State-business Relations in Russia in the 2000s: from the Capture to a Variety of Exchange Models?

Andrei Yakovlev (Univiersity - Higher School of Economics)

Abstract: Using the data of a 2009 survey of 957 manufacturing enterprises, this paper examines relations between the state and business as well as differences in priority concerning the distribution of governmental support by federal, regional and municipal authorities. Regression analysis of this data reveals that a “model of exchange” is the generally predominant pattern as opposed to the “state capture” (in the case of big firms) and the “grabbing hand” (in the case of SMEs), both of which were typical of the 1990s. However, there are some differences in priorities at different levels of government. The federal government in 2007-2008 preferentially provided support to state-owned and mixed enterprises with stable employment, while regional authorities more often gave support to firms that were involved in modernization activities. These trends could pave the way for a shift in governmental policy at the regional level from the ”state capture”/”grabbing hand” models to the Chinese-style “helping hand” model.

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