Creative Destruction on the Chechen Frontier?

Posted: 30 Apr 2016

See all articles by Gregory J. Brock

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: April 28, 2016

Abstract

The economic performance of Chechnya is examined for the first time using an aggregate stochastic frontier production function method. The 15 sectors of the economy are found to be quite inefficient in the use of capital and labour to produce aggregate output. Extensive growth is likely to continue though at a lower rate as federal subsidies from Moscow end. Intensive growth is unlikely given the lack of foreign investment and the authoritarian political system. Some evidence for the emergence of a market economy is found, suggesting that Kadyrov has overseen an economic transition.

Keywords: Chechnya, Russia, efficiency, economic performance

JEL Classification: O52, O23, R11

Suggested Citation

Brock, Gregory, Creative Destruction on the Chechen Frontier? (April 28, 2016). Post-Communist Economies, Vol. 28, No. 2, 2016, Available at SSRN: https://ssrn.com/abstract=2772100

Gregory Brock (Contact Author)

Georgia Southern University - Department of Economics ( email )

P.O. Box 8153
Statesboro, GA 30460-8153
United States
912-478-5579 (Phone)

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