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The impact of institutional quality on enterprise location choice in the Russian regions

Author

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  • Natalia Davidson
  • Oleg Mariev
  • Aizhamal Rakhmetova

Abstract

This paper aims to estimate the impact of institutional quality on the firms' location choice in the Russian regions. We use data from three sources: the Federal State Statistics Service (Rosstat), the International Center for the Study of Institutions and Development (ICSID), and the ranking agency 'Expert RA' over the period 2006-2014. Based on the panel data model, our study confirms that institutional quality substantially and positively affects enterprise location choice in a region. In particular, the investment potential is important for attracting firms into a region, while investment risk negatively affects firms' location choice. These results emphasise that improvement of the institutional environment in Russian regions is essential for business development.

Suggested Citation

  • Natalia Davidson & Oleg Mariev & Aizhamal Rakhmetova, 2022. "The impact of institutional quality on enterprise location choice in the Russian regions," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 16(2/3/4), pages 123-138.
    • Handle: RePEc:ids:ijepee:v:16:y:2022:i:2/3/4:p:123-138
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