Do Institutions Matter for Exporting? The Case of Russian Manufacturing

This paper examines the decision to export and the share of exports to developed markets of Russian manufacturers by considering the effects of external conditions and firm characteristics. I find that a lower degree of regulatory capture and a less corrupt judiciary favour orientation towards more developed markets, while regional resource dependence does not hinder manufacturing exporting. As in other countries, specific exporting experience is the main determinant of both export status and destination. On the other hand, firm features, with the exception of size, are irrelevant for export status, while labour productivity is important in determining the intensity of exports to developed markets. There is also evidence that spillover effects from agglomeration have an effect on exporting.