Ownership and Control of Enterprises

Abstract

Ownership concentration in Russia's economy is analyzed in the given chapter of the World Bank Memorandum on the basis of the specially constructed database on ownership and control. The results of the study show high degree of ownership concentration in the Russian industry but it varies across sectors. The holdings of large owners with national significance are concentrated in some strategic sectors, while in other sectors ownership concentration is not so high. Our data reveals no evidence that the firms controlled by Russian large private owners are more productive then those of other private owners. Firms controlled by regional private owners and foreign investors are more likely to receive preferential treatment on the regional level but large business groups may reap more benefits from such treatment that negatively affects functioning of other enterprises. A rule-based system is necessary to safeguard competition on all levels of the economy. Nothing in our data provides an argument for re-nationalization in any shape or form.