Article

 

Transformations of the russian metallurgical branch (1991 – 2000) (p.315-337)

by

Cédric Durand,, CEMI-EHESS /ATER Paris 7

Keywords : Institutional change, Post soviet transformation, Metallurgy, Transaction costs , Property rights , Branch “regulation” ,Exports

JEL classification : B5, D23, L61, P20, F10

Abstract

The post-soviet economy underwent radical transformations during the last decade. How did reforms affect the specific character of the Soviet economic system? The aim of this paper is to contribute to the research on this issue, on the basis of an empirical study concerning a key sector of the Russian economy: the metallurgical industrial branch. In the first part of this paper, we will present the asymmetric crisis of the branch, caused by the liberalization shock. We will then examine how the liberal reforms induced rising transactions costs on the domestic market and a spectacular growth of exports, at the expense of the internal industrial coherence. In the second section of this paper, will be discussed the characteristics of the post-Soviet branch « régulation »: after a decade of wild struggle for control in the branch, the process of corporatist stabilization initiated in 1998 and the significant growth of the activity do not necessarily mean that the emergent model within the branch will help create a sustainable economic development.