nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒12‒19
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Effect of Relative Price Changes of Top Principle Crops on Farm Land Allocation in Post-Soviet Russia: Do Prices Matter? By Vorotnikova, Ekaterina; Asci, Serhat; Seale, James
  2. Are the Economic Sanctions against Russia Effective? By Konstantin Kholodilin; Dirk Ulbricht; Georg Wagner
  3. Modernising Russia's cattle and dairy sectors under WTO conditions: Insights from East Germany By Petrick, Martin
  4. Price Discrimination and Pricing to Market Behavior of Black Sea Region Wheat Exporters By Gafarova, Gulmira; Perekhozuk, Oleksandr; Glauben, Thomas
  5. An Economic Strategy to Save Ukraine By Anders Aslund
  6. Economic, social and institutional factors in the growth of agri-food sector in Europe By Anonymous; Chmieliński, Paweł; Wigier, Marek
  7. The Productivity Consequences of Political Turnover: Firm-Level Evidence from Ukraine's Orange Revolution By Earle, John S.; Gehlbach, Scott

  1. By: Vorotnikova, Ekaterina; Asci, Serhat; Seale, James
    Abstract: After the collapse of the Soviet Union in 1991, Russian economy was on the way to becoming more market-based. While the broadening of market forces in Russian agriculture seems plausible, there is little empirical evidence to support the proportion that land allocation decision among grains and oil-seeds are in large determined by output prices for the crops. The crops are wheat, barley, oats, corn, rye, soybeans, rapeseed, and sunflower. In this chapter, a land allocation model developed recently by Vorotnikova, Asci and Seale (2013) is fit to post-Soviet data to determine if output prices for grains and oil-seeds significantly affect land allocation among these crops and by what magnitudes. We look at the effect of the relative export price changes on allocation of land among top eight top crops in agricultural production for Russia during the years 1992 to 2012. We have determined that most price responsive acreages are those of 1) soybeans, 2) corn, 3) sunflower, 4) wheat, 5) rye, 6) barley, and 7) other. Overall, we can conclude that Russian agriculture has become price responsive when it comes to the land allocation.
    Keywords: Post-Soviet Union agriculture, land allocation, price responsiveness, Crop Production/Industries, Land Economics/Use, Production Economics,
    Date: 2014–05–28
  2. By: Konstantin Kholodilin; Dirk Ulbricht; Georg Wagner
    Abstract: The introduced sanctions against Russia, which at the moment are on a level of travel bans and asset freezes against a limited group of individuals and firms, are unlikely to trigger a profound change in Russian foreign policy. This can primarily be attributed to the fact that the economic impact of the sanctions is rather low. However, the current political tensions have had an impact on financial and non-financial indicators, including a possibly persistent effect on government bond yields.
    Date: 2014
  3. By: Petrick, Martin
    Abstract: How to revitalise the cattle and dairy sectors under the WTO commitments has emerged as a major policy challenge for the Russian government. This article raises the question whether livestock recovery in East Germany does provide any insights that could be of value to current policy makers in Russia. Similar to Russia, livestock numbers plummeted in the first years after the end of central planning. Unlike in Russia, milk output per cow increased spectacularly and almost doubled in a period of 20 years. It is argued that reforms of the institutional environment of agriculture were at least as important for this outcome as the generous availability of funding. Incentives set by financial aid were sometimes unintended, inconsistent, and led to misallocations that were costly to correct later on. More recent capital subsidies were inefficient in reaching any of the manifold goals they were hoped to achieve. While the Russian government may face little difficulty in dressing up its investment subsidies to make them look like green box compatible, the structural elements of the EU's Common Agricultural Policy are regarded as a poor guide for policy reform.
    Abstract: Die Wiederbelebung der Rinder- und Milchproduktion unter den Bedingungen der WTO Verpflichtungen zählt derzeit zu den wichtigen politischen Herausforderungen der russischen Regierung. Dieser Beitrag wirft die Frage auf, ob die Entwicklung der Tierbestände in Ostdeutschland Erfahrungen bereithält, die für die politischen Entscheidungsträger in Russland von Nutzen sein können. Ähnlich wie in Russland brach der Tierbestand in den ersten Jahren nach dem Ende der Planwirtschaft massiv ein. Anders als in Russland stieg die Milchleistung je Kuh binnen weniger Jahre jedoch spektakulär an und verdoppelte sich in einem Zeitraum von 20 Jahren nahezu. Der Beitrag argumentiert, dass Reformen der institutionellen Rahmenbedingungen für die Landwirtschaft mindestens ebenso verantwortlich für dieses Ergebnis waren wie die großzügige finanzielle Unterstützung durch staatliche Mittel. Die finanziellen Hilfen setzten teilweise unbeabsichtigte oder widersprüchliche Anreize, die mitunter zu nur schwer korrigierbaren Fehlallokationen führten. Die in letzter Zeit gewährten Kapitalsubventionen erreichten die vielen mit ihnen verbundenen Ziele nur sehr ineffizient. Während die russische Regierung mit vermutlich nur geringem Aufwand ihre Investitionsförderung als "Green Box"-kompatibel darstellen kann, betrachtet dieser Artikel die strukturpolitischen Maßnahmen der Gemeinsamen Agrarpolitik (GAP) als schlechtes Vorbild für politische Reformen.
