Economic Analysis: Theory and Practice
 

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Analyzing the importance and agglomeration of factors of the Russian business environment

Vol. 17, Iss. 12, DECEMBER 2018

Received: 8 August 2018

Received in revised form: 14 September 2018

Accepted: 22 October 2018

Available online: 24 December 2018

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: F43, M13, M21

Pages: 1444–1458

https://doi.org/10.24891/ea.17.12.1444

Smirnov V.V. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
walera712006@mail.ru

https://orcid.org/0000-0002-6198-3157

Mulendeeva A.V. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
alena-mulendeeva@yandex.ru

ORCID id: not available

Subject The article addresses factors of Russian business environment and the influence of Russian business environment factors on entrepreneurial activity.
Objectives The aim is to reveal the importance and agglomeration order of factors of the Russian business environment.
Methods The study rests on the systems approach, using the regression and cluster analysis.
Results Based on the result of regression and cluster analysis of the World Bank statistics data from 2014 to 2018 on thirty-five factors of the Russian business environment, we identified five key areas: time of business entry and exit, solvency and market capacity, fiscal load, registration costs, and import costs. The most relevant factors are the time required for contract performance security, time for import (customs and documentation compliance), and the disclosure index. The findings may be reasonably used in formation and implementation of the State strategy of the Russian business environment development and entrepreneurial activity encouragement.
Conclusions The problem of conformity of the Russian business environment with the best world standards providing the growth of entrepreneurial activity is connected with a high volume of taxes that hinder the creation of innovative enterprises and reduction of time for contract performance, as well as with low level of economy digitalization, which precludes from reduction of time for registration of property and import (customs and documentation compliance), and the number of procedures for business registration.

Keywords: cluster analysis, agglomeration, business activity, business environment, factor

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