nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2019‒06‒24
eleven papers chosen by

  1. Eurasia Integration Index By Gharleghi, Behrooz
  2. The Gender Composition of Corporate Boards and Firm Performance: Evidence from Russia By Garanina, Tatiana; Muravyev, Alexander
  3. Институты коллективных жилищных сбережений By Polterovich, Victor; Ilinskiy, Dmitry; Boltonosov, Igor; Starkov, Oleg; Tutundzhyan, Artem; Zhikhareva, Alina
  4. Did sanctions help Putin? By Peeva, Aleksandra
  5. Counter sanctions and well-being population of Russia: econometric analyses By Dmitriy, Skrypnik; Marina, Shakleina
  6. How do Housing Returns in Emerging Countries Respond to Oil Shocks? A MIDAS Touch By Afees A. Salisu; Rangan Gupta
  7. Export structure and performance in a landlocked transitional economy: The case of Kyrgyz Republic By Prema-chandra Athukorala
  8. On a Globalized Exchange Rate Model and Currency Unions: A Note By Odedoyin, Stephen
  9. Impact of Corruption in Public Sector on Environmental Quality: Implications for Sustainability in BRICS and Next 11 Countries By Sinha, Avik; Gupta, Monika; Shahbaz, Muhammad; Sengupta, Tuhin
  10. Welfare Gains from the Variety Growth By Kancs, d'Artis; Persyn, Damiaan
  11. Determinants of global capital volatility in the BRICS grouping By Melis, Michael; Bonga-Bonga, Lumengo

