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Russia: firm entry and survival

Author

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  • Ruta Aidis

    (UCL School of Slavonic and East European Studies)

  • Yuko Adachi

    (SSEES, University College London Sophia University, Japan)

Abstract

Why are there so few new firms in Russia? This paper provides further insights into the specific Russian business landscape and how it impacts the low level of new firm entry. As this paper indicates, internationally comparative data does not provide many clues since in terms of purely formal constraints, Russia fairs comparatively well. However, a deeper analysis uncovers the informal impediments associated with the lack of rule of law, inconsistent enforcement of regulations, regional autonomy and pervasive corruption. These informal constraints form impediments not only for new firm creation but also for firm survival and firm exit. Since not all industries are affected in the same way, this paper includes a comparison between a new and traditional industrial sector: software development and the textile industry.

Suggested Citation

  • Ruta Aidis & Yuko Adachi, 2006. "Russia: firm entry and survival," UCL SSEES Economics and Business working paper series 67, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:67
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    References listed on IDEAS

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    1. Vlad Ivanenko, 2002. "Statutory Tax Burden and Its Avoidance in Transitional Russia," University of Western Ontario, Departmental Research Report Series 20027, University of Western Ontario, Department of Economics.
    2. Laura Solanko, 2003. "An empirical note on growth and convergence across Russian regions," Macroeconomics 0308005, University Library of Munich, Germany.
    3. Ruta Aidis & Saul Estrin, 2006. "Institutions, Networks and Entrepreneurship Development in Russia: An Exploration," William Davidson Institute Working Papers Series wp833, William Davidson Institute at the University of Michigan.
    4. Broadman, Harry G., 2000. "Reducing structural dominance and entry barriers in Russian industry," Policy Research Working Paper Series 2330, The World Bank.
    5. Kontorovich, Vladimir, 1999. "Has new business creation in russia come to a halt?," Journal of Business Venturing, Elsevier, vol. 14(5-6), pages 451-460.
    6. Sergei Guriev & Andrei Rachinsky, 2004. "Ownership concentration in Russian industry," Working Papers w0045, New Economic School (NES).
    7. repec:zbw:bofitp:2003_009 is not listed on IDEAS
    8. Harry Broadman, 2000. "Reducing Structural Dominance and Entry Barriers in Russian Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 17(2), pages 155-175, September.
    9. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
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    Cited by:

    1. Shirokova Galina & Knatko Dmitri & Vega Gina, 2013. "To Be or Not to Be: When Should a Threshold Firm in an Emerging Market Move to Professional Management?," EERC Working Paper Series 13/01e, EERC Research Network, Russia and CIS.
    2. Christopher Gerry & Tomasz Mickiewicz, 2006. "Inequality, Fiscal Capacity and the Political Regime: Lessons from the Post-Communist Transition," William Davidson Institute Working Papers Series wp831, William Davidson Institute at the University of Michigan.
    3. Shirokova, Galina V. & Knatko, Dmitri M. & Vega, Gina, 2013. "Separation of Management and Control in SMES from Emerging Markets: the Role of Institutions," Working Papers 788, Graduate School of Management, St. Petersburg State University.
    4. Shirokova, Galina V. & Sokolova, Liubov S., 2013. "Exploring the Antecedents of Entrepreneurial Orientation in Russian SMEs: The Role of Institutional Environment," Working Papers 819, Graduate School of Management, St. Petersburg State University.

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