Here you can see the contents of the special issue of Panoeconomicus - 2011-5
Below you can find the articles associated with the special release of the journal.
Jorge Uxó, Jesús Paúl & Eladio Febrero:
Current Account Imbalances in the Monetary Union and the Great Recession: Causes and Policies
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 571-592, doi: 10.2298/PAN1105571U
[Abstract] [fulltext]
Article Abstract:
Current account imbalances within the eurozone are at the roots of
its economic crisis. We argue that, though relevant, emphasis should shift from
competitiveness to differential rates of growth of domestic demand as its chief
explanatory factor. Euro core countries have experienced a shortage of domestic
demand, with wage restraint playing a key role. This has led them to experience
a current account surplus, which could not be understood independently
of a buoyant domestic demand in the peripheral countries, funded with private
debt. As a byproduct of that strong demand, the periphery suffered from wage
inflation and a loss of competitiveness. This dual growth pattern is unsustainable
as indebtedness cannot go on without any limit. Neither wage cuts nor
fiscal austerity in the periphery will help to solve this mess: although trade
balance would be restored, it would lead to a negative shock in aggregate
demand, threatening their ability to settle debts at due dates.
Casimir Dadak:
Political Economy of the Euro Area Crisis
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 593-604, doi: 10.2298/PAN1105593D
[Abstract] [fulltext]
Article Abstract:
For many experts the true motivation behind the introduction of a
single currency in Europe is political rather than economic. This view is based
on the fact that the euro area does not constitute an optimal currency area and,
therefore, the costs of monetary integration are likely to outweigh the benefits.
In particular, the loss of control over monetary policy and exchange rates make
overcoming asymmetric demand-side shocks very painful. Moreover, the monetary
union lacks a common fiscal authority that could help in smoothing out
business cycles. The present crisis exposed these vulnerabilities and, unfortunately,
so far economic policies adopted in the region have failed to rectify
these shortcomings.
João Rebelo Barbosa & Rui Henrique Alves:
The Euro Area Ten Years after Its Creation: (Divergent) Competitiveness and the Optimum Currency Area Theory
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 605-629, doi: 10.2298/PAN1105605R
[Abstract] [fulltext]
Article Abstract:
As the euro is on its second decade, the European sovereign debt
crisis and the ever more evident disparities in competitiveness among member
states are prompting many to question whether monetary union is bringing
more benefits than costs. The optimum currency area (OCA) theory provides a
framework with several criteria for such analysis. In such context, we start by a
descriptive analysis of the first twelve euro countries under six criteria, leading
to a mixed conclusion on whether the EMU is closer or farther to fulfil them.
Then we assess the impact of five OCA criteria on countries’ relative competitiveness.
Differences in the growth of unit labour costs, the dissimilarity of trade
and the differences in output growth were found to be the most significant. This
way, we identify some causes of the divergent competitiveness between some
EMU countries that contributed to weaker economic growth in some of them.
Abel L. Costa Fernandes & Paulo R. Mota:
The Roots of the Eurozone Sovereign Debt Crisis: PIGS vs Non-PIGS
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 631-649, doi: 10.2298/PAN1105631F
[Abstract] [fulltext]
Article Abstract:
The main purposes of this paper are twofold: a) to determine if
there are significant differences on the determinants of public expenditures and
tax revenues between the so-called PIGS and the remaining Eurozone member
states; b) to uncover possible explanations for the different situations in
which these countries find themselves nowadays. The paper focus on the
effects of the cyclical state of the economy on those fiscal variables, and on the
actual adherence to the fiscal rules imposed by the Maastricht Treaty. Based
on the estimated results we conclude that the anti-cyclical reaction with respect
to the unemployment rate is much stronger among non-PIGS. We also find that
fiscal rules have, in general, not been followed by those two groups of countries.
Moreover, PIGS, in spite of their economic frailties, have tried to emulate
the fiscal behavior of their more prosperous Eurozone partners instead of executing
more rigorous policies.
Kosta Josifidis, John Hall, Novica Supić & Olgica Ivančev:
European Welfare Regimes: Political Orientations versus Poverty
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 651-674, doi: 10.2298/PAN1105651Ј
[Abstract] [fulltext]
Article Abstract:
This inquiry analyzes how political orientations shape welfare states
and labour market institutions when seeking to reduce poverty. In order to
identify effects of these two key variables, we conduct a panel regression analysis
that includes two poverty measures: poverty rates before and after social
spending. This inquiry considers 14 EU countries, and in the period from 1995
to 2008, which are grouped according to welfare state regimes. We consider
Social Democratic, Corporatist, Mediterranean and Liberal welfare state regimes.
Panel regression results indicate that political orientation engenders no
significant statistically measurable effects on poverty rates before social spending.
Effects register, however, as significant when considering poverty rates
after social spending. With respect to the first set of results, we advance two
key explanations. First, we note a longer period of time is necessary in order to
observe actual effects of political orientation on market generated poverty.
