This paper presents the results of a field study of the budgetary efficiency of investments in agricultural industry. Currently, grants and subsidies are the main incentives for the agricultural industry. Nevertheless, the results of the field survey revealed, that the direct funding would never bring the significant impact. Sustainable growth equally depends on developed infrastructure, labor market. In this paper we state that sustainable growth of agricultural industry depends not so much on investments in the industry, but on complex measures to support the regions. Moreover, such sources of financing as subsidies have reached their limits and are not able to provide an increase in the output of agricultural products. The research model was developed using a decision tree and takes into account the willingness of subjects to expand production in various conditions.
The paper aims to analyse the efficiency of efficiency of state support for small and medium enterprises provided through the public procurement mechanisms in the Russian Federation. Preferences in public procurement for this category of business are one of the tools for implementing the state policy of small business support. We consider the original database of procurement procedures conducted in accordance with the Federal Law No 44-FL and No223-FL in 40 Russian regions in 2017. Using econometric models, we estimate the level of competition in both procurement procedures conducted for all types of participants and procedures conducted only for SME’s. We also identify and evaluate the determinants affecting rebate of contracting authorities, such as regional characteristics, characteristics of contracts and characteristics of contracting authorities. The results of the study prove that granting preferences for SMEs by conducting special procurement procedures only for SMEs provides a greater access for SMEs to procurement procedures and has a positive effect on the level of competition (the number of applications submitted and admitted to participation) and does not require additional state costs. This study contributes to the academic) discussion about the efficiency of preferences for small and medium enterprises in the public procurement system. Moreover, it proves the efficiency of the existing support measures in the public procurement system in the Russian Federation from the position of contracting authorities (the government). The results of the study can be used by contracting authorities and authorized bodies when planning procurement, as well as by suppliers when determining a strategy of participation in procurement procedures; they can also be applied to adjust public procurement policy.
The study estimates the impact of collateral determinants, so as collateral requirements, targeted on loan- to-value (LTV ratio), on credit risk of bank corporate loans. The approach presented focused, on the one hand, on tests of the prevalence of so-called the Ex Post and Ex Ante theories of collateral in banking. And the ability of collateral determinants, LTV ratio in particular, as tools of credit risk management to predict and evaluate lenders’ overconfidence, on the other. That is a novelty of collateral controlling and credit risk management in Russian banking.
Features of assets and property rights pledged for bank loans in Russia are also analyzed. The research is based on econometric methods, linear regressions, and binary models. The prevalence of Ex Post theory for collateral has been proved for Russian bank corporate loans. The higher credit risks, the higher banks’ collateral requirements to pledge corporate loans. This evidence corresponds Russian bank experience to international practical overview.
Moreover, banks studied depict strong preferences in collateral types alongside the credit risk management, presenting the importance of financial behavior studies in banking. Empirical results of the research inspire to continue indicating probability-of-default for corporate loans, based on behavioral aspects of banks’ collateral requirements, and lenders’ preference in collateral types and features.
For the past few decades, higher education institutions (HEIs) have been
evolving into full-fledged managerial entities preoccupied with generating profits and
creating an economic impact on local, regional and national scales. Taking cues from
the international trend, numerous political initiatives in Russia have emphasized gov-
ernment support for innovative and entrepreneurial activities at regional universities.
This study attempts to define the dimensions of entrepreneurial universities and
determine to what extent this definition is applicable to the regional context in Russia.
Using data from HEIs
efficiency monitoring conducted by the Ministry of Education
and the Science of Russian Federation, we analyze the scientific and research produc-
tivity metrics and the funding structure of 20 universities located in the Saint Petersburg
region, and we investigate the entrepreneurial activities undertaken by different types of
universities. While policymakers and universities tend to employ mostly quantitative
quality performance indicators (QPIs) to capture scientific productivity and commercial
outcomes, the findings suggest that the regionalized impact of universities extends far
beyond technology transfer and tangible outputs (in terms of human capital attraction
and detention, formation of entrepreneurship capital, informal networks, new ideas,
etc.). This study furthers the knowledge about the heterogeneous nature of entrepre-
neurialism at Russian universities and provides useful insights for policymaking and
managerial practice. The transformation of a university into a local entrepreneurial
fulcrum demands massive government funding during the initial stages and coordinated
policy measures to foster the innovative activities of the university without compromis-
ing its traditional teaching and research functions.
