Prelims

Half Title Page

Modeling Economic Growth in Contemporary Belarus

Entrepreneurship and Global Economic Growth

Series Editor: Professor Bruno S. Sergi

Entrepreneurship and Global Economic Growth is Emerald's cutting-edge Global Economic Growth book series, presenting modern examinations of economic growth at national, regional, and global levels. Each book in this series discusses different dimensions of the changing economic and industrial contexts, and examines in detail their impact on the nature of growth and development. For academics and senior practitioners, this series puts forward significant new research in the global economic growth field, opening discussions regarding new topics and updating existing literature.

Title Page

Entrepreneurship and Global Economic Growth

Series Editor: Bruno S. Sergi

Volume 1: Modeling Economic Growth in Contemporary Belarus

Edited by Bruno S. Sergi

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2020

Copyright © 2020 Emerald Publishing Limited

Reprints and permissions service

Contact: permissions@emeraldinsight.com

No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters' suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-83867-696-4 (Print)

ISBN: 978-1-83867-695-7 (Online)

ISBN: 978-1-83867-697-1 (Epub)

List of Figures

List of Tables

About the Editor

Bruno S. Sergi is an instructor on the Economics of Emerging Markets and the Political Economy of Russia and China at Harvard University and an Associate of Harvard's Davis Center for Russian and Eurasian Studies and the Harvard Ukrainian Research Institute. He also teaches Political Economy and Economics of Financial Markets at the University of Messina, Italy. He is the Series Editor of Cambridge Elements in the Economics of Emerging Markets (Cambridge University Press), as well as the Editor for Entrepreneurship and Global Economic Growth and a co-Series Editor of Lab for Entrepreneurship and Development (Emerald Publishing). He has published several articles in scholarly journals and many books as an author, co-author, editor, or co-editor.

About the Contributors

Pavel P. Artsemyeu, PhD in Economics, is an Associate Professor of the “Department of Marketing” at the Faculty of Marketing, Management, Entrepreneurship at the Belarusian National Technical University. He has professional experience in executing foreign economic activities of industrial enterprises, worked at the Ministry of Economy of the Republic of Belarus, and Economy Research Institute of the Ministry of Economy of the Republic of Belarus. He has a civil servant class. In 2018, he defended his PhD thesis on the topic “Commodity exports promotion in the context of economic integration” on the specializing in “World economy”. He is an author of more than 40 scientific works including 2 sections in a collective monograph, and 10 articles in peer-reviewed journals. He is an instructor of “International economics,” “Foreign operations of a company,” “Financial and credit activities of banks,” “Project analysis,” and “Government regulation of innovation” courses. His research interests include: stimulation and support of industrial exports, macroeconomic dynamics, foreign economic activity, internationalization and transnationalization of the economy, entrepreneurship, production, and capital.

Elena V. Bertosh holds a PhD in Economics. She is an Associate Professor and the Head of the Department of Business Administration in the Faculty of Marketing, Management, and Entrepreneurship of the Belarusian National Technical University. She has worked as an Associate Professor at the Department of International Economic Relations at the Belarusian State University. In 2013, she defended her PhD thesis on topic “International Technology Transfer in the Economic Development of the States” specializing in “World Economy.” In 2011, she was a Presidential Award holder. She has published more than 45 scientific papers and 6 educational works including 2 collective monographs, and 12 articles in peer-reviewed journals (2 articles abroad). She teaches an integrated module on “Economics” and “International Marketing”. The field of her research interests include: international technology transfer and internationalization of the world economy.

Nina Bohdan is a Professor and holds a Doctor of Science (DSc) degree in Economics. She got her PhD and DSc degrees from Belarus State Economic University. She started her career at the Belarusian Institute for National Economy and later worked at Polotsk State University as an Associate Professor, Head of Department, and Dean. In 2003, she joined Belarus State Economic University as a Dean of the School of Finance and Banking and currently is a Professor at the Department of the National Economy and Public Administration at this university. Her research interests are related to the study of national and regional innovation systems and innovation policy issues. She has participated in scientific conferences hosted by GLOBELICS (Russia, Mexico, Senegal, Malaysia, and China). Nina Bohdan is the author of more than 170 scholarly publications. She was actively involved in international projects execution (TEMPUS-TACIS, REAP, and UNDP), and was a project expert (ECE/CECI/UN).

Aliaksei Bykau is a Professor and is a Vice-Rector for Research at Belarus State Economic University. He holds a Doctor of Science (DSc) degree in Economics. He is the author of more than 140 publications including 6 monographs and more than 70 articles in scientific peer-reviewed journals. He is an expert in the field of economics and economic systems management. He has made a significant contribution to the development of the theory and methodology of crisis management, developed methods and models for diagnosing and forecasting the economic insolvency of enterprises, and scientific approaches to risk analysis. He has explored the strategies of participation of national companies in global value chains in areas of new industrialization. He has also developed models for aggregated value chains analysis using Input–Output tables, which were applied for the balanced economic growth estimates. He is an EMERiCs expert (KIEP, South Korea).

