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TERRA ECONOMICUS

Assessment of resilient development of the regional economies based on Mahalanobis distances


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The purpose of this study is to assess the resilience of the development of the Russian regions using the Mahalanobis distance methodology. I test a number of hypotheses about the relationship between resilient development and its level, rate, and the degrees of economic openness and sectoral diversification of the economy. The study relies on the data provided by the Federal State Statistics Service of the Russian Federation on 83 Russian regions from 2000 to 2017. The level of economic resilience was determined using five particular indicators per capita: the revenue of the consolidated budgets of the constituent entities of the Russian Federation, the actual final consumption of households, the investments of firms in fixed assets, exports and imports. Bringing partial indicators of development to a single indicator was carried out by calculating the Mahalanobis distances, demonstrating the average normalized distance of the region to a particular center. The construction of temporal regressions of the Mahalanobis distances for each region made it possible to separate the stable trend of their development from the cyclical component. To assess the absolute and relative levels of the instability of regional development, I used the standard deviation of the residuals of these regressions and its ratio to the time-average Mahalanobis distance of each region. To test the hypotheses, I constructed multivariate regressions based on spatial samples of regions. As a result of the study, I obtain assessments of the level and rate of development, as well as the levels of absolute and relative stability, both for 5 particular indicators and for a composite indicator in all Russian regions. A positive and rather high correlation was found between the level of regional development and its absolute instability. Among the least stable, I found a number of dynamically developing mining regions of the Russian Federation, such as the Tyumen and Sakhalin regions, the Yamalo-Nenets and Khanty-Mansi Autonomous Okrug, but also the Kaluga region with a developed manufacturing industry. Some of the less developed regions of the European part of Russia with a fairly diversified economy (Chuvash Republic, Ulyanovsk, Penza and Kirov regions) turned out to be the most stable. The study confirmed the hypotheses about a positive relationship between the degree of development instability and its level and rate, as well as the degree of openness of the economy, and about the negative relationship between the instability and the level of sectoral diversification of the economy. The results of the study can be useful in managing the resilient development of Russian regions.
Citation: Malkina, M. Y. (2020). Assessment of resilient development of the regional economies based on Mahalanobis distances. Terra Economicus, 18(3), 140–159. DOI: 10.18522/2073-6606-2020-18-3-140-159
Acknowledgment: The study was carried out within the framework of the basic part of the state assignment of the Ministry of Education and Science of the Russian Federation, project 0729-2020-0056.

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Black Death, “Industrial Revolution” and Paper Age collapse


TERRA ECONOMICUS, , Vol. 18 (no. 3),

This essay discusses first English and then world economic history, starting with the Black Death of 1348–1400AD. When the English population and wealth both increased after 1400, the structure of English development by the year 1700 became a little bit like a spiral, this paper says. The aggregate size of wealth increased, but there was little commensurate change in the distribution of wealth. The eighteenth-century English elite absorbed the elites of Wales and Scotland, and then the Protestant elite of Ireland. Then, on the same model of absorption, an English-speaking elite later came to dominate world wealth. As the world population increased in the early modern period, and as aggregate wealth increased apace, the distribution of world wealth became approximately what the distribution of wealth had been in England in 1700. A tiny group of very wealthy people had controlled the wealth of England in 1700. In the late twentieth century, the English elite absorbed the world elite many of whom adopted the English language and much of English culture. They often sent their children to study in Britain or America. Now this tiny elite group, English in language and usually English in culture, controls much of the wealth of the world while at the same time the ongoing increase in population has produced a huge number of very poor people.
Citation: Taylor, J. A. (2020). Black Death, “Industrial Revolution” and Paper Age collapse. Terra Economicus, 18(3), 6–17. DOI: 10.18522/2073-6606-2020-18-3-6-17

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Job satisfaction in the academic sphere


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The article analyzes job satisfaction among the academic staff in Russia. The materials on the social and professional well-being of the scientific and pedagogical personnel of the Southern Federal University provide empirical evidence for the study. The authors justify the new meanings for such concepts as «job satisfaction», «satisfaction with work results», «subjective metrics», «subjective value». The theoretical and methodological framework of the study includes indicators of the general level of job satisfaction, satisfaction with work-role inputs and factors that characterize work-role outputs. Based on empirical data, the results on job satisfaction for the Southern Federal University are compared with the data provided by the Russia Longitudinal Monitoring Survey, RLMSHSE, for the Russian education system. The case of the Southern Federal University is suggested to test the method of cross-national comparisons authored by Alfonso SousaPoza and Andres Sousa-Poza, focused on the level of work satisfaction relying on workrole inputs and work-role outputs. This methodology allows the authors to build a comparative matrix of satisfaction with factors that ensure the work process and factors that assess satisfaction with work results. This matrix can serve as a theoretical basis for defining benchmarks for policies related to the academic personnel management through motivation.
Citation: Mikhalkina, E. V., Skachkova, L. S., Dyuzhikov, S. A. (2020). Job satisfaction in the academic sphere. Terra Economicus, 18(3), 160–181. DOI: 10.18522/2073-6606-2020-183-160-181

