Explaining Russian Manufacturing Export: Firm Characteristics and External Conditions

This paper examines the exporting behaviour of Russian manufacturers by considering the interaction of firm characteristics and external conditions. An important distinction is made between general exporting activity and export to developed countries. Firm features and specific export experience are found to be important in determining the international orientation of manufacturers and the destination of their exports. At the same time, agglomeration effects are relevant in determining the share of transactions directed to more developed markets, indicating that more efficient exporters are agglomerated in regional and industrial clusters. Among external conditions, natural resource dependence does not seem incompatible with a diversified industrial structure, while a lower degree of regulatory capture is found to favour orientation towards more developed markets. A final section takes a specific look at the new enterprise sector, and finds institutional conditions to be an important determinant of its exporting behaviour. JEL classification: D21, F14, L60, O50, P23, P28, P31, P33, P37, R12.