nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2016‒03‒06
sixteen papers chosen by

  1. China's slowdown and Uncertainty Spillovers within BRICS stock markets: A Signal processing analysis By Jamal BOUOIYOUR; Refk SELMI
  2. Comments on the Impact of Knowledge on Economic Growth across the Regions of the Russian Federation By Jens K. Perret
  3. God Helps Those Who Help Themselves! A Study of User-Innovation in Russia By Konstantin Fursov; Thomas Thurner
  4. Popular Attitudes Towards Markets and Democracy: Russia and United States Compared 25 Years Later By Maxim Boycko; Robert J. Shiller
  5. Submitted to the Department of management of the P. A. Stolypin Volga Institute of management - branch of the Russian Presidential Academy of National Economy and Public Administration By Takishina, Elena; Fomenko, Alexander
  6. Catching up of emerging economies: The role of capital goods imports, FDI inflows, domestic investment and absorptive capacity By Glas, Alexander; Hübler, Michael; Nunnenkamp, Peter
  7. Institutional approach of T. Veblen and modernity: fertility and child care By Sinitsa Arseniy
  8. Covenant as an instrument of financial risk management By Kondratjev, Alexey
  9. Social risk and vulnerability assessment of the hazardous hydrological phenomena in Russia By Zemtsov, Stepan; Baburin, Vyacheslav; Koltermann, Klaus; Krylenko, Inna; Yumina, Natalia; Vladimir, Litvinov
  10. Bread and Bullets By Akerlof, George A.; Snower, Dennis J.
  11. Socio-economic factors of transformation in single-industry towns (based on the data from the saratov and rostov regions) By Goncharova, Lyudmila Ivanovna; Romanova, Evgeniya
  12. It’S Not the Economy Stupid! Is Russia-Us Trade Really Underdeveloped? A Test Using Gravity Models By Maxim Bratersky; Gunes Gokmen; Andrej Krickovic
  13. The Unintended Benefits of Empowering Boards in Conglomerates: The Case Study of Afk Sistema By Tatiana Dolgopyatova; Alexander Libman; Andrei Yakovlev
  14. EEC:stage and potential economic integration By Levchenko, Olga; Ignatyeva, Galina
  15. Will BRICS New Development Bank focus on off-US Dollar currencies as major currency- A review By Jermy, Amanda
  16. Quality of employment regimes and diversity of emerging countries By DEGUILHEM Thibaud; FRONTENAUD Adrien

  1. By: Jamal BOUOIYOUR; Refk SELMI
    Abstract: The paper looks at the reaction of four BRICS (Brazil, Russia, India and South Africa) stock markets under uncertainty surrounding the faltering pace of Chinese economic growth. The originality of our study lies in the use of new method that relies on signal theory, to measure the strength of spillover effects as alternative to the time and frequency. We show that the severity of China's slowdown impact was not uniform across all the BRICS markets. In particular, we can distinguish two groups of countries. The first group is formed by Brazil and Russia where a strong pillover effect (above one year) is revealde. The second group includes India and South Africa where the spillover mechanism seems to be driven by short- and medium-term hidden factors (within one to thirty weeks). In other words, Brazil and Russia suffered the most, while India and South Africa experienced a moderate influence. The great speculation, the dominance of noise traders, the gold's role as safest haven, the long-term market fundamentals, and the ability of counter-cyclical policies to cope with the severe downturn have been advanced as potential elements of explanation for the heterogeneous BRICS' responses.
    Keywords: China's slowdown; BRICS stock markets; spillovers; signal processing analysis
    JEL: F36 G11 G15
    Date: 2016–02
  2. By: Jens K. Perret (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Using a basic growth accounting approach it is deduced how far the regional knowledge infrastructure plays any significant role across the regions of the Russian Federation. Aside from aspects of the size of the regional innovation system, like the number of researchers and students, it is discussed in how far the inflow and outflow of knowledge plays a role in determining the economic growth. The study shows thereby that while the Russian growth dynamics are indeed driven by the exploitation of natural resources, foremost of oil and gas, a significant part of Russian growth is due to its innovation system. This shows that innovation oriented growth politics as promoted by former president Dmitry Medvedev do have a solid foundation to be built on.