Importance. Loan-to-value, LTV ratio, is applied in three dimensions. First, LTV as a measure of leverage, helpful to understand the spread of systemic risk in the economy. Second, we identify LTV throughout financial covenants to analyze loan’s counterparties behavior, so as testing LTV’s ability to cope with moral hazard and adverse selection problems. Finally, we implement LTV to indicate one of the credit risk component, the probability of default, to examine specific features of risk management withal to the pricing of secured loans.
Objective.The study of collateral requirements’ impact on credit risk throughout adjusted financial covenants for bank loans.
Methods. To do the research, econometric methods are implemented, linear regressions and binary models, in particular.
Results. The prevalence of ex-post theory for collateral as adjusted financial covenant has been proved for Russian banks corporate loans. Determinants of collateral constraint (particularly, LTV ratio) are to be dynamically setup, that is served as a key advantage of adjusted financial covenants. The higher credit risks, the higher collateral requirements to pledge the loans.
Conclusion. The new approach to identify collateral requirements, throughout LTV measures, as adjusted financial covenants, is presented on the Russian market. The evidence of correspondence between Russian and international experience is presented by empirical tests. Interestingly is that lender’s preferences are being stronger at the time of downturns in economic activity, while economic growth neutralizes any visible behavioral favors/patterns. Hereby psychological risk components are quite essential, and should be profoundly explored in modern banking.
The study reveals collateral requirements, throughout LTV ratio, within credit risk's controlling. The new approach to identify LTV deviations from its median on the group level as a reference point - alarm indicator is presented. This indicator serves to alarm banks to incorporate particular borrower to the so-called Watch list. These alarm indicators should be arranged only based on the empirical interlinkage of collateral and credit risk. Portfolio of bank corporate loans, issued from 2006 to 2017 on the Russian market, performs as research input data.
Within the framework of the digital economy development in Russia, one of important areas is «digital logistics/ supply chain». In the market of freight and passenger traffic the use of digital technologies gives a competitive advantage, therefore their implementation is becoming inevitable for the entire logistics industry. This article considers trends, advantages, prospects and barriers to the implementation of digital technologies in the Russian Federation; the main types of these technologies and their influence on logistics business processes efficiency. A scheme for digital technologies (Big Data, IoT (Internet of Things), Blockchain, Cloud Services, 3D Printing) using in the supply chain are also presented. This paper provides the analysis of digital technologies use impact and a methodology for assessing the relationship with the components of the model of total logistics costs (TLC) in supply chains. It should be noted that proposed TLC model does not only include logistics operations costs, but also the costs associated with complete customer satisfaction.The use of digital technologies in logistics makes it possible to increase efficiency,precision and speed of logistics operations, however it requires significant financial investments, personnel training, accounting long-term physical movement over long distances, problems of customs clearance and terminal handling of goods.
The article examines the effectiveness of protecting the property rights of participants in shared construction in such a way as insurance. Changes in legislation that regulate this kind of relationship are analyzed. A number of market research was conducted to identify the pros and cons of such types of insurance as: participation in the company of mutual insurance of civil liability of developers (non-profit insurance); the contract of civil liability insurance of the developer for non-fulfillment or improper fulfillment of obligations with commercial insurance companies (commercial insurance); bank guarantee. We consider the pros and cons of the new state federal law N 218-FZ (July 29, 2017), as well as the degree to which it influences the increase in the credibility of equity holders to developers. The opinions of scientists on this issue and international experience are analyzed, a comparative analysis of the efficiency of housing construction in Russia and Australia with the help of modern econometric tools is provided, and measures are proposed to improve the effectiveness of the new federal law.
Regional banks are struggling with significant obstacles in the modern Russian economy. Among them are strong competition with major big banks, strong resource restrictions, tightening the Bank of Russia’s requirements, and quite rapid expansion of financial technologies. Thus, the reduction of regional banks occurs, that produces both a negative impact on the development of small and medium enterprises (SMEs) and challenges for balanced competition on the Russian market. Basically, these banks provide the settlement of region’s social and economic problems while maintaining local companies and enterprises. Collateral, as a source for losses covering, became the essential element of credit risk management in banks. Providing lenders to implement such instruments, it helps to reduce bank losses under borrower’s default.
The purpose of the article relates to revealing of collateral determinants with higher impact on bank risk with the application of empirical methods (including regional level). This study is based on linear regression models evaluated by the least square method. Private data of secured small and medium business loans is used.
