Belarusian Economic Research and Outreach Center


One of the main BEROC goals is generating and spreading of new academic and policy knowledge on problems, tendencies and development of Belarusian economy. Academic and policy research aimed at the development of strategy encouraging economic growth and quality improvement of economic policy in Belarus.

Politicized Trade: What Drives Withdrawal of Trade Preferences?

We examine if a trade policy tool designed for fostering development is used strategically. We study this question using GSP country eligibility reviews regarding worker rights violations.

Economic Outlook - Second Quarter 2017

BEROC presents the Economic Outlook - the Second Quarter 2017.

Foreign Investment: Measures to Improve the Investment Climate

In 2016, potential investors’ interest in Belarus continued to decline. The problem of access to financing in the form of loans was growing, affecting the possibility of floating sovereign Eurobonds internationally. There were signs that the government finally realized that the country needed a better image to foster investment and issued a number of bills to facilitate raising funds.

FREE Policy Brief: Fiscal Redistribution in Belarus: What Works and What Doesn’t?

Committee assignments and the value of corporate political connections: evidence from legislators' sudden deaths

We present new causal evidence that political connections to U.S. legislators are valuable for individual firms. We also estimate that almost all of the value generated by connections to the U.S. legislators can be attributed to their influence over and above their formal committee assignments in Congress.

The Trade Effect of GSP Removal: Evidence from Belarus

Under the Generalized Scheme of Preferences (GSP), rich countries grant unilateral trade preferences to developing countries. We study the EU’s withdrawal of GSP preferences from Belarus in 2007 to understand how the GSP a ects export patterns. The withdrawal caused a signi cant drop in trade for a ected products (26%-29% trade decline) and some trade reduction at the extensive margin. However, there is little evidence of a GSP e ect on total trade. This is due to the fact that the main exports of Belarus were not eligible for the GSP program.

 Anastasia Luzgina, Ilze Vaivode, Janis Volberts, Dr. Erkki Laukkanen, Dr. Ilmari Larjavaara

Corporate Engagement in Fighting Corruption and Tax Evasion in Construction Sector

This is the Final Report for the project Corporate Engagement in Fighting Corruption and Tax Evasion. The project, financed by the Nordic Council of Ministers, includes three partners: Transparency International Latvia (Delna, host organisation), Transparency International Finland and BEROC, a research institute in Minsk, Belarus. The aim is to engage entrepreneurs in fighting corruption and tax evasion, with a focus on municipal construction procurements in Latvia, Belarus and Finland.

Economic Outlook - First Quarter 2017

BEROC presents the next issue of Economic Outlook - First Quarter 2017

 Kateryna Bornukova,  Gleb Shymanovich, Alexander Chubrik

Fiscal Incidence in Belarus: A Commitment to Equity Analysis

The paper employs the Commitment to Equity (CEQ) framework to present a first attempt at a comprehensive fiscal incidence analysis for Belarus, encompassing both the revenue and expenditures components of the fiscal system, including direct and indirect taxes, as well as direct, indirect and in-kind transfers. The analysis reveals that fiscal policies in Belarus effectively redistribute income from the top to the bottom of the income distribution. Direct transfers, in particular pensions, are the most equalizing and pro-poor of the fiscal interventions – direct transfers and direct taxes lower the national poverty headcount by 17 percentage points and lower the Gini index of inequality from 0.407 to 0.267. Some of the indirect taxes, on the other hand, are regressive, and indirect transfers – poorly targeted, such that the effect of these components of the fiscal system is not equalizing. Finally, the cost-efficiency of different parts of the fiscal system in Belarus varies considerably. Unemployment benefits, pensions and child benefits are found to be cost-efficient, while indirect subsidies are highly cost-inefficient. The analysis points towards possible reforms that would allow to reduce poverty and inequality more efficiently.

 Aleh Mazol, Sergey Mazol

Does good corporate governance supports economic development: the role of CG in increasing stock market value, fighting corruption and attracting FDI

We examine the empirical relationship between the quality of corporate governance practices and economic development in an unbalanced panel of 185 countries covering 2010 through 2015. We find that corporate governance is positively associated with the FDI inflow and market capitalization, and negatively associated with the public sector employment in low-income countries. Our results also suggest that corporate governance is negatively correlated with corruption in the high-income countries. Finally, we establish the unidirectional causality running from corporate governance to economic development, and find no evidence of causal effect of economic development on corporate governance. Therefore, our results suggest that the policy makers should in the first place address the institutional transition of the countries including the implementation of best corporate governance practices to accelerate economic development in developing economies.