nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2014‒12‒29
28 papers chosen by

  1. Regional Transitions from Socialism to Entrepreneurship: Russia and Germany compared By Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
  2. Monthly Report No. 5/2014 By Rumen Dobrinsky; Gabor Hunya; Sandor Richter
  3. Humanitarian cooperation as a factor in the strategic partnership between Altai Territory of Russia and Land Saxony-Anhalt of Germany By Natalie Iakovleva
  4. Possibilities and prospects of tourism development in the Russian Arctic By Lubov Larchenko
  5. Types of Demographic and Economic Development of Russian Cities in Post-Soviet Period By Leonid Limonov; Albrecht Kauffmann
  6. Arctic Zone of the North-Eastern region of Russia: problems of demographic development By Svetlana Sukneva
  7. Rural Mortality from External Causes in Russian Regions By Tatiana Blinova
  8. Suburban Development of St Petersburg: comparison of 2 subjects of Federation long-term visions By Leonid Limonov
  9. Economic Returns to Speaking the Right Language(s)? Evidence from Kazakhstan's Shift in State Language and Language of Instruction By Aldashev, Alisher; Danzer, Alexander M.
  10. Spatial evolution of economic activity in Russia: New economic geography perspective By Evgeniya Kolomak
  11. Endogenous FDI Spillovers from Japan to Russia and China with Spillover-Prevention Costs By Kiyoshi Matsubara
  12. Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants By Enrico MARELLI; Elena VAKULENKO
  13. Otkhodnichestvo?s impact on small towns in Russia By Yana Zausaeva
  14. Diagnosis of the Social and Economic Welfare of the Population for the Purposes of Regional Economic Policy By Vladimir Fesenko
  15. Russian-Doll Risk Models By Zura Kakushadze
  16. Do agglomeration forces bring productivity gains to manufacturing firms in Russian urban agglomerations? By Tatiana Ratnikova; Ksenia Gonchar
  17. Virgin forests of the European North-East By Vladimir Pakhuchiy
  18. From local to regional competitive advantage (The case of Nikita´s Homestead in Olkhon island - Baikal) By Kamila Borsekova; Katarina Petrikova; Anna Vanova
  19. Выступлением Ю.А.Щербанина на Форуме "Евразийская инициатива - экономическое сотрудничество", г.Москва, Лотте-Отель, 11 сентября 2014 г By Щербанин Ю.А.
  20. Forest planning as the most important aspect of sustainable forest management By Vladimir Akishin
  21. Between conflicts and partnerships: Managing the UNESCO World heritage label in peripheral and metropolitan urban regions in Europe By Carola Silvia Neugebauer
  22. ICTs? Spatial Diffusion Waves By Anastasia Nagirnaya
  23. Municipal reform in Ukraine as a tool to resolve internal contradictions By Ilya Raskin; Roman Amburtcev
  24. Geographies of transition: The political and geographical factors of agrarian change in Tajikistan By Hofman, Irna; Visser, Oane
  25. Banking reform, risk-taking, and earnings quality – Evidence from transition countries By Fang , Yiwei; Hasan, Iftekhar; Li , Lingxiang
  26. Analysis of commuting labor flows of population in Moscow agglomeration using GIS technologies By Yulia Shitova; Yury Shitov
  27. Ciclos económicos, crisis, contagio y los nuevos bloques económicos By Anchorena, Sergio Oscar
  28. Kazakhstan Growth Slows as External Pressures Rise : Kazakhstan Economic Update, Fall 2014 By World Bank Group

  1. By: Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
    Abstract: We investigate the personal- and regional-level determinants of entrepreneurial activities in East Germany and Russia in the process of transition to a market-type economy. In this comparison entrepreneurship in West Germany is used as a benchmark. Whereas East Germany has experienced?after 40 years of socialism?a shock-like-transformation towards a market economy, Russia was under socialistic regime for a period of about 70 years, and its economic development after the breakdown of the Soviet Union diverged from the development in East Germany. Hence, one can expect substantial differences in the level of entrepreneurship and determinants of the decision to be self-employed in these two countries and their regions. While a number of studies indicate that East Germany has now largely overcome its socialistic legacy with regard to entrepreneurial activities (Fritsch et al., 2013,2014),the developments in Russia are still largely unclear. There are some cross-country comparisons of the overall level of entrepreneurial activity that include Russia (Djankov,et al.,2005, 2006; Ageev,et al.,1995; Aidis,et al.,2008). There is, however,hardly evidence on the dynamics of entrepreneurship in detail and with comparison to other post-socialist countries. We conduct micro-data panel analyses for Germany and Russia that cover the time period from shortly after German reunification until recently. The analysis for Germany is based on the Socio-Economic Panel(SOEP), a national representative survey of German households containing detailed information about people's socio-economic and psychological characteristics. Data for Russia comes from the Russia Longitudinal Monitoring Survey(RLMS) which is comparable to Germany's SOEP. For detailed regional analysis in Russia, we additionally use the Overall Monitoring of Living Conditions(OMLC) data set. We find several differences with regard to entrepreneurial activities between East- and West Germany and Russia. While the level of entrepreneurship in East Germany has achieved the West German level of about 12 percent 15 years after the German reunification, the self-employment rate in Russia is still very low at about 4 percent. In all countries under inspection there is substantial variation of the level of self-employment across regions. With regard to the individual-level determinants of self-employment,we observe several differences between Germany and Russia. While age does not seem to play a significant role for the probability of being an entrepreneur in Russia,this relationship has a statistically significant reversed u-shape in Germany. Moreover, entrepreneurs in Germany are more likely to be low- and high-educated,in comparison to employees,whereas in Russia we observe a positive and linear relationship between formal education and the probability of entrepreneurship. Furthermore, Russian entrepreneurs tend to work in occupations that do not correspond with their field of education, thus, indicating necessity-driven nature of entrepreneurship in Russia. Nonetheless, Russian and German entrepreneurs are similar in that they are more likely to be married and men.
