Non-resource Exports Research Articles

Assessing the efficiency of the effect of innovations on the development of grain processing enterprises

This study evaluates the impact of the introduction of deep grain processing on the development of grain processing enterprises. The main problems of processing grain crops in the Republic of Kazakhstan have been considered. The need to assess the impact of the innovative process of enterprise development was outlined. The research was carried out in the North-Kazakhstan region; the object of the study was the grain processing industries in the North-Kazakhstan region. The results show the following: 1) total cost savings when expanding the level of gluten consumption (up to 3 % by weight of the volume of flour consumed) will save USD 18.5 billion. The savings are due to the significant improvement in the baking properties of the flour when adding 1−3 % gluten to the level of the highest quality wheat flour. At the same time, due to the manufacturability of the process and the use of the lowest quality raw materials, the unit cost of gluten in terms of protein is lower than the price of high-quality wheat necessary for baking; 2) in the processing of starch and amino acids, grain starch is the main product of world trade among all goods of the grain processing industry, and gluten ranks only second in terms of world imports. The share of issued patents in the area of starch production is also leading among the sectors of deep grain processing; 3) the implementation of the developed project for deep processing of grain in Northern Kazakhstan could significantly improve the indicators of innovative development of the country: the increase in innovative products of the manufacturing industry in the country as a whole would be 19.1 %. The growth of non-resource exports would equal 1.5 %. The annual increase in the enterprise's revenue could be about USD 0.47 per USD 1 of investment costs compared to the base scenario for the sale of unprocessed wheat. The scope of practical application of the results extends to the grain industry. The project has a significantly wider range of manufactured products and is focused on the markets of neighboring countries, which could reduce export risks to a minimum and provide stable demand for the company’s products

The Role of Russian Non-Resource Export in Technological Sovereignty Achievement of African Countries

The modern trends of world economic development include complicated digital and transformation processes, which create a wide range of risks and challenges to the actual positions of countries in the world architecture. Also, they open new opportunities for competitiveness and welfare improvement of any state or regional groups, in particular by their technological sovereignty creation. The share of African countries in the world trade accounts for 3%, however, the interest in this region, as a foreign trade partner, is increasing. This is driven by the intensity of considerable reserves of natural resources, existing and potential in the sphere of renewable energy sources and of local production involvement in global value chains. All this stimulates to elaborate on their own technologies, mitigating the extent of regional economic dependence on external factors. Thus, the African region continues to attract investors, and from this position, Russia is not the exception. At the moment, amid sanctions and diversification of export flows, African countries are actual for Russian producers and suppliers from the implementation process. This paper highlights the key positions of Russian non-resource commodities to African countries, defines the major markets of sales and also to analyze the role of Russian export in African countries’ technological sovereignty achievement.

Assessment of the regional potential of technological sovereignty of the Russian Federation

Aim. To identify the regions with a high potential for ensuring technological sovereignty of the Russian Federation (RF).Objectives. To perform a structural analysis of non-resource exports and imports of the RF regions; to propose a methodological approach to the development of typology of regions according to the criterion “the level of import dependence of production”; to identify the regional nuclei of technological sovereignty of the Russian Federation.Methods. Two-stage structural analysis of statistical data on regional exports and imports with the allocation of the share of goods with low and high level of processing, as well as with the definition of the purpose of products: production or for consumption by the population. The choice of the research period is conditioned by the absence in 2019 of the influence of the factor of the decline in global production during the COVID-19 pandemic in the following years, as well as the absence of the pressure exerted by sanctions restrictions.Results. 12 types of Russian regions were defined according to the criterion “high, medium and low levels of technological import dependence of the industrial complex”. The second level of the regional typologization depth is determined by the ratio of such indicators as the share of industrial technological export of the region in the country’s export, the share of industrial technological export of the region in the country’s technological export, the share of industrial technological import of the region in the country’s import, the share of industrial technological import of the region in the country’s technological import. Structural analysis allowed us to identify the regions - the nuclei of technological sovereignty of the country.Conclusions. First of all, it is necessary to study the experience of economic activity of seven regions that have exports of technological products at a high level with a low level of technological import dependence of industry. Among these regions are the Irkutsk, Arkhangelsk, Penza oblasts, the Republic of Bashkortostan, Altai Krai, the Republic of Mari El, and the Komi Republic. Two leading regions of the listed subjects of the Russian Federation deserve special attention: the Irkutsk Oblast and the Republic of Bashkortostan. It is important to highlight the most successful cases of their sectoral development to be used in other territories in order to ensure national technological sovereignty.

