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Evolution of the Government–Business Relationship and Economic Performance in the Former Soviet States – Order State, Rescue State, Punish State

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  • Ichiro Iwasaki

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Abstract

The objective of this paper is to elucidate the relationship between the reform process and economic performance in the states of the former Soviet Union (FSU). There were two strategies used by the former Soviet states to cope with the collapse of the USSR. Some of the FSU countries, in an effort to overcome the institutional vacuum caused by the disintegration of the federal economy, centralized their government authority to manage industry. Others decentralized power in an attempt to regain economic independence for domestic enterprises. To evaluate the essential differences and progress gaps among transition strategies, FSU countries can be divided into three groups, which reflect variations in institutional control of the government-business relationships. The differences in economic performance in FSU countries can be explained to some extent by examining the diversity of institutional patterns that characterize each category. The results of various empirical analyses positively support the validity of such an analytical framework. In this sense, this paper presents a new viewpoint on the transition process in FSU countries that may complement that shown in existing literature. Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1023/B:ECOP.0000024087.22037.63
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Bibliographic Info

Article provided by Springer in its journal Economics of Planning.

Volume (Year): 36 (2004)
Issue (Month): 3 (September)
Pages: 223-257

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Handle: RePEc:kap:ecopln:v:36:y:2004:i:3:p:223-257

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Web page: http://www.springerlink.com/link.asp?id=113294

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Keywords: government-business relationship; the former Soviet Union; transition;

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References

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Citations

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Cited by:
  1. Ichiro Iwasaki, 2007. "Enterprise Reform And Corporate Governance In Russia: A Quantitative Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(5), pages 849-902, December.
  2. Libman, Alexander, 2005. "Globalization and outcomes of institutional competition," MPRA Paper 11779, University Library of Munich, Germany.
  3. Libman, Alexander, 2006. "Zum Spannungsfeld zwischen staatlicher und privater Wirtschaft am Beispiel der postsowjetischen Staaten
    [On the interaction of public and private businesses: Example of the post-Soviet space]
    ," MPRA Paper 10941, University Library of Munich, Germany.
  4. Alexander Libman, 2006. "Government-Business Relations and Catching Up Reforms in the CIS," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(2), pages 263-288, December.
  5. Libman, Alexander, 2006. "Different paths of the second transition in the post-Soviet world: a political-economic analysis," MPRA Paper 11781, University Library of Munich, Germany.

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