Explaining Russian Manufacturing Exports: Firm Characteristics and External Conditions

Abstract

This paper examines the exporting behaviour of Russian manufacturers by considering the effects of firm characteristics and external conditions. Two measures of export behaviour are considered: the decision to export and the share of exports to developed markets. I find that specific exporting experience is the main determinant of both export status and destination. Contrary to studies for other countries, firm features, with the exception of firm size, are irrelevant for export status, while labour productivity is important in determining the intensity of exports to developed markets. There is also evidence that spillover effects from agglomeration have an effect on exporting. At the same time, a lower degree of regulatory capture and a less corrupt judiciary matter for orientation towards more developed markets, while regional resource dependence does not hinder manufacturing exporting.

Keywords: export decision, export destination, institutions, regulatory capture, spillovers, agglomeration, Dutch disease, Russia

JEL Classification: D21, F14, L60, O50, P23, P28, P31, P33, P37, R12