    Keywords: entrepreneurship; new business formation; transformation; regional development; East Germany; Russia
    JEL: L26 O11
    Date: 2014–11
  2. By: Rumen Dobrinsky (The Vienna Institute for International Economic Studies, wiiw); Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw); Sandor Richter (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Please help us to improve the Statistical Annex by filling in the survey. Graph of the month Ukraine and Russia shares in exports and imports of selected countries, 2013, in % (p. 1) Opinion corner How realistic is the construction of the South Stream pipeline in the present circumstances? (by Rumen Dobrinsky; pp. 2) Bulgaria and the Russia–Ukraine conflict rising risks for energy supplies and big investment projects (by Rumen Dobrinsky; pp. 3-6) Romania and the Russia–Ukraine conflict little affected by potential trade and investment disruption, more by political escalation (by Gábor Hunya; pp. 7-10) Bilateral trade between Bulgaria and Romania the upturn after EU accession (by Sándor Richter; pp. 11-13) Recommended reading (p. 14) Statistical Annex Selected monthly data on the economic situation in Central, East and Southeast Europe (pp. 16-25)
    Keywords: foreign trade, dependence, trade, FDI, energy, transit, sanctions, Bulgaria, Russia, Ukraine, escalation, trade, EU accession
    Date: 2014–05
  3. By: Natalie Iakovleva
    Abstract: The main idia of the article is to describe the humanitarian relations of the Altai region and the federal Land of Saxony- Angalt. The item is to represent the difference of the meaning of such words as «humanitarian» and « humanitarian relations». The problem is that there are some differences in understanding of this type of cooperation. In European Union, «humanitarian collaboration» mean protection of human rights, the provision of emergency relief (food supply, rehabilitation of health services, mine soils etc.). But in Russia «humanitarian cooperation» and «humanitarian collaboration» has the same meaning and covers an area of cultural relations, inter-civilizational, civil society dialogue and relations with compatriots abroad. In this case it can play a «soft power» between the Germany and Russian cooperation and regional relations. In the development of regional cooperation between some Germany federal Lands and regions in Russia, author gives us example of such communication and describes the humanitarian relations between the Altai region and the federal Land of Saxony- Angalt. There is a German national region in Altai, which has its own territory, low and budget. People there can choose the school and language of education: Germany or Russian. So, in this article author wants to describe how to make strong political and economic relationship which is basic on cultural and humanitarian communication. The author give us brief information about the history of the in the Altai region, it's participation in joint projects with Germany, learning Germany language as a home language at the local and regional levels in German national region. For the regional development in Russia, existence of a common culture, ethnicity and friendly relations makes cooperation easier and beneficial. It's an example for other regions how to lead international activities and how to make the Regional economic growth up. Actually, this type of cooperation is one of the areas paradiplomacy and for today is a new phenomenon in Russia. And the example of the relations of the Altai region and the federal Land of Saxony- Angalt is an example of paradiplomacy in Europe and America. In this case, author gives us the meaning of such communication in Russia.
    Keywords: G_B; £ _õ
    Date: 2014–11
  4. By: Lubov Larchenko
    Abstract: Abstract. The article deals with necessity and possibility of tourism industry development as the leading sector of territorial specialization of Arctic regions. The problems are considered and strategic directions are defined for the formation and development of the tourism industry in the Arctic regions of Russia. Analysis of foreign experience in tourism development in the Arctic Regions allows to claim that it could be a powerful instrument in the economic development of Russia's Far North regions. In addition, tourist and recreational potential of Russian regions is much richer and more diverse than foreign one, including due to the enormous extension of the zone of Arctic Circle. The interest to Arctic tourism has been increasing in recent decades. This is due to several reasons. Among them are following: glut by traditional types of tourism, growth of amateurs of extreme tourism, the growing popularity of exclusive tours, including trips to the North Pole. Natural-resource potential, historical and cultural heritage, including ethnic and cultural potentials are at the heart of the tourism and recreation potential of Russian Arctic regions. High yield of northern tours, arctic growing demand for tourist products, a significant tourist potential of Russia's northern regions are favorable preconditions for increasing guest flow. The major problems that prevent fuller development of the tourist potential of the Russian Arctic are: ? very limited spacious composition of inbound tourism that doesn't correspond potential polar regions; ? Arctic regions are not remarkable to wide tourist community; ? Process control system of formation and development of the local tourism industry is badly developed in Arctic regions. Problem solving in the Arctic tourism industry is possible with the help of development and implementation of appropriate strategic directions and activities in the tourism sector. The most significant are: ? development promotion of priority species for the Arctic tourism, improvement of traditional and development of new tourism products; ? assistance in promotion of Arctic tourism products to the international and home markets; ? promotion of tourism infrastructure development; ? development of international and interregional cooperation; ? investment and financial provision of the process of formation and development of the tourism industry. Implementation of the above strategy formation and development of the tourism industry of the Russian Arctic regions will promote tourism industry development in these areas as one of the leading (budget-) territorial branches of specialization.
    Keywords: Arctic; travel services; Natural-resource potential; strategy formation and development of the tourism industry;
    JEL: R11
    Date: 2014–11
  5. By: Leonid Limonov; Albrecht Kauffmann
    Abstract: Types of Demographic and Economic Development of Russian Cities in Post-Soviet Period Albrecht Kauffmann, Halle Institute for Economic Research (IWH), Germany Leonid Limonov, Higher School of Economics-St.Petersburg, International Centre for Social and Economic Research «Leontief Centre», Russia Key-words: Urban Systems, Typology, Cluster Analysis, City Size, Balance of Migration, Labor Market, Economic Activity, Poverty Trap, Principle Components. JEL codes: R12, R15, R23 For long time, the applicability of economic theories of cities, urbanisation and urban development as well to Russian cities was hampered by the lack of data beyond population figures. Since 1990, some contributions of Richard Rowland with regard to urban development in Russia referred to certain classes of cities (metropolitan cities, rapidly growing cities, declining cities or secret cities). However, with the exception of secret cities (ZATO), these classifications are derived from purely size characteristics, and are rather descriptive. Also Mykhnenko and Turok (2008) analyse only population figures of 150 East European cities, among them 56 Russian cities. Kauffmann (2010) analyses growth rates of population of about 3000 Russian cities and urban settlements between 1993 and 2004 with regard to the predictions of a certain class of New Economic Geography models. But, since 2004, data for cities with more than 100000 inhabitants (and for some smaller cities with regional capital function, as well) are published by ROSSTAT annually in "Regiony Rossii vol. 3". Applying data from this source, a cluster analysis has been undertaken, where indicators with regard to demography, labour market and geography of 156 cities are included into the variable set. The outcome are 15 clusters that may be well interpreted by principal components. The aim of this cluster analysis is to provide impulses for drawing on theories which may explain Russian urban development. Among principal components 2 most important are natural resources and labor endowment (Eigen Values are 6.2 and 3.2 respectfully). Smaller input in urban dynamics is provided by population change characteristics (Eigen Value is 1.8), the place of the city in urban system hierarchy (1.1) and by the poverty trap situation (0.9). Agglomeration economy has only a weak influence on Russian cities dynamics (Eigen Value is 0.8), it can be identified in cities with more than 1 mln population, in cities of Moscow Metropolitan Region and in principal cities of the Centre and the South of European Russia.
