Drivers of Firm-Level Productivity in Russia's Manufacturing Sector

29 Pages Posted: 20 Apr 2016

See all articles by Zeljko Bogetic

Zeljko Bogetic

World Bank

Olasupo Olusi

Durham University - Centre for Empirical Research in Finance

Date Written: August 1, 2013

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.

Keywords: Transport Economics Policy & Planning, E-Business, Economic Theory & Research, Microfinance, Municipal Financial Management

Suggested Citation

Bogetic, Zeljko and Olusi, Olasupo, Drivers of Firm-Level Productivity in Russia's Manufacturing Sector (August 1, 2013). World Bank Policy Research Working Paper No. 6572. Available at SSRN: https://ssrn.com/abstract=2311105

Zeljko Bogetic (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Olasupo Olusi

Durham University - Centre for Empirical Research in Finance ( email )

Durham Business School
Mill Hill Lane
Durham, DH1 3LB
United Kingdom
+44-1913345298 (Phone)
+44-191-3345201 (Fax)

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