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Firm Entry and Exit during a Crisis Period Evidence from Russian Regions

Author

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  • Iwasaki, Ichiro
  • Maurel, Mathilde
  • Meunier, Bogdan

Abstract

In this paper, we aim to empirically analyze the determinants of firm entry and exit in Russia using a regional-level panel data for the years of 2008-2014, with special emphasis on institutional failures and the politico-economic impact of external crises. We found that these two elements exhibit statistically significant and economically meaningful effects both on the creation and destruction of Russian firms, controlling for potentially explanatory factors. Our empirical results also suggest that the process of firm entry and exit is manifold across Russian regions due to their heterogeneity. Nevertheless, a surprisingly robust estimate of the world oil price (irrespective of the difference in target regions) suggests a possible high exposure of each Russian region to a global crisis. This comes from the importance of oil trade with the world and, accordingly, the ongoing crisis may bring a harmful influence to regeneration of Russian businesses.

Suggested Citation

  • Iwasaki, Ichiro & Maurel, Mathilde & Meunier, Bogdan, 2016. "Firm Entry and Exit during a Crisis Period Evidence from Russian Regions," RRC Working Paper Series 59, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:rrcwps:59
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    References listed on IDEAS

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    Cited by:

    1. Ichiro Iwasaki & Mathilde Maurel, 2017. "The Impact of Crisis on Firm Creation and Regeneration in Russia: Regional Panel Data Analysis," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01505659, HAL.
    2. repec:eee:rujoec:v:2:y:2016:i:4:p:349-374 is not listed on IDEAS
    3. repec:hig:fsight:v:11:y:2017:i:3:p:83-93 is not listed on IDEAS
    4. Iwasaki, Ichiro, 2018. "International Presence of the Japanese Study of Russian and East European Economies," RRC Working Paper Series 74, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    firm entry; firm exit; institutions; economic integration; crisis; Russia;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F15 - International Economics - - Trade - - - Economic Integration
    • G01 - Financial Economics - - General - - - Financial Crises
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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