Russian 1998–2007 TFP Decomposed: Some Inspiration Emerging from Inherited Soviet Legacy

Economic Change and Restructuring, May 2018, Vol. 51(2), 135-151

Posted: 24 Mar 2017 Last revised: 3 Apr 2018

See all articles by Gregory J. Brock

Gregory J. Brock

Georgia Southern University - Department of Economics

Constantin Ogloblin

Georgia Southern University -- Dept. of Finance and Economics

Date Written: October 24, 2016

Abstract

Using a recently developed stochastic Translog production function frontier model, technical inefficiency, technological progress and returns to scale are examined during Russia’s 1998-2007 cyclical expansion at the branch level including both the market and non-market economy. The service sector plus high skill-intensive goods production is shown to be relatively more efficient than traditional Soviet era goods sectors. Technical efficiency decreases markedly over the expansion while technological progress is quite high (23%) suggesting an expanding frontier leaving many branches behind as the economy adjusts away from the early transition era. Much greater attention to human capital policies are suggested to foster intensive growth in an environment of low oil and gas prices.

Keywords: Total Factor Productivity, Russian Economy, Economic Growth

JEL Classification: R1, O4, O0

Suggested Citation

Brock, Gregory and Ogloblin, Constantin, Russian 1998–2007 TFP Decomposed: Some Inspiration Emerging from Inherited Soviet Legacy (October 24, 2016). Economic Change and Restructuring, May 2018, Vol. 51(2), 135-151 , Available at SSRN: https://ssrn.com/abstract=2940251

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)

Constantin Ogloblin

Georgia Southern University -- Dept. of Finance and Economics ( email )

P.O. Box 8152
Statesboro, GA 30460
United States

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