Видеозапись семинара "Bypassing weak institutions in a large late-comer economy"
Speaker: Ksenia R. Gonchar (Assistant Professor at the Faculty of Economics, Leading Research Fellow at the Institute for Industrial and Market Studies, NRU HSE)
Co-author: Evguenia Bessonova (Senior Economist at the Centre for Economic and Financial Research (CEFIR))
May 28, Thursday, Myasnitskaya 24, building 3, room 424, 17.30.
This paper addresses the link between the strong inflow of FDI into Russia in the 2000s and its weak institutions, using plant-level data across subnational regions. The findings imply that investors have responded positively to improved quality of institutions in certain regions, which offered a combination of wealth, skills and good infrastructure. High development levels in host regions helped to bypass some institutional shortcomings. Investors from source countries exhibiting comparable institutional environment appeared to be more immune to political conflict. Round-trip investors reacted to institutional determinants in almost the same manner as genuine investors, except for tolerance to labor market imperfections.
Working paper: download