Aleksey V. Danilchenko is a Professor and holds a Doctor of Science (DSc) degree in Economics and is a Full Professor, Dean of the Faculty of Marketing, Management, Entrepreneurship at the Belarusian National Technical University, Emeritus Professor of Henan State University (China). He has prepared 10 PhDs. He is the Chairman of the Board of the Doctoral Dissertations Defense at the Belarusian State University in the field of Economic Theory, Economics and Management of the National Economy, Mathematical and Instrumental Methods of Economics, and World Economy. He is a member of following scientific journals’ editorial boards: “Economic Science Today” (BNTU); “Economics, Modeling, Forecasting” of the Economy Research Institute of the Ministry of Economy of the Republic of Belarus”; “Scientific Works of the Republican Institute of Higher Education”; scientific collection “Proceedings of the Faculty of International Relations” (BSU), etc. Professor Aleksey Danilchenko is a member of the General Meeting of the National Academy of Sciences of Belarus, a member of the Expert Council on Economic Sciences in the State Scientific Institution “Institute of Economics of the National Academy of Sciences of Belarus”. He is author (co-author) of eight monographs.

His research interests include: internationalization of the national economy and entrepreneurship, transnationalization of production and capital, foreign trade, etc.

Alina Dutina is the Deputy Dean in the Department of Economics and a senior lecturer at the Department of Analytical Economy and Econometrics at the Belarusian State University. She holds a Master of Science Degree in Mathematical Methods in Economics. Her scientific interests cover logistics, mathematical modeling in logistics, and forecasting. She is a contributor to the monograph Belarusian Transport Logistic: Current State and Future Perspectives and is a logistics course designer and a developer of case studies for logistics students.

Viktoryia M. Dziadok is a Senior Lecturer in the Department of International Tourism at the Belarusian State University and has about 10 years of research and teaching experience. In 2018, she defended her PhD thesis on “International Competitiveness of the Hotel Sector in the Republic of Belarus globalization” (Specialty: “World Economy”). She has working experience in the hospitality industry enterprises both in the Republic of Belarus and abroad and participates in various conferences, seminars, exhibitions, educational programs, and trainings, including international ones. Viktoryia Dziadok has more than 30 publications. Her current research interests include: the hospitality industry, revenue management in the hotel sector, glamping, and overtourism.

Vladimir Fateyev is a Professor of the Department of Economics and Management at Belarus State Economic University and at Bialystok School of Economics (Bialystok, Poland). He graduated from the Belarusian Institute for National Economy in 1977 and worked as a researcher and lecturer in several academic and educational institutes. Vladimir Fateyev holds a PhD in Regional Economics from the Institute of Economics of the National Academy of Sciences (1985) and Doctor of Science (DSc) Degree in Economics and Public Administration from Belarus State Economic University (1996). He became the deputy director of the Institute of Economics at the National Academy of Sciences of Belarus in 1997. He was the Dean of Faculty of Economics at the European Humanities University (2002–2004), and the Dean of Faculty of Economics and Management at Yanka Kupala State University of Grodno (2011–2015). He is the author of numerous books and articles (more than 180). His research interests include: regional and urban economic development, policies in different countries, spatial context of social and economic trends in transition economies, locations of production, industrial economics, local labor markets, local government, and self-government. In 1995, Vladimir Fateyev was awarded the prize of the National Academy of Sciences of Belarus for the best collection of papers on Regional Development and Policies.

Andrei Filiptsou is a PhD holder in Economics and Associate Professor at Belarus State Economic University. He graduated from the Department of Economics at the Belarusian State Agricultural Academy and obtained a PhD in Economics. Since 2007, he has been working at Belarus State Economic University. He delivers courses in Microeconomics, Macroeconomics, and Industrial policy. His area of specialization is industrial policy and agrarian policy.

Veronika Garkavaya is the Head of the Center for Scientific Research at Belarus State Economic University. In 2015, she defended her thesis and obtained a PhD degree in Economics in National Economy Management (Specialization: Economics, Organization and Management of Enterprises, Industries, and Complexes). She is the author of more than 70 publications, and her areas of research interests include: sustainable development, business planning, government regulation (forecasting, planning) of regional development, socioeconomic development, and regional regulation.

Volha Holubava holds a PhD in Economics. She is an Associate Professor and the Head of the Department of Economics, Construction Organization and Real Estate Management at the Belarusian National Technical University, UNDP National expert, and a council member of the Belarusian National Technical University. She is the Head of the Scientific and Technical Section “Construction” of the State advisory council “Construction” of the State Committee on Science and Technology of the Republic of Belarus.

She is a member of the academic council on JSC Scientific Research Institute “Stroyekonomika.” Her research work is focused on project management, pricing in construction, smart buildings, and assessment of efficiency of construction production.

Irina Karachun is the Head of the Corporate Finance Department and the head of the Faculty of Economics at Belarusian State University. She has more than 15 years of teaching experience and holds a PhD in Economics. She serves as an editorial board member of the Journal of the Belarusian State University and is a member of the Belarusian Association of Statistics. Her articles were published in respected academic journals. It's worth mentioning the following journals: Journal of the Belarusian State University, Economic forecasting, Economics modeling, Bank Herald, Vesnik of Yanka Kupala State University of Grodno, Science and Innovation, New Economy, etc. Her current research interests include: fintech, finance asset valuation, data science, and mathematical modeling.

Maryna Karpitskaya holds a PhD in Economics, and is the Dean of Faculty of Economics and Management at Yanka Kupala State University of Grodno. She graduated from Belarus State Economic University and completed her PhD in “Finance, Money Circulation and Credit”. Maryna Karpitskaya has 133 publications (including foreign publications), 9 monographs (collective), and 7 textbooks. She is the main author and one of the main editors of the monograph, Social innovation in the regional context (2018). Her main research interests include: finance, insurance, and social innovations. The outcomes of her research projects are used by the local authorities, financial institutions that provide support for entrepreneurs, insurance companies, and universities of the Republic of Belarus. She is a deputy editor of the journal Vesnik of Yanka Kupala State University of Grodno. Series 5. Economics and is a member of the international editorial boards of scientific journals Optimum (Poland) and Management and Social Innovations (Lithuania). She participated in international research projects, Erasmus+ programs, and research trainings delivered in Lithuania, Poland, and Russia.

