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Working paper

Коллективные действия иностранного бизнеса в России: основные организационные формы, этапы и факторы их развития

The paper uses the evidence from Russia to analyze the arrangements for interaction between foreign firms (FF) and key national partners in the countries of their operations, review the actual mechanisms for collective action selected by FF operating in the Russian market, and assess the effectiveness of such mechanisms. The analysis focuses on foreign business associations (FBAs) operating in Russia and the Foreign Investment Advisory Council (FIAC) under the Office of the Russian Prime Minister. We identify the main stages and factors that were driving the evolution of these two main instruments over the last 25 years. We also provide the comparative analysis of the effectiveness of these two main instruments of collective action for FF in Russia, as well as highlight the factors contributing to higher effectiveness of individual FBAs under the current Russia’s circumstances. The main conclusion of the study is that political (rather than economic or institutional) factors play a key role in explaining the changes in the effectiveness of collective efforts of FF. Russia’s experience suggests that the mechanisms of interaction between foreign business and the authorities can work effectively only if there is mutual interest in such interaction. stment Advisory Council (FIAC) under the Office of the Russian Prime Minister. We identify the main stages and factors that were driving the evolution of these two main instruments over the last 25 years. We also provide the comparative analysis of the effectiveness of these two main instruments of collective action for FF in Russia, as well as highlight the factors contributing to higher effectiveness of individual FBAs under the current Russia’s circumstances.