Title: Access of firms to public procurement in Russia in the 2000s: before and after radical reform of regulation

Authors: Andrei Yakovlev; Olga Demidova

Addresses: Institute for Industrial and Market Studies, National Research University, Higher School of Economics (HSE), Myasnitskaya, 20, Moscow 101000, Russia ' Department of Economics, National Research University, Higher School of Economics (HSE), Myasnitskaya, 20, Moscow 101000, Russia

Abstract: This paper considers the consequences of public procurement reform in Russia in 2005-2006. We show that before the reform, manufacturing firms with government stakes, old firms and larger firms had advantages in access to government orders. In 2009 large firms retain their advantages in access to government orders. Estimated scales of 'kickback' in 2009 were virtually the same as in 2005. Active restructuring of the enterprises had no influence on the enterprises' access to government orders. We discuss the reasons for this failure of the radical reform of public procurement in Russia, and provide some policy implications.

Keywords: public procurement; corruption; firm restructuring; Russian economy; regulatory reform; regulation; Russia; manufacturing firms; government orders; government contracts.

DOI: 10.1504/IJEPEE.2012.048497

International Journal of Economic Policy in Emerging Economies, 2012 Vol.5 No.2, pp.140 - 157

Available online: 12 Aug 2012 *

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