    Keywords: Economic Growth, Russian Federation, Knowledge, Innovations
    JEL: O31 P25
    Date: 2015–04
  3. By: Konstantin Fursov (National Research University Higher School of Economics); Thomas Thurner (National Research University Higher School of Economics)
    Abstract: This paper studies the specificities of Russian user-innovators on a sample of 1670 home interviews. The percentage of end users who innovate in their daily life in the Russian population and the willingness to share one’s ideas and developments is much higher in comparison to western countries and probably historically rooted in long-standing community activities which spread during soviet times. Our data suggests the existence of two different groups of user-innovators: one group of urban, male, well educated, and financially better-situated individuals who innovate for career reasons (or for fun) vs. a much more diverse group of small town folks who innovate out of necessity. While the first group confirms findings well described in the literature, the second group seems to be unique to developing markets and to Russia in particular. User-innovation happens also in remote areas, and among user groups outside of the working age. As these user-innovators are reluctant to share their innovations with others and would rather keep them for themselves, a great source of ideas and commercial opportunity remains untouched. Russia’s innovation system has so far concentrated on the classical innovation modes around major cities or big companies. Given Russia’s extensive presence of user-innovators, it might be a promising policy move to provide greater support to existing and emerging amateur communities. We believe that our study adds insights into the informal and totally neglected viewpoint on Russia’s innovation.
    Keywords: user innovation, innovation community, Russia
    JEL: H00 O31 O32 O33
    Date: 2016
  4. By: Maxim Boycko (Watson Institute, Brown University and Dept of Economics, Harvard University); Robert J. Shiller (Cowles Foundation, Yale University)
    Abstract: We repeat a survey we did in the waning days of the Soviet Union (Shiller, Boycko and Korobov, AER 1991) comparing attitudes towards free markets between Moscow and New York. Additional survey questions, from Gibson Duch and Tedin (J. Politics 1992) are added to compare attitudes towards democracy. Two comparisons are made: between countries, and through time, to explore the existence of international differences in allegiance to democratic free-market institutions, and the stability of these differences. While we find some differences in attitudes towards markets across countries and through time, we do not find most of the differences large or significant. Our evidence does not support a common view that the Russian personality is fundamentally illiberal or non-democratic.
    Keywords: free markets, democratic values, fair prices, income inequality, incentives, hostility towards business, Moscow, New York, transition economy
    JEL: P10 O57
    Date: 2016–02
  5. By: Takishina, Elena (Russian Presidential Academy of National Economy and Public Administration); Fomenko, Alexander (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The article is devoted to the history and activities of the Department of management of the Volga Institute of management named P. A. Stolypin - branch of the Russian Academy of national economy and state service under the President of the Russian Federation. The mission of the Department is training of competitive professionals in the field of strategic management, logistics, business planning, business Economics, innovation management, information technology management organization and other relevant areas of modern management that is able to introduce new technologies and working methods and to achieve maximum results in business. The Department is constantly expanding its teaching staff, attracting doctors and candidates of Sciences (including, in the past three years the Department staff was joined by such of the doctor of economic Sciences as T. N. Odintsova, S. A. Gusev, recognized scientific leaders in such research areas as logistics) and practitioners, allowing to minimize the gap between the competencies that emerging graduates in the learning process, and the requirements of the labour market, to improve the quality of training of graduates. Also in the article the basic educational programs implemented at the Department considering specialization (program specialist), profiles (for undergraduate) and the programs (for graduate programs). The Department is graduating of specialty 080705. 65, the direction of preparation 38.03.02 Management for "small business Management", "logistics and supply chain management, Business logistics and management" (bachelor degree), field of study 38.04.02 Management program "Management of logistical systems", in the direction of training 38.04.01 Economics program "Economics of firm and industrial markets". The main advantages of the current areas of training bachelor, specialist and include high quality education, innovative training methods, more practical orientation of training. The research activity of the Department is in the direction of "Socio-economic aspects of management of economic systems in the conditions of modernization of Russian economy" on the theme "enhancing the effectiveness of socio-economic systems in the conditions of economy of knowledge". The research activity of chair is directed on formation of economic and management models and mechanisms, which focus on different levels of socio-economic systems, from individual organizations to the Federal level, namely, for businesses and organizations of commercial and non-commercial orientation of different sectors and spheres of activity and socio-economic environment of the state as a whole that will improve the efficiency of managerial decisions and the competitiveness of organizations and regions. the research results are of practical use and are widely used in the educational process. Teachers of the Department take an active part in organizing and conducting intra-and inter-departmental round tables and conferences, the Department annual conference, the results of which formed the collection "Actual problems of management", thereby enhancing the scientific activity of the Department staff, students, undergraduates and graduate students. The activity of Department is directed not only on formation and development of the abilities to become a skilled and sought-after specialist, bachelor or master, but also on nurturing the personal qualities of the learners.
