{"title":"Impact of Special Economic Zones on domestic market: Evidence from Russia","authors":"Evgeniya Dubinina","doi":"10.1080/14631377.2022.2138154","DOIUrl":"https://doi.org/10.1080/14631377.2022.2138154","url":null,"abstract":"ABSTRACT Place-based policies can be an effective instrument for governments to encourage the economic development of a country. A Special Economic Zone (SEZ) is a place-based policy aimed at attracting FDI, employment growth, and supporting new economic reforms. In addition, for emerging economies an SEZ could be a potential catalyst for development; foreign investors can have a drastic impact on the productivity of domestic firms, revenues, and market shares through the implementation of new technologies and the creation of new firms. However, the effects of SEZs on the domestic market at the firm level are largely understudied. In this research, I leverage the large-scale SEZ policy implemented by the Russian government in 2005 that aims to attract foreign investors to specific parts of the country by offering tax relief. The primary objective of this research is to quantify the effects of the Russian SEZ policy on local firms. To examine the effects, I use the generalised Difference-in-Difference methodology and apply it to a panel of firms in Russia for the 2006–2019 period. The data includes time-varying SEZ treatment on firms, firm characteristics, and accounting data. The primary outcome variables of interest are revenues, profits, and total factor productivity. The research findings could contribute to the urban economic literature on place-based policies and may be helpful to policymakers in determining the effectiveness of SEZ place-based policies.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43197478","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Reflections on FDI in an post-communist country in the context of EU membership: retrospectives and prospects","authors":"Marta A. Götz, B. Jankowska, Zakaria Talouni","doi":"10.1080/14631377.2022.2137325","DOIUrl":"https://doi.org/10.1080/14631377.2022.2137325","url":null,"abstract":"ABSTRACT Participation of a country in the European Union and hence the participation in the European single market, have obvious consequences for capital flows, including those in the most advanced form, i.e. foreign direct investment. Foreign direct investment is considered one of the major incentives of economic integration. Thus, this study reflects on the impact of EU membership on FDI inflows to Poland as an EU member and signals key priorities for further integration. The theoretical foundation of the study resides in the theses of the new theory of economic integration and the investment development path theory. The paper employs the descriptive approach and inductive reasoning. We highlight the benefits resulting from the position of Poland on the investment development path and indicate possible associated threats. Moreover, we discuss retrospective reflections, some of the prospects, and possible directions of action recommended to optimise the future benefits of hosting foreign investors.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42790032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Stepan Zemtsov, Y. Tsareva, V. Barinova, M. Belitski, Alexander N. Krasnoselskikh
{"title":"Small business in Russia: institutions, market potential, taxes and digitalization","authors":"Stepan Zemtsov, Y. Tsareva, V. Barinova, M. Belitski, Alexander N. Krasnoselskikh","doi":"10.1080/14631377.2022.2108244","DOIUrl":"https://doi.org/10.1080/14631377.2022.2108244","url":null,"abstract":"ABSTRACT In this paper we use an institutional approach and apply a regional perspective to explore how market potential, formal institutions, taxes, access to finance, regional policy instruments, and digitalization have affected small business activity in 83 Russian regions during 2008–2018. We use various regional data sources and official statistics to study the effects of regional business environments on entrepreneurship. Our results suggest that Russia’s business environment, including policy measures in taxation, is important in explaining small business activity, however digital transformation and the role of market potential can be better controlled by entrepreneurs in terms of what skills to learn and where to locate their businesses. In addition, we discuss the effect of exogenous shocks and changes in the business environment, along with dynamics, challenges, and perspectives of entrepreneurship in Russia.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47416910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How do economic activities spur the COVID-19 pandemic in Russia? A dynamic panel data analysis","authors":"I. Iwasaki","doi":"10.1080/14631377.2022.2104508","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104508","url":null,"abstract":"ABSTRACT Russia is one of the few countries in the world that has opted for almost no policy measures involving the strong suppression of economic activity in the face of the epidemic disaster brought about by the new coronavirus (COVID-19). This makes Russia a valuable subject of social experiments through which the association between economic activity and the spread of the virus can be explored. This paper presents a dynamic panel data analysis to examine the extent to which different types of economic activity contribute to the spread of COVID-19 infection using monthly and quarterly panel data of Russian regions between March 2020 and April 2021. The results strongly supported our expectation that economic activities have a greater impact on the levels of COVID-19 transmission when they involve a larger number of inhabitants or stimulate greater consumption or social activities among citizens. It was also revealed that Russian regions vary greatly in terms of the routes that link economic activity to the spread of COVID-19. These results have important policy implications for current and future epidemic control.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48927891","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Deindustrialisation in post-Soviet economies: premature deindustrialisation, Dutch disease, human capital, and institutions","authors":"Hiroyuki Taguchi, Elbek Erkin Ugli Abdullaev","doi":"10.1080/14631377.2022.2104504","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104504","url":null,"abstract":"ABSTRACT This study examines deindustrialisation in 15 post-Soviet economies by investigating the country-specific fixed effect in the relationships among manufacturing, population, and income and the factors contributing to deindustrialisation in terms of the premature deindustrialisation hypothesis. The fixed-effect estimation suggests deindustrialisation in the ten middle-income post-Soviet countries due to their comparative disadvantages in manufacturing as the overall contributor, with the lack of human capital, the Dutch Disease effect (mainly in Azerbaijan, Kazakhstan, the Russian Federation, and Uzbekistan), and immature institutions (mainly in Kyrgyz, Tajikistan, Ukraine, and Uzbekistan) as sub-factors that explain deindustrialisation in these countries based on factor analyses.