nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2016‒07‒09
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. What User-Innovators Do that Others Don’T: A Study of Daily Practices By Konstantin Fursov; Alena Nefedova; Thomas Thurner
  2. Collateral Damage: The impact of the Russia sanctions on sanctioning countries’ exports By Matthieu Crozet; Julian Hinz
  3. Firm-Level Evidence on the Cooperative Innovation Strategies in Russian Manufacturing By Vitaliy Roud; Valeriya Vlasova
  4. Health inequality in the Russian Federation: An examination of the changes in concentration and achievement indices from 1994 to 2013 By Paul, Pavitra; Valtonen, Hannu
  5. Do changes in social and economic characteristics affect attitude towards price control? By Polyachenko Sergiy
  6. Oil and Growth Challenge in Kazakhstan By Nurmakhanova Mira
  7. Government spending effectiveness and the quality of fiscal institutions By Garayeva, Aygun; Tahirova, Gulzar
  8. Fiscal Policy Rection and Sustainability of Fiscal Policy in Ukraine By Vdovychenko Artem
  9. Transactional approach in assessment of operational performance of companies in transport infrastructure By Dubrovsky, Valery; Yaroshevich, Natalya; Kuzmin, Evgeny

  1. By: Konstantin Fursov (National Research University Higher School of Economics); Alena Nefedova (National Research University Higher School of Economics); Thomas Thurner (National Research University Higher School of Economics)
    Abstract: This paper argues that innovation behavior roots in specific socio-psychological set-ups that crystallize in daily practices and routines. The latter are easy to observe and have great potential for the identification of user-innovation behavior. We study the practices and routines of Russian user-innovators around media consumption, internet and technology-usage, consumer preferences and civic engagement in comparison with a sample of mere users. The derived model correctly classified 73% of the original grouped cases of user-innovators. We conclude that a set of practices relative to the economic, social and cultural background explains user-innovation engagement and how support could be provided. Although some of our findings are probably specific to Russia, the results are encouraging for further research into the importance of practices and routines in identifying user-innovators.
    Keywords: User innovation; consumer innovation; community innovation; innovation behavior; daily practices; Russia
    JEL: A14 L2 O31
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:62sti2016&r=cis
  2. By: Matthieu Crozet; Julian Hinz
    Abstract: Economic sanctions are a frequent instrument of foreign policy. In a diplomatic conflict, they aim to elicit a change in the policies of foreign governments by damaging their economy. However, sanctions are not costless for the sending economy, where domestic firms involved in business with the target countries might incur collateral damages. This paper evaluates these costs in terms of export losses of the diplomatic crisis that started in 2014 between the Russian Federation and 37 countries, (including the United States, the EU, and Japan) over the Ukrainian conflict. We first gauge the global impact of the sanctions' regime using a structural gravity framework and quantify the trade losses in a general equilibrium counterfactual analysis. We estimate this loss at US\$60.2 billion from 2014 until mid-2015. Interestingly, we find that the bulk of the impact stems from products that are not directly targeted by Russian retaliations (taking the form of an embargo on imports of agricultural products). This result suggests that most of the losses are not attributable to the Russian retaliation but to Western sanctions. We then investigate the underlying mechanism at the firm level using French customs data. Results indicate that neither consumer boycotts nor perceived country risk can account for the decline in exports of products that are not targeted by the Russian embargo. Instead, the disruption of the provision of trade finance services is found to have played an important role.
    Keywords: International Trade;Diplomatic sanctions;Trade finance;Boycott
    JEL: F14
    Date: 2016–06
    URL: http://d.repec.org/n?u=RePEc:cii:cepidt:2016-16&r=cis
  3. By: Vitaliy Roud (National Research University Higher School of Economics); Valeriya Vlasova (National Research University Higher School of Economics)
    Abstract: This paper focuses on revealing the heterogeneous impact of firms’ specificities and the environment on the sophistication of the cooperative innovation strategies. We use the firm-level data on innovation strategies of over 1200 manufacturing enterprises in Russia to model the networking strategy as a simultaneous choice of the range of cooperative linkages (within and beyond the value chain and knowledge production sectors). The determinants comprise the internal factors (as absorptive capacity) and the external conditions (e.g. technological opportunities, appropriability and competition regimes). Revealed effects prove the initial heterogeneity hypothesis thus challenging the wide-spread simplified perception of ‘openness’ of the innovation strategy as a one-dimensional characteristic
    Keywords: Innovation cooperation; open innovation; firm-level; Russia; manufacturing; innovation strategy; multivariate probit.
    JEL: L2 O3
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:63sti2016&r=cis
  4. By: Paul, Pavitra; Valtonen, Hannu
    Abstract: Background: To assess and quantify the magnitude of health inequalities ascribed to socioeconomic strata from 1994 to 2013 in the Russian Federation. Methods: A balanced sample of 1,496 adult individuals extracted from the 1994 wave of the Russian Longitudinal Monitoring Survey (RLMS) is followed for stated self-perceived health status until 2013. The socioeconomic strata (SES) index is constructed with a set of variables (adult equivalent household income, ownership of assets and living conditions) by applying principal component analysis (PCA). We use a regression-based concentration index to measure differences in self-perceived health status. Finally, we examine the degree of aversion to inequalities in self-perceived health status between the worse-off and the better-off with the achievement index. Results: By 2013, the mean standardized self-perceived health status has improved by 4.6 % compared to 1994. The absolute size of Concentration Index (CI) for non - standardized self-perceived health status is reduced by 44.27 % from 1994 to 2013. No systematic trend emerges in the evolution of CI for self-perceived health status of the Russians over the 19 year period. However, avoidable inequalities in self-perceived health status of the Russian population is reduced by almost 60 % over the two decades (1994–2013). Conclusion: SES, as defined with objective indicators, shows little consistency in association with self-perceived health status in the Russian Federation. This study highlights the need for future research that considers the context of stated self-perceived health status in the realm of subjective socioeconomic status (SSS).
