IDEAS home Printed from https://ideas.repec.org/p/umd/umdeco/98-001.html
   My bibliography  Save this paper

Law, Relationships, and Private Enforcement: Transactional Strategies of Russian Enterprises

Author

Listed:
  • Kathryn Hendley

    (University of Wisconsin-Madison)

  • Peter Murrell

    (Department of Economics, University of Maryland)

  • Randi Ryterman

    (The World Bank)

Abstract

We examine how Russian enterprises do business with one another, focusing on the strategies used to obtain efficiency and predictability in their transactions. Using survey data, the paper analyzes the relative importance of relational contracting, self-enforcement, enterprise networks, private security firms, administrative institutions, and courts. Enterprise-to-enterprise negotiations are preferred, but courts are used when disputes resist resolution through negotiation. Consistently, little evidence suggests enterprises resort to private enforcement, indicating overstatement in the supposed connection between weakness in law and the mafia's rise. Legacies of the old administrative enforcement mechanisms are few, although enterprise networks from Soviet days remain resilient.

Suggested Citation

  • Kathryn Hendley & Peter Murrell & Randi Ryterman, 1998. "Law, Relationships, and Private Enforcement: Transactional Strategies of Russian Enterprises," Electronic Working Papers 98-001, University of Maryland, Department of Economics.
    • Handle: RePEc:umd:umdeco:98-001
    as

    Download full text from publisher

    File URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=147088
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marcel Fafchamps & Bart Minten, 1999. "Relationships and traders in Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 1-35.
    2. Masten, Scott E. (ed.), 1996. "Case Studies in Contracting and Organization," OUP Catalogue, Oxford University Press, number 9780195092523.
    Full references (including those not matched with items on IDEAS)

    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. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    2. Sanktjohanser, Anna & Hörner, Johannes, 2022. "Too Much of A Good Thing?," TSE Working Papers 22-1327, Toulouse School of Economics (TSE).
    3. Alfredo Esposto, 2004. "Contractual Integration of Physician and Hospital Services in the U.S," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(1), pages 49-69, March.
    4. Salazar Idana & Galve Górriz Carmen, 2011. "Determinants of the Differences in the Downstream Vertical Integration and Efficiency Implications in Agricultural Cooperatives," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-26, February.
    5. Martinez, Stephen W. & Hanagriff, Roger D. & Smith, Kevin E., 2006. "Strategic Alliances in U.S. Branded Beef Programs," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35399, Southern Agricultural Economics Association.
    6. John S. Heywood & Debashis Pal, 2004. "Successive Monopolies and Regulation in a Spatial Model," Manchester School, University of Manchester, vol. 72(2), pages 167-178, March.
    7. Claude Ménard, 2022. "Hybrids: where are we?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04012150, HAL.
    8. Kherallah, Mylène & Kirsten, Johann, 2001. "The new institutional economics," MSSD discussion papers 41, International Food Policy Research Institute (IFPRI).
    9. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    10. Felipe Maciel Cardoso & Carlos Gracia-Lázaro & Frederic Moisan & Sanjeev Goyal & Angel Sánchez & Yamir Moreno, 2020. "Effect of Network Topology and Node Centrality on Trading," Post-Print hal-03188212, HAL.
    11. Chi Huu Nguyen & Christophe J. Nordman, 2018. "Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 54(4), pages 594-618, April.
    12. repec:lic:licosd:28811 is not listed on IDEAS
    13. Wang, Sen & Bogle, Tim & van Kooten, G. Cornelis, 2012. "Forestry and the New Institutional Economics," Working Papers 130818, University of Victoria, Resource Economics and Policy.
    14. Minten, Bart & Tamru, Seneshaw & Legesse, Ermias Engida & Kuma, Tadesse, 2018. "Supply chain from production areas to Addis Ababa," IFPRI book chapters, in: The economics of teff: Exploring Ethiopia’s biggest cash crop, chapter 11, pages 263-298, International Food Policy Research Institute (IFPRI).
    15. Hu, Lifang & Zeng, Yinchu & Lopez, Rigoberto A., 2016. "Access to Credit by Traders in Chinese Agricultural Wholesale Markets," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235449, Agricultural and Applied Economics Association.
    16. Fafchamps, Marcel & Gabre-Madhin, Eleni Z., 2006. "Agricultural markets in Benin and Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 1(1), pages 1-28, November.
    17. Yu. Sereda, 2015. "Role of social capital in the formation of attitudes to market economy in Ukraine," Economy and Forecasting, Valeriy Heyets, issue 2, pages 72-89.
    18. repec:hal:spmain:info:hdl:2441/67o636bvfi8j38dklemaqd9k3m is not listed on IDEAS
    19. Gupta, Bishnupriya, 2014. "Discrimination or Social Networks? Industrial Investment in Colonial India," The Journal of Economic History, Cambridge University Press, vol. 74(1), pages 141-168, March.
    20. Beladi, Hamid & Chakrabarti, Avik, 2008. "Foreign equity participation under incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 279-295, July.
    21. in 't Veld, Daan & van der Leij, Marco & Hommes, Cars, 2020. "The formation of a core-periphery structure in heterogeneous financial networks," Journal of Economic Dynamics and Control, Elsevier, vol. 119(C).
    22. Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699, Elsevier.

    More about this item

    Keywords

    Law; Contracts; Transactions; Contract Governance; Russia; Transition;
    All these keywords.

    JEL classification:

    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

    Statistics

    Access and download statistics

    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:umd:umdeco:98-001. 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: Peter Murrell (email available below). General contact details of provider: http://www.econ.umd.edu/ .

    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.