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TERRA ECONOMICUS

GLOBAL CHALLENGES OF THE FOURTH INDUSTRIAL REVOLUTION

TERRA ECONOMICUS, , Vol. 17 (no. 2),

The article deals with the characteristics of the Fourth Industrial Revolution. A new periodization of the four industrial revolutions is given; the differences between them in terms of the impact on the labor market are considered. The concepts of Malthusian and neo-Malthusian traps are introduced, the fundamental differences between them and the ways out of them are discussed. The author shows that the main element of the civilizational cognitive dissonance of the Fourth Industrial Revolution is the devaluation of labor as such, including mental work. The value of digital platforms for strengthening the role of trade in comparison with production is estimated; as the author argues, this process is due to the nature of production, which is local, and nature of trade, which is global. The thesis is substantiated, according to which the scale effect acquires the features of technological marginality, shifting to the beginning and the end of the product life cycle. The quantitative, qualitative and auxiliary cerebral differences between people are considered. The author justifies that under new conditions the existing biological inequality will aggravate the growth of social inequality. At the same time, gender differences in the professional sphere will be more and more leveled. The possible disruption of Arrighi cycles due to that United States will either remain as a center of capital or United Europe becomes the new center; China is losing its advantages associated with labor reserves in the context of the Fourth Industrial Revolution.
Citation: Balatsky, E. V. (2019). Global challenges of the Fourth Industrial Revolution. Terra Economicus, 17(2), 6–22. DOI: 10.23683/2073-6606-2019-17-2-6-22

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AGENT-ORIENTED MODEL OF PROFESSIONAL EXPERTISE AND DECISION MAKING ON INDIVIDUAL PUBLIC SIGNIFICANT INITIATIVES SUPPORT

TERRA ECONOMICUS, , Vol. 17 (no. 2),

Researches support by competitive funding mechanisms realized through scientific foundations is a common global practice. At the same time, decisions on support or refusal of a scientific project financing are made because of results of a multistage examination, which is a primary part of the competitive funding system and is conducted by the scientific community itself (peer review). It is important to take into account that the decisions of each expert in a situation of choice are influenced by his individual economic and psychological characteristics. Usually, these characteristics are neglected, but in our opinion, they should not be underestimated. This article presents an agentbased model of professional expertise and decision-making on financial support for research projects by scientific foundations, considering the economic and psychological characteristics of agents-experts and the reputational consequences of their decisions. The model takes into account such individual economic and psychological characteristics of scientists as “individualism – collectivism”, “satisfaction – dissatisfaction” and others. The quality of projects, the qualifications of scientists, their propensity for subjectivity and objectivity in the process of project evaluation, depending on the economic and psychological characteristics are also considered. Feedbacks in the model are implemented by changing the reputation of scientists, depending on the degree of objectivity of projects evaluations including by comparing the reputation of the researcher with the average reputation of his immediate surrounding. Conclusions about changes in the structure of researcher’s groups within the scientific community are made on the basis of changes in the reputation of scientists, depending on their belonging to the class of dependent (pursuing the interests of individual groups and communities) or the class of independent (conducting a fair evaluation of research projects). Recommendations for the further development of the model and for using it to predict the outcomes of local situations in autonomous socio-economic systems are formulated.
Citation: Kleiner, G. B., Rybachuk, M. A., and Ushakov, D. V. (2019). Agent-oriented model of professional expertise and decision making on individual public significant initiatives support. Terra Economicus, 17(2), 23–39. DOI: 10.23683/2073-6606-2019-172-23-39

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THE FORECAST OF CLUSTER ECONOMIC EFFICIENCY IN THE CONTEXT OF REGIONAL CLUSTER DEVELOPMENT SCENARIOS

TERRA ECONOMICUS, , Vol. 17 (no. 2),

This article is the final stage of the research devoted to the problems of evaluating and forecasting the cluster projects efficiency as a mechanism for the sustainable region development. Here we emphasize the methodology to analyze the cluster projects economic efficiency using expert probability estimation of cluster development scenarios implementation. Expert surveys are used in all of the considered approaches to cluster analysis due to the complexity and high uncertainty of cluster projects implementation. Thus, the analysis of cluster economic efficiency might be supplemented in terms of improving the relationship between expert information and financial model indicators. As a result of financial model interrelated indicators adjustment with expert information we obtain the vector of economic efficiency indicators, consisting of the possible values and the corresponding scenario probabilities. We have tested an additional stage of cluster project efficiency estimation using scenario forecast based on the expert-statistical Bayesian method. We estimated the probabilities of cluster development scenarios implementation and the ways to improve economic efficiency using the example of Omsk petrochemical cluster project “The first stage of creating an industrial complex for the bisphenol-A and polycarbonate production: preparation of the technological and raw material base” and the collected expert information. According to calculations, the experts are unanimous that an inert scenario looks most likely. The other half of the mixed development trajectory falls on the rest other three scenarios, where the “State Paternalism” scenario is most likely. The system of interrelated financial project indicators was adjusted and efficiency indicators were calculated for various development trajectories based on estimated event probabilities. The presented methodology may be useful as a tool for strategic planning, since it allows determining the available opportunities and limitations as well as the ways to get closer to the desired development trajectory.
Citation: Kapoguzov, E. A., Loginov, K. K., Chupin, R. I., and Kharlamova, M. S. (2019). The Forecast of Cluster Economic Efficiency in the Context of Regional Cluster Developm