    Keywords: Urban Systems; Typology; Cluster Analysis; City Size; Balance of Migration; Labor Market; Economic Activity; Poverty Trap; Principle Components.
    JEL: R12 R15 R23
    Date: 2014–11
  6. By: Svetlana Sukneva
    Abstract: The author describes the features of the demographic development of the Arctic zone of the North-Eastern region of Russia. The Arctic zone of the North-Eastern region of Russia is one of the most extreme regions of the world. Territories located after the Arctic a circle are included in the Arctic zone. Residence of people on this territory is attended with the whole complex of problems from which we will consider only demographic features. The Arctic zone of the North-Eastern region of Russia includes the Chukotka Autonomous District and half of the territory of the Republic of Sakha (Yakutia). The main reason of population reduction is migration. The population of the Arctic zone travels to places beyond the Northeast and to the central areas of the Republic of Sakha (Yakutia). Reproduction in the region shows a positive trend of natural increase. Relatively high birth rate remains due to higher reproductive attitudes of the rural population. Indigenous peoples of the North predominantly live in rural areas of the Arctic zone. Positive dynamics fertility has been accompanied by negative processes in the demographic behavior of the population. The Arctic areas have the highest rates of illegitimate births and celibacy among indigenous peoples of the Republic of Sakha (Yakutia). The adverse trends were observed in the mortality of the Arctic region. In Russia, in recent years, mortality rates are currently falling. The high mortality rate is observed in the Arctic zone. The reason for this situation is the high level of mortality from external causes, which is one and a half to two times higher than the average rate within the Russian Federation. The solution of the demographic problems is possible only in interaction with the economic policy of the state and the changing socio-economic situation in the Arctic zone. Priority directions to improve the demographic situation in the Arctic should be to reduce mortality and improve active healthy living, migration managements, strengthen the family and increase fertility in marriage. Demographic processes have considerable inertia, so to improve the demographic situation is necessary to preserve the demographic potential of the region and to eliminate the negative trends in demographic processes prevailing in the Arctic zone.
    Keywords: Arctic zone of the North-Eastern region of Russia; region; demographic development; mortality; natural increase; migration;J110; J190; R230
    Date: 2014–11
  7. By: Tatiana Blinova
    Abstract: Rural Mortality from External Causes in Russian Regions Tatiana Blinova ? Doctor of Economics, Professor, Deputy Director on Science of the Institute of Agrarian Problems of the Russian Academy of Sciences (RAS). Svetlana Bylina ? Scientific Researcher. Institute of Agrarian Problems of the RAS Victor Rusanovskiy ? Doctor of Economics, Professor, Saratov State Socio-Economic University Abstract. The paper addresses the factors that affect the reduction of rural mortality from external causes in the regions of RF of different types and contains an estimation of the degree of their impact. We made a quantitative analysis and built models of the factors and determinants of the existing interregional differences in the pattern of rural mortality from external causes of death (road traffic accidents of all kinds, accidental alcohol poisoning, murder and suicide). The paper presents the results of the study of the dynamics and pattern of external causes of rural mortality with the use of Rosstat's data for Russian regions (2000-2012), and describes the nosological, gender and regional profile of rural mortality from external causes. We also identified the social problem, which is a steadily high rate of mortality from external causes in a certain group of regions. We found that the impact of federal social policies on the reduction of rural mortality from external causes is asymmetric in the regions of different types. On the basis of our cluster analysis we developed taxonomy of Russian regions according to the pattern of external causes of rural mortality, formed seven groups of Russian regions and characterized them. The hypotheses were statistically tested by making a correlation, regression and factor analyses. We estimated the regression models that had been constructed for Russia in general and for two types of regions (with the highest and the lowest mortality from external causes) separately and included economic, social and behavioral explanatory variables, which made it possible to identify the determinants of rural mortality from external causes and describe their spatial combinations. The results of the analysis and modeling of spatial differences in the pattern of external causes of rural mortality can be used when developing regional programs for reducing mortality from external causes of death. This study is supported by the Russian Foundation for Basic Research (project # 12-06-00012). JEL Classification: R1, J1, I1 Keywords: Russian regions, rural population, mortality, external causes, taxonomy, regression analysis, regional data, determinants, social policy
    Keywords: Russian regions; rural population; mortality; external causes; taxonomy; regression analysis; regional data; determinants; social policy R1; J1; I1
    Date: 2014–11
  8. By: Leonid Limonov
    Abstract: Suburban Development of St Petersburg: comparison of 2 subjects of Federation long-term visions Leonid Limonov, Higher School of Economics-St.Petersburg, International Centre for Social and Economic Research «Leontief Centre», Russia Key-words: Regional Development, Metropolitan Area, Environment, Suburban, Inequality, City Size, Inner City, Municipalities, Intergovernmental Relations. JEL codes: R11, R12, H77 The paper is devoted to problems of ensuring balanced and sustainable development of a very specific and important metropolitan region of the Russian Federation ? the region of St Petersburg and surrounding it Leningrad Oblast. St.Petersburg (City) and Leningrad Oblast (Region) are both constituent entities of the Russian Federation and part of North-West Federal District. The City and the Region are connected with each other by thousands of various relationships: historical, cultural, socio-demographic, economic, labor, transport and administrative. For a long period of time, the City and the Region were part of a single administrative-territorial entity and had common governance bodies that applied a common approach to their development. With the collapse of the Soviet Union in late 1991 the system that ensured consistent management of the development of the City and Region was destroyed. However, no system was created that could be used to coordinate the development of the City and the Region. In the last two decades, problems between the City and the Region arise increasingly often, many of which cannot be solved on the basis of agreed positions of both parties. In 2012-2013 both Leningrad Region and St Petersburg developed their long-term vision documents: Leningrad Region ? a Concept of Social and Economic Development till 2025 and St Petersburg ? a Strategy-2030. The paper is considering main provisions of these documents and key problems which needs a coordinated approach: 1) relocation of industrial enterprises from the city centre to the region 2) relocation of the part of logistical and transportation operations from St Petersburg to Leningrad Region 3) development of Greater St Petersburg See Port facilities 4) coordinated development of recreational zones 5) transformation of gardening cooperatives ("sadovodstva") into regular settlements (municipalities) with all necessary infrustructure 6) development and financing a system of suburban public transport 7) environmental issues, including solid waste treatment 8) mass housing construction in the region at the border of St Petersburg etc. On the basis of the analysis of statistics and international best practices recommendations are formulated to improve the efficiency of the governance of the region, paying special attention to St Petersburg Metropolitan Area, which includes a number of municipalities, located in Leningrad Oblast.
