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Economic Sanctions Against Russia: Short and Medium Term Consequences for the Oil and Gas Industry

Economic Sanctions Against Russia: Short and Medium Term Consequences for the Oil and Gas Industry

Journal of Economic Regulation, , Vol. 8 (no. 3),

The growth in production and exports of oil and gas from the United States and other OECD countries led to pressure on energy prices, and posed the problem of redistribution of the structure of oil and gas market shares. The aggravation of competition contributed to the selection of measures to modernize the industry in Russia as the main measures of economic sanctions, as well as restrictions on the supply of Russian oil and gas to Europe, which jeopardized the implementation of the South Stream and North Stream-2 projects. The oil and gas industry continues to play a significant role in the formation of the revenue base of the federal budget of the Russian Federation. As a result of the imposition of sanctions, the export of Western equipment to Russia was banned, it could be a serious blow to the industry, which potential could be fully realized in the next 3–5 years. Oil and gas companies are most dependent on the pumping equipment (import share is 50%), catalysts (80% share of imports), applied software (the share of imports is more than 80%). Currently, Russian companies purchase equipment in China and South Korea, but the quality is much lower than the US, and the equipment often fails, so it is associated with the high costs of repairs. The import substitution should revive the domestic production of oil and gas equipment, but how this policy is implemented is difficult to predict, as enterprises have to overcome a significant technological gap and lag behind foreign developments. Russia managed to survive the short-term period of economic sanctions with significant, but not extremely large losses. Much more acute consequences can affect in the medium term, unless vigorous steps are taken to import substitution and modernization of oil and gas production and processing.

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Institutional Alternatives of Food Embargo in the Conditions of a New Wave of Anti-Russian Sanctions (Case of Russian’s Meat Industry)

Institutional Alternatives of Food Embargo in the Conditions of a New Wave of Anti-Russian Sanctions (Case of Russian’s Meat Industry)

Journal of Economic Regulation, , Vol. 8 (no. 3),

The article examines the impact of anti-Russian sanctions and response measures on the agro-production in terms of identifying the benefits and costs of imposing a food embargo. It is emphasized that, in the context of the policy of "smart sanctions", the goal of retaliatory measures should be to create conditions for maximizing public welfare. The reality and analysis and calculations carried out, however, show the disaster of the embargo in relation to the consumption of meat and meat processing products for the "ordinary consumer". Based on the dynamics of the caloric index, the socioeconomic consequences of the one-sidedness of autarkic measures are shown. The conditions for ensuring food security under the conditions of the food embargo are schematically presented and the consequences of the existing embargo policy on the basis of statistical data for the consumption of meat products are calculated. It is shown that the growth in prices played a key role in the dynamics of the cost volume, and structural changes were associated with the further growth of large agricultural organizations in the structure of the industry. In conclusion, recommendations are offered in the field of institutional design for the improvement of economic policy.

Views: 581

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The Evolution of the Categorical Apparatus and the Main Stages of Development of the Industry in Russia

The Evolution of the Categorical Apparatus and the Main Stages of Development of the Industry in Russia

Journal of Economic Regulation, , Vol. 8 (no. 3),

In modern conditions the basis for the efficient functioning of the economic system as a whole becomes sustainable industry development as the leading link of the entire economic complex. This article presents a retrospective analysis of the development of theoretical approaches to the term industry. The evolution of the term defined the stages of development of the industry. The statistical analysis of the development of industry of the Russian Federation at the present stage is revealed that the complicated industrial environment of geopolitical and economic uncertainty. The relative stabilization of the national currency reduces the competitive advantages and export oriented industries. Ineffective industrial policy is manifested in the scatter of production, and not a coordinated system of comprehensive measures to change the general conditions. Negative trends in the development of industry associated with high logistics costs, low throughput of the railway network and ports to a stagnation of domestic demand. The impact this process has had the technological backwardness of individual plants, the introduction of sanctions, limiting access of the enterprises of the country to certain foreign technology and capital, high material and energy intensity of production, low productivity, lack of financial resources (including for R &d), the dependence on imported components. The proposal to enhance economic development of the country. The optimum development potential of the industry is an efficient investment, especially in machinery and instrument engineering, chemical industry, metallurgy and so on it is in turn possible in the formation and functioning of a civilized institutional and legal framework of business in the Russian Federation.

