to show that, in the presence of binding credit constraints in bad states of nature, savings rates can be sensitive to favorable movements in the permanent component of the terms of trade. This result contrasts with the prediction of the conventional consumption-smoothing model. Empirical analysis with a dynamic panel model further confirms that while favorable movements in the permanent component of the terms of trade have an asymmetric effect on private savings, the magnitude of the effect is relatively small. The results are robust for alternative estimators, determinants, and country groupings.

Download or read book Restructuring and Capital Accumulation in Transition Economies written by Micael Castanheira and published by . This book was released on 1996 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private Savings Determinants in Former Soviet Union Countries written by Botagoz Kalkenova and published by LAP Lambert Academic Publishing. This book was released on 2011-09 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inheriting similar political and economic institutions, the dissolution of the Soviet Union can be considered as a natural experiment that allows the tracing of the influence of political institutions on economic results. This book will investigate the difference of the private saving rate determinants in fifteen selected former USSR countries. On the surface, savings rates in resource rich countries with autocratic political regimes tend to be higher than those in economies with more liberal political cultures. For that reason, the analysis is guided by the idea that diverging private savings rates cannot be solely explained by differing socio-economic fundamentals, but can be rather attributed to the nature of political regimes shaping socio-economic fundamentals and thus private savings decisions. In this regard, a critical assumption, underlying the line of argument, is that different political regimes provide people with different opportunities and incentives to save. Taking this perspective, this book tries to extend on the existing literature on savings rates in transition economies, which has primarily viewed savings decisions as a function of socio-economic factors.

Download or read book Saving in Transition Economies written by Patrick J. Conway and published by . This book was released on 1995 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private Savings and Transition written by Sabine Stephan and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the collapse in the early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. But is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. The main results are: saving rates are rather persistent; income growth increases saving, whereas public saving crowds out private saving. There is evidence that in both country groups domestic saving and foreign capital operate at least partly as substitutes, which is an indicator for international financial integration. The long-run effects of income growth and public saving are larger in the EU-15 than in the EU-accession countries.

Download or read book The Savings Collapse During the Transition in Eastern Europe written by Cevdet Denizer and published by . This book was released on 2016 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: The transition economies of Eastern Europe almost uniformly experienced a precipitous plunge in savings rates - from levels above 30 percent of GDP to levels about half that - early in the transition, before rebounding slightly. Did savings collapse because involuntary savings were eliminated (when goods became available for purchase) or because of a change in equilibrium savings, reflecting the changed economic circumstances and long-term prospects?Denizer and Wolf assess the presence and extent of involuntary savings by comparing the predicted savings rates of market economies with those of the pre-transition economies. On balance, predicted savings rates fell short of actual savings rates, especially for the former Soviet Union and the Baltics - providing some support for the notion of excessive pre-transition savings.Comparing the savings behavior of market economies and transition economies, they found substantial similarities, except for a negative link between savings and GDP growth. As the fastest-growing transition economies are at the bottom of the adjustment J-curve, the finding is consistent with consumption smoothing.Finally, they explored whether differences in the extent of economic liberalization affected savings rates in the cross-section of transition economies. They found that liberalization is associated with lower savings, with a one-year lag. To the extent that liberalization is perceived as an indicator of likely future growth, this behavior is consistent with smoothing in the face of a J-curve change in output.This paper - a product of the Poverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region - is part of a larger effort in the region to understand the determinants of savings during the transition to a market economy. Cevdet Denizer may be contacted at [email protected].

Download or read book Do Asymmetric Terms of Trade Shocks Affect Private Savings in a Transition Economy written by Abdur R. Chowdhury and published by . This book was released on 2003 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether terms of trade shocks have an asymmetric effect on private savings in transition economies. A simple three-period framework is developed to show that, in the presence of binding credit constraints in bad states of nature, savings rates can be sensitive to favorable movements in the permanent component of the terms of trade. This result contrasts with the prediction of the conventional consumption-smoothing model. Empirical analysis with a dynamic panel model further confirms that while favorable movements in the permanent component of the terms of trade have an asymmetric effect on private savings, the magnitude of the effect is relatively small. The results are robust for alternative estimators, determinants, and country groupings. Published in: Comparative Economic Studies vol. 46 no. 4 (2004) pp. 487-514, ISSN 0888-7233 (Private Savings in Transition Economies: Are there Terms of Trade Shocks?).

Download or read book Private Public and Foreign Savings written by Malgorzata Jakubiak and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Saving, Investment, Financial Integration and FDI in Central Europe: Evidence on domestic savings and investments in industrialised countries indicates that capital markets are not perfectly integrated. On the contrary, various measures of financial integration prove that capital has become highly mobile. This paper presents theoretical explanations for this fact, data on the European Union "Northern" and "Southern" states and estimations of the saving-investment relation for some emerging Central and Eastern European countries (CEECs). It was found that domestic investments in Poland, Hungary, Estonia, and the Czech Republic have been partly financed by FDI inflows in recent years. A similar situation was taking place in the so-called "Southern" Europe in the 1980s. There has been a geographical shift in FDI inflows from Southern EU countries to more developed CEECs in the mid-1990s. It seems possible that fast growing FDI inflows in Poland and in Estonia could hamper the future growth of saving rate. The Interactions between Private Savings and Governments Budget Deficits: This paper attempts to assess the influence of government budget deficit on private saving rate, with special emphasis on Poland and other transition economies. The theoretical predictions concerning the direct impact of budget actions on private savings are given by the Ricardian-Barro Equivalence Theorem and the Neo-classical view. Existing empirical research on the correctness of the Ricardian versus the Classical view is largely inconclusive. A simple empirical analysis for Poland indicates, that in years 1991-1997 there was no strong Ricardian-type relationship between the government net lending and private savings. There is however a possibility of the existence of a weak form of Ricardian Equivalence in Poland, when one assumes, that the social security is treated differently than the rest of government net lending, and therefore social security balance is excluded form government budget balance. However, much longer time series is needed to draw any strong conclusions. Influence of Interest Rates on Credits and Deposits of Non-financial Sector in Poland: The main purpose of this paper is to analyse factors that influence the magnitude of credits and deposits held by households and enterprises. The analysis is performed for the period 1994-1998 using quarterly time-series data. The magnitude of credits and deposits was initially supposed to depend on GDP, real interest rate, real exchange rate, and M2/H ratio (explaining the development of banking sector in Poland). Authors conclude that the growth rate of zloty denominated deposits held both by households and by enterprises is positively correlated with real interest rate, and that this relation is stronger in the case of households. It can be said that the development of banking sector in Poland influences the growth of credits and deposits held by households, but it does not affect the behaviour of firms. It seems that GDP influences the growth rate of deposits, while it has no effect on the demand for credits in Poland. A change in the real interest rate matters only for corporate actions.

Download or read book Do assymetric terms of trade shocks affect private savings in a transition economy written by Abdur R. Chowdhury and published by . This book was released on 2003 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Achieving Rapid Growth in the Transition Economies of Central Europe written by Jeffrey Sachs and published by Center for Social & Economic Research. This book was released on 1996 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discusses the sources of rapid growth in the very fast growing economies in Asia, and the ways in which Central Europe could emulate keys aspects of their economic policies in order to raise their growth rates.