The impact of institutional quality on manufacturing sectors: A panel data analysis

Michael Alexeev and Andrey Chernyavskiy

Economic Systems, 2021, vol. 45, issue 3

Abstract: We use data on Russian regions to examine the effect of institutional quality on institutionally dependent manufacturing sectors in terms of both output levels and growth rates. Unlike the existing literature on this topic, which mostly uses cross-sectional or pooled specifications for either country-level or regional data, we use panel data. This approach allows us to distinguish between short-term and long-term impacts and mitigates endogeneity concerns. As an additional contribution to the literature, we estimate the full marginal effects of institutions on manufacturing sectors with different degrees of institutional dependence. In terms of policy recommendations, our results imply that significant institutional improvements would be needed for the Russian economy to diversify away from heavy reliance on oil and natural gas.

Keywords: Allocation of industry; Institutional quality; Relationship specificity; Russian economy (search for similar items in EconPapers)
JEL-codes: D02 O14 P27 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S093936252100039X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:45:y:2021:i:3:s093936252100039x

DOI: 10.1016/j.ecosys.2021.100891

Access Statistics for this article

Economic Systems is currently edited by R. Frensch

More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().