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Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends Since 1995

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  • Marcel P. Timmer
  • Ilya B. Voskoboynikov

Abstract

GDP per capita growth rates in Russia have been amongst the highest in the world since the mid-1990s. Previous growth accounting research at the macro-level suggests that this was mainly driven by multi-factor productivity (MFP) growth. In this paper we analyze for the first time the drivers of Russian growth at the level of industries. We derive a proper measure of capital services, instead of using stock measures as in previous research. Using this, we find that aggregate GDP growth is driven as much by capital input as MFP growth. Mining and Retailing industries are growing fast, but have poor MFP performance. In contrast, MFP growth was high in goods-producing industries but their share in GDP declined. MFP growth was highest in those industries that were particularly underdeveloped in the Russian economy in the 1990s.

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  • Marcel P. Timmer & Ilya B. Voskoboynikov, 2014. "Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends Since 1995," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 398-422, November.
    • Handle: RePEc:bla:revinw:v:60:y:2014:i:s2:p:s398-s422
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    3. Mironov, V.V. & Petronevich, A.V., 2015. "Discovering the signs of Dutch disease in Russia," BOFIT Discussion Papers 3/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
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    5. Bessonova, Evguenia, 2023. "Firms’ efficiency, exits and government procurement contracts," European Journal of Political Economy, Elsevier, vol. 76(C).
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    7. Tsvetkova, Anna, 2021. "Technical efficiency trends of Russian firms in 2013–2018," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 63, pages 91-116.
    8. 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.
    9. Binlei Gong & Robin C. Sickles, 2020. "Non-structural and structural models in productivity analysis: study of the British Isles during the 2007–2009 financial crisis," Journal of Productivity Analysis, Springer, vol. 53(2), pages 243-263, April.
    10. Dmitriy Aleksandrovich Izotov, 2018. "Economic Growth and the Trade of Russian Regions," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 92-114.
    11. 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.
    12. 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.
    13. Lilas Demmou & Andreas Wörgötter, 2015. "Boosting Productivity in Russia: Skills, Education and Innovation," OECD Economics Department Working Papers 1189, OECD Publishing.
    14. Peter Howie & Zauresh Atakhanova, 2020. "Heterogeneous labor and structural change in low- and middle-income, resource-dependent countries," Economic Change and Restructuring, Springer, vol. 53(2), pages 297-332, May.
    15. Evguenia Bessonova & Anna Tsvetkova, 2022. "Do Productivity Laggards Ever Catch Up With Leaders?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 71-107, April.
    16. Ilya B. Voskoboynikov, 2020. "Structural Change, Expanding Informality and Labor Productivity Growth in Russia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 394-417, June.

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    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 - Political Economy and Comparative Economic Systems - - Socialist 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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