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DEVELOPMENT OF DIGITAL INFRASTRUCTURE IN THE RUSSIAN REGIONS

TERRA ECONOMICUS, , Vol. 17 (no. 2),

The paper proposes the use of expanded Mankiw ‒ Romer ‒ Weil model of economic growth (MRW), which includes additionally intellectual, social, infrastructure and integration capital. Based on regression modeling using panel data for 2011–2016, the importance of the digital infrastructure for the economic growth of Russian regions is justified. The indicators of the so-called digital infrastructure capital, which includes the degree of penetration of access to broadband Internet, the intensity of the use of server equipment and local computer networks in regional enterprises, are significant in the models built. In addition, the hypothesis was confirmed on the existence of permanent elasticities of the gross regional product and gross regional product per capita for the above-mentioned indicators of the digital infrastructure. As a result of adding digital infrastructure capital variables to the model, there is a transition from the production function with constant return to scale (constant return to scale) to the production function with increasing return. In addition, the total contribution of digital infrastructure indicators, estimated by the sum of their elasticities, is half of the contribution of traditional factors ‒ labor and physical capital. Also, most of the differences in gross regional product per capita and in the regions of Russia are determined by indicators of digital infrastructure. This fact clearly demonstrates the prospects and importance of digital transformation in Russia. It is worth noting that the mobile Internet, which is one of the important attributes of the digital economy development, as well as a condition for the development of modern forms of social capital, has been increasing its influence over time.
Citation: Kramin, T. V., and Klimanova, A. R. (2019). Development of digital infrastructure in the Russian regions. Terra Economicus, 17(2), 60–76. DOI: 10.23683/20736606-2019-17-2-60-76

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STRUCTURAL CHANGE IN REGIONAL ECONOMY AND LOCAL MARKETS DEVELOPMENT

TERRA ECONOMICUS, , Vol. 17 (no. 2),

This article presents findings of a study on the relationships between local markets development and regional economic structure at the South of Russia. The mechanism through which market forces affect the structural change in regional economy and its spatial organization is described; specific drivers that foster the development of related processes are identified. Regional economic structure is analyzed through the lens of its influence on regional economic space. Market forces are seen as the factors which shape economic system, tighten up the regional economic space into peculiar «nodes» combining the parts of the system into coherent matrix structure. Such «centers of attraction» are represented by the wholesale markets emerging within the large corporate structures, enhancing overall economic activity and strengthening business environment in the region. The paper deals with economic activities of such industry leaders of the South of Russia as Rostselmash PJSC, the largest domestic producer of agricultural equipment for domestic and global markets, and Rostvertol JSC, the leading manufacturer and exporter of military and civilian helicopters. Theoretical approaches to the study of structural change in regional economy are systematized; the key approaches are identified as the following ones: territorial, resource, informational and process. The research findings suggest that structural change in regional economy supports economic environment as the integrated system, boosts growth cycles, and synchronizes interactions between market participants.
Citation: Ovchinnikov, V. N., Ketova, N. P., and Druzhinin, A. G. (2019). Structural change in regional economy and local markets development. Terra Economicus, 17(2), 77–95. DOI: 10.23683/2073-6606-2019-17-2-77-95

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THE IMPACT MODEL OF THE PRODUCTION CAPACITIES STRUCTURE OF THE ENERGY SYSTEM AND THE REGIONAL ENERGY SECURITY