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Constitutional political economy by Hayek: The conflict between democracy and liberalism


TERRA ECONOMICUS, , Vol. 18 (no. 3),

This paper analyzes the constitutional political economy of Friedrich von Hayek in the context of the well-known contradiction between democracy and liberalism. It is alleged that Hayek at about the same time as researchers from the school of public choice developed the concept of failures of a democratic state, which remains relevant today. Among such failures are subordination to group interests, excessive redistributive activity (growth of the welfare state), legal positivism as a consequence of the unlimited will of the majority. A draft constitutional structure developed by Hayek is considered, aimed at reducing the influence of electoral democracy in order to preserve a free society. The differences in the approaches of Hayek and theorists of public choice to constitutional construction are especially emphasized. For the former, the constitution (despite accusations of constructivism due to the proposed ideal of the constitutional structure) is still a product of evolution. For the latter, it is the result of rational choice under the famous veil of ignorance. The paper shows that Hayek was one of the first to pay attention to formal and informal institutions (moral principles) and showed the crucial role of the latter to characterize the conflict between democracy and liberalism. At the same time, the role of Hayek is noted as one of the first researchers who drew attention to such important aspects of the institutional theory as a competition of institutions and significant restrictions on the international import of institutions due to the impossibility of constructing informal institutions. The final conclusion of the work is that electoral democracy does not destroy constitutional freedoms only if the latter are firmly rooted in public consciousness. Otherwise, their formal proclamation does not mean their guaranteed existence.
Citation: Zaostrovtsev, A. (2020). Constitutional political economy by Hayek: The conflict between democracy and liberalism. Terra Economicus, 18(3), 18–29. DOI: 10.18522/20736606-2020-18-3-18-29

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Evolution of heterodox mesoeconomics


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The established «micro-macro» dichotomy in economics can be considered as a methodological trap today. The established «micro-macro» dichotomy in economics can be considered as such a trap today. It does not allow for exploring increasingly complex relationships in the modern economy and new emerging structures. Therefore a new theoretical space – «meso» – was required. This paper shows how, outside the orthodox mainstream, a new area of economic theory – heterodox mesoeconomics – has shaped. Based on more realistic methodological prerequisites, compared with those accepted in mainstream micro- and macroeconomics, it offers new research programmes and explanatory schemes of what is happening in economic life. The unifying principles of heterodox mesoeconomics include several methodological postulates. First, this is a departure from microeconomic foundations and principles of additive aggregation. Mesoeconomics considers the economy as a complex multi-level system in which mesostructures arise as a result of coevolution processes. Second, mesoeconomics focuses not only (and not primarily) on the price coordination mechanism with a predominance of negative feedback, but rather on the effects of positive feedbacks. Therefore, heterodox mesoeconomists investigate more complex spontaneously emerging coordination mechanisms, as well as spatial, functional and temporal mesoeconomic structures. Third, heterodox mesoeconomists focus not only on competition as the basis of economic interactions but also on cooperation, redistribution, joint activities, etc. The paper summarizes experience from the heterodox mesoeconomic research since the 1970s to the present.
Citation: Kirdina-Chandler, S., Maevsky, V. (2020). Evolution of heterodox mesoeconomics. Terra Economicus, 18(3), 30–52. DOI: 10.18522/2073-6606-2020-18-3-30-52
Acknowledgment: This paper is an expanded Russian version of the article, Kirdina-Chandler, S., Maevsky, V. (2020). Mesoeconomics from the heterodox perspective and its structure. Journal of Institutional Studies, 12(2), 6–24. The publisher’s permission for this publication is obtained.

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Effects of digital transformation of the economy and quality of life in Russia


