Alexandr Akimov

Are Shared Services a Panacea for Australian Local Government? A Critical Note on Australian and International Empirical Evidence

Australian local government policy has undergone a major change in direction as policyelites have recognized the ominous dimensions of the problem of local council financial unsustainability and thereby realized that recent structural reform programs have done little to ameliorate this problem. As a consequence, attention has now moved away from forced amalgamation to focus on shared local services as an alternative means of achieving greater operational efficiency. However, an unfortunate feature of the present debate is that, with a few notable exceptions, very little effort has been expended on examining existing Australian and international empirical evidence on the performance of shared local service models. The present paper seeks to remedy this neglect by critically evaluating available Australian and international empirical literature on the outcomes of shared local service arrangements.

Financial development and economic growth: evidence from transition economies

The hypothesis that financial development promotes economic growth enjoys significant support from empirical evidence drawn from both developed and developing countries alike. However, analogous empirical evidence is still lacking for economies in transition. This article analyses the effects of financial intermediation on the growth of real GDP by employing data for 27 countries over the period of 1989 to 2004. Using an endogenous growth model and panel data analysis techniques, we estimate regressions with various proxies for financial sector development. We find that in contrast to some recent empirical work, there is a robust positive link between financial development and economic growth in transition economies.

A Typology of Shared Service Provision in Australian Local Government

Abstract Disappointment with the results of forced amalgamation programs across almost all Australian local government jurisdictions has created great interest in shared service models as an alternative method of improving the operational efficiency of local councils, while at the same time preserving local democracy and local autonomy. While an embryonic literature on shared service provision in the Australian municipal milieu does exist, much remains to be done. This paper seeks to contribute to this nascent literature in two main ways: (a) to locate shared services in local government within broader global trends and theoretical disputations on devolution and local economic development, highlighting the importance of political geography in these debates; and (b) in the light of this complexity and ambiguity, develop a new typology of local government shared service provision to inform public policy making on real-world problems in Australian local government.

One Size Does Not Fit All: The Special Case of Remote Small Local Councils in Outback Queensland

Abstract The analysis of Australian local government reform almost invariably focuses on systemic changes that can be wrought by the application of various policy instruments, like the structural reform of the scale of local councils or changes to the enabling legislation governing local government. Scholars typically use this approach and differentiate the efficacy of reform measures according to classifications of council by generic type. While this approach has been exceedingly fruitful in the past, this paper argues that small, remote and isolated Australian local authorities are sui generis in the sense that they are not amenable to standard reform policies because their unique circumstances and special characteristics. The paper considers the case of local shires in the Central West outback region of Queensland that comprise the Remote Areas Planning and Development Board (RAPAD) group of councils and attempts to draw some general lessons for local government policymakers. Despite the recent limited forced consolidation experienced by some RAPAD councils, we find that the ‘tyranny of distance’ afflicting RAPAD members means that it is not amenable to ‘top-down’ reform measures, like council amalgamation, and policy makers should instead focus on ‘local solutions to local problems’ and encourage feasible forms of resource sharing.

Estimation and performance evaluation of optimal hedge ratios in the carbon market of the European Union Emissions Trading Scheme

Following the introduction of the European Union Emissions Trading Scheme (EU-ETS), CO2 emissions have become a tradable commodity. As a regulated party, emitters are forced to take into account the additional cost of carbon emissions in their production costs structure. Given the high volatility in the carbon price, the importance of price risk management becomes unquestionable. This study is the first attempt that has been made to calculate hedge ratios and to investigate their hedging effectiveness in the EU-ETS carbon market by applying conventional, recently developed estimation models. These hedge ratios are then compared with those derived for other markets. In spite of the uniqueness and novelty of the carbon market, the results of the study are consistent with those found in other markets – that the hedge ratio is in the range of 0.5–1.0 and is still best estimated by simple regression models.

