Article
Comparative Economic Studies (1998) 40 (2), 5–52; doi:10.1057/ces.1998.10
Enterprise Restructuring in Russia's Transition Economy: Formal and Informal Mechanisms
*Prepared for presentation at the ACES/ASSA meetings, Chicago, 3–5 January 1997. Linz acknowledges financial support for data collection provided by the William Davidson Institute of the University of Michigan, an All-University Research Initiation Grant from Michigan State University, and a short-term travel grant from the International Research and Exchanges Board, with funds provided by the U.S. Department of State (Title VIII) and the National Endowment for the Humanities. Krueger acknowledges financial support for data collection provided by Macalester College and the National Council for Soviet and East European Research, contract no. 811-10. The aforementioned organizations are not responsible for the views expressed in this paper. We thank Pierfederico Asdrubali and Richard Ericson for helpful comments.
Susan J Linz1 and Gary Krueger2
- 1Michigan State University
- 2Macalester College
Abstract
This paper examines the nature and scope of enterprise restructuring in Russia using two sources firm-level data. The first involves a panel of over 2,000 civilian manufacturing firms in Moscow, Tver, Volgograd, Rostov, and Novosibirsk The second involves data collected from a series of in-depth interviews conducted benveen 1994 and 1997 with top-level managers in 47 firms located it Moscow, Tver, Nizhny, Volgograd and Novosibirsk. The objective of the paper is threefold. First, we summarize the existing literature on enterprise restructuring, and evaluate the pros and cons of a number of restructuring measures that have been used in studies of privatized firms in Russia and other transition economies. Second, we apply two measures of enterprise restructuring to our data to investigate the extent of variation by industry, ownership structure, and location. Third we examine in detail the question of whether barter enhances or impedes enterprise restructuring in Russia.
