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Appendix B: Definitions and Sources of the Variables The data used in the empirical investigation has been compiled from four sources: Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi (2006). "Governance Matters V: Governance Indicators for 1996-2005". World Bank Policy Research September 2006, Freedom in the World Index, Freedomhouse 2007, World Development Indicators, 2007, and various of issues World Bank’s Doing Business Indicators. Corruption The World Bank’s Control of Corruption Index reflects a statistical compilation of responses on corruption given by a large number of enterprise, citizen and expert survey respondents in industrial and developing countries, as reported by a number of survey institutes, think tanks, non-governmental organizations, and international organizations. Source: Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi (2006). "Governance Matters V: Governance Indicators for 1996-2005". World Bank Policy Research September 2006 Ln GDP Natural logarithm of GDP per capita in PPP, Source: World Development Indicators, 2007. Political rights A standard Freedomhouse index of Political Rights (denoted as PR in the tables) is used. It is designed to measure the level of democracy in a given country alongside civil liberties index. However, the latter includes corruption as one of the underlying indicators, therefore only the former is used. Source: Freedomhouse.org Starting a Business This topic identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm. It examines the procedures, time, and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI). Three main indicators are used. They include: 127
SB_PR all procedures required to register a firm, SB_T average time spent during each procedure, SB_COST official cost (without corruption) of each procedure. Source: Doing Business, various issues. Dealing with Licenses This topic tracks the procedures, time, and costs to build a warehouse, including obtaining necessary licenses and permits, completing required notifications and inspections, and obtaining utility connections. Observations from earlier years were missing. Therefore after regressing data from two years that this variable does not change much over time, it was assumed in the investigation that it does not change. The following main indicators are used. They include: DL_PR all procedures to build a warehouse, DL_T average time spent during each procedure, and DL_COST official cost of each procedure. Source: Doing Business, various issues. Enforcing Contracts This topic looks at the efficiency of contract enforcement by following the evolution of a sale of goods dispute and tracking the time, cost, and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment. Three main indicators for enforcing contracts are: EC_T time in calendar days to resolve the dispute, EC_COST cost in court fees and attorney fees, where the use of attorneys is mandatory or common, expressed as a percentage of the debt value, 128
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In collaboration with: F E M I S E
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Table of contents INTRODUCTION AND
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Introduction and summary In the pro
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that of the NMS, we would observe a
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accession to the EU. Instead, a num
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trade area (FTA). The Agadir Agreem
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liberalization has taken five years
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signed Europe Agreements, EFTA and
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used as industry organization varia
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The main goal of the project was to
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Chapter 1: Assessing trade liberali
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Agricultural Policy (CAP). Further
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Agreements concluded with the MPCs.
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n lnTijt = ∑ k= 1 β RTAijt + α1
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Preferential trade liberalization i
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the EU enlargement, the EFTA lost t
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The most important of these was the
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The Definitions of the Variables an
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Estimates for the whole CEE sample
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agreements is, however, mixed. Whil
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The OLS estimates suggest that both
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Czech Republic Estonia Hungary Lith
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Czech Slovak Republic Estonia Hunga
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products. The provisions of the Eur
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foreseen to take effect in 2005. Ho
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Similar to the AMU, the ACC was for
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Unfortunately, the data on capital
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Table 2. The estimates for bilatera
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obust, while the dummy variable for
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Yi (partner) 0.944 1.009 2.267 1.96
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Agreements on the third countries a
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Chapter 2: Grossman-Helpman Model I
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N function (U ), given by: + ( ) u
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ti 1+ ti xi Ii −α i mi = ⋅ ,
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Probably the most extensive list of
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eginning of 1990. But the tariff st
Page 77 and 78: The non-preferential (MFN, conventi
Page 79 and 80: have important impact on political
Page 81 and 82: xi where ti is the tariff, ei is th
Page 83 and 84: We can recover the structural param
Page 85 and 86: Appendix Table 2 Estimation results
Page 87 and 88: Table 4 Estimation results using mo
Page 89 and 90: Testing Grossman-Helpman model for
Page 91 and 92: practice most importers do not pay
Page 93 and 94: countries were traditionally subjec
Page 95 and 96: point to notify the US government o
Page 97 and 98: and between 157% and 247% in 2004.
Page 99 and 100: policy reforms. On the other hand i
Page 101 and 102: Table 1 Estimation results for Isra
Page 103 and 104: 1995 0.00202 [2.04]** -0.00199 [2.0
Page 105 and 106: extended to disaggregation of burea
Page 107 and 108: The Importance of Corruption A subs
Page 109 and 110: transition countries. Sekkat and Ve
Page 111 and 112: society. In addition, they show tha
Page 113 and 114: Johnson, Kaufmann, McMillan, and Wo
Page 115 and 116: corruption. For example, upon grant
Page 117 and 118: and criminal prosecution. On the ot
Page 119 and 120: estimation are likely to be influen
Page 121 and 122: levels have been used to derive fur
Page 123 and 124: Union. In fact, the level of regula
Page 125 and 126: Table 2 List of the Commonly Raised
Page 127: Table 6 Predicted improvement (show
Page 131 and 132: AFGHANISTAN, ALBANIA, ALGERIA, ANGO
Page 133 and 134: Brunetti, Aymo; Kisunko, Gregory an
Page 135 and 136: Hines, J.R. (1995). Forbidden Payme
Page 137 and 138: PellegriniI, Lorenzo and Gerlagh, R
Page 139: World Bank (2005). Doing Business i
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