TERRA ECONOMICUS, , Vol. 17 (no. 2),

As recent research literature suggests, the existing production structure of the territorial energy systems has a significant impact on the regional energy security. Energy security of the region constitutes an important issue that is key to the development of national economies. At the same time, its key characteristic is represented by the production and technological efficiency. With regard to the above, the increase of the production and technological efficiency contributes to the growth of the level of energy security of a territorial entity. Market conditions that are necessary for the smooth and reliable operation of the energy sector require ensuring the efficiency of operation of the production capacity of the energy system in accordance with the established rules for their operation in the energy product markets. In order to do this, it is necessary to carry out its structural optimization, including the one that includes the introduction of new production technologies. This paper proposes a model for assessing the impact on energy security of the structure of energy production that, in its turn, allows to form the effective production and technological solutions for the modernization of the production capacity of the territorial energy system from the standpoint of ensuring the energy security of the region in market conditions.
Citation: Lisin, E., Rogalev, N., and Okley, P. (2019). The impact model of the production capacities structure of the energy system and the regional energy security. Terra Economicus, 17(2), 96–111. DOI: 10.23683/2073-6606-2019-17-2-96-111

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DETERMINANTS OF INNOVATIONS IN SMALL AND MEDIUM ENTERPRISES: A EUROPEAN AND INTERNATIONAL EXPERIENCE

TERRA ECONOMICUS, , Vol. 17 (no. 2),
Citation: Toomsalu, L., Tolmacheva, S., Vlasov, A., and Chernova, V. (2019). Determinants of innovations in small and medium enterprises: a european and international experience. Terra Economicus, 17(2), 112–123. DOI: 10.23683/2073-6606-2019-17-2-112-123

This paper focuses on the determinants of innovations in small and medium enterprises (SMEs). SMEs play a decisive role in economic transformation by creating additional workplaces and thence levelling the unemployment, contributing to the local budgets, or promoting innovations and economic growth. Moreover, they play a key role in the integrated development of formal and informal entrepreneurial institutions. Thence, innovations represent an important factor for fostering the growth and development of SMEs and are likely to contribute to their overall success and economic profits. In this paper, we use the data from the selected European Union (EU) countries and employ the empirical model envisaged for singling out the factors that influence innovation in SMEs. We use econometric modelling with several variables in order to determine relationships and draw the causalities. Our results demonstrate that higher competition, investment into technologies and optimisation tend to foster innovations, while obsolete equipment and personnel, as well as financial and administrative barriers tend to present obstacles for innovations. We also found that it is important for every SME to concentrate on its inner structure, management, skills and ambitions which are required for formulating a clear innovative strategy on a path to successful growth and success on the market.

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ALTMAN'S MODEL FOR THE INDUSTRY OF THE RUSSIAN FEDERATION IN 2015 COMPARED TO THE DATA OF ROSNEFT AND GAZPROM GROUP: FACTS AND HYPOTHESES

TERRA ECONOMICUS, , Vol. 17 (no. 2),

This article continues the series on the Altman model application to the largest Russian companies’ performance indicators, with the focus on the Altman model for the Russian industry for 2015. Parameters of the model are calculated in two ways: relying on the canonical model, and on the model for developing countries. The model for developing countries is seen as a preferable one, showing similar socio-economic characteristics for Russia. The author’s estimations are based on the official statistical data provided by the Federal State Statistics Service of the Russian Federation – Rosstat, with the statistical bias taken into account. Related statistical errors include seriously underestimated value of fixed assets, the erroneous industrial classification of Gazprom and Rosneft groups. Creation of offshore company accounts as collateral for creditors is also taken into account. A method for determining the size of these accounts is proposed. The resulting scores according to the Altman model for industry are compared with the calculation results of the Altman model applied to Rosneft and Gazprom Group performance indicators. The Altman model scores are also estimated for three industrial sectors: mining, manufacturing and power generation. Canonical Altman model, based on the data by Rosstat and considering statistical errors, forecasts unsatisfactory financial condition of the Russian industry. At the same time, these results are much better than in Rosneft and Gazprom group. According to the model for developing countries, the results are satisfactory. Consideration of offshore accounts allows the author to predict good financial condition of the industry of the Russian Federation. Research findings suggest that particularly good results are demonstrated by the mining and manufacturing industries; the findings on the power industry are considered to be least satisfactory ones – due to the restriction of electricity and heat tariffs. Conclusions are drawn concerning improvements of the economic analysis of industry, improving statistic methods and accounting in the industry of the Russian Federation.
Citation: Khanin, G. I. (2019). Altman’s model for the industry of the Russian Federation in 2015 compared to the data of Rosneft and Gazprom group: facts and hypotheses. Terra Economicus, 17(2), 124–145. DOI: 10.23683/2073-6606-2019-17-2124-145

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REFORMS, TACIT KNOWLEDGE, AND INSTITUTIONAL TRAPS IN EDUCATION AND SCIENCE

