nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2018‒10‒29
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Les relations commerciales agroalimentaires de la Russie avec l’Union européenne, l’embargo russe et les productions animales By Vincent Chatellier; Thierry Pouch; Cecile Le Roy; Quentin Mathieu
  2. What Goes Around Comes Around: The Effects of Sanctions on Swedish Firms in the Wake of the Ukraine Crisis By Gullstrand, Joakim
  3. Non-farm employment trends and policy in rural areas of Samarkand region (Uzbekistan) By Hasanov, Shavkat; Sanaev, Golib
  4. Comparative Analysis of Ethical Boundaries and Regulations for Lawyers in The United States, European Union and Russia/Legal Profession in a Comparative Context By Katerina Lewinbuk
  5. Private Sector Policymaking By David Szakonyi
  6. Transferts de fonds, stabilité politique et croissance économique dans les pays de l’ex URSS By Florent Deisting; Charlotte Fontan Sers; Farid Makhlouf
  7. Republic of Moldova; Technical Assistance Report-Public Sector Debt Statistics By International Monetary Fund

  1. By: Vincent Chatellier (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Thierry Pouch (URCA - Université de Reims Champagne Ardenne, APCA - Assemblée Permanente des Chambres d'Agriculture); Cecile Le Roy (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Quentin Mathieu (APCA - Assemblée Permanente des Chambres d'Agriculture)
    Abstract: Russia has been for many years an important outlet for the European Union (EU) in the agrifood sector. Following the break-up of the Union of Soviet Socialist Republics (USSR) in 1991, Russian agriculture, which until then had been dominated by sovkhozes and kolkhozes, had suffered a drastic fall in domestic production, in particular in animal production. Over the past fifteen years, and due to a policy encouraging investment in agriculture, especially in agro-industrial complexes where the integration model prevails, agricultural production progressed rapidly, at least in certain sectors, including cereals, poultry meat and pork. This development of domestic supply and the diversification of supplier countries (including the United States, Brazil, etc.) had, even before the embargo imposed since August 2014, led to a substantial loss of European exports to Russia. Since the embargo was effective, Russia is no longer a privileged partner for European animal productions. Thanks to the growth of imports in several Asian countries, especially in China, several European animal sectors have nevertheless managed, despite the closure of the Russian market, to increase their exports. This paper deals, first of all, with the main stages of the Russian agricultural and trade policy, the development of agricultural production in this country, and the implementation of the embargo. Using customs statistics data (from BACI and COMEXT databases) over the period 2000 to 2016, it then discusses the evolution of trade flows following the implementation of the embargo, with particular emphasis on Russia's bilateral relations with the EU in four animal sectors: milk and milk products, beef and veal, poultry meat, and pork.
    Abstract: La Russie fut pendant de nombreuses années un débouché important de l'Union européenne (UE) dans le domaine agroalimentaire. A la suite de l'éclatement de l'Union des Républiques Socialistes et Soviétiques (URSS) en 1991, l'agriculture russe jusqu'alors dominée par des sovkhozes et des kolkhozes, a en effet subi une baisse drastique de sa production intérieure, notamment en productions animales. Depuis une quinzaine d'années, et moyennant une politique favorable à l'investissement en agriculture, surtout dans des complexes agroindustriels où le modèle de l'intégration prévaut, la production agricole progresse rapidement, du moins dans certaines filières dont celles des céréales, de la viande de volailles et de la viande porcine. Ce développement de l'offre intérieure et la diversification des pays fournisseurs (dont les Etats-Unis, le Brésil, etc.) ont, avant même l'embargo appliqué depuis août 2014, entraîné une perte substantielle des exportations européennes vers la Russie. L'embargo ayant été efficace, la Russie ne constitue plus un partenaire privilégié pour les productions animales européennes. Grâce à la croissance des importations dans plusieurs pays asiatiques, surtout vers la Chine, plusieurs filières animales européennes sont néanmoins parvenues, en dépit de la fermeture de ce marché, à augmenter leurs exportations. Ce papier traite, tout d'abord, des principales étapes de la politique agricole et commerciale russe, du développement des productions agricoles dans ce pays et des conditions de la mise en oeuvre de l'embargo. Moyennant la valorisation des données statistiques des douanes (bases de données BACI et COMEXT) sur la période 2000 à 2016, il discute ensuite de l'évolution des courants d'échanges consécutive à la mise en oeuvre de l'embargo, en insistant surtout sur la relation bilatérale de la Russie avec l'UE pour quatre filières animales : le lait et les produits laitiers, la viande bovine, la viande de volailles et la viande porcine.
