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The Unequal Enforcement of Liberalization: Evidence from Russia's Reform of Business RegulationEvgeny YakovlevNew Economic School Ekaterina ZhuravskayaParis School of Economics; New Economic School 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 Accepted Paper SeriesDate posted: February 28, 2007 ; Last revised: October 24, 2011Suggested CitationContact Information
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