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State-business relations in Russia in the 2000s: From the capture model to a variety of exchange models?

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  • Yakovlev, Andrei

    ()
    (BOFIT)

Abstract

Using data from a 2009 survey of 957 manufacturing enterprises, this paper examines relations between the state and business as well as priority differences in the distribution of governmental support by federal, regional and local authorities. Regression analysis reveals that a “model of exchange” is the predominant pattern as opposed to “state capture” (in the case of big firms) or “grabbing hand” (in the case of SMEs), both of which were typical of the 1990s. However, there are some differences in priorities at different levels of government. The federal government in 2007-2008 provided more support to state-owned and mixed enterprises providing stable employment, while regional authorities more often supported firms that were pursuing modernization. These trends could pave the way for a shift in governmental policy at the regional level from ”state capture”/”grabbing hand” to the Chinese-style “helping hand” model.

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Bibliographic Info

Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 10/2011.

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Length: 22 pages
Date of creation: 21 Jun 2011
Date of revision:
Handle: RePEc:hhs:bofitp:2011_010

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Related research

Keywords: state capture; state-business relations; Russia;

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References

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  1. Timothy Frye & Andrei Shleifer, 1996. "The Invisible Hand and the Grabbing Hand," NBER Working Papers 5856, National Bureau of Economic Research, Inc.
  2. Ahrend, Rüdiger, 2012. "Understanding Russian regions’ economic performance during periods of decline and growth—An extreme bound analysis approach," Economic Systems, Elsevier, vol. 36(3), pages 426-443.
  3. Andrei Shleifer, 2005. "Understanding Regulation," European Financial Management, European Financial Management Association, vol. 11(4), pages 439-451.
  4. Irina Slinko & Ekaterina Zhuravskaya & Evgeny Yakovlev, 2005. "Laws for Sale: Evidence from Russia," American Law and Economics Review, Oxford University Press, vol. 7(1), pages 284-318.
  5. Andrei Yakovlev & Yuri Simachev & Yuri Danilov, 2010. "The Russian corporation: patterns of behaviour during the crisis," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 129-140.
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Cited by:
  1. Alexander Libman, 2012. "Democracy, size of bureaucracy, and economic growth: evidence from Russian regions," Empirical Economics, Springer, vol. 43(3), pages 1321-1352, December.
  2. Yakovlev, A. & Govorun, A., 2011. "Business Associations as a Business-Government Liaison: An Empirical Analysis," Journal of the New Economic Association, New Economic Association, issue 9, pages 98-127.
  3. Bruno Grancelli, 2012. "Bastions Of Irrational Conservatism? Shop-Floor Accounts And The Co-Evolution Of Organizational And Institutional Change In Russia," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 3(2).
  4. A. Yakovlev & A. Govorun, 2011. "Industrial Associations as a Channel of Business-Government Interactions in an Imperfect Institutional Environment: The Russian Case," IWH Discussion Papers 16, Halle Institute for Economic Research.

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