    Keywords: department of management, undergraduate programs, graduate, postgraduate, scientific research, teaching staff
    Date: 2015
  6. By: Glas, Alexander; Hübler, Michael; Nunnenkamp, Peter
    Abstract: We assess the role of capital goods imports and inflows of foreign direct investment (FDI) as transmission channels through which major emerging economies (BRICs, i.e., Brazil, Russian Federation, India and China) could catch up with advanced source countries in terms of total factor productivity (TFP). We find that the importance of these transmission mechanisms depends on the BRICs' local capacity to absorb superior technologies and on domestic investment.
    Keywords: total factor productivity,imports,foreign direct investment,absorptive capacity,BRICs
    JEL: F14 F21 O47
    Date: 2015
  7. By: Sinitsa Arseniy (Department of Economics, Lomonosov Moscow State University)
    Abstract: The issues of the development of the Arctic area of Russia that are linked with its importance for the economy of Russia provide the necessity to study its population. The Arctic area population is mostly an urban one, that’s why the special consideration to it should be taken. We examined the size, the age-sex structure and the natural movement of the urban population of the Russia’s Arctic area. As a result, the regions that belong to the Arctic area have the natural population increase, but its losses from the migratory movement are higher, so the population of the Russia’s Arctic area has been decreasing. At the conclusion different ways of the demographic development of the Russia’s Arctic area and some measures of the demographic policy encourage the population increase are discussed.
    Keywords: T. Veblen, Institutionalism, child care, fertility.
    JEL: J10 J11
    Date: 2016–02
  8. By: Kondratjev, Alexey (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The problems of application of covenants in Russia, showing the direction of improving their use: to recognize covenants legitimate financial tool in the federal legislation, supplemented by regulations order of their legal regulation, delegate the conduct of all of its financial covenants audit companies, enter into the business turnover of the position of the owner of the bonds authorized to demand early the repayment or redemption of any breach of the covenant, to recommend the commercial banks to monitor the financial covenants under the credit risk assessment, and develop regulations for their application.
    Keywords: covenant, risk-management, debt, credit risk
    Date: 2015
  9. By: Zemtsov, Stepan; Baburin, Vyacheslav; Koltermann, Klaus; Krylenko, Inna; Yumina, Natalia; Vladimir, Litvinov
    Abstract: Methods and results of social vulnerability and risk assessment are presented in the article. It is explored if modified methodology of the United Nations University (World risk index) can be used on different scale levels: regional, municipal and settlement. It was estimated that, despite the low value of the World risk index for Russia, southern coastal and mountain regions have high values of the risk index for hydrological phenomena because of higher frequency of the hazardous events, higher population density, and high social vulnerability. The Krasnodar region (in the south-western part of Russia) was chosen for a detailed analysis. A municipal risk index was developed, and municipal districts in the Kuban river mouth were identified as territories with the highest risk. For verification of the index results, the percentage of vulnerable people was estimated based on opinion polls. The results can be used in further risk calculation for other hazardous phenomena.
    Keywords: social vulnerability, hazardous hydrological phenomena, risk assessment, Russian regions, coastal areas
    JEL: Q51 Q54 R19
    Date: 2014–12–15
  10. By: Akerlof, George A. (Georgetown University); Snower, Dennis J. (Kiel Institute for the World Economy)
    Abstract: Standard economics omits the role of narratives (the stories that people tell themselves and others) when they make all kinds of decisions. Narratives play a role in understanding the environment; focusing attention; predicting events; motivating action; assigning social roles and identities; defining power relations; and establishing and conveying social norms. This paper describes the role narratives play in decision making, as it also juxtaposes this description against the backdrop of the Bolshevik-spawned narrative that played a critical role in the history of Russia and the Soviet Union in the 20th Century.
    Keywords: narrative, motivation, attention, prediction, identity, social assignment
    JEL: A12 A13 A14 D03 D04 D20 D23 D30 D62 D71 D72 D74 E02
    Date: 2016–02
  11. By: Goncharova, Lyudmila Ivanovna (Russian Presidential Academy of National Economy and Public Administration); Romanova, Evgeniya (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper states the necessity of reforming single-industry towns in Russia. Based on the analysis of socio-economic problems of development in single-industry towns in the Saratov and Rostov regions the authors claim that it is vitalto transform them into multi-industry towns. It is necessary to reduce dependence on single employer through the development of other industries and attracting other types of business. It is proved that developing a strategy to diversify the economy of single-industry towns will achieve stability in the socio-economic development and help overcome economic crisis.
