Objective
The purpose of the project is to study the corporate governance practices in three NIS countries: Russia, Ukraine and Kyrgyzstan. Quality of corporate governance is one of the key factors determining the investment climate and, consequently, the perspectives for economic growth of the country. As many studies show, corporate governance is closely related to the structure of corporate ownership. We intend to use the data obtained in the course of enterprise surveys in Russia, Ukraine and Kyrgyzstan to study the relationship between ownership structure, investments and demand for corporate governance standards. The surveys will be conducted in 2004 and 2005 based on panels of enterprises formed and maintained in Russia and Ukraine. Regular business surveys have been conducted on these panels for several years with the methodological support of European commission, Eurostat, and OECD. Due to the absence of such panel in Kyrgyzstan the survey there will be carried out using a different methodology. Kyrgyzstan is a small country with small economy. The total number of industrial enterprises is about 450, out of which about 300 are privatized companies (the rest are state-owned enterprises and greenfield firms). Given the total number of companies, the sample will include all branches of industry in all 8 regions of the country. Similar to the Ukrainian and Russian samples, medium-sized and large companies prevail. The Kyrghyz sample will be classified along two-digit NACE codes and the level of employment. Given the usual denial rate in such surveys in Kyrgyzstan, we plan to receive data from about 200 privatized companies. The survey will be carried out by the method of face-to-face interviews with the help a specialized firm headed by a person who has excellent track record in this field. The study will benefit a lot from cross-country comparisons. Russia, Ukraine and Kyrgystan, though formerly parts of a single country, differ significantly both by initial conditions and by speed and design of reforms during transition. Controlling for differences in the institutional design and country characteristics will allow understanding basic principles underlying the working of corporate governance institutions. Observed dynamics will allow to overcome the limitations of cross-sectional analysis in that it will tell more about direction of causality between demand for corporate governance standards, ownership structure and investment patterns. The project has both academic and policy implications. Research results will be disseminated through working paper series of research centers involved in the project. They will be presented at international conferences and seminars. Recommendations for economic policy will be disseminated among the policymakers of Russia, Ukraine and Kyrgyzstan and other NIS countries.
Call for proposal
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113 83 Stockholm
Sweden