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Russian manufacturing and the threat of ‘Dutch disease’ - A comparison of competitiveness developments in Russian and Ukrainian industry

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Author Info
Rudiger Ahrend
Donato de Rosa
William Tompson ()

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Abstract

This paper examines the development of Russian industry in comparison with that of Ukrainian industry during 1995–2004 in an effort to ascertain to what extent, if any, Russian manufacturing showed signs of succumbing to ‘Dutch disease’. Ukraine and Russia began the market transition with broadly similar institutions, industrial structures and levels of technology, and the economic reforms implemented in the two countries were also similar, although Ukraine was reckoned to lag behind Russia in many areas. The main difference between them is Russia’s far greater resource wealth. It follows that differences in industrial development since 1991 may to some degree be attributable to differences in initial natural resource endowments. In short, Ukraine could provide a rough approximation of how a resource-poor Russia might have developed over the transition.

Le secteur manufacturier russe et la menace du « syndrome néerlandais » Comparaison du développement de la compétitivité des industries russe et ukrainienne
Cette étude analyse le développement de l’industrie russe en le comparant avec celui de l’industrie ukrainienne sur la période 1995-2004, afin d’établir - si tel était le cas - dans quelle mesure l’industrie manufacturière en Russie serait affectée par le ‘syndrome néerlandais’. L’Ukraine et la Russie ont commencé leur transition vers l’économie de marché avec des institutions, des structures industrielles et des niveaux de technologie globalement similaires et les réformes mises en œuvre dans les deux pays ont également suivi une voie similaire, même si l’Ukraine est considérée comme étant en retard par rapport à la Russie dans beaucoup de domaines. La différence principale entre les deux pays est la richesse en ressources naturelles, bien plus importante en Russie. Il en résulte que les différences dans le développement industriel depuis 1991 peuvent, dans une certaine mesure, être attribuées aux différences de dotations intiales en ressources naturelles. En résumé, l’Ukraine peut fournir une approximation fruste de la manière dont une Russie pauvre en ressources naturelles aurait pu se développer sur la période de transition.

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 540.

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Date of creation: 25 Jan 2007
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Handle: RePEc:oec:ecoaaa:540-en

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Keywords: productivity productivité transition transition restructuring restructuration gas gaz Russia Russie natural resources dutch disease oil ressources naturelles syndrome néerlandais pétrole industry competitiveness revealed comparative advantage unit labour costs industrie compétitivité avantage comparatif révélé coût unitaire de main-d'œuvre salaires wages Ukraine Ukraine

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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