1. ¹Centre for New and Emerging Markets, London Business School, Regent's Park, London NW1 4SA, UK. E-mail: sestrin@london.edu
2. ²Office of the Chief Economist, European Bank for Reconstruction and Development, One Exchange Square, London EC2A 2JN, UK. E-mail: bevana@ebrd.com

Abstract

The relationship between enterprise performance and the various exogenous variables – ownership, competition, financial constraints – have been considered separately in the papers of this Special Issue. In this concluding paper, we analyse them together and investigate their interaction. We find that none of the variables except financial constraints play any role in determining the variation in economic performance of Russian enterprises in this period. Interaction effects are also unimportant; the dispersion is explained primarily by demand side and regional factors. However, competition and private ownership jointly influence the rate of restructuring. Taken together, the findings suggest the need for policy action to integrate the Russian market, to open it to international competition and to develop domestic capital markets.