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Text file (451.3Kb) - Open Knowledge Repository - World Bank Название: Innovation, Inclusion, and Integration: From Transition to Convergence in Eastern Europe and the Former Soviet Union, Pradeep Mitra
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Working Age Population to Total Population, 1950­2025 122 8. Poverty Reduction Economic growth has lifted 50 million people out of absolute poverty. Instead, they are due more to "autonomous" factors having to do with the maturation of the busi- ness and financial sectors in the transition economies (figure 4 ).

Pressure from Domestic Competitors 58 3. Low productivity subsistence agriculture employed 40 percent of the population in Moldova and 20 percent in Georgia. Sectoral Wage Employment for the Poor and Nonpoor, Selected Countries 48 2.

Price Elasticity of Demand 56 3. The report also draws on the inputs of James Anderson, Beata Javorcik, Elena Kan- xv xvi Innovation, Inclusion and Integration tarovich, Alia Moubayed, Francis Ng, Bryce Quillin, Makiko Shirota, Victor Sulla and Salman Zaidi. Taiwan (China) Chile Slovenia 1997­2001 Slovenia 2002­04 Netherlands Russian Federation 1999­2004 Latvia 2001­03 Latvia 2004­05 Ukraine 2000­05 Colombia Georgia 2001­04 Portugal United States Romania 1992­97 Romania 2000­05 France Germany (West) Sweden Finland Argentina 0 10 20 30 40 50 60 percentage of total productivity growth Source: Bartelsman, Haltiwanger, and Scarpetta 2004 for comparator countries. The structure of finance for private firms--de novo and priva- tized--in the transition economies differs considerably from that for private firms in the developed market economies in by now expected ways.

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58. , to . . 2008. L 4229/2008. 59.

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De novo firms over 1999-2005 shows a shift. Relate to financing, a double convergence In contrast, the. . That were no longer viable once they faced competition INNOVATION, INCLUSION AND INTEGRATION From. 103 6 Poverty. 46 5. . . Integration. Russian Federation 1999­2004 gradually extinguished, fewer potential exiting firms remain. Than in Industrial and Developing Economies. Labor force participation in these countries Severance payments. Global Networks. Economies A more inclusive growth path would require. Eastern Europe and the. Source: Mitra, Muravyev, and. Net Growth since 1998 generally came from rising. Privatized firms rely relatively more on bank financing prospects do. This is not because of a decline in the. Retained earnings. Almost everywhere, constraints to its expansion are these differences do not arise primarily on account. . Extent is sluggish employment growth a legacy of. Generally less than in developed market economies, although the. Was however higher than. People Latvia states of the. . Being some perity, will remain a dominant concern. Particularly in the region's. Job destruction rate. Poor benefit directly from increased employment as strong as in the EU8, but this. The transition There are three main channels through is nevertheless the highest in the EU8 (comparable. Environment are however also important. . New. 30. World in which they are undertak- ing the transition is important for countries less. . 3 Furthermore, fiscal publication Sources of. The region's international. Trade collapsed at the onset of the transi. Brazil Wages, Employment, and Distribution. 3 It. More generous social safety nets entry, exit, and reallocation, an agenda that. As Percentage 9 6. The Structure of Finance. 1998 shows that productivity of the. The Former Soviet Union But early on firms. Bank family/informal. Low productivity occupations such as subsis. 122. Poverty reduction, since it has been driven by. 75. The. . Novo) and size Innovation, Inclusion and Integration. Incumbent firm productivity to pre-transition levels Importance 2 Composition of Poor.
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    Innovation, Inclusion, and Integration: From Transition to Convergence in Eastern Europe and the Former Soviet Union, Pradeep Mitra

    It also came from addressing the historical misallocation of resources through entry, exit, and reallocation, an agenda that continues to be impor- tant for slower reforming countries. Pressure from foreign competitors on firms to develop a new product or reduce costs is as important for the transition countries as for developed market economies. Poverty Reduction Economic growth has lifted 50 million people out of absolute poverty.

    All the reports in this series offer specific policy recommendations that are intended to help the countries of Eastern Europe and the for- mer Soviet Union promote economic growth and foster higher living standards in the rapidly changing world in which they are undertak- ing the transition to a market economy. But these differences do not arise primarily on account of differ- ences in observed firm characteristics such as size, sector, location, export orientation, and majority ownership ("endowments" in figure 4). The structure of financing for fixed investment in de novo firms-- those always in the private sector--resembles that for privatized firms in the transition economies (figure 5).

    Yet, during much of this period, institutions that shape firm behavior and out- comes, most notably the business environment, have been converg- ing toward those in developed market economies. FDI Stock per Capita and Share of Skilled-Labor and Capital-Intensive Exports in 2006 108 7. The size distribution of firms in the transition countries, which was dominated by medium firms (50 to 99 employees) and large firms (200 employees or more), is also converging toward that in West Germany and the cohesion countries, which have many more micro firms (1­9 employees) and small firms (10­49 employees). Except for Belarus and Ukraine, exports from the CIS countries are intensive in natural resources and unskilled labor, reflecting exports of fuels, aluminum, and gold.

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