Internationalization And Economic Policy Reforms in Transition Countries

by Graham, Edward M.; Oding, Nina; Welfens, Paul J. J.

• ISBN13: 9783540240402
• ISBN10: 3540240403
• Format: Hardcover
• Copyright: 2005-11-30
• Publisher: Springer Verlag

Summary

The focus of this book is on economic and institutional modernization in the new Russia and Eastern Europe. Systemic transformation and economic catching-up process raise new theoretical and empirical issues as well as policy topics. In the book economists from Europe and the US look into trade and investment dynamics and policy shifts, including monetary policy and strategies for international organizations. Special emphasis is on the role of the natural resources sector and on economic growth. Moreover, the internationalization of regions within Russia and energy issues as well as aspects of trade gravity modelling are analyzed. The book highlights the wider European integration dynamics from a comparative perspective.

Table of Contents

Introduction	1	(4)
Edward M. Graham
Nina Oding
Paul J.J. Welfens
Structural Change, Natural Resources Sector Expansion and Growth in Russia	5	(46)
Paul J.J. Welfens
Albrecht Kauffmann
Introduction	6	(4)
The Topic of Dutch Disease: A Theoretical Approach	10	(9)
The Model of Corden and Neary	12	(5)
Selected Complementary Issues	17	(2)
Structural and Long-term Perspective of the Oil and Gas Sector	19	(12)
Policy Implications	31	(20)
Appendix	34	(10)
References	44	(2)
Comment on: Structural Change, Natural Resource Sector Expansion and Growth in Russia	46	(5)
Andrey P. Zaostrovtsev
Monetary and Financial Stability as a Basis for Russia's Sustained Economic Internationalization	51	(16)
Jose Fajgenbaum
Introduction	52	(1)
Elements and Conditions for Monetary and Financial Stability	52	(7)
Monetary and Exchange Rate Policy	52	(2)
Fiscal Policy	54	(3)
Financial Sector	57	(2)
Conclusion	59	(8)
Comment on: Monetary and Financial Stability as a Basis for Russia's Sustained Economic Internationalization	61	(6)
Christof Ruehl
Core Inflation in Russia -- Different Approaches for the Period from January 1997 to April 2003	67	(22)
Cathleen Faber
Hans Gerhard Strohe
Basic Framework	68	(1)
Criteria for Selecting a Measure of Core Inflation	69	(1)
Different Approaches to Measure Core Inflation	70	(5)
Statistical Approaches	70	(3)
Econometric Approaches	73	(2)
Empirical Approaches for Russian Core Inflation	75	(8)
The Official Russian Measure of Core Inflation	83	(1)
Conclusions	84	(5)
References	86	(1)
Comment on: Core Inflation in Russia -- Different Approaches for the Period from January 1997 to April 2003	87	(2)
Irina Eliseeva
Russia's Banking System, the Central Bank and the Exchange Rate Regime	89	(32)
Ralf Wiegert
Introduction	90	(2)
Original Sin and Beyond: Sources for Banking System Instability	92	(6)
The Unofficial Peg of the Ruble	98	(7)
The Central Bank, Competition in the Banking System and Allocative Efficiency	105	(12)
Conclusions and Policy Options	117	(4)
References	119	(2)
Russia and International Economic Structures	121	(44)
Ruslan Grinberg
Introduction	122	(1)
Russia and International Economic Organizations	122	(18)
Russia and the International Monetary Fund	122	(5)
Russia and the World Bank of Reconstruction and Development	127	(4)
Russia and the World Trade Organization	131	(4)
Russia and the Organization for Economic Co-operation and Development	135	(5)
Russia and Regional Integration Blocs	140	(25)
Russia and the European Union	140	(4)
Russia and the Group of 8	144	(3)
Russia and Asia-Pacific Economic Cooperation	147	(2)
Russia in the Commonwealth of Independent States	149	(10)
References	159	(2)
Comment on: Russia and International Economic Structures	161	(4)
Paul J.J. Welfens
An Increase of Energy Efficiency as a Major Tool for Achieving Energy Security	165	(10)
Petra Opitz
Introduction	166	(1)
Increasing Energy Efficiency -- a Major Challenge and Opportunity for Russia	166	(2)
Existing Barriers to Develop the Potential	168	(7)
European Energy Security: Opportunities and Problems for Cooperation EU-Russia	175	(12)
Peter Palinkas
Introduction	176	(1)
