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Latest Issue № 4, 2020



Archive / 2019

No 1

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INTERNATIONAL ECONOMICS

pdfPavel Kadochnikov, Alexander Knobel, Alexander Chentsov
8-33
 

Abstract

A sharp depreciation of the ruble during 2014–2015 has facilitated import reduction and growth of domestic production in Russia. In this article, we evaluate the effects of import substitution by estimating demand functions for imported and domestically produced commodities using the Rotterdam model. We calculate price and income elasticities for 17 aggregated commodity groups, and decompose changes in consumption into income and substitution effects. The effects of price changes and real income deterioration are extracted and analyzed. In the paper, we claim that the main factor that affected consumption demand during that period was a sharp appreciation of import. In a number of cases, this factor completely explains the changes in consumption, including some of the commodities which Russia embargoed in 2014. For several commodity groups, including Meat, and Preparations of vegetables and fruit, the import appreciation was a single main factor that affected the drop in import quantities (by 53% and 28% weight amount respectively) and growth of demand for domestic goods (by 34% and 55%).The second factor that affected demand was a decline of real incomes. For example, in the case of alcoholic beverages, the real income reduction explained the 14% decrease of demand for domestically produced goods, and the 34% drop in imports. A minor role in the events was played by substitution due to changes in domestic goods prices. This effect had a determining and statistically significant influence only in the case of demand reduction for domestically produced fish (by 12%).

Keywords: models of demand, import, import substitution.

JEL: D12, F13, F14.

Pavel A. KADOCHNIKOV, Cand. Sci. (Econ.). Russian Foreign Trade Academy (4a, Pudovkina ul., Moscow, 119285, Russian Federation). E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Alexander Yu. KNOBEL, Cand. Sci. (Econ.). Institute of Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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Alexander M. CHENTSOV. Institute of Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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pdfSergei Stepanov
34-53
 

Abstract

The article is dedicated to the consideration of Russia’s accession to the WTO from the point of view of legislation. Being a member of this international organization required complex work on changing the existing laws and adopting new domestic legal acts. Activity regarding checking laws and secondary acts which were supposedly already in line with the WTO requirements was large-scale. The very fact that negotiations on accession of our state to the WTO lasted for 18 years is quite eloquent. One of the reasons for such a lengthy process was the necessity to introduce a large number of changes to the Russian legislation. The significance of this work cannot be overestimated. The aim of the article is to find the answer to the question of how much the current Russian legislation accords with normative provisions of the WTO. In attempts to find the answer, the author conducted a thorough and substantial research of domestic and international legal acts applied in this field, as well as judicial practice and doctrine. In the spotlight of the article are such issues as the structure of the WTO law, its legal status and correlation within itself and rules of the Russian law. Classification and the subject of Russian obligations undertaken as a result of accession to the WTO are equally important. The presented results reveal some discrepancies and indicate the way of future development of the Russian legislation so as to bring it into conformity with the WTO rules. In addition, they could help in ensuring proper protection during resolution of disputes by the WTO judicial bodies. An example of such a problematic sphere is regulation of intellectual property rights.

Keywords: international and domestic law; Russian legal system, Russian legislation, judicial practice.

JEL: K33, K41.

Sergei A. STEPANOV. Tyumen State University (38, Lenina ul., Tyumen, 625000, Russian Federation).

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pdfAnton Volkov, Tatiana Radchenko, Ksenia Bannikova (Sukhorukova)
54-75
 

Abstract

In this paper, we present an analysis of foreign trademark-owning companies’ capital investment in localization in the territory of Russia under the conditions of national (regional) exhaustion of intellectual property rights. The purpose of this research is to estimate the impact of the choice of the regime of right exhaustion on the decision on localization in Russia, as well as the structure of production assets of trademark owners in Russia. Data for analysis contains trademark owners’ production capacities and investments in the territory of Russia for the period from 1991 to 2016. We present an estimate of the volume of trademark owners’ localization on the territory of Russia by sector, territory and time of capital investments. The paper shows that investments in production by trademark owners are not correlated to the ban on parallel import and are more likely explained by other factors than the introduction of national exhaustion of intellectual property rights. Also, upon comparison of data on the volumes of localization of trademark owners and import statistics for protected trademarks, it was revealed that a significant proportion of trademark owners, which gain a benefit from the ban of parallel import, did not invest in production in Russia. The research results are useful for the government intellectual property policy, especially, in deciding on parallel import legalization and developing measures for the transition to international exhaustion of intellectual property rights.

Keywords: parallel imports, exhaustion doctrine, investment.

JEL: F100, F130, F210.

