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2020, Issue 3 (47). Abstracts
How to make economic complexity index more complex: Taking export geography into account In this study, we develop a new approach to redefine the economic complexity index (see (Hausmann et al., 2011) for the original method). ECI is a relative measure, which evaluates the progress in the structural transformation of a particular economy. While constructing the new index, we not only take into account how complex two economic structures are, which is reflected in the composition of their export baskets, but also how productive are these structures, which is mirrored in the geographical structures of their exports. Countries with more complex economic structures, still export more complex products, while more productive economies export their products to a large variety of markets, including rich economies. We find that some economies, which the traditional approach, by ignoring the fact that most of their exports go to the not-so-rich markets of their geographical neighbors, overestimates by providing a too high position in the ranking, take significantly lower position after the new approach is applied. This result is more consistent with these economies’ recent years’ growth rates. Key words: economic complexity, structural transformation, productivity, export geography
Influence of regulatory burden and involvement of business in corruption on revenue: Grease vs sand effect The study is devoted to theoretical analysis and empirical assessment of the impact of bureaucratic burden and participation of firms in corruption on their financial results (in our case, revenue). We test alternative hypotheses about the positive (“grease the wheels”) and negative (“sand the wheels”) result of legal, illegal and mixed interaction of business with government bodies. Our study is based on the 2014 BEEPS-V data on enterprises of the former Socialist countries and Turkey. We proposed and evaluated three specifications for Cobb–Douglas type models, which included test, control, and instrumental variables. The obtained results evidenced the prevalence of the effect of “grease the wheels” over the effect of “sand the wheels” – separately for corrupt and legal intensive interaction of business with the authorities, where the model of illegal interaction proved to be more effective. At the same time, in the mixed type model, we found the negative effect of the joint influence of bureaucratic barriers and the participation of firms in corruption. We explained this by the double costs for firms when they are plunged into corruption after inefficient interaction with the state bodies, as well as various strategies for such interaction. Key words: business, regulation, corruption, efficiency, revenue
Price and financial stability: Is there a contradiction between these goals of the Bank of Russia? After the global crisis, the monetary authorities of many countries were given the additional goal of ensuring financial stability. The complexity of the implementation of this task is associated with the lack of generally accepted definition of quantitative indicators of financial stability. Moreover, there is no consensus on the relation of the main goal for most central banks to ensure price stability and the goal of maintaining the stability of the financial system. Estimates of the correlation of the goals of the Bank of Russia to ensure price and financial stability obtained in this work using dynamic correlations calculated using multidimensional DCC–GARCH models allow us to conclude that the Bank of Russia contributed to the achievement of financial stability providing price stability in 2006–2019, and that contradictions between these goals arise only in adverse conditions. The validity of this conclusion is also confirmed by the results of a regression analysis, which also show that neither the business activity nor the interest rate policy of the Bank of Russia has statistically significant effect on the relation of its goals. Key words: monetary authorities, price stability, financial stability, goal conflict, index of financial stability, inflation targeting
L.I. Smirnykh, National Research University “Higher School of Economics”, Moscow, Russia Income and the integration of migrants in the Russian labour market Labour resources of countries are important for their economic growth and national security. The problem of the native population decline in many countries is solved by increasing an influx of international immigrants. Russia is not an exception. The main research object of this study is the special category of immigrants – foreign-born population. The character of integration of foreign-born population on the Russian labour market is the main research subject in this study. For our analysis we use the Russian Longitudinal Monitoring Survey data of 2006–2012 and apply Oaxaca–Blinder decompositions. Our findings show that integration of the foreign-born in the Russian labour market depends on their ethnicity and income level. The ethnic Russian foreign-born have similar income compared to the natives. However, income of the non-Russian ethnic foreign-born is lower than income of the natives. At the same time, the income differences between two groups decrease with their income level growth. Key words: immigration, foreign-born, integration, income differentiation, discrimination, labour market
A.A. Fedyunina, Centre for Structural Policy Research, National Research University “Higher School of Economics”, Moscow, Russia Structural features of Russian economy integration into global value chains and lessons for structural policy Features of the country’s integration into global production today best reflect its competitive advantages and growth prospects. This paper provides an analysis of long-term trends in the features of integration of the Russian economy into global value chains (GVCs). Three cases of industrial upgrading in forestry, food and chemical industries are analyzed. In the case of a significant lag in the industry from the global technological frontier, attracting foreign investment and importing technology is the easiest way to integrate the economy into GVCs. For end-user-oriented sub-sectors, this means quick adaptation of organizational and marketing innovations, satisfaction of changing consumer preferences, and the formation of new markets and market niches. Moreover, based on the best practices of Russian and foreign companies, the technological level of lagging domestic companies may advance. For sub-sectors focused on intermediate goods, the introduction of technologies can determine an increase in the depth of redistribution in the sector and the subsequent increase in the production capacities of domestic companies based on the best practices of foreign companies. Key words: Russian economy, technological upgrading, structural policy, structural changes, global value chains
