Is mining fuelling long-run growth in Russia? Industry productivity growth trends since 1995
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.
|Date of creation:||12 Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland|
Phone: + 358 10 831 2268
Fax: + 358 10 831 2294
Web page: http://www.suomenpankki.fi/bofit_en/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McMillan, Margaret & Rodrik, Dani, 2012.
"Globalization, structural change, and productivity growth:,"
IFPRI discussion papers
1160, International Food Policy Research Institute (IFPRI).
- Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
- Nicholas Oulton, 2007.
"Ex Post Versus Ex Ante Measures Of The User Cost Of Capital,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 53(2), pages 295-317, 06.
- Nicholas Oulton, 2005. "Ex Post Versus Ex Ante Measures of the User Cost of Capital," CEP Discussion Papers dp0698, Centre for Economic Performance, LSE.
- Nicholas Oulton, 2005. "Ex post versus ex ante measures of the user cost of capital," LSE Research Online Documents on Economics 19885, London School of Economics and Political Science, LSE Library.
- Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
- Fernandes, Ana M., 2007.
"Structure and performance of the services sector in transition economies,"
Policy Research Working Paper Series
4357, The World Bank.
- Ana M. Fernandes, 2009. "Structure and performance of the service sector in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 467-501, 07.
- Dale W. Jorgenson & Marcel P. Timmer, 2011.
"Structural Change in Advanced Nations: A New Set of Stylised Facts,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 113(1), pages 1-29, 03.
- Jorgenson, D.W. & Timmer, Marcel, 2010. "Structural Change in Advanced Nations: A New Set of Stylised Facts," GGDC Research Memorandum GD-115, Groningen Growth and Development Centre, University of Groningen.
- Bert M. Balk, 2010. "An Assumption-Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages S224-S256, 06.
- Nauro F. Campos & Abrizio Coricelli, 2002.
"Growth in Transition: What We Know, What We Don't, and What We Should,"
Journal of Economic Literature,
American Economic Association, vol. 40(3), pages 793-836, September.
- Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan.
- Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers 3246, C.E.P.R. Discussion Papers.
- Jorgenson, Dale W. & Vu, Khuong M., 2011.
"The rise of developing Asia and the new economic order,"
Journal of Policy Modeling,
Elsevier, vol. 33(5), pages 698-716, September.
- Dale W. Jorgenson & Khuong Vu, . "The Rise of Developing Asia and The New Economic Order," Working Paper 72711, Harvard University OpenScholar.
- Ryszard Rapacki & Mariusz PrÃ³chniak, 2009. "Economic Growth Accounting in Twenty-Seven Transition Countries, 1990-2003," Eastern European Economics, M.E. Sharpe, Inc., vol. 47(2), pages 69-112, March.
- Masaaki Kuboniwa, 2011. "The Russian growth path and TFP changes in light of estimation of the production function using quarterly data," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 311-325.
- Ivanov, Youri, 1987. "Possibilities and Problems of Reconciliation of the SNA and the MPS," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 33(1), pages 1-18, March.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995.
"Long-Run Implications of Investment-Specific Technological Change,"
UWO Department of Economics Working Papers
9510, University of Western Ontario, Department of Economics.
- Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996. "Long-Run Implications of Investment-Specific Technological Change," RCER Working Papers 420, University of Rochester - Center for Economic Research (RCER).
- V. A. Bessonov & I. B. Voskoboynikov, 2008. "Fixed Capital and Investment Trends in the Russian Economy in Transition," Problems of Economic Transition, M.E. Sharpe, Inc., vol. 51(4), pages 6-48, August.
- Robert Inklaar & Marcel P. Timmer, 2007. "Of Yeast and Mushrooms: Patterns of Industry-Level Productivity Growth," German Economic Review, Verein für Socialpolitik, vol. 8, pages 174-187, 05.
- World Bank, 2005. "Russian Federation : From Transition to Development, A Country Economic Memorandum for the Russian Federation," World Bank Other Operational Studies 8628, The World Bank.
- Alexei Izyumov & John Vahaly, 2008. "Old Capital vs. New Investment in Post-Soviet Economies: Conceptual Issues and Estimates," Comparative Economic Studies, Palgrave Macmillan, vol. 50(1), pages 79-110, March.
- Hulten, Charles R., 1986. "Productivity change, capacity utilization, and the sources of efficiency growth," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 31-50.
- Douglas Gollin, 2001.
"Getting Income Shares Right,"
Department of Economics Working Papers
2001-11, Department of Economics, Williams College.
- Ofer, Gur, 1987. "Soviet Economic Growth: 1928-1985," Journal of Economic Literature, American Economic Association, vol. 25(4), pages 1767-1833, December.
- Nienke Oomes & Oksana Dynnikova, 2006. "The Utilization-Adjusted Output Gap: Is the Russian Economy Overheating?," IMF Working Papers 06/68, International Monetary Fund.
- Ivanov, Youri & Rjabushkin, Boris & Homenko, Tatjana, 1993. "Introduction of the SNA into the Official Statistics of the Commonwealth of Independent States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 279-94, September.
- Peter Havlik & Sebastian Leitner & Robert Stehrer, 2008. "Growth Resurgence, Productivity Catching-up and Labour Demand in CEECs," wiiw Statistical Reports 3, The Vienna Institute for International Economic Studies, wiiw.
- Voskoboynikov, Ilya B., 2012. "New measures of output, labour and capital in industries of the Russian economy," GGDC Research Memorandum GD-123, Groningen Growth and Development Centre, University of Groningen.
- Berndt, Ernst R. & Fuss, Melvyn A., 1986. "Productivity measurement with adjustments for variations in capacity utilization and other forms of temporary equilibrium," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 7-29.
- Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
- Erwin Diewert, 2008. "What Is To Be Done for Better productivity Measurement," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 40-52, Spring.
- J. Beaulieu & Joe Mattey, 1998. "The Workweek of Capital and Capital Utilization in Manufacturing," Journal of Productivity Analysis, Springer, vol. 10(2), pages 199-223, October.
When requesting a correction, please mention this item's handle: RePEc:hhs:bofitp:2013_019. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Päivi Määttä)
If references are entirely missing, you can add them using this form.