    Keywords: Achievement, Aversion, Concentration, Distributionally-sensitive, Health inequalities, Positive-externality, Self-perceived, Subjective socioeconomic status, Russia.
    JEL: I14
    Date: 2015–08–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:70150&r=cis
  5. By: Polyachenko Sergiy
    Abstract: This work examines how an individual adjusts his preferences about government price control when his social and economic characteristics change. Employing unique individual level data collected from Russian household in 2006 and 2013, we show that acquiring higher education decreases individual preferences toward government price control. Having a set of individuals questioned in 2006 and 2013 we observe changes of their preference along with changes in social and economic characteristics. This in turn, allows us to use first difference OLS estimations and eliminated bias caused by correlation of education and variety of unobserved characteristics that are fixed in time (i.e. unobserved innate abilities). Among other characteristics affecting decreasing individual demand for government price control are income and positive economic expectations.
    JEL: H13 H52
    Date: 2016–06–21
    URL: http://d.repec.org/n?u=RePEc:eer:wpalle:16/05e&r=cis
  6. By: Nurmakhanova Mira
    Abstract: CIS countries possess extensive natural resources and rely heavily on revenues from primary commodity exports, in particular petroleum and natural gas. We use Kazakhstan’s dependence on revenues from the oil sector to demonstrate commodity producer vulnerability to external commodity price fluctuations. The goal of this paper is to examine the nature of the relationship between real GDP, fiscal revenues, real exchange rate, price level, and oil prices. We employ Bayesian approach to time series data for the period 2000–2015. We find evidence of significant effect of oil prices on Kazakhstani economy where one of the key channels playing a role in the effect of oil prices on real activity is related to the real effective exchange rate. Additionally, results of this research indicate that one possible channel for oil price shocks to affect the real exchange rate is through the upward pressure on domestic price level.
    JEL: E58 F31 F43 Q4
    Date: 2016–06–21
    URL: http://d.repec.org/n?u=RePEc:eer:wpalle:16/06e&r=cis
  7. By: Garayeva, Aygun; Tahirova, Gulzar
    Abstract: The cyclical behaviors of government spending and output are investigated for the time period 1996-2013, in the sample of 45 countries divided between 3 groups of countries – Western European, Eastern European and CIS countries – with each one of these groups representing a different development stage. Panel data fixed effects model was used for estimation purposes. In developed countries the main determinant of government spending effectiveness is found to be institutional quality, but access to financial markets is more pronounced in developing countries.
    Keywords: fiscal policy, procyclicality, institutional quality, panel data, fixed effects
    JEL: D73 E02 E32 E62
    Date: 2016–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:72177&r=cis
  8. By: Vdovychenko Artem
    Abstract: This article analyzes fiscal policy reaction function with switching regimes for Ukraine. We demonstrate that the fiscal policy reaction function in Ukraine has a nonlinear nature. The analysis revealed that the fiscal policy of Ukraine has been in a passive regime for a long time and a switch to this mode took place in late 2006 with the beginning of rapid economic growth. By means of the LSTR models, it is shown that at high levels of debt and the GDP gap the fiscal policy switches to an active regime. However, such switching is rare and short, and therefore does not have an impact on the overall picture. We also found an asymmetry in the response of fiscal policy on the GDP gap depending on the phase of the economic cycle. In our opinion, this asymmetry is the main obstacle to switching the fiscal policy in active regime.
    JEL: E62 H62 H63
    Date: 2016–06–21
    URL: http://d.repec.org/n?u=RePEc:eer:wpalle:16/07e&r=cis
  9. By: Dubrovsky, Valery; Yaroshevich, Natalya; Kuzmin, Evgeny
    Abstract: Purpose: Offer an alternative method to assess operational performance of companies in transport infrastructure of a region by making a comparison between transaction costs. The method is supposed to be a cross-functional and possibly applied to an analysis of economic entities of a different order (country, region, sector, companies) while evaluating “viscosity” / complexity of the outside and the inside. Design/methodology/approach: The paper includes an analysis of various methodological approaches to assess a development level of the transport infrastructure in a region. Within the author's approach and for purposed of the research, an index of transaction capacity or the transactionalness index is proposed, which determines a level of transaction costs calculated against the cost of production and revenue. The approach is piloted using the region-wise consolidated financial data of companies involved in the Russian transport infrastructure for 2005/2013. Findings: The proposed alternative way to measure corporate operating efficiency has proved its academic consistency. A specific comparison between the transaction costs using the transactionalness index allows first to identify companies or regions/sectors, where there is excess complexity of economical communication in bargaining. Secondly, the index does not only point out indirectly to a degree of development in the institutional environment, but also the infrastructure (the transport one in the example given). Third, the transactionalness level may say of uncertainty and risks. As an addition to theoretical and methodological aspects of transaction costs, the authors justify an approach to their size estimation, as well as their differentiation dividing them into two groups: those of a natural type and a background type. In a course of their discussion, the authors have concluded that there are such transaction costs in place, which are standard in a manner of speaking. Originality/value: There is a discussion whether it is scientifically reasonable to use an index of transactionalness. There are reasons for applicability of the alternative approach to assess operational performance of companies in transport infrastructure as an indicative criterion of favouring external conditions to execute exchange transactions. According to the authors, a high level of transactionalness is associated with a low development level of transport infrastructure in a region. This says that their competitiveness is specifically less.
    Keywords: transactionalness, transport infrastructure, transaction costs, performance of transport infrastructure
    JEL: D23 L91
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:72001&r=cis

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