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Governors and governing institutions: a comparative study of state-business relations in Russia's regions

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  • Sharafutdinova, Gulnaz
  • Kisunko, Gregory

Abstract

The paper uses the latest 2011 round of the Business Environment and Enterprise Performance Survey for the Russian Federation, which for the first time was designed to be representative of Russian regions. The paper takes a closer look at regional-level factors influencing the business environment in Russia and, more specifically, conditions that favor the emergence of symbiotic relations between regional authorities and regional businesses. Considering the argued significance of informal rules, norms, and agreements for the regional-level business environment in Russia, the paper uses proxy variables such as tenure and origin of regional governors to identify how these rules are being institutionalized. The findings reveal that, at least in case of Russia, juxtaposing the state and business actors as separate and opposed to each other may overstate the distinction between these two groups of actors and understate the fact that many localities in Russia have witnessed the emergence of mutually beneficial state-business arrangements. Defining whether these arrangements are beneficial or harmful to regional development is beyond the scope of this exploratory paper.

Suggested Citation

  • Sharafutdinova, Gulnaz & Kisunko, Gregory, 2014. "Governors and governing institutions: a comparative study of state-business relations in Russia's regions," Policy Research Working Paper Series 7038, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7038
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    References listed on IDEAS

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    1. repec:zbw:bofitp:2011_010 is not listed on IDEAS
    2. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, July.
    3. Irina Slinko & Ekaterina Zhuravskaya & Evgeny Yakovlev, 2005. "Laws for Sale: Evidence from Russia," American Law and Economics Review, American Law and Economics Association, vol. 7(1), pages 284-318.
    4. Randolph Luca Bruno & Maria Bytchkova & Saul Estrin, 2013. "Institutional Determinants of New Firm Entry in Russia: A Cross-Regional Analysis," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1740-1749, December.
    5. Calì, Massimiliano & Sen, Kunal, 2011. "Do Effective State Business Relations Matter for Economic Growth? Evidence from Indian States," World Development, Elsevier, vol. 39(9), pages 1542-1557, September.
    6. Bob Rijkers & Leila Baghdadi & Gael Raballand, 2017. "Political Connections and Tariff Evasion Evidence from Tunisia," The World Bank Economic Review, World Bank, vol. 31(2), pages 459-482.
    7. Asel Isakova & Alexander Plekhanov, 2011. "Region-specific Constraints to Doing Business: Evidence from Russia," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 66(2), pages 181-210, June.
    8. Timothy Frye, 2002. "Capture or Exchange? Business Lobbying in Russia," Europe-Asia Studies, Taylor & Francis Journals, vol. 54(7), pages 1017-1036.
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    Citations

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    Cited by:

    1. Golikova Victoria & Kuznetsov Boris, 2016. "The Role of Innovation and Globalization Strategies in Post-Crisis Recovery," HSE Working papers WP BRP 123/EC/2016, National Research University Higher School of Economics.
    2. Victoria Golikova & Boris Kuznetsov & Maxim Korotkov & Andrei Govorun, 2017. "Trajectories of Russian manufacturing firms’ growth after the global financial crisis of 2008–2009: the role of restructuring efforts and regional institutional environment," Post-Communist Economies, Taylor & Francis Journals, vol. 29(2), pages 139-157, April.
    3. Kudrin, Alexey & Gurvich, Evsej T., 2015. "A new growth model for the Russian economy," BOFIT Policy Briefs 1/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Victoria Golikova & Boris Kuznetsov, 2017. "Suboptimal Size: Factors Preventing the Growth of Russian Small and Medium-Sized Enterprises," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(3), pages 83-93.
    5. Kudrin, Alexey & Gurvich, Evsey, 2015. "A new growth model for the Russian economy1," Russian Journal of Economics, Elsevier, vol. 1(1), pages 30-54.

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    Keywords

    Environmental Economics&Policies; Regional Economic Development; Common Property Resource Development; Teaching and Learning; Parliamentary Government;
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