Thomas Herzfeld

Corruption and Legal (In) Effectiveness: An Empirical Investigation

Numerous studies have investigated the causes and measured the consequences of differences in corruption among countries. An effective legal system has been viewed as a key component in reducing corruption. However, estimating cross-sectional as well as panel data models, we find a significant inter-relationship between legal (in)effectiveness and various measures of corruption. This re-enforcing inter-relationship suggests that corruption is a persistent phenomenon and that strong forces tend to perpetuate corruption at fairly constant levels.

Dynamic Food Demand in Urban China

Purpose - – The purpose of this paper is to investigate dynamic food demand in urban China, with use of a complete dynamic demand system – dynamic linear expenditure system-linear approximate dynamic almost ideal demand system (DLES-LA/DAIDS), which pushes forward the techniques of demand analysis. Design/methodology/approach - – The authors employ a transitionary demand process and develop a new approach of complete demand system with a two-stage dynamic budgeting: a strongly separable DLES in the first stage and a LA/DAIDS in the second stage. Employing provincial aggregate data (1995-2010) from the China urban household surveys, The authors estimated the demand elasticities for primary food products in urban China. Findings - – The results indicate that most primary food products are necessities and price inelastic for urban households in China. The authors also found that the dynamic model tends to yield relatively smaller expenditure elasticities in magnitude than the static models do due to the friction effect of dynamic adjusting costs, such as habit formation, switching costs, and learning process. However, the dynamic effects on own price elasticities are inconclusive due to the add-up restriction. Practical implications - – The research contributes to the demand analysis methodologically, and can be used for better projections in policy simulation models. Originality/value - – This paper methodologically relaxes the restrictive assumption of instant adjustment in static models and allows consumers to make a dynamic decision in food consumption. Empirically, the authors introduce a new complete dynamic demand model and carry out a case study with the use of urban household data in China.

Corruption Clubs: Empirical Evidence from Kernel Density Estimates

A common finding of many analytical models is the existence of multiple equilibria of corruption. Countries characterized by the same economic, social and cultural background do not necessarily experience the same levels of corruption. In this article, we use Kernel Density Estimation techniques to analyse the cross-country distribution of corruption. Particular emphasis will be given to the question whether the distribution of corruption shows more than one peak. We find that most of the estimated densities exhibit twin peaks. We also provide some evidence on the intra-distribution dynamics and the persistence of corruption. We find the group of countries classified within the two ‘clubs’ to be very stable. Corruption is a highly persistent phenomenon. Substantial changes in the economic, political and cultural environment of countries within the ‘corruption club’ are required before a significant decline of corruption is to be expected.

Groundwater quota versus tiered groundwater pricing: two cases of groundwater management in north-west China

Abstract Difficulties in monitoring groundwater extraction cause groundwater regulations to fail worldwide. In two counties in north-west China local water authorities have installed smart card machines to monitor and regulate farmers’ groundwater use. Data from a household survey and in-depth interviews are used to evaluate the effectiveness of the different regulatory institutions implemented with help of the smart card machines. In the given context, groundwater quota is more effective in curbing farmers’ groundwater use than the tiered groundwater pricing. The study shows that the usefulness of smart card machines depends on their embedding in the societal context and related regulatory institutions.

The Trade Distorting Effects of Export Refunds: The Case of Beef Exports to Africa

Abstract The usual sale of European agricultural products to Africa using export refunds has been heavily discussed in recent decades. At the centre of the discussion are the consequences on the agricultural producers in Western and Southern Africa. There are two different points of view: On the one hand, the European Unions (EU) export policy reduces the prices on these markets and relieves high burdens on local producers; on the other hand are claims that refunds do not influence local prices significantly. Hence, the Common Agricultural Policy (CAP) has no effect on markets of third countries, besides depressing world market prices. This paper focuses on the effects of EUs export subsidies for beef exports on its market share in several developing countries. Twenty-seven African countries were analysed using a fixed-effects model between 1988 and 2000. The results clearly show a highly significant positive impact of the export refund rate on the market and the import share. With its export policy, the EU raises its market position and edges out other competitors.

