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Firm Entry and Exit during a Crisis Period Evidence from Russian Regions

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  • Iwasaki, Ichiro
  • 岩崎, 一郎
  • Maurel, Mathilde
  • Meunier, Bogdan

Abstract

In this paper, we aim to empirically analyze the determinants of firm entry and exit in Russia using a regional-level panel data for the years of 2008-2014, with special emphasis on institutional failures and the politico-economic impact of external crises. We found that these two elements exhibit statistically significant and economically meaningful effects both on the creation and destruction of Russian firms, controlling for potentially explanatory factors. Our empirical results also suggest that the process of firm entry and exit is manifold across Russian regions due to their heterogeneity. Nevertheless, a surprisingly robust estimate of the world oil price (irrespective of the difference in target regions) suggests a possible high exposure of each Russian region to a global crisis. This comes from the importance of oil trade with the world and, accordingly, the ongoing crisis may bring a harmful influence to regeneration of Russian businesses.

Suggested Citation

  • Iwasaki, Ichiro & 岩崎, 一郎 & Maurel, Mathilde & Meunier, Bogdan, 2016. "Firm Entry and Exit during a Crisis Period Evidence from Russian Regions," RRC Working Paper Series 59, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:rrcwps:59
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    Cited by:

    1. Wales, W. & Shirokova, G. & Bogatyreva, K. & Germain, R., 2018. "Foreign Motivations: How International Exposure Shapes Firms' Entrepreneurial Orientation in Emerging Market," Working Papers 15121, Graduate School of Management, St. Petersburg State University.
    2. Ichiro Iwasaki & Mathilde Maurel, 2017. "The Impact of Crisis on Firm Creation and Regeneration in Russia: Regional Panel Data Analysis," Post-Print halshs-01505659, HAL.
    3. Bessonova, Evguenia, 2023. "Firms’ efficiency, exits and government procurement contracts," European Journal of Political Economy, Elsevier, vol. 76(C).
    4. Ichiro Iwasaki & Yuko Adachi, 2024. "Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 1-69, March.
    5. Ichiro Iwasaki & Yuko Adachi, 2024. "Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 1-69, March.
    6. Iwasaki, Ichiro, 2018. "International Presence of the Japanese Study of Russian and East European Economies," RRC Working Paper Series 74, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    7. Ichiro Iwasaki & Kazuhiro Kumo, 2020. "Determinants of regional fertility in Russia: a dynamic panel data analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 32(2), pages 176-214, February.
    8. Nobuhiro Hosoe, 2022. "Quantifying the Impacts of Sanctions Following Russia’s Invasion of Ukraine," GRIPS Discussion Papers 22-06, National Graduate Institute for Policy Studies.
    9. Victoria Golikova & Boris Kuznetsov, 2017. "Suboptimal Size: Factors Preventing the Growth of Russian Small and Medium-Sized Enterprises," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 83-93.
    10. Gurvich, Evsey, 2016. "Institutional constraints and economic development," Russian Journal of Economics, Elsevier, vol. 2(4), pages 349-374.
    11. I. P. Gurova, 2020. "Regional Distribution of Foreign Direct Investment in the Russian Economy," Regional Research of Russia, Springer, vol. 10(3), pages 318-326, July.

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    More about this item

    Keywords

    firm entry; firm exit; institutions; economic integration; crisis; Russia;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F15 - International Economics - - Trade - - - Economic Integration
    • G01 - Financial Economics - - General - - - Financial Crises
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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