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Organized Business, Political Regimes and Property Rights across the Russian Federation

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  • William Pyle

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    Abstract

    This article explores the inter-relationship of collective action within the business community, the nature of the political regime and the security of firms’ property rights. Drawing on a pair of surveys recently administered in Russia, we present evidence that post-communist business associations have begun to coordinate business influence over state actors in a manner that is sensitive to regional politics. A firm’s ability to defend itself from government predation and to shape its institutional environment as well as its propensity to invest in physical capital are strongly related to both its membership in a business association and the level of democratization in its region. Of particular note, the positive effect of association membership on securing property rights increases in less democratic regions. The evidence, that is, suggests that collective action in the business community substitutes for democratic pressure in constraining public officials.

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    File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/0703.pdf
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    Bibliographic Info

    Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0703.

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    Length: 33 pages
    Date of creation: Jun 2007
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    Handle: RePEc:mdl:mdlpap:0703

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    Cited by:
    1. 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.
    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.

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