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Russian 1998–2007 TFP decomposed: some inspiration emerging from inherited Soviet legacy

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  • Gregory Brock

    (Georgia Southern University)

  • Constantin Ogloblin

    (Georgia Southern University)

Abstract

Using a recently developed stochastic Translog production function frontier model, technical inefficiency, technological progress and returns to scale are examined during Russia’s 1998–2007 cyclical expansion at the branch level including both the market and non-market economy. The service sector plus high skill-intensive goods production is shown to be relatively more efficient than traditional Soviet era goods sectors. Technical efficiency decreases markedly over the expansion while technological progress is quite high (23 %) suggesting an expanding frontier leaving many branches behind as the economy adjusts away from the early transition era. Much greater attention to human capital policies are suggested to foster intensive growth in an environment of low oil and gas prices.

Suggested Citation

  • Gregory Brock & Constantin Ogloblin, 2018. "Russian 1998–2007 TFP decomposed: some inspiration emerging from inherited Soviet legacy," Economic Change and Restructuring, Springer, vol. 51(2), pages 135-151, May.
    • Handle: RePEc:kap:ecopln:v:51:y:2018:i:2:d:10.1007_s10644-016-9196-8
    DOI: 10.1007/s10644-016-9196-8
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    More about this item

    Keywords

    Total factor productivity; Russian economy; Economic growth;
    All these keywords.

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General

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