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TERRA ECONOMICUS

Political connections of top entrepreneurs: World experience and specificity of Russia


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The study applies institutional approach to economic history. The world experience of political connections using by top entrepreneurs in different institutional environments is overviewed. Political connections are a resource that provides competitive advantages in economic markets. These connections also carry certain risks for their holders. We consider countries with developed as well as emerging markets. There are two main modes of political connections using, which are determined with the institutional parameters of political and economic systems. Top entrepreneurs receive regulatory advantages through organized lobbying of their private interests in developed countries. These advantages arise with the adoption of laws those set preferences. Lobbying is proactive, when top entrepreneurs impact policy-makers to “push” beneficial legal acts. Reactive lobbying means that top entrepreneurs act against adopted laws that worsen their competitive advantages. Relationships between top entrepreneurs and political actors are predominantly personalized in the emerging economies. As a result privileged regimes are arising. The hybrid institutional characteristics of emerging markets are manifested in the absence of functional division between market, political and administrative transactions, and the dual role of both political and economic actors. Our special research focus is on the experience of Russia regarding the use of political connections. The long stage of evolution within the Soviet type centrally controlled economy significantly influenced the nature of the relationship between economic and political actors.
Citation: Levin S.N., Sablin K.S., Nesterov A.Yu. (2022). Political connections of top entrepreneurs: World experience and specificity of Russia. Terra Economicus 20(4), 6–22 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-6-22
Acknowledgment: The article is supported by Russian Science Foundation grant № 22-28-00717 “Political connections of top entrepreneurs and enclaves of wealth building in the resource sector of the Russian economy”

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Institutional change and Russian innovation system challenges


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The Russian innovation system (RIS) is currently facing internal and external challenges that require its institutional structure to change significantly. Social contexts and rules that innovation system actors (business, academic community, state) find relevant must be taken into account in the transformation process. Therefore, in this article the RIS challenges are considered through an analysis of the functions and dysfunctions of its institutions. The article provides qualitative (based on narratives contained in in-depth interviews with the RIS academic field representatives) and quantitative (based on the Global Innovation Index data) analysis of these functions and dysfunctions. The study reveals the following RIS dysfunctions: low quality of formal institutions and lack of consistency in legal regulation, excessive control over the innovators’ activities; selectivity and inconsistency of the state innovation policy(federal and regional); underdevelopment of mechanisms for formation of science and business cooperation; lack of production facilities and capacities, as well as physical infrastructure insufficiency for scaling innovative production; both state and private underfunding of science and innovative developments; the disruption of the mechanisms of reproduction of personnel potential for innovation. It has been established that with the quantitative approach it is possible to identify some RIS dysfunctions. Under the current conditions, dysfunctions overcoming is associated with strengthening the state strategic role while maintaining, developing and stimulating strategic entrepreneurial innovations.
Citation: Volchik V., Maslyukova E. (2022). Institutional change and Russian innovation system challenges. Terra Economicus20(4), 23–44 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-23-44
Acknowledgment: This work was supported by the grant of Russian Science Foundation № 21-18-00562, https://rscf. ru/en/project/21-18-00562/ “Developing the national innovation system in Russia in the context of narrative economics” at the Southern Federal University

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Typology of digital platforms in shared economy


TERRA ECONOMICUS, , Vol. 20 (no. 4),

Our purpose is to develop a typology of digital platforms of the shared economy relying on the literature review. The algorithm of this study includes criticism of previous studies, formulation of the research problem, development of a typology of digital platforms of the shared economy based on existing research and considering the authorsʼelaborations on this topic, as well as the discussion on the advantages and disadvantages of using digital platforms in shared economy. The modern method of bibliography analysis and literature review – PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analysis) is applied. It is shown that different configurations of the shared economy cause the problem of the typology of their digital platforms, considering various levels of interaction between producers and consumers. The digital platforms of shared economy were typified depending on resources (information, material, financial, labor) and levels of interaction between agents involved (authorities, business structures, consumers). We show that digital platforms adopt special management tools, different from those applied in markets, hierarchies, or networks. Therefore, digital platforms create a unique set of challenges for regulatory agencies, employees, and their competitors in the traditional economy. We argue that the typology of digital platforms of the shared economy enables various business models of peer-to-peer interactions and provides an instrument for effective strategic planning in digital platform management.
Citation: Popov E.V., Veretennikova A.Yu. (2022). Typology of digital platforms in shared economy. Terra Economicus 20(4), 45–58 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-45-58
Acknowledgment: The research is supported by the Russian Science Foundation, project № 22-28-01830 “Digital platforms of the shared economy as a tool for activating innovative projects in the social sphere”.

