nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2015‒01‒03
25 papers chosen by

  1. Northern Investment Risks in Human Capital Formation: Russian Experience By Elena Kotyrlo
  2. Russian sub-national actors: paradiplomacies in the Arctic region By Alexander Sergunin
  3. The Impact of Oil Prices, Total Factor Productivity and Institutional Weakness on Russia’s Declining Growth By Kuboniwa, Masaaki
  4. Immigration & Ideas: What Did Russian Scientists 'Bring' to the US? By Ganguli, Ina
  5. Federative relations and Russia space problems By Leonid Vardomskiy
  6. Comparative competitiveness of Russian regions: the main factors and modern trends By Andrey Polynev
  7. Assessment of innovation potential for Russian regions By Stepan Zemtsov
  8. Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT By Uduak Akpan; Salisu Isihak; Simplice Anutechia Asongu
  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. Modern trends and risks in the development of resource regions of Russia By Irina Ilina; Carol Scott Leonard; Evgenij Pliseckij
  11. Toolkit to estimate the organizational structure of Arctic industrial complexes By Olga Tarasova
  12. Cost-effectiveness analysis of Ukrainian banks using the DEA method By Kryklii, Olena; Pavlenko, Ludmila; Podvihin, Sergei
  13. Assessing the readiness of BRICS grouping for mutually beneficial financial integration By Bonga-Bonga, Lumengo
  15. Economic growth outlooks in sub-federal development strategies: prospects and constraints By Larisa Melnikova
  16. Innovation development and the emergence of fast-growing companies in Russian regions By Alla Sorokina
  17. Formation of steady competitiveness of regions on the basis of the perfection of risk management By Elena Anokhina
  18. Los efectos de las transformaciones agrícolas en los antiguos países socialistas: Algunas consideraciones para Cuba By Gonzalez Corzo, Mario
  20. Population Allocation in Resource-Based Economy Areas and Entrepreneurship Support By Evgenya Bukharova; Irina Vorontsova; Irina Ferova; Ludmila Vitkovskaya
  21. The ecological city between future and memory: a great opportunity to rethink the world By Stefano Aragona
  22. Socio-cultural sphere: governance in new economy and impact on city branding By Vadim Pashkus; Natalia Pashkus; Anna Bulina
  23. ?Green economy? and spatial development of remote northern regions By Igor Shevchuk; Evgeny Zhirnel
  24. In Search of Opportunities? The Barriers to More Efficient Internal Labor Mobility in Ukraine By Koettl, Johannes; Kupets, Olga; Olefir, Anna; Santos, Indhira
  25. Accounting for the Size of Nations: Empirical Determinants of Secessions and the Soviet Breakup By Marvin Suesse

  1. By: Elena Kotyrlo
    Abstract: Historically, the northern Russian regions have been an object of a special socio-economic policy, united by extreme climate conditions, geographical isolation and rich natural resources reserves. Northern investment risks in human capital formation are proposed in the paper, as an indicator of investment conditions, which can be employed to improve policy of human development in the northern regions of Russia. Northern investment risks encompass uncertainties associated with extreme northern climate conditions, historically determined allocation of resources in the Russian northern regions and restrictions on labour mobility caused by geographic isolation and administrative rules. Investment risks in human capital, its measurement, methods of estimation are considered. Empirical estimation illustrates higher investment risks in the northern regions. Method of estimation can be employed widely to compare investment conditions in imperfect economies. Policy of insurance of private investment risks and current restrictions on it's implementation in the northern regions of Russia are discussed.
    JEL: D81 J31 J38 J78 R59
    Date: 2014–11
  2. By: Alexander Sergunin
    Abstract: The paper aims at examining Russian sub-state units' Arctic 'foreign policies'. The paper starts from discussing which theories are applicable to explaining the phenomenon of paradiplomacy. Particularly, the paper focuses on the following strategies/methods of paradiplomacy: making direct agreements with international partners; attracting foreign investment; creating regions' positive image; cooperation with international organizations; establishing representative offices in foreign countries; city-twinning; participation in Euroregions and other sub-regional arrangements; capitalizing on national diplomacy and federal infrastructures, etc. The institutional framework available for the sub-state actors in the Arctic region is examined. The implications of paradiplomacy for Russia's Arctic strategy are analyzed.
    Keywords: subnational units; Russia; paradiplomacy; Arctic;
    JEL: F59 H77
    Date: 2014–11
  3. By: Kuboniwa, Masaaki
    Date: 2014–11
  4. By: Ganguli, Ina (Stockholm Institute of Transition Economics)
    Abstract: This paper examines how high-skilled immigrants contribute to knowledge diffusion using a rich dataset of Russian scientists and US citations to Soviet-era publications. Analysis of a panel of US cities and scientific fields shows that citations to Soviet-era work increased significantly with the arrival of immigrants. A difference-in-differences analysis with matched paper-pairs also shows that after Russian scientists moved to the US, citations to their Soviet-era papers increased relative to control papers. Both strategies reveal scientific field-specific effects. Ideas in high-impact papers and papers previously accessible to US scientists were the most likely to "spill over" to natives.