Groundwater regulation in case of overdraft: national groundwater policy implementation in north-west China

Abstract This article analyzes why China’s national groundwater policy is implemented in a fragmented way. The question is addressed through a comparative case-study analysis of groundwater management in north-west China. The analysis focuses on the institutional context in which local government agencies responsible for groundwater management operate. It was found that direct pressure from the central government promotes policy implementation. Yet, the distribution of surface and groundwater management responsibilities over different government agencies also influences the importance attached to groundwater regulation. In a conjunctive-use setting the integration of surface water and groundwater management facilitates effective groundwater regulation.

Is Agribusiness Different? Firm-Level Evidence of Perceived Corruption in Post-Soviet Countries

We investigated firm-level perceptions of corruption, based on two enterprise surveys conducted across eight countries of the former Soviet Union. In addition to identifying the perceived major obstacles to business operations, the article looks at whether managers in the agribusiness sector perceive corruption differently than do managers in other sectors. The empirical analysis makes use of the most recent wave of the Business Environment and Enterprise Performance Survey (BEEPS) conducted between 2012 and 2013, complemented by our own survey conducted in 2016. The results paint a heterogeneous picture. One-fifth of the respondents to BEEPS agree that private payments or gifts to local officials have a moderate or high direct impact, whereas the rate of agreement declines when asked about parliamentarians or government officials. Results of a range of econometric models, however, do not reveal differences between agribusiness and other sectors at large. Only in two of ten specifications do respondents from agribusiness tend to perceive corruption as occurring less frequently than do respondents from other sectors. However, country effects seem to be more important than intersectoral differences in the perception of corruption.

Demographischer Wandel, öffentliche Daseinsvorsorge und Landwirtschaft in den ländlichsten Räumen: Erfahrungen aus Sachsen-Anhalt

Viele landliche Regionen Ostdeutschlands sind in den letzten zwei Jahrzehnten gepragt von einer rapiden Schrumpfung und Uberalterung der Bevolkerung, einem wirtschaftlichen Niedergang sowie einem stetigen Abbau der Leistungen der offentlichen Daseinsvorsorge. Entgegen der Theorien der wirtschaftlichen Entwicklung ist die Landwirtschaft in diesen Regionen haufig der einzig verbliebene Sektor, der Einkommen und Beschaftigung vor Ort schafft. In dieser Untersuchung wird analysiert, ob hier die Landwirtschaft von dem demographischen Wandel tangiert wird und ob sie einen Beitrag zur offentlichen Daseinsvorsorge leisten kann. Sie basiert auf einer Befragung von 134 landwirtschaftlichen Betriebsleitern im Jahr 2012 in der Region Altmark, Sachsen-Anhalt. Die Ergebnisse zeigen, dass die Betriebe, insbesondere juristische Personen, immer starker Probleme haben, geeignete Fachkrafte und vor allem Lehrlinge zu finden. Es ist zu erwarten, dass dies mittel- bis langfristig Auswirkungen auf die Produktionsrichtung, aber auch auf die Organisationsformen haben wird. Ebenfalls zeigen die Ergebnisse, dass landwirtschaftliche Betriebsleiter bereit sind, Aufgaben der offentlichen Daseinsvorsorge zu ubernehmen. Der Grund liegt in der emotional-sozialen Verbindung zur Heimatregion, also der engen Bindung der Betriebsleiter zur Region und seinen Bewohnern.

Spread of retailer food quality standards: a transition countries perspective.

Privately initiated food quality standards are becoming increasingly important elements in the marketing of food and agricultural products in Western Europe. At the same time, they are at the centre of a discussion about the potential negative effects on small farmers and farmers in developing and transition countries in general. This study analyses the adoption of two private food standards, the BRC Food Technical Standard and GlobalGAP, at an aggregated cross-country level. The results of the econometric analysis reveal some (potential) barriers for developing and transition countries in accessing this type of organizational innovation. Certificates seem more likely to be issued in countries that are larger and wealthier, which have better institutional arrangements and better infrastructural conditions, and which are former UK colonies.