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Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage

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  • Rudiger Ahrend

Abstract

This article investigates issues related to industrial restructuring in Russia. Based on extensive sectoral data it examines, more particularly, levels and changes in labour productivity, unit labour costs and revealed comparative advantages for a large number of Russian industrial sectors. The main findings are the following. First, impressive increases in labour productivity have been achieved since 1997, especially during the post-crisis period. Secondly, this has been true for all major sectors, with the exception of those which are still predominantly state controlled or which suffer from strong state interference. Thirdly, there have been significant relative adjustments within the industrial sector, as labour productivity increased more in less productive sectors. Since the crisis, relative unit labour costs have also adjusted considerably, as less competitive sectors experienced relatively slower wage growth and larger labour force reductions. Fourthly, international ... La restructuration du secteur industriel russe : Evolutions de la productivité, de la compétitivité et de l‘avantage comparatif Cet article étudie des questions relatives à la restructuration industrielle russe. Fondé sur une base étendue de données sectorielles, il examine plus spécifiquement les niveaux et les variations de la productivité du travail, des coûts unitaires de main d’œuvre et des avantages comparatifs révélés pour un grand nombre de secteurs industriels. Les principaux résultats sont les suivants. Premièrement, des augmentations importantes dans la productivité du travail ont été atteintes depuis 1997, notamment dans la période qui a suivi la crise. Deuxièmement, ceci a été vrai pour la totalité des principaux secteurs à l’exception de ceux qui sont encore majoritairement contrôlés par l’État ou qui souffrent d’une forte intervention de l’État. Troisièmement, il y a eu de significatifs ajustements relatifs dans le secteur industriel puisque l’augmentation de la productivité du travail a été plus importante dans les secteurs les moins productifs. Depuis la crise, les coûts unitaires relatifs ...

Suggested Citation

  • Rudiger Ahrend, 2004. "Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage," OECD Economics Department Working Papers 408, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:408-en
    DOI: 10.1787/148133273748
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    References listed on IDEAS

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    1. Brown, J David & Earle, John, 2004. "Does Privatization Raise Productivity?," CEPR Discussion Papers 4791, C.E.P.R. Discussion Papers.
    2. Evguenia Bessonova & Konstantin Kozlov & Ksenia Yudaeva, 2003. "Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms," DEGIT Conference Papers c008_009, DEGIT, Dynamics, Economic Growth, and International Trade.
    3. Rudiger Ahrend, 2005. "Speed of Reform, Initial Conditions or Political Orientation? Explaining Russian Regions' Economic Performance," Post-Communist Economies, Taylor & Francis Journals, vol. 17(3), pages 289-317.
    4. J. David Brown & John Earle & Almos Telegdy, 2004. "Does Privatization Raise Productivity? Evidence from Comprehensive Panel Data on Manufacturing Firms in Hungary, Romania, Russia, and Ukraine," CERT Discussion Papers 0410, Centre for Economic Reform and Transformation, Heriot Watt University.
    5. Rudiger Ahrend & William Tompson, 2005. "Unnatural Monopoly: The Endless Wait for Gas Sector Reform in Russia," Europe-Asia Studies, Taylor & Francis Journals, vol. 57(6), pages 801-821.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    avantage comparatif révélé; competitiveness; compétitivité; contrôle de l'État; coût unitaire de main-d'œuvre; industrie; industry; private sector; productivity; productivité; restructuration; restructuring; revealed comparative advantage; Russia; Russie; salaires; secteur; secteur privé; sector; state control; transition; transition; unit labour costs; wages;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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