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What do Russians think about transition?

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  • Irina Denisova
  • Markus Eller
  • Ekaterina Zhuravskaya

Abstract

We use data from the 2006 round of the Russian Longitudinal Monitoring Survey to describe perceptions of the Russian population about the transition process and the role of the state compared with that of free markets. We find that about one-half of the Russian population is disappointed with transition and a large majority is in favour of high state regulation and state provision of goods and services. High demand for government regulation and increased state intervention coexists with a low level of trust in government institutions and recognition of high and rising levels of corruption. The findings are consistent with the theory developed by Aghion "et�al." (2009) . In an environment with poor social capital, private business imposes negative externalities on the society and society chooses to demand more state regulation and tolerate corruption to reduce these externalities. We also find that individual perceptions of social capital and corruption co-vary with the demand for regulation, as predicted by the theory. Copyright (c) 2010 The Authors. Journal compilation (c) 2010 The European Bank for Reconstruction and Development.

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Bibliographic Info

Article provided by The European Bank for Reconstruction and Development in its journal Economics of Transition.

Volume (Year): 18 (2010)
Issue (Month): 2 (04)
Pages: 249-280

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Handle: RePEc:bla:etrans:v:18:y:2010:i:2:p:249-280

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References

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  1. Gorodnichenko, Yuriy & Peter, Klara Sabirianova & Stolyarov, Dmitriy, 2009. "Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income," IZA Discussion Papers 4233, Institute for the Study of Labor (IZA).
  2. Paolo Pinotti, 2009. "Trust and Regulation: Addressing a Cultural Bias," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 721, Bank of Italy, Economic Research and International Relations Area.
  3. Nick Bloom & Raffaella Sadun & John Van Reenen, 2009. "The Organization of Firms Across Countries," CEP Discussion Papers dp0937, Centre for Economic Performance, LSE.
  4. Simon Commander & Andrei Tolstopiatenko & Ruslan Yemtsov, 1999. "Channels of redistribution: Inequality and poverty in the Russian transition," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 7(2), pages 411-447, July.
  5. Fleisher, Belton M. & Peter, Klara Sabirianova & Wang, Xiaojun, 2004. "Returns to Skills and the Speed of Reforms: Evidence from Central and Eastern Europe, China, and Russia," IZA Discussion Papers 1182, Institute for the Study of Labor (IZA).
  6. Sergei Guriev & Ekaterina Zhuravskaya, 2007. "(Un)Happiness in Transition," Working Papers w0111, Center for Economic and Financial Research (CEFIR).
  7. Grosfeld, Irena & Senik, Claudia, 2010. "The emerging aversion to inequality - Evidence from subjective data," CEPREMAP Working Papers (Docweb) 1006, CEPREMAP.
  8. Denisova, Irina & Eller, Markus & Frye, Timothy & Zhuravskaya, Ekaterina, 2009. "Who Wants To Revise Privatization? The Complementarity of Market Skills and Institutions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7260, C.E.P.R. Discussion Papers.
  9. Grosjean, Pauline & Senik, Claudia, 2008. "Why Populist Democracy Promotes Market Liberalization," IZA Discussion Papers 3527, Institute for the Study of Labor (IZA).
  10. Ravallion, Martin & Lokshin, Michael, 2000. "Who wants to redistribute?: The tunnel effect in 1990s Russia," Journal of Public Economics, Elsevier, vol. 76(1), pages 87-104, April.
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Cited by:
  1. Grosfeld, Irena & Senik, Claudia, 2008. "The Emerging Aversion to Inequality. Evidence from Poland 1992-2005," CEPREMAP Working Papers (Docweb) 0805, CEPREMAP.
  2. R. Golinelli & R. Rovelli, 2011. "Did Growth and Reforms Increase Citizens’ Support for the Transition?," Working Papers wp771, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Shurchkov, Olga, 2012. "New elites and their influence on entrepreneurial activity in Russia," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 240-255.
  4. Irina Denisova & Markus Eller & Timothy Frye & Ekaterina Zhuravskaya, 2010. "Everyone Hates Privatization, but Why? Survey Evidence from 28 Post-Communist Countries," Working Papers w0143, Center for Economic and Financial Research (CEFIR).
  5. Rinat Menyashev, 2011. "Consumer Cooperatives and Liberal Idea In Russia," HSE Working papers, National Research University Higher School of Economics WP BRP 05/EC/2011, National Research University Higher School of Economics.
  6. Jarko Fidrmuc & Matus Senaj, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," Working and Discussion Papers, Research Department, National Bank of Slovakia WP 2/2012, Research Department, National Bank of Slovakia.
  7. Jarko FIDRMUC & Matus SENAJ, 2014. "Income, Schooling and Housing Wealth during Economic Reforms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, Charles University Prague, Faculty of Social Sciences, vol. 64(2), pages 160-176, March.
  8. Ofer, Gur, 2010. "Twenty Years Later and the Socialist Heritage is still Kicking: the Case of Russia," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) wp2010-59, World Institute for Development Economic Research (UNU-WIDER).

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