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Common experience, different strategies: János Kornai and Chinese reforms


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The paper examines the history of perception in the PRC of the economic ideas of János Kornai in the context of the Chinese approach to the mastering of foreign theories and the national reform policies. From the 1980s until the end of his life, Kornai maintained contacts with the Chinese economic community and closely followed the progress of transformations in the PRC. Based on the study of the practical experience of the functioning of the socialist system, the “Economics of Shortage” caused a wide resonance in China and contributed to the assimilation by the reformers of the concepts of “soft budget constraints”, investment hunger, paternalism, which became part of the language of Chinese economics. With the help of the “supermarket metaphor”, Kornai warned of the threat of chaos in the case of selective piecemeal reform of the socialist economy. However, Kornai’s strategy of transformation that combines market reforms with political liberalization was rejected by Chinese experts. At the end of his life, Kornai called for the containment of China and regretted his role of adviser to Chinese reformers. Communication with Kornai and mastering his ideas helped the Chinese scholarly community to deepen their understanding of the variety of ways to reform the centrally planned economy and draw an independent conclusion about the unacceptability of radical recipes for the transition to a market economy.
Citation: Borokh O.N. (2022). Common experience, different strategies: János Kornai and Chinese reforms. Terra Economicus 20(4), 59–74 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-59-74
Acknowledgment: The paper is based on the presentation at the XXIII Yasin (April) International Academic Conference on Economic and Social Development (April 2022). The author would like to thank the participants of Conference discussion for their comments. The author is grateful to the anonymous reviewers of the journal for valuable suggestions.

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Banking sector in China during the Nanjing decade (1928–1937) as an example of synthesis in economic policy. The role of informal ties


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The article analyzes the emergence of the Chinese banking system during the Nanjing Decade (1928–1937). Before the Nanjing Decade Chinese banking consisted of unrelated objects. Foreign banks operated in the territory controlled by the Western powers, traditional financial institutions acted in the regions, a full-fledged independent banking system operated in Shanghai, the communists issued their own currency. The author studies the development of banking system of the Republic of China and its further interaction with the real sector, considering the role of formal and informal communication channels. The role of informal practices during the implementation of the state economic policy is shown. In view of the law enforcement practice instability in regulating the interaction between the financial and real sectors of the economy, the Kuomintang Government attempted to create a new modern banking system following the Western model combining it with the institution of informal ties “guanxi”. Such a synthesis was not planned, it appeared during the reform process. People close to the government, or the party were introducing into the directorates of banks. They could hold managerial positions in several banks at the same time, implementing the state industrial policy. Thus, it was possible not only to stabilize the country’s financial sector, but to ensure significant progress in industry and commerce.
Citation: Kruglova M.S. (2022). Banking sector in China during the Nanjing decade (1928–1937) as an example of synthesis in economic policy. The role of informal ties. Terra Economicus 20(4), 75–86 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-75-86

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Socio-economic factors behind inequality in the access to education amongst people with disabilities: An econometric analysis


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The article examines the socio-economic factors of inequality in access to the education system among children and youth with disabilities. The research question relates to the discrimination that accompanies children and youth with disabilities aged 3 to 24 years, which corresponds to the official age of a person to study, from the preprimary to higher education. We found that persons with disabilities are statistically significantly less likely to be included in the education, and these differences are especially stark at pre-primary school and after 15 years of age, which normatively corresponds to the end of the lower secondary school. An econometric analysis revealed that the educational attendance of people with disabilities is consistently associated with such factors as poverty, place of residence, and the type of disability. The article ends with recommendations for social policy on the inclusion of persons with disabilities in the educational process
Citation: Avanesian G., Borovskaya M., Astoyants M., Tarasenko L. (2022). Socio-economic factors behind inequality in the access to education amongst people with disabilities: An econometric analysis. Terra Economicus 20(4), 87–98 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-87-98
Acknowledgment: The research is supported by Southern Federal University, 2022, project № ВнГр-07/2020-02-АП.

