Institutional analysis and development prospects of therussian pipe market
The author proposes the methodology of institutional analysis of the market based on an assessment of two components. They are the complexity and the uncertainty. The study aims to determine the level of institutional complexity and uncertainty of the Russian pipe market. The basis of the identification of the level of institutional complexity is a classification of the market by type of entry barriers. Institutional uncertainty is measured by the level of transaction costs in the market. The analysis found that for the Russian companies the capacity of the pipe market is reduced due to the unfavorable global economic situation and the crisis of the Russian economy. Therules in the market are formed by related industries. In recent years there is a pressure on the Russian producers from China. At the same time, the domestic producers have an opportunity to retain and strengthen market position due to the economic and social changes and increased barriers to entry the market for foreign companies. The analysis revealed the average level of institutional uncertainty and a significant level of institutional complexity of the Russian pipe market. Diagnostics of specific institutional parameters of the market allowed the author to offer strategic development of Russian pipe industry in the current economic situation.