nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2015‒02‒11
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Constructing Identities And Boundaries: Fashion And Clothing Of Working And Middle Class Youth In Contemporary Russia By Margarita I. Kuleva
  2. Breaking Out Of Poverty Traps: Internal Migration And Interregional Convergence In Russia By Sergei Guriev; Elena S. Vakulenko
  3. Russian Political Economy from Utopia to Social Engineering: An Introduction By Akhabbar, Amanar; Allisson, Francois
  4. Effect of Income on Trust: Evidence from the 2009 Crisis in Russia By Ananyev, Maxim; Guriev, Sergei
  5. Performance-Based Typology Of Universities: Evidence From Russia By Irina V. Abankina; Fuad T. Aleskerov; Veronika Yu. Belousova; Leonid M. Gokhberg; Kirill V. Zinkovsky; Sofya G. Kiselgof; Vsevolod Petrushchenko; Sergey V. Shvydun
  6. Mega Deal between the European Union and the Eurasian Economic Union By Vinokurov, Evgeny
  7. Georgia: First Review Under the Stand-By Arrangement and Request for Modification of a Performance Criterion-Staff Report; and Press Release By International Monetary Fund. Middle East and Central Asia Dept.

  1. By: Margarita I. Kuleva (National Research University Higher School of Economics)
    Abstract: Clothing and fashion play significant role in the process of ageing, and help put bodily experiences in the context of culture. It is especially important for young people as social subjects, who are starting to become independent but do not have sufficient experience and social competences to do this. This paper explores how two groups of mainstream youth in Russia use clothing to denote their social identity and construct boundaries.
    Keywords: youth, clothing consumption, youth fashion, working class, middle class, youth in Russia
    JEL: Z1
    Date: 2015
  2. By: Sergei Guriev (New Economic School); Elena S. Vakulenko (National Research University Higher School of Economics)
    Abstract: We study barriers to labour mobility using panel data on gross region-to-region migration flows in Russia in 1996-2010. Using both parametric and semiparametric methods and controlling for region-to-region pairwise fixed effects, we find a non-monotonic relationship between income and migration. In richer regions, higher incomes result in lower migration outflows. However, in the poorest regions, an increase in incomes results in higher emigration. This is consistent with the presence of geographical poverty traps: potential migrants want to leave the poor regions but cannot afford to move. We also show that economic growth and financial development have allowed most Russian regions to grow out of poverty traps bringing down interregional differentials of wages, incomes and unemployment rates
    Keywords: labour mobility, poverty traps, liquidity constraints
    JEL: J61 R23
    Date: 2015
  3. By: Akhabbar, Amanar; Allisson, Francois
    Abstract: In September 2009, the editors of this special issue organized at Lausanne University a Workshop on the History of Russian Political Economy and Statistics at the turn of the 20th century. When preparing a call for paper for this journal, the editors realized that papers presented at the Lausanne Workshop addressed implicitly or explicitly questions about how to combine Economic Theory, Social Engineering and Utopia. The contributions contained in this issue suggest various possible configurations between these three categories of scientific inquiry.
    Keywords: Russia; Russian Political Economy;Political Economy; Utopia; Social Engineering;
    JEL: B1 B2 B3 B4
    Date: 2014–01
  4. By: Ananyev, Maxim; Guriev, Sergei
    Abstract: This paper draws on a natural experiment to identify the relationship between income and trust. We use a unique panel dataset on Russia where GDP experienced an 8 percent drop in 2009. The effect of the crisis had been very uneven among Russian regions because of their differences in industrial structure inherited from the Soviet times. We find that the regions that specialize in producing capital goods, as well as those depending on oil and gas, had a more substantial income decline during the crisis. The variation in the industrial structure allows creating an instrument for the change in income. After instrumenting average regional income, we find that the effect of income on generalized social trust (the share of respondents saying that most people can be trusted) is statistically and economically significant. Controlling for conventional determinants of trust, we show that 10 percent decrease in income is associated with 5 percentage point decrease in trust. Given that the average level of trust in Russia is 25%, this magnitude is substantial. We also find that post-crisis economic recovery did not restore pre-crisis trust level. Trust recovered only in those regions where the 2009 decline in trust was small. In the regions with the large decline in trust during the crisis, trust in 2014 was still 10 percentage points below its pre-crisis level.
