nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒07‒28
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Foregign Direct Investment and Regional Economic Growth in Russia: An Econometric Assessment By Iwasaki, Ichiro; Suganuma, Keiko
  2. Are exporting firms always a good hedge against currency risk? Evidence from Central and Eastern European Countries By M. FRÖMMEL; M. LUETJE
  3. Оценка догоняющего развития на уровне стран и регионов: методический комментарий By Zaytsev, Alexander
  4. Beyond Crises: The Unending Challenge of Controlling Nuclear Weapons and Materials By Bunn, Matthew G.
  5. Radicalism versus Gradualism: A Systematic Review of the Transition Strategy Debate By Iwasaki, Ichiro; Suzuki, Taku

  1. By: Iwasaki, Ichiro; Suganuma, Keiko
    Abstract: In this paper, we estimate the growth-enhancing effect of foreign direct investment (FDI) in Russian regions, paying special attention to the country’s investment boom and the remarkable regional gaps in terms of cumulative direct investments in and after 2003. We also examine possible synergistic effects between FDI and local R&D potential to test the absorptive capacity hypothesis. Our estimation results strongly suggest the remarkable role of FDI in the regional economic growth in Russia. In addition, we found that the positive effect of FDI on growth is not limited to the regions that received a relatively large amount of foreign capital. Furthermore, we detected a surprisingly robust and positive synergistic effect between FDI and local R&D potential, indicating that the absorptive capability is essential for linking FDI and regional economic development in Russia.
    Keywords: foreign direct investment (FDI), regional economic growth, R&D potential, absorptive capacity hypothesis, Russia
    JEL: F21 O11 P25 P33 R11
    Date: 2014–06
  2. By: M. FRÖMMEL; M. LUETJE (-)
    Abstract: This paper analyzes the exchange rate exposure of exporting firms in (the so far rarely addressed) largest Eastern European transition economies, i.e. Russia and three EU accession countries (CEEC-3). It also controls for possible effects of different exchange rate regimes. Substantially improving the results from the existing literature we find for more than 80% of firms in our sample a significant exchange rate exposure. However, the magnitude and direction of firms’ exposure depends on the particular exchange rate and clearly differs between Russia and the CEEC-3. We find that share prices increase with a depreciation of the domestic currency and only against the US Dollar in Russia, but decrease with a depreciation and only against the Euro in the CEEC-3. Such substantial differences may result from a differing dominance of exposure channels in the respective economies, such as the countryspecific export structure and foreign debt. Finally, the switch from a pegged to a flexible exchange rate regime appears to be less important for exposure.
    Keywords: Exchange Rate Exposure, Transition Economies, Central and Eastern Europe, International Finance
    JEL: F3 G12 G15
    Date: 2014–02
  3. By: Zaytsev, Alexander
    Abstract: The author shows that different approaches to income comparisons both on country and regional levels may lead to conflicting conclusions concerning the catching-up. It is argued that current PPPs (Instead of constant PPPs) give more reliable picture of per capita GDP convergence process on country level. Based on the case of Russian regions it is showed that different ways of converting incomes into spatially consistent prices also lead to significantly different results. The need of computing (current) regional PPPs is emphasized.
    Keywords: income convergence, catching-up, interregional inequality, regional income, PPP
    JEL: E31 N30 O47 O57 R11
    Date: 2014–05–08
  4. By: Bunn, Matthew G.
    Abstract: Book abstract: At the height of the Cultural Revolution a Chinese long-range nuclear missile is fired within the country, and the nuclear warhead it is carrying detonates. A French nuclear device is exploded in Algeria during a coup there. The Soviet empire has collapsed, and shots are fired at a Russian crowd intent on rushing a nuclear weapons-laden plane straining to remove a stash of nuclear weapons to a safer locale. Pakistani civilian governments are routinely pushed aside by a powerful, nuclear-armed military that observers worry might yet itself fall prey to a faction willing to seize a portion of Pakistan’s nuclear arsenal. This volume reveals previously unknown details on each case and teases out what is to be learned. This book is ideal not only for policymakers and analysts, but for historians and teachers as well.
    Date: 2013
  5. By: Iwasaki, Ichiro; Suzuki, Taku
    Abstract: Academic debate on a transition strategy for former socialist economies continues even 25 years after the collapse of the communism in Central and Eastern Europe and the former Soviet Union. In this paper, through a systematic review of 135 preceding studies, we present an overall picture of the debate and examine the relationship between the debate attitudes and the literature attributes in related studies. We found that the radicalists maintain a consistent debate attitude from the viewpoints of time speed and policy sequence of economic transition, while the debate attitude of the gradualists is more diversified. We also found that there is another group of researchers that stays within the framework of the radicalism-versus-gradualism debate while at the same time keeping at arm's length from both the radicalists and the gradualists. In addition, our cross tabulation analysis and regression estimation of qualitative selection models provide interesting findings on the relationship between the debate attitudes and the literature attributes.
    Keywords: transition strategy debate, radicalism, gradualism, shock therapy, big-bang, systematic review
    JEL: O20 O57 P20 P30 P52
    Date: 2014–07

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