Abstract

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The Unequal Enforcement of Liberalization: Evidence from Russia's Reform of Business Regulation


Evgeny Yakovlev


New Economic School

Ekaterina Zhuravskaya


Paris School of Economics

October 23, 2011

Journal of the European Economic Association, Forthcoming

Abstract:     
We document unequal enforcement of liberalization reform of business regulation across Russian regions with different governance institutions which lead to unequal effects of liberalization. The enforcement of national liberalization laws was better in subnational regions with more transparent government, better informed population, closer monitoring by powerful industrial lobbies, and stronger fiscal autonomy. As a result, in better regions in terms of governance institutions, liberalization had a substantial positive effect on performance of small firms and growth of official small business sector. In contrast, in worse regions, we observe no effect of reform and, in some cases, even a negative effect.

Number of Pages in PDF File: 53

Keywords: Regulation, deregulation reform, business entry

JEL Classification: H10, K20, L50

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Date posted: February 28, 2007 ; Last revised: October 24, 2011

Suggested Citation

Yakovlev, Evgeny and Zhuravskaya, Ekaterina, The Unequal Enforcement of Liberalization: Evidence from Russia's Reform of Business Regulation (October 23, 2011). Journal of the European Economic Association, Forthcoming. Available at SSRN: http://ssrn.com/abstract=965838

Contact Information

Evgeny Yakovlev
New Economic School ( email )
Nakhimovsky pr., 47, office 905
Moscow, 117418
Russia
Ekaterina V. Zhuravskaya (Contact Author)
Paris School of Economics ( email )
48 Boulevard Jourdan
Paris, 75014 75014
France
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