Universität zu Köln

Diez, Javier Revilla ORCID: 0000-0003-2065-1380, Schiller, Daniel ORCID: 0000-0002-8312-0547 and Zvirgzde, Daria (2016). Doing business in Ukraine - multinational companies in the trap of regional institutions? Environ. Plan. C-Gov. Policy, 34 (4). S. 638 - 656. LONDON: SAGE PUBLICATIONS LTD. ISSN 1472-3425

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Abstract

The transition process in Ukraine is far from being completed and large differences among the regions prevail. The adaptation of market-based and reliable institutional arrangements differs strongly among the capital region, the western (Lviv), and the eastern part (Kharkiv) of the country. Conducive regional institutions are necessary for two reasons. First, multinational corporations (MNCs) need transparent and reliable institutions to fully exploit benefits from their investment decision. Second, MNCs might only deliver positive impacts to the regional economy which are envisaged by the local governments under these circumstances. This paper aims to assess the quality of regional institutions from the perspective of MNCs and the interdependence between institutional quality and investment motives by using data from an explorative enterprise survey of 153 foreign firms in three Ukrainian regions. The analysis of the World Bank's Doing Business indicators clearly shows strong regional variation in institutional quality in Ukraine. Due to higher institutional quality, investors are attracted to the capital region and are potentially performing more sophisticated activities and create a higher value for the regional economy. Whereas the capital region can be seen as the frontrunner in the transition process, the regional economic system of Kharkiv is still strongly based on persisting networks from the Soviet time which leads to worse evaluations of the institutional quality. In Lviv, the post-Soviet legacy is less pronounced and institutional quality is assessed more positive than in Kharkiv, but still falls behind the capital region. As a result of the very distinct assessment of the regional quality of institutions, region-specific policy measures are proposed.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Diez, Javier Revilla UNSPECIFIED orcid.org/0000-0003-2065-1380 UNSPECIFIED Schiller, Daniel UNSPECIFIED orcid.org/0000-0002-8312-0547 UNSPECIFIED Zvirgzde, Daria UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-273235
DOI:	10.1177/0263774X16642447
Journal or Publication Title:	Environ. Plan. C-Gov. Policy
Volume:	34
Number:	4
Page Range:	S. 638 - 656
Date:	2016
Publisher:	SAGE PUBLICATIONS LTD
Place of Publication:	LONDON
ISSN:	1472-3425
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language FOREIGN DIRECT-INVESTMENT; CLOTHING INDUSTRY; TRANSCARPATHIA; GLOBALIZATION; DETERMINANTS; ENTERPRISES; LOCATION; RUSSIA; CHOICE Multiple languages Environmental Studies; Public Administration Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/27323