Tatsiana Khvalko is graduate student from the Economic Research Institute of the Ministry of Economy. She holds a Master of Science Degree in Economics and National Economy Management and now works in the Ministry of Economy of the Republic of Belarus. She is responsible for the field of innovative development of economy, development of innovative entrepreneurship and infrastructure, and supports a startup movement, implementation of cluster model of development of economy. Her current research interests include: forming of global chains of value added and their influence on structure of national economy, strategies of development for global production systems, sources and factors of the balanced economic growth, and change of structure of economy in the conditions of innovative development.

Alena Kireeva is the first Vice-Rector at Belarus State Economic University. She holds a Doctor of Science (DSc) Degree in Economics, is a Professor and a Chief Scientific Officer at the Laboratory of Current Problems of Taxation and Tax Policy (Minsk, Belarus).

Her research interests include: international taxation, tax administrations, economic growth, sustainable development, globalization, and developing countries. She is a guest editor for the Belarusian Economic Journal. She has more than 300 publications in local and foreign peer-reviewed journals and books.

Natallia Kireyenka is the Deputy Research Director at the Republican Scientific Unitary Enterprise, “The Institute of System Researches in Agroindustrial Complex of the National Academy of Sciences of Belarus.” She has a PhD in Economics and is an Associate Professor. She is a regional expert on agricultural trade policy in Eastern Europe and Asia at the Food and Agriculture Organization of the United Nations (FAO). She is a member of the Advisory Committee on the Agroindustrial Complex of the Eurasian Economic Commission, national expert on the project “Assistance to the Government of the Republic of Belarus in Accession to the WTO through Strengthening Expert and Institutional Potential (Phase 5)”. For over 20 years, she has been engaged in the following research areas: food security at the global and national levels, improving sales, marketing and logistics activities in the agroindustrial complex, and research on agricultural and trade policy issues. She is one of the contributors of the Doctrine for the National Food Security of the Republic of Belarus until 2030 (Resolution of the Council of Ministers of the Republic of Belarus No. 962 of December 15, 2017). She has published review articles on agricultural trade in Russian, Ukrainian, and Belarusian Journals for the Food and Agriculture Organization of the United Nations Organization in 2015–2018.

Anna Koroleva is the Dean of Faculty of Economics and Associate Professor in the Department of Analytical Economy and Econometrics at Belarusian State University. She holds a PhD in Mathematics (Special Functions). Her field of scientific interests includes: application of special function in economy and logistics. She has over 20 years' experience in teaching, has interned and lectured at universities in Poland and England, and was a contributor to several international grants. She is the author of numerous scientific articles that were published in Belarusian and international journals, and is a contributor to the monography Belarusian Transport Logistic: Current State and Future Perspectives.

Alexey Korotkevich is the Head of Department of Banking Economics of the Belarusian State University. He holds a PhD in Economics and is an Associate Professor. He is a member of the Faculty and BSU Councils, secretary of the PhD Committee for preliminary examination of dissertations at the Faculty of Economics. He is a founder of the students business projects competition “Business Idea” and the chair of the International conference “Banking Business and Financial Economics: Global Trends and Development Prospects” that is annually held with leading banks of Belarus and hosted by BSU. He has published more than 160 educational and scientific works including 3 textbooks that were approved by the Ministry of Education of Belarus, 7 monographs, and more than 40 research articles.

A short list of journals where his articles are published include: Journal of the Belarusian State University (Series in Economics), Banking Bulletin, New Economy, Belarusian Economic Journal, and others. His research interests include: modeling of economic systems, forecasting and economic planning, finance and financial management, investment and innovation, etc. He is a member of the Expert Council at Minsk City Technopark. He is the Laureate of the research contest of the Gomel Executive Committee and Presidential Fellow for his contribution to improving the efficiency of innovation development in Belarus.

Irina Loukianova is an Associate Professor of the Department of Tax and Taxation and the Head of the Laboratory of Current Problems of Taxation and Tax Policy that was founded by Belarus State Economic University. She teaches “Theory of Taxation,” “Tax law of Belarus,” and related subjects for undergraduate and graduate students. In addition to teaching, Irina Loukianova is actively engaged in scientific research for the Tax and Duties Ministry of the Republic of Belarus. Her field of research is taxation, sustainable development, and tax strategy of modern state. She is the author or coauthor of several monographies, textbooks, and numerous research papers. She has participated in many international conferences and seminars.

Dzmitry Marushka is the Dean of Faculty of Digital Economy at Belarus State Economic University. He received his PhD from Belarus State Economic University. He is an Associate Professor, founder of the International BizTech StartUp Contest, and worked as a postdoctoral researcher at the Department of Management and Engineering at Linköping University (Sweden). He is a Scholar of Swedish Institute, Scholar of the President of the Republic of Belarus, and Laureate of the National Academy of Sciences of Belarus. He has published various articles in research journals, and his research area involves: digital business and entrepreneurship, innovation and transformation, information systems development from the management perspective. He delivers the courses “Entrepreneurship and ICT Ventures,” “Management Information Systems,” and “Software Engineering” at Belarus State Economic University.