  1. By: Gharleghi, Behrooz
    Abstract: Economic integration is a process that aims to reduce barriers that exist in economic, social, and cultural affairs between countries. Integration in its current format has risen significantly since the 1980s, when several trade agreements were made to facilitate collaboration between developed and developing countries. However, there is a need to measure outcomes and understand the phenomena of integration in various respects besides the economic perspective. The idea of tighter economic integration in Eurasia is gaining attraction, largely based on the experiences of other regional economic integration projects, such as NAFTA, the EU, CEMAC, and ASEAN. The economic integration of Eurasian states has been an issue for policymakers over the last two decades. Efforts have been made to promote initiatives to integrate these countries through creating a custom union and facilitating labour and capital mobility, but so far there has not been any attempt to coordinate the monetary policies. The region of Eurasia which is going to be analysed in this project includes thirteen states: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Therefore this research is trying to identify the level of integration among these economies.
    Keywords: Eurasia Integration Index, Institution, socio-culture
    JEL: E0 E5 O1
    Date: 2019–05–02
  2. By: Garanina, Tatiana (University of Vaasa); Muravyev, Alexander (Higher School of Economics)
    Abstract: This paper studies economic effects of the gender composition of corporate boards, employing a new and unique longitudinal dataset of virtually all Russian companies whose shares were traded on the national stock market between 1998 and 2014. Using multiple identification approaches, alternative measures of gender diversity, and several performance indicators, we find some evidence that companies with gender-diverse boards have higher market values and better profitability. These effects are particularly pronounced when firms appoint several women directors, which is consistent with the critical mass theory. The effects appear to be stronger in bad economic times or for firms experiencing economic difficulties. Overall, the Russian data lend some support to "the business case" for more women on corporate boards.
    Keywords: board of directors, gender diversity, firm performance, Russia
    JEL: G34 J16
    Date: 2019–05
  3. By: Polterovich, Victor; Ilinskiy, Dmitry; Boltonosov, Igor; Starkov, Oleg; Tutundzhyan, Artem; Zhikhareva, Alina
    Abstract: Modern Russian bank mortgages are not widely available to low- and middle-income households due to the high cost of housing, high interest rates and strict requirements for borrowers. There are reasons to believe that the solvent demand for mortgage loans may be increased through the development of collective savings institutions and cooperatives, such as сontractual savings for housing (Bausparkassen), housing savings accounts, housing savings and housing building cooperatives. This study analyzes foreign and domestic experience of their formation and functioning. It is shown that in the current Russian conditions, Bausparkassen and housing savings accounts are the most promising institution providing accumulation of savings of the general public for the purchase of housing. It is advisable to develop corporate programs to help employees to purchase housing, and combine them with savings and loan programs. Recommendations have been developed to improve legislation aimed at establishing and improving collective savings institutions. The book is based on the research conducted under the state contract No. GK 17/235 dated November 13, 2017. "Improvement of legislative regulation in order to increase the affordability of the population's own housing, including the development of mortgage lending mechanisms, сontractual savings for housing, share building, housing building cooperatives.
    Keywords: mortgage, collective savings, сontractual savings for housing (Bausparkassen), housing savings accounts, cooperatives, share building
    JEL: D02 D14 G21
    Date: 2019–06–06
  4. By: Peeva, Aleksandra
    Abstract: Do sanctions strengthen the targeted regime? I analyze the 2014 imposition of Western sanctions on Russia and its impact on voting. The US and the EU introduced targeted measures against Russian entities and individuals related to Putin's regime. Using polling station-level data I investigate whether Putin gained relatively more support among those local constituencies which were geographically close to a sanctioned firm. I find a significant effect of targeted sanction imposition on the vote share in presidential elections between 2012 and 2018. Putin gained 1.54 percentage points at those polling stations that had a sanctioned firm in immediate vicinity. Targeted sanctions imposition also affected voter turnout. The effect on voting can be explained as rally-around-the-flag in the face of sanctions, as long as voters did not endure economic losses through a decline in some sanctioned firms' economic performance.
    Keywords: sanctions,rally-around-the-flag,voting,Russia
    JEL: D72 P26
    Date: 2019
  5. By: Dmitriy, Skrypnik; Marina, Shakleina
    Abstract: This article examines the impact of counter-sanctions on the welfare of Russia’s population. We build a multiple-choice model and calculate the probability of being in a particular group of well-being based on the price (cost) of consumed counter-sanctions goods. The next step is the construction of a structural demand-supply system for estimating similar domestic good’s production elasticities. By knowing elasticity estimates we determine the price response to particular import closure. According to our estimates Russia's counter-sanctions led to an increase in poverty by 2.64 %.
    Keywords: counter sanctions; well-being; multiple-choice model; structural demand-supply system.
    JEL: C15 C30 C35 C38 C53 D12 F14 F17 I38 Q17 Q18
    Date: 2019
  6. By: Afees A. Salisu (Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Vietnam and Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, Vietnam); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, South Africa)
    Abstract: In this study, we utilize the recent oil shock data of Baumeister and Hamilton (2019) to analyze how housing returns in China, India and Russia respond to different oil shocks. Given the available data for the relevant variables, the MIDAS approach which helps circumvent aggregation problem in the estimation process is employed. We also extend the MIDAS framework to account for nonlinearities in the model. Expectedly, the housing returns of the countries considered respond differently to the variants of oil shocks. More specifically, we find that the housing returns of India and China which are net oil-importing countries do not seem to possess oil risk hedging characteristics albeit with the converse for Russia which is a major net oil-exporter. We also find that modeling with the MIDAS framework offers better predictability than other variants with uniform frequency.
    Keywords: Housing return, Oil shock, MIDAS regression, Nonlinearities, Forecasting
    JEL: C12 C22 Q41 Q47 R12 R31
    Date: 2019–06
  7. By: Prema-chandra Athukorala
    Abstract: Thanks to the market-oriented reforms undertaken since the early 1990s, the Kyrgyz Republic has emerged as one of the most globally integrated economies in the former Soviet space and the centre of entrepôt trade in Central Asia. However, the patterns of global economic integration of the Kyrgyz economy have so far been rather lopsided. While there have been some notable changes in the structure of exports in line with the country’s comparative advantage, export expansion has not kept pace with rapid import penetration in the economy. This has led to increased dependence of the economy on migrant-worker remittances and external financing. The composition of external financing has begun to shift from grants and concessionary loans towards borrowing at commercial rates, thus potentially exposing the economy to additional external economic shocks. A major contemporary policy challenge faced by the country is broadening the export base. This requires speedy implementation of behind-the-border reforms to supplement the significant opening of the economy to foreign trade and investment.
    Keywords: Kyrgyz Republic, transition economy, landlocked countries, export performance
    JEL: F13 O53 P27 P33
    Date: 2018
  8. By: Odedoyin, Stephen
    Abstract: The paper considered a global exchange rate system as well as a currency union incorporating the new emerging economies especially those in the BRIC (Brazil-Russia-India-China) group. This mechanism is viewed however to be a buildup on the existing exchange rate system in place before and after the structural transformation of the global financial architecture and landscape. Descriptive and analytical techniques were employed in the examination of the issues involved.
    Keywords: optimum currency area; currency union; fixed exchange rate system; crawling peg; law of one price
    JEL: F31 F33
    Date: 2019–05–31
  9. By: Sinha, Avik; Gupta, Monika; Shahbaz, Muhammad; Sengupta, Tuhin
    Abstract: This study investigates the impact of corruption in public sector on carbon emissions in presence of energy use segregation, following the Environmental Kuznets Curve (EKC) framework. The study has been carried out for Brazil-Russia-India-China-South Africa (BRICS) and Next 11 countries over the period of 1990-2017. Along with the finding of inverted N-shaped EKC for both the cases, we find that incidents of corruption enhance environmental degradation by reducing the positive impact of renewable energy consumption on environmental quality, and increasing the negative impact of fossil fuel consumption. This study has also divulged that the corruptive practices are more prone in case of the countries, where the development is mature and institutionalization is more stringent. Based on these findings, we suggest that environmental policies should take account of the corruption, and thereby, making the policies more robust and effective.
    Keywords: Environmental Kuznets Curve; CO2 Emissions; Corruption; Next 11; BRICS
    JEL: Q5
    Date: 2019–06–01
  10. By: Kancs, d'Artis (European Commission – JRC); Persyn, Damiaan (European Commission – JRC)
    Abstract: We estimate the variety gains of trade in Estonia, Latvia and Lithuania following the fall of the iron curtain more than a quarter of a century ago. We apply the methodology of Feenstra (1994); Broda and Weinstein (2006); Ardelean and Lugovskyy (2010) and Soderbery (2015) to domestic and international trade data for the period 1988-1997. Although, there was a decline in the number of local varieties during this period, an increase in the number of import varieties from the EU more than outweighed this decline. The increasing variety of imported goods from EU countries substantially lowered the cost of living, resulting in welfare gains to consumers that range from 0.73% in Latvia to 1.28% of GDP per year in Estonia.
    Keywords: variety growth, welfare gains, trade integration, iron curtain
    JEL: C68 F12 F14 F17 R12 R23
    Date: 2019–04
  11. By: Melis, Michael; Bonga-Bonga, Lumengo
    Abstract: This paper assesses the determinants of capital flow volatility in the BRICS economies by differentiating between foreign direct investment (FDI) and portfolio capital flow volatilities. Moreover, the paper distinguishes between external variables, policy variables and control variables among the important drivers of capital flow volatiltiy in these economies. Use is made of the general method of moment (GMM) estimation in panel regression for this end. The findings of the empirical analysis show, among other things, the importance of global volatility spillover in driving capital flow volatility in the BRICS countries.
    Keywords: capital flow volatility, BRICS, GMM panel regression, FDI, portfolio
    JEL: C23 F32 F41
    Date: 2019

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.