    Keywords: high skill immigration; citations; innovation; Russia
    JEL: J40 J61 O33
    Date: 2014–11–19
  5. By: Leonid Vardomskiy
    Abstract: Benefits of federation are in more flexible use of the social and economic potential of its subjects at wide inter-regional competition. The federal system allows to use effects of either greater economic space or more complete considering of local conditions and interests. Specificity of modern Russian federalism lies in the history of the formation and organization of its space. Russian history is a history of over-centralized state, which however considered the specificities of individual territories . Introduction of federalism in a state management practices in Russia in early 1990s. occurred in the wave of democratization, but excluding the condition of Russian economy and inherited status of the Russian state space. Strong regions won from the devolution to the RF regions, but it was the result of unequal conditions in which the subjects of the federation were in the market transformation and dissolution of the USSR. Among economic reasons of recentralization in 2000 are growing regional disparity , payments crisis, regional protectionism , the contradictions between the center and the regions about the financial and production assets . In the most critical moment of market transformation economic disintegration of the space of the country began to amplify. Business - elite close to the authorities , seek to free hands in resources development and their export. Request to strengthen the central government came also from the management of economically weak RF subjects who needed financial support from the federal budget. After the restoration of the vertical of power in relations with the regions intergovernmental transfers became the main instrument of the federal government. Huge volume redistribution operations have become a key element of regional policy . Built vertical power was aimed at neutralizing possible political and social consequences of divergence space growth, but not the reasons for its cause. Today federal relations are in a certain accordance with a level of the Russian economy and its spatial structure. The introduction of more democratic forms of federalism without appropriate technological and structural changes in the economy of the RF subjects can create more problems than positive effects. To change the system of power , it is necessary to change a space and the technological base of the economy. Change of the space requires joint efforts of all levels of government and local communities. The task of the central government is to organize their partnership , using political , economic and social institutions .
    Keywords: federalism Russia space development competition;
    JEL: H77 R12 F01 F15
    Date: 2014–11
  6. By: Andrey Polynev
    Abstract: The study presents the results of multifactorial integral evaluation of the economy competitiveness of regional (the subjects of the Russian Federation) in 2010-2013. Regional competitiveness is seen as actually implemented competitiveness in real market conditions, from a perspective of practical implementation in the current economic activity of the entire complex of competitive advantages and limitations of economic growth of regions. This approach to definition is conceptually different from the content interpretation in other analytical studies characterizing competitiveness exceptionally as a potential competitive ability. An important feature of the assessment of regional competitiveness in this study is a priority not only achieved its comparative level of characteristics, but also their current dynamics. This assessment of the regions is carried out on the basis of the calculation of the integral index of competitiveness, which allows comparing its current level, not only with other regions, but also with average Russian background. Integral index of competitiveness of regions synthesizes assessments due to the most important components, including the overall effectiveness of the regional economy, the level of real income of the population, investment activity of private investors, the level of small enterprise development, the current financial standing of the enterprises, the level of activity of enterprises in the international commodity markets, the level of fiscal capacity of the regions, the innovative activity in the regions. For each component of regional competitiveness the most representative indicator has been identified. This indicator is built on the basis of statistical reporting on the Russian regions. The results of the calculations showed a significant differentiation of the current level of competitiveness of Russian regions. On the one hand, the leading position occupied the major economic centers of the country, the cities of Moscow and St. Petersburg, a number of industrialized regions of the Central Volga and Urals federal districts, as well as some regions of Siberia and the Far East, specialized on the production of hydrocarbons and non-ferrous metals. On the other hand, the extremely low level of the current competitiveness of the economy observed in several regions of the European part of Russia, in the North Caucasus, in the border regions of the eastern part of the Russian Federation. Along with this assessment of trends in regional competitiveness in recent years reflects the stable character of the serious problems in the competitive development of the economies of the majority of Russian regions.