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47047193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Breakdown: what went wrong with deposit insurance in Russia","authors":"A. Vernikov","doi":"10.1080/14631377.2022.2104506","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104506","url":null,"abstract":"ABSTRACT The paper examines the Russian experience with explicit deposit guarantee. Some of its effects, such as moral hazard, adverse selection, and erosion of discipline, are typical and well-researched by previous authors. The social cost of having this institution in Russia turned out to be abnormally high, while the results in terms of bank stability are questionable. More than half of the insurance system members have gone out of business in a matter of just fifteen years. I examine the inception of deposit insurance in Russia, its design, implementation and political economy, using various theoretical approaches and combining qualitative with quantitative evidence. I argue that explicit deposit guarantee by a government agency was a priori redundant, in view of the extraordinary role of state-owned banks. The new institution was used as a tool for structural change and competition enhancement, which I regard as misuse. Deposit guarantee was enacted prematurely, before other essential institutions of bank regulation were in place. The political economy of deposit insurance reveals the political system’s vulnerability to uncontained pressure from private special interests demanding public protection. The new institution was captured by interest groups and exploited for private benefit. The evidence from Russia might be relevant to other emerging market countries.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44329190","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Defending business interests in Russia: collective action and social investments as bargaining chips","authors":"Stanislav Klimovich, Sabine Kropp, U. Pape","doi":"10.1080/14631377.2022.2104505","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104505","url":null,"abstract":"ABSTRACT The collective organization of business interests in Russia is commonly considered weak. In some cases, however, business associations have succeeded in representing interests vis-à-vis the state. This article analyses an illustrative case of state–business negotiations regarding an extra profit tax for several chemical and metallurgical companies, proposed by the presidential administration in August 2018. Based on a case study involving media and interview data, the study examines the role of collective action under the auspices of the ‘Russian Union of Industrialists and Entrepreneurs’ (RUIE) in defending business interests. It identifies the necessary conditions under which collective action was effective in this specific case, and critically discusses the possible contingency of the given constellation in light of inherently asymmetrical relations between state and business actors. Furthermore, the article develops an analytical framework with which business associations and their lobbying activities under authoritarian capitalism can be analysed beyond the Russian case.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42537352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A business-cycle model with money and banking: the case of Bulgaria (1999–2018)","authors":"Aleksandar Vasilev","doi":"10.1080/14631377.2022.2106922","DOIUrl":"https://doi.org/10.1080/14631377.2022.2106922","url":null,"abstract":"ABSTRACT We augment an otherwise standard business cycle model with a richer government sector and add modified cash in advance (CIA) and deposit considerations. In particular, both the cash in advance- and deposit constraints of in earlier work are extended to include private investment and government consumption. Also, part of the purchases are made using credit. This specification is then calibrated to Bulgarian data after the introduction of the currency board (1999–2020), gives a role to money and costly credit in accentuating economic fluctuations. In particular, the modified CIA constraint combines monetary with banking theory, and thus produces a novel mechanism that allows the framework to reproduce better observed variability and correlations among model variables, and those characterising the labour market in particular.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49093317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Sailing through the storm – performance of Russian manufacturing subsidiaries of multinational corporations in the first year of the COVID-19 pandemic","authors":"I. Gurkov, N. Filinov","doi":"10.1080/14631377.2022.2104503","DOIUrl":"https://doi.org/10.1080/14631377.2022.2104503","url":null,"abstract":"ABSTRACT The aim of this study is to depict the performance of Russian manufacturing subsidiaries of multinational corporations during the first year of the COVID-19 pandemic. Using a unique handcrafted database of financial reports from 259 subsidiaries for 2019 and 2020, we retraced three indicators of business robustness: the dynamics of revenues, positive profitability, and the level of financial solvency. Most of the studied subsidiaries (85%) were able to withstand the crisis and maintain satisfactory financial solvency. Revenues decreased in 2020 to 40% of the studied subsidiaries, and the share of loss-making subsidiaries reached 31%. However, more than 40% of the studied subsidiaries achieved both an increase in revenues and positive profitability of sales in 2020. In this respect we may assess the level of ‘ownership advantage’ of multinational corporations regarding assisting their subsidiaries to achieve different elements of business robustness during the pandemic.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48511118","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Differences and similarities between key drivers of youth and senior starting entrepreneurs in Central and Eastern European countries","authors":"Anna Pilková, Juraj Mikuš, J. Rehak, P. Pšenák","doi":"10.1080/14631377.2022.2079058","DOIUrl":"https://doi.org/10.1080/14631377.2022.2079058","url":null,"abstract":"ABSTRACT In Central and Eastern European countries, the generational gap between youth and seniors involved in entrepreneurship is a pending issue, yet the research covering the particularities of this problem is sparse. This article contributes to covering the gap in the literature by a/ studying key entrepreneurial factors that influence both the youth and seniors’ early-stage entrepreneurial activity in the CEE region; b/ identifying the key differences and similarities of studied age cohorts as a basis for further research and formulation of entrepreneurial policies. In this research paper, we use the Global Entrepreneurship Monitor (GEM) data. We employ multiple linear regression and ANOVA analysis. Our research suggests that well-designed government programmes in CEE countries are significant drivers for both age cohorts to improve their early-stage entrepreneurial activity. The historical background has a limited impact on youth in CEE countries while a weakening influence on seniors.","PeriodicalId":46517,"journal":{"name":"Post-Communist Economies","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2022-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46085648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}