Diversification in resource-rich Africa, 1999–2019

We survey the performance of Sub-Saharan Africa's resource-dependent economies from 1999 to 2019, a period covering the commodity price supercycle, which generated enormous rents for natural resource producers. We show that despite high overall growth rates, these states failed to convert their windfalls into broader forms of development: their economies diversified more slowly than resource-poor countries in Sub-Saharan Africa; their economies became less complex; their low institutional quality regressed further; and they achieved slower progress on human development than their resource-poor counterparts. Case studies of the top three diversifiers—Botswana, Zambia, and Nigeria—underscore the challenges of diversification. We suggest two broad reasons for these patterns. First, economic diversification, especially export diversification, is intrinsically difficult for low-and-middle income resource-dependent countries, due to both Dutch Disease effects and the isolated product spaces of the oil, gas, and minerals sectors. Second, diversification in resource-dependent states is sensitive to institutional quality, yet institutional quality is sticky and typically constrained by political interests that are hostile to reforms. This implies that the development challenges of oil, gas, and mineral dependent states over the coming decades will be significant and difficult to surmount. We suggest a more modest set of goals focused on diversifying into related activities in the extractives value chain and unrelated sectors in the domestic economy, as well as narrowly-focused efforts to boost non-resource export industries.

Export diversification and dependence on natural resources

Low export diversification is a risk-augmenting factor for many countries dependent on natural resources. The literature tends to focus on the growth effects of resource dependence (‘resource curse’ debate) while not much is known on how it affects the variety of non-resource exports. To quantify this effect we decompose the relative Theil index using product-level export data from 160 countries over the time period 1996–2018. We reveal that most (above 70%) of low export diversification level is driven by the limited variety of products other than natural resources. At the same time, natural resource dependence (in particular on fossil fuels) correlates negatively with the diversification of the non-resource portion of the export basket, in particular of technologically advanced products. Econometric estimates with interaction terms and case studies of countries that managed to escape the resource trap show that institutional quality determines the ability of resource exporters to diversify.

Priorities and directions of national development in supporting non-resource exports

Aim. The presented study aims to assess the process of formation and implementation of strategic priorities and directions in supporting non-resource exports from the perspective of achieving the country’s sustainable economic development.Tasks. The authors analyze and evaluate the existing system of strategic planning for the development of non-resource exports in Russia and the established system of institutions supporting national non-resource exports.Methods. This study examines strategic planning documents developed at the federal level for industries considered by the Russian Export Center as exporters of non-resource goods, works, and services. An analysis of federal sectoral strategies is complemented by an analysis of strategic planning documents developed by the regions of the Russian Federation. The goal is to determine how one of the most important issues of increasing non-resource exports is being integrated into the problems of the country’s socio-economic development.Results. Federal, sectoral, and regional strategic documents used to provide institutional support for the export strategy are assessed based on the conducted research. An information and analytical base is being formed to systematize data on the consistency between socio-economic development objectives at the federal and regional level and tools for supporting non-resource exports in Russia.Conclusions. Today, strategic planning of the country’s development faces the risk of institutional support for non-resource export priorities being insufficient for the purposes of solving the tasks of socio-economic development of the Russian Federation. Furthermore, there is a situation when the system of measures of government support for non-resource exports is not based on regional territorial structure, but rather exists in parallel with it. It is necessary to update the national export strategy, identifying the components of non-resource exports in it, and to integrate strategic plans developed at the federal level into regional development strategies.