TERRA ECONOMICUS, , Vol. 18 (no. 3),

This paper deals with the process of digital transformation, its effects and their distribution in the regional aspect. The research is an attempt to define the influence of digital factors on the main indicator of people’s wealth (gross domestic product per capita) considering regional and temporal differences during the period from 2015 to 2018 in the regions of the Russian Federation. The digital component of people’s quality of life is defined based on the Russian regional index (digital index). To estimate the effects, panel data models were used to show the relationships between the parameters in space and time simultaneously for the period from 2015 to 2018. The econometric models surved as a tool for evaluating: 1) influence of the digital index on the real GRP per capita; 2) its influence on the real GRP per capita considering temporal and regional differences. To specify regional differences, digital inequality in the districts and subjects of the Russian Federation was considered. The research findings showed that the Russian regional index of digital component of people’s quality of life grew by 0.051 during the years 2015–2018. Regional factors strongly affect the impact of this index on real GRP per capita. The number of regions with negative corrected elasticity ratios (adjusted appropriately for differences in regions and period) decreased by 5. Variation ratio of the digital index decreased by 10.2%. Compared to the rest of the Russian federal districts, Ural and Northern Caucasus ones demonstrate higher digital inequality. In general, the positive impact of digitalization is identified for economically developed and rich regions of Russia, while for less developed regions, this impact could entail digital risks.
Citation: Litvintseva, G. P., Karelin, I. N. (2020). Effects of digital transformation of the economy and quality of life in Russia. Terra Economicus, 18(3), 53–71. DOI: 10.18522/20736606-2020-18-3-53-71
Acknowledgment: The study was funded by the Russian Foundation for Basic Research (RFBR) within the framework of the research project № 19-010-00195\20.

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Value of political resource in the Russian economy: Past and present


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The study relies on the institutional economic history framework. We focus on the value of exclusive political resource leading to the building of hierarchically organized conglomerate of enclaves of wealth in the Russian economy. Various milestones of Russian history are emphasized. The functioning and evolution of enclaves of wealth are characterized through a complicated interweaving of added value chains and chains of value redistribution. The enclave nature of the Russian economy means that there is sustainable fragmentation of domestic economic markets. Integration of economy and society is ensured by the centralized market of power. Historically caused process of the building and functioning of enclaves of wealth in the modern Russian economy is the subject of special analysis. Their types are highlighted, and their impact on the development of the rest of the economy is characterized. The modern Russian economy is based on the export-resource enclaves of wealth. Industrial enclaves of wealth, which have been built in a number of Russian regions (for instance, Kaluga region), are the «inner maquiladoras» serving high-margin markets in the megalopolises and large cities. Innovation and scientific-educational enclaves of wealth have emerged as the result of projects of innovation development of the Russian economy and the transformation of the scientific-educational sector. These are positioned as the most important directions for building the innovation economy in Russia. However, the authors suggest that they are «pure recipients» receiving economic resources from the rest of the economy.
Citation: Levin, S. N., Sablin, K. S. (2020). Value of political resource in the Russian economy: Past and present. Terra Economicus, 18(3), 72–86. DOI: 10.18522/2073-66062020-18-3-72-86
Acknowledgment: The article is supported by the Grant of RFBR № 19-010-00244.

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«Economics and Law of Primitive Society»: An inquiry into the epistolary heritage of Nikolaj Sieber


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The article deals with the epistolary heritage of Nikolaj Ivanovich Sieber (1844–1888), who was a representative of the classical political economy and a follower of Ricardo and Marx. Since Sieberʼs personal archive has not survived, the legacy is presented in twentytwo letters, which he addressed mainly from Europe to Pyotr Lavrov, Rosalia Idelson, Pyotr Kropotkin, Pavel Axelrod, and to his closest friends and colleagues – Alexander Chuprov and Ivan Yanzhul. Collected from the archives of St. Petersburg, Moscow and Amsterdam, Sieberʼs letters shed light on the circle of his correspondents, the nature of relations with publishers and editors, and clarify a number of issues of his theoretical legacy. In the context of the debate about the nature of Sieberʼs Marxism, the letters reinforce the position that he was a consistent theoretical Marxist and adherent of classical political economy. The details connected with the publication of the book «Essays on the Primitive Economic Culture» are extremely important. For researchers, it remained not entirely clear why Sieber never introduces the concept of «economic culture» and practically did not use it in his work. Correspondence with Yanzhul made it clear that the author proposed a different title – «Economics and Law of Primitive Society». This title clearly corresponds to the logic of the book, since it focuses primarily on the comparison of two spheres of the evolution of primitive, pre-state society strictly interconnected: economic institutions and legal relations. In general, the letters of Sieber indirectly confirmed the thesis that he was a consistent Marxist before the appearance of Marxism and an economist-anthropologist before the advent of economic anthropology.
Citation: Raskov, D. E. (2020). «Economics and Law of Primitive Society»: An inquiry into the epistolary heritage of Nikolaj Sieber. Terra Economicus, 18(3), 87–107. DOI: 10.18522/2073-6606-2020-18-3-87-107
Acknowledgment: The article was written with the support of an internal grant from St. Petersburg State University, «Marxism before Marxism: the socio-economic and epistolary heritage of Nikolaj Sieber» (ID 53363115).

