IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v11y1999i1p79-98.html
   My bibliography  Save this article

Foreign Trade Arrangements in Russia and its Regions: Relying on Foreign Capital to Generate Growth?

Author

Listed:
  • Peter Kirkow

Abstract

This article examines to what extent Russia's increasing reliance on foreign capital could potentially kick-start the economy and generate growth. The analysis highlights more fundamental issues of governance and institutional arrangements, for which the focus on foreign economic activities serves merely as an example to reflect on pathologies of the Russian economy as a whole. The article consists of a theoretical framework, discussing the change of institutional arrangements in the first section and analysing crucial issues of corporate governance and property rights in the last, while empirical information is compiled for Russia as a whole and its constituent regions in the second and third core sections. The article concludes that the Russian map of high foreign trade activities will be shaped only by patchy growth spots, located either where the domestic market is largest or opportunities for export exist, mainly in large urban agglomerations (economies of scale) and commercial hubs, resource-rich and gateway territories (gravitation to international trading blocs). Major investment disincentives will remain as long as the existing system of taxation has not been substantially changed, property rights are not protected, land and bankruptcy legislation is not properly enforced and local authorities are not prevented form rent-seeking activities.

Suggested Citation

  • Peter Kirkow, 1999. "Foreign Trade Arrangements in Russia and its Regions: Relying on Foreign Capital to Generate Growth?," Post-Communist Economies, Taylor & Francis Journals, vol. 11(1), pages 79-98.
    • Handle: RePEc:taf:pocoec:v:11:y:1999:i:1:p:79-98
    DOI: 10.1080/14631379996057
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/14631379996057
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631379996057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stefan Hedlund & Niclas Sundström, 1996. "The Russian economy after systemic change," Europe-Asia Studies, Taylor & Francis Journals, vol. 48(6), pages 887-914.
    2. William Tompson, 1997. "Old habits die hard: Fiscal imperatives, state regulation and the role of Russia's banks," Europe-Asia Studies, Taylor & Francis Journals, vol. 49(7), pages 1159-1185.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benešová, Irena & Novotná, Zuzana & Šánová, Petra & Laputková, A., 2016. "Economic Comparison of Agricultural Sector of Eurasian Countries – Is There Any Potential for Development Through Economic Cooperation?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-13, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Berkowitz & Mark Hoekstra & Koen Schoors, 2012. "Does Finance Cause Growth? Evidence from the Origins of Banking in Russia," NBER Working Papers 18139, National Bureau of Economic Research, Inc.
    2. repec:hhs:bofitp:2012_010 is not listed on IDEAS
    3. David M. Kemme, 2000. "Russian Financial Transition: The Development of Institutions and Markets for Growth," William Davidson Institute Working Papers Series 455, William Davidson Institute at the University of Michigan.
    4. Salla Pöyry & Benjamin Maury, 2010. "Influential ownership and capital structure," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 311-324.
    5. Zuzana Fungáčová & Alexei Karas & Laura Solanko & Laurent Weill, 2023. "The politics of bank failures in Russia," Post-Soviet Affairs, Taylor & Francis Journals, vol. 39(6), pages 440-461, November.
    6. Pinto, Brian & Drebentsov, Vladimir & Morozov, Alexander, 2000. "Give growth and macroeconomic stability in Russia a chance - harden budgets by eliminating nonpayments," Policy Research Working Paper Series 2324, The World Bank.
    7. Mats-Olov Olsson, 2008. "The Russian virtual economy turning real: Institutional change in the Arkhangel'sk forest sector," Europe-Asia Studies, Taylor & Francis Journals, vol. 60(5), pages 707-738.
    8. Schoors, Koen & Weill, Laurent, 2017. "Russia's 1999–2000 election cycle and the politics-banking interface," BOFIT Discussion Papers 17/2017, Bank of Finland Institute for Emerging Economies (BOFIT).
    9. repec:zbw:bofitp:2017_017 is not listed on IDEAS
    10. Paul Frijters & Dirk J Bezemer & Uwe Dulleck, 2005. "Contacts, Market Institutions, and Development," School of Economics and Finance Discussion Papers and Working Papers Series 205a, School of Economics and Finance, Queensland University of Technology.
    11. Dirk Bezemer & Uwe Dulleck & Paul Frijters, 2003. "Contacts, Social Capital and Market Institutions - A Theory of Development," Vienna Economics Papers vie0311, University of Vienna, Department of Economics.
    12. repec:zbw:bofitp:2022_007 is not listed on IDEAS
    13. Jonathan Oldfield, 2000. "Structural Economic Change and the Natural Environment in the Russian Federation," Post-Communist Economies, Taylor & Francis Journals, vol. 12(1), pages 77-90.
    14. Schoors, Koen & Weill, Laurent, 2017. "Russia's 1999–2000 election cycle and the politics-banking interface," BOFIT Discussion Papers 17/2017, Bank of Finland, Institute for Economies in Transition.
    15. Mario Gara, 2001. "The Emergence of Non-monetary Means of Payment in the Russian Economy," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 5-39.
    16. Homi Kharas & Brian Pinto & Sergei Ulatov, 2001. "An Analysis of Russia's 1998 Meltdown: Fundamentals and Market Signals," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(1), pages 1-68.
    17. Fungáčová, Zuzana & Karas, Alexei & Solanko, Laura & Weill, Laurent, 2022. "The politics of bank failures in Russia," BOFIT Discussion Papers 7/2022, Bank of Finland, Institute for Economies in Transition.
    18. Lehmbruch, B., 2012. "Transacting in the absence of trust : Uncertainty and network patterns in post-communism," ISS Working Papers - General Series 539, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    19. Yuko Iji, 2003. "Corporate control and governance practices in Russia," UCL SSEES Economics and Business working paper series 33, UCL School of Slavonic and East European Studies (SSEES).
    20. Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2003. "Socialism, Capitalism, and Transition - Coordination of Economic Relations and Output Performance," Paul Frijters Discussion Papers 2003, School of Economics and Finance, Queensland University of Technology.
    21. Daniel Berkowitz & Mark Hoekstra & Koen Schoors, 2012. "Does Finance Cause Growth? Evidence from the Origins of Banking in Russia," NBER Working Papers 18139, National Bureau of Economic Research, Inc.
    22. Berkowitz, Daniel & Hoekstra, Mark & Schoors, Koen, 2014. "Bank privatization, finance, and growth," Journal of Development Economics, Elsevier, vol. 110(C), pages 93-106.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:11:y:1999:i:1:p:79-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.