Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
344082
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

Impact of behavioural and institutional factor upon territorial social-and-economic development: a case of company town

Impact of behavioural and institutional factor upon territorial social-and-economic development: a case of company town

Journal of Economic Regulation, , Vol. 9 (no. 2),

Efficiency of public regulation of territorial development to a considerable extent depends on the established system of institutions and the specifics of the agents’ economic behavior. Devising and implementing a territorial development strategy is determined by the conduct pursued by the agreement participants. There are three basic concepts of territorial support: maintaining the existing enterprises, supporting investment projects as well as creating or modernizing a territorial infrastructure. Content analysis of a number of documents on strategic development of Siberian territories leads to a conclusion that the federal centre has no intentions to accelerate problem-solving in terms of regional development. The present state and general trends reveals low efficiency of regulations designed to develop company-town economies in the Russian Federation. The modern institutional system of regulation facilitates rent-seeking and opportunism of the holders of administrative barriers. Agreements related to development of company towns can be successfully reached and consummated when taking into account the interests and economic incentives for a broad range of agents, any of whom can deliberately or unwittingly prevent efficient resources allocation at their level. Differences of private interests of economic agents, manifested through the technologies of state support for company-towns, are shown.

Views: 53

Continue Reading

Russian industrial companies and creditors: in the prison of sly figures (on the example of Rosneft)

Russian industrial companies and creditors: in the prison of sly figures (on the example of Rosneft)

Journal of Economic Regulation, , Vol. 9 (no. 2),

The article considers the influence of miscalculation of fixed assets on the Altman model for the Russian economy. It is based on the example of Rosneft in 2016. Rosneft's financial ratios are compared with the financial ratios of British Petroleum in the same period. The magnitude of the Altman model is below the threatened level of bankruptcy, even according to official accounts. The company is unprofitable when revaluing fixed assets. The ratio of its current assets and all assets is unacceptable for the normal operation of the company. It is hypothesized that the company hides part of the proceeds and transfers it to offshore accounts, which are used as collateral for creditors. The Altman coefficient is 0,8 at the level of bankruptcy, when the value of this coefficient for BP is 2,33. The Altman model for developing countries shows better results, the model seems preferable, because Russia is a developing country in most socio-economic indicators. The article analyzes the reasons for the distortion of reporting by Russian companies and how to prevent this. Erroneous economic information affects the Russian economy and individual companies.

Views: 44

Continue Reading

Formation of the institute of insolvency (bankruptcy) in Russia and the evolution of Russian competitive legislation in the XI–XIX century

Formation of the institute of insolvency (bankruptcy) in Russia and the evolution of Russian competitive legislation in the XI–XIX century

Journal of Economic Regulation, , Vol. 9 (no. 2),

The article analyzes the history of formation and development of the institution of insolvency (bankruptcy) in Russia. The author investigates the development of the insolvency law in the pre-revolutionary period from the XI–XIX centuries. In pre-revolutionary Russia, competition law was given sufficient attention. The legislation regulating the institution of insolvency (bankruptcy) in the pre-revolutionary period has passed a long evolution, similar to the development of similar legislation in the countries of Western Europe. However, the first regulatory acts regulating the institution of bankruptcy in Russia appeared much later than in other European countries. Analyzing the legislation of Ancient Russia, the author concludes that there is no detailed regulation of competitive relations in it. And this was due to the fact that the level of economic relations that existed at that time had not yet reached this level. However, as the economy developed in the state, the competition law became more and more relevant. With the development of trade, the cases of bankruptcy of merchants increased more and more, and this became a prerequisite for the creation of a system of insolvency norms, a special competitive charter. The norms regulating the institution of insolvency (bankruptcy) in the Russian pre-revolutionary legislation have undergone a long-term evolution, in many respects similar to the development of legislation in the countries of Western Europe. It was during this period that an insolvency institution appeared in Russia and the development of competition law began. In Russia, as well as in Europe, the development of the institution of insolvency (bankruptcy) was influenced by a foreign element. Since the times of the Russian Truth, having understood the advantages and benefits of trade in general, and international in particular, foreign merchants in Russia have been given various guarantees.

Views: 45

Continue Reading

Institutionalization energy strategies of Russia and the EU on the example of comparative analysis of documents of long-term planning in the field of energy

Institutionalization energy strategies of Russia and the EU on the example of comparative analysis of documents of long-term planning in the field of energy

Journal of Economic Regulation, , Vol. 9 (no. 2),

The Authors attempted to justify the category of "institutionalization" in relation to the energy strategies of Russia and the EU, using a comparative analysis of long-term planning documents in the field of energy. A retrospective analysis of the memical origins of modern European and Russian energy strategies is given. The fact that both strategies operate on the European institutional framework allows us to consider strategic documents from the point of view of the resultant process of institutionalizing energy development. The main strategic document of the Russian Federation in the field of energy is the "Energy Strategy of Russia for the period until 2035", which replaced the "Energy Strategy of Russia for the period until 2030". Currently, the European hydrocarbon market is evolving rather quickly, as is the evolution of its regulatory system. The main documents of the EU defining the energy strategy and regulation of the energy market are the Europe 2020 Strategy, which specifies the energy strategy document Energy 2020. The Strategy for Ensuring Competitive, Sustainable and Safe Energy, Energy 2030 – The Policy Framework Concept in the field of climate change and energy for the period from 2020 to 2030 and "Energy road map 2050". An important event in the formation of the EU energy strategy was the creation of the European Energy Union. Somewhat unusual for the field of the unified energy strategy was the political motivation for the conclusion of the Energy Union.

