BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 10/2011:
State-business relations in Russia in the 2000s: From the capture model to a variety of exchange models?
Andrei Yakovlev ()
Abstract: Using data from a 2009 survey of 957 manufacturing
enterprises, this paper examines relations between the state and business
as well as priority differences in the distribution of governmental support
by federal, regional and local authorities. Regression analysis reveals
that a “model of exchange” is the predominant pattern as opposed to “state
capture” (in the case of big firms) or “grabbing hand” (in the case of
SMEs), both of which were typical of the 1990s. However, there are some
differences in priorities at different levels of government. The federal
government in 2007-2008 provided more support to state-owned and mixed
enterprises providing stable employment, while regional authorities more
often supported firms that were pursuing modernization. These trends could
pave the way for a shift in governmental policy at the regional level from
”state capture”/”grabbing hand” to the Chinese-style “helping hand”
model.
Keywords: state capture; state-business relations; Russia; (follow links to similar papers)
JEL-Codes: D20; H25; H71; (follow links to similar papers)
22 pages, June 21, 2011
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