nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2019‒11‒04
eleven papers chosen by

  1. THE EURASIAN DIMENSION: DOES EAEU-ASEAN FORMAT HAVE A FUTURE? By Alexander S. Korolev; Hryhorii M. Kalachyhin
  2. Conquering the box office: Factors influencing success of international movies in Russia By Gänßle, Sophia; Budzinski, Oliver; Astakhova, Daria
  3. International Migration Processes and its Impact on the Georgian Labor Market By Nanuli Okruashvili; Lela Bakhtadze
  4. The effects of treaties ceded to Russia and Britain during the Qajar period (Naseri and Mozafari) By Mahmood Seyyed; Mohammad Sepehri
  5. Oil Shocks and Stock Market Volatility of the BRICS: A GARCH-MIDAS Approach By Afees A. Salisu; Rangan Gupta
  6. How innovation affects performance By Ksenia Gonchar; Maria Kristalova
  7. Truncated priors for tempered hierarchical Dirichlet process vector autoregression By Sergei Seleznev
  8. Is It Worth Doing Science Online? A Reflexive View on the Online Surveys By Andrey V. Rezaev; Anastasia A. Ivanova
  9. Attitude of Georgian Consumers to Healthy Nutrition By Nugzar Todua
  10. The Influence of Foreign Direct Investments on the Economic Development of the Country By Nanuli Okruashvili; Lela Bakhtadze
  11. The impact of coproducing services with clients on knowledge-intensive business services’ innovativeness By Nikolay Chichkanov

  1. By: Alexander S. Korolev (National Research University Higher School of Economics); Hryhorii M. Kalachyhin (National Research University Higher School of Economics)
    Abstract: The crisis in relations with the West and the subsequent sanctions hampered the development of Moscow’s cooperation with a number of foreign partners. Under these conditions, the role of the EAEU as an agent for promoting Russia's foreign trade interests has dramatically increased, including the formation of Greater Eurasian Partnership, Moscow’s flagship initiative. Russia’s officials have repeatedly stressed that ASEAN is one of the major pillars of the emerging geostrategic space. The 3rd ASEAN-Russian Federation Summit on Strategic Partnership held in Singapore in November 2018 resulted in signing of Memorandum of Understanding (MOU) between ASEAN and Eurasian Economic Commission (EEC) on Economic Cooperation which aims to unlock the potential of cooperation between two integration blocks. The paper addresses the following question – to what extent can Russia-ASEAN strategic partnership create a positive spillover effect on the EAEU-ASEAN ties and trigger the Greater Eurasian Partnership concept. In doing so, the paper focuses on factors which stand behind ASEAN’s rising interest in Eurasian space, EAEU’s strive to develop relationships with Association and the limits of bilateral cooperation in a broader Greater Eurasian framework. It is concluded that the full engagement of ASEAN member states into Eurasian initiatives (even taking into account their successful implementation) depends on several factors. Firstly, to what extent EAEU member states can eliminate structural problems - institutional imbalances, limited export supplies, internal disagreements between the participants. Secondly, it will depend on whether Russia and ASEAN will be able to back up the status of strategic partnership with economic projects. Finally, will the EAEU partners be able to offer ASEAN an attractive interaction format, for example, the Great Eurasian Partnership, which needs to be conceptually filled and linked with ASEAN key initiatives and plans
    Keywords: EAEU, ASEAN, Russia, Greater Eurasian Partnership, free trade agreement, strategic partnership
    JEL: Z
    Date: 2019
  2. By: Gänßle, Sophia; Budzinski, Oliver; Astakhova, Daria
    Abstract: This paper empirically examines factors influencing box office success of international movies in Russia between 2012 and 2016. It adds to existing research on national movie markets, by highlighting the relevance of differences in culture, institutions, language, and consumption habits for movie success. Three groups of success factors are distinguished: distribution related (e.g. budget, franchise), brand and star effects (e.g. top actors or directors), and evaluation sources (e.g. critics and audience rating). We add novel region-specific variables like seasonality, time span between the world and local release, attendance of international stars at Russian movie premieres, and title adaptation to Russian culture. The results indicate that budget, franchise, employment of popular actors and directors, electronic word of mouth and audience ratings exert a significantly positive influence on Russian box office success. However, we find significantly negative effects for international critics and, interestingly, the adaption of movie titles. The main contributions of our study are (i) success factors vary between countries with different cultures, (ii) region-specific factors matter, and consequently (iii) results from one market (e.g. the US) cannot easily be generalised.
