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Is mining fuelling long-run growth in Russia? Industry productivity growth trends since 1995

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  • Timmer , Marcel P.

    ()
    (BOFIT)

  • Voskoboynikov , Ilya B.

    ()
    (BOFIT)

Abstract

GDP per capita growth rates in Russia have been among the highest in the world since the mid-1990s. Previous growth accounting research suggests that this was mainly driven by multi-factor productivity (MFP) growth. In this paper we analyse for the first time the drivers of Russian growth for thirty-four industries over the period 1995 to 2008. We pay in particular attention to the construction of a proper measure of capital services, to use in place of the stock measures employed in previous research. Based on these new measures, we find that aggregate GDP growth is driven as much by capital input as by MFP growth. Mining and Retailing account for an increasing share of the inputs, but are weak in terms of MFP performance. In contrast, MFP growth was rapid in goods-producing industries, but the sector’s GDP share declined. The major drivers of MFP growth were in the high-skilled services industries that were particularly underdeveloped in the Russian economy in the 1990s.

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Bibliographic Info

Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 19/2013.

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Length: 37 pages
Date of creation: 12 Aug 2013
Date of revision:
Handle: RePEc:hhs:bofitp:2013_019

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Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland
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Web page: http://www.suomenpankki.fi/bofit_en/
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Keywords: industrial growth accounting; structural change; Russia;

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