    Keywords: competitiveness of regions; integral assessment of regional competitiveness; components of regional competitiveness; integral index
    Date: 2014–11
  7. By: Stepan Zemtsov
    Abstract: Innovation development is declared as one of the key objectives of social and economic policy in Russia. The purpose of the work was to identify regions with the highest innovation capacity and developed regional innovation system, where support of innovation activities would be the most effective. The hypothesis was that innovation capacity can be expressed as a probability function, which dependent on density and concentration of innovators and intensity of their interaction. Taking in account the hypothesis, gravity model of patent activity per capita was used to estimate creative potential of Russian regions. Patent activity in Russia declined significantly from 60000 granted patents in 1989 to 22500 in 2012. The largest cities and closed science cities are still the sources of new technologies, but activity in the Moscow core decreased from 230 to 30 patents / 100 thousand residents in 1999. Patents are not innovations in the full sense of the term, because they may not be implemented. The official Russian statistics is not perfect because of optionality of statistical forms filling. Most of approaches for capacity assessment in Russia based on index compilation and have several disadvantages: correlation between indicators, non-normal distribution of indicators, etc. Considering the disadvantages the author collected a database of 38 indicators of innovation sphere, and conducted normal distribution, correlation and factor analyses. The indicators of the first factor are: estimation of economic-geographical position; percentage of residents in cities with population more than 200 thousand people (%); percentage of people with a higher education (%), number of university students per 10 thousand people; percentage of employees in R & D sector in total employment (%); number of registered patents per 1000 employees; percentage of organizations with a website (%). Six groups of regions were identified: ?innovation core' (index = 1 ? 0.7); ?highly developed' (0.7 ? 0.6); ?regions with a strong science sector' (0.6 ? 0.5); ?regions of basic sectors of the economy' (0.5 ? 0.4); ?regions with limited potential' (0.4 ? 0.3); and ?peripheral regions' (less than 0.3). To prove the correctness of the chosen indicators probit-regression between the index and international PCT-applications was made. The regression results are compared with the results for other existing indexes. The probability of new technology generation in Moscow among all regions close to 1, and it is close to zero in Chukotka. The work has confirmed the hypothesis of high concentration of potential in major agglomerations and research centres.
    Keywords: Innovation; potential; regions; development;
    JEL: R12
    Date: 2014–11
  8. By: Uduak Akpan (Association of African Young Economists); Salisu Isihak; Simplice Anutechia Asongu (Association of African Young Economists)
    Abstract: This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socio-economic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS.
    Keywords: FDI, determinants, fast-growing economies, BRICS, MINT
    Date: 2014–07
  9. By: Aldashev, Alisher; Danzer, Alexander M.
    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: Irina Ilina; Carol Scott Leonard; Evgenij Pliseckij
    Abstract: This paper, part of a larger project on governance and growth in Russia. It deals with the problems and priorities of the future development of primary producer regions of Russia. We design a regional strategy for socioeconomic development to 2025-2030. The analysis concerns growth and diversification of the economy of regions, where raw materials are abundant, in order to scale back the exploitation of mineral resources and diversify the economy. Almost all strategies involve a gradual change of the vector in the direction of modernization and diversification of the economy. We emphasize that the important role here is for a new regional policy. The paper examines regional financial resilience in Russia in the period following the global financial crisis. The level of risk is rising, as government emergency finance is withdrawn and regions face rising debt to cover even operational expenses, but "resource" regions seem securely well off, despite having been most affected by the financial crisis. This paper examines one region, Khanty-Mansiysk autonomous okrug (KhMAO), the largest "donor" to the federal budget, against the background of other mineral resource abundant regions. It traces developments since the dramatic budget reforms (late 1990s through 2005), including centralization of revenues and rationalized program expenditure (Alexeev and Weber 2013). It assesses regional budget and debt management in response to pressures from increased federal required expenditures, post-crisis withdrawal of subsidies, and the roll-out of new debt guidelines. It describes and explains KhMAO's stability and relative autonomy in these crisis conditions. The key questions are: Why are these "donor" regions, more affected by the crisis than others, also more resilient? Is Russia's growth core of regions financially stable because of federal intervention? How vulnerable is the resource region to future oil price shocks? Our findings are tenative, since there remain questions about transparency and soft budget constraints (Plekhanov 2006). We show federalism at its most cooperative: among other factors, regional collaborative action fosters flexible budgeting. In the longer run, the resilience of resource regions, such as KhMAO, with their overall steady growth, despite volatility in oil prices, arguably is due geopolitical factors, which attract energy producers and industrial giants other than in the oil sector, and the business environemnt, including steady maintenance of a higher standard of living and skills attracted in new clusters, which are supported by innovation-oriented budgets. The findings here, however, also include, even more fundamentally, an evolvinig cooperative federalist agenda, with groups of regions acting together to secure negotiated decisions on tax allocations and spending requirements. Supportive of the conclusion in Chebankova (2008), the term adaptive federalism applies to finance, and compels a rethinking of the concept of fiscal rigidity as applied to the Russian Federation.
