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

26 Pages Posted: 7 Dec 2008

See all articles by Daniel Berkowitz

Daniel Berkowitz

University of Pittsburgh - Department of Economics

David N. DeJong

University of Pittsburgh - Department of Economics

Date Written: November 2008

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

Berkowitz, Daniel and Dejong, David N., Growth in Post-Soviet Russia: A Tale of Two Transitions (November 2008). Available at SSRN: https://ssrn.com/abstract=1311465 or http://dx.doi.org/10.2139/ssrn.1311465

Daniel Berkowitz (Contact Author)

University of Pittsburgh - Department of Economics ( email )

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HOME PAGE: http://www.pitt.edu/~dmberk

David N. Dejong

University of Pittsburgh - Department of Economics ( email )

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Pittsburgh, PA 15260
United States
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