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Growth in Post-Soviet Russia: A Tale of Two Transitions?

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  • Daniel Berkowitz
  • David DeJong

Abstract

In the early stages of post-Soviet Russia’s economic transition, small-scale entrepreneurial activity appeared to be a strong engine of growth. Moreover, striking regional variations in initial conditions and adopted policy reforms appeared useful in accounting statistically for observed regional variations in entrepreneurial activity. Here, we investigate whether these relationships have persisted as Russia’s transition has continued to evolve, and find that they have not. We then document that the emergence of bank-issued credit, virtually non-existent outside of Moscow prior to 2000, has been an important engine of growth since 2000. Thus to date, Russia’s post-Soviet development appears as a tale of two distinct transition paths.

Suggested Citation

  • Daniel Berkowitz & David DeJong, 2009. "Growth in Post-Soviet Russia: A Tale of Two Transitions?," Working Paper 385, Department of Economics, University of Pittsburgh, revised Dec 2009.
    • Handle: RePEc:pit:wpaper:385
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    File URL: http://www.econ.pitt.edu/papers/Daniel_JEBO_Dec2009.pdf
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