nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2021‒02‒22
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Russian Federation; 2020 Article IV Consultation-Press Release; Staff Report By International Monetary Fund
  2. On the Economics of the Restructuring of World Railways, with a Focus on Russia By Russell Pittman
  3. Активность и кооперация университета, бизнеса и государства в Акмолинской области Республики Казахстан By Myrzakhmet, Marat; Myrzakhmet, Zhanat; Myrzakhmet, Bolat
  4. Quantifying the Impact of Economic Sanctions on International Trade in the Energy and Mining Sectors By Larch, Mario; Shikher, Serge; Syropoulos, Costas; Yotov, Yoto

  1. By: International Monetary Fund
    Abstract: Russia entered the crisis with low potential growth but strong macroeconomic policy frameworks and significant buffers. Policy space allowed the authorities to mount a sizeable public health and countercyclical response to the crisis, which has helped limit the economic downturn. Nevertheless, the crisis is likely to leave some long-term scars.
    Date: 2021–02–09
  2. By: Russell Pittman (U.S. Department of Justice)
    Abstract: This lecture, delivered at the Higher School of Economics in 2020, opens with a discussion of the modern history of economists’ treatment of network industries: from cost-of-service regulation through incentive regulation to vertical restructuring. This history is then applied to the freight railways sector, followed by a discussion of the current state of the debate on rail restructuring – what we term the European versus the American model, or vertical versus horizontal separation – first generally and then in the Russian Federation. Finally, we seek to derive lessons relevant to Russia from both the empirical literature and the results of recent reform policies implemented in the United States and the European Union.
    Date: 2021–01
  3. By: Myrzakhmet, Marat; Myrzakhmet, Zhanat; Myrzakhmet, Bolat
    Abstract: The paper is aimed at studying the interaction of regional universities with the environment (enterprises and regional authorities) in the regions of Kazakhstan with the mining and metallurgical industries. Regional universities and their surroundings are studied using webometric methods. Universities with large Internet sites are more inclined to cooperate in their innovation activities but are inert in terms of activity. At the same time, smaller universities are more active. Less cooperation or activity in the educational field, for example, may indicate that the university in the preparation and implementation of educational programs is more focused on its preferences and requirements of the state (which allocates grants for education), rather than on the market and the wishes of employers. Therefore, small universities focused on the local market are naturally more active. There are correlations between webometric data and data from enterprise reporting, for example, a direct relationship between innovation potential and the number of employees in an enterprise. The activity and innovative potential of enterprises correlate well with the number of employees, and the degree of popularity on the websites of the region and universities correlates well with the amount of income and tax paid. Regional universities should strengthen their structural flexibility (cooperation of factors within themselves) and as well as to establish broad interaction with enterprises in the region. The results of the study will analyze the current industrial policy and consider several management decisions facing both authorized bodies, in particular the Ministry of Industry and Infrastructure Development Republic of Kazakhstan and associations of industrialists and entrepreneurs.
    Keywords: Innovation potential, educational potential, resource potential, production potential, regional university, university model, webometric method, cooperation, Akmola region, Kazakhstan, mining industry.
    JEL: L16 O14 O25 P25 R11 R38 R58
    Date: 2021–02–14
  4. By: Larch, Mario (University of Bayreuth); Shikher, Serge (United States International Trade Commission); Syropoulos, Costas (School of Economics Drexel University); Yotov, Yoto (School of Economics Drexel University)
    Abstract: Capitalizing on the latest developments in the gravity literature, we utilize two new datasets on sanctions and trade to study the impact of economic sanctions on international trade in the mining sector, which includes oil and natural gas. We demonstrate that the gravity equation is well suited to model bilateral trade in mining and find that sanctions have been effective in impeding mining trade. Our analysis reveals that complete trade sanctions have reduced bilateral mining trade by about 44 percent on average. We also document the presence of significant heterogeneity in the effects of sanctions on mining trade across mining industries and across sanction episodes/cases, depending on the sanctioning and sanctioned countries, the type of sanctions used, and the direction of trade flows. We take a close look at the impact of recent sanctions on Iran and Russia.
