Internationalization and Economic Policy Reforms in Transition Countries

Table of Contents......Page 5
Introduction......Page 12
A. Structural Change, Natural Resources Sector Expansion and Growth in Russia......Page 16
1. Introduction......Page 17
2. The Topic of Dutch Disease: A Theoretical Approach......Page 21
2.1 The Model of Corden and Neary......Page 23
2.2 Selected Complementary Issues......Page 28
3. Structural and Long-term Perspective of the Oil and Gas Sector......Page 30
4. Policy Implications......Page 42
Appendix......Page 45
References......Page 55
Comment on: Structural Change, Natural Resource Sector Expansion and Growth in Russia......Page 57
B. Monetary and Financial Stability as a Basis for Russia’s Sustained Economic Internationalization......Page 62
2.1 Monetary and Exchange Rate Policy......Page 63
2.2 Fiscal Policy......Page 65
2.3 Financial Sector......Page 68
3. Conclusion......Page 70
Comment on: Monetary and Financial Stability as a Basis for Russia’s Sustained Economic Internationalization......Page 72
C. Core Inflation in Russia – Different Approaches for the Period from January 1997 to April 2003......Page 77
1. Basic Framework......Page 78
2. Criteria for Selecting a Measure of Core Inflation......Page 79
3.1 Statistical Approaches......Page 80
3.2 Econometric Approaches......Page 83
4. Empirical Approaches for Russian Core Inflation......Page 85
5. The Official Russian Measure of Core Inflation......Page 93
6. Conclusions......Page 94
References......Page 96
Comment on: Core Inflation in Russia – Different Approaches for the Period from January 1997 to April 2003......Page 97
D. Russia’s Banking System, the Central Bank and the Exchange Rate Regime......Page 98
1. Introduction......Page 99
2. Original Sin and Beyond: Sources for Banking System Instability......Page 101
3. The Unofficial Peg of the Ruble......Page 107
4. The Central Bank, Competition in the Banking System and Allocative Efficiency......Page 114
5. Conclusions and Policy Options......Page 126
References......Page 128
E. Russia and International Economic Structures......Page 130
2.1 Russia and the International Monetary Fund......Page 131
2.2 Russia and the World Bank of Reconstruction and Development......Page 136
2.3 Russia and the World Trade Organization......Page 140
2.4 Russia and the Organization for Economic Co-operation and Development......Page 144
3.1 Russia and the European Union......Page 149
3.2 Russia and the Group of 8......Page 153
3.3 Russia and Asia-Pacific Economic Cooperation......Page 156
3.4 Russia in the Commonwealth of Independent States......Page 158
References......Page 168
Comment on: Russia and International Economic Structures......Page 170
F.1 An Increase of Energy Efficiency as a Major Tool for Achieving Energy Security......Page 173
2. Increasing Energy Efficiency – a Major Challenge and Opportunity for Russia......Page 174
3. Existing Barriers to Develop the Potential......Page 176
F.2 European Energy Security: Opportunities and Problems for Cooperation EU-Russia......Page 182
2. European Energy Sector......Page 183
3.2 Why such a Partnership?......Page 184
3.3 Objectives of the Partnership......Page 185
4.3 Gas Supplies and Long Term Contracts......Page 186
4.5 Trade in Nuclear Materials......Page 187
4.7 Pilot Projects......Page 188
4.9 Clean Coal......Page 189
4.11 Cooperation on Implementing the Kyoto Protocol......Page 190
5. Summary......Page 191
G. Diversification of the Russian Economy and Growth......Page 193
1. Growth Mechanism is Changing......Page 194
2. He is Able who Thinks he is Able......Page 197
3. To Change and to Change for the Better are two Different Things......Page 203
4. Vivat, Crescat, Floreat!......Page 208
5. Three Ways of Restructuring......Page 211
6. Does the Central Bank’s Monetary Policy Stimulate Restructuring?......Page 215
7. Government Aims at Diversification......Page 217
8. Banking Sector Restructuring and Growth......Page 219
References......Page 223
H. Internationalization of Russian Regions: The Role of MNCs and Outsourcing with Respect to Domestic and Foreign SMEs......Page 224
1. Introduction......Page 225
2. Role of FDI in the Globalizing World......Page 226
3. Internationalization of Russia......Page 231
4. Differentiations and Internationalization of Russian Regions......Page 236
5. Competitive Advantages in Northwest Russia......Page 240
6. Outsourcing: Opportunities and Challenges......Page 245
Appendix......Page 249
References......Page 250
Comment on: Internationalization of Russian Regions: The Role of MNCs and Outsourcing with Respect to Domestic and Foreign SMEs......Page 252
I. Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia......Page 255
1. Introduction......Page 256
2. Some Background: the SEZs and the Opening of China to Foreign Investment during the 1980s......Page 257
3. The 1991 Reforms and their Aftermath......Page 262
4. The Period of the SEZs Re-examined......Page 266
5. Implications of the Chinese Experience for Russia......Page 270
References......Page 275
Comment on: Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia......Page 277
J. The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach......Page 281
1. Introduction......Page 282
2. Theoretical Foundations for Using Gravity Models in Studying International Trade Flows......Page 283
3.1. Gravity Equation and Data......Page 285
3.2. Exploring Deviations from the Traditional Gravitational Forces Explaining Bilateral Trade Flows of the Countries......Page 286
4.1. The Specifications of the Gravity Equations......Page 289
4.2. The Estimation Results of the Model 1 and Model 2......Page 290
4.3. Behavior Differences between the Trade Flows of EU15 and CC12......Page 291
5.1. Modeling Bilateral Trade Flows of the BSR Countries......Page 293
5.2. The BSR Role in the Baltic States’ Trade Relations......Page 294
6. Conclusions......Page 296
Appendix......Page 299
References......Page 302
Comment on: The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach......Page 305
K. Russia’s Foreign Economic Relations and Regional Integration in CIS Countries: Theory, Problems and Options......Page 308
1. Introduction......Page 309
2. Russia’s Foreign Economic Relations: Policy Performance and Development Perspectives......Page 310
3. Political and Economic Issues of CIS Development......Page 318
4. Regional Economic Integration in CIS: Problems and Development Prospects......Page 323
5. Policy Conclusions......Page 325
Appendix......Page 327
References......Page 329
1. Conceptual Foundations of Empirical Studies......Page 331
2. The Problem of Comparative Empirical Analysis and Benchmarking......Page 332
4. One-Sided Nature of Conclusions......Page 333
List of Figures......Page 335
List of Tables......Page 340
List of Contributors......Page 342