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Russia: firm entry and survival

Aidis, R.; Adachi, Y.; (2006) Russia: firm entry and survival. (Economics Working Papers 67). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK. Green open access

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Abstract

Why are there so few new firms in Russia? This paper provides further insights into the specific Russian business landscape and how it impacts the low level of new firm entry. As this paper indicates, internationally comparative data does not provide many clues since in terms of purely formal constraints, Russia fairs comparatively well. However, a deeper analysis uncovers the informal impediments associated with the lack of rule of law, inconsistent enforcement of regulations, regional autonomy and pervasive corruption. These informal constraints form impediments not only for new firm creation but also for firm survival and firm exit. Since not all industries are affected in the same way, this paper includes a comparison between a new and traditional industrial sector: software development and the textile industry.

Type: Working / discussion paper
Title: Russia: firm entry and survival
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.ssees.ucl.ac.uk/wp67sum.htm
Language: English
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: http://discovery.ucl.ac.uk/id/eprint/17490
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