nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒04‒18
sixteen papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Religion, Growth and Innovation in Contemporary Russia By Jens K. Perret
  2. EU-Russia energy relations: What chance for solutions?: A focus on the natural gas sector By Dimo Böhme
  3. Natural Resources And Economic Growth In Russia’s Regions By Michael Alexeev; Andrey Chernyavskiy
  4. Development of Innovation Infrastructure: foreign experience and its application in Russia By Vera Barinova; Vladimir Eremkin; Viacheslav Rybalkin
  5. The Returns To Training In Russia: A Difference-In-Differences Analysis By Pavel V. Travkin
  6. Factors Affecting a Brand’s Perception in Russia By Gerasimenko Valentina; Ochkovskaya Marina; Rybalko Maria
  7. Okun’s Law, Employment Paradox and Impact of Unemployment on the Economy of the USSR and Russia By BLINOV, Sergey
  8. Anti-Dumping Procedures In The Eurasec Customs Union By Alexander A. Yalbulganov
  9. Corruption Perceptions In Russia: Economic Or Social Issue? By Anastasiia V. Rassadovskaia; Andrey V. Aistov
  10. Representations Of The Police In Contemporary Russian Police Tv-Series By Arseniy Khitrov
  11. Economic development as major determinant of Olympic medal wins: predicting performances of Russian and Chinese teams at Sochi Games By Wladimir Andreff
  12. Relationship Between Interest Rate and Corporate Bond Yield By Magomet Yandiev
  13. Political Campaigns Of The Stalin Period: Their Content, Peculiarities And Structure By Anna S. Kimerling
  14. Shortages and the Informal Economy in the Soviet Republics: 1965-1989 By Kim, Byung Yeon; Shida, Yoshisada
  15. Network Composition, Individual Social Capital And Culture: Comparing Traditional And Post-Modernized Ethnic Groups By Julia Hauberer; Alexander Tatarko
  16. Growth Experience in Ukraine during Twenty Years of Independence: Business Cycle Accounting Perspective By Dubovyk Tetyana

  1. By: Jens K. Perret (European Institute for International Economic Relations at the University of Wuppertal)
    Abstract: For many decades culture has been considered to have a significant impact on the productivity of people. This study observes for the Russian Federation, on the basis of the ARENA study by Sreda, the impact of the share of the most prominent religious groups on economic output as well as on regional innovativeness measured by patent grants from Rospatent. While some issues of causality remain, the analysis shows that standard deductions concerning the religions effect on growth from religious doctrines hold true for the regions oft he Russian Federation as well. The effects on regional patenting, however, are not as clear.
    Keywords: russian federation, religious values, economic growth, patenting, culture
    JEL: P24 R11
    Date: 2014–04
  2. By: Dimo Böhme
    Abstract: Public debate about energy relations between the EU and Russia is distorted. These distortions present considerable obstacles to the development of true partnership. At the core of the conflict is a struggle for resource rents between energy producing, energy consuming and transit countries. Supposed secondary aspects, however, are also of great importance. They comprise of geopolitics, market access, economic development and state sovereignty. The European Union, having engaged in energy market liberalisation, faces a widening gap between declining domestic resources and continuously growing energy demand. Diverse interests inside the EU prevent the definition of a coherent and respected energy policy. Russia, for its part, is no longer willing to subsidise its neighbouring economies by cheap energy exports. The Russian government engages in assertive policies pursuing Russian interests. In so far, it opts for a different globalisation approach, refusing the role of mere energy exporter. In view of the intensifying struggle for global resources, Russia, with its large energy potential, appears to be a very favourable option for European energy supplies, if not the best one. However, several outcomes of the strategic game between the two partners can be imagined. Engaging in non-cooperative strategies will in the end leave all stakeholders worse-off. The European Union should therefore concentrate on securing its partnership with Russia instead of damaging it. Stable cooperation would need the acceptance that the partner may pursue his own goals, which might be different from one’s own interests. The question is, how can a sustainable compromise be found? This thesis finds that a mix of continued dialogue, a tit for tat approach bolstered by an international institutional framework and increased integration efforts appears as a preferable solution.
    Keywords: EU, Russia, energy, gas, cooperation, resources
    Date: 2014–04
  3. By: Michael Alexeev (Indiana University (Bloomington); Russian Presidential Academy of National Economy and Public Administration); Andrey Chernyavskiy (National Research University Higher School of Economics)
    Abstract: We examine the impact of natural resources on economic growth in Russia’s regions since the introduction of the mineral tax in 2002. Using novel measures of natural resource rents produced in, but not necessarily appropriated by the regions (mineral tax collections), we demonstrate that mineral wealth has not significantly affected regional economic growth since 2002, although mineral-rich regions are significantly richer than the other regions. These results are contrary to the “resource curse” hypothesis. The absence of growth benefits to resource-endowed regions, however, is also at odds with the clearly beneficial impact of natural resources on the economic growth of t the country as a whole. We conclude that the Russian central government was successful in taxing away incremental regional resource rents during 2002-2011, but the regions preserved their pre-2002 benefits derived from mineral wealth.