Roman D. Osipov is a managing partner and a member of the Board of the “UNITER” Investment Company and has more than 15 years of experience in investment and financial advisory. Mr Osipov advised on numerous M&A projects in Belarus: acquisition and investments into one of the Belarusian banks, entrance to the Belarusian market by the Delta Bank owner (Ukraine), acquisition of banks and insurance companies, attraction of Axa company (France) into the capital of a Belarusian insurance company, granting investments of the largest pump manufacturer in Russia “GMC Group” to JSC “Plant Promburvod” as well as large-scale real estate development projects. Roman Osipov also holds responsibility for relations with international financial institutions such as EBRD, World Bank, Nordic Investment Bank, DEG-Invest. A number of advisory assignments for EBRD and World Bank were executed under his leadership, in particular: establishment of microfinance bank in Belarus, advising EBRD as a shareholder of the Belarusian company “Milavitsa,” advising EBRD and Nordic Investment Bank on investment projects on water utilities development in Vitebsk, Brest, and other cities.

Uladzimir Parkhimenka is the Head of the Department of Economics at Belarusian State University of Informatics and Radioelectronics. He received his PhD in Economics from Belarus State Economic University in 2009. His main research interests include: algorithmic marketing, data mining, and predictive analytics in ecommerce, consumer behavior, and strategic decision-making in business.

Alla Pranevich has been involved in the research and teaching of International Economy, Transnationalization, and International Economic Integration since completing her PhD studies at Belarus State Economic University. Her research specializes on examining factors influencing problems of competitiveness of countries, competition policy, and antitrust regulation in the international economy. She holds a Doctor of Science (DSc) Degree in Economics (2009), is a Professor of Economics (2014), and Dean at the School of International Economic Relations at Belarus State Economic University.

Vladimir Shimov is a famous Belarusian Researcher and expert in the fields of macroeconomics, forecasting the development of complex socioeconomic systems, regional economy, problems of production efficiency, management, and knowledge economy methodology. He graduated from the Moscow State University in 1972, obtained a degree of Candidate of Economic Sciences in 1976, and obtained a Doctor of Science (DSc) Degree in Economics in 1988. Professor Vladimir Shimov worked as a Deputy Director at the Economic Research Institute of the Ministry of Economy of the Republic of Belarus (1989–1995). He held the position of Minister of Economy in the Republic of Belarus (1996–2002). Under his leadership, a number of initiatives and programs were introduced and implemented. This list includes, among others, the first National Sustainable Development Strategy of the Republic of Belarus (1997); National Human Development Reports (1997–2000, 2003, 2006); Programs of Social and Economic Development of the Republic of Belarus for 1996–2000 and 2001–2005. From 2002 to 2019 Professor Vladimir Shimov worked as Rector of Belarus State Economic University. He has been published extensively as an author of over 210 scientific and educational papers, including 7 monographs in highly regarded Belarusian and foreign scientific journals. The textbook National Economy of Belarus edited by Professor Vladimir Shimov, first published in 2005, has gone through multiple editions.

Professor Vladimir Shimov has successfully supervised 11 PhD candidates and advised and mentored 6 doctoral dissertations. Under his guidance, the university formed the Scientific and Pedagogical School of the National Economy. He is the founder and editor-in-chief of the Belarusian Economic Journal that has been published since 1997. Professor Vladimir Shimov was awarded honorary doctorate and professor titles by eight foreign and domestic universities and research organizations. He is a member of several international academies. For many years of fruitful scientific and pedagogical activity, Professor Vladimir Shimov was awarded the Order of Honor to the Republic of Belarus and the Order of the Fatherland of the III degree. He is an honored education worker of the Republic of Belarus.

Olga Shimova is a Professor of Economics, founder of the Department of Environmental Economics at Belarus State Economic University. She was granted the honorary title of Honored Worker of Education of the Republic of Belarus. She has published over 250 scientific and methodological works, including monographs, articles, textbooks, and teaching aids including publications abroad in (Germany, Poland, Russia, Ukraine, Finland, etc.). She has extensive experience in executing research projects in the field of environmental economics and sustainable socioeconomic development in accordance with the university's research plans, has gotten grants financed by the Belarusian Republican Foundation for Fundamental Research, TACIS, UNDP, World Bank, and TEMPUS. She has participated in project execution supported by the International Organizations: National Human Development Report Preparation (2000, 2003, 2005) under aegis of UNDP; elaboration of materials for training aids “World and Belarus” under aegis of the International Bank of Reconstruction and Development (2001); Project 158739– TEMPUS–1– 2009– DE – TEMPUS – JPHES (WENET) “The Network of Electronic Distance Learning for Training in Tourism” (2009–2012); International Educational Project of the European Union “Baltic University Programme” (from 2008 to the present).

Aksana Shkutsko obtained her PhD in Economics and is currently working as an Associate Professor for the Department of International Economy at Belarus State Economic University. Her research area covers: foreign economic policy, trade diplomacy, foreign trade policy, world market research of goods and services.

Vyacheslav Shutsilin is working as the Rector of Belarus State Economic University and Professor at the Department of Industrial Marketing and Communications. He has more than 25 years of teaching experience and substantial practical experience in consulting.

His research interests are management science, industrial and structuring policy, industry competition theory, and marketing. Professor Vyacheslav Shutsilin has published more than 70 articles in different refereed domestic and international journals. He is supervising 3 PhD students and has supervised more than 20 MSc students. Professor Vyacheslav Shutsilin was successfully awarded with a Doctor of Science (DSc) Degree from Higher Attestation Commission of the Republic of Belarus.