Second, political parties with their respective programs do not register as influential
enough to solve social problems related to income distribution when
taken alone. Influences register as indirect and are expressed through changes
in employment rates and social spending. The second set of results support the
hypothesis that a selected political regime does indeed contribute to poverty
reduction. In sum, political orientation and political regime does indeed affect
poverty through welfare state institutions, as well as through labour market
institutions.
Carlos A. Carrasco & Jesús Ferreiro:
Inflation Targeting and Economic Performance: The Case of Mexico
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 675-692, doi: 10.2298/PAN1105675C
[Abstract] [fulltext]
Article Abstract:
In the paper we analyze the impact of Inflation Targeting (IT) in
Mexico. The objective is to evaluate the impact of the implementation of inflation
targeting and full-fledged inflation targeting (FFIT) on the level and the
variability of the inflation and the output in the Mexican economy. We conclude
that inflation rates had been reduced in Mexico before the introduction of IT
and FFIT. In our opinion, the structural reforms, including the Banxico reforms,
are the main determinants of the decrease in inflation and its variability. The
main impact of IT would have been the lock-in of inflation expectations around
a low rate of inflation.
André Moreira Cunha, Daniela Magalhães Prates & Fernando Ferrari- Filho:
Brazil Responses to the International Financial Crisis: A Successful Example of Keynesian Policies?
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 693-714, doi: 10.2298/PAN1105693М
[Abstract] [fulltext]
Article Abstract:
The paper analyses the economic policy responses of the Brazilian
government to the international financial crisis. In doing so, the paper aims to
answer a specific question: Can the economic policies implemented in 2008-09
be identified as Keynesian economic policies? It concludes that, despite the
fact the Brazilian economic policies response to the international financial crisis
seems remember Keynesian economic policies, it is not possible to argue that
the recovery of the Brazilian economy can be considered a Keynesian showcase.
Carlos Rodríguez & Ricardo Bustillo:
A Critical Revision of the Empirical Literature on Chinese Outward Investment: A New Proposal
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 715-733, doi: 10.2298/PAN1105715R
[Abstract] [fulltext]
Article Abstract:
Research on China’s role in the globalisation of economic activity
focuses mainly on its involvement in trade and on its competitiveness as a
manufacturing location for foreign investors. However, since the mid-1990s
China’s outward foreign direct investment (OFDI) has become an important
part of its integration into the global economy. This dimension is poorly understood,
and few empirical studies about the drivers behind Chinese OFDI have
been published thus far. After reviewing critically the empirical literature, which
provides ambiguous results about the explanatory power of some of the large
list of determinants put forward, we aim to provide a more accurate description
of the motives behind Chinese OFDI. Using a panel data approach for the
period 1995 to 2009 and for a large host country sample, we identify some key
drivers. We find that host market size, natural resources and FDI openness are
of paramount relevance. However, the asset seeking hypothesis is not confirmed.
Angela Cipollone, Marcella Corsi & Carlo D’Ippoliti:
Knowledge and Job Opportunities in a Gender Perspective: Insights from Italy
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 735-757, doi: 10.2298/PAN1105735C
[Abstract] [fulltext]
Article Abstract:
The paper proposes an enlargement of the traditional notion of
human capital, by conceptualising knowledge in a comprehensive and multidimensional
way. In our empirical approach, knowledge encompasses several
formal and informal skills, to complement the mainstream view narrowly concerned
with education and on-the-job training. Our results for Italy point out that
despite much rhetoric about the reduction (or even the reversal) of gender gaps
in education, women often lack the main skills and competencies that can
profitably be deployed in the labour market. Unsurprisingly, in Italy women’s
accumulation of labour market experience is mostly hindered by unpaid
housework burdens. However, when adopting an extensive definition of knowledge
these activities may be regarded as a source of relevant knowledge. Yet,
they do not seem to be positively valued by the market, either in terms of employability
or in terms of wages, thus calling for a serious rethinking of the role
of knowledge in shaping men’s and women’s economic opportunities.
Patricia Peinado & Felipe Serrano:
A Dynamic Analysis of the Effect of Social Security Reform on Spanish Widow Pensioners
Panoeconomicus 2011 Volume 58, Issue 5, Pages: 759-771, doi: 10.2298/PAN1105759P
[Abstract] [fulltext]
Article Abstract:
This paper shows the dynamic effects of the reform of the Spanish
social security pension system on the pensions received by one of the most
vulnerable groups of the population, namely, widows. We undertake a duration
analysis to account for the effects of reform over time. We study the effects on
the widows’ overall financial welfare in terms of the evolution of their risk of
poverty. We show that the combined effects of the measures to be implemented
will have a positive impact; that is to say, the risk of poverty diminishes
with respect to the current financial situation of the widows. However, the risk
of poverty increases as the pensioners get older.