nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2005‒01‒16
two papers chosen by
Anna Y. Borodina
Perm State University

  1. Russia: The Long Road to Ratification. Internal Institution and Pressure Groups in the Kyoto Protocol’s Adoption Process By Barbara Buchner; Silvia Dall’Olio
  2. Foreign Investment, Corporate Ownership, and Development: Are Firms in Emerging Markets Catching Up to the World Standard? By Sabirianova Peter, Klara; Svejnar, Jan; Terrell, Katherine

  1. By: Barbara Buchner (Fondazione Eni Enrico Mattei); Silvia Dall’Olio (Fondazione Eni Enrico Mattei)
    Abstract: The Russian Federation played a crucial role in the ratification of the Kyoto Protocol. Indeed, after the US decision not to comply with the treaty, its ratification turned out to be indispensable for the Protocol to become legally binding. In early 2002, the Russian government decided to initiate the ratification process. However, notwithstanding this initial commitment, the country long hesitated to fulfil its promises, and for the last two years it sent numerous contradictory signals with respect to its position on climate policy. As a consequence, the factors that shape Russia’s behaviour in the context of climate negotiations received increasing attention. The main focus has been on the economic and international aspects motivating the Russian strategy. This paper attempts to complete this analysis by concentrating on a further feature that significantly contributed to Russia’s final decision, namely domestic forces. These factors have often been overlooked in the discussion of the Russian strategy. In order to fill this gap, this paper reconstructs the Russian ratification process, trying to identify the main domestic players and their role. Our findings provide various indications on the reasons of the recent developments in Russia, confirming the key role of the Russian President.
    Keywords: Agreements, Climate, Incentives, Negotiations, Policy
    JEL: H11 P27 P28 Q28 Q58
    Date: 2004–12
  2. By: Sabirianova Peter, Klara (WDI, University of Michigan, CEPR and IZA Bonn); Svejnar, Jan (WDI, University of Michigan, CERGE-EI, Prague, CEPR and IZA Bonn); Terrell, Katherine (WDI, University of Michigan, CERGE-EI, Prague, CEPR and IZA Bonn)
    Abstract: Economic development implies that the efficiency of firms in developing countries is approaching that of firms in advanced economies. We examine the extent of this convergence in the Czech Republic and Russia, economies that represent alternative models of implementing development policies, often referred to as the Washington Consensus, that have promoted privatization, competition and foreign investment. We also test hypotheses positing that only firms near the efficiency frontier benefit from these policies and catch up. Using 1992-2000 panel data on virtually all industrial firms in each country, we find that privatization to domestic owners did not markedly improve the efficiency of firms; domestic firms are not catching up to the (world) efficiency standard given by foreign-owned firms; and the distance of the Russian firms to the efficiency frontier is much larger than that of the Czech firms and continued to grow for most firms beyond 1997 while remaining constant in the Czech Republic. Domestic firms closer to the frontier are not more likely to catch up than firms further from the frontier although foreign firms do exhibit this behavior. Foreign-owned firms are increasingly displacing domestic firms in the top deciles of the overall distribution of efficiency, due in part to slower “learning” by domestic firms, higher efficiency of foreign startups, and foreigners’ acquisitions of more efficient domestic firms. The Washington Consensus policies have not enabled domestic firms in either country to start catching up to the world standard.
    Keywords: efficiency, productivity, economic development, foreign direct investment, ownership, convergence, frontier, Czech Republic, Russia, Washington Consensus
    JEL: C33 D20 G32 L20
    Date: 2005–01

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