Ludmila Stefanovich holds a Doctor of Science (DSc) Degree in Economics and is a Professor at the Belarusian State University. She has extensive practical experience from the National Bank of the Republic of Belarus and 20 years of teaching experience. Her research interests include: development strategies of banks, development of business areas of banks, corporate governance, and analysis of banking activities, bank accounting, bank financial reporting, international financial reporting standards. She is the author of more than 150 scientific and practical publications on banking in Belarusian and international journals.

Aliaksandr I. Tarasionak is a Vice Rector at Belarus State Economic University. He holds a Doctor of Science (DSc) Degree and is a Professor at the Department of Economics and Management of the Tourism Industry. He has more than 25 years of research and teaching experience. Aliaksandr Tarasionak has obtained his DSc in Economics and Management of the National Economy (BSEU, 2018). He holds a PhD in Social, Economic, and Political Geography from the Belarusian State University (BSU, 2003). He is a project manager for the National Research Project, “Strategy of National Tourism Development in Belarus until 2035” and an ecotourism advisor at ongoing USAID/UNDP Project “Local Entrepreneurship and Economic Development”. Aliaksandr Tarasionak has more than 100 publications. More than 30 of his scholarly articles have been published in reputable international and local academic journals. His current research interests include: geo-economics of tourism, sustainable tourism, destination marketing, destination management, management of ecotourism.

Alena Vankevich holds a Doctor of Science (DSc) degree, is a Professor, and works as a Vice-Rector for Science and Research at Vitebsk State Technological University. She has more than 30 years of scientific experience. She is an Honorary Doctor of the University of Daugavpils (Latvia). During 2002–2013 she participated in five international joint projects for the United Nations Development Programme (UNDP) and the Ministry of Labor and Social Protection of the Republic of Belarus as a National Labor Market Expert. She took part in the implementation of the following international projects: “Entrepreneurship and innovation as factors of economic development of the regions of Central and Eastern Europe” funded by the Ministry of Science and Higher Education of Poland (2010), “Case of the Belarusian Business: Development and Introduction of Business Education” (supported by USAID), “Leadership and Change Management in Higher Education” (TEMPUS). She was invited to participate in the projects under Eastern Partnership Platform as a national labor market expert by ETF in 2015–2019. She has more than 300 scientific publications (8 of them are monographs) that are published in Russia, Belarus, Czech Republic, Poland, Latvia, and Lithuania. Her articles were published in reputable international and local academic journals (Belarusian Economic Journal, Journal of Business Economics and Management, Filosofija, Sociologija (Scopus), etc.).

She coordinates the activities of the Science and Technology Park of Vitebsk State Technological University (NTPVSTU) that was established in 2010.

Her current research interests include: practical aspects of the formation of an entrepreneurial university, development of the university's science and technology park, as well as directions of educational and the labor market development.

Hanna Vashchyla is a Senior Lecturer for the MBA program at Belarus State Economic University and School of Business of Belarusian State University. She is a certified business analyst and a certified project manager in the IT industry. She has practical experience in working at IBA Group and Wargaming companies in Minsk. Her research focus is supply chain management, logistics, Internet marketing, and eCommerce.

Yuliya Vashkevich is an Assistant Professor at Belarus State Economic University. She graduated from the Department of World Economy, obtained her Master's Degree, and completed her postgraduate studies. She delivers courses in “‘World Economy”, “International Economics”, and “International Trade Theory and Policy.” Her research interests include: international trade and trade policy.

Stanislau Vysotski is an Assistant Professor for the Department of Statistics at Belarus State Economic University. His research interests are related to regional and industry statistics, econometric models with applications to economic sciences. He has been a member of the Belarusian Statistics Association (BSA) since 2014.

Tatsiana Zoryna graduated from Belarus State Economic University in 1996. She received her PhD in Economics and National Economy Management in 2007 and has a Doctor of Science (DSc) Degree. Currently, she holds the position Head of the Department of Business Economics and Law at Belarus State Economic University and works as a Chief Researcher at the Institute of Power Engineering at the National Academy of Sciences of Belarus. She is a member of the International Association for Energy Economics and a foreign member of the Engineering Academy of Armenia. She has published more than 150 research articles and 9 study guides. On average, more than 10 articles were published by internationally peer-reviewed journals. She is a member of the editorial boards of Russian scientific journal, “Regional Economics and Management.”

Introduction to Entrepreneurship and Global Economic Growth Series

As we all know, economic growth is a fundamental condition for fostering development. However, growth alone does not guarantee the social well-being and the overall sustainability of an economy. Today, global growth is facing a confluence of perils, opportunities, and uncertainty. We have observed the effects brought upon by climate change, the manifestation of the fourth industrial revolution, and the geopolitical conflicts rooted in the past and brewed by new dynamics.

Many variables could severely disrupt economic activity, existing order, and inflict significant change on long-term development prospects on a global level. In light of such enormous economic and social challenges, it is almost worth it for us to revisit the fundamental question regarding economics: what, how, and for whom to produce? In an approach by authoritative command, market, or mixed?

With this economic complexity in mind, it is always exciting starting a new editorial journey, especially today that shows global economic growth and fast-changing truths. Entrepreneurship and Global Economic Growth, Emerald's Innovative Global Economic Growth Book Series, reflects the need to present new examinations of old and emerging economic questions.

One of the most debated topics in the field of development economics is: why some countries are able to get ahead and others are poorer and lagging? The institution readiness has long been argued as a fundamental impetus factor. How should a government enact its power for economic growth? What is the right mix of policy that can create an enabling environment breeding growth? In addition to institutions, what about hard infrastructure, the quality of human capital, and cultural condition? What are the main factors that play a conducive role in shaping the ability of an economy to absorb technology and knowledge, to foster entrepreneurship spirit, to build comparative advantage through trade and financial connectivity?

