Russia's Output Collapse and Recovery: Evidence from the Post-Soviet Transition

Author/Editor: Kvintradze, Eteri
Publication Date: April 01, 2010
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: The health of the Russian economy still depends heavily on natural resource revenues. The history of the economic collapse and recovery in 1970–2004 provides new evidence on the sources of Russian economic growth, while a survey of the economic literature suggests that the Russian economy could be viewed as a weighted combination of virtual and normal forces. If the Russian economy is considered to be dominated by normal market economy forces, higher energy export receipts provide an opportunity for structural reforms while compensating for social costs, making the economy less vulnerable to decline in world energy prices. However, the domination of virtual forces—value transfers from the energy sector to strategic enterprises—suggests that high world energy prices are masking an inefficient manufacturing sector, and that the Russian economy is highly vulnerable to energy price declines.
Series: Working Paper No. 10/89
Subject(s): Economic growth | Economic models | Economic recovery | Industrial sector | Political economy | Production growth | Productivity | Russian Federation | Transition economies

Author's Keyword(s): Russia and Growth Transition
Publication Date: April 01, 2010
Format: Paper
Stock No: WPIEA2010089 Pages: 27
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