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

Journal of the European Economic Association, Forthcoming

53 Pages Posted: 28 Feb 2007 Last revised: 24 Oct 2011

See all articles by Evgeny Yakovlev

Evgeny Yakovlev

New Economic School; IZA

Ekaterina Zhuravskaya

Paris School of Economics (PSE)

Date Written: October 23, 2011

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.

Keywords: Regulation, deregulation reform, business entry

JEL Classification: H10, K20, L50

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: https://ssrn.com/abstract=965838

Evgeny Yakovlev

New Economic School ( email )

Skolkovskoe shosse 45
Moscow, 121343
Russia

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Ekaterina Zhuravskaya (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

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