During the Soviet period industrial firms not only formed the backbone of the economy but also directly provided a wide range of benefits to their municipalities. Firms were in charge of supplying a great variety of social services, such as housing, medical care and day care. The need to divest at least some of these functions was generally accepted already in the early 1990s. Industrial firms' engagement in the provision of infrastructure services, such as heating, electricity and road upkeep has to date received much less attention. Using a unique dataset of 404 large and medium-sized industrial enterprises in 40 regions of Russia, this paper examines public infrastructure provision by Russian industrial enterprises. We find that, first, to a large degree engagement in infrastructure provision – as proxied by district heating production – is a Soviet legacy. Second, firms providing district heating to users outside their plant area are more likely to have close relations with the local public sector along many other dimensions.
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Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number
2/2006.
Length: 37 pages Date of creation: 20 Apr 2006 Date of revision: Handle: RePEc:hhs:bofitp:2006_002
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Find related papers by JEL classification: H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Haaparanta, Pertti & Juurikkala, Tuuli & Lazareva, Olga & Pirttilä, Jukka & Solanko, Laura & Zhuravskaya, Ekaterina, 2003.
"Firms and public service provision in Russia,"
BOFIT Discussion Papers
16/2003, Bank of Finland, Institute for Economies in Transition.
[Downloadable!]
Other versions:
Pertti Haaparanta & Tuuli Juurikkala & Olga Lazareva & Jukka Pirttila & Laura Solanko & Ekaterina Zhuravskaya, 2003.
"Firms And Public Service Provision In Russia,"
Working Papers
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[Downloadable!]
Ricardo Hausmann & Lant Pritchett & Dani Rodrik, 2004.
"Growth Accelerations,"
NBER Working Papers
10566, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Dani Rodrick, 2003.
"Growth Strategies,"
Economics working papers
2003-17, Department of Economics, Johannes Kepler University Linz, Austria.
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