nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2007‒11‒10
three papers chosen by
Anna Y. Borodina
Perm State University

  1. Russia between transition and globalization By Olga Garanina
  2. Institutional Transition and Local Self-Government in Russia By Adrian Campbell; Satoshi Mizobata; Kazuho Yokogawa; Elena Denezhkina
  3. Sectoral Distortions and Service Protection in Russia. A Comparison with Benchmark Emerging Markets and EU Accession Candidates By Rolf J. Langhammer

  1. By: Olga Garanina (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: The research aims to understand the impact of the internal factors on the formulation of a policy of selective opening of the Russian economy since the beginning of the transition. We study the politico-economic configuration in Russia in terms of (i) its "vertical" dimension (relations federal centre - regions) and (ii) the "horizontal" one (relations between state and firms). We show the fragmentation of the central state as regards to both dimensions during the first period (1991-1999). During the second period (since 2000), the reforms aim to reinforce the "vertical of power" and to institutionalize the state-enterprises relations. Nevertheless, questions emerge as to the effectiveness and continuity of the state's return strength. This evolution also appears through the study of Russian trade policy, which has submitted to private interests in 1991-1998 and stabilized afterwards. Meanwhile, the economic (and hence political) equilibrium in Russia remains extremely dependent on hydrocarbons exports.
    Keywords: globalization ; economic transition ; hydrocarbon ; trade policy ; Russia
    Date: 2007–09
  2. By: Adrian Campbell (The International Development Department, University of Birmingham); Satoshi Mizobata (Institute of Economic Research, Kyoto University); Kazuho Yokogawa (Institute of Economic Research, Kyoto University); Elena Denezhkina (European Research Institute, Birmingham University)
    Abstract: This paper includes the following parts: 1) gVertical or Triangle? Local, regional and federal government in the Russian Federation after Law 131.h, by Adrian Campbell, and 2) comments to the paper gSoftness and hardness of the institutions in Russian ocal self-governmenth by Satoshi Mizobata, 3) gLocal budget and local self-government in Russiah by Kazuho Yokogawa and 4) gThe Struggle for Power in the Uralsh by Adrian Campbell and Elena Denezhkina.
    Date: 2007–10
  3. By: Rolf J. Langhammer
    Abstract: Recent empirical research on efficiency gains for Russia from WTO membership concludes that service trade liberalization especially through allowing foreign suppliers to invest in Russian service industries promises the largest gains. This points to sizable efficiency deficits in the Russian service sector. This paper departs from the question whether both the Russian sectoral protection structure and the effective rates of protection (ERPs) differ from structures and rates in benchmark countries if tax equivalents for intermediate services are taken into account. The result is that almost all Russian service industries get effectively taxed and not protected once not only tax equivalents of intermediate goods but also those of intermediate services are included in ERP calculation. Variance among industries and peak taxes in service industries are significantly higher than in a median emerging country taken as benchmark. These findings support the key role of intermediate services liberalization for the expansion of a viable Russian service sector. Results from comparing Russian effective rates of protection with those of the EU accession countries Bulgaria and Romania are not inclusive. Tax levels of the two accession countries are also high and variant and thus cannot serve as a proxy for the “economic distance of Russia to Brussels”. Lessons for European Neighborhood Policy point to the requirement for the EU to liberalize bilateral service trade (through mode 3 supply: commercial presence ) on a quid pro quo base: without opening EU markets for Russian companies in specific services (i.e., energy distribution), Russia will probably not open its service sector for EU suppliers more than is required in order to comply with minimum WTO accession prerequisites.
    Keywords: Service Trade, Liberalization, Russia, European Neighborhood
    JEL: F13 F15
    Date: 2007–10

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