    Keywords: Regional Development; Metropolitan Area; Environment; Suburban; Inequality; City Size; Inner City; Municipalities; Intergovernmental Relations.
    JEL: R11 R12 H77
    Date: 2014–11
  9. By: Aldashev, Alisher (Kazakh-British Technical University of Almaty); Danzer, Alexander M. (University of Munich)
    Abstract: This paper investigates the economic returns to language skills and bilingualism. The analysis is staged in Kazakhstan, a multi-ethnic country with complex ethnic settlement patterns that has switched its official state language from Russian to Kazakh. Using two newly assembled data sets, we find negative returns to speaking Kazakh and a negative effect of bilingualism on earnings while Russian was the official state language in the 1990s. Surprisingly, the Kazakh language continues to yield a negative wage premium 13 years after it has been made official state language. While we do neither find evidence for an ethnically segmented labor market nor for reverse causality, the low economic value of the Kazakh language can be explained by the comparatively poor quality of schools with Kazakh as language of instruction. Based on PISA data, we illustrate that scholastic achievements are substantially lower for pupils taught in Kazakh, despite the official support for the titular language. Our results suggest that switching the official state language without appropriate investments in school resources is unlikely to cure the economic disadvantage of a previously marginalized language.
    Keywords: bilingualism, returns to language skills, wage premium, language policy, language of instruction
    JEL: J24 I21 P23 O15
    Date: 2014–11
  10. By: Evgeniya Kolomak
    Abstract: We study the dynamics of inter-regional economic disparities for a number of development characteristics, test the hypothesis of the new economic geography and connect the results with the prediction of the bell curve describing spatial concentration over time. The results of our analysis suggest that the concentration of economic activity continues in Russia and that the pace of the interregional divergence is rather high. These findings bring us to the conclusion that the country rests at the left side of the bell-shaped relationship between interaction costs and spatial distribution. Both the western and eastern regions experience centripetal tendencies; however, despite predictions, no essential redistribution of the production factors and outputs from the East to the West is revealed. In other words, first nature (the East's natural resources and raw materials, which are highly valued in the global market) is balanced by second nature (the West's better infrastructure and large markets). The significant factors in spatial concentration and total productivity growth are density, the size of and access to markets and the diversity of the economy. Insensitivity to the diversification is specific to the eastern regions of Russia. There are also sectorial peculiarities: population density and proximity to markets negatively influences; due to the immobility of supply. External markets have no significant effect on construction. Due to fierce competition, sectorial specialization decreases both productivity and the rate of concentration. These results of the estimates are in accordance with the predictions of the new economic geography. One of the practical ideas suggested by this analysis is the conclusion that in the near future, we will observe further concentration of economic activity and interregional divergence in Russia. The forces behind the agglomeration economy and regional disparities are market-based (increasing returns to scale and imperfect competition), and they are beginning to play a major role in the country in the transition and in the post-transition period. Despite the active regional policy and the massive redistribution efforts undertaken by the central government, regional disparities continue to grow. The new economic geography theory describes the mechanisms of agglomeration and provides suggestions for the pro-dispersion forces to countervail centripetal tendencies. Translated into the language of the practical recommendations, they include essential improvement of transport and communication infrastructure, radical decreases in trade cost and the elimination of regional institutional barriers, as well as an active social policy supporting lagging regions.
    Keywords: regional disparities; economic geography; empirical estimates; Russia;
    JEL: R12 O18
    Date: 2014–11
  11. By: Kiyoshi Matsubara
    Abstract: This paper explores the role of FDI-spillover prevention costs in the strategic choice for a MNE of a developed country such as Japan about whether it perform FDI to an emerging economy such as Russia and China and about a degree of FDI spillovers that it allows. After discussing the exogenous spillover case in a duopoly model, this paper shows that with a quadratic prevention cost function, the MNE may choose a positive level of spillovers lower than the benchmark exogenous level, and also shows how endogenizing spillovers affect the home firmÂfs decision on plant location. In the m-FDI-host-country firm case, the effects of the number of FDI-host country firms on the level of spillovers and the cutoff value of trade cost are not always monotonic.
    Keywords: FDI; Endogenous Spillovers; Spillover-prevention Costs;
    JEL: F12 F23 O33
    Date: 2014–11
  12. By: Enrico MARELLI; Elena VAKULENKO
    Abstract: Youth unemployment is a troublesome problem in many European countries. In the first part of the paper, we consider the aggregate trends in some EU countries and in Russia; we especially investigate the recent period after the global crisis and Great Recession. We then consider the different types of determinants, including macroeconomic conditions, structural determinants, labour market institutions and regulations. However, the focus of our analysis is on the role played by individual and family determinants such as age, gender, education level, marital status, health, household income, housing condition. The econometric part of the paper makes use of Eurostat micro-level data EU-SILC for Italy and RLMS-HSE data set for Russia. We consider a Heckman probit model to estimate the unemployment risk of young people in the period 2004-2011. Our main research question is to explain the probability of being unemployed for young people in terms of their personal characteristics and compare these outcomes with results for the same model for adult people. We take also into account some macro variables, such as living in urban areas or the regional unemployment rate. The results are of interest, since the two countries have quite different labor market institutions, besides having different levels of youth unemployment. However, most of the explanatory variables act in the same direction in both countries and it is interesting to compare the relative size of such effects (that we measure through the “average partial effectsâ€).
