How Administrative Regulation Institutional Factors Affect the Business Efficiency in a Region: A Case Study of Russian Regions

Abstract

Different business environments may have differential impacts. The improvement in the institutional environment and increased certainty about the future greatly impact entrepreneurial activity and business results. The reform of inspection and regulatory enforcement activities aims at improving the business environment, i.e., property, lawful rights, and interests against a variety of risks. Although the reform has been ongoing for several years in Russia, no systematic, independent evaluation of its efficiency and impact on the business efficiency at the meso-level of the Russian economic system has yet been implemented. The research aimed to investigate administrative barriers to business in (1) subdivisions of the Russian Federation on the example of monitoring and supervision activities of state bodies, and (2) the provision of public services. Besides, we measured the impact of administrative regulation on the effectiveness of entrepreneurial activity in the region. Findings from this research are useful in managerial practice, and for academic researchers and policymakers in emerging economies to adopt and consider to improve further the contribution of the administrative regulation institutions in regional economic development.