nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2020‒03‒30
ten papers chosen by

  1. Towards An ‘Ideal’ Cluster Support Program: Blending The Approaches By Evgeniy Kutsenko; Ekaterina Islankina; Vasiliy Abashkin; Elena Popova
  2. Life Satisfaction, Subjective Wealth, and Adaptation to Vulnerability in the Russian Federation during 2002-2017 By Hai-Anh Dang; Kseniya Abanokova; Michael Lokshin
  3. Methodological Limitations of the Literature in the Study of Economic Sanctions, the Ukrainian Crisis Case By Morad Bali
  4. Uncertainty in Turbulent Times By Vasily Astrov; Alexandra Bykova; Rumen Dobrinsky; Richard Grieveson; Julia Grübler; Doris Hanzl-Weiss; Gabor Hunya; Sebastian Leitner; Isilda Mara; Olga Pindyuk; Leon Podkaminer; Sandor Richter; Bernd Christoph Ströhm; Hermine Vidovic
  5. The Universal Link between Higher Education and Pro-Market Values By John V.C. Nye; Cheryl Litman; Maksym Bryukhanov; Sergiy Polyachenko
  6. Do Merger Policies Increase University Efficiency? Evidence From A Fuzzy Regression Discontinuity Design By Tommaso Agasisti; Aleksei Egorov; Margarita Maximova
  7. Application Period in Reverse Auctions By Sümeyra Atmaca
  9. Structural Reforms to Set the Growth Ambition By Rovo,Natasha
  10. Real-time weakness of the global economy: a first assessment of the coronavirus crisis By Perez-Quiros, Gabriel; Rots, Eyno; Leiva-Leon, Danilo

  1. By: Evgeniy Kutsenko (National Research University Higher School of Economics); Ekaterina Islankina (National Research University Higher School of Economics); Vasiliy Abashkin (National Research University Higher School of Economics); Elena Popova (National Research University Higher School of Economics)
    Abstract: Clusters have become a major element of innovation and industrial policies in many countries worldwide. Over the years, targeted cluster support programs have been designed and implemented, each featuring a variety of approaches to the selection of clusters, terms and prerequisites for funds allocation, the areas of support, etc. Such approaches have both the advantages and drawbacks, which leads to a conception of an ‘ideal’ support program mix that could consider the best practices and ignore some unsuccessful solutions. The working paper aims at suggesting such an ‘ideal’ approach to designing a cluster support program, based on the synchronization of the most effective elements of various such programs in Russia. Over the past decade, cluster policy has occupied an important position in the agenda of the Russian Government. Two federal Ministries – the Ministry of Economic Development and the Ministry of Industry and Trade initiated several cluster support programs for innovative and industrial clusters. Nowadays, there are more than 118 clusters in Russia, and over a half of them benefit from current public support measures – 27 innovative clusters, 42 industrial and 12 leading clusters. The comparative analysis of federal support programs revealed several benefits and limitations in both approaches in terms of subsidy allocation principles, areas of support and cluster selection criteria. In particular, among the key advantages of innovative clusters programs are the focus on cluster management development, and identifying the strongest clusters through one-time selection procedure. The successful features of industrial clusters program are permanent application process, reduction of budget risk due to compensation principle of funding, and stimulation of cooperation through special requirements for joint projects. The major disadvantages of innovative cluster support programs are budget risks caused by advanced financing of cluster activities, and a lack of project focus; the probability to support low-quality projects and neglecting the issue of cluster management development are the key weaknesses within the industrial clusters program. The paper suggests a ‘smart’ synchronization of approaches to cluster support, which blends the best practices of different ministries.
    Keywords: cluster policy, innovative clusters, national cluster support program, industrial clusters.