TERRA ECONOMICUS, , Vol. 17 (no. 2),

Education reform in Russia is strongly influenced by neoliberal and managerial discourses. New academic regulations and standards imply that the performance of educational and scientific organizations should be estimated using clear, objective and comparable, measurable quantitative indicators. The article examines how stable inefficient institutional equilibria or institutional traps emerge as a result of neoliberal agenda in education and science reforms. Underestimation of the role of tacit knowledge in education reforms results in behavioral models that neglect specific academic values, social capital and institutions. The role of tacit knowledge in education and science is related to the possibilities for the interactions and effective choice by the professionals. To identify the institutional traps in education and science, we relied on the main actors’ narratives analysis and a qualitative survey. Two institutional traps demonstrate the problem of ignoring the role of tacit knowledge most clearly; these are the decrease in the quality of education, from the one hand, and digitalization and ICT application to education, on the other. In the medium term perspective, the negative impact of the institutional trap related to decrease in the quality of education is likely to be more intensive due to destruction of the institutional environment and decline in the quality of human and social capital in the academic sphere. ICT application, in turn, do not allow the transfer of non-codified tacit knowledge. Due to digitalization, there is an uncontrollable drop in the quantity of teachers, accompanied with the excessive regulation and bureaucratization, which result in the transformation of organizational mechanisms in the field of education and science.
Citation: Volchik, V. V., and Maslyukova, E. V. (2019). Reforms, tacit knowledge, and institutional traps in education and science. Terra Economicus, 17(2), 146–162. DOI: 10.23683/2073-6606-2019-17-2-146-162

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ECONOMICS AND LINGUISTICS: THEORY, HISTORY, PRACTICE

TERRA ECONOMICUS, , Vol. 17 (no. 2),

In this article the interrelationships between linguistics and economics, which took place at different stages of their development, are explored. Term economics in this article refers to economic theory, economic history, as well as analysis (sociological or philosophical) of economic practices in general. In order to uncover essential similarities that are contained in these areas of knowledge, the task is to identify paradigmatic reasons that made possible methodological adoptions from one science to another and determined existence of a system of serial and deep parallels between them. At the same time, special attention is paid to exploration of these parallels in the context of a number of main intellectual approaches that have competed with each other during the past century: structuralism, logical positivism, and subjectivism. It is demonstrated that each of these philosophical approaches can be correlated with a special relationship to linguistic reality and with a specific economic theory at the same time. Thus, in this article is shown some close relationship of structuralism (and structural linguistics) with various types of Marxist discourses; Objectivism – and logical positivism – with the English and American economic tradition (economics), and subjectivism – with the concepts of the Austrian economic school. Along with this, the study provides explanations of some important reasons that historically underlay the identified correspondences. As such, there are found the reasons that (depending on the case under consideration) are completely different, varying from the social conditionality to depending on the national characteristics of the particular school of thought.
Citation: Sysoev, P. I. (2019). Economics and linguistics: theory, history, practice. Terra Economicus, 17(2), 163–175. DOI: 10.23683/2073-6606-2019-17-2-163-175

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RADICAL ECONOMIC CHANGES IN RUSSIA OF THE TWENTIETH CENTURY IN THE MIRROR OF VOCABULARY

TERRA ECONOMICUS, , Vol. 17 (no. 2),

Language as a tool of interaction between man and the surrounding reality undergoes various transformations during the change of socio-cultural epochs. By the example of the interpretation of economic vocabulary and terminology, the article shows the shifts in the consciousness of native speakers that arose under the influence of radical changes in the Russian economy in the second half of the twentieth century. The system of economic terminology of the Soviet era is reconstructed on the basis of various publications of the «Explanatory dictionary of the Russian language» by S. I. Ozhegov. Clearly divided into two semantic spheres, «our» and «alien», it is marked by special words-operators: «Soviet» and «capitalist», inducing hidden evaluability of «and it is good» and «and it is bad» respectively. To serve the ideological order in the practice of creating dictionary interpretations, five different ways of covert implementation of the necessary politicized settings were developed: from the use of evaluative vocabulary to various comments, which distort the meaning of the words as necessary. The economic model transformation in the post-Soviet era leads to shifts both in the minds of native speakers and in the understanding of economic vocabulary, which is reflected in the new editions of dictionaries. Consistent rejection of the previously accepted methods of marking vocabulary leads, on the one hand, to the de-ideologization of economic terminology, on the other – to the formation of a common, mainly science-based arsenal of language units.
Citation: Semenets, O. P. (2019). Radical economic changes in Russia of the twentieth century in the mirror of vocabulary. Terra Economicus, 17(2), 176–189. DOI: 10.23683/2073-6606-2019-17-2-176-189

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