A.Ye. Shastitko, Lomonosov Moscow State University, Moscow, Russia; Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia Structural alternatives of the gas transportation organization through an insulated pipeline Regulation of natural monopolies implies strict adherence to the legislation that does not take into account the variety of circumstances of activities and the possible transactions organization options. The litigation between the “Rosneft” and “Sakhalin Energy” companies about the access to the gas pipeline, which connects the gas field in the North of the Sakhalin Island with the liquefied natural gas (LNG) plant in the Southern part of the Island, is analyzed. It is shown that consideration of a broader range of institutional alternatives of the gas transportation organization through an insulated pipeline is necessary. The basis of the regulator decisions is the existence of market for gas transportation services, which in fact is not (and should not be) the default option. An approach to such situations analysis is proposed, it allows covering a wide range of institutional alternatives that could provide a higher level of social welfare. The Grossman–Hart model of incomplete contracts and its verification on real data is used for the demonstration that a simple decision to allow an isolated pipeline access, when the participants of the transaction are independent, can lead to a decrease of the public welfare, compared with alternatives involving integration. Key words: pipelines, incomplete contracts theory, Grossman–Hart model, antitrust regulation, institutional alternatives
E.V. Belyanova, Ye.M. Primakov Institute of Word Economy and International Relations (IMEMO), Russian Academy of Sciences, Moscow, Russia The constructivist project ‘Econometrics–1930’: Implementation of the impossible or realization of inevitable? The article studies the project of the founding of the Econometric society and its implementation in 1930’s in the context of the development of economic and statistical thought in the first third of the 20th century and its relation to the Keynesian revolution which began at that time. According to the idea of the Society’s founding fathers it ought to become a driving force in the process of the purposeful reconstruction of economic science in the most promising direction, that meant, from their viewpoint, its advancement towards mathematization and quantification, and implementation of the verification principle in economic theory. Realization of that goal implied joint efforts of representatives of the relevant disciplines from different countries. This unique project embodied views of a relatively small group of scientists on scientific knowledge not shared by the majority of economists of the time. On the other hand it reflected objective trends that had developed in economic science by mid–1920s, therefore the founding of the Econometric Society as well as activities of its members significantly influenced the trajectory of the development of economic science in the post-war period. Key words: econometric society, econometrics, marginalist revolution, Keynesian revolution, R. Frisch, I. Fisher
Social Inequality in Russia The article shows that the economic characteristics of inequality are part of a broader phenomenon — social inequality. The main areas of its manifestation are considered: by monetary income and wealth; current consumption of goods; access to housing and social infrastructure; as well as — in the spatial aspect; the standard of living and quality of life of urban and rural populations; sectoral aspect; age demographic groups; the use of digital technologies. Inequality was assessed and its high dimensions were reasoned, which is reflected in Russia’s position in the group of countries with the highest level of inequality in income and wealth; in a tenfold gap in average consumer spending among ten percent of the most and least income groups of households; in more than tenfold differentiation in the number of citizens with housing poverty and high housing security; in the inaccessibility for half of College and University students to study at the expense of budget allocations; the gap in life expectancy at birth in the regions of the Russian Federation with the highest and lowest values of the indicator is 16 years. There is three to five times higher unemployment among young people compared to other groups of the economically active population, etc. The question is raised about the need to develop a national program to increase the real monetary income of the population, reduce poverty and inequality. Key words: economic inequality, social inequality, high inequality, poverty, real monetary income, program to reduce poverty and inequality
B.Ye. Frumkin, Institute of Economics, RAS; Ye.M. Primakov Institute of World Economy and International Relations (IMEMO), RAS, Moscow, Russia Income differentiation and consumption of food as a patronized good Based on the theory of patronized goods, the development of “state guardianship” in the field of ensuring food security of the population is considered, taking into account its correlation with the size and differentiation of income. The principles and mechanisms of domestic national (for example, the United States) and supranational (for example, the European Union) state food aid to the poor and other vulnerable categories of the population in developed economies are analyzed. Special attention is paid to the organizational, financial and socio-redistributive aspects of aid, ensuring its targeted nature and linking it to the level of income, the combination of monetary and in-kind forms of aid, the “pairing” of food aid with state support for agriculture, the role of NGOs/NPOs in the systems of state food aid. The necessity of food aid as an important element of state guardianship of the modern market economy, partially compensating income and social inequality, minimizing social deprivation, is substantiated. The article shows the fundamental difference between such assistance and the card distribution system, which is associated with insufficient supply and balances it with demand using noneconomic methods. The article considers the formation of the national food aid system in Russia, and suggests ways to develop it taking into account the updated Doctrine of food security of the Russian Federation and the consequences of the coronacrisis. Key words: patronized goods, economic accessibility of food, income differentiation, food aid, coronavirus pandemic