    Keywords: youth unemployment, individual determinants of unemployment, regional unemployment, Heckman Probit.
    JEL: J64
    Date: 2014–09–01
  13. By: Yana Zausaeva
    Abstract: Historically otkhodnichestvo in Russia was designed as the temporary departure of peasants from their permanent residences in villages to earn money in regions where industry and agriculture were well developed. Preconditions for the development of this phenomenon included rural overpopulation and inability to provide sustenance for peasants' households only through local agricultural activities and homecrafts. Nowadays otkhodnichestvo can be defined as employment outside home municipality, forced by the lack of jobs or by the low level of wages in places of otlhodniks' permanent residence, where they return on a regular periodic basis. Expert estimates of the number of otkhodniks in nowadays Russia vary from 3 million to 15 million households. Such a large-scale phenomenon as otkhodnichestvo (despite its "invisibility" to the state) causes a heavy impact on the quality characteristics of different levels of societies serving as objects of public administration and subjects of local government. But neither the federal level of power nor the regional one fully comprehend the significance of the phenomenon. Sometimes it goes the other way round for the local government, which is the closest one to people: municipalities could be divided into two groups of those who detect otkhodniks and those who don't. But even in those cases when local governments are able to notice otkhodniks it, in fact, cannot be said that otkhodniks are under permanent scrutiny of municipal administrations as they are still mainly on their own. Research into the present day interaction between otkhodnichestvo and viability of municipalities is far from being complete and exhaustive. This paper outlines the interconnection between contemporary otkhodnichestvo and some political, economic and socio-cultural processes at the local level. Influence of otkhodnichestvo on the political and economic life and socio-cultural processes at the local level is of ambivalent nature, which does not allow to unambiguously evaluate if the impact brought on by it is functional or dysfunctional for municipalities. Development of otkhodnichestvo is caused by complex socio-economic reasons and it entails complex implications for the municipalities, to which the phenomenon is immanent. This paper consists of 3 sections, which describe political, economical and socio-cultural relevance of otkhodnichestvo to small towns which are at some level exposed to the phenomenon. The paper draws on various examples of this incoherent impact on small towns, situated in the non-black earth zone regions, where otkhodnichestvo was historically developed.
    Keywords: Demand and Supply of Labor; otkhodniks; local government; self-organization; active population; rental population; political participation; loss of taxes; labor substitution
    JEL: J20
    Date: 2014–11
  14. By: Vladimir Fesenko
    Abstract: Current situation in the Russian economy in the modern period that is reflected in the 'mirror' of the official statistics shows a substantial differentiation of economic and social characteristics of the Russian regions. Largely this situation is based on the current pre-crisis trends of social and economic development, as well as existing opportunities of regional economies self-development to overcome the consequences of the global economic crisis. Region social development is determined by the system of key-figures (indicators), among which there are the indicators characterizing the population size and population structure, and living standards of the population. The demographic situation in the Southern Federal District, which includes the Volgograd region, is characterized by the fact that during the recent years, the region's population has remained almost unchanged, but for the Volgograd region this indicator has stable negative dynamics. Unemployment rate in the Volgograd region was 1% in December 2013. The main indicator of the living standards (standard of well-being) of the population is the individual income. Volgograd region takes the third place among the regions of the Southern Federal District according to this indicator, being slightly behind the Rostov region and considerably behind the Krasnodar Krai. Volgograd region is also behind in such an important part of personal incomes as the amount of average monthly nominal accrued wages of the working population of all the largest developed regions of the Southern Federal District. Thus, the scope and structure of average income of the regions' population, the territorial constituents of the Southern Federal District, is unequal. Such a territorial disparity of income is determined by the level of economic development of the regions, the main determining factor of which is the size of the GRP, including GRP per capita. According to these indicators, the Volgograd region takes a leading position among the regions of the Southern Federal District. The analysis of population well-being social and economic indicators suggests that for the Volgograd region in comparison with other, primarily the largest SFD regions it is harder to overcome the consequences of the economic crisis and in the context of a macro-regional issue currently has a rating that does not correspond to the real potential of development.
    Keywords: Region Social Development Social and Economic Well-being of the Population; Indicators of Social and Economic Well-being; code - R 130.
    Date: 2014–11
  15. By: Zura Kakushadze
    Abstract: We give a simple explicit algorithm for building multi-factor risk models. It dramatically reduces the number of or altogether eliminates the risk factors for which the factor covariance matrix needs to be computed. This is achieved via a nested "Russian-doll" embedding: the factor covariance matrix itself is modeled via a factor model, whose factor covariance matrix in turn is modeled via a factor model, and so on. We discuss in detail how to implement this algorithm in the case of (binary) industry classification based risk factors (e.g., "sector -> industry -> sub-industry"), and also in the presence of (non-binary) style factors. Our algorithm is particularly useful when long historical lookbacks are unavailable or undesirable, e.g., in short-horizon quant trading.
