This page should re-direct you to Corruption and Microenterprises in Russia,
if it does not go to http://aede.osu.edu/resources/docs/pdf/29806231-6000-11D5-ABED00C00D014775.pdf.

Category_ID - 5
Doc_Title - Corruption and Microenterprises in Russia
Doc_Author - Mehnaz S. Safavian, Douglas H. Graham
Doc_Number - AEDE-WP-0002-00
Doc_Start_Date - 06/13/2001
Doc_End_Date - 06/13/2002
Doc_URL_AddLocal - C:\WINNT\ACF1557.tmp
Tag_Functional - AED Econ Working Paper
Tag_SubUnit - Development Economics,Finance
Tag_Program - Rural Finance
Tag_Industry - Development Finance,Government
Tag_Misc - Former Soviet Union
Tag_Resources - NULL
Tag_Practice - Development,Microenterprises

In Russia, compliance with the rules and regulations that govern almost all aspects of econmic life has created an extremely hostile environment for microenterprises. More serious than the regulations per se, however, is the potential niche they create for opportunistic behavior by the regulatory authorities. In Russia, the regulatory state has created a corrupt cadre of government bureaucrats who frequently engage in rent-seeking behavior while enforcing regulations. Firms are not uniformly impacted by corruption, however. This paper shows empirical evidence of differential incidence of extortion, based on certain firm and entrepreneurial characteristics. Corruption in Russia is similar to a regressive tax, and acts as a disincentive to innovation and growth, it may induce technologically inefficient production decisions, and can dilute economies of scale and scope. Keywords: Corruption, Microenterprises, Russia.