The Impact of Crisis on Firm Creation and Regeneration in Russia: Regional Panel Data Analysis

  • Ichiro Iwasaki
  • Mathilde Maurel


The aim of this chapter is to provide an econometric assessment of the impact of the European crises on the Russian economy through the lens of firm creation and regeneration. In Russia, after the 2008 global financial shock, there was a sharp downward shift in the firm creation rate measured by the number of newly established firms per 1000 organizations, and a continuous fall in the firm regeneration rate defined as the excess of newly established firms over liquidated firms per 1000 organizations. Paying special attention to the heavy dependence of the Russian economy on the oil sector, we argue that the shock of the European crises may strongly affect the decision-making of Russian entrepreneurs who consider the startup of new businesses and the survivability of existing firms during the great depreciation in the world oil price and the sharp increase in its volatility. To empirically examine this hypothesis, we employ regional-level panel data for the period from 2008 to 2015 and estimate a regression equation that takes the annual average and the coefficient of variation of world oil price as independent variables while controlling for other potentially explanatory factors of firm entry and turnover. As a result, we found a statistically significant and economically meaningful impact of the world oil price on firm creation and regeneration, suggesting that the Russian regional economies became more sensitive to the fluctuations in an increasingly integrated world economy.


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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Ichiro Iwasaki
    • 1
  • Mathilde Maurel
    • 2
  1. 1.Institute of Economic ResearchHitotsubashi UniversityTokyoJapan
  2. 2.Centre d’Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne/CNRS/Fondation pour les Etudes et Recherches sur le Développement InternationalParisFrance

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