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Is mining fuelling long-run growth in Russia? : Industry productivity growth trends since 1995

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  • Timmer, Marcel P.
  • Voskoboynikov, Ilya B.

Abstract

GDP per capita growth rates in Russia have been among the highest in the world since the mid?1990s. Previous growth accounting research suggests that this was mainly driven by multi-factor productivity (MFP) growth. In this paper we analyse for the first time the drivers of Russian growth for thirty-four industries over the period 1995 to 2008. We pay in particular attention to the construction of a proper measure of capital services, to use in place of the stock measures employed in previous research. Based on these new measures, we find that aggregate GDP growth is driven as much by capital input as by MFP growth. Mining and Retailing account for an increasing share of the inputs, but are weak in terms of MFP performance. In contrast, MFP growth was rapid in goods-producing industries, but the sector's GDP share declined. The major drivers of MFP growth were in the high-skilled services industries that were particularly underdeveloped in the Russian economy in the 1990s. JEL: O47; P28; L16 Key words: industrial growth accounting, structural change, Russia

Suggested Citation

  • Timmer, Marcel P. & Voskoboynikov, Ilya B., 2013. "Is mining fuelling long-run growth in Russia? : Industry productivity growth trends since 1995," BOFIT Discussion Papers 19/2013, Bank of Finland, Institute for Economies in Transition.
  • Handle: RePEc:bof:bofitp:2013_019
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    Cited by:

    1. 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.
    2. Zaytsev, Alexander, 2015. "Межстрановые Различия В Душевых Ввп И Производительности Труда: Роль Капитала, Уровня Технологий И Природной Ренты
      [International differences in per capita GDP and labor productivity: role of capit
      ," MPRA Paper 71606, University Library of Munich, Germany, revised May 2016.
    3. Lilas Demmou & Andreas Wörgötter, 2015. "Boosting Productivity in Russia: Skills, Education and Innovation," OECD Economics Department Working Papers 1189, OECD Publishing.
    4. Mironov, Valeriy V. & Petronevich, Anna V., 2015. "Discovering the signs of Dutch disease in Russia," Resources Policy, Elsevier, vol. 46(P2), pages 97-112.
    5. Voskoboynikov, Ilya B., 2017. "Structural change, expanding informality and labour productivity growth in Russia," BOFIT Discussion Papers 18/2017, Bank of Finland, Institute for Economies in Transition.
    6. Marshall Reinsdorf & Robert Hill, 2014. "The 32nd IARIW General Conference, Boston, Massachusetts, 2012: Editors’ Introduction," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 277-280, November.

    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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