Law Works in Russia: The Role of Legal Institutions in the Transactions of Russian Enterprises
Опубликовано на портале: 06-10-2003
Autors examine whether law and legal institutions add value to Russian transactions, using enterprise surveys. Enterprise officials view legal institutions relatively benignly. Direct contacts are most important in resolving transactional problems, but courts are used when negotiations fail. We show that potential for hold-up reduces the value of transactions, that the nature of enterprise ownership and control affects the ability to sustain relationships, and that legal factors affect success. The economic and institutional environment rewards enterprises that invest effort in constructing contracts, that possess superior legal knowledge, and that reorient their legal work to new opportunities.