This article presents LTV (loan-to-value) as a major collateral determinant. The empirical evidence of interlinkage between collateral requirements, by the means of LTV, and risk premium is provided for loan portfolio of Russian regional banks. The hypothesis that LTV conversely correlates with risk premium is statistically proved.
The current situation in the world economy has a significant impact on the imbalance in the use of different types of natural resources. International energy supply chains are a crucial element of energy security, and their sustainability affects market conditions in most countries. The primary purpose of this article is to form the foundations of the theory and methodology of supply chain management of pipeline transport. Authors identified opportunities for the application of the method of the logistics to pipeline transport systems. By analyzing the features of pipeline transport in general, the authors propose the use of methods and models of logistics and supply chain management in the planning of the oil and gas transportation systems, taking into account the characteristics of flows while using this type of transport.
Russian banks participating in the recent global technological competition on financial markets do follow the way of FinTech adaptation. Probably, such path is slower than those in developed systems, and thus puts Russian banking to struggle the double-edged sword. On the one hand, bulky conservatism threatens to skip breakthrough ideas and solutions. But, on the other, excess intents could lead the dismiss in bank risk management, so as an acute lack of social responsibility. The aim of this paper is to study the evolution of the concept «digital banking» in books and papers published in English worldwide, so as challenges and future trends of digital banking in Russia.
The attitudes to digital banking in Russia express a common vision regarding technological changes through over the world. On the one hand, costs reduction and shorter length of service providing withal to the strong completion encourage markets to be more attentive to FinTech solutions. Meanwhile, the possible lack of cybersecurity’s quality so as warns of conventional jobs elimination require the threefold context: strong responsibility of business; well-education customers; extreme flexible and interdisciplinary regulation.
Perception of higher educational institutions (HEIs) as engines for regional growth has preoccupied the minds of scholars and policymakers for a considerable timespan already, while the “Triple helix” model has marked the departure from an “ivory tower” university to a proactive entrepreneurial entity. Taking cue from the international trend umpteen political initiatives in Russia have emphasized government support aimed at augmenting “innovativeness” of universities and local industry. Moreover, imposed publication and R&D intensity requirements, higher salaries demanded by academic staff as well as student mobility have deemed purely teaching functions increasingly unsustainable. This poses a challenge for HEIs, especially in less innovative regions where the divergence between Academia and industry is quite pronounced and opportunities for technology transfer are limited due to relatively weak entrepreneurial milieux.
This research attempts to determine to what extent regional socio-economic conditions and absorptive capacity of local budiness modify innovation potential of mid-range HEIs and how the latter can contribute to regional and local innovation systems in less innovative Russian regions. The rest of this paper is structured as follows. The first section offers a regionalized perspective on HEIs’ entrepreneurial activities and links HEIs’ research performance to the overall level of innovative activity within the home region. In the following section methodology and data employed in the research are presented. The next section presents quantitative data analysis of Russian HEIs and discusses major findings. The penultimate part highlights the implications of the study and suggests solutions for mid-range HEIs, and the last part concludes.
Development of innovative entrepreneurship depends on government policy, institutions and etc. However, current state activities are not enough for fostering innovations as preferences, education and other personal characteristics also play an important role and determine entrepreneur’s attitudes towards innovations as a tool for business development. There is a gap in knowledge regarding the mechanisms of entrepreneurs’ preferences, which influence on the innovation activity of their business. This study attempts to explore such mechanism and explains interrelation of two preferences of entrepreneur: (1) to be rich and (2) to do an interesting job related to his innovation activity. To do this, the economic and mathematical model of occupational choice is developed. It shows how an individual takes into account these two preferences, makes an occupational choice, which in turn determines his potential for innovations. Results demonstrate that the same economic environment might lead to different levels of innovation activity. It depends on preferences of entrepreneurs. Thus, during the process of development of institutions and the implementation of state policy, it is important to take into account motivation for innovations and entrepreneurship.
Overvaluation on financial markets, high price volatility and quite rapid reduction of emerging markets towards an investment behavior field in terms of predictive estimation and forecast of further market changes. Hereby decision-making basis is a personal investment understanding and, due to favorable business climate, could build up the growth of irrational exuberance and speculative bubbles on financial markets.
This study models Market Certainty Index as a measure of asset overpricing and market overvaluation in terms of a speculative bubble concept. The results also provide insights of how to enhance the facility of overpriced assets studies at non-transparent economies or emerging markets.