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Institutional Determinants of New Firm Entry in Russia: A Cross-Regional Analysis

Author

Listed:
  • Randolph Luca Bruno

    (University College London, Fondazione Rodolfo DeBenedetti, and IZA)

  • Maria Bytchkova

    (London School of Economics and Political Science)

  • Saul Estrin

    (London School of Economics and Political Science, CEPR and IZA)

Abstract

We investigate how the regional institutional environment—in particular, the political environment—affects Russian new firm entry across regions, industries, firm size classes, and time. We find that entry rates in Russia are explained by natural entry rates and the institutional environment. Industries that are characterized by low entry barriers in developed market economies are found to have lower entry rates in regions subject to greater political fluidity, as in the case of gubernatorial change. We also find that higher levels of political fluidity and democracy increase relative entry rates for small-sized firms but reduce them for medium-sized or large ones. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:restat:v:95:y:2013:i:5:p:1740-1749
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    More about this item

    Keywords

    entry rate; institutions; democracy;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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    1. Institutional Determinants of New Firm Entry in Russia: A Cross-Regional Analysis (REStat 2013) in ReplicationWiki

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