Today, the advanced nations coming from the dawn of the first industrial revolution are experiencing a slowdown. The emerging world's growth skyrocketed during the past decades despite ongoing hindrances popping up here and there. The growth stories of emerging markets, especially China, are attracting considerable research attention. What has been done right in these nations? What were the enabling factors? Many emerging markets exhibit the potential on many fronts of becoming more competitive in the long term; however, their prosperity depends on enabling factors that drive up productivity and ensure fair income redistribution.

A unique way of looking at countries, which have successfully escaped the middle-income traps, is to examine the disruptive business and financial cycles in which they have navigated through. This inspires us to step up efforts for a growth model that evaluates the breaking through factors including innovation, trade, or other elements revolutionizing their productivity. The global transition to Industry 4.0 is an essential novelty not fully understood, and this roots to a lot of inconsistencies today.

As all of the above has been stated, I cannot stress enough that a global economic system today is fraught under the impact of shifting global geopolitical dynamics. My current teaching at Harvard University on the emerging economies that enables a constant interaction with students from all around the world, the rationale of setting up a new book series was to cover the current and future engines of economic growth in several countries and regions. I can thoroughly state that this new series is reflecting what I teach at Harvard, where I instruct on the Economics of Emerging Markets and the Political Economy of Russia and China.

This book series shall include the most appealing economic growth stories coming out from the emerging and transitional markets. The goal of this series is to first identify a nation's social, economic, and financial systems and their economic prospects. This book series aims to create a suitable platform for authors to share knowledge and expertise to our prospective readers, for understanding about the current dynamic, the future potential and the past development stories of economic growth.

Entrepreneurship and Global Economic Growth's books discuss different dimensions of the changing economic and industrial contexts and examine in detail how to accelerate action to foster growth, development, and resilience. This series puts forward significant new research in the global economic growth field, opening discussions regarding new topics, and updating existing literature. All books in the series will be valuable sources of knowledge and information on the specifics in stimulating the processes of growth and development. Continuously changing economic systems and the perception of the context of values also changes, the finances are to build sustainable value for stakeholders. New grounds for growth must be designed in terms of considering supportive decisions and ultimate actions. Breaking economic, social, and productive realities call for an original editorial approach about understanding economic growth forces that countries and industries could adopt. Not least, the high demand for innovative technologies that are stimulating the adoption of hi-tech in productive systems.

As we are currently in the process of rounding out the series publication lineup for the next volumes, the sequence of titles must all tie perfectly together. They will consist of experts' knowledge and exhaustive portrayal of the impact of economic growth and mark a milestone in the research field. Even though the findings are specific to a single country or industry, as the series will evolve further, readers will be able to get more significant details of particular cases and draw definite conclusions that apply to the realm of economic growth.

Our goal is not only to examine the factors contributing to the success or failure of the economic stories but also to give a touch of extraordinary vision, to be forward-looking, and to be engaging for the readers in the academic and general public alike. We strive to enrich the students, researchers, and practitioners who deal with modeling economic growth, both from theoretical and functional viewpoints.

Bruno S. Sergi

Cambridge, MA, USA

August 5, 2019

Introduction to Modeling Economic Growth in Contemporary Belarus

Modeling Economic Growth in Contemporary Belarus—the first volume in the series—aims to a peculiar post-Soviet country. Since 1991, the eyes of the world have been on the economic growth and development of the states that formerly made up the Soviet Union. Looking at Belarus' economic growth and prospects, this edited collection analyzes why the country is viewed ahead of other neighbor states in terms of human development. Looking across both medium- and long-term economic growth, this volume brings together a cast of expert contributors to analyze the foreign and domestic policies that affect Belarus's economy. The country is economically dependent on Russia and is attempting difficult emancipation by turning to China, which has sensed the ongoing underground crisis by proposing itself with the tried and tested diplomacy of the yuan and the stadiums. Across the 20 chapters included in the book, the contributors explore the largest industries in Belarus, including the financial, technology, tourism, and energy industries – a contradiction of the sectoral structure of the economy of Belarus, which was traditionally specialized in agriculture, and then successfully conducted industrialization and post-industrialization in the early twenty-first century. As of now, the industry and service sectors dominate its economy. Belarus made an “economic wonder,” which is remarkably interesting for modern economic science and practice. The experience of this post-Soviet country could be useful for other countries – primarily, those of the Commonwealth in Independent States.

With chapters on foreign investment, exports and imports, and regional policy, this is a text that looks across the whole breadth of the economy. A contradiction of international economic activities of Belarus is analyzed. In the two recent decades, it conducted globalization of its economy; despite this, however, the social environment is peculiar for low susceptibility to innovations. Belarusian entrepreneurship is more apt to domestic markets and markets of the region. The study also takes into account the environmental costs and consequences of economic growth of the Republic of Belarus for its environment. The economic growth issues of Belarus are analyzed from the standpoint of sustainability and the prospects for its improvement are determined.

The analysis of the main stages of the Belarusian economy's development from 2000 to 2018 has been carried out, and the main factors and limitations of economic growth have been considered. The known models of economic growth applied to the Belarusian economy are shown. It is grounded that the correct use of endogenous growth models based on production functions is hampered by the significant influence of exogenous factors on the Belarusian economy, and it is preferable to use models based on the balance of payments under these conditions. Three scenarios for the growth of the Belarusian economy until 2025 are analyzed: baseline, adverse, and target. The desired structural changes are identified for the implementation of the target scenario.