    JEL: R58 R51 H70
    Date: 2014–11
  11. By: Olga Tarasova
    Abstract: Severe climatic conditions, low population density, lack of infrastructure leave as the only possible nodular economic development of Arctic territories of the Russian Federation. In this case, a natural question arises: how to define points of growth, how to delineate those "patches of economic activity"? In today's economic conditions, growth points for Arctic territories will be resource projects. Analysis of the mineral complex projects in terms of minerals markets, as well as alternative approaches of transportation and energy supply stands for the main objective of the study. Necessity of active use of administrative and financial resources of the state, interdependence of projects and other characteristics of the new Arctic industrial complexes allow a methodological analogy with the classical TPC-approach. Proposed by the author earlier the system of arctic aqua territorial production complexes in this paper develops in the direction of the internal structure justification. At the first stage priority projects were highlighted and second stage projects listed. Then different variants of their realization were modeled. The constructed simulation model allows a comparison of costs and effects for business, regions and Russian Federation as a whole. Investment costs certainly will need to be distributed between actors of regional development, as conditions of economic activity require a widescreen public-private partnership in the Arctic. For the convenience of variant evaluation a "situation room" (specific interface of the model) was designed, the calculation results were visualized on the map. For justification of state expenses into Arctic infrastructure serve geostrategic factors. However, share of state participation required in terms of the commercial attractiveness of the projects could be defined in the simulation model framework. In this study effectiveness of various instruments of state support was estimated, the amount of government subsidies for domestic raw material supplies from said objects was calculated. The model includes blocks of individual projects, as well as built relationships within industrial complexes. With its help options of internal structure of the Taimyr-Yakutsk ATPC were evaluated. The priority projects here are Tomtorskoe field of complex niobium and rare earth ores and Popigai field of industrial diamonds. Having a wide range of applications in high-tech industries, those could give rise to the Russia' innovative development. It was determined that the priority transport infrastructure projects should be: ports Uriing-Khaya, Hatanga, Yenisei-NSR system objects, on deposits should be organized decentralized energy supply - separate electric station with diesel fuel. Also found that using the redistribution of effects the competition of neighboring regions for investment resources should be neutralized - the Krasnoyarsk Territory (as the leading party) and the Republic of Sakha (Yakutia). The author recommends the correction of development programs of the Russian Arctic regions based on the above aspects.
    Keywords: aqua-territorial production complexes; project evaluation; simulation modeling;
    JEL: R12 O22
    Date: 2014–11
  12. By: Kryklii, Olena; Pavlenko, Ludmila; Podvihin, Sergei
    Abstract: The purpose of this study is to determine the scale, technical and overall efficiency of the banking system of Ukraine using the DEA method in dynamics in the post-crisis period. The DEA method belongs to the group of non-parametric methods based on front’s technology analysis and allows considering the totality of impacts both the input parameters (resources) and output (products / services). The structure of banks included 24 banks of Ukraine with total assets amounted to 806.7 billion UAH (72 % of banking system assets). Banks were classified into state-owned banks and banks in which the state has a controlling interest, banks with domestic capital, banks with Russian capital and banks with foreign capital (excluding Russia). Empirical data analysis demonstrated that over the period of analysis the effectiveness of large-scale banks increased, while pure technical remained at a moderate level. Most of the banks included in the sample operate with average effective or ineffective.
    Keywords: the scale, technical and overall efficiency; the banking system; DEA method.
    JEL: C14 G21
    Date: 2013–12
  13. By: Bonga-Bonga, Lumengo
    Abstract: This paper assesses the extent of the transmission of equity market volatility shocks between BRICS (Brazil, Russia, India, China and South Africa) countries to infer the degree of risk sharing and the possibility of a beneficial financial integration between its member countries. The paper makes use of the spillover index methodology suggested by Diebold and Yilmaz (2012) to this end. Nonetheless, the paper extends this methodology by making use of ex ante volatility measures that account for long memory in equity markets. The paper finds asymmetric influences between BRICS countries in relation to the cross transmission of risks. The finding of the paper implies the possibility of unequal benefit that could result from a possible capital market liberalisation between the BRICS countries.
    Keywords: BRICS, financial integration, capital market liberalisation, spillover
    JEL: C10 G15
    Date: 2014–12–10
  14. By: Popov, Vladimir
    Abstract: Why even after the dramatic increase in inequality in the 1990s and after the emergence and enrichment of “oligarchs”, the alternative (leftist, social democratic) economic policies that could have improved material and social wellbeing of the majority of the population is not supported by this majority? It is argued that in immature democracies (without efficient restrictions for the participation of private capital in politics) mass media and electoral campaigns are controlled by the rich, so there is vicious circle: market reforms and private property create the class of the wealthy (“oligarchs”) that are not only interested in these reforms, but also have power to maintain their political and eonomic might through mass media and democratic elections. The return of public opinion to the “norm” so that it reflects interests of the majority is possible only if mass media and political process are separated from private capital and private financing. =================================================== Почему после резкого увеличения неравенства в 90-е годы прошлого века, после появления и стремительного обогащения «олигархов», альтернативная (левая, социал-демократическая) экономическая политика, которая могла бы улучшить материальное и социальное положение значительного большинства населения не поддерживается этим большинством? В статье доказывается, что в условиях незрелой демократии (без эффективных барьеров для участия частного капитала в политике) средства массовой информации и избирательные кампании контролируются владельцами крупных состояний, так что возникает замкнутый круг: рыночные рефоры и частная собственность рождают класс богатых («олигархов»), которые не только заинтересованы в этих реформах, но и обладают рычагами поддержания своего экономического и политического влияния через СМИ и демократические выборы. Возвращение общественных предпочтений к «норме» – к стереотипам, отражающим интересы большинства, возможно лишь при отделении СМИ и политического процесса в целом от частного капитала и частного финансирования.
