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Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends since 1995

37 Pages Posted: 24 Aug 2013  

Marcel P. Timmer

University of Gronigen - Faculty of Economics

Ilya B. Voskoboynikov

National Research University Higher School of Economics; Groningen Growth and Development Centre

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Date Written: August 12, 2013

Abstract

GDP per capita growth rates in Russia have been among the highest in the world since the mid-1990s. Previous growth accounting research suggests that this was mainly driven by multi-factor productivity (MFP) growth. In this paper we analyse for the first time the drivers of Russian growth for thirty-four industries over the period 1995 to 2008. We pay in particular attention to the construction of a proper measure of capital services, to use in place of the stock measures employed in previous research. Based on these new measures, we find that aggregate GDP growth is driven as much by capital input as by MFP growth. Mining and Retailing account for an increasing share of the inputs, but are weak in terms of MFP performance. In contrast, MFP growth was rapid in goods-producing industries, but the sector’s GDP share declined. The major drivers of MFP growth were in the high-skilled services industries that were particularly underdeveloped in the Russian economy in the 1990s.

Keywords: industrial growth accounting, structural change, Russia

JEL Classification: O47, P28, L16

Suggested Citation

Timmer, Marcel P. and Voskoboynikov, Ilya B., Is Mining Fuelling Long-Run Growth in Russia? Industry Productivity Growth Trends since 1995 (August 12, 2013). BOFIT Discussion Paper No. 19/2013. Available at SSRN: https://ssrn.com/abstract=2314888 or http://dx.doi.org/10.2139/ssrn.2314888

Marcel P. Timmer

University of Gronigen - Faculty of Economics ( email )

Postbus 72
9700 AB Groningen
Netherlands

Ilya Borisovich Voskoboynikov (Contact Author)

National Research University Higher School of Economics ( email )

Moscow

HOME PAGE: http://www.hse.ru/en/org/persons/503434

Groningen Growth and Development Centre

Postbus 72
Groningen
Netherlands

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