    JEL: D04 O18 O19 O38 R58
    Date: 2020
  2. By: Hai-Anh Dang (World Bank); Kseniya Abanokova (National Research University); Michael Lokshin (World Bank)
    Abstract: We offer the first study on vulnerability adaptation to subjective well-being, using rich panel data over the past two decades for Russia. We found no adaption to vulnerability for life satisfaction and subjective wealth, with longer vulnerability spells being associated with more negative subjective welfare. Similar results hold for other outcomes including satisfaction with own economic conditions, work contract, job, pay, and career. Some evidence indicates that despite little differences between urban and rural areas with life satisfaction, rural areas exhibit a stronger lack of adaptation for subjective wealth, particularly for longer durations of vulnerability. Higher education levels generally exhibit a stronger lack of adaptation. The lack of adaptation to vulnerability is, however, similar at different education levels for subjective wealth. We also find a U-shaped relationship between age and durations of vulnerability and disability to have the most negative impacts on life satisfaction and subjective wealth.
    Keywords: vulnerability; adaptation; satisfaction; subjective wealth; gender; panel data; Russia.
    JEL: D6 I3 O1
    Date: 2020–03
  3. By: Morad Bali (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UPMF - Université Pierre Mendès France - Grenoble 2 - UGA - Université Grenoble Alpes)
    Abstract: Succinct conference text trying to highlight biases of papers studying effects of international economic sanctions in the Ukrainian crisis case.
    Keywords: Economics,Russia,Economic sanctions
    Date: 2020–02–05
  4. By: Vasily Astrov (The Vienna Institute for International Economic Studies, wiiw); Alexandra Bykova (The Vienna Institute for International Economic Studies, wiiw); Rumen Dobrinsky (The Vienna Institute for International Economic Studies, wiiw); Richard Grieveson (The Vienna Institute for International Economic Studies, wiiw); Julia Grübler (The Vienna Institute for International Economic Studies, wiiw); Doris Hanzl-Weiss (The Vienna Institute for International Economic Studies, wiiw); Gabor Hunya (The Vienna Institute for International Economic Studies, wiiw); Sebastian Leitner (The Vienna Institute for International Economic Studies, wiiw); Isilda Mara (The Vienna Institute for International Economic Studies, wiiw); Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw); Leon Podkaminer (The Vienna Institute for International Economic Studies, wiiw); Sandor Richter (The Vienna Institute for International Economic Studies, wiiw); Bernd Christoph Ströhm; Hermine Vidovic (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Due to the coronavirus pandemic, Eastern European economies could be set for their worst year since the global financial crisis.
    Keywords: CESEE, economic forecast, Europe, Central and Eastern Europe, Southeast Europe, Western Balkans, new EU Member States, CIS, Russia, Ukraine, Romania, Czech Republic, Hungary, Turkey, Serbia, convergence, business cycle, coronavirus, external risks, trade war, EU funds, private consumption, credit, investment, digitalisation, servitisation, exports, FDI, labour markets, unemployment, employment, wage growth, migration, inflation, central banks
    JEL: E20 E31 E32 F15 F21 F22 F32 F51 G21 H60 J20 J30 J61 O47 O52 O57 P24 P27 P33 P52
    Date: 2020–03
  5. By: John V.C. Nye (National Research University Higher School of Economics); Cheryl Litman (National Research University Higher School of Economics); Maksym Bryukhanov (National Research University Higher School of Economics); Sergiy Polyachenko (University of New Brunswick)
    Abstract: Does education promote support for liberal economic views? We show in a large cross-section of countries that in almost all cases those with higher educational attainment are more pro-market and less sympathetic to economic regulation than those who have less formal education. This is true in countries with high support for markets and in those with high distrust of markets and strong support for government regulation. Fixed-effect models show that respondents’ education is negatively related to support for state economic activities. When considering Russian micro data, we observe that whether we confine ourselves to older people educated in the Soviet period or compare the results to a sample from the post-Soviet generation, we consistently find that those with more education are relatively less supportive of market regulation. Different models also show that parental education is a positive predictor of pro-market values
    Keywords: Education, world, liberal values, price control, RLMS-HSE, European Values Survey, Life in Transition Survey, World Values Survey
    JEL: P21 I18 J68 H54 Q58
    Date: 2020
  6. By: Tommaso Agasisti (National Research University Higher School of Economics); Aleksei Egorov (National Research University Higher School of Economics); Margarita Maximova (National Research University Higher School of Economics)
    Abstract: This paper studies the effect of merger policies in Russia on university efficiency. We consider the non-voluntary merger policy conducted by the Ministry of Education and Science based on university performance indicators. First, the efficiency scores of universities are estimated using a bootstrapped DEA non-parametric technique. The efficiency scores were evaluated for universities that were merged and for a control group formed through propensity score matching before and after the implementation of the policy. Then, a fuzzy regression discontinuity design was implemented in order to reveal the causal impact of mergers on efficiency levels. We find a positive, statistically significant effect of merger policy on university efficiency. The results of the analysis suggest that merged universities experience greater efficiency gains (or smaller efficiency declines) after mergers.
