nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2007‒10‒06
two papers chosen by
Anna Y. Borodina
Perm State University

  1. Trade, demand spillovers, and industrialization : the emerging global middle class in perspective. By Alain Desdoigts; Fernando Jaramillo
  2. Institutions and Entrepreneurship Development in Russia: A Comparative Perspective By Saul Estrin; Ruta Aidis; Tomasz Mickiewicz

  1. By: Alain Desdoigts (Centre d'Economie de la Sorbonne); Fernando Jaramillo (Universidad del Rosario)
    Abstract: Will the integration of BRIC (Brazil, Russia, India and China) into the global economy provide the biggest boost to the world economy since the industrial revolution ? In this paper, we investigate international demand spillovers brought about by an emerging global middle class and their impact on the international structure of production. We put forth a many-industry and two-country trade model featuring international competition, non-homothetic preferences and country-specific asymmetries in income distribution, productivity and population size. Its key characteristic is the introduction of demand complementarities propagating increasing returns across industries and national boundaries, which eventually translate into a global profit-multiplier.
    Keywords: Horizontal complementarities, hierarchic preferences, world middle class, deindustrialization, trade.
    JEL: F10 O11 O14
    Date: 2006–02
  2. By: Saul Estrin; Ruta Aidis; Tomasz Mickiewicz
    Abstract: In this paper we use a comparative perspective to explore the ways in which institutions and networks have influenced entrepreneurial development in Russia. We utilize Global Entrepreneurship Monitor (GEM) data collected in 2001 and 2002 to investigate the effects of the weak institutional environment in Russia on entrepreneurship, comparing it first with all available GEM country samples and second, in more detail, with Brazil and Poland. Our results provide strong evidence that Russia’s institutional environment is important to explain its relatively low levels of entrepreneurship development, where the latter is measured in terms of both number of start-ups and of existing business owners. In addition, Russia’s business environment contributes to the relative advantage of entrepreneurial insiders (those already in business) to entrepreneurial outsiders (newcomers) in terms of new business startups.
    Keywords: Entrepreneurship, Institutions, Networks, Russia, Poland, Brazil
    JEL: P36 O17 M13
    Date: 2007–02–01

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