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GDP growth in Russia: different capital stock series and the terms of trade

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  • Ville Kaitila

Abstract

There are different academic assessments of the principal forces behind Russia’s GDP growth. Studies that reconstruct capital stocks using gross fixed capital formation and the perpetual inventory method find that total factor productivity growth has been paramount to GDP growth. On the other hand, capital services datasets that have recently been made available find that capital developments have been instrumental in driving economic growth. We reconstruct a capital stock series for Russia for 1995–2013 and compare the results to two capital services time series using the Solow growth model. We also take into account terms of trade developments that have lent strong support to Russia’s economy. The terms of trade is shown to have been an important factor behind the development of gross fixed capital formation and thus GDP growth.

Suggested Citation

  • Ville Kaitila, 2016. "GDP growth in Russia: different capital stock series and the terms of trade," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 129-145, April.
  • Handle: RePEc:taf:pocoec:v:28:y:2016:i:2:p:129-145
    DOI: 10.1080/14631377.2015.1124556
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    1. repec:far:spaeco:y:2018:i:4:p:92-114 is not listed on IDEAS
    2. repec:kap:ecopln:v:51:y:2018:i:2:d:10.1007_s10644-016-9196-8 is not listed on IDEAS

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