Industrial Defense Enterprises in the Russian Transition to a Capitalist System: Institutional Restrictions on Development
The author develops the concept of 'clan capitalism' that has emerged in Russia during a period of transition. Clan capitalism has led to certain institutional restrictions on business activity: informal rules becoming more important than formal norms, etc. As well as establishing the limits for growth; such restrictions also prevent the widespread uptake of effective business strategies. The author studied the consequences of clan capitalism in Russia; citing the case of the industrial defense enterprises and analyzing trends in their performance over the last decade through a longitudinal survey of top managers. This paper describes the current development in this sector as contradictory growth due to the lack of investment and innovation but caused by a rise in the state order. The author explains the peculiarities of this growth by illustrating restrictions within the system of clan capitalism.
Volume (Year): 1 (2005)
Issue (Month): (July)
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- Enste, Dominik & Schneider, Friedrich, 1998. "Increasing Shadow Economies all over the World - Fiction or Reality?," IZA Discussion Papers 26, Institute for the Study of Labor (IZA).
- Marin, Dalia, 2000.
"Trust Vs Illusion: What is Driving Demonetization in Russia?,"
CEPR Discussion Papers
2570, C.E.P.R. Discussion Papers.
- Marin, Dalia, 2000. "Trust vs Illusion: What is driving Demonetization in Russia?," Discussion Papers in Economics 73, University of Munich, Department of Economics.
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