    Keywords: Universities, mergers, fuzzy regression discontinuity design, efficiency, DEA, Malmquist index.
    JEL: I21 I23 I28
    Date: 2020
  7. By: Sümeyra Atmaca (-)
    Abstract: The duration to apply for participation in auctions affects entry costs and eventually the allocation and prices of contracts. The role of the application period is studied using Russian public procurement data on gasoline in 2011-2013. By relying on formal rules on the determination of the application period, I find that longer periods enhance competition and lead to price reductions. Moreover, I show that public buyers avoid long application periods. They shorten the period if they need gasoline immediately but I further argue that it facilitates favoritism. Finally, evidence is provided of collusion sustaining favoritism
    Keywords: public procurement, auction design, corruption, regulation
    JEL: H57 K42
    Date: 2020–03
  8. By: Anatoliy Kostruba (Vasyl Stefanyk Precarpathian National University)
    Abstract: Громадське об'єднання «Ліга професорів права, докторів юридичних наук та докторів філософії у сфері права» продовжує серію видань «In Memoraim», присвячену видатним науковцям – правникам, які відійшли у кращий світ, однак пам'ять про яких завжди буде жити у серцях їх учнів, колег та близьких. Ця книга є збірником спогадів та статей, що присвячені пам'яті видатного вченого-цивіліста, фахівця в сфері деліктного права, доктора юридичних наук, професора Діни Василівни Бобрової та підготовлені її учнями, колегами та друзями. У книзі вміщений і інший матеріал, зокрема перший переклад українською мовою Принципів Європейського деліктного права. Книга розрахована на професійних юристів, студентів юридичних факультетів, а також широкої читацький загал.
    Keywords: Civil liabilities,Civil Law,Civil legal relations
    Date: 2019–01–29
  9. By: Rovo,Natasha
    Abstract: The effect of structural reforms on growth in Europe and Central Asia is assessed by looking separately at each supply-side channel: capital, labor, and productivity, with the last estimated using the stochastic frontier approach. By controlling for the interaction with the economic cycle, the paper also investigates whether timing matters. Improvements in human capital, regulatory quality, and government effectiveness have the most impact on potential growth, along with financial development. European Union accession may also boost growth, mainly by encouraging capital deepening. However, changes in labor market regulation and tariffs may have ambiguous effects. Applying the results to Serbia, the analysis demonstrates that closing certain structural gaps with the frontier would help boost its potential.
    Date: 2020–03–09
  10. By: Perez-Quiros, Gabriel; Rots, Eyno; Leiva-Leon, Danilo
    Abstract: We propose an empirical framework to measure the degree of weakness of the global economy in real-time. It relies on nonlinear factor models designed to infer recessionary episodes of heterogeneous deepness, and fitted to the largest advanced economies (U.S., Euro Area, Japan, U.K., Canada and Australia) and emerging markets (China, India, Russia, Brazil, Mexico and South Africa). Based on such inferences, we construct a Global Weakness Index that has three main features. First, it can be updated as soon as new regional data is released, as we show by measuring the economic effects of coronavirus. Second, it provides a consistent narrative of the main regional contributors of world economy's weakness. Third, it allows to perform robust risk assessments based on the probability that the level of global weakness would exceed a certain threshold of interest in every period of time. JEL Classification: E32, C22, E27
    Keywords: business cycles, factor model, international, nonlinear
    Date: 2020–03

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