    Date: 2014–12
  16. By: Tatiana Ratnikova; Ksenia Gonchar
    Abstract: The difficulties of agglomeration effects estimation are caused by the problem of unobserved features of heterogeneous cities, industries, enterprises and even employees, related to both the dependent variable (enterprise-level labor productivity) and the specific characteristics of agglomerations. The selection of an enterprise for the analysis of agglomeration effect may result in identification errors, given that an enterprise located in an urban community in a densely populated Western region of Russia will be observationally equivalent to an enterprise in the Siberian rarefied space in terms of its external scale economy if their sizes, specialization, political status and other urban characteristics correspond. We consider that our subject of analysis is nested in several external environments, i.e., that the enterprise is located within a city, that the city is located within a region, and that it is likely that these environments, similar by nature, would work differently, modified in turn by the nature of the enterprise. Another form of self-selection, the exit of less productive firms driven out by intense competition in urban agglomerations, can hardly be disregarded. This form of self-selection is controlled in our research with help of truncated regressions. Therefore, at the regional level of analysis, a measure of the region's involvement in international trade (exports plus imports as a percentage share of the Gross Regional Product (GRP)) is included in regression and then it is analyzing to what extent the power of urban agglomeration effects depend on the location within the region opened to trade and competition. The results suggest that plants in urban agglomerations enjoy 17-21% higher labor productivity. Productivity gained from urban agglomeration is the highest in towns with populations of 100,000 to 250,000 people. This benefit arises as a result of urbanization and external scale economy. Localization and clustering in the city is not associated with higher labor productivity. While regional own-industry clustering satisfactorily explains the productivity premium, suggesting that efficient clustering requires a scale economy larger than only a city. Another result: the urban agglomeration benefit is statistic significant in the firms with middle labor productivity and is absent in high- and low- productive firms. JEL classification: R10, R12, D24 Key words: productivity, city, urban, agglomeration
    Date: 2014–11
  17. By: Vladimir Pakhuchiy
    Abstract: The European North-East is one of the regions of Russia where have remained virgin forests. Firstly that is consequence of difference this territory from southern areas with higher degree of agricultural development. Cutting of forests for charcoal and fuel wood were fulfilled in small volumes. In spite of increase since 30th years of previous century in region volumes of the timber cuttings, all above mentioned are promoted for conservation here of large virgin forest massifs. The basic areas of the European North-East with virgin forests are located in the Komi Republic on the western slope of Ural Mountains, including in territories of National park 'Jugyd-Va', Pechoro-Ilychskiy reservation and its buffer zones. In 1995 those territories were included UNESCO in the List of the world cultural and natural heritage with name "Virgin forests Komi". The bulk of our researches were executed in Komsomolskiy forestry (lesnitchestvo) of Komi Republic. Virgin stands in the basin of river Unja basically concern to bilberry wet and fern forest type. Fir, spruce and sibirian cedar pine are the main trees of stands. Trees form the complex two-three-storied stands. The natural regeneration of the spruce and a fir domi-nate. The undergrowth of an average category of height (0,6-1,5 m) prevails. The average age of spruce is 159 - 199 years. The average growing stock is 170 - 180 m3ha-1. After analysis of definitions «virgin forest» which was done by other author and on the base of investigations we can give own conception for definitions «virgin forest massif» and «virgin stand». On the basis of the executed researches the offer is given at carrying out inventory works to consider incorporation possibility in a category of mountain forests of forests on western and parts of east slope of High Parma. It is recommended to distinguish water protective belts in borders of a catchment basin for a left-bank of upper parts of the Pechora river and for all extent of river Unja. Practical realization of these offers would promote conservation of virgin forests in southeast areas of the Komi Republic, differing by high productivity and rich species composition in comparison with northern and western territories of republic.
    Keywords: European North-East; Komi Republic; virgin forests; preservation of virgin forests.
    Date: 2014–11
  18. By: Kamila Borsekova; Katarina Petrikova; Anna Vanova
    Abstract: Paper deals with the issue of a competitive advantage on the local level, its specifics, factors and a process of its creation, exploitation and building by using unique empirical case study. Through the theoretical knowledge, empirical research results and case study we want to point out how building a competitive advantage on the local level influences the development of the region and building of a strong competitive advantage on the regional level. The main aim of the paper is to define the process of identification, creation, building and exploitation of the local competitive advantage based on internal resources and cooperation and its influence on building the strong regional competitive advantage. The aim of the paper is fulfilled through processing wide theoretical knowledge supported by own empirical research results and an attractive case study. In the first part of the paper the theoretical knowledge about competitive advantage on the local level is processed. There are several theoretical approaches to a competitive advantage. As two basic approaches can be considered a market-based approach to the competitive advantage and a competitive advantage based on resources. A compromise between these two approaches offers demand orientated approach based on marketing places principles. A theoretical part of the paper is supported by the results of own empirical research aimed on identification and exploitation a competitive advantage on the regional and local level, its factors and their importance. The second part of the paper is dedicated to the methodology and results of own empirical research. The empirical research was realized through questionnaire survey by the Delphi method with an expert group consisting of domestic and foreign experts dealing with the issue of competitiveness and a competitive advantage. The third part of the paper summarizes practical implications of theoretical knowledge and empirical research results on the example of creating unique local production system located on the island Olkhon in lake Baikal. A basis for this local competitive advantage creates an excellent location on the island Olkhon inside the Baikal lake near the sacred place for Buryats. This uniqueness together with experienced and skilled human resources, developing and building of cooperation with the local suppliers and great reputation among the travelers from all over the world create strong inimitable competitive advantage. Even this competitive advantage is on the local level; it develops positively the whole island and helps to create the strong regional competitive advantage. The empirical case study is based on own experience gained during the research stay in Siberian Russia. The end of the paper includes conclusions, recommendation and inspiration for a practical exploitation of knowledge and experience contained in the paper.
    Keywords: competitive advantage; internal resources; uniqueness; location; cooperation
    Date: 2014–11
  19. By: Щербанин Ю.А. (Институт народнохозяйственного прогнозирования)
    Date: 2014–11–05
  20. By: Vladimir Akishin
    Abstract: Forest planning is the most important condition for sustainable, continuous, economically efficient and ecological forest use. In North-West Russia, in the Komi Republic in particular, the increasing role of forest planning is based on the obvious need to transfer from the extensive way of forest management and use of primary natural forests to intensive way of secondary reforestated forests management and use. Forest planning in these conditions should provide the required demand in timber under conditions of forest ecological and social importance protection, taking into account the existed spatial structure of the forest fund. Landscape, ecological and economical forest evaluation as a basis for forest planning allows to define secondary forest areas where efficient forestry and economically profitable activities are possible (taking in consideration the pattern structure and spatial heterogeneity of secondary forests, where most of the territory is covered with low-value stands). Forest planning in intensive forestry should be long-term, minimum for one felling rotation period. This requires to work out regional research programmes for forest activities, but allows giving the economical estimation at each stage of forest management, not only by the felling time. Forest planning allows to estimate the costs of forestry activities and to relate to the expected results that are really important for the financial and economical planning at the enterprise. Long-term forest planning guarantees not only economical efficiency, but makes the grounds for forest social and ecological values protection. Forest planning process is dealing with the necessity of various data collection and joint use. Besides forest inventory data, forest planning includes remote sensing data that can guarantee acute and updated information about a certain forest area, allows to specify spatial, age and tree species structure of a forest stand, define a landscape and ecological peculiarities of the planning object, mark high value forests and key biotopes. Modern information technologies based on GIS provide the tools for the complex analysis of information about forests and give opportunities to modeling of expected results and give an opportunity for forest planning to select the optimal way of forest management for a certain place.
