Russia's Integration into the World Economy: An Interjurisdictional Competition View

Abstract

The aim of the paper is to analyze the problems of Russia´s integration into the world economy from the point of view of the theory of interjurisdictional competition. It argues, that huge exit-effects in the Russian economy do not lead to increasing quality of institutions and economic policies. In order to explain this situation, the paper focuses on the demand and supply sides of the market for institutions and public policies. Their behavior patterns contribute to the stabilization of the inefficient equilibrium. From the normative point of view, the result of the paper is that Russia´s integration into the world economy can succeed, only if the political institutions are transformed and centers of private economic power are weakened.Economic integration, Russia, interjurisdictional competition