Institutional and General Economic Constraints to Economic Growth: Findings from the Industrial Enterprise Survey

Dashkeyev, Vladimir and Freinkman, Lev (2008): Institutional and General Economic Constraints to Economic Growth: Findings from the Industrial Enterprise Survey. Published in: Экономико-Политическая Ситуация в России, M: ИЭПП No. 2 (February 2008): pp. 45-56.

Abstract

In December 2007, the Institute for the Economy in Transition (IET) carried out a survey of Russian industrial enterprises to identify their perceived constraints to successful economic development. Senior managers of enterprises were asked to answer 2 groups of questions and to assess: 1) government interference in decision making of enterprises, and 2) changes in various factors that may constrain further output growth. Findings of the survey suggest a conclusion that the structure of constraints to industrial growth, at least for medium and large businesses, considerably changed in the last 2-3 years. At present, the most critical barriers include constraints relatively new for firms and different from those experienced in the previous decade -- constraints related to energy, labor , and transportation. According to the abovementioned BEEPS, these areas were problematic in less than 15% of all cases, i.e. actually they were not considered as problems back in 2002 and 2005. However, according to this survey, the situation changed drastically by the end of 2007. Enterprises face very serious “physical” constraints to further growth, and it is very hard for them to solve such problems in a traditional way by “settling a problem with officials”.

• Item Type: MPRA Paper
• Language: English
• Keywords: Regulatory constraints for growth, Russia, industrial growth, enterprise survey
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P27 - Performance and Prospects; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P31 - Socialist Enterprises and Their Transitions; L - Industrial Organization > L5 - Regulation and Industrial Policy > L50 - General

References

Raj M. Desai and Itzhak Goldberg, Eds. 2007. Enhancing Russia’s Competitiveness and Innovative Capacity. The World Bank. Washington, DC