Anton Yu. VOLKOV. National Research University Higher School of Economics (26, str. 3, Shabolovka ul., Moscow, 119049, Russian Federation); Directorate for Competition Policy, Analytical Center for the Government of the Russian Federation (12, pr. Akademika Sakharova, Moscow, 107078, Russian Federation).

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Tatiana A. RADCHENKO, PhD. Analytical Center for the Government of the Russian Federation (12, pr. Akademika Sakharova, Moscow, 107078, Russian Federation); Russian Presidential Academy of National Economy and Public Administration (82, str. 1, pr. Vernadskogo, Moscow, 119571, Russian Federation).

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Ksenia A. BANNIKOVA (SUKHORUKOVA). Department for Foreign Economic Activity, Analytical Center for the Government of the Russian Federation (12, pr. Akademika Sakharova, Moscow, 107078, Russian Federation); Institute for Industrial and Market Studies, National Research University Higher School of Economics (26, str. 3, Shabolovka ul., Moscow, 119049, Russian Federation).

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MACROECONOMICS

pdfAleksey Burenin
76-91
 

Abstract

Periodically, the economy goes beyond the “normal” state in which the standard instruments of macroeconomic policy lose their effectiveness. The appearance of Keynesianism and Monetarism was the recognition that there are two qualitatively different states of the economy, the laws of which cannot be extrapolated to each other. When implementing monetary policy, it is necessary to take into account that the situation on the financial market has changed qualitatively, and therefore monetary policy primarily stimulates the growth of financial markets and only in the second place helps to restore the real economy. Monetary policy is not able to affect significantly the revival of the real economy if the central bank does not take measures to limit speculative activity in the financial market. Based on annual real U.S. GDP growth data during expansionary periods and the growth rate of the S&P 500 index from the 1980s to the present, one can conclude that the higher the level of speculative activity in the financial market, the lower the level of real GDP growth. By their actions to provide markets with liquidity and to lower interest rates to negative levels, central banks created a “new economic reality” that put limits to the effectiveness of their monetary policy. Our analysis brings us to the conclusion that in modern conditions it is necessary to revise the macroeconomic policy toolkit, and we agree with Hyman Minsky that a new approach to macroeconomic regulation is needed today, “fundamentally different from the mix that results when today’s accepted theory is applied to today’s economic system.”

Keywords: economic crisis, Austrian School, monetary policy, quantitative easing, macroeconomic regulation.

JEL: E32, E44, E58.

Aleksey N. BURENIN, Dr. Sci. (Econ.), Professor. Moscow State Institute of International Relations (University) (76, pr. Vernadskogo, Moscow, 119454, Russian Federation).

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PUBLIC ADMINISTRATION

pdfVladimir Yuzhakov, Elena Dobrolyubova, Andrei Pokida, Natalia Zybunovskaya
92-115
 

Abstract

Significant efforts aimed at improving state inspection and enforcement activities are underway in Russia. The final beneficiaries of such public functions are usually citizens, as inspection and enforcement affect public health, the safety of property as well as other public values such as environment or cultural heritage. However, to date there have been no methodic approaches to evaluating performance of inspection and enforcement activities from a citizen perspective. The article presents the results of a sociological survey conducted based on the authors’ methodology, which aims at collecting citizen perceptions on effectiveness of inspection and enforcement activities and the reform in this area. The survey sample accounted for 1,010 adult respondents in 28 Russian regions. The study assumes that every citizen is a potential client of inspection and enforcement bodies, whether they have had any interaction with such bodies or not. Therefore, the survey aims at collecting public perceptions of public values safety (such as life, health, property and assets, and other interests) from various risks. The study also demonstrates how personal experience in protecting public values influences the perceptions about safety. The survey shows that only 30 percent of respondents evaluate their safety from risks (threats) as very good or rather good; the safety level among respondents who have experience in taking measures to protect such values is only 18.4 percent. Overall, the sociological survey suggests the possibility and the need to include the indicators reflecting the perspective of citizens as the final beneficiaries of inspections and enforcement activities in the list of indicators for inspection reform evaluation.

Keywords: state control, inspection and enforcement, public values, public safety, risks (threats).

JEL: H11.

Vladimir N. Yuzhakov, Dr. Sci. (Philos.), Professor. Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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Elena I. Dobrolyubova, Cand. Sci. (Econ.). Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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Andrei N. Pokida, Cand. Sci. (Soc.). Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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Natalia V. Zybunovskaya. Russian Presidential Academy of National Economy and Public Administration (82, Vernadskogo pr., Moscow, 119571, Russian Federation).