    Keywords: Agricultural policy,investment aid,East Germany,livestock sector,WTO
    JEL: P52 Q14 Q17
    Date: 2014
  4. By: Gafarova, Gulmira; Perekhozuk, Oleksandr; Glauben, Thomas
    Abstract: As a result of some recent changes in the international wheat market, market shares of leading wheat exporters have recently altered. The Black Sea region countries – Kazakhstan, Russia and Ukraine (KRU) – have become important wheat exporters, since they implemented substantial restructuring in total agricultural production, consumption and trade in the 1990s, and subsequently achieved a massive increase in grain production during the 2000s. Consequently, the pricing behaviour of these countries has become a key issue. By applying the pricing-to-market model to annual wheat exports, this study analyses the price discriminating behaviour of the KRU exporters in foreign markets during 1996-2012. The results demonstrate that even though the KRU countries are able to exercise price discrimination in different importing countries, they usually face perfect competition in most destinations.
    Keywords: fixed-effects model, price discrimination, pricing-to-market, wheat export, Crop Production/Industries, Demand and Price Analysis,
    Date: 2014–09
  5. By: Anders Aslund (Peterson Institute for International Economics)
    Abstract: Ukraine has experienced a year of unprecedented political, economic, and military turmoil. The combination of Russian military aggression in the east and a legacy of destructive policies leading to pervasive corruption has plunged the country into an existential crisis. The West, meanwhile, has been largely paralyzed with uncertainty over how to assist Ukraine without reviving Cold War hostilities. Yet all is not lost for Ukraine. The successful elections of President Petro Poroshenko in May and a new parliament in October offer an opportunity for economic reform, despite the continuing military threat. The window of opportunity is likely to be brief, however. The new government will have to act fast and hard on many fronts to succeed. Åslund lays out the strategy.
    Date: 2014–11
  6. By: Anonymous; Chmieliński, Paweł; Wigier, Marek
    Abstract: Institutional restrictions concerning growth and development of Polish farms. The Russian agricultural sector and WTO: advantages and disadvantages. Policy and economic rent as sources of agricultural producer’s income. An analysis of current economic problems and development factors in agriculture facing Ukraine. The assessment of quality and price competition strategies in Polish trade of agri-food products. The dynamic of agrifood systems and institutional impacts on Romanian vegetable producers. The status and development perspectives of the agricultural production sector of the Republic of Belarus. Would equal direct payments in the EU be fair? Impact of the CAP support measures on the agricultural sector in Lithuania. Economic and managerial analysis of the effect of human capital on the growth of horticulture sector in Bulgaria. Agriculture and rural development – the case of Norway. Agricultural policy supporting the structural development of farms and other rural enterprises in Finland. Economic crisis in rural areas of the Czech Republic and Slovakia. Clusters development in terms of building competitive advantages of an agricultural sector in transition countries. Sustainability of individual farms based on farm accountancy data and survey of respondents from Wielkopolskie Voivodeship. Development factors and elements of a farm management system in France. The impact of CAP on agriculture in the opinion of farmers. Regional restructuring and modernization of Bulgarian dairy sector after the accession to the EU. Trade arragements and their impact on food sector development in Balcan region countries candidate countries. Modelling the factors of human resources management in the horticulture sector in Bulgaria. Change of Productivity in German Dairy Farms. Structural and market changes in the Hungarian fruit industry. Social and economic assumptions of employment increase in fruit and vegetable sector of Slovakia.
    Keywords: economics, sociology, fruit industry, employment, CAP, agricultural policy, human capital, Agricultural and Food Policy, International Relations/Trade, Labor and Human Capital,
    Date: 2013
  7. By: Earle, John S. (George Mason University); Gehlbach, Scott (University of Wisconsin-Madison)
    Abstract: We examine the impact of political turnover on economic performance in a setting of largely unanticipated political change and profoundly weak institutions: the 2004 Orange Revolution in Ukraine. Exploiting census-type panel data on over 7,000 manufacturing enterprises, we find that the productivity of firms in the regions most supportive of Viktor Yushchenko increased by more than 15 percentage points in the three years following his election, relative to that in the most anti-Yushchenko regions. We conclude that this effect is driven primarily by particularistic rather than general economic policies that disproportionately increased output among large enterprises, government suppliers, and private enterprises – three types of firms that had much to gain or lose from turnover at the national level. Our results demonstrate that political turnover in the context of weak institutions can have substantial distributional effects that are reflected in economic productivity.
    Keywords: political connections, firm behavior, voting, transition
    JEL: H32 D72 P26
    Date: 2014–09

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