    Keywords: Public opinion, transition from socialism to capitalism, inequalities, elections, mass media
    JEL: H00 P26 P3
    Date: 2014–08–08
  15. By: Larisa Melnikova
    Abstract: Inconsistencies in targeting and forecasting during the process of strategic planning in regions?subjects of Russian federation is atopic of the paper presented. It presents the results of analysis of regional strategies of long-term socio-economic development performed for federal subjects of Siberian and Far Eastern federal districts as well as for a group of largest federal subjects and macro-regions of Russia. The set of regional strategies may be considered as a unique sociological survey in which regions perform a role of interviewed subjects. A method of testing strategic documents of federal subjects in terms of their consistency and availability of resources is presented. The method involves a) analysis of targeting in sub-federal strategies; b) aggregation of isolated forecasts of subjects of the same federal district; c) a comparison of the aggregate of independent sub-federal strategic forecasts with the complex long-term spatial forecast of socio-economic development of Russian economy. The authors of regional forecasts have an advantage of local knowledge, of the economic situation, but they are not able to account all resource constraints that arise when intersectoral and interregional relations between production and exchange of goods in the economy (or within a larger macro-region) are analyzed. Such possibility is provided by the use of a national and spatial input-output models unified in the model complex. It provides forecasts in the cut of 8 federal districts (including Tyumen) and 40 economic activities. This result confirms the assumption of a lack of validity of regional administrations' investment plans. According to the forecasts based on OIIM, in the years 2006?2020, the Russian economy is unable to provide investments stated in regional forecasts. The results of a comparative analysis of the resource security of regional strategies and a verification of independent regional GDP growth forecasts by regions of Siberia, Far east and other macro-regions showed a potential of interregional competition for labor and investment resources. It is shown that a regional strategy is often used as a means of competition with other regions for federal resources. The basic problems are formulated that should be solved in order to make regional strategies actually important element of improving the system of regional governance and the document of public consensus between the government, business, and the population in respect of key issues of regional development.
    Keywords: Consistency of sub-federal forecasts; long-term development strategies; regional growth;
    JEL: D78 R11 R15 R58
    Date: 2014–11
  16. By: Alla Sorokina
    Abstract: In my presentation I would like to describe the results of a RANEPA team research project in which I am participating. The main object of presented research is factors that determine companies' growth. The research area is limited by companies that achieved high-speed growth by improving their competitiveness and not as a result of market extension. There are a vast majority of studies that search for determinants of companies' competitiveness (description is presented in the overview article "P. Mohnen and B.H. Hall. Innovation and Productivity: an Update / Eurasian Business Review, 3(1), 2013, 47-65"). Most of them indicates that implementation of different types of innovations (product, process, marketing and organizational) are important for firm's growth. I would like to present the results of econometric and statistical analyses of internal and external factors that influence on company's growth rate. There is strong evidence that emergence of high growth companies (gazelles) is more likely in regions that are famous for their innovativeness. It is an external factor which could be called "appropriate environment for high growth firms". Statistical analyses of regional data demonstrates existence of correlation (coefficient of correlation exceeds 0.5) between the number of high-growth companies and such indicators as "The number of researchers per 10 000 people" (k = 0.59), "The ratio of number of PCT applications to the economically active population" (k = 0.56), "The share of employees with higher education in the total number of population in economically active age" (k = 0.55) and "The ratio of the number of applications for inventions submitted to the Russian Patent Bureau by national applicants, to the economically active population" (k = 0.52). The next step of analysis was to examine intramural factors that determine companies' growth rates. We used closed data collected via national survey of high growth innovative companies ("Rating-TechUp" that was completed in 2013 year - Econometric analysis provided evidence that the mains intramural factor that determine company's growth rates are share of new (innovative) production in the company's overall sales and expenditures on education of company's staff. Determined external and intramural factors could be used for elaborating recommendations for implementation of industrial policy in Russia.
