"Deflation of investments and dynamics of fixed capital in Russia and assessment of the contribution of ICT and intangible assets to long-term economic growth" report by Ksenia Bobyleva at the XXIII YAMNC HSE
Within the framework of the XXIII Yasin International Scientific Conference on Problems of Economic and Social Development, session A-5-4 will be held. Measuring economic growth at which Ksenia Bobyleva made a report "Deflation of investments and dynamics of fixed capital in Russia and assessment of the contribution of ICT and intangible assets to long-term economic growth".
"Market defects, intersectoral interactions and industrial policy in the Russian economy" report by Anton Tolokonnikov at the XXIII Yasin International Scientific Conference
Within the framework of the XXIII Yasin International Scientific Conference on Problems of Economic and Social Development, at session A-5-3. Macroeconomic policy and long-term growth, the report "Market defects, intersectoral interactions and industrial policy in the Russian economy" was delivered by Anton Tolokonnikov.
The inefficient distribution of resources leads to a lower rate of economic growth and a lower level of social development compared to what can potentially be reached. This is due to distorting taxes and subsidies, and market imperfections. Market imperfections are the costs incurred by economic agents to overcome obstacles related to imperfections of competition, information asymmetry, and barriers to market access. The impact of market imperfections is determined by the structure of intersectoral relations. Market imperfections in the upstream part of production chain (intermediate goods production) bring larger distortions than market imperfections in the downstream part of production chain (closer to final goods). The correlation of the sectoral structure of taxes and subsidies with market imperfections can increase the efficiency of resource allocation in the economy and, thus, increase output and social welfare. The instrument of such improvement is the industrial policy, which contributes to a change in the sectoral structure of net taxes with respect to market imperfections. To what extent do the criteria of the industrial policy used in Russia contribute to a more efficient distribution of resources in the economy? What are the possibilities for improving it? In this article we use approach from Liu (2019) and Input-Output tables for Russia in 2016 to arrange sectors in accordance with the size of the effect of a subsidy of 1 ruble on aggregate output. The highest effect is in supporting sectors, producing productive services, for instance, car and equipment rental services; financial intermediation services; some transport services. It is shown that support for industries with a high proportion of intermediate products in output leads to an increase in aggregate output. Support of sectors with a high employment-to-value-added ratio leads to a decrease in aggregate output.
“The Contribution of Intangible Assets to Economic Growth: How do Estimates Change When Moving from the 1993 SNA to the 2008 SNA?” preprint publication
Ksenia Bobyleva's preprint was published in the WP2 series "Quantitative Analysis in Economics". The paper compares estimates of the contribution of intangible assets to growth within the 1993 SNA and the 2008 SNA. Estimates are made using the KLEMS databases. Data for European countries in the period 1995–2009 the use of the 1993 SNA and the 2008 SNA are compared, as are data for Russia and European countries in the period 2004–2016 using the 2008 SNA.
In April, The Conference Board Inc. website published a new data release using Russia KLEMS data on hours worked in the Russian segmen
Experts believe that increasing productivity, diversifying the economy, as well as developing human capital and expanding non-resource exports will help boost Russia's economic growth. But the state policy has to be smart. This was discussed at a series of round tables and expert discussions on the topic of productivity at the XXII April International Academic Conference on Economic and Social Development, organised by HSE University and Sberbank.
Report of Apurva Sanghi, "Russia integrates: deepening the country's integration in the global economy"
On April 19, Apurva Sanghi, Lead Economist of the World Bank, a partner of HSE University and Russia KLEMS, presented his report at the XXII HSE April Conference.He presented the results of a study that examines the contribution of global value chains (GVC) to the development of the Russian economy over the past two decades, and identifies the possibilities of GVC as a locomotive of economic growth. The growth-enhancing capabilities of the GVC allow for the identification of potential obstacles, as well as for a number of economic policy proposals to address them.While this study describes a sanctioned Russia—less connected to global markets, less innovative, and with less transparent private-public interactions that hinder fair competition—it also identifies significant potential benefits for the Russian economy from more intensive participation in the global division of labor. While sanctions remain a major obstacle to foreign direct investment, there are various measures that Russia could take to make its business climate more attractive for expanding trade and investment
On April 15, at the XXII April Conference, a round table "Productivity, Diversification and Sustainable Economic Growth" was held. It was attended by Russian and international experts in economics.At the event, the participants discussed the following issues:- What are the risks for the economy's dependence on raw materials for its long-term growth?- What are possible measures to diversify the economy?- What are the possible negative medium-term consequences of diversification in terms of falling incomes, inequality and poverty?- Does the Russian economy require diversification? If so, what are the main approaches to its implementation?
On April 14, at the A-14-4 session “Productivity, growth and human capital”, organized jointly by HSE University and the International Association for the Study of Income and Well-being (together with the section "Social Policy"), Ksenia Bobyleva and Anton Tolokonnikov presented their reports.
Anton Tolokonnikov presented his research on "Industrial Policy and Intersectoral Interactions in the Russian Economy". The paper examines the role of state policy in the Russian economy. The state, trying to eliminate market failures with its policies, often worsens resource allocation and harms the economy. However, government policies can have a positive effect on resource allocation, for example, by subsidizing some businesses and industries. How to stimulate economic growth by changing the sectoral structure of subsidies? The study assessed public policy for the Russian economy as a whole, and not for individual firms.
Ksenia Bobyleva's study is the first to compare the contribution of various types of intangible assets to the growth of the Russian economy and the economies of OECD countries.In Russia and the OECD, the contribution of R&D is higher in the manufacturing sector compared to market services. Intangible assets not related to R&D (for example, organizational capital, advertising) dominate in the services sector.In contrast to OECD economies, in the Russian economy, the contribution of intangible assets in market services is significantly higher than in the manufacturing sector. The contribution of intangible assets of market services to the aggregate growth of intangible assets in Russia is 0.19 p.p., which is six times higher than their contribution in manufacturing. In the OECD, this difference is not so noticeable.
"Why do the economy, business, workers, and society need productivity growth?" honorary report by Bart van Ark
Bart van Ark, professor of productivity studies at the Alliance Manchester Business School (AMBS) at the University of Manchester, spoke at the XXII April conference on April 14.
His report, "Why do the economy, business, workers, and society need productivity growth?", focuses on the slowdown in global productivity growth over the past 15 years, reasons for the slowdown, and measures that could revive it. Bart van Ark says to do this, the economy must become more receptive to innovation, which requires a coordinated effort from business, government, and individual workers. There is also a need for a better understanding of the extent to which, and how, productivity growth contributes to people’s welfare.