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Institutional Framework for Economic Re-Industrialization in the Mechanism of Industrial Policy Realization

Institutional Framework for Economic Re-Industrialization in the Mechanism of Industrial Policy Realization

Journal of Economic Regulation, , Vol. 8 (no. 3),

An attempt has been made to substantiate the institutional structure aimed at the effective progressive development of the production sphere as the basis of the national economy oriented towards the qualitative development of social capital, which is the key goal of transforming the modern Russian economy. The achievement of that goal is possible through the implementation of reindustrialization strategy based on the conceptual platform of regional institutionalism, the determinant of which is also the possibility of implementing the potential of the regions as a priority source of development and reproduction as a result of building sustainable local relationships in the regional economy. Institutional design of reindustrialization and forcing the industrial development of the Russian economy are becoming particularly relevant in the context of the need to connect Russia to the concept of "Industry 4.0" and the fourth industrial revolution.

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Public Control Mechnisms: Efficiency Improvement Directions

Public Control Mechnisms: Efficiency Improvement Directions

Journal of Economic Regulation, , Vol. 8 (no. 3),

The article substantiates increasing importance of civil society in the discussions about vital problems of its development, as well as the resolution of these problems, which required its formal institutionalization in legislation system. The subjects of public control in developed countries have been identified on the basis of a comparative analysis, the high degree of electrification of the state as a whole and of the system of public procurement in particular has been identified as its necessary material precondition, and its formally institutionalized entities in Russian Federation have been monitored. Statistical data, which characterizes the process of Russian public sector expansion and determines the scale of the established system of public procurement, has been presented. The article identifies features and effects (including negative ones) of escalating transparency of corporate procurement, and formulates the problem of defining the optimal level of informational transparency of procurement of public sector corporate organizations with regard to the competitors, including foreign ones. On this basis, the effectiveness of participation of institutionalized subjects of civil society in various forms of public interactions with authorities, primarily in the field of public procurement, are categorically characterized. The mechanism of how to increase this effectiveness is structured, and corresponding courses of action are offered. The problematic areas of public control mechanisms are determined; the ways of their localization are tested. The sound conclusion is made, saying that revitalization of control over procurement procedures on the part of civil society, on the one hand, contributes into prevention of loss of budget resources that are limited under going-out-of-crisis conditions, while on the other hand it assures consolidation of civil society in the domain of State control, as well as in the resolution of social and political problems of social development on the whole.

Views: 610

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The Economy of Experience for the Promotion of Hotel Products

The Economy of Experience for the Promotion of Hotel Products

Journal of Economic Regulation, , Vol. 8 (no. 3),

In this work, an attempt is made to use the terminology and tools of the economy of experience as applied to the hotel product. The analysis of the concept of "economy of experience" is analyzed from the point of view of changing human preferences and the appearance of the so-called "market ofexperience". The postulate is advanced that in the modern economy the sale of any goods and services corresponds with the sale of the corresponding impressions from using them, therefore the most successful business projects are aimed not only at satisfying physiological needs, impressions. The object of exchange is not only goods and services, but also impressions, respectively, the emergence of a new exchange object calls for the development of technologies that make this object more attractive to the direct consumer and show the manufacturer what benefits it can receive from the production and sale of impressions. An attempt has been made to transfer the tools of the economy of impressions to the area of promotion of the hotel product. The hotel economy is a dynamically developing branch of the economy, its development is determined by global economic processes, cultural, historical, sport interactions both within the country and between countries. Along with tourism, the hotel industry is an integral part of the creative economy and the economy of experience, which is based on the desires and needs of a person in gaining new experience. Practice shows that the use of tools in the promotion of the hotel product that affect the receipt of new impressions, feelings and experiences creates a basis for attracting regular customers, on which 60% of the income of the hotel company depends.