Analysis of the achievement of key tasks and indicators of state programs for the development of non-resource exports in Kazakhstan

Export has been taking a key role in a shaping economic agenda for the development of the country and enhancing competitiveness of the industries. This article reviews key state programme documents of promoting export and analyses achievement of their target indicators. Indicators are compared along with budget resources allocated for export promotion tasks and operators that convey support instruments. All analyzed state programs included target indicators and initiatives to promote domestic non-commodity export. To achieve these targets various measures and initiatives proposed in the last two decades. However, indicators often remained unachieved, as statistics on the volume of exports of the manufacturing industry investigated in the context of the programs’ implementation period. The pool of main measures of state support for exports was formed during 2010s with minor changes in subsequent policy documents. It was revealed that the implementation of the programs was accompanied by a frequent change of operators for the provision of state support measures, which quite possibly had a negative impact on the failure to achieve target indicators.

Non-resource exports of developed and developing countries: Major support measures and challenges of the current stage

Aim. The presented study aims to form an objective idea of factors affecting the system of support for non-resource exports and ensuring the validity of decisions.Tasks. The authors summarize the main ways of supporting non-resource exports of developed and developing countries; analyze changes in the international regulation of export activities associated with the formation of national support systems for commodity producers; systematize major opportunities for supporting export credits.Methods. This study analyzes the practices of export credit agencies in various countries in the context of opportunities provided to foreign trade participants; identifies problem areas typical for the current stage of development of trade relations; draws attention to emerging contradictions in the field of support for national non-resources exports by countries.Results. It is shown that the participants of the Arrangement on Officially Supported Export Credits (OECD) operate in an extremely aggressive, yet increasingly unmanageable environment. To secure export contracts, both the domestic industry and the export credit agencies of the OECD member countries should enhance competitiveness by following the rules of the trading system. Otherwise, they risk upsetting the balance on the playing field and hinder sustainable development.Conclusions. The participants of the OECD Arrangement face a difficult tactical choice: either to take a strong position in support of competition both within the country and within international organizations (WTO, OECD), or to develop their own export credit programs that are not related to the OECD Arrangement. The first option, although preferable in terms of ensuring economic efficiency, long-term competitiveness, and sustainable development, may lead to a reduced role of export credit agencies.

Эволюция валютного регулирования и контроля в России и перспектива продолжения либерализации валютного законодательства

After thirty years of continuous evolution, following the conceptual reform in 2004–2007 and subsequent easing, the Russian system of FX controls has come to a point where many administrative barriers have already been removed, the residents’ duties to repatriate proceeds from export of goods, except for FX proceeds from raw materials, are being cancelled, and bureaucratic procedures have been streamlined. At this point, the question is raised of what other steps in the field of liberalization of FX controls can be taken in the first place to achieve the ever more urgent goal of developing nonresource exports. The article analyzes the purposes of regulation, describes the evolution of the system, examines experts’ opinions regarding the course of reforms, and concludes with a view of the rational prospects for reforming the system. The central problem is the continuation and expansion of the automatic exchange of financial information between the tax authorities of Russia and foreign countries, which, in particular, would help limit fiscal risks when eliminating the remaining residents’ repatriation duties.

ДИВЕРСИФИКАЦИЯ РОССИЙСКОГО ЭКСПОРТА: РЕГИОНАЛЬНЫЙ АСПЕКТ

The task of overcoming the country’s raw material specialization in international trade is the most important in the current economic situation. For a long time, Russia’s place and role in the world market were determined by the export of energy resources. The deterioration of the situation in the fuel and raw materials markets in recent years, associated with unfavorable price dynamics, the introduction of new principles of energy consumption in Europe and the world, quantitative restrictions on the import of Russian products emphasize the urgency of reforming the export structure of foreign trade of the Russian Federation and increasing the importance of non-primary non-energy exports in it. At the same time, the growth of exports of domestic nonprimary goods to world markets is significantly constrained by the intensification of competition and the strengthening of protectionist tendencies. In these conditions, the policy of the state in the field of support of national exporters in order to ensure the competitiveness of their products is of no small importance. Export promotion services from the state are widely used in world practice, national integrated systems are being formed to assist exporters at all stages of the implementation of transactions. The article offers an analysis of the main directions of the Russian state policy aimed at increasing the share of processed products in the foreign trade of the Russian Federation. The author characterizes the commodity groups that form the basis of the country’s non-energy exports and its regional specifics. The largest partner countries of the Russian Federation in the trade of non-primary goods have been identified. The prospects and directions of development of Russian non-resource exports are analyzed.