The book considers world experience of the innovation sector transformation and describes results of the Belarusian innovation infrastructure development and transformation issues in the national economy. Suggestions on the ways and mechanisms focused on the efficiency improvement of innovation sector transformation based on clusters and innovation networks in Belarus are presented.

The establishment of the market model of financially stable socioeconomic development of the Republic of Belarus and improvement of the quality of life are inseparably linked with the development of the social innovation sphere and involvement of business in performing state-level strategic tasks. Despite the existence of a certain mechanism for developing public–private partnerships and implementing social innovation in international practice, the mechanical transfer of these statements is impossible due to the ongoing processes of cross-border integration in the Republic of Belarus.

The goals and objectives, subjects and objects, as well as the tools used by the Belarusian public authorities in the regional policy formation and implementation nationwide have been identified.

The promising trends for its improvement pursued in Belarus have been formulated and consider the foreign experience and the paradigm shift of regional development policy observed in the OECD member countries.

Considerable attention is paid to the analysis of industrial policy in the Republic of Belarus, its goals and instruments, as well as regulations. It is noted that the role of the government in regulating the industrial structure of the economy is significant.

Conducted analyses of the international economic specialization in the Republic of Belarus are based on the balance of payments and national statistics data by type of economic activity. It also demonstrates application of the customized Trade in value added methodology for analysis of the international economic specialization of Belarus. The methodology has been developed for the calculation of selected key figures for 2011–2016. Using “Input–Output” tables to measure intersectoral relationships enabled assessment of international trade not only in terms of prices of goods and services, but in terms of value added of each product. The analysis shows that the most important industries of the international economic specialization of Belarus are oil products, chemical products, foodstuffs, equipment and vehicles, transport services, and computer services. Domestic value-added share of exports is about 60%, which corresponds to the level of such countries of Central and Eastern Europe as the Czech Republic, Slovakia, Estonia, Poland. Consequently, import intensity of exports accounts for about 40%.

In the book the features of foreign economic policy of the Republic of Belarus are identified and determined by its multidirectional external economic relations and participation in the processes of international economic integration.

It is noted that in the last decade there was an active search for opportunities to shift the focus in foreign economic policy, including geographic redirection of trade and investment flows, intensification of the search for a “niche” and new ways of incorporating into the world economic relations system, progress toward the liberalization of trade relations by means of multilateral and bilateral interaction formats.

Assessment of the motivation for the boost of the foreign economic policy of the Republic of Belarus is presented in the context of an aggravated geopolitical situation and the growth of protectionist tendencies, identifying obstacles of their implementation.

The activities of foreign transnational corporations and the factors hindering the internationalization of business activity of domestic enterprises have been studied in detail. The priority areas of government in activities to promote the attraction of FDI to the Republic of Belarus have been analyzed.

Descriptions for ensuring financial stability policy are presented in the book. The main goal of the research is to determine the role and policy of the National (Central) Bank, which was called up, together with the Government, to ensure financial stability in the Republic of Belarus. The research provided a summary of the state of the country's financial sector and presented the achievements of the National Bank and state institutions for ensuring financial stability.

The development of technology in the financial sector has led to the formation of a new financial and technological ecosystem. Revolutionary innovations in the field of financial services arise in the interaction of both organizations among themselves and organizations with customers. In the interaction between organizations, new companies appear that develop and offer technologies in the field of payment services at a lower price and on more favorable terms, unlike financial organizations.

The book also covers implementation of tax reforms in Belarus. It analyzes the place of tax instruments in economic growth and investigates the strategic direction of tax reforms. The actual tax policy in Belarus is determined by the requirements of the national strategy of sustainable development which aims to ensure a stable financial basis for the development of society, economy, and environmental management. As a theoretical and practical tool for improving the quality of the tax system through the modernization of the incentives system, the concept of tax expenditures as a part of the budget process was investigated.

The current state and development of the education system in Belarus are considered. It includes preschool, general secondary, vocational, secondary special and higher education, as well as supplementary education for children and further education for adults, including nonformal education. The role of universities in creating the Belarus National Innovation System is shown. The main direction of improving the activities of higher education institutions based on the “University 3.0” model is considered. The Belarussian universities actively develop their innovation infrastructure (they form their own training and research centers, research and production laboratories, centers of cooperation with enterprises, career development centers for students and startup schools). During the last years, 14 sectoral laboratories and 6 science technological parks were established at Belarusian universities. Belarusian universities, while determining their own development trajectory, are guided by their main mission – to promote innovation and human capital formation – for the sustainable social and economic development of the country.

Description of development and main achievements of the Belarusian IT sector which is today considered by experts to be the most promising and progressive part of the national economy is provided. Special attention to the analysis is given to the governmental policy to stimulate information and communication technology sector growth through special legal regulations (e.g., High-Tech Park as favorable business environment for IT business since 2005) and efforts to promote transition of Belarus to the “IT country” through a number of national programs and legislative instruments, including the President's Decree on Digital Economy Development (2017). Main scenarios of the Belarusian IT sector future development are proposed and analyzed, including risks and opportunities on such four paths as being the global IT development outsourcing provider; exponentially growing their own software product companies; becoming the regional or even global cryptocurrency hub; integrating IT in all parts of the domestic economy in order to build Industry 4.0 and digital society.

