Measuring Defense Conversion in Russian Industry

SITE Working Paper No 134

49 Pages Posted: 4 Sep 1998

See all articles by John S. Earle

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Ivan Komarov

University of Maryland

Date Written: August 1998

Abstract

This paper develops and implements a methodology for quantifying defense conversion in Russian manufacturing in the early 1990s. A two-sector, three-good model is employed to analyze the flows of resources from military to non-military uses and applied to firm-level survey data under alternative definitions of military production and the MIC. An aggregation framework is constructed to estimate the total quantity and change in Russian military production, the latter decomposed into intrafirm and intersectoral resource reallocation and overall industrial decline. Although there is evidence of substantial decline in military production, the data show little reallocation to productive civilian uses, neither within the MIC nor to other manufacturing sectors.

JEL Classification: H56, P21, P31

Suggested Citation

Earle, John S. and Komarov, Ivan, Measuring Defense Conversion in Russian Industry (August 1998). SITE Working Paper No 134, Available at SSRN: https://ssrn.com/abstract=122668 or http://dx.doi.org/10.2139/ssrn.122668

John S. Earle (Contact Author)

George Mason University - Schar School of Policy and Government ( email )

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
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703-993-8023 (Phone)

HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ivan Komarov

University of Maryland ( email )

College Park
College Park, MD 20742
United States

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