Determinants of governmental support of Russian companies: lessons on industrial policy, rent-seeking and corruption
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The Russian government has programs to assist Russian companies with financial and organizational support. Award of procurement contracts may also serve as assistance to companies. This paper uses data from a survey of Russian companies to draw inferences about the motivation behind the choice of recipients. Possible motivations are an intent to foster economic development, successful rent-seeking by recipients or simply corruption. The evidence is mixed. There is support for both the economic development motive and rent-seeking in the analysis of financial and organizational support. A role for corruption is most evident in the procurement contract results.
KeywordsGovernment support Procurement Industrial policy Bribery Public choice
JEL ClassificationD73 H00 H57 L38 O25
This study comprises research findings from the Project No. 18-18-00270 supported by the Russian Science Foundation.
Compliance with ethical standards
Conflict of interest
No potential conflict of interest was reported by the authors.
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