Global slowdown and the Russian economy
This study considers the influence of structutal change to aggregate labour productivity growth of the Russian economy. The term “structural change” refers to labour reallocation both between industries and between formal and informal segments within an industry. Using Russia KLEMS and official Rosstat data we decompose aggregate labour productivity growth into intra-industry (within) and between industry effects with four alternative methods of the shift share analysis. All methods provide consistent results and demonstrate that total labour reallocation has been growth enhancing though the informality expansion has had the negative effect. As our study suggests, it is caused by growing variation in productivity levels across industries.
GDP per capita growth rates in Russia have been amongst 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 for the period 1995 to 2008. We pay in particular attention to derive a proper measure of capital services, instead of the stock measures used in previous research. Using these new measures, we find that aggregate GDP growth is driven as much by capital input as MFP growth. Mining and Retailing take up an increasing share of the input, but have poor MFP performance. In contrast, MFP growth was high in goods producing industries but this sector’s GDP share declined. The major drivers of MFP growth were in high-skilled services industries that were particularly underdeveloped in the Russian economy in the 1990s.
Recent decades were turbulent for the Russian economy. They include the transformational output fall until 1998, recovery in 1999-2008, and stagnation after the global crisis of 2008. What were main drivers of performance of the Russian economy in these years? The present chapter highlights three main sources of growth, which are windfall profits from energy export, technology catching up in manufacturing, finance and business services, and the negative influence of expanding informal economy to aggregate labour productivity growth.
The present study reports, that oil and gas money fuelled Russian growth in the form of capital services in extended mining and market services. The contribution of capital input was higher in years of soaring oil prices. One more factor of growth was catching up in manufacturing, which is rooted in the fact that Russia, as well as other Central and East European socialist economies on the eve of transition from plan to market, were backwards in technologies in comparison with advanced economies. Finally, the remarkable peculiarity of the Russian economy is the expanding share of informal labour, especially in years of outstanding growth before 2008. This makes Russia, to a certain extent, similar to India. Splitting industries into formal and informal segments and estimating the contribution of labour reallocation we report, that expanding informality slowdowns labour productivity growth.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.