    Keywords: natural resources, regional growth, taxation of minerals
    JEL: P28 R11 Q38
    Date: 2014
  4. By: Vera Barinova (Gaidar Institute for Economic Policy); Vladimir Eremkin (RANEPA); Viacheslav Rybalkin (RANEPA)
    Abstract: The article deals with the key issues of creating innovation infrastructure in Russia and abroad. The authors focus on the “innovation brokers” as an intermediary institute for innovative agents. According to them, innovation brokers are able to fill in the gaps of the innovation infrastructure system, created by the governmental administrative measures. International practices of the countries, that are world economic and innovation development leaders (the USA, the Netherlands etc.), indicate the fact that innovation brokers can be rather effective in solving many problems of providing the infrastructural support to innovation companies. The paper provides guidance on the possible ways of involving innovation brokers in the Russian national innovation system as one of the main tools of providing the effective infrastructural support to innovation processes by greater “soft infrastructure” involvement (ICT-facilities, social, professional and organizational networks).
    Keywords: innovation brokers, national innovation system, regional development, high technology.
    Date: 2014
  5. By: Pavel V. Travkin (National Research University Higher School of Economics)
    Abstract: This paper investigates the wage return to job-related training using a difference-in-differences estimator to control for unmeasured differences in ability and measured differences in past wages as a proxy for ability and motivation. Estimates use data from the Russia Longitudinal Monitoring Survey from 2004 to 2011. As predicted, positive returns to training are identified, and the returns increase absolutely with the level of past wages, consistent with human capital and selection models.
    Keywords: returns to training, human capital, unobserved abilities, Russia.
    JEL: J24 J31
    Date: 2014
  6. By: Gerasimenko Valentina (Department of Economics, Lomonosov Moscow State University); Ochkovskaya Marina (Department of Economics, Lomonosov Moscow State University); Rybalko Maria (Department of Economics, Lomonosov Moscow State University)
    Abstract: This paper demonstrates the importance of a high perceived quality for brands and delves into ways for strengthening it, as well as examining the global trends which affect a consumers’ decision, particularly in the Russia. Taking into account these trends, the authors study the factors behind a positive effect on the brands’ perception in Russia and present ways to transform the high actual quality in the perceived one. The findings from different groups analyses carried out on female and young (students) consumers show the specific of global trends implementation in Russia. In addition, the analyses confirm the efficiency of ways for strengthening the perceived quality of brands.
    Keywords: Brand, brand reputation, brands perception, actual quality, perceived quality, global trends, consumers
    JEL: M31 M37
    Date: 2014–01
  7. By: BLINOV, Sergey
    Abstract: For effective economic growth, intentional “creation” of unemployment is required to be followed up by its «elimination». From Okun’s law one can infer an interesting corollary: growing unemployment without reducing GDP increases the economy’s potential. This corollary can be proved theoretically (unlike Okun’s law which is an empirical law). There were two causes of the USSR’s economic slowdown on the eve of its breakup. One of them was a shortage of labor which is identical to lack of unemployment. However strange it may seem, but the economic problems of modern Russia have the same root cause.
    Keywords: employment; Okun’s law; economic growth; productivity
    JEL: E24 J01 J08 N14
    Date: 2014–04–10
  8. By: Alexander A. Yalbulganov (National Research University Higher School of Economics)
    Abstract: The creation of the EurAsEC Customs Union and Russia’s ascension into the WTO has led to a radical change in Russia’s anti-dumping legislation. Anti-dumping regulation ceased to fall under national jurisdiction and was transferred to the Eurasian Economic Commission, a supranational regulator. This article analyzes the new anti-dumping legislation of the EurAsEC Customs Union, anti-dumping procedures, their principles, participants, and main stages, as well as the legal treatment of information used in the anti-dumping regulation.
    Keywords: EurAsEC, customs union, anti-dumping measures, anti-dumping duty
    JEL: F15
    Date: 2014
  9. By: Anastasiia V. Rassadovskaia; Andrey V. Aistov (National Research University Higher School of Economics)
    Abstract: The efficiency of social reforms in different countries mostly depends on the extent to which they can be accepted by the population. However, even if problems are similar, the reasons may differ, which can make it difficult to apply existing laws of one state to another. Bribery is a typical problem for developing countries as shown in the Corruption Perception Index (calculated by Transparency International) and recent research (Levin and Satarov, 2000) (Ilzetzki, 2011). Corruption can have roots in socialist regimes as in recently established political stability instable economic situation may lead to growth in crime. The main challenge within the scope of this project is to identify the relation between corruption perception and levels of trust in society and to distinguish the differences in factors affecting these characteristics. The research reveals that distrust matters a lot for the problem in Russia and suggests further examination of the dynamics of trust between post Soviet countries and European countries.