Views: 65

Continue Reading

Problems of adaptation of Islamic finance to the Russian conditions

Problems of adaptation of Islamic finance to the Russian conditions

Journal of Economic Regulation, , Vol. 9 (no. 2),

After the collapse of the USSR and the separation of all friendly republics, Russia remained a multi-national country. Today, the Russian Federation is ranked 21st in the world in terms of the number of inhabitants – Muslims. In 2017 there are 30 million Muslims and this is only officially and permanently living, but many live without registration, and according to the opinion of Govoruhin – a chairman of the committee of culture, 35–37 million people in Russia adhere to this religion. Consequently, about one-fourth of the population living on the territory of Russia, profess Islam. It can be assumed that 1/3 of this number strictly adhere to religious dogmas, so this contingent does not use traditional banking services because of religious preferences, but they will be able to consider the possibility of saving their savings using Islamic financial instruments. Thus, this topic is especially relevant and promising for the further development of the financial system of the Russian Federation, but the existing strategic and non-strategic barriers in the industry create serious obstacles for further adaptation and development of Islamic finance.

Views: 45

Continue Reading

Evaluation of suppliers costs and institutional barriers of the public procurement system in Russia

Evaluation of suppliers costs and institutional barriers of the public procurement system in Russia

Journal of Economic Regulation, , Vol. 9 (no. 2),

The article considers the problem of estimating the costs of potential suppliers of goods, works and services for government needs from among representatives of small- and medium-scale business. In order to perform such estimation, the authors studied the experience of debutant companies, which took part in the competitive procedures of the Russian federal contract system in St. Petersburg for the first time. Factor analysis was carried out on the regional contract system of St. Petersburg as an institutional environment. Institutional barriers that restrict the participation of companies in competitive procedures or discriminate them on the basis of signs highlighting the systematic institutional problems and the violation of functional processes in the Russian contract system, as well as the facts of unfair economic behavior of counterparties, were classified. Qualitative analysis of contract experience and in-depth interviews revealed 27 institutional barriers. The mechanism of such barriers was defined, based on the imperfection of the institutional environment. The necessity of changing the economic and bureaucratic role of third parties in the contract system of Russia, mostly electronic trading platforms and banking structures is becoming more obvious. In order to estimate the cost of preparing an application for participation in the contract procedure, the authors propose a model that allows describing the planned and hidden costs for an individual vendor. In order to demonstrate the use of the model, the authors cite one of the research cases that clearly demonstrates the effect of institutional barriers and the cost of overcoming them for a supplier company.

Views: 49

Continue Reading

Resistance to change in an organization: a qualitative empirical study

Resistance to change in an organization: a qualitative empirical study

Journal of Economic Regulation, , Vol. 9 (no. 2),

This paper examines the process of organizational change using the insights of original institutionalism and new institutional economics. The research aims to contribute to the understanding of the mechanisms of employees’ adaptation to radical changes in an organization. The process of institutionalization that includes the establishment and maintenance of organizational routines is treated as an essential step in organizational development. At the same time, it is assumed that highly institutionalized organizations may face structural inertia and resistance to change. Qualitative methods of research were used to analyze the reasons for resistance to change in an organization. The article analyzes the findings from 30 semi-structured interviews with the employees of a large Russian telecommunication company. The results of this study demonstrate that employees perceive changes as chaotic and badly prepared if they are not well-informed about the objectives that change managers are pursuing. If communications within an organization are poor, and new rules, business processes and procedures are inconsistent with the previous ones, passive behavior in the workplace is likely to be observed. The prevalence of passive behavior among employees in an organization hinders transformation processes and adoption of changes.

Views: 44

Continue Reading

Regional aspects of development of public and private spheres of creative economy (on example of higher education)

Regional aspects of development of public and private spheres of creative economy (on example of higher education)

Journal of Economic Regulation, , Vol. 9 (no. 2),

The article raises the question of regional aspects of differentiation in terms of the degree of development of the creative economy and its public and private spheres in relation to such a sector as higher education. As a spatial unit of analysis, Federal Districts and regions – subjects of the Russian Federation were chosen. Based on the analysis of statistical data provided by Rosstat, the author comes to the conclusion that in such a sector of the creatosphere as education, public (state) ownership is the most significant for satisfying the needs of the population, and private property plays the role of an additional factor that, which in a number of cases makes it possible to smooth out the shortage caused by inadequate state participation. In particular, this manifests itself in a greater proportion of private institutions of higher learning in those regions where the population's availability of public institutions is lower than the national average. It is only possible to provide the population with higher educational institutions, mainly at the expense of the private sphere, to rare regions. In addition, the study of statistical data in the regional context confirms the conclusion of a number of researchers of the creative economy that the public sector of the creatosphere provides greater equality in access to creative goods. In particular, with respect to the subject of our research – higher education, this is manifested in the fact that a significant sector of public institutions of higher learning is the main condition for maintaining a relatively low regional differentiation in terms of access to education, while the private higher education develops predominantly in the richest regions and reinforces regional inequalities in this area.

Views: 42

Continue Reading