Before the interests are invested

Disputes over asset control and equity market restrictions in Russia

Bibliographic Data

ID12316685
AuthorsIgor Logvinenko (0000-0002-3110-5943, Wellesley College, corresponding author)
Year2019
Volume26
Issue4
Pages695-721
Publication date2019-06-26
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueReview of International Political Economy (JOURNAL)
Journal identifiersISSN: 0969-2290 • E-ISSN: 1466-4526
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/09692290.2019.1624383
OpenAlexW2955717027
LanguageEN
Citations received2
References cited71

This article investigates changes in the preference concerning restrictions on minority foreign ownership of equities among powerful groups of domestic asset holders in Russia. In three episodes between 1992 and 2006, local business interests opposed the easing of the rules for minority foreign ownership while they competed for control over disputed assets. Once they gained outright control of those assets, the winning groups began favoring lowering the barriers to portfolio investment inflows that would allow them to access liquidity and investment, and also aid their efforts to legitimize ownership rights. This account of financial integration in Russia suggests that domestic economic elites change their preferences with respect to financial openness policies depending on the outcome of ongoing contests for control over the relevant assets. Scholars of financial globalization in developing and emerging market economies should consider how contestability of property rights in the absence of the rule of law can influence the preferences of key domestic groups toward policies that enable or restrict the process of financial internationalization

Asset (computer security · Business · Economics · Equity (law · Financial Integration · Financial market · Foreign direct investment · Foreign ownership · Globalization · International trade · Internationalization · Macroeconomics · Market economy · Market liquidity · Political science · Portfolio · Transparency (behavior · Global Financial Crisis and Policies · Law · Russia and Soviet political economy · State Capitalism and Financial Governance · Finance