Economic Behavior of Wood Sector Enterprises of Karelia Republic under Conditions of Market Transformations

Abstract

The article presents the analysis of economic behavior of wood sector enterprises of Karelia Republic during transition to market. Findings show that the absence of adequate institutional conditions has set many enterprises on the brink of survival. The influence of formal institutions is essentially leveled by inefficient informal actions. Examples of positive changes testify not so much that the formation of effective institutions is taking place, as about the degree of adaptation of successful enterprises while using all favorable external factors. The analysis is based on data of long-term economic and sociological surveys of Karelia forest territories.