ISBN: 3540240403
TITLE: Internationalization and Economic Policy Reforms
AUTHOR: Graham et al.
TOC: 

Introduction 1
Edward M. Graham, Nina Oding and Paul J f. Welfens
A. Structural Change, Natural Resources Sector Expansion and Growth in Russia 5 Paul J.J. Welfens and Albrecht Kauffmann
1. Introduction 6
2. The Topic of Dutch Disease: A Theoretical Approach 10
2.1 The Model of Corden and Neary 12
2.2 Selected Complementary Issues 17
3. Structural and Long-term Perspective of the Oil and Gas Sector 19
4. Policy Implications 31
Appendix 34
References 44
Comment on: Structural Change, Natural Resource Sector Expansion and Growth in Russia 46
Andrey P. Zaostrovtsev
B. Monetary and Financial Stability as a Basis for Russia's Sustained Economic Internationalization 51
Jos Fajgenbaum
1. Introduction 52
2. Elements and Conditions for Monetary and Financial Stability 52
2.1 Monetary and Exchange Rate Policy 52
2.2 Fiscal Policy 54
2.3 Financial Sector 57
3. Conclusion 59
Comment on: Monetary and Financial Stability as a Basis for Russia's Sustained Economic Internationalization 61
Christof Ruehl
C. Core Inflation in Russia - Different Approaches for the Period from January 1997 to April 2003 67
Cathleen Faber and Hans Gerhard Strohe
1. Basic Framework 68
2. Criteria for Selecting a Measure of Core Inflation 69
3. Different Approaches to Measure Core Inflation 70
3.1 Statistical Approaches 70
3.2 Econometric Approaches 73
4. Empirical Approaches for Russian Core Inflation 75
5. The Official Russian Measure of Core Inflation 83
6. Conclusions 84
References 86
Comment on: Core Inflation in Russia - Different Approaches for the Period from January 1997 to April 2003 87
Irina Eliseeva
D. Russia's Banking System, the Central Bank and the Exchange Rate Regime 89 Ralf Wiegert
1. Introduction 90
2. Original Sin and Beyond: Sources for Banking System Instability 92
3. The Unofficial Peg of the Ruble 98
4. The Central Bank, Competition in the Banking System and Allocative Efficiency 105
5. Conclusions and Policy Options 117
References 119
E. Russia and International Economic Structures 121
Ruslan Grinberg
1. Introduction 122
2. Russia and International Economic Organizations 122
2.1 Russia and the International Monetary Fund 122
2.2 Russia and the World Bank of Reconstruction and Development 127
2.3 Russia and the World Trade Organization 131
2.4 Russia and the Organization for Economic Co-operation and Development 135
3. Russia and Regional Integration Blocs 140
3.1 Russia and the European Union 140
3.2 Russia and the Group of 8 144
3.3 Russia and Asia-Pacific Economic Cooperation 147
3.4 Russia in the Conunonwealth of Independent States 149
References 159
Comment on: Russia and International Economic Structures 161
Paul J.J. Welfens
F.1 An Increase of Energy Efficiency as a Major Tool for Achieving Energy Security 165
Petra Opitz
1. Introduction 166
2. Increasing Energy Efficiency - a Major Challenge and Opportunity for Russia .166
3. Existing Barriers to Develop the Potential 168
F.2 European Energy Security: Opportunities and Problems for Cooperation EU-Russia 175
Peter Palinkas
1. Introduction .176
2. European Energy Sector 176
3. The EU-Russia Energy Partnersip 177
3.1 General Remarks 177
3.2 Why such a Partnership? 177
3.3 Objectives of the Partnership 178
4. Progress and Recent Developments in the EU-Russia Energy Partnership 179
4.1 EU Internal Gas and Electricity Market 179
4.2 Energy Infrastructure Projects of "Common Interest" 179
4.3 Gas Supplies and Long Term Contracts 179
4.4 The Legal Framework 180
4.5 Trade in Nuelear Materials 180
4.6 Electricity 181
4.7 Pilot Projects 181
4.8 Oil and Gas Security 182
4.9 Clean Coal 182
4.10 Energy Technology Center 183
4.11 Cooperation an Implementing the Kyoto Protocol 183
5. Summary 184
G. Diversification of the Russian Economy and Growth 187
Evgeny Gavrilenkov
1. Growth Mechanism is Changing 188
2. He is Able who Things he is Able 191
3. To Change and to Change for the Better are two Different Things 197
4. Vivat, Crescat, Floreat! 202
5. Three Ways of Restructuring 205
6. Does the Central Bank's Monetary Policy Stimulate Restructuring? 209
7. Government Aims at Diversification 211
B. Banking Sector Restructuring and Growth 213
References 218
H. Internationalization of Russian Regions: The Role of MNCs and Outsourcing with Respect to Domestic and Foreign SMEs 219
Nina Oding
1. Introduction 220
2. Role of FDI in the Globalizing World 221
3. Internationalization of Russia 226
4. Differentiations and Internationalization of Russian Regions 231
5. Competitive Advantages in Northwest Russia 235
6. Outsourcing: Opportunities and Challenges 240
Appendix 244
References 245
Comment on: Internationalization of Russian Regions: The Role of MNCs and Outsoureing with Respect to Domestic and Foreign SMEs 247
Christopher Schumann
I. Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia 251
Edward M. Graham
1. Introduction 252
2. Some Background: the SEZs and the Opening of China to Foreign Investment during the 1980s 253
3. The 1991 Reforms and their Aftermath 258
4. The Period of the SEZs Re-examined 262
5. Implications of the Chinese Experience for Russia 266
References 271
Comment on: Do Export Processing Zones Attract FDI and its Benefits? Experience from China and Lessons for Russia 273
Thomas Gries
J. The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach 277 Tiiu Paas
1. Introduction 278
2. Theoretical Foundations for Using Gravity Models in Studying International Trade Flows 279
3. Specifications of Gravity Equations for Exploring Regional Integration in Trade 281
3.1. Gravity Equation and Data 281
3.2. Exploring Deviations from the Traditional Gravitational Forces Explaining Bilateral Trade Flows of the Countries 282
4. Modeling International Trade Flows in the Context of EU Eastward Enlargernent 285
4.1. The Specifications of the Gravity Equations 285
4.2. The Estimation Results of the Model 1 and Model 2 286
4.3. Behavior Differences between the Trade Flows of EU 15 and CC12 287
5. Trade Integration in the Baltic Sea Region (BSR) 289
5.1. Modeling Bilateral Trade Flows of the BSR Countries 289
5.2. The BSR Role in the Baltic States' Trade Relations 290
6. Conclusions 292
Appendix 295
References 298
Comment on: The Baltic Sea Regional Integration and International Trade: A Gravity Model Approach 301
Natalja von Westernhagen
K. Russia's Foreign Economic Relations and Regional Integration
in CIS Countries: Theory, Problems and Options 305
Olga Nosova
1. Introduction 306
2. Russia's Foreign Economic Relations: Policy Performance and Development Perspectives 307
3. Political and Economic Issues of CIS Development 315
4. Regional Economic Integration in CIS: Problems and Development Prospects 320
5. Policy Conclusions 322
Appendix 324
References 326
Comment on: Russia's Foreign Economic Relations and Regional Integration in CIS Countries: Theory, Problems and Options 328
Grigori Feiguine
1. Conceptual Foundations of Empirical Studies 328
2. The Problem of Comparative Empirical Analysis and Benchmarking 329
3. Questionability of Certain Assertions 330
4. One-Sided Nature of Conclusions 330
List of Figures 333
List of Tables 339
List of Contributors 341
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