    Keywords: Structural Gravity; Sanctions; Mining; Oil; Trade Effects
    JEL: F13 F14 F51
    Date: 2021–01–31
  5. By: Arzu Hajiyeva (World Economy, Azerbaijan State Economics University, Baku, Azerbaijan)
    Abstract: Modern trends in economic development, characterized by increased competition and globalization of markets, lead to a significant increase in mergers and acquisitions (M&A). Companies from emerging capital markets are beginning to play an increasingly significant role in these processes. It is very necessary to identify whether M&A deals create value for companies or are they just a convenient way for management to expand and strengthen its position. The article presents the results of a study of the effectiveness of transactions for the transfer of corporate control on a sample of companies from the BRICS countries in the period from 2009 to 2012. Based on the method of analysis of financial statements, we found an increase in the operating indicators of companies (EBITDA / Sales) as a result of mergers and acquisitions two years after their completion. The main determinants of the effectiveness of transactions initiated by companies from the BRICS countries are: deal size of acquitting company, friendly focus of the transaction and the stake share.
    Keywords: Mergers and acquisitions, BRICS, capital movement, emerging markets
    JEL: G34 F21
    Date: 2020–12
  6. By: Sansarmaa Khurelbaatar (University of Szeged, Doctoral School of Education, Hungary)
    Abstract: Mongolia is one of the countries in the world with the largest number of pastoralists. However, many pastoralists still face many challenges (Fratkin & Meir, 2005; Stolpe, 2016). On the other hand, since the post-Soviet market economic reforms of 1990, significant socio-economic changes have taken place in Mongolia, which have had a strong impact on the equality of the education sector (Ahearn & Bumochir, 2016; Steiner-Khamsi & Gerelmaa, 2008; Stolpe, 2016; Batkhuyag & Dondogdulam, 2018). However, we know that greater equality in education is not only beneficial to society, but also a way to increase economic growth (Hanushek and Woessmann, 2010). To overcome these difficulties, the education system has been reformed several times and borrowed or localized internationally used education system models to meet international standards. Unfortunately, the education sector does not have adequate schooling for children with disabilities, ethnic minorities, rural and remote herders, and the gap in academic achievement between these students has intensified in recent years. Therefore, this study aims to assess the current state of the education system and identify the causes of the biggest problems based on statistical and literature reviews. Student achievement levels vary, with student achievement declining year after year for unknown reasons, such as children living in low-income, remote rural areas, ethnic minorities, and children in dormitories. In the future, there is a need to further study the factors influencing this key issue in line with Mongolia's nomadic style and to further improve the education system.
    Keywords: Education system, Disadvantaged students, Dropout in school, Student achievement
    JEL: A20
    Date: 2020–12
  7. By: Mahammad Allazov (Azerbaijan State Economics University, Faculty of Finance and Financial Institutions, Baku, Azerbaijan)
    Abstract: The paper assesses the impact of financial instruments in Azerbaijan on the stock market and joint stock companies and determines the effect of the stock market capitalization level on budget revenues and expenditures and the optimal threshold. A significant part of financial resources for investment purposes arises in the securities market, especially in the corporate securities sector. The main factor in improving the efficiency of the securities market should be increasing the volume of trading operations and creation of favorable conditions for this, increasing the variety and use of capital instruments, the issuance of new financial instruments. Based on the correlation between budget expenditures and budget revenues and the level of capitalization of the stock market with the application of economic-mathematical methods, the optimal level of capitalization of the stock market was determined. Based on the elasticity coefficient, it was determined that budget revenues and budget expenditures will change by 0.17% due to a 1% change in the capitalization level of the stock market in Azerbaijan. As a result of economic-mathematical methods, it was determined that a 1% increase in the capitalization level of the stock market in Azerbaijan results in a 0.17% increase in GDP.
    Keywords: : Financial markets, stock markets, financial instruments, stock market efficiency
    JEL: D53 E44 G15
    Date: 2020–09

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