nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2013‒06‒24
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Labor Surplus and Mass Mobilization: Russian Agriculture during the Great War By Paul Castaneda Dower; Andrei Markevich
  2. Overview of EU-Russia R&D and Innovation Cooperation: ERA.NET RUS Scenario Validation By Manfred Spiesberger; Klaus Schuch
  3. Central Asian Trade Relations in the Post-Soviet Era. By Arman Mazhikeyev; T.Huw Edwards
  4. VAT Rate Effect on Price Setting Behaviour in Latvia: Evidence from CPI Micro Data By Konstantins Benkovskis; Ludmila Fadejeva

  1. By: Paul Castaneda Dower (New Economic School); Andrei Markevich (New Economic School and Department of Economics, University of Warwick)
    Abstract: We use mass mobilization for World War I as an exogenous source of variation in the labor force to test the extent of agricultural surplus in one of the most quintessential examples of labor surplus, late imperial Russia. We construct district-level panel data describing agricultural production in the Russian Empire before and during the World War I. We show that districts that experienced greater mass mobilization responded by decreasing area under crops. We next demonstrate the differential effects of mobilization for commune and private farm production, peak and slack season production and cereals and animal husbandry production. Taken together, these results suggest that peasants responded to mass mobilization in a dramatic way. We estimate the upper bound of labor surplus in the agricultural sector to be significantly lower than previous estimates; however, our estimate is conditional on this peculiar pattern of labor removal.
    Date: 2013–06
  2. By: Manfred Spiesberger (ZSI - Centre for Social Innovation); Klaus Schuch (ZSI - Centre for Social Innovation)
    Abstract: A foresight exercise is one of the central elements of the EU FP7 funded ERA.Net RUS project. The foresight exercise prepares structural and thematic scenarios for R&D and innovation cooperation between EU Member States (MS), Associated Countries (AC) to FP7 and Russia. The term structural scenario refers to institutional solutions and instruments (e.g. funding programmes) for the cooperation, whereas the term thematic scenario refers to relevant thematic priorities for the cooperation. The foresight and the resulting scenarios shall provide a basis for a sustainable joint funding programme between EU MS/AC and Russia.
    Keywords: European research and innovation policy, ERAWATCH, European Research Area, Policy Mixes, Transnational and International Cooperation; NETWATCH; ERA Nets; Foresight; Joint programming of research; Researchers, Universities; European Foresight Platform (EFP); modelling, linking Qualitative and Quantitative methods.
    Date: 2013–01
  3. By: Arman Mazhikeyev (School of Business and Economics, Loughborough University, UK); T.Huw Edwards (School of Business and Economics, Loughborough University, UK)
    Abstract: By looking at post colonial trade relationships of the world countries for period of 1948-2006, Head and Mayer (HM [Head et al. (2010)]) conclude that a country's trade with the colonizer, typically, erodes by 60% after 30 years of independence. However, the CAR (Central Asian Republics(CAR) arehave been independent from itstheir colonizer, Russia for over 22 years, but their trade since 1995 has been is steady and increasing. As a highly-specific application of Head and Mayer's (HM[Head et al. (2010)]) study of post-colonial ties, CAR-Russia trade may appear to contradict the predictions or imply that there are interesting factors at work. We aimed to investigate what is explaining CAR-Russia trade based onn the CAR's' bilateral trade forin the Post-Soviet period under a gravity framework according to in terms of a combination of monadic (country-specific) effects, such as national GDP, and dyadic (bilateral) effects associated with relative trade costs. We find that (1) dyadic time-varying “RTA” and time-invariant “Landlockedness”, and monadic “importer's GDP” are highly significant in trade with the Central Asian Republics while “Tariffs” have low importance; (2) the CAR-Russia pair unobservable trade costs that are sensitive to global shocks had increased by 20%, their trade continued to be steady and increasing which is due to monadic effects (i.e., GDP growth, following the recovery in wWorld oil prices increase); (3) dynamics analysis of 185 country pairs trade show that 3/4 cases of observed changes in country pair trade is explained by country-specific features and 1/4 cases by bilateral trade relationships. Additionally, we find that country pair trade of the less liberal CARs (Uzbekistan and Turkmenistan) forwas 96% driven byexplained by a monadic effect, while for the more liberal CARs (Kyrgyzstan and Kazakhstan), trade for 50% is influenced by a dyadic effect.
    Keywords: Trade costs, Gravity, Transition, Trade Crisis
    JEL: F15 F54 P33
    Date: 2013–06
  4. By: Konstantins Benkovskis; Ludmila Fadejeva
    Abstract: This paper evaluates the inflation effect of recent VAT rate changes in Latvia by using CPI micro data. Our findings suggest that the pass-through of the tax rate to consumer prices is strong in case of upward tax adjustments, especially when there are no demand restrictions, while the pass-through is weaker for tax reductions. The frequency of price changes peaks at the moment of VAT adjustment, which, however, is partially compensated by lower average size of price revisions. The level of pass-through exhibits a high degree of heterogeneity with higher pass-through for goods, especially food, and lower for services.
    Keywords: VAT, inflation, sample selection model, CPI micro data, Latvia
    JEL: C24 D40 E31 H20
    Date: 2013–06–11

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