    Keywords: high-growth companies; gazelles; innovative regions; determinants of competitiveness
    Date: 2014–11
  17. By: Elena Anokhina
    Abstract: Effective, balanced development of regions is one of the major factors of economic growth of any country, both in macroeconomic stability, and in functioning of national economy in the conditions of world crisis. Occurring on a boundary XX and ÕÕI centuries transformation of economy of the developed countries, led to financial and economic crisis 2008-2009, proceeding uncertainty of tendencies of development of the world economy, begun after the long period of reduction repeated deepening of an inter-regional inequality in regions and countries of the world testify for the first time about necessity of search of approaches to formation of a new paradigm of management by the states and regions. Monitoring of social and economic development of regions of Russia in an economic crisis has shown that crisis processes occurred to different speed and in different degree influenced financial, economic and social sphere in regions with different level of the social and economic development, belonging to various typological groups. The most competitive, developed regions in Russia in crisis have tested the greatest recession in economic and social spheres. The similar tendency was observed in the countries of the world. In a number of the countries taking the advanced places in ratings of competitiveness, made by the International Institute for Management Development (Switzerland) and the World Economic Forum, in an economic crisis observed deep recession of economy. It means that competitiveness was not steady. It testifies that at definition of prospects of development of the countries and regions, at the decision-making, defining strategy of development of the countries and regions dangers, which can threaten social and economic development of the country or region at changes of the external and internal environment, have not been developed anti-recessionary strategy. The financial and economic crisis which has begun in Russia in 2008, has shown necessity of introduction for the theory and practice of regional strategic management of such concept as «regional risk». Working out of the concept of strategic regional management, taking into account regional risks is the really way to the sustainable competitiveness of countries and regions. This concept can be a basis for joint researches in the field of perfection of management by regions as the strategic approach is actual for the present stage of social and economic development and this approach never was key in realised in the countries of the world concepts of regional development.
    Keywords: R38 - Government Policies; Regulatory Policies;
    JEL: R58
    Date: 2014–11
  18. By: Gonzalez Corzo, Mario
    Abstract: This paper examines the principal agricultural transformations in a selected group of former socialist countries in Asia and Eastern and Central Europe, using commonly-accepted indicators such as physical output, labor productivity, and agricultural yields, and offers some relevant recommendations for Cuba. The countries included in this study are: China, Vietnam, Russia, Ukraine, Estonia, the Czech Republic, Hungary, Poland, Bulgaria, Rumania and Slovenia. Section one presents a brief introduction. Section two analyzes the role of agriculture in the (post-socialist) transition countries included in the study. This is followed by a detailed analysis of general trends and indicators such as output, labor productivity, and agricultural yields in these countries during the first decade of agricultural transformations. Finally, section four discusses the relevance of these experiences in the case of Cuba within the context of the ongoing process of “updating” the country’s (socialist) economic model.
    Keywords: Agriculture, Cuba, economic reforms, transition economies
    JEL: P2 P25 P3 P32
    Date: 2013–12–31
  19. By: Pavel Ratner
    Abstract: Nowadays Russian government pays a lot of attention to solutions of the high energy intensive production system in the country. The key factors of low efficiency of regional energy saving programs is the lack of approved standards and algorithms in the area of energy audit. In practice, both technical and economical parameters of energy audit fluctuate in a very large range. It's due not only to different complexity of the audit but also the immaturity of the market. General population in Russia on its own has not yet embraced energy efficiency as a social value, therefore not many people are interested to invest in increasing energy efficiency of their homes and, therefore, to use algorithms for home energy audit suggested by well-known western companies such as Energy Star and others. New energy efficient home appliances can significantly reduce the energy consumption, however, the extent to which the theoretical reduction potential can be realized highly depends on individual decision processes. In this situation most of the small and middle-size companies as well as government organizations are getting more and more interested in some 'do-it-yourself' tools that can help to make very first steps in introduction of energy management systems and reduce the cost of professional energy audit. In this paper we present a simple interactive calculator, which can be used in individual flats and houses, office buildings and educational institutes such as colleges and schools, for assessment of electricity use by different categories of equipment. The user indicates only type of equipment and its approximate time of work. The program outputs the structure of energy consumption in graphic format. The results of test procedures and the ways for improvement of the program are discussed. The program is realised using the C++ programming language following the C++03 standard. It uses Qt libraries and provides graphical output in the form of a histogram, showing which energy appliances consume the most energy.
