Institutions and Economic Growth: Some Realities of Contemporary Russia
31 Pages Posted: 12 Jul 2012
Date Written: July 12, 2012
The interactive structure - ‘the State (authority) – property’ that has been created during the 2000s envisages a merger of state property with the vertical of power. In such a model, the principal long-term problem consists not only – and not so much – in the fact that the ‘business community’ (the market and private property) is subordinated to the State (authority). It is no less important that the interaction between the state and private forms of ownership, instead of being horizontal (when there are market-based preconditions for competition), becomes vertical. This absence of market-based competition, in its turn, results in the suppression of one of the forms, in the destruction of market mechanisms and ultimately in the loss of the efficiency potential in both the state and private sectors.
Keywords: institutions, economic growth, Russia
JEL Classification: A1
Suggested Citation: Suggested Citation