    Keywords: Sustainable forest management; forest planning; intensive forestry; forest management and use; remote sensing and GIS; modeling of expected results.
    Date: 2014–11
  21. By: Carola Silvia Neugebauer
    Abstract: The UNESCO world heritage label (WHL) is a contentious topic in local to global public, and it gains in importance for the urban and regional development in Europe for some reasons. So on the one hand, the nominations of European sites as UNESCO world heritage are increasing steadily, and on the other hand the polarization of space is still continuing. Thus, the disparities between peripheral and metropolitan regions and their towns are growing. The need to steer sustainably the economic, demographic and cultural concentration processes in metropolises confronts the challenge in peripheral regions to stabilize and initiate developments. In consequence of these trends the UNESCO world heritage label constitutes a relevant urban and regional topic that refers to conflicting connotations like 'development barrier' and 'source of conflict' on the one hand, and 'chance for development' on the other. To date, however, the potential of the WHL for sustainable urban and regional development is barely investigated. Neither the local socio-cultural, economic and institutional effects of the world heritage status, nor the mechanisms and conditions of its local effectiveness have been investigated in a critical and systematic way. Moreover, there is little research on the local management approaches, how to enhance (save and use) the UNESCO label for sustainable urban development which should be based on the principles of integration, participation and justice. Against this background, a recent research project evaluated the UNESCO world heritage label as potential for urban sustainable development. Mindful of the intertwined local to global contextual dimensions and actor networks it questioned the hypotheses that the spatial (peripheral and metropolitan) context of an urban region and the local actors' concepts and activities towards the WHL do influence the status' impacts on urban development. A special emphasis was given to the analysis of local partnerships, planning instruments and communication processes, tackling the UNESCO label as potential for urban development. Based on a realist evaluation approach that links economic and social theory with comparative case study research in the three European world heritage cities of St. Petersburg (Russia), Stralsund and Wismar (Germany), the project finally proves the WHL as a topic of cross-sectoral importance for urban regions, affecting collaterally political and administrative as well as economic and socio-cultural local processes and structures in a positive or negative way. The WHL constitutes a potential for sustainable urban development indeed, but in dependence on the spatial context of an urban region as well as on the local actors' approaches, how to enhance the WHL. Mindful of these insights, the project argues for spatially differentiated and actor sensitive local management approaches in order to preserve the urban world heritage and to use the WHL for socio-cultural and economic sustainable development.
    Keywords: urban sustainability; UNESCO world heritage label; urban governance; evaluation research
    Date: 2014–11
  22. By: Anastasia Nagirnaya
    Abstract: Spatial diffusion of information and communication technologies (ICTs) is a global continuous accumulative process. But is it uniform or cyclic? Is it possible to skip some of its historical stages? What is a specific feature of the modern stage? Are there any patterns of ICTs interaction? And how do different ICT innovations work on globalization? Based on official statistics on ICTs penetration and traffic (print press, postal service, telegraph, telephone, radio, television, mobile phone, Internet) received from governments (including USA and Russia) and international organizations (ITU, UN, etc.) covering the period of the latest 20--150 years, graphs and maps have been generated and the following results have been obtained. The study has shown that ICTs diffusion is wave-like in the long term. As a rule, new innovation waves accelerate a decline of the old ones. But in some cases, when waves of different ICT generations overlap, a "resonance effect" appears caused by the inertness of ICT infrastructure. Detailed analysis of mobile telephony diffusion in correlation with fixed telephony and Internet revealed a fact that advanced ICTs development can make it possible for developing regions to skip certain stages of informatization and even implement an "overcoming" scenario of catching-up development. Specific feature of the modern stage is ICTs convergence: an integrated universal system of global digital communications is being developed on the Internet basis. It is an outcome of the modern globalization age, just as telegraph formed the 1st global information network in early globalization epoch. According to our research of different ICTs' traffic structure, each next generation of ICT innovations provides more international communicative openness (defined by a share of international traffic in a total traffic volume). In the modern world only 4% of the global telephone traffic is international, just 1% of the traditional postal mail crosses international borders. Another trend has been discovered for the Internet traffic, 46% of which is international, and this share is growing rapidly. Thus, when moving from traditional to the newest ICTs, a spatial scale of communication grows from mostly local to international, and international traffic is constantly migrating from traditional to the newest telecommunications. This study expands the understanding of ICTs diffusion process, presenting it in a long term and in an integrated manner, and its results could be important for informatization policies and strategies elaboration.