    Keywords: energy efficiency; energy audit; interactive calculator; energy consumption structure;
    JEL: Q41 Q48 C88
    Date: 2014–11
  20. By: Evgenya Bukharova; Irina Vorontsova; Irina Ferova; Ludmila Vitkovskaya
    Abstract: Population Allocation in Resource-Based Economy Areas and Entrepreneurship Support Evgenya Bukharova, Irina Vorontsova Irina Ferova Ludmila Vitkovskaya Siberian Federal University Key words: urban and rural areas, population allocation pattern, urban agglomerations, territorial clusters, distribution of productive forces, territorial asymmetry of economic development Russian President Vladimir Putin placed an emphasis on priority development of the resource regions of Eastern Siberia: this is related to the large-scale development of natural resources and to the development of modern manufacturing industries. In this context, it is necessary to solve the problem of rational territorial distribution of new industries, taking into account the current territorial structure. ? The present stage of the new industrialization in Siberian regions will be accompanied by stiff competition for human capital on the background of the increasing role of human capital in today's economy. ? The system of focal allocation of population in resource regions with a significant differentiation of living and business conditions, which was established in previous years, usually does not coincide with the future allocation scheme. In the Krasnoyarsk Krai alone large investment projects will lead to increasing the share of the Krasnoyarsk Krai`s territories, actively involved in economic development. ? Imperfect mechanisms for institutional support of business in the regions and forms of territorial organization of production limit the investment attractiveness of the regions. The example of Krasnoyarsk Krai was taken as a regional model for conducting the analysis of influence factors and proposing approaches to strategic development of territorial settlement patterns: ? Core settlements - small towns are "points of growth" in new places of concentration of economic activity in which investment projects stimulate the economic development of the territory. ? The formation of an optimal backbone for the population allocation system in these areas will require the use of intra-regional shift work, which will facilitate the involvement of working population of the already existing settlements of the Krai into economic activities. ? It is necessary to accelerate the process of formation of Krasnoyarsk agglomeration as a business center, which multifunctional environment and its integrative properties are crucial: in Krasnoyarsk, one will observe not only the concentration of activity, but the concentration of development and concentration of conditions for the innovative development. ? The improvements of the territorial organization of production are associated with the creation of regional clusters as a form of inter-sectoral cooperation of economic activities.
    Keywords: urban and rural areas; population allocation pattern; urban agglomerations; territorial clusters; distribution of productive forces; territorial asymmetry of economic development; R12; R58
    Date: 2014–11
  21. By: Stefano Aragona
    Abstract: The current historical moment is a great opportunity for a new development model for rethinking forms and space on the one hand and, on the other hand, the factors of production - labor and materials - and social (Appold, Kasarda, 1990), which starts from the context, then it identifies the opportunities that it can allow. Specific areas include culture / cultural heritage, scientific research, the environment and the green economy while the Mezzogiorno in Italy can be great experimental laboratory (Aragona, 2012a) and Russia represent one of the largest territory for testing the new approach. An approach that triggers virtuous synergistic mechanisms to develop ecological strategies of planning, design and implementation (Leipzig Charter, 2007). So a model social, cultural, economic proposal that becomes proposal of local identity thank to the 'place-based' philosophy (Barca, 2009) also useful for the so-called BRIC emerging countries and not only (Aragona, 2012b). Starting the reversal of the basic philosophy of industrial society whose limits are increasingly emerging in terms of social harm - health, unemployment, misuse and risky territory - and economy. Complex approach based on the alliance between man and nature (Scandurra, 1995) and on 'cultured technology' that avoids unfair technocratic solutions (North, 1991). Construction of horizontal linkages (Dematteis 1985, 1986, 1990, 2005), spatial lattices, harbingers for synergy between local actors. These so strong in their cohesion and cooperation, they can open up to the global economy: it's the Think Global, Act Local that the Netherlands followed by the IV National Report of 1985 (Aragona, 1993, 2000). Proposition of social and economic multipliers to go beyond the only attitudes of savings. This slogan, now fashionable, was born with The Limits to Growth (Club of Rome - MIT, 1972) has become the slogan of globalization. Until reaching EU Smart Cities that combines communication flows with those of energy to build scenarios in Horizon 2020 Community inclusive and sustainable socially and physically (Aragona, 2012c).
    Keywords: Ecological approach; Sustainable development; Sense of the spaces;
    JEL: Q01
    Date: 2014–11
  22. By: Vadim Pashkus; Natalia Pashkus; Anna Bulina
    Abstract: The article analyzes the problems of socio-cultural sphere in the new economy, as well as the impact of socio-cultural sphere on the brand of St.Petersburg, paper also discusses possibility of evaluation of changes in brand strength due to socio-cultural impact. The proposed method of estimation of the strength of the brand is universal enough, but due to a pronounced specificity of various segments of the public sector it requires specifying when evaluating consumer interest in services for various types of organizations. In this paper, brand evaluation can not be based on the financial performance of organizations; we are not interested on the characteristics of brand equity, but on indicators of consumer preferences and the associated strength of the brand on the market. The proposed method can be adapted to different segments of the public sector (and their impact on brand site) that require adaptation indicators of demand and availability of the services of these organizations. It requires considering not only the classical estimation of the brand, calculated using the method of BCG (including adaptation of its indicators for socio-cultural sphere), and together with the emotional evaluation of brand strength by Keller used to calculate the integral market power of the brand. Priority of emotional components is defined by specific traits of Russian market in general and the cultural market, in particular. The competitiveness of the regional institutions of socio-cultural sector and the strength of their brand directly affects the competitiveness of the region as such. The paper raises questions of so called "star" status and orientation on brands in risk conditions. Brand allows city to start the process of urban regeneration, become the basis of its development strategy, and to revive the use of vacant spaces as well. Branded cities attract not only tourists but also entrepreneurs in various industries, people who want to live interesting, in an unique location and have access to the benefits of modern goods, unique heritage, objects and experiences. Brand adds a certain 'flavour' to the city. It can be promoted; it can attract the most qualified workers not only with competitive salary and benefit packages, but with a good place for work and for pleasures as well.