    Keywords: motion picture economics,movies,entertainment,box office success,Russia
    JEL: L10 L82
    Date: 2019
  3. By: Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history)
    Abstract: The purpose of the presented paper is to analyze the impact of international migration processes on the labor market of Georgia, to develop methodological and practical recommendations on the basis of which the efficiency of the labor market will be increased. The authors of the work have identified the theoretical and practical, conceptual and organizational problems existing in the field of international migration, and worked out the specific ways of solving them.The article discusses the international migration processes of the new millennium, social, cultural and economic aspects of international migration and development in Georgia, the problems identified in the state regulation of labor migration, the scale of labor migration and the current state of its study. In the article, the authors reviewed the scope and current state of international migration, its impact on the Georgian labor market, long-term results of labor mobility. The goals , strengths and weaknesses of the migration policy of the Government of Georgiaare analyzed, the basic directions and mechanisms of its realization. It analyzes the fact that, only by effective marketing of the labor market, of the country will make maximum use of the global challenges, associated with international migration processes. The authors have estimated systems of specific measures that will ensure the effective functioning of the Georgian labor market in the growth of international migration and the full involvement of the country in integration processes.
    Keywords: International Business, International Migration, Labor Market, Migration Policy, Marketing of the Labor Market
    JEL: F00 F66 F22
    Date: 2019–07
  4. By: Mahmood Seyyed (Central tehran branch, Islamic Azad University, Tehran); Mohammad Sepehri (Central tehran branch, Islamic Azad University, Tehran)
    Abstract: Qajar governments of Naseri and Mozaffari periods, while western countries were developing in the economic fields, investment exporting policy to undeveloped countries, lagged behind others in the domains of agriculture, trade and industry. Regarding this fact and determining its origins, many theories have been presented since that time. Obstructionism in the essence of Qajar state and government's inability to recognize the economic facts and foundations of countries' development, proper cultural basis for social retreat from the world and ultimately the government's submission to Russia's and Britain's colonial policy were among the causes for the lag of country's economy behind the process of development. This article will firstly deal with the economic changes and study of Iran's government in Naseri and Mozaffari periods, then it will refer to the scant measures taken by the government in the domain of economic development which led to a fruitless economy. Thirdly, the article tries to talk about those social layers of the country such as merchants who had significant incentives to stimulate the economic growth in the country. They not only lacked the government's support but faced many obstacles by the state. In the fourth place, we will infer from high rate of bankruptcy, degeneration of domestic traditional industries, conversion of a few trades, some entities, to economy, obvious signs of economic deadlock against development and analyze them.
    Keywords: Qajar, Naseri, Mozaffari, privileges, consequences, Russia, Britain
    Date: 2019–07
  5. 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, 0002, South Africa)
    Abstract: In this study, we employ the GARCH-MIDAS model to investigate the response of stock market volatility of the BRICS to oil shocks. We utilize the recent datasets of Baumeister & Hamilton (2019) where oil shocks are decomposed into four variants - oil supply shocks, economic activity shocks, oil consumption shocks, and oil inventory shocks. We further decomposed each of these shocks into positive and negative shocks, and our findings show heterogeneous response of stock market volatility of the BRICS countries to the alternative oil shocks including the positive and negative shocks. The differing responses across the BRICS countries could be attributed to the difference in the economic size, oil production and consumption profile, market share distribution across firms, as well as financial system and regulation efficiency.
    Keywords: Oil shocks, Stock market volatility, BRICS, GARCH-MIDAS
    JEL: C32 G12 G15 Q02
    Date: 2019–10
  6. By: Ksenia Gonchar (National Research University Higher School of Economics, Moscow); Maria Kristalova (Bremen University and Friedrich-Schiller-University Jena)
    Abstract: This paper studies how innovation strategies of Russian manufacturing firms affect various features of firm performance. A multi stage model is used, which relates the firm's decision to undertake R&D to its innovation output, technical efficiency, labor productivity, and growth. We also include imports into the knowledge production function, because catching up economies may adopt technologies embodied in imported hardware. Additionally, we link productivity and innovation output to survival. We find that both types of knowledge input - R&D and imports - strongly determine innovation. Innovations yield the strongest performance return in the case of catching up to technological frontier. Product innovation is more beneficial than process innovation in all performance features except for labor productivity. However, higher efficiency does not improve the growth rates or survival time of manufacturing firms. Taken together, these results show that innovation is not uniformly rewarded across all features of firm performance.
    Keywords: innovation, productivity, growth, survival, Russia
    JEL: C30 D24 O30
    Date: 2019–02–25
  7. By: Sergei Seleznev (Bank of Russia, Russian Federation)
    Abstract: We construct priors for the tempered hierarchical Dirichlet process vector autoregression model (tHDP-VAR) that in practice do not lead to explosive forecasting dynamics. Additionally, we show that tHDP-VAR and its variational Bayesian approximation with heuristics demonstrate competitive or even better forecasting performance on US and Russian datasets.
    Keywords: Bayesian nonparametrics, forecasting, hierarchical Dirichlet process, infinite hidden Markov model.
