IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v78y2019i5p1201-1228.html
   My bibliography  Save this article

The Impact of Monopolies on Small Business Development in Russia

Author

Listed:
  • L. A. Mierin
  • E. M. Korostyshevskaya
  • N. S. Ragimova

Abstract

The imposition of economic sanctions on Russia by other countries has raised interest rates, diminished the working capital of small and medium‐sized enterprises (SMEs), and led to the restoration of state‐owned companies in many sectors of the economy. Nevertheless, the Russian Federation continues to make efforts to develop a market‐oriented economy based on open competition. This article considers the current situation with SMEs in Russia from the standpoint of market competition and the influence of monopolies on this process. It analyzes bottlenecks in the interaction of monopolies with SMEs. For example, the wires and pipelines required to distribute energy, heat, and electricity over large geographic areas are natural monopolies: only one company can provides each service efficiently in a given area. The companies that control those natural monopolies are able to extract payments far in excess of cost from small businesses. In this and other ways, monopolies are able to dominate the Russian economy and restrict competition from SMEs.

Suggested Citation

  • L. A. Mierin & E. M. Korostyshevskaya & N. S. Ragimova, 2019. "The Impact of Monopolies on Small Business Development in Russia," American Journal of Economics and Sociology, Wiley Blackwell, vol. 78(5), pages 1201-1228, November.
    • Handle: RePEc:bla:ajecsc:v:78:y:2019:i:5:p:1201-1228
    DOI: 10.1111/ajes.12303
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajes.12303
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajes.12303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Geginat, Carolin & Ramalho, Rita, 2018. "Electricity connections and firm performance in 183 countries," Energy Economics, Elsevier, vol. 76(C), pages 344-366.
    2. Hayek, F. A. & Caldwell, Bruce, 2007. "The Road to Serfdom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226320540 edited by Caldwell, Bruce, Febrero.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Makovi, Michael, 2016. "Labor Economics in a Planned Economy: F. A. Hayek and John Jewkes on the Impossibility of Democratic Socialism," MPRA Paper 70174, University Library of Munich, Germany.
    2. Bjornskov, Christian & Dreher, Axel & Fischer, Justina AV & Schnellenbach, Jan, 2009. "On the relation between income inequality and happiness: Do fairness perceptions matter?," MPRA Paper 19494, University Library of Munich, Germany.
    3. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    4. Edward Romar, 2009. "Noble Markets: The Noble/Slave Ethic in Hayek’s Free Market Capitalism," Journal of Business Ethics, Springer, vol. 85(1), pages 57-66, March.
    5. Viktor J. Vanberg, 2023. "Liberalism and democracy: legitimacy and institutional expediency," Public Choice, Springer, vol. 195(3), pages 251-268, June.
    6. Asiedu, Elizabeth & Azomahou, Théophile T. & Gaekwad, Neepa B. & Ouédraogo, Mahamady, 2021. "The determinants of electricity constraints by firms in developing countries," Energy Economics, Elsevier, vol. 104(C).
    7. Ravenscroft, Sue & Williams, Paul F., 2009. "Making imaginary worlds real: The case of expensing employee stock options," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 770-786, August.
    8. Roger D. Congleton, 2020. "Governance by true believers: supreme duties with and without totalitarianism," Constitutional Political Economy, Springer, vol. 31(1), pages 111-141, March.
    9. Panagiotis Evangelopoulos, 2014. "Consequences of the Public Debt Crisis on Growth and Stability," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 47-56, August.
    10. Ekkehard A. Köhler & Daniel Nientiedt, 2023. "Was Walter Eucken a proponent of authoritarian liberalism?," Public Choice, Springer, vol. 195(3), pages 363-376, June.
    11. Innset, Ola, 2023. "Dual Argument, Double Truth: On the continued importance of the state in neoliberal thought," SocArXiv kyvdm, Center for Open Science.
    12. Jean-Paul Azam & Elodie Djemai, 2019. "Matching, Cooperation and HIV in the Couple," Working Papers DT/2019/02, DIAL (Développement, Institutions et Mondialisation).
    13. Makovi, Michael, 2015. "George Orwell and the Incoherence of Democratic Socialism," MPRA Paper 62527, University Library of Munich, Germany.
    14. Michael Makovi, 2015. "George Orwell as a Public Choice Economist," The American Economist, Sage Publications, vol. 60(2), pages 183-208, September.
    15. Brandon N. Cline & Claudia R. Williamson & Haoyang Xiong, 2022. "Trust, regulation, and market efficiency," Public Choice, Springer, vol. 190(3), pages 427-456, March.
    16. Xie, Li & Kong, Chun, 2023. "The social welfare effect of electricity user connection price policy reform," Applied Energy, Elsevier, vol. 346(C).
    17. Montrone, Lorenzo & Steckel, Jan Christoph & Kalkuhl, Matthias, 2022. "The type of power capacity matters for economic development – Evidence from a global panel," Resource and Energy Economics, Elsevier, vol. 69(C).
    18. Makovi, Michael, 2015. "Two Opposing Economic-Literary Critiques of Socialism: George Orwell Versus Eugen Richter and Henry Hazlitt," MPRA Paper 62528, University Library of Munich, Germany.
    19. Nick Cowen, 2018. "Mill’s radical end of laissez-faire: A review essay of the political economy of progress: John Stuart Mill and modern radicalism," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(3), pages 373-386, September.
    20. Åsbjørn Melkevik, 2016. "No progressive taxation without discrimination? On the generality of the law in the classical liberal tradition," Constitutional Political Economy, Springer, vol. 27(4), pages 418-434, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:78:y:2019:i:5:p:1201-1228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.