    Keywords: Socio-cultural sphere; new economy; cultural institutions; brand of St. Petersburg; strength of the brand (by Keller)brand of the territory; Y & R method
    JEL: L3 R11 Z1
    Date: 2014–11
  23. By: Igor Shevchuk; Evgeny Zhirnel
    Abstract: Spatial development in remote areas is associated with a number of problems and hindrances, the main ones being the difficult demographic situation and poor infrastructure. By introducing "green" technologies one can begin to overcome infrastructural limitations, develop the economy and the settlement system through efficient utilization of local resources. This approach is implemented in practice within the international project "Green cities and settlements: sustainable spatial development in remote border areas" of the Karelia Cross-border Cooperation Programme of the European Neighbourhood and Partnership Instrument. "Green" cities and settlements are a model of communities that strive to live so as to reduce pollution, efficiently use local resources, convert wastes to energy, and thus minimize their input to climate change. The key is not only to develop the territory in a sustainable way, but also to eliminate infrastructural limitations and find new opportunities for local economic development. Land resources in many municipalities are now used very inefficiently because of the poor condition or absence of utility and power networks. Local administrations with their deficient budgets cannot handle the problem on their own, whereas businesses are not willing to invest at such scope. By reducing the dependence on centralized infrastructure, first of all energy infrastructure, one can expect the spatial hindrances to the development of settlements to be eliminated. The project pilot areas are the border municipalities in the north of the Republic of Karelia. The project outputs are proposals on how to actualize the potential of the territory, promote spatial development and business development. These proposals are concerned with the development of energy-efficient technologies, enterprise development, utilization of local resources for building the "green economy". Implementation of these plans requires a fundamentally new approach to the infrastructural development of municipalities. We believe "green" technologies today are an effective, if not the only, way to develop the energy, housing and utilities infrastructure in remote areas. These technologies can help maintain the settlement system by making the living in remote communities more comfortable. Many of such communities have the potential to become eco-settlements and focus on sustainable tourism. One of the project outputs is the Concept of establishing the cross-border cluster of energy-efficient technologies. The partnership network that has brought together Russian and Finnish entrepreneurs, scientific organizations that design and implement energy-efficient technologies can turn into a new arrangement for the development of northern border areas and formation of the "green economy".
    Keywords: green economy; entrepreneurship; northern border regions; clusters; energy-efficiency
    Date: 2014–11
  24. By: Koettl, Johannes (World Bank); Kupets, Olga (National University of Kiev-Mohyla Academy); Olefir, Anna (World Bank); Santos, Indhira (World Bank)
    Abstract: Ukraine's economy lacks dynamism, and this is both the cause and the effect of people not moving across the regions. The rate at which Ukrainians move from one region to another within the country is only half of what would be expected in comparison with other countries. This paper examines the barriers that prevent workers from moving within Ukraine, using information from focus group discussions and expert surveys. It also offers recommendations for creating greater labor mobility in Ukraine through addressing institutional bottlenecks and defines five key areas for improvement, including the population registry system, housing and credit markets, vocational education and training systems, labor market institutions, and the social welfare system.
    Keywords: barriers to migration, housing market, internal labor mobility, transition economies
    JEL: J61 J68 P25
    Date: 2014–11
  25. By: Marvin Suesse (Humboldt University of Berlin)
    Abstract: Little is known about the empirical determinants of secessions, despite a rich theoretical literature on the subject. Economic theory predicts that the incentive to secede should be determined by the size of the seceding province, as well as preference heterogeneity, income inequality, the extent of democratization, and trade potential. This paper tests these assertions by treating the dissolution of the Soviet Union as a historical experiment in state breakup. I exploit regional variation in pro-secessionist protests across the 184 provinces of the Union to approximate the varying demand for secession. I find strong evidence for the existence of a trade-off between size and heterogeneity in shaping demand for secession, whereas other factors receive only qualified support. Finally, I demonstrate that the factors determining popular demand for secession are only weakly related to the extent to which local elites actually pursue a secessionist policy.
    JEL: H40 H71
    Date: 2014–10

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.