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Exception and Rule. Political and economic arguments of N.I. Sieber against Marginalism before its triumph


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The article proposes an analysis of the critical arguments expressed by N.I. Sieber regarding the concept of value, which is accepted by economists of the subjective school. Sieber made these critical arguments in his dissertation, published in 1871. However, they remain valid for Marginalism, the principles of which basically continue the line of the subjective school (Leon Walras was among the authors cited by Sieber). In the analysis of Sieberʼs position, not only logic was taken into account, but also the rhetoric of his argumentation, which makes it possible to identify a broader context within which this position remains relevant. Sieber criticizes the views of economists of the subjective school from the standpoint of the classical school. The latter, as the basis for the constitution of value, considers the average, typical state of economic life, while the former is based on the consideration of an isolated, exceptional moment – that is, the moment when a radical change in the parameters of economic activity takes place. To describe this «exceptional moment», Sieber uses a number of metaphorical images, such as state of siege, threats to life and health, the situation of immigrants, etc. Sieberʼs use of these images allows us to compare his arguments with a number of the most important positions of political theorists of the 20th century (K. Schmitt, W. Benjamin, M. Foucault, G. Agamben) associated with such concepts as «sovereignty», «state of exception», «bare life». As a result, Sieberʼs perspective can be viewed as an anticipation of the modern criticism of neoliberalism – an ideology in which the marginalist understanding of the economy is used as an essential resource for the formation of a biopolitical paradigm for managing peopleʼs lives.
Citation: Pogrebnyak, A. A. (2020). Exception and Rule. Political and economic arguments of N.I. Sieber against Marginalism before its triumph. Terra Economicus, 18(3), 108–124. DOI: 10.18522/2073-6606-2020-18-3-108-124
Acknowledgment: The article was written with the support of an internal grant from St. Petersburg State University, «Marxism before Marxism: the socio-economic and epistolary heritage of Nikolaj Sieber» (ID 53363115).

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Ricardian theory of rent as interpreted by Sieber


TERRA ECONOMICUS, , Vol. 18 (no. 3),

The article deals with the Ricardian theory of rent as interpreted by one of the first Russian Marxists, Nikolai Sieber. Sieber made great efforts to popularize Marxʼs ideas in Russia. He believed it was his mission to make complex theoretical constructions of Marxism simpler and more understandable for the majority of readers. Sieber began his way to Marxism with the study and translation of the writings on classical political economy by D. Ricardo. Furthermore, Sieber’s texts focus on a wide range of opinions on land rent presented in the works of Russian and foreign economists of the XIX–XX centuries. This article also pays considerable attention to the political aspects of rent, which are perhaps crucial to the issue of rent. This is due to the fact that rent has been and remains an important tool for the redistribution of national income and, therefore, is an element of the political structure. Ricardian theory of rent came into being during the debate over high bread duties in England and was, in fact, an instrument of struggle against landowners who received rental super profits because of high grain prices. Subsequently, this theory was considered as a tool of struggle against the industrial bourgeoisie, which caused its fierce criticism from the apologists of the bourgeoisie.
Citation: Dubyansky, A. N. (2020). Ricardian theory of rent as interpreted by Sieber. Terra Economicus, 18(3), 125–139. DOI: 10.18522/2073-6606-2020-18-3-125-139
Acknowledgment: The article was supported by the internal grant of St. Petersburg State University «Marxism before Marxism: socio-economic and epistolary legacy of N.I. Sieber» (ID 53363115).

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Economic impacts of innovations in tourism marketing


TERRA ECONOMICUS, , Vol. 18 (no. 3),

Our paper tackles the novel issues of the economic impacts and innovations in tourism marketing in the 21st century. The paper examines the economic impact of tourism and its influence on the economy and the tourism industry in general from the angle of innovations in the tourism marketing and the new challenges for the tourism industry brought about by the COVID-19 pandemic that disrupted international tourism and caused major economic losses to the industry. We analyse the changes that the coronavirus pandemic made to the tourism industry and focus on the novel trends in tourism marketing that embeds the new informational technologies such as virtual reality (VR), augmented reality (AR), online Zoom tours, and other novelties that emerged after the lockdowns and social distancing imposed in the first half of 2020 in order to prevent the spread of the coronavirus infection. Our results show that tourism marketing in the 21st century should be based on sustainable management and provide the right answers to questions about the impacts of tourism on the economy without sacrificing positive economic growth. We also show that information technologies might offer viable alternatives to massive international over-tourism and package tours ensuring both the safety of travel and deeper immersion into the travel experience before, during, and after the trip. Our outcomes might be useful for tourism scholars, policymakers, as well as stakeholders specializing in international tourism marketing.
Citation: Streimikiene, D., Korneeva, E. (2020). Economic impacts of innovations in tourism marketing. Terra Economicus, 18(3), 182–193. DOI: 10.18522/2073-66062020-18-3-182-193

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