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Business Associations as a Business-Government Liaison: An Empirical Analysis

  • Yakovlev, A.

    (Institute for Industrial and Market Studies, National Research University — Higher School of Economics, Moscow, Russia)

  • Govorun, A.

    (Institute for Industrial and Market Studies, National Research University — Higher School of Economics, Moscow, Russia)

Relying on the survey data of 957 manufacturing firms, conducted in 2009 by the Institute for Industrial and Market Studies we found that business associations are more frequently joined by larger companies; firms located in regional capital cities; and firms active in investment and innovations. By contrast, business associations tend to be less frequently joined by business groups’ subsidiaries and firms non-responding about their ownership structure. Business associations are a link in the framework of government-business exchanges, primarily at the regional and local level. Indeed, business association members are more active in assisting regional and local authorities in the social development of their regions and simultaneously they get government support more frequently. However, this effect proved insignificant for federal support. In general, our results allow us to believe that at present, business associations consolidate the most active, advanced companies and act as collective representatives of their interests. For this reason, business associations can be regarded as interface units between the authorities and business and as a possible instrument for promotion of modernization.

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Article provided by New Economic Association in its journal Journal of the New Economic Association.

Volume (Year): (2011)
Issue (Month): 9 ()
Pages: 98-127

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Handle: RePEc:nea:journl:y:2011:i:9:p:98-127
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  1. Yakovlev, Andrei, 2011. "State-business relations in Russia in the 2000s: From the capture model to a variety of exchange models?," BOFIT Discussion Papers 10/2011, Bank of Finland, Institute for Economies in Transition.
  2. Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
  3. Doner Richard F. & Schneider Ben Ross, 2000. "Business Associations and Economic Development: Why Some Associations Contribute More Than Others," Business and Politics, De Gruyter, vol. 2(3), pages 1-29, December.
  4. Coates, Dennis & Heckelman, Jac C, 2003. " Interest Groups and Investment: A Further Test of the Olson Hypothesis," Public Choice, Springer, vol. 117(3-4), pages 333-40, December.
  5. Bonnie Wilson & Jac Heckelman, 2010. "The Political Economy of Investment: Sclerotic Effects from Interest Groups," Working Papers 2012-03, Saint Louis University, Department of Economics.
  6. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
  7. Recanatini, Francesca & Ryterman, Randi, 2001. "Disorganization or self-organization : the emergence of business associations in a transition economy," Policy Research Working Paper Series 2539, The World Bank.
  8. William Pyle, 2007. "Organized Business, Political Regimes and Property Rights across the Russian Federation," Middlebury College Working Paper Series 0703, Middlebury College, Department of Economics.
  9. Pyle, William, 2007. "Organized business, political regimes and property rights across the Russian Federation," BOFIT Discussion Papers 18/2007, Bank of Finland, Institute for Economies in Transition.
  10. Hausmann, Ricardo & Rodrik, Dani & Sabel, Charles F., 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," Working Paper Series rwp08-031, Harvard University, John F. Kennedy School of Government.
  11. Jac C. Heckelman, 2007. "Explaining the Rain: The Rise and Decline of Nations after 25 Years," Southern Economic Journal, Southern Economic Association, vol. 74(1), pages 18-33, July.
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