03/25/2019 Colloquium Series - Michael Alexeev: “The Impact of Institutional Quality on Manufacturing Sectors in Russia: Panel Data Analysis”
From David Price
We use the 2005—2012 data for Russian regions to show that higher regional institutional quality strongly benefits institutionally dependent manufacturing sectors in terms of both gross output levels and growth rates. Unlike the existing literature on this topic, which uses essentially cross-sectional specifications, we emphasize the results of panel data analysis. This approach mitigates endogeneity concerns and allows for calculating full marginal effects of institutions on manufacturing sectors with different degrees of institutional dependence. Our results imply that significant institutional improvements are needed in order for the Russian economy to diversify away from heavy reliance on oil and natural gas.