Effects of Institutional Differences on Economic Growth

Abstract

This article builds on the concept of institutional differences and the related concept of institutional rent in the context of the multitier Russian economy discussed in [1]. The analysis introduces three groups of sectors: giant, large, and other Russian companies. The boundaries between the sectors are fuzzy. This article seeks neither to analyze the quantitative characteristics of their activity nor to assess the significance of institutional differences and institutional rent for economic growth. No recommendations are given as to how to address the negative effects of the existing institutional trap. In this context, the aim of this article is to identify approaches to solving the listed problems.