BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 18/2007:
Organized business, political regimes and property rights across the Russian Federation
William Pyle ()
Abstract: Abstract: This article explores the inter-relationship of
collective action within the business community, the nature of the
political regime and the security of firms’ property rights. Drawing on a
pair of surveys recently administered in Russia, we present evidence that
post-communist business associations have begun to coordinate business
influence over state actors in a manner that is sensitive to regional
politics. A firm’s ability to defend itself from government predation and
to shape its institutional environment as well as its propensity to invest
in physical capital are strongly related to both its membership in a
business association and the level of democratization in its region. Of
particular note, the positive effect of association membership on securing
property rights increases in less democratic regions. The evidence, that
is, suggests that collective action in the business community substitutes
for democratic pressure in constraining public officials.
Keywords: collective action; property rights; political institutions; business associations; (follow links to similar papers)
JEL-Codes: D70; K40; P48; (follow links to similar papers)
39 pages, August 29, 2007
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