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The Unequal Enforcement Of Liberalization: Evidence From Russia'S Reform Of Business Regulation

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  • Evgeny Yakovlev
  • Ekaterina Zhuravskaya

Abstract

We document the unequal enforcement of liberalization reform of business regulation across Russian regions with different governance institutions, which leads to unequal effects of liberalization. National liberalization laws were enforced more effectively in subnational regions with more transparent government, a more informed population, a higher concentration of industry, and stronger fiscal autonomy. As a result, liberalization had a substantial positive effect on the performance of small firms and the growth of the official small business sector in regions with stronger governance institutions. In contrast, in regions with weaker governance institutions, we observe no effect of reform and, in some cases, even a negative effect.
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Suggested Citation

  • Evgeny Yakovlev & Ekaterina Zhuravskaya, 2013. "The Unequal Enforcement Of Liberalization: Evidence From Russia'S Reform Of Business Regulation," Journal of the European Economic Association, European Economic Association, vol. 11(4), pages 808-838, August.
  • Handle: RePEc:bla:jeurec:v:11:y:2013:i:4:p:808-838
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    File URL: http://hdl.handle.net/10.1111/jeea.2013.11.issue-4
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    1. repec:eee:rujoec:v:1:y:2015:i:2:p:154-181 is not listed on IDEAS
    2. Alexander Libman & Joachim Zweynert, 2014. "Ceremonial Science: The State of Russian Economics Seen Through the Lens of the Work of ‘Doctor of Science’ Candidates," Working Papers 337, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    3. Leonid Gokhberg & Vitaliy Roud, 2016. "Structural changes in the national innovation system: longitudinal study of innovation modes in the Russian industry," Economic Change and Restructuring, Springer, vol. 49(2), pages 269-288, August.
    4. Maican, Florin & Orth, Matilda, 2015. "A dynamic analysis of entry regulations and productivity in retail trade," International Journal of Industrial Organization, Elsevier, vol. 40(C), pages 67-80.
    5. Libman, Alexander & Zweynert, Joachim, 2014. "Ceremonial science: The state of Russian economics seen through the lens of the work of ‘Doctor of Science’ candidates," Economic Systems, Elsevier, vol. 38(3), pages 360-378.
    6. Francesco Bripi, 2016. "The Role of Regulation on Entry: Evidence from the Italian Provinces," World Bank Economic Review, World Bank Group, vol. 30(2), pages 383-411.
    7. Athanasouli, Daphne & Goujard, Antoine, 2015. "Corruption and management practices: Firm level evidence," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 1014-1034.
    8. Nikitin, Andrey S., 2016. "Investment Rating as an Instrument of Effective Govern Management Stimulation in Russian Regions," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 192-221, December.
    9. Kuzmina, Olga & Volchkova, Natalya & Zueva, Tatiana, 2014. "Foreign direct investment and governance quality in Russia," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 874-891.
    10. Fredriksson, Anders, 2014. "Bureaucracy intermediaries, corruption and red tape," Journal of Development Economics, Elsevier, vol. 108(C), pages 256-273.
    11. Libman Alexander & Schultz André & Graeber Thomas, 2016. "Tax Return as a Political Statement," Review of Law & Economics, De Gruyter, vol. 12(2), pages 377-445, July.
    12. repec:eee:ecolet:v:159:y:2017:i:c:p:161-163 is not listed on IDEAS
    13. Paul Castaneda Dower & Egor Malkov & Leonid Polishchuk & William Pyle, 2015. "Costs and Benefits of Land Ownership: The Case of Russian Firms," HSE Working papers WP BRP 107/EC/2015, National Research University Higher School of Economics.

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