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Measuring defense conversion in Russian industry


  • John Earle
  • Ivan Komarov


This paper develops and implements a methodology for quantifying defense conversion in Russian manufacturing in the early 1990s. A two-sector, three-good model is employed to analyze the flows of resources from military to non-military uses and applied to firm-level survey data under alternative definitions of military production and the MIC. An aggregation framework is constructed to estimate the total quantity and change in Russian military production, the latter decomposed into intrafirm and intersectoral resource reallocation and overall industrial decline. Although there is evidence of substantial decline in military production, the data show little reallocation to productive civilian uses, neither within the MIC nor to other manufacturing sectors.

Suggested Citation

  • John Earle & Ivan Komarov, 2001. "Measuring defense conversion in Russian industry," Defence and Peace Economics, Taylor & Francis Journals, vol. 12(2), pages 103-144.
  • Handle: RePEc:taf:defpea:v:12:y:2001:i:2:p:103-144 DOI: 10.1080/10430710108404980

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    Cited by:

    1. J. David Brown & John S. Earle, 2002. "Job Reallocation and Productivity Growth under Alternative Economic Systems and Policies: Evidence from the Soviet Transition," CERT Discussion Papers 0208, Centre for Economic Reform and Transformation, Heriot Watt University.
    2. Brown, J David & Earle, John S, 2000. "Competition And Firm Performance: Lessons From Russia," CEPR Discussion Papers 2444, C.E.P.R. Discussion Papers.
    3. Brown, J. David & Earle, John S., 2004. "Economic Reforms and Productivity-Enhancing Reallocation in the Post-Soviet Transition," IZA Discussion Papers 1044, Institute for the Study of Labor (IZA).

    More about this item


    Conversion; Demilitarization; Military-industrial complex; Military production; Restructuring; Defense industry; Russia;

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies


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