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Defence Industry Transformation in Russia: Evidence from a Longitudinal Survey

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  • Alexei Izyumov
  • Leonid Kosals
  • Rosalina Ryvkina

Abstract

The article is devoted to the new phenomena in the market transformation of the Russian defence-industrial complex. Based on the data generated by the repeated survey of the CEOs (general directors) of defence enterprises in 1995-99, it examines economic performance of enterprises, their conflicts with the government and efforts at internal restructuring brought about by reductions of Russia's defence spending, mass privatisation and opening up of the domestic market. We found that despite the dramatic reduction in defence orders, inconsistent government policies and extremely unfavourable macroeconomic environment, the Russian defence industry has made significant progress in its adjustment to the market. Even before the devaluation of the ruble in the autumn of 1998 economic performance of defence enterprises had been gradually improving; it entered a virtual boom since then. Contrary to widely held views, the painful experience of the 1990s has not made the top managers of the defence industry more hostile to reforms: at the end of the decade they were generally more supportive of the market than in 1995.

Suggested Citation

  • Alexei Izyumov & Leonid Kosals & Rosalina Ryvkina, 2000. "Defence Industry Transformation in Russia: Evidence from a Longitudinal Survey," Post-Communist Economies, Taylor & Francis Journals, vol. 12(2), pages 215-228.
    • Handle: RePEc:taf:pocoec:v:12:y:2000:i:2:p:215-228
    DOI: 10.1080/14631370050043652
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    References listed on IDEAS

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    1. Derek C Jones, 1998. "The Economic Effects of Privatization: Evidence from a Russian Panel," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 40(2), pages 75-102, July.
    2. Susan J Linz & Gary Krueger, 1998. "Enterprise Restructuring in Russia's Transition Economy: Formal and Informal Mechanisms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 40(2), pages 5-52, July.
    3. Antonio Sanchez‐Andres, 1998. "Privatisation, decentralisation and production adjustment in the Russian defence industry," Europe-Asia Studies, Taylor & Francis Journals, vol. 50(2), pages 241-255.
    4. Sergei Aukutsionek & Igor Filatochev & Rostislav Kapelyushnikov & Vladimir Zhukov, 1998. "Dominant shareholders, restructuring and performance of privatised companies in Russia: An analysis and some policy implications," Post-Communist Economies, Taylor & Francis Journals, vol. 10(4), pages 495-517.
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    Cited by:

    1. Nansi Paulraj, 2016. "The JCPOA and Changing Dimensions of the Russia–Iran Relations," Contemporary Review of the Middle East, , vol. 3(1), pages 95-110, March.
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    3. Štefan Bojnec, 2012. "Defence Enterprise Surveys On Market Outlets: The Case Of Slovenia," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(3), pages 313-320, June.

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