IDEAS home Printed from https://ideas.repec.org/a/far/spaeco/y2019i1p170-184.html
   My bibliography  Save this article

Analysis of the Sustainability of the ‘Pomogaistvo’ Institution

Author

Listed:
  • Denis Vitalyevich Krylov

    (School of Economics and Management, Far Eastern Federal University)

Abstract

This article discusses the phenomenon of the informal economy. The main emphasis is placed on the ‘pomogaistvo’ institution, which is typical for the border regions of Russia. The functioning of this institution is related to the possibility of duty-free importation of up to 50 kg of various goods, the total value of which does not exceed $1,500 (from January 1, 2019 the rate decreased to 25 kg and $500) in accordance with the customs code of the Eurasian Economic Union. This research is focused on the ‘pomogaistvo’ institution mainly taking place in the sector of the informal economy in Primorsky Krai. The main objectives of the research are: to find out why the ‘pomogaistvo’ institution stopped its work for a year and a half after the currency crisis of 2014, but later regained its activity and former influence; to study how the changing technologies affect the formalization / legalization of the institution of the informal economy. The research is based on qualitative data collected in the field using the following basic methods: in-depth interview and naturalistic observation. The article presents a description of the functioning of the ‘pomogaistvo’ institution, the processes taking place in it, a description of the roles of agents operating within this institution, and an assessment of the scale of this activity in the form of providing an approximate volume of goods imported into the Russian Federation from China. The analysis of the obtained empirical data is carried out on the basis of the positions of the North Douglas institutions concept, and more broadly, in the framework of the new institutional economic theory. As a result of processing the empirical data, it was concluded that institutional inertia and the introduction of electronic commerce technology into this institution were the main factors in the recovery of the ‘pomogaistvo’ institution. A contradiction was found between empirical data and a theory that the integration of technologies that reduce transaction costs in the institution of the informal economy does not lead to the formalization of this institution

Suggested Citation

  • Denis Vitalyevich Krylov, 2019. "Analysis of the Sustainability of the ‘Pomogaistvo’ Institution," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 170-184.
    • Handle: RePEc:far:spaeco:y:2019:i:1:p:170-184
    DOI: 10.14530/se.2019.1.170-184
    as

    Download full text from publisher

    File URL: http://www.spatial-economics.com/images/spatial-econimics/2019_1/SE.2019.1.170-184.Krylov.pdf
    Download Restriction: no
    File URL: http://spatial-economics.com/eng/arkhiv-nomerov/2019/101-2019-1/907-SE-2019-1-170-184
    Download Restriction: no
    File URL: https://libkey.io/10.14530/se.2019.1.170-184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    --->

    References listed on IDEAS

    as
    1. Kakhkharov, Jakhongir & Akimov, Alexandr & Rohde, Nicholas, 2017. "Transaction costs and recorded remittances in the post-Soviet economies: Evidence from a new dataset on bilateral flows," Economic Modelling, Elsevier, vol. 60(C), pages 98-107.
    2. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    3. Feige, Edgar L., 1990. "Defining and estimating underground and informal economies: The new institutional economics approach," World Development, Elsevier, vol. 18(7), pages 989-1002, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Аникина, Надежда & Стукач, Виктор, 2012. "Неформальные Институты Трансакционного Сектора Региона: Агроэкономический Аспект [Informal institutions transaction sector of the region: the agro-economic aspect]," MPRA Paper 74171, University Library of Munich, Germany, revised Feb 2016.
    2. Branimir Jovanovic, 2015. "Kalman Filter Estimation of the Unrecorded Economy in Macedonia," Working Papers 2015-02, National Bank of the Republic of North Macedonia.
    3. Élodie Bertrand, 2006. "La thèse d'efficience du « théorème de Coase ». Quelle critique de la microéconomie ?," Revue économique, Presses de Sciences-Po, vol. 57(5), pages 983-1007.
    4. Stanisław Cichocki, 2008. "Shadow economy and its relations with tax system and state budget in Poland 1995 - 2007," Working Papers 2008-05, Faculty of Economic Sciences, University of Warsaw.
    5. Yoonkyo Cho & Taehwan Kim & Jaewhak Roh, 2021. "An analysis of the effects of electronic commerce on the Korean economy using the CGE model," Electronic Commerce Research, Springer, vol. 21(3), pages 831-854, September.
    6. Estrin, Saul & Guerrero, Maribel & Mickiewicz, Tomasz, 2024. "A framework for investigating new firm entry: The (limited) overlap between informal-formal and necessity-opportunity entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(4).
    7. Nino Kokashvili & Irakli Barbakadze & Ketevani Kapanadze, 2017. "How Participating In The Shadow Economy Affects The Growth Of Latvian Firms," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 101, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    9. Andres Ruiz Serrano & Andrea Musumeci & Juan Julie Li & Mauricio Ruiz Serrano & Carolina Serrano Barquin, 2025. "Rationality and the exploitation of natural resources: a psychobiological conceptual model for sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(6), pages 13167-13189, June.
    10. Ahmad, Waqar & Hussain, Babar, 2023. "Fiscal Policy Effects on Shadow Economy: Empirical Evidence from Developing Countries," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 30(2), July.
    11. Jascha-Alexander Koch & Jens Lausen & Moritz Kohlhase, 2021. "Internalizing the externalities of overfunding: an agent-based model approach for analyzing the market dynamics on crowdfunding platforms," Journal of Business Economics, Springer, vol. 91(9), pages 1387-1430, November.
    12. Gemmell, Norman & Hasseldine, John, 2012. "The Tax Gap: A Methodological Review," Working Paper Series 18717, Victoria University of Wellington, Chair in Public Finance.
    13. Ogunyemi, Oluwole Ibikunle & Adedokun, Adebayo Sunday, 2014. "Towards West-Africa regional economic integration: Formalizing the informal sector," Conference papers 332450, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Antragama Ewa Abbas & Thomas van Velzen & Hosea Ofe & Geerten van de Kaa & Anneke Zuiderwijk & Mark de Reuver, 2024. "Beyond control over data: Conceptualizing data sovereignty from a social contract perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-21, December.
    15. Schilling, Markus & Chiang, Lichun, 2011. "The effect of natural resources on a sustainable development policy: The approach of non-sustainable externalities," Energy Policy, Elsevier, vol. 39(2), pages 990-998, February.
    16. Scemama, Pierre & Levrel, Harold, 2019. "Influence of the Organization of Actors in the Ecological Outcomes of Investment in Restoration of Biodiversity," Ecological Economics, Elsevier, vol. 157(C), pages 71-79.
    17. Shteryo Nozharov & Petya Koralova – Nozharova, 2018. "Transaction Costs and Institutional Change of Trade Litigations in Bulgaria," Nauchni trudove, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 123-133, July.
    18. Junaid Ahmed & Mazhar Mughal & Inmaculada Martínez‐Zarzoso, 2021. "Sending money home: Transaction cost and remittances to developing countries," The World Economy, Wiley Blackwell, vol. 44(8), pages 2433-2459, August.
    19. Sara Singleton, 1999. "Commons Problems, Collective Action and Efficiency," Journal of Theoretical Politics, , vol. 11(3), pages 367-391, July.
    20. Robert W. Hahn & Robert N. Stavins, 2011. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 267-294.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:far:spaeco:y:2019:i:1:p:170-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sergey Rogov (email available below). General contact details of provider: https://edirc.repec.org/data/ecrinru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.