Invention Foundation of Russia: New Opportunities for Activating the Corporate Venture Capital Market

Introduction. The article justifies the need and feasibility of creating a special-purpose vehicle for managing both public intellectual property and industrial property of private rights holders. Methods. The article provides analysis of global practices. Results and Discussion. It is proposed to create the Invention Foundation of Russia in the form of a joint-stock company, with 100 % of the shares belonging to the Russian Federation at the first stage. The key functions of the foundation shall be the formation of patent pools in the most promising areas of technology; support for technology transfer; popularization of intellectual property and promotion of IP literacy; attraction of Russian and foreign investors and industrial partners. Growth of capitalization, number of transactions with intellectual property in foreign markets; increase in dividend flow in the Russian Federation are proposed as key performance indicators of the foundation. Conclusion. According to the author's assessment of the economic effect of creating the Invention Foundation of Russia, in combination with other activities, it will be able to provide the GDP growth of 1 %, and increase the non-resource exports by USD 15 billion per year and the science funding from extrabudgetary sources by 100 %.

Адаптация региональных стратегий к новому целевому показателю развития несырьевого экспорта

In the radically new economic conditions of 2020, the Government of the Russian Federation selected supporting non-resource and non-energy exports as one of the four factors of sustainable economic growth. Achieving this target is a challenge, but the absence of sufficient conditions for a systemic diversification of Russian exports also poses a substantial problem. This situation lends urgency to developing a methodology for the normative institutional reflection of non-resource non-energy targets in regional legislative acts. This article aims to improve the methods for embedding non-resource non-energy export targets in regional strategies (the targets are expected to serve as an institutional factor prompting economic diversification). This research is exploratory; methodologically, it stands out for using qualitative and quantitative content analysis with elements of computer-assisted frequency analysis of legislative acts and regulations. The study classifies, for the first time, the non-resource non-energy export targets, contributing to the regional export strategy theory. Analysis of strategies for socio-economic development confirmed the hypothesis that, in some north-western Russian regions, the priorities and targets of non-resource non-energy exports are at odds with federal law. The practical implication of this study is recommendations on adapting strategies for regional socio-economic development to the updated non-resource non-energy export targets.

THE IMPACT OF TRANSNATIONALIZATION ON THE GLOBAL CONSUMER MARKET

The study found that globalization has no effect on the content of monopoly capital, which has changed its form because of the existence of the process of transnationalization. The growth of transnational corporations not only increases the interaction with the state in the modern process of globalization. Minimization of negative consequences of transnational corporations in the consumer market, ensuring food security of the country involves the implementation of the strategy of import substitution and reasonable protectionism. This triggers the modernization of foreign economic strategies, improves institutional and organizational and economic efforts of state regulation to ensure protection of the borders of the consumer market. Here targets are defined: growth of own production; increase in investment demand; increase in non-resource exports through exports of high-tech, knowledge-intensive goods and services; intensification of measures within the system of comprehensive export support.