    Keywords: corruption perceptions, grassroots corruption, IV logit, Russia, RLMS, social capital
    JEL: C35 D73 P37
    Date: 2014
  10. By: Arseniy Khitrov (National Research University Higher School of Economics)
    Abstract: Studies of representations of the police are important because they affect what people think about the police as an organization, what people expect from day-to-day interactions with police officers, and how police officers themselves work in the media-saturated context of contemporary Western societies. This study is based on an approach, which does not strictly separate studies of the police as an organization from studies of how the police are represented. In this paper, I formulate a methodological framework for analysing representations of societal and state institutions in TV series, and I use this framework to then answer the question of how the police are represented in contemporary police TV series in Russia. This paper based on a single-case semiotic study of a popular Russian TV series called Glukhar’. I consider the show’s social and cultural contexts as well as its symbolic structures, such as visual and audial elements and its narrative. I develop a narrative model of the show, argue that the most prominent motif of the show is justification of the police’s illegal actions, and finally build a typology of these justifications. I propose a detailed analysis of two types of justifications and ultimately conclude that the TV show represents the police estranged from the state but not from society. Finally, I argue that my methodological framework can be applied to other TV series in studies, which address representations of societal and state institutions.
    Keywords: representation, police, TV, series, legitimacy, Russia, crime, drama
    JEL: Z
    Date: 2014
  11. By: Wladimir Andreff (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne)
    Abstract: Econometric modelling of Winter Olympic Games to explain sporting outcomes with economic variables, then predicting the medal distribution at the next Games, Sochi 2014.
    Keywords: sports economics, sporting outcome, prediction, modelling, Winter Olympic Games
    Date: 2013
  12. By: Magomet Yandiev (Department of Economics, Lomonosov Moscow State University)
    Abstract: The author created a model that describes the relationship between the current bank interest rate (rate on loans extended to business entities) and future corporate bond yield (in the text this is formula # 17): Cbank = (k+Cbond)/(1-r). Where: CBank is interest rate on bank loans; CBond is bond yield; r is yield anticipated by shareholders; k is special ratio calculated from the formula # 22 which depends on authorized capital, EBIT, depreciation and income tax rate. Use of the model applied to Russia (calculations of early 2010) has shown that to the beginning of 2011, the financial situation in raw material industries will improve, while in other industries it will aggravate.
    Keywords: Bank interest rate, bond yield, yield anticipated by shareholders
    JEL: E44 F47 G12 G21
    Date: 2014–01
  13. By: Anna S. Kimerling (National Research University Higher School of Economics)
    Abstract: The article examines the content, peculiarities and procedures of mass political campaigns that took place between 1946 and 1953 as part of Stalinist policy. The author analyzes the term 'campaign', describes the role of 'letters to the authorities' (complaints) and examines two types of political campaigns: 1) campaigns mobilizing the population for 'the construction of Socialism' and 2) repressive campaigns to eliminate enemies. Archive and newspaper materials help reconstruct the procedure of campaigns where each stage had its functions.
    Keywords: political campaign, letters to the authorities, Stalinist period, Soviet history, Soviet press
    JEL: N34
    Date: 2014
  14. By: Kim, Byung Yeon; Shida, Yoshisada
    Abstract: We measure the informal economy and shortages of consumer goods in the Soviet republics from 1965 to 1989 to estimate the relationships of these two variables. We use fixed-effect model and instrument variable approach and find that the informal economy and shortages reinforce each other. Results indicate that the Soviet central planning system is difficult to sustain in the long run. A substantial heterogeneity across the Soviet republics exists not only in the extent of the informal economy and shortages, but also in the associations of the two variables.
    Keywords: shortages, informal economy, Soviet republics
    JEL: P21 P27 P36
    Date: 2014–03
  15. By: Julia Hauberer (University of Hamburg - School of Business Administration); Alexander Tatarko (National Research University Higher School of Economics)
    Abstract: This article deals with the influence of cultural background on the sources of social capital. We analyse four different culture groups – Czechs and Russians representing post-modernized cultures and Dagestanis and Chechens representing traditional cultures. Applying univariate comparisons and Structural Equation Modelling, our results indicate a clear difference between post-modern and traditional cultures. Postmodernity seems to come along with less family network density and greater formal network size; however, also with higher family social capital access than traditionalism. No clear distinction can be drawn regarding size of friendship network and social capital accessed by the friendship network.
    Keywords: individual social capital, social networks, culture, modernization, tradition, resource generator
    JEL: D85
    Date: 2014
  16. By: Dubovyk Tetyana
    Abstract: This paper studies the macroeconomic performance of Ukraine since 1991. During last twenty years, Ukraine experienced three episodes of prolonged recessions. The project uses business cycle accounting methodology developed by Chari et al. (2007) to identify driving forces behind economic downturns and growth episodes experienced in recent years. Ukrainian government needs to develop policies for sustainable growth. The research project studies this issue in two dimensions. First, the analysis within a general equilibrium framework identifies distortions which are the most harmful to the economic growth and will help to design future policies. Secondly, the wedges estimated from the data take into account not only legislatively declared taxes, for example, labor income taxes, but also incorporate institutional distortions in the labor market such as hiring and firing costs, expenditures associated with regulations’ compliance. We also estimate the contribution of each wedge to each crisis episode and to subsequent recovery.
    JEL: E3 O4 O5 P2
    Date: 2014–04–09

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