European Energy Sector	176	(1)
The EU-Russia Energy Partnership	177	(2)
General Remarks	177	(1)
Why such a Partnership?	177	(1)
Objectives of the Partnership	178	(1)
Progress and Recent Developments in the EU-Russia Energy Partnership	179	(5)
EU Internal Gas and Electricity Market	179	(1)
Energy Infrastructure Projects of ``Common Interest''	179	(1)
Gas Supplies and Long Term Contracts	179	(1)
The Legal Framework	180	(1)
Trade in Nuclear Materials	180	(1)
Electricity	181	(1)
Pilot Projects	181	(1)
Oil and Gas Security	182	(1)
Clean Coal	182	(1)
Energy Technology Center	183	(1)
Cooperation on Implementing the Kyoto Protocol	183	(1)
Summary	184	(3)
Diversification of the Russian Economy and Growth	187	(32)
Evgeny Gavrilenkov
Growth Mechanism is Changing	188	(3)
He is Able who Thinks he is Able	191	(6)
To Change and to Change for the Better are two Different Things	197	(5)
Vivat, Crescat, Floreat!	202	(3)
Three Ways of Restructuring	205	(4)
Does the Central Bank's Monetary Policy Stimulate Restructuring?	209	(2)
Government Aims at Diversification	211	(2)
Banking Sector Restructuring and Growth	213	(6)
References	217	(2)
Internationalization of Russian Regions: The Role of MNCs and Outsourcing with Respect to Domestic and Foreign SMEs	219	(32)
Nina Oding
Introduction	220	(1)
Role of FDI in the Globalizing World	221	(5)
Internationalization of Russia	226	(5)
Differentiations and Internationalization of Russian Regions	231	(4)
Competitive Advantages in Northwest Russia	235	(5)
Outsourcing: Opportunities and Challenges	240	(11)
Appendix	244	(1)
References	245	(2)
Comment on: Internationalization of Russian Regions: The Role of MNCs and Outsourcing with Respect to Domestic and Foreign SMEs	247	(4)
Christopher Schumann
Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia	251	(26)
Edward M. Graham
Introduction	252	(1)
Some Background: the SEZs and the Opening of China to Foreign Investment during the 1980s	253	(5)
The 1991 Reforms and their Aftermath	258	(4)
The Period of the SEZs Re-examined	262	(4)
Implications of the Chinese Experience for Russia	266	(11)
References	271	(2)
Comment on: Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia	273	(4)
Thomas Gries
The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach	277	(28)
Tiiu Paas
Introduction	278	(1)
Theoretical Foundations for Using Gravity Models in Studying International Trade Flows	279	(2)
Specifications of Gravity Equations for Exploring Regional Integration in Trade	281	(4)
Gravity Equation and Data	281	(1)
Exploring Deviations from the Traditional Gravitational Forces Explaining Bilateral Trade Flows of the Countries	282	(3)
Modeling International Trade Flows in the Context of EU Eastward Enlargement	285	(4)
The Specifications of the Gravity Equations	285	(1)
The Estimation Results of the Model 1 and Model 2	286	(1)
Behavior Differences between the Trade Flows of EU15 and CC12	287	(2)
Trade Integration in the Baltic Sea Region (BSR)	289	(3)
Modeling Bilateral Trade Flows of the BSR Countries	289	(1)
The BSR Role in the Baltic States' Trade Relations	290	(2)
Conclusions	292	(13)
Appendix	295	(3)
References	298	(3)
Comment on: The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach	301	(4)
Natalja von Westernhagen
Russia's Foreign Economic Relations and Regional Integration in CIS Countries: Theory, Problems and Options	305	(28)
Olga Nosova
Introduction	306	(1)
Russia's Foreign Economic Relations: Policy Performance and Development Perspectives	307	(8)
Political and Economic Issues of CIS Development	315	(5)
Regional Economic Integration in CIS: Problems and Development Prospects	320	(2)
Policy Conclusions	322	(6)
Appendix	324	(2)
References	326	(2)
Comment on: Russia's Foreign Economic Relations and Regional Integration in CIS Countries: Theory, Problems and Options	328	(1)
Grigori Feiguine
Conceptual Foundations of Empirical Studies	328	(1)
The Problem of Comparative Empirical Analysis and Benchmarking	329	(1)
Questionability of Certain Assertions	330	(1)
One-Sided Nature of Conclusions	330	(3)
List of Figures	333	(6)
List of Tables	339	(2)
List of Contributors	341