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- Carlsson, Lars, et al.
(author)
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The Russian detour : real transition in a virtual economy?
- 2001
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In: Europe-Asia Studies. - : Informa UK Limited. - 0966-8136 .- 1465-3427. ; 53:6, s. 841-867
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Journal article (peer-reviewed)abstract
- Illustrates the creation of a market economy by showing that no easy procedures automatically lead to that goal; the Russian forest sector is used as a model for all Russian industries. The major obstacle for the forest sector is the existing institutional framework consisting of both formal & informal rules. In Russia, the institutional system adversely affects the new & more market-oriented institutions. Indeed, multiple problems undermine the Russian forest industry. Laws are often ignored, property rights are ill defined, the market does not always determine value, & authorities often fail to prosecute violations of laws. Through a comparative study of the Russian & Swedish forest industries the authors reveal that Russian firms lack funding & bank support, they are more burdened by taxes, & trading is marred by contract violations. Further complicating the issue is Russia's overlapping jurisdictions; the forest sector is regulated by three levels of rules. Consequently, the problems must be solved at three different levels
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