ISBN: 3540009109
TITLE: Real and Financial Economic Dynamics in Russia and Eastern Europe
AUTHOR: Lane, Welfens
TOC:

Introduction 1
Timothy Lane, Nina Oding and Paul J.J. Welfens
A. Capital Flows to Transition Economies: Reasons, Risks, and Policy Responses
Timothy Lane, Leslie Lipschitz, and Alex Mourmouras
1 Introduction 7
2 Capital Flows and their Motivation 8
2.1 Real Appreciations and Interest Rate Differentials 8
2.2 Capital Scarcity 10
2.3 What Limits Capital Flows to Transition Economies? 11
2.4 Risks Associated with Capital Inflows 12
3 Policy Responses to Capital Inflows 13
3.1 Exchange Rate Regime 14
3.2 Fiscal Policy 15
3.3 Structural Reforms 15
3.4 Capital Controls 16
3.5 Transparency 17
4 Conclusion 18
Appendix: Figures and Tables 19
References 26
B. Long Term Structural Change and Productivity Growth in Russia
Evgeny Gavrilenkov
1 Point of Reference 29
2 Strategy for Russia 32
3 Economic Growth and the Investment Climate 40
4 Efficiency, Competition, Institutions 43
5 Macroeconomics 45
6 Domestic Demand and Demographics 49
7 The Widening Technological Gap is a Threat to Russia's Future 53
References 56
C. Innovation, Growth and Wage Structure in Transforming Economies
Andre Jungmittag and Paul J.J. Welfens
1 Introduction 57
2 Innovation and Growth: Where do the Transition Countries Stand? 59
3 Learning by Exports: A Feasible Perspective? 66
4 Learning from Asian NICs 71
5 Structural Change and Wage Structure in a Period of Economic Opening up and Growth 74
6 Conclusions 77
References 83
Appendix 85
D. Financial Sector and Human Capital in a Long-Term Growth Perspective: The Case of Russia
Ralf Wiegert
1 Introduction 87
2 The Importance of Financial Markets and Human Capital from Growth Theory Perspectives and Empirical Evidence 93
2.1 Financial Sector and Growth 93
2.2 Human Capital and Growth 103
3 Conclusion and Policy Options 109
Appendix 111
References 115
E. Structure and Growth of Private Consumption in Russia and East Germany
Cathleen Faber and Hans Gerhard Strohe
1 Introduction 119
2 Statistical Definitions of Private Consumption 120
3 General Factors Influencing Private Consumption 121
4 Structure and Growth of Private Consumption in East Germany 123
5 Final Consumption in Russia 128
6 Conclusions 132
References 134
F. Labor Market Transformation and Hidden Unemployment in Russia
Nina Oding
1 Introduction 135
2 The Main Features of the Labor Market 137
3 Employment/ Unemployment Statistics in Russia 140
4 Hidden Unemployment 144
5 Enterprise Behavior and Employment Policy 145
6 The Case of St. Petersburg 149
7 Concluding Remarks 152
References 153
Appendix 155
G. Principles of Market-Oriented Labor Market Policies
John T. Addison
1 Introduction 159
2 The Case for Active Manpower Policy 159
3 Active Labor Market Policy in the United States 161
4 Evaluation of U.S. Employment and Training Programs 164
5 Interpretation of the U.S. Evidence 169
6 European Evidence 173
7 Concluding Remarks 176
References 178
H. Rent-Seeking and Rent-Setting: Government Versus Competition (The Case of St. Petersburg)
Andrei Zaostrovtsev
1 Introduction 181
2 Industrial Policy and Rent-Seeking 182
3 Rent-Seeking Through Social Merit 184
4 The Vesting of Monopoly Power 185
5 Licensing as Rent-Seeking 187
6 Protectionism 190
7 Conclusion 192
References 193
I. Powerful Groups and Corruption
Frank Bohn
1 Introduction 195
2 The Power Index Model 196
3 Conclusion 204
References: 206
J. Regional Dimension of the Market Transformation in Russia
Ruslan Grinberg and Leonid Vardomsky
1 Introduction 207
2 Nonmarket Characteristics of the Russian Economic Space 207
3 Political and Economic Factors of Decentralization 210
4 Characteristics of the Economic Policy Pursued by Subjects of the Russian Federation 214
5 Some Results of Decentralization 216
6 A Change in the Federal Center's Position and Imperatives of the Regional Policy 220
7 Political Imperatives of Harmonizing Economic Relations between the Center and Regions 221
K. Foreign Trade Policies in Transformational Russian and Ukrainian Economies
Olga Nosova
1 Introduction 227
2 Global Capital Movements and Capital Flows 228
3 Foreign Trade Policies in Russia and Ukraine in Transition 234
4 Foreign Trade Policy Instruments 243
Appendix 247
References 250
L. The Role of Foreign Direct Investment in Transformation
Roland Doehrn and Natalja v. Westernhagen
1 Theoretical Background 251
2 Statistical Background 255
3 Determinants of FDI and Projections for Selected CIS and other Eastern European Countries 259
3.1. Determinants of FDI 259
3.2. Projections for Investigated CIS Countries and Eastern European Countries 262
4 FDI, Capital Formation, and Structural Charge 264
4.1. The Size of Gross Fixed Capital Formation 264
4.2. The Contribution of FDI to Capital Formation 265
4.3. Sectoral Aspects 269
5 Conclusions 272
References 273
Appendix 275
M. Data Appendix 277
List of Figures 279
List of Tables 283
List of Contributors 287
Biographies 289
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