The Development of Special Economic Zones and Industrial Parks in Russia

Abstract

Attempts to develop Special Economic Zones and Industrial Parks came late to Russia and the outcomes have differed greatly from the expectations of standard models. This paper examines the impact of institutional and cultural peculiarities in the Russian context on the development of these economic zones. Based on in-depth interviews and surveys of the managing companies and tenants, we find an institutional asymmetry between formal and informal institutions that prevents the effective development of economic zone policies. We argue the asymmetry arises from distinctive attitudes to uncertainty in Russia, which can be traced to cultural and institutional influences. We outline an alternative industrial cluster model that aligns formal and informal institutions and can potentially reduce uncertainty and facilitate the effective development of economic zones and parks in Russia.

Keywords: special economic zone, industrial park, culture, government, Russia, institutional asymmetry

JEL Classification: E02, F23, F63, H77, L26, L78, M16, O11, O38, O43, P16, P33, R11