Abstract: After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of “common clearing currency” along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from “Plan B” aimed at addressing member state domestic problems, to a “Plan A” of a better European monetary system.
Abstract: Over the past decades, globalization has led to a huge increase in the migration of workers, as well as students. This paper develops a simple two-step model that describes the decisions of an individual vis-à-vis education and migration, and presents a unified model, wherein the two migration decisions are combined into a single, unique model. This paper shows that under the plausible assumption that costs of migration differ over the human life cycle, the usual brain drain strategy is sub-optimal. With an increase in globalization, the brain drain strategy will be replaced by the strategy of migration of students.
Abstract: Cluster analysis is used to explore the performance of key macroeconomic variables in European countries that share the euro, from the inception of the currency in 2002 through to 2013. An original applied statistical approach searches for a pattern synthesis across a matrix of macroeconomic data to examine if there is evidence for country clusters and whether there is convergence of the cluster patterns over time. A number of different clusters appear and these change over time as the economies of the member states dynamically interact. This includes some new countries joining the currency during the period of examination. As found in previous research, Southern European countries tend to remain separate from other countries. The new methods used, however, add to an understanding of some differences between Southern European countries, in addition to replicating their broad similarities. Hypotheses are formed about the country clusters existing in 2002, 2006 and 2013, at key points in time of the euro integration process. These hypotheses are tested using the rigour of a bivariate analysis and the multivariate method of Qualitative Comparative Analysis (QCA). The results confirm the hypotheses of cluster memberships in all three periods. The confirmation analysis provides evidence about which variables are most influencing cluster memberships at each time point. In 2002 and 2006, differences between countries are influenced by their different Harmonised Index of Consumer Prices (HICP) and labour productivity scores. In 2013, after the crisis, there is a noticeable change. Long term interest rates and gross government debt become key determinants of differences, in addition to the continuing influence of labour productivity. The paper concludes that in the last decade the convergence of countries sharing the euro has been limited, by the joining of new countries and the circumstances of the global economic crisis. The financial crisis has driven divergences from pre-existing integration. Country convergence needs to be understood as a dynamic and multivariate concept. This is a significant development of convergence theory and is an addition to how the concept has been understood previously.
Abstract: In this paper, we present a formal framework of possible network formations among immigrants. After arriving in the new country, one of the new immigrant’s important decisions is with whom to maintain a link in the foreign country. We find that the behavior of the first two immigrants affects all those who come after them. We also find that in the long run, under specific conditions, the first immigrant will become the leader of the immigrant society. Over time, as the stock of immigrants in the host country increases, the investment in the link with the leader will increase as well.
Abstract: The purpose of this paper is to develop a scientific and methodical approach for determination of the comprehensive social responsibility indicator in this paper based on estimation of influence degree for the economical, ecological, social and labour, standard and legal components. There is allowance for determining of some level of enterprise social responsibility. In addition, there is a basis for development some ways of their increasing. The essence of the used approach is clotting of the individual indicators set to four intermediate indicators of the economic, ecological, social and labor, standard and legal components, which can be boiled down to the generalizing activity productivity indicator based on the matrix and range approach. An economical and mathematical model of the social responsibility influence level to the enterprise activity productivity level, which is based on enterprise propose harmonization with the participants’ interests, was being built. The paper proposes the mathematical model, which allows detecting a necessary time period for enterprise activity productivity ensuring due to social responsibility implementation.
Abstract: Given the shrinking proportion of agriculture output and the growing mobility of the labor force in China, how agricultural labor productivity develops has become an increasingly attractive topic for researchers and policy makers. This study aims to depict the development trajectory of agricultural labor productivity in China after its WTO entry. Based on a balanced panel data containing 287 Chinese prefectures from 2000 to 2013, this study applies the Latent Growth Curve Model (LGCM) and finds that the agricultural labor productivity follows a piecewise growth path with two breaking points in the years of 2004 and 2009. This may stem from some exogenous stimulus, such as supporting policies launched in the breaking years. Further statistical analysis shows an expanding gap of agricultural labor productivity among different Chinese prefectures.