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Socio-cultural values of Russian city dwellers: Modernisation vs traditionalism


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The article analyzes socio-cultural values of the Russians related to the modernization of society. I rely on the data provided by nationwide survey conducted in 2021 by the Institute of Sociology RAS. The analysis shows that the initial stage of socio-cultural modernization in Russia has already been passed: the values of the rural population have undergone a significant change towards greater modernization. According to the theories of urbanization and modernization, the urban population in Russia is somewhat more committed to the values of modern society than the rural population, although the differences are not so great. Residents of both types of settlements show ambivalence in the value structure: some values are closer to the norms of modern society, while others have more traditional connotations. Thus, the orientation on freedom as opposed to material wellbeing, initiative, preference of equal opportunities, etc. are combined with conformism, inclination towards anarchism and a certain selfishness. Some differences in the prevalence of these values depending on the type of urban settlement were identified. The most advanced in terms of modernization were residents of cities with a population of between 500,000 and 1 million people. Unexpectedly, the values of the population of the two capitals, Moscow and St.Petersburg, were not as consistent with the norms of modern society, as it might have been expected. However, if we proceed from the theory of “multiple modernities”, then the described features can be interpreted as a search for a national path of modernization. Overall conclusion is that Russian sociocultural modernization in terms of its differentiation by settlements at the present stage definitely demonstrates a deviation from “normative” patterns. However, it is still difficult to judge whether the identified anomalies are one of the failures of domestic modernization or a manifestation of its specificity. Research findings are highly significant for understanding the human potential of the economy of modern Russia.
Citation: Latova N.V. (2022). Socio-cultural values of Russian city dwellers: Modernisation vs traditionalism. Terra Economicus 20(4), 99–114 (in Russian). DOI: 10.18522/2073-6606-2022-20- 4-99-114

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Leading indicators of currency crises: Discriminant function analysis vs Early warning signal approach


TERRA ECONOMICUS, , Vol. 20 (no. 4),

Money markets play a key role in macroeconomic stability. This study aims to extend discriminant function analysis and apply early warning models to detect the signalling indicators of the currency crises in developing countries for the period between 1987 and 2007. The obtained model based on the data on India, Indonesia, South Korea, Malaysia, Mexico, Philippines, Russia, Turkey and Thailand then tested in another set of six developing countries including Argentina, Brazil, Chile, Colombia, Uruguay and Venezuela. The theoretical premise of the paper is based on the three-generation currency crisis models. The empirical findings indicate that current account balance / reserves, M2 growth (annual %), domestic credit provided by banking sector (%of GDP), bank liquid reserves to bank assets ratio (%), and GDP annual growth are the leading indicators of currency crises. The model provided by DFA has around 60% accuracy in foreseeing the status of crisis in the test data set. The results suggest that discriminant function analysis would be a useful tool to predict the “signal”.
Citation: Kahraman S., Sariyer G. (2022). Leading indicators of currency crises: Discriminant function analysis vs Early warning signal approach. Terra Economicus 20(4), 115–128. DOI: 10.18522/2073-6606-2022-20-4-115-128

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Second-tier cities in the state regulation of spatial development


TERRA ECONOMICUS, , Vol. 20 (no. 4),

One of the negative trends in the spatial development of Russia is the concentration of population and economic activity in the central cities of the country and regions. The development of second-tier cities is considered as one of the ways to reduce such concentration, as foreign experience suggests. Russia’s Strategy of Spatial Development proposes the hierarchy of promising urban centers of economic growth. The article highlights the significance of second-tier cities located in the regions of the Russian Federation relying on the differentiation of regions within the system of second-tier cities. The author shows that second-tier cities are lagging behind the capital ones in terms of taxable income per capita. Increased dependence on social payments for the population contribute significantly to reducing the differences in living standards between the capital and second-tier cities. Attention is drawn to the emerging trend of dynamic development of second-tier cities, which may increase due to the growing importance of industrial development in the country. The paper also demonstrates that the reliance on second-tier cities is clearly articulated neither at federal nor at regional levels. However, the federal regulations of spatial development pay some attention to second-tier cities, whereas at Russian regions approaches to the selection of “growth points” are ambiguous (which is illustrated by the example of industrial special economic zones).
Citation: Kuznetsova O.V. (2022). Second-tier cities in the state regulation of spatial development. Terra Economicus 20(4), 129–140 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-129-140
Acknowledgment: The article was prepared with the financial support of the Plekhanov Russian University of Economics (topic “Formation of an analytical system for monitoring the socio-economic development of municipalities of the Russian Federation”).

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