Financial System Reform in Kazakhstan from 1993 to 2006 and Its Socioeconomic Effects

Voluminous theoretical and empirical literature examines the relation between financial-sector development and economic growth. However, previous studies have largely ignored progress in former Soviet Central Asian republics engaged in transition from socialist command economies to market economies. This paper seeks to fill this gap in the literature by considering Kazakhstans experience with financial-sector liberalization and the socioeconomic effects of these reforms. We summarize the prereform economic circumstances prevailing in Kazakhstan, outline the major characteristics of its postcommunist financial system, and provide a detailed chronicle of financial-sector reform measures from 1993 to 2006. The paper focuses on the evolution of Kazakhstans banking structure, policies adopted by the National Bank of Kazakhstan, and the approach taken to the privatization of state banks, as well as the steps taken to improve bank accounting standards and banking supervision. The development path of nonbank financial institutions and capital markets is also examined. We consider the outcomes of financial-sector reforms and their effects on the economy as a whole.

Estimating remittances in the former Soviet Union: Methodological complexities and potential solutions

Abstract Remittances in the former Soviet Union have increased rapidly over the past decade. In some countries of the former Soviet Union, remittances have reached staggering levels. For example, in Armenia, Kyrgyzstan, Moldova, Tajikistan, and Uzbekistan remittances now account for over 10% of GDP, with Tajikistan leading the pack with annual remittances of approximately 40% of GDP. Remittances in this group of economies now exceed foreign direct investment and foreign assistance. Because this rapid rise in remittances is a relatively recent trend and obtaining reliable data is difficult, this area of research has been underexplored. The aim of this paper is to provide a comprehensive review of existing remittance measurement methodologies. Moreover, we propose practical methods to adjust the Central Bank of Russia data to derive more accurate remittances estimates in selected countries of the former Soviet Union. These selected economies are major recipients of remittances among transition economies and account for as much as 10% of remittances worldwide. There have been attempts to provide this type of estimation in individual countries; however, there have been no studies, to our knowledge, that propose a general methodology for the region.

Reforming the Financial System; The Case of Uzbekistan

This work will discuss the major challenges facing transition economies restructuring their financial systems to integrate with world financial markets. Discussion will include the particular development of capital markets. Special attention is paid to the example of the Republic of Uzbekistan; the achievements to date and the challenges to come, including the development of securities markets and factors that will influence this. This work commences with a discussion on the importance of financial development on economic growth. The history of Uzbekistans financial development is presented to clarify and illustrate the present situation. The work continues by highlighting some of the key decisions faced by the transitional economies and, again using the Uzbekistan situation as an example, the causes and effects of implementing such decisions. The work concludes by focusing on the issues surrounding the development of the capital market in Uzbekistan. The last part of the paper is experimental, concentrating on an investigation into the relationship between foreign exchange regimes and market capitalisation based on a thorough analysis of transition economies.

The academy-profession nexus in CFA partner programs

Purpose – The purpose of this paper is to comprehensively review one example of academic-industry cooperation, namely, the partnership arrangements between the CFA Institute and universities around the globe. There is a scarcity of literature relating to academic-industry cooperation between the finance discipline and business. Design/methodology/approach – Relevant data were hand-collected and a comprehensive analysis of individual CFA partner programs was undertaken, including the geographical distribution of the programs and program characteristics and ranking of partners programs; the motivation for and approaches of universities toward the CFA Institute partnership and program design are identified. The general findings are validated with a detailed analysis of the CFA partner postgraduate programs offered in Australian universities. Findings – The research finds that the primary focus of cooperation between the CFA Institute and universities is the adoption of practitioner-relevant academic curricul...

Financial Sector Reforms in Indonesia and South Korea in 1980s and Early 1990s

This article examines financial liberalisation in Indonesia and South Korea during the 1980s and the early 1990s. It provides a brief discussion of the pre-reform political and economic environment in the two countries, followed by a description of the state of the pre-reform financial sectors in both the countries. The article then focuses on the respective financial development policies and their pace, sequencing and outcomes in the two nations. The socio-economic impact of financial sector reforms is also carefully considered. The article concludes by summarising its main findings and drawing out some major policy implications.