Views: 588

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Problems of Employment of Graduates of Universities and Attracting RUSSIAN and Foreign Highly Qualified Specialists

Problems of Employment of Graduates of Universities and Attracting RUSSIAN and Foreign Highly Qualified Specialists

Journal of Economic Regulation, , Vol. 8 (no. 3),

The aim of this article is to analyze the current measures undertaken by the Government of Russian Federation to create favorable conditions for graduates and university professors. The article considers the problems in the higher education system of Russian Federation such as decline in the prestige of teaching and research activities, the problems of unemployment and wages of graduates and University professors, methods of evaluation of quality of University teachers activity, the conditions for attracting highly qualified foreign specialists, as well as the consequences of the outflow abroad of domestic highly qualified specialists. Unlike European Union countries, Russian higher education is more emphasis on theoretical aspects and not practical ones. Moreover, students are not prepared for needed future specialty, since the Soviet Union tended to the training of so-called generalists. As a result, nowadays graduates of higher educational institutions face some difficulties in the process of further employment after university graduation. The author proposes a number of measures to improve collaboration between employers and graduates of higher educational institutions, such as creation of short-term practice courses for senior students, organization of the employer's own training areas at universities, creation of special courses to prepare graduates for further employment. The article also gives examples of successful foreign practices, in particular to attract foreign highly skilled professionals and retaining our own talent specialists, which could be adopted in our country: the introduction of "tax holidays" for the high status foreign scientists, partial reimbursement of costs in the process of relocation of expatriate scientists, the payment of special scholarships for talented young scientists, implementation of the flexible quota system for entry of scarce professionals with the aim of temporary work etc.

Views: 980

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Institutionalization of Human Resource Management Practice in Russia

Institutionalization of Human Resource Management Practice in Russia

Journal of Economic Regulation, , Vol. 8 (no. 3),

This article touches upon the imperatives of forming HR- management practice in modern Russia. On the basis of the institutional theory and works by D. Nort, R. Scott, R. Coase, G. Buchanan, O. Williamson, P. Tolbert, and L. Zucker, we distinguished three main stages of introduction foreign HR- management models and technologies into the managing of local companies: Preinstitutional stage, characterized by the limited number of companies using this instrument; halfinstitutional stage when all the implanted approaches of HR-management become normative; complete institutionalization when this or that HR- management instrument is standard and legitimate. On the basis of research, conducted in 39 companies in SFD, the article gives the characteristics of HR-management instruments and technologies in terms of their institutionalization. In the article also showed the barriers which prevent fast and effective introduction of foreign management technologies into the HR-management practice in Russia. We pointed out some key instruments of Russian HR-management model and brought out possible directions in transformation of HR-management practice in our country.

Views: 659

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Adaptive Strategies in the Russian Vocational Education and Training System: Institutional Barriers and Rent-Seeking Behavior

Adaptive Strategies in the Russian Vocational Education and Training System: Institutional Barriers and Rent-Seeking Behavior

Journal of Economic Regulation, , Vol. 8 (no. 3),

The process of institutional change is going very rapidly in the Russian vocational education and training (VET) system. If implemented reforms are inconsistent with present working rules and institutions in the field, it causes inefficiencies of the VET system and may result in institutional traps. The actors involved in the VET system are working in an increasingly demanding environment. They have to adapt their behaviors to complicated and constantly changing rules. Seeking to meet the requirements of students and employers, who operate under resource constraints, educational organizations undertake curriculum reductions to minimize costs. These measures usually result in low education outcomes and poor quality of education. In an attempt to identify adaptive behavioral patterns of actors involved in the educational process, we have conducted and analyzed 50 in-depth interviews with lecturers, managers and students within the educational organizations of Rostov region that offer VET programs. Our research aims to contribute to the understanding of the mechanisms of adaptation among academic staff members and VET students using the concepts of institutional economics and qualitative research methods.

Views: 607

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Constructivism in Teaching English for Special Purposes at Tertiary School

Constructivism in Teaching English for Special Purposes at Tertiary School

Journal of Economic Regulation, , Vol. 8 (no. 3),

The article looks at some principles of constructivism philosophy and the ways they are realized in ESP teaching at tertiary school. The purpose of this article is to describe constructivist teaching approach in enhancing students’ use of appropriate ESP learning strategies. Constructivism is a theory that emphasizes the active role of students in building understanding and making sense of the information. The constructivist teaching is learner-centered where students are actively involved in knowledge construction rather than passive listeners. Students construct knowledge by transforming, organizing, reorganizing previous knowledge through social interaction in construction of knowledge and understanding. The paper is an attempt to examine the principles of constructivist teaching and learning by providing analysis of features of constructivist theory and the organization of a constructivist classroom.

Views: 586

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