Assessment of the representation of non-resource export priorities in the conceptual documents of the NWFD region

The problem of dependence of the Russian economy on raw materials remains. The growth of non-primary non-energy exports was approved as one of the priorities in Russia. Updating the national project increases the importance of its institutional support in legislation. The question arises of the sufficiency of institutional reflection of non-resource exports. The purpose of the article is to generalize approaches to the priorities of non-resource exports, to develop methodological tools and to assess the representation of the topic in conceptual documents on the example of the regions of the North-Western Federal District. The research methodology is based on the content analysis of documents using the Istio service. The basis of the study was the conceptual documents of the NWFD regions with export topics. The categories of non-primary exports are highlighted. The socio-economic Development Strategy is the main document approving the region’s non-resource exports. A research program and methodological support for assessing the representation of non-primary exports in documents have been developed. The differences in the institutional support of non-primary exports are revealed. Of the 11 regions, 8 contain a target indicator of non-primary non-energy exports. Kaliningrad and Murmansk oblasts are recommended to include it in the Strategy in order to form institutional support for overcoming the problem of commodity dependence. A classification of regional documents providing institutional support for the export strategy has been developed. For the first time, the assessment contains scientific novelty and can help to understand the need to form a scientific concept of non-resource exports.

INFLUENCE OF INTERNAL AND EXTERNAL FACTORS ON THE STRUCTURAL CHANGES OF NATIONAL ECONOMY: AN EXAMPLE OF UKRAINE

Purpose – the purpose of our article is to study structural changes in the national economy using a portfolio model of sectors with different returns and, on this basis, processing the methodology for identifying the current state and instrumental factors of economic policy. Research methodology – the methodology of empirical research includes methods of grouping, abstraction, comparison, systems analysis, synthesis and generalization, graphical methods and regression analysis. To analyze the nature of the relationship between the index of structural changes and the dynamics of GDP, which determines the comparative profitability of the resource and non-resource sectors and the current position of the current structure relative to the equilibrium value, we used error-corrected models (ECMs). Findings – using regression models with error correction, a favourable long- and short-term relationship between structural changes in favour of non-resource exports and Ukraine’s GDP has been empirically confirmed. Using the index of structural changes, considering the ratio of raw materials and non-raw materials exports, the necessity of applying administrative measures is substantiated. Research limitations – the study concerned mainly the national economy of Ukraine, but in the future, attention should be paid to the application of the results of our study in other countries of Eastern Europe. In the future, the results obtained can be adapted for other countries of the world. The research was based on the use of specific mathematical methods, and not all mathematical possibilities were used. Practical implications – the model can be used in the practical activities of state economic structures In the future, it is possible to change key indicators and further expand the field of use of the model. Originality/Value – the novelty of the study lies in the development of a methodology for identifying the current state and instrumental factors of economic policy that can speed up economic growth based on favourable structural shifts (in favour of the non-resource export sector).

State support for petrochemicals and invenstments in Russian Arctic opens up new opportunities for the development of hydrocarbon resource base

The new vector of the energy policy of the Russian Federation, aimed at the development of non-resource exports, was supported in 2020 by the adoption of key federal laws that stimulate gas processing (ethane and LPG) and business activities in the Arctic zone of the Russian Federation. These changes are an incentive for the implementation of innovative projects with an expanded technological chain with the production of products with high added value. Arctic gas condensate fields in the Russian Federation are acquiring additional potential to significantly increase the value and monetize large-scale reserves, most of which are located in the YamaloNenets Autonomous District. Global trends confirm the relevance of the gas chemical direction – with the growth of global consumption, the need for final polymer products will increase, and with the new environmentally friendly energy transition, the share of gas will increase. The article presents a comprehensive analysis of trends in the development of the world market of gas and gas chemical products, the hydrocarbon resource base of the Russian Federation and changes in legislation. It is concluded that the enterprises of the Russian Federation have advantages for the implementation of gas chemical projects in the medium and long term in 2022-2030, especially in the Arctic zone of the Russian Federation.

Оценка участия отраслей промышленности РФ в глобальных цепочках создания добавленной стоимости с целью стимулирования несырьевого экспорта

Статья посвящена проведению анализа участия отраслей промышленности РФ в глобальных цепочках создания добавленной стоимости. Полученные результаты позволили констатировать факт сырьевой направленности экспорта и доминирование во внешней торговле продукции с низкой степенью переработки. С целью интенсификации привлечения отечественных товаропроизводителей к глобальным цепочкам создания добавленной стоимости в статье разработаны рекомендации, касающиеся преодоления ограничений, которые сложились на уровне экономической системы страны. The article is devoted to the analysis of the participation of industries of the Russian Federation in global value chains. The results obtained made it possible to state the fact of the raw-material orientation of exports and the dominance of low-processed products in foreign trade. In order to intensify the attraction of domestic producers in global value chains, the article developed recommendations to overcome the limitations that have developed at the level of the country's economic system.

