The Perspectives of Russian Art in Terms of Alternative Investment Asset

The purpose of this research is to evaluate the investment perspectives of Russian art and compare these perspectives with the investment attractiveness of traditional financial assets, in particular, Russian stock market and world art assets of different art markets. For the research, firstly, Granger causality tests for the presence of causal relationship between returns on Russian art, world art and stock index were performed. Then, both Engle-Granger approach to cointegration and ARDL Bound F test were performed in order to determine the presence of cointegration between the returns. After, Vector Error Correction models were estimated to determine the short term and long term dependence between returns. According to the results, there is no evidence that investment in Russian art in general can serve an alternative to traditional financial Russian investment assets, while investment in Blue Chip Russian art, world contemporary art, postwar art and impressionism modernism art can serve a possible alternative in the long run perspective. The scientific novelty of this study is explained by implementation of alternative econometric techniques in the field of Russian art market analysis and expanding the scope of Russian market by analyzing the Blue Chip Russian market.