nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2012‒11‒11
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Foreign activity of Russian banks:reconsidering multinational banking theory By Victor Gorshkov
  2. Convergence between Russian regions By Sergei Guriev; Elena Vakulenko
  3. Desafios da Acessão da Rússia à OMC By Vera Thorstensen; Carolina Múller; Daniel Ramos
  4. The Role of Funded Pensions in Retirement Income Systems: Issues for the Russian Federation By Juan Yermo

  1. By: Victor Gorshkov (PhD student, Graduate School of Economics, Kyoto University)
    Abstract: The present paper targets activity of Russian banks expanding their businesses abroad. Within the framework of existing multinational theory we examine motivation, entry modes and strategies of Russian foreign banks. We demonstrated on the example of Russia that distinctive features of banking sectors of host and home countries, offshore business of Russian banks, hidden forms of expansion through third countries, role of banks in other outward foreign investments, non-transparency of legal actors of foreign banks and their strong interrelation with the state and recourse-based TNCs and large financial and industrial groups, cultural and historical background among the host and home countries, all these factors in fact do matter and should be considered when investigating the foreign expansion of banks. Some suggestions were made in order to extend existing theoretical base on multinational banking theory.
    Keywords: multinational banking theory, foreign banks, motivation, entry modes, strategies, Russian banks
    JEL: F23 F30 G20 G21 P29 P33
    Date: 2012–11
  2. By: Sergei Guriev (New Economic School); Elena Vakulenko (National Research University Higher School of Economics)
    Abstract: In this paper we study convergence among Russian regions. We find that while there was no convergence in 1990s, the situation changed dramatically in 2000s. While interregional GDP per capita gaps still persist, the differentials in incomes and wages decreased substantially. We show that fiscal redistribution did not play a major role in convergence. We therefore try to understand the phenomenon of recent convergence using panel data on the interregional reallocation of capital and labor. We find that capital market in Russian regions is integrated in a sense that local investment does not depend on local savings. We also show that economic growth and financial development has substantially decreased the barriers to labor mobility. We find that in 1990s many poor Russian regions were in a poverty trap: potential workers wanted to leave those regions but could not afford to finance the move. In 2000s (especially in late 2000s), these barriers were no longer binding. Overall economic development allowed even poorest Russian regions to grow out of the poverty traps. This resulted in convergence in Russian labor market; the interregional gaps in incomes, wages and unemployment rates are now below those in Europe. The results imply that economic growth and development of financial and real estate markets eventually result in interregional convergence.
    Keywords: Convergence, economic growth, Russian regions, financial development, migration.
    JEL: J61 R23
    Date: 2012–10
  3. By: Vera Thorstensen; Carolina Múller; Daniel Ramos
    Abstract: O presente artigo pretende analisar os compromissos assumidos pela Rússia quando de sua acessão à Organização Mundial de Comércio (OMC), a fim de averiguar os impactos que esses podem trazer ao sistema multilateral de comércio. A Rússia era a última grande economia que estava ausente da OMC e, para que sua acessão fosse aceita pelos membros da organização, submeteu-se a uma série de obrigações que concediam aos demais membros maior acesso ao mercado russo e visavam assegurar que o país conformaria seu sistema econômico às regras do sistema multilateral. Assim, foram estabelecidas obrigações em temas relacionados ao setor de petróleo e gás, à participação do Estado na economia, aos programas de subsídio e à observância das regras de propriedade intelectual. A partir da análise de tais compromissos, em conjunto a uma comparação com a acessão da China à OMC, em 2001, serão identificadas as principais características da economia russa que poderão ensejar desafios à sua plena participação no sistema multilateral. Palavras-chave: OMC; acessão; Rússia; comércio internacional. This study aims to analyze the commitments undertaken by Russia at the moment of its accession to the World Trade Organization (WTO), in order to evaluate the impacts that these may have on the multilateral trading system. Russia was the last main economy outside the WTO. In order to allow its accession to the organization, WTO members demanded a series of commitments that would grant them a larger access to the Russian market and would assure that the country would adapt its economic system to the rules of the multilateral trading system. The country undertook obligations related to the oil and gas sector, state presence in the economy, subsidy programs and enforcement of intellectual property rules. Based on the analysis of such commitments and comparing them with China`s accession to the WTO, in 2001, the article shall identify the main features of Russian economy that may present a challenge to its full participation in the multilateral trading system. Keywords: WTO; accession; Russia; international trade.
    Date: 2012–10
  4. By: Juan Yermo
    Abstract: This paper reviews the recent development of the funded pension system in the Russian Federation and considers it role in the context of the overall retirement income system. By describing current OECD practices and policy recommendations and comparing them with the current Russian pension system, the report aims to facilitate ongoing discussions between the OECD and the Russian Federation regarding the latter’s pension system.<P> The report is based to a large extent on existing OECD published material, in particular the latest edition of OECD Pensions at a Glance (2011) and the OECD Pensions Outlook 2012. It also draws on the OECD review of labour and social policy published in December 2011.</P><P>Le rôle des régimes de pension privés dans les systèmes de retraite : les enjeux pour la Fédération de Russie<BR>Cette publication analyse l’évolution récente des régimes de pension privés dans la Fédération de Russie et examine leur rôle dans le contexte du système de retraite du pays. Elle met en regard le système de retraite russe et les pratiques en vigueur dans les pays de l’OCDE ainsi que les recommandations stratégiques formulées par l’Organisation. Ce rapport a pour objectif de faciliter les discussions en cours entre l’OCDE et la Fédération de Russie sur le système de retraite du pays. Ce document s’inspire largement de publications de l’OCDE, et notamment des dernières éditions du Panorama des pensions 2011 et des Perspectives de l’OCDE sur les pensions privées 2012. Il fait également fond sur l’examen de l’OCDE du marché du travail et des politiques sociales dans la Fédération de Russie, publié en décembre 2011.
    Keywords: investment, regulation, supervision, social security, public pensions, funded pensions, investissement, supervision, sécurité sociale, pensions privées, régulations, pensions publiques
    JEL: G18 G23 G28 H55
    Date: 2012–10–19

This nep-cis issue is ©2012 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.