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ECONOMICS AND ECOLOGY

pdfClare Brown, Walter Block
116-125
 

Abstract

The tragedy of the commons is responsible for many, if not all, of the environmental problems concerning natural resource preservation that we face in modern society. The tragedy of the commons describes a situation in which resources held “in common”, namely, public resources, are depleted or mistreated by collective action. Basically it means lack of private ownership and almost inevitably leads to a misallocation of resources. And yet, the predominating kinds of solutions proposed to solve these problems involve increased government regulation—effectively expanding the scope of the very tragedy of the commons which lies at the heart of the problem in the first place. The present paper advocates an alternative: free market environmentalism. It is not a contradiction in terms, despite how that phrase sounds to the modern ear. In this paper we attempt to demonstrate that laissez-faire capitalism is our last best hope for protecting the environment. Free market environmentalism centers around private property rights and thus a decentralization of environmental decision-making. Effective choices made about scarce resources must be based upon free market price signals and incentives. The lack of laissez-faire capitalism applied to earth’s natural resources distorts both of these indicators—causing poorly made and oftentimes destructive decisions. A free market solution to the environment creates the most value for society, allows for open and continuous entrepreneurial innovation, and economically empowers those who are the most environmentally vulnerable.

Keywords: free enterprise, private property rights, environment.

JEL: Q00.

Clare Brown, Loyola University New Orleans (6363 St. Charles Avenue, New Orleans, LA 70118, United States).

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Walter E. Block, Harold E. Wirth Eminent Scholar Endowed Chair and Professor of Economics. Loyola University New Orleans (6363 St. Charles Avenue, Box 15, Miller Hall 318, New Orleans, LA 70118, United States).

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REGIONAL ECONOMICS

pdfYuriy Pavlov
126-153
 

Abstract

In the 21st century, metropolitan areas will become the main supporting territories for the development of the Russian economy. Their development is associated with agglomeration problems, caused by the strengthening of “external effects”, which are manifested in a disproportional distribution of income across the metropolitan area, a gap in the quality of service delivery, and a decrease in economic and administrative management effectiveness. The catalyst for agglomeration problems is the high fragmentation of authority, the absence of a single decision-making center in the metropolitan area. Fragmentation can be eliminated in a number of ways. The answer to the question of how to solve the agglomeration problems and the future of municipalities in the metropolitan area is provided by three main theories of metropolitan governance: the theory of Metropolitan Reform, the theory of Public Choice, and the New Regionalism. This research analyzes and compares the data of theories, discusses the results of their practical application, and shows the strengths and weaknesses. On agglomeration statistics of OECD countries for 1951–2010, historical periods of their popularity are revealed. With probability of 99%, the hypothesis about the influence of civilizational features of the countries on the duration of the periods of theories’ popularity, and also on propensity to the centralized/decentralized model of metropolitan governance, is statistically proved.

Keywords: metropolitan governance, agglomeration management, metropolitan governance body, civilizational features, urban area.

JEL: D70, H70, N90, R00.

Yuriy V. Pavlov. Samara State University of Economics (141, Soviet Army ul., Samara, 443090, Russian Federation).

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ECONOMIC HISTORY

pdfDmitry Macheret
154-179
 

Abstract

The article deals with the transport factor influence on the implementation of the Industrial Revolution and the transition from the “Malthusian” economy to modern economic growth. Attention is focused on the periods of economic history of the early Roman Empire and medieval China. It is noted that the level of socioeconomic development of the Roman Empire at the beginning of our era was close to that of Western Europe shortly before the Industrial Revolution. The conclusion is drawn that the Roman Empire fell into a “transport-institutional trap” which blocked the movement along the path of industrialization and economic growth. In medieval China, the level of socio-economic development corresponding to the threshold of the Industrial Revolution was also reached. At the same time, many transport restrictions were removed. In particular, deep-sea trade became possible, allowing the establishment of global economic ties. Nevertheless, its development was blocked by the state policy of isolationism, which led to the decline of the Chinese economy. In Western Europe, the accumulation of innovations in shipbuilding and navigation in transnational competition led to the beginning of ocean navigation in the 15th century, new lands pioneering and the development of intercontinental goods exchange. The resulting geographically diversified economy stimulated technological progress and supply of goods, and gave a powerful impact to the development of the institutions of capitalism. To ensure dynamic economic growth in the 21st century, it is necessary to remove the newly emerging transport restrictions through economic policies that stimulate entrepreneurial activity in the transport sector.

Keywords: economic growth, transport, industrial revolution, “transport-institutional trap”, geographically diversified economy.

JEL: L91, N13, N70, O49, R49.

Dmitry А. MACHERET, Dr. Sci. (Econ.), Professor. Russian University of Transport (MIIT) (9, Obraztsova ul., Moscow, 127994, Russian Federation).

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