    Keywords: crisis; social capital; trust
    JEL: Z13
    Date: 2015–01
  5. By: Irina V. Abankina (National Research University Higher School of Economics); Fuad T. Aleskerov (National Research University Higher School of Economics); Veronika Yu. Belousova (National Research University Higher School of Economics); Leonid M. Gokhberg (National Research University Higher School of Economics); Kirill V. Zinkovsky (National Research University Higher School of Economics); Sofya G. Kiselgof (National Research University Higher School of Economics); Vsevolod Petrushchenko (National Research University Higher School of Economics); Sergey V. Shvydun (National Research University Higher School of Economics)
    Abstract: In recent decades increased economic pressure and growing expectations of the society have led to a shift to performance-based funding modes of public research, namely universities, introduced by the government. In this respect universities started to use various strategies to adapt and develop their activities under the new framework conditions. National governments currently attempt to design and apply various taxonomies for structuring the university infrastructure in all different shapes in order to facilitate the development of efficient programmes for the advancement of higher education. The paper provides a review of different approaches to university typologies, discusses the choice of indicators and mathematical tools for grouping universities using common criteria and evaluating their performance based on classical and modified DEA approaches. The authors developed a typology which was tested in the Russian context, taking into account indicators of research and educational activities implemented by domestic universities and their efficiency score. The typology is based on clustering universities by availability of resources and research and educational performance and the combination of these results with efficiency score. It does not only group universities by type but includes a decision tree for classifying them as members of a specific group keeping into account their heterogeneity. It may serve as a basis for content analysis of the wide range of universities, and for shaping targeted policies aimed at their particular groups.
    Keywords: higher education institutions (HEIs), typology, research and educational activities of HEIs, hierarchical clustering, data envelopment analysis, efficiency, performance
    JEL: C14 C38 D83 O32
    Date: 2015
  6. By: Vinokurov, Evgeny
    Abstract: Today even raising the question of an economic integration agreement between the European Union and the Eurasian Economic Union seems a non-starter. Recent economic sanctions have severely hurt economic cooperation between the two political entities. Yet the foundations of any new institution are frequently set out in times of crisis.
    Keywords: European Union, Eurasian Economic Union, economic sanctions, Russia, economic integration
    JEL: F13 F15 F5
    Date: 2014
  7. By: International Monetary Fund. Middle East and Central Asia Dept.
    Abstract: KEY ISSUES Context. Macroeconomic developments have been in line with the program. Growth has recovered, led by domestic demand, with the Russia-Ukraine crisis having limited economic impact so far. Growth should reach 5 percent in 2014. Georgia and the EU started applying their Deep and Comprehensive Free Trade Area (DCFTA) agreement provisionally in September. Although some ministers left the cabinet in November, the ruling Georgian Dream government has kept its majority and has reaffirmed its commitment to Georgia’s goal of increased European integration. Outlook and Risks. Growth should remain at 5 percent in 2015. Downside risks stem from possible escalation of regional tensions and weaker recovery in the Euro area. On the upside, lower oil prices could boost growth and reduce the current account deficit. Policies. Although this year’s fiscal deficit should come in below target, the composition of spending has again shifted from capital to current and the substantial increase in government spending planned for the fourth quarter could lead to balance of payments pressures. The 3 percent of GDP deficit in the 2015 draft budget is consistent with the program objectives of preserving fiscal sustainability and supporting external adjustment. The draft budget envisages increases in pensions, teacher salaries, drug benefit coverage, and capital spending paid for by higher excises on tobacco, alcohol, and incoming international phone calls. Annual inflation rose to 3½ percent in October but remains below the National Bank of Georgia’s (NBG) inflation target of 6 percent for 2014. The stability of the lari against the U.S. dollar has resulted in appreciation against key trading partners. The current account deficit has widened in 2014 as expected with the economic recovery but should decline in the medium term supported by fiscal consolidation, exchange rate flexibility, reforms to improve competitiveness, and greater trade opportunities. Reserve accumulation under the program will strengthen resilience to shocks. The NBG is committed to implementing the FSAP recommendations. Program. The program is on track, with all September conditionality met except for the structural benchmark on preparing an access to finance study which has now been reset. SDR40 million will become available upon the completion of the review.

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