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Do human capital endowments trump location for knowledge-intensive industries? This article takes advantage of a natural experiment created by the end of the Soviet planned economy in 1991, which had geographically distributed R&D manpower according to planned needs as opposed to a distribution determined by a market economy. It examines the extent to which the planned economy created a path-dependence in the location of post-Soviet human-capital intensive production. The study finds that regions with more R&D personnel in 1991 did better in the development of modern market-oriented knowledge-intensive business services, like engineering and IT. Several explanations are offered for this path-dependence, with an emphasis on human capital externalities being the most plausible.

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PurposeThe purpose of this paper is to investigate the links between investment activity and personal contacts for small- and medium-sized firms with public officials at the subnational level in Russia.Design/methodology/approachA list-experiment design, using a survey of 21,000 Russian firms in 2017, was used to evaluate the importance of personal connections with officials for conducting business.FindingsA total of 27% of firms without investment and 37% with investment considered personal connections with officials an important factor for doing business. The importance of such contacts was lower in regions with a better investment climate. However, a higher proportion of firms were likely to invest in the regions where higher importance was placed on political connections. Therefore, in Russia in the mid-2010s, investment from politically connected firms did not crowd out investment from other firms.Research limitations/implicationsAlthough the available data did not allow causality to be defined, the research shows that political connections are important for investors in emerging markets and that the importance of political connections diminishes with improvement in the business climate.Originality/valueThis paper provides a quantitative estimate of the relationship between political connections and firm investment in Russia, an example of large emerging economy. This relationship is moderated by institutional quality at the subnational level. The results provide empirical support for the theory of limited access orders elaborated by North et al. (2009), and stress the importance of rents and their productive utilization for the development of emerging economies.

The variant His at codon 48 of the alcohol dehydrogenase gene (ADH1B) results in more efficient ethanol metabolism than with the "typical" codon 48Arg. In this study we introduced selection properties of Arg48His genotypes of ADH1B and estimated fitness in four ethnic-geographical clusters in Asia. Population genetics models were employed that derive observed gene frequencies from fitness relationships among genotypes, to infer the selection pattern of polymorphisms in an indirect manner. The data were analyzed using the model of "complete stationary distribution" by Wright that takes into account random genetic drift, pressure of migrations, mutations, and selection as influential factors of gene frequency. We found that the different population groups showed some variation in the types of selection for Arg48His. Han Chinese from eastern and southeastern China and the Japanese and Korean populations showed stabilizing selection, while the groups from Central Asian and Indochina showed divergent selection. However, all the groups demonstrated a strong positive selection for Arg48His.