    Keywords: single-industry town, urbosystem, depression, economic diversifi cation
    Date: 2015
  12. By: Maxim Bratersky (National Research University Higher School of Economics); Gunes Gokmen (National Research University Higher School of Economics); Andrej Krickovic (National Research University Higher School of Economics)
    Abstract: Politicians, pundits and experts in both Russia and the US frequently bemoan the “underdevelopment” of US-Russia trade, arguing that political factors have inhibited the development of economic ties. It is also often argued that political relations between the two countries would also be more cooperative and less conflictual if these ties developed up to their full potential. The paper seeks to test the conventional wisdom that the US-Russia trade is underdeveloped by employing a standard gravity model to measure where trade between the two countries “should” be. We find no evidence that the US-Russia trade is underdeveloped. In terms of its ability to live up to the predictions of the model, trade between the two countries is predicted by the standard determinants of trade, suggesting that there is nothing erratic about the US-Russia trade and it behaves like any average country pair. These findings suggest that US-Russia trade relations actually live up to their economic potential and that the commonly held idea that political relations between Russia and the US can be dramatically improved by tapping into the “unfulfilled” promise of improved trade relations is unfounded. Moreover, our analysis demonstrates that the sectorial structure of the two economies, factor endowments and comparative advantages do not seem to indicate that there is significant potential for increased trade, as the conventional wisdom would suggest. The conventional view argues that poor political relations have impeded the development of economic relations between the two states. But, in fact, the opposite may be true: relations between the US and Russia are characterized by rivalry and conflict because there is little solid economic grounds for more pacific relations
    Keywords: US-Russia Relations, International Trade, Gravity Models, Economic Interdependence
    JEL: F14
    Date: 2016
  13. By: Tatiana Dolgopyatova (National Research University Higher School of Economics); Alexander Libman (National Research University Higher School of Economics); Andrei Yakovlev (National Research University Higher School of Economics)
    Abstract: This paper investigates the role of boards of directors of conglomerate subsidiaries in emerging markets. The paper based on a case study of AFK Sistema—a large diversified Russian business group including subsidiaries in 15 sectors. We show that creating corporate governance institutions at the subsidiary level can have unexpected advantages for the group as a whole and can be used to improve the quality of decision-making in the group. Sistema implemented corporate governance at this level to attract capital and to satisfy the demands of the minority shareholders, but over time started to use the already established institutions of the corporate governance as a tool of corporate management.
    Keywords: diversified corporation, board of directors, parent company, subsidiary, corporate governance, corporate management, emerging markets
    JEL: G34 L25 M10
    Date: 2016
  14. By: Levchenko, Olga (Russian Presidential Academy of National Economy and Public Administration); Ignatyeva, Galina (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The peculiarities of international economic integration in the framework of the Eurasian Economic Union. It describes the degree of economic integration – of the free trade area, customs union, common market and economic union to complete economic integration. The characteristics of the economic potential of combining the EAEC member-countries.
    Keywords: international economic integration, EAEC
    Date: 2015
  15. By: Jermy, Amanda
    Abstract: Will the New Development Bank (NDB) – all the more generally known as the BRICS bank – free South Africa and other rising and creating nations from the grasp of the forceful dollar? The paper is a review of futuristic and contemporary views of the first president of the NDB. It has been reviewed as to the quantum of the influential credential of the newly established entity on the international monetary environment.
    Keywords: BRICS New Development Bank; BRICS nations; regional development; developmental economics
    JEL: E5 E51 G2 G28
    Date: 2016–02–10
  16. By: DEGUILHEM Thibaud; FRONTENAUD Adrien
    Abstract: Emerging countries and their leaders, the BRICS, can be revisited with an institutionalist approach enabling a better recognition of their diversity. Focusing on the composition of their labour nexus, this paper offers to question the category formed by these countries by studying their variety of quality of employment regimes. Two interesting results came out from this study using a Principal Components Analysis (PCA) and a Mixed Clustering (MC) break two institutional dimensions into fourteen indicators. (1) Four specific quality of employment regimes appear, illustrating their heterogeneity and the weakness of this category. (2) The BRICS appear notably scattered over some socio-economic aspects of each leader. Far from composing a coherent and independent regime, BRICS countries dispersion can be explained by a specific combination of socio-economic and institutional factors to each one of them.
    Keywords: Employment regimes, Emerging countries, Quality of employment, Principal Components Analysis, Mixed Clustering.
    JEL: B52 J21 J81 J83 P51
    Date: 2016

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