Analysis of the prospects for increasing non-resource exports of the Russian Federation through reduction of technical barriers to marketing organic products in foreign markets

The paper analyzes the possibility of reducing technical barriers to marketing organic food in China, examines state regulators of the certification system and standards currently in force in China for various types of organic products. The possibility of recognition of the Russian organic product certification in China is analyzed. The requirements for organic products certification bodies established in China are studied.

Russia-Africa Business Dialogue at SPIEF 2021: Trends, Problems and Prospects for Russian-African Cooperation

More than a year and a half has passed since the first Summit and the Russia-Africa Economic Forum. The crisis of “Western-style” globalization, accelerated by the coronavirus pandemic, has adjusted the formation of the Russian business strategy in the African direction. The most important areas of Russian-African cooperation in the near future are healthcare, ensuring food security, infrastructure projects, including digitalization, education and science. With what results will Russia and Africa approach the next Summit, planned for 2022? Which business strategy will meet both Russian and African interests? What Russian investment projects are already being implemented on the African continent? How are the new mechanism and tools of the Russian-African partnership formed? These and other issues on the Russian-African agenda were discussed at the Russia-Africa business dialogue, which was held on June 3, 2021 as part of the St. Petersburg International Economic Forum. This was the first major Russian African event in full-time format after the historic Russia-Africa Summit and Economic Forum, which was successfully held in Sochi on October 23-24, 2019. The participants in the discussion concluded that Africa needs Russia to achieve the ambitious goals of the Agenda 2063, but Russia also needs Africa to implement the new development strategy of the Russian Federation, which focuses on increasing non-resource exports and technological breakthrough. The African fast-growing market, formed by the youngest population in the world, is showing an increased demand for modern Russian goods and technologies, primarily in such areas as healthcare, agriculture, infrastructure, resource development, and digital products. To intensify cooperation, it is necessary to use the entire set of instruments of public-private partnership, to utilize the information resource at full capacity, and to develop cooperation in the field of science and education. The main thing for us now is to bring our cooperation, including in the economic sphere, to a fundamentally new level that meets the interests of our peoples. Both Russia and Africa have a lot to learn from each other, and our economic strategies can be successfully implemented if we combine our efforts.

“Мягкая сила” и экспортный потенциал России в несырьевых секторах экономики

The subject of the research is the export potential of Russia in non-resource sectors of the economy. The purpose of the article is to assess Russia’s international competitive advantages and export revenues in the sectors of the national economy that fall within the scope of “soft power”. The study, based on expert assessments and quantitative analysis methods, confirms the hypothesis that Russia has significant means of intellectual and emotional influence on foreign consumers, designed to improve the country’s current position in the system of international relations. It is shown how the tools of so-called “soft power” can be used to increase Russian geostrategic influence in the world, including using national ideological attitudes, conceptual political ideas and demonstration-effective business models. The realization of export revenue growth opportunities in areas of the national economy associated with the spread of “soft power” helps to solve this problem. Based on the concept of “soft power” and the postulates of the experience economy, dream society, behavioral economy and glam capitalism, with the involvement of statistical and factual materials, the prospects for the development of Russia’s export potential in the field of tourism, education, as well as certain areas of culture, art and sports that are most indicative of their competitiveness, including ballet, figure skating and animation, are evaluated. The author concludes that Russia has competitive advantages in both general and highly specialized areas of the non-resource economy, which, in addition to export revenues, can become a productive “soft power” of influence on foreign audiences. An important task of regulating foreign economic activity in the Russian Federation should be to support these areas of activity that are potentially attractive for increasing non-resource exports in the long term.