Industrial Defense Enterprises in the Russian Transition to a Capitalist System: Institutional Restrictions on Development

Leonid Kosals
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Leonid Kosals: State University-Higher School of Economics, Russia

The Journal of Comparative Economic Studies (JCES), 2005, vol. 1, 11-23

Abstract: The author develops the concept of 'clan capitalism' that has emerged in Russia during a period of transition. Clan capitalism has led to certain institutional restrictions on business activity: informal rules becoming more important than formal norms, etc. As well as establishing the limits for growth; such restrictions also prevent the widespread uptake of effective business strategies. The author studied the consequences of clan capitalism in Russia; citing the case of the industrial defense enterprises and analyzing trends in their performance over the last decade through a longitudinal survey of top managers. This paper describes the current development in this sector as contradictory growth due to the lack of investment and innovation but caused by a rise in the state order. The author explains the peculiarities of this growth by illustrating restrictions within the system of clan capitalism.

Keywords: Russia; Transition; Clan capitalism; Institutional restriction on development; Industrial defense enterprise (search for similar items in EconPapers)
JEL-codes: P26 P31 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:cos:epaper:v:1:y:2005:p:11-23

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