nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒04‒05
three papers chosen by
Alexander Harin
Modern University for the Humanities

  1. The Institutionalization of Socio-Responsible Business: Global Trends and Regional Features By Frolov, Daniil; Shulimova, Anna
  2. Institutional Reform Design: А New Chapter of Economics By Polterovich, Victor
  3. What drives the market share changes? price versus non-price factors By Benkovskis, Konstantins; Wörz, Julia

  1. By: Frolov, Daniil; Shulimova, Anna
    Abstract: The article describes the dual nature of business social responsibility: global and regional. The increased pressure of globalization produces a new stakeholder expectations and efforts of companies to conform to it. As a result of return reaction the growing requirements of International standards of business ethics create common effect on corporate management and organizational behavior. However, the institutional conditions of the firm evolution are determined by regional basics of institutional environment. It sets up a local differentiation of socio-responsible activities of corporate sector. Focused on the possibilities of institutional transplantation we consider economic benefits of an importation and a further adaptation of business social innovations for developing countries and Russia.
    Keywords: business social responsibility; firm evolution; corporate management and marketing; institutions; institutionalization; transplantation
    JEL: B52
    Date: 2014
  2. By: Polterovich, Victor
    Abstract: In this paper I argue that the Theory of Reform may be considered as a comparatively new but intensively forming chapter of Economics. In spite of great variety of concrete reforms, the problem of institutional reforming admits general formulation and general approaches of solving it. I discuss some important steps in the development of the Theory of Reform, and then describe its state-of-the art. Since the theory is new, its architecture is not set completely. In the final part of the paper, I will present my own visions of this architecture. It is a typical case in the practice of reforms, when a reformer, who seeks to build an institution with desired properties, discovers that its immediate implementation is impossible because of resource, technological, cultural, political or institutional constraints. In this case, one has to construct a sequence of interim institutions which, for each moment of time, satisfy the existing constraints, and, in the end, provide the implementation of the desired institution. I describe some methods and constructions that can be used to create sequences of interim institutions; illustrations are extracted from the reform experience of China, Russia, and other countries.
    Keywords: shock therapy and gradualism, institutional trajectories, interim institutions, dysfunctions, institutional trap, transaction and transformation costs, norm fixing mechanisms, promising trajectories, manual for reformers
    JEL: D02 E02 H75 L85 O1 P5
    Date: 2014–03–27
  3. By: Benkovskis, Konstantins; Wörz, Julia
    Abstract: The paper proposes a theoretical framework for explaining gains and losses in export market shares by considering both price and non-price determinants. Starting from a demand-side model à la Armington (1969), we relax several restrictive assumptions to evaluate the contribution of unobservable changes in taste and quality, taking into account differences in elasticities of substitution across product markets. Using highly disaggregated trade data from UN Comtrade, our empirical analysis for the major world exporters (G7 and BRIC countries) reveals the dominant role of non-price factors in explaining the competitive gains of BRIC countries and concurrent decline in the G7’s share of world exports. JEL Classification: C43, F12, F14, L15
    Keywords: export market share decomposition, non-price competitiveness, real effective exchange rate
    Date: 2014–02

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