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Russia: firm entry and survival

Listed author(s):
  • Ruta Aidis

    ()

    (UCL School of Slavonic and East European Studies)

  • Yuko Adachi

    ()

    (SSEES, University College London Sophia University, Japan)

Why are there so few new firms in Russia? This paper provides further insights into the specific Russian business landscape and how it impacts the low level of new firm entry. As this paper indicates, internationally comparative data does not provide many clues since in terms of purely formal constraints, Russia fairs comparatively well. However, a deeper analysis uncovers the informal impediments associated with the lack of rule of law, inconsistent enforcement of regulations, regional autonomy and pervasive corruption. These informal constraints form impediments not only for new firm creation but also for firm survival and firm exit. Since not all industries are affected in the same way, this paper includes a comparison between a new and traditional industrial sector: software development and the textile industry.

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File URL: http://discovery.ucl.ac.uk/17490/1/17490.pdf
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Paper provided by UCL School of Slavonic and East European Studies (SSEES) in its series UCL SSEES Economics and Business working paper series with number 67.

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Length: 43 pages
Date of creation: Aug 2006
Handle: RePEc:see:wpaper:67
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  1. Kontorovich, Vladimir, 1999. "Has new business creation in russia come to a halt?," Journal of Business Venturing, Elsevier, vol. 14(5-6), pages 451-460.
  2. Vlad Ivanenko, 2002. "Statutory Tax Burden and Its Avoidance in Transitional Russia," UWO Department of Economics Working Papers 20027, University of Western Ontario, Department of Economics.
  3. Ruta Aidis & Saul Estrin, 2006. "Institutions, Networks and Entrepreneurship Development in Russia: An Exploration," William Davidson Institute Working Papers Series wp833, William Davidson Institute at the University of Michigan.
  4. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
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