    Keywords: russia,import ban,competitiveness,trade,animal production,livestock farms,russie,embargo,échange commercial,production animale,compétitivité
    Date: 2018
  2. By: Gullstrand, Joakim (Department of Economics, Lund University)
    Abstract: This paper focuses on the effects of sanctions on Swedish firms' sales across markets, as well as sanctions’ effects on their domestic production. As a case study, the paper uses sanctions imposed on Russia and by Russia in 2014. The results suggest that the total costs of these sanctions due to a drop in sales for Swedish firms amounts to around 1 billion SEK in 2013 prices, which implies a rather limited impact on the Swedish economy overall, which amounted to a total of around 4000 billion SEK in 2013. The total impact may be divided into a target effect and a sender effect. The target effect is reflected in a 65% drop in sales of banned products in the Russian market, while the sender effect on exports outside Russia was less important. The ripple effects on other markets of these sanctions were, however, asymmetrical and complex. Sales on the domestic market was on average intact while exports to markets facing the same type of sanctions fell. The most vulnerable firms could face a loss in sales of more than 40\% of their value added, and the most important firm-level mechanism, as to how firms responded in their domestic production, was financial distress. I found, however, an additional mechanism within firms regarding their export response on markets other than Russia, since the negative impact was concentrated on their fringe products, while their core business remained intact after the sanctions were implemented.
    Keywords: Sanction; embargo; export; production; Sweden
    JEL: F13 F14 F51 R11
    Date: 2018–10–23
  3. By: Hasanov, Shavkat; Sanaev, Golib
    Abstract: Nonfarm employment plays an important role in absorbing unemployment in rural areas of developing countries. The agricultural transition in Uzbekistan followed by structural transformations in the economy changed the rural economy. Although farm restructuring and farm optimization policies led to agricultural growth, they had a negative impact on rural employment. The government of Uzbekistan promoted many policies to create jobs within the country. A presidential decree launched the State Program on Rural Development and Well-being in 2009, which played a crucial role in developing the economic and social infrastructure of rural areas. Small business and private entrepreneurship were given priority to absorb the rising unemployment, especially in rural areas. Against this background, the paper studies non-farm employment trends in rural areas of Samarkand region. In particular, we explore the main drivers of non-farm business development and its impact on rural employment in the Samarkand region. The main employment trends in rural areas of Samarkand region are described using statistical data. We also explore migration trends in Uzbekistan and Samarkand regions. A survey was conducted with 34 mahallas’ (community) chairpersons and representatives to better analyze the intersectoral and international migration of the agricultural workforce. Although remittances are crucial in poverty alleviation of Central Asian countries, including Uzbekistan, the economic crisis in 2008–2009 in Russia cast a shadow on the further prospects of migration. We show how the development of non-agricultural business in the Samarkand region increased the incomes of the rural population. The agro-processing sector plays a vital role in creating clusters based on the agro-industrial complex, which in turn will create more opportunities for employment in rural areas of the country.