Authors of the book have defined prerequisites for the formation and features for the development of the National Strategy for Sustainable Development of the Republic of Belarus, which is a complex of scientifically grounded directions for solving national problems that are closely interrelated with world development. It is also noted that the green economy is becoming a new engine of growth, contributes to the creation of decent jobs, and is a vital factor in the eradication of poverty and destitution. The main factors of the transition to a green economy and the main directions of its development in the Republic of Belarus are outlined. The features of the concept of circular economy and the formation of business models for its implementation are analyzed. The study concluded that the concept of sustainable development is a theoretical model for the desired future of mankind, and the green and circular economies provide very specific projects for the practical implementation of the sustainable development paradigm.

Characteristics of the fuel and energy sector for the Republic of Belarus, its organizational structure, the current state of development of power, gas, peat, and oil industries are given. The energy balance of the country and the main power streams are analyzed. Characteristics of key indicators of energy security is presented. The main threats connected with ensuring energy security in the Republic of Belarus are allocated. In particular, the characteristics of the directions of reducing the energy dependence of the Republic of Belarus on the supply of natural gas from the Russian Federation is presented. Dynamics of power consumption of GDP is analyzed. Potential use of renewable and local energy resources, complexity, and prospect of further integration into the Belarusian power system are considered. The prospects of development of nuclear power of the Republic of Belarus are described. The advantages and disadvantages connected with input of the Belarusian nuclear power plant in operation are designated. The perspective directions for sustainable power development of the Republic of Belarus untill 2035 are revealed.

Analysis of the economic advantage of a geographical location of the Republic of Belarus is presented. Thus, effects of each of the directions of transportations are analyzed and approaches to assessment of their cost efficiency are formulated. The factors that influence the export of transport services as well as the trends of development of the transport sector of Belarus are defined. The main directions and ways of improvement of logistics in the Republic of Belarus are described.

The development of the tourism and the hospitality industry in Belarus has a long-term positive trend. This process is uneven, and the growth rate is below the global average. To stimulate the development of the tourism and hospitality industry, measures are being taken in the form of creating visa-free zones, stimulating business activity, and holding major sport events. The potential for growth in this industry has not yet been exhausted. The assessment of the competitiveness of Belarus in comparison with the neighboring countries showed that the development of the tourism and hospitality industry requires improvement of the business environment, increase of openness for tourists, strengthening of country marketing in the world tourism market.

The agro-industrial complex of Belarus is one of the priority sectors of the national economy, which performs economic, social, environmental, and cultural functions. The main trends in the development of the industry on modern business conditions are presented in the section. The goals, objectives, and mechanisms for the implementation of the state programs of development of the AIC are analyzed. The directions and measures of state support for agriculture are reasonable, and the actual structure of the “green box” and “yellow box” measures are presented. Approaches and mechanisms to ensure national food security are highlighted in light of new conditions, goals, and objectives. The results of foreign trade in agricultural products of Belarus and rural development and social infrastructure of the village are presented. Scenarios for the development of agriculture in Belarus, taking into account national priorities in the field of agricultural production, the domestic consumer market, foreign trade, have been developed.

Informatization of all human activities is reflected in areas of the economy of the Republic of Belarus. Although the concept of “smart” cities is not formulated as a standard or regulation for any city in Belarus, the main indicators of urban services and the quality of life indicate a high degree of territorial development in the direction of automating the urban environment management, energy saving, and improving social services quality for the population. Due to high proportion of the population living in the cities of the Republic of Belarus, the development and implementation of the smart city concept both for the city of Minsk and other cities will improve the quality of life of almost 80% of the population.

The positioning of Belarus in the international context of socioeconomic development based on an assessment of the country's dynamics in world rankings is discussed. The country's presence is recognized in the world rankings and its holding high positions in them is an obvious advantage for achieving a favorable investment image. Ratings characterize the country's comparative position at the international level in several areas: from credit capacity to human capital development.

The position of the Republic of Belarus is organized in several international comparisons, such as Human Development Index, Doing Business, ICT Development Index, Global Innovation Index, Sustainable Development Goals Index, Corruption Perceptions Index, Rule of Law Index, Worldwide Governance Indicators, and others have been analyzed.

The research findings show that the strongest aspects of the socioeconomic development of Belarus are in place due to the high educational level of the human capital development, gender equality, and the implementation of the UN sustainable development goals.

The well-known book's contributors suggest factors to increase the growth of Belarus's economy, such as launching smart cities, expanding logistic services and the tourism and hospitality industry, and the modernization of the agrarian sector. The book looks for an answer to the question of how Belarus could preserve the focus on national socioeconomic system development in the age of globalization concurrently showing a high quality of population's life. For students and researchers in political economy, or international economics, this is a vital text exploring an important, but the underrepresented, economy.

Bruno S. Sergi

Cambridge, MA, USA

August 5, 2019

Acknowledgments

First and foremost, I would like to express my special thanks of gratitude to Charlotte Maiorana and Charlie Wilson, both at Emerald Publishing, for their incredibly supportive assistance and expert editorial supervision. They gave me the excellent opportunity to put the initial plan into a definitive book series: they gave me different ideas in making this project unique. From the first step of the book series proposal submission throughout the final acceptance and the extensive work on this first volume about Belarus' economic growth, Emerald Publishing's editorial staff has been incredibly responsive, genuinely prone to give valuable comments and insights. I would rather say initiative-taking from the start to the final production stage of Volume 1 in Entrepreneurship and Global Economic Growth. Also, I would like to thank the attentive copyediting and proofreading people at Emerald Publishing, who have carefully managed the production of this first book, and Piper DeLo for her support throughout the last part of this research work. Finally, my thanks go to all the people who have supported me to complete the volume directly or indirectly.

Bruno S. Sergi

Cambridge, MA, USA

August 5, 2019