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Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage

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  • Rudiger Ahrend

Abstract

This article investigates issues related to industrial restructuring in Russia. Based on extensive sectoral data it examines, more particularly, levels and changes in labour productivity, unit labour costs and revealed comparative advantages for a large number of Russian industrial sectors. The main findings are the following. First, impressive increases in labour productivity have been achieved since 1997, especially during the post-crisis period. Second, this has been true for all major sectors, with the exception of those which are still predominantly state-controlled or which suffer from strong state interference. Third, there have been significant relative adjustments within the industrial sector, as labour productivity increased more in less productive sectors. Since the crisis, relative unit labour costs have also adjusted considerably, as less competitive sectors experienced larger labour force reductions. Fourth, international competitiveness — as measured by revealed comparative advantage — remains limited to a small number of sectors that mainly produce primary commodities (particularly hydrocarbons) and energy-intensive basic goods. And finally, there has been a tendency for further specialisation in resource-based exports in recent years.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/14631370600881770
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 18 (2006)
Issue (Month): 3 ()
Pages: 277-295

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Handle: RePEc:taf:pocoec:v:18:y:2006:i:3:p:277-295

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  1. J. David Brown & John Earle & Almos Telegdy, 2004. "Does Privatization Raise Productivity? Evidence from Comprehensive Panel Data on Manufacturing Firms in Hungary, Romania, Russia, and Ukraine," CERT Discussion Papers 0410, Centre for Economic Reform and Transformation, Heriot Watt University.
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Cited by:
  1. Oomes , Nienke & Kalcheva, Katerina, 2007. "Diagnosing Dutch disease: Does Russia have the symptoms?," BOFIT Discussion Papers 7/2007, Bank of Finland, Institute for Economies in Transition.
  2. Benkovskis, Konstantins & Wörz, Julia, 2012. "Non-price competitiveness of exports from emerging countries," BOFIT Discussion Papers 19/2012, Bank of Finland, Institute for Economies in Transition.
  3. Katerina Kalcheva & Nienke Oomes, 2007. "Diagnosing Dutch Disease," IMF Working Papers 07/102, International Monetary Fund.
  4. Olga Garanina, 2009. "What beyond oil and gas ? Russian trade specialisation in manufactures," Post-Print halshs-00343419, HAL.
  5. Garanina, Olga, 2008. "What beyond oil and gas? Russian trade specialisation in manufactures," BOFIT Discussion Papers 23/2008, Bank of Finland, Institute for Economies in Transition.
  6. World Bank, 2005. "Belarus : Window of Opportunity to Enhance Competitiveness and Sustain Economic Growth, A Country Economic Memorandum (CEM) for the Republic of Belarus, Volume 1, Main Report," World Bank Other Operational Studies 8353, The World Bank.
  7. Vinokurov, Evgeny, 2007. "L’enclave russe de Kaliningrad : spécificité territoriale et intégration à l’économie mondiale
    [The Russian Enclave of Kaliningrad: Territorial Specificity and Integration with the World E
    ," MPRA Paper 20939, University Library of Munich, Germany.
  8. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d'Europe centrale et orientale (PECO)," Working Papers hal-00637591, HAL.
  9. Vinokurov, Evgeny, 2007. "Kaliningrad: Enclaves and Economic Integration," MPRA Paper 20937, University Library of Munich, Germany.
  10. Francesca Spigarelli, 2011. "Outward Foreign Direct Investments of the Russian Federation," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.

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