T.V. Chubarova, Institute of Economics, Russian Academy of Sciences, Moscow, Russia Income and consumption of medical care through the lens of protected goods’ approach The article examines the influence of income on the level of consumption of medical care in the context of the theory of patronased goods, that implies active participation of the state in the development of health care system. Based on literature review and analisys of empirical data, relevant methodological problems are discussed, including the direction of influence of income on health status and consumption of medical care, with an emphasis on the organization and financing of health care. The specificity of the situation in Russia is noted, where the low level of public funding alongside the expansion of fee for service due to development of private medicine and the possibility of charging fees by public medical organizations potentially create barriers to access to medical care for low-income citizens. However, the state health care system remains an important factor in mitigating the problem; therefore, the influence of income on utilisation of medical care in Russia is indirect. The author suggests that in order to neutralize the impact of income on consumption of medical care, it is necessary to ensure universal access to healh care, an important condition being adequate public funding rather than increase of people’s income. Key words: population income, consumption of medical care, inequality, health financing, public health spending, out-of-pocket payments
R.I. Kapeliushnikov, Primakov National Research Institute of World Economy and International Relations, RAS; Centre for Labour Market Studies, National Research University “Higher School of Economics”; Moscow, Russia Consumption of cultural goods in Russia: What household surveys tell us? The paper examines dynamics in consumption of cultural goods in Russia. The sources of empirical data are the Russian Longitudinal Monitoring Survey (RLMS–HSE) for 2000–2018 and Rosstat’s Complex Living Conditions Survey (CLCS) for 2011–2018. The analysis indicates that now approximately every second household and approximately every second adult individual consumes some cultural goods during the year. A regular audience is approximately one fifth of the total. The share of expenses on cultural goods reaches 2.5% of average monthly household budget. With the rapid income growth in 2000–2018 demand for cultural goods has been steadily increasing. There is a visible empirical regularity: the higher the income of households or individuals, the more active they are culturally. There appears to be a fairly banal, but effective practical way to stimulate demand for cultural goods in Russia: an acceleration of economic growth. Key words: consumption, cultural goods, income, Russia, survey data
I.V. Abankina, Institute of Education National Research University “Higher School of Economics”, Moscow, Russia Equality of rights vs equality of opportunities in higher education The article analyzes the existing differentiation in the consumption of benefits in higher education. It is substantiated that there is a deep differentiation of access to higher education in the areas of training depending on the income of families. The high level of science and computer science training and the ability of families to pay for tutors give applicants a better chance of studying at the expense of budget funds compared to applicants from low-income families. Education in the creative professions and design sector directly depends on the income level of families and develops extremely unevenly, both in the regions of Russia and in the areas of training. The current conditions of the coronavirus pandemic and the impending economic crisis have exacerbated the problem of access to higher education for low-income families to the limit. The integration of financial instruments that provide direct support to both educational institutions and students and their families at the expense of budgets could be a promising model for maintaining the accessibility of higher education for applicants from low-income families. Personalized funding allows students to participate in the possession of some of the “guardian benefits” through educational budget certificates. Key words: access to higher education, well-held benefits, funding for higher education, paid education
A.Ya. Rubinstein, Institute of Economics of the Russian Academy of Sciences; State Institute for Art Studies, Moscow, Russia About the availability of the theatre: Prices, incomes, inequality The basis of this empirical study was the results of the “First All-Russian Sociological Survey of Theater Spectators”, which was attended by about 11 thousand respondents who answered the questionnaire regarding more than 80% of state and municipal theaters located in 178 cities of Russia, classified into eight groups sorted by their population. In the context of the same groups of cities, the data of the “Selective Observation of Population’s Incomes and Participation in Social Programs, 2016” of the Federal State Statistics Service (Rosstat) were used. Answering the corresponding question in the questionnaire, almost a quarter of the participants in the sociological survey indicated that, at their current income, the prices for tickets to the theater were unavailable or were of limited availability for them. It was shown that of the two main factors, determining solvent demand, theater tickets prices after the “May 2012 Decrees” had grown faster than the general level of consumer prices (inflation) and consumer income, having caused the revealed level of theater inaccessibility. The use of data on the distribution of the average wage of the selective observation of incomes, in the context of the indicated groups of cities, made it possible to answer the question of whether income inequality was related to the availability of theatrical goods. It was shown that a higher level of audience income was not a factor, determining the greater availability of theater as wealth, as well as the fact that with low incomes, the public accessibility to theatres was less. It was concluded that the hypothesis about the connection between income inequality and the availability of theatrical goods was invalid. Key words: theater, sociological research, attendance, prices, per capita income of spectators, the availability of theatrical goods Back | ||
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