    JEL: C11 C32 C53 E37
    Date: 2019–10
  8. By: Andrey V. Rezaev (St. Petersburg State University, Russian Federation); Anastasia A. Ivanova (St. Petersburg State University, Russian Federation)
    Abstract: The paper addresses the issues and challenges scientific communication is facing in current scholarly practices both within a specific scientific community and public at large. First, the paper presents methodological groundings for studying communication of results as a particular mechanism of operating with discourse. Such methodological framework focuses on the process of ‘black-boxing’ of scientific results. Further, the authors illustrate a way such results go from a hypothesis to a scholarly output, and call for actions. On the basis of the Online Surveys organized and conducted by the American-Russian Research Laboratory at St Petersburg State University ( for a specific field research in 2017-2018, the authors demonstrate gradual detextualization and generalization of results, which are inherent to the specific way of scientific persuasion. Finally, the authors outline the paths of the current transformation of scientific knowledge production and dissemination which calls for further research problematization.
    Keywords: scientific communication, black-boxing, generalization, knowledge distribution, online surveys
    Date: 2019–08
  9. By: Nugzar Todua (Ivane Javakhishvili Tbilisi State University)
    Abstract: Work shows that in the modern conditions particular attention is paid to in-depth studying of the population?s practices of healthy nutrition, as dietary norms, traditions and customs comprise integral part of everyday life. Regarding the mentioned, the work analyses the situation with respect of population?s healthy nutrition in Georgia and in the world and identifies the key problems related to it. Attention is focused on the fact that for modern Georgia healthy nutrition is a significant problem and this is reflected in buying behavior of Georgian consumers. Article underlines the role of social marketing in ensuring consumers? healthy nutrition. It emphasizes significance of food labeling, as a marketing instrument for consumers awareness in healthy nutrition. For the purpose of clarification of Georgian consumers? attitude to healthy nutrition the marketing research was conducted. The research showed the levels of the respondents? awareness in healthy nutrition, attitude of the consumers and their trust to the information on the food packages. With respect of attitude to healthy nutrition, the work identifies the consumer types. Applying dispersion analysis we have showed impact of the consumers? awareness, as well as trust to the information on the food packages on buying behavior in relation to healthy nutrition. On the basis of the conducted research the conclusions were made that allow formulation of global vision of Georgian consumers? attitude to healthy nutrition.
    Keywords: healthy nutrition, Georgian consumers, marketing research, awareness, food labeling
    JEL: M31
    Date: 2019–07
  10. By: Nanuli Okruashvili (IvaneJavakhishvili, Tbilisi, State University, Department of Marketing); Lela Bakhtadze (IvaneJavakhishvili, Tbilisi, State University,Department of international economics and economic teaching history)
    Abstract: In modern epoch the process of financial globalization requires the assessment of the economic consequences of regional integration and free movement of capital in the countries. The reason for this is the fact that the stable economic growth of the country directly depends on inflows and outflows of the capital. Georgia is a small transformational country with open economy heavily depending on the existing economic conditions of the region. The article has studied foreign demands and direct impacts of foreign investment on the economic development of the country. The goal of the research is to determine the priority areas and fields for direct foreign investment in Georgia, to reveal positive and negative influences attracting direct foreign investments as well as develop recommendations stimulating direct foreign investments in the country.In the article comprehensively studied the reasons for the decrease in investment.The authors of the research have compiled and systematized information about the investment market of Georgia, revealed theoretical and practical, conceptual and organizational problems, existing in. One of the reasons for the reduction of direct foreign investments by authors is the low level of development and use of investment marketing, which determines the country's low level of competitiveness in the global investment market. Accordingly, Based on systematic analysis of the global investment market, have been worked out specific methodological recommendations, that are related to developing effective marketing strategies for increasing the improvement of the investment climate and investment image of Georgia and its competitiveness on the global investment market.
    Keywords: Foreign Direct Investments, Foreign Demand, Inflow of Investments, Stimulate Investments, Investment Marketing
    JEL: F00 F21 F63
    Date: 2019–07
  11. By: Nikolay Chichkanov (National Research University Higher School of Economics)
    Abstract: Despite the growing interest to the field of coproduction from the service-dominant logic literature, this concept is still being emerging and most of the existing papers do not provide any empirical evidence. The aim of the study is to investigate whether those KIBS firms that involve their customers in coproduction of services are more innovative. This paper explores the relationships between a set of innovation drivers and implementation of innovations in KIBS based on a sample of 441 firms operating in Russia. The results show that coproduction of services increases the possibility of both technological and non-technological innovations in KIBS to be implemented. This finding suggests that in addition to the service offerings quality improvement, coproduction of KIBS also acts as an innovation driver, which requires an attention from innovation managers
    Keywords: KIBS, coproduction, client involvement, innovation, innovation drivers
    JEL: O30 O31
    Date: 2019

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