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Drivers of firm-level productivity in Russia's manufacturing sector

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  • Bogetic, Zeljko
  • Olusi, Olasupo

Abstract

This note presents the results of an empirical analysis of firm-level productivity growth in Russia's manufacturing sector during the period 2003-08 using a rich Amadeus database as well as the recent EBRD/World Bank Business Enterprise and Performance surveys (BEEPs). The results show that productivity grew steadily between 2003 and 2008, with an annual growth rate averaging 4 percent over the period, showing no signs of a slowdown from the previous period after the 1998 crisis. Firm characteristics such as size, location, age, and the structure of firm ownership are important determinants of productivity, as evidenced by positive effects of scale economies (large firm effect), agglomeration (Moscow-city effect), private ownership, and a firm's industry dominance. Supplemental analysis of the quality of infrastructure -- water, electricity, transport, and the internet -- using BEEPS data show that infrastructure quality gaps reduce firm productivity with water supply gaps having the largest impact.

Suggested Citation

  • Bogetic, Zeljko & Olusi, Olasupo, 2013. "Drivers of firm-level productivity in Russia's manufacturing sector," Policy Research Working Paper Series 6572, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6572
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    References listed on IDEAS

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    Cited by:

    1. Gonchar, Ksenia & Greve, Maria, 2022. "The impact of political risk on FDI exit decisions," Economic Systems, Elsevier, vol. 46(2).
    2. Kudrin, A. & Gurvich, E., 2015. "Government Stimulus or Economic Incentives?," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 179-186.
    3. Simachev, Yuri & Kuzyk, Mikhail & Feygina, Vera, 2014. "Russian policies in support of innovation: elusive quest for efficiency," MPRA Paper 56750, University Library of Munich, Germany.
    4. Hu, Shengming & Zhang, Yunyun & Hu, Yao & Wang, Hui, 2024. "Born by water: Does water resource reallocation promote entrepreneurship?," China Economic Review, Elsevier, vol. 87(C).
    5. Gregory Brock & Constantin Ogloblin, 2018. "Russian 1998–2007 TFP decomposed: some inspiration emerging from inherited Soviet legacy," Economic Change and Restructuring, Springer, vol. 51(2), pages 135-151, May.
    6. Kudrin, Alexey & Gurvich, Evsey, 2015. "A new growth model for the Russian economy1," Russian Journal of Economics, Elsevier, vol. 1(1), pages 30-54.

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    Keywords

    Transport Economics Policy&Planning; E-Business; Economic Theory&Research; Microfinance; Municipal Financial Management;
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