    Keywords: Community/Rural/Urban Development, Labor and Human Capital
    Date: 2018
  4. By: Katerina Lewinbuk (South Texas College of Law Houston)
    Abstract: This presentation is intended to expose participants to various types of regulation of lawyers in different parts of the world. It will comparatively examine the structure and ethical framework of the legal profession in the United States (mainly based on the ?Model Rules of Professional Conduct? issued by the American Bar Association), European Union (covered in the well-accepted cross-border legal practice regulation of lawyers-document titled the ?CCBE?), and in Russia (described in the ?Code of Professional Ethics for the Attorney?), as an example of a post-Soviet country, including the recourse that may be taken against attorneys for ethical misconduct and professional malpractice. Other topics to be covered will include a range of accompanying ethical and legal issues, such as the role of lawyers and judges, beginning and ending of the attorney-client relationship, globalization of the legal profession and the image and expectations of lawyers in parts of the world mentioned above. The presentation will also address various aspects of ethical law practice in selected countries described and analyze the reasons behind established traditions and practices in various legal systems.
    Keywords: comparative law/analysis, regulation of lawyers, USA, EU law, Ethics and the legal, profession, Global lawyering
    JEL: P37 K19 F01
    Date: 2018–07
  5. By: David Szakonyi (George Washington University)
    Abstract: Candidates often tout their private sector experience when running for public office. But do businessperson politicians actually govern differently? This paper argues that given their preferences and managerial expertise, businesspeople in office will adopt policies favorable to the business community and improve government efficiency. To test these claims, I collect data on over 33,000 Russian mayors and legislators and investigate policy outcomes using detailed municipal budgets and over a million procurement contracts. Using a regression discontinuity design, I find that businessperson politicians increase expenditures on roads and transport, while leaving health and education spending untouched. Prioritizing economic over social infrastructure brings immediate benefits to firms, while holding back long-term accumulation of human capital. However, businesspeople do not reduce budget deficits, but rather adopt less competitive methods for selecting contractors, particularly in corruption-ripe construction. In all, businessperson politicians do more to make government run for business, rather than like a business.
    Keywords: monocentric city model, price gradient, zoning, standard urban model
    JEL: P26 P25 H50 H11 H72
    Date: 2018–08
  6. By: Florent Deisting (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Charlotte Fontan Sers (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau); Farid Makhlouf (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)
    Abstract: Cet article analyse la relation empirique entre les transferts de fonds et la croissance économique dans les pays en transition se situant au sein de l'ancien bloc soviétique. Il cherche également à mesurer si l'effet des transferts de fonds est plus efficace dans les pays où la stabilité politique est plus présente, en utilisant la méthode des moindres carrés généralisés pour des données de panel, afin de contrôler l'hétéroscédasticité et la corrélation sérielle. Les résultats montrent principalement que les transferts de fonds ont un impact négatif sur la croissance et que ce dernier dépend de la stabilité politique des pays concernés. This paper examines the empirical relationship between remittances and economic growth in post-Soviet states, and the role that political stability plays in this context. Using Feasible Generalized Least Squares to tackle group heteroskedasticity and serial correlation in panels, we find that remittances have a significant negative correlation with the receiving countries' economic progress. Besides, this relationship is contingent upon the political stability the country enjoys.
    Keywords: Political stability,Remittances,Economic growth,General FGLS,Post-Soviet States
    Date: 2018–10–01
  7. By: International Monetary Fund
    Abstract: In response to a request from the European Department, a Public-Sector Debt Statistics (PSDS) technical assistance (TA) mission was conducted in Chisinau during April 2–6, 2018. With the objective of improving Moldovan public sector debt statistics, the mission conducted an evaluation of data comprehensiveness in terms of: (i) institutional coverage; (ii) instrument coverage, including maturity structures; (iii) valuation of debt liabilities; and; (iv) additional fiscal risks resulting from contingent liabilities (on-lending and guarantees). Like the recent article IV mission1 and Public Finance Management (PFM) assessment,2 the mission found that Moldova continues to improve their recording, compilation and dissemination of public sector debt statistics reflecting potential fiscal risks, but faces five main statistical challenges going forward.

This nep-cis issue is ©2018 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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.