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Article

Actions and Reactions of Russian Manufacturing Companies to the Crisis Shocks from 2008–2009: Evidence from the Empirical Survey

Europe-Asia Studies. 2013. Vol. 65. No. 3. P. 508-527.

This article explores the nature of the 2008 crisis and the channels through which it affected the performance of  firms in Russia. Based on the findings of a manufacturing industry survey, the evidence suggests that all manufacturing firms were affected by crisis and that there is no single and dominant transmission channel. Crisis reactions were signficantly related to participation in international markets, although participation in trade, in external  borrowing or FDi can not explain recession by themselves. The reversal of growth was mainly caused by a demand shock, and, following that, by financial constraints. Thus, the hypothesis that blames the overheating of internal demand in the years prior to the crisis seems to receive statistical backing. Globalised companies, though hit by external shocks, were better prepared to pay the costs and balance the consequences of the crisis.