Title: The impact of institutional quality on enterprise location choice in the Russian regions
Authors: Natalia Davidson; Oleg Mariev; Aizhamal Rakhmetova
Addresses: Ural Federal University, Mira Street, 19, Ekaterinburg, 620002, Russia ' Ural Federal University, Mira Street, 19, Ekaterinburg, 620002, Russia; Institute of Economics of the Ural Branch of the Russian Academy of Sciences, Moskovskaya St., 29, Ekaterinburg, 620014, Russia ' Center for Economic Research and Graduate Education – Economics Institute (CERGE-EI), Politických vězňů 7, 111 21 Praha 1, Czech Republic
Abstract: This paper aims to estimate the impact of institutional quality on the firms' location choice in the Russian regions. We use data from three sources: the Federal State Statistics Service (Rosstat), the International Center for the Study of Institutions and Development (ICSID), and the ranking agency 'Expert RA' over the period 2006-2014. Based on the panel data model, our study confirms that institutional quality substantially and positively affects enterprise location choice in a region. In particular, the investment potential is important for attracting firms into a region, while investment risk negatively affects firms' location choice. These results emphasise that improvement of the institutional environment in Russian regions is essential for business development.
Keywords: enterprise location choice; institutions; economic policy; economic development; Russia.
International Journal of Economic Policy in Emerging Economies, 2022 Vol.16 No.2/3/4, pp.123 - 138
Received: 25 Dec 2019
Accepted: 28 Oct 2020
Published online: 31 Oct 2022 *