Latest Articles from Russian Journal of Economics Latest 5 Articles from Russian Journal of Economics https://rujec.org/ Thu, 28 Mar 2024 16:31:22 +0200 Pensoft FeedCreator https://rujec.org/i/logo.jpg Latest Articles from Russian Journal of Economics https://rujec.org/ Unrealized opportunities: Exploring Russia’s untapped OFDI potentials amidst economic sanctions https://rujec.org/article/104661/ Russian Journal of Economics 9(2): 134-157

DOI: 10.32609/j.ruje.9.104661

Authors: Igor M. Drapkin, Anna A. Fedyunina, Yuri V. Simachev

Abstract: The economic sanctions imposed by the United States, Europe, and other countries since 2014 have heightened the unpredictability and turbulence in the business environment for Russian firms, necessitating exploration of new international partners and transformation of economic relationships. This paper aims to examine the redirection of Russian outward foreign­ direct investment (OFDI) in the context of these economic sanctions, particularly those intensified since 2022. The analysis employs an estimated econometric model to compare actual and potential levels of OFDI, utilizing a comprehensive database covering 74 origin and 102 destination countries from 2010 to 2019. The estimation technique employs Poisson pseudo-maximum likelihood approaches. The findings indicate that Russian firms demonstrated underinvestment in most regions, except for Northern and Western Europe, during the examined period. The 2014 sanctions resulted in a significant decline in Russian OFDI to the countries imposing sanctions, while there was an increase in OFDI to Asia, the Middle East, and the CIS countries. As anticipated, the 2022 sanctions exerted additional pressure on Russian OFDI, leading to a further shift of their outflows towards Asia and the Middle East, which, however, could not compensate for the sharp decline in OFDI to the EU countries and North America. The results highlight the existence of untapped OFDI potential for Russia in African and Latin American countries as well as in the Middle East. These regions emerge as desirable partners for bilateral economic liberalization. From a policy perspective, the findings emphasize the importance for the Russian Federation to pursue deep trade agreements that encompass investment preferences, public procurement, and the protection of intellectual property rights with regions harboring untapped potential for OFDI. Additionally, expanding government support for domestic firms venturing abroad is crucial to sustain and enhance integration into the global economy, especially in the face of sanctions.

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Research Article Mon, 17 Jul 2023 21:10:13 +0300
Thirty years of economic transition in the former Soviet Union: Microeconomic and institutional dimensions https://rujec.org/article/104761/ Russian Journal of Economics 9(1): 1-32

DOI: 10.32609/j.ruje.9.104761

Authors: Marek Dabrowski

Abstract: The post-communist transition in the former Soviet Union (FSU) cannot be considered entirely successful, especially in the political and institutional spheres. Nevertheless, in the economic sphere, the transition process succeeded in rebuilding the foundations of market economies based on private ownership by the early 2000s, even if the adopted­ policies and institutions have proved suboptimal and distortive in many countries. The transition experience in the FSU region has demonstrated a correlation between political and economic reforms, with a strong impact of the former on the latter. The deficit of democracy, civil freedoms and the rule of law has negatively impacted the course of the economic transition, causing significant delay, distortions and partial reversals.

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Research Article Thu, 13 Apr 2023 18:59:46 +0300
Sustainable relationship between FDI, R&D, and CO2 emissions in emerging markets: An empirical analysis of BRICS countries https://rujec.org/article/77285/ Russian Journal of Economics 7(4): 297-312

DOI: 10.32609/j.ruje.7.77285

Authors: Han-Sol Lee, Yury N. Moseykin, Sergey U. Chernikov

Abstract: This paper empirically analyzes sustainable relations between inward FDI (IFDI), outward FDI (OFDI), the R&D expenditure ratio and CO2 emissions based on balanced panel data from the BRICS (namely, Brazil, Russia, India, China and South Africa) countries for the period 2003–2017. Generally, the results confirm a negative effect of IFDI and a positive effect of OFDI on the R&D expenditure ratio, both with statistical significance. Further exploration of the IFDI, OFDI and R&D impacts on CO2 emissions was based on an assumption that innovation development mitigates environmental pollution. The research outcome revealed positive associations between IFDI and the R&D expenditure ratio with CO2 emissions, showing the connection of environmental pollution to growth-focused national economic strategies. Based on these results, we recommend the following policies: (1) rethinking domestic industries protectionism trends and research support to enhance FDI spillover effects, (2) the drafting of New Development Bank specific environment-friendly investment programs aimed at innovation activities, and (3) looking into further easing the green technologies from developed countries.

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Research Article Thu, 30 Dec 2021 12:20:53 +0200
Breaking monetary policy rules in Russia https://rujec.org/article/27999/ Russian Journal of Economics 3(4): 366-378

DOI: 10.1016/j.ruje.2017.12.004

Authors: Iikka Korhonen, Riikka Nuutilainen

Abstract: This study estimates whether the monetary policy rules of Bank of Russia have changed recently. Russia has moved towards inflation targeting over the past years, which is reflected in our empirical estimations. We start by estimating various monetary policy rules for Russia, concluding that a variant of the Taylor rule depicts Bank of Russia's monetary policy over the past decade well. Moreover, there have been two clear breaks in the coefficients of the estimated monetary policy rule, possibly signifying a shift towards traditional inflation targeting and also the current recent economic turbulence.

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Research Article Thu, 30 Nov 2017 00:00:00 +0200
Firm entry and exit during a crisis period: Evidence from Russian regions https://rujec.org/article/27968/ Russian Journal of Economics 2(2): 162-191

DOI: 10.1016/j.ruje.2016.06.005

Authors: Ichiro Iwasaki, Mathilde Maurel, Bogdan Meunier

Abstract: In this paper, we aim to empirically analyze the determinants of firm entry and exit in Russia using a regional-level panel data for the years of 2008–2014, with special emphasis on institutional failures and the politico-economic impact of external crises. We found that these two elements exhibit statistically significant and economically meaningful effects both on the creation and destruction of Russian firms, controlling for potentially explanatory factors. Our empirical results also suggest that the process of firm entry and exit is manifold across Russian regions due to their heterogeneity. Nevertheless, a surprisingly robust estimate of the world oil price (irrespective of the difference in target regions) suggests a possible high exposure of each Russian region to a global crisis. This comes from the importance of oil trade with the world and, accordingly, the ongoing crisis may bring a harmful influence to regeneration of Russian businesses.

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Research Article Tue, 31 May 2016 00:00:00 +0300