The Impact of Russian Retail Chains Business Practices on Suppliers Performance Before and After the New Legislative Regulation: Microdata Assessment

Authors

Abstract

The impact of contractual arrangements in the retail sector on suppliers, as well as the consequences of the regulation imposed by the Russian Federal Trade Law, remain controversial. The article aims to empirically assess the trends in payments of Russian suppliers to retailers and their operational performance, along with the concentration of production in 2006–2012. The results are contradictory. Since the enactment of the Federal Trade Law business expenses of the food sector companies, with a significant share of payments to retailers, have caught up with the expenses of the non-food sector enterprises. Moreover, there was the relative growth of the large suppliers expenses compared to the smaller ones. Although the current studies usually interpret such a redistribution of expenses as a potential source of monopolization, we did not receive any support to the idea that the growth of modern retail formats in regional markets is accompanied by driving out of smaller suppliers.

Keywords:

retail sector, Federal Trade Law, vertical restraints

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References

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Published

2015-10-26

How to Cite

Avdasheva, S. B., Khomik, O. S., & Khramova, M. N. (2015). The Impact of Russian Retail Chains Business Practices on Suppliers Performance Before and After the New Legislative Regulation: Microdata Assessment. Russian Management Journal, 13(3), 3–38. Retrieved from https://rjm.spbu.ru/article/view/171

Issue

Section

Theoretical and Empirical Studies

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