    Keywords: innovations diffusion; information and communication technologies; telecommunications
    Date: 2014–11
  23. By: Ilya Raskin; Roman Amburtcev
    Abstract: Sharp conflict between the government and the opposition, as well as between different regions of Ukraine in the recent past has led to tragic consequences. The resolution of existing in Ukraine, and the underlying conflict, regional differences, according to the authors, is possible if the country stays unified. The reform of state and municipal government, based on the principles of decentralization and deconcentration of power and fiscal powers can be the key to resolving contradictions. The modern theory of state and municipal government usually considers local government through the prism of concepts such as decentralization and deconcentration of state power. Deconcentration and decentralization have a number of common features, being 'two different types of movement authority to the local level' . At the same time, there are a lot of important differences between them. 'Deconcentration - said J. Wedel - this is only management technique, which by itself is not equivalent to the development of democracy, because it keeps the entire administration at the disposal of the central government or its representatives'.Deconcentration reforms have 'management, not a political sense: geographically the managerial apparatus is close to the citizens, but there are no powers conferred on themâ?Â. During decentralization the authorities from the government as an entity legal go to â??another entity legal which is the local management team - a municipality or department, or government agency', while at the same time, decentralization of power does not mean turning to federalism. As noted by J. Wedel, if decentralization 'leads to public entities - other than the State - these public entities are purely administrative and do not have a legislative or judicial power'. Simultaneously, the project concept contain a reverse approach, according to which at the level of regions and districts the state executive authorities is saved and appointed by and accountable to the President of Ukraine. Implementing the governmental local policy, these bodies are part of deconcentration of authority. The concept of reform presents a position, according to which the state administration will have the right to cancel the decisions of local authorities, and only then apply to the courts to establish the illicit nature of canceled orders. This practice, according to the experts, is a mechanism for the actual subordination of local government to the territorial public administrations. Thus, the concept of reform simultaneously contains multidirectional movement - to strong municipalities and municipalities, built in the vertical state. This uncertainty is the most significant risk because a potential increase of conflicts of such a system will lead to its malfunction.
    Keywords: Municipal; government; conflict; reform;
    JEL: H11
    Date: 2014–11
  24. By: Hofman, Irna; Visser, Oane
    Abstract: After more than two decades of agrarian change in Tajikistan, farming structures seem to crystallise. The first signs towards farm individualisation were observed only around 2000, which were the result of significant pressure from outside, when the post-conflict state was highly susceptible to pressure from multilateral institutions. Over time, striking differences in agrarian structures have emerged nation-wide; from highly fragmented, autonomous farms, to elite-controlled large-scale cotton farming. In this paper we analyse and describe the Tajik path of reform, and locate the Tajik case amongst the other reformers in the CIS. We use a political economy and geographical approach to understand the way in which different geographies of transition have emerged in the aftermath of the Soviet collapse. Particular pathways of reform are conditioned by geographical factors, in which in turn, a local political economy comes into play that further shapes the emergence of particular farm models over time.
    Abstract: Nach mehr als zwei Jahrzehnten der postsowjetischen Transformation in Tadschikistan scheinen sich (verschiedene) Strukturen in der Landwirtschaft heraus zu kristallisieren. Die ersten Anzeichen in Richtung einer Individualisierung waren erst im Jahr 2000 zu erkennen. Dies geschah vor allem aufgrund erheblichen Druckes von außen, als der Post-Konflikt-Staat anfällig war für den Druck von multilateralen Institutionen. Im Laufe der Zeit entstanden landesweit markante Unterschiede in den Agrarstrukturen. Diese reichen von stark fragmentierten, autonomen Betrieben, bis hin zu Eliten-gesteuerte Großbetrieben in der Baumwollproduktion. In diesem Beitrag analysieren und beschreiben wir den tadschikischen Weg der Reformen und vergleichen den tadschikischen Fall mit anderen postsowjetischen Ländern. Wir verwenden einen politisch-ökonomischen sowie einen geographischen Ansatz, um die Art und Weise von Landreform und Agrartransformation zu verstehen. Der Verlauf der Reformen ist bedingt durch geographische Faktoren. Hier entwickeln sich wiederum lokale politische Ökonomien, die weitere Formen von bestimmten Bauernbetrieben prägen.
    Keywords: agrarian change,political economy,former Soviet Union,Central Asia,Agrartransformation,politische Ökonomie,ehemalige Sowjetunion,Zentralasien
    JEL: Q10 Q15 Z1
    Date: 2014
  25. By: Fang , Yiwei (BOFIT); Hasan, Iftekhar (BOFIT); Li , Lingxiang (BOFIT)
    Abstract: The dynamic banking reforms of Central and Eastern Europe (CEE) following the collapse of the Soviet Union provide an ideal research setting for examining the causal effect of institutional development on financial reporting. Using five earnings quality measures, we consistently find that banking reform improves accounting quality and reduces earnings management incentives in the 16 transition countries considered. The results strongly hold in our within-country and difference-in-difference models, as well as in non-parametric analyses. We also find supporting evidence for the notion that excessive risk-taking of banks impairs earnings quality. As a result, banking reform improves earnings quality partially through its ability to curb risk-taking behavior.
    Keywords: earnings management; earnings quality; institutional development; bank risk-taking
    JEL: E50 G15 G18 G38 M41 M48
    Date: 2014–12–02
  26. By: Yulia Shitova; Yury Shitov
    Abstract: The distance and time of home-workplace commuter journeys of more than 700,000 workers in the Moscow region have been determined by GIS techniques using data from the year 2001. This has allowed visualization of commuting patterns in the Moscow region in the framework of a geospatial approach and an analytical study of their individual characteristics. The topicality and perspectives of the proposed innovative analysis techniques of commuting patterns are discussed.
    Keywords: Commuting; agglomeration population flows; structural change; transport problem
    JEL: R14 R23 R58
    Date: 2014–11
  27. By: Anchorena, Sergio Oscar
    Abstract: En el trabajo se analiza el surgimiento de los nuevos bloques supranacionales, "acercados" por el desarrollo de las nuevas tecnologías de la información, la comunicación y el transporte, que desdibujan las relaciones basadas en la vecindad, para establecerse a través de vínculos comerciales y financieros. En este marco, los "nuevos bloques" se explicarían como un intento de inmunizarse contra los contagios centro-periferia. Se estudia el caso BRICs y se discute su eficiencia como un mecanismo de inmunización frente al contagio de las crisis originadas en los países de América del Norte y de Europa. Finalmente, se discuten los elementos de poder que se ponen en juego en las estrategias de integración que se establecen.
    Keywords: Ciclos Económicos; Crisis Económica; Integración Económica;
    Date: 2014–11
  28. By: World Bank Group
    Keywords: Finance and Financial Sector Development - Access to Finance Finance and Financial Sector Development - Currencies and Exchange Rates Economic Theory and Research Private Sector Development - Emerging Markets Finance and Financial Sector Development - Debt Markets Macroeconomics and Economic Growth
    Date: 2014–09

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.