Modern Approaches to Measuring the State Sector: Methodology and Empirics[Современные Подходы К Измерению Государственного Сектора: Методология И Эмпирика]

This article attempts to estimate the scale of state participation in the Russian есоnomу in temporal dynamics and in comparison with other countries. Оur unique methodology suggests а set of alternative approaches to measuring 3 independent components: state­owned eпterprises (SOEs), state unitary enterprises and the public administration sector. Our results reveal growth of state involvement in the есоnomy up to 46% of GDP in 2016. Theshare of SOEs and public administration iп GDP rose from 20.2% and 16.9% in 2006 to 25.3% and 19.2% in 2016, respectively, Ьу conservative estimates. А cross­country comparison suggests that market capitalization, employment and SOEs' share in GDP are significant and increasing. The share of public administration corresponds to the same esimate for OECD countries, Ьнt it is also increasing. The total state share and its gowth can be evidence of an alarming trend for the Russian economy. It is 6-12% higher than the estimate for most developing countries and, unlike in China or India, it keeps growing. This leads to state expansion in the economy, growth of state influence on SOEs and а transfer of noneconomic risks to SOEs. Apart from increasing state involvement in added value creation, the state plays аn active role in reallocation of financial resources, and there is some evidence that it is even more significant than the state share in creating added value measured by GDP.